- Policy: The legislation to enable more build-to-rent development passed it’s third, and final, reading in Parliament. This reinstates interest deductibility for build-to-rent assets in perpetuity and creates the formal build-to-rent asset class definition in the Income Tax Act 2007. Full media release here.
- “Build-to-rent is about more than housing”: Colliers Australia National Director of Build-to-Rent, Robert Papaleo, has said Australia’s emerging build-to-rent market is creating a tradable asset class that could become large enough to attract global institutions within a decade. “Australia’s pipeline of completions is unlikely to rise much over 3000 as far out as 2026, but by the time it reaches the level of about 10,000 per year it would be mature enough to join a global pool of build-to-rent assets sought by institutional investors”. Full article here.
- Policy: The Queensland Government has announced tax concessions to drive investment in the build-to-rent sector. These include cutting land tax in half for build-to-rent development that include affordable housing and a full exemption for the 2% foreign investor land tax for up to 20 years and a full exemption for the Additional Foreign Acquirer Duty for future transfers of build-to-rent assets. Full media release here.
- Brand expansion: Ascott, the largest serviced residence provider in Australia (with brands including Quest, Citadines, and Oakwood) announced it will be growing their co-living brand, lyf, across the country. Following the opening of lyf Collingwood Melbourne in May 2022, the company saw a successful uptake in occupancy and has plans for lyf Bondi Junction Sydney to open in 2024. Further expansion plans are expected for Adelaide, Brisbane, Hobart, Melbourne and Perth. Full article here.
- Adelaide: US housing giant, Sentinel, is set to develop the first institutional grade build-to-rent development in Adelaide with a $100M project. The development will comprise 250 premium and sustainable rental apartments and will be self-managed under the company’s Kinleaf platform. Full article here.
- Brisbane: Local developer, KDL Property Group, has said Queensland’s build-to-rent model could permanently solve chronic rental shortfalls not just in the inner city but across the state if applied right. The developer, who is currently developing four suburban build-to-sell communities, says that they have land that could be allocated to the build-to-rent model and could provide affordable housing to many that need it. Full article here.
- Melbourne: Salta Properties has received approval for a 473-unit build-to-rent development in the Yarra riverfront on the city fringe. The development will comprise six building up to eight stories in height and be located adjacent to the Victoria Gardens shopping centre. The development, over 2 ha, will have 6,000 sqm of open space with a variety of shared spaces including dining rooms, co-working spaces, pool, gym and wellness centre. Basement parking will also provide 200 car parks and 500 bicycle spaces. Full article here.
- Sydney: Business tycoon John Kahlbetzer’s Tynam Investments has put forward concept plans for a build-to-rent development in St Leonards, Sydney. Development arm Jemalong Property Group originally had plans for a 32-storey build-to-sell building on the site but abandoned that in favour of new plans for a 28-storey build-to-rent development comprising 276 units with some commercial and retail space on the lower floors. Full article here.
- UK: Australian superannuation fund, Aware Super, has entered the UK’s build-to-rent market with the purchase of Qatari Diar’s 22% stake in Get Living PLC, the developer and operator of large scale built-to-rent neighbourhoods. Get Living was established in 2013 to operate 1,500 homes in the former Olympic Village in Stratford, England which was the first large scale scheme in the UK. Get Living currently has a ￡3B portfolio of 4,000 operation homes and 6,500 in the pipeline. Full article here.
- England: Precede Capital Partners, a real estate development lending platform, has provided a ￡188M loan facility to the joint venture between Apache Capital, Harrison Street, and NFU Mutual for the delivery of Moda Living’s Great Charles Street build-to-rent development in Birmingham. The debt forms part of the overall funding package for the development with equity from the joint venture in the largest regional build-to-rent funding deal completed in the UK. Full article here.
- England: CompassRock International has acquired PATRIZIA’s operational build-to-rent scheme, Bow Square, in Southampton. The 279-apartment development has amenities including a resident’s lounge, meeting room, a fully equipped gym, yoga studio and garden. It was completed over three stages between 2017 and 2018 and has nearly 100% occupancy. Full article here.
- Japan: CapitaLand Investment has entered into a forward purchase agreement to acquire six build-to-rent assets in Osaka, Japan at the purchase price of SGD$141M for its CapitaLand Open End Real Estate Fund (Coref). The six assets comprise 428 one-bedroom apartments and will be the fund’s first build-to-rent assets with completion between May 2023 and June 2024. Full article here.
- Hong Kong: Hines has announced the opening of Dash Living on Prat, a co-living development in Tsim Sha Tsui, Hong Kong. The property was formerly a 158-key hotel that was purchased in 2021 by Hines’s Pan-Asia fund in partnership with MindWorks Properties, a Hong Kong based real estate and technology firm. The former hotel was significantly renovated to feature design, amenities, and community lifestyle targeted at young professionals. Full article here.
