Real estate transaction to provide accommodation to students of Cardiff University, UK.
Read full prospectus
The initial capital requirement to test/refine the strategy is GBP 2,300,000 to buy and up grade an existing portfolio of 5 properties (33 rooms) already let to students.
Test us with GBP 2.3m, you will be impressed by our superior return on capital deployed. You can then invest more as this strategy is scalable to GBP 150 million. You can invest the entire GBP 2.3m or part thereof and own the equivalent equity.
Of the GBP 2,300,000 for the test transaction, GBP1,745,000 is to purchase the 5 properties.
Of the GBP 2,300,000 for the test transaction, GBP 555,000 is for upgrade, refurbishment, development, marketing, creating a standardised brand to be deployed across new acquisitions.
The existing gross rental income from the 5 properties (33 rooms) already let to students is GBP 127,700
Annual rental income per room = GBP 3869
(please see page 28 of the prospectus for details)
After refurbishment rental income per room increases to = GBP 6,000
Gross annual rental income from 5 properties (33 rooms) after refurbishment is GBP 198,000
Students are willing to pay more for better services like high speed internet, more bathrooms/showers, better quality rooms, better common facilities etc.
After the above initial test transaction there is a further pipeline of properties already sourced, available & ready (in different cities around major universities in UK) to acquire for further capital allocation.
Market absorption capability for this strategy --- GBP 150 million.
A standardised brand refined during the above test transaction is deployed across all acquired properties.
The entire portfolio is packaged as a fund for listing on a public exchange or private placement.
Timing & Execution
The above test transaction of 5 properties (33 rooms) should be executed right now because the refurbishment of the properties can only be carried out in the 3 months summer holidays (Jun, Jul, Aug) when students are away.
We have a team available & ready for deployment to refurbish & upgrade the properties during Jun Jul Aug 2017.
Why Cardiff University for test transaction?
Cardiff University is investing GBP 300 million to build research & development facilities and attract students from around the world particularly Asia / China.
The number of students at Cardiff University is projected to grow 4% per year over the next few years.
UK government is actively promoting the existing excellent UK education brand world-wide to attract foreign students, especially in Asia.
This is partly to counter the negative affect of UK leaving the EU. Hence UK government policy is to reduce low skilled immigration from EU but to increase high skilled & student immigration from the rest of the world particularly Asia. Capital allocation to UK real estate must be done accordingly to generate excellent return on capital deployed. Hence allocate capital to UK university student accommodation, it generates excellent return on capital deployed.
The existing accommodation around Cardiff University is not enough. There is a shortage of accommodation and students are subscribing to waiting lists months in advance, and still cant find accommodation.
The local city council does not want to issue more licences for houses in multiple occupancy particularly for students because students are exempt from paying local authority council tax yet cost a lot in council services provided.
In essence this is an excellent transaction --- low risk, low return worth the capital allocation
Please contact me or Naveed Nasar at firstname.lastname@example.org to find out more.
For background my CV can be viewed on https://drive.google.com/file/d/0BzpKglHPOv2SZ2pJc213aHFVc2c/view?usp=sharing
For Naveed Nasar's background please see under list of senior advisors at http://www.stjadvisors.com/team/
M: +44 7412 970 366
E (Professional): email@example.com
E (Personal): firstname.lastname@example.org