The Macquarie Group Ltd (ASX: MQG) share price is in the green this morning amid the financial institution putting more than $500 million towards developing build-to-rent complexes.
The financial giant is backing built-to-rent platform Local through a joint venture managed by Macquarie Asset Management's real estate division, comprising Macquarie and major global real estate investors.
At the time of writing, the Macquarie share price is $203.59, 0.54% higher than its previous close.
Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is currently up 0.03%.
Let's take a look at what's got Macquarie in the headlines today.
Macquarie bursts into rentals
Those invested in Macquarie shares will soon hold a slice of a build-to-rent operation.
Local founder and co-CEO Matthew Berg states that the build-to-rent operation will provide good quality housing and commercial returns for Macquarie fund investors.
And it's not all for investors. The outfit is planning to provide sustainable, affordable housing as increasing house prices leave Australians renting for longer.
Local's target rental market is vital workers, such as nurses and hospitality workers. It will also focus on building housing for those living with a disability and women at risk of homelessness.
Additionally, the site on which Macquarie and Local plan to build their first property has already been purchased.
A new build-to-rent building is set to pop up in Kensington. The property will house 500 units before 2025.
According to a report by the Australian Financial Review (AFR) shared by Local on social media, Local has a goal of building 4,000 units in 5 years. That would see another 15 to 20 buildings added to Australian skylines.
Excitingly for Macquarie shareholders, The Australian reports the investment marks the first time the financial giant has involved itself in developing assets it plans to keep.
The operation will reportedly begin by focusing on developments in Melbourne. Though, it's said to be keeping an eye out for opportunities in other Australian capital cities.
Macquarie Asset Management global chief investment officer of real estate Jelte Bakker commented on the venture, saying:
Investing in Local is aligned to our strategy to invest in real estate suitable for tomorrow's world…
We strongly support the build-to-rent sector in various parts of the world and believe it has significant potential to grow in scale in Australia, driven by demographics including a growing renting population.
Macquarie share price snapshot
The Macquarie share price has been performing well lately.
It has gained 7% over the last 30 days. It's also currently 47% higher than it was at the start of 2021.
