US-based developer and investor Hines and Canadian pension fund Cadillac Fairview have formed a partnership to develop and acquire up to $1.5 billion of assets in Australia’s emerging build-to-rent sector, even without relief from the higher withholding tax levied on foreign investors.

Hines has already acquired three sites with the potential for 850 BTR units in Melbourne which will become seed assets for the 2000-plus-unit fund started by privately owned Hines and Cadillac Fairview, the real estate arm of the Ontario Teachers’ Pension Plan.