Investing in Purpose-Built Student Accommodation (PBSA)

A unique opportunity. An unrivalled way to access.

Purpose-Built Student Accommodation is the UK’s fastest-growing property sector, offering high yields in a low interest environment, and with demonstrated stability through economic cycles. Now, investors can access it like never before.

Why invest with us?

No longer will investors need to invest into an opaque and expensive fund, or buy an individual student room within a block – which no industry insider would ever consider.

Some well-networked investors were already trying to find a solution, clubbing together to buy blocks of PBSA, allowing them to combine their purchasing power to access larger investments, better terms and have greater freedom to diversify.

Our solution provides all of this, and more, making investing in PBSA easier and safer than ever:

  • Security: Invest through an established, award-winning, FCA authorised and regulated trading platform.
  • Diversification: Diversify easily across multiple university cities and reduce your risk.
  • Expertise: Access PBSA opportunities hand-picked by our world-class property team, whose credentials include setting up the prestigious student accommodation team at Savills.
  • Hassle free: We allow you to invest in PBSA without the hassle of solicitors, maintenance, negotiations and finding investment partners.
  • Liquidity: Offer your PBSA investment for sale at any time on our Resale market. Time to sell is currently 3.1 days.*

As with all of our investments rental income qualifies for the £5,000 annual dividend allowance (£2,000 from 6th April 2018) and capital returns can be realised via our Resale market, allowing investors to make use of their £11,300 annual capital gains allowance.

We are transforming the way people invest in student accommodation.

How is it structured?

PBSA investments are structured as a separate special purpose vehicle (SPV) in the same way as all property investments on the Property Partner platform.

What are the fees?

As with all Property Partner investments, a one-off 2% fee on investment will apply to newly listed PBSA, and there are no fees to sell.

We are not charging any fees on rental income. We’re working with specialist student operators to manage the properties. Their fees are already factored into forecast yield, with no additional costs from Property Partner. This will replace the 10.5% charge on rent which covers the costs for managing residential property investments.

How is PBSA Valued?

Student Accommodation is valued differently to Residential property. In the UK, residential property is predominantly owner occupied, so it is valued on comparable sold prices in the area. By contrast, Purpose Built Student Accommodation is primarily valued on income, with institutional investors making up the majority of the market.

The value which the asset can be sold for is essentially the price that someone is willing to pay for your income stream. Therefore in this asset class growth in capital value is driven by income growth. However, increasing demand for the asset class can also see prices increase beyond the growth of income, which is referred to as yield compression. This has happened in student accommodation in recent years with two-thirds capital growth coming from market sentiment based demand and one-third underlying rental value growth.

Is there risk?

PBSA offers reliable income, and has demonstrated its stability as an asset class throughout economic cycles. However, as with any investment, there are risks to consider. Click here to find out what potential risks there are, and why we’re comfortable with them.

*Property Partner ‘time to sell’ is calculated as a weighted average of the time it takes to sell shares at or below the 30 day weighted average share price.

Capital at risk. The value of your investment can go down as well as up. The Financial Services Compensation Scheme (FSCS) protects the cash held in your Property Partner account, however the investments that you make through Property Partner are not protected by the FSCS in the event that you do not receive back the amount that you have invested. Forecasts are not a reliable indicator of future performance. Gross rent, dividends and capital growth may be lower than estimated. 5 yearly exit protection or exit on platform subject to price & demand. Property Partner does not provide tax or investment advice and any general information is provided to help you make your own informed decisions. Customers are advised to obtain appropriate tax or investment advice where necessary. Financial promotion by London House Exchange Limited (8820870); authorised and regulated by the Financial Conduct Authority (No. 613499).