European pension fund invests in Australian build-to-rent residential

Sentinel Real Estate Corp. has received a commitment of A$200 million ($142 million) from a major European pension fund to invest in Sentinel Australia Multifamily Hold Trust I, a venture established to build, own and manage class A rental apartment communities throughout Australia.

“We believe the property sector reflects the opportunity for institutions to garner attractive returns by investing in high-quality, well-managed rental housing,” said Michael Streicker, executive vice president of Sentinel. “At the same time, residents will enjoy the benefit of professional onsite management, around-the-clock maintenance, convenient location to shops and downtown Perth and a full suite of attractive community amenities. Sentinel’s typical build-to-rent property will offer its residents leases of one- or two-year durations.”

The venture will target the creation of rental housing designed to meet the needs of Australians throughout the country.

“Although the build-to-rent model is new to the Australian marketplace, we have seen build-to-rent properties succeed across the globe. After reviewing the idea of build-to-rent in Australia for nearly a decade, we are pleased to now be able to introduce the product into Australia in the coming months,” said Millie Cassidy, president of Sentinel.

Sentinel’s initial investment in its Australian build-to-rent platform took place in 2015, when it acquired three parcels of land in the Australian Fine China precinct of Perth from the Metropolitan Redevelopment Authority with the intention of constructing Australia’s first ever build-to-rent community.

The first phase of the community, called Element 27, will be part of the venture, and will begin leasing in January 2019 with a projected date for initial tenancy of April 2019. In addition to Subiaco, Sentinel is actively targeting sites in Melbourne, Brisbane, the Gold Coast and Sydney.