Scape Breaks Ground on World’s Tallest Student Tower Above

Scape has begun building a 58-storey tower above Melbourne’s State Library train station on Swanston Street. The project, called the State Library Exchange, will be the tallest student accommodation building in the world when completed in 2029. Construction started this week on a 55,000 square metre site next to RMIT University’s city campus.

RMIT will lease the first nine levels for teaching and research labs. The upper 46 levels will house 1,420 students in rooms operated by Scape. Scape is part of The Living Company.

Anouk Darling, chief executive of Scape, said the partnership delivers a project above one of the world’s busiest transit corridors. She noted the tower’s direct connection to the Metro Tunnel and State Library Station places it at the crossing point of how Melbourne moves, learns and lives.

RMIT has signed a A$190 million, 15-year lease for the lower nine levels with an option to extend for another 10 years. Craig Carracher, Scape co-founder and chair, confirmed the terms. He said the tower will surpass Scape Franklin, completed in 2021 on Franklin Street, as the world’s tallest student housing structure.

RMIT vice-chancellor Alec Cameron said the investment marks a defining moment for the university’s future. He highlighted the strength of being connected to State Library Station in one of Melbourne’s most important civic and cultural precincts.

The State Library Station is part of the Victorian government’s Metro Tunnel project, which includes twin nine-kilometre rail tunnels and five new underground stations beneath Melbourne’s city centre.

For Scape, the project expands its national portfolio. This follows The Living Company’s recent acquisition of the Boston University Sydney Academic Centre in Chippendale for A$72.5 million, to be operated under the Scape brand.

The Living Company manages over A$18 billion in assets and operates more than 30,000 beds and units across its platforms.

In February, The Living Company signed a deal to develop a 26-storey student housing tower on the former Sydney Fish Market site as part of a 1,400-home Mirvac project. The same month, it gained approval from the New South Wales government for an 1,166-unit build-to-rent project in Sydney known as the Marrickville Timberyards.

Australia’s purpose-built student accommodation market has drawn interest from international firms. Weave Living, based in Hong Kong, bought a student housing property in Sydney’s Ultimo suburb last month.

In August, Warburg Pincus said it is expanding its rental accommodation venture with Australia’s Kio Investment Management to include student housing. The partners aim to develop a A$2.5 billion living sector portfolio in the country.

As of early this year, Australia had 750,000 international students across higher education and English language programmes. The government has committed to an intake of 295,000 higher education international students for 2027, according to CBRE.