New Zealand’s Build to Rent Pioneers
Since 2015, New Ground Capital has pioneered the build to rent (BTR) housing asset class in New Zealand and delivered meaningful improvements for renting households.
With established government partnerships and development pipelines, we’re poised to accelerate our positive social and environmental impact alongside healthy returns for institutional investors.
Strong Demand for Rental Housing
New Zealand’s rapidly growing population and inability to supply sufficient housing has resulted in rocketing demand for quality rental homes. This is particularly pronounced in Auckland, which requires at least 150,000 additional new units over the next 20 years, according to current projections.
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Between 2000-2020, Auckland’s population grew at a rate of 1.8% p.a., three times the OECD average of 0.6%. In 2023, New Zealand’s population grew by a record 145,000 people (2.8%), with Auckland being the destination for a large proportion of immigrants.
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The number of renting households grew at nearly three times the rate of population growth during 2000-2020. This is partly driven by house prices becoming out of reach for many, but also by an increase in immigrants who are more accustomed to renting. New Ground Capital build to rent homes maintain occupancy levels above 99%, reflecting deep demand.
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Auckland needs at least 15,000 new homes per year to keep pace with population growth, however annual building consents have fallen 30% from their peak in 2022. Current market fundamentals are not supportive of increasing housing supply, and the shortfall is likely to widen.
Access to the New Zealand market at institutional scale
The New Ground Capital full service platform of investment management, origination, development and property management has over 1000 homes either completed or underway.
OUR EXPERTISE
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We work with institutional investors to set up and manage investment vehicles that achieve their financial and impact objectives. Legal structures, tax considerations, governance and fee incentives are all defined up front to ensure these arrangements achieve the optimal outcomes for all parties.
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New Ground Capital has extensive relationships with central and local government regeneration entities that yield a high quality pipeline of land opportunities. We have also originated transactions on and off market, and facilitate transaction flow from a wide range of market participants.
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Our vertically integrated in-house development team manages investments to drive the best possible outcomes for our investors. The team has extensive experience in early stage feasibility assessment as well as hands-on development management experience to deliver excellent results.
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Specialised property manager New Ground Living has a people-centred philosophy supported by robust systems and processes. Our proven approach results in loyal customers, high occupancy rates and strong investment performance.
