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Analysts back PBSA trust – GCP Student Living as it reduces fees

Analysts maintain their ‘buy’ rating on GCP Student Living real estate investment trust – following the fund manager reducing its fees.

FTSE 250 company – GCP Student Living –  was the first student accommodation REIT in the UK. Since its launch in 2013, it has returned 66% in share terms and has offered 17% over five years. GCP Student Living provide shareholders with returns from investing in purpose-built student accommodation (PBSA).

Analysts continue to maintain their ‘buy’ rating on the £570m GCP Student Living company following the fund manager reducing its fees. On 27 August, a Stifel note showed that the trust manager – Gravis Capital Management – reduced its fees from 1% to a staggered fee structure depending on how large the trust grows. 

There will be a 0.75% fee for assets up to £950m, a 0.64% fee for assets over £950m to £1.5bn, and a 0.56% fee for assets over £1.5bn.

Gravis Capital Management will also no longer be responsible for paying property management fees. Instead, they have entered into annual agreements with third parties – which is likely to save them £600,000 a year in costs.

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