Local Residential Clinches Management Rights for ADIC’s Gold Coast BTR Complex

Local Residential, the build-to-rent platform backed by Macquarie Asset Management, has completed its acquisition of the management rights for Australia’s largest BTR property, establishing a presence in Queensland for the Melbourne-based company.

The contract for Smith Collective, a 1,252-unit complex majority-owned by the Abu Dhabi Investment Council, gives Local a beachhead near Surfers Paradise in Gold Coast and brings its portfolio value to A$2.46 billion ($1.6 billion) in assets under construction or management — cementing its status as the country’s largest BTR platform, according to a Thursday announcement.

The 18-building Smith Collective began life as the athletes’ village for the 2018 Gold Coast Commonwealth Games and features extensive retail space, a public plaza and lush parkland, Local said. The colourful compound is the country’s biggest BTR development in terms of the number of operational dwellings and dwellings under construction.

“We are thrilled to take on the management of this iconic asset,” said Local co-founder and co-CEO Dan McLennan. “The sustainable, campus-style layout of Smith Collective aligns seamlessly with our vision for best-practice BTR communities.”

Passing the Torch

Owned by Abu Dhabi state investor ADIC and UBS Asset Management, Smith Collective was previously run by the Swiss firm before Local inked its deal five months ago.

Developed by Melbourne-based builder Grocon — the former employer of Local’s founders — the property sits in Gold Coast’s Southport suburb about 5 kilometres (3.1 miles) inland from Surfers Paradise.

“With the remarkable growth and transformation in the Gold Coast area, combined with a dynamic asset that has consistently generated strong rental growth, ADIC is eager to see how Local will unlock the full potential of Smith Collective over the coming years, creating value for all stakeholders,” said Saoud Al Mulla, executive director of real assets at ADIC.

The milestone boosts Local’s total portfolio to 3,246 apartments under construction or management, including five projects and two newly acquired sites in Melbourne.

“The proven success and scale of Smith Collective provides a solid foundation for our interstate expansion, and we are looking forward to making our mark once again on this impressive asset,” said Local co-founder and co-CEO Matt Berg.

Rapid Ascent

Founded in 2021, Local reached a final closing of its inaugural fund in 2024 with investments in two Melbourne projects with an end value of A$650 million ($427.9 million).

The fully deployed fund, dubbed Local Residential Turnkey Venture I, invested in a 406-unit project in South Melbourne and a 425-unit development in the city’s eastern Box Hill suburb, with the vehicle receiving committed capital from a large North American pension fund.

In March, Local announced an apartment project in central Melbourne with a completed value of A$270 million ($167.8 million). The development in the inner suburb of Southbank will feature a 39-storey tower with 312 units.