Greystar has closed the largest Australian build-to-rent fund with capital commitments of AUS$1.3bn (£730m).
The US-headquarted rental giant has secured finance from Ivanhoe Cambridge and major European institutional investor in the final close, joining founding investor APG Asset Management.
Greystar Australia Multifamily Venture I (GAMV I) will develop 5,000 homes with a focus on markets in Sydney and Melbourne.
The fund has acquired two projects for development in South Yarra in inner Melbourne and at the Fishermans Bend urban regeneration in south Melbourne. Greystar will begin development this year, with plans for more than 1,300 homes across the two.
Adam Pillay, senior managing director of Asia-Pacific for Greystar, said: “The strength of the national response to the pandemic in Australia, where underlying fundamentals remain attractive and the signs of market recovery are under way, underlines our conviction in the opportunity for long-term investment in institutional rental housing in this key market.”
Chris Key, managing director of Greystar Australia, added: “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.”
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