Can investors make money in student housing?
With a shortage of between 250,000 and 750,000 beds for students, Inkunzi’s listing is coming right on time
It will be interesting to see what level of support the JSE’s new property contender, Inkunzi Student Accommodation Fund, garners for its proposed R1.2bn prelisting equity raise later this year. Inkunzi was founded earlier this year by chartered accountant Kameel Keshav — former CFO at Rebosis Property Fund — and Owen Nkomo, who spent 12 years as a securities trader and portfolio manger at JPMorgan, Deutsche Bank and Citigroup before he founded Inkunzi Wealth Group in 2012. The equity raise won’t be easy. The student housing venture of Keshav and Nkomo will not only be introducing a fairly unknown asset class to JSE punters, but it will also have to compete with a growing number of offshore property counters jostling for investors’ capital. This year the SA listed property sector has already tapped the market for close on R35bn — already R3bn more than was raised in 2016 — through various rights issues and book builds, according to Stanlib. The bulk of the capital raised this year h...
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