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Kiwi Property Gives Green Light to Build-To-Rent09/20/2021 | 04:31pm
Kiwi Property announced it is moving ahead with the construction of New Zealand's first major build-to-rent development, marking an important milestone in the delivery of the company's mixed-use strategy. The 295 apartment complex will be located at Sylvia Park in Auckland, accelerating the site's evolution into an integrated retail, office and residential community. Build-to-rent accommodation is developed, owned and managed by institutional landlords, specifically for long-term rental. Featuring a combination of studio, one, two and three bedroom apartments, the Sylvia Park build-to-rent development will offer residents the security of long-term tenure, coupled with quality amenities, resident services and curated events. Enabling works are already underway at the Lynton Road site, with construction set to commence in late 2021 and renting to begin in early 2024. The $221 million development will target a stabilised net yield of approximately 4.5%, and a 10 year property internal rate of return of over 8.0%. The project will be debt funded, pending the outcome of the process to sell The Plaza and Northlands, which is currently underway. Kiwi Property's ability to develop build-to-rent on its own sites enables the company to mitigate upfront costs and drive more attractive returns. In addition, by leveraging the asset management, security and maintenance platforms already in place at its mixed- use assets, Kiwi Property is able to unlock greater operational efficiency and economies of scale.
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