Hong Kong-based real estate private equity firm Gaw Capital Partners has purchased an office building in Perth, Australia, with the aim to convert the building into student dormitories, the firm announced today without disclosing financial details.
The Telstra Building on Stirling Street is located near Perth's central business district. The eight-story office property with 20,000 square meters has nearby access to a variety of public transport and lifestyle options.
Gaw Capital plans to convert the building into student accommodation for over 500 students. The project could be the first of numerous conversions of older style office buildings into alternative uses, the firm said.
By the end of 2020, Australia’s under supply of student accommodation is projected to increase by 39% to over 400,000 units as the rate of full-time higher education student growth continues to outpace the development of student dorms, according to Knight Frank research.
"Education is already one of Australia’s biggest export earners and there continues to be strong growth in the number of international students arriving in the country," said
Kenny Gaw, managing principal and president of Gaw Capital.
The student accommodation sector is not only good for the state economy, but also good for investors as the occupier demand is less cyclical, less volatile and less uncertain than it is within other property asset classes.
Gaw Capital launched Campus Hong Kong last year, the city's first shared accommodation created specifically for students with living spaces, leisure facilities and affordable rents.