This article is from the Australian Property Journal archive
WESTERN Sydney University is the latest tertiary education provider looking to boost liquidity by divesting real estate assets, hoping for $80 million from the sale of the newly built Caddens Corner neighbourhood shopping centre and 3.3 hectares of adjoining development land in Kingswood.
Set to open in November, the Woolworths and BWS-anchored asset will have 9,500 sqm of retail and community space and will include full food and dining precinct, childcare centre, medical centre and gym, over 500 on grade car spaces and an EV electric vehicle charging facility.
It sits next to the Western Sydney University Kingswood and TAFE NSW Nepean campuses that cater to almost 17,000 students, and is expected to achieve 5-Star Green Star Design & As Built credentials.
“Caddens Corner is part of the University’s Western Growth strategy, a plan to reshape the campus network and maximise investment in teaching, engagement and research while fostering connection and community engagement,” vice-president, finance and resources at Western Sydney University, Peter Pickering said.
More than 400 new continuing jobs will be supported by the neighbourhood centre, and over $60 million in local economic activity generated during the first 12 months.
Universities have slashed jobs and sought to offload assets in the absence of lucrative international student funds due to the pandemic. Universities Australia expects $16 billion in revenue to be wiped out between now and 2023 across the country’s tertiary education sector.
In Melbourne, RMIT is hoping to release $120 million of capital by offering its Bourke St tower in the CBD with a leaseback, and was joined shortly afterwards by Swinburne University moving to offload a Flinders Ln building barely one year since its acquisition.
Australian universities grew their international student based by 79% over the decade 2019, to more than 360,000, according to the Department of Education, while revenue per student rose by over 50% in the 10 years to 2019.
Western Sydney University has been busy in the property space in recent times. It has partnered up with major property player Charter Hall at the $350 million Westmead health and research precinct, where they have just secured the CSIRO as a key tenant and construction has kicked off. The hub will deliver over 43,000 sqm of health, education, research and business space.
The parties have already delivered a 26,500 sqm vertical campus at One Parramatta Square, and are developing a $280 million engineering innovation hub at 6 Hassall St, where some 27,000 sqm of space will be delivered and occupied by WSU and UNSW.
Western Sydney University has appointed JLL’s Nick Willis and Sam Hatcher for the new sales campaign, with colleague Ben Hunter managing the sale of the development land and Halesmith Property’s Richard Horne overseeing the process as transaction manager.
“We have seen a real shift in investor demand towards these convenience-based assets given their resilience over the past few months. Difficulty in this sub-sector is availability of quality assets, with current volumes down approximately 70% year-on-year,” Hatcher said.
The development site has R4 zoning and offered multiple options including house and land, townhouses or apartment projects.
