US-based real estate investment company Pembroke has entered the Australian build-to-rent (BTR) market with the purchase of a development site in inner Melbourne from Greystar.

The site at 155 Johnson Street, Fitzroy, has approval for 200 units.

Pembroke, which manages the private capital of its two principal long-term investors, FMR LLC and FIL Limited, declined to comment on both the purchase price and the final value of the project.

IPE Real Assets understands that the completed value of the BTR project would be about A$200m (€112.6m).

Joe Fitzpatrick, Pembroke’s regional director for Australia, told IPE Real Assets: “Our approach in Australia reflects a wider global strategy. We look for develop-to-core or value-added opportunities where we can use our expertise as a developer and global investor.”

Fitzpatrick said: “Prior to COVID we were looking to diversify our global portfolio. BTR and multifamily is a logical step and complements our ownership of commercial office buildings. My personal perspective is that office and hospitality are somewhat related, given that both require a high level of service.”

The construction of the project will be managed by Greystar.

Matt Woodland, Greystar’s managing director for Australia, said: “There is an urgent need for attainable and high-quality housing options in Australia, particularly in the city of Melbourne.”

Jack Clark, senior vice-president and head of investments at Pembroke, said: “The demand for high-quality residential properties in the world’s leading cities continues to rise. We are well positioned to respond to help meet this demand in Australia and globally, leveraging our strong capital base which enables us to close deals all cash and finance opportunistically later.”

The Melbourne acquisition follows two other recent Pembroke BTR acquisitions – The Lark in London, offering 195 high-quality BTR homes housing, and the Fitzroy in Washington DC.

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