Scape Australia has converted its flagship purpose-built student accommodation (PBSA) fund into an open-ended core fund, which will hold A$6bn (€3.6bn) worth of assets, with UBS Asset Management joining as a new investor.
The Scape Core Fund will acquire a A$1.9bn portfolio of eight assets funded by fresh equity injection of A$1bn from existing investors - APG, Bouwinvest, Ivanhoe Cambridge and South Korea’s National Pension Service. The latter last week increased its commitment to Scape with an additional A$700m.
Stephen Gaitanos, Scape Australia co-founder and CEO said the change would provide efficient and immediate access to a diversified portfolio of high-quality PBSA assets.
“The growth opportunity and requirement for affordable and smart housing solutions is unparalleled and we look forward to continuing our successful track record, whilst expanding our high-profile investors,” Gaitanos said.
The company said the fund’s new structure would offer investors strong cash flow and growth potential from student housing while removing the risk of forced exit and enabling the fund to continue to attract capital and grow.
Scape’s original core fund was set up in 2019, initially as a closed fund. The fund will own 16,000 student beds including its largest asset, Scape Franklin Street in central Melbourne.
Scape is planning its operations to span the living sector from its PBSA base, where it has established itself as the largest player in the country.
Last October Scape Australia formed a joint venture with APG aiming to develop a portfolio of build-to-rent assets, valued upwards of A$1bn.
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