Student housing owner and operator Scape Australia has secured a A$434.3m equity commitment from Korea National Pension Service (NPS) to boost its investment strategies in the living sector.
“We are excited to partner with NPS and leverage their expertise to further enhance our offerings and deliver exceptional living experiences for our residents.”
Statement, Scape Australia
The commitment from the $800bn Korean pension fund bolsters Scape’s long-term growth ambitions.
The Build to Rent developments under this partnership will be operated through management company Rent to Live Co, which was established by Stephen Gaitanos and Craig Carracher.
“This strategic collaboration with NPS will allow us to continue delivering high-quality, affordable, and aspirational rental housing solutions in Australia and beyond.
“Our new office in South Korea reflects our commitment to building strong foundations with our partners as we scale our presence across Asia.”
Stephen Gaitanos, CEO, Scape Australia
Scape and NPS already have a strong relationship, which began in 2020 with the Korean fund’s initial investment in Scape’s PBSA Core Program. The program currently holds Australia’s largest portfolio of student accommodation.
“Stephen Gaitanos and I and our entire leadership team are very excited to partner with NPS and leverage their expertise to further enhance our offerings and deliver exceptional living experiences for our residents.
“An exciting time and my sincere thanks to the dozens of advisors and partners (to be thanked separately) and the teams at Korea National Pension Service and Scape Australia who very literally worked 24/7 across US, Europe, Asia, the Middle East and Australia and right through the holiday and family season.
“We are blessed to have such committed partners who believe in the positive change we are making to the living sector, and we thank them and the entire NPS team for their partnership.”
Craig Carracher, Executive Chair, Scape Australia
Recently, NPS has deepened its focus on alternative investments as part of its strategy to boost returns, aiming for a 5.4% portfolio yield over the next five years.
It’s newly created real estate platform investment team plays a key role in identifying opportunities like this, with a focus on acquiring equity stakes in innovative real estate managers.
“With Scape Australia’s extensive experience and expertise, along with its strong base of like-minded investors, we are confident that Scape will continue to grow as a leading living platform in Asia on a global scale.”
Gyumin Im, Portfolio Manager, NPS
The equity commitment follows Rent to Live Co’s launch of its The Timberyards Build to Rent scheme in Marrickville, Sydney. The development comprises 1,000 apartments across a mixed-use precinct.
Backed by Dutch fund managers APG and Bouwinvest, the A$1.5bn scheme includes 100 affordable apartments, 3,000 sqm of retail space, and 8,000 sqm of public green areas.
In June 2023, Rent to Live Co entered into a joint venture with APG and Bouwinvest to develop and acquire Build to Rent assets in Australia.
“This investment will support our mission to provide exceptional living experiences across a diverse range of residential sectors, including Build to Rent and beyond.”
Statement, Rent to Live Co.
Scape currently manages a portfolio of 19,000 student bedrooms across 38 buildings in Adelaide, Brisbane, Sydney, and Melbourne.
Its development pipeline includes an additional 4,000 bedrooms across eight schemes, while Rent to Live Co has 1,200 apartments in development in Sydney’s Inner West.
Collectively, Scape and Rent to Live Co manage over A$13bn in assets on behalf of institutional capital partners.
