King & Wood Mallesons (KWM) is delighted to have acted as legal counsel for Local: Residential (Local) on their second build to rent project at 245 Normanby Road, South Melbourne.
The $280 million South Melbourne development will comprise 421 sustainable apartments, with 10% dedicated to impact housing, and provide high-quality amenities for residents. Local, an up-and-coming Melbourne based build to rent developer, owner and manager has two projects of approximately 900 apartments under construction, with a vision for at least 5000 apartments commissioned around Australia by 2026.
A cross-practice team led by Emily Masters (Partner, Real Estate) and Jonathan Oldham (Partner in Charge, Melbourne and Banking & Finance Practice Leader) advised Local on all aspects of the purchase and turn-key development arrangements with Blue Earth Group and the financing with National Australia Bank (NAB). Completion of Local’s purchase occurred in May 2023.
Emily and Jonathan were supported by Senior Associates Lachlan O’Brien (Real Estate) and Stuart Alexander (Banking & Finance) and Solicitors Shaun Nolan (Real Estate) & Ivor Wong (Banking & Finance) with further specialist cross-practice support from Jim Boynton and Jedd Watmore (Funds), Leah Ranie (Tax) and Malcolm Brennan (FIRB).
Jonathan, Stuart and Ivor also advised Local in connection with the financing of their first development asset at 350 Macaulay Rd, Kensington which achieved financial close in January 2023 while KWM continues to assist Local with other new project opportunities.
Emily commented: “We are grateful for the opportunity to work with Local on these market-leading developments. The build to rent sector is going to be a critical part of the housing solution in Australia and we are excited to see Local going from strength to strength, now having two projects under construction and a strong pipeline for the future. The South Melbourne development required innovative solutions to deliver a turn-key project and, like Local, we are thrilled to now see construction under way”.
Furthermore, Jonathan commented: The build to rent sector is a nascent but fast-growing area of opportunity. KWM has significant experience across all aspects and all sides of the development and financing cycles, together with a cross-practice team who work together to ensure the desired outcomes for our clients. The South Melbourne project is a great example of the depth and experience of the KWM team, and the seamless integration across practices to deliver for our clients.”
King & Wood Mallesons is ranked Band 1 for both property finance and real estate by leading legal guide Chambers and continues to advise on large scale and market leading transactions.
