Fully leased, prime residential portfolio offered to market in Cairns

A 131-bed ensuite portfolio comprising three fully leased inner-city premium accommodation assets in Cairns has been offered for sale, with the properties suitable for operation as student accommodation, co-living or short-term rental units.

Originally designed for student accommodation, the Parramatta Park properties at 92 Martyn Street, 4 Pembroke Street, and 50-52 Gatton Street, operating under MiHaven Living, are all within 400m of one another and represent an unrivalled opportunity to acquire 100% interest in purpose built, socially sustainable housing in one of Queensland’s most popular cities.

MiHaven Living’s unique hybrid operational model captures all aspects of accommodation demand across various tenant genres, including working professionals, FIFO workers, placement workers at Cairns’ hospitals, airport and shipping industries, students, and many more.

The portfolios’ central location is in proximity to James Cook and Central Queensland University campuses, TAFE Queensland as well as several colleges and schools. Together these institutions capture over 32,000 international students visiting the region per annum from more than 34 countries, making Cairns one of Australia’s most popular ‘edutourism’ destinations.

The city is on track for substantial growth, with its population expected to exceed 259,000 by 2046 however, like the rest of the country, Cairns is experiencing an undersupply of housing, largely due to substantial migration to the coastal city from more metropolitan areas over the last two years, a result of Cairns’ lower cost of living and lifestyle benefits. In addition to surging construction costs which is impacting on new development. residential vacancy was last recorded at 0.6%, with only 65 properties to rent across the City, and apartment rental growth recording 18% YoY.

Additionally, according to the latest Advance Cairns 2024-2025 QLD Budget Submission Report, “there is currently an estimated shortage of 2,000 student accommodation beds to meet the demand of international students wanting to study in Cairns”.

Conal Newland, Head of Operational Capital Markets at Australia and New Zealand said, “Cairns has long been one of Australia’s best-known destinations, and with a significant economic growth forecast and high level of ongoing public infrastructure development in the area, the city is a desirable location for people to live, study and work, now and in the future.

“Limited housing supply, no new projects under construction and historically low vacancy rates makes the opportunity to acquire a portfolio of assets like these, so close to retail, transport, healthcare and education facilities, an outstanding one,” Mr. Newland said.

Paul Savitz, Director, Operational Capital Markets at Savills Australia and New Zealand said, “With some of the country’s best tertiary education providers, facilities and innovation hubs on its doorstep, the MiHaven Living accommodation portfolio offers an attractive investment opportunity to capitalise on Cairns’ strong rental growth in the face of a tight student and residential housing market which looks only to increase as the city continues diversification from the traditional tourism sector.”

The fully leased portfolio provides defensive cash flows and benefits from significant growth opportunities, with Gross Income forecast to reach $2.03m in 2024. With a young average asset age of around five years, the portfolio has experienced strong income growth, achieving a growth rate of 26% per annum since 2019, with occupancy trending at 97.0% over the past 12 months.

MiHaven, founded by James and Sarah Mort in 2011, is a social enterprise focused on the construction and development of sustainable and innovative property developments, specifically student accommodation and registered training facilities, in far north Queensland. Sarah and James have over 70 years od property development industry experience having worked with some of Australasia’s leading, and award winning, development and construction firms.

Expressions of Interest for the assets at 92 Martyn Street, Parramatta Park, 4 Pembroke Street, Parramatta Park and 50-52 Gatton Street, Parramatta Park close at 12 noon (AEST) on Wednesday 1 May 2024.