Scape Australia has attracted further capital for its recently established A$6.0bn Core Purpose-Built-Student-Accommodation (‘PBSA’) Fund (‘the Fund’).
The new open-ended, liquid structure was well received by investors and has now attracted a new commitment from clients of CBRE Investment Management’s Indirect Private Real Estate Strategy (‘CBRE IM Indirect’).
Scape is anticipating further commitments from multiple investors in the next few months.
The Fund is the first of its kind in Australia, with an in-place portfolio of 33 operational PBSA assets with 16,300 beds in Sydney, Melbourne, Brisbane and Adelaide.
The Fund will have access to Scape Australia’s significant ~6000 bed development pipeline and market portfolio opportunities as the sector consolidates and matures.
CBRE IM Indirect was attracted by the high quality of the portfolio and Scape management capabilities, whilst the new structure better suits their clients, as it allows for long-term ownership and growth opportunity with moderate risk.
Head of APAC at CBRE IM Indirect, Alex Crossing said, “The living sector is a preferred investment theme globally and having exposure to high quality, core PBSA real estate with Scape complements our existing student accommodation investments worldwide, which include both income generating assets and develop to core strategies where markets are undersupplied.”
This commitment from clients of CBRE IM Indirect is following recent equity commitments from existing investors APG, Bouwinvest, National Pension Service of Korea, Caisse de Dépôt et Placement du Québec (‘CDPQ’) and UBS Asset Management.
This capital was used to expand the Fund through a merger with six Scape Australia developed assets and two development sites valued at A$2.0bn.
While the Fund’s leverage is capped at 40%, approximately A$900m in senior debt was committed by the Funds existing bank syndicate as part of a refinancing completed in August 2024 which was 3x oversubscribed.
Managing Director Scape Australia, Stephen Gaitanos said, “We are excited to have a high-profile investment manager such as CBRE IM Indirect show confidence in the Fund and our platform. It will provide their clients with immediate access to a well-diversified portfolio of the highest quality PBSA asset and allowing us further opportunity for expansion.”
“The requirement for affordable and smart housing solutions is unparalleled and we look forward to continuing our successful track record, whilst expanding our high-profile investor group. The scale, efficiency and depth of capability is unmatched in Australia. This transaction is a reflection of the quality of our team,” he added.
Executive Chairman Scape Australia, Craig Carracher said, “This significant investment comes at a very exciting time for us, as we enter our second decade of operation here in Australia and really hone in on delivering to our vision, to be the Earth’s Best Living Company and Australia’s largest end-to-end specialist residential rental and operating accommodation platform.”
“We are at the ready to fulfill the clear need for more well-designed and located PBSA rental accommodation supporting the delivery of new housing solutions and relieving the demand on urban housing needs around our universities.”
A key feature of the Fund is its liquidity, meaning under the new open ended regime investors can subscribe or redeem every quarter. There is already significant interest in the Fund from new and existing investors which demonstrates confidence in the structure and will enable Scape to grow the portfolio by capitalising on its proprietary investment pipeline and concurrent market acquisitions.