Alternative investments lift JLL Australia

A large student accommodation deal in the alternative investment space has contributed to 10 per cent quarterly growth for JLL.

JLL Australia CEO Stephen Conry Picture: Hollie Adams

A large student accommodation deal in the alternative investment space during the third quarter has contributed to 10 per cent growth for JLL’s Australian arm this calendar year.

The strength over the first nine months has the local market on track to report its ninth year of the revenue growth.

Alternative investments emerged as the standout performer in the third quarter, with revenues up 59 per cent over the year to September compared with the same period last year. Office investments were 29 per cent higher over the period compared to 2018, with $16.3bn in transactions over the year to date. Project management business was up 24 per cent.

JLL Australia chief executive Stephen Conry said the demand for alternative investments had continued to grow as investors looked for alternatives to spread their capital. In the third quarter, JLL was the lead transaction adviser to student living platform Atira when it was acquired by student accommodation provider Scape for $700m.

“Across all sectors — office, retail and industrial — it is unlikely that we will hit the $33.4bn record high of investment volumes recorded in 2018, but year-to-date volumes are already tracking at $23.4bn,” he said.

“Sydney remains one of the most attractive investment destinations globally and has accounted for over 50 per cent of transaction volumes in Australia this year, with Melbourne accounting for 24 per cent and Brisbane at 15 per cent.”

Brisbane emerged as JLL’s strongest performer in the third quarter, with large deals including the $524.75m sale of 400 ­George Street.