Warburg Pincus, Kio target $2.5b rental housing portfolio
Warburg Pincus is increasing its commitment to Australian rental housing, expanding its collaboration with Kio Investment Management to pursue a portfolio targeting an end-value of $2.5 billion.
The enlarged venture will buy and develop build-to-rent projects across the major capitals while adding purpose-built student accommodation to its book.
The partnership. Established in 2024, has already secured four BTR projects, three under construction.
In Melbourne, it is acquiring 159-167 Johnston Street, Fitzroy – a site which just received ministerial approval for redevelopment – and 647 Chapel St, South Yarra.
The other complexes are the Halō project at 10-12 Cordelia Street, South Brisbane, and in Sydney, 88-110 Regent St, Redfern.
A fifth development is now being seeded into the platform: Kio’s 407-unit Collingwood, Melbourne, project (artist’s impression, top), which it agreed to acquire in June from Malaysian developer UEM Sunrise on a funds-through basis.
Warburg Pincus is New York based.
Kio was established by Warburg Pincus and Sydney-based Sam Bisla in 2024.
Collingwood deal
The Collingwood project at 21-53 Hoddle Street, on the south-west corner of Langridge, will contain two towers, the tallest, 23 levels, with retail and a public square.
The site spans 5390 square metres (continues below).
The expanded Warburg Pincus-Kio mandate will also cover purpose-built student accommodation, or PBSA, allowing the partnership to invest across a broader institutional living platform that BTR alone.
Warburg Pincus managing director Andrew Fitzpatrick said it reflected its ability to build a scaled Australian living platform.
Warburg Pincus keeps backing Australia
The expansion adds to a series of Australian property investments involving Warburg Pincus.
The firm has also teamed with Singapore based operator StorHub for a self-storage portfolio.
The US group has also teamed with Hale and Oxford Properties on a multi-level logistics project in Sydney’s Rosehill, backed by a $205m debt facility by Nuveen.
That project will contain 49,173 sqm.
Warburg Pincus has also expanded its Asian real estate exposure with Lendlease including a $1,8b Singapore life-sciences portfolio via a joint venture in 2024.
The Kio partnership represents a shift into a more concentrated Australian residential strategy with the $2.5b target end value giving a venture a materially larger mandate than the individual BTR projects secured since its launch.
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