PDG to start construction on West Melbourne build-to-rent

Melbourne-based property developer PDG is set to deliver a new build-to-rent (BTR) project in West Melbourne.

Located at 137–157 Adderley St, West Melbourne, the new development will contribute an additional 105 purpose-built rental apartments to Melbourne’s housing pipeline, with construction scheduled to start in late 2025.

Of the 105 apartments, 53 will be allocated as affordable housing to support key workers in nearby major employment hubs, including Victoria Police Headquarters, the Royal Melbourne Hospital precinct and the University of Melbourne.

Designed by Life Architecture, the Adderley St development will offer a mix of studio, one-, two- and three-bedroom apartments, along with a range of resident amenities across a 1606 sqm site.

Key features will include a rooftop terrace and dining area, a communal garden terrace at ground level, and co-working spaces – all designed to support contemporary urban living.

To bring the project to life, PDG has partnered with AXA Investment Managers Alts, a global leader in alternative investments.

The partnership combines AXA IM Alts’ global investment expertise and commitment to long-term, socially responsible housing with PDG’s proven track record in delivering successful BTR projects.

This initiative builds on the momentum of AXA IM Alts’ Australian BTR affordable housing strategy, which is backed by leading institutional investors and aims to develop a scalable portfolio of sustainable and affordable residential assets across the country.

PDG’s founder and managing director Vince Giuliano said, “PDG is proud to be playing a significant role in shaping the future of rental housing in Melbourne, and to be partnering with AXA IM Alts on this exciting new project.”

We are committed to delivering high-quality homes that meet the diverse needs of our growing city.

“The success of Liv Munro, the soon-to-be-completed Boyd Village at Southbank, and now Adderley St, speaks to the strength of our BTR delivery model and the trust we’ve built with our investment partners.”

AXA IM Alts manages more than $40 billion in residential assets globally, including an affordable housing portfolio valued at more than $4 .46 billion.

Antoine Mesnage, Head of Asia Pacific at AXA IM Alts, said the project was underpinned by strong thematic drivers such as record population growth, constrained housing supply and low vacancy rates.

“This acquisition reflects our conviction in the long-term opportunity for residential as an institutional sector in Australia,” Mr Mesnage said.

“Expanding into Melbourne marks a significant milestone in our strategy, bringing both diversification and scale to our portfolio.”

The project will be operated by St George Community Housing (SGCH), a Tier 1 not-for-profit housing provider with more than four decades of experience delivering social and affordable housing.

“Our entry into Melbourne’s BTR market through the Adderley St project is a significant milestone – one that reflects our commitment to delivering sustainable, affordable homes in partnership with like-minded organisations,” SGCH CEO Debi Marriott-Lavery said.

“In our 40th year, together with PDG and AXA IM Alts, we’re creating not just apartments, but opportunities for people to live well, feel connected, and be part of vibrant neighbourhoods.” •