A global investor reported to be Singapore’s GIC has invested A$400m (€258m) in a new A$1.75bn Australia build-to-sell fund, launched by residential developer GurnerTM.
Tim Gurner, chief executive of GurnerTM, declined to confirm or deny the identity of his investor.
Gurner told IPE Real Assets that the close-ended fund was established for the investor with co-investment from his company. With gearing, he said the fund would have a capacity for projects up to the value of A$1.75bn.
“We have two sites in Sydney and Melbourne under due diligence now. They each have the potential for 100 to 300 apartments.”
The fund would develop both apartments and townhouses for sale, he said, adding that with land prices falling by 10% to 20%, current market conditions would create a lot of opportunities.
“We are considering a vast range of opportunities that fall anywhere within the A$30m-A$200m land bracket,” Gurner said.
“We believe the next 6-18 months will be critical. Many developers may struggle to hold onto sites due to rising construction and holding costs, which will create serious opportunities for those who have the capital to act quickly.”
This latest fund comes off the back of the developer’s A$1.2bn build-to-rent fund launched in 2021 in partnership with alternative real estate investment manager Qualitas.
Known as GQ BTR platform, it has already secured four seed sites for a total of more than 1,350 apartments.
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