International law firm Ashurst has advised the University of Melbourne on a 40-year student accommodation agreement with specialist global investment manager, AMP Capital, through its AMP Capital Diversified Infrastructure Trust.
The arrangement is the first student accommodation transaction of its kind by the University and will see two residences - 303 Royal Parade and “Little Hall” - refurbished and constructed close to the University of Melbourne’s Parkville campus. "Little Hall" was established when the Hansen Scholarship Program was announced by the University earlier this year. The Program will offer 20 high-achieving students annually the financial, academic and social support needed to thrive in their undergraduate studies at the University, as well as support their transition to graduate studies or outstanding graduate careers.
The two residences will be developed and operated under the University of Melbourne brand and new accommodation guarantee. The University will retain ownership of both residences and have operational responsibility, including marketing and day-to-day pastoral care to students. AMP Capital will have responsibility for facilities management services such as building maintenance.
The Ashurst team was led by infrastructure partner Harvey Weaver*, assisted by counsels Melinda Harris and Laura van den Berg and lawyer Adam Fyfe. Partners Ian Kellock and Geoff Mann provided tax advice, with partner Rehana Box advising on insurance matters. Finance advice was provided by partner Matthew Bubb, assisted by counsel Trent Chugg and lawyer James Szauer. Senior associate Jonathan Scott advised on trust matters. The University's legal team was led by senior lawyer Joel Seignior.
Harvey Weaver commented:
"We are delighted to have had the opportunity to work with the University of Melbourne team and its other advisers to implement this landmark transaction, which represents a key milestone in the University's strategy to deliver a vibrant campus-based living environment. The two residences are the first purpose-built student accommodation facilities developed by the University and will provide students with the highest quality amenities and support to help them thrive in their academic studies. Student accommodation continues to be an important infrastructure sector in Australia, as universities are progressively looking to institutional investors for long-term financing solutions. The market has developed considerably over the last few years and we are seeing new greenfield, brownfield and acquisition opportunities as the market matures."
Melinda Harris added:
"The partnership between the University of Melbourne and AMP Capital follows on from similar deals we have been involved in with the University of Tasmania, the Australian National University and the University of Wollongong. As the appetite among investors towards "alternative" sectors continues to grow, and with Australia’s universities keen to improve and grow their accommodation options, we expect to see continued levels of activity in this sector. We are also starting to see a number of the structural elements of these deals being adopted in property transactions where these are both social and developer led components."
