Investa has announced a partnership with The Salvation Army (TSA) to develop an estimated $230 million (end value) Studio Living project at 140 Elizabeth Street, Sydney.

When completed, this landmark project  will feature approximately 245 fully furnished, self-contained studio apartments as well as resident amenity  including co-working spaces, indoor entertainment and dining areas, and outdoor terraces. 

This initiative marks Investa’s first venture into the Studio Living sector, following its successful move into Build to Rent (BTR) with a pipeline of three BTR assets*. 

Commenting on the deal, Peter Menegazzo, CEO, Investa said: “We’re delighted to partner with The  Salvation Army on this exciting opportunity which is expected to deliver the first Sydney CBD Studio Living  asset in Australia. 

“We have high conviction in the Living Sector, evidenced by the ~1,400 BTR apartments (completed and under construction) and an ability to unlock further suitable Studio Living sites. 

“There is increasing demand for rental housing options that provide residents with quality product that is  well located to employment centres and transport, and where they can become part of a community.  

“This evolving housing need has created strong market fundamentals that support diversifying and  expanding our Living Sector portfolio.” 

Studio Living is designed to cater to the lifestyle aspirations of a broad customer base who prioritise  proximity to work, public transport, entertainment and other amenity and who want a cost-effective  alternative to traditional housing in CBD and fringe locations. 

Sydney City Salvos Manager, Mitchell Evans said: “140 Elizabeth Street has a long and important history  within The Salvation Army, so it was important for us to select a partnership arrangement that enables us to  maintain an ongoing presence in Sydney’s CBD where we will continue to reach and serve the local  community, as well as have a place of worship and ministry. As part of the development, Investa will deliver  a stratum across ground and level 1 that will be handed back to TSA for us to own and manage. 

“This opportunity will help support The Salvation Army to continue delivering its important services that help  those who are vulnerable or marginalised in our community get the help they need across areas like  housing, financial hardship, homelessness and much more.” 

Adam Crowe, Chief Investment Officer, Investa said: “Significant tenant demand for greater diversity of housing, planning and regulatory certainty, and Investa’s development skillset that allows us to scale Studio  Living is what is driving our investment in this emerging sector. 

“Studio Living, like BTR, is well established overseas and we are very pleased to once again be ahead of the  curve in Australia to offer a housing option that meets the demand of customers and our capital partners. 

“In addition to 140 Elizabeth Street as our seed asset, we are progressing further opportunities as we deliver  on our aspirations to build our living pipeline across BTR, Studio Living and Affordable Housing.” 

Subject to planning consent, construction is expected to commence in 2027, with the asset expected to be operational in late 2029.
 
*Indi Sydney (completed), Indi Footscray (under construction) and Indi Southbank (under construction) 

Related readings:

Investa and Oxford celebrate topping out of its largest BTR project, Indi Footscray in Melbourne

Investa and Oxford celebrate opening of flagship Indi Sydney BTR asset | The ASEAN Developer