Sydney firm secures $1.5bn build-to-rent deal with dutch investor

Market Insights
2 weeks ago
2 minutes

Sydney-based Apt.Residential, a real estate investment manager, has forged a significant long-term partnership with Dutch pension investor PGGM's private real estate fund. The collaboration focuses on the roll-out of Build-to-Rent residential projects in Australia, with efforts initially concentrating on Sydney.

This partnership aims to develop a large-scale portfolio of institutional rental properties. To support Apt.Residential’s investment plan, PGGM has made a considerable initial monetary commitment, paving the way for an investment up to $1.5 billion.

The principals of Apt.Residential, headed by Managing Director Matt Carolan, have garnered substantial expertise in various residential markets across Australia, the United Kingdom, and Southeast Asia over 20+ years. This team, combined with Apt.Residential’s business strategy, is anticipated to deliver a premium grade residential living in sought after locations in Australia.

"PGGM's long-term commitment to Apt.Residential 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," said Matt Carolan. 

Managing Director of Apt.Residential, Matt Carolan 

"Apt.Residential 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,” he further commented. 

He also added, “We’re also aiming to deliver a positive contribution to Australia’s well-documented housing shortage. 

"Phase one of our partnership with PGGM will aim to develop over 2,500 Build-to-Rent apartments.”

Sustainability and ESG are key factors in the design, delivery, and operation of Apt.Residential's developments, with targets of 5-Star Green Star performance, 7+ star NatHERS, and Net Zero in operations, powered by 100% renewable energy.

“We are delighted to have formed a long-term partnership with Apt.Residential," said Ronald Bausch, Senior Director of Private Real Estate, Asia Pacific on behalf of PGGM.

"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 it’s clearly needed is very important for PGGM."

The collaboration is already bearing fruit, with their first two investments for development confirmed in Sydney, one of which is onsite, with announcements anticipated soon.

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