Sentinel and PGGM partner on A$1.5 billion Australian Build to Rent venture
Sentinel Fund Manager Australia, the Australian arm of leading American real estate investment and development firm, Sentinel Real Estate Corporation (Sentinel) and Dutch pension fund manager PGGM have today announced a new partnership to develop and manage up to A$1.5 billion in Build to Rent communities throughout Australia.
PGGM’s first investment tranche opens up a pipeline of over A$700 million in initial development potential for the venture. The partnership aims to develop a national portfolio of approximately 2,500 Build to Rent units, with the first two sites for development already confirmed. Sentinel, through its vertically integrated platform, will provide investment management, development management and property management services to the partnership.
Michael Streicker, President of Sentinel Real Estate Corporation said: “Sentinel is proud to expand our partnership with PGGM into the Australian market. Their commitment to this venture is a clear vote of confidence in our Build to Rent platform and the future of the sector in Australia.
“We’re committed to continuing to deliver high quality, sustainable and community-focused living that enhances the housing choices available to Australians. This is particularly important at a time where changes in the housing market and supply levels are front of mind for so many,” said Mr Streicker.
Jikke de Wit, Senior Director Private Real Estate of PGGM said: “We are excited to expand our relationship with Sentinel into the Australian Build to Rent market. Although the sector is still relatively small, we believe that it will grow over time and become an important part of the Australian housing market.
“Sentinel is a longtime partner of PGGM in the US and we are confident their expertise will help us build a new portfolio of high quality, low carbon apartment communities. The sustainability of this investment contributes to our client PFZW’s long-term ambition to align their real estate investments with the Paris Climate Agreement,” said Ms de Wit.
The partnership will leverage Sentinel’s 50 years’ global multifamily experience and its decade-long endeavour to establish an Australian Build to Rent sector. In 2019, Sentinel delivered Element 27, Australia’s first ever purpose-built institutional Build to Rent community, located in Subiaco, Western Australia. In 2021, the first phase of Element 27 became the first apartment building in Australia to be Carbon Neutral Certified under the Climate Active Carbon Neutral Standard for Buildings.
Sentinel currently has more than 1,300 Build to Rent units under various stages of development throughout Australia.
About Sentinel Real Estate
Sentinel Real Estate Corporation (‘Sentinel’) is an independently owned real estate investment management firm, headquartered in New York City with Australian offices in Melbourne and Perth. The firm currently has A$13.2 billion of institutional quality real estate assets under management, on behalf of 110 global clients. Since establishment in 1969, Sentinel has acquired and managed over A$28.4 billion of direct real estate investments, comprising 628 multifamily communities and 192 commercial properties. The Sentinel portfolio currently contains over 26,000 rental apartment units and 5.3 million square feet of commercial real estate.
Sentinel began reviewing Build to Rent opportunities in Australia in 2012, establishing its Australian affiliate Sentinel Fund Manager Australia. Since that time, it has successfully completed the first two phases of its Element 27 project in Subiaco (Perth), Western Australia. The first phase of Element 27 has been operational and tenanted since early 2019, making it Australia’s first institutional Build to Rent community. Sentinel’s second Build to Rent project is located in Melbourne at 164-168 Roden Street. Sentinel has more than 1,300 Build to Rent units under various stages of development throughout Australia.
About PGGM
PGGM is a not-for-profit cooperative pension fund service provider. As a pensions administrator, asset manager and advisor to pension fund boards, it executes its social mandate: to provide for good old-age incomes for 4.4 million participants in the Netherlands. On June 30, 2022 PGGM managed long-term pension capital of EUR 241 billion worldwide. Rooted firmly in the Dutch healthcare sector, PGGM develops innovative provisions for labour market issues in this sector, alone or with strategic partners. Our member organisation PGGM&CO supports 764,000 workers and pensioners with a background in healthcare.