Beyond lifestyle habits and preferences, MODEL’s appeal to younger Australians and growing families is a values-based choice. Providing renters with a purpose-led brand choice will attract desirable tenants seeking longer tenancies in culture-rich pockets of the inner cities of Melbourne and Sydney. MODEL’s projected stabilised occupancy rate is approximately 3% higher than those of less sustainable Build-to-Rent assets.
Exemplary approach to sustainability. Enviable premium for investors.
MODEL commissioned the leader in commercial real estate and investment management, JLL, to conduct a global body of research to analyse well established BTR markets, across Europe, UK, and North America, looking at assets equivalent to sustainability benchmarks and certifications MODEL projects will deliver.
This research into the global BTR landscape demonstrates that with the added layer of sustainable, environmentally ethical building practices, these buildings continue to outperform traditional buildings in all facets – notably, in terms of long-term investor returns.
What makes sense for people and the planet also aligns with financial interests and a future-proofed asset class – and MODEL is set to apply this to an Australian context.
"MODEL: The Business Case for Sustainable BTR"
Findings from the groundbreaking research from JLL
5-10% Rental Premium Advantage
MODEL projects will offer Australian renters a housing choice based on their values – the antitheses of the transactional renter/landlord ‘relationship’ – resulting in high rental fees as tenants are prepared to pay extra for features and amenities that align with their values and worldview – energy-efficient, environmentally-responsible living in communities that give them security of tenure. By integrating exemplary sustainability certifications, the findings show there is a projected 5–10% premium on weighted average rent compared to non-certified multi-family assets.
98% Stabilised Occupancy Rate
Operational Efficiency Driving Over $1K Cost Savings p.a. Per Apartment
Projected to achieve an operational cost saving of approximately 5%, the report shows that MODEL’s approach to operational efficiency will lower utility and maintenance costs directly boosting net operating income, reinforcing the financial resilience of our assets.
10-60 Basis Points Cap Rate Compression
MODEL is designing for a very different future – a future with increased demand for decarbonised assets, with an approach that will avoid stranded assets for investors – from a climate standpoint, and importantly, a customer expectation standpoint. As the data in the report suggests, sustainable projects are more resilient than traditional buildings, offering investors a robust competitive edge, enhanced asset quality and reduced market risk.
The market shift towards ‘dark green’ assets
With global financial markets increasingly channeling capital to sustainable projects, MODEL’s projects of future-focused decarbonised assets resonate strongly with a wide range of investors. By aligning with globally recognised ESG frameworks—such as the UN SDGs, TCFD, and the EU Taxonomy—our strategy not only meets broad market demand but also qualifies us for Article 9 funds under the EU’s SFDR.
This financing advantage to potentially access dark green impact funds is further strengthened by access to sustainability-linked loans, which offer 5 to 10 basis points in cost savings compared to conventional lending structures.
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Learn more about MODEL’s principles set to deliver meaningful change for both investors and renters.