Japanese consortium backs $246 million BTR scheme in Sydney

Australia: A Japanese state-backed fund is supporting the development of Novus on Forest, a 310-unit build-to-rent project in northwest Sydney.

The project is located at 2-16 Epping Road and 2-4 Forest Grove. The $246.3 million development is backed by Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development (JOIN) alongside Kanden Realty & Development and Cosmos Initia.

The apartments range from studios to three-bedroom units across five campus-style buildings. The project will also include more than 3,750 square metres of communal and green space and about 1,300 square metres of indoor amenities.

“Novus on Forest marks our fourth addition to the Sydney skyline and our first campus-style building, allowing us to showcase a mid-rise product typology within the portfolio,” Novus co-founder and CEO Adam Hirst said.

The project represents Kanden’s second BTR investment with Novus, following the 190-unit Novus on Spencer in West Melbourne last July.

It also marks the first Australian BTR investment for Tokyo-listed condominium builder Cosmos Initia, part of the Daiwa House Group. The company’s Australian subsidiary has completed more than 500 build-to-sell residential units in Sydney.

Keisuke Muraoka, Cosmos Australia Holdings’ managing director, said: “We have been strategically expanding our presence in Sydney’s build-to-sell market. Entering our first build-to-rent project marks a significant milestone for us, and we are delighted to contribute to the housing supply in a market driven by  steadily increasing population growth.”

Highlights:

• A Japanese state-backed investment consortium is entering Australia’s build-to-rent (BTR) market through a $246.3 million project in northwest Sydney, developed by Australian BTR platform Novus.
• The Forest project will deliver 310 rental apartments at 2–16 Epping Road and 2–4 Forest Grove, ranging from studios to three-bedroom units across five campus-style buildings.
• The development will include more than 3,750 square metres of communal and green space and around 1,300 square metres of indoor amenities, creating a campus-style rental community.
• Forest is backed by Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development (JOIN), Kanden Realty & Development and Cosmos Initia, marking Cosmos Australia Holdings’ first build-to-rent project.
• The project is Novus’ fourth addition to Sydney’s residential portfolio and its first campus-style development, while adding to growing Japanese investment in Australian rental housing.