BLUE SKY, GOLDMAN SACHS BUY UP STUDENT PADS

Written on the 14 April 2016 by Brisbane Business News

BLUE SKY, GOLDMAN SACHS BUY UP STUDENT PADS BLUE Sky Private Real Estate and Goldman Sachs have purchased a majority stake in a leading Australian student accommodation provider.

The joint venture has made a multi-million dollar investment in The PAD, a student accommodation manager which has been operating for almost 10 years in Australia and currently manages accommodation for nearly 2000 students.

The private equity deal will see The PAD manage the joint venture's student accommodation assets as the parties build a $1 billion portfolio of 5000 to 10,000 purpose-built student accommodation beds across Australia and New Zealand over the next few years.

Brisbane's Blue Sky Private Real Estate, a division of Blue Sky Alternative Investments (ASX: BLA), began its partnership with global investment firm Goldman Sachs in March to address an 'undersupplied' market.

Head of Blue Sky Private Real Estate Adam Vaggelas says this the deal was a logical step to further the group's strategy.

There are currently less than seven PBSA beds for every 100 students in Australia, compared to almost 25 in the UK, with very few participants servicing the market.

"The PAD has a long history as a specialist student accommodation operator and Blue Sky is already working closely with the team on multiple sites," says Vaggelas.

"Their expertise, combined with the newly formed Blue Sky and Goldman Sachs joint venture takes us a step closer to creating a market-leading platform to service the undersupplied student accommodation market in Australia."

The Blue Sky partnership marks Goldman Sachs' entry into the Australian student market, however the company has been active in the European student market for a number of years.

Earlier this year Goldman Sachs announced a $3.8 billion (£2 billion) joint venture to form the Vero Group consisting of approximately 600 staff managing almost 25,000 student beds across the UK.

Entities owned by Goldman Sachs and funds managed by Blue Sky will each own 50 per cent of future projects developed under the Australian joint venture.

Blue Sky and Goldman Sachs' stake was bought from Telopea Capital executives Stephen Gaitanos and Craig Carracher.

Founder and CEO of The PAD, Damian Haber, will stay on board as a joint shareholder in the venture.

Pictured: Blue Sky Private Real Estate's Merivale student accomodation



Author: Brisbane Business News Connect via: Twitter

Latest News

DREAMWORLD PARENT COMPANY DEMOTES CEO DEBORAH THOMAS

ARDENT LEISURE, the parent company of Gold Coast's Dreamworld theme park, has reshuffled its core leadership w...

MELBOURNE SHOPPING CENTRE SELLS FOR $48m AS CHINESE DEMAND RAMPS UP

A MELBOURNE shopping centre has been sold for $48 million, bringing the total spent by Chinese investors on Victor...

HOW WEDDING WOES INSPIRED A BOOMING BUSINESS FOR MEGAN ZIEMS

WHEN she was dress shopping for her wedding in 2010, Megan Ziems (pictured left) was disappointed to discover a ma...

SPOTLESS REJECTS DOWNER'S 'HOSTILE' $1.2B BID AS IT PROMISES A STRATEGY RESET

CLEANING and catering services company Spotless has rejected a $1.26 billion takeover bid from mining services firm D...

Related News

FURNITURE DISRUPTOR SET TO SHARE HIS ONE OF A KIND BUSINESS MODEL

IT'S no secret that Australians love homemaking. Their ceaseless quest to create the perfect place to call hom...

WEEDING OUT THE ASX'S BURGEONING CANNABIS TREND: 8 COMPANIES TO WATCH

A NICHE is budding on the ASX in the form of medical cannabis, an industry which has been on the country's rad...

FRESH CLASS ACTION TO REVEAL ANOTHER SIDE OF SLATER AND GORDON DOWNFALL

ACA LAWYERS has issued a formal letter of demand to Andrew Grech (pictured), managing director of Slater and Gordo...

STARSHIPS WERE MEANT TO DELIVER DOMINO'S PIZZA

NICKI Minaj may have been off the mark when she declared 'starships were meant to fly'. However, she m...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter