Mansion Student Accommodation Fund
The objective of the Fund is to provide investors with exposure to the UK private student accommodation market.
Historically, this market has expanded owing to the shortage of housing for students combined with the increase in student numbers.
The Fund will therefore acquire and hold a portfolio of leasehold properties nationwide, and will manage these assets for optimum return.
Investment Objectives
- Aims to provide investors with exposure to the UK private student accommodation market
- Aims to acquire and hold a portfolio of freehold or long leasehold properties nationwide and manage these assets for optimum return
- Aims to target capital growth through careful acquisition and management of suitable properties
- Aims to achieve a target IRR of 10-12% per annum before tax
Investment Strategy
- To purchase halls of resdience in the UK's top 30 (by student population) towns and cities which are subdivided into studios or cluster flats with communal kitchen, lounge and bathroom facilities.
- Let out predominantly to post 1st year students
- Aim to achieve capital gains by focussing on selective sites where a combination of location, supply versus demand imbalances and rental potential is greatest
- Acquire property at a 10% discount to external, independent valuations
- Acquire the freehold interest or long (125 year) leasehold interests of properties. Alternatively, acquire the long leasehold interest in individual cluster flats or studios within purpose buit accommodation
- As a result of the acquisition of such assets at a discount to the market value, the Fund should enjoy a positive impact on its NAV.
- Properties bought by the fund will receive a five-year rental undertaking from Mansion Capital Partners
- The Fund will receive a five-year refurbishment bond requiring Mansion Capital Partners Ltd to undertake such works as are necessary to upgrade the accommodation to a modern standard
As a result of the rental undertaking from Mansion Capital Partners Limited, the refurbishment bond, and the management by Mansion Property Management Limited, the income risks faced by the Fund are mitigated in three key areas, rental income, rental growth and capital expenditure.
Minimum investment: GBP10,000/USD10,000/EUR10,000
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