Student accommodation fund has potential, but be aware of the risks
Inkunzi Wealth has relaunched its student housing fund Ithubalethu, which aims to provide 20,000 beds over the next 15 years
The department of higher education and training estimates there is a shortfall of approximately 250,000 student accommodation beds in SA. This increases three-fold if you consider the needs of students attending Technical and Vocational Training (TVET) Colleges. The government’s intention to increase tertiary student enrollments to 1.5-million by 2030 will result in a need for student accommodation to almost double over the next decade. Asset management firm Inkunzi Wealth Group believes this makes a good market for investors prepared to put money into funds focused on buying or developing student accommodation. In many developed markets, student accommodation is an established sector of the listed property sector. Inkunzi Wealth has relaunched its student housing fund Ithubalethu, this time inviting the public to invest in the unlisted fund, which will buy real estate specifically aimed at the student market. The fund aims to provide 20,000 beds over the next 15 years. The fund app...
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