Page 3 - Building a brand
P. 3
LAND LEASE
The Vantage at Vasse Clubhouse
US land lease sector offers best cap qualify for rent assistance. In the US, you
rates don’t get that same level of support. The
development profits in Australia are also
Rob also sees that there is still superior to what is obtained in the US.”
considerable room for overall growth in
Australia’s land lease sector. Scale required in a competitive market
He notes that the land lease sector However, the CEO believes that a level of
in the US houses up to 10% of the scale is required to remain competitive in
population. the current market.
“There is potentially higher penetration to “You need to have a good team, number
be had,” he said. one, so that you have the people in place
that you can delegate to and have
“In America, the most expensive or the confidence in their ability to execute,”
lowest cap rates are in the Build to Rent he said.
and land lease sectors, so they are actually
superior to A-grade office buildings and “There is also some benefit with referrals
industrial developments, whereas in and brand. We have strong referrals
Australia, that hasn’t occurred yet.” between our communities across our
various markets so if you can capture
Rob also points out that institutional leads, you can then move them between
investors have yet to recognise the quality new sites.”
of the cash flow in land lease in Australia.
Partnership opportunities available
“The cash flow in America is inferior
to the cash flow quality in Australia,” To this end, Serenitas is also on the
he explained. lookout for opportunities to partner with
other land lease operators.
“In Australia, the vast majority of
homeowners that live within our “We are very flexible because of the nature
communities are typical Pensioners so they of our capital,” he said.
24 | THE SOUR CE SATURDAY
