The 3,334 square metre block in Kings Square where the developer is adding 800 beds to the CBD has settled this week.
A consortium led by Sirona Urban has paid $25 million for a block of land in Kings Square, where it will progress an 800-bed student accommodation project.
The land, purchased from Seven Group Holdings subsidiary Seven Entertainment, was announced late last year, but settled this week following a lengthy due diligence period.
Lease Equity negotiated the off-market deal for the 3,334 square metre site, which attracted $7,499/sqm.
Speaking to Business News, Lease Equity managing director Jim Tsagalis said the student accommodation project was a win for the CBD and would complement the nearby ECU City Campus.
“It’s exciting for the CBD that something of this scale will be developed,” he said.
“When you add this to the student accommodation projects already being constructed, I think we’re going to add about 3,500 to 4,000 more student beds to the city.
“It continues to show what we are calling the third economy. We have office workers and we have tourists but now with student beds it’s a third economy.
“Hopefully we will have more residents soon but this is a form of that.”
This move follow the Sirona Urban’s recent completion of its $150 million, 736-bed, 30-storey student accommodation project on Wellington Street in Perth.
Sirona Urban managing director Matthew McNeilly said this and Sirona’s proposed Fremantle student accommodation project would help fill a growing need for more student beds in Western Australia.
“Perth is facing a shortage of purpose-built student accommodation, with current supply meeting less than 10 per cent of demand according to recent Urbis data,” he said.
“These projects in the Perth CBD and Fremantle enable us to smoothly transition from our recently completed UniLodge Perth Central … to development our second and third premium student accommodation facilities.”
Mr McNeilly added that the Perth project would contribute to the $5.2 billion Perth City Link development, designed to connect Northbridge with the CBD.
