PIA will be attending the 'Driving Growth: Build to Rent' Expo on Feburary 19-20th.
As GOLD sponsor and speaker at the event, Justin Wang, MD and Founder, PIA, will share his experience with this asset class. In attendance at the event will be organisations and individuals looking to capitalise on the opportunities that exist in the emerging Build to Rent marketplace, interested in understanding the market, identifying opportunities, making the right connections.
PIA MEDIA RELEASE
Build to Rent: a win-win for developers, investors and tenants alike says PIA
Sydney, 14 February 2019 – The Property Investors Alliance says the ‘Build to Rent’ model holds significant opportunity for property developers in today’s challenging market where some developers face difficulties around project finance, while also providing a solution for housing supply.
PIA Founder and Managing Director Justin Wang said the Build to Rent model minimises risks in property development for all involved – the developer, the financier and even the Government by providing more affordable housing options.
“It’s a ‘win win’ for everyone. Rental income can start to be earned the minute the building is completed, with PIA agents sourcing tenants lined up and ready to go. With more than 40% of Sydney-siders choosing to rent, it’s a viable system and one that will work just as effectively in Australia as it has in the UK,” Mr Wang said.
“It’s not the panacea for affordable housing but it is a solution for the current state of play in the development industry, as well as addressing social housing and tenant welfare.”
PIA has been engaging in Build to Rent for a number of projects over the past 13 years. They’ve assisted numerous developer partners in choosing the right business model. In light of the current climate, where many developers are facing development finance hurdles – it offers an alternative, allowing them to get on with the business of developing their next site.
The Build to Rent asset class is where a development is built for the sole purpose of all apartments being tenanted and therefore owned by a single or multiple investors or the developer.
Mr Wang said for PIA the ‘Build to Rent’ model holds considerable opportunity moving forward given the current financial constraints on developers. PIA currently works with many developer partners on the more traditional ‘Build to Sell’, managing the sales of property investments for approximately 10,000 investor clients and 6,000 landlords and has an estimated 11,000 tenants occupying apartments in projects in Sydney, and a growing number of build to rent developments.
PIA is a major sponsor and speaker at The Urban Developer’s upcoming ‘Driving Growth and Investment in the Build to Rent’ Conference in Sydney on 19-20 February. Mr Wang will discuss the pros and cons of Build to Rent versus other investment options as well as how best developers can achieve efficiencies. He’ll also highlight PIA’s extensive track record of managing Build to Rent and Build to sell projects with developer partners, achieving a 99.69 percent settlement rate in 2018 and facilitating more than 10.55% of NSW New Housing supply through property sales to investor clients.
“The build to rent model also offers an excellent investment proposition for developers and institutional investors as it provides a secure and stable model which works in both the tenant and the investors’ favour,” Mr Wang added.
PIA plans to use this model to expand its business over the next 3-5 years. The company continues to grow its waiting list of potential tenants to fill the rental pool created by the Build to Rent model.
“Over the next 3-5 years, we believe the Build to Rent asset class will be as popular as the existing off-the-plan Build to Sell model,” Mr Wang said.
ENDS
Media contact:
Libby Conway, The Capital Group, 0439 076 835
PIA Development Contact:
Justin Wang, PIA, businessdevelopment@pia.com.au
About the Property Investors Alliance
Established in 2005, By Justin Wang, The Property Investors Alliance is one of Australia’s leading property investment and supply platforms.
The company brings together over 10,000 ‘investment ready’ purchasers together with leading Australian developers who supply high quality residential stock for purchase. Through its unique vertically integrated model, the company also provides its investors with rental management services, leasing and quality assurance services. The company generates more than $1 billion worth of sales annually and represents over 10,000 clients and 11,000 tenants.
For more information, visit www.pia.com.au
