Japanese firm Marubeni joins Docklands build-to-rent project
Sydney investment house AsheMorgan has tapped Japanese companies Marubeni Corporation, Haseko Corporation and Mizuho Leasing as partners in delivering its $600 million build-to-rent project in Melbourne’s Docklands.
Marubeni, one of Japan’s largest trading and investment companies, is making its first foray into Australia’s build-to-rent sector through its investment into District Living – a more than 900 apartment project across two buildings.
District Living will feature a mix of studios, one, two and three-bedroom residences as well as dual-level apartments. Next month, stage one of construction will begin, comprising 626 apartments with Kapitol appointed as the project’s builder.
This is the latest example of Japanese capital flowing into Australia’s property sector, including JR West Real Estate & Development Company and Sotetsu Real Estate buying into Investa’s $230 million development in Sydney as well as Mitsubishi Estate Asia backing a $175 million tower on the Gold Coast earlier this year.
One in every five of the M&A transactions that involved Japanese investment in Australia last year was focused on the real estate sector.
Marubeni Corporation’s Noritake Miyaguchi said the company was proud to invest in Australia’s emerging build-to-rent market.
“We see enormous potential in build-to-rent as a housing solution in Australia, and are looking forward to working with an outstanding partner in AsheMorgan to bring this project to life,” Miyaguchi said.
Mendy Moss, principal at AsheMorgan, said the collaboration represented a milestone moment for the project and broader build-to-rent market.
“Partnering with Marubeni, Haseko, and Mizuho Leasing on DistrictLiving is an exciting step for AsheMorgan and is reflective of the group’s confidence in the project,” Moss said. “Together, we are committed to creating a thriving rental community that sets a new benchmark for quality and amenity in Melbourne.”
A development application for the build-to-rent project at the one-hectare car park site at 24 Little Docklands Drive was first lodged in 2023. District Living will sit beside AsheMorgan’s established District Docklands precinct.
Stage one of construction also encompasses the completion of the project’s wellness centre which will include a gym, plunge pool, sauna, steam room and sky terrace as well as 1400 square metres of private outdoor space. Its ground floor will be dedicated to retail.
It joins a cluster of build-to-rent buildings in Docklands, such as Investa’s 434-unit Indi Southbank and Mirvac’s 474-unit LIV Aston buildings. Lendlease’s $500 million West Tower at Melbourne Quarter in the Docklands was completed in June with the entire build-to-rent development set to feature 797 residences to lease once it officially opens.
Andrew Deveson, director of District Living’s appointed building firm Kapitol, said Australia’s rising demand for rental housing highlighted the importance of building with quality and longevity in mind.
“District Living will deliver much-needed apartment stock to the market and serve the city for decades to come,” he said. “We’re applying the same digital innovation that underpins all our major projects, such as advanced design coordination, 4D sequencing, and prefabrication.
“These methods improve precision and efficiency, providing better housing outcomes for residents.”
Marubeni Corporation is a long-standing investor in Australia’s coal and iron ore mines. It’s a minority partner in Gina Rinehart’s Roy Hill iron ore mine and Portland Aluminium Smelter in Victoria.
