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SPH records £22.8 million revaluation gain on UK student accommodation portfolio
SINGAPORE Press Holdings (SPH) announced on Monday after trading hours that it has recorded a revaluation gain of 6.7 per cent, or £22.8 million (approximately S$38.4 million) on its purpose-built student accommodation portfolio.
The gain comes within a year of SPH’s expansion into the student accommodation sector, with the portfolio having grown to £338.4 million, comprising 5,059 beds across 10 cities in the UK. Real estate consultancy Cushman & Wakefield has valued the portfolio at £361.2 million as at Aug 31, giving a revaluation gain of £22.8 million.
SPH – which owns The Business Times – expects the UK student accommodation sector and overall investor interest in this area to remain strong, with up to £3.5 billion of investments likely to come in this year.
The group said that it has been boosting its operational expertise in the sector. Marketing capabilities have been expanded with a centralised marketing and sales office in China to capitalise on the demand by Chinese students for higher education in the UK.
SPH has also taken over operations at the property in Lincoln in the English East Midlands for the upcoming AY19/20 with plans to progressively operate more assets over the course of the year.