Mansion Student Accommodation Fund

Background to the Funds

Since 2007, market research by Drivers Jonas, King Sturge, Savills and Knight Frank in particular have highlighted the current size and past and expected growth of the UK market for private student accommodation. According to these sources:

• Higher education student numbers grew by 10.1% between August 2008 and August 2009
• On present trends, there will be over 3 million students in the UK by 2014 foreign student numbers increased by 13.6% between academic year ending August 2008 and August 2009
• Post-graduate student numbers now account for 24% of the total student population and are expected to continue to grow

The same sources point out that more than 50% of students currently live in Houses of Multiple Occupation (“HMO”) i.e. private, rented buildings not designed for this purpose. This figure varies from 50% in locations such as Manchester to over 80% in Plymouth. In 2007 the introduction by the government of a license requirement for HMOs added to the administrative burden of HMO owners.
With only 130,000 purpose-built beds being created between 1995 and 2008/9, there is an imbalance of supply to demand.

Presence in India & China

Mansion is very keen to provide properties to students from abroad and, to this end, an office has been opened in India to market the properties to overseas students. Based on the immediate success of this, an office in China is now planned.

Why invest with Mansion?

• Mansion concentrate on second and third year students only, which offers a much larger student base as potential tenants
• Mansion refurbish existing properties to a very high standard
• Rated Low to Medium Risk
• AUM approximately £90 million as at the end of September 2010
• Mansion Group can sell individual apartments
• 10% of the Fund is held in cash
• Acquisitions backed primarily by Barclays
• Target return of 10-12% p.a. plus
• 7.5% p.a. penalty free withdrawal facility available after being invested for 12 months
• Fund listed on the C.I. Stock Exchange

Please contact us for further information and Terms of Business.