23
ANNUAL REVIEW 2018
ANNUAL REVIEW 2018
GSA Coral is the only globally diversified
student accommodation investment fund
in the market providing immediate
investment access to institutional grade
purpose-built student accommodation
(PBSA) assets.
GSA Coral Portfolio SCA SICAV-SIF (‘GSA Coral’) is a regulated investment company
supervised by the Commission de Surveillance du Sector Financier (CSSF) in Luxembourg.
It is internally-managed and approved under the AIFMD regime to ensure a rigorous
and transparent reporting structure. It is supervised by a Management Board which
includes two members who are independent of the General Partner, Coral S.à r.l.
WHY GSA CORAL
LETTER TO SHAREHOLDERS HIGHLIGHTS STRATEGY FINANCIALS A LOOK AHEAD THE EVOLVING HIGHER EDUCATION LANDSCAPE GSA CORAL’S GLOBAL PRESENCE Ireland
UK
Spain
Germany
Japan
Australia THE WIDER GSA GROUP MEETING THE NEEDS OF TOMORROW’S STUDENT POPULATION
OUR MANAGEMENT TEAM OUR APPROACH TO ESG GLOSSARY GET IN TOUCH
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WELCOME
A very warm welcome to the
GSA Coral Annual Review for
the year-end 31 December 2018.
We are pleased to announce that the Fund generated
an average 8.48% return across all share classes, ending
the year in a resilient position at a time of increased
uncertainty in equity markets and the wider world.
The last twelve months have seen a number of very
positive developments for GSA Coral. We have welcomed
new investors which has enabled us to sustainably grow
the Fund by 18% to $251m, allowing continued global
diversification of the investment portfolio. Moreover,
the Fund has consolidated what was a substantial period
of new investment activity across EMEA and APAC in 2017,
notably with new assets successfully launching in Japan
and Australia (in April and June respectively), and Germany
and Ireland (in September). In total, six new assets providing
2,462 beds have become operational.
The successful completion of these assets further
demonstrates our ability to profitably underwrite
new-market entries. Critical to this has been maintaining
best-in-class underwriting and risk management,
supported by the wider resources of the GSA Group
which now numbers over 480 employees worldwide.
GSA Coral has also progressed its strategic objective
to expand its allocation in two markets (Japan and
Ireland), while also investing in new markets having
secured well-located development opportunities
in Adelaide and Valencia. Over the coming years, when
these assets become operational, it will add a further
2,489 beds to the investment portfolio. We now have
allocations to prime grade investments with assets
in the UK, Ireland, Germany, Spain, Japan and Australia,
strengthening the Fund’s position as the only globally
diversified student accommodation portfolio available
to investors.
We are looking forward to 2019 and anticipate
that the next 12 months will see the Fund continue
to increase its exposure to allocations in Japan and
Germany and potentially enter new European markets.
The Fund is also looking into various opportunities
to recapitalise investment holdings to redeploy capital
into new markets.
Longstanding competition between universities for
international students continues to drive governments
worldwide to recognise the advantages that international
engagement brings to their education systems and
economy. As such, we are seeing yearly growth in global
student mobility and enrolment numbers, as well as
global investment in the robust student accommodation
sector which is underpinned by a fundamental supply
and demand imbalance. GSA Coral remains uniquely
positioned to take advantage of these factors.
On behalf of the Management Board, we are delighted
to welcome Claude Noesen, who joined as an Independent
Director in June. He has extensive experience in financial
markets, covering Private Funds, Private Equity and Real
Estate, which will assist us greatly as we plan for the future.
Finally, we would like to thank our shareholders for their
ongoing support and continued investment and we look
forward to sharing further updates with you over the rest
of the year.
Christophe Laguerre, Independent Director
18%Fund growth to $251m
Letter to shareholders
2018 2017
10New assets will
become operational in 2019
6New assets became operational in 2018
Today’s global environment is increasingly connected via technology, and is redefining
the skills needed in today’s workforce. It is also driving student mobility
and higher education requirements across borders.
Students are better connected, better travelled and more ambitious
than ever before.
BY CHRISTOPHE LAGUERRE
See GSA Coral’s recent highlights, p4
3
UNIVERSITY SQUARE OPENED IN AUSTRALIA
A flagship investment for GSA Coral in the
Australian market, the 365-bed University Square
on Pelham Street in Melbourne, which is operated
by The Student Housing Company, opened
at the end of June 2018. It is one of the best-
located PBSA assets in the city, sitting directly
opposite the University of Melbourne, while also
being in a prime location for Royal Melbourne
Institute of Technology (RMIT).
THREE NEW ASSETS IN IRELAND
In September, GSA Coral’s Irish investment
portfolio saw the opening of three new assets
across two major university cities – The Tannery
and Ardcairn House in Dublin and Amnis House
in Cork (image on right). The addition of 1,057
beds provides much needed PBSA for both
significantly undersupplied markets, while also
easing the pressure on the private housing market.
MIXED-USE BERLIN ASSET OPENS IN GERMANY
GSA Coral’s most recent investment in
Berlin enabled the purchase of the 695-bed
Brunnenstraße Mitte-Wedding, which opened
in September 2018 in the central district of Mitte.
Brunnenstraße Mitte-Wedding is a high specification
new build development which includes student
apartments, as well as 2,750m2 of commercial units
on the ground floor and 50 car parking spaces.
HAKUSAN HOUSE OPENED IN JAPAN
In May 2018, GSA Coral saw the opening
of the first investment portfolio asset in Tokyo,
which is a significantly undersupplied market.
The 364-bed Hakusan House, which is operated
by Uninest Student Residences, offers a fantastic
co-living environment, catering for both domestic
and international students.
NEW ALLOCATIONS IN SPAIN AND JAPAN
GSA Coral has diversified its investment base in Spain
through a development opportunity in Valencia.
GSA Coral has also progressed its strategic objective
to expand its allocation to Japan, enabling the joint
venture investment vehicle with Star Asia Japan
to secure a well-located asset in Tokyo, set to open
in time for the 2020 academic year.
4 Highlights
DELIVERED AN 8%+ RETURN
GSA Coral delivered an average 8.48% return across
all its share classes. The Fund now has allocations to prime
grade investments with assets in the UK, Ireland, Germany,
Spain, Japan and Australia, strengthening its position
as the only globally diversified student accommodation
portfolio available to investors.
OBJECTIVE
Continue to deliver strong
returns for GSA Coral investors.
RESULT
GSA Coral delivered an average
8.48% return across all share classes.
OBJECTIVE
Re-deploy capital and invest capital
into new continental European countries.
RESULT
Whilst not achieved in 2018, GSA Coral
remains focussed on seeking further
opportunities in 2019.
OBJECTIVE
Introduce a new capital partner to the current
Australian and Spanish portfolios.
RESULT
Diversification of the investment holdings in Spain
will complete in Q1 2019. In Australia, GSA Coral
intends to introduce a new capital partner to enable
the Fund to further diversify its investment portfolio.
OBJECTIVE
Grow current German and Japan allocations.
RESULT
GSA Coral has enhanced its investment
in the Japanese investment vehicle
facilitating the funding of a new
development in Toyko and invested in
Brunnenstraẞe Mitte–Wedding in Berlin.
OBJECTIVE
Delivery of the build-to-core
strategy in Australia and Tokyo.
RESULT
Both University Square in Melbourne
and Hakusan House in Tokyo were
launched in 2018.
1
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2
GSA Coral aims to deliver
sustainable returns from
the most globally diversified
student accommodation
fund in the market.
In 2018, the Fund’s core strategy focussed
on further diversifying its investments globally
in PBSA, for both income returns and capital growth,
delivering a diversified total return to investors.
GSA Coral’s investments may comprise completed
and operating assets, developments, development
forward-funding purchases, joint ventures or strategic
debt positions. The Fund’s structure also provides
the ability to move tactically between investments
rather than holding physical property directly.
Strategy2018
5
OBJECTIVE
Continue to deliver strong
returns for GSA Coral investors.
OBJECTIVE
Introduce new blue chip capital
partner to the Australian investment
portfolio and further diversify
the Fund across other markets.
OBJECTIVE
Drive increase in fund
operational income from
new assets being delivered
in 2019.
OBJECTIVE
Continue growing allocations
in Germany and Japan.
OBJECTIVE
Capitalise on continued
investment from new
partners globally and deliver
sustainable fund growth.
OBJECTIVE
Enter new continental
European countries and increase
geographical diversification.
1 4
3 6
2 5
Strategy2019
6
26% CVG Advantage
Europe Ltd
16% United Kingdom
7% UK Student Advantage
Holdings Ltd
5% Cash & other assets
5% GSAF GBP
31% Australia
2% St Regent
3% Germany
4% Japan
Financials
8.54%
Total return (last 12 months
to Dec 2018)
1.57%
Annualised standard deviation
(since inception)
7.87%9 years return
annualised (since inception)
21% GSAF EUR
25% AP Student
Advantage Holdings
9% Australian Student
Accommodation Fund
PORTFOLIO MIX
GEOGRAPHIC DISTRIBUTION
OF INVESTMENTS
18% Spain
29% Ireland$251mTotal net
asset value
20,352Exposure to beds
SHARE CLASS A AS OF 31 DECEMBER 2018*
*Performance data for other share classes are available at gsa-coral.com
SHARE PRICE AS OF 31 DECEMBER 2018 £2.0925SHARE PRICE 2009 – 2018
The Fund generated an 8%+ return
across all share classes for the 2018
year. There has been a consistent trend
of 100% positive returns since 2009.
Dec 2009
Dec 2010
Dec 2011
Dec 2012
Dec 2013
Dec 2014
Dec 2015
£1.00
£1.20
£1.40
£1.60
£1.80
£2.00
Dec 2016
Dec 2017
Dec 2018
7
Studio and social space, Lope De Vega, Spain
Begoña in Valencia will have the same high-quality
standards that operating brand Nexo Residencias has applied to its other
accommodations throughout Spain
UK
In the UK, there will be an abundance
of activity with key development
sites in Cambridge (219 beds), Exeter
(312 beds) and Bournemouth (550 beds
and 398 beds across two assets) set
to become operational in September
2019. Together these assets will deliver
a total of 1,479 beds for the UK’s
undersupplied regional markets.
IRELAND
Ireland is an established international
student destination. The international
education sector is currently worth
approximately €1.58bn per annum.
The government expects this to grow
to €2.1bn by 2020.
Ireland will also see two new assets
launch in Dublin – the 320-bed
Dominick Place and the 426-bed
Highfield Park. Both assets will provide
much-needed housing for both
domestic and international students,
while also helping to release pressure
on local housing stock, which
is currently an ongoing concern
for the city and its residents.
Following a successful 2018, where we have seen strong operational
performance across GSA Coral’s investment portfolios, we already have
a very exciting pipeline of potential opportunities coming into the new year.
This will continue our success over the last three years in diversifying the
portfolio in both existing and new markets, and sustainably growing the fund.
A look ahead
10
3,979
Assets opening globally
PBSA beds to be added to GSA Coral’s investment portfolio
BY JOSS DYER, FUND MANAGER
SPAIN
In continental Europe, the Fund has
grown its allocation with the portfolio in
Spain, investing in a development
opportunity in Valencia – the third largest
student market in the country with a total
student population of 97,000. The
205-bed Begoña development will start on
site later this year. It is situated between
the vibrant atmosphere of the historic
heart of Valencia and the tranquillity
of the Extramurs neighbourhood.
The new property will have the same
high-quality standards that operating brand
Nexo Residencias has applied to its other
accommodation throughout Spain. It will
consist of individual ensuite, self-catered
studios with access to shared kitchens
and communal lounges, as well as common
areas including a gym, swimming pool
and co-working rooms. In addition, future
members of this student community will
enjoy 24-hour staffing, weekly cleaning
service, security, maintenance, and
high-speed internet connection. The
PlanGo wellbeing initiative will provide
social events incorporating sports
and culture activities for personal and
professional development, helping
to build the community within an
eco-friendly environment.
Disciplined portfolio and risk
management remain a key focus
for 2019, appropriately balancing both
our current country allocations and
continuing to drive improvement
in the quality of underlying assets. There
are a number of properties which are
completing and operationally mobilising
in both Europe and Asia Pacific this
year, and we are planning for new
market entry into at least one new
European country.
We are expecting another busy year
for GSA Coral as we continue to take
advantage of unique opportunities
in our various global markets.
Explore our portfolio in the UK, p13
Explore our portfolio in Ireland, p12 Discover our portfolio in Spain, p14
8
LOOKING TO 2019 – A SUMMARY
Investment in student accommodation
achieved a record year in 2017, with
the UK and Western Europe accounting
for over half of all investment. This
increase is underpinned by the growth
in international student enrolment, which
continues to drive the demand for high-
quality PBSA globally. Moving into 2019,
we expect the sector to remain buoyant
as investors continue to be attracted
to its defensive characteristics and low
volatility returns.
GSA Coral is very well placed to capitalise
on global investment opportunities
which further diversify the portfolio
in new and existing markets, while also
delivering best-in-class performance
and robust returns.
50%Of student accommodation
investment transactions were in Western Europe
OV
ER
BARCELONA – DELIVERY ON TRACK
Two assets, which form part of GSA
Coral’s Spanish investment portfolio
in the historic city of Barcelona,
are on schedule for delivery in time
for the 2019/2020 academic year.
Barcelona offers one of Europe’s most
appealing environments in which
to live and study. It is home to two
of Spain’s most prestigious universities,
the Universitat de Barcelona and
Universitat Autónoma de Barcelona.
Two further universities in the city,
Universitat Politécnica de Cataluña
and Universitat Pompeu Fabra are
also internationally recognised.
160400Students in higher education in Barcelona
1
2
CITY CENTRE
RESIDÈNCIA UNIVERSITÀRIA ALEU
Located in the heart of Universitat
de Barcelona’s main knowledge
campus. It will provide 505 student
beds, comprising mainly ensuite
studios offering full catering.
1 RESIDÈNCIA D’ESTUDIANTS GARBÍ
In a prominent location on Plaza
de los Países Catalanes, adjacent
to the main railway station.
It is a 350-bed scheme comprising
a mix of ensuite studios offering
full catering and individual ensuite
rooms within shared apartments.
2
AUSTRALIA
Following on from the launch of
University Square in Melbourne in June
2018, two new assets will be launching
in 2019, including a new market entry
in Perth. The Boulevard on Stirling Street
is a 573-bed property and will be the
first PBSA developments to complete
in the city centre when it opens
in February 2019.
Infinity Place in Melbourne, which
will provide 327-beds to the vibrant
student community in the city, is set
to launch in April 2019. The University
Square community is located across
the road, which will allow all residents
to enjoy the best of each building’s
facilities and social spaces.
KITCHEN, THE BOULEVARD, PERTH
Discover our portfolio in Australia, p16 Discover GSA Coral’s
global presence, p11
9
The global higher education landscape continues to change
as the number of students enrolled in universities and institutions
outside their countries of citizenship is rising dramatically.
INTERNATIONAL STUDENT MOBILITY
Despite declining youth population
and lower fertility rates, it is estimated
that the number of total student
enrolments will rise from 216 million
in 2016 to over 330 million by 2025.
One of the greatest trends influencing
the higher education sector is student
mobility. Technology, transport, and
connectivity have created platforms
through which ideas and knowledge
can be freely shared and exchanged.
Student mobility is shaping effective
interpersonal communication skills and
increasing students’ cultural contacts,
whilst at the same time attracting the
most talented people to a national
economy and providing them with
an opportunity to put their skills into
practice. These life experiences not only
safeguard a student’s future but their
ability to educate future generations.
The OECD predicts that by 2025,
eight million students will study
abroad. However, student mobility and
the demographic distribution of those
seeking an international experience
is constantly being reshaped. This
mobility is shifting from a mostly unilateral
East-to-West stream to become much
Asian economies are estimated to
witness the strongest annual growth rates
over the next ten years, which will have
an impact on the volume of students
studying internationally from this region.
For decades, the US and the UK have
claimed the top spots for international
student enrolments. However,
a combination of Brexit and the election
of Donald Trump as US President
has provided an opportunity for
established student markets such
as Canada and Australia to capitalise
on the political turmoil.
Both countries are seeing increases
in their international enrolment,
which can be attributed to Canada
and Australia making their way up the
global university rankings, as well
as maintaining a high-quality education,
welcoming environment, and promising
graduate prospects. Australia has seen
the number of international enrolments
increase by 12% in the past year to 327,606
students, while Canada’s international
enrolment has risen exponentially
by over 18% to 312,000 students.
Continental Europe is also becoming
a strong alternative higher education
destination due to lower tuition fees and
a greater potential for post-study work
opportunities. For example, Spain has
seen a 10.2% increase in international
enrolment between 2016-17, while
Germany and France have seen
a 6.6% and 4.6% increase, respectively.
ROBUST INVESTMENT FUNDAMENTALS
The International Monetary Fund (IMF)
has moderately cut its global economy
growth forecast for 2019 to 3.5% from
3.7% due to the high level of economic
risks that are accelerating around
the globe. These include tariff increases,
which are shaking up markets and
boosting volatility, particularly in
advanced economies, as well as the UK’s
withdrawal from the European Union,
and the US and China trade disputes.
Despite this increased global
uncertainty, higher education remains
robust. Student housing has proven
itself to be a resilient asset class with
defensive characteristics, protecting
portfolios against any upcoming
economic uncertainty and potential
increases in market volatility. Moreover,
student housing provides investors with
a solid demand base, attractive yields
and steady rental and capital growth.
GSA Coral continues to capitalise
on global investment opportunities
which further diversify the portfolio
in new markets. The reputation
of academic institutions and the
fundamental characteristics of PBSA
remain compelling on a global scale
and continue to drive domestic and
international capital and the future
growth of the sector.
more reciprocal. Several Asian markets
are marketing themselves as prime
international student destinations,
including China, Japan, Taiwan, South
Korea, and Malaysia. All are seeking to
substantially increase their international
recruitment by 2025. If successful, over
the next decade, 1.4 million international
students will be studying regionally
as opposed to globally.
Government support is essential
to enhance prestige and attractiveness
to both international institutions
and students. This is most prevalent
in Japan and China, both of which have
made internationalisation of their higher
education sectors a national priority.
Subsequently, both countries have
seen growth in international student
numbers. Japan has achieved this
by increasing the number of courses
taught in English, an ever more popular
approach, whilst China is offering
growing numbers of scholarships.
THE IMPACT OF POLITICAL CHANGE
The British Council predicts China
will remain responsible for the largest
stream of outbound students by 2024,
reaching 338,000, whilst India will
reach 209,000.
The evolving higher education landscape
8mEstimated students
studying abroad by 2025, of which by 2024, 338,000
will be Chinese, 209,000 will be Indian
Chinese universities are internationalising in many directions, but Africa has
been a particular focus. China has funded more than 40,000
scholarships for African students over the last five years and has announced
plans to fund 30,000 more over the next three years
PBSA APPEAL
International students feel strongly about living as part
of a student community which fosters social integration,
engagement with studies and a deeper attachment to the
educational institution. Living away from home, PBSA provides
security and welfare benefits, with students living in safe and supported environments, which are not only close to university
campuses but associated amenities in each city
10
CITIES
TOKYO
CITIES
ADELAIDE
MELBOURNE
PERTH
CITIES
BERLIN
DARMSTADT
DRESDEN
FRANKFURT
HAMBURG
MÜNSTER
CITIES
ALCALÁ DE HENARES
BARCELONA
MADRID
VALENCIA
CITIES
CORK
DUBLIN
CITIES
JAPAN
AUSTRALIA
GERMANY
SPAIN
IRELANDUNITED KINGDOM
2
ASSETS
5
ASSETS
8
ASSETS
7
ASSETS
10
ASSETS
24
ASSETS
364
BEDS
345
BEDS
2,843
BEDS
1,382
BEDS
2,051 BEDS
7,447
BEDS
1,784
PIPELINE BEDS
1,060
PIPELINE BEDS
1,271
PIPELINE BEDS
1,479
PIPELINE BEDS
BIRMINGHAM
BOURNEMOUTH
BRISTOL
CAMBRIDGE
CARDIFF
EDINBURGH
EXETER
GLASGOW
LANCASTER
EM
EA
AP
AC
GSA OFFICE
GSA CORAL INVESTMENT
56
INVESTMENTS 34 CITIES
3
CONTINENTS 6
COUNTRIES
LINCOLN
LIVERPOOL
LONDON
NEWCASTLE
NOTTINGHAM
PLYMOUTH
PORTSMOUTH
SOUTHAMPTON
SHEFFIELD
GSA Coral’s global presence
326 PIPELINE BEDS
View properties, p13
View properties, p14
View properties, p15
View properties, p12
View properties, p15
View properties, p16
11
CREATING VIBRANT STUDENT COMMUNITIES
In September 2018, GSA Coral saw
the opening of three new investments
in Ireland, helping to release pressure
on local housing stock, while also
creating vibrant communities
for students to engage in creative
learning and socialising.
Ireland’s goal is to host 44,000
international students in higher
education institutions by 2019/20.
To meet the demand for international
and domestic enrolment growth,
Ireland needs to create another
21,000 PBSA beds by 2024.
Since entering the Dublin market in 2015,
GSA has been leading the way with
its creation of student communities
in areas needing social regeneration.
2018 was another exciting year for the
team as they launched The Tannery –
a 296-bed property located in the
historic Liberties neighbourhood,
immediately adjacent to GSA’s New Mill
residence, which opened in September
2017. Together, these properties form
a campus-style community in this
up-and coming area of Dublin.
As well as The Tannery, the 571-bed
Ardcairn House, which is located
in the Grangegorman suburb of Dublin,
a two-minute walk from the new DIT
Grangegorman campus, opened
in September. With community
at its heart, Ardcairn House delivers
accommodation which makes a real
difference to students’ lives.
From music rooms to roof terraces
and basketball practice areas to its
very own bowling alley, the property
has an abundance of social spaces
to promote greater interactivity,
connectivity and collaboration.
The launch of Amnis House in Cork,
which is a 190-bed property close
to the entrance of University College
Cork on Western Road, is GSA Coral’s
first entry point to this undersupplied
market, which has not seen any
significant new accommodation
in over ten years. The asset was fully
let in advance of completion and
is on-track for full occupancy in 2019.
A second, 413-bed scheme on the
former Beamish Brewery site in the city
centre is set to open in 2020. The
Beamish project will play a key role
in major regeneration works taking
place in Cork city centre.
Ireland’s reputation for having some
of the best academic institutions globally
will continue to drive strong demand
for high-quality PBSA from both home
and international students. Looking
forward, GSA Coral will continue
to seek new opportunities for further
investment to the Irish portfolio.
DUBLIN | 571 BEDS ARDCAIRN HOUSE
OPENED 2018
DUBLIN | 400 BEDS NEW MILL
OPENED 2017
DUBLIN | 103 BEDS BROADSTONE HALL
OPENED 2006
DUBLIN | 296 BEDS THE TANNERY
OPENED 2018
CORK | 190 BEDSAMNIS HOUSE
OPENED 2018
DUBLIN | 491 BEDS KAVANAGH COURT
OPENED 2017
DUBLIN | 426 BEDS HIGHFIELD PARK
OPENING 2019
CORK | 413 BEDS BEAMISH QUARTER
OPENING 2020
DUBLIN | 320 BEDS DOMINICK PLACE
OPENING 2019
12 Ireland
FUT
UR
EC
UR
RE
NT
DUBLIN | 112 BEDS GLOUCESTER PLACE
OPENING 2020
83Nationalities across the Irish Portfolio
8Universities in the QS World Rankings
High-quality student homes in safe, secure and central locations
are crucial to help the country’s leading universities attract the brightest talent domestically
and from further afield
LONDON | 230 BEDSDEPOT POINT
OPENED 2014
LIVERPOOL | 592 BEDS EUROPA
OPENED 2014
LANCASTER | 233 BEDS CABLE STREET
OPENED 2004
EDINBURGH | 422 BEDSBRAE HOUSE
OPENED 2015
BRISTOL | 348 BEDS THE COURTROOMS
OPENED 2015
CAMBRIDGE | 219 BEDS ANGLIA HOUSE
OPENING 2019
EXETER | 312 BEDS CLIFFORD HOUSE
OPENING 2019 BOURNEMOUTH | 550 BEDS BAILEY POINT
OPENING 2019
BOURNEMOUTH | 398 BEDS BELATON HOUSE
OPENING 2019
STUDIO, BRAE HOUSE
CARDIFF | 281 BEDS AROFAN HOUSE
OPENED 2016
EDINBURGH | 302 BEDS ARRAN HOUSE
OPENED 2015
BIRMINGHAM | 534 BEDS BENTLEY HOUSE
OPENED 2017
LIVERPOOL | 396 BEDSABLETT HOUSE
OPENED 2015
EDINBURGH | 240 BEDS CANAL POINT
OPENED 2014
United Kingdom
FUT
UR
EC
UR
RE
NT
GLASGOW | 81 BEDS 359 SAUCHIEHALL STREET
OPENED 1985
LINCOLN | 289 BEDS PARK COURT
OPENED 2000
13
SHEFFIELD | 262 BEDS BRAMALL COURT
OPENED 2000
NEWCASTLE | 281 BEDSKNOLL COURT
OPENED 2005
SOUTHAMPTON | 467 BEDS CRESCENT PLACE
OPENED 2016
LONDON | 250 BEDS THERESE HOUSE
OPENED 2008
NOTTINGHAM | 378 BEDS GOLDSMITH COURT
OPENED 2004
MADRID | 358 BEDS EL FARO
OPENED 2016
MADRID | 186 BEDSCLARAVAL
OPENED 2016
MADRID | 370 BEDS GALDÓS
OPENED 2007C
UR
RE
NT
VALENCIA | 205 BEDS BEGOÑA
OPENING 2021 FUT
UR
E BARCELONA | 505 BEDS ALEU
OPENING 2019
BARCELONA | 350 BEDS GARBÍ
OPENING 2019
SpainCURRENT PORTFOLIO CONTINUED
United Kingdom
ALCALÁ DE HENARES | 468 BEDS LOPE DE VEGA
OPENED 2017SPORTS HALL
PLYMOUTH | 505 BEDS BECKLEY POINT
OPENED 2017
SOUTHAMPTON | 356 BEDS AUSTEN HOUSE
OPENED 2016
PORTSMOUTH | 1,000 BEDS CATHERINE HOUSE
OPENED 2017
Expanding into Barcelona, p9
14
FRANKFURT | 270 BEDS URBANUM
OPENED 2017
Germany Japan
BERLIN | 567 BEDS FRANKFURTER TOR
OPENED 2017
FRANKFURT | 264 BEDS ALVARIUM
OPENED 2012
MÜNSTER | 175 BEDS LEONIS
OPENED 2013
BERLIN | 695 BEDS BRUNNENSTRAßE MITTE-WEDDING
OPENED 2018
DARMSTADT | 345 BEDSELEMENTUM
OPENED 2014
DRESDEN | 199 BEDSALBIA
OPENED 2016
HAMBURG | 328 BEDS NAVALE
OPENED 2017
TOKYO | 364 BEDSHAKUSAN HOUSE
OPENED 2018 C
UR
RE
NT
CU
RR
EN
T
8Cities in Germany host over 50,000 students. Germany
has the largest student population in Europe
TOKYO | 326 BEDS SHIMOTAKAIDO
OPENING 2020 FUT
UR
E
Images: Duo Nest and roof terrace at Hakusan House
15
Studio and twin share at The Boulevard, Perth
6 bed apartment, University Square,
Melbourne
Australia
DELIVERING THE FIRST PBSA COMMUNITY IN PERTH
GSA Coral’s first investment in Perth,
The Boulevard, is a 573-bed property
and will be the first PBSA development
to complete in the city centre when
it opens in February 2019.
Located in Northbridge, The Boulevard
puts students right in the heart of the
social and cultural district and on the
fringe of Perth’s CBD shopping district.
The property is well-located, in close
proximity to public transport, with
Beaufort Street bus stop just a couple
minutes away and Perth Railway Station
approximately 500m away.
With panoramic views of the city
and a swimming pool, The Boulevard
offers students some of the best social
spaces available in the city. All rooms
are ensuite with generous kitchen
and bedroom spaces, designed
specifically for student life.
INTERNATIONAL GROWTH
StudyPerth has revealed an ambitious
target of doubling the number of
international students enrolled at its
universities by improving employability
with a new three-pronged strategy.
The ‘Where bright futures begin 2018-
2025’ strategy sets out a framework
for Perth’s education sector across
the themes of live, learn and launch.
More than 50,000 international
students currently study in Perth.
By 2025, Perth aims to grow its
reputation and ranking as a world-class
international city and host 100,000
students from around the globe,
and in particular from Asian countries
such as China, Indonesia, Malaysia,
Hong Kong and Vietnam.
Perth is well-positioned to provide
prospective students with the knowledge,
skills, support and connections they
require in an increasingly competitive
global job market. International
students can already find choice
and opportunity in Perth’s range
of renowned education providers.
The city’s international education
profile includes over 272 subjects
and 99 institutions and schools.
The University of Western Australia
(UWA) is ranked 91st in the QS World
Rankings of the best universities
in the world and is located 15 minutes
from Perth’s busy central shopping
and business district. Moreover, UWA
is internationally recognised as a leader
in research and higher education and
is home to 5,000 international students,
representing more than 100 countries.
A significant rise in the number
of international students against
the limited availability of student
accommodation is a driving force
for the development of new high-quality
projects by existing and new operators.
While the PBSA sector in Australia
as a whole is maturing, in Perth,
it is a relatively new concept. For this
reason, the total development pipeline
in the city currently sits at 3,147 beds,
significantly less than in other major
university cities in Australia such
as Melbourne and Adelaide.
GSA Coral continues to target the
advantage of new market opportunities
underpinned by global trends such
as the growth in knowledge-based
economies, demand for higher
education and growing mobility,
and the fundamental lack of supply
of PBSA globally.
MELBOURNE | 198 BEDS QUEENSBERRY STREET
OPENING 2021
PERTH | 573 BEDS THE BOULEVARD
OPENING 2019 ADELAIDE | 687 BEDS NORTH TERRACE
OPENING 2021
MELBOURNE | 326 BEDS INFINITY PLACE
OPENING 2019
FUT
UR
E MELBOURNE | 345 BEDSUNIVERSITY SQUARE
OPENED 2018
CU
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x2By 2025, Perth aims
to double it’s international student population from
50,000 to 100,000 students
16
The wider GSA Group
35Cities
58Assets
8Countries
Ireland, United Kingdom, Spain, Germany, Dubai,
China, Japan and Australia
489Employees
32Staff nationalities
21,342Total beds in operation / development
15,000+Operating beds
GSA Group is the global leader in student
accommodation, making a real difference to students’
lives through its expertise, track record and knowledge
to deliver the best culturally-led student living experience
BEST MOVE IN EXPERIENCE The Student Housing Company
Awarded by:
National Student Housing Awards
BEST PRIVATE HALLS PROVIDER The Student Housing Company
Awarded by:
National Student Housing Awards
BEST INTERNATIONAL ACCOMMODATION The Student Housing Company
Awarded by:
National Student Housing Awards
OPERATOR OF THE YEAR The Student Housing Company
Awarded by:
Class of 2020
INNOVATION OF THE YEAR GSA
Awarded by:
Property Week
BEST VALUE FOR MONEY Uninest Student Residences
Awarded by:
National Student Housing Awards
Core brand Student brands
Operating in:United Kingdom
Australia
Operating in:Spain
Operating in:Ireland
Germany
Dubai
Japan
GSA has three closely aligned
student brands that operate a variety
of properties in each country
Awards in 2018
10,000+Bed pipeline
17
Meeting the needs of tomorrow’s
student population
At GSA Group,
we understand the
complexities of our
students’ needs today
and their expectations
for the future.
THE ONLY CONSTANT IS CHANGE
In mature markets such as the UK,
PBSA providers have sought to compete
by either having a premium location,
product differentiation or by striving
to become price leaders. While there
is a finite number of premium locations
which providers can obtain, there
can also only be one price leader
in a market. Most providers, therefore,
must compete by differentiating their
product and services.
GSA has seen product differentiation
as a key element for developers since
the creation of PBSA in the early 1990s.
While student housing used to be limited
to halls of residences with shared toilets
at the end of the hall, PBSA has
exponentially raised industry standards
by moving accommodation from simply
including wash basins in students’ rooms
25 years ago to incorporating fully
integrated smart technology to ensuite
rooms as standard.
Many residences are now fully equipped
with a digital locking system, smart
rental payment, high-speed WiFi
to accommodate the increasing
simultaneous usage of devices; all
incorporated to enhance convenience
and improve the overall living experience.
Technology is also embedded in the
buildings themselves, with a rise in smart
heating systems and water-storing roofs.
Nevertheless, for Gen Z customers,
a holistic, service-led experience must
be offered. Given advancements
in technology, and the demand from
customers for greater interaction,
connectivity and collaboration,
the traditional view that a student
will spend most of their time behind
a desk is long gone.
GSA is finding that customers are
increasingly happy to sacrifice personal
space for a more premium location
and greater connectivity with their
peers, choosing to be part of a wider
community at their residences.
Furthermore, safety is a key concern
for all students. PBSA provides a secure
living environment that not only keeps
students safe but provides parents with
the much-needed reassurances when
their children are away from home.
STUDENT WELLBEING MATTERS
In more recent times, wellbeing
has become ingrained in both the
development and operation of PBSA.
Poor mental health is one of the biggest
threats to the successful completion
of higher education. Students who are
unhappy with their accommodation
are ten times more likely to be unhappy
with their whole university experience.
GSA recognises that wellbeing
directly impacts our residential student
communities and as such, we believe it
is vitally important as an accommodation
provider to support and provide for
the wellbeing of all our students. We
believe that a move towards a more
holistic student experience within our
residences will not only serve to benefit,
retain and attract residents, but it will
also benefit our investors, including
THE STUDENT LANDSCAPE
Technology and a desire for inter-
connectivity are shaping the behaviour
of tomorrow’s students. Post-millennials,
or Generation Z, are the new generation
in town – digital natives living
in a hyper-connected world. Having
grown up being surrounded by smart
technology, this generation has
a confident and savvy understanding
of its value and appreciates the access to
technological platforms providing
entertainment, information and
communication. Moreover, Gen Z is also
concerned about societal challenges
and conscious about the world around
them; they care about their wider
community and environment.
It is this connection to technology,
community and environment which
is most profoundly impacting the way
in which PBSA providers are adapting
their products to meet changing
customer needs.
Our current generation of students organise their whole lives on their smartphones and, in the coming years, we know
that students will be even more mobile. We are now designing for a higher customer turnover
and are rolling out a range of innovations with our global
service partners to improve the interface with the customer
Middle and lower: twin studio and studio
University Square, Melbourne
Gen Z love to interact with brands – they are just choosy about who
they engage with. 55% choose brands that are eco-friendly, while 53% select brands that understand
them as an individual
Top: 6 bed Share Nest, Hakusan House, Tokyo
18
GSA Coral. Furthermore, it will provide
a real opportunity to pioneer the next
generation of students’ residential
experience, which will set GSA apart
from its competition and appeal
to university stakeholders who are
struggling to tackle this issue alone.
Taking into consideration the wellbeing
of our students, GSA’s team has been
instrumental in pioneering a new
affordable offer, whereby a student’s
personal space has increased in
efficiency to allow for first-class social
areas, which in turn, allows for greater
community engagement and service
delivery. This new affordable product
has been adopted in two of GSA’s
newest residences – Hakusan House
in Tokyo, operated by Uninest Student
Residences and University Square
in Melbourne, operated by The Student
Housing Company. However, this is only
the beginning, as constant learning from
GSA’s customers will continue to evolve
new product development in the
coming years.
CREATIVE COMMUNITIES
Creative community areas are now
at the heart of PBSA developments
worldwide, and the opportunities
for delivering innovative community
space are boundless.
Creating liveable spaces helps deliver
wider educational needs and plays
a key role in the development of students
as individuals; shaping and assisting
in their specific studies and creating
a link between city and university
campus. While previous generations
of products have included gyms, cinema
and games rooms, newer schemes
are finding imaginative alternatives to
appeal to the changing customer base.
GSA’s newest community in Perth
provides customers with a terrace
swimming pool, while Ardcairn House
in Dublin, which opened in September,
introduced a bowling alley.
FUTURE-PROOFING STUDENT HOUSING
Future-proofing the PBSA sector
to enhance learning will continue
to evolve as technology continues
to advance. In an ever-changing
cityscape adapting to meet the needs
of society, student housing must
do the same. Innovation, adaptability
and creating integrated spaces for future
leaders is the only way PBSA investors,
developers and operators will be able
to cement the need and demand
for accommodation in the future.
Below: social space at Ablett House,
Liverpool
Right top and bottom: cinema and bowling alley at Ardcairn House, Dublin
Right middle: Terrace swimming pool
at The Boulevard, Perth
19 Meeting the needs of
tomorrow’s student population
CONTINUED
Our management teamBOARD OF DIRECTORS EXECUTIVE TEAM
JOSS DYERFund Manager
ALI KHANHead of Finance
BRAD COLLINGWOODFund Administrator
AARON MASKREYHead of Research
& Intelligence
SARAH WALKERInvestor Communications
Manager
TOM WALKERCompliance &
Regulatory Risk Manager
PAUL DISCALICAUManager, Capital,
EMEA
BEN TSEBusiness Development
Director, Asia Pacific
JOHN KENNEDYDirector, Founder & Strategic Advisor
ANDREW REIDDirector
CLAUDE NOESENIndependent director
CHRISTOPHE LAGUERREIndependent director
VICTOR LORHead of Capital,
Asia Pacific
DEREK WILLIAMSHead of Capital,
EMEA & North America
BEN HARVIEManaging Director,
Investment Management
20
Our approach to ESG
At GSA Investment Management we see ourselves
as long-term stewards of our investors’ capital,
and this philosophy leads us to focus on the long-term
prospects for the assets in which we invest.
CREATING ATTRACTIVE INVESTMENT OPTIONS
It is central to our investment process
to analyse each investment’s ability
to create, sustain and protect value to
ensure that it can deliver robust returns
in line with our investors’ objectives.
Our business is committed to the
highest standards of governance.
We provide investors with real estate
investment opportunities that focus
on the ESG agenda within the education
space, which, by providing much
more than four walls and a bed, creates
a very attractive investment option
with an inherent social cause.
SOCIAL
Given GSA’s focus on the student
sector, it is very engaged on a social
impact basis. Our experienced
community management teams are
tasked with a customer orientated
service mentality providing sustained
community management at each asset.
GSA maintains active engagement
with universities and their requirements
for their students.
Of all private operators in the student
accommodation sector, GSA is one
of the first organisations to proactively
address the growing concern about
student wellbeing and mental health.
We recognise that wellbeing directly
impacts our residential student
communities and as such, believe it is
vitally important as an accommodation
provider to support and provide for the
wellbeing of all our students. For this
reason, we embarked on an 18-month
exploration to better understand
the topic within a PBSA context.
The outcome of the findings resulted
in a wellbeing pilot across the UK
portfolio, and a research study entitled
‘Student Wellbeing Matters’.
Following the successful trial, we have
now rolled out our student wellbeing
framework globally.
GOVERNANCE
GSA is committed to maintaining
the highest standards of corporate
governance. Our governance framework
supports our values, culture and our
commitment to conducting business
in accordance with the highest standards
of business and personal ethics.
The key responsibility of the Board
is to provide entrepreneurial and
strategic leadership, within a framework
of prudent and effective controls.
The Board monitors performance
against strategy, with a focus on
creating long-term sustainable value
for our stakeholders and the wider
communities in which we operate.
GSA’s culture is one of caring about
its employees as well as customers.
We have a strong culture of teamwork
and employee engagement centred
on three values – commitment, integrity
and energy. These values pervade into
everything GSA does.
GSA’s culture is centred on three values –
commitment, integrity and energy
GSA believes that a move towards a more holistic
student experience within our residences will not only
serve to benefit, retain and attract residents, but also benefit all investors
Download your copy of the study: gsa-gp.com/wellbeing
Who is the Management Board, p20
1,000+Student-focussed wellbeing events
organised by GSA properties globally
in 2018
ENVIRONMENTAL
In all of GSA’s development and
refurbishment projects – many of which
are in brownfield regeneration areas
– as well as in the day-to-day operation
of properties, we seek to manage
and minimise the impact of our
business on the environment.
Environmental impact targets
are set for each new development
and refurbishment project and are
built to industry-recognised building
certifications. Our EPC (Energy
Performance Certificate) target
rating is A or the equivalent in each
of our markets.
GSA also encourages and helps
its customers to have a positive impact
on the environment by providing waste
recycling facilities and promoting
energy conservation.
21
Glossary
AIFMD APAC BRITISH COUNCIL CSSF DEMAND/SUPPLY IMBALANCE DOMESTIC STUDENTS EMEA EPC ESG
GENERATION Z IMF INTERNATIONAL STUDENTS OECD PBSA
STUDYPERTH UWA
WELLBEING
Alternative Investment Fund
Managers Directive - a regulatory
framework for alternative
investment fund managers
Asia Pacific region, including
Australia and Japan
The UK’s international
organisation for cultural relations
and educational opportunities.
Commission de Surveillance
du Sector Financier - is responsible
for financial regulation in Luxembourg
The demand for purpose-built
student accommodation far
outstrips supply of available stock
Students who attend university
in their own country
Europe, Middle East and Africa
region, including the UK, Ireland,
Spain, and Germany
Energy Performance Certificate
- required for properties when
constructed, sold or let. The EPC
provides details on the energy
performance of the property and
what can be done to improve it
Environmental, Social and
Governance - refers to the three
central factors in measuring the
sustainability and ethical impact
of an investment in a company
or business
The generation after Millennials,
Generation Z, is defined as people
born from the mid-1990s
to the early 2000s
International Monetary Fund -
an organisation of 189 countries,
working to foster global
monetary cooperation
Students who travel to a different
country than their country
of citizenship to attend university
Organisation for Economic
Co-operation and Development
Purpose-built student
accommodation
An educational initiative
in Perth, Australia
The University of Western
Australia, Perth
Student resilience and wellbeing
are essential for both academic
and social development, and are
optimised by safe, supportive
and respectful learning and
living environments
By location
GSA CORAL PORTFOLIO SCA SICAV-SIF
2 boulevard de la Foire,
L-1528, Luxembourg
AUDITOR
Ernst & Young
EMEIA Financial Services,
35E, Avenue John F. Kennedy,
L-1855, Luxembourg
LEGAL ADVISOR
Loyens & Loeff
18-20 Rue Edward Steichen,
L-2540, Luxembourg
CORAL S.à r.l.
2 boulevard de la Foire,
L-1528, Luxembourg
DEPOSITORY
RBS Global Banking Luxembourg S.A.
46 Avenue John F Kennedy,
L-1855, Luxembourg
ADMINISTRATOR
Apex Fund Services Ltd
9A, rue Gabriel Lippmann
L-5365 Munsbach
PO Box : 542
L-2015 Luxembourg
Online
WEBSITE
gsa-coral.com
GSA Coral Student Portfolio
Disclaimer
The purpose of this report (the “Report”) is to provide information
to the shareholders of GSA Coral Portfolio S.C.A. SICAV-SIF (the “Fund”).
The Fund, its Management Board, Advisers and Service Providers make
no representation regarding, or assumes any responsibility or liability
for, the accuracy or completeness of, or any errors in or omissions from,
any information contained herein. In addition, this report includes forward-
looking statements that reflect the Fund’s current views with respect to
future events and financial performance. These views are based on a number
of assumptions and are subject to various risks. Such forward-looking
statements are not guarantees of future performance and no assurance
can be given that any future events will occur, that projections will be
achieved or that the Fund’s assumptions will prove to be correct. Actual
results may differ materially from those projected, and the Fund does not
undertake to revise any such forward-looking statements to reflect future
events or circumstances. The information contained in this Report is subject
to change without notice, its accuracy is not guaranteed and it may not
contain all material information concerning the Fund.
The Report contains certain business, financial, numerical or technical
information and forward-looking statements with respect to the operations,
performance and financial condition of the Fund. By their nature, these
statements involve uncertainty since future events and circumstances
(such as successful closing of acquisitions or disposals or market conditions)
may cause results to differ from those anticipated. The forward-looking
statements reflect knowledge and information available at the date
of preparation of this Report. Nothing in this Report should be construed
as a profit forecast. Any reproduction, dissemination or onward transmission
of this Report or the information contained herein is strictly prohibited. This
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or solicitation or invitation of any offer to buy or subscribe for any securities,
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