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The global build to rent round up - 16 June 2021

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

New Zealand & Australia

  • New Zealand: Du Val Group has raised $35M for its first Build-to-Rent Fund from investors and a term debt facility. The fund has two existing assets in Auckland with 171 apartments. The target is to grow the fund to over $300M in the next ten years. Full article here.
  • Auckland: Grey Lynn’s cooperative housing scheme, Cohaus is almost completed, with a mixture of self-contained apartments and townhouses with shared communal spaces at an average cost of around $800,000 per unit. The development will house around 50 people, with shared electric cars, bikes, gardens, and guest rooms. Full article here.
  • Australia: Oxford Properties has announced its first two build-to-rent developments in its 5,000 unit institutional-grade asset pipeline. The first, a 234-unit apartment development new a new transit station in Sydney and the second, a 702-unit project in Melbourne’s inner suburbs. Both are underway and due for completion in the next three years. Full article here.
  • Sydney: Experts in the commercial property investment sector in Sydney have claimed that the numbers don’t stack up for build-to-rent in the Sydney CBD, without the assistance of the NSW Government. While tax breaks have already been approved for developers and overseas investors, securing land in the CBD is still an issue when costs often exceed build-to-sell developments. Full article here.  

Europe

  • UK: Moda Living has increased its annual revenue turnover by 36% year-on-year and boosted operating profit as it continues to develop more sites as part of its plan to deliver 7,500 build-to-rent units. Full article here.
  • UK: Offsite Solutions has developed a range of bathroom pods, specifically designed for the build-to-rent sector. In a UK first, the floorless pods can fit directly onto the slab, allowing for continuous floor level throughout and a higher quality aesthetic finish. Over the lifetime of the pods a reduction is operating costs is expected at 50% less than bathrooms built in-situ. Full article here.
  • LondonGreystar has acquired a new site in London, subject to planning, for a build-to-rent development with high-levels of amenity in London’s Battersea. The site was purchased for £31M with a plan for 500 units and ancillary commercial space. Full article here.

North America

  • New York City: Belgium-based co-living provider Cohabs is looking to expand in New York after a USD$70M capital raise. The company is looking for small vacant buildings across the city which could be transformed into co-living facilities that feature between 10 and 30 bedrooms. Full article here.
  • Minneapolis: Build-to-rent (multifamily) operator Bigos Management has highlighted active and excellent service as being one of the key drivers in retaining tenants though the pandemic. Service allowed for a more highly tailored sales experience, giving people the confidence to rent during uncertain times. Full article here.

Thought Leadership

  • “IRD consultation on interest deductibility is open”Last Thursday, the Government announced its consultation process is underway on new tax rules. There is a specific question for submitters the Government is seeking feedback on, around issues that relate to new build exemptions and the impact on the purpose-built rental sector. Thanks to the Property Council (PCNZ) for keeping us informed and co-ordinating a submission.
  • “Co-space is here to stay” A design guide by Amy Frearson called All Together Now showcases shared living spaces from multi-generational housing to alternative models of student living with detailed cases studies of all shapes and sizes. Frearson says co-living offers very real solution to the problems of rising property prices and chronic loneliness.

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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