The student sector’s success has been driven by significant demand from the students and the subsequent performance as an asset class for investors. Students are now more demanding on the better standard of accommodation and amenities, and despite significant volumes of new developments in the sector the supply still appears to be falling behind the demand. For investors they’ve seen the student accommodation market be less sensitive to economic downturns as student intake can often increase if the job market struggles during a downturn. As a result, many see it as an essential part of a diverse property investment strategy.
As student numbers are growing faster than supply the asset class remains a top-4 sector prospect for investment in 2020.
Student House Gldani
Gldani is the biggest district in Tbilisi and most beautiful place with its green areas. Student House Gldani will be the largest campus to accommodate a total of 900 students in the area. The campus terrace is presented with 10,000 square meters of recreational space, which will house both indoor and outdoor gyms, a stadium, a bike path, tennis courts and a swimming pool. The Student House project is unique in that it offers luxurious living design and provides all the student’s needs. The Student House residence strives to ensure the comfort of each student, to offer students practical solutions to everyday challenges, and helps them allocate more time for studying. In addition, Student Houses will include sports, health and recreation areas, fast food restaurants, entertainment centers and learning spaces. Shops, medical services and laundry facilities will also be available on the premises and each student will enjoy shuttle bus transportation to the universities.
-Financial source of the project: company capital, investments
-65 sq.m. is registered on investor’s name
Student House LLC is Georgia-based student property investment company. Student House is an industry leader in student housing in Georgia, which provides property management, consulting, acquisitions, and development with the goal of creating successful communities. Student House project is the initiation and cooperation of OTI Real Estate and Tbilisi Builders Group.
OTI Estate is a leader in residence life with our Tbilisi Builders Group. By focusing on providing the students with living, learning, entertainment and career experiences through our residence life team, we will achieve exceptional portfolio performance in Student House Project. As owners, SH LLC remains a highly focused management company with expertise and proven processes for all aspects of property management from revenue management and property operations to branding, crisis, and reputation management.
OTI Estate management has been working mainly in real estate field more than 15 years. Our scope includes providing business services to the investors. Student House is open for the investors who want to enter a new asset class – Student Housing. We work in real estate market mainly in Georgia because Georgian real estate market increased over the years. Apart of Student House project we have the active projects in twelve different branches around the world.
Student House project is a considerable potential to develop a new asset class in Georgia – accommodation for students with the modern services and amenities. The demand for this type of accommodation is already high and according to the educational system development there are projects that it will grow in the upcoming years and make the double figure.
This is one of the main reasons why this investment project is highly supported by the universities in Georgia and theMinistry of Education, Science, Culture and Sport. Student housing has transformed itself from an appealing niche to be rerecognized independent asset class. In 2019, student housing was on the radar of the top global investors in real estate, resulting in 105 transactions worth over €9bn continental Europe and the UK combined.
As student numbers are growing faster than supply, the asset class remains a top-4 sector prospect for investments in 2020.The student housing asset class has been maturing to a stage of transparency, returns and liquidity that offer sufficient security and confidence for many private and institutional investors.
Student property is a very profitable asset class giving robust returns: according to a report by Savills, investment in student accommodation is forecast to rise by 17% this year. An increase in investment from last year to £5.3bn in purpose-built student housing is expected. And furthermore, student property yields the best for Buy to Let investments.
- A politically stable investment destination
- Efficient, pro-business and corruption-free government
- Free trade agreement with 2.3 billion markets
- Competitive cost of labor and energy
- Entry gate between Europe and Asia
- Simple, low and efficient taxation
- 6th Easiest country to do business in (World Bank’s 2019)
- 6th Safest country in the world (Numbeo's Crime Index, 2019)
With over 150.000 students studying at Georgian universities, international students from 87 different countries, 56 universities and 60 professional colleges, there has never been a better time to get involved in student property investments. SH builds highly desirable student accommodation in the most demanded locations. This ensures the best possible yield for our investors, who can expect to see an annual return on investment of as much as 10% for 10 years’ investment.
Source: National Center for Education Statistics, 2018 Digest of Education Statistics and Axiometrics, 2019 Student Housing Supply & Demand Model.
Student House build the student housing at the sought-after locations, with high student density and number of Universities in vicinity of the campus. Locations – Tbilisi (Gldani, Vake, Saburtalo) and Batumi. Active Investment projects – Gldani and Batumi. Perspective investment projects – Vake, Saburtalo
Total investment for student housing - $160.000.000
Financial source of the project: company capital, investments
The investment transaction can be in several tranches. Minimum 30% percent must be transferred by the investor.
Student House LLC provides property and equity management, which is a suitable and convenient investment for foreign institutional and private investors. Student housing supplies a reliable cash flow stream. Enjoy ongoing passive income from a totally hands-off investment, Student House investing remains one of the best ways to ensure that you will always have access to stable income yearly.
Experienced developer and management. Company with a successful track record. We help to deliver purpose-built student housing with maximized rental and occupancy through market analysis and feasibility studies, design and development consulting, initial marketing and lease-up services, and ongoing management. Through experience, integrity, passion, and dedication, Student House in Georgia creates outstanding student living experience, which in turn results in the financial success of Student House investors and its partners.
Purpose Build Student Accommodation is housing built specifically by private developers for students to live in, usually taking the form of cluster flats (many rooms with shared kitchen and living areas), or private studios, both with attached leisure facilities and these days 'cool' added bonuses like cinemas, gyms, and games rooms.