Breaking Ground: Cedar Pacific and Sumitomo Forestry Collaborate on Sustainable BTR Assets

Cedar Pacific Sumitomo Forestry Co. Build-to-Rent
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Cedar Pacific, an influential Australian property investor, and Sumitomo Forestry Co., Ltd., a significant Japanese corporation with diverse interests in forestry, wood management, and development, have unveiled a strategic collaboration aimed at developing Build-to-Rent (BTR) assets in Australia and New Zealand.

This groundbreaking partnership merges Cedar Pacific’s extensive development proficiency in Australia and New Zealand with Sumitomo Forestry’s pioneering sustainable timber building solutions and steadfast commitment to Environmental, Social, and Governance (ESG) principles. Together, they pledge to craft vibrant residential communities that not only boast exceptional design and amenities but also champion environmental stewardship and social accountability.

Bernie Armstrong, CEO of Cedar Pacific, expressed enthusiasm about the venture, stating,

“This partnership allows us to combine both companies’ development expertise with leading-edge sustainability practices, creating communities that are not only desirable places to live but also contribute positively to the environment and communities in which they are located. We are honoured to partner with Sumitomo Forestry to develop high-quality BTR communities in Australia and New Zealand.”

Yasuhiro Odagane, Managing Director of Sumitomo Forestry Australia, echoed Armstrong’s sentiments, affirming,

“We are committed to expanding our sustainable development business globally, and this partnership with Cedar Pacific represents a significant step forward.”

George Konstandakos, General Manager at Sumitomo Forestry Australia, emphasized their shared vision, adding,

“Our combined expertise will allow us to deliver innovative BTR communities that promote the use of timber technologies such as Cross Laminated Timber (CLT) to meet the needs of residents and contribute to the creation of a more sustainable future.”

The partnership’s inaugural project, 50 Quay Street in Brisbane, embodies their commitment to sustainability and affordability. As part of Queensland Treasury’s affordable BTR pilot program, the development, undertaken in collaboration with Hutchinson Builders, will offer 475 apartments, with 50% available at below-market rents. Set against the picturesque backdrop of the Brisbane River, the project is being constructed to target a 5 Star Green Star Buildings rating, with a steadfast commitment to operating at net carbon neutrality from inception.

50 Quay Street, Brisbane, by Cedar Pacific and Sumitomo Forestry Co. (Image: Cedar Pacific)
^50 Quay Street, Brisbane, by Cedar Pacific and Sumitomo Forestry Co. (Image: Cedar Pacific)

Charting a Path Forward

With a robust pipeline of projects spanning Melbourne, Canberra, Brisbane, and Auckland, the partnership is poised to leave an indelible mark on the rental housing landscape. Savills Capital Advisors and Savills Australia and New Zealand played a pivotal role in facilitating Cedar Pacific’s capital raise, underscoring the growing investor interest in BTR developments.

Joe Guilfoyle, co-Head of Savills Capital Advisors, affirmed the sector’s appeal, citing its favorable supply-demand dynamics and resilient cash flows.

“BTR continues to provide investors with attractive risk adjusted returns, given the favourable supply / demand dynamics and resilient cash flows. As a leading platform, with both BTR and PBSA expertise, we are delighted to have assisted Cedar Pacific in securing this first tranche of capital with a high quality institutional investor.”

Conal Newland, Head of Operational Capital Markets at Savills Australia and New Zealand, emphasized the pivotal role of BTR in addressing housing shortages, stating,

“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. We are pleased to have assisted Cedar Pacific in this new partnership and look forward to seeing new sustainable homes delivered across under supplied markets.”

As Cedar Pacific and Sumitomo Forestry forge ahead with their visionary partnership, they stand poised to unlock the rental housing paradigm, one sustainable community at a time. With a shared commitment to innovation, sustainability, and community enrichment, they pave the way for a brighter, more inclusive future in the Australian and New Zealand property landscape.

Note: The information presented in this article is for general informational purposes only and should not be relied upon as legal, financial, or professional advice. While we make every effort to fact-check and verify the information presented, we cannot guarantee its accuracy or completeness. Readers are encouraged to independently verify any information they find on our website and to consult with relevant professionals before making any decisions based on the information presented. The Australian Development Review does not own the rights to the information included within this article, and furthermore, there is no infringement intended from the included text and images within.

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