The global build-to-rent round up, 05 October 2023

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

Australia

·???????? Melbourne: An $18.3M affordable build-to-rent project has been completed for not-for-profit housing provider Unison Housing in Melbourne’s north-east. The six-storey building comprises 42 apartments in mostly two-bedroom configurations and is designed to provide safe and secure accommodation for families. The project was funded as part of the Victorian Government’s $5.3B Big Housing Build to provide more social and affordable housing to people in need across the state. Full article here.

·???????? Brisbane: An affordable build-to-rent project planned by the site’s owner, Gallery Group, and one of Australia’s largest non-government social housing providers, Home in Place, will provide 120 apartments opposite the new Roma Street Cross River Rail station. Plans shows a 25-storey tower is proposed for the 438 sqm site which would offer apartments with rents capped at 75 to 80% of market rates. Full article here.

·???????? Sydney: Investa have filed plans to convert North Sydney’s first commercial tower, the MLC Building, into a build-to-rent development with 340 apartments and 2,500 sqm of retail space. Investa had planned to demolish the now heritage listed building built in 1957 and replace it with a $500M office block. The new plans would convert the office space but retain the existing squash courts and provide rooftop access for recreational use, including a gym. Full article here.

·???????? Adelaide: Sydney-based developer new Urban Villages and the Australian Education Union have filed joint plans for a build-to-rent development specifically designed to deliver housing to the union’s members. The development, which would become one of the first build-to-rent schemes in Adelaide, would comprise 224 apartments in a work-live-play hub. The apartments would be a mix of studio, one-, and two-bedroom configurations with a dog wash, pool, gym, and co-working space for residents use. Full article here.

·???????? Co-living: New York-listed PGIM has secured seed assets in Brisbane’s Fortitude Valley and Sydney’s Paramatta which will be turned into 300 smaller scale apartments worth $300M. The global portfolio manager is looking to create a $750M (AUD) co-living portfolio across the two cities with up to 1,500 apartments. The two seed developments will be constructed using modular technology in partnership with the modular hotel chain, Tribe. Full article here.

Europe

·???????? Netherlands: Greystar has purchased a development site in Bogaard city centre in Rijswijk for a 407-unit build-to-rent scheme called The Orchard I. Apartments in the scheme will range from 45 to 120 sqm with 400 sqm of communal amenity, a retail square and bicycle parking. There are also over 200 car parks, with around half designated for use by the neighbouring development, a 75-unit build-to-rent development. The neighbouring building, The Orchard II, was purchased by MN Dutch Real Estate on behalf of PMT. Full article here. ?

·???????? England: Developer and residential real estate manager, Watkin Jones, has completed a 113-bed co-living scheme in Exeter. The forward-funded scheme was sold to Ropemaker Properties, the real estate arm of BP’s pension fund. The development has a focus on community living with amenities including a gym, shared laundry facilities, co-working space, cinema room, games room and courtyard space. Full article here.

·???????? Private investment: Yaun Sun, Head of UK at RE Capital has said that the build-to-rent sector should embrace private capital just as much as institutional capital to build more rental homes in the UK amid a supply shortage. Sun says private capital like that from high-net-worth-individuals and family offices should be increasing to take advantage of the demand for quality rental housing which can play a big part in de-risking investment portfolios due to the fundamental nature of housing. Full article here.

North America

·???????? Single-family build-to-rent: Greystar is continuing to expand its investment in the single-family sub sector of the build-to-rent market in the US. The single-family market is targeted at families, looking for more space than that of an apartment, being typically low to medium density housing types in suburban settings. Greystar aims to serve renters across all stages of life, from student accommodation, traditional build-to-rent (apartment types), key worker/essential housing, single-family rentals, to active adult housing. Full article here.

For information, advice, and opportunities in the build-to-rent, co-living, and specialised residential asset classes, get in touch with Colliers Strategic Advisory’s National Director, Alan McMahon, or Senior Analyst, Will Silk.

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