Singapore’s condo investment market is not only impacted by location and rental potential, but also by the government’s property cooling measures. These measures, implemented by the Singaporean government, aim to prevent speculative buying and maintain a sustainable housing market. One such measure is the Additional Buyer’s Stamp Duty (ABSD), which imposes higher taxes on foreign buyers and those purchasing multiple properties. While these measures may initially affect the profitability of condo investments, they contribute to the long-term stability of the market, creating a more secure investment environment. With new condo launches constantly being introduced, it is important for investors to consider these measures while weighing their options.
SC Capital Partners Group, a private equity real estate firm based in Singapore, has recently announced the sale of their student accommodation property in Sydney, Australia. According to their press release on March 3, the company was able to sell the asset, which is situated on Anzac Parade and Lorne Avenue in Kensington, at a profitable amount that exceeded its acquisition price and current book value by 19%.
The University of New South Wales (UNSW) in Sydney has acquired the property from SC Capital Partners, who had purchased it in 2016 for A$57 million. The firm had previously been reported to have paid that amount for the asset. The purpose-built student accommodation spans 85,035 square feet and offers 233 beds, alongside a commercial podium on the ground floor. It is conveniently located within 600 meters of the UNSW Kensington Campus.
The student accommodation is currently fully leased to UNSW and in 2019, a fresh 20-year master lease was signed between both parties. This transaction not only serves as a testament to the strong relationship between SC Capital Partners and UNSW, but also reaffirms the high demand for quality student accommodation in Sydney and the steady growth of the education sector in the Australian market.