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GIC takes majority stake in new innovation precinct next to University of Melbourne
SINGAPORE sovereign wealth fund GIC announced on Monday its participation as a majority investor in a new educational and commercial project in Melbourne, Australia.
The other partners in the venture consist of the University of Melbourne, Lendlease and Urbanest, a developer of student accommodation.
Developed by Lendlease, the "innovation precinct" will be majority pre-leased to the University of Melbourne for 42 years.
The project is adjacent to the university's main campus, one kilometre north of Melbourne's central business district, which is accessible via tram and the proposed Melbourne Metro. The metro is sheduled for completion by 2026.
Lee Kok Sun, chief investment officer, GIC Real Estate, said, "This is an attractive opportunity to invest in a unique educational and commercial hybrid project which is in line with the global emerging trend of innovation hubs being situated around universities.
He added that GIC believes the new innovation precinct will generate resilient cash-flows over the long term.