🏠 Interested in buying 27,100 student beds?

Morning.

As always, it’s been a busy week in Aussie real estate. The living sector is starting to hit it’s stride and there’s been a fair bit of press on the public REITs. Let’s see what happens over the next few weeks.

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Story of the Week

🎓 CLV gearing up for another crack at M&A

• Campus Living Villages (CLV), with 46 student accommodation facilities and 27,100 beds globally, is poised for sale by owners (Hostplus, Rest Super, Equip Super, NGS Super) and potential lead advisor Goldman Sachs.

• CLV, which started in Sydney in 2002 and now has larger operations in the UK and US, is looking for a transaction following a previous unsuccessful attempt in 2016. (AFR)

Capital Markets

 📈 Analysts predict A-REIT upswing; Non-bank lending market share up 16%

• Citi analysts anticipate an upturn for REITs, driven by favorable demand-supply dynamics and the easing of interest rates. Analysts expect particularly strong performance in the industrial and self-storage sectors. (AFR)

• Non-bank lenders have increased their debt market share to 16%, up from 10.4% in 2020. Meanwhile, major banks have seen a decrease from 86% to 73% in the past decade. (APJ)

The Aussie Housing Crisis

 🏫 Projected shortfall of 7,000 PBSA beds

• Demand for PBSA is expected to outstrip supply by an annual shortfall of 7,000 beds over the next 5 years. JLL analysis suggests an underlying demand for 10,500 beds p.a. over the next 5 years. Only c. 3500 student beds will be created annually from 2024-2028, compared to the previous rate of c. 5,200 beds completed annually from 2016-2019. (AFR)

🏙️ Micro apartments going for A$395/week

• A new BTR apartment block in Sydney's Inner West offering 54 "micro" apartments at 20% below market value, has been oversubscribed twice before inspection.

• The project is developed in partnership between Nightingale Housing and Fresh Hope Communities. (AFR)

🏠 Latest in housing policy

• The Cook Government has set aside up to A$50M in grants for registered community housing in WA. (APJ)

• Charter Keck Cramer's State of the Apartment Market report for 2H23 highlights the need for state governments to remove stamp duty. The report suggests replacing it with an annual land tax. (Urban Developer)

Industry Goss

 💼 Langham considering legal action against Aqualand

• The owners of The Langham hotel in Sydney are considering legal action against Aqualand, one of Australia's largest real estate groups, over a A$2.4B development in Barangaroo. (AFR)

 🤫 Builder financial troubles

• Major home builders such as Metricon, GJ Gardner, Hickinbotham, and Home Group, which collectively represent nearly one-third of the top 20 builders, are not disclosing their financial status. (AFR)

• Over 92% of builders lack a proper understanding of financial reports, particularly the WIP calculation, according to the Association of Professional Builders. (APJ)

Deals and Projects

 🏢 Living

• Gurner and Qualitas have unveiled a A$300M build-to-rent project in St Kilda, Melbourne, planning to construct 300 residences across two towers. (Urban Developer)

• Roxy-Pacific Holdings is exploring a potentially 80 storey mixed-use build-to-rent tower in Parramatta. (Urban Developer)

• Brookfield Asset Management is planning to replace a former 40-storey build-to-rent project with a 39-floor student accommodation tower featuring 1013 units on Franklin Street. (Real Estate Source)

🏠 Residential

• Sekisui House plans to construct a A$141M residential complex at Melrose Park, Parramatta, featuring 368 apartments across 6 buildings. (AFR)

• Central Element is planning an ultra-premium project in Bondi comprising a duplex and five apartments priced from A$20M each. (Urban Developer)

• Landcom is planning to build a pair of 14-storey towers that will house 135 affordable units in Sydney's north-west. (Urban Developer)

• RM Developments is set to redevelop a Sunshine Coast golf driving range into a 1220-home residential precinct near the University of the Sunshine Coast. (Urban Developer)

• Lendlease's luxury apartment project at One Sydney Harbour has welcomed it’s first residents. The A$3B development gained attention in 2019 due to a record-breaking A$140M penthouse sale. (AFR)

🛍️ Retail

• A 49% non management stake in five NZ Westfield shopping centers is up for sale. (Urban Developer)

• A Tuggerah Centrelink office has been sold for A$11.9M in an off-market deal at a 7% cap rate. (Real Estate Source)

🏭 Industrial

• ESR and Frasers jointly acquired a 64.4ha industrial site in Melbourne's south-east for over A$200M. The project will have an end value of A$900M. (AFR)

• Hannas is marketing an industrial land parcel in Byron Bay, with 17 lots valued at A$80M. (Real Estate Source)

 🌇 Alternatives

• LAWD is marketing a large-scale aggregation of sheep and goat properties spanning 80,887 ha. The property is expected to fetch c. A$40M. (APJ)

• Kingsmede Partners is selling three self-storage facilities in Perth's southern corridor, comprising 740 units across 9,726sqm, generating A$2.4M annually. (APJ)

• Kinderland Early Learning, a Singapore-based childcare giant, has committed to a A$435M project in Box Hill, Melbourne. (Real Estate Source)

Career Hub

 🤩 Intern, Grad and Junior Roles

• Deloitte is advertising their Real Estate Advisory - 2024/25 Vacationer Program (Sydney) and Real Estate Advisory - 2025 Graduate Program (Sydney)

• Blackstone is looking for a 2025 Blackstone Real Estate Summer / Winter Analyst, Sydney

💰 Experienced Hires

• Goldman Sachs is looking for Corporate Advisory, Real Estate, Associate, Sydney

• Jefferies is looking for a Real Estate Research Associate / VP, Sydney

• UBS is looking for a Real Estate Investment Manager

• Cushman & Wakefield is looking for a Manager Real Estate Advisory

• Minter Ellisons is looking for an Associate or Senior Associate - Property

• Clayton Utz is looking for a Senior Associate - Real Estate