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Financing student accommodation - Unlocking your assets, without sacrificing the future

18 May 2022      Matt Sisson, Projects and Membership Manager

The student accommodation market has faced a series of challenges in recent years, including post-Grenfell cladding and safety concerns, increased expectation for quality from students, the requirements of continued Covid protection measures, and competition from private investors keen to cash in.

In addition, universities have had to adapt to the impact of Covid on university life, while adjusting to greater demands on fewer resources across the business. In response many universities have turned to fractional ownership models for their student accommodation, but with mixed results.

In an ideal world, university leaders would be able to find financial solutions that balance the short term needs of the institution without giving up control over assets and campuses for future generations. Within this context, Homelease has created a new approach that starts with the needs of Universities at the centre.

This approach focuses on shared wins, flexibility and managing changing needs over time. Major benefits of the Homelease approach are that it:

  • provides a large cash injection upfront – that can be used for any purpose across the University (net zero / asset upgrades / new developments)
  • helps you balance and drive short, medium, and long-term financial needs
  • is repeatable at the end of the initial term
  • does not require you to sell or offload any of your property / accommodation assets
  • does not bundle income-making assets into long term investment funds
  • allows the option for both parties to walk away at the end of the agreement
  • limits risk on both sides
  • can be set up quickly and at any point in the academic year.

With a team background in consultancy, the Homelease approach is about partnership, with transparency and flexibility at its core. It starts with a discussion and understanding of the institution’s current situation, its financial needs, and its strategy and ambition, before working towards the right solution for the institution.

So, if you are looking to leverage your existing assets, build new ones, or just want to explore options, please get in touch with Ravi Sibal or register for the Time to Talk webinar taking place on the 9th June.



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