STUDENT ACCOMMODATION
Redefine lifts Melbourne investments
Redefine Properties has acquired a second development site for student accommodation in Melbourne, Australia, expanding into this highly competitive property sector. Its new site will be able to accommodate 700 beds and the development, which is near Melbourne University, will start in 2018. This accompanies the company’s A$139m ($106.38m) 804-bed development also in Melbourne. Student housing is one of the fastest-growing sectors in the Australian economy. Redefine, which has a market capitalisation of close to R60bn, pinpointed Melbourne as an undersupplied market given the demand from international students for high-quality accommodation products. The development is expected to cost A$103.3m. Redefine’s share of the development cost is A$93m and it is looking to develop the site at about a 10% income yield. "We remain focused on procuring high-quality properties and opportunities across strategic geographic locations. We are excited about the upside potential in student accommoda...
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