The listing of the first student accommodation group, Inkunzi, should encourage more companies focusing on student housing to go public.
There is strong appetite for real estate companies that offer long-term growth prospects in a market where other traditional property types look saturated.
Inkunzi Student Accommodation Fund will be the JSE’s first specialist student housing real estate investment trust (Reit) when it lists in September. At listing, Inkunzi’s R2.25bn portfolio will comprise 12 high-quality assets housing 6,500 single students, mostly within walking distance from the University of Pretoria, the University of Johannesburg, Vaal University of Technology, North West University and the Nelson Mandela Metropolitan University in Port Elizabeth. "We’re excited about this listing as it addresses one of SA’s key issues of student accommodation as well as driving a strong socioeconomic aspect in having a 25%-30% direct black ownership. Inkunzi brings something unique and fresh to the listed real estate space, offering investors direct access to a countercyclical asset class," said CEO Kameel Keshav. There is a shortfall of about 250,000 student beds at universities in SA, according to the Department of Higher Education and Training. This rose to about 750,000 bed...
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