Vellum Funds Management (Vellum) and Urban Property Group (UPG) were joined by Member for Penrith, the Hon. Stuart Ayers MP to turn the soil on their second Sydney project, Navali. This new development is part of the recently announced A$1bn Places Build-to-Rent (Places BTR) fund, the first of its kind in Australia.
Navali, a A$78m project located in Penrith, will comprise of 163 residential apartments and a 956sqm commercial area. The construction is expected to be completed by Q4 2021. UPG will provide a one-year rental income guarantee to investors and a gross rental yield of 5% is projected. The project also includes 10 NDIS units and a carers unit.
Environmental, social, and governance (ESG) is major focus in Vellum’s investment roadmap of the Fund’s future projects. Vellum’s continued operation of Places BTR Fund will be a proven example of how high-quality investments and positive community impact can go hand-in-hand.
“We are committed to making sustainable and responsible investments, which make positive long-term impacts offer the very best in community. First Highland, and now Navali we want all Vellum’s future projects to continue to meet and exceed changes occurring in the property market,” said Vellum Managing Partner Binuo Erth.
The build-to-rent (BTR) market is starting its boom in Australia and has already had success globally. BTR projects provide affordable options for the growing Australian residential market.
Vellum’s first Penrith project Highland, which was completed in 2019 and is already fully tenanted, set the model for the industry by focusing on social responsibility and community centric design.
Ms Erth added that Navali builds on a proven concept demonstrated by Highland, adding “the success of our first development project demonstrated the viability and desirability of our concept.”
“We identified early that the Australian market needed solutions like our BTR Highland and Navali projects. Addressing market needs while taking socially responsible action and delivering strong investment returns is how projects like these will continue to ensure success of Places BTR,” Ms Erth continued.
Vellum is a financial corporation focusing on direct real estate investment, capital management and corporate financing, which includes operations in Australia, mainland China and Hong Kong. Places BTR Fund aims to give sophisticated and institutional investors have a unique opportunity to participate in this sector through their Places BTR fund.
With the foresight of the upcoming boom of build-to-rent projects in Australia, the BTR fund will continue to build a portfolio of exceptional build-to-rent residential projects in Sydney and beyond.