The Mansion Group
The Mansion Student Accommodation Fund was listed on the Channel Island Stock Exchange (CISX) on 11 December 2009 with its first property purchase of St. Andrews Gardens in Liverpool, completed on 24 December 2009. The purchase was supported by equity raised through IFAs and debt funding from Barclays, who has supported The Mansion Group on all of its acquisitions to date.
The recently acquired St. Andrews Gardens property, valued independently, represents a net initial yield of 7.0%. In line with the investment objectives of the Fund the property has been secured at a discount to market value. The property is a purpose built student hall of residence with 421 beds across 96 flats. The Fund has secured a five year rental undertaking and refurbishment commitment from The Mansion Group.
The property within the Fund is to be managed by Mansion Property Management Limited (MPM). MPM currently manages a total of eight sites across the UK comprising 1,300 beds on behalf of a range of investors and Funds.
The Fund launched with an initial share price of 100p, following its first property acquisition the Fund Net Asset Value is reported at 110p.
The aim of the Fund is to acquire and manage a portfolio of leasehold properties in the UK's top 30 towns and cities, by student population. The Fund invests in existing private halls of residence which are subdivided into cluster flats with a communal kitchen, lounge and bathroom. These are then re-furbished to a high standard before being rented predominantly to post first year students. The Fund has an ongoing target Internal Rate of Return (IRR) of 10-12% per annum.
The Fund will reinvest surplus rental income, after allowances for costs, in further properties and is therefore most suitable for investors seeking capital growth rather than income.
Mark Stubbs, business development director at The Mansion Group, says: “When we were first considering student accommodation we were immediately struck by the investment potential. As an asset class it is possibly best placed to endure the economic downturn affecting other property classes such as retail and commercial, largely because of the ever-increasing numbers of students heading into higher education, both from at home and abroad. In the last year alone, student numbers have grown by 12%, creating an increasing demand for accommodation which the market is struggling to supply. According to a Savills market report, the UK market for private student accommodation was worth an estimated £6.6bn in 2007 and was projected to grow to over £20bn by 2015.
“For investors, student accommodation offers the attractive fundamentals of continual supply and demand coupled with healthy rental growth and the Mansion Student Accommodation Fund is the ideal way to access this increasingly popular asset class.”
The Fund is currently reviewing several potential property acquisitions opportunities in London, Oxford and Glasgow for quarter one of 2010. Barclays has offered its support on future acquisitions into the fund, subject to the formal submission of these properties to their credit sanction process. Carl Lockett, property relationship director, Barclays, said: “We are delighted to continue to provide funding for this business and the acquisition of the St Andrews Gardens asset in Liverpool demonstrates the partnership approach which Barclays has adopted in providing this type of funding solution. The student accommodation sector remains an attractive asset class for us and we look forward to supporting the Mansion Group and Mansion Student Accommodation Fund with their growth aspirations going forward.”
ENDS
For more information:
Broadgate Mainland - Public Relations
Zoe Butt 020 7726 0528
Melanie Bradley 020 7726 0509
The Mansion Group
Mark Stubbs 07836 658 833 – mark.stubbs@
Adam Davis 07979 696 479 – adam.davis@themansiongroup.co.uk
Editor’s notes:
The Mansion Group
The Mansion Group is a property specialist focusing on the highly resilient student accommodation sector throughout the UK. The company has been a specialist in student accommodation since 2007. The Mansion Group has a simple business model, acquiring, developing and managing student accommodation.
The Mansion Group prides itself on being able to face in two directions; managing relationships with both students and investors.
Students living in The Mansion Group’s accommodation are British or foreign, undergraduate or postgraduate. The investors are individuals or institutions who buy single units or shares in an open-ended fund for which the company acts as property adviser. By offering students safe, high-quality places to live and work, and crafting stable, attractive returns for investors The Mansion Group is able to meet both sets of needs.
Investment Objectives and Strategy
The aim of The Mansion Student Accommodation Fund is to:
• provide investors with exposure to the UK private student accommodation market;
• acquire and hold a portfolio of leasehold properties nationwide, and manage these assets for optimum return;
• purchase existing purpose built halls of residence in top 30 towns and cities (by student population) at a 10% discount to external, independent valuations.
Fund Facts
Base Currency
Sterling (GDP) but with the ability to submit investment in Dollars or Euros which will be converted to Sterling at the investors cost and prevailing markets rates both on entry and exit.
Who can invest?
• Direct investors
• Offshore bonds
• SIPPs/ SSASs
• ISAs
• Charities
• Companies
• Trusts
Minimum Subscription
£10,000 with a £3,000 minimum additional subscriptions
Listed on the CISX
Dealing and Valuation Frequency
Monthly
Dealing day and Valuation point
Last business day of the month
Charges
Initial charge – up to 5% of the original investment
AMC – 1.5% of NAV paid monthly in arrears
Share Valuations
• Valued monthly
• Valuation point is on the last business day of the month
• Share price to be announced on the 10th of the following month
Fund Details
• Principal Manager – PSG Fund Management (CI) Ltd.
• Promoter – Dartmoor Capital Management Limited
• Custodian – BNP Paribas Trust Company (Guernsey) Limited
• Administrator – PSG Active Fund Services Limited
• Investment Adviser – Dartmoor Capital Management Limited
• Property Adviser – Mansion Capital Partners Limited
• Property Manager – Mansion Property Management Limited
• Distributor – Dartmoor Capital Management Limited
• Auditors – PriceWaterhouseCoopers (CI) LLP
• Tax Advisers – PriceWaterhouseCoopers (CI) LLP
• Legal Advisers – AO Hall Advocates
IMPORTANT DISCLAIMER
Past performance is not a reliable indicator of future results. This publication is for private circulation and information purposes only and does not constitute a personal recommendation or investment advice or an offer to buy/sell or an invitation to buy/sell securities in any fund (“Fund”) referred to. The information and any opinions have been obtained from or are based on sources believed to be reliable but accuracy cannot be guaranteed. No responsibility can be accepted for any consequential loss arising from the use of this information. The information is expressed at its date and is issued only to and directed only at those individuals who are permitted to receive such information in accordance with Guernsey laws and regulations. In some countries the distribution of this publication may be restricted: it is your responsibility to find out what those restrictions are and observe them. Dartmoor Capital Management Limited cannot be liable for a breach of such restrictions. Please always refer to the Fund’s prospectus. PSG Fund Management (CI) Limited is licensed by the Guernsey Financial Services Commission
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