Lendlease, Nippon Steel Kowa Real Estate and Tokyo Tatemono Top Out 499-Unit Build-To-Rent Tower in Melbourne's Docklands
A 499-unit build-to-rent tower at 899 Collins Street in Melbourne's Docklands has reached full height, Lendlease announced on August 3, 2026, marking a significant construction milestone for the waterfront development delivered in partnership with Nippon Steel Kowa Real Estate (NSKRE) and Tokyo Tatemono.
The 24-level tower sits on the western edge of Melbourne's CBD within Lendlease's Victoria Harbour precinct, offering uninterrupted views across the Yarra River and Victoria Harbour. The project is expected to welcome its first residents in early 2027.
Project Details and Amenities
The development will deliver a mix of studio, one-, two- and three-bedroom apartments. Residents will have access to a 25-metre heated outdoor pool overlooking the harbour, a rooftop barbecue area, co-working lounge, home theatre, wellness facilities including a sauna, steam room and gym, a pet spa, podcast studios and private dining rooms.
Beyond the residential tower, the project will deliver Bourke Dock, a new waterfront public park comprising approximately 1,000 square metres of open space, along with a major public artwork by First Nations artist Reko Rennie.
The all-electric building is targeting a 5 Star Green Star Building rating and a 7-star NatHERS rating, positioning the asset in line with evolving sustainability benchmarks for large-scale residential development in Australia.
Partnership Structure and Market Significance
Lendlease is serving as developer, builder and investment manager for the project, with the investment managed as part of the company's mandates business. NSKRE and Tokyo Tatemono are capital partners on the deal.
The development marks NSKRE's entry into the Australian market and represents Tokyo Tatemono's first rental housing development investment in Australia. Both firms are Japanese institutional investors, and their participation reflects growing appetite among Japanese institutions for core-plus income in offshore residential assets, driven in part by a prolonged low-yield environment at home.
"Topping out at 899 Collins Street is an important milestone and highlights the value of strong partnerships in bringing major residential projects to life," said Claire Johnston, CEO Development at Lendlease. "We're proud to be partnering with NSKRE and Tokyo Tatemono to deliver 499 new homes for Melbourne, increasing housing choice in a well-connected waterfront location while reflecting continued confidence in Australia's growing build-to-rent sector."
Kouryuu Igari, Managing Director of International Business at Nippon Steel Kowa Real Estate, described the milestone as reflecting the firm's commitment to expanding its global real estate business. "As NSKRE's first project in Australia, this development reflects our commitment to expanding our global real estate business through partnerships with trusted and highly experienced partners," Igari said.
Fumio Tajima, Managing Executive Officer and Overseas Business Division Director at Tokyo Tatemono, said the project represents an important opportunity for the firm to contribute to rental housing supply in Australia. "As our first build-to-rent investment in Australia, 899 Collins represents an important opportunity for Tokyo Tatemono to contribute to the growth of rental housing in the market," Tajima said.
Lendlease's Broader Build-To-Rent Platform
899 Collins Street is the latest addition to Lendlease's build-to-rent portfolio, which now encompasses more than 4,600 homes in delivery or under management across Australia and the United States. The project follows the completion of West Tower at Melbourne Quarter, described by Lendlease as Australia's largest build-to-rent tower, earlier in 2026. The company's Exhibition Place development in Brisbane is also set to welcome residents in the coming months, underscoring a multi-city strategy targeting inner-urban, transit-linked precincts.
The 899 Collins project is structured in a manner consistent with Lendlease's broader strategic shift toward capital-light, fee-generating platforms. Under this model, Lendlease earns development, construction and investment management fees while third-party institutional capital — in this case from NSKRE and Tokyo Tatemono — funds the equity. Lendlease has pursued a similar structure in other markets, including its investment vehicle at 21 Moorfields in London, managed by Lendlease as investment manager alongside partners including TCorp.
This approach has accompanied a broader capital recycling program in which Lendlease has divested non-core and capital-intensive businesses, with proceeds directed toward debt reduction and reinvestment in scalable platforms such as build-to-rent.
Market Context: BTR in Australia
The topping out at 899 Collins Street comes as Australia's build-to-rent sector continues to attract institutional capital against a backdrop of tight rental vacancy rates, strong population growth and constrained new housing supply in major capitals. Traditional build-to-sell apartment output has been limited by planning delays and elevated construction costs, creating conditions that have supported the case for long-term institutional rental ownership.
Policy settings in Victoria and at the federal level, including accelerated depreciation and managed investment trust treatment for certain build-to-rent projects, have improved the investment economics for the asset class, though state land tax settings and other imposts have partially offset those benefits in some markets.
Docklands itself has undergone a significant transformation over the past two decades, evolving from a former port area into an established mixed-use CBD extension with major office occupiers, residential stock and retail. Recent development activity in the precinct has placed increasing emphasis on placemaking and public realm activation, a trend reflected in the Bourke Dock park and Reko Rennie artwork component of the 899 Collins project. The site's proximity to Southern Cross Station, the free tram zone and cycle paths along the Yarra River supports the demand thesis for professionally managed rental housing targeting inner-city renters.
899 Collins Street is located at 899 Collins Street, Docklands VIC 3008.