This article is from the Australian Property Journal archive
A 131-bed portfolio comprising three fully leased inner-Cairns accommodation assets has hit the market with potential for use as student accommodation, co-living or short-term rentals, amid the regional tourism and education city experiencing a heated rental market.
Originally designed for student accommodation, the Parramatta Park properties at 92 Martyn Street, 4 Pembroke Street, and 50-52 Gatton Street, operating under MiHaven Living, are all within 400 metres of one another.
MiHaven, founded by James and Sarah Mort in 2011, offers a hybrid operational model that captures a range of tenant genres, including working professionals, FIFO workers, placement workers at Cairns’ hospitals, airport and shipping industries, students, specialist disability accommodation, and more.
Gross income from the portfolio provides is forecast to reach $2.03 million in 2024. The portfolio has a young average asset age of around five years and experienced an income growth rate of 26% per annum since 2019, with occupancy trending at 97.0% over the past 12 months.
“With some of the country’s best tertiary education providers, facilities and innovation hubs on its doorstep, the MiHaven Living accommodation portfolio offers an attractive investment opportunity to capitalise on Cairns’ strong rental growth in the face of a tight student and residential housing market which looks only to increase as the city continues diversification from the traditional tourism sector,” said Paul Savitz of Savills, which has the listing.
Residential vacancy in Cairns has been recorded at just 0.6%, with only 65 properties to rent across the city, and apartment rental growth recording 18% year-on-year. The Advance Cairns 2024-2025 Queensland Budget Submission Report states there is “currently an estimated shortage of 2,000 student accommodation beds to meet the demand of international students wanting to study in Cairns”.
“Limited housing supply, no new projects under construction and historically low vacancy rates makes the opportunity to acquire a portfolio of assets like these, so close to retail, transport, healthcare and education facilities, an outstanding one,” said Savills’ Conal Newland.
The portfolio is in proximity to James Cook and Central Queensland University campuses, TAFE Queensland, and several colleges and schools, which capture over 32,000 international students visiting the region per annum from more than 34 countries.
Expressions of interest close Wednesday, 1st May.