Singapore-based private equity real estate firm, SC Capital Partners Group, has recently announced the sale of its student accommodation asset in Sydney, Australia. The group stated in a press release on March 3 that the property, situated on Anzac Parade and Lorne Avenue in Kensington, was sold at a substantial premium to the original purchase price and a 19% premium to its current book value. The buyer of the asset is the University of New South Wales (UNSW) in Sydney.
SC Capital Partners had initially acquired the property in 2016, reportedly paying A$57 million for it. The purpose-built student accommodation spans over 85,035 square feet and has 233 beds, along with a commercial podium on the ground floor. It is conveniently located within a 600-meter walking distance from the UNSW Kensington Campus. The student accommodation section of the property is fully leased to UNSW, with a newly-signed 20-year master lease agreement in 2019.
This transaction comes at a time when the asset under management (AUM) race is becoming increasingly competitive, with the recent CLI transaction raising its FUM to an impressive $113 billion. With this sale, SC Capital Partners has realized significant gains and has strengthened its position in the private equity real estate market.
Investing in a Singapore Condo involves careful consideration of the government’s property cooling measures. The Singaporean government has implemented several measures over the years to discourage speculative buying and maintain a steady real estate market. One such measure is the Additional Buyer’s Stamp Duty (ABSD), which imposes higher taxes on foreign buyers and individuals purchasing multiple properties. Although these measures may affect the immediate profitability of condo investments, they also play a vital role in creating a secure investment environment in the long run. With the added assurance of stability, investing in a Singapore Condo becomes a wise and sound decision for investors.