Coral and Sprefs launch student accommodation fund
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The Luxembourg-domiciled Coral student portfolio offers an income strategy with target returns of 8-10 per cent and is expected to raise around £100m in its first year.
The fund is an actively managed fund of funds portfolio which will primarily invest in established UK schemes and providers of alternative student accommodation. However, it has additional scope to investigate projects in Western Europe.
The fund is set to launch on March 1 and will be managed by ex-Brandeaux colleagues John Kennedy and Robert MacDonnell, as well as Lawrence Frampton.
It is available through institutional tax wrappers such as life company bond products with no minimum investment and an annual management charge of 1.5 per cent.
Sprefs will act as the investment adviser for the fund, providing the overall strategy for the allocation and selection of the individual student accommodation funds.
Coral Student Portfolio co-fund manager John Kennedy says: “The fundamentals of this asset class are still very strong. Student numbers are increasing, bad debts are low and occupancy rates are high. The volatility of the markets creates the ideal opportunity for this fund and we have been able to formulate a liquidity strategy to meet this immediate market environment.”
