Pro-invest Group set to enter residential in Australia
Pro-invest Group has entered the residential market with its new flexible living model, developed to capture the extensive potential of co-living across Australia.
The company is set to own and operate approximately 2,000 apartments across 10 assets in its first tranche of development and anticipates scaling this to the size of their current hotel business, approximately 6,000 keys.
Pro-invest Group has been an active player in hospitality investment and operations around the world for more than three decades. They now manage one of the largest, and most sustainable, operating platforms in Australia, with 32 assets (6,000 keys) open and in development across all major markets and A$3 billion ($2.0 billion) of assets under management.
The firm is now actively pursuing co-living to maximize returns for investors in this sector. The seamless integration of hospitality in residential living is gaining momentum as property developers and investors acknowledge the immense value of infusing hospitality into residential projects, said the release.
Opportunities will focus on the conversion of existing assets — predominantly hotels — of up to 200 units, with new builds considered where appropriate. This includes identifying underperforming hotel assets that can be quickly and efficiently reimagined and repositioned by Pro-invest’s in-house development team. Pro-invest’s hotel management business will maximize yield from the asset as planning and preliminary works are undertaken.
Based in CBD and suburban locations, these co-living properties will attract a broad cross-section of tenants looking for smaller, self-contained studio and one-bed apartments, with shared community spaces and flexible rental options. This includes short-term serviced apartment options and longer-term rental leases.
“Our ‘Flexible Living’ model redefines what ‘home’ means in the modern era,” said Ronald Stephen Barrott, chair of Pro-invest Group. “We recognize that the growing number of renters today desire convenience, quality and the hotel-like amenities and services that have long been associated with hospitality. Pro-invest Group’s expertise in managing hotels and offices uniquely positions us to meet these evolving expectations, creating not just residences but the next generation of living experiences, all designed to maximize the compelling investment opportunity at play in Australia given the market size and dynamics.”
Australia's residential market is in a state of flux, driven by persistent affordability challenges and limited availability, resulting in low vacancy rates and rent increases of up to 14 percent in Sydney, Melbourne and Brisbane. This convergence of issues has given rise to a growing number of co-living investment opportunities, which have long been a successful and dominant part of many established rental markets including the United States and United Kingdom. The next generation of companies set to succeed in this segment are those that excel in property development and resident retention and satisfaction.
