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A Dutch-Australian partnership will see $1.5 billion flow to build-to-rent projects across the country.
Sydney-based real estate investment manager Apt.Residential and the investment arm of Dutch not-for-profit pension fund service provider PGGM are planning a programmatic rollout of build-to-rent projects in Australia, with an initial focus on Sydney’s rental market.
Apt.Residential has publicised its plan to put $1.5 billion into the sector, and reported that a “substantial initial financial commitment” from PGGM will go towards supporting that aim, with the partnership established in an “open-ended capacity”.
The first phase of Apt.Residential’s plans reportedly include six to eight rental housing projects comprising 2,500 units, with the first two builds having secured sites and set to be announced soon.
Apt.Residential was formally established in 2022 with a heavyweight team of co-founders. Together, the leaders’ backgrounds span many of the biggest firms across commercial and residential real estate. Matt Carolan, the former chief investment officer of Urbanest Australia, will serve as managing director, with co-founders Michael Hogg (formerly Investa and Charter Hall), Puian Mollaian (formerly TCorp and CBRE), Juey Thanyakittikul (formerly Essential Living UK and Iglu) and Wei Shi (formerly Iglu) occupying senior management positions.
The experienced team has set a big list of goals for its forthcoming projects, aiming for all of its complexes to be rated five-star Green Star for performance, seven-plus-star NatHERS, 100 per cent electric as well as net zero in operations, and powered by 100 per cent renewable energy.
Carolan explained that the firm is “committed to producing sustainable buildings with connected and thriving communities that will help provide positive social and environmental improvement, across the localities in which we operate. We’re also aiming to deliver a positive contribution to Australia’s well-documented housing shortage”.
He commented that PGGM’s long-term commitment reflects “their confidence in the experience of our people and our Sydney-centric business strategy and the future of build-to-rent residential real estate in Australia”.
Ronald Bausch, senior director of private real estate, Asia Pacific, at PGGM, said that the firm is “delighted” to have struck up the partnership.
“PGGM Private Real Estate focuses on forming strategic partnerships with experienced teams. Investments are well-chosen in a sector where specific building and related location selection are paramount in generating attractive returns. Apt.Residential’s focus on delivering sustainable housing at a time when its clearly needed is very important for PGGM,” he commented.
ABOUT THE AUTHOR
Juliet Helmke
Based in Sydney, Juliet Helmke has a broad range of reporting and editorial experience across the areas of business, technology, entertainment and the arts. She was formerly Senior Editor at The New York Observer.
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