A consortium of leading Korean companies has formed a partnership with Novus, an Australian build-to-rent (BTR) developer to develop a A$340m (€207m) project on Sydney’s North Shore.
The Korean Investment Consortium comprises Korea Investment & Securities Co. Real Asset (KIRA), Hyundai E&C (Hyundai), and one of Korea’s largest and most established construction and engineering companies and Korea Overseas Infrastructure & Urban Development Corporation (KIND), a government-funded corporation, established to support the overseas expansion of Korean companies in infrastructure and urban development projects.
The Korean investors will back Novus in the project, known as The Victoria, in the vibrant suburb of Chatswood that will develop a 46-level tower offering 260 rental apartments.
Novus CEO Adam Hirst said the planned delivery of Novus on Victoria was in direct response to the surging demand for quality BTR living in New South Wales.
“Chatswood is thriving as one of Sydney’s most well-connected neighbourhood’s, however, with a vacancy rate of just 0.9% the demand for quality rental living in the area is clear.
“As the acute need for rental supply continues to grow across Australia,” he said, adding that the company was on a mission to build homes for 10,000 Australians,” he said.
A consortium representative from KIRA, Yonghee Kwon, said: “We are delighted to partner with Novus, Hyundai E&C and KIND on Novus on Victoria, which marks our first investment in Australia. This transaction is an important foundation for KIRA’s long-term commitment to the Australian BTR market.
“Beyond this landmark project, we are actively engaged with Novus on multiple additional opportunities across Australia’s key rental markets. We are committed to establishing KIRA as a significant investor in the Australian BTR sector for years to come, and to partnering with best-in-class operators like Novus to deliver exceptional outcomes for residents and investors alike.”
Cushman & Wakefield’s Josh Cullen and Louise Burke, and Ethos Bridge Partners’ Daniel Kim and Luke Doo Hwan Lee, facilitated the group’s introduction to Novus.
Josh Cullen described the deal as “a milestone transaction”.
“The consortium’s investment demonstrates the continued conviction of North Asian capital in Australia’s build-to-rent sector. Raising capital for the BTR sector remains highly competitive and this transaction demonstrated the underlying strength of the Novus platform to obtain sites like Chatswood and combine with new capital partners”, said Cullen.
The Victoria is on track to commence construction early next year.
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