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Beach Student Accommodation Fund
Quarter One 2009
The Beach Student Accommodation Fund Key fund data
Launched in June 2005, the Beach Student Accommodation Fund launched: June 2005
Fund invests in student accommodation across the UK. The Total return past 12 months: -9.9%
Fund currently owns 6 properties valued at £97.9m. As at 31
March 2009 the Fund had a gross asset value of £98.1m. Gross asset value (GAV): £98.1m
Number of assets: 6
Why invest? Number of nomination agreements: 1
The Fund has the following features which we believe make it Number of investors: 2
attractive from an investment perspective: Net initial yield: 6.67%
• Strong investment case for the student accommodation Average lot size: £16.3m
sector Debt: £27.1m
• Proven management team Net asset value (NAV): £71.2m
Leverage (% of NAV): 38%
• Established portfolio with attractive performance prospects
Average cost of debt: 3.3%
• Substantial asset pipeline Percentage of debt hedged: 0%
Fund distribution past 12 months: 6.5%
15.0 Size by number of bed spaces
10.0 8.3 8.5
Past quarter (%) 1 year (%) Since inception (% pa)
Fund¹ (geared) Property¹ (ungeared) Target²
101-300 301-500 501-700
¹ Calculated by Aviva Investors, net of fees
² Absolute return of 10% pa
Properties Current value of existing properties
Name of property by value £m
Trinity Square, Nottingham 30+ 4.6%
Canalside, Birmingham 20 - 30
The Trigon, Sheffield 10 - 20
Sillitoe Court, Nottingham 10 - 20 27.4%
Byron Place/Chatterley Court, Nottingham 5 - 10
Roddice Court, Nottingham Up to 5
up to £5m (1 asset) £5m - £10m (1 asset)
£10m - £20m (2 assets) £20m - £30m (1 asset)
£30m+ (1 asset)
Management team Fees
The Fund Manager for the Beach Student Accommodation Fund Annual management fees are payable to Fund, Asset and
is Aviva Investors. Aviva Investors has a Property Investment Property Manager in accordance with the gross asset value of
Team of circa 180 including over 100 investment professionals the Beach Limited Partnership. In addition, performance fees are
and has a dedicated Specialist Property Funds Team running 14 payable to Fund, Asset and Property Manager if specific out
sector-focused funds (including healthcare, urban regeneration, performance targets are achieved.
retail warehousing, airport related properties, and multi-let
industrial estates). Aviva Investors role on the Beach Fund The fee structure for Fund, Asset and Property Managers for the
includes high level strategy, equity and debt management, Beach Limited Partnership is as follows:
approval of asset management plans and approval of all capital
expenditure, including purchases.
Annual management fee Performance fee (rolling 3 years)
The Asset Management for the Beach Fund is carried out by Property management £300 per
Total return min of 8-10% 20%
Chaco Ltd who have an established track record in the
residential investment market. They currently manage Fund management 0.20%2 Total returns 10%+ 30%
approximately £250 million of on-going investments on behalf of Asset management 0.05%
several UK pension funds. Property Management is undertaken
by Derwent Partnerships Ltd, a wholly owned subsidiary of
Derwent Living (the trading name of Derwent Housing . Subject to indexation % is of returns achieved over the
Association Ltd). The Derwent Living group operates from head . % is NAV of Beach LP hurdle
quarters in Derby employing some 230 people.
The Beach Student Accommodation Fund was established on 17
James Allum, Client Relationship Manager – Real Estate
June 2005. 99.9% of units in Beach LP are held by the Beach
Student Accommodation Unit Trust (Beach Unit Trust). The Tel: +44 (0) 20 7809 8288
Beach Unit Trust operates as a ‘feeder fund’ and its sole purpose Email: email@example.com
is investment in Beach LP. The remaining units in Beach LP are
held by the Beach General Partner Limited. The General Partner
is owned by Derwent Living. The Manager of the Unit Trust is Neil Gardiner, Fund Manager – Real Estate
Aviva Investors Jersey Unit Trusts Management Ltd, and the Tel: +44 (0) 20 7809 6778
Administrator is Mourant & Co.
Examples of properties held in the Fund
Or visit www.avivainvestors.com
Canalside, Birmingham Trinity Square, Nottingham
Unless otherwise stated, the source of all information is Aviva Investors Global Services Limited (“Aviva Investors”) as at 31 March 2009.
Past performance is not a guide to the future. The value of an investment in the fund may go down as well as up. Investors may not get back the
original amount invested. It should also be borne in mind that the valuation of real estate is generally a matter of valuers’ opinion rather than fact.
This Fund is an unregulated collective investment scheme for the purpose of the UK Financial Services and Markets Act. This document is therefore
intended only for intermediate customers and to those to whom the schemes can be promoted under the Act. As the Fund is an unregulated
collective investment scheme all or most of the protections provided by the UK regulatory system do not apply and compensation under the Financial
Services Compensation Scheme will not be available.
The information contained in this fact sheet should not be regarded as constituting an offer to acquire any interests in the Unit Trust. The information
contained in this fact sheet does not constitute investment advice.
Calls to Aviva Investors may be recorded for training and monitoring purposes.
Aviva Investors Global Services Limited, registered in England No. 1151805. Registered Office: No. 1 Poultry, London EC2R 8EJ. Authorised and
regulated in the UK by the Financial Services Authority and a member of the Investment Management Association.
Contact us at Aviva Investors Global Services Limited, No. 1 Poultry, London EC2R 8EJ.