Student Accommodation Johannesburg South Africa - UJ AFDA WITS

SA investros cash in on student homes

2012-01-17T16:46:00.001+02:00

SA investors cash in on student homes

Property 24

17 Jan 2012

A shortage of student accommodation at universities and tertiary institutions has seen old office blocks being turned into upmarket student homes.

Johannesburg has seven properties located right across the road from the University of Witwatersrand and will take 934 students.

The shortage of student accommodation and funds to build new residences has led some universities in Johannesburg, Port Elizabeth and Durban to outsource their accommodation to private developers and building managers, says Richard Rubin, chief executive officer of Aengus Property Holdings (APH).
He says there is an ever increasing investor appetite for this type of housing and the private sector is in an ideal position to step into the breach.
APH is known for its inner-city regeneration projects, urban renewal and a new wave of fashionable inner-city living.
The developer is one of the leaders of affordable yet upmarket accommodation within the city centres across the country converting old office blocks into upmarket accommodation for university students.
Rubin says according to the Department of Higher Education statistics, out of a student population of 530 000, there is currently only enough student accommodation for 100 000 students, meeting just 18 percent of the demand.
The department says the lack of supply of student housing is the primary cause for poor performance and high dropout rates at some universities, with students forced to live in conditions not conducive to studying, he says.
“Accommodation costs are also pushing university out of the reach of many disadvantaged students as rent eats up a major proportion of their monthly budgets.”
After piloting their successful student accommodation model in Johannesburg with 10 buildings, APH has purchased and converted 11 additional buildings in Johannesburg, Durban and Port Elizabeth into high quality student apartments.
He says a number of transactions spanning Johannesburg, KwaZulu-Natal and the Eastern Cape have been concluded adding that student accommodation is breathing new life into South African city centres.
Rubin explains that from the 11 properties, three are in Greyville Durban and will accommodate 183 students.
Central Port Elizabeth has six properties and will accommodate 482 students and Johannesburg has seven properties located right across the road from the University of Witwatersrand and will take 934 students.
Rentals in these types of properties range from R1 950 to R2 500 per person depending on the offering.
In Braamfontein Johannesburg, Aengus is already offering 1 000 new beds for 2012, he says.
Rubin says this is a growth market based on Higher Education Minister Blade Nzimande’s plans for growth to tertiary catered students.
He says if there were investments for sale (none of the students units in the Aengus Investment Properties buildings are currently for sale), investors need to make sure they are well run and located close to tertiary institutions.
Jaco Rademeyer of Jaco Rademeyer Estates says their main student accommodation is in the Summerstrand area in Port Elizabeth close to the Nelson Mandela Metropolitan University.

The developer is one of the leaders of affordable yet upmarket accommodation within the city centres across the country converting old office blocks into upmarket accommodation for university students.

Rademeyer says savvy investors buy property in this area close to the university and rent out per room with rooms costing up to R2 000 per month.
An investor in this case then earns income of R6 000 on a three bedroom property whereas a normal rate would have been about R4 500 per month.
He says people create extra rooms from garage spaces to earn more income.
Furthermore, he says January and February are generally busy months when it comes to student accommodation with many students opting to share a house, townhouse or flats and mostly looking for furnished accommodation.
The average price range that students are looking to pay this year is between R1 800 to R2 500 per student per room.
With the majority of students using public transport, the popular locations are Humewood and Summerstrand.
He says Humewood has mostly flats and students share these while Summerstrand has mostly townhouses and a variety of garden cottages.
“Student accommodation is very popular and there are plans of doing a whole student village very close to the university at the moment.”
Durban North is currently experiencing a fairly good demand for student accommodation because of Varsity College and Sharks Academy in the area.
According to Grant Gavin, broker/owner of RE/MAX Panache, student accommodation on offer varies from a converted house often with out-houses converted on the property to granny flats on existing properties to luxury homes booked up a few years in advance.
Closer to Durban, around the Durban University of Technology, there are large blocks of flats such as Bryanston Heights where two and three bedroom flats are being used as student digs.
Quite often the lounge is converted into an extra bedroom and the cost per bed is kept down, he says.
Asked about rentals, he says as an example, in Bryanston Heights, students can double up in a room from R900 per month and for own room upwards the cost is R1 200 per month.

Rentals charged on modern, well finished apartments in prime locations range from R3 300 for a one bedroom flat, according to Engel & V?lkers Potchefstroom

In Durban North, the bottom end accommodation costs around R1 500 per bed per month, granny flats between R3 500 to R4 000 and luxury accommodation often inclusive of meals (although limited) to R3 000 per bed.
“For a residential property owner looking at additional income streams from their property, this does provide a good option.”
We are seeing more investors buying a property with the specific intention of converting the house and outbuildings for student accommodation and the property then becomes a cash positive investment – something you very rarely attain on a normal residential property, says Gavin.
He says investors of this type of housing should have somebody living on-site to manage/supervise what goes on at the accommodation.
Students enjoy the good life and it is therefore important that the landlord takes responsibility to ensure that there are strict rules in place for noise levels and unruly behaviour, particularly given that these properties are located in residential areas.
It’s probably also advisable to contact somebody at the council to ensure that the number of students living at the property is approved correctly, he says.
In Bloemfontein, the University of the Free State (UFS) and Central University of Technology (CUT) campuses does not have enough student accommodation.
CUT students live mainly in Willows which have over the years become predominantly a student area and many families have moved out, according to Mike Spencer, owner at Platinum Global.
He says UFS students tend to live in Brandwag, Universitas and Westdene and tend to be economically better off.
Bachelor flat accommodation has been snapped up and normal one or two bedroom flats are virtually unobtainable.
A new building was constructed outside the UFS campus and will eventually have about 370 fully furnished two person apartments at Unilofts, he says.
Spencer says the Free State Province believes that there is a shortage of about 2 000 student flats.
This year has seen a well publicised increase in the number of students and this is on top of the 1 000 extra students at each university last year.
“Rentals continue to increase at about 10 percent as they have done for some time,” he says.
At Willow Glen, bachelor pads are now priced at R2 150 from the beginning of the year and Unilofts R5 500 per month.

Rentals charged on modern, well finished apartments in prime locations range from R3 300 for a one bedroom flat and student units are 100 percent occupied and investors enjoy capital growth as new buyers and tenants come to the city annually, says Venter.

Investors in this housing sector cannot go wrong as there is demand for student accommodation.
He explains that as for the disadvantages, CUT students that mainly come from Lesotho require affordable housing and cannot afford unrealistic rentals.
“Investors have to make sure that the returns make it worth their while and need to factor in the high levies, high maintenance and vacancy factors in their pricing.”
He says Bloemfontein has no forward town planning for building student accommodation meaning there is no zoned ground.
The CUT has a major problem because it is situated in the built up city centre with limited opportunities for acquiring ground to build new hostels/blocks of flats.
He says although UFS has a similar problem, many of the students come from better off families and have their own transport, which gives more of a choice unlike CUT students.
Engel & Volkers reports an influx of investors into student housing In Potchefstroom, says Carl Venter managing director of Engel & Volkers Potchefstroom.
Venter says they are currently marketing a few well designed student housing developments in prime locations and investors from across South Africa are keen to invest in a good quality product with great returns and steady capital growth.
Developments in the area include Carmen, Ivy League, Annes Garden and Botanika.
Botanika and Anne’s Garden Two will be ready for occupation in March, Carmen at the end of 2012 and Ivy League will be completed at the end of 2013.
The agency’s property sales for 2011 revealed that 25 percent comprises student accommodation, 20 percent commercial and 55 percent residential.
“Buyers are parents buying for their children studying at the North West University and investors.”
Rentals charged on modern, well finished apartments in prime locations range from R3 300 for a one bedroom flat.
These student units are 100 percent occupied and investors enjoy capital growth as new buyers and tenants come to the city annually.
He says demand for student housing this year is peaking at a 5 year high.
In the Western Cape, Pam Golding Properties (PGP) rentals manager Dexter Leite says there are two areas that are in demand for the University of Cape Town (UCT) students and City Bowl with other student accommodation coming from Cape Technikon, AAA Advertising School and Boston City School.
They look for two bedroom apartments to share with both parents invariably signing the lease as this is generally a cheaper (and considered safer) option than a one bedroom unit for one person.
Security, safety and secure parking are paramount concerns for students and their parents with many choosing newer developments, with mixed residential and retail components which offer an appealing lifestyle.
“Demand starts in October each year, peaking in November and December with enquiries continuing through January.”
Asked about property returns, he says gross returns on average are around 5 percent, whether for student accommodation or other tenants, in similar rental categories.

Inside one of the student units provided by Aengus in Johannesburg.

He says almost all the units they let to students were not purchased specifically as student investment accommodation, but were bought as investment properties.
In the Southern Suburbs of Cape Town, rentals range from R4 500 to R5 500 per month for a one bedroom unit with one parking bay to between R8 500 to R10 000 per month for two bedrooms with two secure parking bays.
Leite says there is demand across all rental price categories in the Southern Suburbs and City Bowl areas depending on affordability and the student / parents’ specific requirements.
Overall, demand for student accommodation in these areas outweighs supply, he says.
He says the The Quadrant (Claremont), Mont Clare (Claremont), The Claremont (Claremont), Intaba (Claremont) Albion Place (Newlands) are very popular with students.
In City Bowl, bachelor apartments are priced from R4 000 to R5 000 per month and one bedroom units from R5 000 to R6 000 while two bedroom units cost between R6 500 to R8 500 per month.
Popular developments in the area include Mutual heights in Darling Street, St Georges (Strand Street), Wembley Square and Perspectives (Roland Street).
PGP Stellenbosch area manager, Louise Varga says buyers of student apartments are parents and investors.
Parents normally buy an apartment and keep it for around six years on average.
As an example, Varga says a parent who bought a 65 square metre, two bedroom unit in Andringa Steet for R825 000 in 2004.
When both the children completed their university studies six years later, the unit was sold for R1.4 million in 2010, which equates to an annual growth of 9.82 percent.
“I believe we have this steady capital growth due to the fact that every year we have parents selling and parents buying.”

A new development on campus, Andringa Walk will make an excellent investment with rental income of R4 000 per room. These units are priced from R1.4 million to R3.350 million with an average price of R1.940 million.

Varga says in Stellenbosch, they have always had more student parents buying compared to buy-to-let investors.
On campus we currently will rent out rooms for R4 000 while a two bedroom apartment can achieve R8 000 per month and bachelor apartments at R4 500 per month, says Varga.
She says they recently sold a two bedroom unit in Merriman street for R1 750 million (54 square metres with two basement parking) with a return of 4.6 percent in the first year and this increases annually.
“On average the rental increases around 10 percent per annum and over a period of five years the recent past has proved a capital growth of 9.8 percent per annum.”
A new development on campus, Andringa Walk, will make an excellent investment with rental income of R4 000 per room.
These units are priced from R1.4 million to R3.350 million with an average price of R1.940 million.
She adds that this is an ideal buy for any parent compared to simply paying rent and getting nothing in return. – Denise Mhlanga

Fund brings additional student apartments to Jozi

2011-12-10T11:21:00.000+02:00

International Housing Solutions (IHS), a global private equity investor in affordable housing in South Africa, is funding the refurbishment of hundreds of apartments near the University of Johannesburg and Wits University, major public transport routes and shopping centres.
Previously co-owned by IHS and Aengus Property Holdings, IHS, with its sterling asset management reputation, now holds 100% ownership of the Student Digz property portfolio following the recent approval by the Competition Commission of the sizeable transaction.
“Student Digz differs from other student developments in that it is not based on the dormitory-style model. All apartments are self-contained, which means that students have their own bathrooms, kitchens and living spaces, and most importantly, privacy and quiet to ensure successful studies,” says Rob Wesselo, managing partner at IHS.
IHS has been steadily building up a portfolio of new-generation student housing solutions in the country’s major urban centres. Contrary to the popular view that student housing is an unpleasant mix between boarding school and down-market apartments, IHS has brought a new vision to the market.
“Since we have taken over complete control of the management of the development, we have launched a massive project to ensure all maintenance was completed and apartments refurbished where necessary. Lots of time, money and human resources have been poured into ensuring students have great living and studying space for the 2012 intake,” says Wesselo.
“The result is modern, clean and inviting apartments where students won’t only live, but be able to enjoy a satisfying lifestyle.”
Wesselo says that as the year draws to a close, students who will be studying in Joburg in 2012 should ensure they have accommodation lined before they put up their feet and enjoy the December holidays.
“There is a significant shortage in quality, affordable student rental accommodation in Joburg, and leaving these arrangements for the New Year may result in students being forced to stay far away from their tertiary institutions or having to settle for sub-standard accommodation,” says Wesselo.
He says there are close to 1 900 accommodation opportunities available, with rentals starting at R1 800; a new letting office has been opened in Braamfontein, and prospective students can visit the office, or contact letting agent Mafadi for enquiries.

Student Insurance Policy - A South African First

2011-11-22T10:51:00.008+02:00

Student Insurance Policy (Launching February 2012)

Firststay Insurance Brokers, in collaboration with Santam Insurance and Let and Stay Student accommodation agency, have through extensive research and experience crafted a South African first, an affordable and relevant student insurance policy.

This policy, priced at R100 per month, will now offer the student staying in a shared accommodation environment, basic cover for a range of items as well as additional benefits. Benefits include;

Students and their parents are often financially and emotionally paralysed by theft or injury, severely affecting their ability to continue their studies successfully. This policy should mitigate this risk and allow them to focus on their studies.

The policy will be launching in February 2012 through relevant student accommodation and letting agents nationally. Agents that would be interested to offer this policy to their tenants can contact Ryno Diedericks at ryno@firststay.co.za or 082 928 0170

The policy is underwritten by Santam and all claims will be administered by the Santam call centre. For more information on the policy please visit www.firststay.co.za

Dept to help pay for 25 000 students waiting to graduate

2011-06-04T09:28:00.000+02:00

Compiled by the Government Communication and Information System
Date: 26 May 2011
Title: Dept to help pay for 25 000 students waiting to graduate
--------------------

Cape Town - The Department of Higher Education and Training is coming to the rescue of about 25 000 students from universities who have completed studies but are not able to graduate and get jobs because they have not finished paying student loans.

Briefing the media before his Budget Vote in Parliament today, the Minister of Higher Education and Training, Blade Nzimande, said his department would set aside about R200 million to help students who had taken out loans and had since graduated, but still owed monies to the National Student Financial Aid Scheme (NSFAS).

Those who meet the requirements to graduate between 2000 and 2010, and who are eligible for NSFAS loans can apply for this special funding through their respective student financial-aid offices, he said.

Nzimande, who also made several other announcements on the NSFAS, said the new measure would apply to students that registered for loans from April 1.

These included a doubling of disbursements under the fund - from R2.7 billion in the 2010/11 financial year to R5.4 billion this financial year - and placing a limit on interest charged on student loans, so that students no longer have to pay the interest on their loans until 12 months after their graduation.

At present, interest charged on loans kicks in the moment you sign for a loan, unlike in Brazil and Canada, where interest payments on student loans only become payable after a student graduates.

Added to this, R50 million has been provided for post-graduate students who require financial assistance to complete their degrees.

These students will enter into loan agreements with the NSFAS and the money they pay back would be earmarked to fund post-graduate students, Nzimande, said.

But Nzimande hastened to add that this wasn't a license for other students to not pay back their NSFAS loans.

He said the department would approach SARS to assist in tracing and forcing those NSFAS loan beneficiaries, who are now working but are not paying back loans, to pay back their loans.

The department is also looking to increase the number of university accommodation available to students.

Currently only 18.5 percent of students stay in university accommodation and the department had set aside R686 million for the years between 2010 and 2012, to build and refurbish student residences, he said.

Nzimande said preliminary reports were being studied by the department on setting up universities in the Northern Cape and Mpumalanga, while work is also under way to increase the number of universities that offer courses for teachers that want to teach in African languages.

The department was also busy overhauling Further Education and Training (FET) colleges and department officials had already visited all 50 FET colleges to assess how to give hands-on support.

The minister said the career advice services programme, run by the South African Qualifications Authority (Saqa), was launched in January this year and a website was now up and running - www.careerhelp.org.za, as well as a Facebook group - www.facebook.com/careerhelp.

The department is partnering with the SABC, which is running 30-minute career guidance slots on nine radio stations, reaching about 2.3 million listeners per week.

The programme is broadcast in nine African languages and Nzimande said the department intended expanding the radio programme to Afrikaans as well.

Turning to the transformation of the Skills Education and Training Authorities (Setas), Nzimande said the department was strengthening Seta governance and had reduced the number of Setas from 23 to 21.

He said the department is tackling underspending at Setas and has told boards to reduce the trend.

Setas would be reconfigured to spend more on long-term workplace-orientated training.

The department would also be setting up a task team to analyse where Setas spend money and how much use Setas make of public learning bodies, rather than just private consultants.

Commenting about media reports on the appointment of ANC secretary general Gwede Mantashe's wife Nolwande as a member of the new Services Seta's board, Nzimande said Mrs Mantashe is a human-resource expert and should be seen on her own merits as a professional, rather than be judged on who she is married to.

Nzimande said the Green Paper on Higher Education would be released later this year.

The appointment of a new director general is in process and the department would begin interviewing candidates soon, he said.

Reported by: South African Government News Service

Business unusual at Public Works

2011-06-04T09:23:00.000+02:00

Compiled by the Government Communication and Information System
Date: 02 Jun 2011
Title: Business unusual at Public Works
--------------------

Pretoria - The Department of Public Works is set to embark on an ambitious programme that will see it invest in repairs and maintenance of government buildings, which will result in huge savings for the state.

The programme, announced by Public Works Minister Gwen Mahlangu-Nkabinde on Wednesday during her inaugural Budget Vote in Parliament, will be undertaken by the department in three years.

"Investment in repair and maintenance, continuous maintenance and construction of new government buildings could generate major savings for the state ... This will also include ensuring the relocation of national departments to state owned buildings where it is feasible to do so," said Mahlangu.

She noted that the leasing portfolio was costing the state a lot of money, where in the past year alone, her department spent billions in leases and functional accommodation for client departments.

"We acknowledge that our lease portfolio will take a while to reduce but in the interim, the department will continue to find ways to structure its current leases such that the socio-economic goals of government are realised including black, women and youth economic empowerment," said the minister.

Mahlangu said the department would invoke the National Infrastructure Maintenance Strategy and the National Contractor Development Programme to target investment in this sector, a move that would also benefit small and emerging contractors.

With regards to the rehabilitation of unused as well as underutilised public buildings, the department will in collaboration with the Department of Higher Education, convert these buildings to provide affordable student accommodation where it is possible.

The upgrading and refurbishment of the HG De Witt building in Tshwane will result in accommodation for approximately 180 students, while the upgrading and refurbishment of Pelonomi Hospital in Bloemfontein will result in accommodation for about 700 students.

"Through this intervention, the department is looking at alleviating the problem of lack of decent student accommodation while creating job opportunities," explained the minister.

The department will also rehabilitate selected military bases, while it is also paying attention to the deteriorating state of the infrastructure at harbours, starting in Cape Town.

Turning the focus to accommodation needs of the South African Police Service, Mahlangu said in the year under review, these will be extensive given the need to fast-track the goal of creating "a safe and secure South African society."

She said infrastructure projects were solid proof of government's commitment to service delivery.

"Furthermore, and with respect to the SAPS portfolio, I wish to announce that in the current financial year, the department will complete the first ever state-of-the-art Forensic Laboratory for SAPS in Cape Town," said the minister.

The department will also launch a campaign to encourage South Africans to reclaim lost or missing immovable assets.

"We will soon launch the Amnesty Campaign aptly named 'Operation Bring Back' in order to encourage South Africans to reclaim lost and/or missing immovable assets. These properties, we believe, were insincerely wrested from the state in the turbulent transitional period following the demise of apartheid and were being unlawfully occupied.

"The significance of the state-owned real estate as a major revenue generator for government cannot be over-emphasised," said Mahlangu.

She said once recovered, the properties will either enhance the department's disposal programme or contribute positively to the Inner City Regeneration programme in revitalising the economy.

Reported by: South African Government News Service

Task team to review student accommodation challenge

2011-01-27T08:57:00.000+02:00

Eyewitness News

Government admitted that student accommodation is a major challenge as more and more students leave their home towns to further their education.

Education officials briefed Parliament’s Higher Education and Training Portfolio Committee on the issue on Tuesday.

It said it needs R5 billion over the next three years to improve infrastructure at universities.

Acting Deputy Director-General of Universities Kirti Menon, said about 800,000 students need accommodation and some university towns are feeling the pressure.

“This is particularly evident in the cities like Johannesburg or Pretoria or Cape Town,” she said.

Menon said this is a problem faced by both developing and developed countries.

She added that a task team has been set up to review the issue and study international practices.

(Edited by Lindiwe Mlandu)

Quicker student loans on the cards

2011-01-12T09:41:00.000+02:00

Sowetan

17-Nov-2010 | Sapa

"The implications of this are far reaching," Qualifications Verification Services (QVS) managing director Danie Strydom said in a statement.

"It means, among other things, that student loans can be granted much quicker so that individuals can pay for tuition and buy books sooner than before," he said.

In the past, students had to obtain a letter from the university to confirm that they had registered.

This had to be presented to the bank where the student had applied for a loan.

It usually took several days for the bank to verify the authenticity of the letter before funds became available.

"By replicating the computer database of the university, the whole process can take place on-line and student registrations can be verified in seconds rather than the days that it took previously," Strydom said.

QVS's announcement had raised serious interest, and all the major banks would gather at the University of the Free State on Thursday where they would be fully briefed on the new service.

Seven universities had already subscribed to the new QVS services and would implement them soon.

Student registrations and qualification verifications currently live on the QVS system were the University of Johannesburg, Tshwane University of Technology, and the University of the Free State.

Other universities in implementation stages were the University of Stellenbosch, Durban University of Technology, and Nelson Mandela Metropolitan University.

The new on-line service would also save the banks millions in lost revenue by informing them when students had terminated their studies, thus becoming ineligible for the reduced interest rate loans, he said.

They would also immediately have to start repaying their loans.

"Banks risk losing millions of rand every year by students absconding and not repaying their loans.

"Our new product will keep banks and other role players, such as trustees of bursary funds, up to date on the status of every student on a day-to-day basis," Strydom said.

Students would be required to give permission to have their details made known on the database and would have full access themselves to ensure that the correct information was displayed.

The system was secure and fully automated in the sense that computers, rather than human beings, did the processing.

It could also be audited to ensure that no mistakes slipped in, he said.

Students must re-pay their loans

2011-01-12T09:38:00.000+02:00

Sowetan

12-Jan-2011 | Anna Majavu

THE National Student Financial Aid Scheme says students who have borrowed money must repay their loans

President Jacob Zuma announced on Saturday that, from this year on, needy final- year students who qualified for NSFAS loans would be given enough money to cover their fees and living expenses.

Students had complained in the past that their loans did not provide money for food and transport, leading many to drop out.

Zuma also said if final-year students passed, their NSFAS loans would be converted into bursaries which they would not have to repay.

Yesterday NSFAS quickly moved to put a damper on student hopes that they would all get full loans this year.

"There appears to be some confusion regarding the announcement on the status of existing and new NSFAS loans and the responsibility of students to repay their debt obligations," said NSFAS chief executive Ashley Seymour.

He said people who had borrowed from the NSFAS must start making repayments if they were now earning R2500 or more a month.

He said final year students benefiting from Zuma's new scheme would still have to repay money borrowed in their first and second years.

NSFAS spokesperson Bonny Feldman said that while NSFAS recommends that students get a maximum of R54,000 a year to cover all their costs, this decision lay with the universities.

Instellings oorval

2011-01-12T09:34:00.001+02:00

Instellings oorval
Die Beeld
2011-01-11 23:34

Alet Rademeyer en Loren Pienaar

Teleurstelling en wanhoop het duisende studente gister by universiteite in Gauteng begroet waar hulle ure lank in lang toue gewag het om aansoek om toelating tot instellings te doen.

Baie moes hoor dat daar nie meer plekke beskikbaar is in die studierigtings wat hulle wil volg nie. Talle se punte het nie aan toelatingsvereistes voldoen nie en baie het geen idee gehad wat hulle wil studeer nie.

Die Universiteit van Johannesburg (UJ) is sover die ergste geraak met meer as 30 000 laat aansoeke wat ingestroom het.

Prof. Marie Muller, registrateur van UJ, het gesê die toename in getalle kan toegeskryf word aan die beter matriekuitslae wat kandidate vir hoër onderwys laat kwalifiseer.

Meer as 126 000 van 2010 se matrikulante het toelating tot graadstudies gekry.

Muller het ook gesê UJ word oorval deur aansoekers wat nie in 2010 toelating gekry het nie omdat hulle gr.?11-punte nie aan die toelatingsvereistes voldoen het nie.

Volgens hul gr. 12-uitslae voldoen hulle nou wel.

UJ het in 2010 meer as 63 000 aansoeke van eerstejaars gekry, terwyl daar vir net 13 000 plek is.

By die Tshwane-universiteit van Tegnologie (TUT) en Unisa se kampus is Pretoria was daar ook lang toue voornemende studente.

By TUT is van die studente later meegedeel dat hulle by ander instellings moet gaan aanklop omdat al die programme reeds gevul is.

Mnr. Nico Dietsiso (18) van Kroonstad in die Vrystaat was gistermiddag die laaste een in die UJ-ry.

Hy het gesê dit het hom sowat R1 200 aan kos, verblyf en vervoer gekos om daar te wees, terwyl hy ook vyf uur lank op ’n trein na Johannesburg was.
Me. Francis Inama van Soshanguve wou vir uitvoerende kunste by TUT inskryf. Sy moes egter hoor dat haar 32% in wiskundige gelettterdheid, 48% in Engels, 45% in verbruikerstudies en 42% in toerisme nie goed genoeg is nie.

Me. Irene Lephale (21) wou verpleegkunde of kliniese tegnologie studeer en moes hoor al die plekke is gevul.

Sy het in 2009 matriek geskryf en verlede jaar haar punte in die aanvullende eksamen verbeter. Met 59% vir lewenswetenskappe, 46% vir fisiese wetenskappe, 43% vir wiskunde en 49% vir Engels het sy gesê sy gaan haar uitslae weer probeer verbeter.

By Unisa het me. Nonhlanhla Shongwe gesê sy het al die pad van Paul Pietersburg in KwaZulu-Natal gekom in die hoop om onderwys te studeer.

Me. Doreen Gough, woordvoerder van Unisa, het gesê tussen 10% en 15% van studente wat net opdaag, moet weggewys word.

TUT het in ’n verklaring op die gevare gewys van ouers wat hul kinders universiteite toe stuur sonder dat daar vir hulle verblyf is. Van die studente bring nagte voor die universiteitshekke deur in ’n poging om toelating te kry.

Die universiteit het studente ook gewaarsku om nie enige geld of dokumente aan mense te oorhandig wat beweer hulle kan vir hulle ’n plek verseker nie.

Bleak future for late applicants at UJ

2011-01-12T09:29:00.000+02:00

Many of the prospective students flocking to the University of Johannesburg may not get in at all, the institution. From Monday, thousands of people descended on the university, trying to secure a last minute spot in the first-year class of 2011. UJ's registrar, Professor Marie Muller, said the flurry of late applications could be attributed to the greater number of National Senior Certificate holders in Gauteng that obtained university admission in the 2010 exams, compared to last year. Muller said students were still queuing outside the university on Tuesday. Some had applied with their grade 11 results in 2010, were rejected, but fared better in their matric exams and were trying to get in on the strength of those results.

Matthews Baloyi, The Star

R150m financial aid boost for students

2011-01-11T15:30:00.001+02:00

11 January 2011

South Africa has allocated an additional R150-million to its National Student Financial Aid Scheme to help tackle the backlog of scarce skills in the country.

Making the announcement in Pretoria on Monday, Higher Education and Training Minister Blade Nzimande said that, through the National Skills Fund, the government had set aside R22.9-million for funding 820 first-year students and R7-million for a bursary scheme targeting rural students who did exceptionally well in the 2010 Grade 12 exams.

R21-million had been set aside for 300 first-year bursaries for students with disabilities, with the balance of R99.1-million to be allocated to students who were already studying in fields of scarce skills.

Career Wise bursaries

The National Skills Fund will also be allocating R100-million Career Wise bursaries in the following categories:

* R17-million to fund 258 first-year students.
* R4-million for the Dipaleseng Special Bursary Scheme.
* R4.6-million for 67 first-year bursaries.
* R11.5-million to support 245 first-year students pursuing studies in chartered accountancy at the University of Fort Hare.

In a bid to ease access to Further Education and Training colleges and help the country to meet its needs for intermediate and technical skills, hard-working students from poor families would this year be exempted from paying academic fees.

The bursary, to be allocated to students whose parents earn a combined salary of R122 000 per annum, will cover tuition, accommodation, meals and transport costs.

However, Nzimande called on recipients to work hard, as the department will be monitoring their performances, warning that if they failed to produce good marks, the bursary would be forfeited.

"This is not a free ride, we require students to work hard," he said. "You can't continue to get a bursary if you don't deliver."

Career guidance

Nzimande also announced that his department and the South African Qualifications Authority had entered into a partnership with the SABC to provide pupils with information on career guidance.

The career information will be broadcast on all Nguni radio stations.

"Our aim is to ensure that information flows to rural schools and that no learners go to school without such information. It should be made available earlier in their schooling careers."

Pupils and ex-pupils can get advice from the career advice website www.careerhelp.org.za or from the Career Advice Helpline on 0860 111 673. The helpline can also be contacted via SMS on 072 2045 056 or by e-mailing help@nqf.org.za.

Source: BuaNews

Late UJ applicants cause traffic jams

2011-01-11T08:34:00.002+02:00

January 10 2011 at 07:05pm
IOL news students registration01

Independent Newspapers

Around 30,000 late applicants at the University of Johannesburg, mostly on its Kingsway campus, caused heavy traffic jams in the area.

About 30 000 late applicants at the University of Johannesburg (UJ), mostly on its Kingsway campus, caused heavy traffic jams in the area on Monday, Johannesburg metro police said.

“The applicants were parking on Kingsway road and this made traffic very heavy... it was severely congested,” said Chief Superintendent Wayne Minnaar.

He said traffic was affected from midday until about 5pm.

UJ's registrar, Professor Marie Muller, said the flood in late applications could be attributed to the increase in the “number of National Senior Certificate holders in Gauteng that obtained University admission in the 2010 exams”, compared to last year.

The university received 63 400 applications for 2011 first year undergraduate studies in the dedicated application period in 2010.

“The university's pre-selection is based on grade 11 results and UJ conditionally admitted 17 500 applicants.”

University spokesperson Herman Esterhuizen said some of these accepted applicants may have applied to other universities and so would not actually enrol at UJ, in which case there would be some available spaces for late applicants.

“Every late applicant that arrived today was given an application form... but some were still upset because they thought that they could arrive at the university and register. It just doesn't work like that.

“Some applicants were quite upset and had to be escorted off the campus.”

Muller said UJ may enrol 48 000 students in 2011 and this included all undergraduate and postgraduate students.

She also reminded applicants that “compliance with the minimum admission requirements does not guarantee a study place at UJ”. -

Sapa

Buy student accommodation for good returns

2010-11-09T13:52:00.000+02:00

By Landlord SOuth Africa

Published: November 8, 2010

With matric learners now in the throes of final exams, many parents are once again facing the problem of finding suitable away-from-home accommodation for children who plan to go to college or university next year.

But the problem is turning out to be an opportunity for property sellers in residential areas close to tertiary education institutions, says Richard Gray, chief executive of Harcourts Africa, who explains that increasing number of parents are realising that it is possible to provide suitable and stable accommodation for students and benefit from a shrewd investment decision at the same time.

“Indeed, we see a quite a new trend emerging of families buying a second property close to a college or university rather than a holiday home, say, or a rental property elsewhere. And the reason is that they have worked out that such purchases will provide students with off-campus ‘digs’ that are a cost-effective alternative to residences or rented rooms and flats, and will usually prove their worth as pretty canny investments as well.”

Parents whose children have finished their studies, he says, can usually find a ready market for these second properties among the parents of incoming students, and make a good profit on their initial outlay.

“Increasingly, though, we see parents retaining these properties and using them as the means to give their newly-graduated children a head start in their careers – as assets that can be rented out to generate an additional income, or that they can live in themselves while they get established, or that may serve as security for a loan needed to start a new business or professional practice.

“In this way, their investment becomes the ‘gift that keeps on giving’ and proves its worth over and over – while also helping more young people to achieve home ownership and contributing to the rejuvenation of many areas around colleges and universities by a new generation of residents.”

Areas where this trend is already clearly evident, says Gray, include Observatory and Rondebosch in Cape Town, Auckland Park and Richmond in Johannesburg, Glenwood and Umbilo in Durban, and Arcadia and Hatfield in Pretoria.

Save our institutions

2010-09-21T10:50:00.001+02:00

Dispatch Online

2010/09/20

Save our institutions

A REPORT over the weekend that South Africa’s students owed R13.2billion in tuition and accommodation fees is a clear indication of the depth of the debt crisis facing our universities.

Thousands of students at 14 of the country’s 23 tertiary institutions are liable for more than R2bn in outstanding fees this year alone, the Sunday Times reported.

Institutions are battling to get the money back, including from students financed through the National Student Financial Aid Scheme (NSFAS), which is expected to pay at least R788.2 million of the outstanding fees of this year.

The NSFAS is owed R3.3bn over the last 11 years by graduates who got study loans, while another R7.1bn is owed by more than 530000 students who are still studying or who have dropped out.

In our region of the Eastern Cape, the picture is equally bleak. Walter Sisulu University has the dubious distinction of being owed almost R389m in outstanding fees – including R121m last year.

According to a financial report presented at an executive management meeting last month, WSU will have a projected deficit of almost R66m by the end of this year.

Judging by the response from WSU’s vice-chancellor Marcus Balintulo – who described WSU’s student debt crisis as “critical” – a solution may still be a long way away.

“We have to juggle around and sometimes we delay paying (for services). It’s a tough situation,” he told the Sunday Times.

What is clear is that a blame game for the current cash crunch at WSU and elsewhere will get nowhere closer to solving the problem.

Riots like the one at WSU’s Nelson Mandela Drive campus in Mthatha last week, which saw 241 students arrested, are not only unacceptable, but also do nothing to solve the situation.

The solution, it seems, lies in untangling a number of complex issues interwoven in a vicious circle involving students, institutions, government and the private sector.

Students need to understand that study loans – including from the NSFAS – are contracts that must be fulfilled.

This means returning to the lecture halls and bringing home proper pass rates as their side of the bargain.

Institutions like WSU need to beef up their culture of learning and their image as places of excellence where young people, mostly from disadvantaged communities, have hope for a brighter future.

Government – and the private sector, for that matter – needs to create jobs and find the space to reward those who make it to help ease their financial burden in paying back student loans.

But, as Balintulo said: “It’s a tough situation.”

Our Youtube production has gone live!

2010-09-17T17:47:00.001+02:00

We are proud to announce that our Youtube production is now live. You can get a glimpse of what our properties look like, our office and our friendly staff. Visit http://www.youtube.com/watch?v=VhWp7LOW288 to watch the video.

UJ Students to march over accommodation

2010-07-15T13:27:00.001+02:00

The Citizen
Wednesday, 14 July 2010 17:37

NONI MOKATI

JOHANNESBURG - Students at the University of Johannesburg (UJ) are crying foul over “dodgy” accommodation.

According to ANC Brixton branch spokesman Joseph Se-hlabaka, many students had approached the ruling party about alleged money-laundering and the exploitation of students.

It is claimed that the university provided shoddy accommodation to students sponsored by the National Student Financial Aid Scheme of South Africa (NSFAS).

But UJ executive director of students affairs Professor Bobby Mandew said the allegations were baseless and untrue.

A student, who spoke on condition of anonymity, alleged there was overcrowding in some of university approved apartments.

Some students have apparently not been allocated accommodation, despite NSFAS having paid UJ for their residences.

One student charged that some of privately-owned student accommodation establishments were not accredited and were in a dire condition. Some of the “worst” residences are said to be in Ekeinhof, South of Johannesburg, and one in the Johannesburg central business district.

A number of students based in Brixton are vehemently opposing their mooted relocation (by the university) to Ekeinhof.

Students have threatened to embark on a big march if the university failed to meet their demands.

“Our parents are under the impression that we live in well-established houses and yet we are forced to live in dilapidated buildings.

“What’s more frustrating is that some of the flats in town are surrounded by prostitutes at night,” said one student.

An ANC Youth League member was apparently due to face a disciplinary hearing for speaking out on the matter.

Prof Mandew confirmed that one student was facing a disciplinary hearing after he led a group of first-year students to protest outside his house.

nonim@citizen.co.za

JHB Student Accommodation Boom

2010-06-09T08:45:00.000+02:00

12 May 2010

Property markets in Johannesburg areas such as Richmond, Auckland Park, Westdene, Braamfontein and even further afield in Yeoville and Rosettenville are straining to meet the demand for students' accommodation.

Servicing tertiary institutions, such as Wits and the University of Johannesburg (formally RAU and Wits Tecknikon), these areas are enjoying the spinoffs of expanding student populations says Brian Lovell of leading local agency Homenet Leaders.

"Factors such as a shortage of land for additional development and the influx of home offices and service industries to support demographics are also underpinning the market in these areas," he says.

"These are older suburbs but basically they are being re-invented in the process of becoming 'student city.' As a result, there is strong demand for apartments as well as houses that will accommodate students on a communal basis."

A case in point is the Calais complex in Montgomery Park, around the corner from the University of Johannesburg, which is comprised of about 200 one and two-bedroom apartments. "Five or six years ago, a one-bedroom unit in this complex would have sold for about R130 000 and a two-bedroom version for R180 000. Today they are fetching around R380 000 and R480 000 respectively."

In fact, prices for student type-accommodation in this part of the city have generally doubled in the past three years, despite a spate of purpose-built new development, and expectations are that they will continue to escalate, although perhaps more slowly now that the University of Johannesburg is rumoured to have plans of its own for building rentable student accommodation in Melville.

Says Lovell: "The rationale for investing in flats or larger homes to house students is inescapable. Parents will have to pay for student accommodation whether they own it or not. It simply makes good business sense to direct those resources into something that will, in all likelihood, provide a financial return at the end of the students study period.

"And the returns have been excellent, although they may be leveling off to some extent, perhaps for no other reason than that the banks will not continue ad infinitum to provide financing where they cannot see endless increases in values.

"Having said that however, once the property market in general resumes its strong growth, as is generally anticipated, so too will student-orientated properties and for the investor with a medium to long term view, that means an excellent opportunity."

Student Accommodation - Things to be taken care of!

2010-06-08T15:02:00.000+02:00

People who like to invest in property are considered to have an edge over others. The phenomenal success brought forward by real estate sector has once again proved that property continues to earn even you are not working. We have realized it for our own benefit that world is becoming more of a single country and people are moving freely all the time to different places and students in particular. Student accommodation concept has reached unprecedented heights and more emphases are being laid as how to make it evergreen like any other industry. Student accommodation concept would always be there as long as we have educational institutions and universities offering overseas programs.

There are few things to take care of when one is putting his or her property on the market for student accommodation. First things first and one shall think of taking professional services. The easiest way out is to appoint a managing agency and let them take care of things in order. The best part is that you need to be bothered about the technical aspect and how to find suitable candidates for student accommodation. These professionals are equipped with sufficient amount of techniques to put your interests forth than any other thing. 'Joint and several liability" clause is another such term that ensures peace of mind to owners as he or she has not to run after every single tenant but a fixed amount would be set as a whole. Now, all tenants would be responsible individually or collectively to pay it on monthly basis.

Another important thing to be mentioned over here is that to involve parent's participation. It is the single most influential factor before striking the deal. It is good to have fair expectations from each other. All such and more measures are meant to decrease the ratio of failed cases and bring hope and light to this industry. Student accommodation prospect is vast in nature and certainly future belongs to it. Be it students or the owner, student accommodation agreement shall serve both the sides. At the end, we are talking about students who would eventually pay for the services and landlords are supposed to provide basic facilities.

So, things should be in tandem and work accordingly. The last bit is about the number of people who are going to accommodate as it is again a debatable issue. It is always good to clear the doubts first and then walk together peacefully. Student accommodation is an interesting discussion to have as it is still relatively new and progressive in nature. So, better are chances our when we talk more and participate hugely in numbers. The only way to succeed is by asking more and after.

Article Source: http://EzineArticles.com/?expert=Simon_Mahoney

Student Accommodation helping the real estate market

2010-06-08T14:54:00.000+02:00

The term student accommodation has been referred to the requirement of students wanting to pursue higher education and seeking a place to settle down in the main cities where such education is available. Many leave their homes in the hinterland and make their way into the main cities where they know the standards of education are much better. Many foreign students also make their way into cities that are known to provide good higher education standards are therefore require help in the form of student accommodation.

The trend is now very clear. Many individuals are pursuing higher education and are willing to relocate which is leading to this requirement. The captive accommodation already available with the universities and educational institutions are proving to be insufficient to hold so many students and they have no choice but to look elsewhere in the city. While some of the students do manage to shack up with seniors, others have to look for student accommodation facilities.

This demand for student accommodation has led to the creation of student areas in some of the towns. These are typically lodgings of low rent, are near to the education institutions and city centre and are within striking distance of leisure facilities such as gymnasiums, pubs, cinemas and sports clubs. These areas are often not fancied by their neighborhoods, due to negative experiences in the past with some of the students who may not have followed the discipline and good manners that are required when you stay close to civilian neighborhoods. Very often students have indulged in vandalism and rioting as a form of protest. Some of the students have also been involved in drug trafficking, prostitution and other anti social activities leading to a lack of confidence and faith in them. On other factor for this apathy is the poor upkeep of the facilities thanks to the changing nature of the residents each year.

There are such student areas in almost all major cities that provide good standards of higher education. The only positive point for residents close to such student accommodation areas is the fact that this demand for housing has led to a spurt in the real estate prices, contrary to perception. The demand from students is so strong for good housing that they are willing to pay a higher price for the accommodation. This has led some smart landlords looking to rent out their property to brand them as "student houses" in their advertisement so that they are able to attract the right student population for their property and rake in the spoils.

Some cities are however making attempts to provide a much better standard of student accommodation by providing some luxury electronic gadgets so that they can get the students to move in there. They know that students can pay more thanks to the high level of disposal income they have with them due to high student grants and loans.

The Leeds Metropolitan University is the largest university and students flock to this university for their higher studies. They find Student Accommodation Leeds with assistance from Letting agents Leeds for this purpose.

Article Source: http://EzineArticles.com/?expert=Simon_Mahoney

Student landlords benefit form the shortage in rental houses

2010-05-02T20:59:00.001+02:00

By Samul Swan

At last there is some good news in the UK rental property markets as demand is now outstripping supply. This points to a positive future for landlords as their property should continue to be in high demand.

One consequence of the increased requirement for let property is that as a landlord you should be able to find a tenant more quickly. According to the Association of Residential Lettings Agents during the first quarter of 2010 the average vacant period for rental property dropped to just 3.6 weeks.

Student landlords in popular university towns and cities may find that the property shortage is even more acute. Higher demand for property should fuel higher rents and fewer periods of vacancy for let property - all of which is good news for student landlords.

Get better rental income on your let property

Following the recent economic downturn, many young people have decided to pursue a degree or higher qualification rather than enter the workforce. There are now 2.4 million students in the UK, many of which will be looking for let property. During the past nine months there has been a 45% increase in demand for student housing and the trend looks set to continue. By tapping into this market, student landlords can expect to see a better gross return on their investment.

Generally speaking, rents are higher for student property than a comparable buy-to-let property - often by as much as 10%. A landlord with the right type of property in the right location for students can look forward to better yields on their rental income. It is anticipated that demand for student lets in cities such as Leeds, London, Manchester and Sheffield will continue to rise, making these locations ideal for student landlords.

Keep property vacancies to a minimum

Any landlord will tell you that one of their main priorities is to keep periods of vacancy to a minimum. One of the advantages of letting property to students is that the house or flat will have tenants for nearly all of the year. Moreover, the landlord will know months in advance if the property will be need for the following academic year, enabling them to plan ahead.

How u-rooms.com can help
If you have a property to let within easy reach of a UK university, let u-rooms.com help you tap into the student rental market. Students are currently starting to look for a flat or house share for the next academic year so now is a great time to move into this market. At u-rooms.com we offer a very competitively priced, yet comprehensive service, designed to make your life easier and help you find the right tenants quickly. Simply visit us at u-rooms.com and list your property. For more information about marketing rental property contact or to list your property contact u-rooms.com.

Article Source: http://EzineArticles.com/?expert=Samul_Swan

New Price Guarantee

2010-03-24T22:45:00.001+02:00

Price Guarantee

At Let and Stay we are so confident in the price that you pay for our service and quality offering that we will not only match but beat any written qoute for accommodation based on the following conditions;

- the accommodation is of similar quality,
- in the same suburb,
- for the same lease term.

Bring your written, verifiable qoute to the office and we will beat the price you pay for the accommodation!

Student Accommodation under the spotlight

2010-03-01T18:11:00.001+02:00

Geraldine Connell
28 February 2010

Could tax changes to make student accommodation cheaper be on there way?

One of the interesting VAT proposals in the Budget is a review and possibly an amendment which addresses the shortcomings of the VAT legislation relating to accommodation as either commercial or residential. In particular, student accommodation appears to be the focus of the change.

It is well known that South Africa's insufficient student housing accommodation has reached crisis levels - there are far more students requiring accommodation than can be catered for at present. The Department of Higher Education and Learning is anxious to resolve this problem quickly and is increasing funding for student accommodation. Furthermore, educational institutions are encouraged to provide student accommodation as cheaply as possible.

The VAT Act exempts certain supplies from VAT, such as education, passenger transport by road and the letting out of a dwelling. The purpose of exempting supplies from VAT is to reduce the ultimate cost to the end-user by not charging him VAT. Ironically, such a mechanism may sometimes not actually reduce the cost to the end user since the VAT incurred by the supplier becomes a cost and is ultimately on-charged to the end user. So for example, the VAT incurred on acquiring a flat cannot be claimed by the person who lets out that flat as a dwelling.

On the other hand, commercial accommodation in a flat which is supplied together with so-called 'domestic goods and services' is subject to 14% VAT if the total annual receipts for that supply exceed R60 000. So one major difference between whether a supply of accommodation is subject to VAT or exempt, depends on whether the accommodation comes with "domestic goods or services". What are these services?

They include any of the following: cleaning and maintenance; electricity, gas, air conditioning or heating; a telephone, television or similar article; furniture and fittings; meals or laundry. If the accommodation is supplied with any of these, it is subject to 14% VAT.

A "dwelling" is defined as any place used primarily as a natural person's place of residence. The letting of such a place is exempt from VAT provided that no domestic goods and services are provided and that the accommodation is provided on a semi-permanent basis, much like acquiring a home. Confusion could arise here as a result of the fact that a "dwelling" is defined to include fixtures and fittings that belong to it. Arguably, this could alter the tax treatment of the supply of the dwelling since it would also fall within the definition of commercial accommodation with domestic goods and services if the R60 000 income threshold were achieved.

On the surface, it appears that charging VAT on accommodation will make it more expensive for students, but this is not necessarily the case. Not only can the landlord claim back all the VAT on the capital and running costs thereby reducing the overheads, but the VAT Act gives a further concession. If the accommodation is provided for periods of more than 28 days, VAT is only payable on 60% of the all-inclusive charge for the accommodation and the domestic goods and services. The reason that only part of the value of such accommodation is taxed where an occupant stays longer than 28 days, is to place people living in commercial accommodation on a long-term basis on a similar footing to those renting ordinary domestic dwellings. Those living in commercial accommodation should not be paying materially more VAT on their basic accommodation than their residential counterparts.

It will be interesting to see whether the VAT law amendments increase the ambit of the exempt supplies in an attempt to make student accommodation cheaper. Detailed calculations should be done to assess whether exemption from VAT really does lower the price of accommodation or not.

*Geraldine Connell is from Deloitte

Commune Policy grace period deadline looms

2010-02-01T17:12:00.001+02:00

By Thuli Malinga: Northcliff Melville Times

Week ending 29 January 2010

The grace period for the new commune policy which started in August last year is coming to an end and slumlords who continue operating illegally will have to face the law come next month.

The new commune policy was started as a result of the continuing conflict between residents and commune residents.

Some of the concerns raised by the community included noise problems resulting from regular partying by students, overcrowded dwellings and the alteration of the suburbs character in some of the properties.

In order to regulate such issues city council proposed a new policy where commune owners would have to adhere to the following:

There should be a maximum of 10 tenants per commune including the caretaker.

There should be not more than two people in any double bedroom.

Provision shall be made for a common room or rooms and kitchens in the commune.

There should be one bathroom per four tenants

The owner or caretaker of the commune should permanently reside on the property for management purposes and accountability.

Commune management should ensure that a compulsory A3 sign is placed on the front boundary of the property.

This sign should have a 24- hour telephone and email address for residents to contact the manager.

City council has warned that compliance of these by-laws will be monitored by a task team. This includes development management, environmental health, Saps, Johannesburg Metropolitan Police Department, councilors, student accommodation forums and residents associations.

They will also have partnerships with tertiary institutions alike. More information on the commune policy can be obtained from the City of Johannesburg website.

Luxury student digs prove a lucrative investment

2009-12-05T18:29:00.002+02:00

From The Times December 3, 2009
Kaya Burgess

It will loom like a razor blade above the City, but when the 33-storey tower block opens next year, it will be tapping into a very different — and very profitable — market to the banks that it will overlook.

Student accommodation is booming. Rentals have proved to be one of the few recession-proof areas of the property market, rising despite the general economic downturn, and Blackstone, the world’s largest private equity company, is among those aiming for a slice of the pie.

Next summer it will open Nido Spitalfields, the second in its portfolio of large-scale, high-end student digs in the capital. The building near Liverpool Street, in the City of London, will open its doors to 1,200 students in time for the 2010-11 academic year.

“The credit crunch really hasn’t hit the student accommodation market,” Maureen McDermott, manager of European student accommodation for Blackstone, said. “We’ve had great success with keeping our building in King’s Cross occupied, and are even planning to open the Spitalfields building a month or so earlier than planned.”

Stuart Grant, a managing director at Blackstone who is overseeing the £250 million project, said: “There are a growing number of students in London and a limitation on the number of beds provided by the private sector or universities. There are more than 260,000 students in London, but only about 45,000 beds. When there is that chronic supplydemand imbalance, it means that as a sector it’s an interesting investment opportunity.”

The students’ pockets will have to be deep enough to afford the £260 per week being asked for the ensuite rooms set in spacious apartments over 33 floors.

“The Nido offer is focused mainly on foreign students, Mr Grant said. “So our customer, in my mind, is not only the student, but also the parent in America or China who is willing to pay up for our product, offering safety, security and good amenities in a central location.”

The New York-based Blackstone knows the development’s area well: the 105-metre skyscraper will overlook Broadgate, the office complex that is half-owned by the private equity fund. On site yesterday, construction workers teetered amid the wind and rain to keep the downpour from seeping into the unfinished building, where a number of showrooms stand ready as an example of the clean-cut luxury that will be awaiting students. Designed by TP Bennett, the building will offer its residents catering areas, a gym, WiFi internet and state-of-the-art mod-cons in all rooms. Where lorries and vans rolled in yesterday will be a lobby with underfloor heating, a games area and a café, paid for with keycards that alert staff if a student has not been in (or out) of their room for a long period.

On Pentonville Road near King’s Cross, Blackstone’s first Nido building — nido means nest in Spanish — is already home to about 900 students from 85 nationalities, 40 per cent of whom are from the United States.

Three years ago Blackstone moved from snapping up traditional real estate and began buying operating real estate such as shopping malls and residences.

Planning permission has been granted for Blackstone to begin work on a third student site in Notting Hill, West London, which would open to 272 students in early 2011.

Corporates squeeze market for private student landlords - UK

2009-12-03T09:05:00.000+02:00

Posted on December 1st, 2009 by steve

Institutional investors are deserting the commercial property sector to pump hundreds of millions in to student housing investments.

Fund managers see student letting as more stable than commercial letting as the double risk of offering incentives to tenants and the chance a tenant may go out of business do not apply to students.

HMO landlords under pressure

Private student landlords are coming under pressure from two sides now – councils stepping up regulatory requirements and licensing costs on HMOs (houses in multiple occupation) and big corporate landlords with the financial clout to house hundreds of students in university towns and cities.

The move by institutional investors is confirmed by the UK’s largest student room provider UNITE, a public listed company that has £325 million to invest in the sector – with £133 million already raised by institutions with another £23 million pledged.

The company also said like-for-like rental growth increased to 9.7% between July 1 and November 18 2009.

Students pay corporates millions in rent

UNITE has a portfolio of student accommodation valued at £877 million at the end of September, and this is expected to grow to more than £1 billion. The company houses 39,000 students in 126 properties in 33 towns and cities across the UK.

Another large student housing investor, University Partnerships Programme (UPP) has signed off a £115 million student housing deal with the University of Nottingham.

UPP has committed to refurbishing 850 rooms, providing students with affordable, high quality accommodation.

This major deal follows UPP’s recent £133m transaction with the University of Exeter.

Through these two transactions, UPP has put £250 million of new private investment, including institutional funds, into the higher education sector in less than six weeks.

UPP expects to provide accommodation for 35,000 students by 2012. Currently, UPP has 18,000 rooms for students paying £85 million a year in rent.