M&G Real Estate has entered the Australian purpose-built student accommodation (PBSA) market with the A$98m (€57m) acquisition of an asset in Melbourne.
The acquisition of the 369-bed Park Avenue asset expands M&G’s presence in the region’s living sector, increasing its total exposure to US$1.3bn (€1.2bn).
Jing Dong Lai, CEO and CIO of M&G Real Estate Asia, said: “Our entry into Australia’s PBSA market reflects our confidence in the region’s long-term fundamentals and the significant investment opportunities it offers our clients.
“Constrained housing supply continues to drive the need for high-quality rental housing, particularly in developed markets like Australia, and institutional investors have the long-term capital to invest in these assets that meet a societal need alongside providing investment returns,” he said.
David Askham, director of portfolio management, Asia Living, M&G Real Estate, said: “This acquisition demonstrates our conviction in the PBSA and broader living sectors, and supports our strategy to grow in some of the region’s most resilient and dynamic living markets.
“The student accommodation sector in Australia is underpinned by strong fundamentals and increasing international student demand, demonstrating an ability to deliver attractive risk-adjusted returns.”
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