.......Non-Executive Director - serving investors in and lenders to infrastructure projects and businesses

Student Accommodation turnaround: facing the investment challenge with Infraquest. £2.5bn is projected to be invested in the UK market in 2014 (equivalent to 45,000 new rooms). Yet the market is suffering from over-supply of purpose built accommodation in some areas.  Although the fall in admissions of 7.4% in 2012/13 following the increase in tuition fees has been largely recovered since, new accommodation has continued to come on-line with an additional 80,000 new rooms being added in the same period.  So what are the keys to investment success in the future?  Follow the student flight to quality!  Invest on-campus in partnership with high grade universities, secure minimum take-ups through the nominations agreement, ensure build quality exceeds that offered by the competition and actively manage the asset with experienced, knowledgeable management.  But what if you have an existing under-performing asset?  Current low interest rates and institutional appetite for infrastructure assets create refinancing opportunities.  There is often scope to renegotiate lease and nomination agreements, revalue and re-profile lifecycle costs, market test the operating contracts, target the post-graduate student market and reallocate units to alternative uses.  In conclusion, these are not passive investments, they require active and expert management to drive value and secure the investment case.  Photos are of Therese House, Barbican, Brunel University and INTO, University of  East Anglia.  Call us to find out how we may help you, from deal structuring and negotiation, post preferred bidder value improvement, asset management, turnaround, refinancing and exit management.