Student Housing Asset Class - Real Asset …...Note: Selected cities; Full-time & part-time students, except for Berlin(full-time only)& Copenhagen (doctoral students not included).Mobile

Student Housing Asset Class

Samuel Vetrak, CEO, StudentMarketing

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WWW.STUDENTHOUSINGASSETCLASS.COM STUDENTMARKTNG /COMPANY/STUDENTMARKETING

ABOUT US

• Global data inventory

• Independent & unbiased data

• Secondary & primary research

• Mobile units collecting street-level data

• Over 100 cities, 1,000,000 beds, 5,000 PBSAs

• Over 100,000 beds in pipeline

• Data, research, due diligence, subscription

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Source: StudentMarketing, 2018

STUDENT HOUSING ENGAGEMENT

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STUDENT HOUSING ASSET CLASS

Source: Savills World Research, Global Living, 2018.

YIELDS* IN THE UK STUDENT HOUSING

(*Global cap rates)

2007 6.5%

2008 6.9%

2010 6.6%

2011 6.7%

2012 6.5%

2013 6.4%

2014 6.2%

2015 6.1%

2016 6.0%

2017 5.9%

© Created by StudentMarketing

Source: Institute of Internatational Education, 1995 – 2017; Unesco Institute for Statistics, 1999 – 2016, Federal Statistical Office (Destatis), 1999 - 2016; Department of Education and Training, 2000 – 2016, Europe: data for 2017/2018 calculated based on average growth in 13 countries (cca 70% of themarket).

0

200 000

400 000

600 000

800 000

1 000 000

1 200 000

1 400 000

1 600 000

1 800 000

2 000 000

1999

/2000

2000

/2001

2001

/2002

2002

/2003

2003

/2004

2004

/2005

2005

/2006

2006

/2007

2007

/2008

2008

/2009

2009

/2010

2010

/2011

2011

/2012

2012

/2013

2013

/2014

2014

/2015

2015

/206

2016

/2017

2017

/2018

AUSTRALIA US EUROPE

RECESSION-PROOF ASSET CLASS

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GROWTH OF INTERNATIONAL STUDENTS

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STUDENT HOUSING – SUPER TRENDS

Note: SH prime net initial yield (lease), Residential (PRS); Office (Grade A), 2016Source: StudentMarketing, 2018; Savills World Research, 2017; Deloitte, 2017; RCA, 2018; Images: Corestate – Woodie, International Campus - Frankfurt

INCREASING DEMAND FOR AMENITIES

ü Clubü Cafeteriaü Bike storageü Car parkingü Games roomü Gymü Communal kitchen/sü Laundry roomü Libraryü Multifunctional roomü Outdoor areaü Restaurantü Study roomü Terraceü TV room

STUDENT HOUSING & MICRO-LIVING

INCREASINGLY ATTRACTIVE ASSET CLASS

YIELD

RATES

STUDENT HOUSING 5.75% Spain

RESI 4.40% Spain

HOTEL 5.00% Paris

OFFICE 3.50% Spain

Europe, 2016

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77BENCHMARK | STUDENT HOUSING V. OTHER ASSET CLASSES

STUDENT HOUSING

ASSET CLASS

INVESTMENT VOLUME

€5.9 billion

YIELD RATES

5.75%Spain

PROSPECTS IN 2018 (RANK)

Source: Savills World Research, 2017; PwC, Emerging Trends in Real Estate, Europe 2018; Deloitte, 2017; RCA, 2017; Picture: Collegiate, Lisbon

INVESTMENT: 5th

DEVELOPMENT: 4th

Note: SH prime net initial yield (lease), Residential (PRS); Office (Grade A)

RESI €36 billion

HOTEL €20 billion

4.40%Spain

5.00%Paris

INVESTMENT: 11th

DEVELOPMENT: 10thServiced apartments

INVESTMENT: 12th

DEVELOPMENT: 14th

OFFICE €105+ billion

3.50%Spain

INVESTMENT: 6th

DEVELOPMENT: 7thShared /serviced offices

Europe, 2016

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SUPPLY/DEMAND DYNAMICS


Source: StudentMarketing, 2018. Department of Education and Training, 2017.Numbers based on government statistics and primary and secondary research. Note: Selected cities; Full-time & part-time students, except for Berlin (full-time only) & Copenhagen (doctoral students not included)Image: Pure Aldgate

32%28%

21%13% 13% 12% 11% 10% 10% 9% 6% 5% 5% 5% 4%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Manches

ter

Edinb

urgh

Lond

on

Copenha

gen

Brisb

ane

Melbourne

Vienna

Sydne

yBe

rlin

Warsaw

MadridPa

ris

Barc

elona

Milan

Lisbon

TOTAL PBSA BEDS VS. TOTAL NUMBER OF STUDENTS

Average 15% provisionrate across Europe

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SUPPLY/DEMAND DYNAMICS


Source: StudentMarketing, 2018. Department of Education and Training, 2017. Numbers based on government statistics and primary and secondary research. Note: Selected cities; Full-time & part-time students, except for Berlin (full-time only) & Copenhagen (doctoral students not included). Mobile students represent minimum number of mobile students present in the city; Image: Collegiate, Brunswick

99%

44% 41%

27%22% 20%

16%12% 12% 9% 7% 7% 6% 5%

1% 1%

19% 19%23%

8% 7%16%

6% 4% 4%3% 2% 5%

1% 3% 0% 0%0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Bristo

l

Lond

on

Brisb

ane

Munich

Copenha

gen

Melbourne

Barc

elona

Lisbon

MadridBe

rlinRo

me

Vienna

Utrecht

Paris

Warsaw

Milan

BEDS IN PRIVATE PBSA VS. INTERNATIONAL STUDENTS BEDS IN PRIVATE PBSA VS. MOBILE STUDENTS

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GLOBAL STUDENT MARKET| INTERNATIONALISATION TARGETS

500,000

Source: Government of Canada, 2015; Campus France, 2014; International Relations Office Turkey, 2014; DAAD Germany, 2014; Ministry of Education China, 2011; Ministry of Education Malaysia, 2015; Ministry of Education, Republic of Korea, 2015; The Government of Japan, 2013; Australian Education International, 2014.

Canada

450,000

France

450,000

Germany

350,000

Turkey

350,000

Malaysia

250,000

China

500,000

South Korea

200,000

250,000

300,000

350,000

350,000

500,000

Japan

300,000

200,000

100,000

500,000

Australia

720,000

720,000

500,000

Target reached

Targets for the number of inbound international students in selected countries.

Source: StudentMarketing, 2018.



Paris

Padua

Milan

Warsaw

TriCity

Florence

Dusseldorf

Turin

Cologne

Porto

Coimbra Rome

Zurich

Wroclaw

Berlin

THE MOST UNDERSUPPLIED CITIES IN EUROPE (PROVISION UNDER 10%) 11

City Total provision Private provisionRome 3.0% 7.4%

Porto 3.5% 6.4%

Florence 3.8% 2.4%

Milan 4.5% 1.3%

Cologne 4.6% 5.3%

Turin 4.8% 4.6%

Paris 5.2% 5.5%

Zurich 6.1% 8.2%

Coimbra 6.6% 7.3%

Dusseldorf 6.7% 3.6%

Padua 7.2% 0.0%

TriCity 7.7% 1.7%

Warsaw 8.5% 1.4%

Wroclaw 8.9% 8.7%

Berlin 9.5% 9.1%

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EUROPE AS STUDY DESTINATION |INCREASINGLY MORE COMPETITIVE

Source: StudentMarketing, 2018; QS World University Rankings, 2015, 2018; The European Association for International Education (EAIE), 2017

SMALLER TUITION FEES

LOW OR NO TUITION FEES

at EU public universities

602015

622018

MORE CITY & UNI MARKETING

MORE ENGLISH TAUGHT PRGs

2009

201755

English-taught

Bachelor’sprogrammes

2,900English-taught

Bachelor’s programmes

MORE RANKED HEIs

BETTER WORK RIGHTS DURING & AFTER

STUDIES

Germany: graduates from other countries are allowed to extend theirresidence permit for up to 18 months after completing their studies for thepurpose of looking for employment

UK: former students must secure a graduate level job with a salaryabove a minimum bar (or a training offer or become a ‘graduateentrepreneur’).

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EUROPE AS STUDY DESTINATION |WINNING UNIVERSITY CITIES

Source: StudentMarketing, 2018; QS World University Rankings, 2018; StudyPortals, 2015

AMSTERDAM BERLIN BARCELONA PARIS MILAN

Ranked UNIs2

No. of ETPsUniversity of Amsterdam

133

Ranked UNIs4

No. of ETPsFreie Universität

Berlin41

Ranked UNIs4

No. of ETPsUniversitat

Autonoma de Barcelona

92

Ranked UNIs12

No. of ETPsUniversité Paris

9 Dauphine29

Ranked UNIs3

No. of ETPsPolitecnico di

Milano37

No. of internationalstudents:13,056

Provision rate:21.2%


Provision rate:9.5%


Provision rate:4.9%


Provision rate:5.2%


Provision rate:4.5%

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EUROPE AS STUDY DESTINATION |CITY & UNI MARKETING

Source: StudentMarketing, 2018; QS World University Rankings, 2015, 2018; The European Association for International Education (EAIE), 2017

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EUROPE AS STUDY DESTINATION |EU FUNDING CONTRIBUTION TO UNIs

Source: StudentMarketing, 2018; European Commision, 2018. Image: Vienna University of Economics and Business

UNIVERSITIES IN CONTINENTAL EUROPE RECEIVING THE HIGHEST CONTRIBUTION

Country City University Total EC Contributionon projects

Total no. of projects

The Netherlands Amsterdam University of Amsterdam € 95,467,666 138Germany Karlsruhe Karlsruher Institut für Technologie € 90,771,951 160

Germany Aachen Rheinisch-Westfaelische TechnischeHochschule Aachen € 75,853,354 125

The Netherlands Eindhoven Eindhoven University of Technology € 75,639,802 146Germany Dresden Technische Universität Dresden € 68,304,175 117The Netherlands Groningen University of Groningen € 67,353,662 99Austria Vienna Universität Wien € 42,714,797 82Austria Vienna Technische Universität Wien € 42,594,569 105Germany Stuttgart Universität Stuttgart € 41,186,287 84Germany Berlin Technischen Universität Berlin € 35,127,346 76

€ 1,83 bn 3,170 PROJECTS 89 UNIVERSITIES

TOTAL EUROPEAN COMMISSION CONTRIBUTION IN THE HORIZON 2020 PROGRAMME

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CITY TOTALSTUDENTS

INTERNATIONAL STUDENTS

Paris 357,543 71,509Vienna 186,055 51,782Madrid 314,900 47,570Berlin 180,235 33,743

Prague 97,434 20,887Dublin 97,156 18,432

Warsaw 206,195 17,993Milan 193,072 17,891Lisbon 113,544 16,110

Budapest 143,058 14,722Brno 52,130 13,323

Amsterdam 118,186 13,056Oslo 80,263 9,610

Stockholm 93,269 9,094Krakow 149,880 7,638

Wroclaw 117,943 6,544Lublin 66,130 6,259

Helsinki 58,972 4,070Lodz 76,969 3,204

Source: StudentMarketing, 2016-2018; Numbers based on government statistics and primary and secondary research. Note: Full-time & Part-time students;Selected cities.

Warsaw

Lisbon

Dublin

Milan

Brno

Berlin

Madrid

Paris

Stockholm

Amsterdam

Vienna

Prague

Budapest

LublinWroclaw

Krakow

Lodz

DEMAND

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1717

Source: StudentMarketing, 2016-2018; Note: Selected cities.

Warsaw

Lisbon

Dublin

Milan

Brno

Berlin

Madrid

Paris

Amsterdam

Vienna

Prague

Budapest

LublinWroclaw

Krakow

Lodz

CITY TOTAL PBSA BEDS

PRIVATE PBSA BEDS

PRIVATE SUPPLY VS INT. DEMAND

Amsterdam 25,093 7,164 55%Lodz 9,962 1,448 45%

Dublin 12,343 5,531 30%Stockholm 15,257 2,029 22%

Oslo 12,614 1,514 16%Budapest 18,060 1,966 13%

Lublin 8,794 780 13%Helsinki 16,478 500 12%Madrid 17,879 5,611 12%Lisbon 4,600 1,971 12%Berlin 17,165 3,061 9%

Wroclaw 10,444 570 9%Krakow 18,430 630 8%Vienna 19,186 3,670 7%Prague 25,475 1,139 6%

Paris 18,757 3,917 6%Brno 13,942 409 3%Milan 8,762 241 1%

Warsaw 17,576 244 1%

SUPPLYOslo

Stockholm

Helsinki

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181818

Source: StudentMarketing, 2016-2018; Note: Selected cities.

*Single en suite room**Single room with shared bathroom

LOCATION CITY SINGLE STUDIOWE Dublin € 1,483WE Madrid € 863WE Paris € 813WE Barcelona € 801WE Lisbon € 674WE Valencia € 644WE Munich € 634WE Amsterdam € 627WE Berlin € 598WE Toulouse € 499WE Aachen € 427WE Porto € 388NE Oslo € 692NE Stockholm € 527

CEE Vienna € 559CEE Budapest € 473CEE Prague € 330CEE Lodz € 330CEE Brno € 298CEE Lublin € 284*CEE Krakow € 279CEE Warsaw € 176**IT Milan € 1,300IT Bologna € 640

MONTHLY RENT IN PRIVATE PBSA

Warsaw

Munich

Toulouse

Dublin

Milan

Brno

Berlin

Barcelona

Madrid

Paris

Bologna

Stockholm

Amsterdam

Aachen

Lodz

Valencia

Vienna

Lublin

Krakow

Budapest

Prague

Oslo

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Source: StudentMarkerting, 2018; Images: Bacconi, Milan; Nordea Funds, Copenhagen; CROUS Montpellier; Standford University Campus; UncommonMadison; Student hostel, Louisiana.


STUDENT HOUSING CONCEPTS

VS.

MULTI-INSTITUNIONAL

ATTRACTIVE PRICE

OUTSTANDING LOCATION

STATE OF ART BUILDINGS

ATTACHED TO ONE UNI

ACCOMMODATION PAID ANNUALLY

ON CAMPUS LOCATION

MODERN DESIGN

USAEUROPE

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PRODUCT|PRIVATE PBSA


*0% represents services not on offer; Source: StudentMarketing, 2018 Note: Barcelona, Bremen, n= 7; Copenhagen, n=23; n=62; Hamburg, n=7; Lisbon, n= 126; Lodz, n= 10; Madrid, n=37, Milan, n=9; Vienna, n= 11. Room cleaning as item included in rent. Image: Collegiate

24%

8%

57% 57%

33%

20%16%

33%

86%

56%

42%

71% 71%

56%

80%

43%

56%

86%

55%

0%

14% 14%

0%

10%

41%

0%

14%

61%58%

29% 29%

56%

0%

65%

56%

14%

Barcelona Bremen Copenhagen Hamburg Lisbon Lodz Madrid Milan Vienna

BIKE STORAGE LAUNDRY ROOM STUDY ROOM ROOM CLEANING

* * **

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PRODUCT|FACILITIES

VIENNA

Less than 5facilities available

Between 5 - 10facilities available

More than 10 facilities avaialbe

Source: StudentMarketing, 2018.

Q: What were the most important reasons why you opted for

accommodation in the student residence you currently live in?

1,0%

0,5%

0,5%

0,5%

1,0%

2,0%

3,0%

5,5%

14,5%

19,5%

21,5%

30,5%

Other

Facilities in the nearby area

Services provided by the…

It was the only one with…

Safety

Multicultural character of the…

Flexibility of the lease…

Room equipment

Recommendation from school

Distance to the city centre

Distance to the school

Facilities in the residence

Country: IrelandCity: DublinSeller: Bain Capital CreditBuyer: InvescoCapacity: 276 roomsPrice: € 53.1 million

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DEAL OVERVIEWS

Country: GermanyCity: BerlinSeller: Hompepoint GroupBuyer: CatellaCapacity: 350 roomsPrice: € 41.3 million

Country: NetherlandsCity: Amsterdam, UtrechtSeller: no indicationBuyer: XiorCapacity: 526 roomsPrice: € 95 million

Country: UKCity: LondonSeller: Herne Hill Students Buyer: LRIS Investment Man.Capacity: 69 roomsPrice: € 12.1 million

Source:. StudentMarketing, 2018; Property Week, 2018; Property EU, 2018; Property Investor Europe Magazine, 2018; The Class of 2020, 2018.

Country: FranceCity: ParisSeller: Icade PromotionBuyer: GecinaCapacity: 367 bedsPrice: € 41 million

Country: SpainCity: MalagaFirst investor: GreystarCapacity: 322 roomsPrice: € 9.8 million

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Source:. StudentMarketing, 2018; Propertyweek, 2018, Property EU, 2018, Pie Magazine, 2018, Class 2020, 2018; Image: Redvers Tower, Sheffield


BUILD/BUY PRICE

Country Seller Buyer No. of beds/rooms Price Unit cost

GermanyGarbe College

GmbH & DevarioInvest & others

GSA in partnership with GIC 1,900 € 330 million € 173,684

UK Study InnInvestment

manager Arlington Advisors

1,494 € 152.8 million € 102, 275

Australia no indication AMP Capital 954 € 137.1 million € 143,711

Australia University of Tasmania no indication 403 € 44.2 million € 109,677

Spain CPPIB no indication 600 € 30 million € 50,000

The Netherlands no indication Xior Student Housing 526 + 130 parking spaces € 95 million € 180,608

Germany no indication Patrizia ImmobilienAG 525 € 53 million € 100,952

Australia Scape Besgate 159 € 19.9 million € 305,660

UK no indication Almero Holdings 275 € 22.7 million € 82,545

Numberof beds traded

over 77,000

Source: StudentMarketing using publicly available information. Transaction volume: January - December 2018. Image: CROUS, Marseille

€ 9.95 bn

Numberof transactions recorded

over 140

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TRANSACTIONS VOLUME (2018) 242424

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TRANSACTIONS VOLUME (2018) 252525

over 77,000beds traded

Source: StudentMarketing using publicly available information; Savills 2018. Transactions volume: Jan - Dec 2018. Pipeline recorded: Jan – Aug 2018. Image: IC

€ 9.95 bn

over 140transactions recorded

TRANSACTIONS EUROPE (2018)

PIPELINE IN EUROPE(2018)

over 105,000beds in pipeline

TRANSACTIONS AUSTRALIA (2018)

PIPELINE IN AUSTRALIA(2018)

over 30,000beds in pipelineAverage transaction price

€145,000 (EUROPE)

over 5,100beds traded

over 10transactions recorded

Average transaction price$ 173,011

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SELECTED INVESTMENT PLAYERS 262626

Source: StudentMarketing using publicly available information. Savills World Research, Global Living, 2018.

2018 IN PIPELINE

UNITED STATES

EUROPE

AUSTRALIA

UNITED KINGDOM

Appart'CityBaseCamp Real Estate Partners BNP Paribas Real EstateBrookfield Real Estate Strategic PartnersCamplusCatellaCorestateCPPIB CrosslaneFabrica ImmobiliareGlobal ExploitationGlobal Student AccommodationGreystar...

STUDENT HOUSING PORTFOLIOS107 portfolios with 500+ beds

No. of beds in portfolio No. of portoflios500 - 1,500 44

1,501 - 5,000 385,000 - 9,999 6

10,000+ 19

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Source: StudentMarketing, 2018


STUDENT HOUSING PORTFOLIOS |NO. OF EXISTING PORTOFOLIOS

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Source: StudentMarketing, July 2018


PIPELINE|15 SELECTED EUROPEAN CITIES 28

Lyon

Amsterdam

ViennaParis

Stuttgart

Hamburg

The Hague

MontpellierToulouse

Bordeaux


Lisbon

Berlin

Beds in planningBeds under construction

City Beds under construction

Bedsin planning

Paris 7,527 2,562

Amsterdam 4,453 1,832

Berlin 2,377 6,154

Hamburg 2,188 1,514

Vienna 1,567 326

Barcelona 1,526 1,894

The Hague 1,117 1,193

Stuttgart 1,020 467

Madrid 797 0

Milan 754 650

Lisbon 636 1,655

Toulouse 629 354

Montpellier 588 1,396

Lyon 546 129

Bordeaux 293 251

Barcelona

Madrid

Milan

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Source: StudentMarketing, Statistik Berlin Brandenburg, 2016/2017. Pipeline as of July 2018 Note: Full-time students


BERLIN|PROVISION RATE PROJECTION 29

15 000

16 000

17 000

18 000

19 000

20 000

21 000PIPELINE

2018

2929

Existing bedsin 2017

2019

2020

2021

175 000

180 000

185 000

190 000

195 000

200 000

205 000FORECASTED STUDENT POPULATION

Total no. of students

2016/2017

2017/2018

2018/2019

2019/2020

2020/2021

9,5% 9,4% 10,1% 10,2% 10,0%

2016/2017 2017/2018 2018/2019 2019/2020 2020/2021

TOTAL PROVISION RATE PROJECTION

PROVIDERS PRESENT IN THE MARKET

PROVIDERS ENTERING THE MARKET IN UPCOMING YEARS

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Source: StudentMarketing, 2018. Note: Lisbon & Porto: only pipeline in private stock is taken into calculation.Methodology: Missing stock is calculated as the sum of forecasted number of students and existing stock plus number of beds in the pipeline until 2021. Missing stockrepresents the number of beds needed to reach 20% provision rate in 2021. Arithmetical increase forecast of student population is used (except Berlin where incrementalincrease is used).


MISSING STOCK

Porto

Lyon

Berlin

Vienna

Eindhoven

Madrid

Paris

Milan

Lisbon

Barcelona

Stuttgart

Aachen


City Current provision rate

No. of missing beds to reach 20% provision

rate

No. of beds in pipeline

(by 2021)

Missing stock after pipeline

(2021)

Madrid 5.7% 45,101 797 44,893

Paris 5.2% 52,752 8,819 41,572

Milan 4.5% 29,852 1,404 29,327

Barcelona 4.9% 27,992 3,120 27,155

Berlin 9.5% 18,882 3,259 21,437

Vienna 10.7% 17,350 1,893 16,962

Lisbon 4.1% 18,109 1,546 16,068

Aachen 10.0% 5,819 227 7,475

Porto 3.5% 9,275 2,166 7,217

Stuttgart 11.4% 5,459 1,487 4,636

Lyon 15.3% 6,524 675 3,675

Eindhoven 10.7% 3,336 197 3,320

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Driven by a secular increase in global student numbers and the growing appetite forstudying abroad, the student housing sector is benefiting from strong fundamentals.

”” AXA Investment

Managers

We continue to see increasing demand for student accommodation in the capitaland this deal provides our institutional investors with access to attractive returnssecured against high quality real estate in London’s city centre.

””

M&G Investments

Internationally mobile students are forecast to increase to around 7m globally by2025 from approximately 4.5 million in 2013.

” Joanna Turner, Canada Life Investments

STUDENT HOUSING QUOTES |FUTURE PROSPECTS

The student accommodation sector remains an attractive investment sector withstrong demand from international students from outside of the EU and strong underlyingfundamentals. Interest in this sector remains high, with operators actively acquiringstudent accommodation assets.

”Victus Capital

”

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Documents

Student Housing Asset Class - Real Asset …...Note: Selected cities; Full-time & part-time students, except for Berlin(full-time only)& Copenhagen (doctoral students not included).Mobile