Brandeaux Student Accomodation Fund

Do you want to stably earn 8-10% every year? Read on.

Two Diagrams, One Great Fund...

So this page is about the Brandeaux Student Accommodation Fund, what exactly is it?

Well, it only takes two diagrams to explain.

The first one, performance since launch (Jun 2000) vs. the Dow Jones Industrial Average:

While the Done Jones Industrial is flicking up and down, the Brandeaux Student Accommodation Fund just keeps going up.

The second diagram, the annual return of the fund every year since launch:

It is steadily returning 8-10% every year. In the 2008 financial turmoil, while every other fund lost a lot, this Brandeaux Student Accommodation Fund gained 10%, isn't it wonderful?

Even Big Investors Like It!

As the name suggests, the fund invests in one of the most prestige and juicy section in the property field: university student accommodation. Read what Financial Times columnist David Stevenson has to say about it:

This is a sub sector of commercial property that has proved surprisingly resilient. According to the Knight Frank student accommodation index, average total returns in 2010 were 13.5 per cent, and 8.4 per cent in London (where rents fell by 3.6 per cent). In 2011, the figures were 10 per cent in the regions and 15 per cent in London.

As a result, professional investors have been moving in: Barclays is active in the sector, and so are the private equity firms Oaktree and Carlyle Group. However, these big players don’t let private investors in – that’s left to Unite, as well fund manager Brandeaux, developer and co-investor Mansion Group, and wealth manager Brooks Macdonald (via its acquisition of Braemar Group a few years back).

(Student property fund yields strong returns, 13th April, 2012)

But why is this market so powerful?

UK Universities: Playground of the Rich

According to the Universities and Colleges Admissions Service (UCAS), there is an increasing trend for students to choose the UK as the destination for tertiary education.

And not only that. Even UCAS admits that their admission process favours rich students (The Guardian, 31st Oct 2011), so most of their family could afford higher rents for their accommodations.

In all:

  • The UK is the most popular destination for tertiary education;
  • The British Isle is free from natural disasters like earthquakes;
  • Education is necessary no matter how bad the market is; and
  • Students are often financed by their parents or the government.

So how does the fund takes advantage of this?

All Over Britain

The Brandeaux Student Accommodation Fund has a portfolio
of high quality student residences in 17 major UK university locations.

It is:

  • Geographically diversified in different parts of the UK,
  • A large accommodation provider with about 15,000 beds,
  • 60% of total rents secured under agreements with universities,
  • 100% occupied over the past five years
  • Increasing net rental price for 2011/12 at average +6%.

How Could I Invest in this Fabulous Fund?

For individual investors, it is available by either a lump-sum or regular monthly contribution.

For those who have a smaller budget may consider a monthly saving plan that only requires a small amount every month from your account.

Please contact our team for further information.

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