Singapore private equity real estate firm, SC Capital Partners Group, has successfully sold its student accommodation asset in Sydney, Australia. The sale, which was announced through a press release on March 3, was made at a significant premium to the original purchase price and a 19% premium to its current book value. The buyer of the property is the University of New South Wales (UNSW) in Sydney.
SC Capital Partners had acquired the property, located on Anzac Parade and Lorne Avenue in Kensington, in 2016 for a reported price of A$57 million. The purpose-built student accommodation, spanning over 85,035 sq ft, consists of 233 beds and a ground-floor commercial podium. It is strategically situated within 600m of the UNSW Kensington Campus and is fully leased to UNSW. In fact, a fresh 20-year master lease was signed in 2019.
The sale of this student accommodation asset highlights the strong demand for real estate investments in Australia’s education sector. The recent transaction also boosts the assets under management (AUM) of SC Capital Partners, which is currently at $113 billion following a previous acquisition by the firm. This successful sale further strengthens the firm’s reputation as a leading private equity real estate player in the Asia-Pacific region.
In Singapore, there is a crucial factor to consider when it comes to investing in condos – the government’s property cooling measures. To maintain a stable real estate market and discourage speculative buying, the Singaporean government has implemented various measures over the years. One of these is the Additional Buyer’s Stamp Duty (ABSD), which imposes higher taxes on foreign buyers and those purchasing multiple properties. While these measures can affect the short-term profitability of condo investments, they ultimately contribute to the long-term stability of the market and create a safer investment environment. This is why Singapore Projects are seen as a secure investment option.