This fund provides eligible professional investors with access to Hong Kong’s student accommodation market, offering consistent cash yields and long-term capital appreciation. Structured as a Hong Kong Limited Partnership Fund (LPF), it features lower minimum entry requirements while delivering institutional-grade real estate strategies that combine stable cash flows with asset value growth.

Key Investment Highlights

Stable rental income – Student housing benefits from resilient demand, with occupancy rates consistently exceeding 95%, generating highly predictable cash flow. Significant capital appreciation potential – Hong Kong faces a structural shortage of student accommodation, with supply persistently lagging behind demand, supporting sustained property value growth over time. Clear exit strategy – The fund operates on a 5+2 year investment horizon, creating value through active asset management and operational enhancements. Targeted exits include a REIT listing, taking the portfolio public on Hong Kong’s real estate investment trust market, or a portfolio sale to institutional investors or developers seeking scale and stabilized returns. Professional management – The General Partner team brings over a decade of cross-sector experience across finance, property, and education. Team members hold multiple relevant regulatory licenses and are structurally aligned with limited partner interests. Strategic timing – The Hong Kong government is actively promoting the "Study in Hong Kong" brand and has launched initiatives such as the "City-wide Student Housing Scheme" to expand supply. Major REITs have recently entered this sector for the first time, validating the investment thesis.

Return Model

The fund targets returns across three distinct layers, aiming for an overall internal rate of return (IRR) of 12% to 15% per annum. The base-level stable rental cash flow is driven by high occupancy rates and a prepaid rental model, targeting yields of 6% to 8%. Mid-level capital appreciation is achieved through property repositioning, brand-led operational upgrades, and market-driven valuation gains, aiming for 3% to 5% per annum. Top-level value-added services—including insurance brokerage, property referral fees, tutoring, and study advisory—contribute an additional 2% to 4% to the overall return.

Fund Terms and Fee Structure

Key fund terms are as follows: The investment term is 5 years, with a possible 2-year extension. The target return is 12% per annum, including property brand appreciation. The preferred return is 7% per annum, calculated on an internal rate of return (IRR) basis. The management fee is 1.5% per annum, waived for the first year. The performance fee is 40% of returns exceeding the target return. The subscription fee ranges from 3% to 5%, and the redemption fee is 3%.