Sydney-based real estate investment manager – Apt.Residential – has formed a long-term partnership with PGGM Private Real Estate Fund, managed by the Dutch pension investor PGGM, for a programmatic roll out of Build to Rent developments in Australia.
With an initial focus in Sydney, the objective of the partnership is to develop and invest in a large-scale portfolio of high quality institutional rental properties. PGGM have made a substantial initial financial commitment supporting Apt.Residential’s plan to invest up to $1.5bn.
The Co-founders of Apt.Residential, led by Matt Carolan as Managing Director (ex CIO Urbanest Australia), have extensive expertise in the Australian, UK and Southeast Asian residential markets.
The senior management team has a substantial living sector track record across Build to Rent, purpose-built student accommodation (PBSA), institutional banking, investment, development, design and construction and hospitality management, over a period of 20+ years.
“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.
“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.
“We’re also aiming to deliver a positive contribution to Australia’s well documented PR-001-9.5.24-AFR-A housing shortage. Phase one of our partnership with PGGM will aim to develop over 2,500 Build to Rent apartments.”
Matt Carolan, Managing Director, Apt.Residential
PGGM is leveraging the teams’ local knowledge and experience in the living sectors, capital markets and strong governance. It will leverage this collective skillset to deliver premium grade residential developments in sought after locations.
Apt.Residential will also manage and operate the properties long-term. Its first two investments for development are already confirmed in Sydney, one of which is already on site, to be announced very soon.
The Co-founders of Apt.Residential include the senior management team of George Confos (ex CBA), Michael Hogg (ex Investa and Charter Hall), Puian Mollaian (ex TCorp and CBRE), Juey Thanyakittikul (ex Essential Living UK and Iglu) and Wei Shi (ex Iglu).
The investment manager considers sustainability and ESG as paramount in the design, delivery and operation of its communities and is targeting 5-Star Green Star performance, 7+ star NatHERS, 100% electric residences as well as Net Zero in operations, powered by 100% renewable energy.
“We are delighted to have formed a long-term partnership with Apt.Residential. PGGM Private Real Estate focuses on forming strategic partnerships with experienced teams.
“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 its clearly needed is very important for PGGM.”
Ronald Bausch, Senior Director, Private Real Estate, Asia Pacific, PGGM
