Du Val Build to Rent residential assets on the market

Two Auckland housing complexes owned by an entity associated with Du Val Group are for sale via CBRE, offering investors a rare entry point into the sought after living sector. 

CBRE, acting for the Government-appointed statutory manager of various entities associated with the Du Val Group, is marketing the Du Val Build to Rent Portfolio for sale by tender, closing on Thursday 13 March 2025 (will not be sold prior). 

The properties, at 69 McKenzie Road, Māngere Bridge and 2-6 May Road, Māngere East, are offered for sale either together as a portfolio, or individually as two separate assets.

Natasha Sarkar, Director of Structured Transactions & Advisory at CBRE says “positioned within the coveted, residential living sector, McKenzie Road and May Road present as diversified investment opportunities, with each asset of notable scale and presenting as proven operational assets.”

Both were purpose built as rental accommodation and consist of 72 and 99 modern studio units respectively and are situated in established residential suburbs that are proximate to employment hubs, amenities and transport links.

69 McKenzie Road, Māngere Bridge, provides 72 studio units across eight separately titled apartment blocks, with 63 car parks. The units, which are currently leased privately, will progressively, over time transition to the new 10-year lease to The Whānau Ora Community Clinic, which will eventually take over full occupancy of the property.


Upon full occupancy by Whānau Ora, the property will generate approximately $1.190m in net annual rental income. The lease to Whānau Ora also includes provisions for fixed rental increases in addition to market rent reviews subject to a hard ratchet.

2-6 May Road in Māngere East has 99 studio units across 11 separately titled apartment blocks, with 42 carparks. 36 of the units are currently leased to a registered Community Housing Provider, Home In Place, with the balance of units available as private rentals.


Currently, May Road is returning approximately $1.330m per annum net, with an occupancy of 93%.  Longer term, potential exists to explore headlease opportunities with groups such as Whānau Ora.

Brad Ross, Senior Negotiator of Capital Markets at CBRE, said the appeal of the two properties should be significant, given the defensive and stable nature of the asset class coupled with its Auckland positioning.

“The living and build to rent sectors are countercyclical to the performance of the wider economy, founded on the essential and non-discretionary nature of housing. These assets provide a secure income stream with low volatility which is highly desirable to commercial property investors seeking diversification,” he said.

Further, the assets provide opportunities for both passive and active investors; with McKenzie Road a passive offering subject to a new 10 year lease to a single tenant who assumes management of all units, whilst May Road offers active asset management potential.

“Given the nature of the offerings, we expect strong and wide interest in the assets,” says Ross.

The residential living sector’s strong fundamentals are a key driver of investor demand, said John Holmes, CBRE Senior Director of Capital Markets. 

“Demographic trends and housing affordability challenges are driving increasing demand for rental properties of this nature and opportunities for investors to enter the Auckland residential living sector at scale are seldom available, which is likely to make these assets highly sought after.”

“Build to rent typically involves multi-unit residential developments held under single ownership for long-term rental, which is an emerging model in New Zealand but well established in overseas markets such as the US and the UK, and is rapidly taking prominence across Australia.” Said Sarkar.

Auckland’s population has increased by 23% since 2010 and the city continues to attract new migrants, who tend to require rental accommodation as a start. Currently, 41% of Auckland households are renting, significantly higher than the national average of 34%.

Community and social housing needs further bolster the investment case for build to rent properties. There is an undersupply of one bedroom social accommodation, with 51% of the Auckland-based applicants on New Zealand’s housing register requiring one-bedroom accommodation, which aligns with the Du Val portfolio’s studio layout.