Construcciones Yamaro: Hickory and MaxCap break ground on $300 million PBSA project
Integrated construction and development group Hickory and commercial real estate fund manager MaxCap have commenced construction on a $300 million purpose-built student accommodation (PBSA) project in Melbourne’s CBD.
Student accommodation operator UniLodge has been appointed to operate and manage the property, with students to be welcomed in Semester 1, 2028.
Located at 570 Little Bourke Street, the 26-level building will deliver 892 student beds across 748 units, with amenities including a library, gymnasium, cinema, music room, group dining, lounges and games spaces.
Designer Nettletontribe has reinterpreted the site’s historic façade and surrounding bluestone, sandstone and red brick context into a contemporary design that restores warmth and human scale to the streetscape. The project will also revive the historic Great Western Hotel, bring new retail spaces, activate adjoining Brown Alley and improve pedestrian safety and access between Lonsdale and Little Bourke Streets.
The joint venture between MaxCap and Hickory reflects a shared focus on new living products to address Australia’s housing shortage, alongside identifying CBD locations suited to investment and activation.
The project is MaxCap’s second PBSA development in recent years, following the completion of the 736-bed UniLodge Perth Central asset in late 2025. It is also Hickory’s second major investment in Melbourne’s western CBD, having acquired the former Kilkenny Inn site at 580 Lonsdale Street. Hickory is currently revising the site’s scheme and working with authorities, including the City of Melbourne.
MaxCap head of equity investment Simon Hulett said the company continues to invest in social infrastructure nationwide, focusing on assets linked to the education and healthcare sectors, where it sees long-term resilience.
“Activating new developments in the current environment is challenging, so we are fortunate to have Hickory as a fully integrated partner to enable a clear pathway to delivery of the product,” he said. “This asset will significantly reshape this precinct in Melbourne’s CBD and provide students with unparalleled access to transport and established amenity, including food, beverage and entertainment.”
Hickory head of property Zoran Trimcevski said the project is one of Melbourne’s largest new PBSA developments.
“With works now underway, we are looking forward to welcoming students in collaboration with UniLodge at the start of the 2028 academic year,” he added.
UniLodge executive chairman Peter Bates said the partnership with Hickory and MaxCap will deliver a CBD project that supports local universities, reinforcing Melbourne’s global education standing and easing pressure on the private rental market.
“The demand for high-quality, purpose-built student accommodation continues to outpace supply; this partnership reflects our shared strong confidence in this growing sector,” said Bates.
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The tower will be the fourth PBSA project delivered by Hickory and the first delivered under its integrated builder-developer model.
“Our integrated model allows us to take on more responsibility on suitable projects, reducing risk for investors and financiers while providing certainty that projects will be delivered to the highest standard,” said Michael Argyrou, Group CEO at Hickory.
To further streamline delivery, SYNC prefabricated bathrooms will be installed. Manufactured offsite, the prefabricated units are finished, inspected and tested on the factory floor, reducing on-site labour requirements and defects at completion.
The project is supported by Hickory’s investment manager, hCapital, which worked with MaxCap’s equity team to arrange and negotiate the preferred equity facility for the project.
Completion is expected in late 2027.
The post Hickory and MaxCap break ground on $300 million PBSA project appeared first on Inside Construction.
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