Student accommodation

Student accommodation

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Student accommodation
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Education
Education Infrastructure
Business Model Description

Deliver real estate development projects focused on creating and operating affordable student housing facilities.

Expected Impact

Enhances access to quality education especially for marginalised communities.

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
5% - 10% (in IRR)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Long Term (10+ years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
Student accommodation demand for 500,000 beds in the next 5 years.
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
USD 1 million - USD 10 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Gender Equality (SDG 5)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Climate Action (SDG 13)
Sector Sources
  • 1) Amnesty International (2020). Broken and Unequal: The State of Education in South Africa. 2) Mbarathi, N., Mthembu, M. and Diga, K. (2016), Early Childhood Development and South Africa: A literature review. https://researchspace.ukzn.ac.za/handle/10413/13338 3) Ilifa Labantwana and Kago Ya Bana (2018). A plan to achieve Universal Coverage of Early Childhood Development Services by 2030 4) Organization for Economic Cooperation and Development (2019). South Africa - overview of the education system. 5) International Bank for Reconstruction and Development (2019). South Africa Economic Update: Tertiary Education Enrolments Must Rise.
  • 6) Mkhwanazi, N., Makusha, T., Blackie, D., Manderson, L., Hall, K. and Huijbregts, M. (2018). South African Child Gauge-UCT. Negotiating the care of children and support for caregivers. 7) The Conversation (2018). Proper child care helps poor working women – and it can boost economies. https://theconversation.com/proper-child-care-helps-poor-working-women-and-it-can-boost-economies-92935
IOA Sources
  • 8) Parliamentary Monitoring Group (2020). Student Housing Infrastructure Programme (SHIP); with Minister. https://pmg.org.za/committee-meeting/29773/ 9) Estate Living (2018). Student Accommodation - A Robust Investment Opportunity. https://www.estate-living.co.za/news/student-accommodation-robust-investment-opportunity/ 10) Payi, B. (2020). Dire shortage of student accommodation could worsen. https://www.iol.co.za/news/south-africa/western-cape/dire-shortage-of-student-accommodation-could-worsen-42389997 11) Anderson, A. (2019). Slow growth delays listing of student housing provider. https://respublica.co.za/2019/10/17/slow-growth-delays-listing-of-student-housing-provider/ 12) Parliamentary Monitoring Group (2020). Student Housing Infrastructure Programme (SHIP); with Minister. https://pmg.org.za/committee-meeting/29773/
  • 13) Centre for Affordable Housing Finance in Africa (2019). Housing Investment Landscape South Africa. https://housingfinanceafrica.org/app/uploads/South-Africa-Report-_RSLayout_Final.pdf 14) South African Government (2019). South Africa Voluntary National Review: Empowering people and ensuring inclusiveness and equality. https://sustainabledevelopment.un.org/content/documents/23402RSA_Voluntary_National_Review_Report___The_Final_24_July_2019.pdf 15) United Nations International Children's Emergency Fund. Education - South Africa. https://www.unicef.org/southafrica/education. 16) Verhoef, B. and Perrie, D. (2020). “Affordable Student Housing in South Africa: Business and Funding Risks.” Orbitt Capital (blog). April 7, 2020. https://orbitt.capital/affordable-student-housing-in-south-africa-business-and-funding-risks/ 17) Statistics South Africa (2019). Sustainable Development Goals: Country Report 2019 - South Africa. http://www.statssa.gov.za/MDG/SDGs_Country_Report_2019_South_Africa.pdf 18) Rawson Property Group. Investing in Student Accommodation: Pros and Cons. https://blog.rawson.co.za/the-recent-protests-at-universities-and-colleges-across-sa-have-caused-many-to-question-the-wisdom-of-investing-in-student-accommodation.