Real Estate

Aussie invasion? Two Australian financial giants plan to build $2 billion U.S. multifamily portfolio | 2018-08-24


U.S. multifamily has had the favor of U.S. investors for quite some time, but it seems tales of its boons have stretched to the land down under.

Australian companies Lendlease and First State Super have teamed up to invest some serious capital in U.S. multifamily assets.

According to a release, the firms have each committed $500 million in equity to start a new investment platform with the intent of creating a $2 billion multifamily portfolio with assets in the “gateway cities” of New York, Chicago, Boston, San Francisco and Los Angeles.

“We have a strong track record of success working alongside First State Super and share a common objective to increase our exposure to the US multifamily sector,” Lendlease Americas CEO Denis Hickey said in a statement. Lendlease is an international property giant with operations in Australia, Asia, Europe and the Americas.

“Over time, the platform will also provide an opportunity for new investors to gain access to a portfolio of multifamily assets across our US gateway cities,” he added.

First State Super, one of Australia’s largest superannuation funds, has been eyeing the U.S. multifamily market for a while and is excited to cash in on the strong performance of the asset class.

“We are excited to expand our strong and longstanding relationship with Lendlease into a market and sector that we believe has very attractive long-term fundamentals,” First State Super Head of Income and Real Assets Damien Webb said in a statement.

“Over the past few years First State Super has proactively researched the multifamily sector domestically and in the US. We believe Lendlease is an excellent partner to execute on this strategy given their skill in delivering large urban regeneration projects coupled with their integrated business model,” he added.

Lendlease will become the new platform’s development construction and investment manager, and the portfolio will be seeded with two existing Lendlease properties that are being completed in Chicago and Boston, valued at $400 million.

“This new multifamily investment vehicle is consistent with our strategy of leveraging Lendlease’s integrated property capabilities to deliver high quality urban regeneration projects that enhance people’s lives while simultaneously creating value for our shareholders and partners,” Hickey said.


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