Lendlease, First State Super partner for $2b U.S. multifamily investment vehicle
Lendlease, an international property and infrastructure group, and First State Super, and Australian superannuation fund, have joined forces to establish a new investment platform to develop and hold multifamily assets in U.S. gateway cities.
Lendlease and First State Super have each committed $500 million in equity to the new vehicle and plan to create a $2 billion portfolio of geographically diverse multifamily assets across the cities of Boston, New York, Chicago, Los Angeles and San Francisco.
Lendlease will become the platform’s development, construction and investment manager. The vehicle will be seeded with two existing Lendlease multifamily projects that are currently being completed in Chicago (Southbank) and Boston (Clippership Wharf) with an end value of more than $400 million. Lendlease plans to deliver more than 5,000 residential units in the United States over the next five to 10 years.
“This new multifamily investment vehicle is consistent with our strategy of leveraging Lendlease’s integrated property capabilities to deliver high-quality urban regeneration projects that enhance people’s lives, while simultaneously creating value for our shareholders and partners,” said Jason Alderman, president and managing director of Lendlease Development in the Americas. “We see an opportunity to offer differentiated product here in the U.S. multifamily market through our commitment to creating the best places.”
The U.S. multifamily sector is valued at more than $3 trillion and has delivered higher and less volatile returns than most major U.S. real estate sectors over the past 25 years. The strength of the sector has been underpinned by a major shift to renting, with more than 6 million renter households created in the United States during the past 10 years.
