Australian investment manager Investa, part-owned by Oxford Properties, has entered a strategic partnership with two Japanese investors, JR West Real Estate & Development Company (JR West) and Sotetsu Real Estate (Sotetsu) to develop a A$130m (€129m) studio apartment project in the heart of Sydney.
The development at 140 Elizabeth Street is a joint venture with The Salvation Army, the current occupier of the site, and marks Investa’s first venture into the studio living sector. The project will comprise 251 fully-furnished, self-contained studio apartments along with a range of communal space including co-working spaces, indoor entertainment areas, communal dining zones and outdoor terraces
Kenichi Kosuga, executive officer and general manager of the overseas business epartment at JR West said: “Our partnership with Investa provides access to a high-potential asset class in a dynamic market like Sydney.
“We will continue to explore and discuss further opportunities for joint ventures in Australia. We are excited by the opportunity to build scale in Studio Living alongside a proven investment manager.”
The project is Sotetsu’s inaugural investment in Australiia. Both investors are part of Japanese railway companies, West Japan Rail and Sagami Railway Company. They were supported in this investment by Sumitomo Mitsui Trust Bank (SMTB).
Stuart Rowe, head of new business and origination at Investa said: “JR West and Sotetsu are globally recognised investors who share conviction in the strong market fundamentals underpinning studio living.”
Adam Crowe, chief investment officer at Investa, added: “Having established Indi, our living sector platform, we are delighted to have made our first investment in Sydney CBD’s first institutional grade studio living asset.
“With development planning underway at 140 Elizabeth Street our living portfolio grows to over 1,600 purpose-built homes representing a total investment of more than $1.3bn.”
Construction is expected to begin in 2027, with the asset expected to be operational in mid-2029.
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