Melbourne-based developer Goldfields and IDA Property Group has launched a $500 million investment joint venture after striking a deal with a private Melbourne family office.
The newly-formed consortium, dubbed GIDA, will aim to deliver a diversified residential development portfolio and capitalise on a looming housing undersupply expected take hold next year.
Goldfields' Martin Gattino and IDA's Robbie Fallon have each seeded the fund with an initial $40 million and will seek to raise a further $80 million through an institutional investor.
The consortium partners said the funds raised would place them in a prime position to benefit from favourable supply-side market conditions and sniff out opportunities arising amid the Covid-19 dislocation.
The consortium, set to operate separately from Goldfields' and IDA's respective businesses, will now set its sights on apartment projects and mixed-use schemes in New South Wales, Melbourne and Queensland while also eyeing off land subdivisions in Sydney and Melbourne.
IDA chief executive Robbie Fallon said the consortium would draw on the collective, skills and experience of three nationally recognised businesses to deliver a portfolio of projects and asymmetric investments.
“We anticipate investors will share our view that the negative market sentiment created by Covid-19 and its second order effects will create attractive acquisition opportunities for experienced, well-capitalised local development businesses,” Fallon said.
However, commercial agency JLL recently said the slump in demand this year as the pandemic continues to hit population growth will only push back the crisis of undersupply facing Australia's housing market by two years.
“With residential capacity across major urban centres anticipated to hit under-supply in 2021, GIDA Consortium is poised to deliver a diversified residential development portfolio,” Fallon said.
The consortium declined to name the private Melbourne-based family seeding it.