Mirvac has agreed to pay $333.5 million for 490 rental apartments to be built opposite Melbourne’s Queen Victoria Market.

The ASX-listed property group, which last week raised $750 million to fund acquisitions, says the agreement with developer PDG for the so-called build-to-rent units is contingent on planning and redesign.

Mirvac has already entered the build-to-rent sector, in which a corporate landlord rents units on a long-term basis, with the Pavilions project at Sydney Olympic Park.

“We believe build-to-rent can revolutionise the rental experience with improved choice, quality and security of tenure,” Mirvac chief executive and managing director Susan Lloyd-Hurwitz said.

“It will deliver a secure and valuable revenue stream, as well as presenting us with a new and growing customer base.”

The Munro site on Therry Street was among those named by Mirvac in the investor presentation that accompanied last week’s capital raising.

Mirvac shares were priced at $3.09 before the start of trade on Tuesday, up 38 per cent this calendar year.