Aussie Build to Rent gets $1.5BN joint overseas investment

Two overseas real estate investment firms have teamed up to pour $1.5 billion into the Australian Build to Rent (BTR) sector, signalling its strength and its position as a serious retirement village competitor. Global investor Hines and Canada-based Cadillac Fairview will invest in at least three BTR development sites, including a site in South Melbourne announced by Hines in May, focusing on projects in areas near transportation, employment, retail, and entertainment. According to Sam Bisla (pictured), Hines managing director and head of living, Australia, both Hines and Cadillac Fairview see BTR in Australia as one of the more “exciting” growth opportunities in the Asia-Pacific region.

“Hines and Cadillac Fairview have seen the attractive long-term defensive nature of the asset class through their international portfolios. “We have been strategically building a portfolio and are expecting to scale up the BTR portfolio in the short term, and the scale of the partnership shows a huge strategic commitment and belief in the opportunities which BTR presents,” he said.

BTR is posing a serious challenge to the retirement living sector, offering many of the amenities that retirement villages do in an intergenerational environment and without a DMF.