February 2015

According to new research from global property advisor CBRE, figures show that £2.37 billion was invested into the sector in 2014, surpassing 2013’s total of £2.2 billion.

The profile of investors in student housing shifted in 2014, with institutional investors, such as La Salle, Henderson, Blackrock and Pramerica, purchasing single assets of between £12 million and £60 million.

These institutional investors are buying into a trend set by companies like Portergate which are appealing to both individual buyers – particularly from overseas – and institutions such as pension funds.

“As the market has matured,” says Portergate Property Management chairman Anthony Jackson, “more traditional City players will invest in student accommodation. It will come to be seen as mainstream.

“We have been ahead of this game for some time now as our investors have seen. For a company like Portergate, it is essential we stay one step ahead of the mainstream so that we can capitalise on future investment trends.”

His comments are echoed by Jo Winchester, Head of Student Housing Advisory at CBRE, who said in the report: “Institutional investors, who previously would only consider long leased product or indirect investment, have made a number of purchases of direct let, directly owned assets.

“This is a dramatic shift from 2012, when the direct let institutional investor hardly registered in the market.

“Now, with such a varied list of investors interested in this sector, UK student housing is arguably the most advanced of “alternative” assets, offering investors an “easy to understand” opportunity.”

The most recent UCAS figures show the highest ever intake of new undergraduates for the academic year 2014/15.

This type of continuous, stable demand for higher education in the UK has led to student accommodation becoming a reliably performing asset class. With a number of portfolio deals currently available, 2015 promises to be another big year for investment.

Total investment in UK student accommodation – which includes Portergate Property Management’s successful Riverside House scheme in Salford – has broken the £2 billion mark for a third consecutive year.

According to new research from global property advisor CBRE, figures show that £2.37 billion was invested into the sector in 2014, surpassing 2013’s total of £2.2 billion.

The profile of investors in student housing shifted in 2014, with institutional investors, such as La Salle, Henderson, Blackrock and Pramerica, purchasing single assets of between £12 million and £60 million.

These institutional investors are buying into a trend set by companies like Portergate which are appealing to both individual buyers – particularly from overseas – and institutions such as pension funds.

“As the market has matured,” says Portergate Property Management chairman Anthony Jackson, “more traditional City players will invest in student accommodation. It will come to be seen as mainstream.

“We have been ahead of this game for some time now as our investors have seen. For a company like Portergate, it is essential we stay one step ahead of the mainstream so that we can capitalise on future investment trends.”

His comments are echoed by Jo Winchester, Head of Student Housing Advisory at CBRE, who said in the report: “Institutional investors, who previously would only consider long leased product or indirect investment, have made a number of purchases of direct let, directly owned assets.

“This is a dramatic shift from 2012, when the direct let institutional investor hardly registered in the market generic xenical.
“Now, with such a varied list of investors interested in this sector, UK student housing is arguably the most advanced of “alternative” assets, offering investors an “easy to understand” opportunity.”

The most recent UCAS figures show the highest ever intake of new undergraduates for the academic year 2014/15.

This type of continuous, stable demand for higher education in the UK has led to student accommodation becoming a reliably performing asset class. With a number of portfolio deals currently available, 2015 promises to be another big year for investment.

Anthony Jackson, chairman of Portergate, looks at the year ahead for the city of Preston

The bulldozers are moving onto Friargate and soon people will see building work beginning to transform a long run down part of Preston city centre.

Our £18 million redevelopment near the University of Central Lancashire (UCLan) is the biggest construction project currently underway in the city.

As well as creating much-needed jobs in the industry, at the height of the building project – which is being overseen by local construction company Eric Wright – around 200 workers will be employed on site. And we are hopeful it will act to kick-start the long awaited regeneration of this important area of Preston.

The opportunity is there. And across Lancashire private investment is again starting to make its mark. As we slowly emerge from the dark days of the recession developers are looking to build again buy viagra usa.

The fact the cranes are appearing on the county’s skylines is good news. The infrastructure improvements being in the city centre and the private investment that has seen the Guild Hall taken into private ownership are all good news.

I also welcome the commitment being shown by the Lancashire County Pension Fund to back Preston infrastructure projects, as this will help to attract other external funders for future development and
regeneration.

UCLan is playing a growing role in the economy of the city and is committed to improving the links between the university campus and the city centre.

I expect to see more imaginative development around Friargate and Corporation Street in the coming year.

The transformation of the strategic 1.5 acre site we are developing will lead the way, bringing new retail premises onto Friargate and a 253-room building providing boutique hotel-style accommodation to university students.

Part of that high-quality accommodation is also aimed at postgraduate students as well as apprentices and key workers in Preston’s high-tech manufacturing sector and the new Enterprise Zone.

Preston is a city that welcomes more than 2,000 international students each year, representing more than 100 nationalities. Investment also comes from overseas, particularly China and the Far East.

The student accommodation sector is seeing continuing growth and is a real property success story in the UK. We believe it will grow even stronger in 2015.

Our business model has also received a terrific response from overseas investors. They see the UK as a solid and strong place in which to invest their money.