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The global build-to-rent round up - 27 October 2021

NZAucklandCBDStrategicAdvisoryThe global buildtorent round up 27 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 Property Council of New Zealand has estimated that 25,000 build-to-rent units could be brought to the market in the next 10 years if legislative barriers for investors were removed. Reclassification of build-to-rent as a commercial asset class, rather than residential, would change how depreciation was applied, and have other tax implications, and provide an incentive for development. This seems logical given that purpose-built student accommodation and aged care property is effectively treated as commercial. The Overseas Investment Act also currently disincentivises institutional investment in build-to-rent, as it restricts liquidity. Full article here.
  • New Zealand: Further to previous announcements from Kiwi Property on its build-to-rent projects at Sylvia Park and LynnMall shopping centres the company has said it has been driven to the build-to-rent sector not for high initial net yields, but in the expectation that residential rents will rise faster than commercial rents. Kiwi expects to see a net yield of 4.5% for its build-to-rent at Sylvia Park, not inclusive of the land value, significantly lower than the 5.5% net yield on the construction completed at Sylvia Park last year. Full article here.
  • Australia: Landream’s plans to enter the build-to-rent market in Melbourne are nearing fruition, with a 41-storey tower near the QVM, originally slated as a build-to-sell project, approved by the City of Melbourne. The $105M development will offer 267 apartments retail and office space, as well as a basketball court. Full article here.

Europe

  • UK: Glen Howells Architects have unveiled plans for a 1,300-unit build-to-rent development in Birmingham called Warners Field. The project would be part of the first phase of the Birmingham Council’s urban regeneration vision for the Rea Valley Urban Quarter in the centre city with 50% of the site devoted to green and pedestrian spaces. Full article here.
  • UK: Build-to-rent developer and operator Grainger has opened its newest development, The Headline in Leeds and leased 95% of the 242 apartments in just two months. The development offers one- and two-bedroom apartments with a full suite of amenities including shared and private living spaces, gym, wellness studio, co-working space, and a rooftop terrace. Full article here.
  • UK: Aberdeen Standard Investments have partnered with Square Mile Farms to install a vertical hydroponic farm at their build-to-rent development The Hub in Harrow. The farm allows residents to live more sustainably, access fresh produce more readily and creates a platform for community engagement within the building. Full article here.

North America

  • US: Greystar has broken ground on its first build-to-rent development in Chicago in the city’s Downtown Fulton Market neighbourhood. The development will offer 223 apartments in a range of sizes from studio to three-bedroom configurations and a third-floor amenity level with pool, lawn, lounge, fitness, and co-working spaces. Full article here.
  • US: The Healthy Homes Foundation has purchased the historic Barclay Hotel in Los Angeles to repurpose as housing for extremely-low-income and homeless individuals. The adaptive reuse project of the 1896 building will be the Foundation’s eleventh project since its launch in 2017. Full article here.
  • US: Shopping centres in Florida are increasingly being redeveloped into residential rental housing, reflecting high demand for rental housing and a struggling retail sector. A Houston-based developer is about to redevelop a former suburban centre into a 356-apartment development, saying the size and location of these types of centres provide the space for intensive development with amenities. 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.

 


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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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