Scape Australia closes third PBSA Development JV at AUD1.0bn alongside APG and Ivanhoé Cambridge

Scape Australia has formed a partnership with Dutch pension investor APG Asset Management N.V. (‘APG’) and Ivanhoé Cambridge, a global real estate investor, to develop Purpose-Built-Student Accommodation (‘PBSA’) assets in Australia’s thriving student housing sector.

The new joint venture, which is subject to regulatory approval, is the third in a series of development JV vehicles (previous JV ventures were established in 2015 and 2018). It will continue Scape’s strategic focus on urban locations close to Australia’s world class Universities, whilst incorporating the next level of design from Scape’s in-house development, design and operational teams. The venture will leverage the significant operational scale (17,200 operational apartments) and an internal team that already manages Australia’s largest privately owned residential-for-rent portfolio.

The joint venture is seeded with a prime development opportunity of circa 1,000 PBSA apartments at Queen Victoria Market in Melbourne This is in partnership with Lendlease, who will develop two separate buildings, and the City of Melbourne, as announced last week.

The strong recovery in international and domestic students and a shortage of student accommodation in Australia has resulted in low vacancy levels and strong rental growth. The development of further purpose-built student accommodation will continue to release pressure from the rental housing market, by providing a safe and purpose-built living solution for students with intelligent design and a low barrier of entry.

You can now read the full press release at the link below