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The global build-to-rent round up - 1 October 2021

NZ_AucklandCBD_StrategicAdvisory_The global buildtorent roundup  1 October 2021

A curation of news highlights from around the globe covering build-to-rent and specialised residential assets.

Australia & New Zealand

  • New Zealand: The Government tabled its tax change policies relating to ending interest deductibility on residential investment property this week. Exemptions to these changes will apply for ‘new build’ properties for 20 years after CCC is issued, for both an initial owner and any subsequent owners. Minister Megan Woods confirmed this exemption would apply to purpose-built rentals including build-to-rent properties. The Ministry of Housing and Urban Development has advised the Property Council of New Zealand that there will be further news regarding the build-to-rent sector specifically in November. The link takes you to the Supplementary Order Paper which covers a number of tax matters.  Full tax change amendment here.
  • Auckland: Kiwi Property will begin construction on a $221M, 295-unit build-to-rent development at Sylvia Park by the end of the year. Resource consent is in place and the targeted net yield is 4.5%. The company also has a 245-unit build-to-rent tower planned for LynnMall, also budgeted at $221M. which will incorporate office and retail spaces. Residents at both sites would have access to private gyms, co-working spaces, rooftop terraces and on-site maintenance with the Sylvia Park development targeting a Homestar rating of 7 to 8. Full article here.
  • Sydney: Plans have been lodged for a $145M, 230-apartment build-to-rent campus in Sydney’s Precinct 75 in the inner west. Home acquired the site in 2020 with a vision to redevelop the former industrial precinct to help address housing affordability in the city. Full article here.
  • Melbourne: An abandoned hotel on Melbourne’s St Kilda Road has been purchased by Aware Super for more than $70M with plans for a build-to-rent conversion. The 203-room hotel will be converted to more than 300 units to be rented as essential worker affordable housing. Full article here.
  • Australia: Investment platform Australian Unity is tipping a $30M equity raise to invest in its newly established specialise disability accommodation (SDA) fund. The fund has been seeded with 33 SDA apartments and five carers’ apartments to more than $50M in assets. Full article here.

Europe

  • UK: Co-living operator The Collective has failed to find a buyer for the business and has been placed into administration. The company has buildings in New York and London, with only two of these sites to stay open and operational. Full article here.
  • UK: The British Property Federation (BPF) has urged the British Government to exclude the build-to-rent sector from the draft legislation of the Residential Property Developer Tax. The Government already intends to exclude the purpose-built student accommodation sector. Full article here.
  • England: Diversified real estate investment managers Barings, has acquired the Trilogy Build-to-Rent scheme in Manchester from Moorfield Group for £53.5M. The Trilogy is income stabilised at 90% occupancy and has 232 build-to-rent units with 24-hour concierge services and resident amenities. Full article here.
  • Ireland: Puddenhill Property has been granted approval for a €235M, 590-unit build-to-rent development in north Dublin. The scheme had opposition from local residents and politicians due its size and 40% ratio of small one-bedroom units, however, was approved due to “an acceptable quantum and density of development in this accessible urban location”. Full article here.

Asia

  • Hong Kong: Dash Living has added a 24-room property in Kowloon to its 1,300+ room co-living portfolio. The property was formerly a hotel and now offers Dash Living’s fully serviced, all-inclusive lifestyle with two sizes of studio rooms. Full article here.

For more information or advice on build-to-rent or specialised residential projects, get in touch with Alan McMahon, National Director of Strategic Advisory at Colliers.

 


Related Experts

Alan McMahon

National Director | Strategic Advisory

Auckland

Alan has overall responsibility for Strategic Advisory for Colliers International in New Zealand. 

He advises a wide range of public and private sector organizations. Clients include Auckland Council,, Massey University, Kiwi Property, Ngai Tahu Property, Ngati Whatua Orakei, Ngati Whatua o Kaipara, NZ Super, and various departments of the New Zealand government including Police, MBIE, Ministry of Justice, and Kainga Ora.

 

 

 

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