Kiwisaver provider Simplicity to build 600 long-term rental houses in Queenstown

- Simplicity Living buys site in Queenstown for housing development
- Aims to build up to 600 build to rent homes over coming years
- Project valued at up to $500 million
- Kiwisaver provider Simplicity to bankroll project -- sees steady, strong returns
- Kiwisaver provider Simplicity is to spend hundreds of million dollars on building up to 600 long-term rental houses in Queenstown.
Kiwisaver provider Simplicity is to spend hundreds of million dollars on building up to 600 long-term rental houses in Queenstown.
It has bought a six-hectare site on Ladies Mile for the build-to-rent development aimed at answering the need for affordable housing in the central Otago town.
The head of Simplicity, Sam Stubbs, said the development stacked up financially and socially, and was the sort of investment that Kiwisaver funds should be looking at.
"This is another example of the sort of thing our Kiwisaver scheme can help make possible. We think it's a good long-term investment for our members and helps provide warm, dry homes for Kiwi families, in a region that urgently needs them."
He said it was the first development outside of Auckland for its housing arm, Simplicity Living.
"We've been looking around the country, and Queenstown is the obvious place, which needs good long-term rental options for people who work in the town -- nurses, teachers and cops some of whom are now commuting from Cromwell now."
Stubbs said Simplicity had looked at expanding into Wellington and Christchurch, but was not convinced at the moment.
He said the capital had infrastructure risks such as earthquakes and water, while the commercial return in Christchurch did not not stack up because an oversupply of properties has lowered returns.

Location of the planned Simplicity housing development in Queenstown. Photo: Supplied / Simplicity Living
Queenstown game changer
Queenstown mayor Glyn Lewers said the development was "much-needed".
"The addition of up to 600 new Build-to-Rent homes will be a game changer for our community, offering secure long-term rentals.
"It's a tangible step forward in delivering [part] of the Joint Housing Action Plan - working with developers to facilitate and deliver diverse housing options."
The development site is located near Remarkables Park, close to planned schools, shops, and transport links.
The homes would be built primarily using concrete, brick, and local schist, with high thermal and acoustic ratings, solar panels, rainwater harvesting and common use facilities.
The Shotover Bridge is a 10-minute walk away, and Queenstown Airport is just a five-minute drive away.
Simplicity is currently building just under 900 homes in various parts of Auckland.