Property, Projects and Infrastructure in Higher Education

Overview

Australian universities manage some of the country's largest and most complex property portfolios. They are buying, selling and redeveloping land, and replacing low-rise campuses with vertical, mixed-use precincts that bring together industry, health and commercial partners. Each project raises its own questions: from what is the optimal structure to use, to planning and environmental approvals, heritage constraints, construction risk, funding conditions, long-term leasing and the governance standards that come with public institutions.

Clayton Utz brings together real estate, construction, planning, environment and projects lawyers who work with universities every day. We have advised the higher education sector for more than 30 years, from single-building refurbishments to campus transformations worth billions.

We understand how universities make decisions, how they meet probity requirements and what they expect from their partners. Our advice is practical and commercial, and it keeps your long-term academic and community goals in view.

How we help

Our team supports universities across the full life of their property and infrastructure assets, including:

Real estate transactions: campus acquisitions and disposals, site consolidation, due diligence and strategies for unlocking value in surplus land
Development and precinct partnerships: project delivery agreements, joint ventures, ground leases, co-ownership and commercial structures with private sector and government partners, both through the development and operational phases
Planning and development approvals: master planning, changes to planning controls, approval pathways and related disputes
Environmental and heritage approvals: environmental assessments, contamination, biodiversity, and Aboriginal and historic heritage
Construction and procurement: delivery model selection, tendering, design and construct contracts, consultant engagement, claims and dispute avoidance
Infrastructure delivery and project financing: major capital works, research facilities and the implications of Commonwealth and State funding
PPPs and government-funded infrastructure: structuring, procurement and negotiation of public–private partnerships
Native title and land access: native title and cultural heritage due diligence, agreements and land access strategy
Leasing: commercial, retail, student accommodation and research facility leasing, acting as landlord or tenant

Case Studies

Western Sydney University – Bankstown Campus

Advised the University on its strategic partnership with Walker Group to deliver a $300m vertically integrated campus. Our work covered the landholding and development structure, including a long-term ground lease, development agreements and leasing and building management arrangements. We also advised on the University's procurement guidelines so that its probity requirements were met. Separately, we advised on the procurement and negotiation of a Project Delivery Agreement with Stockland to turn 99 hectares of the Penrith campus into a mixed-use precinct, and on a similar arrangement between the University with Mirvac, for the redevelopment of its Werrington campus.

Monash University – mRNA vaccine facility

Acted for the University as landowner on the deal that brought the southern hemisphere's first mRNA vaccine facility to its Technology Precinct. We reviewed and negotiated a complex suite of leases, including a ground lease between Monash and the State of Victoria and a sublease to Moderna. The leases had to line up with State and Federal funding agreements that were being negotiated at the same time.

Macquarie University – Central Courtyard Precinct

Acted on all aspects of this circa $250 million redevelopment, which includes three new buildings and two student residential towers designed to a Green Star rating. Our work ran from engaging the design consultants through the tender phase to finalising the design and construct contract, and then advising on claims during delivery.

University of the Sunshine Coast – Petrie Campus Foundation Facility

Advised on this $120m project, the first stage of the planned 10.5 hectare Moreton Bay university precinct. We advised on the choice of delivery model, prepared the contract documents and procured the main construction works package. We also advised on the effect of Commonwealth funding and on compliance with the Building Code.

La Trobe University – AgriBio Research Centre PPP

Acted for the incorporated joint venture between La Trobe University and the Victorian Government on the procurement of this $288m PPP, a world-class agricultural and biological research centre at La Trobe. We advised on strategy and supervised the preparation and negotiation of the key project and supporting agreements.

Australian Catholic University – Planning approvals

Advised the University on proposals to increase the number of students permitted on campus as part of a specific development proposal, including successful Land and Environment Court litigation.

Key Considerations

Ownership and development structures

These need to be tailored to meet the strategic needs of the University, with flexibility around governance to accommodate changes in the economic, building and education sectors. The long term nature of many of these arrangements, many of which are completed in stages, mean there will always be changes throughout the delivery process.

Governance requirements

Understanding the governance requirements of each of the parties involved upfront will help to reduce surprises and allow the process to build in the necessary touch points along the way so that decisions can be made logically and within established meeting cycles.

Development risk

The best way to manage development risk is to choose who you partner with carefully, look for alignment in short, medium and long term goals for your projects.