Student 02

Investment strategy

Investment in purpose built student accommodation, primarily in and around London or where there is a signification supply / demand imbalance.

Mesh

Dividend income

Investment objective is to provide shareholders with regular, sustainable long-term dividends with inflation-linked characteristics.

Student 03

Capital appreciation

Aim is to provide modest capital appreciation over the long term.

Student 01

Portfolio quality

Focus is on high-quality, modern, private student residential accommodation and teaching facilities for students studying at leading academic institutions.

Introducing GCP Student

The market

1 Ucas Student Numbers 300418

Student accommodation supply & demand

Demand for higher education outstripped place by c.170,000 places in 2017. Growth in student numbers has been driven by international students over the past 10 years.

2 Transaction Volumes

Sector fundamentals - capital markets

Student accommodation is a now a mainstream asset class with sophisticated international investors and deep transaction volumes (c.£7.3bn in the last two years). Student accommodation yields have exhibited far lower volatility than commercial property particularly in times of economic distress owing to underlying demand for higher education.

4 Rental Growth In Pbsa 3

Sector fundamentals - rental growth

National rental growth in student accommodation has outstripped inflation consistently over the last 20 years. GCP Student Livings rental growth has outstripped both RPI and the national average since IPO most likely due to the strength of the supply demand imbalance in the London market as well as its competitive room pricing proposition.

3 Student Accomodation Supply And Demand In London 2017

The London advantage

There is a structural shortfall of student accommodation in London. Supply is limited by high alternative use land values, a difficult planning environment and the introduction of planning levies. Demand continues to grow driven by London’s depth of high quality universities, London and the south east make up 35% of the entire UK student population.

Graph5

The importance of international students

The UK is the second most important market for international students with a disproportionately high number compared with the US on a per capita basis. The primary drivers of this market share is the cost of a degree in the UK which is considerably cheaper than the US, the quality of UK Higher Education Institutions and London’s geographic position

Investment Manager

The Investment manager to GCP Student is Gravis Capital Management Ltd. The Gravis team has worked together over many years to build both investment philosophy and a practical track record of performance. More information on Gravis can be found on their website www.graviscapital.com.

The co-lead managers from Gravis are Tom Ward and Nick Barker.

Nick Barker

Nick Barker

Director

Nick Barker

Nick Barker

Director

Nick is a director of Gravis. He is the co-lead manager of the GCP Student.

Nick joined Gravis from Schroders where he worked for eight years, ultimately as head of alternatives for the real estate business and a member of the fund management team for the Schroder UK Real Estate Fund. Nick has over sixteen years investment experience having previously also worked at Cushman & Wakefield and JLL.

Nick graduated from the University of Reading with a degree in Investment & Finance in Property. Nick is also a Member of the Royal Institution of Chartered Surveyors.

+44 (0)20 3405 8521
nick.barker@graviscapital.com

Tom Ward

Tom Ward

Director, founder

Tom Ward

Tom Ward

Director, founder

Tom is a director of Gravis, co-founding the company in 2008. He's Head of Alternative Property and launched GCP Student Living plc

After qualifying as an ACA with Andersen, he moved on to roles with E&Y and DTZ Corporate Finance specialising in student accommodation and education assets.

At Gravis, Tom co-founded Scape Student Living and acts as COO. Over the last 7 years, he’s has been responsible for the roll-out of c.10,000 beds across London and Australia.

Tom graduated with a degree in Economics from the University of Birmingham and is a qualified FCA.

+44 (0)20 3405 8506
tom.ward@graviscapital.com