Sprefs and Coral team up to launch student portfolio

The Luxembourg-domiciled portfolio, which is expected to raise roughly £100m during its first year and target returns of 8-10 per cent, aims to profit from a historically low correlation to other asset classes, including property.

It will initially invest in the vehicles of established UK providers, but will also consider schemes elsewhere in western Europe.

Alternative student accommodation benefits from the 31 per cent rise in student numbers over the last decade.

In the UK, university-maintained properties are meeting only 23 per cent of demand for beds. Occupancy rates are more than 95 per cent on average.

John Kennedy, Robert MacDonnell and Lawrence Frampton will manage the fund.

Kennedy marketed the first student accommodation fund from Brandeaux in 2000.

He said: "Student accommodation is an investment which is easily understood by the general public. It’s a supply and demand story and immediately relevant to most people through their own personal experience. It has now become recognised as a sector in its own right."

The AMC on the fund is 1.5 per cent. There is no minimum investment.