Innovative Investment Model to Relieve Rental Shortage.

An innovative model to combat the shortage of inner city rental properties in booming Perth and provide a long-term investment opportunity for savvy investors has been developed by the East Perth Redevelopment Authority (EPRA).

The first four sites under the model in EPRA’s New Northbridge urban renewal project are for sale by Expression of Interest and will deliver more than 50 rental units to the market.

The successful purchaser(s) will be required to develop the land and either; retain and manage the residential component as rental housing for a specified period (minimum 10 years); or sell the development on completion to an investment body en-bloc to retain and manage the rental units. The ground floor commercial units in the development can be sold to recoup part of the initial investment.

EPRA’s Chief Executive Officer Tony Morgan said the model responded to a niche in the investment market, while providing a solution to growing pressures in the rental market.

“Our research tells us that long-term investors, such as superannuation funds and property trusts, are looking for sites which combine solid rental income with capital growth over the medium to long term,” Mr Morgan said.

“This offering achieves these objectives on four of Perth’s most sought after mixed-use inner city sites, as part of the New Northbridge regeneration project.”

Mr Morgan said Perth’s strong economy and property boom had led to increasing demand for rental accommodation. This model provided a new way of delivering more affordable accommodation in the inner city.

“Maintaining availability and diversity in our project areas is a priority for EPRA and we set aside 10-15 percent of new dwellings for affordable or social housing. This market rental model provides an additional prong to our Housing Diversity Policy and ensures that the inner city remains accessible to all people,” said Mr Morgan.

Mr Morgan said the lots would be sold via a two stage nation-wide Expression of Interest process.

The first stage in the process will see investors registering an interest in the proposal and submitting an indicative price, while the second stage will shortlist investors and consider price and design.

The first stage of the EOI process closes at 2:30pm on 19 September 2007. For more information about the lots on offer or the EOI process, please contact Martin Reeson of Knight Frank on 9225 2502.

EPRA’s New Northbridge project has achieved record growth in the last 12 months and is now considered one of Perth’s most sought after inner city locations. The regeneration project has already attracted more than $120 million of investment and is transforming the area through adaptive reuse of heritage buildings, quality infrastructure and innovative mixed-use development.