Mirvac has launched a brand new Australian Build-to-Rent Club (ABTRC) in conjunction with the Clean Energy Finance Corporation (CEFC), committing to a 30 per cent interest as a cornerstone investor.
Mirvac’s CEO & Managing Director, Susan Lloyd-Hurwitz said 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 a better choice, better quality and better security of tenure.”
Mirvac has stated that recent Government reforms, in addition to the work of state government working groups, have demonstrated strong support and momentum for the build-to-rent sector and that they intend to get behind this movement.
The property group’s first Australian build-to-rent asset will be Indigo Pavilions at Sydney Olympic Park in New South Wales. The development would form Mirvac’s fourth building in the precinct. Indigo Pavilions will have dedicated onsite leasing and management, high-quality amenities, a resident program and various sustainability features. Mirvac will act as the development, investment and property’s manager. Construction of Indigo Pavilions has already commenced, with the project expected to be finalised by around 2021.
“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,” Lloyd-Hurwitz shared.
The investment from the CEFC will help enhance sustainability at Indigo Pavilions, which has been designed to achieve a minimum of 40 per cent less greenhouse gas emissions than a typical apartment building. Other features of the new build-to-rent building include plans for upgraded glazing that would enhance the structure’s thermal performance, LED lighting throughout, energy-efficient appliances, solar PV, in conjunction with water-efficient taps, toilets and showers.
“Our investment in ABTRC is about giving tenants the same access to clean energy technologies as homeowners. It’s an immediate way to lower tenant energy costs, as well as tackle greenhouse gas emissions in Australia’s rental housing portfolio,” stated CEFC CEO, Ian Learmonth.
“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. It’s about delivering energy-efficient buildings that have long-term environmental benefits,” he said.
This is not the first time that the two organisations have worked together, earlier this year the CEFC committed up to $90 million in debt finance towards three of Mirvac’s proposed master-planned communities in Brisbane and Sydney (which are still subject to approval). If given the go-ahead, these new homes are forecast to have built-in solar-plus-battery systems of which are expected to reduce household energy costs by as much as 90 per cent.