ASX-listed giant buys into Melbourne accommodation building
Aspen Group Limited has purchased 81 student apartments near Deakin University’s Burwood campus.
The Sydney based group is paying $8.11 million, or $100,000 per dwelling, for the c24 square metre modern suites with a double bed, lounge/dining, kitchenette, bathroom and balcony.
They form part of a four level, 10 year old complex at 386 Burwood Highway, with 136 self-contained flats; the balance are owned by third parties.
The building also includes communal facilities: a reception area, library and laundry, storage and basement parking.
The block features an orchard garden too.
Seven offers came in following an expressions of interest campaign, CBRE’s David Minty, who marketed the property for a liquidator and funder with Nathan Mufale and Jing Jun (JJ) Heng, said.
The underbidder was a Singapore based investor, he added.
After agreeing to buy 386 Burwood Hwy last December, ASX-listed Aspen settled on March 1.
Elsewhere this month in Burwood, 17 kilometres east of Melbourne’s CBD, Ryman Healthcare opened a retirement village and aged care complex – part of its continuum of care model – on part of the ex-Brickworks site.
386 Burwood Highway
Abutting Camberwell, Burwood’s median house price is $1.48m, according to REA Group – 54pc higher than metropolitan Melbourne ($961,000).
The average unit in the suburb cost $855,000 – according to the group, for February, 2024 – 66pc more than across the city (story continues below).
Some 28,000 staff and students attend the Deakin University Burwood campus, part of which is also accessed from Elgar Rd.
Chadstone Shopping Centre is about six kilometres away.
The 386 Burwood Hwy parcel is zoned Residential Growth, permitted for student accommodation.
OC control, changes coming
Student Housing Australia leases the Burwood Hwy apartments on residential tenancy agreements lasting 12 months; the average rental is $270 per week.
SHA has also managed its units – though this will likely be assumed by Aspen.
The incoming owner will also control the owner’s corporation, with 61pc of strata entitlements, “for matters requiring resolution including property management”.
It is expected to look to buy more units in the complex – however, it might have to dig deeper – some of those dwellings have traded for up to $138,000.
A rebrand, possibly to Aspen’s CoVE or UniResort brand, is likely as well; the use is expected to stay student accommodation.
Aspen will fund the asset using equity.
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