Integrated construction and development group Hickory and commercial real estate fund manager MaxCap have commenced construction on a $300 million purpose-built student accommodation (PBSA) project in Melbourne’s CBD.
Unilodge, Australia’s largest student accommodation operator, has been appointed to operate and manage the property with students to be welcomed in Semester 1, 2028.
Located at 570 Little Bourke St, construction recently commenced on the 26-level building with completion expected late 2027. The development includes 892 student beds across 748 units with premium amenities such as a library, gymnasium, cinema, music room, group dining, lounges and games spaces.
Designer Nettletontribe has reinterpreted the site’s historic facade and surrounding bluestone, sandstone and red brick neighbourhood into a contemporary design that restores warmth and human scale to a long-neglected streetscape. The project will also revive the historic Great Western Hotel, bring new retail spaces, activate adjoining Brown Alley and improve pedestrian safety and access between Lonsdale and Little Bourke Streets.
The joint venture between MaxCap and Hickory demonstrates a shared commitment to investing in the creation of new living products to address Australia’s housing shortage as well as identifying pockets of CBD markets that are suitably poised for investment and activation.
The project is MaxCap’s second PBSA development in recent years, following the successful completion of the 736-bed UniLodge Perth Central asset in late 2025. It is also Hickory’s second major investment in Melbourne’s western CBD, having acquired the former Kilkenny Inn site at 580 Lonsdale Street. Hickory is currently revising the site’s scheme and working closely with authorities including the City of Melbourne.
Simon Hulett, Head of Equity Investment at MaxCap said, “We are continuing to invest into social infrastructure assets across the country, particularly those underpinned by the education and healthcare sectors where we see long term resilience. Activating new developments in the current environment is challenging so we are fortunate to have Hickory as a fully integrated partner to enable a clear pathway to delivery of the product. This asset will significantly reshape this precinct in Melbourne’s CBD and provide students with unparalleled access to transport and established amenity, including food, beverage and entertainment.”
Zoran Trimcevski, Head of Property at Hickory, said, “We are thrilled to commence construction and appoint an operator for this important project for Hickory and MaxCap, which is one of Melbourne’s largest new PBSA developments. With works now underway, we are looking forward to welcoming students in collaboration with UniLodge at the start of the 2028 academic year.”
On appointment as operator, Peter Bates, Executive Chairman, UniLodge said, “We’re pleased to partner with Hickory and MaxCap on this significant CBD project to deliver critical social infrastructure that supports local universities and strengthens Melbourne’s global education reputation while easing pressure on the private rental market. The demand for high-quality, purpose-built student accommodation continues to outpace supply; this partnership reflects our shared strong confidence in this growing sector.”
570 Little Bourke will be the fourth PBSA project delivered by Hickory and the first delivered under its integrated builder-developer model, leveraging its in-house development capabilities to reduce planning and delivery risk while ensuring high-quality outcomes.
Michael Argyrou, Group CEO, Hickory, said, “Our integrated model allows us to take on more responsibility on suitable projects, reducing risk for investors and financiers while providing certainty that projects will be delivered to the highest standard.”
To further streamline delivery, SYNC prefabricated bathrooms will be installed. Manufactured offsite, the prefabricated units are fully finished, inspected and rigorously tested on the factory floor, significantly reducing on-site labour requirements and defects upon project completion.
The project is supported by Hickory’s investment manager, hCapital, which worked with MaxCap’s equity team to arrange and negotiate the preferred equity facility for the project.
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