Amalgamated Property Group Development Manager Daniel Potts in the residents’ lounge at Oaks Canopy: “We have no interest in selling this development and/or to be able to separately unit-title and sell the development as individual apartments.” Photo: Ian Bushnell.
Amalgamated Property Group has rejected any notion that its new Build-to-Rent (BTR) tower in Phillip could be converted to a for-sale product, saying it remains committed to the rental model and was there for the long haul.
Development Manager Daniel Potts said APG’s bid to add residential use to the building had been misinterpreted.
Mr Potts said this was to hopefully reduce the rates bill on the 156-unit Oaks Canopy at 13 Irving Street.
“We have no interest in selling this development and/or to be able to separately unit-title and sell the development as individual apartments,” he said.
“For the latter to occur, we’d require a completely separate Development Application.”
APG lodged a Reconsideration on 13 September after the Territory Planning Authority partially refused an amended DA for Oaks Canopy on 17 June, prompting some to question its commitment to the rental model.
It proposed various amendments relating to parking, storage, circulation, services and changes to the building, as well as adding residential use for the building.
All of these, bar the latter, were approved.
Included in the TPA’s reasons for refusal was that the amendment application did not demonstrate that sufficient sunlight was available to the residential areas Residential Tenancies Act.
Mr Potts said APG had made a significant investment in BTR and tenants should feel secure in their new homes, particularly with new protections under the Residential Tenancies Act.
“The success of our business will be in long-term tenant retention and our objective is to demonstrate how good BTR can be and have tenants stay with us for a long period of time,” he said.
“As we have not lodged to unit-title the development and have no intention of doing so, there is no risk to our current or future tenants.”
The 14-storey Oaks Canopy, one of a cluster of high-rise towers that make up the Oaks Precinct, opened in September, and the first tenants have moved in.
It was originally planned to be a build-to-sell tower in the precinct when the first DA was lodged in 2019.
However, Mr Potts said APG and development partner Base Developments decided to make the switch to BTR because they saw a gap in the market for quality rental accommodation.
“We saw this first hand after the completion of Trilogy, Ivy and Oaks stages 1 and 2, and the demand for rental apartments within those,” he said.
“Our original BTS scheme could have been undertaken successfully; however, we saw more long-term value for our businesses with the BTR scheme.”
Mr Potts said both businesses had invested heavily in BTR, setting up the management model and systems for Oaks Canopy and future developments.
“The results at Oaks Canopy speak for themselves, and we’re confident that we will surpass our occupancy targets by the end of the first calendar year,” he said.
Amenities include a media/function room, work hub, library, lounge and cafe on the ground floor, while outside there is a playground, exercise area, garden pavilion, vege garden and shared precinct gym.
An on-site manager and concierge services are there to ensure a smooth experience for tenants and resolve any issues that may arise.
Options start at $515 a week for a studio, one bedroom from $575 and two bedrooms from $630.
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