The Hinaki St Simplicity development Photo: Supplied
Not-for-profit KiwiSaver provider Simplicity is expanding its build-to-rent offerings as it promotes the financial returns on offer.
Managing director Sam Stubbs says pension funds overseas have long invested in the asset class.
But he conceded some people here have voiced their concerns saying it was not in the interest of maximising their returns.
Stubbs believed there was plenty of scope for more KiwiSaver funds to provide housing options.
"Pension funds owning rental homes is very common overseas," he said.
"We are the first KiwiSaver manager to invest in a business doing this at scale in New Zealand, but I doubt we will be the last."
Simplicity Living has completed its second development in Auckland in Onehunga named Oranga, he said.
Construction was underway for their third apartment offering in Mt Albert due to open next year.
More developments were in the planning stage on sites located in Mt Wellington, Remuera and Morningside.
"The underlying investment is in rental homes, which Kiwis really understand. And we expect the rental income generated by Simplicity Living will provide really reliable investment cash flow over time."
"We think it's the type of long-term enterprise that KiwiSaver savings should be looking at."
