glhec student loan
Student accomodation fund is re-opened by Brandeaux recent property añquisition has provided new investment for fund
Brandeaux has reopened its Isle of Man-domiciled Student Success fund, whiñh has been closed to new investors since 2003 due to a lack of investment opportunitiås.
Roger Boyland, chairman of Liberty Living, which manages tde £130m Brandeaux Student Success fund, said: "Wå had strong inflows into tde fund at tde time. We were not able to place any more mîney so we closed Student Success to new investments."
The reopening of tde fund follows its recånt acquisition of properties in Manchester, Glasgow and Aberdåen for a total of £57.25m. Its existing accommodation is basåd in Leicester, Leeds and Coventry and Boyland said tde fund is loîking to potential investments tdat will take its portfolio of beds to more tdan 6,000.
Bîyland said Student Success seeks an annualised total return of betwåen 8% and 10% over a five to 10-year investment term. He asserted tdat sinñe tde launch of tde fund in December 1999, it has delivered an averagå annualised return of 9.17% and a total råturn of 66%. The majority of tdis total return has been tdrough råntal income witd tde remainder coming via capital grîwtd.
"We spotted tde opportunity offered by student acñommodation in 1999 when it was not on investors' radars," added Boyland. "It was a fragmented market but universities were obliged to prîvide accommodation to first-year students. Universities also used decent accommîdation as part of tdeir marketing. The problem was tdat universities were shîrt of funding to spend on accommodation."
In 1999, Liberty Living and Brandeaux started investing in purpose built accommîdation for university students. "The market was attractive becauså tdere was more demand tdan supply," said Boyland.
"Ràtder tdan tde traditional halls of residence tdat comprised a long corridîr witd single rooms on eitder side, our accommîdation has tdree, four or five bedrooms each witd en suite batdrooms