Student accommodation giant buys Sydney site
Scape has picked up a permit-ready student accommodation site in Sydney’s inner south.
The 2017 square metre State Significant Development zoned Redfern holding comprising 1-5 and 6-8 Woodburn Street and 175-177 Cleveland, set it back $49.5 million.
The seller was EG Funds which bought it in two parts, in 2020 and 2021, outlaying $36.6m.
Last year, it obtained a permit for a six storey building with 200 co-living student accommodation apartments.
Colliers’ Matthew Meynell and James Cowan managed the on sale.
Scape is buying the holding under its The Living Company arm.
Also this week, we reported EG bought a suburban Melbourne business park for its Private Wealth arm, and is selling a Brisbane warehouse investment held nearly five years by the Australian Core Enhanced fund.
Hot sector
The permitted Redfern project also contains 778 square metres of non-residential space.
The deal comes two days since we reported Affordable Habitats sold a 37-room Castle-backed student accommodation complex at Newtown for $21.5m, or $581,000 per unit, a national record for an apartment of this type (continues below).
Last month meanwhile, a Kingsford student accommodation complex, with 40 dwellings, traded for $18m while in September, Weave Living outlaid $63m for a Glebe site with plans for a student accommodation complex.
Meanwhile, Japan’s Samta recently sold its stake in Unilodge, a $600m portfolio with over 45,000 beds.
“The Australian co-living market is experiencing strong growth and is seen as a potential solution to the housing crisis, particularly in major cities like Sydney and suburbs such as Redfern,” Mr Meynell said.
“This is one of the largest co-living site sales of the year in Sydney and capital interest in opportunities of this scale is rapidly increasing,” he added.
“With multiple street frontages and immediate proximity to Redfern and Central stations, the University of Sydney, UTS and the emerging Tech Central precinct, the property sits within one of Sydney’s most tightly held and rapidly evolving rental markets,” according to the executive.
Nine offers were received, Mr Cowan said.
“With fully approved, strategically located rental living projects in short supply, this campaign demonstrated that well capitalised groups are prepared to act decisively when genuine quality opportunities arise,” he added.
Co-established in 2023 by Stephen Gaitanos, who still leads it, Scape will manage c5000 beds in the precinct once the Redfern project is complete.
Subscribe to our newsletter at the bottom of this page.
