Apt.Residential in $1.5b build-to-rent partnership with Dutch pension fund PGGM

Apt.Residential in $1.5b build-to-rent partnership with Dutch pension fund PGGM

Matt Carolan, co-founder and managing director of Apt.Residential

Sydney-based real estate investment manager Apt.Residential has tapped into a partnership with Dutch pension fund manager PGGM that will give the group access to $1.5 billion for build-to-rent projects nationally.

Described as an open-ended, long-term partnership, Apt.Residential says the funds will initially target the Sydney market with a view to building an extensive portfolio of institution-backed rental properties.

Apt.Residential, co-founded by a group of seasoned property and finance industry players including Matt Carolan, the former CIO of Urbanest Australia, already has two projects in train for Sydney which it plans to formally announce shortly.

They will be among a suite of projects that Apt.Residential will manage and operate for the partnership which is aiming to initially deliver a portfolio of more than 2,500 apartments.

“PGGM’s long-term commitment to Apt.Residential reflects their confidence in the experience of our people and our Sydney-centric business strategy and the future of build-to-rent residential real estate in Australia,” says Carolan, the company's managing director.

“Apt.Residential is committed to producing sustainable buildings, with connected and thriving communities, that will help provide positive social and environmental improvement, across the localities in which we operate.

“We’re also aiming to deliver a positive contribution to Australia’s well documented housing shortage. Phase one of our partnership with PGGM will aim to develop over 2,500 build-to-rent apartments.”

The Netherlands-based PGGM manages pension assets worth about $400 billion for 4.3 million people and its partnership with Apt.Residential is being undertaken through the PGGM Private Real Estate Fund.

Guiding its investment activities, PGGM has a social mandate for the sustainable investment of the pension capital of about three million participants of PFZW, the pension scheme for the Dutch health and welfare sector.

The fund manager is leaning on the collective capabilities of Apt.Residential’s founders which also include George Confos (formerly with CBA), Michael Hogg (formerly at Investa and Charter Hall), Puian Mollaian (formerly TCorp and CBRE), Juey Thanyakittikul (formerly with Essential Living UK and Iglu) and Wei Shi (also ex-Iglu).

Between them, the founders have extensive experience in the Australian, UK and South-East Asian residential markets, covering build-to-rent projects, as well as investment, development, design, construction and hospitality management.

PGGM is said to be leveraging the teams’ local knowledge to deliver premium residential projects in sought-after locations.

“We are delighted to have formed a long-term partnership with Apt.Residential,” says Ronald Bausch, the senior director of Private Real Estate, Asia Pacific, for PGGM.

“PGGM Private Real Estate focuses on forming strategic partnerships with experienced teams.

“Investments are well chosen in a sector where specific building and related location selection are paramount in generating attractive returns.

“Apt.Residential’s focus on delivering sustainable housing at a time when its clearly needed is very important for PGGM.”

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