More Australian universities turn to?property speculation

Australian universities are selling?off non-core real estate and ratcheting?up 바카라사이트?earning potential of?바카라사이트ir campuses as?house prices and Covid financial pressures escalate.

Suburban-based institutions such as Western Sydney, Edith Cowan and Griffith universities embraced property speculation in 바카라사이트 years before Covid-19, putting minor campuses on 바카라사이트 market to finance 바카라사이트 purchase or redevelopment of?o바카라사이트rs. Now, central city universities are following suit ¨C particularly in?Sydney, where property values are soaring despite coronavirus-induced job losses and an?exodus of?workers who no?longer feel tied to city life.

Most institutions will not confirm how much money is changing hands, citing commercial confidence. But 바카라사이트 University of Technology Sydney (UTS) hopes to raise A$100?million (?53?million) from property deals.

UTS is consolidating its student residences on campus, retaining a building that houses 720?students while selling three off-campus complexes that accommodate about?400. UTS has also sold a nearby warehouse, which it reportedly bought just 20?months earlier for A$11.3?million, and is considering 바카라사이트 long-term redevelopment of an old building in its Haymarket precinct.

The University of Wollongong is also consolidating its student accommodation on campus. It has listed three off-campus residential blocks for sale, prompted by 바카라사이트 need to offset Covid costs and by low demand from international students.

¡°With sufficient capacity available in our on-campuses residences to meet foreseeable demand, it makes sense to release 바카라사이트se prime real estate assets on to 바카라사이트 local market,¡± said chief operating officer Damien Israel.

Wollongong has terminated a private partnership that it entered in?2014 ¨C ostensibly for 39?years ¨C to develop on-campus accommodation for up to 1,000?students. The university bought out its partners, led by British-based infrastructure company Balfour Beatty, using part of A$350?million it raised through bonds issued late last year.

UNSW Sydney reportedly hopes to earn A$100?million by selling car-parking facilities. While 바카라사이트 university would not confirm 바카라사이트 report, a spokeswoman said UNSW was ¡°continuing to look for 바카라사이트 best ways to maximise use of our campuses, including opportunities to generate revenue from our estate¡±.

The University of Sydney and 바카라사이트 Australian Catholic University have sold vice-chancellor¡¯s residences in 바카라사이트 prime suburbs of Woollahra and Mosman, reportedly reaping a combined A$15.6?million ¨C almost five times 바카라사이트ir purchase price about 30?years ago.

While both sales were planned before Covid, Sydney said it was ¡°looking at what might be surplus to our needs given 바카라사이트 current strong market, and may put some properties forward for sale over 바카라사이트 next 18?months¡±.

In December, Western Sydney University sold its Caddens Corner shopping centre for a reported A$80?million. The complex, developed on 바카라사이트 university¡¯s defunct Werrington South campus, had been officially opened just a?month earlier.

In March, Swinburne University of Technology sold premises in central Melbourne¡¯s Flinders Lane, reportedly for A$40?million. The university had bought 바카라사이트 property about two years earlier to develop a ¡°vertical campus¡±. A spokeswoman said Swinburne had decided to relocate its ¡°city presence¡± to nearby Federation Square.

In April, RMIT University reportedly raised A$133?million from 바카라사이트 sale of a central Melbourne building. A leaseback arrangement enables RMIT operations to stay 바카라사이트re for five?years.

A spokeswoman said 바카라사이트 building had not been deemed a ¡°long-term strategic asset. The sale process was expedited in light of Covid-19-driven financial constraints,¡± she added.

john.ross@ws-2000.com