THE COMING AUSTRALIAN PHENOMENON: "BUILD TO RENT"

Build to Rent (BTR) has been a hot topic in global real estate circles for the last few years.

In the UK an increasing number of projects have come to market in recent years so the UK Build to Rent is no longer restricted to industry insiders.

Many tenants are now living in these buildings, and the entire asset class is starting to become the focus of the real estate industry.

Build to Rent tenants appear to come in a variety of demographics. According to The Times, university leavers and young professionals are being joined by older “tactical renters” who choose to rent for a variety of reasons.

Build to Rent may be a growing global phenomenon but it’s still very new in Australia.

The concept was thrust into the spotlight in 2019 as a part of the 2019 federal election campaign when Labour proposed taxation reforms for build to rent in Australia. 

Since then, the term has started to become more reported in mainstream media in Australia, with private real estate funds, developers, industry superannuation funds, global Sovereign Funds and Sovereign Pension Funds all declaring their interest in the new housing asset class. 

St Regis Hotel Shelved as Mirvac Grows Build-to-Rent Portfolio

June 2020

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As Australia looks to construction to help rebuild the economy post-Covid-19, developer Mirvac continues to grow its Melbourne office and build-to-rent pipeline, revising plans for a $1 billion complex on the site of the former Melbourne Convention Centre.

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Oxford Lodges Build-to-Rent Plans for Pitt Street Skyscraper

June 2020

▲ Oxford Properties plans for its south building over station development on Pitt Street.

Oxford Properties has lodged a development application for a 39-storey, build-to-rent residential tower, the first of two towers for the Sydney Metro Pitt Street over-station development.

The project marks the first large scale build-to-rent residential tower for Sydney CBD, and will comprise 234 apartments.

Oxford Properties' Alec Harper says Australia’s evolving residential market, in response to housing affordability, population growth and changing sentiment to home ownership is driving demand for the emerging asset class in urban centres.

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BTR Could recover quicker Than any other property type, while offering a safe haven for investors.

June  2020  - It’s a case of hindsight in 2020 – thanks to income supplement schemes and social welfare, the rental income from multifamily/build-to-rent assets has been more stable than rental income from commercial/industrial assets. In this episode, we breakdown the build-to-rent market, discuss the impact COVID-19 has had on this asset class and how it could recover quicker than any other property type, while offering a safe haven for investors. CBRE PODCAST:

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Vellum Funds Management is partnering with Urban Property Group to launch a $1 billion fund to develop build-to-rent properties

October 2020 - The companies this week launched The Places Build to Rent Fund, inviting investors to participate in a $132 million capital raising that has attracted $66 million in pre-commitments.

Australian Groups Move on $1 Billion Big Apple Build to Rent Market

22 September 2020 - Developer Lendlease has partnered with Aware Super, the rebranded First State Super, to launch its first major urban regeneration project in New York.

The Australian groups, which have partnered previously on a residential projects across the US, have secured a prominent waterfront site in Brooklyn, and will now move ahead with plans for a $1 billion build-to-rent project.

Mirvac signals new era in housing choice with official opening of build to rent community LIV Indigo

19 August 2020-After leading Australia’s push into the build to rent sector, Mirvac today signalled a new era in housing choice with the official opening of LIV Indigo at Sydney Olympic Park, the first residential community in NSW designed and built exclusively for renters. 

Build-to-rent: The new model of property ownership promising more security and comfort

11 August, 2020- There’s a long list of common rental gripes, from not being allowed to paint the walls to having to haggle about keeping pets or hanging paintings. And if the owner wants to move back in or sell the place? Start packing your boxes.

Mirvac pivot prompts build-to-rent boom

16 May, 2020 — Diversified developer Mirvac is bolstering its Melbourne office and build-to-rent pipeline, submitting fresh plans for two large towers on a key city-grid corner site.

Australia’s build-to-rent is coming of age and it’s green

20 August 2020- NSW Minister for planning and public spaces Rob Stokes and Mirvac chief executive office & managing director Susan Lloyd-Hurwitz at the opening of Mirvac’s first build-to-rent development LIV Indigo at Sydney’s Olympic Park.

Building the case for build-to-rent

28 July, 2020 -Build-to-rent rewards good design, can create jobs and elevate health and safety standards in a post-pandemic economy, says Stantec’s principal John Lucchetti.

Build-to-rent growth spurt ahead

11 August, 2020 - A weight of capital is looking to enter Australia’s build-to-rent market, says Savills, as fresh research suggests BTR will follow the UK’s growth trajectory where 8,000 units were delivered over five years.

Build-to-Rent Property: The Future-Proof Home & Investment

3 August, 2020 - Select Property Group Managing Director, Adam Price, looks at tenant priorities post-lockdown and why build-to-rent could now be in-demand more than ever. A chance to work out what they value most from a home. Build to Rent was already the strongest residential proposition in the UK.

Plenty of potential for build-to-rent but support needed.

A CBRE analysis showed that Australia ranks among the top five markets around the world with the best BTR potential when all the investment fundamentals were taken into account.

Australian Build-to-Rent Potential On Par With A$18bn UK Boom

New residential development sectors are gaining traction in Australia, with completed co-living units up by 46 per cent and build-to-rent up 38 per cent during the past 12 months.

Build-to-rent boost 

4 August, 2020 -The NSW Government’s package of measures for the build-to-rent sector, including a 50 per cent land tax cut for 20 years, will boost supply and choice, says the Property Council.

AustralianSuper invests in affordable build-to-rent developer

3 August, 2020-Australia’s biggest super fund has invested in the evolving BTR sector which it says could help fill Australia’s critical affordable housing shortage.

Build-to-rent on the cusp of exponential growth

2 August, 2020- Australia's BTR sector has crossed a landmark threshold of 11,000 units during the past 12 months, with 10,000 more in due diligence, with investors favouring assets delivering reliable income streams amid the coronavirus pandemic, a CBRE report says.

Mirvac & Milieu collaborate in Build-to-Rent community

 July 2020- Mirvac and Milieu have announced Albert Fields, a one hectare Build-to-Rent urban precinct in Brunswick, Melbourne, scheduled for completion in late 2024 that will provide the flexibility of renting with the security typically associated with home ownership.

Lone Star And Quintain Seek £1B Partner For Wembley PRS

27 July 2020- Lone Star is looking to bring in a funding partner on a £1B slug of the Wembley Park private-rented residential scheme being built by Quintain, the developer it owns.

BTR Could Be Poised For A £1B Quarter

10 July 2020- The build-to-rent sector could be about to see a big spike in investment volumes, following a sharp drop brought about by the coronavirus pandemic. 

NSW Pioneers Build-to-Rent in Redfern

6 July, 2020 -   New South Wales will be the first state to fund a dedicated build-to-rent model, Minister for Social Housing Pru Goward revealed on Friday. The minister revealed that a Communities Plus housing site in Redfern would be home to the nation’s first ever build-to-rent housing model.

Build to Rent: what’s in a name? 

June 2020: We have a very long way to go with BTR in NZ, but, irrespective, the potential is certainly very exciting indeed JLL’s research team, based in Auckland, New Zealand.

Big Institution In Advanced Talks To Buy £850M Dolphin Square In PRS Megadeal

22 June 2020- French investment giant AXA Investment Managers - Real Assets is in advanced talks to buy the famous 1M SF Dolphin Square apartment block for around £850M, in what would be by far the largest ever deal for a single UK rented residential asset.

AUSTRALIA'S LARGEST SUPERANNUATION FUNDS MOVES ON BUILD TO RENT

June 2020-  More than two years in the making, the deal is a show of institutional confidence in the viability of the local build-to-rent sector-previously overlooked for the higher yields of commercial office or traditional build-to-sell markets.

NSW push to boost Build to Rent housing

8 June 2020 -As tenants move into the first commercial development in Sydney, Australia this month, the New South Wales (NSW) government will consider land tax changes that encourage the fledgling Build to Rent.

Accelerating build-to-rent in Australia - Allens

If these challenges are addressed, build-to-rent assets can provide steady income for investors, improve housing affordability in Australia, and give tenants.

‘This Could Be BTR’s Moment To Make Its Case’

27 May 2020- You don’t really know how resilient a new sector is until it has been through a recession. In that sense, UK build to rent is undergoing trial by fire. The sector is well-positioned to outperform other areas of real estate, according to a panel of experts.

Mirvac buys build-to-rent site for $200m

Dec 24, 2019 –  Mirvac will continue its revolution of the apartment sector with plans to put up a build-to-rent apartment tower at the former Melbourne Convention Centre site in Spencer Street which it snapped up for $200 million on Christmas Eve. 

Accelerating Growth in Australia’s Build-to-Rent Market

Coinciding with shifts in international investment markets, a developing demographic profile and residential consumer sentiment have combined to enhance the prospects for the emergence of a build-to-rent sector in Australia.

It Is Not Developers Who Are Driving Quality In BTR, It Is Investors

20 September 2019- Although the UK’s build-to-rent sector is still considered to be in its infancy, it has grown rapidly across the country. In the first half of 2019, £1.4B of institutional investment poured into the sector, according to CBRE’s UK Residential Investment Marketview, which is 20% higher than H1 2018. Growth is expected to increase in pace even more over the next five years.

Grainger Update Highlights Resilience Of Rented Residential London

April, 2020 - There is little data available to highlight how the nascent institutional private rented sector is faring in the face of the coronavirus. But a trading update by listed landlord Grainger indicates the sector is proving resilient so far, especially compared to other areas like retail and leisure.

BTR Investment Disappointed In 2019, But 2020 Is Off To A £1.5B Flyer

15 January 2020- Transaction volumes in the build-to-rent sector dropped 22% in 2019, according to new data, but 2020 is already off to a strong start.

Build to Rent | Ashurst

16 December, 2019 - Build-to-rent (BTR) is an innovative and exciting opportunity for the Australian property sector. It is no secret that the country's rental market demand is...

Build-to-rent (BTR) - an investment model to watch, South Africa

Accelerating Growth in Australia’s Build-to-Rent Market

Coinciding with shifts in international investment markets, a developing demographic profile and residential consumer sentiment have combined to enhance the prospects for the emergence of a build-to-rent sector in Australia.

A Rare Glimpse At The Financials OF BTR Giant Quintain

23 October 2019- Just over four years ago, Lone Star paid a bit more than £1B for listed developer Quintain, and installed European co-head Angus Dodd as chief executive.

The Future Of BTR Goes Beyond City Centre Apartments, Say Investors

25 September 2019- Although the UK’s build-to-rent (BTR) sector is still considered new, it has already evolved. Both investor and societal pressures are pushing the model to adapt, to create the homes that customers want and to provide them in a way that suits our changing ways of living.

Cortland Continues UK BTR Expansion With LIV Group Buy

5 August 2019- U.S. investor and developer Cortland Partners has continued its assault on the UK build-to-rent market with the purchase of specialist operator and consultancy firm LIV Group.

Record Year So Far For BTR Investment

22 July 2019- Investment in the UK build-to-rent sector slowed in the second quarter of 2019, according to new data from CBRE. And yet, the first half still set a record for investment in the growing sector.

Can BTR Continue Its Record-Breaking Run?

10 June 2019- The build-to-rent sector is on a roll. The first quarter of this year saw a record £1B invested in the sector, according to CBRE, and a 34% increase in the number of units completed, according to Savills.