Hines, Ontario Teachers’ Buy Two Brisbane Multi-Family Projects for $242M

US developer and fund manager Hines and the Ontario Teachers’ Pension Plan have completed their acquisition of two build-to-rent projects in Brisbane with a total of 354 units, providing exposure to a growing market for multi-family assets in Australia.

The pair of projects comprise an operational 89-unit asset and an under-construction 265-unit development, Hines said Tuesday in a release. The seller was Sydney-based, family-owned construction and property group ADCO, whose Arklife brand manages the projects.

No financial terms were disclosed, but multiple media sources in Australia put the deal value at A$350 million ($241.8 million). Hines is actively pursuing build-to-rent opportunities in Brisbane and other key Australian cities with strong fundamentals, said David Warneford, country head of Australia and New Zealand at the privately held firm.

“Hines sees tremendous potential in Australian BTR for both investors and residents,” Warneford said. “It’s poised to offer stable cash flow and income growth while helping to meet the demand for quality rental housing in the country.”

Stabilised Asset

The operating property at 28 Robertson Street, in Brisbane’s inner suburb of Fortitude Valley, was completed in October 2021 and stabilised within six months, Hines said. Features include the usage of renewable energy, storm water recycling, high-performance acoustic glazing and low-energy LEDs.

The project at 13-17 Cordelia Street in South Brisbane is expected to reach practical completion in the first quarter of 2025 and provide a gym, rooftop pool, resident lounge, co-working space, private dining room and sky garden. The asset will target a five-star Green Star rating and a 7.0 Energy Performance Rating under Australia’s Nationwide House Energy Rating Scheme.

Hines will provide asset management services and Arklife, which has four projects with more than 1,500 apartments, will continue to serve as the property manager.

The acquisition aligns with Toronto-based Ontario Teachers’ Living strategy for Australia, targeting amenity-rich assets in vibrant submarkets close to transport links, employment hubs and entertainment centres.

“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, head of Asia Pacific real estate at the $183 billion pension fund.

Betting on Beds

Beyond Australia’s multi-family market, Houston-based Hines last year opened its first-ever rental apartment complex in Hong Kong, Dash on Prat, with operating partner Dash Living.

The firm’s pan-Asian core-plus fund, Hines Asia Property Partners, had acquired the former Butterfly on Prat hotel in November 2021 through a joint venture with local investment firm Mindworks Ventures, with market sources indicating at the time that the partners paid HK$925 million (then $118.6 million) for the 18-storey property.

HAPP also holds a set of 11 Japan multi-family assets acquired in December 2022. Ontario Teachers’ committed $400 million to HAPP in 2021.