Hines and Cadillac Fairview announce $1.5 billion investment in Australian build-to-rent sector

Market Insights
1 year ago
2 minutes

Hines and Cadillac Fairview have announced a partnership to develop and acquire up to $1.5 billion in assets in the Australian Build-to-Rent (BTR) sector. Hines is a global real estate investor, investment and development manager and Cadillac Fairview (CF) is the real estate arm of the Ontario Teachers’ Pension Plan. 

The partnership has come about in an effort to leverage both Hines’ and Cadillac Fairview’s expertise in the global residential sector. Together, Hines and CF will develop, own, and operate best-in-class, international-calibre, purpose-built BTR assets throughout Australia. The partnership will be seeded by three BTR development sites, including 10 Ballarat Street, Brunswick, 36-58 Macauley Road, North Melbourne, as well as 15-33 Bank Street and 35-37 Bank Street, South Melbourne. 

Chiang Ling Ng, Chief Investment Officer for Asia at Hines, said “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). Both Hines and Cadillac Fairview recognize Australian BTR as one of the most exciting growth opportunities in Asia.” 

Karl Kreppner, senior vice president of 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 out strategic objective of expanding our investment portfolio in Asia by forming partnerships with best-in-class operators and developers in attractive assets 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.” 

“Hines and Cadillac Fairview have seen the attractive long-term defensive nature of the asset class through their international portfolios,” said managing director and head of living, Australia at Hines, Sam Bisla. “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.” 

Projects located in vibrant submarkets close to transportation, employment hubs, diverse retail offerings and entertainment centres will be a key focus of the partnership’s investment strategy. The developments will deliver tailored amenity offerings and will reflect the strong local and global ESG convictions of both Hines and CF. 

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