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The global build-to-rent round up - 18 May 2021

The global buildtorent round up 18 May 2021

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

New Zealand & Australia

  • New Zealand: Overseas investment restrictions are an obstacle to getting large investors into the build-to-rent market in New Zealand. Many of these investors are experienced in developing these assets overseas however are prevented from investing. Full article here.
  • Auckland: 26Aroha in Sandringham is a small-scale build-to-rent complex with 13 apartments targeting a 9 Homestar rating. The project aimed to create a sustainable community, giving tenants an equal if not better living environment to owner occupied apartment options. Full article here.
  • Australia: Mirvac is increasing it’s build-to-rent pipeline from 2,200 to 5,00 in the medium term. The company has learnt a lot from its first development LIV Indigo, in Sydney’s Olympic Park which is now at 63% occupancy. Full article here.
  • Brisbane: Blackstone has purchased a vacant apartment tower in Brisbane’s Kangaroo Point for $100M which it plans to turn into a build-to-rent asset. The new 21-storey building had sat empty since completion in late 2019 due the owner not wanting to release the 200 apartments during the pandemic in 2020. The tower was sold due to high interest from large investors. Full article here.

Europe

  • UK: Grainger has added another build-to-rent development to its pipeline, taking the total unit pipeline to over 9,000. The firm is already a landlord over 9,000 units and through the pandemic has had strong rental collection at 98%. Occupancy had slipped to 89% from 90% in February because of pandemic related restrictions in the UK. Full article here.

North America

  • California: Real estate developer and property manager Tripalink, is expanding their managed apartment portfolio and is considering broadening their offering with co-living developments. Most of their properties have high-end amenities. The diversification of the residential portfolio allows for targeting developments towards different demographics. Full article here.
  • California: Blackstone has plans to acquire 66 multi-family communities in San Diego for US$1B. The portfolio features below-market-rate rents for low income renters and more the 5,800 units. Blackstone plans to spend $100M on renovations to the portfolio. Full article here.

Middle East

  • Dubai: Global co-living brand Vonder, is launching two co-living projects in Dubai with a combined 250 rooms. The developments both target digital nomads at both corporate and high-end levels of the market. Both buildings come fully furnished with 24.7 concierge services and access to the global community of ‘Vonderers’ through the Vonder app. Full article here.

Thought Leadership

  • “Build-to-rent, the hottest strategy for new investors”: The build-to-rent market in the UK is garnering growing interest from new investors largely due to the low capital investment needed to invest in a fund. Investors with little experience in the property market also benefit, as they don’t have the hassle of organising finance or management of the investment. In the UK build-to-rent investment is also incentivised through fee-free transactions when compared to traditional rental investments. Full article here.
  • “To drive resident satisfaction, the (BTR) product needs to be designed and tailored to the demographics”: A Tenant Satisfaction Summit was recently held in the UK looked at the product (the unit), brand (management) and customers service of build-to-rent assets. The role of technology was highlighted as a way to track and address the issues of tenants in real time, especially in large developments. 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 CBD

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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