Redefine expands Australian student accomodation footprint

3rd July 2017

By: Megan van Wyngaardt

Creamer Media Contributing Editor Online

     

Font size: - +

JSE-listed Redefine Properties has acquired a new development site for student accommodation near Melbourne University, in Australia.

The 700-bed development, which will start in 2018, is expected to cost A$103.3-million, with Redefine’s share of the development cost set at A$93-million with 10% income yield.

The real estate investment trust is already developing an 804-bed, A$139-million site in the area.

“We remain focused on procuring high-quality properties and opportunities across strategic geographic locations and are very excited about the upside potential in student accommodation in Australia,” CEO Andrew Konig said.

“There is capacity for a lot more purpose-built student accommodation, as the market is undersupplied. With a capital uplift potential on these developments and return on equity well ahead of offshore funding costs, the investment proposition is compelling from a total return point of view,” he added.

A JLL Student Accommodation report has shown that, while total full-time students in Melbourne number just under 235 000, the existing supply of beds is around 19 200.

To watch Creamer Media's latest video reports, click here
 

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

The functionality you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION