Four top firms have fielded teams to help establish the first build-to-rent multifamily vehicle in Australia.
Mirvac has established the $1bn Australian Build-to-Rent Club (ABTRC) and has secured a $50m investment from the Clean Energy Finance Corporation (CEFC). The cornerstone investor’s funding hands it a 30% stake in the club’s first financial close.
Ashurst advised Mirvac on the establishment of and the seed round for the ABTRC, which lets investors back rent-to-own assets in the country. Corporate partner Anton Harris led the Ashurst team, with support from funds partner Lisa Simmons and tax partner Barbara Phair.
Herbert Smith Freehills (HSF) acted for the CEFC. Partners Fiona Smedley and Nicholas Cowie, consultant James Graham, and senior associates Yorick Ng and Japonica Sheridan formed the HSF team.
Corrs Chambers Westgarth was legal adviser to Mirvac on construction matters. Gilbert + Tobin was direct tax adviser to Mirvac. UBS was financial adviser to Mirvac.
The club’s seed asset is the Indigo at Mirvac’s Pavilions project at Sydney Olympic Park. The development, which has been designed to cut at least 40% of a typical apartment development’s greenhouse gas emissions, has already commenced construction and is expected to be completed in 2021.
“The CEFC’s cornerstone investment in the ABTRC demonstrates its leadership in the energy efficiency space. We are elated to have facilitated a transaction that will embed a range of clean energy initiatives into new residential communities,” said HSF partner Smedley.
“The team at CEFC bring a wealth of expertise to investment in real estate assets and are leaders in driving energy efficiency in construction practices. We are extremely pleased to have aided them to achieve their goal to enhance environmental sustainability in the emerging build-to-rent sector,” Cowie added.
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