Australia’s first build-to-rent club has been officially formed and the first project for the club will be Indigo at Sydney’s Olympic Park.
The club, a coalition between the Mirvac Group and the Clean Energy Finance Corporation, is committed to building a residential property at Mirvac’s Pavilions project that will have a clean-energy focus.
Mirvac will act as the development, investment and property manager of the Indigo building.
Mirvac’s CEO and managing director, Susan Lloyd-Hurwitz, said that renting was a lifestyle choice for many Australians and these projects would help those Aussies.
“We believe build-to-rent can provide renters with better choice, better quality and better security of tenure,” the CEO said.
Ms Lloyd-Hurwitz said that build-to-rent made good business sense for the company by providing a new asset class and revenue stream.
“We are excited to drive the establishment of the build-to-rent sector in Australia, for which we see enormous potential over time,” the CEO said.
The 30 per cent interest by the Clean Energy Finance Corporation will help to enhance sustainability at Indigo, which has been designed to achieve a minimum of 40 per cent less greenhouse gas emissions than typical apartments.
CEFC’s CEO, Ian Learmonth, said that their investment in Mirvac was about giving tenants the same access to clean energy as home owners.
“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,” Mr Learmonth said.
“It’s about delivering energy-efficient buildings that have long-term environmental benefits.”
The CEFC’s investment in the club builds on their pre-existing relationship with Mirvac, as the group had committed up to $90 million in debt finance towards three of Mirvac’s proposed communities in Australia.
New homes at these communities will have technology that allows them to reduce household energy costs by as much as 90 per cent.
Mirvac intends to grow their build-to-rent club over time and is looking for additional club investors.