M&G Real Estate Buys Melbourne Build-to-Rent Tower for A$215 Million
M&G Real Estate has acquired Novus on Bowen, a completed build-to-rent apartment tower in South Melbourne, for A$215 million. The transaction marks the investment manager’s entry into Australia’s build-to-rent sector through its Asia Living Property strategy.
The 17-storey complex known as 2 Bowen Crescent has a total of 215 rental units. The property was purchased at a cost of around A$1 million per unit, giving the development an overall gross floor area of approximately 26,000 square metres.
Apartments comprise several types of 1 to 3 bedrooms. Renters at the property will also benefit from a number of recreational and co-working facilities, gym, swimming pool, and wellness centre. Also, Anzac Station can be found just 150 metres away from the site, which enables easy access to the central business district of Melbourne and other nearby commercial locations.
M&G Real Estate expands its Australian portfolio
The acquisition brings the assets held under M&G’s Asia Living Property strategy to approximately US$500 million. The portfolio covers multifamily housing, purpose-built student accommodation, land lease communities and senior living.
The deal also builds on M&G’s existing partnership with Australian developer Novus. In April 2022, M&G committed A$450 million to the partnership through a develop-to-core arrangement. The investment gave M&G a 95% stake in the Novus Build-to-Rent Trust.
The trust initially included Novus on Sturt, a 173-apartment development in Melbourne’s Southbank precinct. The partners opened that property in November 2024.
Novus on Bowen enters the rental market
Novus acquired the Bowen Crescent site in 2023. The original plans were for apartments to be sold individually, but the developer subsequently revised the scheme for long-term rental use. The City of Port Phillip approved the amended plans in February 2024.
The completed property is now being offered to tenants. Advertised weekly rents start at A$775 for one-bedroom apartments and A$920 for two-bedroom units.
The sale gives Novus an opportunity to recycle capital while continuing to develop its rental housing portfolio. For M&G, the purchase adds a completed Australian residential asset to its wider Asia-Pacific living strategy.
The transaction extends the two companies’ existing relationship and adds another property to their shared focus on purpose-built rental accommodation.
