Mirvac Takes Wraps off $1.8bn Build-to-Rent Venture

Mirvac has signed a Federal government-backed capital partner for its $1.8-billion Build-to-Rent Venture.

The deal with Clean Energy Finance Corporation, “which facilitates increased flows of finance into the clean energy sector”, included Mirvac’s operational build-to-rent assets and pipeline with the property group retaining a 44 per cent interest in the venture.

A Mirvac spokeswoman confirmed there was another cornerstone investor, who together with CEFC would take a 56 per cent share, however, the identity of second investor was not revealed.

The developer recently completed Liv Indigo in Sydney and Liv Munro in Melbourne, and has Liv Anura in Brisbane in the pipeline along with its Melbourne projects Liv Aston and Liv Albert Fields. 

Mirvac would continue to source and secure new opportunities for the venture as part of the deal.

These would come from Mirvac’s $30-billion development pipeline as well as sourcing off-market and on-market opportunities.

Meanwhile, the property group would provide investment management, property management, development management and construction services across the assets.

▲ Mirvac’s LIV Munro as viewed from Queen Victoria Markets.

Mirvac chief executive Campbell Hanan said they were thrilled with the partnership for the venture which had 2200 lots secured in its pipeline and an expected end value of $1.8 billion.

“The establishment and capitalisation of the venture supports our vision to increase our exposure to the build to rent sector,” Hanan said.

“It will grow our portfolio to at least 5000 apartments in the medium term, and play a key role in helping solve the housing and rental shortfall in Australia.”

CEFC head of property Michael Di Russo said the new developments would have net zero carbon emissions in operations.

“The build to rent sector is an emerging asset class in Australia with the potential for significant growth,” Di Russo said.

“As well as considerable scope to make a meaningful impact on the decarbonisation of the broader residential property sector.”