Multibillion-dollar developer Gurner has teamed up with fund management giant Qualitas to deliver more than 1,200 apartments as part of a $1 billion apartment pipeline.
The ambitious plan aims to capitalise on the favourable market conditions and offer prime multi-family apartments across Australia and New Zealand by capitalising on the growing build-to-rent sector.
The joint venture will see Gurner handle the design, construction and project development, with Qualitas overseeing the transaction structuring process.
Australian Rich Lister Tim Gurner explained that his company had been keeping an eye on the multi-family sector for some time before deciding that now was the time to strike.
“Multi-family is an asset class with a long-term outlook – and our long-term outlook for the property market across all of Australia’s major cities is very positive,” he said.
“We see this as a great opportunity to introduce a new demographic of Australians to our product,” Mr Gurner added.
The initial pipeline will get under way with three inner-city Melbourne locations, touted for construction in the first quarter of 2021.
The news comes just months after the pair struck a $150 million equity partnership and Qualitas co-founder Mark Fischer said the partners are a match made in heaven to deliver the apartment masterplan.
“The multi-family sector in Australia is compelling on a risk-adjusted returns basis and the Qualitas team working with Gurner gives a unique ability to secure key sites in trophy locations through intelligent and thoughtful deal structuring.”
Sites across Sydney, Brisbane, Perth and Adelaide are also all being earmarked as potential assets for future projects as part of the revolutionary apartment pipeline as a new wave of Australians enter the property market.
“Young, well-educated professionals are persistently prioritising lifestyle over home ownership, preferring comfortable, sustainable, well-located rentals over ownership,” Mr Fischer said.
“And once the immigration tap is turned back on, net overseas migration is forecast to rebound to 200,000 per year by 2024.
“This combination of drivers makes this a compelling opportunity and we’re excited to launch this fund”.