Ontario Teachers’ Pension Plan and Hines Acquire Two Build-to-Rent Assets in Brisbane

The Ontario Teachers’ Pension Plan and Hines have acquired two Build-to-Rent (BTR) assets in Brisbane, adding a total of 354 units to their portfolio.

This acquisition aligns with Ontario Teachers’ Real Estate Living strategy, which targets well-located, amenity-rich assets in major urban areas. The assets, located in Fortitude Valley and South Brisbane, provide residents with convenient access to transportation links, employment centres, and entertainment precincts. The two properties include:

28 Robertson Street, Fortitude Valley: An operational 89-unit BTR asset completed in October 2021. The building was stabilised within six months and incorporates sustainable features such as renewable energy use, stormwater recycling, and low-energy LED lighting.

13-17 Cordelia Street, South Brisbane: A 265-unit BTR asset scheduled for completion in Q1 2025. Positioned in a prime location within South Brisbane, this development will offer top-tier amenities, with the rooftop communal area as a key highlight. The rooftop would feature an outdoor gym, pool, barbeque and dining area, lounge space, outdoor cinema, and landscaped garden areas.

These spaces are designed to provide residents with a diverse range of recreational and social activities. Other amenities include a residents’ lounge, co-working space, and private dining room. The project is targeting a 5-star Green Star rating and a 7.0 Energy Performance Rating under the Nationwide House Energy Rating Scheme (NatHERS).

Designed by Mode Design, the Cordelia Street project is part of the broader transformation of South Brisbane, adding to the area’s residential offerings. The rooftop communal spaces are expected to be a major attraction for residents, providing both leisure and entertainment options in a unique outdoor setting.

Jun Ando, Head of Asia-Pacific Real Estate at Ontario Teachers’, noted that these acquisitions mark a strategic entry into Brisbane’s market. He cited Australia’s population growth and increasing demand for rental properties as key drivers for long-term potential in the Build-to-Rent sector. Ontario Teachers’ is collaborating with Hines and Arklife to offer attractive rental options while managing the assets for long-term value.

David Warneford, Country Head of Australia and New Zealand at Hines, highlighted the firm’s focus on expanding Build-to-Rent opportunities in Brisbane and other key Australian cities. Warneford noted the potential for stable cash flow and income growth while addressing the growing need for high-quality rental housing.

The vendor, ADCO Group, managed the projects through Arklife, a Build-to-Rent platform co-owned by ADCO. Hines will manage the assets, while Arklife will continue to oversee the day-to-day operations of the properties.

The transaction was brokered by Stuart McCann and Andrew Purdon of CBRE.