$2 billion added to GQ’s Build to Rent burgeoning platform in Australia

The momentum for Build to Rent is continuing which should greatly concern retirement village operators unable to develop existing or new villages.

(Our analysis identifies that a retiree will achieve the same or better outcome with Build To Rent compared to a retirement village.)

Developer Tim Gurner and ASX-listed real estate financier Qualitas have secured a $2 billion capital injection from an offshore institutional investor to drive the growth of their target – Build to Rent in Sydney.

The raising follows the joint venture partners securing $1.2 billion in gross assets under management in its first fund, deployed into four prime assets of about 1,420 apartments either under construction or due to commence in the middle of the year.

Tim said the second fund will focus on Sydney, growing the already established pipeline, and augmenting GQ’s plans to create a $5 billion portfolio of 5,000 apartments under management by 2026.

Meanwhile, a $163 million Build to Rent development with 50% affordable housing over 543 units, in five buildings six to 13-storeys high, has been proposed for Regents Park in Sydney’s southwest. The concept development application is associated with Anthony Crane, Raad Holdings and affordable housing provider Pacific Community Housing.

Retirees are finding Build to Rent an attractive proposition. The developments offer many amenities found in the newest retirement villages, including dog parks, BBQ areas, communal gardens, swimming pools, cinemas and gyms, organised social activities and maintenance.

With the development owned and managed by the developer, it allows retirees greater flexibility through longer lease terms, lower or no bond, permission to have pets and decorate the home.