Dutch pension fund asset manager APG has entered into a joint venture with a UK developer to build high-end student accommodation in Australia.
Dutch pension fund asset manager APG has entered into a joint venture with a UK developer to build high-end student accommodation in Australia.
APG has committed an initial A$220 mln (€155 mln) of equity to the partnership with Scape Student Living, which aims to replicate Scape’s success with similar accommodation models in London and other UK locations.
The joint venture has already acquired two development sites near RMIT University in Melbourne where it aims to deliver 1,500 beds by 2018. Its wider aim is to build a portfolio of 5,000 beds across Sydney, Melbourne, Brisbane, Canberra and Adelaide.
Scape also manages GCP Student Living, the UK’s first REIT focused exclusively on student housing.
Sachin Doshi, head of private real estate investments, Asia Pacific at APG, said the deal was in line with the company’s strategy of targeting sectors in the region that are becoming institutional.
He said: ‘With tertiary education being a key anchor of Australia’s economy, continued growth of international students from Asia and chronic shortage of purpose-built student accommodation, we strongly believe that the sector provides superior risk-adjusted returns potential and is poised to become a mainstream asset class in the coming years.’