Skip Ribbon Commands
Skip to main content

News release

Australia

Purpose-built student accommodation property in Melbourne comes to market – signalling an expected trend of increased investor interest in the student accommodation sector

RMIT Village in North Melbourne, with 456 bedrooms, comes to the market for the first time since it was developed by Transfield in 2005


AUSTRALIA, 22 JULY 2013 – RMIT Village in  North Melbourne, which provides 456 bedrooms of  purpose built student accommodation, is being offered for sale by Jones Lang LaSalle through an Expressions of Interest (EOI) campaign closing on 28 August.
 
Located at 5-17 Flemington Road, the building was formerly the Old Melbourne Hotel and was converted to student housing in 2005 by Transfield Holdings. RMIT Village is managed by Campus Living Villages Fund (CLV).

Jones Lang LaSalle’s Director of Student Accommodation Services, Conal Newland said RMIT Village presented an opportunity for investors to purchase operational student accommodation with development potential (subject to relevant approvals being obtained).
 
“RMIT Village has achieved 100% occupancy for the past 3 years.  It is located in the heart of the education precinct and is only a 5 minute walk from Melbourne University and a 5 minute tram ride from RMIT.

“The property also benefits from an agreement with RMIT University, under which the university has historically reserved up to 70% of the available beds at RMIT Village.  The Village has a high proportion of domestic students, mainly from country Victoria.
 
“Melbourne has a shortage of purpose built accommodation for students.  Jones Lang LaSalle estimates that the proportion of students in Melbourne living in purpose built housing is very low at only 7%.  There is a significant difference between Melbourne and other global cities like London, which has 21% of students living in purpose built accommodation.
 
“When you consider that 93% of students in Melbourne are currently residing at home or in private rental accommodation, the potential for growth in student housing is huge. 

“The projected pipeline of purpose built student housing that is either under construction or approved in Melbourne is also relatively low, at approximately 1,228 bedrooms, which represents 0.6% of total full time students studying in Melbourne.  We estimate there are approximately 198,429 full time students studying within the seven main universities located in Melbourne. 
 
“We are already seeing increasing investor interest in the student housing sector in Australia. 
 
“RMIT Village coming to market is significant, as we expect it will be the start of a trend where Australia moves from a phase of development-led student housing to more investor activity and transactions of existing properties.
 
“Whilst the development phase of new high-quality purpose built accommodation has rapidly increased in several Australian capital cities in the past 5 years, as of yet we have not seen any significant transactions of operational accommodation,” said Mr Newland.
 
RMIT Village also provides an opportunity for a purchaser to develop additional accommodation through “in-fill” development within the existing buildings and  conversion of the car park into accommodation facilities,  subject to the necessary development approvals.

RMIT Village is operated by CLV, which is one of the largest developers, owners and operators of on-campus student accommodation in the world.  CLV owns, manages or is currently developing over 35,000 beds at 50 properties in Australia, New Zealand, the United Kingdom and the United States.
 
RMIT Village is centred around a large landscaped courtyard garden area and pool and has a licensed café, BBQ area, TV and Foxtel lounge, gymnasium, games and pool room, bicycle storage and a shared study area.​