Business North July / August 2021

20 | to page 22 “Unlike investing in commercial property, where an investor’s rental income is reliant on the financial performance of one or two commercial tenants, Build-to-Rent provides the investor with the security of multiple residential tenants.” Build-to-Rent shows a way forward Karen Phelps DEVELOPMENT Du Val Group W ith over 20,000 New Zealanders currently on the waiting list for gov- ernment housing and 6,600 people in transitional housing, CEO of Du Val Group, Kenyon Clarke, believes Build-to-Rent could provide part of the solution. The Du Val Group has established a Build- to-Rent Fund, representing an opportunity for qualifying wholesale and eligible investors to co-invest in large-scale residential communi- ties in high growth, in demand locations. Managing director of Du Val’s Build-to-Rent division John Dalzell says Build-to-Rent is the asset class of choice for many institutional investors in large cities around the world and for good reason. “Due to their all-inclusive design and high quality management, Build-to-Rent projects create efficiencies in terms of maintenance and occupancy, unmatched in similar asset classes,” he explains. “It’s also important that private equity real estate fund managers champion ethical investment and build to rent represents long term security for renters and investors alike. Unlike investing in commercial property, where an investor’s rental income is reliant on the financial performance of one or two commercial tenants, Build-to-Rent provides the investor with the security of multiple resi- dential tenants.” Du Val’s has recently announced that it has secured funding from a major banking partner for its first Build-to-Rent Fund and the fund is due to close shortly on its first acquisition comprising two properties providing social and affordable housing for 171 tenants in South Auckland. Returns are comprised of income as a socially conscious professional landlord and potential growth of the asset value, while pro- viding long term surety of tenure for renters. Over time Kenyon says that it is the inten- tion that the Build-to-Rent Fund will invest in additional large-scale residential projects. “Proposed projects will generally consist of several buildings, each with multiple units. Projects will come ‘turn key’ and generally fea- ture amenities such as communal kitchen and laundry facilities, Wi-Fi and utilities, furniture packages etc,” he says.