Back to school: Simon Hickey

Like much of today’s adult Australian population, Simon Hickey grew up in an era when, if you chose the path of tertiary education, you most probably remained living at home and commuted to and from campus, usually cramming in last-minute tutorial readings while jostling for space on overcrowded buses or trains.

It’s a characteristic that has long distinguished us from our American and British counterparts, who traditionally view the move to university as a rite of passage into adulthood, a transition that involves leaving home, in all senses of the word. Yet the MD and global CEO of Campus Living Villages, or CLV as it is also commonly referred to, sees proof that local attitudes are changing everywhere he looks, even within his own family.

"My daughter is approaching the end of high school and is thinking about what she wants to do when she finishes, and one thing that really excites her is the possibility of living on the university campus itself," Simon explains. "I guess her idea about what happens next is very different from when I was her age."

High achiever

Looking over glossy images of CLV’s flagship UNSW Residence at the University of New South Wales, which just happens to be Simon’s alma mater, it’s easy to understand why on-campus living presents an attractive option for so many of tomorrow’s university graduates.

Even he admits he often finds himself wishing for just one more year at university. "I look at some of the residences we are developing and could absolutely see myself living there," he laughs. 

Opened in 2010, the development at the heart of the eastern Sydney university campus cost $127 million to complete and boasts 1,021 beds, a café, theatre and 3 level student lounge. 

But Simon isn’t one of these perennial student types who spend their adulthood jumping from degree to degree.

Quite the opposite, in fact. Since graduating with a degree in commerce in 1987, he’s worked his way to the top of some of the biggest companies in Australia and around the world, including Arthur Andersen and Lend Lease. Prior to joining CLV in 2015, he was the CEO of Qantas International and Freight. 

A big growth path

So what attracted him to the role at CLV? "When I actually sat down and asked myself what I love doing, I realised the answer involved taking something that fundamentally provides value, which the provision of accommodation for tertiary students does, and growing it.

At CLV, we are a little Aussie company punching above our weight around the world, and that’s a really great thing for us to be doing," he says. "But, I also think that this business is on a big growth path in each of the regions we operate in, and that’s exactly the sort of thing I love to do. So it was too good an opportunity to pass up."

This "little Aussie company", as Simon refers to it, is currently valued at around $2 billion. Since the first students moved into the Sydney University Village (its inaugural residence at the University of Sydney that opened in 2003), CLV has helped shape on-campus experience at universities around the world. 

As of the start of 2017, it has around 45,000 beds across Australia, New Zealand, the US and the UK, with plans to double that figure in the next 5 years. Clearly, student accommodation is big business.

CLV operates by what it calls a P3 model, or public–private partnerships. "What that actually means," he explains, "is that we will build a relationship with the university, where we build on campus on their land, and then we take out a lease on it for, typically, between 30 and 40 years. We then develop accommodation, which we own and operate." 

What happens after the lease has expired? "We haven’t been around for 30 years yet," he laughs. "But even now we are seeing that after 10 years, conversations are being had with the university about their future intentions.

So we don’t believe that the end of a lease will mean transferring the building back and walking away. Our discussions are about what more we can do and how we can keep the relationship going," he says. 

Live, learn & grow

By no means does CLV have the profitable campus accommodation market to itself, but what Simon believes distinguishes it is its ‘live, learn and grow’ program. "It’s part of our DNA," he says.

Much more than bricks and mortar, the completion of a residence is only the beginning at CLV. "We really provide the full service: not just building management or building maintenance, but working with the universities to provide ongoing pastoral care as well," he explains. From ‘getting to know you’ functions at the start of every academic year, to activities such as cooking lessons, "we put a lot of energy into getting the culture of a residence going," he says. 

"What we’ve learned is the quicker people get settled into their new home life at our residences, the quicker they get settled into university, find friendship groups and succeed in their studies."

But it doesn’t stop there. Noticing a spike in self-harm incidents across its properties, Simon and the CLV management team have implemented a global initiative on mental health in conjunction with universities. 

"We’re not counsellors, nor do we want to be Mum or Dad. But what we do want to do is ensure that people don’t feel isolated, so we are trying to ensure that we communicate well, that all our residents know where help is and how to access it," he says. 

A proactive attitude has also been adopted. "Research has shown that animals, for instance, enhance your mental health outlook. In the UK, we have worked with the Royal Society for the Blind to bring some of its puppies to the residents. It’s proved enormously popular and brought a real energy to the students," he explains.

Superior campus accommodation

He acknowledges that the countries where CLV currently has a presence share more than a common language. "Along with Australia, the US, the UK and New Zealand have the largest flow of international students, which is why we have chosen to be there," he says. Unsurprisingly, the company does "very, very well with international students in Australia and New Zealand," according to Simon.

Along with Australia, the US, the UK and New Zealand have the largest flow of international students, which is why we have chosen to be there.

"Purpose-built student accommodation is certainly one of the factors these students will look at when they initially arrive in Australia." But, in the UK and the US in particular, Simon has found that partners such as the University of Illinois see superior campus accommodation offerings as a crucial component in promoting overall student on-site experience, especially when faced with an increasingly compelling online alternative.

It’s been no secret in the financial press that CLV, through its investment bank UBS, has been seeking potential new investors as it pursues a growth strategy that will see it approach 100,000 beds in 2022. At the time of going to print, the deadline for expressions of interests was fast approaching. 

Whatever the outcome, the company is adamant that the business model won’t change. Simon identifies Ireland as the next country the company is looking to enter as it expands its footprint in established markets. "It will be an easy first step towards mainland Europe for us, a move which I think will ultimately be on the cards," he says.