Leading purpose-built student accommodation provider Scape Australia is set to acquire three of the four housing residences owned by UTS, on behalf of Scape’s Student Accommodation Core Program.
Gumal Ngurang is one of three off-campus UTS properties to be included in the Scape portfolio.
The acquisition has support from its capital partners including Allianz Real Estate, AXA Investment Managers – Real Assets, APG Asset Management, an Asian pension fund, Bouwinvest and Scape’s founders.
The properties, known as Geegal, Bulga Ngurra and Gumal Ngurang, are located off-campus in Ultimo and Darlington. They are being sold for an undisclosed amount.
“We are thrilled to be able to acquire these assets from UTS at this time. Consistent with the Scape portfolio strategy, the location of the assets is prime and we look forward to collaborating more closely with UTS as we begin to welcome students back to Sydney safely,” Scape Australia Managing Director and Group CEO, Stephen Gaitanos said.
“The UTS portfolio complements our existing Sydney portfolio and will sit alongside our 15 assets, bringing our total Sydney portfolio to 6,300 bedrooms, which remains our largest exposure nationally.
“The portfolio provides diversification of product and further allows Scape to deliver a wide range of offerings to university students in Sydney. Residents will gain access and opportunities that come with being connected to Scape’s wider ecosystem.”
Under the terms of the deal, current UTS residents are guaranteed to be able to stay in the three residences for the remaining duration of their accommodation agreements.
It will also help the university deal with the financial challenges brought about by the global pandemic in a way that doesn’t impact upon our core business of teaching and research.
UTS Vice-Chancellor Attila Brungs
UTS students will also have priority rights and other concessions in those residences as well as in other Scape locations, UTS Vice-Chancellor Professor Attila Brungs said.
“We feel our students will be well looked after, with Scape having very generously also offered 10 annual scholarships for UTS students over the next four years which will provide for a 50 per cent discount in accommodation fees at Scape residences.
“It will also help the university deal with the financial challenges brought about by the global pandemic in a way that doesn’t impact upon our core business of teaching and research,” he said.
“We look forward to collaborating with Scape, and continuing to provide our students with access to convenient high-quality accommodation.”
The sale is subject to government approval and is expected to be completed by the end of the year.
UTS remains the owner and manager of Yura Mudang, a modern on-campus complex of individual studios and shared apartments accommodating over 700 students, which has the capacity to meet the current demand for housing from its students.