- $1.2 billion of funds raised for developer GURNER's GQ Build-to-Rent platform
- Fast-track the construction of 1,700 apartments
- Objective to surpass 5,000 apartments within years
A near $1.2 billion of funds have been raised for developer GURNER’s GQ Build-to-Rent platform, exceeding the original $1 billion they expected.
The money will fast-track the construction of 1,700 apartments already under the group’s control and fund the acquisition of further build-to-rent assets with a focus on Sydney, Melbourne and Brisbane, with the objective to surpass 5,000 apartments within years given the joint venture’s existing holdings.
Qualitas global head of real estate and co-founder Mark Fisher said, “The build-to-rent sector is perfectly aligned to our focus on assets generating defensive and resilient cashflows and we are seeing global institutional investors increasingly allocating capital to investment strategies supported by these themes.”
The first seed site to launch under the platform will be the recently announced $450 million, 385-residence project at 12 Hassall Street in Parramatta that Gurner and Qualitas acquired this month.
The 2,049 sqm site will yield 61 levels and likely include 4,000 sqm of retail and commercial space, premium amenity and a rooftop facility once complete.
Mr Fisher said, “Across Australia, we are anticipating strong and growing demand for high-quality build-to-rent assets as population growth and declining home ownership drive the need for quality rental stock.”
For the first time, GQ represents the first time a market-leading Australian investment manager has partnered with an established design focused Australian developer to enter the build-to-rent area, bringing together two industry heavyweights.
GQ’s aim is to create a portfolio of $5 billion and over 5,000 units under the management in the coming years, with a focus on quality returns, premium sites in prime locations and a product that GURNER is synonymous for backed up Qualitias’ deep network of global investors.
GURNER founder and director Tim Gurner said, “the capital markets for build-to-rent right now are extremely competitive, and being able to secure this funding against such competition to launch our platform is very exciting.
“With majority of the capital now allocated we will soon be commencing another round of capital raising in the coming months as we look to aggressively grow the size of the fund, and as we prepare to commence construction across various projects in the next 12 months.”
