Developer Mirvac has expanded its relationship with Australian Retirement Trust (ART), with ART acquiring a 48.5% interest in Mirvac’s $1.7bn LIV Mirvac Fund from a founding investor.
Mirvac will continue to provide investment management, property management, development management and construction services to the Fund.
The Clean Energy Finance Corporation (CEFC), who were early investors in Mirvac’s Build to Rent journey at their first asset, LIV Indigo in Sydney, retain their investment in the Fund and are also aligned with the Fund’s growth ambitions.
“Australian Retirement Trust is a highly valued capital partner. Today’s transaction is testament to our strong and deepening relationship, as well as a shared commitment to growing our Build to Rent portfolio, where we see strong tailwinds and significant potential for scale and growth.
“Following the completion of LIV Anura in Brisbane and LIV Albert in Melbourne this year, LIV Mirvac is the largest operational Build to Rent portfolio and platform in Australia, with around 2,200 apartments developed by Mirvac, and a clear strategy to grow this to at least 5,000 apartments in the medium term.
“Our LIV Mirvac Fund with Australian Retirement Trust and co-investors Clean Energy Finance Corporation will play a key role in achieving this target, helping to deliver much-needed housing supply in Australia’s key capital cities.
“Australian Retirement Trust’s investment in the Fund demonstrates significant support for our Build to Rent portfolio and our growth strategy, as well as confidence in the Build to Rent sector overall. It’s also great to see support from Australian super funds for housing in Australia.
“The Build to Rent sector in Australia is expanding rapidly, with an estimated 39,000 apartments in the pipeline, valued at around $30bn. This represents growth of approximately $9bn over the past 12 months alone.
“Today’s announcement is testament to the increased support from Federal and State Governments for Build to Rent, ensuring the right policy settings are in place to attract international and domestic investment to the housing sector.”
Campbell Hanan, CEO & Managing Director, Mirvac Group
Mirvac and its partners have a strong focus on sustainability within the Fund, with all new developments targeting a minimum 7.5-star NatHERS rating and net zero carbon operational emissions in operations.
At the recently completed LIV Albert in Melbourne, the scheme achieved an average 8.2 NatHERS rating – the highest of any Mirvac apartment building to date – with the all-electric building running on 100% renewable energy and all apartments fitted with energy-efficient appliances, including induction cooktops.
“Our investment in the LIV Mirvac Fund provides us with excellent exposure to one of the fastest growing asset classes in Australia, supported by strong market fundamentals and a positive growth outlook.
“We’ve been a long-term investor in Build to Rent projects in the US and see this investment as an incredibly exciting opportunity here in Australia. This investment aims to contribute to housing supply locally, while delivering a return which is in our members’ best financial interests.
“Mirvac was a pioneer of Build to Rent in Australia and has a strong track record of delivering high-quality, sustainable assets. We are pleased to be partnering with Mirvac, and we look forward to being able to grow the Fund into the future.”
Michael Weaver, General Manager – Mid-Risk Assets and UK, Australian Retirement Trust
This news follows ART’s investment in the Mirvac Industrial Venture (MIV), where it has a 49% interest in Switchyard, Aspect Industrial Estate, and Stage One of SEED in Western Sydney, alongside a 33% interest in South Eveleigh, Sydney, and an investment in the Mirvac Wholesale Office Fund.
