Situated just 600 metres from UNSW’s Kensington campus, the property at 159-171 Anzac Parade & 1 Lorne Avenue spans 7,884sqm of lettable area on a 2,410sqm site. With a weighted average lease expiry (WALE) of 13.5 years, the asset provides long-term income security and a strategic foothold for the University in the purpose-built student accommodation (PBSA) sector.
The sale was brokered by David Curtis, Louise Burke, and Raphael Sebban of Cushman & Wakefield in conjunction with JLL’s James Barber, Luke Billiau, Jack Bergin, and Andrew Rojek, with interest from both domestic and offshore investors.
David Curtis, Cushman & Wakefield’s Co- Head Alternatives, Capital Markets, ANZ highlighted the property’s prime corner location, noting its high exposure frontage and connectivity via bus and light rail to Sydney’s CBD and beaches. “The asset’s super-prime location within Sydney’s sought-after Eastern Suburbs provides exceptional accessibility and lifestyle amenities, making it a highly desirable investment.”
Mr Curtis also pointed to the CPI-indexed annual rental increases as a key factor in securing long-term, defensive income. “While uncapped market reviews every five years, with the next review in 2029, provide opportunities for enhanced rental growth. Additionally, favourable planning controls offer potential for future height uplift and redevelopment, subject to council approvals” he said.
Jack Bergin, JLL’s Head of Living, underscored the property’s strong covenant and long WALE, calling it an example of the high-quality PBSA investments currently in demand. “This asset’s strategic location near UNSW, combined with its long-term lease structure and potential for future development, makes it a compelling investment opportunity.”
The transaction saw robust competition from a diverse range of bidders, reflecting the strong investor appetite for PBSA assets. According to Mr Bergin, “We saw interest from established PBSA operators, institutional investors, and universities alike. The depth of the buyer pool underscores the increasing recognition of PBSA as a core real estate asset class.”
With student accommodation continuing to attract institutional capital amid rising demand, UNSW’s acquisition reinforces the growing importance of PBSA within Australia’s education sector.
Mr Curtis said “This latest purchase signals the University’s commitment to securing high-quality accommodation options for its expanding student base, while also benefiting from the asset’s long-term investment potential”.
