Cambridge doubles down on education assets

Cambridge RE Partners has acquired Hastings Village student accommodation complex in Port Macquarie.

Singaporean fund manager Cambridge RE Partners has snapped up its second major local asset, with its specialist social infrastructure fund acquiring Hastings Village student accommodation complex in Port Macquarie, NSW, in a $116m deal.

Earlier this year, Cambridge RE Partners forged into the local market with the purchase of Taylors House in Sydney, as education assets attracted investors. That building at 965 Bourke St, Waterloo, was sold by a Fortius fund, which is part of Growthpoint Properties, for $86.95m.

In its latest deal, the Cambridge Social Infrastructure Fund picked up the 592-bed purpose-built student accommodation property in Port Macquarie from a local family developer.

Hastings Village is on a 20-year lease to Charles Sturt University, the country’s largest regional university, and it is next to the main campus and near the medical precinct in Port Macquarie.

It was developed over five stages, with the initial stages completed in 2017-2018 and the final stage finished earlier this year.

The deal was sourced off-market for Cambridge by local property fund manager and developer Centennial, which will assist Cambridge with the management of the property.

Cambridge chief executive Enoch Tan said the company had added Hastings Village to the fund, due to “its long- term lease to a values-driven university being a good fit with the fund’s strategy”.

The fund manager said after the Taylors House buy in Waterloo, it was sharpening its focus on social infrastructure real estate assets in Australia, particularly in education.

It cited the strong growth arising not just from inbound migration, of which foreign students constituted a large component, but also from increasing demand for childcare and quality education from the domestic resident market.

Centennial chief executive Adrian Taylor said Hastings Village was a modern, purpose-built student accommodation asset that had strong defensive characteristics underpinned by a 20-year lease, with annual CPI reviews.

The $116m sale was brokered by property adviser Scott Gray-Spencer, who represented the vendor.