BLUE SKY BUILDS PROPERTY PORTFOLIO WITH STUDENT ACCOMMODATION
1 May 2015,
BLUE Sky Alternative Investments Limited's (ASX:BLA) property division has secured two development sites in Brisbane to construct $160 million worth of student accommodation.
Blue Sky Private Real Estate will develop more than 1000 rooms in South Bank and Woolloongabba to service the city's student lodging undersupply.
The company will partner with accommodation operator The Pad to target domestic and international students.
Head of Blue Sky Private Real Estate Adam Vaggelas says the student sector has been a key area of focus in the company's social real estate and infrastructure strategy.
"Valuations are steeply increasing in core commercial assets over recent times as a result of increased domestic and offshore capital flows," Vaggelas says.
"We have broadened our focus on social real estate and infrastructure opportunities in an endeavour to enhance investor returns by participating in this growth sector.
"We believe the macro drivers of the education and tertiary learning sector in Australia are compelling given the quality of our domestic university system and the country's proximity to a rapidly expanding Asian middle class."
Blue Sky will commence construction of the 286 bed Woolloongabba facility next month, with the 733 bed South Bank building to start in October.
The company will continue to seek development sites across the country to expand its purpose-built student accommodation portfolio.