Mirvac has founded a new $1.8 billion Built-to-Rent venture backed by cornerstone investors including the Clean Energy Finance Corporation (CEFC).
The property group has folded its established BTR assets, including LIV Indigo in Sydney and LIV Munro in Melbourne into the new company along with its project pipeline that includes LIV Anura in Brisbane and LIV Aston and LIV Albert Fields in Melbourne. Mirvac will continue to undertake construction, development management, investment and property management services for the assets.
Through the venture, Mirvac aspires to expand its Australian BTR portfolio to at least 5000 apartments, and will source new projects from an array of sources including its $30 billion development pipeline. The company’s pipeline already includes around 2200 dwellings.
“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,” CEFC joint head of property Michael Di Russo said.
“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,” Mirvac chief executive and managing director Campbell Hanan said.
Mirvac is one of the few Australian developers active in the BTR space, which is dominated by overseas investors that have recently benefited from a halving to 15 per cent the withholding tax their developments are subject to. Brookfield took advantage of the new rules by progressing two of its BTR developments in Brisbane shortly after Treasurer Jim Chalmers announced them in the May Budget for 2023-24.