Student accommodation developer and operator Scape Australia has formalised a $1-billion joint venture with Dutch pension investor APG Asset Management N.V. and real estate investor Ivanhoé Cambridge.
The fund is aimed at developing purpose-built student accommodation assets for Australia’s thriving student housing market.
It is Scape’s third joint venture fund, which is subject to regulatory approval.
The joint venture would be seeded with a prime development opportunity of about 1000 student apartments in the Queen Victoria Market, in partnership with Lendlease and the City of Melbourne.
The deal leverages Scape’s existing portfolio and operational experience with about 17,200 apartments currently in play, with low vacancy rates and strong rental growth underpinning its expansion.
Stephen Gaitanos and Craig Carracher (pictured in main image) founded Scape Australia in 2014 and are now the largest residential-for-rent owner and operator in Australia, managing more than 36 operational assets with 10 purpose-built student housing and urban living assets under development.
Scape has more than 700 staff and has acquired 22 major development sites since 2015.
APG head of Asia-Pacific real estate Graeme Torre said student housing was at the coalface of housing affordability.
“The strategy to develop and operate PBSA properties in key gateway cities in Australia is entirely in line with the urbanisation megatrend, which also aligns with our sustainability aspirations,” Torre said.
“The PBSA sector is often considered the entry level for young renters in the residential sector and as a consequence helps address important issue such as housing affordability and availability.
“Professionally managed student accommodation buildings with improved energy efficiency and carbon footprint support our goals around responsible impact investing. We have had a very successful partnership with the Scape team who have proven themselves to be capable of developing and managing first-class student accommodation assets.”
Ivanhoé Cambridge head of Asia-Pacific George Agethen said the partnership provided exposure to the “institutionalisation of the living sector in APAC”.
“The exposure to this development JV complements our recent investment in Scape Core Program and will further diversify our APAC portfolio with defensive cashflows that are driven by the favourable demographics in the region and the demand for quality education in Australia.”
Gaitanos said the Scape portfolio was at full occupancy and there was a “clear need for more well designed and located rental accommodation in Australia”.
APG is the largest pension provider in the Netherlands and manages about $935.5 billion in pension assets globally.
