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The global build-to-rent round up - 9 February 2021

NZAucklandCBDStrategicAdvisoryThe global buildtorent round up 09 February 2021

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

New Zealand & Australia

  • Melbourne: Mirvac’s $1B mixed-use development project in Northbank has been approved. The project will have a 20-storey office tower and a 32-storey pure build-to-rent tower with 472 apartments. The inclusion of build-to-rent under the company’s LIV brand was reflective of changes in the Melbourne market. Full article here.
  • Melbourne: Developer, Assemble Communities has paid $30M for a site in suburban Melbourne’s Kensington. The pure build-to-rent development on a former industrial site, will have 400 units offered but affordably in the social market and commercially at market. Full article here.

Europe

  • UK: Ascend Properties has forecast build-to-rent completions to double by 2025 in the UK. 2019 saw a peak of 12,669 build-to-rent completions, up 54% on 2018. In 2020 only 10,158 units were completed with the impact of the pandemic. In 2025 there are estimated to be over 125,000 build-to-rent units in the UK. Full article here.
  • London: A study of ten London, build-to-rent buildings has shown that young renters, between the age of 25-34 years old represent 62% of renters in these developments. This compares to 47% in the private rental sector. The most common household type was sharers, or flatmates at 38%. Full article here.
  • Glasgow: Robertson Construction has signed a £78M deal to deliver Moda Living’s first build-to-rent development in Glasgow. The Holland Park scheme will have 433 apartments over four blocks ranging in height from 8- to 14-storeys each. Full article here.

North America

  • New York: Multi-family transactions drove commercial transaction volume in New York City in 2020, accounting for 391 of the 1,251 total transactions. Total transaction volumes were down 30% year-on-year with multi-family also down 19% in sales volumes. Full article here.
  • New Jersey: A 641-unit multi-family portfolio has sold for $72M. The portfolio spanning many suburbs consists of 1950’s low-rise apartment buildings with a mix of studio and one, two- and three-bedroom apartments. The portfolio is well positioned for mid-term value-add repositioning. Full article here.
  • US: Co-living has boomed in the US during the pandemic, when expectations were that the sector would be hard hit, due to social-distancing measures and close quarter living. New York experienced a 35% drop in enquiries for co-living spaces in March 2020 however a lower percentage pf people living in co-living spaces left the city, compared to private rentals. There are currently 7,8000 co-living beds in the US with 54,350 beds currently in the pipeline. Full article here.

South America

  • Brazil: Cyrela Brazil Realty, have announced a partnership with Canadian Pension Plan Investment Board, Greystar and developer SKR to develop, own and operate a 220-unit build-to-rent project in São Paulo. The purpose-built development is expected to be open in 2023 and host amenities such as co-working lounges, rooftop pool and gym areas. 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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