GROWING popularity among investors of student accommodation assets has prompted Centennial Property Group to list The University of Adelaide Village for sale, with expectations for the 405-bed facility at around $50 million.
The listing comes within weeks of plans for two new student accommodation developments being lodged with Adelaide City Council and the state government.
Conal Newland and Paul Savitz of Savills and Jamie Guerra and Roger Klem of JLL have been appointed to handle the expressions of the interest campaign for 210 Grote St, closing 15th August.
The University of Adelaide operates and leases the 96-apartment, 11,600 sqm facility under an agreement running until 2024. The 5,333 sqm site is on the corner of Morney St in the CBD’s west end, between Tambawodli Park and Adelaide Central Market.
According to Savills, there is a critical undersupply of appropriate purpose built student accommodation in many capital cities, high occupancy levels within stabilised operational properties, robust revenue growth and attractive yield pricing in comparison to other domestic and global real estate asset classes, all contribute to student accommodation being an attractive investment.
Newland said education is considered a key contributor to the state’s economy, positioned as a top export sector for South Australia. New data from StudyAdelaide showed international education was worth $1.8 billion in 2018, up by 17% on 2017 levels.
“Recent announcements of extensions to temporary post-study visa for international students will further strengthen the attraction of the city globally for both study and work” he said.
Study Adelaide recorded 31,551 international enrolments over the first four months of 2019, a 12% increase on the same period last year.
Developers are encouraged by the upwards trend in numbers. At 54 Elizabeth St, Brown Falconer is looking to build a $26 million, 17-storey facility, while Adelaide Golden Field will include two levels of student housing within a seven-storey complex at 7 Field St.
Private Adelaide developer Hines Property has received approval for an $85 million student accommodation tower at 29 Twin Street, which at 38 storeys and just over 124 metres high would become the world’s tallest.
The University of Adelaide Village is staffed 24 hours a day, seven days a week. As well as The University of Adelaide, it is close to University of South Australia, Flinders University City Campus, Torrens University, the Adelaide Central Market, Chinatown, Rundle Mall and the Royal Adelaide Hospital.
Adelaide is home to four universities and has more than 71,540 full-time students. Around 60% study at the two main Universities, including The University of Adelaide.