An examination into student accommodation investing

STUDENT PROPERTY

John Hill, a director of Luxembourg Fund Partners, which manages the Student Accommodation Opportunity fund, tells Hardeep Tawakley about the risks and rewards of investing in student accommodation

The student accommodation sector has seen exponential growth in the past five years, with an estimated £2.7bn injected last year alone, according to figures released by property agent CBRE.  This was up 125% on the year before and follows increases of 53% in 2011 and 124% in 2010. The sector has come of age and is now an asset class in its own right. But as it has come of age, so have the risks associated with investing in this area and there have been a number of high-profile suspensions in recent years. The biggest issue is most commonly cited as being liquidity – or lack thereof.  ...