Australian property investor Cedar Pacific and Sumitomo Forestry Co. Ltd, a major Japanese company engaged in various businesses relating to forestry and wood management, including development, have announced a new strategic partnership to develop Build to Rent assets in Australia and New Zealand.
The joint venture will focus on developing Build to Rent communities that are both well-designed and amenity-rich, as well as built with a focus on environmental sustainability and social responsibility.
“We are committed to expanding our sustainable development business globally, and this partnership with Cedar Pacific represents a significant step forward.”
Yasuhiro Odagane, Managing Director, Sumitomo Forestry Australia
The new partnership will leverage the pairs expertise to deliver high-quality, sustainable residential communities, which will support the growing demand for rental housing in the region.
“This partnership allows us to combine both companies’ development expertise with leading-edge sustainability practices, creating communities that are not only desirable places to live but also contribute positively to the environment and communities in which they are located. We are honoured to partner with Sumitomo Forestry to develop high-quality Build to Rent communities in Australia and New Zealand.”
Bernie Armstrong, CEO, Cedar Pacific
Cedar Pacific’s development expertise in Australia and New Zealand will be paired with Sumitomo Forestry’s deep understanding of sustainable timber building solutions and commitment to ESG principles.
“Our combined expertise will allow us to deliver innovative Build to Rent communities that promote the use of timber technologies such as Cross Laminated Timber (CLT) to meet the needs of residents and contribute to the creation of a more sustainable future.”
George Konstandakos, General Manager, Sumitomo Forestry Australia
The first planned development is 50 Quay Street in Brisbane, which is part of the State of Queensland Treasury’s affordable Build to Rent pilot program. The scheme will deliver 475 apartments overlooking the Brisbane River. 50% of the apartments will be offered at below market, affordable rents.
Hutchinson Builders has started construction of the scheme, which is being built to 5-star Green Star standards with the intention to operate at net carbon neutral from day one.
Savills Capital Advisors and Savills Australia and New Zealand advised Cedar Pacific on the capital raise.
“Build to Rent continues to provide investors with attractive risk adjusted returns, given the favourable supply/demand dynamics and resilient cash flows. As a leading platform, with both Build to Rent and PBSA expertise, we are delighted to have assisted Cedar Pacific in securing this first tranche of capital with a high-quality institutional investor.”
Joe Guilfoyle, co-Head of Savills Capital Advisors
The joint venture is expected to develop a significant portfolio of Build to Rent assets across Australia and New Zealand in the coming years. A pipeline of other projects in Melbourne, Canberra, Brisbane and Auckland – and details of the developments – will be announced in due course
“With record low residential vacancies of sub-1% nationally in Australia, rents continuing to increase, and housebuilding falling, we see Build to Rent playing an increasingly important role in plugging this housing gap. We are pleased to have assisted Cedar Pacific in this new partnership and look forward to seeing new sustainable homes delivered across under supplied markets.”
Conal Newland, Head of Operational Capital Markets, Savills Australia and New Zealand
