Sharechat Logo

Infratil sells 50% stake in ANU student accommodation

Monday 1st April 2019

Text too small?

Infratil announced the conditional sale of its 50 percent stake in a Canberra student accommodation 30-year concession to AMP Capital for A$162 million. 

Infratil, which is managed by Morrison & Co, acquired the stake from the Australian National University in 2016 for almost A$85 million. In November it announced a strategic review of the investment, saying it had expected it to become a cornerstone element in a larger portfolio but that didn't happen. The other 50 percent is owned by Australia's Commonwealth Superannuation Corp. 

“We continue to believe that the ANU portfolio is the standout portfolio in the on-campus PBSA sector in Australia in terms of both scale and quality. However, the broader platform that Infratil intended to develop using the ANU portfolio as a cornerstone has not eventuated," it said today. 

Since acquisition, the portfolio has been transitioned to private sector facilities management and expanded to include an additional 450-bed residence in response to significant unmet demand from students.

The sale, which is conditional on counterparty consents, allows Infratil to focus its investments on its established platforms targeting renewable energy, retirement services, and growth in data and connectivity, Morrison & Co executive Mark Mudie said.  

The transaction is expected to settle in mid-April. On completion, Infratil expects to receive cash proceeds of approximately A$162 million, with final proceeds adjusted for normal working capital, it said. 

The stock last traded at $4.17 and has gained 14.3 percent so far this year. 

(BusinessDesk)



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

AFT Pharmaceuticals starts to hit its straps
Crown seeks US$100m from Tui operator; Prospector moving on
Pacific Edge goes back to shareholders for another $20m
Crown seeks $100m from Tui operator Tamarind
Ryman underlying annual profit may rise by up to 17%
NZ dollar eases on increasing US-China doubts, lack of news in Fed minutes
From dog tucker to top dog: economists ask how Northport can be Auckland’s best replacement
MARKET CLOSE: NZ shares rise; Metlife jumps on takeover talk
NZ dollar eases on technical factors, buoyed by higher dairy prices
RBNZ eyes Westpac Australia money laundering failures

IRG See IRG research reports