Gurner – Qualitas Multifamily GQ Platform Expands Pipeline to 3,650 Apartments

The GQ Multifamily Build-to-Rent platform (GQ Multifamily) – owned by luxury lifestyle developer, GURNER™ and ASX-listed Australian alternative real estate investment manager Qualitas – has revealed a pipeline of 3,650 apartments, cementing it as one of Australia’s largest build-to-rent (BTR) platforms in the rapidly growing space.

With two sites currently under construction in St Kilda and Southbank and another two to commence construction by the end of 2023 in Parramatta and Fitzroy North, GQ Multifamily will see the total number of apartments under construction increase to over 1,500 in 2023.

The GQ Multifamily offering can now reveal a further 2,150 apartments in its pipeline, taking the total portfolio to 3,650 apartments across a range of locations:

• Southbank – 400 approx.
• St Kilda – 280 approx.
• Parramatta – 400 approx.
• North Fitzroy – 350 approx.
• Docklands – 550 approx.
• South Melbourne – 450 approx.
• Melbourne Inner East – 400 approx.
• Brisbane – 350 approx.

The GQ Multifamily platform was formed by GURNERTM and Qualitas with the aim to become the leading BTR manager in an industry going through immense growth. With respect to confirmed locations, fully-funded pipelines, and projects under construction, the GQ Multifamily platform is now one of the leading groups in the fast-growing BTR sector in Australia – with ambitions to continue to grow the platform.

The GQ Multifamily platform has so far announced two successful capital raises with an initial $1.2 billion, followed soon after by an additional $2 billion, helping to fund further growth.

Underpinning the momentum in the GQ Multifamily portfolio, the platform has today revealed the commencement of demolition works on their prime Fitzroy North site at 26 – 56 Queens Parade, with full construction expected to commence in the coming months.

The site, originally acquired by GURNER™ as a build-to-sell development project, has been strategically redeployed into the GQ Multifamily platform as it was decided that BTR was a stronger long-term play.

This is one of Melbourne’s prized sites spanning 7,990sqm and will be home to over 600 people when complete.

The project will include a ground floor activation, a residents’ gym, Porte Cochere entrance, car and bike sharing facilities, a business lounge with private dining and co-working space, dog and car wash, and ground floor retail to add to the local area, all delivered to the highest quality, leveraging the expertise of GURNERTM.

The Fitzroy North project has been designed with a large amount of diverse product to cater for the growing renter market, from studios, to one bedroom apartments and up to four bedroom apartments to cater for families and larger groups.

Interiors will pay homage to the area’s industrial heritage with ceiling-high, black-framed windows, outdoor spaces with expansive wooden flooring and stone finishes throughout.

Gurner Group CEO, Tim Gurner said “We have been working hard behind the scenes to quietly build a very large platform that allows us to offer a unique product and offering to our customers and our valued capital partners.

“The scale is critical for cost management, efficiencies and to offer our customers an opportunity to move around Australia while always staying within a GQ Multifamily building, offering unique quality, service, hospitality and amenity – akin to the best hotels in the world.

“The GQ platform now has a number of key projects either commenced or soon to commence across four major growth markets in Melbourne and Sydney – we’re armed with fresh capital, and we’re always on the lookout for quality acquisitions in these major capital cities.

“Our access to capital and shovel-ready sites mean we are able to move quickly and rapidly build on our portfolio. Our aim is to have 5,000 apartments worth $5 billion under management by 2026 and we are well on the way to achieving this and to exceeding it.

“The current rental conditions and chronic undersupply of quality housing for our population means the sector is well-placed to service this growing deficit. GQ is ready to deploy all capital at our disposal to deliver this stock to the market.

“I love working in Melbourne’s north – it’s such an incredible area with vibrant streetscapes, rich heritage and such a unique character. I am looking forward to celebrating that with our Queens Parade project, which will bring new retail and hospitality, greater housing diversity and some world- class residences to Fitzroy North.

“Fitzroy North has long been one of my favourite parts of Melbourne, and it consistently ranks as one of the coolest and most sought-after parts of the city – we think there’s a real opportunity to deliver stock that’s a cut above the rest, particularly as vacancy rate continues to put pressure on the market and the need for greater diversity in housing grows.

“We know this is a site that the people of Fitzroy North care deeply about, and we understand we have a responsibility to deliver something incredible that will make a strong contribution to the area while celebrating everything that makes it amazing.”

GURNER™ CIO, Rahul Bharara said “This deal represents another example of a partnership model with joint venture partners who have entrusted us as the preferred partner to activate and bring to life such strategic land holdings.

“With the proposed changes announced to MIT withholding for foreign investors, the sector should get a boost with improved feasibility across a number of projects and increased diversity of funding partners who were sitting on the sidelines.”

Qualitas global head of real estate and co-founder Mark Fischer said “Our position in this sector is driven by the extremely strong and long-term underlying fundamentals combined with our market-leading management proposition to large scale global capital.

“We are favourable to the residential sector compared to all others as it is perfectly aligned to investors focus on assets generating defensive and resilient cashflows through all economic cycles.

“These through cycle structural drivers of the sector make GQ Multifamily well positioned to deliver much needed apartment stock, specifically across the eastern seaboard of Australia as well as providing additional services to these locations as part of the projects being delivered – which is central to the vision for the platform offering – along with high quality amenity.

“We are delighted to be on track to reach the ambitious targets set for the platform as we continue to attract capital and build the project pipeline.

“The recent announcement by the government around the proposed changes to the BTR tax regime would be welcomed as a positive development for the sector, unlocking additional capital and further driving much needed housing supply.”