Build-to-rent firm buys Ultimo site for $55m apartment project
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Build-to-rent investment manager apt.Residential has purchased two multi-storey commercial buildings in Ultimo for $55 million, with plans to convert them into rental apartments and studios.
The company acquired the properties at 1-3 Smail Street, which comprise two historical brick buildings originally constructed in the early 1900s.
Matt Carolan, Managing Director of apt.Residential, said the company will now begin work on a development plan that aims to preserve the buildings’ heritage while maximising liveability for future residents.
“The building’s heritage value to Ultimo and Sydney is important. By maintaining and restoring certain design elements, the site’s history will be celebrated in our development application,” Mr Carolan said.
The buildings, which were amalgamated by Grace Brothers Ltd in 1949 for storage and warehousing, are currently leased to commercial tenants and have a net lettable area of 7,796 square metres.
Mr Carolan highlighted the site’s prime location as a key factor in the acquisition.
“The Smail Street site is close to Broadway Shopping Centre and within walking distance of Central Station, the city and two major universities. We think it is a prime location for high quality rental apartments and studios,” he said.
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The Ultimo project marks apt.Residential’s second major development in Sydney, following its $280 million mixed-use build-to-rent precinct in Meadowbank announced earlier.
The Meadowbank development will comprise 291 apartments across four low-rise buildings, along with a retail and community precinct.
In May 2024, apt.Residential secured $1.5 billion in investment from Dutch pension fund PGGM to support its expansion plans.
Mr Carolan said the company aims to make a significant impact on Australia’s housing supply through its projects.
“Through our projects, we are aiming to deliver a positive contribution to Australia’s housing shortage, with a goal of creating over 2,500 rental apartments,” he said.
The acquisition comes as build-to-rent developments gain momentum in Australia’s major cities, offering purpose-built rental accommodation managed by institutional landlords.