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News release


Large student accommodation asset leased to UNSW Global offered for sale in Sydney’s Eastern Suburbs with secure income from global university tenant, price expectations in excess of $50 million

​A modern purpose-built student accommodation asset in Sydney's thriving Eastern Suburbs leased to UNSW Global is being offered to the market with price expectations in excess of $50 million.

The property, UniLodge @ UNSW, is located at 159-171 Anzac Parade in Kensington. The student accommodation has been fully leased to UNSW Global since the building was constructed in 2005. The current lease expires in mid-2020 with a further 15 years of options and is approximately 400 metres from the UNSW campus. The property also provides a small amount of ground floor commercial and retail space.

The asset is being marketed on behalf of a group of private investors by JLL's Head of Metro Sales and Investments, Sam Brewer, National Director of Student Accommodation, Conal Newland, and National Director of International Investments, Ben Hunter in conjunction with Knight Frank's Head of Industrial Investments, Australia, Eugene Evgenikos, Head of Institutional Sales, Australia, James Parry and Head of Asian Markets, Australia, Dominic Ong. An Expressions of Interest campaign closes 26th November 2015.

It follows the sale of the RMIT Village in North Melbourne in early 2014 for $60 million, in a deal also brokered by JLL involving Mr Newland.

Mr Brewer said, "This property is an excellent core plus investment opportunity, offering an immediate secure income from a blue chip tenant and significant redevelopment potential in the future. The central location provides access to a range of amenities and transport options, which will be further strengthened by the construction of the CBD and South East Light Rail. The high profile location on Anzac Parade is popular with retail tenants and offers opportunities to reposition this accommodation."

According to Mr Evgenikos of Knight Frank, "This is the ultimate safe-haven asset offering solid investment fundamentals and multiple upsides, including strong underlying asset value, a world rated international university as long term tenant and is situated in a strategic Eastern Suburbs location. There is also flexibility for an investor to passively hold or actively manage the asset to enhance the income stream."

Mr Newland said, "We expect this asset to be hotly contested for a number of reasons including the long-term lease to UNSW Global and the scarcity of good quality student accommodation investments available in Australia at present. The property's proximity and connectivity via public transport to other universities is also a key benefit, should it be operated as direct let student accommodation in the future. There continues to be a significant weight of capital looking to enter the Australian student accommodation market and we expect strong demand from both domestic and international parties.