Starwood Capital Group has agreed its first debt transaction in Australia, providing a A$220m (€123.5m) facility to fund the construction of the world’s tallest student accommodation tower.
Starwood and purpose-built student accommodation provider Scape have partnered to fund the Scape Franklin project which is due for completion in early 2021.
Starwood is providing the $220m development facility on behalf of Starwood Property Trust.
The project will comprise 56 floors and 48,000sqm of gross floor area. Once completed the site will contain 812 purpose-built student bedrooms, 139 rooms as well as a 10,000sqm commercial podium and ground floor retail space.
Craig Carracher, executive chairman of Scape Australia, said: “The scale of the Scape Franklin project will allow Scape to create an urban campus in the heart of Melbourne’s education and innovation precinct and is consistent with our strategy to offer valued-based serviced accommodation in gateway cities.”
Lorcain Egan, managing director, Starwood Capital Group said: “This transaction is in line with our strategy of providing large loan investment and development financings across major real estate asset classes in North America, Europe and now in Australia.”