THE GLOBAL
STUDENT OPPORTUNITY

STUDENT ACCOMMODATION

A New Global Asset Class

98

MILLION
YEAR 2000

165

MILLION
YEAR 2011

263

MILLION
YEAR 2025

168%  GROWTH

Over the past decade, the global college/university student market has begun to emerge as a mainstream investment category, attracting significant interest from investors, developers and private operators.

The sector’s rapid growth is being fueled by the active rise in student numbers worldwide as well as an increase in international student mobility. In the 2000-2011 period, global tertiary enrollments rose rapidly, from 98 million to around 165 million in 2011. By 2025 they are expected to reach over 263 million globally (source: advance- S.A.: a new global asset class report).

While new student housing is being built to accommodate a growing student population, it is not happening fast enough and the quality of product is not updated for the changing needs of today’s student. As a result, Student Accommodation (“S.A”) has outperformed other real estate sectors in the US and the UK.

KEY MARKET DRIVERS

Forecasted increase of 100 million college/ university students in the next 10 years (2025).

Students’ needs are shifting upwards: more sophisticated lifestyle.

The market lacks exceptional student residences with with best-in-class amenities and robust programming.

Economically and politically stable targeted markets (Europe).

Market imbalance: demand outnumbers supply.

Solid growth: 2.45bn GBP increase in global investments during and after global recession.

Demanding market: 1.3bn GBP of investments in Purpose Built Student Accommodation (“PBSA”) in the U.K. in 2013 (surpassing the U.S. market).

130bn GBP worldwide combined value of the PBSA sector.

Market stability: less cyclical performance.

Limited government-university funding: universities are shifting toward private-public partnerships (“PPP”) in developing student housing.

PBSA’s steady and above average yields compared to other real estate sectors.

A vertically integrated platform allows us to manage the process from investor to student, which makes our returns more significant relative to the competition.

Key Demand Drivers-3