Investa reignites $1.5b build-to-rent strategy; hires advisers

afr.com:

The rush is on in the booming build-to-rent sector, and the $16 billion Investa, run by Peter Menegazzo, does not intend to be left behind.

The real estate investment manager is in the early stages of a selldown process for three build-to-rent projects worth about $1.5 billion, including one in the Sydney CBD and two in Melbourne, sources say.

Investa boss Peter Menegazzo is seeking a chunk of third-party money as part of his revamped build-to-rent strategy.  

The deal is targeted at institutional investors, including superannuation, insurance and pension funds, and would see Investa seek to sign terms with one party before the end of the calendar year.

Street Talk understands Investa – now owned by investors in the Investa Commercial Property Fund and Canadian investment house Oxford Properties, part of the Ontario pension fund empire – has appointed investment bank Eastdil Secured and Lucas Salagaras’ boutique firm, Point Capital, as advisers on the mooted deal.

According to sale materials in front of institutional investors, the manager hopes to offload a 50 per cent stake in the three projects that make up its Indi build-to-rent platform.

Among the developments up for sale is a residential project in Sydney’s CBD at the site of the proposed new Pitt Street metro station. Construction of the 39-storey, 234-apartment building was approved in 2021. The two other projects – a 702-unit building in Footscray and a 434-apartment tower in Southbank – were approved for development in February.

There’s been plenty of action in the build-to-rent sector, with Mirvac locking in investors for its own fund that will hold five assets worth $1.8 billion last month. Among those investors is the Clean Energy Finance Corporation and