Singapore-based private equity real estate firm, SC Capital Partners Group, has announced the sale of its student accommodation asset in Sydney, Australia. The property, situated on Anzac Parade and Lorne Avenue in Kensington, was sold at a “significant premium” to its acquisition cost and a 19% premium to its current book value, according to a press release issued on March 3.
The buyer of the asset is the University of New South Wales (UNSW) in Sydney, who will now take over ownership of the property. SC Capital Partners had acquired the property in 2016 at a reported cost of A$57 million. This latest sale marks a successful exit for the group after five years of ownership.
The purpose-built student accommodation spans over 85,000 square feet and comprises 233 beds as well as a ground-floor commercial podium. Its proximity to the UNSW Kensington Campus, within 600 meters, makes it a highly desirable location for students. Currently, the student accommodation component is fully leased out to UNSW, with a 20-year master lease signed in 2019.
This transaction highlights the increasing competition in the global private equity real estate market, with firms vying for prime assets to add to their portfolios. SC Capital Partners’ success in securing a premium sale for their Sydney student accommodation asset is a testament to their strong track record in the industry.