Pro-invest Group and Japanese construction firm Kajima have established a new joint venture that aims to deliver new Build to Rent developments across Australia.
The joint venture begins with an initial commitment of A$500m and has plans to grow its investment to manage assets worth up to A$1.5bn. Additional capital will be raised from third-party investors to scale the platform further.
Targeted locations for development include inner-city and fringe areas of Sydney, Melbourne and Adelaide, alongside the regional city of Newcastle. The partnership aims to address a critical undersupply in the rental market, driven by population growth, rising rents and limited housing availability.
“We see huge opportunities for growth in the Build to Rent sector in Australia and are pleased to work with Pro-invest Group to develop some ground-up projects in key urban centres. These developments will prioritise sustainability, community, and affordability and will help address the shortfall in supply of quality rentals in the market.”
Tatsuru Isano, Managing Director, Kajima Australia
Pro-invest, which oversees A$3bn in assets including a portfolio of 32 hotels in Australia and New Zealand, entered the Build to Rent market two years ago. The company brings its operational expertise from the hospitality sector to the joint venture.
Kajima, established in 1840 and listed in Tokyo, has been active in Australia’s construction market since acquiring Icon Development in 2015. The firm has continued to expand its local footprint, including a recent logistics partnership.
“We are excited to announce this joint venture with Kajima, which will bring their construction expertise to our experience in operating world-class hospitality and real estate assets. Population growth, higher rents, and an undersupply mean ground-up Build to Rent has strong tailwinds for the next decade.”
Ronald Barott, Founding Partner and Chairman, Pro-invest Group
The joint venture also comes at a time when Government support for the Build to Rent sector is growing. Policy reforms such as Victoria’s 50% land tax discount for Build to Rent properties and New South Wales’ initiatives for essential worker housing are helping create a favourable environment for institutional investment.
This alignment between private capital and public policy is seen as critical for addressing Australia’s housing shortfall.
Build to Rent is gaining recognition as an institutional-grade asset class, with increasing investor confidence driven by strong demand and supportive regulatory changes. Pro-invest and Kajima’s partnership is well-positioned to deliver both financial returns and social impact.
