Melbourne’s Tallest Mass Timber & Passive House Certified Apartment Complex

Following six months of planning and feasibility testing, BTR innovator MODEL shares its first project – a 13,000sqm (GFA) structure in Abbotsford – which will not only be the tallest mass timber residential  building in Melbourne, but also the first large scale apartment complex in Australia to achieve Passive  House certification.  

MODEL on Johnston will offer 200 apartments across 17 storeys, is located adjacent to the Victoria  Park train station at 276 Johnston Street and will set out to be a global exemplar in sustainable  development. Along with Passive House certification, the building will target 6 Star Green Star and 9 star NatHERS ratings, a 50% reduction in embodied carbon (when compared to standard  developments), be 100% powered by renewables, and operate at net-zero emissions. The $120M  development was brokered by JLL Australia, with Dora Stilianos of Baker McKenzie managing the  legal transaction. 

MODEL CEO, Rory Hunter says the blueprint for setting the new standard for decarbonising at scale,  is the hiring of expert talent and the integration of key project development partners at every stage.  

“We’ve built an incredibly strong team at MODEL (more below) and put together a crack team of  collaborators who we will work with at all key touchpoints, including: architects Fraser and Partners;  sustainability consultants HIP V. HYPE; structural and timber engineers BG&E; urban planners at Urbis;  and, quantity surveyors and carbon planners at Slattery. 

Hunter says MODEL’s ‘decarbonisation at scale’ approach not only differentiates the developer in its  commitment to sustainability – it offers a valuable safeguard on returns for investors.  

“MODEL’s financial framework centres around the value returned over the life of the build, with outlay  costs being both offset and capitalised on by significant operational costs savings and greater long  term resilience resulting in a de-risked asset.” 

“And by managing the development internally and focusing on sustainability, MODEL is positioned to  capture the premium returns already seen in sustainable commercial office buildings.  

“JLL’s recent paper Early Mover Advantage (Nov 2023) shows that commercial tenants are willing to  pay higher rents for Net Zero properties with strong sustainability credentials and that valuations  benefit from lower cap rates. We believe this trend will extend to the build-to-rent sector. 

“Our pioneering approach offers investors not only reduced operational costs and efficiency but also  the potential for enhanced financial performance as well as future proofing for evolving regulatory  requirements. 

“MODEL on Johnston will be the first example of our ‘no compromises’ approach: decarbonising at  scale; creating a warm and dry thermal envelope along with a deep sense of community for residents;  and delivering strong, ongoing returns for investors. 

“We’re about creating great places to live and enhanced experiences for renters to enjoy. We’re  looking at urban, inner city locations with great connections to public transport, rich cultural offerings  in the neighbourhood and 10% of MODEL on Johnston’s apartments will be affordable housing.” 

MODEL – MEET THE EXECUTIVE

Joining Hunter to champion the development and management of this and other upcoming projects – effective immediately – is MODEL’s Head of Development, Matthew Mattiske, and Chief Operating  Officer, Phil Shelley.  

“I’m proud to mark this milestone alongside such an incredibly experienced and accomplished duo. 

“Having Matt in the role of Head of Development will ensure we’re decarbonising at scale and  building exemplar structures. While Phil will lead the delivery side to provide outstanding amenity  and an unparalleled renter experience. Cumulatively, this ladders up to healthy and sustainable  returns for investors who get our point of difference,” says Hunter. 

Matt Mattiske’s (pictured left) two decades of experience in property development and project  management has seen him lead major projects here and offshore, working for the likes of Mirvac,  Sinclair Brook and Majid Al Futtaim in the Middle East. He led a development team that oversaw the  development of Australia 108 – the tallest residential building in the Southern Hemisphere – and has  developed more than 13,000 residential apartments worth over $7 billion in Melbourne during the  past decade.  

Phil Shelley (pictured right) has extensive leadership experience in both student accommodation and  the BTR sector, having launched Scape’s operating platform (PBSA), and most recently HOME – pioneering Melbourne’s first BTR properties. Phil has opened, launched and overseen more than 6,000 living sector apartments in Australia, plus supported the design, acquisition and opening of an  additional 10,000 with an end asset value of more than $6 billion. He’s also run his own successful  consultancy, The Living Advisory. 

“With us sharing similar backgrounds in hospitality, development and operations – as well as  fundamental values – MODEL is a unique and formidable team,“ says Hunter.  

MODEL was launched to the market late last year by Hunter as a solution to the myriad challenges  facing Australia’s built environment – supported by his white paper Tomorrow’s too Late: The Case for  Regenerative Decarbonisation in Build to Rent.

Learn more: themodel.com.au