Australian investment manager Investa, part-owned by Oxford Properties, has formed a partnership with The Salvation Army charity to develop a A$230m (€139m) studio apartment project in central Sydney.
The 140 Elizabeth Street project marks Investa’s first venture into the studio living sector.
The Sydney-based Investa is seeking a first-round equity commitment of A$400m to fund its expansion into studio living.
Peter Menegazzo, CEO, Investa told IPE Real Assets: “We have partnered with The Salvation Army through a development agreement which will deliver them a stratum for their exclusive use. Therefore, Investa and the capital partner/s will be the owner of the Studio Living building.”
Menegazzo said Investa was progressing with the project and was “in conversations with partners” to invest in 140 Elizabeth Street and future studio living opportunities that were under consideration.
“With the addition of 140 Elizabeth Street, Investa’s Living platform has an on-completion value in excess of A$1.2bn across a portfolio of 1,650 apartments. We see significant growth opportunities in the living sector underpinned by the development pipeline supporting the Studio Living strategy where we are looking to develop a broader venture in this sector,” he said.
The Salvation Army Australia’s Sydney City manager, Mitchell Evans said: “140 Elizabeth Street has a long and important history within The Salvation Army, so it was important for us to select a partnership arrangement that enables us to maintain an ongoing presence in Sydney’s CBD where we will continue to reach and serve the local community, as well as have a place of worship and ministry.”
Adam Crowe, CEO of Investa said: “Studio living, like BTR, is well established overseas and we are very pleased to once again be ahead of the curve in Australia to offer a housing option that meets the demand of customers and our capital partners.
“In addition to 140 Elizabeth Street as our seed asset, we are progressing further opportunities as we deliver on our aspirations to build our living pipeline across BTR, studio living and affordable housing.”
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