Boston University's Sydney student hub sold for $72.5m as Scape expands in Chippendale

Home to Boston University’s Study Abroad program since 2011, the residential and academic hub comprises 165 beds in three and four-bedroom cluster apartments, plus a rooftop terrace, communal kitchen, library, lecture theatres, laundry facilities, management accommodation and secure bicycle parking.

The off-market transaction, negotiated by Knight Frank’s Tim Holtsbaum and Luke Shackleton on behalf of Boston-based vendor TJAC Development, which has owned the asset since 2009, achieved about $440,000 per bed.

A new chapter for Boston University’s Sydney home

Now, The Living Co plans to reposition the asset for a wider student audience as demand for quality accommodation near Sydney’s major universities continues to outstrip supply.

Stephen Gaitanos, founder and joint chief executive of The Living Co, says the acquisition provides an opportunity to secure an established asset in a tightly held education precinct.

“We plan to undertake a refurbishment of the building, including refreshing the accommodation and communal spaces, and activating the ground floor with retail tenancies,” he says.

Boston University was among the first American universities to offer international education programs and today delivers more than 170 Study Abroad programs in more than 20 countries, with more than 2300 students participating in study abroad programs each year.

The Sydney program remains one of the university’s longest-running overseas academic offerings.

Inside one of Australia’s largest education precincts

The location is a key attraction for students, as it places them within a short distance of Darling Harbour and Hyde Park while providing easy access to the city’s cultural and entertainment offerings.

It is within walking distance of university campuses and just 200 metres from Central Station and Railway Square, where Atlassian Central, the world’s tallest hybrid-timber office building, will soon open alongside Tech Central, Australia’s leading innovation hub.

The University of Sydney in Camperdown is just two kilometres away, while the University of Technology Sydney (UTS) is a short 290-metre stroll and the University of Notre Dame is 1.3 kilometres away.

Together, the University of Sydney and UTS educate more than 115,000 students, creating one of Australia’s largest concentrations of tertiary students.

Beyond its education credentials, the asset occupies one of Sydney’s most vibrant inner-city neighbourhoods, with Chippendale evolving from a former industrial precinct into a sought-after mixed-use destination known for its creative industries, hospitality venues, cultural attractions and heritage warehouse conversions.

The suburb was ranked Australia’s coolest neighbourhood and seventh coolest in the world by Time Out in 2024, recognised for its mix of arts, food, nightlife and community amenities, as well as its position at the heart of a major education precinct.

Scape already operates accommodation nearby, including its Sydney Central property in Ultimo, reinforcing the strategic importance of the precinct to the group’s broader Sydney portfolio.

Chippendale and neighbouring suburbs, including Redfern, Haymarket and Ultimo, have emerged as the epicentre of the city’s student living market, with major operators such as UniLodge, IGLU and Y Suites also establishing a presence.

Opening 165 beds to Sydney’s wider student community

“Once completed, we will offer these rooms to the open market under our market-leading Scape brand … helping fill a significant shortage of high-quality accommodation across inner Sydney,” Gaitanos says.

His comments are underscored by CBRE research, which estimates unmet demand for around 25,000 purpose-built student accommodation (PBSA) beds in Sydney’s central and Inner West markets. Nationally, the sector faces a potential shortfall of about 185,000 student rooms based on the gap between student renters and available stock.

The Living Co plans to refurbish the accommodation and communal areas and activate the ground floor with retail before reopening the property to the broader student market.

The acquisition adds to The Living Company’s growing residential living platform, which includes build-to-rent projects under the Rent to Live Co. banner, and retirement living through Aveo. The group manages about  $17 billion in assets across its living sectors portfolio.

Why investors are piling into Australian PBSA

While Australia’s international student enrolments have eased from more than 1 million at their post-pandemic peak in 2024-25 to 752,784 enrolments in the year to May 2026, demand remains well above pre-pandemic levels of around 758,000 enrolments in 2019, continuing to support investment in purpose-built student accommodation.

The PBSA sector has gone from strength to strength in recent years, recording about $1.2 billion in transaction volumes across five major deals in 2026, according to Knight Frank.

One of the year’s largest transactions was Centurion Accommodation’s acquisition of the 732-bed EPIISOD facility in Sydney’s Macquarie Park for $345 million in January, setting a new benchmark of about $471,000 per bed.

Holtsbaum, partner and national head of alternatives at Knight Frank, says investor appetite for high-quality PBSA remains strong.

“The sale represents an outstanding result and demonstrates the depth of investor demand for PBSA assets within Sydney’s tightly-held university corridor,” he says.

“Investors are increasingly targeting the student accommodation sector due to its strong fundamentals, including ongoing student population growth, chronic accommodation undersupply and the prospect of attractive risk-adjusted returns.”

Despite increased investment, PBSA penetration remains low at about one bed for every 15 university students, compared with more mature international markets where one bed is available for every two or three students.

Australia is also emerging as a preferred destination for student housing capital as investors reassess opportunities in traditional markets including the UK, US and Canada, where policy changes affecting international students have altered investment dynamics and redirected attention to alternative education markets.

JLL reports Australia accounted for 61 per cent of Asia-Pacific student housing transaction volume in the first half of 2026, reinforcing its position as the region’s most established PBSA market.

Recent CBRE research found the five largest student accommodation providers account for about 70 per cent of Australia’s PBSA capacity. UniLodge is the largest operator with about 33,000 beds across 118 facilities, followed by Scape with more than 20,000 beds in 41 buildings.

In addition to The Living Co’s investment, the national pipeline could add another 34,000 beds from 2026 to 2029 if all projects proceed, according to CBRE.

Rental performance has also strengthened the investment case, with PBSA commanding a premium to traditional residential housing.

PBSA rents sit at a 12 per cent premium to two-bedroom apartment rents in the same precinct due to the inclusion of utilities, furnishings, security, study spaces, communal facilities and support services, CBRE found.

In Sydney, student rents typically range from $700 to $900 per student per week, compared with $550 to $650 in Melbourne and $500 to $600 in Brisbane, according to CBRE research.

Shackleton says the asset’s location, operating history and repositioning potential underpinned buyer interest.

“BUSAC is an exceptionally well-located asset within one of Australia’s most significant education precincts, providing immediate access to major universities, transport infrastructure and lifestyle amenities,” he says.

“The combination of secure income profile, future value add potential and proximity to Sydney’s major tertiary institutions made this a highly compelling investment opportunity.”