Sentinel takes European pension fund into Australian build-to-rent market
Sentinel Real Estate Corporation has attracted AUD200m (€124m) from a European pension fund as it looks to export its build-to-rent residential strategy to Australia.
The New York-headquartered multifamily specialist has established Sentinel Australia Multifamily Hold Trust I, a fund to build, own and manage class-A rental apartments throughout Australia.
The company did not disclose the identity of the European pension fund committing capital to the fund.
Sentinel is one of the first companies to seek to develop an institional build-to-rent market in Australia. Other first movers include Mirvac, Greystar and Macquarie Capital.
“Although the build-to-rent model is new to the Australian marketplace, we have seen build-to-rent properties succeed across the globe,” said Millie Cassidy, president of Sentinel.
“After reviewing the idea of build-to-rent in Australia for nearly a decade, we are pleased to now be able to introduce the product into Australia in the coming months.”
Sentinel made its first move in the country in 2015, acquiring three parcels of land in the Australian Fine China precinct of Perth from the Metropolitan Redevelopment Authority.
Sentinel Australia Multifamily Hold Trust I will invest in the development of an apartment community, called Element 27, which will begin leasing in January 2019.
Sentinel is targeting other sites in Melbourne, Brisbane, the Gold Coast and Sydney.
The company will typically offer one or two-year leases for a variety of floor plans, unit types and apartment features.