Press release – Tuesday, 31 May 2016 – 08.00 hrs
Global Student Accommodation Group (“GSA Group”), the international student accommodation developer, operator and asset manager, and Coral Portfolio Limited, the holding company of Coral S.à.r.l., (which is the general partner of Coral Portfolio S.C.A. SICAV-SIF), today announced that GSA’s Investment Management division has completed the acquisition of the remaining 50% of Coral Portfolio Limited.
Following regulatory approvals, the deal completes GSA Group’s integration of Coral Portfolio Limited following the acquisition of an initial 50% stake in May 2014. The business will be rebranded as GSA Coral and will continue to offer investors access to the growing student accommodation sector through its EU-regulated fund platform.
GSA’s management team has an unrivalled track record over 25 years, becoming the leading international authority on student accommodation as the asset class has moved into the property mainstream. The team has created over $7.5bn of student accommodation in 44 cities and eight countries, with an ongoing development pipeline in Australia, Ireland, Japan, Europe, UAE and the UK.
The re-branded GSA Coral will continue to utilise a broad range of funds and investment strategies otherwise only available institutionally. Becoming a fully integrated part of GSA Investment Management enables investors to access greater global resource, market-leading underwriting expertise and understanding of how to manage risk built on 25 years at the forefront of the sector.
Coral Portfolio Limited was established in 2008 as the first EU-regulated fund vehicle for investors wishing to benefit from the robust returns generated by purpose built student housing. It is also the first student accommodation fund to go global acquiring assets in growing markets, such as Australia, as well as securing first-mover advantage in new student housing markets, such as Dubai.
The portfolio is building a global presence at a time when the number of students enrolling at university is forecast to grow by almost 100 million worldwide over the next ten years. Global student mobility is also increasingly rapidly, underpinned by government policies to increase participation in education. These factors continue to reinforce the acute imbalance between supply and demand in major higher education centres around the world, supporting both occupancy levels and returns from student accommodation.
Nicholas Porter, Executive Chairman of GSA Group said: “This is a unique marriage of experience and expertise in student accommodation as we combine our successful business models on a truly global stage. GSA Coral will continue to offer our investors the opportunity to participate in the growing Student Accommodation sector via a platform of transparent, regulated funds managed with careful attention to risk management and the highest standards of service delivery. The coming months hold great promise as we tap into an exciting and dynamic new sector and we look forward to working with existing and new investors to continue to grow the fund and maximize returns.”
John Kennedy, founder of Coral Portfolio Limited said: “I am delighted to be bringing Coral Portfolio fully into the wider GSA platform, offering an even greater depth of underwriting expertise, resource and reach into capital markets. Our expanded expertise and capabilities will offer unrivalled access for our investors to unique and rewarding projects in targeted UK and international locations.”
For media enquiries please contact:
Tabitha Aldrich-Smith:
GSA Press Office
+44 (0) 7971 919610
Editor’s notes
Why global student mobility and lack of housing supply is creating global demand for student accommodation and an attractive emerging asset class
- In the ten years from 2000 to 2010 the number of students enrolled in Higher Education (HE) increased by 78 million to 178 million, an average annual growth rate of over 5.5%.
- Universities are capitalising on global demand by opening branch campuses in other markets, offering study and accommodation packages and reducing barriers for overseas students.
- There is a profound imbalance between supply and demand in student accommodation.
- Investors are attracted by the combination of an undersupplied market, high occupancy levels and stable income yields. Student accommodation has shown to be resilient through tough economic conditions, demonstrating consistent rental growth throughout the last 20 years.
- Global transactions in the student accommodation sector have been consistently above US$6 billion since 2012, with over 74,500 beds transacted in the UK alone in 2015 at a total value of over US$8.5 billion.
GSA Group is the first truly global leader in student accommodation. GSA provides communities for higher education students in the best real estate and university markets.
The GSA management team, led by its founder Nicholas Porter, pioneered the purpose built student accommodation industry and asset class in the UK, creating industry standards such as end-user research, university guarantees and partnerships, standard operating processes, space saving room layouts, online bookings, student integration and customer service levels. Previously, Nicholas Porter founded The UNITE Group plc and grew it to become a FTSE 250 company.
The UK asset class attracts global investment and is now estimated to be worth over $30 billion. Counter to recessionary pressures, the UK market is in growth and there are also many other rapidly expanding markets, each underpinned by government policies to increase participation in higher education.
Having built 50,000 study bedrooms, the GSA management team continues to work with long-term partners to take advantage of international student markets. This is achieved through its presence and offices in Dublin, London, Germany, Dubai, Hong Kong, Tokyo and Australia.
About Coral Portfolio
Coral Portfolio offers investors the opportunity to participate in the growing Student Accommodation sector via a platform of transparent, regulated funds managed with careful attention to risk management and the highest standards of service delivery.
Coral Portfolio was established as a brand in 2008 by a group of experienced industry professionals. It provides a platform of monthly traded, transparent regulated Funds, which have provided consistently positive returns for their investors.
John Kennedy founded the Coral Portfolio fund platform in 2008. The Coral Funds are EU domiciled and regulated in Luxembourg. The fund's first offering, the Coral Student Portfolio, launched in March 2009. It has been built on over a decade’s experience in this now established investment sector.
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