Singapore-based private equity real estate firm, SC Capital Partners Group, has recently announced the sale of its student accommodation asset in Sydney, Australia. The asset is located on Anzac Parade and Lorne Avenue in Kensington and has been sold at a significant premium to its initial purchase price, representing a 19% premium to its current book value. The University of New South Wales (UNSW) in Sydney is the buyer of this property.
SC Capital Partners had acquired the property in 2016 for a reported price of A$57 million. The purpose-built student accommodation spans over 85,035 sq ft and features 233 beds, along with a commercial podium on the ground floor. Its prime location within 600m of the UNSW Kensington Campus makes it a highly desirable property. The student accommodation component is fully leased to UNSW with a fresh 20-year master lease signed in 2019.
The sale of this asset is a major achievement for SC Capital Partners, indicating the success of their investment strategy. The private equity real estate firm has been actively pursuing opportunities in the Asia-Pacific region, with a focus on the capital cities of Australia. This transaction further solidifies their position as a leading player in the market.
According to a press release issued by the group on March 3, the sale of this property has resulted in a significant premium for SC Capital Partners, showcasing the strong demand for student accommodation assets in Sydney. With this divestment, the firm plans to reinvest the capital into other attractive investment opportunities in the region.
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The education sector in Australia has been a key driver of demand for student accommodation, with international students contributing significantly to the growth of this segment. Furthermore, the ongoing pandemic has highlighted the importance of owning purpose-built student accommodation assets, which provide stable and recurring income streams, even in times of economic uncertainty.
In conclusion, the sale of this student accommodation asset in Kensington is a testament to the success of SC Capital Partners’ investment strategy and highlights the strong demand for student housing in Sydney. The group remains committed to investing in the Asia-Pacific region and is well-positioned to seize future opportunities to generate attractive returns for its investors.