Student accommodation group Scape agreed to purchase the Atira student accommodation platform from Goldman Sachs Group Inc. and Blue Sky Alternative Investments Ltd. for A$700 million, The Australian Financial Review reported.
The transaction will solidify Scape's position as Australia's largest student accommodation operator with an existing portfolio of 6,500 beds and with another 8,000 beds still under development.
Six of the properties in the targeted portfolio will be seeded in a new fund with a total equity capacity of A$1.5 billion, while three others will be transferred in a separate Scape-managed development fund, according to the publication.
The A$1.5 billion fund will be backed by Allianz Real Estate and AXA Group, which will initially commit A$450 million and A$250 million to the platform, respectively. Meanwhile, the other fund will be backed by Allianz in partnership with Bouwinvest, Luxembourg fund WPI, a Middle Eastern sovereign wealth fund and the founders of Scape's Australian arm.
Moelis Australia Ltd. and Morgan Stanley are advising Scape on the transaction. The buying group also appointed Herbert Smith Freehills as legal adviser and Greenwoods & Herbert Smith Freehills and Colliers International as advisers on taxation and valuations, the Sept. 7 report added.
Blue Sky noted in a news release that settlement of the transaction is expected on Sept. 30.