Singapore-based private equity real estate firm, SC Capital Partners Group, has recently completed the sale of its student accommodation asset in Sydney, Australia. According to a press release on March 3, the group has sold the property, located on Anzac Parade and Lorne Avenue in Kensington, at a significant premium to its acquisition price and 19% higher than its current book value. The buyer of the property is the University of New South Wales (UNSW) in Sydney.
SC Capital Partners had initially purchased the property in 2016 for a reported price of A$57 million. The recently concluded sale marks a successful exit for the group, which has achieved a profitable return on its investment in just a few years.
The property, which spans over 85,035 square feet, consists of purpose-built student accommodation with 233 beds and a ground-floor commercial podium. It is conveniently situated within 600 meters of UNSW’s Kensington Campus. The student accommodation component is fully leased to UNSW, with a fresh 20-year master lease signed in 2019. This long-term lease arrangement provides a stable and reliable income stream for the buyer.
This transaction has also contributed to the growing assets under management (AUM) of SC Capital Partners Group. As reported earlier, the group’s AUM has recently increased to $113 billion with the completion of this sale, fueling the race for the top spot among private equity real estate firms.
The sale of the student accommodation asset in Sydney is an indication of the strong demand for purpose-built accommodation and student housing in Australia. The country continues to attract international students, making the student accommodation sector a lucrative investment opportunity. SC Capital Partners Group’s successful sale is a testament to the group’s expertise in identifying and capitalizing on such prime investment opportunities.