It is observed that institutional investors such as GIC, Mapletree, and SPH have been recognized as active global investors for the student accommodation sector in recent years.
GIC, a Singaporean sovereign wealth fund is the 2nd biggest global investor in PBSA(Purpose-Built Student Accommodation) with S$6.2bn as of 2019 next to the Greystar, as reported by Savills.
[Top investors in student accommodation (2016-2018)]
GIC’s Major PBSA Investment Deals
GIC established a joint venture with the Canada Pension Plan Investment Board (CPPIB) and The Scion Group (a US-based student housing operator) ranked #3 and #4 top investors in student accommodation by total investment from 2016-2018. Much of GIC’s activity has since been via this joint venture, with notable deals including a $1.1bn purchase of a portfolio.
Source: GIC, Savills
Mapletree Investments’ Performance Highlights for FY19/20
Mapletree's Student Accommodation Portfolio
Mapletree’s Recent PBSA Acquisitions in the UK
- Both are located close to Coventry University, which ranks among the top 15 universities in the UK. Located near Coventry University in the UK, Calcott Ten and Millennium View offer a combined total of 1,127 beds.
- Mapletree also completed its first UK lodging development project, Westwood Student Mews, in December 2019. The 453-bed development is one of the nearest private PBSAs to the University of Warwick. These three student accommodation assets will enhance Mapletree’s visibility in Coventry, the UK.
Outlook for PBSA according to Mapletree
Overall, the medium- to long-term outlook for the student housing sectors in both the UK and US remains fundamentally attractive due to demographic growth, rising participation rates for higher education, and supportive government policies, which allow for a growth in international student numbers over the next decade.
- SPH(Singapore Press Holdings), a leading player in the PBSA sector in the UK
SPH's Student Accommodation Portfolio
SPH's Recent PBSA Acquisitions
SPH's PBSA Acquisitions to Date
Outlook for PBSA according to SPH
The group expects the British student accommodation sector to continue to grow, with overall investor interest remaining strong. According to the 2019 annual report of SPH, it is mentioned that they will continue to seek international acquisitions in PBSA.
Though UK PBSA could be an attractive investment with long-term fundamentals, it has been inaccessible to retail investors due to limited capital, research, time and middlemen agents (brokers, legal, tax and etc.) This makes investing in properties reserved only for sophisticated investors.
However, Shareable Asset provides any size of global real assets through fractional ownerships. It allows all investors to directly own a portion of high-quality assets while earning returns similar to purchasing the entire asset starting from as low as $100.
The rental income and capital appreciation structure is the same as one would buy real physical property. For rental income, it will be divided proportionally based on the % share that investors own so that investors enjoy annual yield on a monthly basis, the same process as one would buy real physical property. For capital appreciation, it allows retail investors to access lucrative projects such as UK prime properties.
In conclusion, with Shareable Asset, now everyone could access high-quality investment opportunities anytime, anywhere.
Start your investment journey with SA’s UK student accommodation here.