Plenary Group has sold its majority interest in the Iglu student accommodation business in Australia to a consortium comprising Global Investment Corporation (GIC) of Singapore and Macquarie Capital.

Iglu is a specialist developer, operator and owner of purpose built off-campus student accommodation. Iglu was established as a start-up business in late 2010 by Plenary Group. The Iglu student is the largest of its kind in the student accommodation sector in Australia.

The property portfolio has a capital value of approximately A$150 million (US$135.6 million). The portfolio consists of 913 beds across three properties in Sydney and Brisbane and includes the Iglu development and management platform.

Ray Wilson, Plenary Group Director, stated:

The sale of Iglu demonstrates Plenary's ability to develop high quality, institutional grade property assets and then to nurture the asset development and management platforms required to enable their growth.

Jonathan Gliktsen, Iglu director, stated:

Australia is now the third most popular international student destination behind the United States and United Kingdom. In addition, domestic interstate student numbers have grown strongly.

GIC and Macquarie Capital have announced that further funding will be committed to build additional Iglu-managed properties that are close to educational institutions and public transport.

Iglu Central in Sydney has 98 beds and opened last year. Iglu Chatswood is set to open for this academic year and will provide 395 beds. Iglu Brisbane, which is to open in 2016, has development approval for more than 400 beds.