M&G Real Estate Acquires Melbourne Build-to-Rent Property Bowen Crescent for USD 158 Million

Singapore / Hong Kong / Melbourne, Oct. 27, 2026 — M&G Real Estate, part of M&G's USD 110 billion private markets business, has expanded its Asia Living Property strategy with the acquisition of Bowen Crescent, a newly completed build-to-rent development in Melbourne, for AUD 215 million (USD 158 million), the firm announced.

The purchase takes the strategy's assets to approximately USD 500 million and marks its first investment in Australia's build-to-rent sector. The acquisition was completed at an exchange rate of 1 USD to AUD 1.36.

Bowen Crescent Property Details

Bowen Crescent is located at 2 Bowen Crescent, South Melbourne, Victoria, close to the city's central business district and major university precincts. The property comprises 215 professionally managed one-, two- and three-bedroom rental apartments in a 17-storey development, according to M&G. The price equates to roughly AUD 1.0 million, or USD 735,000, per apartment.

The development offers approximately 26,000 square metres (about 279,900 square feet) of gross floor area, implying an acquisition price of about AUD 8,269 per square metre of gross floor area. It includes 127 car parking spaces.

Amenities include co-working facilities, a gym, swimming pool, sauna and cold plunge. The property also has dedicated operational facilities, including a leasing office, parcel and mail management facilities, and move-in and move-out servicing areas. The development sits about 150 metres from the newly opened Anzac Station, providing access to the central business district, major employment centres and higher-education hubs.

M&G Real Estate's Asia Living Property Strategy

The portfolio now spans multi-family housing, purpose-built student accommodation, land lease communities and senior living. The strategy's existing investments include multi-family housing in Japan and South Korea, alongside purpose-built student accommodation and land lease communities in Australia.

The transaction builds on M&G's existing develop-to-core partnership with Novus in Australia, which combines M&G's investment expertise with Novus' development and operating capabilities.

Jing Dong (JD) Lai, Chief Executive Officer and Chief Investment Officer of M&G Real Estate Asia, said: "The living sector is one of the most compelling long-term investment opportunities across Asia Pacific, underpinned by population growth, urbanisation and changing lifestyle preferences. Australia stands out as a market where demand for professionally managed rental housing continues to grow, supported by strong demographic trends. Bowen Crescent is a high-quality asset in one of Australia's strongest residential markets and marks the Asia Living Property Strategy's first investment in the build-to-rent sector, taking the strategy to c. USD 500 million."

M&G Real Estate manages over USD 9 billion globally across living strategies, drawing on more than 20 years of investment experience in the UK and Europe, as of June 30, 2026. The Melbourne acquisition is the sixth investment in under two years for the strategy. M&G Real Estate manages approximately USD 45.7 billion of assets globally.

Australia Build-to-Rent Market Context

Australia's build-to-rent sector remains small relative to the broader rental market but is scaling. Urbis estimates the country had 16,750 operational build-to-rent homes in 2026, representing 0.6% of the 3.3 million-household rental market, with a further 50,000 apartments in the pipeline.

Urbis reported national rental vacancy of about 1.3%, with Melbourne at 1.6%. M&G's release cites Melbourne vacancy rates of around 1%. Four-year rent growth reached 10.7% in Melbourne and 11.4% in Sydney, according to Urbis.

Build-to-rent accounted for more than half of the approximately 8,200 apartments completed in Melbourne in the 12 months to July 2026, or about 4,400 units. M&G said strong population growth continues to support demand for rental accommodation in Melbourne.

Outlook for Institutional Living Investment in Asia Pacific

The acquisition adds Australian build-to-rent exposure to a strategy already diversified across several Asia Pacific living subsectors. The national pipeline of 50,000 additional build-to-rent apartments could affect consumer choice and rent growth over time, particularly in submarkets with concentrated new supply, as institutional ownership of rental housing expands from a small base.

Sources

• M&G press release, "M&G broadens Asia Pacific living strategy with Australian build-to-rent acquisition": https://group.mandg.com/news-and-insights/press-releases/2026/27-10-2026-am