Current location site: Global

The Link at University City
The Link at University City in Pennsylvania offers modern, fully-furnished apartments comprising 251 beds in 126 units across three to five storeys. Students can choose from studios to one- to three-bedroom apartments. Located in the heart of Philadelphia’s University City, the student accommodation asset will serve over 45,000 students at the University of Pennsylvania (UPenn) and Drexel University (DU) which are both within a 10-minute walk away. Philadelphia is the second largest city in the East Coast and the University City is home to prestigious universities, academic research operations, healthcare and life science companies. The student accommodation asset is also a 10-minute walk to key campus buildings and adjacent to uCity Square, a life science and technology hub with retail, residential, clinical, office, and laboratory space. As part of uCity Square’s master plan, an additional 4 million square feet (sq ft) of space will be developed over the next 10 years, growing the development to 6.5 million sq ft.

Occupancy at The Link at University City is expected to pick-up in AY 2022 with the return to in-person classes, on-campus activities, a significant increase in freshmen intake and limited supply of student accommodation assets in the short term.

UPenn is the top Ivy League university in the state and one of the best universities in the world, while DU is one of the top ranked universities in the state. UPenn and DU compete at the USA National Collegiate Athletics Association (NCAA) Division 1 level and UPenn also competes in the Ivy League. The student population at UPenn has grown at a compound annual growth rate (CAGR) of about 0.9% from 2011 to 2019 while enrolment at DU is stable^[11].

Latitude on Hillsborough
The largest student accommodation amongst the four assets, Latitude on Hillsborough serves about 36,000 students at North Carolina State University (NCSU). The stylish and spacious townhome student accommodation has 523 beds across 180 units and students can choose from one- to five-bedroom apartments. The property is situated in Raleigh, one of the fastest-growing cities in the USA. Together with Durham and the town of Chapel Hill, they form the Research Triangle, a leading life science and technology hub anchored by major universities. Latitude on Hillsborough is located about two kilometres (km) west of the NCSU campus. Via Raleigh’s network of well-planned roads, Latitude on Hillsborough is a three-minute drive to the campus. A direct shuttle bus is also available.

For AY 2021, Latitude on Hillsborough is well-leased at 97%, outperforming the market average of 93%. Apart from NCSU, demand could also come from numerous smaller colleges within Raleigh. There is also no upcoming supply of private student accommodation assets which bodes well for the continued demand for Latitude on Hillsborough.

NCSU is the flagship state university of North Carolina and the largest university in both North and South Carolina. One of the best public universities in North Carolina, NCSU is ranked fourth in the state. Its student population has grown consistently at a CAGR of 0.5% from 2011 to 2019 and 98% of its student population are from the USA^[12]. It also has a strong athletics programme, participating in the Atlantic Coast Conference, one of the ‘Power 5’ athletics conferences in the US NCAA.

Uncommon Wilmington
The other student accommodation asset in North Carolina, Uncommon Wilmington has 493 beds across 150 units in a two- to four-storey spacious, resort-style townhome development. Students can choose from one-, two- and four-bedroom apartments. One of the newer student accommodations in the market, Uncommon Wilmington serves about 18,000 students at the University of North Carolina Wilmington (UNCW). Uncommon Wilmington is located about 1.5 km from UNCW, and students can take a three-minute drive to campus or take the direct shuttle bus. Uncommon Wilmington is also within a 10-minute drive to the downtown area with retail amenities.

Uncommon Wilmington is well-leased at 94% for AY 2021. Demand is expected to remain healthy in the next few years, given the continued growth in enrolment at UNCW and limited upcoming supply of private student accommodation assets.

UNCW is one of the top ranked universities in the state, and its student population has grown healthily at a CAGR of 3.6% from 2011 to 2019, with 99% of its students from the USA^[13]. UNCW participates in Division 1 of the NCAA in the Football Bowl Subdivision and is a member of the Colonial Athletic Association.

Latitude at Kent
In Ohio, Latitude at Kent has 384 beds across 126 units in a five-storey apartment building, serving about 27,000 students at Kent State University (KSU). Students can choose from one- to four-bedroom apartments. Latitude at Kent is the newest private student accommodation asset that is located closest to KSU. The asset is just across the street from KSU’s academic core and within walking distance to major faculties and facilities.

Latitude at Kent is well-leased at 98% for AY 2021. Student enrolment is also stable from 2011 to 2019^[14]. With the asset’s prime location and lack of private student accommodation supply in the near term, Latitude at Kent is poised to perform well.

KSU is a leading regional university in North-east Ohio, with 96% of its students from the USA¹⁰. KSU also competes at the US NCAA Division 1 level and is part of the Mid-American Conference.

_{[11] University of Pennsylvania and Drexel University’s websites and Common Data Set (CDS), 2020
[12] North Carolina State University’s website and CDS, 2020
[13] University of North Carolina Wilmington’s website and CDS, 2020
[14] Kent State University’s website and CDS, 2020}

Details of each student accommodation asset

In November 2021, ART acquired Seven07, a freehold 548-bed student accommodation asset for US$83.25 million (S$112.4 million) with an EBITDA yield of about 4.5%. It serves about 56,000 undergraduate and graduate students from the nearby University of Illinois Urbana-Champaign.

In September 2021, ART acquired Wildwood Lubbock, a freehold 1,005-bed student accommodation asset for US$70.0 million (S$93.8 million). It has an expected EBITDA yield of about 5.1%. Wildwood Lubbock serves over 40,000 undergraduate and graduate students at Texas Tech University.

In June 2021, ART and its sponsor, The Ascott Limited, announced that they will jointly invest and develop a freehold student accommodation in South Carolina. Named ‘Standard at Columbia’, ART will invest US$55.2 million^[15] (S$73.4 million) in the 678-bed asset which will serve over 35,000 students from the nearby University of South Carolina. Construction of the student accommodation started in 3Q 2021 and is expected to complete in 2Q 2023. Upon stabilisation, the EBITDA yield is expected to be approximately 6.2%^[16].

In February 2021, ART acquired the freehold 525-bed Paloma West Midtown in Atlanta, Georgia for US$95.0 million (S$126.3 million) with an expected EBITDA yield of about 5%. Paloma West Midtown serves close to 40,000 students at Georgia Institute of Technology.

^{[15] Comprises ART’s investment in the initial 45% stake, estimated cost of the additional 5% stake which ART will acquire at fair market valuation, and other deal related expenses
[16] The EBITDA yield is a target yield on a stabilised basis}