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Investment portfolio
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Page 1: Investment portfolio - gsa-im.com · Full addresses of the Fund directors are available from the Administrator. Photos used are for presentation purposes, due to portfolio changes

Investment portfolio

Page 2: Investment portfolio - gsa-im.com · Full addresses of the Fund directors are available from the Administrator. Photos used are for presentation purposes, due to portfolio changes

Coral Student Portfolio is a compartment of Coral Portfolio S.C.A. SICAV-SIF* which is incorporated under the laws of Luxembourg and regulated by Luxembourg authorities, Commission de Surveillance du Secteur Financier (CSSF) as a multi-compartment Specialist Investor Fund and is AIFMD approved. This presentation is issued for information purposes to financial institutions and professional intermediaries and is not intended for publication, reproduction or circulation to the general public. Full addresses of the Fund directors are available from the Administrator. Photos used are for presentation purposes, due to portfolio changes no guarantee is made that buildings shown were involved in any transaction described within this document or elsewhere. This is a summary of properties to which Coral has investment exposure, no representation is made that Coral Student Portfolio has full ownership rights to any property shown.*GSA Coral Portfolio SICAV-SIF’ and to change the name of the ‘Coral Student Portfolio Compartment’ to ‘GSA Coral Student Portfolio Compartment.© 2016 www.coralportfolio.com

Contents

04 Investment criteria

05 Portfolio overview

07 Germany – market overview

08 Germany – portfolio

12 Dublin – market overview

13 Dublin – GSAF Euro Fund

14 Dublin – portfolio

17 Dubai – market overview

18 Dubai – portfolio

19 United Kingdom - market overview

21 GSAF GBP and UCT

27 St Regent portfolio

29 London Student Partnership

31 Crosslane Portfolio

33 Australia – market overview

34 Australia student accommodation fund

37 Tokyo – target market

Page 3: Investment portfolio - gsa-im.com · Full addresses of the Fund directors are available from the Administrator. Photos used are for presentation purposes, due to portfolio changes

3

THE GSA CORAL STUDENT PORTFOLIO’S STRATEGY is to invest in purpose-built student accommodation (PBSA) globally, for both income returns and capital growth which delivers a diversified total return to investors.

The Fund’s structure provides

it with the ability to invest with a range

of providers in a variety of jurisdictions.

The portfolio is spread across locations where there are opportunities to capitalise on a

clear lack of PBSA provision and growing

student demand.

The Fund’s global mandate allows it to

carefully balance investment

in existing mature markets (such as the

UK) with market leading opportunities in

under-developed locations worldwide,

where investors benefit from first-mover advantage.

Investments may comprise completed and operating assets, developments, development forward funding purchases, joint ventures or strategic debt positions.

Page 4: Investment portfolio - gsa-im.com · Full addresses of the Fund directors are available from the Administrator. Photos used are for presentation purposes, due to portfolio changes

4 5

Higher Education Macro Trends

» Locations with forecast growth in the provision of higher education, student enrolments and educational hubs

» Growing attraction of international students and mobile domestic students

» Robust economic markets

Location and Product Mix

» A significant supply / demand imbalance of purpose built student accommodation

» Market rental levels that will underpin successful development and enable future rental growth

Educational Institutions

» Proximity to world class universities and leading education providers attracting growing numbers of students

» Opportunities to build long term relationships with education providers

Operator Track Record and Capability

» Operators with established management and market knowledge

» Provision of market leading services to maximise occupancy and student demand

Underlying Investment Structure

» Appropriate capital structuring

» Robust Fund strategy and risk management to deliver target returns

INVESTMENT DECISIONS ARE A CAREFULLY CONSIDERED, RESEARCH-LED PROCESS WITH FOCUS ON THE FOLLOWING KEY CRITERIA:

DETAILED UNDERWRITING ANALYSIS AND DUE DILIGENCE O N A L L O P P O R T U N I T I E S I SUNDERTAKEN BEFORE CONSIDERING ANY INVESTMENT.

Page 5: Investment portfolio - gsa-im.com · Full addresses of the Fund directors are available from the Administrator. Photos used are for presentation purposes, due to portfolio changes

5

PORTFOLIO OVERVIEW

The Fund holds a diversified range of investments in a range of global locations, principally in various cities and regions of the G20 countries. The portfolio changes frequently through active management to maximise investor returns.

GSA Coral has a great depth and breadth of contacts from 25 years at the forefront of the student accommodation sector, giving the Fund access to a wide range of investment opportunities. Globally, the Fund has access to the wider resources of the GSA Group

with offices in the UK, Ireland, Germany, Dubai, Japan, Hong Kong, China and Australia to source market leading investments.

The tables below provide a summary of the geographical spread of the Fund’s

investments, as well as the specific allocations to individual investments. Further details of each of these, along with a summary of each investment market, can be found in the following pages.

26% United Kingdom

48% Europe

26% Non-Europe

6% St Regent

8% Cash & Other Assets

4% LSP1

3% TSAF

7% Crosslane

17% GSAF USD

12% GSAF EUR

32% GSAF GBP

29% CVG Advantage Europe Ltd

8% Australian SAF

PORTFOLIO MIX AS AT DATE OF LATEST NAV

GEOGRAPHICAL DISTRIBUTION

FUND FACTS

NAV as at 30 June 2016 $139 million

Exposure to Beds 4,026

Exposure to properties 20

Exposure to underlying investments 9

Page 6: Investment portfolio - gsa-im.com · Full addresses of the Fund directors are available from the Administrator. Photos used are for presentation purposes, due to portfolio changes

76

Page 7: Investment portfolio - gsa-im.com · Full addresses of the Fund directors are available from the Administrator. Photos used are for presentation purposes, due to portfolio changes

QUALITY OF UNIVERSITY DESTINATIONS» Two German cities are ranked in the top 20 best

student cities in the world (Source: QS Rankings 2015)

» 36 Universities in the world’s top 500 (Source: QS Rankings 2015)

INTERNATIONAL MARKET SHARE» Germany is the fourth biggest international student

destination behind USA, UK and China (Source: UNESCO 2015)

GOVERNMENT SUPPORT» University education is fully subsidised by the

German government

» The government is committed to promoting university growth as well as increased R&D

MASSIVE ACCOMMODATION UNDERSUPPLY» The market for student housing as an asset class is

still in its initial stage and active market participants are very limited

» Universities have little to no stock - relying on the Studentenwerke (student union) which is not a focused accommodation provider

MARKET OPPORTUNITY» Existing product is generally poor quality and low

service. Recent developments by new operators are raising standards but opportunity exists to offer a truly international quality service and be the

market leader

» No operator has more than 2,500 beds in their pipeline

LONG RENTAL GROWTH AND CAPITAL MARKETS OPPORTUNITIES» Rents are at a relatively low base in comparison to other major European cities

» The German capital markets are one of the deepest and widest in the world

GERMANY – market overview

7

Enrolment Growth - Germany

14.0%

10.0%

8.0%

6.0%

4.0%

2.0%

0.0%

Pro

po

rtio

n o

f In

tern

atio

nal

Stu

den

ts (%

)

Tota

l En

rolm

ents

1976

1978

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

2014

Source: DEStatis, 2015

3,000,000

Introduction of tuition fees

Removal of tuition fees

German International International %

2,500,000

2,000,000

1,500,000

1,000,000

500,000

0

12.0%

Page 8: Investment portfolio - gsa-im.com · Full addresses of the Fund directors are available from the Administrator. Photos used are for presentation purposes, due to portfolio changes

8

Opening date Converted to student housing in 2002

Types of room 264 single and shared, standard and deluxe rooms

Facilities Internet, common spaces including rooftop terrace, gym, cinema and games room

Location overview The Goethe University Bockenheim campus is within 500m with cultural, entertainment and retail facilities nearby

Target market Frankfurt’s 60,000 students and particularly those attending the Goethe campus

Manager Uninest

Asset strategy An established and popular student property that suits the fund’s European expansion strategy having been purchased alongside other properties in a diversified portfolio

Frakfurt, Germany - Adalbertstraße 44Situated within Frankfurt’s bustling Bockenheim district, the accommodation here is modern with all the conveniences and entertainments close by that are necessary for a student’s busy life. Within short distances are the Goethe University’s Bockenheim Warte campus and shopping at Leipziger Straße and local markets.

Page 9: Investment portfolio - gsa-im.com · Full addresses of the Fund directors are available from the Administrator. Photos used are for presentation purposes, due to portfolio changes

Opening date Opened in 2013, this development was converted from office space

Types of room 175 apartments comprised of shared classic two bed flats to deluxe- plus studios

Facilities Internet, recently-renovated rooms, storage areas, on-site retail premises and two floors of basement parking

Location overview On the corner of Geiststraße and Weseler Straße, the property is convenient for Wilhelms University and local amenities.

Target market Münster university town has over 52,000 students studying almost 250 courses

Manager Uninest

Asset strategy An established and popular student property that suits the fund’s European expansion strategy having been purchased alongside other properties in a diversified portfolio.

Münster, Germany - Geiststraße 2

9

Finished with a classic Westphalian clinker façade, this property is well-located for the Westphalian Wilhelms University and all local amenities including bars, restaurants, shopping and entertainment. The area’s popular annual Christmas market is a highlight of the locale.

Page 10: Investment portfolio - gsa-im.com · Full addresses of the Fund directors are available from the Administrator. Photos used are for presentation purposes, due to portfolio changes

Opening date Converted from office premises in 2014

Types of room 345 studio apartments, Eco to deluxe plus

Facilities Internet, roof top terrace, courtyard gardens and high quality room finishes.

Location overview Close to a large number of education and research establishments, local amenities, entertainment and cultural activities

Target market Darmstadt’s 40,000 students studying at the various institutions

Manager Uninest

Asset strategy A popular student property that offers attractive accommodation and suits the fund’s European expansion strategy having been purchased alongside other properties in a diversified portfolio

Darmstadt, Germany - Havelstraße 9

10

Located in the “Graphic Quarter” of Darmstadt where many printing and publishing companies used to trade, this converted office building welcomes students with a range of room choices. The university is close by and other institutions include two colleges, four Fraunhofer institutes and the European Space Operations Centre as well as Eumestat and numerous other technological establishments.

Page 11: Investment portfolio - gsa-im.com · Full addresses of the Fund directors are available from the Administrator. Photos used are for presentation purposes, due to portfolio changes

Opening date Completed in March 2016, opening September 2016

Types of room 199 apartments ranging from Eco to Deluxe Plus

Facilities Internet, rooftop terrace with city views, underground car and bicycle parking, high quality room finishes

Location overview Convenient for TU Dresden, University of Fine Arts, University of Church Music, Palucca University of Dance and the University of Technology and Economics. The property has a city centre location close to the River Elbe

Target market The city’s 50,000 students attending leading and popular higher education establishments

Manager Uninest

Asset strategy A popular student property that offers attractive accommodation and suits the fund’s European expansion strategy having been purchased alongside other properties in a diversified portfolio

Dresden, Germany - Holzhofgasse 1

11

Convenient for local transport services, shopping and nightlife, this property offers a choice of apartments and is convenient for Dresden’s many higher education establishments. River walks, bars and cafes mingle with vintage shops and other amenities making this locale appealing for residents in this university city of 50,000 students.

Page 12: Investment portfolio - gsa-im.com · Full addresses of the Fund directors are available from the Administrator. Photos used are for presentation purposes, due to portfolio changes

DUBLIN – market overviewDue to the recent well-publicised tuition fee increase for all European Union (EU) students attending UK universities, the price competitiveness of an English language degree at a Dublin university for prospective EU applicants has risen markedly. In fact, the majority of international students within Ireland originated from the EU, amounting to 94%.

Dublin has eight major higher education institutions. According to the QS Best Student City Rankings for 2015, Dublin was ranked 32nd out of 50 international cities. The city has 92,600 full time students, of which 44,617 study in and around the city centre area and 22,500 international students are enrolled in either undergraduate or postgraduate education.

Dublin also has a very significant English Language School industry. Around 95,000 English language students came to Dublin annually to study. Of the 95,000 total, approximately 60,000 attend courses at Dublin’s 110 English language schools approved by the National Qualification Authority. The majority of these language colleges and schools are based in the city centre.

The two oldest and most prestigious universities are Trinity College Dublin and University College Dublin. These universities are respectively ranked 71st and 154th in the world rankings issued by QS World University Rankings for 2014/15.

Forecasted Enrolment Growth - Ireland

12

Source: GSA 2015

240,000

220,000

200,000

180,000

160,000

140,000

120,000

100,000

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

232,108Historic Enrolments

Planned Growth - CSO

Historic Average Growth 2.7%

Medium Growth 1.4%

206,965

192,935

Target Market Breakdown - Dublin

International27,762

Outside Dublin31,860

Local33,004

100,000

Target market –59,622(total students living away from home in Dublin)

90,000

80,000

70,000

60,000

50,000

40,000

30,000

20,000

10,000

0

Page 13: Investment portfolio - gsa-im.com · Full addresses of the Fund directors are available from the Administrator. Photos used are for presentation purposes, due to portfolio changes

This Fund invests in a 50:50 Joint Venture (JV) partnership formed between GSAF Euro and Harrison Street Real Estate (HSRE). HSRE is a US investment management platform with circa $7.5bn of assets under management. The mandate of the JV is to invest in the Dublin student accommodation market, seeking to invest €250m over the next five years. GSA Coral has had the opportunity to participate in the JV at an early stage, diversifying its fund portfolio into a new market with very strong return forecasts. GSA Coral has been able to secure an exclusive early cornerstone position and will be able to maintain its stake as a long term investor alongside substantial institutional equity.

GSAF EURO FUND

Currently the JV has three properties, being Mill Street, Gardiner Street and Broadstone Hall. The first two are both developments under construction and are due to come on stream for the 2017 academic year. The third property will be opening September 2016. Once completed, they will comprise some of the best accommodation offering in the Dublin market (which is significantly undersupplied and experiencing very high demand).

13

Page 14: Investment portfolio - gsa-im.com · Full addresses of the Fund directors are available from the Administrator. Photos used are for presentation purposes, due to portfolio changes

14

Forecast opening date September 2017.

Types of room 400 rooms including 3-8 room cluster flats, all single and en suite, as well as single studios.

Facilities High speed internet, café, study zones, pool room, courtyard complex, private gardens.

Location overview Within 15 minutes of Trinity College and Royal College of Surgeons with bus and tram links to other campuses. The area is known as The Liberties and is minutes away from the city centre.

Target market Students of Trinity College and Royal College of Surgeons.

Manager Uninest.

Asset Strategy Complete construction in line with forecast program, delivering development profit and subsequent operational income.

Mill Street, Dublin 8, Ireland

The centrally located property on Mill Street, Dublin 8, will primarily serve students of Trinity College Dublin and Royal College of Surgeons in Ireland, both of which are within walking distance. The development will comprise 400 beds with a range of room types. Construction of the development has commenced, with international Tier 1 contractor BAM engaged to undertake the development.

15

Page 15: Investment portfolio - gsa-im.com · Full addresses of the Fund directors are available from the Administrator. Photos used are for presentation purposes, due to portfolio changes

15

Forecast opening date September 2017.

Types of room 491 rooms including 4-8 room cluster flats, all single and en suite.

Facilities High speed internet, café, gym, study zones, communal areas including roof terraces.

Location overview Within 15 minutes of Trinity College and Dublin Institute of Technology with bus and tram links to other campuses. Located in the north east of the city centre, an area already established as a key student location.

Target market Students of Trinity College and Dublin Institute of Technology.

Manager Uninest.

Asset Strategy Complete construction in line with forecast program, delivering development profit and subsequent operational income.

Gardiner Street, Dublin 1, Ireland This is a development of the former IDA site on Gardiner Street, Dublin 1. The property is within easy walking distance of Trinity College and the Dublin Institute of Technology. The seven-storey building will house 491 beds, arranged as flats with en-suite bathrooms, and will be Dublin’s largest student accommodation property. The upper storeys will have spectacular views across the city and the scheme will offer cafe facilities on the ground floor. Bennett are the construction contractor responsible for the construction and delivery of the project.

Page 16: Investment portfolio - gsa-im.com · Full addresses of the Fund directors are available from the Administrator. Photos used are for presentation purposes, due to portfolio changes

16

Forecast opening date September 2016

Types of room 101 rooms arranged in cluster of 3-8 flats. 81 single en-suite rooms and 10 twin rooms Facilities High speed internet, study spaces, pool area, movies area and multiple

roof terracesLocation overview Arhuably one of the key selling points is the location of Broadstone Hall directly adjacent to the DIT Grangeforman Campus. The campus is being completely redeveloped and will cater for over 20,000 students by 2021.

The latest LUAS line (light rail system) stop is direcltly outside the scheme and is to be called ‘Broadstone’.

Target market Students of DIT and language schools like Atlantic Learning or Dublin Business School

Manager Uninest

Asset Strategy A full refurbuishment programme has been undertaken in summer 2016; making the 10 year old asset one of the freshest student accommodation schemes in the city

Broadstone Hall, Dublin 7, IrelandBroadstone Hall is a 101-bed space scheme located in the north of Dublin city centre, within a short walking distance of Dublin Institute of Technology’s Grangegorman Campus. The scheme offers high levels of communal space including roof terrace, cinema area and study spaces. The rooms have all been completely refurbished since acquisition in June 2016. Rents are now rebased at upper quartile pricing reflecting the operator’s signature touches brought to the scheme. Despite a rent increase, 60% of students rebooked to stay in the scheme for the coming year.

Page 17: Investment portfolio - gsa-im.com · Full addresses of the Fund directors are available from the Administrator. Photos used are for presentation purposes, due to portfolio changes

DUBAI – market overview

Dubai Enrolments - Nationality

» Dubai experienced 9.4% growth in student numbers between 2012 and 2013, then higher growth still from 2013 to 2014, at 13.7%. This is significantly above the global average rate of enrolment growth of 5.3%.

» Dubai has been viewed as a safe and stable locality in a region that has experienced political conflict over the past decade. As a result, regional students have sought education in Dubai for a combination of its proximatey to the home nation, and affordability compared to other English curriculum based study destinations.

» In addition, many students who are based in Asia view Dubai as a stepping stone to progressing into a Western institution. For example, it is common for Indian students to complete a foundation course in their home country, then enrol in an undergraduate degree at a western branch campus in Dubai. They then expect to enter into a postgraduate programme in the mother country of the international branch campus.

Source: MOHE, KHDA 2015

Other10%

Nigeria2%

Iran3%Pakistan5%India10%

Arab14%

GCC7%

Emirati43%

Forecasted Enrolment Growth - Dubai

50,000

300,000

250,000

200,000

150,000

100,000

02008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

146,702

245,512

59,801

Historical GrowthLong-term Growth - Six Year Average 8.5%Short-term Growth - Most recent year 13.7%

17

Page 18: Investment portfolio - gsa-im.com · Full addresses of the Fund directors are available from the Administrator. Photos used are for presentation purposes, due to portfolio changes

18

Opening Date February 2016

Types of Room 424 beds with a range of studios and cluster flats

Facilities Large communal recreation areas, reception, study room, gym and swimming pool

Location overview Adjacent to Dubai Academic City.

Target market A range of international campuses based in Dubai Academic City, including Cass Business School, Michigan State, University of Wollongong and The Royal College of Surgeons, Ireland.

Manager Uninest.

Asset Strategy Following completion of construction in January 2016, the property is now being leased and various nomination agreements with higher education providers are being negotiated.

The Fund currently owns one property, being ‘Uninest Dubai’. This is Dubai’s first ever private purpose built student accommodation property, which was opened in January 2016.

Uninest DubaiThe property is located 10 minutes away from Dubai Academic City, which is a 20,000 student Higher Education cluster. GSA Coral has taken a very healthy return from the development of the asset, and the completed property will now provide the Fund with a consistent income yield.

GSAF USD FUND

Page 19: Investment portfolio - gsa-im.com · Full addresses of the Fund directors are available from the Administrator. Photos used are for presentation purposes, due to portfolio changes

19

UNITED KINGDOM – market overview

QUALITY OF UNIVERSITY DESTINATIONS

» Two UK cities are ranked in the top 20 best student cities in the world (QS Rankings 2015/16)

» 48 UK universities ranked in the world’s top 500 (QS Rankings 2015/16)

INTERNATIONAL MARKET SHARE

» UK is the second biggest international student destination behind USA (UNESCO 2015)

GOVERNMENT SUPPORT

» New proposal to freeze the student loan payment threshold: ensures UK higher education to remain affordable to students, graduates and tax payers in the long-term

» 2010-2015 Government Policy: Action plan to generate a sustainable funding system and create a more competitive and innovative HE sector. (Source: Department for Business Innovation and Skills 2016)

MASSIVE ACCOMMODATION UNDERSUPPLY

» UK STUDENT NUMBERS grown to 2.4m - a 30% increase over the last 10 years

» 2014/15 512,400 university places granted. Acceptances for 2015/16 set new record at 532,300, an increase of 3.9%

» 186,000 FAILED TO GET A PLACE - 13 applicants for every 10 places

» 165,000 PRIVATE BEDS in UK expected to grow by another 30,000 in next 2 years

» 1 bed for every 2 students

» 1 bed for every 3 students London

MARKET OPPORTUNITY AND INVESTOR DEMAND

» The UK student accommodation market has seen unprecedented inward investment in 2015 with total transactions exceeding £6bn by year end

» International capital has been attracted by consistent year-on-year annual rental growth underpinned by the projected growth in student numbers

Source: UNESCO, 2015

800,000

700,000

600,000

500,000

400,000

300,000

200,000

100,000

0

Tota

l In

tern

atio

nal

Stu

den

ts

USA UKChin

aG

erm

any

Fran

ceAust

ralia

Russia

Japan

Italy

Saudi A

rabia

South

Kore

a

UAEAust

riaNet

herla

ndsM

alay

sia

Spai

nDen

mar

kIre

land

740,432

427,606

320,000319,283

271,399249,588

173,627150,617

77,73262,105

59,472 58,056 56,203

11,100

55,75922,351

57,50659,227

Page 20: Investment portfolio - gsa-im.com · Full addresses of the Fund directors are available from the Administrator. Photos used are for presentation purposes, due to portfolio changes

UK INVESTMENT PORTFOLIOGeographical exposure to the following UK locations:

Investment % of Portfolio

GSAF GBP & UCT 6%

St Regent Portfolio 6%

Crosslane Portfolio 7%

London Student Partnership

4%

20

Edinburgh

Newcastle

Lincoln

Nottingham

London

SheffieldLancaster

Glasgow

Dundee

Page 21: Investment portfolio - gsa-im.com · Full addresses of the Fund directors are available from the Administrator. Photos used are for presentation purposes, due to portfolio changes

Therese Houselocated in Zone One Central London close to Barbican tube station and central London institutions

21

GSAF GBP AND UNIVERSITY CAPITAL TRUST (UCT)

GSA Coral invests in the GSAF GBP and through that into the University Capital Trust (UCT). These hold a portfolio of 5 UK assets with 1,457 beds. There is a majority weighting to London and Nottingham. The portfolio benefits from several opportunities to reposition assets through pro-active asset management and capital expenditure to significantly improve rental profiles and capital values.

Page 22: Investment portfolio - gsa-im.com · Full addresses of the Fund directors are available from the Administrator. Photos used are for presentation purposes, due to portfolio changes

Opening date 2008.

Types of room 169 studios and 78 en-suite cluster flats.

Facilities Broadband/WiFi/IPTV, Storage, Common Rooms.

Location overview Central London (EC1) close to Barbican Centre and convenient for all Zone 1, central London institutions.

Target market Post Graduate students, international and second year and onwards students.

Manager Touchstone Student Living.

Asset Strategy The property is currently being prepared for a significant refurbishment in Q4 2016, comprising a full upgrade of all studios and en-suite bathrooms, upgrade of communal areas and a change to some existing room configurations. In addition to the forecast rental uplift on the existing room types that this will create, the refurbishment will also result in a slight additional weighting to higher renting product types (studios rather than study bedrooms) and generate an additional 3 bedrooms. The location of Therese House (Zone 1 London) is superior to local alternatives and the refurbished product, range of offering, price point and room sizes will give it an even greater competitive positioning.

Therese House, London EC1

22

Page 23: Investment portfolio - gsa-im.com · Full addresses of the Fund directors are available from the Administrator. Photos used are for presentation purposes, due to portfolio changes

23

Opening date 2004.

Types of room 378 fully furnished en-suite rooms, studios have private kitchenette.

Facilities Broadband/WiFi, common rooms and storage. Recent study bedroom desk area refurbishments.

Location overview Adjacent to Nottingham Trent University, town centre and all transport facilities.

Target market First year-and-upwards students attending Nottingham Business and Law Schools, and main Nottingham Trent campus.

Manager Touchstone Student Living.

Asset Strategy The refurbishment of 215 shower rooms is scheduled to be undertaken over summer 2016 to further improve the quality of the rooms for students and support forecast growth in rental rates. More significant scheme upgrade works are currently being considered (such as creating greater communal space).

Goldsmiths Court, Nottingham

Page 24: Investment portfolio - gsa-im.com · Full addresses of the Fund directors are available from the Administrator. Photos used are for presentation purposes, due to portfolio changes

Opening date Completed in 2005.

Types of room 281 rooms, all cluster suites.

Facilities Broadband/WiFi, common rooms, laundry and recently refurbished kitchen diners.

Location overview Less than a mile from Newcastle University, with Northumbria University a two-minute walk and transport connections and local amenities close-by.

Target market Northumbria and Newcastle University students.

Other details The building includes a lease to a convenience store on the ground floor.

Manager Touchstone Student Living.

Asset Strategy A capital expenditure program is being implemented over summer 2016. This comprises the complete refurbishment of 227 shower rooms, reconfiguration of the reception space to create improved customer interaction, and create of greater communal space at the scheme. This will further reinforce the offering as an excellent value product in a competitive marketplace.

Knoll Court, Newcastle

24

Page 25: Investment portfolio - gsa-im.com · Full addresses of the Fund directors are available from the Administrator. Photos used are for presentation purposes, due to portfolio changes

25

Opening date 2000.

Types of room 262 rooms in blocks of three and four storey buildings, mainly cluster flats with six houses.

Facilities All rooms are en-suite, WiFi, security system, pool tables and vending machines. Recent re-carpeting now completed.

Location overview Close to Sheffield centre, university campuses, transport and local amenities.

Target market Year One students and upwards.

Manager Operated by Sheffield Hallam University accommodation services.

Asset Strategy An upgrade of lighting and beds for all rooms is being undertaken prior to the commencement of the 2016/17 academic year. This expenditure will improve the marketability of rooms to maintain high levels of occupancy, and also strengthen any future sale-ability of the asset.

Bramall Court, Sheffield

Page 26: Investment portfolio - gsa-im.com · Full addresses of the Fund directors are available from the Administrator. Photos used are for presentation purposes, due to portfolio changes

26

Opening date 2001.

Types of room 289 cluster, en-suite rooms.

Facilities Broadband/WiFi, launderette, pool table and common rooms.

Location overview Both Lincoln university campuses are close-by, city centre and local amenities within a short walk.

Target market First-year and upwards students.

Manager Touchstone Student Living.

Asset Strategy Demand for Park Court has been historically strong, driven in large part by the Manager’s excellent relationship and marketing arrangement with the University of Lincoln to target new tenants. Students are referred to the property in August of each year, which typically creates an excess of demand for the available accommodation.

Park Court, Lincoln

Page 27: Investment portfolio - gsa-im.com · Full addresses of the Fund directors are available from the Administrator. Photos used are for presentation purposes, due to portfolio changes

Opening date 2011 (refurbishment).

Types of room 148 rooms including 4/5/6 room cluster flats with 5/6 room townhouses.

Facilities Broadband/WiFi, launderette, pool table and shared facilities and common rooms. Utilities included, free shuttle to University of Edinburgh.

Location overview Close by to Edinburgh campuses, close to the southern centre of town and all local amenities and transport services are within a short walk.

Target market Leased to University of Edinburgh term-time and an additional summer school.

Manager Prime Student Living.

St Regent, Meadow Court, Edinburgh

27

ST REGENT PORTFOLIO

This is a portfolio of two properties in Edinburgh and Glasgow. Both properties are fully operational assets procuring income returns for the portfolio. Meadow Court, Edinburgh, is fully leased to the University of Edinburgh.

Page 28: Investment portfolio - gsa-im.com · Full addresses of the Fund directors are available from the Administrator. Photos used are for presentation purposes, due to portfolio changes

28

Opening date 2011 (conversion).

Types of room 81 rooms including 3/4/5 room cluster flats.

Facilities Broadband/WiFi, washer/dryers, pool table and shared facilities and common rooms. Utilities included.

Location overview Close by to Glasgow campuses, city centre local amenities and transport services are within a short walk.

Target market Russell Group member University of Glasgow students and other institutions.

Manager Prime Student Living.

St Regent, Sauchiehall Street, Glasgow

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Opening date 2012 (conversion).

Types of room 71 rooms including single and twin studios.

Facilities Broadband/WiFi, launderette, pool table and common rooms.

Location overview Close by to Kingston University campuses, in the centre of town and all local amenities within a short walk.

Target market First-year and upwards students.

Manager Amro Property Management.

Asset Strategy An upgrade of lighting and beds for all rooms is being undertaken prior to the commencement of the 2016/17 academic year. This expenditure will improve the marketability of rooms to maintain high levels of occupancy, and also strengthen any future sale-ability of the asset.

Greencoat House, Kingston-upon-Thames

LONDON STUDENT PARTNERSHIP This comprises an investment in Greencoat House, Kingston-Upon-Thames, London. The property was a former office complex which was converted to student accommodation in 2012. GSA Coral funded the very successful conversion and now maintains an equity stake in the completed asset.

Page 30: Investment portfolio - gsa-im.com · Full addresses of the Fund directors are available from the Administrator. Photos used are for presentation purposes, due to portfolio changes

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Page 31: Investment portfolio - gsa-im.com · Full addresses of the Fund directors are available from the Administrator. Photos used are for presentation purposes, due to portfolio changes

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Opening date 2004 (conversion).

Types of room 233 rooms including 3/4/5 room cluster flats.

Facilities Broadband/WiFi, pool table and shared facilities and common rooms. Utilities included, 24 hour reception and security.

Location overview Close by to both Lancaster university campuses, shopping centre, cinema and all local amenities and transport services which are within easy walking distance.

Target market Students seeking good facilities at affordable rents.

Manager Prime Student Living.

Asset strategy The property is currently undergoing refurbishment work to the ground floor rooms.

St Regent, Cable Street, Lancaster

CROSSLANE PORTFOLIO This is a portfolio of two properties managed by the Crosslane Group. Both assets are fully operational, providing a regular income return for the Fund.

Page 32: Investment portfolio - gsa-im.com · Full addresses of the Fund directors are available from the Administrator. Photos used are for presentation purposes, due to portfolio changes

Opening date 2012 (conversion).

Types of room 413 rooms including 1 - 6 room cluster flats.

Facilities Broadband/WiFi, launderette, pool table and shared facilities and common rooms. Utilities included, security and 24 hour reception.

Location overview In between both university campuses, in Dundee Cultural Quarter. Local amenities and transport services are within a short walk.

Target market Appeals to students seeking good value accommodation in the affordable space.

Manager Prime Student Living.

Asset Strategy Following a detailed hold / sell review in 2015, GSA Coral (in conjunction with the asset manager) concluded that investor returns could be maximised by recycling capital from this asset into new opportunities. As such, the asset has been marketed for sale and is a purchaser is currently in due diligence to acquire the property.

Crosslane, The Old Mill, Dundee

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Page 33: Investment portfolio - gsa-im.com · Full addresses of the Fund directors are available from the Administrator. Photos used are for presentation purposes, due to portfolio changes

AUSTRALIA – market overview

QUALITY OF UNIVERSITY DESTINATIONS» Six Australian and New Zealand cities are ranked

in the top 30 best student cities in the world. Melbourne and Sydney are ranked 2nd and 4th respectively. (Source: QS Rankings 2015)

» Five Australian and New Zealand Cities are ranked in the top 10 places to live. Melbourne is ranked 1st. (Source: The Economist 2014)

» Five Australian Universities are ranked in the top 50 overall world universities and nine in the top 100. (Source: QS Rankings 2015)

INTERNATIONAL MARKET SHARE» Australia is the 5th biggest international student

destination behind USA, UK, China and France with 6% of the total global enrolments. (Source: UNESCO 2014)

INCREASING STUDENT NUMBERS» Boosted by the lower Australian Dollar and relaxed

visa restrictions, the number of international students is increasing substantially and is expected to have grown by 8.6% by 2015 . In the year to February 2014 the total number of new student starts were 17.4% higher than 2013.

» The Australian International Education Advisory Council have predicted that International Student numbers will increase by a further 30% by 2020.

DOMESTIC MOBILITY» Huge potential over long term domestic mobility.

Historically, domestic students have studied locally and live at home. There is a huge disparity between Australia and New Zealand and other markets such as the US and the UK.

MASSIVE ACCOMMODATION UNDERSUPPLY » Existing supply of accommodation in Australia is

significantly less proportional than in the more established market of the UK. JLL analysis of the existing supply of PBSA (including university and private sector) indicates that apart from Canberra, there is less than one bed per 10 student compared to the UK markets such as London where the ratio is 1:4.

MARKET OPPORTUNITY» Existing product is generally poor quality and

low service. Recent developments by new operators and universities are raising standards but opportunity exists to offer a truly international quality service and be the market leader.

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AUSTRALIAN STUDENT ACCOMMODATION FUND In February 2016 the Fund made its first move into the Australian market, investing in a prime 350-bed student accommodation development in Carlton, Melbourne. The completed property, located directly opposite Melbourne University, will comprise a diverse range of accommodation offerings and is scheduled to come on stream for the 2018 academic year.

Melbourne was ranked number 2 in the world according to the ‘2016 QS Best Student World Cities’. Inner City Melbourne has over 100,000 students and only 9,500 purpose built beds, resulting in a significant undersupply of high quality student accommodation. Domestic student numbers are growing at 3.3% annually, whilst Melbourne is also seeing a similarly strong growth rate in numbers of international students who comprise 37% of the total inner city student population.

Source: Australian Bureau of Statistics

WESTERN AUSTRALIA13 HE Institutions139,000 students

QUEENSLAND15 HE Institutions233,000 students

NEW SOUTH WALES49 HE Institutions409,000 students

SOUTH AUSTRALIA16 HE Institutions90,000 students

TASMANIA2 HE Institutions29,000 students NEW ZEALAND

8 Universities180,000 students

NORTHERN TERRITORY2 HE Institutions11,000 students

VICTORIA34 HE Institutions357,000 students

ACT (CANBERRA)3 HE Institutions38,000 students

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Pelham Street, Carlton, Melbourne

Forecast opening date September 2017.

Types of room 352 beds with a very diverse mix of room types to maximise appeal to the market.

Facilities Large communal areas with communal dining and kitchen facilities, external terrace and bbq area. Retail shop on the ground floor.

Location overview Situated in a prime location directly opposite the University of Melbourne and a short walk from RMIT University.

Target market University of Melbourne and RMIT University.

Manager Uninest.

Asset Strategy Complete construction in line with forecast program, delivering development profit and subsequent operational income.

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Page 37: Investment portfolio - gsa-im.com · Full addresses of the Fund directors are available from the Administrator. Photos used are for presentation purposes, due to portfolio changes

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TOKYO – target market

Tokyo is the largest metropolitan area in the world. It is the world’s most populous metropolitan area with over 36.9 million people, and hosts 51 fortune 500 companies. It has the largest city economy in the world at GDP USD $1.9 trillion.

» 766,363 students in the 23 wards of Tokyo with c500,000 in central Tokyo

» 94 Universities and a total of 122 HE Institutions in wider Tokyo area (mixture of public and private)

» The largest 10 universities account for 330,000 enrolments

» 138,000 international students in Japan (c43,500 in Tokyo)

» In Tokyo, approximately 34,000 international students are not in purpose built accommodation

» Universities are keen to attract more international students through enhanced facilities but not looking to invest capital upfront

» University enrolments and growing influx of international students to Japan enable universities to be comfortable with under writing agreements

» Significant number of university halls built prior to 1981 and therefore do not meet current seismic regulations, this is a key concern for the universities with regards to reputation

» Majority of universities have ‘out-sourced’ accommodation support to local estate agents

Managed Student Accommodation Comparison

3,500,000

3,000,000

3,200,000

29,00050,000

385,000

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2,000,000

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EXISTING STUDENT ACCOMMODATION

Existing accommodation in Tokyo is fully occupied with many students on waiting lists. The accommodation is low quality, out dated properties that are not purpose built for students. They are not design-led and do not have an aspirational look or feel, and are mostly single unfurnished rooms.

Page 38: Investment portfolio - gsa-im.com · Full addresses of the Fund directors are available from the Administrator. Photos used are for presentation purposes, due to portfolio changes

CONTACT

www.gsa-im.com/gsacoral www.gsa-gp.com

ASIA PACIFIC

HONG KONG +852 3700 6388 2401, Wing On Centre 111 Connaught Road Central,Hong Kong

CUSTODIANRBS Global Banking Luxembourg S.A.46 Avenue J F Kennedy, L-1853, Luxembourg

ADMINISTRATORApex Fund Services Ltd2 Boulevard de la Foire, L-1528, Luxembourg

AUDITORErnst & Young, 35e Avenue J F Kennedy, L-1855,Luxembourg

TAX AND LEGALLoyens & Loeff, 18-29 Rue Edward Steichen L,Luxembourg

EUROPE

LONDON +44 20 7518 1700 4th Floor 13 Albemarle Street London W1S 4HJUK

MIDDLE EAST

DUBAI +971 4 289 8033 2801, API Trio Sheikh Zayed Road, Al Barsha, Dubai PO Box 121408 UAE

GSA CORAL PORTFOLIO

+352 2848 00602, Boulevard de la Foire, L-1528,Luxembourg

THE FUND SERVICE PARTNERS

GSA GROUP GLOBAL HEADQUARTERS

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