Annual Review - Campus Living Villages

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4 Campus Living Villages Chairman’s report I am pleased to present our Annual Review for the 09/10 financial year on behalf of the Directors of Campus Living Funds Management Limited (CLFM), the responsible entity of the managed investment schemes comprising the Campus Living Villages Fund (Fund). In challenging economic times the true strengths of businesses emerge. Over the past financial year the Campus Living Villages (CLV) model has proved to be reassuringly robust, with the Fund delivering a number of pleasing results, including revenue growth, high global occupancy and an increased number of beds in the portfolio. At 30 June 2010, the Fund owns or manages 33,303 beds in 49 villages in the United States, Australia, New Zealand and the United Kingdom. Professor John Niland, AC Chairman and Independent Director of CLFM chairman’s report UNSW Village Sydney, Australia
Annual Review 09/ 10 5 Chairman’s report The key to our performance has been a deep commitment at all levels of the business to building strong, true partnerships. This is most evident at the village level in over 40 partner educational institutions, extending from such cities as Houston, Philadelphia and Champaign- Urbana to Wellington and Christchurch, from Manchester and Luton to Lismore, Melbourne, Sydney and Perth. Beyond this, our partnering philosophy and practice also embraces other stakeholders: investors, financiers, residents, parents and suppliers, all of whom make significant contributions to the business. Through clear and transparent communication, alertness to the importance of feedback and a commitment to understanding partners’ needs, CLV continues to improve its offerings, with corresponding success. Leading the drive to build sustainable relationships is the new group Chief Executive Officer (CEO), Martin Earp. Formerly CEO of CLV Australia, and acting group CEO from August 2009, the Board was pleased to appoint Martin to the role from 1 January 2010 following an external recruitment process. His experience in leadership and business management, as well as his knowledge of infrastructure and project development, make him an ideal appointment for the business. Martin has been particularly involved in the global implementation of our new Live, Learn, Grow residential life framework, designed to meet the needs of both education partners and residents. This initiative, strongly endorsed by the Board, has received excellent feedback from staff both within universities and across our villages. Examples of the Live, Learn, Grow program are outlined on pages 12-17. The Board was also pleased to appoint a new group Chief Financial Officer, Paul Farrugia, in March 2010, further enhancing a highly experienced and professional executive team to lead the next stage of development. Governance arrangements and systems development have also been given priority by the Board in the past year. In April 2010 Gayle Tollifson joined the Board as the third Independent Director and chair of the newly established Audit, Compliance and Risk Committee (ACRC). The inaugural meeting of the ACRC was held on 28 April 2010 and its operation has further enhanced governance and management in this critical area. In June 2010 Fund investors were offered the opportunity to participate in a voluntary Distribution Reinvestment Plan (DRP). The DRP is enjoying a strong response, reflecting the strength of the relationship with investors. Globally, the Fund has been focused on refinancing 16 of the properties acquired in the purchase of Century Campus Housing in 2006 in the United States. Despite a difficult financial climate progress is evident, with a successful outcome anticipated by the end of 2010. The Fund has continued to perform well over the past year. At the close of this financial year, gross asset value was AU $1.2billion, with an overall gearing of 68%. The number of owned beds increased by 2,286 to total 23,244, mostly through the acquisition of the Cottages of Lubbock in Texas and new facilities at The University of New South Wales (UNSW). Both villages realised better than expected returns in their first year, signalling that they will be excellent assets for the Fund. Investment in the United Kingdom has also been a priority as CLV looks to consolidate its presence in this market. Although a new entrant in the region, CLV presents an exciting alternative in student accommodation. Our full-service partnership approach, combined with unique residential life program and an empowered staffing model, provides a refreshing new ‘value-add’ approach in the sector. At the end of the 09/10 financial year, the acquisition and development of the University of Bedfordshire’s accommodation in Luton was nearing completion with CLV achieving preferred bidder status. This deal has subsequently reached financial close and new construction is underway. For me, personally, a highlight of the past year was to participate in the official opening of UNSW Village in Sydney with the University’s Chancellor David Gonski, AC and President and Vice- Chancellor Professor Frederick G Hilmer, AO. This landmark AU $127 million facility, housing 1,02 1 students, sets a new standard in high-density student accommodation. Already the recipient of a number of building and design awards, the response from residents has been a ringing endorsement of the facility. The Village achieved 100% occupancy in the first semester 2010. This is a significant achievement, reflecting the hard work and commitment of many people both within CLV and our partners at UNSW. Our goal is to build on this landmark as we move forward with carefully planned further development, all the while strengthening existing partner relationships. Professor John Niland, AC Chairman Campus Living Funds Management Limited
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Page 21 and 22: Annual Review 09/ 10 2 1 Australia
Page 23 and 24: Annual Review 09/ 10 2 3 New Zealan
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Page 27 and 28: Kelvin Grove Student Village Brisba

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