PETALING JAYA (June 16): UEM Sunrise Bhd has secured an institutional investor for its A$315.4 million (approximately RM903.3 million) build-to-rent development in Collingwood, Melbourne, marking a formal partnership with Australian living-sector specialist Kio Investment Management.
The agreement was formalised at a signing ceremony held in Melbourne earlier today, with Kio Investment Management positioned as the investor and long-term owner-operator of the completed asset.
Defined Roles in Build-to-Rent Structure
Under the arrangement, UEM Sunrise will act as the developer and delivery partner through its wholly owned subsidiary, UEM Sunrise (Collingwood Development) Pty Ltd.
Kio Investment Management, a joint venture between US private equity firm Warburg Pincus and founder Sam Bisla, will hold and manage the completed development as a long-term institutional rental asset.
This structure reflects the build-to-rent (BTR) model, where assets are developed specifically for long-term rental income rather than individual unit sales.
Project Details in Inner Melbourne
The development site covers 0.54 hectares at 21–53 Hoddle Street in Collingwood, an inner-city suburb located approximately 3.5km from Melbourne’s central business district.
The project will consist of two residential buildings comprising more than 400 rental homes, offering a mix of studio, one-bedroom, two-bedroom and three-bedroom units.
In addition to housing, the development will include a public town square featuring food and beverage outlets, retail spaces, essential services and landscaped green areas.
Construction Timeline and Delivery Outlook
Early construction works are expected to commence towards the end of 2026, with project completion targeted for 2030.
The long development timeline reflects the scale of the project and the integrated nature of its residential and commercial components.
Strategic Expansion in Australia
UEM Sunrise managing director and chief executive Shaharul Farez Hassan said the Collingwood project forms part of the company’s broader growth strategy in Australia and its efforts to expand its international development portfolio.
He noted that the company’s experience in Melbourne positions it well to deliver housing in well-connected urban locations, while also strengthening its presence in Australia’s growing build-to-rent sector through strategic partnerships.
Kio Investment Management highlighted strong long-term demand fundamentals for institutional rental housing in Australia, particularly in well-located urban areas. The company emphasised its focus on developing professionally managed rental communities supported by long-term ownership and operational excellence.
UEM Sunrise’s Track Record in Australia
UEM Sunrise has been active in Australia for more than a decade, delivering over 1,600 residential units across completed Melbourne developments such as Aurora Melbourne Central and Conservatory, which overlooks the UNESCO World Heritage-listed Carlton Gardens.
In 2025, the company further expanded into Perth with the One Oval project in Subiaco, a 342-unit development under the Subi East revitalisation initiative led by DevelopmentWA.
Key Takeaways
The Collingwood build-to-rent project highlights UEM Sunrise’s strategic shift toward institutional partnerships and recurring-income housing models in international markets. By partnering with a long-term investor operator, the developer reduces exposure to sales risk while ensuring project viability through committed capital.
The deal also reflects growing investor interest in Australia’s build-to-rent sector, particularly in inner-city locations with strong rental demand. For UEM Sunrise, the project strengthens its position as an international developer while diversifying its portfolio beyond traditional property sales models.
Yao Mu Realty, based in Kuala Lumpur, Malaysia, specializes in industrial real estate for factories and land, delivering professional and efficient solutions.
Posted by Yao Mu Realty Sdn Bhd on 16 Jun 26
Malaysia