Key Takeaways
- • Hickory and MaxCap have commenced construction on a $300 million purpose-built student accommodation (PBSA) project at 570 Little Bourke Street in Melbourne's CBD, targeting completion in late 2027 with student occupancy from Semester 1, 2028.
- • The 26-level development will deliver 892 student beds across 748 units with premium amenities including library, gymnasium, cinema, music room, and dining facilities, with UniLodge appointed as operator and manager.
- • The project represents MaxCap's second PBSA investment following the successful 736-bed UniLodge Perth Central completion in late 2025, and Hickory's second major Melbourne western CBD investment, signaling developer confidence in CBD student housing markets.
- • Beyond residential delivery, the development includes heritage restoration of the Great Western Hotel, new retail spaces, and improved pedestrian connectivity between Lonsdale and Little Bourke Streets, positioning the project as a precinct activation catalyst.
- • The joint venture demonstrates strategic alignment on addressing Australia's housing shortage while identifying underutilized CBD sites suitable for mixed-use development with strong long-term demand fundamentals in education-related assets.
Summary
Hickory and MaxCap have commenced construction on a $300 million purpose-built student accommodation tower in Melbourne's CBD, marking a significant capital commitment to Australia's student housing sector. The 26-level development at 570 Little Bourke Street is designed to deliver 892 student beds across 748 units, with construction recently initiated and completion expected in late 2027. Students are scheduled to occupy the facility from Semester 1, 2028. UniLodge, Australia's largest student accommodation operator, has been appointed to operate and manage the property, positioning the asset within an established institutional operating platform.
The development incorporates substantial amenity infrastructure including a library, gymnasium, cinema, music room, group dining spaces, lounges, and games areas—features increasingly demanded by institutional investors and operators in the PBSA sector. Design firm Nettletontribe has reinterpreted the site's historic context, restoring heritage elements including the Great Western Hotel facade and integrating contemporary architecture with the surrounding bluestone, sandstone, and red brick streetscape. The project extends beyond residential delivery to activate the broader precinct through new retail spaces, activation of Brown Alley, and improved pedestrian safety and access connections.
This investment reflects strategic positioning within Australia's student accommodation market. For MaxCap, the project represents its second major PBSA development, following the successful completion of UniLodge Perth Central (736 beds) in late 2025. For Hickory, it marks the developer's second substantial investment in Melbourne's western CBD, complementing its acquisition of the former Kilkenny Inn site at 580 Lonsdale Street, where the company is currently refining development schemes in consultation with City of Melbourne authorities. The joint venture signals shared conviction that CBD markets present attractive pockets for investment as urban precincts undergo activation and revitalization.
The development responds to stated housing shortage challenges in Australia while demonstrating confidence in long-term demand sustainability from the education sector. By combining construction expertise with institutional capital and professional asset management, the partnership positions the development to deliver consistent yield generation and social infrastructure outcomes aligned with institutional investor priorities in student housing assets.
The development incorporates substantial amenity infrastructure including a library, gymnasium, cinema, music room, group dining spaces, lounges, and games areas—features increasingly demanded by institutional investors and operators in the PBSA sector. Design firm Nettletontribe has reinterpreted the site's historic context, restoring heritage elements including the Great Western Hotel facade and integrating contemporary architecture with the surrounding bluestone, sandstone, and red brick streetscape. The project extends beyond residential delivery to activate the broader precinct through new retail spaces, activation of Brown Alley, and improved pedestrian safety and access connections.
This investment reflects strategic positioning within Australia's student accommodation market. For MaxCap, the project represents its second major PBSA development, following the successful completion of UniLodge Perth Central (736 beds) in late 2025. For Hickory, it marks the developer's second substantial investment in Melbourne's western CBD, complementing its acquisition of the former Kilkenny Inn site at 580 Lonsdale Street, where the company is currently refining development schemes in consultation with City of Melbourne authorities. The joint venture signals shared conviction that CBD markets present attractive pockets for investment as urban precincts undergo activation and revitalization.
The development responds to stated housing shortage challenges in Australia while demonstrating confidence in long-term demand sustainability from the education sector. By combining construction expertise with institutional capital and professional asset management, the partnership positions the development to deliver consistent yield generation and social infrastructure outcomes aligned with institutional investor priorities in student housing assets.
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