Increasing competition for assets There’s been an influx of interest from parties including: insurance companies pension funds REITS private equity family offices sovereign wealth funds. This has increased competition for good quality PBSA stock in the right location. Investors with established operating platforms and brands continue to seek economies of scale by further growth and consolidation of their large portfolios. While this may limit opportunities for direct investment by new investors, it does open up potential for investment into established platforms with strong track records who’re looking to raise capital. We’re also seeing an increasein the number of opportunities to forward fund or forward purchase schemes being brought forward by developers. This allows investors who are prepared to carry letting risk to secure a pipeline of new schemes at an earlier stage. A pipeline can also be secured at an earlier stage by agreeing a longer-term collaboration with a reputable developer. Strategic alliances between investors and developers are an emerging growth area for the sector. Good advice from leadingmarket analysts on supply/demand dynamics and projected income is key to evaluating the risks and rewards of the different investment models. Delivery Timing of delivery of new PBSA schemes is critical, with construction delays impacting adversely on the marketing strategy for optimising occupancy levels in the first academic year. Development documentation needs to adequately set out the relevant milestones and the allocation of risk in the event of unforeseen disruption and delays. Challenges in the sector 32 Real Estate Investment 2022