Allianz spends $459m on two Carlton student accommodation assets

Artist’s impression of 18 Leicester Street, Carlton.

Allianz Real Estate is reportedly snapping up two modern student accommodation towers in Melbourne’s inner north Carlton.

The investments formed the Journal Student Accommodation Fund – which was 90 per cent controlled by Johannesburg listed Redefine Properties with the balance held by the Davidoff family’s Citiplan.

The vendors appointed JLL to market the assets late last year – part of plans by the South African group to dispose of R8 billion of non-core real estate.

Following the Melbourne deals, loan facilities worth $132 million would be settled.

Redefine’s financial director, Leon Kok, added the transaction “will also secure the release of 60m Cromwell Property Group shares from an encumbrance with Redefine’s intention that such Cromwell shares be sold on the open market to further advance…[the]…stated intention to strengthen its balance sheet and bolster liquidity”.

Allianz’s new Carlton properties

In the priciest deal, a two year old venue with 804 beds at 16-32 Leicester Street, sold for $269m.

The 16-level complex replaced the multi-level Kim Lim car park which Redefine purchased for $30m in 2016.

It is across the road from properties zoned as being in Melbourne’s CBD (story continues below).

Germany based Allianz has also acquired 500 Swanston Street, paying $190m.

With 587-beds, this facility was only completed in May.

It replaced the CFMEU headquarters, a site Redefine snapped up from the former owner occupier for $27m in 2017.

According to this item in The Australian, settlement on the latter property is dependent on certain international travel restrictions being lifted next year.

Earlier this month Allianz and Charter Hall teamed to acquire a $648m portfolio of four Aldi distribution centres on Australia’s east coast.

Last year, Scape Australia paid Urbanest $2b for a portfolio of 14 student accommodation complexes with a total of 6805 beds.

Three months earlier, with Goldman Sachs Group Inc, it invested $680m on a suite of dorms held by Atira Student Living, and sold by Blue Sky Alternative Investments Ltd.

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Marc Pallisco

A freelance property analyst and journalist, Marc is a co-founder of realestatesource.com.au.

Marc Pallisco