Australia: Developer Cedar Pacific and Japanese company Sumitomo Forestry have signed a deal to jointly develop a $1.2 billion ESG-focused BTR portfolio in Australia and New Zealand.
Cedar Pacific’s 50 Quay Street BTR tower in Brisbane will be the partnership’s first development. The 475-unit tower, which is targeting a 5-Star Green Star rating, is part of the Queensland government’s BTR pilot programme and construction is already under way.
Half of the apartments will be offered at below market affordable rents under the pilot program.
The JV has a pipeline of other projects in Melbourne, Canberra, Brisbane and Auckland. Details of the developments are yet to be revealed.
Cedar Pacific chief executive Bernie Armstrong said the partnership would leverage their individual expertise in delivering sustainable communities and incorporate the use of cross-laminated timber: “This partnership allows us to combine both companies’ development expertise with leading-edge sustainability practices, creating communities that are not only desirable places to live but also contribute positively to the environment and communities in which they are located,” Armstrong said.
Yasuhiro Odagane, managing director of Sumitomo Forestry Australia, said: “We are committed to expanding our sustainable development business globally, and this partnership with Cedar Pacific represents a significant step forward.”
Joe Guilfoyle, co-head of Savills Capital Advisors, added: “BTR continues to provide investors with attractive risk-adjusted returns, given the favourable supply/demand dynamics and resilient cash flows. As a leading platform, with both BTR and PBSA expertise, we are delighted to have assisted Cedar Pacific in securing this first tranche of capital.”
