This article is from the Australian Property Journal archive
GLOBAL player Greystar Real Estate Partners has raised $1.3 billion to invest in Australia’s build to rent housing.
In the final close of the Greystar Australia Multifamily Venture I (GAMV I), Ivanhoé Cambridge and a major European institutional investor joined founding investor APG Asset Management to establish Australia’s largest Build-to-Rent venture to-date.
The partnership will work together to deliver purpose built rental housing and will primarily focus on the Sydney and Melbourne rental residential markets.
APG Asset Management Asia managing director Graeme Torre said the group has strong and global conviction to this sector.
“We are delighted to have these partners join with us and Greystar to cause the sector to now become firmly established in Australia.
“We see it as simply a matter of time before the build-to-rent residential sector gains a foothold in all the key Asia-Pacific markets. So, it is no surprise to us that major investors such as Ivanhoé Cambridge have committed to the sector alongside APG in a sophisticated market such as Australia. With continued urbanisation being a key requirement if we are all to have a chance of meeting climate goals and the consequent need to provide more housing options, Build-to-Rent presents as an essential asset class beyond just the economics.” Torre said.
Greystar Asia Pacific senior managing director Adam Pillay said the challenges and uncertainty brought on by the global pandemic has only served to reinforce its confidence in the resilience of the rental housing sector.
“The strength of the national response to the pandemic in Australia, where underlying fundamentals remain attractive and the signs of market recovery are underway, underlines our conviction in the opportunity for long-term investment in institutional rental housing in this key market,” he added.
Ivanhoe Cambridge Asia Pacific senior vice president George Agethen said as an early mover in the sector, the group is excited to contribute to the institutionalisation of Build-to-Rent in Australia.
In addition to the previously announced acquisition by GAMV I of two properties for development in the inner Melbourne market of South Yarra, Greystar has also secured a second project on behalf of GAMV I in Gladstone Street, South Melbourne, part of the Fishermans Bend urban regeneration precinct.
Greystar plans to commence both projects later this year with the projects having the potential to deliver over 1,300 new rental homes and create approximately 2,000 jobs over their construction phase.
“With the resources and global expertise of our trusted capital partners, we have the opportunity to deliver over 5,000 new homes for Australian renters to enjoy for many years to come,” Greystar Australia managing director Chris Key said.
“As we face a major downturn in high density construction in the coming years this partnership provides us with the opportunity to make our own contribution to Australian job creation and the economic recovery post Covid-19.” Key concluded.
