Commonwealth Bank is providing a $168 million loan to apt.Residential to support a build-to-rent development in Sydney. The project aims to help ease Australia’s housing shortage, although escalating property costs continue to present challenges.
The development is located in Meadowbank and will include around 300 rental units along with a substantial retail precinct anchored by Coles. This project highlights an increasing willingness among major lenders to back build-to-rent projects even as developers face ongoing pressures from high interest rates and elevated construction costs.
Apt.Residential is working on the project in partnership with Dutch pension fund PGGM. The mixed-use site, known as Meadowbank Corner, is scheduled for completion in the third quarter of 2026. PGGM has already invested $700 million in apt.Residential and was previously involved in a $1.5 billion rental housing venture in Australia with US investment group Sentinel.
CBA’s participation in this project demonstrates growing interest from lenders in build-to-rent investments. While the bank previously contributed $130 million to fund an indie BTR tower in Sydney’s CBD in 2021, the Meadowbank loan is notable as it supports a mid-sized developer. The project also includes sustainability features such as rooftop solar panels and 17 electric vehicle charging bays, aiming for a 5 Star Green Star rating.
Nationwide, the build-to-rent sector is gaining momentum. CBA has backed similar projects in Queensland and Victoria as major banks seek to meet demand in undersupplied rental markets. Developers report increased confidence and smoother planning processes across states. Although land and construction costs remain high, consistent government backing and growing tenant interest are helping to drive the sector forward.
