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Real Estate

First State Super, Lendlease to build $2 billion U.S. multifamily rental portfolio

First State Super, the A$64 billion ($46.8 billion) Sydney-based superannuation fund, and Lendlease, an international property and infrastructure group also based in Sydney, will establish an investment partnership to develop and operate multifamily residential rental properties in gateway U.S. cities, the two organizations announced Wednesday.

First State Super and Lendlease have committed $500 million each in equity to the platform, which will invest in multifamily assets in New York, Chicago, Boston, San Francisco and Los Angeles, Damien Webb, First State Super's head of income and real assets, said in an email.

Plans call for creating a $2 billion portfolio. The platform will be seeded with two existing Lendlease multifamily projects currently being completed in Chicago and Boston, with a projected value of $400 million.

A Lendlease spokesman declined to provide further details about the structure of the investment vehicle or anticipated returns.