2012 Annual Review - Campus Living Villages

20 Campus Living VillagesOperational highlightsAnnual Review 2012 21New ZealandHead officeChristchurch, New ZealandDate of entry into market200—Massey UniversityNumber of beds,10Number of properties6FY12 revenueAU $13.6millionNet asset valueAU $32.millionFinancial performanceDespite difficult operatingconditions in Christchurch followingthousands of ongoing earthquakes, CLVnzperformed positively, achieving strongacademic year occupancy and delivering onits cash distribution target.All managed halls of residenceattained budgeted occupancy for semesterone 2012, with the newly managedUniversity Hall at the University ofAuckland achieving 100% occupancy.In Christchurch, despite theearthquakes resulting in a 50% drop infirst-year domestic enrolments and a30% drop in international enrolments, UCAccommodation Student Village (UCA)achieved 91% occupancy with the help ofsome innovative marketing campaigns.New system streamlines flatmatematching at UC AccommodationStudent VillageThe UCA team has invested in aleading room-selection system that hasstreamlined the processing of accommodationapplications. Residents are able to applyonline and match themselves to flatmatesbased on personality and preferences, aprocess that previously required 20 hours tocomplete. This process also took place at theend of each year, when the 1,0-bed villagewas in the middle of ‘move out’ mode, puttingsignificant strain on village resources.The new system freed up valuablestaff time and reduced the potential forincompatible flatmate matches. Applicantswere asked to create an online profile basedon information about their study and drinkinghabits, sports and arts interests, and anynoise, social, smoking/non-smoking and singlesex preferences. The system then displayedtheir ‘best matches’ and allowed them tobrowse a database of potential flatmates.UCA maintained control over therelease of rooms, with the ability to overrideunsuitable selections. This process took justfour hours for one staff member to complete.Since then, UCA has seen a % decrease inthe number of room changes compared withthe same time last year, minimising disruptionto other students. With success like this, roomselection is certainly here to stay at UCA.new zealandDarryll ParkChief ExecutiveOfficer, CLVnzLucy Allen-KingMarketing ManagerKaye ArnottGeneral ManagerMassey and WellingtonTom GreggChairman andDirector of ProjectsChris NeateFinancial ControllerNik Webb-ShephardGeneral ManagerCanterbury and AucklandKristina WischnowskyNational HumanResources AdvisorBusiness performanceAcross the region, a restructurewas put in place to support the delivery ofexcellence in all aspects of the business.Staff roles were redefined to increaseefficiency and reduce operating costs,with the benefits already felt at a numberof properties. A newly formed OperationsManager position at our three VictoriaUniversity of Wellington sites is a keyexample of success. The new role providedimproved operational coverage throughincreased liaison with and oversight ofcontractors, a coordinated approach toasset and facilities management, andallowed pricing contracts to be negotiatedfor all three sites.Completing the restructurewas the arrival of Darryll Park as ChiefExecutive Officer in March 2012. Incumbent,Tom Gregg continues as Chairman andDirector of Projects, supporting CLVnzwith a wealth of expertise and industryknowledge.In Christchurch, the focus atUCA was turning the issues broughton by the earthquakes into successfuloutcomes. With the fall in domestic andinternational enrolments, a number ofmarketing campaigns were implementedwith major success. One such campaign sawprospective residents searching the villagefor secret codes that could unlock a ‘free’apartment, while another popular campaignoffered free internet to residents.The initiatives brought 300 returnerresidents to Ilam Apartments in 2012,with the University of Canterbury Vice-Chancellor and marketing team publicallyrecognising the standard of UCA’s marketingcapabilities.Additional occupancy wasobtained by working in partnership withthe University of Canterbury to openaccommodation up to businesses andChristchurch residents. With the approval ofthe Vice-Chancellor, UCA offered 244 roomsto students, staff and the local communityfor use as office space and accommodation.In addition to enhancing occupancy, oursupport for the University of Canterburyand the city of Christchurch strengthenedrelationships with our partner and the widercommunity.In February 2012, UCA offered tenNZ $1,000 accommodation scholarshipsto first-year domestic students studyingat the University of Canterbury. Studentswere selected based on their academicperformance, social contribution tosociety and family circumstances. Thescholarships were an opportunity for CLVnzto support high achieving students and thedevelopment of young people.In Wellington, the Everton Board atVictoria University of Wellington’s EvertonHall re-signed the Operator Agreement fora further three years. We were pleased tohear the Everton Board Chairman expresssuch confidence in our managementabilities, namely though the exceptionalquality of our business planning, financialmanagement and procedures that now formthe benchmark for all the villages ownedby the University Trust. Everton Hall is alsobeing upgraded via a strategically measuredself-funding program, much to the delight ofthe Board.This year, emphasis was alsoplaced on the implementation of enhancedsystems and processes to ensure thatfinancial information flowing internallywithin CLVnz and externally to partnersis consistent, timely and of high quality.This was primarily achieved by effectivelyleveraging the abilities of our financial andresident management systems, NetSuiteand StarRez. The improvements havesuccessfully reduced monthly reportingtimeframes and allowed the team to workefficiently on projects such as the UCAGST voluntary disclosure and businessinterruption insurance claim. This focus onenhancing our systems and processes willcontinue into FY13.Business developmentCLVnz saw a promising year inregards to business development. In January2012, we won a management contractwith the University of Auckland thatincluded 548 beds of existing Universityaccommodation and planned new builds.This new partnership brings CLV’s bed countin New Zealand to 4,180 beds.CLVnz also entered into discussionswith a number of institutions, confirmingthe first stage of the green-fields studentaccommodation complex at Massey’sAlbany Campus. Other negotiationsincluded a potential managementcontract and a two-staged developmentat Northland Polytechnic in Whangarei(Northtec) and a management opportunityat Christchurch Polytechnic (CPIT).Discussions are underway with CPIT tomake accommodation at UCA available tostudents affected by the lack of affordable,high quality housing after the earthquakes.The year aheadIn the coming year, CLVnz will beundertaking an additional focus, exploringpossible growth outside the usual businessof university student accommodation.CLVnz is in discussions withUK-based flight training company, CTCAviation Training, to manage an existing128-bed campus for its NZ operations atHamilton Airport. Potential also exists for anadditional 50 beds to be added by June 2013.CTC is one of the major aviationtraining operations in NZ, has stronggovernment support and is actively lookingto expand operations. CLVnz’s negotiationsinclude growing the Hamilton site to 250beds and the potential development of a 150-bed operation near Gisborne Airport. Withour extensive experience creating tailoredaccommodation solutions for educationinstitutions across the country, CLVnz isseen by all parties as the preferred choicefor managing all current and future studentaccommodation for CTC Aviation Training.Informal discussions have alsobeen initiated with INGENIA, owners of theCLVnz-managed uStay Urban Apartments,for a new contract that will enable CLVnz tomanage uStay’s McKenzies Apartments forthe Weltec Cordon Bleu Gourmet Schoolfrom late 2013. A refurbishment plan iscurrently underway to completely upgradethe facilities at McKenzies Apartments, withresidents due to move in on completion andin time for the 2014 academic year.