Sc Capital Partners Sells Sydney Student Accommodation Asset

Singapore-based private equity real estate firm, SC Capital Partners Group, has announced the sale of its student accommodation asset located in Sydney, Australia. According to a press release on March 3, the group sold the property – situated on Anzac Parade and Lorne Avenue in Kensington – at a significant premium to its acquisition 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 in 2016 at a reported price of A$57 million. With this transaction, the group has achieved a significant return on its investment.

The purpose-built student accommodation, occupying an area of 85,035 square feet, comprises of 233 beds and a commercial podium on the ground floor. Its strategic location, only 600 meters from the UNSW Kensington Campus, makes it an attractive investment opportunity. The entire student accommodation component is fully leased to UNSW, with a 20-year master lease signed in 2019. This offers a stable and long-term income stream for the new owner.

The sale of this asset is in line with SC Capital Partners’ strategy of actively managing its portfolio and divesting mature assets to realize capital gains. The firm remains committed to expanding its portfolio and is continuously seeking new investment opportunities that offer attractive returns to its investors.

This sale also comes at a time when the competition among asset under management (AUM) firms is intensifying, with a recent transaction by CapitaLand Investment (CLI) raising its FUM (funds under management) to an impressive $113 billion. It remains to be seen how SC Capital Partners Group will utilize the proceeds from this sale to grow its AUM and strengthen its position in the market.