The seed asset for the club, and Mirvac’s first purpose-built build-to-rent asset in Australia, will be Indigo at Mirvac’s Pavilions project at Sydney Olympic Park in NSW, Mirvac’s fourth building in the precinct. With a customer-first focus, Mirvac is committed to offering an exceptional rental experience at Indigo, with dedicated onsite leasing and management, high-quality amenities, a resident program and leading sustainability features. Mirvac will act as the development, investment and property manager.
Mirvac’s CEO & Managing Director, Susan Lloyd-Hurwitz, said, “Renting has become a lifestyle choice for a much wider group of people who want to be closer to work and other lifestyle services and amenity. We believe build-to-rent can provide renters with better choice, better quality and better security of tenure.
“Recent reforms from the Federal Government, as well as the work of state government working groups, have demonstrated strong support and momentum for the build-to-rent sector.
“Build-to-rent makes good business sense for Mirvac, by providing us with a new asset class and a secure revenue stream, as well as presenting us with a new and growing customer base. We are excited to drive the establishment of the build-to-rent sector in Australia, for which we see enormous potential over time.
“Build-to-rent allows us to leverage our significant residential development expertise and asset management capability, and it’s very pleasing to have the CEFC on board with us in this exciting new venture.”
The CEFC’s investment will help to enhance sustainability at Indigo, which has been designed to achieve a minimum of 40 per cent less greenhouse gas emissions than a typical apartment building. Other features will include upgraded glazing to improve the building’s thermal performance, LED lighting throughout, energy-efficient appliances, solar PV, and water efficient taps, toilets and showers.
The CEFC’s CEO, Ian Learmonth, said, “Our investment in ABTRC is about giving tenants the same access to clean energy technologies as home owners. It’s an immediate way to lower tenant energy costs, as well as tackle greenhouse gas emissions in Australia’s rental housing portfolio.
“With almost one third of Australians now in the long-term residential rental market, it’s critical that developers and owners incorporate innovative sustainable design measures from the early planning stage. It’s about delivering energy-efficient buildings that have long-term environmental benefits.
“We’re pleased to work with Mirvac to demonstrate how this can be achieved across this major new investment platform. We see this as a win for tenants, a win for Mirvac and a win for the environment. We look forward to seeing this approach to sustainability extended across other residential developments.”
The CEFC’s investment in the club builds on its relationship with Mirvac. Earlier this year, the CEFC committed up to $90 million in debt finance towards three of Mirvac’s proposed masterplanned communities in Brisbane and Sydney. New homes at these masterplanned communities will have built-in solar-plus-battery systems that are expected to reduce household energy costs by as much as 90 per cent.
Mirvac intends to grow the ABTRC over time and discussions with additional club investors are ongoing.
Construction on Indigo has commenced, with completion expected in FY21.
UBS, AG Australia Branch acted as financial adviser and lead manager to Mirvac in relation to the establishment of the ABTRC.