One of our best performing funds within our portfolios is the Coral Student Portfolio.
The Coral Student Portfolio is a managed liquidity fund which targets sustainable returns of 8-10% per annual net. It’s the most diversified student accommodation portfolio in the sector and provides a valuable benefit package for all its investors. Coral offers the first fund-of-funds in this dynamic and ever growing asset class. Investors are provided with access to funds generally only available within an intuition.
Fund Managers John Kennedy and Lawrence Frampton confirm that
“A key element of our Fund’s investment strategy is to target locations offering the best value over a period of time. Their structure lends flexibility in selecting the best opportunities in this popular asset class. This market is maturing and investors focus must be on location and operator pedigree with an emphasis on top-tier universities.”
The most recent entrants to student accommodation include:
- GIC – Singapore Sovereign Wealth Fund joint £330m
- Gingko Tree Investment – Chinese government fund £550m
- Prudential – Leading UK insurance company £266m
- Aviva – Leading UK insurance company £186m
- Carlyle – Major US private equity firm £125m
These companies have smartly noticed these basic fundamentals:
- Typically high occupancies 97%+
- Low defaults <1%
- Growing rental incomes and capital values, typically +7%
- Massive undersupply, overall 80%
What Does This Mean For Investors?
The same investment benefits that these major firms are seeking are available to individual investors.
Coral’s Student Portfolio makes this possible with:
- Managed and topical liquidity
- Carefully targeted and selected investments
- Luxembourg based, institutional-quality regulation
- Access via most leading portfolio bonds from GBP5000
The US student market is a prime opportunity for Coral, it presents a mature market with similar strong fundamentals to the UK. It attracts more overseas international student than any other country and has a familiar bed space demand imbalance. The US also has the largest domestic student numbers at just over 19m. These totals are predicted to increase by over 20% to 2019, and so offer a growing market and similar yield opportunities to the UK. Coral also benefits from the vast resource and due diligence offered by the global reach of CBRE with their US offices involved in over 40% of private student accommodation transactions alone.
Fund Objectives
The Coral Portfolio as a unique strategy offering investors.
- Exposure to an asset class with demonstrably strong fundamentals – low bad debts, supply & demand imbalance, high occupancy levels
- Access to a diverse range of student accommodation funds, generally only available within an institution.
- A secure EU regulated Fund in Luxembourg with Apex external administrators and RBS Global Banking as Custodians
- A distinct and topical liquidity strategy currently maintaining an average of 20% cash
- Advised by FSA regulated student accommodation specialist.
Fund Advisers Europe
Rue de Contamines 35
1206 Geneva
022 347 00 52
www.fundadvisers.eu
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Author Bio
David Cooper is a Director of Fund Advisers Europe, a Financial Services company offering a broad range of Investment and Insurance Services to clients across Europe and Latin America. The majority of David’s early experience was gained by working for Lloyds Bank in the United Kingdom. David now has over 20 years' experience growing wealth management brokerages throughout Europe, the Caribbean and Latin America. The primary objective of his role at Fund Advisers is the creation of growth in Fund Advisers’ Wealth Management & Discretionary Fund Management division. David lives in Geneva with his family.
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