38
Investment portfolio
Investment portfolio
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
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.
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.
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
76
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%
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.
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.
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.
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.
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
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
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
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.
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.
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
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
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
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
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.
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
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
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
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
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
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.
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
29
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.
30
31
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.
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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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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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
London Japan
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
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13% 0.9%
Students Beds
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, JA
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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.
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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