Oxford Properties and Indi have entered an agreement with PDG Corporation to construct a build-to-rent residential development in central Melbourne.
Oxford Properties, the real estate arm of Canadian pension fund OMERS, and Indi, the build-to-rent management platform of Investa, will fund the project, which will deliver 434 apartments.
PDG plans to begin a two-year construction programme at 132 Kavanagh Street, Southbank, in the second half of 2022.
The value of the transaction was not disclosed, but IPE Real Assets understands that the value of the project once completed will be about A$350m (€221m).
James Greener, fund manager for Indi, said: “The Kavanagh Street acquisition grows our pipeline and builds economies of scale for the Indi platform.
“The acquisition offers an attractive risk-adjusted return with significant upside, supported by strong demographic and demand fundamentals.”
Alec Harper, head of Australia at Oxford Properties, said: “A lack of housing choice is one of the most pressing issues facing major cities across the globe.
“We are combining our capital and global experience of investing in, growing and delivering build-to-rent businesses and development projects to create new supply and to improve housing choice for Australians.”
In June, Investa launched Indi, its new build-to-rent management platform, which is targetting to build a portfolio of 5,000 apartments in Australia.
Penny Ransom, CIO of Investa, said securing the right sites was the key to meeting the needs of today’s “fast-paced lifestyle with easy access to transport and amenities”.
The latest acquisition increased Indi’s pipeline to 1,370 apartments across Sydney and Melbourne.
