PGGM strikes Australian BTR partnership

Hines recently acquired a Brunswick site for its first Build to Rent project.

US based Sentinel Real Estate, via a division, Sentinel Fund Manager Australia, has entered a partnership with Dutch pension fund PGGM to develop and manage a $1.5 billion local Build to Rent portfolio.

The deal will begin with the construction of two projects – which will form part of what the pair call the first tranche.

Greystar is planning over 700 dwellings at 15-85 Gladstone Street, South Melbourne.

In as yet undisclosed locations, these are expected to have up to a c$700m end value.

In total, the partners aim to develop and manage 2500 flats here.

The agreement comes four months since PGGM teamed with Hines, which is also US based, to construct 1400 BTR units across Milan.

Since 2016, the Netherlands based group has also constructed a portfolio of this type with Legal & General.

Sentinel has individually delivered a BTR product here – Element 27 (pictured, top) at Perth’s Subiaco.

Its development pipeline prior to entering the PGGM agreement forecasts c1300 dwellings.

Two more projects are in the Western Australian capital, including at Scarborough, in a 24 storey complex (story continues below).

PGGM in March co-purchased a half stake in 510 Church Street, Cremorne.

PGGM expands into ‘relatively small’ local sector

In Australia, PGGM has a partnership with Charter Hall that in March paid c$135m for a half-stake in a Cremorne office.

That pair also this year purchased a Bowen Hills (Brisbane) industrial investment with residential redevelopment upside.

As well, PGGM is a cornerstone backer of EG’s open-ended Australian Core Enhanced Fund, which holds nearly a dozen assets.

“We’re excited to expand our relationship with Sentinel into the Australian BTR market,” PGGM senior director, Private Real Estate, Jikke de Wit, said.

“Although the sector is relatively small, we believe that it will grow over time and become an important part of the Australian housing market,” he added.

“Sentinel is a long-time partner of PGGM in the US and we are confident its expertise will help us build a new portfolio of high quality, low carbon apartment communities,” according to the executive. “The sustainability of this investment contributes to our clients PFZW’s long-term ambition to align their real estate investments with the Paris Climate Agreement”.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of