Kiwi Property plans for its build to rent scheme. Video / Supplied
Kiwi Property plans to develop 540 new build to rent apartments in Mt Wellington and New Lynn in schemes worth $442 million.
Clive Mackenzie, Kiwi chief executive, announced the two schemes this morning.
The company will build on what is now flat asphalted car parking or older housing sites in both suburbs and Mackenzie said each project would cost around $221m.
That means around $442m of development is on the table for the business.
"In a move that will offer a new way of living and help ease New Zealand's housing shortage, Kiwi Property today announced plans to build the country's first large-scale build-to-rent development," the company told the NZX.
At Sylvia Park, Kiwi plans 295 units and at LynnMall it plans 245 units.
At LynnMall, a 25-level building with 19 floors of apartments, three levels of office space and a level of retail on the ground floor was planned. That building is to back into the shopping centre and will cost in the range of around $221m.
Mackenzie said it would be on the corner of Totora Ave and Memorial Dr.
Tenants at both sites will get access to private gyms, co-working spaces, rooftop terrace and on-site maintenance. They will be allowed pets as of right, to hang pictures, or add their own personal touch to the colour scheme.
Mackenzie remembered that in July three years ago when he started, he had cited build to rent as a concept.
On Sylvia Park, the company said: "The 295-unit apartment complex is set to change what it means to rent in New Zealand. Construction of the $221m development is scheduled to begin later this year, offering a mix of studio, one, two and three-bedroom apartments that are built for sustainable living.
Plans for the new Sylvia Park apartments, revealed by Kiwi Property today. Photo / supplied
"Build-to-rent properties are owned and managed by an institutional landlord – Kiwi Property in this case – and are specifically designed for long term tenancy. The model offers residents the flexibility and convenience of renting, coupled with the security of tenure usually associated with homeownership," it said.
Mackenzie told the Herald five old homes on a site beside the Sylvia Park Pak'nSave had been demolished. They are Lynton Rd. Access to the apartments will be off that road "so residents won't have to come into Sylvia Park to access the new development but there will be pedestrian access through to the shopping centre", Mackenzie said.
Kiwi's plans for a 25-level building at LynnMall. Photo / Kiwi Property
Kiwi plans three buildings, up to 12 levels at Sylvia Park. Resource consent has been granted, Mackenzie said.
The concept had the potential to alleviate the housing shortage, he said.
"It's never been tougher or more expensive for Kiwis to get on the property ladder. The median Auckland price is now around $1.2m and as a result, it now takes the average first home buyer 14 years to save a house deposit.
Red shaded area to left where BTR is planned at Sylvia Park. Photo / Kiwi Property
"Today, more than half of Aucklanders over the age of 15 are living in rental accommodation. Our aim is to make that experience as good as, if not better, than owning your own home. Kiwi Property's build-to-rent developments will feature quality amenities, a range of resident services and specially curated events, all designed to promote a vibrant community. We're creating a new way of living that's custom-designed for the modern Kiwi lifestyle," Mackenzie said.
"It's going to take just over two years to build them but we will rent them at market or a slight premium to market to reflect the quality of build and amenity," Mackenzie said.
