PDG has partnered with AXA Investment Managers Alts, a global leader in alternative investments, to deliver a build to rent (BTR) development at 137-157 Adderley Street, West Melbourne.

The new development will add a further 105 purpose-built rental apartments to Melbourne’s housing pipeline and is set to start construction in late 2025. 53 of the 105 apartments will be designated affordable housing to support key workers in the surrounding major employment hubs including Victoria Police HQ, the Royal Melbourne Hospital precinct and the University of Melbourne.

PDG signed an agreement to develop the site in July 2025, marking AXA IM Alts’ first BTR project in Melbourne following its debut at Farmhouse Road, Westmead in Sydney.

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

“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 Street speaks to the strength of our BTR delivery model and the trust we’ve built with investment partners.”

This partnership will bring together AXA IM Alts’ global investment experience and commitment to long-term, socially responsible housing with PDG’s proven track record in delivering highly successful BTR projects. As the sector continues to grow, collaborations like this are playing a vital role in expanding Melbourne’s housing options and setting a high standard for quality, sustainability, and community impact.

Antoine Mesnage, Head of Asia Pacific at AXA IM Alts commented, “Underpinned by strong thematic tailwinds including record population growth, constrained housing supply, and persistently low vacancy rates, this acquisition reflects our conviction in the long-term opportunity for residential as an institutional sector in Australia. Expanding into Melbourne marks a significant milestone in our strategy, bringing both portfolio diversification and scale. This builds on the momentum of AXA IM Alts’ Australian built to rent affordable housing strategy, which is backed by leading institutional investors and aims to develop a scalable portfolio of sustainable and affordable residential assets across Sydney, Melbourne, and Brisbane.”

St George Community Housing (SGCH) will operate the project, bringing its extensive experience as a Tier 1 not-for-profit housing provider. For four decades, SGCH has specialised in delivering social and affordable housing and has recently become active in the BTR sector through an ongoing partnership with AXA IM Alts. With a residential portfolio valued at $3.9 billion, SGCH demonstrates significant scale and expertise in providing high-quality housing solutions. The Adderley Street development also marks SGCH’s first BTR project in Melbourne.

“At SGCH, we believe that secure, high-quality housing is the foundation for thriving communities. Our entry into Melbourne’s build-to-rent market through the Adderley Street project is a significant milestone — one that reflects our commitment to delivering sustainable, affordable homes in partnership with like-minded organisations. 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,” said Debi Marriott-Lavery, SGCH’s Chief Executive Officer.

AXA IM Alts manages €21 billion of residential assets, of which includes a global affordable housing portfolio valued at over €2.5 billion (AUD 4.46 billion), comprising over 13,000 units across c. 160 assets, demonstrating the firm’s commitment to addressing housing affordability on a global scale. The project will prioritise sustainability with a 100% electrified scheme targeting a minimum 5-Star Green Star Building Certification and 8 Star NaTHERS.

Designed by Life Architecture, the Adderley Street project will offer a mix of studios, one-, two-, and three-bedroom apartments, as well as amenities across 1,606sqm of land. Features will include a rooftop terrace and dining area, communal garden terrace on the ground floor, and co-working spaces, designed to support modern urban lifestyles.

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