PGGM Partners with Sentinel in Australian Build to Rent Venture

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Element 27 exterior

Element 27, Sentinel's flagship Build to Rent apartment community in Subiaco, WA, which was the first purpose-built BTR apartment building operating in Australia

Sentinel and Dutch pension fund manager PGGM have today announced a new partnership to develop and manage up to A$1.5 billion in Build to Rent communities throughout Australia.

PGGM's first investment tranche opens up a pipeline of over A$700 million in initial development potential for the venture. The partnership aims to develop a national portfolio of approximately 2,500 Build to Rent units, with the first two sites for development already confirmed. Sentinel, through its vertically integrated platform, will provide investment management, development management and property management services to the partnership.

Michael Streicker, President of Sentinel, said: "Sentinel is proud to expand our partnership with PGGM into the Australian market. Their commitment to this venture is a clear vote of confidence in our Build to Rent platform and the future of the sector in Australia.

"We're committed to continuing to deliver high quality, sustainable and community-focused living that enhances the housing choices available to Australians. This is particularly important at a time where changes in the housing market and supply levels are front of mind for so many," said Mr. Streicker.

Jikke de Wit, Senior Director Private Real Estate of PGGM said: "We are excited to expand our relationship with Sentinel into the Australian Build to Rent market. Although the sector is still relatively small, we believe that it will grow over time and become an important part of the Australian housing market.

"Sentinel is a longtime partner of PGGM in the US and we are confident their expertise will help us build a new portfolio of high quality, low carbon apartment communities. The sustainability of this investment contributes to our client PFZW's long-term ambition to align their real estate investments with the Paris Climate Agreement," said Ms. de Wit.

The partnership will leverage Sentinel's 50 years' global multifamily experience and its decade-long endeavour to establish an Australian Build to Rent sector. In 2019, Sentinel delivered Element 27, Australia's first ever purpose-built institutional Build to Rent community, located in Subiaco, Western Australia. In 2021, the first phase of Element 27 became the first apartment building in Australia to be Carbon Neutral Certified under the Climate Active Carbon Neutral Standard for Buildings.

Sentinel currently has more than 1,300 Build to Rent units under various stages of development throughout Australia. Read more about our Australian Build to Rent Projects.

The announcement has received considerable coverage in the press:
Australian Financial Review
IPE RealAssets
The Australian
The Urban Developer
Australian Property Journal
Sovereign Wealth Fund Institute
Financial Standard
The Property Tribune
Real Estate Source
Business News

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