Commercial

The Living Company announces ~A$1bn investment in Melbourne CBD

The Living Company founder and joint CEO Stephen Gaitanos

Real Estate Today Editorial Team

23 Sept 20267 min readCommercial

The Living Company (TLCo) has established the State Library Exchange Partnership, a new single asset partnership, to acquire on a forward funded basis the over station development above the newly opened State Library Station in Melbourne. The development project will be delivered by TLCo.

Located on the corner of Swanston Street and La Trobe Street in Melbourne’s CBD, the state-of-the-art development will deliver over 1,400 purpose-built student accommodation beds and over 12,000sqm of commercial and retail space.

In one of the largest leasing deals in Melbourne’s CBD in recent years, RMIT University has agreed to occupy all the commercial space (c.12,000sqm) for 15 years. This follows the highly successful Franklin Street collaboration with TLCo, where RMIT’s University Pathways (RMIT UP) students live and learn under the one roof.

A leasing campaign for the c.400sqm of retail space will commence closer to completion and includes a high visibility tenancy that overlooks the entrance to State Library Station.

The project, known as “State Library Exchange”, will remain under long-term ownership and professional management by TLCo, adding enduring housing supply to Melbourne’s chronically undersupplied rental market.

With over 8,000 operational purpose-built student accommodation beds under management in Melbourne, this new investment reflects the conviction that TLCo has in Melbourne as both a global education hub and an attractive market for institutional-grade student accommodation.

The Living Company Joint CEO and Co-Founder, Stephen Gaitanos, said the investment represents a major milestone for the company's operations in the Victorian capital.

“State Library Exchange will be the largest mixed use, student accommodation, co-living & education asset we have ever delivered.”

“Having first acquired the site over a decade ago, the journey to today’s announcement has been a long time coming. Our masterplan was approved in 2018, with DA approval received in 2024. Following the recent completion of works on site relating to the Metro Tunnel Project, we can now commence main works construction of State Library Exchange.”

“We are excited to develop, own and manage an asset that will transform Melbourne’s skyline. Located above the new State Library Station and adjacent to iconic landmarks such as State Library, Melbourne Central, and RMIT University, the State Library Exchange project will add further vibrancy to this important precinct.”

“State Library Exchange Partnership will see a significant co-investment from TLCo’s flagship Scape Core Fund, who will retain a 50% interest in the project, alongside investment from a Malaysian pension fund and international real estate investment manager Bouwinvest, a long time TLCo capital partner. TLCo will also retain a minority co-investment in the Partnership.”

“This is a clear sign that real estate investors are prepared to invest in Melbourne and that whether it be the current Labor government or a new government elected later in the year, that Victoria needs to welcome domestic and international investment and remain open to the business community.”

With a forecast end value of approximately ~A$1bn, State Library Exchange is being delivered under a fund-through agreement and is due to complete in June 2029. The Partnership's senior debt financing has been confirmed by a syndicate of DBS Bank, Crédit Agricole and O-Bank.

Scape Core Fund was established by TLCo in 2019 and is Australia’s largest investment vehicle for student accommodation exposure. It owns a diversified portfolio of 36 assets across Melbourne, Sydney, Brisbane, and Adelaide.

The Living Company Joint CEO and Co-Founder, Stephen Gaitanos, said

“Victoria continues to operate under a challenging tax regime that is misaligned to the stated ambition of increasing housing supply. Now is the time for change in Victoria which requires policies to attract domestic and international capital and which deliver a changed government agenda. We acquired this site in 2015 and have been frustrated by continued delays in the delivery of the Metro Tunnel Project which now runs directly below our State Library Exchange. 12 years on we finally have the opportunity to start construction above the station slab and as we have repeatedly said, we will deliver an impactful development for the City of Melbourne.”

The Fund Manager of Scape Core Fund, Christine Ooi, said the investment in State Library Exchange Partnership was on strategy for the flagship student accommodation fund.

“Once operational, State Library Exchange will become a landmark, student accommodation-led mixed-use asset with unrivalled transport connectivity to Melbourne’s leading higher education institutions.”

“Acquiring a majority stake in State Library Exchange Partnership was a strategic priority to ensure that Scape Core Fund continues to own the highest quality portfolio of purpose-built student accommodation assets in the country. The Scape Core Fund is confident participating in strategic transactions such as this with the Fund defensively geared at ~30% and 70% hedged in this market., Consistently engaging in active portfolio management and being able to execute on strategic market leading opportunities is instrumental in TLCo being recognized as the #1 Dedicated Living Fund Manager globally in the PERE’s 2026 Core 100 ranking, indicating resounding continued support from our capital partners.”

“Scape Core Fund is actively reviewing a number of opportunities and is currently welcoming new equity partners to participate in the Fund’s growth. The Fund has also welcomed Nicholas Harris, Belinda Robson and David Sinn to the Funds Independent Investment Committee to leverage an even deeper set of skills and commercial experience to drive the outperformance of the Fund.”

TLCo has appointed Built as design and construct partner for State Library Exchange, with completion scheduled for June 2029. The appointment follows Built’s earlier involvement in three large-scale development projects for TLCo in Melbourne: Scape Swanston, Scape Carlton, and Scape Franklin.

In relation to the transaction, TLCo engaged Clifford Chance (legal advisor in respect to corporate matters), HSF Kramer and Allens (legal advisors in respect to property and construction matters), ETC.

Melbourne (commercial leasing advisor), Cushman & Wakefield (financial advisor), PwC and Corrs Chambers Westgarth (tax advisors).

The addition of State Library Exchange Partnership expands the pro forma assets under management of TLCo to ~A$20 billion, 120 properties and ~40,000 beds/units.