Canadian multinational investment manager Brookfield has taken a half stake in a Melbourne-based student-living platform.
Brookfield acquired the 50 per cent stake in Journal Student Living from integrated property business Citiplan, which will retain the other 50 per cent interest.
Brookfield and Citiplan partnered in December, 2021 when they acquired a Melbourne purpose-built student accommodation (PBSA) development site at Grattan Street opposite the University of Melbourne in inner-northern Parkville.
The joint venture has since acquired a further two sites, in Melbourne and Brisbane, with Brookfield as the majority shareholder.
The three projects, of about 2500 beds, are under construction with Multiplex as head contractor.
The first asset in Melbourne is due to open before the second semester of 2025.
Journal Student Living will manage all three assets once complete.
According to Brookfield, “Journal provides its residents with an immersive, locally focused living experience” and also runs “a market-leading student life program, Journal Life, focused on creating student engagement, well-being and self-growth with experiential and enriching programs”.
Brookfield Asset Management co-head of Australia real estate Ruban Kaneshamoorthy said education was Australia’s fourth biggest export with the third-highest number of enrolled international students globally but “limited high-quality purpose-built student accommodation in our capital cities relative to other education hubs”.
“This provides an enormous opportunity, and we view student accommodation as one of the best ways to invest in the student living sector in Australia.
“Student accommodation also has a role to play in helping ease Australia’s housing shortage.”
Brookfield has a $US7.4 billion global student accommodation business, with more than 200 assets comprising more than 60,000 beds across Europe and the US.
