POWERED BY MOMENTUM MEDIA
Lendlease and First State Super look to US multifamily assets
Lendlease and First State Super have announced they will establish a new investment platform to develop and hold multifamily (meaning residential for rent) assets in US gateway cities, with each business committing US$500 million in equity to the new vehicle.
The platform would offer a US$2 billion portfolio of geographically diverse multifamily assets in New York, Chicago, Boston, San Francisco and Los Angeles.
Lendlease would act as the platform’s development, construction and investment manager, with the vehicle being seeded with two existing Lendlease multifamily projects in Chicago and Boston that would ultimately be worth more than US$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,” Lendlease Americas chief executive, Denis Hickey, said.
The two companies pointed out the strength of the US multifamily sector when announcing the investment. The sector was valued at over US$3 trillion and has delivered higher and less volatile returns than most US real estate sectors for the past quarter century, and a major shift to renting has seen more than six million renter households created in the US over the last decade.
First State Super head of income and real assets, Damien Webb, was excited the fund was expanding into a market and sector which he believed had “very attractive” long-term fundamentals.
Recommended for you
Taking a purely passive investment approach is leaving many investors at risk of heightened valuation risks, Allan Gray and Orbis Investments have cautioned.
Annual trimmed mean inflation saw a slight spike in April, according to data from the ABS.
Active managers say that today’s market volatility and dislocation are creating a fertile ground for selective stock picking, reinforcing their case against so-called “closet indexers”.
Platform leaders admit they’re operating under constant pressure and a persistent “state of paranoia” to keep pace with technology that is reshaping how clients access and interact with their wealth.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
92.15 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
53.24 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
43.15 3 y p.a(%)
4
DomaCom Shoreline North Coogee
36.26 3 y p.a(%)
5
GAM LSA Private Shares AU I
35.87 3 y p.a(%)
