Another week, another entrant in the land lease sector but this time Macquarie is swamping rivals in the dollars stakes.
Macquarie Real Estate Partners is not only committing $2.85 billion to the land lease sector but has announced it will create a new brand and will be the operator, not just an investor.
There $2.85 billion adds to the new $1.5 billion that we have covered that have been committed to the sector in the past two weeks.
James Kemp (pictured), who leads Macquarie Asset Management’s real estate business in Australia, New Zealand and across the Asia Pacific, told the Financial Review, “We see this very much as a seniors’ housing product. We will be setting up our own platform and are comfortable with the development risk.”
The money is to come from the global asset manager’s second opportunistic real estate fund.
The details of the new platform (and its name) will be revealed later. James said many of its assets would be greenfield developments on the east coast including in NSW and south-east Queensland.
MAM’s raising for its new fund was supported by pension and sovereign wealth funds in Australia, Canada and the Middle East.
Brisbane-based alternative real estate fund manager GreenFort Capital bought its first community last week for its $800 million land lease joint venture portfolio (read the full story here).
In May, ASX-listed Stockland announced a $1 billion capital partnership with Invesco Real Estate to jointly develop land lease communities. In February, Lifestyle Communities launched a $275 million raising to support its growth into land lease residential estates.
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