Melbourne-based property developer PDG has announced a new partnership with AXA Investment Managers Alts (AXA IM Alts), a global leader in alternative investments, to deliver a major build-to-rent (BTR) development at 137–157 Adderley Street, West Melbourne.
The project will add 105 purpose-built rental apartments to Melbourne’s housing pipeline, with construction scheduled to commence in late 2025.
Significantly, 53 of the apartments will be dedicated as affordable housing to support key workers in nearby employment precincts such as Victoria Police Headquarters, the Royal Melbourne Hospital, and the University of Melbourne.
PDG signed the development agreement in July 2025, marking the first BTR project in Melbourne for AXA IM Alts, following its initial Australian venture at 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.”
The partnership unites AXA IM Alts’ global investment expertise with PDG’s strong delivery track record in Melbourne’s expanding BTR sector.
Antoine Mesnage, Head of Asia Pacific at AXA IM Alts, highlighted the strategic significance of the move:
“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,” said Mesnage.
“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.”
The Adderley Street project will also see St George Community Housing (SGCH) – one of Australia’s largest not-for-profit housing providers – take on operational responsibilities.
With a residential portfolio valued at $3.9 billion, SGCH has extensive experience in social and affordable housing and is making its debut in Melbourne’s BTR sector through this development.
“At SGCH, we believe that secure, high-quality housing is the foundation for thriving communities,” said Debi Marriott-Lavery, SGCH’s Chief Executive Officer.
“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.”
AXA IM Alts currently manages €21 billion in residential assets globally, including a €2.5 billion ($4.46 billion) affordable housing portfolio spanning 160 assets and 13,000 units.
The Adderley Street project will align closely with the firm’s ESG goals, featuring a fully electrified design, targeting a 5-Star Green Star Building Certification and 8-Star NaTHERS energy efficiency rating.
Designed by Life Architecture, the development will comprise a mix of studio, one-, two-, and three-bedroom apartments, complemented by lifestyle-focused amenities across a 1,606sqm site.
Planned features include a rooftop terrace and dining space, a communal garden terrace on the ground floor, and co-working facilities designed to suit modern city living.
This latest partnership underscores the growing momentum within Australia’s BTR sector, with Melbourne shaping up to be a key hub for institutional investment in affordable and sustainable rental housing.
