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Barings, a global investment manager, and Aware Super, an Australian superannuation fund valued at $160 billion, have jointly acquired a build-to-rent (BTR) development in Canberra on Wednesday. The acquisition, worth $157.5 million, marks the first-ever sale of a completed BTR asset in Australia’s capital city.
The property, named Dickson Village, was purchased from local developer Tony Pan and reflects a 6% fully leased forecast yield for both the neighborhood retail center and the BTR apartments. The development consists of 140 six-storey BTR apartments situated above a neighborhood shopping center and residential car park.
The shopping center is anchored by Coles and Liquorland until 2035 and includes 10 specialty shops offering food and services. The property was developed by TP Dynamics to cater to Canberra’s tight rental market characterized by low residential vacancy rates.
Michelle McNally of Aware Real Estate and Shaun Hannah from Barings expressed optimism about the potential growth due to Canberra’s ongoing gentrification and infrastructure investments. The acquisition aligns with Aware Real Estate’s strategic focus on infrastructure locations. The company’s real estate portfolio is currently worth approximately $2 billion.
The deal was brokered by CBRE’s James Douglas, Nic Purdue, and Tristan Cotchett. They highlighted the strategic nature of the acquisition given the property’s proximity to the Dickson Interchange and surrounding high-density residential developments.
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