SC Capital, UNSW trade student accommodation complex
UNSW Sydney has acquired the Jacaranda Hall student accommodation complex it tenants, near its Kensington campus, in the city’s inner south east, for a speculated c$85 million.
The six storey facility covering 2410 square metres across 159-171 Anzac Parade and 1 Lorne Avenue was offloaded by Singapore’s SC Capital Partners after nine years.
With 7884 sqm of lettable area, it contains 233 beds and podium level retail.
UNSW had 13.5 years left to run on a lease.
Kensington is about four kilometres from Sydney’s CBD.
Development upside
SC Capital Partners paid $57m for the Kensington property.
The speculated $85m disposal price, which couldn’t be confirmed, is said to be 19 per cent over book value (story continues below).
“The asset’s super-prime location within Sydney’s sought-after eastern suburbs provides exceptional accessibility and lifestyle amenities, making it a highly desirable investment,” Cushman & Wakefield’s David Curtis, who marketed the asset with Louise Burke and Raphael Sebban and JLL’s James Barber, Luke Billiau, Jack Bergin and Andrew Rojek, said following the sale (story continues below).
“Uncapped market reviews every five years, with the next review in 2029, provide opportunities for enhance rental growth,” he added.
“Additionally, favourable planning controls offer potential for future height uplift and redevelopment, subject to council approvals,” according to the executive.
Student accommodation operators, institutional investors and other universities looked in, Mr Barber said.
Also today we are reporting M&G Real Estate is paying $97m for a Melbourne student accommodation complex with 368 beds.
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