Increased enrolments from overseas students has prompted Adelaide’s key university to sign a million-dollar leasing deal for all 39 apartments in a new residential tower in central Adelaide.
The East West apartment project, located in the heart of the city’s university precinct on North Terrace, has a range of one and three bedroom residential apartments for ongoing use by owner-occupiers, but the leasing deal by the University of South Australia Students Housing Association will see all 39 apartments rented to international students for five years, with an option to renew for another five years.
Apartment developer Guava Lime says the deal will give investors a 6.9% guaranteed income for the life of the lease, after which the apartments can be easily reconfigured.
“Increased numbers of international students are taking up the option to study in Adelaide and they are demanding a much higher standard of accommodation than ever before,” said Guava Lime director Con Zahos.
“They want to be close to university facilities, as well as public transport and shopping.” Zahos says East West apartments, to be built opposite the Art Gallery of SA on North Terrace, meets all of those requirements in addition to providing a significant investment vehicle for overseas and local investors.
Zahos – a partner in architectural firm Loucas Zahos which is managing the project – said the apartments had been designed with an emphasis on quality and detail so they appeal to apartment dwellers, ensuring a life beyond students.
“Since the project’s unveiling in mid-September we have already attracted significant interest from buyers in South Australia, interstate and overseas,” he said.
“Many are keen to reap the tax benefits of buying an apartment which can generate a guaranteed income for at least five years, and are attracted by the option of being able to move in later on.”
University of South Australia Students Housing Association Manager Tricia O’Donovan said East West was the most upmarket housing option to be offered to international and Australian students.
“The design and fit out of these apartments will be better than the students’ own homes and will help attract more international enrolments to Adelaide,” O’Donovan said.
“Already, around 2,500 international students have chosen to study in Adelaide and this is expected to increase 15% per annum.”
Construction of East West apartments will start next month, with the apartments to be ready for students to move into at the start of the 2005 academic year. The University of South Australia Students Housing Association will manage the placement of students in apartments.
Apartments are available in one or three bedroom configurations, and feature spacious living and dining areas, balcony and state-of-the-art kitchen including dishwasher and quartz stone bench tops. They have been designed to be easily reconfigured to two bedrooms at a later date.
Selling agent Peter Price Real Estate says apartments are priced from $250,000 and can be secured for a 10% deposit. Final payments will be due on settlement in early 2005.
