Build-to-Rent

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Sentinel Fund Manager Australia, the Australian arm of American development and real estate investment firm, Sentinel Real Estate (Sentinel) has today announced that it has received Development Approval for its latest major Build to Rent project, located at 194 West Coast Highway in Scarborough, Western Australia.

This will be the third Build to Rent project by Sentinel in the Australian market, following the success of its three-stage Element 27 project in Subiaco, Perth. Sentinel has another Build to Rent project currently under development in West Melbourne.

In Scarborough, Sentinel has received planning approval for a 17,221-square-metre mixed-use development on the corner of West Coast Highway and Manning Street. It will be developed, leased and managed by Sentinel.

The development features a single 21-storey Build to Rent tower atop a three-storey mixed-use podium. The approved works also include a significant expansion and upgrade of the surrounding public space.

Just 200 metres from scenic Scarborough Beach, Sentinel’s premium Build to Rent community will have sweeping views across the Indian Ocean and access to the amenities of greater Scarborough.

The development will comprise 175 apartments in total, with a mix of studio, one-, two- and three-bedroom floorplans, four commercial tenancies across the three podium levels, 230 bike parking bays, 215 car parking spaces and enhanced End of Trip facilities for commercial staff.

Sustainability is a core focus of the approved development, with the building targeting a 5 Star Green Star rating. The design incorporates leading sustainability features such as rainwater harvesting for onsite irrigation, drought resistant and low water use plantings, WELS rated fixtures and enhanced metering strategies to manage water usage, double glazed façade systems to enhance thermal performance and onsite solar energy generation. 
In addition to residential and commercial space, a range of new community amenities will be created by Sentinel as part of the approved development scheme. These amenities will include new plaza and park space to provide the Scarborough community east of West Coast Highway with greater opportunities for relaxation, exercise, pet-friendly activities and engagement with the arts.

There will also be a café fronting a new community park at Manning and Filburn Streets, a bicycle repair station for local cyclists and additional seating and shelter for the public within one of the development’s new 
public plazas. 

Construction of 194 West Coast Highway is scheduled to begin in late 2021.

Sentinel Real Estate also recently announced the Development Approval of Lot 204, the third and final phase of its other Build to Rent development in Perth, Element 27. Phase 2 of Element 27 is currently under construction and slated for occupancy in September 2021, at which point construction will begin on Phase 3. The first phase of Element 27 has been operational and tenanted since early 2019, making it the first purpose-built institutional Build to Rent development in Australia.

<h2>Check out our latest properties in WA:</h2>

[smartcode_project:default project_id=7854]

[smartcode_project:default project_id=26734]

[smartcode_project:default project_id=7836]
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In Scarborough, Sentinel has received planning approval for a 17,221-square-metre mixed-use development on the corner of West Coast Highway and Manning Street

jordan_55689

Planning approval received for major Build-to-Rent project in Scarborough, West Australia

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The build-to-rent developer Assemble will deliver 3,300 dwellings for low and moderate income households alongside the national not-for-profit provider Housing Choices Australia.

The initial tranche of the pipeline will be focused in Melbourne's inner and middle ring, with Carnish Road in Clayton earmarked as one of the key sites to be delivered under the partnership.

At least 20 per cent of the dwellings will be within the low-income housing component of each community.

Groups offered tenancy may include women experiencing domestic violence, young people living with disabilities, or key workers on low, fixed incomes that provide essential community services.

Housing Choices Australia will manage community housing across Assemble's $1.5 billion future project pipeline of build-to-rent developments. Under the partnership, Housing Choices Australia and Assemble will co-invest alongside institutional equity investors in all projects. 

[smartcode_project:default project_id=4124]

Assemble managing director Kris Daff said that the timing of this partnership is critical as Australia has an affordable housing shortfall in excess of one million dwellings that must be met by 2036.

“We are proud to partner with Housing Choices Australia to deliver much needed long-term mixed-income rental housing. Our partnership demonstrates how the private and not-for-profit community housing sector can work in unison to deliver real solutions to Australia’s critical housing shortage,” said Mr Daff.

“At a time that has been socially and economically devastating for Victoria, fuelled by uncertainty in housing tenure and barriers to home ownership, our communities need support now more than ever to ensure we do not reach crisis point.”

“Build to rent is a scalable model, and when executed to its best effect, it has the potential to meet our nation’s demand for secure-tenure affordable housing. We see mixed-income communities as a blueprint for the future of Australian housing,” said Mr Daff.

Housing Choices Australia managing director Michael Lennon said although new to Australia, build to rent is widely adopted internationally

“The establishment of build to rent as an asset class reflects the growing maturity of the community housing sector in Australia," Lennon said.

“Build to rent recognises that there are very significant unmet housing needs in Australia coupled with a strong desire by institutional investors to diversify and to contribute solutions to the housing crisis. The community housing sector offers ideal partnership opportunities because of its depth of experience in managing tenancies and communities cost effectively.”

“International examples of build to rent offer a wider array of housing choices, enrich city communities, benefit local economies and most importantly, take pressure off the housing system overall,”  Lennon added.

Assemble currently has a significant project pipeline in Victoria – the largest private portfolio of mixed-income housing.
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At least 20 per cent of the dwellings will be within the low-income housing component of each community

Joel Robinson

Assemble strike $1.5 billion affordable housing deal with Housing Choices Australia

<html><body>Australia’s Build-to-Rent (BTR) pipeline has expanded by 68% over the past year, with 40 projects seeing the total number of units approaching 15,000. 

Offshore institutional funding accounted for 57% of the total pipeline. 

Melbourne leads the way with its development pipeline representing over 50% of the national market, while Sydney accounts for approximately 25%.

Andrew McCasker, Pacific managing director of CBRE’s Debt &amp; Structured Finance business, commented that the ability to secure favourable debt financing terms remained "a critical enabler for BTR projects." 

“It is encouraging to see new dedicated products tailored to this market, with larger allocations of capital being made by both traditional lenders, the big four Australian banks, as well as non-bank lenders such as insurance groups, private equity and private credit funds,” Mr McCasker said.

“We expect funding appetite to increase as the asset class, and knowledge of the industry, evolves and matures in Australia.”

As the pipeline continues to expand, the aggregate size of the market is currently estimated to exceed $10 billion, with an additional $3-5 billion in projects currently under consideration or at various stages of due diligence.

CBRE noted there was a 28% increase in new projects in the second half of last year relative to the first six months of 2020.

Of the 10 projects announced in the past seven months (totalling over 3,300 new units), six were secured by sponsors who already had one or more investments in BTR in Australia indicating increasing levels of interest. 

At present, 11 groups are currently developing more than one project and have committed significant resources to the sector. </body></html>

Andrew McCasker, Pacific managing director of CBRE’s Debt & Structured Finance business, commented that the ability to secure favourable debt financing terms remained a critical enabler for BTR projects. 

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