Australia: Fund manager and developer Pro-invest Group has entered a joint venture with Japan’s Kajima Corporation to develop a $1.5 billion (£790 million) build-to-rent (BTR) portfolio in Australia over the next five years, starting with a 300-unit scheme in Sydney.
The partnership marks a significant expansion of Japan’s institutional involvement in the Australian BTR sector, which has seen growing investor confidence as construction costs stabilise.
The pair’s first project, currently in development, is expected to be followed by multiple mid-market rental schemes in urban and fringe locations across Sydney, Melbourne, Newcastle and Adelaide.
An initial $500 million (£263 million) capital deployment is planned, with the ambition to triple that figure over time.
Individual projects are expected to comprise between 200 and 350 units, with a focus on medium-rise developments, though high-rise options remain on the table for suitable sites.
The partners said they will target well-connected locations and prioritise affordability, sustainability and community integration.
Developments are also expected to include key worker housing where demand aligns.
Kajima, listed in Tokyo and among Japan’s largest construction firms, is likely to use Icon, the mid-tier Australian builder it acquired in 2015, to deliver the new BTR pipeline. Kajima also owns contractor Cockram.
Pro-invest entered the BTR space two years ago after delivering 6,000 hotel rooms across 32 properties in Australia and New Zealand.
Pro-invest chairman Ronald Barrott said: “The interest is there and we believe we can secure the necessary commitments for the initial part, but that’s only scratching the surface of the requirements of demand in the market. When you look at the demand for housing, it’s phenomenal.”
The venture reflects rising appetite from global institutional investors, particularly from Japan, for defensive, income-generating real estate with long-term growth potential. BTR completions in Australia rose from 4,300 in 2024 to a forecasted 5,900 in 2025, according to real estate and investment management firm Colliers.
Highlights:
-Pro-invest and Kajima Australia have launched a £790 million BTR venture, starting with a 300-unit Sydney project.
-The partnership is targeting mid-market housing across multiple Australian cities.
-The partners say projects will prioritise affordability, sustainability and proximity to employment hubs.
