This article is from the Australian Property Journal archive
Singapore-based private equity real estate firm SC Capital Partners has sold a purpose-built student accommodation asset to the UNSW, in Sydney’s second major PBSA transaction following Shanghai group Morning Crest Capital’s acquisition.
The SC Core Fund (SCORE) has sold the facility located at 159-171 Anzac Parade and 1 Lorne Avenue Kensington at a significant premium to the price it paid and a 19% premium to current book value.
The Score fund acquired the property in July 2016 for $57 million.
Located within 600 meters of the UNSW Kensington Campus, the 7,900 sqm property comprises 233 beds, 43 car parking spaces with a ground-floor commercial podium and is fully leased to UNSW. It was sold with a 20-year master lease signed in 2019.
SC Capital Partners chairman and founder Suchad Chiaranussati said since acquisition in 2016, Sydney’s student accommodation market has flourished as enrolments have increased significantly in the undersupplied sector.
“This high-profile asset has delivered excellent value and return for our investors. As an investment manager committed to key investment thematics with strong demographic driven tailwinds, we were an early mover in the highly sought after student accommodation sector. Other high conviction strategies that are a key focus for the firm include hospitality and data centres, where we continue to see a strong pipeline,” said Chiaranussati.
The sale was brokered by David Curtis, Louise Burke, and Raphael Sebban of Cushman & Wakefield in conjunction with JLL’s James Barber, Luke Billiau, Jack Bergin, and Andrew Rojek, with interest from both domestic and offshore investors.
Meanwhile this is the second major PBSA transaction in Sydney in less than a week after Shanghai-based asset management group Morning Crest Capital acquired a facility in Sydney’s north as reported by Australian Property Journal.
A private family sold Dayman Apartments, a 74-bed facility in Marsfield close to Macquarie University in an off-market deal, for just over $24 million.
Colliers International’s Asia Markets national director Joseph Lin brokered the deal.
Interest in the PBSA remains strong as Australia remains undersupplied, and will continue to experience strong demand driven by robust rental growth and a positive macroeconomic environment.
In December US giant Greystar, backed by the Australia’s Future Fund bought seven campuses for $1.6 billion.