Mirvac Group will lead the market with Australia's first build-to-rent, or BTR, real estate fund, which will see the developer construct and hold apartments in key cities within the country, The Australian reported.
The BTR fund will be backed by large superannuation funds that will in turn, receive yields from rents generated from the apartments held by the fund. Mirvac has singled out between four to six of its schemes which it thinks will have the ability to house specialist multifamily buildings, with CEO Susan Lloyd-Hurwitz confirming that the company is "preparing to invite capital partners" to back the fund.
Lloyd-Hurwitz also said the company sees the potential in the BTR market Down Under, with hopes that it would expand to approximately the size of the same sector in the U.S., according to the Aug. 7 report.
The publication added that Mirvac was trying to gain an upper hand over its Australian peers like Lendlease Corp. Ltd. and Macquarie Group, both of which had signaled development plans in the BTR sector but had not moved in to snap up sites for investors to back.
Mirvac is also one of Australia's biggest providers of new housing supply, with 3,000 apartment units and housing lots being rolled out by the group each year, according to the report.