Plenary has launched a new wholly-owned subsidiary called Pariter that will invest in local community infrastructure in Australia.
Pariter will be headed by chief executive John Innes and will partner with community associations, organisations and clubs across Australia to improve facilities and deliver developments that unlock value which can be reinvested into core facilities.
“Community infrastructure is a unique sector with a lot of opportunities. We see an opportunity with strong potential for growth in regenerating community assets and creating long-term partnerships and value,” Innes told Infrastructure Investor.
Pariter declined to comment on what size of projects it would pursue, but Innes said the firm was “very confident” about the potential size of the opportunity and believed it would prove attractive to investors.
Plenary is known for its investments in public-private partnerships and Pariter’s investments will resemble these.
“It is very much a horses for courses approach, but we’re taking a long-term view on suitable projects, of 20 years, or 30 years-plus. That’s what we see as one of our biggest advantages compared to some of the more traditional development models where investors look to sell as soon as possible,” Innes said.
Plenary will provide all the equity funding for Pariter’s projects, with senior debt for the deals to be accessed through Plenary’s traditional tier one lending relationships.
Pariter’s first project is Heathcote Grounds in the Sutherland Shire in Sydney’s south. The firm will fund the restoration of the heritage-listed Heathcote Hall and the development of low-rise townhouses and apartments on the site.
“We have a strong pipeline of projects we are currently working on and are confident of sustainable growth. We will be in a position to make announcements on specific projects shortly,” Innes said.
Pariter’s team consists of five people, including Innes, and the firm is looking to hire a senior development manager. It will share support services with Plenary and will receive project resource support when required.