From a $15,000 Island to MODEL's Melbourne Build-to-Rent Pipeline
In 2005, Rory Hunter bought a Cambodian island for US$15,000 after a fisherman's boat trip through Cambodia's Koh Rong Archipelago. The purchase became Song Saa Private Island, an eco-resort that opened in December 2011 with about 200 staff and nightly rates around US$2,000. Hunter later exited the business in 2020, after COVID-19 crushed hotel revenue and his wider regional expansion plans stalled.
Back in Australia, Hunter founded MODEL in 2023, a vertically integrated build-to-rent platform that develops, manages and holds apartment buildings over the long term. MODEL is targeting buildings of 150 to 300 residences in Melbourne, Sydney and Brisbane. Its first two projects are planned for Melbourne's inner-city Abbotsford, with construction expected to start at the end of 2026.
Each Abbotsford project is intended to carry Passivhaus Certification and a 6-Star Green Star Rating. A $600 million Regenerative Decarbonisation BTR Fund has been set up for the seed developments, and Hunter says the pipeline exceeds $1 billion, with a target of around $5 billion within four years. But debt and equity partners, though described as "lined up", had not yet closed at the time of the interview, and Hunter declined to name them.
The venture enters a difficult financing environment: construction costs have risen, interest rates and inflation remain uncertain, and Australian planning timelines are complex. Hunter argues those same constraints limit new supply, creating a defensible moat for projects that do reach completion.
What MODEL's Sustainability Push Means for Australia's Build-to-Rent Economics
Why Hunter shifted from build-to-sell to long-term ownership
Hunter's move from hotels to build-to-rent is more than a sector switch. He describes hotels as seasonal, high-fixed-cost, cyclical businesses exposed to external shocks such as COVID-19. Build-to-rent flips the model: the developer remains the owner and operator, so decisions are made on long-term value rather than short-term sale cost. That matches MODEL's vertically integrated structure, which combines development, investment and property management.
The green premium built into the Abbotsford projects
Passivhaus certification and a 6-Star Green Star Rating are central to MODEL's pitch. Hunter's argument is that sustainability is now a commercial filter: a building built without it ten years ago may become stranded, while a certified building remains leasable and valuable. The trade-off is cost. Sustainable construction adds upfront expense at a time when financing is already tight, so the first two projects will test whether the green premium is enough to offset higher build costs and attract tenants and capital.
Where the $5 billion pipeline meets Australia's financing reality
Hunter's supply-side logic is that high interest rates, planning complexity and construction costs make projects harder to deliver, but also restrict new supply. If MODEL reaches completion, those same obstacles become a competitive barrier for later entrants. The risk is symmetry: the constraints that protect delivered assets also slow the pipeline itself. With the $600 million fund not yet closed and no partners named, the ambitious $5 billion target remains an aspiration until the first Abbotsford financing is locked in.
What the Abbotsford Projects Mean for Investors, Developers and Tenants
- For investors: The first concrete test is whether MODEL closes debt and equity commitments for its $600 million Regenerative Decarbonisation BTR Fund and starts construction at its two Abbotsford projects by the end of 2026. Hunter says partners are "lined up", but no names or commitments have been confirmed.
- For developers and BTR entrants: MODEL's focus on 150-300 unit buildings in Melbourne, Sydney and Brisbane suggests mid-sized, inner-city projects are the platform's scalable model, but Passivhaus and Green Star certification will add capital cost that must be recovered through rents or long-term asset value.
- For potential tenants: The first Abbotsford apartments, if delivered, would add energy-efficient rental supply in Melbourne's inner city, but construction has not started and no delivery date has been confirmed; prospective renters should not rely on this stock in the near term.
Risk & Opportunity Assessment
| Commercial Risk | High | Finance for the $600 million fund had not closed at the time of the interview despite partners being described as lined up. Hunter's $5 billion four-year pipeline is unproven and exposed to higher construction costs, interest rates and inflation. |
| Competitive Risk | Medium | Australia's build-to-rent sector is small and nascent. If MODEL delivers certified buildings early it could gain first-mover advantage, but an attractive, supply-constrained market may draw established developers and institutional capital. |
| Regulatory Risk | Medium | Australian planning laws are described as complex with protracted timelines. No specific regulatory barrier is named, but planning complexity could delay the Abbotsford projects and the wider pipeline. |
| Reputation Risk | Medium | MODEL's brand rests on sustainability and delivery. Failure to close finance or meet Passivhaus and Green Star commitments could damage Hunter's credibility, while the success of Song Saa raises expectations. |
| Technology Disruption | Low | Passivhaus and 6-Star Green Star are established standards rather than new disruptive technologies. The article identifies no specific technological threat to MODEL's projects. |
| Commercial Opportunity | High | Demand for long-term rental apartments in supply-constrained Australian cities, combined with green-certified stock, could create durable and leasable assets. Hunter is targeting a pipeline of up to $5 billion within four years. |
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