Kensington build-to-rent project nearly finished

Build-to-rent developer Local is set to open the doors of their campus-style, build-to-rent development in Kensington in November.

Located at 348 Macaulay Road, the village precinct was designed by Hayball Architecture and has a shared internal courtyard providing a communal link between the six buildings, each eight storeys high. 

When completed, the project will bring 477 build-to-rent apartments to the area, that are anticipated to become the homes of more than 1,200 residents.

Following the successful launch of the first phase in August 2024, Local co-founder and co-CEO, Dan McLennan is excited by the prospect that the project to be completed by the end of this year. 

The precinct in Kensington is Local’s first project and is guided by the founders’ desire to create a build-to-rent offering that is affordable and secure.

Local provides renters with the option to sign leases for up to five years to provide a greater level of security. Local also offer affordable housing through their Impact Housing program. 

Within the Kensington development, there are 11 social housing apartments for women aged over 55 at risk of homelessness, as well as 22 affordable housing apartments for key workers on low to moderate incomes. 

Both of these aspects are managed by Women’s Property Initiatives and since phase one opened, all social housing apartments have now been occupied, and half of the affordable housing apartments have tenants. 

As a part of the Impact Housing program, Local also has built eight specialist disability accommodation apartments plus one carer apartment to be managed by Home in Place.

Impact Housing is a part of Local’s business philosophy according to their corporate and ESG head, Clare Tayt, who said the company’s goal is to become part of the solution to Australia’s housing crisis. 

Local’s model includes a minimum of 10 per cent and up to a third of social, affordable and specialist disability accommodation in each of its developments. 

The intention is to grow this to a minimum of 1,500 social and affordable homes over the next decade as part of Local’s development pipeline target of more than $5 billion. 

“Local stands apart in the residential property sector in delivering social and affordable housing in its projects which exceed our planning obligations, all without relying on government subsidies, charitable tax concessions or planning bonuses,” Ms Tayt said.

However, Ms Tayt believes that to address the lack of housing supply, future government support is essential for developers to be commercially incentivised. 

Despite the challenges that the property development industry currently faces, Local has developed strong relationships with institutional investors who have helped get their projects out the ground. 

“Our institutional investors expect not only market returns, but also a positive social impact, all backed by a meticulously crafted execution strategy from the get-go,” Ms Tayt said.

“We are one of few developers in the Build-to-Rent space that are able to demonstrate a plan for achieving this.” 

According to Ms Tayt, this commitment to providing sustainable, high-quality rental homes, along with Local’s commitment to impact housing, played a pivotal role in their finance partner NAB extending debt funding over other build-to-rent developers. 

Local have also been awarded a Six-Star Green Star for the Kensington development, which is an internationally recognised rating system for healthy, resilient, positive buildings. •