GIC buys stake in Australian student accommodation Singapore sovereign wealth fund GIC has formed a joint venture with Macquarie Capital to acquire a majority stake in Australian student accommodation company Iglu. GIC did not reveal how much the joint venture had invested in Iglu or how big a stake it had bought, but said in a statement yesterday the deal was the largest of its kind in the Australian student accommodation sector. Investments in Australasia make up 3 per cent of GICs portfolio, the fund said in its annual report for the year ended March 2013, while real estate makes up 10 per cent. The global head of Macquarie Capital Real Estate, Mr Chris Green, said in the statement: The student accommodation sector has excellent investment fundamentals with a well-documented supply shortage. We believe Iglu is an outstanding developer and operator of off-campus student accommodation in Australia, and as such, is the ideal business to work with us to build a portfolio of premium assets in the best locations across the country. Iglu, a specialist developer, operator and owner of purpose-built off-campus student accommodation, has a portfolio of about A$150 million (S$168 million) comprising more than 900 beds across three properties in Sydney and Brisbane. Iglu Central, near Sydneys Central Station, has been fully occupied since completion. Iglu Chatswood, opened in time for the 2014 academic year, is the only off-campus purpose-built student accommodation asset on Sydneys north shore. The third property, Iglu Brisbane, is a new development in the heart of the Brisbane central business district, due to open for the 2016 academic year. GIC and Macquarie Capital said they anticipate that further funding will be committed so that Iglu can build more properties close to educational institutions and public transport in cities where there is a shortage of suitable student accommodation. Australia is now the third most popular international student destination behind the United States and Britain, noted Iglu director Jonathan Gliksten. Domestic interstate student numbers have also grown strongly, and this increase in numbers has not been met by an equivalent increase in suitable accommodation, he said. We are pleased to welcome GIC and Macquarie Capital as investors in our business, Mr Gliksten said. This partnership confirms student accommodation as an institutional asset class in Australia and will enable Iglu to grow into a large and leading student accommodation provider in Australia. - See more at: business.asiaone/news/gic-buys-stake-australian-student-accommodation#sthash.PnZ4jRUJ.dpuf
Posted on: Sat, 01 Feb 2014 02:24:06 +0000
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