In a $150 million deal, investment manager AMP Capital will take over the student accommodation concession for Melbourne Connect, a new campus and innovation hub for the University of Melbourne in Carlton.
The AMP Capital Diversified Infrastructure Trust is taking over the concession from student accommodation operator Urbanest, which was originally slated to run the student dorms as part of a Lendlease-led consortium developing the mixed-use project on the former Royal Women’s Hospital site.
The 42-year concession gives AMP Capital the right to collect rental revenue while taking responsibility for management of the postgraduate student digs. The 527-bed postgraduate facility is due to open in 2021.
AMP Capital struck a similar $300 million, four-decade concession deal with the University of Melbourne late last year involving two newly developed student dormitories.
That earlier deal with University of Melbourne involves 954 beds across two facilities. One is on Royal Parade in Parkville, at a site which the university acquired from the Salvation Army and redeveloped.
The other, to be known as Little Hall, is at Lincoln Square, a project supported by Financial Review Rich Lister Paul Little and his wife Jane Hansen.
In April this year, AMP Capital struck a $700 million concession-style deal to take control of a 4184-bed portfolio of student dorms at the Australian National University’s Canberra campus.
The investment house also manages the 650-bed Sydney University Village facility, an investment its held for more than 15 years.
“Adding another quality student accommodation concession to our portfolio is a great outcome for our investors,” ADIT portfolio manager Brad Williams said.
“It increases our exposure to a growing sector in Australia’s education industry and supports diversification in the ADIT portfolio.”
The Melbourne Connect precinct will also feature 35,000 square metres of A-Grade office space for the Melbourne School of Engineering, co-working and commercial tenants, retail shops, and a shared meeting and events space.
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