The Student Accommodation Opportunity Fund, a Luxembourg Sicav Sif, will consider investments in purpose build blocks, but will give preference to individual properties, which are easier to dispose of, in order to mitigate risk.
Properties targeting students at ‘Russell Group’ universities (a collection of universties across the country ranging from Edinburgh to Birmingham to Cambridge) are prime choices as the universities are oversubscribed, have lower dropout rates and fewer incidences of bad debt, a further hedge against risk.
The aim is to achieve rental income of 6.25% per annum. Assets will be acquired and managed by SGB Property Managers , and all properties will be refurbished to a standard template.
Philip Ingman, whose firm Ingman Capital Partners has been appointed as independent investment adviser to the fund, forecasts that the fund should be capable of generating an annualised total return of more than 10% per annum over the next five years.
Ingman commented: “Too many people still think of the Young Ones when you mention student houses, but students are becoming more demanding – and are prepared to pay for better facilities. Well-managed private housing can offer high standard accommodation and generate very attractive returns.”
The sterling fund is open to institutional, professional or ‘well informed’ investors, and the minimum investment is £10,000.