SPH lets boarders in UK dorms shorten tenancy, sees revenue hit of £4-8m

Singapore

SINGAPORE Press Holdings (SPH) is allowing students living in its purpose-built student accommodation (PBSA) properties in the United Kingdom to leave their tenancies early for the academic year 2019/20 (AY19/20), the group said in a statement on Wednesday.

This comes as SPH, which publishes The Business Times, said it "recognises the impact Covid-19 situation has on students' study plans and their finances".

The UK had ordered a three-week lockdown last week to tackle the spread of Covid-19. The move led to all universities moving to online teaching for the remainder of AY19/20.

As such, students who choose to return home will not have to pay rent, and refunds will be made to those who have already paid for their accommodation up to the end of the term, SPH said.

The group has 25 assets under the brands Student Castle and Capitol Students across 15 UK cities. As of March 30, all continued to be in operation, with the majority of students opting to remain, said SPH.

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However, based on the current level of occupancy, the group is expecting a loss of revenue of £4 million to £8 million (S$7.1 million to S$14.2 million) till the end of the financial year.

Meanwhile, the precautionary measures outlined by the World Health Organization, local government and universities have been implemented by the management team overseeing the PBSA business "to ensure that the properties are operating best-practice procedures and that students are well-supported, safe and healthy at this time", said SPH.

This includes improving support for students through setting up a dedicated counselling and communications team in each property, and carrying out regular check-ins on those required to self-isolate. There are also online and virtual activities to promote positive mental health while staying indoors.

The group has also enhanced operating protocols and is working closely with the universities and the local government through ongoing briefings. Across its properties, precautionary measures such as more frequent cleaning and disinfecting of the common areas have been put in place. Social distancing is also enforced by halting any events or social gatherings.

Furthermore, the group's regional response teams have been activated to provide assistance if a novel coronavirus case emerges at any of its assets.

"Our priority is the safety and well-being of our students and employees, ensuring that they are provided with a safe environment as we deal with the pandemic together," said SPH chief executive officer Ng Yat Chung. "As a leading player in the PBSA sector, we will continue to forge partnerships with the community, universities and other agencies, helping students navigate through these challenging times."

Separately, SPH-run Orange Valley Nursing Homes on Wednesday announced that these homes have stopped face-to-face visits to further protect the health and well-being of all their residents, most of whom are elderly and thus more vulnerable to adverse health issues if they should contract the coronavirus.

External communication with residents will be allowed via telephone or video calls.

This enhanced measure will be enforced until the end of the month, following which the arrangement will be reviewed.