UniLodge snapped up by Japanese investors in $600m-plus deal
The sale of UniLodge has defied expectations as Japanese investors bet big on Australian student housing amid ongoing bed shortages in major cities.
An international consortium backed by Japanese finance houses has swooped on UniLodge, the country’s largest manager of student accommodation, with the $600m-plus sale a strong indicator of confidence in the sector.
International student enrolments have been under pressure after a federal government crackdown, but there is still a shortage of student beds in major cities, with investors looking to capitalise on pent-up demand.
The purchase by the low-profile Samty Holdings, which is one of Japan’s top accommodation developers and fund managers, will see it buy a majority stake in UniLodge from Swiss-based Pamoja Capital.
The move gives the buyer a presence in all major Australian cities, as UniLodge manages about 45,000 student units and has been expanding despite the cooling in international student numbers.
The sector is still in favour and the sale attracted some big suitors, including US group Greystar and investment house Warburg Pincus, but Samty prevailed with a sale price mooted at more than $600m, according to market sources.
Japanese companies are already the biggest drivers of investment in commercial property development and they have backed projects ranging from towers by Lendlease to Mirvac’s new Harbourside development in Sydney.
Samty has a strong reputation in Japan. It was taken private last year by international private equity firm Hillhouse Investment, via its real estate investment arm Rava Partners, along with Daiwa Securities Group Inc.
Getting into student accommodation puts Samty into a sector with a strong earnings profile, and industry players suggested UniLodge sold at a multiple of about 16 times earnings. UniLodge has an “asset-light” model where it manages rather than owns the student complexes. It is the largest purpose-built student accommodation operator in Australia and New Zealand. A unit of the company, Essence Communities, is also the biggest white-label build-to-rent operator in Australia.
UniLodge has benefited from the consistent demand from local and international students as there is still a bed shortage for students that has spilt over to the city rental markets. This has driven high residency demand and stable operational performance across the portfolio.
Samty Holdings president and CEO Yasuhiro Ogawa said the purchase supports the company’s “long-term ambition to expand its role as a leading provider of accommodation services in the Asia-Pacific region”.
Daiwa Securities Group president and CEO Akihiko Ogino said the purchase was a sound strategic step for Samty as the company drew on its regional expertise and partnerships to expand its global business platform.
Pamoja Capital, the outgoing majority shareholder of UniLodge, plans to further deepen its support for the philanthropic endeavours of the McCall MacBain Foundation. The McCall MacBain Foundation has contributed more than $500m for scholarships and educational opportunities, environmental initiatives and healthcare.
UniLodge, set up in 1996, has facilities that are owned by major universities and institutional investors. The owners of UniLodge launched a sale process via UBS after Greystar came forward with an approach to buy the business and the interest of listed groups was also tested.
The Australian reported in 2024 that Greystar, with backing from The Future Fund, had bought a $1.6bn student housing portfolio from Singapore company Wee Hur, which is controlled by Singapore sovereign wealth fund GIC.
Originally published as UniLodge snapped up by Japanese investors in $600m-plus deal
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