Global real estate investment manager Hines and Ontario Teachers’ Pension Plan (Ontario Teachers) have acquired two Build to Rent developments in Brisbane.
The acquisition totals 354 units and aligns with Ontario Teachers’ Real Estate’s Living strategy in Australia, which targets amenity-rich assets in vibrant submarkets close to transportation links, employment hubs, and entertainment centres.
Situated at 28 Robertson Street in Fortitude Valley, the Robertson development comprises 89 Build to Rent homes.
The building was completed in October 2021 and stabilised within six months of operations. Robertson’s ESG features include the usage of renewable energy, storm water recycling, high-performance acoustic glazing and low-energy LEDs.
“These acquisitions reflect our continued focus on actively pursuing Build to Rent opportunities in Brisbane, as well as in other key Australian cities with strong fundamentals.
“Hines sees tremendous potential in Australian Build to Rent for both investors and residents. It’s poised to offer stable cash flow and income growth while helping to meet the demand for quality rental housing in the country.”
David Warneford, Country Head of Australia and New Zealand, Hines
Situated at 13-17 Cordelia Street in South Brisbane, the Cordelia development comprises 265 premier Build to Rent homes. The scheme is expected to reach practical completion in Q1 2025.
Amenities at Cordelia include a gym, rooftop pool, residents lounge, co-working space, private dining room and a sky garden.
The development will target a 5-star Green Star rating and a 7.0 Energy Performance Rating under the Nationwide House Energy Rating Scheme (NatHERS).
“With the Australian population expected to see continued growth and consumer preferences in the country moving more towards the rental sector, we see strong, long-term potential in the Australian multi-family market.
“These assets provide us with a strategic entry point into Brisbane and, working alongside Hines and Arklife, we will look to offer a compelling value proposition for tenants and create value for our stakeholders through active asset management.”
Jun Ando, Head of Asia-Pacific Real Estate, Ontario Teachers’ Pension Plan
Private construction and property group ADCO Group has acted as vendor. The projects were managed on behalf of ADCO by Build to Rent platform, Arklife – which is also co-owned by ADCO.
Hines will provide asset management services and Arklife will continue to be the property manager for both the Robertson and Cordelia schemes.
“CBRE would like to congratulate our client, ADCO, on this landmark Build to Rent transaction.
“Through the development of this duo of top-class properties in inner Brisbane, Arklife has proven the develop and trade model even in challenging capital markets conditions.
“The Arklife brand has created a very strong customer proposition and achieved excellent investment performance since the launch of Robertson Lane.
“Upon practical completion, Cordelia Street will be a leading example of Build to Rent design in Australia. Hines and Ontario Teachers’ Pension Plan have made a very shrewd investment, and we wish them every success in the future.”
Andrew Purdon, CBRE
The transaction was brokered by Stuart McCann and Andrew Purdon from CBRE, who acted as exclusive advisors to ADCO on the sale of the portfolio.
“This transaction marks another vote of confidence in the Australian Build to Rent market.
“It highlights the growing confidence amongst global investors to deploy large equity tickets back into the real estate markets as interest rates look to compress and markets benefit from very strong rental growth dynamics as supply remains a challenge.”
Stuart McCann, CBRE
Ontario Teachers’ Real Estate believes that the multifamily and broader living sector benefits from strong macroeconomic tailwinds and favourable supply and demand dynamics.
Accordingly, Ontario Teachers’ has invested alongside like-minded local partners in living sector assets across the US, UK and Australia.
