Two years since launching, Growthpoint Student Accommodation REIT has introduced R1.5 billion in new investment to this alternative property sector and it has expanded its portfolio value to approximately R3.5 billion, representing twelve residences with 9 000 beds in three South African cities – Cape Town, Johannesburg, and Pretoria.
With two new developments in the ground, the REIT expects to increase its beds to 10 400 for the 2025 academic year.
“We are pleased to report that our portfolio occupancy is 98% for the 2024 academic year, exceeding that of 2023,” reports Amogelang Mocumi, Fund Manager of Growthpoint Student Accommodation REIT. “Our new purpose-built properties, developed by Growthpoint Properties and Feenstra Group, are proving particularly popular, attracting the highest demand and occupancy.”
Two new properties opened in the portfolio, branded Thrive Student Living, for the 2024 academic year – Horizon Heights in Johannesburg is 99% occupied for its first year of housing students, proving popular with those from the nearby University of Johannesburg as well as the University of the Witwatersrand. Fountains View in Pretoria is 98% full, primarily let to students from Sefako Makgatho Health Science University (SMU) and the University of Pretoria’s Groenkloof campus.
Continuing its growth, Growthpoint Student Accommodation Holdings has two new properties under development for the 2025 academic year: a R300 million 900-bed property located in Braamfontein and a R200 million 500-bed located in Parktown, both targeting Wits University students.
It is also planning a development near the University of KwaZulu-Natal’s Howard College Campus in Durban for the 2026 or 2027 academic year intake.
“Investors remain positive about purpose-built student accommodation, even while they have short term reservations about the commercial real estate asset class as a whole,” reports Mocumi.
Growthpoint Student Accommodation REIT aims for total returns of 13% to 16% in the long-term. Its target is to grow the portfolio to R12 billion worth of assets and achieve a stock exchange listing within the next seven years.
Growthpoint Student Accommodation REIT was launched in December 2021 by Growthpoint Investment Partners, the co-investment business of SA REIT Growthpoint Properties.
