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A new, “exciting” partnership has been struck with the capacity to develop and acquire up to $1.5 billion worth of build-to-rent (BTR) assets.
Hines and Cadillac Fairview have revealed they will be teaming up to give the BTR industry in Australia a push — Hines as a global real estate investor, investment, and development manager and Cadillac Fairview (CF) as the real estate arm of the Ontario Teachers’ Pension Plan. According to a statement, the partnership aims to “develop, own, and operate best-in-class, international-calibre, purpose-built BTR assets across Australia and will be seeded by three BTR development sites”.
Chiang Ling Ng, chief investment officer for Asia at Hines, said the group’s newest investment plan is the latest in a long line of “investing in living assets across Asia”, which dates back a quarter of a century.
“Recent acquisitions include co-living assets in Hong Kong and residential assets in Japan, most recently through its diversified investment fund, Hines Asia Property.
“Both Hines and Cadillac Fairview recognise Australian BTR as one of the most exciting growth opportunities in Asia,” she added.
Additionally, Karl Kreppner, Cadillac Fairview’s senior vice-president of investments Asia-Pacific region, explained, “the residential sector is a key area of focus for Cadillac Fairview globally, and we are pleased to be investing in the sector in Australia alongside Hines”.
“This investment aligns with our strategic objective of expanding our investment portfolio in Asia by forming partnerships with best-in-class operators and developers in attractive asset classes, such as residential, office, and logistics. It also complements our global residential portfolio, which includes large active pipelines across the US, Europe, and Canada.”
A core component of the collaboration’s investment strategy is focusing on projects located in vibrant submarkets within proximity of transportation, employment hubs, diverse retail offerings, and entertainment centres, with an additional aim to deliver amenity offerings that reflect both partners’ strong local and global ESG convictions.
The Hines and Cadillac Fairview project is the latest in a host of private and public investments into the booming BTR sector — which has seen over $3.5 billion raised and committed to the industry since January 2021, which led to a report from BIS Oxford Economics revealing “over 10 per cent of new national apartment supply by 2025” would be through BTR projects.
Last month the ACT government announced its first BTR site, located in the suburb of Turner, had been released for sale. Similarly, the West Australian and Victorian governments have recently pushed ahead on BTR projects with the aim of boosting social and affordable housing supply and ease rental market pressure.
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