Developer Mirvac has established a new $1.8bn Build to Rent venture with well-capitalised cornerstone investors, including the Clean Energy Finance Corporation (CEFC).
The company will retain a 44% interest in the venture with CEFC and other selected investors.
“We are thrilled to have established a new Build to Rent Venture with high-quality capital partners. Our ability to attract capital partners of this calibre is a great endorsement of the product we deliver and reinforces our reputation as a trusted partner.
“Mirvac is Australia’s first large-scale owner and operator of Build to Rent assets, with around 2,200 lots in our secured pipeline and an expected end value of $1.8bn. The establishment and capitalisation of the venture supports our vision to increase our exposure to the Build to Rent sector, grow our portfolio to at least 5,000 apartments in the medium term, and play a key role in helping solve the housing and rental shortfall in Australia.”
Campbell Hanan, CEO & Managing Director (MD), Mirvac Group
The venture comprises Mirvac’s operational Build to Rent assets (LIV Indigo in Sydney and the recently completed LIV Munro in Melbourne), as well as its Build to Rent pipeline assets including LIV Anura in Brisbane, and LIV Aston and LIV Albert Fields in Melbourne.
“The Build to Rent sector is an emerging asset class in Australia with the potential for significant growth, as well as considerable scope to make a meaningful impact on the decarbonisation of the broader residential property sector. We’re pleased to help extend the benefits of Mirvac’s Build to Rent developments to increase the supply of energy efficient housing, with each new development project targeting a minimum average of 7.5 star NATHERS rating and net zero carbon emissions in operations. It is particularly exciting to be working with Mirvac on this ambitious Build to Rent strategy, which continues to drive enhanced sustainability outcomes for owners and tenants over the life of the asset.”
Michael Di Russo, Head of Property, CEFC
Mirvac will provide investment management, property management, development management and construction services.
“The Albanese Government wants all Australians to be able to save on energy, and save on bills, not just those who own their own home. Improving energy efficiency in these apartments is crucial in cutting power bills over the long term for renters, and today’s announcement adds to the $1.7bn in energy saving upgrades for homes, businesses and communities in the budget.”
Hon. Chris Bowen, Minister for Climate Change and Energy
As part of this transaction, Mirvac will continue to source and secure new opportunities for the venture, including it’s ~$30bn development pipeline and through selective sourcing of off-market and on-market opportunities.
Founded in 1972, Mirvac is an Australian property group with a clearly defined purpose to reimagine urban life – by creating beautiful homes, inspiring workplace precincts and thriving shopping centres.
The company has become a thriving ASX-listed property group that leads the way in innovation, sustainability and placemaking.
