M&G Real Estate Asia acquired a site in Australia for its build-to-rent platform for A$33m (€22m).

The manager bought the 1,448sqm site in Parramatta in Sydney to develop into a 33-storey residential building on behalf of its US$7.1bn (€6.8bn) M&G Asia Property Fund.

The property will provide 195 apartments and an array of commercial, retail, health and wellness amenities for the community. Construction is due to start in the second half of 2023.

This is the second transaction it has done with Novus, a Sydney-based developer, owner and operator of multi-family assets.

Under a A$450m partnership launched in April this year, Novus and M&G Real Estate plan to develop a portfolio of multi-family properties in some of Australia’s key cities with a focus on Melbourne and Sydney.

Richard van den Berg, fund manager, manager of the M&G Asia Property Fund, said the Parramatta project was the fund’s second acquisition in the build-to-rent sector in Australia.

“This is in line with our strategy to increase and diversify our allocation in the multifamily residential sector, “ said van den Berg, adding that offered a “large potential” customer base of renters in Parramatta.

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