Australian property investor, Cedar Pacific, and Sumitomo Forestry Co., a logging and construction timber supplier under the Sumitomo Group, announced a strategic partnership to develop built-to-rent (BTR) assets in Australia and New Zealand.

The partnership will focus on building amenity rich BTR communities that meet high ESG credentials. It plans to do so by leveraging on Cedar Pacific’s property development expertise in the region and Sumitomo Forestry’s knowledge of construction with sustainable timber.

"This partnership combines both companies’ development expertise with leading-edge sustainability practices to creating communities that are not only desirable places to live but also contribute positively to the environment”, says Bernie Armstrong, CEO of Cedar Pacific.

George Konstandakos, General Manager at Sumitomo Forestry Australia, adds that their new partnership will allow them to promote the use of timber technologies such as Cross Laminated Timber, or CLT, to meet the needs of residents.

The joint venture’s first project will be a 475-unit apartment at 50 Quary Street in Brisbane, Australia. As part of the State of Queensland Treasury’s affordable BTR pilot program, 50% of the development will be offered at below market rents. The property will be constructed to 5-star Green Star standards with the intention of being net carbon neutral.

“"With record low residential vacancies of sub-1% nationally in Australia, rents continuing to increase, and housebuilding falling, we see BTR playing an increasingly important role in plugging this housing gap” says Conal Newland, head of operational capital markets at Savills Australia and New Zealand.

Savills Australia and New Zealand and Savills Capital Advisors advised Cedar Pacific on their capital raise.

Other upcoming projects in the JV’s pipeline include locations in Melbourne, Canberra, Brisbane, and Auckland.