AMP Capital infrastructure funds invest €444m in student accommodation

AMP Capital infrastructure funds have invested more than A$700m (€444m) to acquire a student accommodation concession in the capital of Australia.

AMP Capital Diversified Infrastructure Trust (ADIT) and AMP Capital Core Infrastructure Fund (CIF) bought the Australian National University (ANU) asset from Infratil and funds managed by Morrison & Co.

Brad Williams, ADIT portfolio manager and investment director, told IPE Real Assets that the transaction would lift the group’s total student accommodation platform to more than 5,800 beds.

The latest transaction will boost the platform by almost 4,200 beds across 10 existing residences on the ANU campus in Canberra.

Williams said AMP Capital would be ANU’s capital partner should it wish to expand its student accommodation facilities in future.

The original concession was established in 2016 and includes existing long-term outsourced facilities management arrangements. ANU retains responsibility for operations.

“AMP Capital has been successfully invested in university student accommodation partnerships for over 15 years,” said Williams.

AMP Capital first entered the sector in 2003 when it established a partnership with the University of Sydney, he said. Today, that partnership runs 650 beds.

Williams said AMP Capital has been able to leverage off the partnership to secure an agreement with the University of Melbourne late in November. It now runs 950 beds for the University of Melbourne (ADIT owns 100% of the Melbourne investment).

“Our large-scale portfolio of beds now provides our investors with access to long-term inflation-linked contracts with Australia’s top 3 ranked universities,” Williams said.

“This sector attracts strong interest because of the demand for accommodation by foreign students, and has delivered strong returns over the years.”

Infratil, which is listed in both New Zealand and Australia, currently jointly owns the ANU student-housing portfolio with other funds, managed by Morrison & Co.

Mark Mudie, Morrison & Co executive, said the sale enabled Infratil to focus on investments in its established platforms, targeting renewable energy, retirement services and growth in data and connectivity.

 

Related images

  • Student Housing

Have your say

You must sign in to make a comment

IPE QUEST

Your first step in manager selection...

IPE Quest is a manager search facility that connects institutional investors and asset managers.

  • QN-2548

    Asset class: Fixed Income, Emerging Market Debt Hard Currency (Active).
    Asset region: Emerging Markets.
    Size: CHF 300-400m.
    Closing date: 2019-07-30.

  • QN-2549

    Asset class: Fixed Income, Emerging Market Debt Hard Currency (Passive or Passive Enhanced).
    Asset region: Emerging Markets.
    Size: CHF 300-700m.
    Closing date: 2019-07-30.

  • QN-2550

    Asset class: Fixed Income, Emerging Market Debt Local Currency (Active).
    Asset region: Emerging Markets.
    Size: CHF 250-350m.
    Closing date: 2019-07-31.

  • QN-2551

    Asset class: Fixed Income, Emerging Market Debt Local Currency (Passive or Passive Enhanced).
    Asset region: Emerging Markets.
    Size: CHF 250-350m.
    Closing date: 2019-07-31.

  • QN-2552

    Asset class: Fixed Income, High Yield (Active).
    Asset region: High Yield (US).
    Size: CHF 500-600m.
    Closing date: 2019-07-29.

  • QN-2553

    Asset class: Fixed Income, High Yield (Passive or Passive Enhanced).
    Asset region: High Yield (US).
    Size: CHF 500-1'100m.
    Closing date: 2019-07-29.

  • QN-2554

    Asset class: Global Real Estate (Equity, unlisted Funds).
    Asset region: World (ex-Switzerland).
    Size: CHF 200 mn (potential for further growth).
    Closing date: 2019-08-07.

  • QN-2555

    Asset class: Real Estate.
    Asset region: European.
    Size: EUR 50 - 100 million.
    Closing date: 2019-07-22.

  • QN-2556

    Asset class: FX Hedging.
    Asset region: Global.
    Size: Mandate size of CHF 1.5 bn.
    Closing date: 2019-08-09.

  • QN-2557

    Asset class: All/large Cap Equities.
    Asset region: China A-shares.
    Size: Unit linked platform (0m USD in initial investment).
    Closing date: 2019-08-01.

Begin Your Search Now