Dealmaking has ground to a halt at Blue Sky Alternative Investments, but its rivals show no sign of slowing down.
Street Talk understands student accommodation provider Scape - which competes for assets with Blue Sky's student accommodation funds - is set to restock its acquisition warchest with a $500 million fundraising.
Sources said Scape was seeking to close the new $500 million fund by the end of this week and had secured the support of three international investors who were new to the local sector.
It would be Scape's second fund and see it cashed-up and ready to buy more student housing properties. It has told potential investors it is seeking more deals in Sydney and Melbourne, and looking to double its existing portfolio.
Scape's first fund is worth about $600 million and is backed by Dutch giants APG and Bouwinvest, and the Hong Kong investment arm of the world's largest bank ICBC.
The student accommodation provider has 11 buildings and about 5500 bedrooms across the UK, Brisbane, Sydney and Melbourne. Its biggest building houses about 800 students, while the smallest has 50 bedrooms.
It's expected to take Scape a few years to invest the new fund, and it is specifically targeting Sydney and Melbourne.
The raising would take Scape's assets under management above $1 billion, which is likely to put it in the same size range as rival Blue Sky.
Blue Sky has $4 billion in funds under management, including $2 billion in private real estate. Industry sources estimate about $1 billion of that could be tied up in its student accommodation business, which is also backed by Goldman Sachs.
It comes as demographic changes are piquing investors' interest in retirement living, healthcare and student accommodation, according to a recent survey by real estate services firm CBRE.
The Australian Financial Review revealed Scape's plans for the new fund in September.
The provider launched its first purpose-built facility in Melbourne two years ago and has since acquired more sites in Brisbane and Sydney, as well as Melbourne.
Elsewhere, Ryan Davis, who has been regional head of EY's private equity tax unit since 2015, is leaving the firm.
As revealed by Street Talk, EY started calling key clients on Wednesday morning to inform them of his departure. Davis specialises in tax consulting around mergers & acquisitions, investments and fund raising.
It's understood Sydney-based Davis is likely to continue to consult to domestic private equity, special situations and other players involved in M&A.;
