Banking group Nedbank will assist student housing developer CampusKey finance the establishment of accommodation at two South African universities.

CampusKey was developing a residence bordering the University of the Free State (UFS), as well as a residence within walking distance of the University of Pretoria’s (UP’s) main campus, which was expected to be completed next year.

The UFS residence would comprise six blocks of triple-storey fully furnished student accommodation, housing 450 beds in a combination of bachelor and two-bedroom units, as well as parking bays and communal areas.

Another 300 beds would be added in 2015.

The UP development would comprise three blocks of triple-storey accommodation, providing a total of 66 two-bedroom en-suite units, thereby offering 132 beds.

“With the severe shortage of student accommodation that South Africa is currently experiencing, Nedbank embraces this opportunity to provide the necessary funding for this quality accommodation at two of the country’s key universities,” Nedbank corporate property finance regional executive Richard Thomas said.

Nedbank pointed out that, according to a report tabled by Higher Education and Training Minister Dr Blade Nzimande, in 2010, there were 107 598 university residence beds available, which only accommodated 20% of enrolled full-time students.

The report estimated the residence bed shortage at that time to be about 195 815, with the cost of overcoming this shortage over a ten-year period having been estimated at R82.4-billion.

Thomas added that, while CampusKey was relatively new in the student accommodation market, it was gaining popularity on the campuses where it already operated, such as North-West University (NWU) where it had completed a 280-bed residence, and Stellenbosch University (SU) where 394 beds had been established in four residences.

The company was also planning to develop additional 440- and 90-bed residences at these universities.

According to the developer, the potential for developing quality student accommodation at UFS, UP, NWU and SU had barely been tapped.

“Based on our research, these four campuses alone are short of around 98 850 beds and our short-term objective is to supply close to 4 000 of these,” CampusKey director Antoin van Rensburg said.

He added that the company had visited many overseas residences and was continuously researching best practices and getting feedback from students to ensure it offers the best possible environment.

“We are very selective about our locations, and only consider locations within easy walking distance from the campus. Parking around universities is notoriously scarce and expensive. Our students don’t really need cars, as we offer ample secure bicycle storage and most students cycle or walk to class,” Van Rensburg said.