Australia: Real estate investment manager Investa is in the early stages of a divesting three BTR projects worth $1.5 billion, including one in the Sydney CBD and two in Melbourne.
The company, run by CEO Peter Menegazzo, is seeking a third-party investor as part of its revamped build-to-rent strategy.
The deal is targeted at institutional investors, including superannuation, insurance and pension funds, and would see Investa seek to sign terms with one party before the end of the calendar year.
Investa – owned by investors in the Investa Commercial Property Fund and Canadian investment house Oxford Properties, part of the Ontario pension fund empire – has appointed investment bank Eastdil Secured and and Point Capital as advisers.
According to sale materials in front of institutional investors, Investa hopes to divest a 50 per cent stake in the three projects that make up its Indi build-to-rent platform.
Among the developments up for sale is a residential project in Sydney’s CBD at the site of the proposed new Pitt Street metro station. Construction of the 39-storey, 234-apartment building was approved in 2021. The two other projects – a 702-unit building in Footscray and a 434-apartment tower in Southbank – were approved for development in February.
Investa had previously considered raising money for its build-to-rent platform, at the time advised by Eastdil and JLL, but put that process on ice.
According to Savills, there are 8,300 units in Australia’s current BTR stock, and 8,400 under construction. The future pipeline stands at 22,500 units, including those at application stage.
