L1 Treasury – Student Accommodation

Student accomodation

In its real estate investments, L1 Treasury focuses on student accommodation in the UK. In 2015, through four separate transactions, L1 Treasury acquired a portfolio of UK student accommodation. The portfolio comprises 11 buildings across the UK – in London, Bath, Brighton and Edinburgh, totalling around 3,700 beds. Some of the properties were already operational at the time of acquisition while others were in various stages of completion.

Since September 2016, all properties are operational and are experiencing close to full occupancy for the current academic year. On a like-for-like basis, net operating income for the current academic year will significantly surpass last year’s income.

There are some questions about the impact of Brexit on the UK student accommodation market because research subsidies from the EU may be reduced and European students may have to pay full tuition fees. On the other hand, the decline in the pound sterling has made studying in the UK cheaper and thus more attractive, especially for non-EU students who already pay full fees.

Our accommodation is primarily located near universities that rank among the top in the world where demand for such places substantially exceeds supply. At this moment, we do not believe Brexit would put pressure on our occupancy levels or pricing.