Macquarie plans to sink $500 million into complexes around the country.
Background: Macquarie Bank are an Aussie-born investment bank and financial services company. Unlike the Big 4 (CBA, Westpac, ANZ, NAB), this crew are less reliant on retail customers...and more into business banking.
What happened: Now, they're stepping into something a 'lil different: build-to-rent. They plan to sink $500 million into complexes around the country under a brand called Local.
What else: Local wanna build around 4,000 units over the next 5 years...and it's not bad timing. Housing prices are through the roof, which means people are looking to rent for longer.
💡Build-to rent is a new-ish kind of residential development where all the apartments are owned by the developer, and rented to tenants...rather than being sold off.
💡 The aim is that the developer can receive constant rental income from tenants...kind of like an investment with constant dividends, as opposed to a lump sum.
💡For tenants, being in a build-to-rent apartment block can be appealing because they can often stay for as long as they like (and personalise the place). But ya never gonna be able to buy it!
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