Greystar announces the definitive closure (subject to regulatory approvals) of its investment vehicle in Australia, Greystar Australia Multifamily Venture I (GAMV I), with a full capital commitment of 1.3 billion Australian dollars.
In the final close, Ivanhoé Cambridge and a leading European institutional investor joined founder APG Asset Management to establish Australia's largest Build-to-rent company to date. The partnership will work together to offer a new generation of high quality rental housing, built with the best services and amenities to meet the rapidly evolving needs of Australia's rental demand.
Graeme Torre, Managing Director of APG Asset Management Asia, said, "We consider that it is simply a matter of time before the residential construction-for-rent sector takes hold in all of the key Asia-Pacific markets. So we are not surprised that large Investors such as Ivanhoé Cambridge have opted for the sector alongside APG in a market as sophisticated as Australia. Bearing in mind that continuous urbanization is a key requirement for all of us to have the opportunity to meet climate targets and the consequent need to provide With more housing options, Build-to-Rent is presented as an essential asset class beyond the economy.At APG, on behalf of our pension fund clients, we have a strong and global conviction towards this sector, and we are delighted that these partners are joining us and Greystar in making the industry firmly established in Australia."
Adam Pillay, Senior Managing Director Asia Pacific for Greystar, stated that "the strong performance that we have seen across our entire business globally, despite the challenges and uncertainty that have come with the onset of the global pandemic, only has served to bolster our confidence, and that of our global partners, in the resilience of the rental housing sector.The robust national response to the pandemic in Australia, where underlying fundamentals remain attractive and signs of Market recovery are underway, underscores our belief in the long-term investment opportunity in institutional rental housing in this key market. "
For his part, George Agethen, Senior Vice President Asia Pacific at Ivanhoé Cambridge, said that "the importance of rental housing is a key global conviction for Ivanhoé Cambridge, and we are delighted to expand our exposure to Australia together with Greystar and APG As pioneers in the industry, we are excited to contribute to the institutionalization of Build-to-Rent in Australia, and this company will seek to set new benchmarks in customer service and service delivery, while offering a greater peace of mind for tenants. "
Chris Key, Managing Director of Greystar Australia, referred to "the quality of the rental experience that Build-to-Rent offers to residents of the world's major urban centers is not offered today in Australia. We plan to offer housing Next-generation, future-oriented rental homes with abundant common spaces and personalized services, designed to offer residents a first-class experience. These projects will be designed to adapt to the needs of residents in a rapidly changing world. will take into account designing and creating seamless connections with surrounding neighborhoods to support the urban future of our major cities, while fostering a unique sense of community among those who live in our buildings."
In addition to GAMV I's previously announced acquisition of two properties for development in the Melbourne indoor market of South Yarra, Greystar has also secured a second project on behalf of GAMV I on Gladstone Street, South Melbourne, which is part of the Fishermans Bend town. Thus, the company plans to start both projects at the end of this year, with which it will have the possibility of delivering more than 1,300 new rental homes and creating approximately 2,000 jobs during 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 tenants to enjoy for many years to come. As we face a significant decline in high-density construction in the coming years, this partnership provides us with an opportunity to contribute to Australia's job creation and post-Covid-19 economic recovery," said Mr. Key .
Disclaimer: Information collected through a Greystar Press Release