Heitman to Develop Perth’s Biggest Student Housing Project With Aussie Builder Erben

US fund manager Heitman has teamed with Australian builder Erben to develop a 1,146-bed student housing project in Perth.

As part of the Perth City Link urban renewal scheme, the companies will transform a plot in the heart of the central business district into Western Australia’s largest purpose-built student accommodation asset, Heitman said Monday in a release. No financial details were provided.

The 19-storey project is scheduled for completion in December 2027, with the first occupancy targeted for February 2028, said Chicago-based Heitman, which entered Australia’s PBSA market in 2018 with development of a 335-bed facility in Melbourne, Infinity Place, which the firm still owns. 

“Fuelled by student demand, Perth is experiencing substantial growth in higher education campuses, which is transforming its city centre into a major Australian and regional education hub,” said Brad Fu, head of Asia Pacific acquisitions at Heitman. “This development reaffirms Heitman’s long-term commitment to the Australian market, and we anticipate it becoming a focal point for the growing student community in Perth’s CBD.”

Connected Campus Living

Located on Roe Street next to the new Edith Cowan University City Campus, the PBSA site is above Perth Railway Station and next to Perth Central Station, providing access to the city’s largest transport interchange. The planned development will encompass 37,000 square metres (398,265 square feet) of gross floor area across student accommodation and ground-floor retail.

The facility promises a suite of amenities, including communal kitchens, a gym and study lounges. The project targets a 5 Green Star rating and incorporates sustainability features like energy-efficient building systems and a solar array, the companies said.

Locally based Erben specialises in urban infill and social infrastructure projects. In November, the developer won state approval for the PBSA project on one of the last available lots created by sinking Perth’s railway and bus port to link the CBD and the Northbridge inner suburb.

“Perth City Link is one of Western Australia’s most transformative urban redevelopment projects, reconnecting the CBD with Northbridge,” said Erben managing director Luke Reinecke. “Erben has a long history developing PBSA assets across Australia, and this partnership with Heitman brings a depth of global real estate experience that strengthens both the vision and execution of this development.”

Fukuoka Foray

Heitman’s latest splash Down Under comes after the $48 billion fund manager last month announced the closing of two real estate buys in Japan’s Fukuoka, with the firm picking up a large warehouse and a portfolio of nine residential assets in the biggest city on Kyushu island.

Heitman joined with capital partners Mitsubishi HC Capital Realty and SMFL Mirai Partners on the purchase of the 58,433 square metre shed, called Tosu Central Distribution Center, and tied up with the unit of Sumitomo Mitsui Finance and Leasing to acquire the 316-unit housing portfolio.

The US firm is expanding its Japan footprint after acquiring three apartment buildings in Osaka in late 2024 under its global core-plus strategy. The investment in the 257-unit portfolio followed the firm’s entry into the Japanese residential market in late 2021 with the acquisition of eight multi-family properties totalling 329 units in Tokyo.