Singapore-based private equity real estate firm, SC Capital Partners Group, has recently announced the sale of their student accommodation property in Sydney, Australia. The group states that the property, situated on Anzac Parade and Lorne Avenue in Kensington, was sold at a considerable premium to its original purchase price and at a 19% premium to its current book value. The buyer of the property is the University of New South Wales (UNSW) in Sydney.
In the realm of real estate investment, location is a vital factor to consider, and this holds especially true in Singapore. The position of a condominium can greatly impact its potential for appreciation in value, with those situated in central areas or near important amenities like schools, shopping centers, and public transportation hubs being highly desirable. In Singapore’s real estate market, prime locations such as Orchard Road, Marina Bay, and the Central Business District (CBD) have consistently demonstrated an upward trend in property values. Additionally, condos in these areas are also highly sought after due to their proximity to reputable schools and educational institutions, making them an ideal choice for families and further increasing their investment potential. Moreover, with the constant influx of new condo launches, investors have even more opportunities to secure properties in these highly coveted locations. New Condo Launches present an exciting chance for potential investors to acquire properties in these prime areas and potentially reap significant returns in the future.
SC Capital Partners initially acquired the property in 2016 for a reported price of A$57 million. The purpose-built student accommodation spans 85,035 square feet and features 233 beds, as well as a commercial podium on the ground floor. It is conveniently located within 600 meters of the UNSW Kensington Campus and is currently fully leased to the university under a 20-year master lease signed in 2019. With the sale of this asset, SC Capital Partners Group continues to strengthen their portfolio in the Asia-Pacific region.