US-based real estate investment, development and property manager Hines and Cadillac Fairview (CF), the real estate arm of Canada’s Ontario Teachers’ Pension Plan, have formed a partnership to develop and acquire up to AUD 1.5 billion of assets in the Australian build-to-rent (BTR) sector.
The partnership aims to develop, own, and operate best-in-class, international-caliber, purpose-built BTR assets across Australia and will be seeded by three BTR development sites.
“Hines has been investing in living assets across Asia for over 25 years, with recent acquisitions including co-living assets in Hong Kong and residential assets in Japan, most recently through its diversified investment fund, Hines Asia Property Partners (HAPP,)” said Chiang Ling Ng, chief investment officer for Asia at Hines. “Both Hines and Cadillac Fairview recognize Australian BTR as one of the most exciting growth opportunities in Asia,” she added.
Karl Kreppner, senior vice president, Investments Asia Pacific at Cadillac Fairview said: “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 U.S., Europe and Canada.”
The partnership’s investment strategy will focus on projects located in vibrant submarkets close to transportation, employment hubs, diverse retail offerings and entertainment centers. The developments aim to deliver tailored amenity offerings which reflect both partners’ strong ESG convictions, both locally and globally.
“Hines and Cadillac Fairview have seen the attractive long-term defensive nature of the asset class through their international portfolios,” said Sam Bisla, managing director and head of living, Australia at Hines. “We have been strategically building a portfolio and are expecting to scale up the BTR portfolio in the short term, and the scale of the partnership shows a huge strategic commitment and belief in the opportunities which BTR presents,” he added.