Blackstone has bought Brisbane-based Student One for greater than A$500 million ($322 million), in accordance with sources, marking the US personal fairness big’s first scholar lodging funding in Australia and within the broader Asia Pacific area.
The acquisition includes three premium scholar housing belongings with a complete of two,300 beds in Brisbane’s central enterprise district and a 40-person built-in administration firm, a Blackstone spokesperson confirmed to Mingtiandi. The Manhattan-based agency goals to capitalise on a scarcity of conventional on-campus lodging within the Queensland capital, the place universities home solely 5 p.c of scholars.
“We see strong fundamentals in Australia for student accommodation — the country is one of the top destinations around the world for international students,” the spokesperson stated.
The deal enlarges a Blackstone scholar housing portfolio that already options American Campus Communities within the US and iQ Student Accommodation in Britain, reflecting the agency’s international thematic method of shopping for high-quality scholar lodging belongings in areas with robust underlying fundamentals.
The three Student One properties on Adelaide Street, Elizabeth Street and Wharf Street serve enrollees at a cluster of faculties and universities in and round a bend of the Brisbane River in Australia’s third-largest metropolis. Property consultancy JLL is known to have suggested on this newest transaction.
The housing is inside a 10-minute stroll of Brisbane CBD faculties and a 30-minute commute to the University of Queensland campus. The properties present a 24-hour concierge, pool, fitness center, devoted examine areas, barbecue space, and eating and laundry services.
Education is Australia’s largest non-resources export, and the nation is a top-four vacation spot for worldwide college students alongside the US, the UK and Canada. Factors working in Australia’s favour embrace relative affordability in contrast with America and Britain and a robust post-COVID rebound with scholar visa grants up 42 p.c versus pre-pandemic ranges, Blackstone stated.
In August 2022, funds managed by Blackstone — together with flagship property automobile BREIT — acquired American Campus Communities, the biggest developer, proprietor and supervisor of scholar housing communities within the US, for $12.8 billion (together with assumption of debt). Two years earlier, the agency led by co-founder, chairman and CEO Stephen Schwarzman had snapped up iQ Student Accommodation for £4.7 billion (now $5.9 million) in what was the biggest personal actual property transaction within the UK on the time.
Crowding Into Beds
Global fund administration titans proceed to discover an Australian scholar housing market dominated by a division of UK-based Scape, whose Scape Core Program holds the biggest portfolio of scholar lodging Down Under with 13,000 beds throughout 27 properties.
Singapore-based Centurion Properties has utilized to construct a 732-unit scholar housing complicated in Sydney for A$132.17 million to serve rising demand generated by a wave of returning abroad college students.
Last 12 months, Singapore sovereign fund GIC acquired a 49 p.c stake in a seven-asset scholar housing portfolio unfold throughout Sydney, Melbourne, Brisbane, Adelaide and Canberra for A$567.9 million, whereas Canadian funding big Brookfield entered the nation’s scholar lodging market with its first improvement mission in Melbourne.
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