REST Industry Super has entered into a joint venture with US rental apartment developer Greystar Real Estate Partners.

The 10 year joint venture makes REST the majority equity partner in approximately eight new rental apartment buildings with a combined total of around 3,000 apartments to be developed and managed by Greystar.

The deal will also help the geographic diversity of REST’s property portfolio, which will rise from 9 per cent of total member assets to 10 per cent as a result of this deal.

Damian Hill, chief executive of REST Industry Super, said: “This exciting joint venture gives us the ability to invest alongside the largest manager of residential rental properties in the US in key growth markets across America.

“Importantly, it aligns with our investment objectives to deliver long-term investment performance for members by offering attractive returns with relatively low volatility.”

Planning and construction of the first residential property under the agreement is expected to start shortly in Austin, Texas, with a further four other developments to be underway by this time next year.

The cities covered under the joint agreement were selected because of their strong population and employment growth driven by a diverse local economy.

Under the terms of the joint venture, REST will retain approval over all major investment decisions for residential developments.

Greystar invests, develops and manages multifamily investments. The multifamily investment class is unique to the United States and some markets in Europe and comprises for-rent apartments in garden style, medium and high density apartment buildings.

The Future Fund was one of the first Australian funds to invest in this asset class with Berkshire Property Advisors.

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