Investa today launched a new build to rent (‘BTR’) management platform, Indi, in conjunction with Oxford Properties (‘Oxford’) to provide a different and better way to rent for Australians. Indi intends to develop a prime portfolio of 5,000 apartments and become the pre-eminent BTR platform in Australia, by providing residents a new and attractive alternative to the private rental market. Indi will provide investment, development and property management services to Oxford’s portfolio of Australian BTR assets.
With a focus on Sydney and Melbourne, each Indi project will provide a strongly differentiated offering with high quality apartments, extensive yet tailored amenities and dedicated on-site service teams to provide residents with 24-hour first class service. Located close to major transport links and public amenities, each project will comprise between 250 to 1,000 apartments to create community-oriented living.
Indi already has over 900 apartments in its pipeline, at two development sites. The first site in Pitt Street, Sydney, comprises 234 apartments and is part of the Sydney Metro’s new Pitt Street over station development, due for completion in September 2023. The second project of 702 apartments is in the inner western suburb of Footscray, 15 minutes from the Melbourne CBD, due for completion in Q2 2024. The developments will include extensive amenities such as co-working spaces, pools, gyms, cinemas, wellness facilities, landscaped gardens and kids’ play areas.
Sally Franklin, Group Executive, Real Estate Services and Business Operations, Investa, said: “Our apartments will be purpose-built for rental and will incorporate contemporary design, high-quality finishes and flexible floorplans to meet a broad spectrum of residents’ needs. We have incorporated ‘Rent Different’ into our operating principles, as we are committed to delivering this at every touch point of a resident’s journey with us.
“Our residents will enjoy security of tenure through long leases of up to three years, a proactive maintenance program, pet-friendly policies, the ability to personalise apartments and sustainable design and operations.”
Indi’s vision is to deliver a better rental experience for Australians and create a positive new dynamic between renter and owner. Tailored to the needs of the local market, Indi aims to appeal to the ever-growing market of long-term renters in Australia’s two largest cities who are seeking a personalised, community-oriented living experience.
The Indi name speaks to independence and reflects key focus areas of the brand, being freedom, personalisation and community, which research indicates is not being met in the private rental market.
James Greener, Fund Manager, Build to Rent, Investa said: “We are excited to progress Oxford’s build to rent investment strategy in the nascent and highly sought after institutionally owned and managed Australian residential rental sector.
“Supported by strong macroeconomic tailwinds, continued population growth across younger renting cohorts, record high housing affordability constraints and a structural undersupply of high-quality and professionally managed residential product, the potential of the sector is high.
“Investa’s local market expertise and best-in-class, integrated management platform, combined with Oxford’s unparalleled global track record in the sector, will support our success,” said Mr Greener.
Australia’s nascent BTR industry represents a significant opportunity for institutional investors. In the US and UK, this growing asset class represents 12% and 2% of the existing housing stock. If just 1% of Australia’s current housing stock transitioned to BTR, it represents a A$74 billion opportunity.
Alec Harper, Oxford Head of Australia, said: “As Oxford has experienced across North America and the UK, there is a deep need and desire among renters for high quality, professionally managed apartments. Indi provides us with an opportunity to move the status quo of the current landlord and tenant dynamic in Australia, by replacing it with one where the owner is focused on service and providing an exceptional experience for residents.
“Together with Investa, we will use our global BTR experience to create thousands of new homes for Australians and turn Indi into the preeminent build-to-rent provider in Australia.”
Oxford currently owns and operates a portfolio of almost 10,000 apartments across North America, with a development pipeline of approximately 15,000 units. It is a co-owner of Get Living, a leading UK BTR platform, which owns approximately 3,000 operational units, with a pipeline of a further 5,000 units.