Kanebridge Property Group has launched its own build-to-rent housing model in western Sydney across three of its major developments.
Initially launching with 1500 apartments, Kanebridge says that it aims to grow its build-to-rent stock into the thousands with the aim of becoming the leading provider of build-to-rent apartments in NSW by 2024.
Build-to-rent housing has been well established in the US for more than 20 years. It has now taken a stronghold across Europe – notably in the UK, where it has been established as a means of providing affordable modern housing for those unable to purchase property of their own.
Multifamily build to rent – the model Kanebridge has launched – has the advantage of providing consistency to tenants, both in terms of rent in the latest amenities.
While build to rent has only recently arrived in Australia, NSW has been slow to embrace it, largely due to current restrictive legislation involving the State’s land tax laws and the Commonwealth Government’s GST treatment of ‘build to rent’ projects compared to ‘build to sell’ projects. Kanebridge will be the first to offer build to rent in western Sydney.
Kanebridge Property Group will initially offer build-to-rent housing across three of its developments in the area: The Wexford in Schofields, The Hugh in North Kellyville and Marsden Central in Marsden Park. The developer will offer long-term rental options initially across 1500 apartments with primarily one-, two- and five-year leases.
Taking advantage of the build-to-rent model, KLS says that it will be able to tailor specific amenities to its tenants depending on their demographics – whether they are students, young families or seniors. For example, seniors will have an on-site nurse, and heart- and movement-monitoring technology within their apartments. Similarly, tailored amenities will be on offer for students and young families.
KLS has been set up as the building management – as well as the approval committee serving as the decision-making body on tenant requests. Building managers employed by KLS will oversee and manage the apartments, with Kanebridge staff looking after leases, running community events and ensuring shops, cafes and workspaces are providing services to KLS tenants at the highest levels.
After three years, tenants will qualify for vendor finance through Kanebridge Finance – a subsidiary of the Kanebridge Group of companies – to enable them to buy an apartment should they wish.
Long-term tenants who have rented for five years will also have the opportunity to invest in the KLS management property trust and participate in investor opportunities in other KLS build-to-rent projects – with their on-time rental payment history acting as their line of credit.
Michael Martin, head of Property & Investments at Kanebridge, says that “The build-to-rent model is far superior to other rental offerings in the market. This is a very exciting opportunity for tenants, who will want the option to rent into a ‘lifestyle’ designed with their demographic in mind, rather than just leasing an apartment to occupy. We expect it will be particularly attractive to millennials and young families, and those looking for flexibility in their living arrangements.”