Tuesday, 04 July 2017 07:45

Redefine expands its student accommodation pipeline in Australia with purchase of an attractive second site in Melbourne

Written by
Rate this item
(0 votes)

JSE-listed diversified Real Estate Investment Trust (REIT) Redefine Properties (JSE: RDF) continues to build an exceptionally diversified and quality property platform after acquiring another attractive development site for student accommodation in Australia.

 

Redefine currently has a A$139 million development underway in Melbourne catering for 804 beds. The new site at 500 Swanston Street is very well located in relation to Melbourne University with potential for up to 700 beds – development is anticipated to begin in 2018.

“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,” says Redefine CEO Andrew Konig.

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

“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,” says Konig.

The development is expected to cost A$103.3 million. Redefine’s share of the development cost is A$93 million and it is looking to develop the site at about a 10% income yield.

The development falls squarely in line with Redefine’s stated intention to expand its presence in the purpose build student accommodation market in Australia, build scale to develop a specialist student accommodation fund and leverage its international management capacity.

“Despite all the doom and gloom out there are still developments afoot. Our agile approach to development enables us to remain on course towards sustained growth, regardless of market volatility. We look forward to reaping rewards from participating in what we believe is an exciting market which has the potential to expand,” says Konig.

 

Last modified on Tuesday, 04 July 2017 17:07

Most Popular

Hyprop Investments subsidiary acquires flagship shopping centre in Sofia, Bulgaria

Jul 20, 2017
Pieter Prinsloo Hyprop CEO
UK-based Hystead Limited (Hystead), co-owned by Hyprop Investments Limited (Hyprop) and…

Growthpoint Properties breaks ground on R600 million prime office development in Centurion for Exxaro’s new corporate headquarters

Jul 18, 2017
Exxaro Building exterior view
Leading SA REIT Growthpoint Properties has commenced its multi-million Rand development…

Trematon Capital Investments diversifies portfolio with investment in UK Real Estate Private Equity Market

Jul 20, 2017
Arnold Shapiro Trematon
JSE listed Trematon Capital Investments Limited, the Western Cape focused actively…

The evolution of Cape Town’s skyscrapers

Jul 19, 2017
Stuart Chait Chairman of Land Equity Group Med
Lofty, proud and soaring, the first skyscraper buildings in Cape Town were built more…

Encouraging news for home buyers - repo rate now 6.75%

Jul 20, 2017
Andrew Golding Pam Golding
Home buyers and those with mortgages will be encouraged by today’s announcement by the…