Value for Investors
How Does The Fund Create Value For Investors?
The Victus European Student Accommodation Fund offers investors access to the robust student sector with diversification of assets across Europe. The performance of the Fund is generated from 4 specific areas:
- Rental income from the assets
- Annual increase in rental income
- Capital appreciation of the assets
- Development profit
When the Fund acquires an asset the independent Board of Directors categorise the asset into 1 of 3 areas : ‘Development’, ‘Refurbishment’ or ‘Operational’.
These are assets that are purchased with full planning permission to develop into fully operational student accommodation. These assets are divided into 3 stages of development:
- Land purchase – The land is purchased, with planning permission, at a discount to open market value. The profit made on acquisition is then fed through to the Fund.
- Construction- The student property is then developed with regular valuations being provided to the Fund by established, specialist student accommodation valuation agents. Growth in the value of the development is reflected in the share price.
- Operational – Once the property is fully let it is likely that there will be a further uplift in value as verified by the independent valuations agents.
These are properties that are purchased for the Fund with a view to being swiftly refurbished and then becoming operational:
- These could be existing students, residential or commercial sites in mainland Europe that are ideally located near a University and where planning is available.
- The assets here are generally purchased at a discount to market value and require internal overhaul to create modern student accommodation.
- The Fund share price will increase from buying a low cost asset that can be converted to modern student accommodation at relatively low cost, adding considerable value to the property.
These are assets that are purchased by the Fund that are fully operational and creating an income:
- The Fund benefits from the ongoing income system.
- There may be some minor refurbishments that need to take place, however this can be completed during academic breaks in the year so as to avoid any disruption to the income stream. The Fund will then benefit from these refurbishments by increasing the rental income.
- The Fund also benefits from any development of new areas of the existing asset (roof space, basements etc.) increasing the capital value and rental income.