SPH reports higher y-o-y bookings for UK student dorms

Singapore

SINGAPORE Press Holdings (SPH) on Tuesday reported that it has received bookings for 60 per cent of its purpose-built student accommodation (PBSA) properties in the UK. The group said this is a higher percentage than it had seen at the same time last year. (see amendment note)

The bookings are for the academic year 2020/2021 (AY20/21), said the media and property group, which publishes The Business Times.

In a statement, SPH also said that 65 per cent of the target revenue for AY20/21 has been achieved as a result of better-than-expected rental growth - a reflection of the quality of the PBSA assets.

The group further disclosed that the reduction in revenue from offering students in the UK the option of refunds if they left their tenancies early amid the Covid-19 crisis was £4.5 million (S$8 million). This was at the lower end of the £4 million to £8 million range previously expected.

Of the £4.5 million, more than 20 per cent is in the form of credits to students planning to return to their existing housing for AY20/21.

SPH said the Covid-19 disruption may result in more students enrolling in higher education to improve employment prospects amid heightened economic uncertainty.

The group added it is expanding its marketing outreach to students - which includes increasing digital marketing measures, reaching out to more geographies, and doing more tie-ups with agents.

"We remain positive on the long-term fundamentals of the UK student accommodation sector," said David Mathewson, director at Straits Capitol - the SPH subsidiary managing the PBSA assets.

SPH has 25 assets under the brands Student Castle and Capitol Students across 15 UK cities.

SPH shares closed at S$1.430 on Tuesday, down 4.7 per cent or S$0.07.

Amendment note: Due to an error introduced in the editing process, a previous version of this article incorrectly stated there was a 60 per cent increase in bookings, when the figure actually referred to the level of bookings for the UK properties.