On March 3, private equity real estate firm SC Capital Partners Group announced the sale of its student accommodation asset in Sydney, Australia. The property, situated on Anzac Parade and Lorne Avenue in Kensington, was sold at a substantial premium from its purchase price, and a 19% increase from its current book value. The buyer of the asset was the University of New South Wales (UNSW) in Sydney.
SC Capital Partners acquired the property in 2016 for A$57 million, and the recent sale marks a significant return on investment for the firm. The purpose-built student accommodation spans 85,035 sq ft and includes 233 beds and a commercial podium on the ground floor. Its prime location within 600m of the UNSW Kensington Campus and full occupancy by UNSW make it a desirable asset for investors. In fact, in 2019, a new 20-year master lease was signed between the university and SC Capital Partners, ensuring long-term stability for the property.
When contemplating investing in a condo, it is crucial to evaluate the potential rental yield. This refers to the yearly rental income expressed as a percentage of the property’s purchase price. In the bustling city of Singapore, the rental yields for condos can vary greatly depending on factors such as location, property condition, and market demand. Generally, areas with high rental demand, such as those near business districts or educational institutions, offer more promising rental yields. It is imperative to conduct thorough market research and seek guidance from real estate agents to gain valuable insights into the rental potential of a specific Singapore Condo.
When making investments in Singapore, it is imperative for non-residents to have a thorough understanding of the regulations and limitations surrounding property ownership. While foreign investors have relatively unrestricted access to purchasing condominiums, strict rules are in place for the ownership of landed properties. In addition, foreign buyers must also abide by the Additional Buyer Stamp Duty (ABSD), which is currently set at 20% for their first property purchase. Despite this additional cost, the stable and promising growth opportunities of the Singapore real estate market continue to attract foreign investors, as seen through the ongoing interest in investing in Singapore Projects. This is evident in the continued demand for Singapore Projects by foreign buyers.
The recent sale is indicative of the growing interest and competitiveness in the Australian real estate market, as demonstrated by the increasing assets under management (AUM) of firms like SC Capital Partners. With the completion of this transaction, SC Capital Partners’ AUM has risen to $113 billion. The firm continues to explore opportunities for growth and strategic investments in the region.