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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.

First Build to Rent Kickstart Fund project announced

The WA Government has announced the first project to progress under Keystart’s Build to Rent Kickstart Fund, helping to deliver almost 100 new rental homes in Mandurah. 

Keystart has issued term sheets for the first preferred project through the Fund - Spotted Gum Property’s Sutton Apartments development in Mandurah.  

The project will deliver 98 build to rent homes in central Mandurah, supported through an $9 million Kickstart Fund loan, with 31 units set aside as affordable rentals.


    Contact Keystart

    All enquiries concerning the Fund or Expression of Interest are to be submitted in writing, directed to Keystart via email - buildtorent@keystart.com.au.

    Respondents should note that Keystart may not provide a response (including any confirmation, view, or opinion) to any enquiries relating to a submission which a prospective Respondent is or may be investigating in connection with a Kickstart Fund submission. Consistent with the Terms and Conditions of this Expression of Interest, Project investigations and related risk analysis are the sole responsibility of Respondents.

      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 Expression of Interest process, Keystart may provide you with assistance during either the construction or operational phases, or both.

        BTR 1-01

        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).
        RTB 2-03

        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.
        • 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).
        RTB 2-02

        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.