Gurner, Qualitas Bank $2bn Raise for BtR Platform

Budding build-to-rent developers GQ, owned by Gurner and ASX-listed Qualitas, has swelled its strongbox with an additional $2 billion in its latest fund raising. 

An unnamed global institutional investor backed the build-to-rent platform to take GQ’s total gross assets under management to $3.2 billion. 

GQ initially secured $1.2  billion in gross assets under management in its first fund, deployed into four prime assets of about 1420 apartments either under construction or due to commence in mid-2023. 

According to Gurner founder Tim Gurner, the second fund will focus on Sydney, growing the already established New South Wales pipeline, and augmenting GQ’s plans to create a $5-billion portfolio of 5000 apartments under management by 2026. 

The platform is also readying for the completion and opening of its first asset in early 2024.

“When we first launched the GQ platform in 2021 we set out to lead the sector with some pretty ambitious growth plans,” Gurner said. 

“We are now well ahead of our forecasts in terms of pipeline and funding, with four seed sites already secured and a huge amount of further capital ready to deploy.

“We have a large number of sites under our control that will form part of the second fund and future funds as we continue to grow our platform.”

▲ A render of the Gurner-Qualitas mixed-use build-to-rent development proposal for a 2049sq m Parramatta site that, if approved, will comprise 385 apartments.

The initial portfolio includes the $350-million Beach House St Kilda, a 297-apartment development where demolitions works were completed late last year. 

It also comprises projects in Southbank, Parramatta and Melbourne’s inner north, which are all due to progress in 2023. 

“This latest round of funding means we have a huge amount of dry powder to utilise as the right deals arise. We are actively focused on the Sydney market as our primary target, in addition to Melbourne, where we believe the most opportunities will be in the coming years,” Gurner said.

“With a lot of uncertainty in the world and market fragmentation currently, alongside the significant movement in interest rates, capital costs and construction prices, we believe that all capital cities but Sydney especially will experience a 15-20 per cent correction in land price in the coming 12 months so we will be ready to jump on any opportunities that arise and will be keeping a keen eye on that market in particular.”

Qualitas global head of real estate Mark Fischer said there was “huge opportunity” for the build-to-rent sector in Australia.

“This new commitment by a global institutional investor to the second fund supports this and demonstrates the scalability of the opportunity,” Fischer said.

“Our ambition is to be a dominant player in the Australian build-to-rent market and with this latest investment we are on our way to achieving this. The additional $2-billion capacity gives GQ the dry powder necessary to capitalise on the interesting deal flow we expect to see during 2023 and beyond as markets recalibrate.”