7th October 2014
UK Student Property Investment Provides Gross Rental Yield of 10% per Annum
Asia Bankers Club launches investment exhibition for Shillings Yard Student Accommodation
Investments in student property in the United Kingdom has ballooned from a fringe investment 10 years ago to a global market worth USD200 billion today. This is due to the significant rise in the number of local and international students, with quantities increasing by approximately 70 – 80 percent each year. This growth has created a demand for student housing, and has left universities with an under supply of suitable accommodation.
This demand has caused a steady increase in yields, and CBRE data shows that student housing is outperforming other asset classes by some margin, delivering 9.6% total returns in recent years. The high yields have attracted private and institutional investors to invest in student property, hence driving up the demand for further development of such projects. This appetite is evidenced by the recent acquisition of Cordea Savills’ student accommodation portfolio by Britain’s Unite Group for £137 million.
The Asia Bankers Club has partnered with Hill & Standard Developments to introduce the Shillings Yard student housing project to investors in Hong Kong. The developer is seasoned in developments of student housing projects and understands the market needs. Shillings Yard is based in Canterbury, Kent and will cater to students studying in the neighboring universities such as University of Kent and Canterbury Christ Church University. Canterbury is a city with growth and capital appreciation potential that are higher than its prime counterparts such as London, Cambridge, and Oxford.
Kingston Lai, CEO of Asia Bankers Club announced that “We are launching the first phase of Shillings Yard in Hong Kong and only 50 units will be available for sale. Due to the popularity and demand of this investment offering, the developer is allocating a limited quantity of units for sale in each market. We expect to sell at least 80% of Phase I in our upcoming exhibition.”
The Hong Kong exhibition for Shillings Yard will be open to the public and is scheduled to take place on 11 – 12 October at The Park Lane Hotel, 310 Gloucester Road, Causeway Bay, with investment presentations on both days at 12pm, 2pm, 3.30pm, and 5pm.
Additionally, the Asia Bankers Club is partnering with The Experience Company and Study London to host a UK Education trip with visits to key London and Canterbury universities, and with an introduction to the Shillings Yard project.
About Asia Bankers Club
The Asia Bankers Club is an investment club for banking and finance professionals in Asia. With a vast member base, the Asia Bankers Club organizes events for its members and provides physical assets for investments, such as properties, fine wines, art, timepieces, and collectables. Our members are from top tier investment, private and consumer banks, asset management companies, private equity firms, hedge funds, and sovereign wealth funds primarily located in key financial centres.
About Hill & Standard
Hill & Standard Developments is privately owned and financed allowing for a dynamic, entrepreneurial atmosphere and unhindered third party funding. The company was formed in 2004 with offices in Europe and the Middle East. It quickly expanded to India, the US and the Far East (Malaysia, China). The reputation and capability of the group was borne out of robust returns and high quality products and services.
Hill & Standard Developments has three core business divisions, with Global Property accounting for 75% of the group’s activity, Private Equity 15% and Wealth Management 10%. Wealth Management was solidified as a core business division in late 2009, as the demand was apparent and the Board felt the internal level of knowledge and expertise, particularly in the GCC region warranted such a division being formally established.
About Shillings Yard
- Located in Canterbury, Kent which is one of the top education cities in the UK
- Walking distance to University of Kent and Christ Church University
- Priced from £107,000 (around HK$ 1,340,000) – Phase 1
- £500 psf / HK$ 6,200 psf
- Freehold title to each individual unit
- Completion Q4 2015
- Developer financing of 50% is available for foreigners
- Complete flexibility as to end use – individual units may be purchased for owner/ family occupation or rented to students
- *Owners wishing to rent their units may appoint their own letting agent to enjoy market rent or engage developer’s property manager for a fixed 10% gross return before management fees and repairs, maintenance and other expenses arising from individual units. Option to engage the developer’s property manager is provided on a flexible manner with option to change during the 5 year term