Australia’s First State Super has formed a US$2bn (€1.73bn) multifamily investment vehicle with Lendlease to target the US market.
The AUD91bn (€58bn) profit-for-member super fund, and Lendlease have each committed US$500m in equity to develop and hold multifamily assets in US cities.
The partners said the plan is to create a US$2bn portfolio of geographically diverse multifamily assets across the gateway cities of New York, Chicago, Boston, San Francisco and Los Angeles.
Damien Webb, the head of income and real assets at First State Super, told IPE Real Assets: “We have been researching the sector for a number of years and this is our first investment which is in the US”.
He said the fund believed the US multifamily sector had “very attractive long-term fundamentals”.
“We believe Lendlease is an excellent partner to execute on this strategy given its skill in delivering large urban regeneration projects coupled with its integrated business model,” he said.
Webb added that: “We are actively assessing other opportunities with a range of partners in both Australia and the UK.“
Lendlease Americas CEO, Denis Hickey, said: “This new multifamily investment vehicle is consistent with our strategy of leveraging Lendlease’s integrated property capabilities to deliver high-quality urban regeneration projects.”
“We have a strong track record of success working alongside First State Super and share a common objective to increase our exposure to the US multifamily sector,” Hickey said.
Hickey said over time, the platform will also provide an opportunity for new investors to gain access to a portfolio of multifamily assets across the gateway cities.
Lendlease will manage the platform’s development, construction and investment.
It will seed the fund with two of its existing multifamily projects currently being completed in Chicago and Boston, with an end value of more than US$400m.