King Sturge expert on student housing speaks at Dallas Property Conference
18 June 2008
The world’s largest team of property advisors in student accommodation
The West-based leader of the World’s largest team of property advisors in student accommodation has returned from a trip to address a USA conference of almost 600 delegates.
Philip Hillman, head of the Bristol-based student accommodation team at international property consultants, King Sturge, was a speaker at the national conference in Dallas, Texas.
575 delegates crowded into the convention centre - demonstrating the strong interest across the world in the student housing sector - where Mr Hillman was asked to speak on how the new market for student housing has developed in the UK and Europe.
“At a time when the USA’s property industry has been rocked by its exposure to the sub-prime collapse, they have recognised that the student accommodation market is more resilient to recessionary pressures”, said Mr Hillman.
“Delegates wanted to understand the difference between the US student housing market and the experience in the UK and European markets. While easier access to land in the US means that average student housing is on low-rise developments, valued at about $37,000 per bedroom, UK student developments are commonly high-rise, high density schemes in city centres commanding values of $100,000 per bedroom in the provinces, and far more in London”, said Mr Hillman.
The Texas convention delegates were also interested in UK student housing initiatives and innovations.
“US property companies were intrigued by the modular construction initiative of, amongst others, Bristol-based Unite – a UK leader in providing student housing. This concept, of factory-building accommodation units, is already common in the USA for motels: but there are few examples of it being used for student accommodation in the ‘States”, said Mr Hillman.
His Bristol based team at King Sturge is already advising US investors on major UK student housing schemes, including a recently opened 900 bed development in London’s Kings Cross and a 1,300 bed, 32-storey development close to London’s Liverpool Street station.
This 15-strong Bristol-based team is now thought to be the world’s largest team of student accommodation specialists, and now advise most of the main UK & European private sector developers, operators and investors, as well as a growing number of Universities. Recent international clients have included The Government of Singapore, US private equity house Blackstone, and Japanese investors.
“We are also advising on a number of proposed student schemes on mainland Europe, focussing on the major University cities, where many investors see great potential.”
The team recently published a 48 page research paper entitled ‘Student Accommodation in Western Europe’ - highlighting the increasingly global nature of the student housing market.
