SPH reports higher bookings to date for UK student dorms for next academic year

SINGAPORE (THE BUSINESS TIMES) - Singapore Press Holdings (SPH) on Tuesday (April 21) reported good progress on bookings for its purpose-built student accommodation (PBSA) properties in the UK for the next academic year.

It said bookings for academic year 2020/2021 (AY20/21) to date are robust despite the ongoing Covid-19 situation in the UK. They are around 60 per cent, which is higher than this time last year for AY19/20, said the media and property group, which publishes The Straits Times and The Business Times.

Moreover, 65 per cent of the target revenue for AY20/21 has been achieved as a result of better than expected rental growth compared with last year - a reflection of the quality of the PBSA assets, SPH added.

The group further disclosed that the reduction in revenue from offering students in the UK the option of refunds if they left their tenancies early amid the Covid-19 crisis totalled around £4.5 million (S$8 million). This was at the lower end of the £4 million to £8 million range previously expected.

Of the £4.5 million, more than 20 per cent is in the form of credits to students planning to return to their existing housing for AY20/21.

SPH said the Covid-19 disruption may result in more students enrolling in higher education to improve employment prospects amid heightened economic uncertainty.

The group added it is expanding its marketing outreach to students - which includes increasing digital marketing measures and reaching out to more geographies as it raises the number of tie-ups with agents.

"We remain positive on the long-term fundamentals of the UK student accommodation sector," said David Mathewson, director at Straits Capitol - the SPH subsidiary managing the PBSA assets.

SPH has 25 assets under the brand's Student Castle and Capitol Students across 15 UK cities.

SPH shares were trading down $0.05 or 3.3 per cent to $1.45 as at 3.25pm on Tuesday.