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 delivery in late 2027 with student occupancy in Semester 1, 2028.
- • The 26-level development will deliver 892 student beds across 748 units, with UniLodge—Australia's largest student accommodation operator—appointed as property manager, positioning the asset within an established operational network.
- • This represents MaxCap's second major PBSA investment following the successful completion of its 736-bed UniLodge Perth Central asset in late 2025, signaling continued institutional capital deployment into the Australian student housing sector.
- • The project includes premium amenities (library, gymnasium, cinema, music room, dining, lounges) and architectural restoration of the historic Great Western Hotel, plus retail activation and pedestrian safety improvements to the surrounding streetscape.
- • The joint venture demonstrates institutional appetite for addressing Australia's housing shortage while capitalizing on undervalued CBD real estate, with Hickory also acquiring adjacent 580 Lonsdale Street for a second major western Melbourne CBD development.
Summary
Hickory, an integrated construction and development group, and MaxCap, a commercial real estate fund manager, have commenced construction on a $300 million purpose-built student accommodation project in Melbourne's central business district. The 26-level tower, located at 570 Little Bourke Street, will deliver 892 student beds distributed across 748 units. Construction began recently with completion targeted for late 2027 and student occupation commencing in Semester 1, 2028.
UniLodge, Australia's largest student accommodation operator, has been appointed to manage and operate the completed property, ensuring integration with an existing platform of operational assets. The building incorporates a comprehensive amenity suite including a library, gymnasium, cinema, music room, group dining facilities, lounges, and games spaces—standard-issue premium features in contemporary PBSA developments targeting international and domestic student demographics.
The architectural design, executed by Nettletontribe, restores historic facade elements and references the neighborhood's bluestone, sandstone, and red brick character while delivering a contemporary aesthetic. The development revives the historic Great Western Hotel, introduces new retail space, activates the adjoining Brown Alley, and improves pedestrian connectivity and safety between Lonsdale and Little Bourke Streets. This approach signals institutional recognition that student accommodation development can catalyze broader CBD revitalization, addressing both housing supply and urban activation objectives.
For MaxCap, this $300 million Melbourne project represents its second major PBSA commitment in recent years, following the successful delivery of its 736-bed UniLodge Perth Central asset in late 2025. For Hickory, the project marks the firm's second significant western Melbourne CBD investment, complementing its acquisition of the former Kilkenny Inn site at 580 Lonsdale Street, where the company is currently revising development schemes in coordination with the City of Melbourne. The partnership underscores sustained institutional capital targeting purpose-built student housing as a resilient asset class amid Australia's structural undersupply of both student and general residential accommodation.
UniLodge, Australia's largest student accommodation operator, has been appointed to manage and operate the completed property, ensuring integration with an existing platform of operational assets. The building incorporates a comprehensive amenity suite including a library, gymnasium, cinema, music room, group dining facilities, lounges, and games spaces—standard-issue premium features in contemporary PBSA developments targeting international and domestic student demographics.
The architectural design, executed by Nettletontribe, restores historic facade elements and references the neighborhood's bluestone, sandstone, and red brick character while delivering a contemporary aesthetic. The development revives the historic Great Western Hotel, introduces new retail space, activates the adjoining Brown Alley, and improves pedestrian connectivity and safety between Lonsdale and Little Bourke Streets. This approach signals institutional recognition that student accommodation development can catalyze broader CBD revitalization, addressing both housing supply and urban activation objectives.
For MaxCap, this $300 million Melbourne project represents its second major PBSA commitment in recent years, following the successful delivery of its 736-bed UniLodge Perth Central asset in late 2025. For Hickory, the project marks the firm's second significant western Melbourne CBD investment, complementing its acquisition of the former Kilkenny Inn site at 580 Lonsdale Street, where the company is currently revising development schemes in coordination with the City of Melbourne. The partnership underscores sustained institutional capital targeting purpose-built student housing as a resilient asset class amid Australia's structural undersupply of both student and general residential accommodation.
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