Overall there is a compelling argument for this investment, a shortfall in accommodation, a growing student population, focused area of investment and ability to convert accommodation to other usage in the future.
We recently reviewed the GCP Infrastructure Fund. In discussions with the manager we felt that they offer investors a cautious approach to investing with a sustainable long term income stream
We were recently invited to an update on the GCP Student Living PLC which is a Real Estate Investment Trust. The Trust specialises in investing in student accommodation and with the collapse of the Brandeaux Student Accommodation Fund it was interesting to see how this might offer an alternative option for investors and how safe it might be.
The Trust was introduced to the market last year and currently holds two properties. The managers are looking to expand this out. The focus is on high quality student accommodation in London and the South East with a target income yield of 5.5% and a total return of 8 – 10% p.a.
Where this Trust is different is that it targets purpose built accommodation so there are no development risks, and it is focused on areas where the oversea student population is large.
In a volatile investment markets likely to deliver lower returns this Trust could offer investors an alternative option alongside other investments.