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。
The project participated by Centaline is successfully completed.
Located in Chania, the most beautiful city on Crete island, Greece, it is close to hotels and restaurants in the Maleme tourist area, and is only a few steps away from Maleme beach.
The project is designed with modern and minimal architecture style, blending high quality construction materials with Mediterranean decoration and colors. The properties are built to meet the demand of living on the seaside.
The project consists of two-bedroom apartments and semi-detached three-bedroom villas, all with spacious balconies and gardens with sea-view. Facilities also include 3 jacuzzi, security gates and landscaped garden.
The project is designed to operate as hotel apartments,offering 24-hours reception and concierge services, daily property maintenance and cleaning of the communal areas, and security .
Centaline US Student Housing Fund I 2019 Fourth Quarter Report
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.
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.
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.
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.
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.
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.
Delegated website set up to provide the most updated information on COVID-19.
Residents will also receive all updates via emails and messaging.
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.
Communities Open for Residents
Our properties are opened for residents ONLY
No visitor is allowed to reduce social interaction.
Sanitation and Disinfection
More frequent cleaning and sanitation of the property
Temporary closure of clubhouse, gym and common areas
New arrangement for Pre-lease
Facetime Virtual tour is arranged for potential residents.
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.
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%.
With the joint efforts of the Centraline and the management team, The Estates on San Antonio has maintained a high occupancy rate since the acquisition. As of February 20th, 2020, the current occupancy rate of The Estates on San Antonio 2019/20 school term is 95%.
Currently, the pre-leasing rate for the 2020/21 school enters its growth phase, and more than 12 beds are booked for two consecutive weeks. As of February 10th, The Estates on San Antonio pre-leasing performance continued to be in the top bracket, reaching 40%, which was about 6% better than the market average. The average pre-lease rent is currently US$667, which is only US$14 less than the annual budget target of US$681.
The market analysis report shows that as of February 6th, 2020, The Estates on San Antonio pre-lease rate reached 36.1%, ahead of the market average of 30.6%, and ranked third in the market. The growth of pre-leasing is expected to continue in the coming months.
The outstanding lease performance of The Estates on San Antonio is partly thanks to the completion of the renovation project on schedule. In order to enhance the attractiveness of the apartment, the management and renovation company stepped up their efforts and completed the renovation works of the clubhouse and fitness room before Christmas. The new study space and game room are well received by the tenants.
With the completion of the renovation project, the management immediately uploaded the updates and pictures to Instagram and Facebook, as well as the official website. As it is now the rental growth period, the publicity efforts will accelerate the project to reach the expected pre-lease rate and the target rent.
The management company not only introduced first-rate rental agencies but also held a series of promotional activities during the university student apartment fair, and received a lot of positive feedback. There has been a surge in the number of visitors to the apartment as a result.
The current occupancy rate for the Eclipse on Broad 2019/20 school term is 98%. As of February 20th, 2020, the pre-lease rate for the 2020/21 school term reached 91% while the pre-lease rate for the same period last year was 72%. Due to the continued demand of the local student apartment market and the effective management of the management team, the rental rate has increased significantly since the acquisition. We expect to reach 100% full occupancy in the coming weeks.
Eclipse on Broad’s pre-leasing performance continues to be among the best, leading the market by an average of about 13 percent. Currently, the average pre-lease rent is US$807.63, and the average rent is expected to achieve an increase of more than 6%.
Eclipse on Broad continues to benefit from the shortage of student apartments and has a strong rental performance. In order to further enhance and give grounds for rent increase, we plan to upgrade the apartment’s network speed to 500Mb. According to market research, Internet / WiFi speed is the primary consideration when students rent apartments, even more important than indoor washing machines. The upgrade will certainly help increase the competitiveness of Eclipse on Board in the vicinity.
The management company has also launched a social media campaign promotion. The effect is immediate and during the week of the campaign, there are extra bookings of 8 beds, equivalent to 6.25% increase.