Development giant Mirvac has has established a new $1.8 billion ‘build-to-rent’ venture with backing from cornerstone investors as well as the Clean Energy Finance Corporation (CEFC).
Related article: Jemena to build four community batteries in Victoria
The venture comprises Mirvac’s operational build-to-rent assets (LIV Indigo, Sydney and the recently completed LIV Munro, Melbourne), as well as its build-to-rent pipeline assets (including LIV Anura, Brisbane, and LIV Aston and LIV Albert Fields, Melbourne). Mirvac will provide investment management, property management, development management and construction services.
Mirvac CEO and managing director Campbell Hanan said, “We are thrilled to have established a new build-to-rent venture with high-quality capital partners. Our ability to attract capital partners of this calibre is a great endorsement of the product we deliver and reinforces our reputation as a trusted partner.”
“Mirvac is Australia’s first large-scale owner and operator of build to rent assets, with around 2,200 lots in our current and future pipeline and an expected end value of $1.8 billion. The establishment and capitalisation of the Venture supports our vision to increase our exposure to the build to rent sector, grow our portfolio to at least 5,000 apartments in the medium term, and play a key role in helping solve the housing and rental shortfall in Australia.”
CEFC head of property Michael Di Russo said, “The build-to-rent sector is an emerging asset class in Australia with the potential for significant growth, as well as considerable scope to make a meaningful impact on the decarbonisation of the broader residential property sector. We’re pleased to help extend the benefits of Mirvac’s build to rent developments to increase the supply of energy efficient housing, with each new development project targeting a minimum average of 7.5 star NATHERS rating and net zero carbon emissions in operations. It is particularly exciting to be working with Mirvac on this ambitious build to rent strategy, which continues to drive enhanced sustainability outcomes for owners and tenants over the life of the asset.”
Minister for Climate Change and Energy the Hon. Chris Bowen said, “The Albanese Government wants all Australians to be able to save on energy, and save on bills, not just those who own their own home.
“Improving energy efficiency in these apartments is crucial in cutting power bills over the long term for renters, and today’s announcement adds to the $1.7 billion in energy saving upgrades for homes, businesses and communities in the budget.”
Related article: Climate Council launches energy savings guide and calculator
As part of the transaction, Mirvac will continue to source and secure new opportunities for the venture from a variety of sources, including from Mirvac’s ~$30 billion development pipeline and through selective sourcing of off-market and on-market opportunities.
