Savills advises on USD2.1bn Australian student accommodation deal

Evergreen, M3 Capital Partners (M3) has sold its 7,402 bed Urbanest Australia Purpose Built Student Accommodation (PBSA) platform. 

The sale, in excess of AUD2.1 billion, is the largest ever student accommodation transaction in Australia and reflects a new low in terms of Net Initial Yields for the sector.

 
The disposal includes 15 PBSA assets in Sydney, Melbourne, Adelaide and Brisbane, as well as market leading operational platform, Urbanest Australia.
 
The platform, along with 14 operational assets, comprising 6,875 beds, were purchased by a syndicate of global institutional investors managed by Scape. An additional 527 beds, currently under construction, have been purchased by the University of Melbourne. Savills advised the vendor on both transactions.
 
Urbanest Australia was founded by M3’s Evergreen business in 2008. Since then it has grown into the highest quality portfolio and management company in Australia. M3 continues to own Urbanest in London and all of the global rights to the brand. In Australia, the brand is licensed to Scape. 
 
Joe Guilfoyle, Head of Corporate Finance, Savills Capital, says: “We are delighted to execute another landmark M&A deal in the student accommodation sector on behalf of M3 Evergreen. This transaction demonstrates the continued global interest of this asset class to institutional investors, especially when accompanied with a leading operational platform.”