JOIN, Cosmos Initia, Kanden Realty Development and Novus Holdings Form JPY 3.2 Billion JV for Sydney Build-To-Rent Tower

Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development (JOIN), led by President & CEO Tatsuhiko Takesada, has received approval from Japan's Minister of Land, Infrastructure, Transport and Tourism to invest up to approximately JPY 3.2 billion in a build-to-rent residential project in Epping, in Sydney's Parramatta area. The investment brings together Kanden Realty Development Company, Cosmos Initia Co., Ltd. and Sydney-based Novus Holdings, led by CEO Adam Hirst, in a joint venture to develop and operate purpose-built rental housing in one of Greater Sydney's northwestern suburbs.

Project Overview: Novus on Forest in Epping, Parramatta

The development, known as Novus on Forest, is planned for a site of approximately 11,450 square metres at 2–16 Epping Road and 2–4 Forest Grove, Epping, NSW. The project calls for a 34-storey tower containing 204 apartments, with a reported development value of approximately A$200 million. The site sits roughly 200 metres from Epping train and Metro station, providing direct access to Sydney's broader rail network.

Under the joint venture structure, Novus Holdings serves as the Australian developer and sponsor, while Kanden Realty Development Company and Cosmos Initia Co., Ltd. participate as co-sponsors. JOIN provides public-sector-backed Japanese infrastructure investment support as a capital partner. Kanden Realty Development Company is headquartered in Osaka and led by President Emi Fukumoto; Cosmos Initia Co., Ltd. is headquartered in Tokyo and led by President Ryotaro Takachi.

JOIN said the project is expected to further support the expansion of Japanese companies' residential development business in Australia. The partnership combines Kanden Realty Development Company's expertise in residential development, property management and the use of solar-generated green electricity with Cosmos Initia Co., Ltd.'s experience developing and operating rental housing designed for diverse tenant needs. Novus Holdings contributes local development knowledge and market presence in Sydney.

Sydney's Rental Market Drives Build-To-Rent Demand

The Epping project is being developed against a backdrop of acute rental-housing scarcity across Greater Sydney. National rental listings were approximately 18% below their five-year average in the first quarter of 2026, with Sydney's available stock running 27.4% below its long-term average. The national vacancy rate stood at 1.6%, while Sydney's median rent reached A$824 per week, up 5.9% year over year. Separate market data placed Sydney's vacancy rate at 0.8% in March 2026, with median weekly rents of A$800 for houses and A$750 for units. Sydney living-sector vacancy was approximately 1.6% as of August 2026, with four-year rent growth of 11.4%.

Australia's build-to-rent sector has expanded in response to these conditions, supported by government policy initiatives that promote residential properties developed for long-term ownership and operation as rental housing. The national BTR pipeline has been estimated at approximately 51,000 apartments across operating, under-construction and planned projects, with a total estimated value of approximately A$40.1 billion. The sector held more than 5,000 apartments in 2024, with approximately 9,800 projected by 2028.

Epping's transit connectivity reinforces the site's suitability for a rental project. Proximity to the Epping train and Metro station supports access to Sydney's employment network and reduces dependence on private vehicles, factors that can strengthen a rental building's appeal to prospective tenants.

Strategic Alignment With Japan's Infrastructure Overseas Agenda

JOIN linked the Epping investment to Japan's Infrastructure System Overseas Promotion Strategy 2030, approved at the Ministerial Meeting on Strategy relating Infrastructure Export and Economic Cooperation on December 24, 2024. The strategy prioritizes infrastructure and urban-development projects that respond to partner-country needs while advancing the United Nations Sustainable Development Goals. JOIN specifically cited SDG 9, covering infrastructure development, and SDG 11, covering urban development, as goals the Epping project is expected to support.

The joint venture is structured to deliver rental housing with high environmental performance. Kanden Realty Development Company's experience utilizing green electricity generated from solar power is identified as a key component of the project's sustainability approach.

Market Context and Investment Considerations

Australia's institutional build-to-rent sector is moving from an emerging phase toward greater scale, with a growing pipeline increasing competition for well-located sites, construction capacity and institutional capital. Tight rental supply supports leasing prospects and rental growth, while high construction, financing and land costs can affect development feasibility. BTR assets are structured for long-term ownership and operation, allowing developers and capital partners to retain recurring rental income rather than selling units individually.

The joint venture's development of Novus on Forest is intended to contribute to meeting housing demand in the Greater Sydney metropolitan area by adding purpose-built, environmentally oriented rental supply to a market where available stock remains well below historical norms.

Sources

Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development — Official Announcement, September 24, 2026