Ellerslie Racecourse redevelopment: 330 build-to-rent homes to be constructed

Hundreds of Aucklanders will have the opportunity to live in long-term rentals next to Ellerslie Racecourse now that 330 build-to-rent apartments and townhouses are planned for the site.

Developer Simplicity Living says it hopes to finish the homes in 2026 after yesterday revealing it had bought the 1.4 hectares of Remuera land from Auckland Thoroughbred Racing - the racing body that owns Ellerslie Racecourse.

Simplicity Living’s managing director Shane Brealey said the location is “impeccable” for long-term rentals, being within walking distance of Greenlane shops and public transport.

“Here is a chance for ordinary New Zealanders to rent quality homes for the long term, nestled in a beautiful, green environment,” Brealey said.

The sale comes as build-to-rent projects - designed to be owned and rented out long-term rather than sold off to multiple buyers - have grown in popularity in recent years.

Kiwi Property - a major New Zealand property owner of malls and offices - announced in 2021 it would spend $442 million building 540 build-to-rent apartments on former carparks and old housing sites near its Sylvia Park and LynnMall shopping centres.

Then after forming last year, Simplicity Living said it aimed to build 10,000 homes for long-term rent across New Zealand.

It has so far completed and rented 159 homes in Ōnehunga and Point England, with 345 to be under construction by the end of this year, and another 800 in development, it said.

The build-to-rent homes are owned by the Government’s KiwiSaver voluntary retirement savings scheme and by Simplicity, a fund manager for the scheme.

Simplicity got into build-to-rent development in 2022 when it was gifted private developer NZ Living from owners Shane and Anna Brealey, Simplicity managing director Sam Stubbs said.

Brealey, an ex-construction chief with more than 30 years of commercial building experience, also agreed to lead the new developer for free during its first years.

“They are some of the greatest philanthropists of New Zealand that you would never know,” Stubbs said about the Brealeys to media outlet Stuff last year.

“This is a massive give-back to the country.”

Brealey said the latest purchase of Ellerslie Racecourse land continued the group’s “mission to provide thousands of Kiwis what’s already common overseas - quality, long-term homes for rent”.

“We want nurses, teachers and ordinary New Zealanders to have the option of renting for the long term,” he said.

The land sale was also made possible due to a major redevelopment of Ellerslie Racecourse.

Auckland Thoroughbred Racing (ATR) - the owner of the racecourse - had earlier closed its track for more than a year as a new race track surface is built.

The body has also been looking to maximise its use of racecourse land by earlier selling a separate 6.2ha section of land to developer Fletcher Living, which plans to build 370 townhouses, apartments, and standalone homes.

The Auckland Council had earlier valued the 46ha property at 100 Ascot Ave where the Ellerslie Racecourse is at $210m.

Of the $210m valuation, only $30m is buildings. All the rest is the land.

Annual rates bills cost $397,886.

ATR filed its annual report last October. In the year to July 31, 2022, it had $12.08m revenue but chief executive Paul Wilcox told the Herald earlier this month the result was disappointing.

Operating expenditure was $20m and the net loss before fair value property sales and revaluations was $7.6m.