The PGGM-backed apt.Residential has purchased two commercial buildings in Ultimo, a suburb on the fringe of the city centre in Sydney, for A$55m (€33m), for conversion into rental apartments and studios.
The joint-venture partners intend to build a portfolio of more than 2,500 residential apartments in key capital cities, following PGGM’s commitment to invest A$1.5bn in the Sydney-based business in May this year.
Matt Carolan, apt.Residential’s managing director, said the Ultimo site was close to a shopping centre and within walking distance of the city’s Central Station.
Carolan said: “We think it is a prime location for high-quality rental apartments and studios.”
He added that work would commence as soon as there was a development plan for the buildings that would “honour” their heritage while maximising liveability for future residents.
“The building’s heritage value to Ultimo and Sydney is important. By maintaining and restoring certain design elements, the site’s history will be celebrated in our development application,” said Carolan.
The buildings, which are currently let to commercial tenants, have a net lettable area of 7,796sqm.
The first project of the PGGM-apt.Residential joint venture is currently under development in Meadowbanks in Sydney’s west which comprises 291 apartments, in a mixed used precinct, which will have an end value of A$280m.
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