Savills News

University of Adelaide Village set to hit the market

Investors are moving beyond the traditional core markets and seeking alternative asset classes such as student accommodation where the fundamentals are strong. 

According to research from Savills Australia, the critical undersupply of appropriate purpose built student accommodation (PBSA) 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.

As such, a 405 bed student accommodation facility is set to hit the market, offering 96 apartments exclusively leased to The University of Adelaide under a long term agreement until 2024, with a price expectation of circa $50 million.

Located at 210 Grote Street, Adelaide this purpose built complex is leased to, and managed by, the University of Adelaide exclusively for the benefit of its students.

This impressive property with a site area of over 5,333sq m* has a gross building area in excess of 11,600sq m* and is for sale through Conal Newland and Paul Savitz of Savills Australia and Jamie Guerra and Roger Klem of JLL.

According to Conal Newland Director, Student Accommodation, Savills Australia, International education is considered a key contributor to the state’s economy, positioned as a top export sector for South Australia that generated more than AU$1.6bn in 2018.

“A State Government organisation established in 1998, Study Adelaide, has supported student growth in the city, promoting the state as an education destination and helping international students settle into the broader community. 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.

As such, international enrolments across South Australia have grown by 13.6% over the year to March 2019, outpacing the national average over the same period, reaffirming the state’s standing as the preferred destination for international students.

Located in the Adelaide CBD, the asset is situated within proximity to The University of Adelaide, University of South Australia, Flinders University City Campus, Torrens University, the Adelaide Central Market, Chinatown, Rundle Mall and the Royal Adelaide Hospital.

According to Jamie Guerra, Managing Director/South Australia, JLL, The University of Adelaide Village is staffed 24 hours a day, 7 days a week and provides a safe and supportive environment with a focus on fostering a strong sense of student community.

“Living at The Village allows students to strive for academic success with extra services and amenities provided within the facility, which is particularly appealing to first year undergraduate students and new arrivals to Adelaide.”

Adelaide is home to four universities, three of which are well renowned public South Australian universities and Adelaide has over 71,540 full-time students with approximately 60% studying in the two main Universities, including The University of Adelaide.

210 Grote Street, Adelaide is for sale via international expression of interest closing 3pm (AEST) Thursday 15 August.

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