Pro-invest has teamed up with Japanese construction group Kajima to launch an Australian build-to-rent (BTR) venture, which could eventually manage assets worth up to A$1.5bn (€843m).

The firms have initially committed A$500m, with plans to increase their investment over time and raise additional capital from third parties to co-invest in the BTR platform.

The partnership is planning to develop in inner city and city fringe locations in three capital cities – Sydney, Melbourne and Adelaide – and Newcastle, a regional city in NSW.

Ronald Barott, founding partner and chairman of Pro-invest, said: “We are excited to announce this joint venture with Kajima, which will bring their construction expertise to our experience in operating world-class hospitality and real estate assets. Population growth, higher rents, and an undersupply mean ground-up build-to-rent has strong tailwinds for the next decade.”

Tatsuru Isano, managing director of Kajima Australia: “We see huge opportunities for growth in the BTR sector in Australia and are pleased to work with Pro-invest Group to develop some ground-up projects in key urban centres.

“These developments will prioritise sustainability, community, and affordability and will help address the shortfall in supply of quality rentals in the market.”

Established in 2010, Pro-invest has around A$3bn in assets under management, including 32 hotels in Australia and New Zealand. Two years ago, the Pro-invest expanded into the BTR sector.

Founded in 1840, the Tokyo-based listed Kajima has been an active player in the Australian construction market since its acquisition of a majority stake in an Australian company, Icon Development in 2015. In 2023, through Icon Kajima stuck a A$250m logistics partnership with local property company, Elanor Investors.

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