Simplicity makes headway on build-to-rent goal
Monday, 5 February 2024
Renters’ chances of locking in a secure tenancy in a sought after area have increased with the news that Simplicity Living’s build-to-rent empire is expanding into Auckland’s Morningside.
The home building company, which is owned by non-profit KiwiSaver provider Simplicity, is on a mission to build 10,000 new and affordable, long-term rental properties over 10 years.
On Monday, the company announced it had purchased land in the city fringe suburb of Morningside, and planned to build 256 new build-to-rent apartments on it.
The development site is 150 metres from the Morningside train station, and 10 minutes walk from St Lukes shopping centre.
Simplicity Living managing director Shane Brealey said everybody should have the option to rent long term, in great neighbourhoods, and within walking distance of transport and amenities.
“This one ticks all those boxes. And we’re building the apartments to last 100 plus years, because that’s how long we want to own them.”
The $150 million development would be made up of one, two, and three bedroom apartments, and would target a Homestar 7 rating with environmental features dominant.
These would include rainwater harvesting, solar panels, electric chargers and very high standards for thermal and acoustic quality, Brealey said.
The announcement showed Simplicity Living was making solid progress on its 10,000 new rental homes initiative, which got underway two years ago.
It now has a total of 1099 homes built, being built, or in development.
Morningside is the sixth development it has announced, and followed other developments in Pt England, Onehunga, Mt Albert, Mt Wellington, and Remuera.
The Onehunga and Pt England developments had been completed, and numbered 159 homes which were all rented.
Construction on another 348 homes was underway, including 51 in the Mt Albert development which were scheduled for completion in the middle of the year. Land had been contracted for another 592 homes.
The developments are financed by funds within Simplicity’s KiwiSaver Scheme and its Investment Fund.
But Simplicity recently launched its Homes and Income Investment Fund to boost its build-to-rent, first home mortgages and community housing investments.
Simplicity managing director Sam Stubbs said investing in build-to-rent housing was common overseas for pension funds like KiwiSaver.
“We are committed to making our members money, and helping create a better future for New Zealanders. Providing warm, dry homes for long term rent is part of that.”
The master planning process for the Morningside development was underway, with construction expected to start in 2025, and be completed in late 2027.
The build-to-rent sector had been slow to take off in New Zealand, but there were a growing number of projects in the pipeline.
Kiwi Property’s first build-to-rent development at Auckland’s Sylvia Park was scheduled to open in June this year. At 295 apartments, it would be one of the biggest to date.