The fund confirmed it would undertake a 10-year project with Greystar Real Estate Partners of Charleston, South Carolina.
According to a statement released by REST, the fund will be the majority equity partner in approximately eight new rental apartment buildings.
A total of around 3,000 apartments will be developed and managed by Greystar, while REST will retain approval over all major investment decisions for residential developments by Greystar in specified cities, REST said.
REST CEO Damian Hill suggested the project would give REST exposure to US rental markets, increasing the fund’s geographical diversity.
“Importantly, this joint venture aligns with our investment objectives to deliver long-term investment performance for members by offering attractive returns with relatively low volatility,” he said.
“We actively seek opportunities to diversify our investments across different asset classes, domestically and globally, to reduce overall risk and achieve long-term growth for our members.”
Construction is slated to start shortly in Austin, Texas and at least four other developments are likely to be underway by November 2015, Mr Hill said.
As a result of the project, the portion of total member assets represented by property will rise from 9 per cent to 10 per cent, the statement confirmed.
Meanwhile, the joint venture will increase REST’s international property exposure to 13 per cent of the property portfolio, REST said.
Other current offshore investments include student accommodation facilities in Campus Living Villages Fund across the US, UK and New Zealand, according to REST.
