Build to Rent Kickstart Fund

Administered by Keystart, The Build to Rent Kickstart Fund is a $75 million initiative, established by the Western Australian Government to encourage investment in the emerging Build to Rent asset class, boosting the supply of secure, long-term rental housing in Western Australia.

The Build to Rent Kickstart Fund is coming - register your interest now.

The Fund, to be admistered by Keystart, will be allocated through a competitive application process and a formal approach to market is scheduled for release in late 2025.

Preliminary eligibility criteria are provided below to guide early consideration; these are indicative only and subject to confirmation at the time of the formal release.

We encourage interested proponents to register their interest to receive updates as Keystart progresses the Fund. If you have any queries, please reach out to us at buildtorent@keystart.com.au or fill in the form below to register your interest.

Assistance available under the Build to Rent Kickstart Fund

The intention of the Fund is to support the sustainable delivery and operation of Build to Rent projects.

If you’re successful in the formal approach to market process, Keystart may provide you with assistance during either the construction or operational phases, or both.

Construction phase support

Keystart may offer Construction Finance to support project delivery on the following basis.

As a secondary source of funding, bridging the gap between senior debt and the equity capital needed for the project.
30% of the Project Construction Cost (capped to a maximum of $250,000 per dwelling).
Provided at no interest for the period of construction for a term of up to 3 years.
Must be repaid or refinanced in full on completion of the development phase (practical completion/issue of occupancy permit).

Operational phase support

Keystart may offer Operational Finance to support Project delivery on the following basis:

As a secondary source of funding to support private sector investment in the long-term ownership of eligible Build to Rent projects.
30% of the Asset Value (capped to a maximum of $250,000 per dwelling).
Provided at a concessional rate (low interest) for a period of up to 7 years.
Loans must be repaid in full at the end of the financing period (or as otherwise determined by Keystart).

Affordable rental housing

The Build to Rent development must reserve a total of 30% of dwellings as affordable rental housing. The affordable rental housing must be:

Available for a minimum period of 10 years; and
Rented or available for rent under a residential tenancy agreement with a term of at least 3 years.

Rents charged to Affordable Housing tenants must be no more than 25% of gross income, up to the Keystart thresholds of:

$148,000 for a single.
$218,000 for a couple.

The Keystart income limits will be indexed yearly by CPI.

Keystart will determine the security requirements for each project. Appropriate security instruments must be provided to secure our interest in the Project.

Am I an eligible proponent?

To be eligible to apply under the formal approach to market for the Fund, proponents must meet the following minimum requirements:

Proven delivery capability – Demonstrate a track record (or relevant related experience and capacity) in delivering residential developments of a similar size or scale to the proposed Build to Rent project, including evidence of financial solvency to support delivery.
Sustainable management expertise – Hold the skills, capabilities, and expertise to sustainably manage the Build to Rent project once operationalised, supported by evidence of financial solvency to sustain ongoing operations.
Approved delivery structure – The project must be delivered via a Special Purpose Vehicle (SPV) that is an Australian-registered company or equivalent entity (or as otherwise approved by Keystart), with evidence of financial solvency of the SPV ( and/or related entities as required by Keystart).
External funding capacity – Demonstrate that a minimum of 70% of the total construction cost can be secured from external funding sources (equity and/or debt), supported by evidence of financial solvency to attract and maintain this funding.
Security provision – Provide security, as determined by Keystart, to protect our interest in the project, with evidence of financial solvency to support the value and enforceability of the security.

What is an eligible Build to Rent project?

For the purposes of the Fund, an eligible Build to Rent project must meet the following minimum requirements:

Consist of land owned by one owner or joint owners.
Be development for the purpose of providing 40 or more self-contained dwellings for lease under residential tenancy agreements (whether the building or buildings are used for other purposes).
Consist of the construction of a building or buildings on the land, or the substantial renovation of the whole or a substantial part of buildings on the land, that are not used for residential purposes (including aged care).
Allow for each of the dwellings to be rented or available for rent under a residential tenancy agreement with a term of at least 3 years (unless an exemption as determined by Keystart exists).
Not place direct or indirect restrictions on the class or classes of persons who may occupy those dwellings (unless an exemption as determined by Keystart exists).
Ensure the same management entity is responsible for the provision of management services to the whole of the development.
Reserve a total of 30% of dwellings in the development as affordable rental housing for the private market.
Guarantee affordable rental housing provided in the development is available for a minimum period of 10 years.

Further, an eligible Build to Rent project must demonstrate the following:

A viable development delivery model to successfully develop the Build to Rent project from construction through to occupation.
Sustainable methodology with appropriate structures and arrangements in place to successfully deliver the long-term management of the Build to Rent project and rental housing tenancies, including the arrangements for management of the reserved affordable housing dwellings.

Additional measures to support Build to Rent projects

In addition to the Build to Rent Kickstart Fund, the Western Australian Parliament passed a Build to Rent land tax exemption, which provides an reduction of up to 50% of the taxable value of the land for 20 consecutive assessment years from the first year the development meets the requirements.

You can find out more about the exemption here.

Register your interest

Complete the form below to register your interest and receive updates.