Allianz Real Estate has partnered with accommodation provider Scape Australia to establish Scape Australia JV 2, an Australian dollar–denominated, close-ended fund targeting the purpose-built student accommodation (PBSA) market in Australia.

The fund is targeting an equity raise of A$500 million (US$377 million).

Allianz will own 50 percent of the fund, with the remainder to be held by like-minded long-term institutional investors, according to an announcement from Allianz Real Estate.

The fund’s strategy will leverage demand for PBSA assets across six Tier 1 cities — Sydney, Melbourne, Brisbane, Perth, Canberra and Adelaide — and build a long-term, cashflow-producing portfolio by investing in develop-to-core as well as stabilised or stabilising assets.

“Education has become the third-largest export subsector for Australia, and the purpose-built student accommodation market is markedly under-penetrated relative to the United Kingdom and United S