New build with 5.4% return, 9 year lease in Auckland


We have an opportunity that will allow you to positively contribute to the housing crisis and invest in a high yeilding newbuild apartment with this brand new Commercial investment in transitional housing.

With a net yield estimated at 5% pa, a 9 year lease to the developer (backed by a government funded Community Housing Provider) and fully managed, this is passive investing at its best.

This brand new development consists of 15 unit title studio apartments purpose built to serve as affordable residential housing. Set over 3 blocks and 3 storeys, each unit comprises of 5 fully furnished double bedrooms with an ensuite bathroom (20sqm each), a shared kitchen, lounge and laundry area. The apartments are a large 132sqm, occupying half of a floor in each block.

Each room is furnished with a queen bed, table and chairs, wall-mounted 43” TV and wardrobe. Each room has its own kitchenette bench including fridge, microwave, toaster and kettle.

The building construction involves a reinforced concrete slab, timber structural frame, aluminium joinery, Palliside and Titan board exterior cladding, and Colorsteel long run roofing. The site is fully fenced with 2 designated carparks per apartment, extensive landscaping, auto controlled vehicle entrance gate and a paved outdoor communal area.

The benefit of little maintenance is a clear advantage of a new build property. Alongside this, there is provision for any damage to be rectified under the terms of the lease.

The Model: Eight years ago, Clarke Group developed a specialised form of residential accommodation called StudioHomes, which Henderson Valley Studios is based upon. This model provides affordable, flexible rentals for tenants and strong rental returns for investors. The furnished complexes are strategically placed to meet a real need and takes advantage of key infrastructure in growth locations.

These apartments are due for completion in July, giving you income from day 1.

The Tenant: Clarke Group was born out of a vision to create a flexible, affordable housing solution that benefits everyone. Numerous residential complexes (based on its StudioHomes model) have been successfully delivered around Auckland, with further projects due for completion in the next few months totalling over 500 studio bedrooms. In addition to construction, Clarke Group also operates a property management division, which provides services to tenanted StudioHomes. Previous developments completed by Clarke Group over the last 8 years have achieved 90-100% occupancy.

Government funded CHPs: Community Housing Providers are a collection of not-for-profit organisations who are committed to increasing the supply of affordable, healthy housing options. CHPs who are registered can partner with the Ministry of Housing and Development (HUD) to lease housing in markets that are significantly under supplied, like Auckland. The current government has acknowledged a chronic shortfall of affordable and social housing, ensuring continual demand for this type of development.

Unit 13 is set aside as an administrative premises for on-site staff - lease terms remain the same.

  • Estate type: Stratum in Freehold
  • Rental status: $7,533.33 per month
  • Rental appraisal:9 year lease
  • Floor area: 132sqm
  • Land area: 
  • Bedrooms: 5
  • Bathrooms: 5
  • Car parking: 2
  • Rates: $2,100.33
  • Body corporate fee: $4,852.67

Ormiston Hospital and Ormiston town centre and Botany junction are a few minutes away. 15 minutes from Sancta Maria College and Primary.

  • $1,670,000
  • Gross yield: 5.4%
  • Rental appraisal: 9 year lease
  • Annual rates: $2,100.33
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Kunal Mehta

Licensed Salesperson
REAA 2008