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AMP Capital has agreed to acquire the student accommodation concession for Melbourne Connect, a new campus being built by the University of Melbourne to bring together high-calibre research, industry, government and higher-degree students in a purpose-built precinct. The acquisition has been made on behalf of investors in the AMP Capital Diversified Infrastructure Trust (ADIT).
The 42-year concession includes responsibility for facilities management of the 527 bed post-graduate student accommodation facility in Carlton, which will open in 2021. This is in addition to AMP Capital’s existing investment to operate two facilities comprising 954 beds at the University of Melbourne’s Parkville campus.
ADIT Portfolio Manager Brad Williams commented: “Adding another quality student accommodation concession to our portfolio is a great outcome for our investors. It increases our exposure to a growing sector in Australia’s education industry and supports diversification in the ADIT portfolio.
“We now manage a portfolio of more than 6,300 student beds, including the Australian National University student accommodation concession announced earlier this year, and the 650-bed Sydney University Village facility, which is an investment we’ve held for more than 15 years.
“Melbourne Connect will be a world-class innovation precinct that will connect industry, government and leading academics and researchers. This post-graduate facility will complement our existing undergraduate-focussed facilities and provide investors with a CPI-linked revenue stream that is backed by strong demand for on-campus student accommodation from interstate and international students. Student numbers at the University of Melbourne continue to grow due to its reputation as Australia’s highest-ranking university,” he said.
In addition to student accommodation, the Melbourne Connect precinct will also feature 35,000 square metres of A-Grade office space for the Melbourne School of Engineering, co-working and commercial tenants, retail shops and a shared meeting and events space.
The University of Melbourne is Australia’s number one ranked university and among the leading universities in the world in the Academic Ranking of World Universities and Times Higher Education Global Rankings.
Established in 1995, ADIT is one of the longest-running infrastructure funds in the world and invests in a diversified portfolio of core infrastructure assets in Australia and New Zealand. The fund, which currently has A$1.7 billion in assets under management, primarily targets mature unlisted infrastructure assets with diversified exposure to transport, energy and utilities and social infrastructure such as education facilities.
While every care has been taken in the preparation of this article, AMP Capital Investors Limited (ABN 59 001 777 591, AFSL 232497) and AMP Capital Funds Management Limited (ABN 15 159 557 721, AFSL 426455) (AMP Capital) makes no representations or warranties as to the accuracy or completeness of any statement in it including, without limitation, any forecasts. Past performance is not a reliable indicator of future performance. This article has been prepared for the purpose of providing general information, without taking account of any particular investor’s objectives, financial situation or needs. An investor should, before making any investment decisions, consider the appropriateness of the information in this article, and seek professional advice, having regard to the investor’s objectives, financial situation and needs. This article is solely for the use of the party to whom it is provided and must not be provided to any other person or entity without the express written consent of AMP Capital.