North America-based real estate developers Hines Interests and Cadillac Fairview will jointly buy and develop up to A$1.50 billion ($965 million) of assets in the Australian build-to-rent (BTR) sector, the companies said on Wednesday.
The investment will be the first by Canada-based Cadillac Fairview, the real estate arm of Ontario Teachers’ Pension Plan, in the country and the region, where U.S.-based Hines Interests is strengthening its presence as investor interest picks up.
Australia’s BTR sector has shown potential for growth as demand rises for central locations close to public transport and offices, with big regional players like Mirvac Group and Macquarie Group among early entrants.
Hines Interests and Cadillac Fairview will own, develop and operate BTR assets across Australia, starting with the three sites Hines already owns in Melbourne and Brisbane, the firms said.
“Both Hines and Cadillac Fairview recognise Australian BTR as one of the most exciting growth opportunities in Asia,” said Chiang Ling Ng, chief investment officer for Asia at Hines.