This article is from the Australian Property Journal archive
KNIGHT Frank has launched a new residential investments division in Australia as it prepares to take advantage of the emerging build-to-rent sector.
Knight Frank’s Tim Holtsbaum, currently director of site sales NSW, will lead the new business in addition to maintaining his current role.
Knight Frank Australia CEO Stephen Ellis the new team will focus on the private rental sector (PRS) or build-to-rent asset class, of which Knight Frank is considered a market leader in both the US and UK markets.
“The PRS sector is set for significant growth in Australia and is an already-established asset class in the UK and US.
“This is an exciting opportunity in our market and will provide another measure to maintain pace with housing supply demands and affordability requirements across Australia’s major cities over the next 10 years,” Ellis said. “Locally, Paul Savitz, director of research and consulting, will provide data and insight to support our clients’ investment in this emerging sector.”
Interest in the build-to-rent sector is gaining momentum in Australia. Last week Mirvac appointed UBS to seek interest from institutions to co-develop build-to-rent housing.
Speaking at the recent Australian Property Institute Capital Markets breakfast event, AustralianSuper’s Christine Phillips and SG Hiscock & Company director Grant Berry said the build-to-rent sector could be a real game changer for the local market.
Both AustralianSuper and SG Hiscock & Company already invest in the sector in the United States, where it is known as multifamily housing.
Holtsbaum said that typical investors in the PRS space include institutional local and offshore pension funds, insurance funds, private equity, fund managers and integrated developers seeking low-risk and stable income.
“The sector not only includes typical residential housing – ‘build to rent’ (also referred to as ‘multi-family housing) – but also student accommodation and a newly-emerging asset class of ‘co-living’, aimed at young professionals,” Holtsbaum concluded.
Australian Property Journal
