South Africa - Student Accommodation Portfolio

AVH has currently packaged six (6) student accommodation projects situated in Johannesburg (2), Durban (3), and Nelspruit (1); and is investigating further opportunities nationally within South Africa. AVH seeks to partner with a suitable equity investor to fulfil its mandate. The expected horizon is to package and deliver around 10,000 student beds by 2020 in the form individual projects and student housing villages. The estimated total capital cost to deliver phase 1 (1876 beds) is ZAR 336 169 795. The estimated valuation on completion in year 1 is ZAR 444 612 000, within an estimated profit on year 1 valuation being ZAR 108 442 205. Estimated escalation on rental income is around 7-8% p.a. moving forward over the 5 year holding period. AVH seeks a 50% equity investment for phase 1 being, ZAR 168 084 897.50. AVH will procure currency hedge insurance for any offshore funding it receives.