Ashurst has advised the Australian National University (ANU) on its 30-year concession agreement with investment management firm H.R.L Morrison and Co over nine student residences capable of housing around 3,760 students on campus. This is the largest student accommodation transaction of this type to successfully come to market in Australia and reflects the size and status of the ANU as one of Australia's premier universities.

The contract includes a new 500-bed student residence, currently under construction. In return for the investment, which the ANU will receive as an upfront payment, the Consortium will receive revenue from the rental stream for the next 30 years.

The long-term arrangement ensures the University retains full ownership of the residences and provides the ANU with continued responsibility for student accommodation operations. Facilities maintenance will be carried out by Spotless as a subcontractor to the consortium who will also carry out a range of improvement works at the residences.

The transaction involved the careful structuring of demand risk parameters and the development of regimes to recognise the interfaces associated with the fact that the ANU retains the primary pastoral care responsibility with students while at the same time Spotless is responsible for facilities maintenance. The regimes developed in the contract also cater for the dynamics of the academic year and provide minimal impact on students.

Lead partner on the deal Harvey Weaver comments: "We are delighted to advise the ANU on this transaction which is one of the largest of its kind to reach close. It successfully achieves a balance between the involvement of both the ANU and the private sector in the provision of high quality student accommodation and will no doubt serve as a blueprint for similar transactions in the future.

Following on from our role advising the University of Wollongong on its innovative student accommodation project, this represents another significant role for the Ashurst team and we are currently advising a number of other universities in this area. Student accommodation is certainly one of the "hot" infrastructure sectors at the moment and we are pleased to be at the forefront of the development of this market."

Harvey was assisted by counsels Melinda Harris and Rob White, with lawyer Alessandra Yen (Infrastructure); partners Peter McCullough and Barbara Phair, with senior associates Sanjay Wavde and Elke Scevak (Tax); partner Rehana Box and lawyer Marie Vlassis (Insurance); counsel Julia Sutherland, and lawyer Emma Raynor (Workplace Health and Safety); and partner Steve McKinney (ACT legislation).