Macquarie Real Estate Partners (MREP), a real estate fund managed by Macquarie Asset Management's Real Estate division (MAM), today announced it has established a new vertically integrated land lease communities group called Millbray.
Owned 100% by MREP, Millbray will cater to the growing demand from Australia's over 50's market for high-quality residential accommodation.
Operated by a specialist management team and leveraging, through MREP's ownership, MAM's expertise and experience in establishing and growing real estate operating platforms, Millbray has the capability to develop, own and manage land lease communities.
Initially focused on the greenfield development of new communities, Millbray is targeting to deliver at least 5,000 homes in markets along the Australian eastern seaboard. To date, Millbray has secured over 2,000 home sites across Queensland and New South Wales, with a gross development value of >A$1.7bn.
James Kemp, Head of Real Estate Asia Pacific, Macquarie Asset Management, said: "MAM has extensive experience investing in the Australian living sector. We continue to have high conviction in this sector including in the sub-sector focused on the aging population. Millbray is our latest investment in an Australian living platform and our eleventh investment in living platforms globally.
"The Millbray team was assembled through our ability to identify and attract high-quality teams in sectors where we want real estate exposure. Our credibility in doing this comes from our extensive experience in establishing, managing and scaling operating businesses. As a fully integrated business, Millbray enables MREP to access the land lease communities sector in a way that seeks to maximise outcomes for residents, as well as for MREP."
Justin Ayre, Managing Director, Macquarie Asset Management, said: "The land lease sector is increasingly attracting interest from institutional real estate investors. The challenge for these investors is how to access such a fragmented sector with an aligned and experienced management team.
"With a rapidly growing over 50s population in Australia, land lease communities provide a high-quality housing solution for residents. Millbray's communities will provide residents with high quality purpose-built housing and resort style amenities within a secure community, and with convenient access to medical, transport connections and community services. As a dedicated land lease communities group, Millbray is focused on designing, creating and operating communities that place its residents' lifestyles first."
Construction for Millbray's first development, Ashcroft, in Flagstone, Queensland is currently underway and includes 293 homes across 12ha, with 5,000sqm of amenities including a 25m lap pool, gym, bowling green, pickleball courts and cinema. The project is conveniently located in a central part of Flagstone, close to major health facilities, train station and 330 hectares of parks and pathways. Millbray's first residents are expected to be living in the community in 2026.
Macquarie Asset Management's Real Estate division is a global real estate investment business with a track record of identifying and investing in sectors backed by global megatrends. The Real Estate team's deep network, cultivated over 35 years, and differentiated approach, enables Macquarie Asset Management to create institutional real estate investment opportunities in hard to access sectors.
Disclaimer
None of the entities noted in this media release is an authorised deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia) and the obligations of these entities do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542 (Macquarie Bank). Macquarie Bank does not guarantee or otherwise provide assurance in respect of the obligations of these entities. In addition, if this media release relates to an investment (a) each investor is subject to investment risk including possible delays in repayment and loss of income and principal invested and (b) none of Macquarie Bank or any other Macquarie Group company guarantees any particular rate of return on or the performance of the investment, nor do they guarantee repayment of capital in respect of the investment.
