Assessing student-halls of residence in Portsmouth as a viable investment class for private and institutional investors

Williams, Peter (2010) Assessing student-halls of residence in Portsmouth as a viable investment class for private and institutional investors. BSc dissertation, University of Portsmouth.

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    Abstract

    Following the economic crisis of 2008, private and institutional investors increasingly sought market segments to diversify investment portfolios to help reduce potential risk, yet still provide the returns seen from former glory years of commercial property investment. Throughout 2009 market indicators highlighted increased interest in privately operated student-halls investment. Advertisements in leading property magazines were on the rise, with big company names following suit, showing large returns and emphasizing opportunities within the student sector. The heart of the research thus provides an analysis into the investment class viability of student-halls accommodation within Portsmouth, from the perspective of large and institutional investors. A background literature study for the research reveals the asset class constitutes a thriving investment opportunity when looked at on a national scale. Factors driving and hindering market growth are investigated, including the effects of the economy, availability of capital & alterations in student demographics. Bringing the focus of the factors down from national, through to regional effects and finishing by applying them to a local scale within Portsmouth. The existing capacity of the University of Portsmouth halls of residence are subsequently analyzed versus demand, concluding there is a large shortage of student halls accommodation, which leaves room for further investment within the sector. Future prospects of the university are then put into focus, taking into account the increased funding cuts in spring of 2010 by the Higher Education Funding Council for England. Concluding student number will remain fairly stable over the next 5 years due to university non-expansion policies, indicating demand for halls will also remain stable. Interviews with key stakeholders take place to increase understanding of the factors hindering growth and factors taken into account before deeming investment viable. Factors include difficulties attaining capital & planning permission, the appeal of prime locations for increased investment such as London and problems relating to over concentration of students referred to as studentification. The research concludes by identifying investment within Portsmouth is urgently necessary and a viable investment opportunity. However it does not offer the returns seen by larger university cities and thus viability from the perspective of an institution or large private investor is deemed negligible, as larger returns are apparent elsewhere.

    Item Type: Dissertation
    Departments/Research Groups: ?? EDAM ??
    Depositing User: Jane Polwin
    Date Deposited: 20 Jan 2011 12:49
    Last Modified: 28 Jan 2015 11:16
    URI: http://eprints.port.ac.uk/id/eprint/1015

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