UTAS2 Purpose Built Student Accommodation
40 Melville Street, Hobart, Tasmania
Following on from the initial University of Tasmania PBSA transaction where Tetris Capital advised DIF Capital Partners on the long-term lease acquisition of the UTAS student accommodation portfolio, Tetris Capital was mandated directly by UTAS to manage the design, construction, financing and ongoing asset management of the next stage of student accommodation for the University of Tasmania. The project involved the development of 422 beds of accommodation as well as additional university areas to support UTAS’ growing presence in the Hobart CBD.
Construction of the new facility was undertaken by Hutchinson Builders that were selected following a tender process ran by Tetris Capital. Completion was achieved ahead of schedule, in time for Semester 1, 2021 and the asset was acquired by DIF Capital Partners at Commercial Acceptance, joining its existing portfolio of UTAS student accommodation assets. Programmed have been contracted to provide the long-term maintenance of the project.
Acting as both financial advisor and developer, Tetris Capital oversaw and financed construction of the new facility on behalf of UTAS, using a mixture of ANZ bank debt and construction equity through a mezzanine finance arrangement with a non-bank listed property fund.
This process was conducted in parallel to Tetris arranging the financing for the sale of the future operations of the asset to existing UTAS student accommodation portfolio owners, through additional equity and further senior debt financing from Australian fund manager IFM Investors.
Tetris Capital will remain involved with the project throughout the concession period as asset manager for the ~2,200 bed portfolio.
University of Tasmania
Construction Equity Investor
Design, build, finance (DBF)