2012 Annual Review - Campus Living Villages

6 Campus Living VillagesCEO’s reportAnnual Review 2012CEO’s reportceo’s reportMartin EarpChief Executive OfficerGlobal and CLVusUNSW VillageSydney, AustraliaIt has been just over a year since Imoved to Houston from Sydney to run theUS business. At the time, CLV as a businesswas in the last stages of completing a seriesof debt refinancings that would put it on astrong and sustainable financial footing.This series of projects has now beencompleted (six projects/US $308.7milliondebt) and was only made possible by theongoing, strong support of our investors whoall participated fully in a rights issue. This wasa significant milestone for CLV and one thattransformed the business. I would like to thankall members of the staff who participatedto deliver such a successful and beneficialoutcome.With the completion of this largeproject, the management team has beenable to turn its attention to changing the waythat CLV operates in order to deliver a higherlevel of service to our education partners andowners of our management contracts. CLV isimplementing an operational structure thatensures villages have the resources andexpertise to deliver a consistently highquality experience for their residents. Wehave put in place true “local leaders” atour sites and empowered them to makedecisions. This avoids expensive layers ofmiddle management but more importantlyimproves the quality of decision makingand reduces delays. These leaders aresupported with a strong operationalframework and experienced staff in headoffices globally.This refined operating approach isunique to CLV and has allowed the businessto increase the level of satisfaction forstudents, parents, staff and our partnerinstitutions. Our staff and educationpartners have embraced the new operatingmodel, which has resulted in improvedfinancial performance, raised occupancylevels and allowed CLV to lower costs ratherthan increase rental rates. Cost savingsare being reinvested into our properties toimprove both the physical condition of theassets and the quality of training providedto our staff.Other key highlights from aroundthe globe include:Winning the management contract withthe University of Auckland. The chanceto work with NZ’s largest andone of its most prestigious universitiesis both a privilege and a greatresponsibility. I know that the teamwithin CLVnz are striving to deliver thebest possible results for the Universityof Auckland and its students.Opening Fitzroy Court, phase oneof CLV’s first purpose built studentaccommodation project in the UK.Located at the University ofBedfordshire, the £42million projectreflects a new style of studentaccommodation not yet seen in the UK.I would like to congratulate the CLVukteam for all their hard work on thisproject.Finalising arrangements for CLVau’sfirst operational partnership with aprivate student accommodationprovider, Iglu Student Accommodation. Iam pleased to see the effectiveness ofCLV’s operations, systems and processesbeing recognised by other providers inthe sector.Working towards stronger, more open,relationships with our CLVus universitypartners in order to deliver an increasingnumber of Academic Villages. Tocreate an Academic Village, CLV workswith education partners to reinvest intheir physical assets and programmingand provide an environment thatproactively supports academicexcellence. A key part of this is allowingmembers of the faculty to live at thevillage to ensure that learning is not justrestricted to the classroom. A case studyof this approach is contained in the CLVusOperational Highlights on page 25.CLV is an operational businessfirst and foremost, and as such, our leadersneed to be embedded within the businessto ensure that decisions are relevant andwell-informed. All members of the GlobalExecutive Team (GET) have committed toundertake a “day job” in the operationalbusiness. In addition to their day-to-dayoperational responsibilities, these keyindividuals also form part of a virtualleadership team. The focus of this team is onmeeting the strategic challenges that CLVfaces, with the month-to-month monitoringof business performance being picked upby the CEOs of the business. This processof putting in place excellent people who canthink strategically but act operationally is akey part of CLV’s approach and is reflectedin the focus on local leadership at the villagelevel. The members of the GET are shown onthis page.Overall, FY12 has been a successfulyear. I am very lucky to be part of a businessthat is involved in such an interesting anddiverse market and to have such a highquality team who is committed to makingCLV the best operator in the field.Martin EarpChief Executive OfficerGlobal and CLVusThe Global Executive TeamRegional HeadsMartin EarpChief Executive OfficerGlobal and CLVusDarryll ParkChief Executive OfficerCLVnzTechnical ExpertsBrigitte MartinDirector of Salesand MarketingRick BrowningDirector of HumanResourcesJoe AchmarChief Financial OfficerGary ClarkeChief Executive OfficerCLVukDavid GregsonHead of BusinessImprovement and CIORob Di QualCLFM Chief Financial Officerand Fund ManagerRichard GabelichGeneral ManagerCLFMMichael HeffernanChief Executive OfficerCLVauKeiron HumblerDirector of Riskand FacilitiesTroy BayhamVice President of OperationsCLVus