The Ontario Teachers’ Pension Plan and Hines have acquired two build-to-rent assets in Australia.

Teachers’ and U.S.-based Hines bought the properties from ADCO Group, an Australian private investor and builder.

The properties are located in Fortitude Valley and Brisbane. Fortitude Valley is a Brisbane inner suburb.

The Fortitude Valley site comprises an 89-unit building that was completed in 2021 and stabilized six months later, said Teachers’ and Hines in a news release. The building’s environmental and social governance features include the usage of renewable energy, storm water recycling, high-performance acoustic glazing and low-energy LED lighting.

The Brisbane property is still under development. The 265-unit project is expected to reach practical completion in the first quarter of 2025. Amenities will include a gym, rooftop pool, residents lounge, co-working space, private dining room, and a sky garden.

The project will target a five-star Greenstar rating and a 7.0 energy performance rating under Australia’s Nationwide House Energy Rating Scheme. The acquisition marks Teachers’ expansion into Brisbane.

“With the Australian population expected to see continued growth and consumer preferences in the country moving more towards the rental sector, we see strong, long-term potential in the Australian multi-family market,” said Jun Ando, Teachers’ head of Asia-Pacific real estate.

Hines will provide asset management services while ADCO subsidiary Arklife, a specialized build-to-rent developer, owner and manager, continues to manage the property.

“These acquisitions reflect our continued focus on actively pursuing build-to-rent opportunities in Brisbane, as well as in other key Australian cities with strong fundamentals,” said David Warneford, Hines’ head of Australia and New Zealand.

Photo: Ontario Teachers’ Pension Plan/Hines