Mirvac Launches its First Build-To-Rent Club in Australia
14 August 2018
Mirvac: Mirvac has today announced the launch of the Australian Build-to-Rent Club (ABTRC or the club), with the Clean Energy Finance Corporation (CEFC) committing to a 30 per cent interest as a cornerstone investor in the first close.
The seed asset for the club, and Mirvac’s first purpose-built
build-to-rent asset in Australia, will be Indigo at Mirvac’s Pavilions
project at
Sydney Olympic Park in
NSW, Mirvac’s fourth
building in the
precinct. With a customer-first focus, Mirvac is committed to offering
an exceptional rental experience at Indigo, with dedicated onsite
leasing and management, high-quality amenities, a resident program and
leading sustainability features. Mirvac will act as the development,
investment and property manager.
Mirvac’s CEO & Managing Director, Susan Lloyd-Hurwitz, said, “Renting
has become a lifestyle choice for a much wider group of people who want
to be closer to work and other lifestyle services and amenity. We
believe build-to-rent can provide renters with better choice, better
quality and better security of tenure.
“Recent
reforms from the
Federal Government, as well as the work of
state government working groups, have demonstrated strong support and
momentum for the build-to-rent sector.
“Build-to-rent makes good business sense for Mirvac, by providing us
with a new asset class and a secure revenue stream, as well as
presenting us with a new and growing customer base. We are excited to
drive the establishment of the build-to-rent sector in Australia, for
which we see enormous potential over time.
“Build-to-rent allows us to leverage our significant residential
development expertise and asset management capability, and it’s very
pleasing to have the CEFC on board with us in this exciting new
venture.”
The CEFC’s investment will help to enhance sustainability at Indigo,
which has been designed to achieve a minimum of 40 per cent less
greenhouse gas emissions than a typical apartment building. Other
features will include upgraded glazing to improve the building’s thermal
performance, LED lighting throughout, energy-efficient appliances, solar
PV, and water efficient taps, toilets and showers.
The CEFC’s CEO, Ian Learmonth, said, “Our investment in ABTRC is about
giving tenants the same access to clean energy technologies as home
owners. It’s an immediate way to lower tenant energy costs, as well as
tackle greenhouse gas emissions in Australia’s rental housing portfolio.
“With almost one third of Australians now in the long-term residential
rental market, it’s critical that developers and owners incorporate
innovative sustainable design measures from the early planning stage.
It’s about delivering energy-efficient buildings that have long-term
environmental benefits.
“We’re pleased to work with Mirvac to demonstrate how this can be
achieved across this major new investment platform. We see this as a win
for tenants, a win for Mirvac and a win for the
environment. We look forward to seeing this approach to
sustainability extended across other residential developments.”
The CEFC’s investment in the club builds on its relationship with
Mirvac. Earlier this year, the CEFC committed up to $90 million in debt
finance towards three of Mirvac’s proposed masterplanned communities in
Brisbane and
Sydney. New homes at these masterplanned communities
will have built-in solar-plus-battery systems that are expected to
reduce household energy costs by as much as 90 per cent.
Mirvac intends to grow the ABTRC over time and discussions with
additional club investors are ongoing.
Construction on Indigo has commenced, with completion expected in FY21.
UBS, AG Australia Branch acted as financial adviser and lead manager to
Mirvac in relation to the establishment of the ABTRC.
--ENDS--
Source: Mirvac - www.mirvac.com
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