The opening ceremony of the Resido apartment complex in Mt Wellington. From left, Hauauru Rawiri of Ngati Paoa, Housing Minister Chris Bishop, PM Christopher Luxon, Clive Mackenzie from Kiwi Property and Simon Shakesheff from Kiwi Property. Photo / Jason Oxenham
The opening ceremony of the Resido apartment complex in Mt Wellington. From left, Hauauru Rawiri of Ngati Paoa, Housing Minister Chris Bishop, PM Christopher Luxon, Clive Mackenzie from Kiwi Property and Simon Shakesheff from Kiwi Property. Photo / Jason Oxenham
Prime Minister Christopher Luxon and Housing Minister Chris Bishop today opened New Zealand’s largest build-to-rent housing scheme, with Luxon saying quality accommodation for tenants was a key to easing this country’s housing shortage.
“You are helping us increase supply for the rental sector,” he told those gathered atMt Wellington’s 295-unit Resido built by Naylor Love for NZX-listed landlord Kiwi Property Group.
“The country needs more houses. We need more rentals of high quality,” said Luxon.
Bishop said today he would introduce legislation to Parliament to amend the Overseas Investment Act to allow foreigners to buy land for more build-to-rent schemes.
“The legislation introduced today will amend the Overseas Investment Act to create a new streamlined consent pathway that would allow investors to purchase land with the intention of building a new build-to-rent development or purchasing an existing one.
This legislation will be supported by the recently-issued directive on build-to-rent investment from Associate Finance Minister David Seymour and myself which provided immediate certainty that New Zealand is open to foreign investment in build-to-rent developments,” Bishop said today.
Resido towers, opened today by Prime Minister Christopher Luxon. Photo / Jason Oxenham
Clive Mackenzie, Kiwi Property’s chief executive, said today was a milestone for the company because he was appointed in July 2018, arriving here from the United States where build-to-rent was expanding as an important asset class.
Kiwi board members and employees, staff from construction business Naylor Love, Property Council and others attended the opening in a marquee outside the main 12-level tower at Resido which is on Lynton Rd off the Mt Wellington Highway beside Sylvia Park.
Kiwi Property Group CEO Clive Mackenzie speaks at the opening ceremony of the Resido apartment complex in Mt Wellington. Photo / Jason Oxenham
A Kiwi spokesman said part of the three-tower scheme had already been rented.
“We’ve leased 17 per cent,” he said, citing 34 apartments rented to Australian flexible accommodation provider Urban Rest and a further 15 units rented or under contract to lease to individuals.
Kiwi’s annual results presentation out last month showed Resido apartments started at 43sq m for a studio, available at $625/week up to a 111sq m three-bedroom two-bathroom place with a 22sq m balcony for $1235/week.
Prices have taken aback some in the industry, saying the rates were more like a hotel than affordable rental accommodation.
The prices do not include car parks but Sylvia Park has a train station, bus hub and is at the confluence of two motorways.
A common area outside the three-tower Resido apartments, opened by Prime Minister Christopher Luxon. Photo / Jason Oxenham
Luxon thanked members of Sylvia Park School’s kapa haka group and Ngāti Paoa kaumātua Hauāuru Rawiri.
Mackenzie said Kiwi was looking for innovative ways to address the housing shortage and build-to-rent projects provided long-term tenancies.
“Tenants get convenience, comfort and quality. Residents can bring pets and can personalise apartments to their own way,” Mackenzie said.
An interior image of a new Resido apartment released in April. Photo / Kiwi Property Group
He also mentioned the new Ikea rising nearby across the railway line from Sylvia Park and said build-to-rent for Kiwi had been an abstract concept - until now.
In February, Kiwi announced Urban Rest was leasing part of Resido.
David Whelan, founder and chief executive, said Sylvia Park was his company’s first venture in this country.
“We see tremendous potential here, especially given the strong corporate demand for accommodations in Auckland.
The opening ceremony of the Resido apartment complex in Mt Wellington. From left, Hauāuru Rawiri of Ngati Paoa, Housing Minister Chris Bishop, PM Christopher Luxon and Kiwi Property's Clive Mackenzie and Simon Shakesheff. Photo / Jason Oxenham
“We’re looking forward to expanding our New Zealand footprint with the inclusion of Sylvia Park.
“The development is ideally located in the geographical centre of Auckland and easily accessible by train, bus, or road,” Whelan said.
Anne Gibson has been the Herald’s property editor for 24 years, written books and covered property extensively here and overseas.
