Build-to-rent ‘treasure trove’
Three buildings featuring 96 new apartments are generating interest among investors amid more preferable treatment for build-to-rent (BTR) housing and a widening gap between the country’s housing supply and demand.
Buildings A, B and C at 148-162 McLeod Rd occupy 3334sq m of freehold land in Te Atatu¯, a West Auckland growth node experiencing a high degree of urban redevelopment.
Bayleys metropolitan markets investment sales director Tommy Zhang says the assets present a unique opportunity for an investor or syndicate to enter the BTR market at scale by acquiring one or all three blocks, which are due for completion next month.
“While purpose-built BTR concepts are a new form of housing in New Zealand, the asset class has proven extremely popular in the US and has a rapidly growing market in the UK and Australia. Typically consisting of medium-to-large-scale housing estates within walking distance of key transport links, they tend to be professionally managed and offer long-term leases to tenants.
“This is particularly valuable given the current strain on existing rental supply, multi-decade high population growth, and a slowing building and construction pipeline.
“Challenges in supplying affordable housing at scale and pace have prompted the new government to voice support for the BTR housing model, with pro-active legislation for the sector forming part of its 100 Day Plan.”
Zhang is marketing the complex as one or three separate parcels with Bayleys colleagues Layne Harwood and Ian Hall. The opportunity is offered by tender closing 4pm, Wednesday April 24, unless sold prior.
The units are part of the wider McLeod Green development, which includes another 60 terraced houses sold separately to owner-occupiers and investors.
Hall says the five-storey apartment buildings at the centre of the development have a similar design and layout, featuring a combined gross floor area of 6160sq m. Each of Buildings A, B and C accommodates 32 twobedroom apartments ranging from 50-53sq m with carparking on grade and at basement level.
There are 69 covered and 27 open carparks with central lift access to each block.
Units are available with vacant possession, presenting a new owner with the flexibility to tailor their rental strategy.
Harwood says this might entail crafting distinct tenancy agreements, implementing comprehensive property leases, arranging separate management contracts or exploring collaboration with community housing providers.