Mirvac Establishes New $1.8bn Build to Rent Venture

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.

Commenting on the transaction, Mirvac’s Group CEO & 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 secured pipeline and an expected end value of $1.8bn. 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,” said Mr Hanan.

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.”

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 ~$30bn development pipeline and through selective  sourcing of off-market and on-market opportunities.