A fund managed by Australia’s AMP Capital has entered a 40-year contract with the University of Melbourne to deliver AUD300m (€192m) worth of student residences.
The AUD1.4bn AMP Capital Diversified Infrastructure Trust (ADIT) and the university will develop 954 beds across two facilities being refurbished and constructed at the University of Melbourne’s Parkville campus.
Under the Melbourne contract, ADIT and the university will first develop two landmark residences, “303 Royal Parade” and “Little Hall”, which will be the first to be operated under the University of Melbourne brand.
ADIT will also be the preferred funding partner for any additional student residence projects needed to support the university’s future growth. The University of Melbourne currently has around 51,000 students and 8,500 staff.
The investment adds to ADIT’s existing investment in the 650-bed Sydney University Village facility, which has been under ownership for more than 15 years.
ADIT portfolio manager, Brad Williams, said: “Tertiary education is Australia’s third-largest export sector, benefiting from significant increases in international enrolments, with annual growth of 11%.
“The concession agreement will support the University of Melbourne’s growth as a globally-esteemed education provider, while delivering long-term inflation-linked cash-flow for our investors.”