15– 19 Regent Street, Woolloongabba is a rare opportunity to acquire an operational purpose-built student accommodation asset in one of the most highly sought after real estate sectors in Australia.
• A modern 309-bed purpose built facility comprising a mix of studios (49.5%), twin share (14.9%) and 5-bed clusters (35.6%) with scope to increase the bed count to 373 through undertaking 64 studio room conversions (to twin share) if desired.
• Commenced operation in July 2016 with peak occupancy of 98% in 2018 and an annual average occupancy of 77%. The average annual forecast occupancy is expected to increase to 87% in 2019 and stabilise at 95% in 2021.
• The facility experiences a high reapplication rate of 33% of total beds.
• Forecast 2019 net income of $1,900,000 approx. and stabilised income of $2,570,000 approx. (forecast).
• Includes up to 76 car spaces providing opportunity for additional income streams.
• Atira have a University of Queensland approved supplier agreement for Student Accommodation until 2020.
• Recent student survey conducted reveals 97.5% of residents note that their time at Atira meets or exceeds their expectations.
• Operations underpinned through a management agreement to one of the most experienced and highly regarded operators in the market – Atira Student Living – or available with vacant possession.
Significant value-add opportunity to continue with occupancy stabilisation and derive a substantial yield premium over core sector real estate returns. Alternatively, the opportunity exists for repositioning of the asset for tourism or residential use (STCA).