Real Estate News
AXO Student Living partners exclusively with tech platform Lavanda to power 'flexible living' strategy
AXO Student Living, a leading provider of high-quality student accommodation in sites across London, Coventry, Suffolk and Sunderland, has appointed pioneering technology platform Lavanda as the exclusive partner to power its flexible living strategy. The strategy seeks to intelligently optimise the performance of vacant or under-utilised units by tapping into strong short and medium-term rental demand - particularly outside of the academic year over the summer period. The net result is that AXO is able to offer accommodation to students on more flexible 42 week leases, as opposed to a traditional 52-week lease.
Lavanda's appointment as AXO's flexible living partner follows a successful trial in the summer of 2021 across part of the UK portfolio. The trial generated more than 2,000 booked nights and occupancy levels of +75% for rooms that would ordinarily have been empty. The formal partnership now sees Lavanda deployed across 876 units this summer.
AXO's flexible living strategy delivers an important secondary benefit to the local communities inhabited by its buildings. By boosting occupancy and utilisation of student accommodation outside of term time, AXO will drive high-spending footfall to local retail and hospitality businesses at exactly the time of year when many struggle due to the exodus of students from the city. By using Lavanda's technology, AXO has helped create more balanced year-round communities, which will continue to thrive with the addition of more units across Lavanda's platform this summer. The current cost of living crisis and impending recession make these benefits all the more significant.
Lavanda powers similar flexible living strategies for student accommodation operators including iQ Student, Collegiate and CA Ventures amongst many others.
Thomas Bush, Sales and Marketing Director, AXO Student Living:
"As a business and as an industry, the pandemic has taught us that demand is moving away from the rigid full-year contracts that used to make up the majority of our portfolios and flexibility is now one of the more sought after offerings expected from PBSA providers. Due to the gaps in occupancy that adhering to such demand can entail, we decided to partner with Lavanda. Using their software, we are able to offer our accommodation to a wider demographic and essentially offer a different product during the summer period, which we weren't able to previously."
Commenting on the partnership, Fred Lerche-Lerchenborg, CEO at Lavanda, said:
"Historically, purpose built student accommodation has been considered a premium accommodation option for domestic students. We're proud that our partnership with AXO Student Living has helped create more flexible and affordable student accommodation options, without compromising on the quality and amenities that students are looking for. We're excited to solidify our position in the UK purpose built student accommodation market and to be rolling out across AXO's units this summer."
