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AMP Capital, through its AMP Capital Diversified Infrastructure Trust (ADIT), has entered into a 40-year student residences contract with the University of Melbourne.
The long-term arrangement comprises a total of 954 beds across two facilities being refurbished and constructed at the University of Melbourne’s Parkville campus. ADIT will also be the preferred funding partner for any additional student residence projects to support the University’s future growth.
The two landmark residences, “303 Royal Parade” and “Little Hall”, will be the first residences developed and operated under the University of Melbourne brand and its new accommodation offer, and will contribute significantly to the University’s strategy to deliver a vibrant campus-based living environment.
The concession includes the responsibility for facilities management services such as building maintenance, which has been outsourced to Spotless for 40-years. The University retains operational responsibility, including marketing and day-to-day pastoral care to students.
Little Hall is founded on a unique philanthropic partnership between the University and the Hansen Little Foundation, and encompasses a residence that will set a new benchmark for student living, a flagship scholarship program and a distinctive academic and social enrichment program.
ADIT Portfolio Manager Brad Williams commented: “We are pleased to be partnering with the University of Melbourne to deliver a new and vibrant campus-living community that will support the education and academic achievement of its students.
“Tertiary education is Australia’s third-largest export sector, benefiting from significant increases in international enrolments with annual growth of 11 per cent. The concession agreement will support the University of Melbourne’s growth as a globally-esteemed education provider while delivering long-term inflation-linked cashflows for our investors.”
The University of Melbourne is Australia’s number one ranked university and among the leading universities in the Academic Ranking of World Universities and Times Higher Education Global Rankings. The University has more than 51,000 students and 8,500 staff. With eight campuses across Melbourne and regional Victoria, the University continues to grow, creating new spaces for student living and learning.
The investment adds to ADIT’s existing investment in the 650-bed Sydney University Village facility, which has been under ownership for more than 15 years.
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$1.4 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.
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