MIRVAC LAUNCHES BUILD-TO-RENT WITH FIRST INVESTOR, CLEAN ENERGY FINANCE CORP
The developer lobby pulled off the biggest STING ever with the 100% sell-off of “new homes” to foreign buyers locking out Australian First Home Buyers … not only were they outbid, but with the overseas buyers lured by “Permanent Residency” following investment in education or our Real Estate the sell-off escalated …
Thus overseas buyers appear to be gaining ownership of once where Australians lived!
In response MIRVAC circulates the mythology … that renting has become “a lifestyle” … a choice for a much wider group of people … who want to be closer to work …
That build-to-rent can provide renters with:
-better security of tenure
DOES it seem like this COHORT have “all bases covered”?
WHERE are the guarantees of affordable housing, security of tenure for Australians?
Mirvac launches build-to-rent with first investor, Clean Energy Finance Corp
It’s a slam dunk for Mirvac CEO Susan Lloyd-Hurwitz, as she revolutionises housing in Australia. Eamon Gallagher
by Su-Lin Tan
ASX-listed diversified group Mirvac has launched its build-to-rent residential club securing the Clean Energy Finance Corporation (CEFC) as its first investor and kicking off the build-to-rent sector in Australia.
Just under a year ago Mirvac started looking into the sector, with plans to round up investors to put up a pool of funds to build apartments for rent similar to the multifamily housing concept in the US and Europe, where institutional investors hold large amounts of homes for long-term rental.
With fair yields notoriously difficult to achieve in Australia given the high costs of production and taxes, Mirvac pitched a 4.5 per cent yield to potential investors as it sought institutional interests with investment bank UBS, sole advisers and managers to Mirvac in the establishment of the club.
As the first mass-scale developer to take the concept to fruition, Mirvac has now secured CEFC for a 30 per cent interest in the club, of which the seed asset will be the new-build apartment building “Indigo” at Mirvac’s Pavilions housing project at Sydney Olympic Park in Sydney.
Renders of “Indigo” apartment building at Mirvac’s Pavilions project which will be the first mass-scale build-to-rent or multifamily project in Australia. GRIMSHAW ARCHITECTS
With Indigo, the first purpose-built build-to-rent asset for Mirvac, the developer has out-raced other players such as US-based multifamily group Greystar and Macquarie Capital to take the first leap into the sector seen by the industry as difficult to achieve in Australia.
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“Renting has become a lifestyle choice for a much wider group of people who want to be closer to work and other lifestyle services and amenity. We believe build-to-rent can provide renters with better choice, better quality and better security of tenure,” Mirvac chief executive Susan Lloyd-Hurwitz said.
“Build-to-rent makes good business sense for Mirvac, by providing us with a new asset class and a secure revenue stream, as well as presenting us with a new and growing customer base. We are excited to drive the establishment of the build-to-rent sector in Australia, for which we see enormous potential over time.”
Sustainable and green
Like all traditional build-to-rent products, Indigo will have dedicated onsite leasing and management, high-quality amenities and a resident program. Mirvac, as opposed to real estate agents, will act as the development, investment and property manager.
Renders of “Indigo” apartment building at Mirvac’s Pavilions project which will be the first mass-scale build-to-rent or multifamily project in Australia. Supplied
Showing foresight in the future of housing where much of it will be dominated by tenants, according to research by Knight Frank and YouGov that shows half of tenants are willing tenants, and many are renting due to the unaffordability of home ownership in Sydney and Melbourne, Mirvac plans to grow the club and discussions with additional club investors are ongoing.
CEFC’s involvement means future homes built by the club will be sustainable and green.
“Indigo” will be designed to achieve a minimum of 40 per cent less greenhouse gas emissions than a typical apartment building. Other features will include upgraded glazing to improve the building’s thermal performance, LED lighting throughout, energy-efficient appliances, solar PV, and water efficient taps, toilets and showers.
“Our investment in the club is about giving tenants the same access to clean energy technologies as home owners. It’s an immediate way to lower tenant energy costs, as well as tackle greenhouse gas emissions in Australia’s rental housing portfolio,” CEFC chief executive Ian Learmonth said.
“With almost one third of Australians now in the long-term residential rental market, it’s critical that developers and owners incorporate innovative sustainable design measures from the early planning stage.”
CEFC has already partnered with Mirvac on other projects, contributing $90 million in debt finance towards three of Mirvac’s proposed masterplanned communities in Brisbane and Sydney.
Construction on Indigo has commenced, with completion expected in 2021.
Mirvac’s share price dropped 2¢ to close at $2.28 on Tuesday, higher than the year’s low of $2.01 in February.