UK Conference To Examine Attractiveness Of University Accommodation In REITs

by Philip Morton, Investors Offshore.com

27 June 2006

A conference jointly hosted by Martineau Johnson and Ogier on 12 July will explore some of the opportunities which await sponsors and promoters of REITs, the investment community, and property owners with relevant portfolios, it was announced on Monday.

With student accommodation identified as a potentially attractive asset class, it is thought university landowners could find themselves in demand as a source of property for REIT investment.

"The prospect of an almost guaranteed income stream and few concerns over vacant units make this type of property extremely appealing for investors," explained Enid Armstrong, partner at Martineau Johnson, continuing:

"In conjunction with a suitable fund promoter or sponsor it should be possible for university landowners to set up a REIT into which they can transfer their stock of student accommodation. This would release equity tied up in land and reduce exposure to bank debt whilst providing access to a new source of capital from private investors."

There is also the added benefit of up to 40% tax relief on returns to REIT investors who invest through their SIPPS.

Speakers at the REITs conference will include Rosalind Rowe of PricewaterhouseCoopers who will be outlining the differences between conventional commercial landowners and university landlords and the issues faced by higher education finance directors in planning and funding future accommodation requirements.

James Hunt, director of finance at the University of Leicester will be giving the education sector’s viewpoint, whilst John Styles and Marcus Robertson of international property consultancy Knight Frank, will be speaking from the property market’s perspective, comparing REITs with investment in equities.

The conference will take place at the London Stock Exchange Building.

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