Eris' impressive combination of a talented team and integrated tech tackles student accommodation
Category News
With a massive shortage of approximately 250 000 beds, there is a definite need for student accommodation in South Africa. It is more important than ever to invest in this ever-growing property development sector. This is why the team at Eris Property Group has hand-picked talented, young individuals to run its student accommodation division - where the latest projects currently underway include Jorissen Street in Braamfontein (998 beds) and Cape Town Station (3 000+ beds). Fortunately investing in student accommodation has benefits for both students and investors.
The students get a safe place to stay and can continue uninterrupted with their studies and investors know that their money is doing good - and the numbers speak for themselves. "During the height of lockdown last year, we had high [around 60%] occupancy at our already-developed accommodation, Units on Park in Hatfield in Pretoria. It is a secure investment because it is done properly in targeted areas. Besides the academic advantage for students, there is also our Student Life Programme, an all-round wellness programme, which focuses on everything outside of academics - socialising, mental and physical health and practical life skills such as job readiness - which has been a gamechanger for youngsters," explains Johan Janse van Vuuren, Executive Head of Student Accommodation at Eris. "The South African Student Accommodation Impact Investment (SASAII) company sees our Student Life Programme as an impact investment vehicle - investment capital that leads to positive social results - as it helps to prepare students for life after university," he adds.
"Investing in student accommodation is different to investing in other types of property development. Investors understand that they are contributing to society and making a difference on an individual level," says Nape Bambo, an Intern at Eris. "The return on investment for investors is a little bit more robust here," says Johan. "Eris takes out the risk by underwriting the capital of the investments before we go to ground. Investors understand the costs, as we have covered all the bases for them, with no surprises that will jump out later," he continues. Eris also has a dedicated property management team with systems and processes in place, so that each building (and each student) is looked after. "We are still raising capital for our latest projects ― the minimum investment is R50 million. The company's structure means that fees are only applicable to drawn capital during the deployment period, rather than all capital committed, ensuring that investors receive value for any fees charged by the manager," adds Johan.
In terms of the development itself, there are strict protocols that the team needs to follow, which in turn, is beneficial to investors. "There are minimum norms and standards, which are set out by the Department of Higher Education and Training (DHET), so we regulate all our designs. In addition, we follow strict green principles and designs, as all student accommodation that we build needs to be EDGE certified," says Nape. "It is often thought that the "greener" the space, the more expensive it is, but this isn't actually true," explains Johan. "It costs more at the beginning, but green buildings are actually more cost effective in the long-term than traditional buildings. We do an immense amount of research at the various higher learning institutions in the proposed areas before we decide to build, so we mitigate the risks for investors," he says. "Student accommodation is currently a booming asset class. This, coupled with the hundreds of hours' worth of research that we have conducted, makes us best positioned to make investment decisions," adds Khuselo Ndimeni, Assistant Development Manager of Student Accommodation.
With this in mind, a young and dynamic team was intentionally chosen to work in the all-important Eris student accommodation division. "There is definitely an advantage to this. We understand the market and relate to the students. It is easy for us to interact with them and figure out their needs," says Thalitha Ramusi, Development Manager at Eris. The team does extensive on-the-ground research at specific campuses before every possible new build, which is essential, as they have found that students in each area prioritise things slightly differently. "We know what students like design-wise and can create an amazing space for them, while still incorporating various design efficiencies," she adds.
Each member of the student accommodation division also has slightly different strengths, which helps the team as a whole. Khuselo, who joined Eris through its Graduate Programme, ensures that developments are carried out to the Eris standard together with other Development Managers. "This is a classic case of redefining the status quo: not only are we providing accommodation to students, but we are giving them a home away from home - an affordable one too. Being a student myself not too long ago, it is amazing to see and carry out the work that will one day be home to someone," says Khuselo. Thalitha is the brains of the operation, so she helps with ensuring that the SASAII mandate is achieved in all projects. She oversees the research initiatives that have been implemented - and assists with informed decision making and directing the overall approach of the Student Life experience at the developments. While Nape, with his love for macro-economics and numbers, helps with focused research and attaining information on specific properties, as well as putting together high-level analysis on whether a development will work or not. With his years of experience behind him, Johan heads up the team and offers practical advice and strategic insights. "We are also fortunate that every year we get a new graduate from our Graduate Programme - who has recently completed university - to join our team. These graduates always bring fresh ideas and fresh perspectives to the table," adds Johan.
"I love how dynamic it is working in this team," says Nape. "Every day is different, and we constantly have to adapt," he says. "I love a challenge and have really grown during my time with Eris. The opportunities in this job have really stretched me and allowed me to learn... and I'm thoroughly enjoying it. The sky is the limit at Eris - there are boundless opportunities if you choose to work hard," he adds. Concludes Thalita: We have really set a high standard from our previous student accommodation projects, but there is still space to explore and be creative, which is exciting."
Visit www.eris.co.za/student-accommodation/and https://www.risestudentliving.com/ to apply.
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Author: Eris
