Investment portfolio - March 2017 - GSA Coral
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Investment
portfolio
March 2017
V5
Contents
Investment Criteria 04
Portfolio Overview 05
United Kingdom – Market Overview 07
UK Student Advantage 09
GSAF GBP 13
London Student Partnership 18
St Regent and Crosslane Portfolios 19
Dublin - Market Overview 22
Dublin - GSAF EUR Fund 23
Australia - Market Overview 29
Australia Student Accom Fund 30
Dubai - Market Overview 34
Dubai - GSAF USD Fund 35
Tokyo – Market Overview 38
Asia Pacific Student Advantage Holdings 39
Germany - Target Market Overview 41
This document is private and confidential and has been prepared by GSA Coral Portfolio S.C.A. SICAV-SIF (GSA Coral an investment company with variable
capital organised as a multi-compartment specialised investment fund in the form of a corporate partnership limited by shares with registered office at 2,
boulevard de la Foire, L-1528 Luxembourg, Grand Duchy of Luxembourg and registered with the Luxembourg trade and companies registry (RCS Luxembourg)
under number B 144.034)* , solely for the information of Well-Informed Investors within the meaning of article 2 of the Luxembourg law dated 13 February
2007 in relation to specified investment funds.
GSA Coral Portfolio is a compartment of GSA 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 is an internally-managed alternative
investment 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 GSA Coral has investment exposure, no representation is made that GSA Coral Portfolio has
full ownership rights to any property shown.
*The change of name to GSA Coral received regulatory approval on the 29 November 2016 and shareholder approval on 27 February 2017.
© 2017 www.gsa-coral.com
THE GSA CORAL
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.
3
INVESTMENT DECISIONS ARE A CAREFULLY CONSIDERED,
RESEARCH-LED PROCESS WITH FOCUS ON THE
FOLLOWING KEY CRITERIA:
Higher Education Educational Institutions Underlying Investment
Macro Trends Structure
» Locations with forecast growth » Proximity to world class » Appropriate capital structuring
in the provision of higher universities and leading education
education, student enrolments providers attracting growing » Robust Fund strategy and risk
and educational hubs numbers of students management to deliver target
returns
» Growing attraction of » Opportunities to build long
international students and mobile term relationships with
domestic students education providers
» Robust economic markets
Location and Product Mix Operator Track Record
and Capability
» A significant supply / demand » Operators with established
imbalance of purpose built management and market
student accommodation knowledge
» Market rental levels that will » Provision of market leading
underpin successful development services to maximise occupancy
and enable future rental growth and student demand
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 S UNDERTAKEN BEFORE CONSIDERING ANY
INVESTMENT.
4
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.
Therefore the Fund Facts given below are a snapshot as at the 28 February 2017 and may
vary.
GSA Coral has a great depth and Japan, Hong Kong, China and along with a summary of each
breadth of contacts from 25 years Australia to source market leading investment market, can be found
at the forefront of the student investments. in the following pages.
accommodation sector, giving
the Fund access to a wide range The tables below provide a
of investment opportunities. summary of the geographical
Globally, the Fund has access spread of the Fund’s investments,
to the wider resources of the as well as the specific allocations
GSA Group with offices in the to individual investments.
UK, Ireland, Germany, Dubai, Further details of each of these,
FUND FACTS
NAV as at 28 February 2017 £144 million
Exposure to Beds 12,623
Exposure to properties 35
Exposure to underlying investments 10
27%
28%
45%
GSA Advantage Europe
5
UNITED KINGDOM PORTFOLIO
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 stu-
dents, 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
» 2016/17 set a further record at 535,200 (+0.5%) university places granted. Acceptances for 2015/16 set the previous
record at 532,300, an increase of 3.9%
» 183,200 FAILED TO GET A PLACE - 13 applicants for every 10 places in 2016/17 cycle
» 165,000 PRIVATE BEDS in UK expected to grow by another 30,000 in next 2 years
» 1 bed for every 2 students except London
» 1 bed for every 4 students London
MARKET OPPORTUNITY AND INVESTOR DEMAND
» The UK student accommodation market saw unprecedented inward investment in 2015 with total transactions exceed-
ing £6bn by year end, while 2016 followed up with in-excess of £3billion in investment value
» International capital has been attracted by consistent year-on-year annual rental growth underpinned by the projected
growth in student numbers
800,000
740,432
700,000
600,000
Total International Students
500,000
427,606
400,000
320,000
319,283
300,000 271,399
249,588
200,000 173,627
150,617
77,732 59,472 58,056 56,203
100,000 62,105 55,759
59,227 57,506
22,351
11,100
0
A
UK
a
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a
a
E
ria
s
sia
n
k
nd
nd
an
in
bi
re
ar
UA
pa
ai
US
Ita
ss
ra
an
st
la
ay
ra
Ch
Sp
nm
Ko
m
la
Ru
Ja
st
Au
Ire
Fr
al
iA
er
er
Au
h
De
M
th
ud
G
ut
Ne
So
Sa
Source: UNESCO, 2015
7
UK Investment Portfolio
Geographical exposure to the
following UK locations:
Edinburgh
Glasgow
Newcastle
Lancaster Sheffield
Liverpool Lincoln
Nottingham
Birmingham
Cambridge
Cardiff
Bristol
Plymouth London
Brighton
Bournemouth Portsmouth
Southampton
UK % of GSA Coral Portfolio
GSAF GBP 6%
St Regent Portfolio 3%
Crosslane Portfolio 6% Operational and development properties
are included in this location map.
London Student
4%
Partnership
UK Student
Advantage 7%
Holdings LTD
8
UK Student Advantage Holdings Ltd
These investments form a UK-wide portfolio of 7,154 beds across fourteen operating and de-risked development assets
providing diversification and scale. All new, best-in-class prime properties, these holdings provide exposure to diverse
leasing, nomination and direct-let income streams. Each of these assets were acquired alongside GSA IM and GIC as part of
the largest student accommodation deal of 2016.
This is a significant partnership which facilitates GSA Coral’s exposure to world-class opportunities in premium locations. In
keeping with GSA Coral’s long-term investment strategy of focusing upon well-located, prime properties close to leading
universities, these new additions provide valuable diversity and exposure.
All of the properties in this portfolio will be operated by award-winning The Student Housing Company which has provided
accommodation for students over the past six years. They have been voted Best Private Halls Provider in the Student Halls
Awards over the past three years and recently became a member of the GSA family of brands.
The Operational Portfolio
Ablett House | Liverpool
John Moores and the University of Liverpool are both just a
20-minute bus ride away while the Liverpool One shopping
centre and other transport facilities are nearby. Utilities are
included and the building offers a good choice of room sizes
and facilities.
Arofan House | Cardiff
Just a 10-minute stroll from Cardiff University and the
University of Wales, and a short bus ride from Cardiff
Metropolitan University. Arofan House is a good choice for
students studying in this capital city. Shops, restaurants and
bars located in Queen Street and St David’s Centre offers
entertainment and local amenities, while premier sporting
venues such as The Millennium Stadium are close-by.
Arran House | Edinburgh
This property is just a 20-minute walk from the University
of Edinburgh and Napier University, and a 25-minute bus
ride from Heriot-Watt University. The Royal Mile, Edinburgh
Castle, Princes Street (the main shopping area), Edinburgh
Waverley train station, and countless other landmarks, are all
in the vicinity.
9
Austen House | Southampton
The Southampton Solent University campus is just a 10-
minute walk from this complex, while the University of
Southampton is a quick bus ride away. This friendly South
Coast city provides a wealth of amenities including shopping,
entertainment and access to the sea and countryside, the
renowned New Forest National Park being a prime example.
Brae House | Edinburgh
Brae House is close to the famous Royal Mile in the Old
Town, Princes Street (great for big-name shops) and St
James Shopping Centre. The city’s main train station,
Edinburgh Waverley, is within walking distance and the city’s
universities and other amenities are all nearby. A variety of
room sizes is available at this property as well as popular
public and community spaces.
Canal Point | Edinburgh
This modern student block is ideally located in the heart of
Scotland’s capital city and close to University of Edinburgh,
The Meadows Park, Edinburgh Castle, Princes Street, the
Cameo and Odeon cinemas and the National Museum of
Scotland. Residents have the best that Edinburgh has to
offer, all within easy reach.
The Courtrooms | Bristol
Provided exclusively for University of Bristol, residents
will find their studies within only a very short walk from
this modern property. Close by to all that this popular city
has to offer, a range of rooms is available. Transport hubs,
entertainment and shopping are conveniently located.
10Crescent Place | Southampton
Convenient for both of the city’s universities, Crescent
Place provides residents with easy access to local amenities.
A brand new building, the property has all modern
conveniences that any student could wish for and includes a
choice of room sizes and facilities.
Depot Point | London
Again offering a choice of room sizes and facilities, this
property augments the Portfolio’s central London exposure,
being located within the Capital’s Zone 1 and is convenient
for leading universities and other higher education
institutions. A short walk to Kings Cross and St Pancras
railway stations provides easy access to national and
international travel.
Europa House | Liverpool
Located close to the University of Liverpool the building is let
to an operator (Watkin Jones) with 14.5 years unexpired of a
20 year FRI lease. Annual rent review at 3.5% per annum for 5
years and then collar and cap at 2% and 5%.
The Development Portfolio
In addition to the nine operating buildings, there are a further seven de-risked development assets, which will provide a
further 3,520 beds for the Portfolio in phased delivery, over the next two years. These will be located in:
Plymouth Portsmouth
Birmingham Bournemouth
Cambridge Edinburgh
Brighton
11GSAF GBP
GSA Coral invests in the GSAF GBP fund, which invests in 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. An example of
this is the significant refurbishment of Therese House in central London discussed later in this section.
GSA Coral invests in this fund alongside major US investment House, Harrison Street Real Estate (HSRE). This significant
collaboration is indicative of the quality of the opportunities we can access, and the partners alongside whom we invest.
13Therese House | London EC1
Opening date 2008.
Types of room 184 studios, 60 en-suite cluster beds and 6 non en-suite twodio beds.
Facilities Broadband/WiFi/IPTV, Storage, Common Room.
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 The Student Housing Company.
Asset Strategy The property has undergone a significant refurbishment, 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 has also resulted in a slight additional
weighting to higher renting product types (studios rather than study bedrooms) and
generated 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 delivers a competitive position.
14Goldsmiths Court | Nottingham
Opening date 2004.
Types of room
378 en-suite rooms comprising 307 cluster beds, 70 studios and a 1 bed flat.
Facilities
Broadband/WiFi, and recent study bedroom desk area refurbishments.
Location overview
Adjacent to Nottingham Trent University, city centre and all transport facilities.
Target market
First year-and-upwards students attending Nottingham Business and Law Schools, and
main Nottingham Trent campus.
Manager The Student Housing Company.
Asset Strategy The refurbishment of the last phase of shower rooms was completed in 2016 to 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
communal space).
This is arguably the best located private student accommodation block in central
Nottingham and, as such with a strong University adjacent, is a key asset to hold at
this time.
15Knoll Court | Newcastle
Opening date Completed in 2005.
Types of room 281 rooms, all cluster en-suite.
Facilities Broadband/WiFi, laundry and recently refurbished kitchen diners.
Less than a mile from Newcastle University, with Northumbria
Location overview University a two-minute walk and transport connections and local
amenities close-by.
Northumbria and Newcastle University students.
Target market
The building includes a lease to a convenience store on the ground
Other details floor.
The Student Housing Company.
Manager
The final phase of shower room refurbishments was completed
Asset Strategy in 2016 to enhance the accommodation offering. A further phase
of capital works to reconfigure the reception and entrance to
improve customer interaction and also to provide a common
room is being assessed for future implementation. This would
further reinforce the offering as an excellent value product in a
competitive marketplace.
Bramall Court | Sheffield
Opening date 2000.
262 rooms in blocks of two, three and
Types of room four storey buildings, mainly
cluster flats with six houses.
All cluster flat bedrooms are en-suite and the six houses provide an
Facilities
alternative non-ensuite offering with 4 people sharing two shower
rooms. WiFi, fob access security system, pool table and vending
machines.
10 minute walk to Sheffield city
Location overview centre and university campus,
transport and some retail facilities close by
Target market Year One students and upwards
Manager Operated by Sheffield
Hallam University accommodation services.
An upgrade of lighting and beds for all rooms was undertaken
Asset Strategy 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.
Park Court | Lincoln
Opening date 2001.
Types of room 289 cluster, en-suite rooms.
Facilities Broadband/WiFi, launderette, pool table and common room.
Location overview Both University of Lincoln and Bishop Grosseteste University
College campuses are close-by, city centre and local amenities
within a short walk.
Target market First-year and upwards students.
Manager The Student Housing Company.
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.
The intent is to hold and operate this stable asset.
1617
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.
Greencoat House | Kingston-upon-Thames
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 lose by to Kingston University campuses, in the centre of town and all local amenities
C
within a short walk.
Target market First-year and upwards students.
Manager Amro Property Management.
Asset Strategy onsideration is being given to a light touch refurbishment to enhance the appearance
C
of the accommodation and the student offering whilst retaining the ability to price
competitively in what is an increasingly competitive local market. Consideration is also
being given to disposal of the asset in the next 12 months to release capital for other
opportunities.
18St Regent Portfolio
This property, located in the heart of Glasgow, is a fully operational asset procuring income returns for the portfolio.
St Regent, Sauchiehall Street | Glasgow
Opening date 2011 (conversion).
Types of room 81 rooms including 3/4/5 room cluster flats.
Facilities
Broadband/WiFi and washer/dryers. Utilities included.
Close by to Glasgow campuses, city centre local amenities and
Location overview
transport services are within a short walk.
Russell Group member University of Glasgow students and
Target market
other institutions.
Manager Prime Student Living.
Asset Strategy Consideration is being given to trade this asset in the next 12
months to release capital for other opportunities.
Crosslane Portfolio
This property is managed by the Crosslane Group, and being fully operational, also provides a regular income return for
the Fund.
Cable Street | Lancaster
Opening date 2004 (conversion).
Types of room 233 rooms including 3/4/5 room cluster flats.
Facilities Broadband/WiFi. Utilities included.
Location overview
Close to Lancaster city centre and transport links. A regular
shuttle bus links the property to Lancaster University campus
which is located about 3 miles out of town.
Target market Students wanting the benefits of city centre, off campus living
whilst retaining easy access to the University.
Manager Living.
Prime Student
Asset strategy is to hold and operate this asset as one of a limited
The intention
number of purpose built schemes in Lancaster City centre. There
is a new purpose built scheme which is under-way for delivery in
2018, in a less desirable location, however Cable Street benefits
from the competitive advantage of providing value for money
City centre living, which underpins occupier demand.
19DUBLIN PORTFOLIO
21
Dublin | Market Overview
Due 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 originate from the EU, amounting to 94%.
Dublin has eight major higher Dublin also has a very significant universities are Trinity College Dublin
education institutions. According to English Language School industry. and University College Dublin. These
the QS Best Student City Rankings Around 95,000 English language universities are respectively ranked
for 2015, Dublin was ranked 32nd students came to Dublin annually 71st and 154th in the world rankings
out of 50 international cities. The to study. Of the 95,000 total, issued by QS World University
city has 92,600 full time students, of approximately 60,000 attend courses Rankings for 2014/15.
which 44,617 study in and around at Dublin’s 110 English language
the city centre area and 22,500 schools approved by the National
international students are enrolled in Qualification Authority. The majority
either undergraduate or postgraduate of these language colleges and
education. schools are based in the city centre.
The two oldest and most prestigious
Forecasted Enrolment Growth - Ireland
240,000
Historic Enrolments 232,108
220,000 Planned Growth - CSO
206,965
Medium Growth 1.4%
200,000
Historic Average Growth 2.7%
192,935
180,000
160,000
140,000
120,000
100,000
20 3
00
20 1
02
20 3
04
20 5
06
20 7
08
20 9
10
20 1
12
20 3
14
20 5
16
20 7
18
20 9
20
20 1
22
24
0
1
2
0
1
0
1
0
1
2
0
1
20
20
20
20
20
20
20
20
20
20
20
20
20
Source: GSA 2015
Target Market Breakdown - Dublin
100,000
90,000
80,000 International Target
27,762 market –
70,000 59,622
(total
60,000 students
living away
50,000 Outside Dublin from home
31,860 in Dublin)
40,000
30,000
20,000 Local
33,004
10,000
0
22GSAF Euro Fund
This Fund invests in a 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, seeing 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.
Currently the JV has four properties, being Mill Street, Broadstone Hall, Brunswick Street and Kavanagh Court.
Three of these are developments under construction, with two due to come on stream for the 2018 academic year.
Once completed, they will comprise some of the best accommodation offering in the Dublin market (which is
significantly undersupplied and experiencing very high demand).
23Broadstone Hall, Dublin 7 | Ireland
Broadstone 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.
Opening date
September 2016 (refurbished)
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 terraces
Location overview Excellent location adjacent to the Dublin Institute of Technology (DIT)
Grangegorman 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 directly outside the scheme
and is to be called ‘Broadstone’.
Target market Students of DIT and language schools including Atlantic Learning or
Dublin Business School
Manager Uninest
Asset Strategy full refurbishment programme was undertaken in summer 2016; making the 10 year old
A
asset one of the freshest student accommodation schemes in the city
The intent is to hold and operate this well located updated asset as the
first Uninest operational asset in the Dublin market.
24Kavanagh Court, 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.
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.
The intention is to hold and operate this new purpose built asset with anticipated
ongoing occupier demand driven by its proximity to the City centre and
key Dublin Institutions.
25Mill 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.
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 omplete construction in line with forecast program, delivering development profit and subsequent
C
operational income.
The intention is to hold and operate this well located asset which benefits from City centre and
University proximity. There is also potential for further development close by which may be
beneficial through economies of scale.
26Brunswick Street | Dublin | Ireland
A prime Dublin asset that will be located adjacent to the Dublin Institute of Technology new Grangegorman
campus, which will by 2021 provide courses for 20,000 students.
Forecast opening date
Autumn 2018
Types of room
571 beds with a mix of shared apartments and studios.
Facilities Large communal areas and high level of user interface technology.
Location overview rime location adjacent to the Dublin Institute of Technology with easy access to the city
P
centre.
Target market Dublin Institute of Technology.
Manager Uninest.
Asset Strategy Location selected to deliver strong occupier demand through very close proximity to
the new Dublin Institute of Technology campus which will consolidate campuses from
across the city in a central location of 20,000 students. Current focus is on completion
of construction in line with forecast program, delivering development profit and
subsequent operational income then to hold as a prime Dublin asset.
27AUSTRALIA PORTFOLIO 28
Australia | Market Overview
QUALITY OF UNIVERSITY DESTINATIONS DOMESTIC MOBILITY
»
Six Australian and New Zealand cities are ranked in the »
Huge potential over long term domestic mobility.
top 30 best student cities in the world. Melbourne and Historically, domestic students have studied locally
Sydney are ranked 2nd and 4th respectively. (Source: and live at home. There is a huge disparity between
QS Rankings 2015) Australia and New Zealand and other markets such as
the US and the UK.
»
Five Australian and New Zealand Cities are ranked
in the top 10 places to live. Melbourne is ranked 1st.
(Source: The Economist 2014) MASSIVE ACCOMMODATION UNDERSUPPLY
»
Existing supply of accommodation in Australia is
»
Five Australian Universities are ranked in the top 50 significantly less proportional than in the more
overall world universities and nine in the top 100. established market of the UK. JLL analysis of the
(Source: QS Rankings 2015) 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
INTERNATIONAL MARKET SHARE the UK markets such as London where the ratio is 1:4.
» Australia is the 5th biggest international student
destination behind USA, UK, China and France with 6%
of the total global enrolments. (Source: UNESCO 2014) MARKET OPPORTUNITY
»
Existing product is generally poor quality and low
service. Recent developments by new operators and
INCREASING STUDENT NUMBERS universities are raising standards but opportunity
» Boosted by the lower Australian Dollar and relaxed exists to offer a truly international quality service and
visa restrictions, the number of international students be the market leader.
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.
29Australian 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. Since then, further two prime developments have been
added to the portfolio (in Melbourne and Perth).
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.
Meanwhile, with the lowest market penetration of the key Australian university cities (6.2%), Perth represents
a compelling opportunity for purpose-built student accommodation. The city’s 79,000 full-time students
have less than 5,000 PBSA beds available to them – a significant supply/demand deficit that is of particular
appeal to GSA Coral and its plans for broader Australian exposure.
NORTHERN
TERRITORY
2 HE Institutions
11,000 students QUEENSLAND
15 HE Institutions
WESTERN 233,000 students
AUSTRALIA
13 HE Institutions
139,000 students
SOUTH AUSTRALIA
16 HE Institutions
90,000 students NEW SOUTH WALES
49 HE Institutions
409,000 students
ACT (CANBERRA)
3 HE Institutions
38,000 students
VICTORIA
34 HE Institutions
357,000 students
TASMANIA
2 HE Institutions
29,000 students NEW ZEALAND
8 Universities
180,000 students
Source: Australian Bureau of Statistics
30Pelham Street | Carlton | Melbourne
Prime located asset opposite the University of Melbourne, RMIT University and our Pelham Street asset.
A wide selection of room types including studios, small group apartments and twin shares makes for a
proposition with appeal to a diverse student target market - coupled with its excellent location and quality
finishes, Pelham Street will have plenty to offer Melbourne’s discerning students.
Forecast opening date Late 2018
Types of room 346 beds with a very diverse mix of room types to maximise appeal to the market.
Facilities
Large communal areas with 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. 50m from the Elizabeth Street asset.
Target market University of Melbourne and RMIT University.
Manager Uninest.
Asset Strategy Location selected for excellent proximity to both the University of Melbourne and
RMIT University, to deliver sustained tenant demand and rental growth. Local
economies of scale will be maximised though the proximity (50m) to the Elizabeth
Street asset. Current focus on completing construction in line with forecast
program, delivering development profit and subsequent operational income.
31Elizabeth House | Melbourne
Prime located asset close to the University of Melbourne, RMIT University and our Pelham Street asset. This
property will have 326 beds offered as studios, small group apartments and duplexes, with balconies for
some rooms. A high proportion of social and study space will be provided within the building, only adding to
its appeal.
Forecast opening date Early 2019
Types of room 326 beds with a mix of shared apartments and studios.
Facilities Large communal areas including breakout areas at all levels and
basement space with proposed use as a gym and cinema.
Location overview Situated in a prime location close to the University of Melbourne and a short walk
from RMIT University. 50m from the Pelham Street asset.
Target market University of Melbourne and RMIT University.
Manager Uninest.
Asset Strategy Site selected for its close proximity with the University of Melbourne, RMIT
University and also the Pelham Street building, to deliver sustained occupier
demand, rental growth and enhance the ability to maximise economies of scale
locally. Current focus is to complete construction in line with forecast program,
delivering development profit and subsequent operational income.
32Stirling Street | Perth
Offering an appealing mix of city centre living and easy access to Perth’s University of Western Australia
and Curtin University, Stirling Street’s dramatic design and state of the art amenities will offer residents
convenience and a unique living experience.
Forecast opening date Late 2018
Types of room 571 beds with a mix of shared apartments and studios.
Facilities
Large communal areas including 15m swimming pool, roof terrace and outside
cinema.
Location overview
Close by public transport links to the University of Western Australia and Curtin
University. The central business district (CBD) of Perth with associated retail and
social facilities is also nearby.
Target market University of Western Australia and Curtin University.
Manager Uninest.
Asset Strategy Location selected to deliver strong occupier demand through proximity to
city centre facilities, services and access to the key Perth institutions. Current
focus is on completion of construction in line with forecast program, delivering
development profit and subsequent operational income.
33DUBAI | Market Overview
» Dubai experienced 9.4% growth » Dubai has been viewed as a safe and » In addition, many students who
in student numbers between 2012 stable locality in a region that has are based in Asia view Dubai as a
and 2013, then higher growth still experienced political conflict over stepping stone to progressing into
from 2013 to 2014, at 13.7%. This the past decade. As a result, regional a Western institution. For example,
is significantly above the global students have sought education it is common for Indian students to
average rate of enrolment growth of in Dubai for a combination of its complete a foundation course in
5.3%. proximatey to the home nation, their home country, then enrol in an
and affordability compared to undergraduate degree at a western
other English curriculum based branch campus in Dubai. They then
study destinations. expect to enter into a postgraduate
programme in the mother country
of the international branch campus.
Forecasted Enrolment Growth - Dubai Dubai Enrolments - Nationality
Other Nigeria
300,000 10% 2%
Historical Growth Iran
Long-term Growth - Six Year Average 8.5% 3%
245,512
Short-term Growth - Most recent year 13.7% Pakistan
250,000 Emirati 5%
43% India
10%
200,000 Arab
14%
GCC
7%
150,000
146,702
100,000
59,801
50,000
0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Source: MOHE, KHDA 2015
34GSAF USD Fund
The Fund currently owns one property, being ‘Uninest Dubai’. This is Dubai’s first ever private purpose built student
accommodation property,
Uninest Dubai | UAE
The 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.
Opening Date January 2016
Types of Room 424 beds with a range of studios and cluster flats.
Facilities arge communal recreation areas, reception, study room, gym and swimming
L
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 ollowing completion of construction in January 2016, the property is now
F
being leased and various nomination agreements with higher education
providers are being negotiated.
35TOKYO MARKET
TOKYO | Market Overview
Tokyo 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 » Universities are keen to attract more international
c500,000 in central Tokyo students through enhanced facilities
» 94 Universities and a total of 122 HE Institutions in » University enrolments and growing influx of
wider Tokyo area (mixture of public and private) international students to Japan enable universities to be
comfortable with under writing agreements
» The largest 10 universities account for 330,000
enrolments
» Japan is facing growing demand for student
» 138,000 international students in Japan accommodation in highly competitive real estate
(c43,500 in Tokyo) market conditions
» In Tokyo, approximately 34,000 international students » Majority of universities have ‘out-sourced’
are not in purpose built accommodation accommodation support to local estate agents
Managed Student Accommodation Comparison
3,500,000
Students Beds 3,200,000
3,000,000
Number of Students/beds
2,500,000
2,000,000
Source: HESA, MEXT, JASSO, 2015
1,500,000 13% 0.9%
1,000,000
385,000
500,000
50,000 29,000
0
London Japan
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.
38Asia Pacific Student Advantage Holdings
GSA Coral gains its first exposure to Japan through its collaboration in the exciting joint venture between the
GSA Group and one of Japan’s leading real estate investment companies, Star Asia. The new property will
offer residents modern amenities and a unique living experience in the Bunkyo-ku district of Tokyo.
Hakusan | Tokyo
Forecast opening date 2019
Types of room 364 beds over a 4,500sq m floor space.
Facilities Communal lounge area, theatre room, study spaces, BBQ area and kitchen, utilities
included.
Location overview Bunkyo-ku is the home of the Hongo Campus for the University of Tokyo with its
ten faculties and approximately 30,000 students.
Target market University of Tokyo students including both home and overseas.
Manager Uninest.
Asset Strategy Japan is a top ten destination for international students and this development offers
good proximity to the popular University of Tokyo, Hongo Campus. The asset will
bring a new format of accommodation to the student accommodation market
combining the learnings of GSA in more mature markets and the local market and
occupier demand factors in Tokyo. Close collaboration with Star Asia as a leading
Japan real estate specialist together with GSA’s track record of operations in the
region in University owned stock, support this first step into the Tokyo real estate
market and will provide a track record for the acquisition and development of
further assets in the region.
39GERMANY TARGET MARKET 40
Germany | Target Market Overview
QUALITY OF UNIVERSITY DESTINATIONS MARKET OPPORTUNITY
» Two German cities are ranked in the top 20 best » Existing product is generally poor quality and low
student cities in the world (Source: QS Rankings 2015) service. Recent developments by new operators are
raising standards but opportunity exists to offer a truly
» 36 Universities in the world’s top 500 international quality service and be the
(Source: QS Rankings 2015) market leader
» No operator has more than 2,500 beds in
INTERNATIONAL MARKET SHARE their pipeline
» Germany is the fourth biggest international student
destination behind USA, UK and China
(Source: UNESCO 2015) LONG RENTAL GROWTH AND CAPITAL
MARKETS OPPORTUNITIES
» Rents are at a relatively low base in comparison
GOVERNMENT SUPPORT to other major European cities
» University education is fully subsidised by the German
government » The German capital markets are one of the
deepest and widest in the world
» 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
Enrolment Growth - Germany
Removal of tuition fees
3,000,000 14.0%
German International International %
Introduction of tuition fees 12.0%
2,500,000 Proportion of International Students (%)
10.0%
2,000,000
Total Enrolments
8.0%
1,500,000
6.0%
1,000,000
4.0%
500,000
2.0%
0 0.0%
76
78
80
82
84
86
88
90
92
94
96
98
00
02
04
06
08
10
12
14
20
20
20
19
19
19
19
20
19
19
19
19
19
19
19
20
19
20
20
20
Source: DEStatis, 2015
41CONTACT
GSA CORAL PORTFOLIO
+44 207 518 7841
2, Boulevard de la Foire,
L-1528,
Luxembourg
THE FUND SERVICE PARTNERS
CUSTODIAN ADMINISTRATOR AUDITOR TAX AND LEGAL
RBS Global Banking Apex Fund Services Ltd Ernst & Young, Loyens & Loeff,
Luxembourg S.A. 2 Boulevard de la Foire, 35e Avenue J F Kennedy, 18-29 Rue Edward Steichen L,
46 Avenue J F Kennedy, L-1528, L-1855, Luxembourg
L-1853, Luxembourg Luxembourg
Luxembourg
GSA GROUP GLOBAL HEADQUARTERS
ASIA PACIFIC EUROPE MIDDLE EAST
HONG KONG LONDON DUBAI
+852 3700 6388 +44 20 7518 1700 +971 4 289 8033
2401, Wing On Centre 4th Floor 2801, API Trio
111 Connaught Road Central, 13 Albemarle Street Sheikh Zayed Road,
Hong Kong London W1S 4HJ Al Barsha, Dubai
UK PO Box 121408
UAE
www.gsa-coral.com | info@gsa-coral.com | www.gsa-gp.com V5 | Mar | 2017You can also read
