Why student accommodation investments add up
Student property sales are set to break £2 billion in 2013, with overseas parties investing heavily, according to a report carried in the influential Estates Gazette.
It is the latest in a series of upbeat assessments of the sector, highlighted by the growing interest North West student accommodation provider Portergate is seeing in its portfolio.
Throughout the past 12 months a series of studies and reports have revealed that investing in quality student accommodation is becoming an increasingly popular choice.
Earlier this year top property expert Knight Frank released its forecast for the UK’s student accommodation sector. It predicted a 9.2% average blended investment return over the next 12 months.
Fellow property expert Savills also forecast growth. It said the student housing market has “proven a resilient and stable investment” during the downturn.
Its experts also highlighted the growing importance of overseas students, particularly from Asia, whose numbers have grown on average 8.5% over the last six years.
Portergate has sold 200 rooms in the 242-hotel-class hall of residence Riverside House, which opened its doors to students in September, in a purpose-built accommodation building on the River Irwell close to the University of Salford and to Manchester city centre.
The company has new student accommodation projects in the North West worth more than £20 million and has more than 500 en-suite bedrooms built, on site or with planning permission.
It continues to attract major interest from overseas investment with its boutique student living concept and has performed extremely well at investment trade shows in China.
Company chairman Anthony Jackson says: “We have sold a lot of rooms at Riverside House to overseas investors who see the enormous potential in the UK student investment market.
“With the economy growing in the UK we are now also seeing interest from individuals and groups looking for a guaranteed, high return for their money, especially when compared with traditional High Street saving rates.”
Portergate was one of the star exhibitors at the Overseas Property Investment Show in Shanghai in September, a major international event attracting 130,000 visitors and featuring hundreds of specialist exhibitors from 30 nations across the globe.
Anthony Jackson adds: “As the latest report highlights, the student accommodation sector is seeing continuing growth and is a real property success story in the UK.
“Overseas investors see the UK as a solid and strong place in which to invest their money and are excited by our plans and growing portfolio of developments.”
Riverside House is within walking distance of the University of Salford, which each year attracts more than 3,000 international students from more than 100 nations around the globe.
The company also has planning permission for a £18 million project in Preston, Lancashire, close to the city’s University of Central Lancashire campus.
For further information on Portergate, investment opportunities or to reserve accommodation, please call +44 (0) 844 245 2688 or visit www.portergatepropertymanagement.com