The fund is an offshore open ended investment company, designed for growth by investing in accommodation for students. The product will invest in an existing fund managed by Brandeaux managers, which purchases existing university halls of residence and leases them back to the universities.
Royal & SunAlliance International claims that, with many universities now pressed for funding following government cutbacks in further education, there is a serious shortage of accommodation, so that demand is far outstripping supply.
This is an interesting product that does have potential and joins a very small but growing area of the market. With student numbers spiraling upwards and universities being starved of funds, this does fill a potentially valuable niche.
According to Standard & Poor's the Royal & SunAlliance International property fund is ranked 9 out of 11 funds, based on £1,000 invested on a bid-to-bid basis with net income reinvested over three years to July 17, 2000.