Brookfield Asset Management (Brookfield) has acquired a 50% shareholding of Journal Student Living (Journal), a Melbourne-based student accommodation manager, according to an August 5 media release. Brookfield purchased their stake from Citiplan, an Australian integrated property platform, who will retain the remaining 50% interest; the amount is undisclosed.
Brookfield is a global alternative asset manager, overseeing over $925 billion of assets across sectors such as renewable power, infrastructure, private equity, real estate and credit. Brookfield also has a $7.4 billion global student accommodation business, holding over 200 assets and making up more than 60,000 beds across Europe and the US.
Brookfield operates under Brookfield Corporation, a Canadian multinational investment firm. In December 2021, Brookfield and Citiplan formed a joint venture (JV) to purchase a purpose-built student accommodation (PBSA) development site opposite the University of Melbourne on Grattan Street.
PBSA involves housing built specifically for supporting students in their academic and social life, typically centered close to school campuses. The JV has since acquired two additional locations in Melbourne and Brisbane, with Brookfield being the majority shareholder.
The three sites have received development approval, and construction is currently underway with global construction firm, Mulitplex, assigned as head contractor. The first Melbourne site is due to open in time for 2025’s second semester.
“Education is Australia’s fourth biggest export. We have 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 living sector in Australia,” said Ruban Kaneshamoorthy, Brookfield’s co-head of Australia real estate, in the media release.
The three projects will total approximately 2,500 beds and, once completed, will be managed by Journal. The Brisbane location will have 952 beds, Grattan Street (Melbourne), 465 beds, and Franklin Street (Melbourn), 1,019 beds, a Brookfield spokesperson confirmed to FinanceAsia.
Journal also offers a student life program, Journal Life, which focuses on “student engagement, well-being and self-growth with experiential and enriching programs”, according to the media release.
“Student accommodation also has a role to play in helping ease Australia’s housing shortage. Providing quality accommodation for domestic and international students takes pressure off the rental market in university towns. We see further opportunity to work with Australia’s universities to develop more student accommodation sites, particularly on the eastern seaboard,” Kaneshamoorthy added.
Also in the statement, Ian Davidoff, Journal Student Living chief executive officer, said: “Since its inception, Journal has been offering students a unique living experience shaped by creativity, design, culture and a community-focused environment. Working with Brookfield, we are excited to continue to offer international and local students a choice to live in boutique, experience-led accommodation, which gives them the foundation they need to succeed in their goals.”
