Student housing: Goldman Sachs in JV with Blue Sky PE

Goldman Sachs Asia Special Situations Group has formed a joint venture with Blue Sky Private Real Estate to establish a new student accommodation platform.

The joint venture involves Goldman Sachs Asia Special Situations Group and Blue Sky Private Real Estate pursuing investment opportunities to develop student accommodation projects across Australia and New Zealand, with each entity owning 50 per cent of future projects developed under the joint venture

Allens advised on the legal and tax aspects of the transaction.

Corporate/PE Partner, Emin Altiparmak noted the ongoing opportunities provided by asset-backed investment strategies within the Australian student accommodation sector.

'Working with Goldman Sachs on the joint venture with Blue Sky Private Real Estate reflects the growth potential in student accommodation as both a real estate asset and management investment opportunity.'

'There is a real sense of opportunity in the student accommodation market. We are pleased to have been able to help deliver this transaction for the Special Situations Group at Goldman Sachs,' Emin said.

The joint venture will target a portfolio of between 5,000 to 10,000 beds.

For Real Estate Partner, Michael Graves, the joint venture continues a busy year in the student accommodation sector. Michael commented that 'the sector is evolving rapidly, with participants increasingly seeking to obtain a competitive advantage by implementing sophisticated structures which are agile and able to be rolled out quickly and cost effectively'.

Mark Malinas, co-head of the Allens private equity practice said education is a hot sector for PE.

'Our private equity clients are actively focused on the education sector. It's really one to watch.'

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