Hamton and Hostplus land $7bn Arden Central contract to build 5,400 homes a walk from Melbourne CBD

HouGarden Australia, 22 October — Development Victoria, the Victorian Government's development agency, oversaw the competitive tender and appointed the Hamton-Hostplus joint venture ahead of three other shortlisted consortiums: Lendlease partnered with Assemble; Gurner and MAB Corporation; and Australian Unity with Formus Property. Hamton and Hostplus led a broader consortium of partners and collaborators to secure the contract.

The precinct is planned to accommodate more than 10,000 residents across more than 5,400 homes — a figure the Victorian Government says is more than 50 per cent above the original target of 3,500 dwellings.

Hamton founder and executive chairman Paul Hameister said the proximity to the CBD and the state's rail investment were the twin foundations of the project. 'Opportunities to create an entirely new part of Melbourne at this scale, just 1.5 kilometres from the CBD, will not be replicated in modern times,' he said. 'Without the Victorian Government's investment in Arden Station, an opportunity of this scale and significance simply would not have been possible.'

Hostplus is an industry super fund with more than two million members, more than 330,000 contributing employers and more than A$160 billion in funds under management. Chief executive David Elia framed the investment in terms of member returns as much as housing supply. 'By helping build the future of Arden Central, we're also helping build the financial futures of our members through an investment designed to deliver long-term value,' he said.

The two organisations are already joint venture partners on another large Melbourne project — the $3.5 billion redevelopment of Moonee Valley Racecourse, where the state fast-tracked approval in October last year for a $709 million stage comprising 1,092 homes.

The timeline for Arden Central runs across four distinct phases. Major civil infrastructure works are expected to begin in 2027. The first residential building is targeted for completion by 2032. Stage One, which covers about 45 per cent of the overall precinct area and targets approximately 1,700 homes along with key amenities and public spaces, aims to have those dwellings completed by 2033. The full precinct will then be delivered progressively over the following years, with the entire 25-year build-out concluding well into the 2040s.

On housing affordability, two separate commitments apply. Up to 10 per cent of Stage One homes will be offered to first home buyers. Separately, a minimum of 10 per cent of housing across the entire precinct must be classified as affordable housing. These are distinct obligations and apply at different scales.

The precinct will include a range of non-residential uses. Live Nation will build and operate a 5,000-capacity live music venue expected to host more than 100 events a year. Live Nation Australia and New Zealand president Alex Klos said the venue would 'fill an important gap in the market, while helping establish Arden Central as a vibrant new destination for live entertainment.'

Melbourne Victory Football Club will relocate its operations to a new Arden Campus, incorporating facilities for women's and youth female pathway programs, a Community Field and a Community Hub to be shared with community soccer teams, a university partner and future schools. North Melbourne Football Club, which has been based in the area for 150 years, will serve as a Place Partner.

The University of Melbourne will establish MSD+, an extension of its Melbourne School of Design, funded in part by a developer-funded research grant running for the life of the project and operated in partnership with not-for-profit Nature Based Cities. The university says the MSD+ building is due to be completed in late 2027.

Retail and hospitality will be anchored by a full-line Coles supermarket, supplemented by a gym, childcare facilities and commercial space. Land has been set aside for a future government primary school. The state has also secured two lots beside Arden Station on Arden Street for a new vertical public secondary school — which the government says will be the first government secondary school built in the City of Melbourne since University High School was founded in 1910.

More than 45 per cent of the 12-hectare site will be allocated to parks and gardens, including 5.5 hectares of open space, eight new parks, community sporting fields and a 7,500-square-metre park designed to reference the area's historic blue saltwater lake.

Once fully operational, the precinct is expected to support more than 1,100 full-time equivalent on-site jobs. During construction, the Victorian Government says the project will generate around 3,800 construction jobs.

The Arden Central project illustrates a growing pattern in Australian property development: large industry super funds deploying long-term capital directly into major residential precincts rather than through listed vehicles or intermediaries. For investors in Australia and New Zealand watching institutional capital flows, the Hostplus model at Arden — alongside its parallel commitment at Moonee Valley — offers a concrete example of how patient superannuation money is being channelled into the housing supply pipeline.