AMP Capital has purchased the Australian National University’s student accommodation concession on behalf of investors in its AMP Capital Diversified Infrastructure Trust (ADIT) and AMP Capital Core Infrastructure Fund (CIF) from investors managed by H.R.L. Morrison & Co.
Completion of the transaction is expected to be in mid-April 2019.
The transaction is valued at over $700 million and includes a 34-year concession over 4,184 beds across ten existing residences on the Australian National University (ANU) campus in Canberra. The concession was originally established in 2016 and includes existing long-term outsourced facilities management arrangements while the ANU retains responsibility for operations.
ADIT Portfolio Manager and Investment Director Brad Williams commented: “AMP Capital has been successfully invested in university student accommodation partnerships for over 15 years. The ANU portfolio represents an exciting opportunity to grow our student accommodation platform to over 5,000 beds, adding to our recent University of Melbourne transaction in late 2018 and our partnership with the University of Sydney which began in 2003.
The student accommodation sector is one of our core strengths and we are delighted to be able to continue to deliver value in this sector for our clients. Our large-scale portfolio of beds now provides our investors with access to long-term inflation-linked contracts with Australia’s top 3 ranked universities – Mr Williams said.
AMP Capital Diversified Infrastructure Trust (ADIT)
Established in 1995, ADIT is one of the longest-running infrastructure funds in the world and invests in a diversified portfolio of core infrastructure assets in Australia and New Zealand. The fund, which currently has A$1.4 billion in assets under management, primarily targets mature unlisted infrastructure assets with diversified exposure to transport, energy and utilities and social infrastructure such as education facilities.
AMP Capital Core Infrastructure Fund (CIF)
Established in 2007, CIF provides investors access to high-quality unlisted infrastructure assets usually only available to large institutional investors. The fund takes an integrated approach to building a strategically blended global portfolio of unlisted infrastructure assets and listed infrastructure securities, offering investors a total return of income and capital growth.