AMP Capital announces residential land development joint venture

Not for release or distribution in the US

AMP Capital, on behalf of one of its separate account clients, has entered into a joint venture with New South Wales house builder and developer Rawson Group to deliver high-quality residential housing solutions for two developments in Sydney’s northwest and southwest.

AMP Capital has taken a one third equity share in the joint venture, which will have a $200 million end value. The joint venture will hold two residential land subdivision projects (Horizon at Marsden Park and Fifth Avenue in Leppington) in New South Wales, and AMP Capital will be involved in the land subdivision of these developments.  Rawson Group will additionally provide home construction services to these developments if required.

Rawson Group is a well-known builder in NSW and the ACT.  The Group is comprised of a house building company, Rawson Homes, which manages an extensive portfolio of contract home building projects, knock-down and rebuild house building projects and house and land package products. Rawson Communities is the group’s land development arm, which manages the development of a 1,200-lot land pipeline including projects owned by third parties.

AMP Capital Head of Real Estate Separate Accounts John Dynon said: “We are pleased to form this partnership with Rawson Group and combine our property funds management capabilities with its seasoned development management expertise for good quality and well-priced residential housing located in the key growth corridors of Sydney.

“The Sydney residential market continues to experience residential dwelling supply shortage, resulting in strong demand for high-quality residential developments.  These two developments are well positioned to benefit from the New South Wales government’s investment in enabling infrastructure.

“We are excited to present this opportunity to one of our long-term separate account clients, who we have had a relationship with for more than 16 years.  We pride ourselves on bringing our clients bespoke investment opportunities that suit their particular investment needs and risk profile and in 2016 we delivered our client their highest ever portfolio return.  This joint venture aims to continue outperformance for their portfolio.”

AMP Capital manages more than $8 billion for separate account clients including diversified real estate portfolios across the risk/return spectrum on behalf of local and international pension funds, sovereign funds and family offices.