Acquisition of Champions Club Student Housing in Arkansas

2025-04-29

Centaline Investment is pleased to announce its recent acquisition of Champions Club, a premier 232-bed student housing community ideally located within walking distance of the University of Arkansas campus in Fayetteville. This strategic acquisition, valued at approximately USD 25 million, expands Centaline Investment’s portfolio of high-quality student accommodations.

About Champions Club

Constructed in 2016, Champions Club offers University of Arkansas students modern living with exceptional amenities:

  • Spacious bedrooms featuring private bathrooms and walk-in closets
  • Convenient in-unit laundry facilities
  • Resort-style swimming pool
  • 24/7 state-of-the-art fitness center
  • Engaging game lounge and computer lab
  • Outdoor grill and fire pit area
  • Pet-friendly environment complete with a dedicated dog park

Strategic Investment & Future Enhancements

“We are excited to add Champions Club to our portfolio,” stated Kavis Ip, CEO of Centaline Investment. “This acquisition aligns with our commitment to providing quality student housing in vibrant university communities. With the University of Arkansas experiencing enrollment growth, we see tremendous opportunity to enhance the living experience for residents at Champions Club”

Centaline Investment plans significant value-add initiatives, committing approximately USD 1.5 million towards capital improvements. “Our team is committed to elevating Champions Club to new heights,” said Josephine Kong, Chief Investment Officer. “Planned upgrades include enhancements to common areas, technology infrastructure, and the addition of sought-after student amenities to foster a stronger sense of community.”

Market Confidence

This acquisition underscores Centaline Investment’s confidence in the U.S. student housing market, built on nearly a decade of experience in the sector. “We have witnessed the steady growth of tertiary education students and the long-term commitment by global institutional investors.” added Josephine Kong. “We foresee the U.S. student housing market will grow steadily, making this acquisition a strategic move to capitalize on strong market fundamentals.”

She added, “We spotted the trend that people more tend to diversify their investment into various asset classes and currencies with the growing dynamics of the international scene. And student housing is surely one of their picks.”

Centaline Investment Confirms First Student Housing Investment in Hong Kong

2024-09-09

Centaline Investment has confirmed its first student housing project in Hong Kong with the acquisition of the Popway Hotel in Tsim Sha Tsui for HKD 180 million. The company plans to transform the hotel into a student housing project offering approximately 150 beds. An additional HKD 20 million will be invested in renovations to create a modern, comfortable, and secure living environment for students. The facility will feature 24-hour security, high-speed internet, leisure spaces, study areas, and other amenities to meet the needs of student residents. Located just a 3-4 minute walk from the Polytechnic University, this project is positioned as a prime choice for student housing investments due to its ideal location.

Centaline Investment President, Kavis Ip, stated that the company has built a solid track record by investing in student housing in the United States and the United Kingdom. Recognizing the opportunity, they have decided to expand into Hong Kong and are optimistic about the market’s long-term prospects. In addition to its overseas investment experience, Centaline Investment benefits from its parent company, Centaline Group, which owns the largest real estate agency network in Hong Kong, including Centaline Property Agency and Ricacorp Property Agency, providing strong support for student housing rentals. Furthermore, Centaline’s access to extensive, real-time market data helps capture market trends and demands effectively.

Centaline Investment Managing Director, Josephine Kong, highlighted that the student housing market has consistently been a focus for global investors. With the increasing number of non-local students coming to Hong Kong, the demand for student housing continues to rise. This investment not only opens new opportunities for investors but also injects fresh momentum into the development of Hong Kong’s student housing market. Kong expressed that Centaline Investment is eager to leverage its experience in the student housing sector, alongside the support of the group’s research department and agency network, to collaborate with both local and overseas investors in entering the Hong Kong student housing market. Furthermore, Centaline is dedicated to establishing a long-term and sustainable investment market, creating value for all stakeholders involved.

Ip added that this investment marks their first step into the Hong Kong market, with plans to further increase their investments and development in the city. Their goal is to invest in 2,000 to 3,000 beds over the next 2-3 years, positioning Hong Kong as one of the largest student housing investment markets in Asia, and attracting more global funds and capital. They conservatively estimate that the market value of the student housing sector will exceed HKD 45.8 billion in the coming years. Centaline Investment believes that these projects will not only provide quality accommodations for students but also deliver stable returns for investors. With Hong Kong’s student population continuously growing, the demand for student housing will remain strong, offering even more opportunities for investors.

Expanding into Hong Kong’s Student Housing Investment Sector

2024-06-01

Centaline Investment plans to invest in approximately 2,000 student dormitory beds in Hong Kong over the next two to three years. This investment targets the new policy of the Hong Kong government to increase the subsidised UGC-funded quota for non-local students, anticipating a substantial rise in accommodation demand. With the local property market adjusting downwards, Centaline believes this is an opportune time to introduce the plan. Since 2016, Centaline has invested in student housing in the US and the UK, providing substantial returns for investors and hopes to bring this successful overseas experience to Hong Kong. Currently, Centaline has negotiated with several landlords, aiming to implement the plan in the short term.

By the 2027/28 academic year, the number of non-local students is expected to reach 67,800. After accounting for on-campus dormitory quotas, about 50,000 students will need off-campus accommodation. Referencing the infiltration rates in the US and UK, the value of the local student housing market could reach HKD 45.8 billion within five years. Investing in student housing provides stable returns and effectively diversifies risk. Centaline’s investment strategy includes purchasing target properties, refurbishing them, and renting them out as student apartments. Before acquiring a property, market fundamentals, geographical location, student population, and project potential will be considered. Partnerships with other investment institutions are welcomed to initiate this new project.

If you are interested in more details, please email info@centacbi.com or call (852) 2533 3848 to contact our investment advisor .

The Founder of Centaline Group, Shih Wing Ching, highlighted that the shortage of student dormitory beds in Hong Kong, combined with the government’s recent increase in the cap for non-local student admissions to 40% in subsidized higher education institutions, has created a significant demand. In response, Centaline Investment is actively seeking suitable projects to leverage their successful experience in overseas student housing investments.

The Chairlady of Centaline Subsidiaries, Janet Shih, noted that the current property market in Hong Kong is not promising, and advised investors to diversify their portfolios. Investing in real estate funds can help spread risks and reduce the hassle of property management.

The CEO of Centaline Investment, Kavis Yip, stated that the company has student housing projects in both the US and the UK. She highlighted that projects in Texas and Georgia have achieved considerable returns. Yip attributed this success to rigorous property analysis and careful site selection, ensuring the properties have renovation potential and are located near universities.

Josephine Kong, Managing Director of Centaline Investment, noted that the government’s plan to increase the UGC-funded quota for non-local students to 40% will result in about 67,800 non-local students by 2027/28, with around 50,000 needing to rent accommodation. She highlighted that if Hong Kong’s student housing market reaches a similar infiltration rate to the UK and US, its market value could reach HKD 45.8 billion.

(Press briefings) Centaline enters UK Student Housing Market

(In Chinese Only)

2020-05-26

於本月24日中原集團創辦人及主席施永青先生、中原集團子公司董事施慧勤小姐、中原投資管理有限公司總裁葉明慧小姐以及中原投資管理有限公司董事總經理江若雯小姐舉行記者招待會，跟到場各媒體朋友分享房地產投資業務開展消息，以及介紹英國學生公寓這種房地產類別的特性。

施永青表示中原看中學生公寓的穩定性，特別於疫情期間表現仍非常理想。中原投資了的美國學生公寓於疫情最嚴重時出租率仍達95%，收租率亦達95%以上，成績斐然。施永青表示一般家長就算面對經濟困難，花在子女身上的教育經費很少有影響。而全球就讀大學的人數有加無減，變相對學生公寓需求提供龐大支持，這亦確立了學生公寓市場的穩健性。施永青表示這類型投資特別適合高淨值人士，因為他們一般也擁有高風險高回報投資如股票，生意，而投資部分資金到學生公寓有助分散投資，達到資產配置效果。例如碰上突如其來市況，也總有一些投資提供穩健回報。就如中原美國學生公寓的投資，於疫情嚴重時仍能獲得4%租金收益。

葉明慧續解釋投資英國學生公寓原因之一為其長期處於供不應求狀況。英國就讀高等教育人數接近200萬，而全英國大學所提供的宿位只佔大學生人數 16.9%，這使得 83.1% 學生必須於大學附近尋找居所，從而造就一個龐大學生租務市場。這反映在私營學生宿舍的平均出租率長期高達98%。而英國學生公寓投資回報於2020年疫情嚴重期間還達到4.9%，抗跌力可見一斑。  

施慧勤從用家角度為到場嘉賓作切身分享。 她表示自己和身邊很多朋友也於英國留學。 大家的首選一般是大學提供的宿位，因為既便利，又可享受大學氣氛。可惜大學宿位不足，所以他們很多都要在學生附近找地方居住，而他們一般也喜歡租住私人營運的學生公寓，因為一來還是會有大學氣氛，因為大家都是大學生。二來一般也相對自行租屋安全，因為私人營運的學生宿舍很多會提供拍咭安全系統、閉路電視，甚或乎一些比較大型的更有保安人員在場。 這讓入住學生及其家長甚為安心。 另外，由於私營學生宿舍以床位 / 房間為出租單位，學生無需以夾租形式承租，免卻夾租學生突然退租時讓承租學生承擔整份租金的風險。當然這類型宿舍一般不會再額外收取水電煤上網費用，支出有預算，亦避免自行申請以上服務的麻煩。一些具規模的宿舍甚至有閱讀室、遊戲室、健身室等設施，非常受學生歡迎。而由於私營學生宿舍能符合大部分用家需要，所以這些宿舍的出租率經常居高不下。而夾租住宅通常也淪為最後選擇，因為既沒有大學氣氛，沒有為學生而設的設施，同時還要承擔分租失敗風險等等。

江若雯進一步講解倫敦學生公寓市場情況。她表示倫敦是供求失衡最嚴重的城市，雖擁近30萬大學生，大學宿位卻只有44,033，即有85%學生需自己找尋居所。而倫敦很多大學也位於市中心，所以中原會收購的數個學生公寓項目也位處市中心Zone 1地區，10分鐘可步行到 Imperial College，騎單車或坐公共交通15分鐘亦能達 London School of Economics and Political Science (LSE), King`s College等大學。閒餘時步行到海德公園也只需5到7分鐘，各種生活配套也很充足，學生非常喜愛。

總結︰中原希望透過這次記者會讓香港市場了解更多不同投資類別，有助投資者分散風險，進行有效資產配置。

Centaline Investment Webinar Series

(In Chinese Only)

[中原投資網上講座系列]

英國整幢古典住宅投資優勢和策略

2020-08-12

英國物業宣傳近月在香港如雨後春筍，帶倫敦、曼徹斯特，伯明翰……樓盤一個接一個。投資者除咗可以大手買入新樓或者樓花以外，有沒有其他投資選擇呢？

中原投資講座由今個月起會定期跟大家分享英國各類投資型物業，希望大家對英國房地產市場有更多更廣嘅了解。第一彈當然是要介紹一下英國的首都倫敦的投資。 很多人覺得倫敦樓價高，租金回報低，但從長遠投資角度而言，這個備受全球投資者青睞的國際大城市在升值及保值方面依舊是最為穩健。而且眾多市場中，倫敦市房地產交投最為活躍，這也是投資要考慮的重大因素。

今次講座將針對倫敦市中心整幢古典住宅建築的收購及投資作出深入介紹。這些建築物位於倫敦市最受中產及高尚人士歡迎的地區，更是外國專才趨之若鶩的理想居所。

講座內容：

  • 倫敦市中心物業市場概況
  • 整幢古典住宅收購的投資優勢
  • 收購後的投資策略： 收租、翻新、拆售
  • 物業收購流程及相關稅務
  • 個案分析

賺投資上游的錢，才是真正的房地產投資。

講座日期：2020年8月20日
時間︰19:00 – 19:45
報名辦法︰https://www.facebook.com/events/1128741957512725/

Centaline US Student Housing Fund I 2019 Fourth Quarter Report

Centaline US Student Housing Fund I 2019 Fourth Quarter Report

2020-04-10

Centaline US Student Housing Fund has invested in the US student housing market for more than a year and currently holds two student apartment projects – The Estates at San Antonio (San Antonio, Texas) and Eclipse on Broad (Athens, Georgia). In the past year, the project was operating smoothly and renovation works were successfully completed. The pre-leasing work in 2020/21 is also proceeding as planned. The pre-leasing rate and rental growth are in line with the target. The average rent, rental rate and valuations are as well on the up.

From our data and past research analysis, we are confident of the resilience of the student housing in protecting the investment of our clients. Looking forward, we have begun preparations for the launch of the new phase of Centaline US Student Housing Fund so as to help our clients to diversify their portfolio and manage risks in the volatile market.

Covid-19 Impacts on Centaline US Student Housing

Covid-19 Impacts on Centaline US Student Housing

2020-03-26

The two student housing apartments owned and managed by Centaline US Student Fund are located in San Antonio, Texas and Athens, Georgia, where the outbreak of COVID-19 is relatively contained. The local governments have already carried out policies to restrict social interactions and strengthen public hygiene.

Two universities (UTSA and UGA) are situated in the suburbs that are away from densely populated area. Both of them have suspended face-to-face teaching and switched to online learning, which make the virus spread more controllable.

Current Leasing

  • No suspected or confirmed case.
  • Most of the residents choose to stay in our premises.
  • Some choose to move out or stay home but they have to pay rent according to contract requirement.
  • No breach of contract has been recorded due to the outbreak.
  • According to our survey, residents appreciate our high standard of sanitation and disinfection and consider safer to stay than move out.

Pre-leasing

  • Our target tenants are locals so the retreat of international students has limited impact on preleasing.
  • FaceTime virtual tours and full-scale online application have been arranged for AY20-21 preleasing.
  • As for March, Eclipse on Broad has reached 93.8% pre-lease rate with around 6.5% rent growth. The Estates at San Antonio also leads the market with 63.2% pre-lease rate and 1.7% rent growth.

The Future

  • Student Housing outperformed other assets in the last financial crisis. Its strong resilience to recession and stable performance helps us to fight the epidemic impacts on economy.
  • The US Senate has approved a $2 trillion stimulus package to provide a jolt to an economy reeling from the coronavirus pandemic, including direct payment to citizens and deferment of federal student loans. This would help students to pass this difficult time.
  • Reduction of interest rate can further strengthen our cash flow.
  • Student population will not drop drastically because of the epidemic, which keeps the demand for student housing and occupancy rate in good shape.

Updates on Coronavirus Protocols

Updates on Coronavirus Protocols

2020-03-25

The novel coronavirus (COVID-19) spreads across the globe and rapidly affects communities across the USA. During this threat, the comfort and safety of all our student housing residents and staff remain our No. 1 priority. We have been taking several actions to ensure the safety and security of their students, employees, and residents.

Including:

  1. Update Information
    • Delegated website set up to provide the most updated information on COVID-19.
    • Residents will also receive all updates via emails and messaging.
  2. Online Services
    • Management and services are provided mainly by virtual interactions including messaging, email and phone calls.
    • Online rent payment is encouraged by waiving credit card fee
    • On-site office performs only emergency work orders.
  3. Communities Open for Residents
    • Our properties are opened for residents ONLY
    • No visitor is allowed to reduce social interaction.
  4. Sanitation and Disinfection
    • More frequent cleaning and sanitation of the property
    • Temporary closure of clubhouse, gym and common areas
  5. New arrangement for Pre-lease
    • Facetime Virtual tour is arranged for potential residents.
    • All pre-lease procedures are done online.

Recession Resilience of Student Apartments

Recession Resilience of Student Apartments

2020-03-18

With the coronavirus Covid-19 pandemic wreaking havoc around the world and the global financial markets, circuit breakers have been kicked in a few times and investors continue to panic and suffer losses. Governments are adopting aggressive measures to try to curb the virus spreading and the impact is being felt across the economy. Many economists forecast that it is very likely the global economy will slump. Facing uncertainties much greater than normal, what is a safer bet for investors who are looking for investing opportunities during this pandemic?

During economic recessions, it is a common belief that real estate properties would record lower rents and prices. However, many research have found that the “Recession Resilience” of student apartments is very high. During the 2008 Global financial crisis, the rental return of student apartments were very stable and the asset prices did not fluctuate greatly. After the crisis, it attracted many investments from large insurance companies, sovereign funds, pension funds, and so on.

Why did this happen? Research revealed that during economic downturns, redundant or unemployed workers chose to further their study in order to improve their job prospects. Governments also incentivised students to delay their graduation to reduce unemployment rates. It was therefore logical that the rent of student apartments increased against the market trend with more college students studying and in need of accommodation.

According to Green Street Advisors, the industry leader in REIT research, as long as GDP falls by 1%, the asset value of properties, such as shopping malls, offices and hotels, would fall by 3% -14%, and rents by 0.5 -1.5%. However, the rent of student apartments is contrariant to this trend. In the past 12 years (including the period of 2008 Global financial crisis), the rent of student apartments has been steadily increasing (2-5%).

Therefore, targeting the right sector and through astute selections of projects, it is still possible to find stable investment opportunities in student apartments during crises.

Successful UK Properties Acquisition

Successful UK Properties Acquisition

Centaline Investment Advisory has successfully represented a client to acquire two properties in Inner London. Both properties are Victorian style constructions in prime neighbourhoods. On behalf of the client, Centaline negotiated with the seller and arranged professional services, such as legal and surveyor services, to conduct legal, financial and structural due diligence. After closing the deals, Centaline helped the client to sign new leases with the tenants and purchase building insurances. In addition, Centaline managed to secure tax exemptions and save more than £1,100,000 stamp duty for the client.

Cenaline Investment Management has been appointed as the asset manager of these two properties and will be responsible for appointing local management company to carry out daily operations, including tenant management, property maintenance and reporting. Furthermore, Cenaline will provide renovation advice to the owner about future upgrades in order to add value to the properties and increase returns.

The housing market of London began to pick up in mid-2019, with rents showing positive growth for 13 consecutive months and an average rent increase of 1.2% in 2019. Knight Frank forecasts that starting from 2020, there will be a growth of the UK residential market at a rate of 1-5% in the next 5 years and the rent growth for the same period is 2%.