Cadillac Fairview and Hines create A$1.5bn Australia BTR venture

The real estate arm of the Ontario Teachers’ Pension Plan and Hines have formed a build-to-rent (BTR) partnership in Australia to develop and buy up to A$1.5bn (€972.6m) worth of assets.

Cadillac Fairview and global real estate investor Hines said the partnership, which will seed three BTR development sites, will “focus on projects located in vibrant submarkets close to transportation, employment hubs, diverse retail offerings and entertainment centres”.

Karl Kreppner, senior vice-president, of investments Asia-Pacific at Cadillac Fairview, said: “The residential sector is a key area of focus for Cadillac Fairview globally, and we are pleased to be investing in the sector in Australia alongside Hines.

“This investment aligns with our strategic objective of expanding our investment portfolio in Asia by forming partnerships with best-in-class operators and developers in attractive asset classes, such as residential, office and logistics. It also complements our global residential portfolio, which includes large active pipelines across the US, Europe and Canada.”

Chiang Ling Ng, CIO for Asia at Hines, said: “Hines has been investing in living assets across Asia for over 25 years, with recent acquisitions including co-living assets in Hong Kong and residential assets in Japan, most recently through its diversified investment fund, Hines Asia Property Partners.

“Both Hines and Cadillac Fairview recognise Australian BTR as one of the most exciting growth opportunities in Asia.”

Sam Bisla, managing director and head of living, Australia at Hines, said: “Hines and Cadillac Fairview have seen the attractive long-term defensive nature of the asset class through their international portfolios.

“We have been strategically building a portfolio and are expecting to scale up the BTR portfolio in the short term, and the scale of the partnership shows a huge strategic commitment and belief in the opportunities which BTR presents.”

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