Investment portfolio - March 2017 - GSA Coral

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Investment portfolio - March 2017 - GSA Coral
Investment
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      March 2017
              V5
Investment portfolio - March 2017 - GSA Coral
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
Investment portfolio - March 2017 - GSA Coral
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 portfolio - March 2017 - GSA Coral
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
Investment portfolio - March 2017 - GSA Coral
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
Investment portfolio - March 2017 - GSA Coral
UNITED KINGDOM
PORTFOLIO
Investment portfolio - March 2017 - GSA Coral
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

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                                                                                                                                     Source: UNESCO, 2015

                                                                                                                                                                 7
Investment portfolio - March 2017 - GSA Coral
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
Investment portfolio - March 2017 - GSA Coral
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
Investment portfolio - March 2017 - GSA Coral
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.

10
Crescent 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

                                                                                                                            11
GSAF 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.

                                                                                                                        13
Therese 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.

14
Goldsmiths 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.

                                                                                                                       15
Knoll 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.

16
17
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.

18
St 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.

                                                                                                                             19
DUBLIN
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

 22
GSAF 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).

                                                                                                                          23
Broadstone 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.

24
Kavanagh 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.

                                                                                                                          25
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.

 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.

26
Brunswick 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.

                                                                                                                         27
AUSTRALIA
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.

                                                                                                                       29
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. 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

30
Pelham 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.

                                                                                                                     31
Elizabeth 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.

32
Stirling 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.

                                                                                                               33
DUBAI | 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

34
GSAF 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.

                                                                                                                        35
TOKYO
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.

38
Asia 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.

                                                                                                                      39
GERMANY
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

                                                                                                                                                                        41
CONTACT

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 | 2017
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