
The Kexgill Group, trading as the University Quarter, has reported another year of significant rental growth, reflecting its ongoing success in the purpose-built student accommodation (PBSA) sector.
From their accounts to the end of June 2024, Kexgill achieved an 18.6% increase in rental income while expanding its portfolio in key UK cities, including Salford and Nottingham.
For the financial year ending June 2024, key highlights include a 18.6% rental growth, a 5% increase in gross asset value, reaching £201m and a 2% rise in net asset value. The business has been strengthened by new appointments together with a recent £58.5m refinance of key assets.
Managing Director Richard Stott feels it is a pivotal moment where change is needed in their business model.
“As a wholly private company we generally react quickly to changing demand characteristics. Our move into more partnerships and co-living may not show positively in our accounts for a couple of years which seems a lifetime. Patience is not a virtue to me!“
Richard Stott, Managing Director, Kexgill Group
The accounts state that affordability of accommodation is continuing to be an issue for many students. Their portfolio is positioned in the mid-range rental market thus well-aligned with student demand. This aspect of Kexgill’s expertise and portfolio is considered advantageous to their market position.
This approach has facilitated new university partnerships, reinforcing Kexgill’s market strength. With strong financials and strategic adjustments underway, the group remains committed to delivering high-quality PBSA while adapting to evolving market trends.
“We have funders with a genuine understanding of our needs and ambitions.”
Richard Stott, Managing Director, Kexgill Group
The news comes as the Kexgill Group secured a further £11.2m loan, from Aldermore Bank, to refinance recently developed PBSA projects.