Mirvac has established a A$1.8bn (€1.1bn) build-to-rent (BTR) venture with cornerstone investors, including the Australian government agency, Clean Energy Finance Corporation (CEFC).
IPE Real Assets understands that Japan’s Mitsubishi Estate is also a cornerstone investor in the venture, but Mirvac declined to comment on the foreign investor’s identity.
Mirvac will retain a 44% interest in the venture.
The venture comprises Mirvac’s operational BTR assets (LIV Indigo, Sydney and the recently completed LIV Munro, Melbourne), as well as its BTR pipeline assets (including LIV Anura, Brisbane, and LIV Aston and LIV Albert Fields, Melbourne).
Mirvac will provide investment management, property management, development management and construction services.
As part of the transaction, Mirvac will continue to source and secure new opportunities for the venture from a variety of sources, including from Mirvac’s A$30bn development pipeline.
Mirvac’s Group CEO and managing director, Campbell Hanan, said the establishment and capitalisation of the venture supported the group’s vision to increase its exposure to the build-to-rent sector, grow its portfolio to at least 5,000 apartments in the medium term.
CEFC head of property, Michael Di Russo, said with its investment CEFC was helping to extend the benefits of Mirvac’s build-to-rent developments to increase the supply of energy-efficient housing, with each new development project targeting net zero carbon emissions in operations.
Minister for climate change and energy, Chris Bowen, said: “Improving energy efficiency in these apartments is crucial in cutting power bills over the long term for renters, and today’s announcement adds to the A$1.7bn in energy saving upgrades for homes, businesses and communities in the budget.”
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