Dear Readers,<\/strong><\/p>\n a few weeks ago the winter term 2013\/14 started. In the past The high demand has attracted the atten\u00adtion of develo\u00adpers and Inter\u00adna\u00adtional Campus has issued the first Student Housing fund Kind regards<\/p>\n Horst Lieder<\/strong><\/p>\n CEO Inter\u00adna\u00adtional Campus AG<\/p>\n \u200d<\/p>\n The student housing market is not \u200d<\/p>\n Accor\u00adding to the German National Associa\u00adtion for Student Affairs (Deutsches Studen\u00adten\u00adwerk), at the start of the winter term 2013\/14 there were more than 50,000 students on the waiting lists. At the same time there are only about 230,000 subsi\u00addized places in halls of residence. There are appro\u00adxi\u00adm\u00adately another further 10,000 places under construc\u00adtion or in the planning stage. The student associa\u00adtions are thus provi\u00adding less than 10% of student housing. The student associa\u00adtions (Studen\u00adten\u00adwerke) predo\u00admi\u00adnantly provide accom\u00admo\u00adda\u00adtion for those depen\u00addent on publicly-funded accom\u00admo\u00adda\u00adtion.<\/p>\n \u200d<\/p>\n In the private housing market rents vary accor\u00adding to region, immediate location, size, fit-out, market segment \u2013 and of course the attrac\u00adti\u00adve\u00adness of the product brand. Monthly apart\u00adment rentals in attrac\u00adtive univer\u00adsity towns range from \u20ac350 \u2013 600.<\/p>\n \u200d<\/p>\n In Macro-scoring German Student Housing Market from October 2013 the research experts from bulwi\u00aden\u00adgesa evaluated all German univer\u00adsity cities with more than 7,000 students in a scoring. Accor\u00adding to the analysis of 18 varia\u00adbles from the catego\u00adries, status quo, history and perspec\u00adtive, 25 out of 76 towns provide very good condi\u00adtions for invest\u00adment in student housing. The drivers of a high long-term demand are the incre\u00adasing propor\u00adtion of those entitled to study as well as the incre\u00adasing number of univer\u00adsity entrants starting their studies. The first five places, with an excel\u00adlent reward\/risk ratio, are Munich (80.9%), Hanover (77%), Cologne (75%), Berlin (73.8%) and Frank\u00adfurt (73.6%). bulwi\u00aden\u00adgesa considers student housing to be a profi\u00adtable invest\u00adment product, which can achieve a long-term and secure rate of return of 5 \u2013 6%.<\/p>\n \u200d<\/p>\n In their study on Spotlight European Student Housing, the inter\u00adna\u00adtional property services provider Savills, came to the conclu\u00adsion: \u201cThe Student housing invest\u00adment market matures\u201d. Inves\u00adtors looking for a return found student housing provided a stable cash flow. The returns in prime locations reach about 5.5% in Germany, Great Britain and France. Rising incomes, living standards and rapidly incre\u00adasing numbers of foreign students ensure that there is a signi\u00adfi\u00adcant group of students with very high expec\u00adta\u00adtions for their accom\u00admo\u00adda\u00adtion. In this regard Savills empha\u00adsise that, for the most part, there are no tuition fees anymore in Germany.<\/p>\n \u200d<\/p>\n In the ranking Tight Student Housing markets in Germany, the Berlin property developer GBI AG analyses 81 univer\u00adsity sites with 22 varia\u00adbles. Today 25 attrac\u00adtive cities and univer\u00adsity towns have already very tight student housing markets \u2013 also in the next decades these cities will have an enormous demand for student accom\u00admo\u00adda\u00adtions. Beside metro\u00adpo\u00adlises like Munich, Hamburg and Frank\u00adfurt, there is a very tight housing market for students e.g. in Bremen, Freiburg and Hanover. Study: Invest in Student Housing In their study Invest\u00adment in Student Housing in May 2013, Bouwfonds Invest\u00adment Manage\u00adment, an issuing house belon\u00adging to the Dutch Rabobank Group, estimated the total invest\u00adment in Germany, France, Great Britain and the Nether\u00adlands as being around \u20ac300 bn (with an average value of \u20ac45,000 per room). 48% of all inter\u00adna\u00adtional students come to Europe to study. Germany is one of the top five desti\u00adna\u00adtions for students in the world. Here there are now more than 600 master\u2019s courses offered in the English language. Because student apart\u00adments offer\u00adat\u00adtrac\u00adtive returns with a low risk profile, student housing is to be an attrac\u00adtive asset class which can provide solid capital growth for an existing portfolio.<\/p>\n \u200d<\/p>\n Inter\u00adna\u00adtional Campus AG has launched an invest\u00adment trust \u201cInter\u00adna\u00adtional Campus Student I SCA\u201d based in Luxem\u00adbourg for the expan\u00adsion of the platform. In a first closing we have already acquired \u20ac50 m of equity capital. That puts us directly into the invest\u00adment phase. The planned equity capital volume is \u20ac250 \u2013 300 m, with which we will be able to expand a portfolio with a total volume of \u20ac600 \u2013 800 m.<\/p>\n The parti\u00adci\u00adpa\u00adtion offer of the fund is directed towards profes\u00adsional inves\u00adtors who wish to invest a minimum of \u20ac10 m within the context of a private place\u00adment. The expected term is five to seven years \u2013 with a target return on equity capital (IRR) amoun\u00adting to 14 per cent.<\/p>\n \u200d<\/p>\n Currently Inter\u00adna\u00adtional Campus is provi\u00adding more than 2,200 student apart\u00adments for the fund in seven German cities, for example in Frank\u00adfurt, Berlin and Hanover. Further projects are already in the pipeline and we are constantly asses\u00adsing further locations to expand our portfolio. Our objec\u00adtive is to be one of the leading provi\u00adders of student housing in Germany within five years.<\/p>\n \u200d<\/p>\n n Germany today there are eleven \u201cElite Univer\u00adsi\u00adties\u201d, which receive additional public funding for their research and future develo\u00adp\u00adment plans. Among the cities with elite univer\u00adsi\u00adties are Bremen and Berlin. <\/p>\n In their Market Report on Student Housing from April 2013, the property consul\u00adtancy CBRE estimate that there is a current demand for 47,000 additional student apart\u00adments in the upper segment alone.<\/p>\n There are around 3.375 million people living in Berlin (December 2012). Alone in 2012 the popula\u00adtion increased by 41,324 \u2013 while this year saw only 4,500 residen\u00adtial units being completed. In the capital there<\/p>\n are more than 160,000 students atten\u00adding 42 univer\u00adsi\u00adties. <\/p>\n The Federal Statis\u00adtical Office (Statis\u00adti\u00adsches Bundesamt) has estab\u00adlished, that 41 per cent of all German house\u00adholds consist of only one person \u2013 whereas in 1991 it was still only 34 per cent. In cities like Berlin or Frank\u00adfurt<\/p>\n the propor\u00adtion of single-person house\u00adholds is over 50 per cent.<\/p>\n Accor\u00adding to the 20th Social Survey, published in summer 2013 by the German National Associa\u00adtion for Student Affairs (Deutsche Studen\u00adten\u00adwerke), students in Germany have an average disposable monthly income of \u20ac864. Accor\u00adding to the survey 26% of students have a monthly income of over \u20ac1,000, but the study is based on data from 2010-12. We assume that this propor\u00adtion is probably now about 30% as incomes and rents have risen to some extent. In the past two years, many German cities have seen rents rise by 5\u201310% per year. Accor\u00adding to the survey, between 2010 and 2012 about 21% of students were paying more than \u20ac350 for rent and ancil\u00adlary costs. The average rent was \u20ac298. 62% of all student are on full-time first degree courses, are living away from home and are single.<\/p>\n Empirica has estab\u00adlished that the group of 25- to 30-year-olds is concen\u00adt\u00adra\u00adting in certain selected cities to a greater extent than in the past. The propor\u00adtion of young people is now more than 30% above the German average in 18 German cities, inclu\u00adding Freiburg, Leipzig, Jena, Munich and Darmstadt.<\/p>\n Accor\u00adding to the Academic Ranking of World Univer\u00adsi\u00adties 2013, there are four German univer\u00adsi\u00adties among the 100 best of the world: TU Munich and the univer\u00adsi\u00adties of Heidel\u00adberg, Munich and Freiburg.<\/p>\n In 2012 there were a total of 265,000 regis\u00adtered foreign students in Germany. By 2020 the number of inter\u00adna\u00adtional students is expected to rise to 300,000.<\/p>\n Inter\u00adna\u00adtional Campus will be discus\u00adsing the subject of student housing with numerous experts at the German GRI in Frank\u00adfurt on 7\u20138 May 2014.<\/p>\n","protected":false},"excerpt":{"rendered":" a few weeks ago the winter term 2013\/14 started. In the past year alone, there were 2.5 million students in German univer\u00adsi\u00adties \u2013 and the numbers are incre\u00adasing. The research consul\u00adtancy bulwi\u00aden\u00adgesa estimates that by 2015 there will be about 2.8 million students.<\/p>\n","protected":false},"author":1,"featured_media":731,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"wp_typography_post_enhancements_disabled":false,"footnotes":""},"categories":[58,10],"tags":[],"class_list":["post-1724","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-germany","category-news"],"acf":[],"_links":{"self":[{"href":"https:\/\/ic-campus.com\/en\/wp-json\/wp\/v2\/posts\/1724","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ic-campus.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ic-campus.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ic-campus.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ic-campus.com\/en\/wp-json\/wp\/v2\/comments?post=1724"}],"version-history":[{"count":0,"href":"https:\/\/ic-campus.com\/en\/wp-json\/wp\/v2\/posts\/1724\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ic-campus.com\/en\/wp-json\/wp\/v2\/media\/731"}],"wp:attachment":[{"href":"https:\/\/ic-campus.com\/en\/wp-json\/wp\/v2\/media?parent=1724"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ic-campus.com\/en\/wp-json\/wp\/v2\/categories?post=1724"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ic-campus.com\/en\/wp-json\/wp\/v2\/tags?post=1724"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\nyear alone, there were 2.5 million students in German
\nuniver\u00adsi\u00adties \u2013 and the numbers are incre\u00adasing. The research
\nconsul\u00adtancy bulwi\u00aden\u00adgesa estimates that by 2015 there will be
\nabout 2.8 million students. Small-scale residen\u00adtial
\naccom\u00admo\u00adda\u00adtion in attrac\u00adtive towns is in parti\u00adcu\u00adlarly short
\nsupply. It is precisely in these cities where students are
\ncompe\u00adting for one- or two-room apart\u00adments with mostly more
\naffluent young profes\u00adsio\u00adnals, commuters, and single people.\n<\/p>\n
\ninves\u00adtors with a range of diffe\u00adrent concepts, strate\u00adgies and
\nproducts. While student housing in Germany is by no means yet
\nan asset class in its own right, like residen\u00adtial, offices or hotel
\nproperty, the market and demand for it are, however,
\ndevelo\u00adping. In times of decli\u00adning returns on tradi\u00adtional real
\nestate invest\u00adments, insti\u00adtu\u00adtional inves\u00adtors are searching for
\nalter\u00adna\u00adtives which combine reliable cash flows with higher actual returns than the returns antici\u00adpated by the market.<\/p>\n
\nespeci\u00adally for these inves\u00adtors. We are currently provi\u00adding more
\nthan 2,400 apart\u00adments as a capital invest\u00adment and for the fund
\nin eight locations. Further projects for the expan\u00adsion of our
\nportfolio are in the pipeline. You can find out more about the
\nfund in this edition of our Newsletter.\n<\/p>\nOverview of student
\nhousing market in
\nwinter term 2013\/14
\n<\/h3>\n
\nonly very tight in German
\nmetro\u00adpo\u00adlises like Hamburg, Berlin
\nand Frank\u00adfurt, but also in
\nnumerous smaller univer\u00adsity
\ntowns like Freiburg, Hanover or
\nDarmstadt. There are several
\nnewspaper reports of emergency
\naccom\u00admo\u00adda\u00adtion, bizarre flatmate \u201cauditions\u201d and run-down rooms
\nfar from the univer\u00adsity. The
\nenormous demand for small-scale
\naccom\u00admo\u00adda\u00adtion from students is
\nalso boosted by demand from
\nother groups\u2014for example, young
\nprofes\u00adsio\u00adnals, commuters or
\nsingles.<\/p>\nMany students, little accommodation <\/h4>\n
Current studies of student housing<\/h3>\n
Study: Macro-scoring the student housing market<\/h4>\n
Study: Spotlight European <\/h4>\n
Student Housing<\/h4>\n
Study: Cities with tight Student Housing markets<\/h4>\n
Three questions for Horst Lieder about the student housing fund:<\/h3>\n
International Campus has founded an investment trust; can you tell us more about it? <\/h4>\n
For whom would this be an attractive investment opportunity? <\/h4>\n
What strategy are you pursuing?<\/h4>\n
News<\/h3>\n
Eleven elite universities I<\/h4>\n
CBRE foresees a demand for 47,000 apartments <\/h4>\n
Berlin continues to grow<\/h4>\n
More single-person households<\/h4>\n
\u20ac864 income<\/h4>\n
Young people \u201cswarming\u201d<\/h4>\n
World Universities 2013<\/h4>\n
Germany still attractive<\/h4>\n
Event tip \u2013 IC at GRI<\/h4>\n