Gurner goes capital light as apartments take off

The top end developer has tapped a former Credit Suisse banker to head a renewed push into funds, aiming ‘to be the partner of choice’ as a booming population draws global investment.

Tycoon Tim Gurner is forging deeper into funds management as his operation looks to build on its existing $5bn-plus asset empire and win more heavyweight backers to chase opportunities thrown up by the funding squeeze.

The move to a “capital light” model will also help the company capitalise on the renewed interest among big institutions and wealthy families keen to invest in residential property development.

Gurner Group has just appointed its first chief investment officer, picking up an ex-investment banker experienced in mergers and fundraising.

Senior property executive Rahul Bharara will step into the role, joining Gurner after a nine-year career at Credit Suisse, where he headed Australian real estate coverage.

Now entering its 10th year, the private development, design and lifestyle business has an overall $10bn portfolio across six units, spanning wellness, hospitality, design, property management, funds management and build to rent and build to sell development.

Rich-lister property developer Tim Gurner is pushing Gurner Group’s capital-light investment strategy. Picture: Aaron Francis/The Australian

Mr Gurner said the appointment reflected a shift to less capital expenditure and more leverage of the brand’s expertise in design, management and delivery.

“As the Gurner Group continues to evolve into an operator, manager, developer and capital light developer of city-defining projects, Rahul’s experience and impressive track record around working with diverse capital and property groups is invaluable during our next phase of growth,” he said.

“Our ability to design and deliver an incredible product has resulted in attractive returns for our partners and investors, with global capital recognising the unique ability we have to curate residences unlike anything available on the market.”

A recent case in point is Gurner’s high-end private $150m health, wellness and anti-ageing chain launched late last year. About 10 Saint Haven outlets are planned across Australia over the next three to four years, with the first set to open in Collingwood, Melbourne, in March.

Another focus of the company is its build-to-rent and build-to-sell, hotels and living sector.

Mr Gurner said the company was “aiming to be the partner of choice” in that space, particularly as booming migration and population growth draw global capital investment to the residential market.

Gurner last week announced another $2bn for its GQ Build-to-Rent platform with real estate investment manager Qualitas.

Luxury developer Tim Gurner has teamed up with Qualitas to deliver 385 build-to-rent apartments in Parramatta. Picture: Supplied

This second fund comes after the platform initially secured $1.2bn in ­assets for its first fund, comprising a portfolio of four apartment blocks across Sydney and Melbourne.

Two apartment buildings in St Kilda and Southbank in Melbourne are currently under construction, with 297 and 394 residences planned.

Construction on a block of 391 apartments in Parramatta, Sydney, will kick off in coming months, while demolition of an inner north Melbourne site promising 333 apartments will occur early this year.

The $3.2bn in the GQ portfolio put Gurner on track for their plan to have more than 5000 apartments across Sydney, Melbourne and Brisbane in that fund by 2026.

Mr Bharara said he was looking forward to the opportunity to develop Gurner’s pipeline of projects as Australia’s property market shifted post-pandemic.

“It is an exciting time to be joining Gurner Group; a company with a multi-billion dollar national pipeline of accommodation focused real estate product in a supply constrained market.”