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Executive Summary

EduStay Student Residences (Pty) Ltd is a Braamfontein-based student accommodation business built to serve Wits, the University of Johannesburg, and nearby TVET college students with safe, modern, and affordable housing. We operate a 40-bed residence model in Johannesburg, offering fully furnished rooms, uncapped Wi-Fi, study spaces, biometric access, and onsite management in one predictable monthly package.

Our core customers are NSFAS-funded students and private-paying families who need a residence they can trust. We solve the daily reality of overcrowded, unsafe, and poorly managed student digs by giving students a compliant, professionally run living environment that supports attendance, study time, and retention.

Why EduStay Wins in Braamfontein

Braamfontein remains one of Johannesburg’s strongest student housing nodes because demand is concentrated around major campuses and transport corridors. The opportunity is large enough to support our first residence and our planned expansion into additional beds across nearby student-heavy areas.

Our market focus is clear: students aged 18–26 who want proximity, security, and predictable monthly costs. We are not chasing generic rental demand. We are building a student-only accommodation platform with a product and operating model designed around the academic calendar.

:::reassure Investor confidence point
EduStay is already anchored in a real demand pool and a clear location advantage.

• Based on DHET and university enrolment data, there are well over 80,000 students within reasonable commuting distance of Braamfontein.
• Even if only 30% seek off-campus housing, that leaves an addressable market of about 24,000 students.
• That demand base is more than sufficient to support our first 40 beds and future growth.
  :::

What We Sell and How the Business Scales

We generate recurring revenue from monthly student rentals on 10–12 month lease cycles. Our main packages are shared rooms and single rooms, priced to balance affordability with strong unit economics and a high-quality residence experience.

The business is structured to scale from one building to a broader Johannesburg footprint over five years. We will grow carefully, keeping the same service model, the same occupancy discipline, and the same focus on student outcomes as we add beds.

At a glance

• Business name: EduStay Student Residences (Pty) Ltd
• Location: Braamfontein, Johannesburg
• Structure: South African registered Pty Ltd
• Year 1 revenue: ZAR 1,555,200
• Year 3 revenue: ZAR 3,557,209
• Year 5 revenue: ZAR 6,036,196
• Break-even timing: approximately Month 24
• Funding required: ZAR 1,100,000

Financial Momentum and Profitability Path

The financial model shows a disciplined ramp-up with strong upside after launch. Year 1 revenue is ZAR 1,555,200, with a gross margin of 75.0% and EBITDA of ZAR 14,400. Net profit is -ZAR 143,100 in Year 1 because launch costs, financing costs, and occupancy ramp-up weigh on early results.

That early loss is deliberate and manageable. The model turns sharply positive in Year 2, with revenue rising to ZAR 3,197,491 and net profit reaching ZAR 689,090, before climbing to ZAR 796,951 in Year 3, ZAR 1,262,357 in Year 4, and ZAR 2,016,525 in Year 5.

Our break-even point lands at approximately Month 24, which aligns with the time required to stabilise occupancy, complete the second phase of growth, and move the business into a stronger cash-generating position.

:::warning Funding reality
The first year is not presented as profit-positive, and that is intentional.

• Year 1 net profit is -ZAR 143,100
• Year 1 DSCR is 0.06
• The model only becomes lender-comfortable after the residence is fully stabilised
  :::

Funding Ask and Capital Use

We are seeking ZAR 1,100,000 in total funding, structured as ZAR 400,000 in equity capital and ZAR 700,000 in debt principal at 12.5% over 5 years. This capital package gives EduStay enough runway to open properly, cover early operating pressure, and preserve flexibility for planned expansion.

The funding is aligned to a real asset-backed operating model rather than speculative growth. It supports the fit-out, security, and working capital needed to launch a compliant student residence that can produce dependable rental income.

:::tip What the capital supports
The funding is directed toward:

• building deposits, renovations, furniture, security, Wi-Fi, and professional setup
• a working capital reserve for the first 6 months of operations
• the runway needed to stabilise occupancy before the business reaches full operating strength
  :::

Our Operating Position and Management Strength

EduStay is led by the founder, who brings three years of long-term rental management experience in Johannesburg and owns the majority stake in the business. Operations are managed by Refilwe Mahlangu, a diploma holder in Hospitality Management with 8 years of experience in guesthouse and student residence operations, while Bongani Sithole, with 5 years of security and facilities management experience in inner-city buildings, oversees onsite control and access discipline.

Finance and compliance support comes from Tumelo Khumalo, a part-time bookkeeper with an accounting diploma and 6 years of SME finance experience. As the business scales, Naledi Tshabalala, who holds a degree in Marketing and has experience managing social media for a youth-focused NGO, will support student acquisition and brand growth.

That mix gives us the right balance of property, hospitality, security, finance, and marketing capability to operate a residence business at professional standard.

Why the Opportunity Is Investable

EduStay has a focused market, a clear operating format, and a five-year financial trajectory that becomes significantly stronger as occupancy and scale increase. The model is built around a 75.0% gross margin, rising cash generation, and a closing cash balance that grows from ZAR 109,140 in Year 1 to ZAR 3,670,014 in Year 5.

The business is positioned to become a credible student accommodation platform in Johannesburg, starting with Braamfontein and extending into nearby inner-city student nodes. For investors, lenders, and finance partners, the attraction is simple: a defined need, a manageable funding ask, and a recurring revenue model with visible upside once the first residence stabilises.

EduStay is built to give students a safer place to live and finance partners a clearer student-housing asset to back.

Company Description

EduStay Student Residences (Pty) Ltd

EduStay Student Residences (Pty) Ltd is a South African private company based in Braamfontein, Johannesburg. We provide safe, modern, and affordable student accommodation for students studying at Wits, the University of Johannesburg, and nearby TVET colleges.

We operate in ZAR and are structured as a registered Pty Ltd, with the founder holding the majority of the equity and a smaller equity stake reserved for a future operational partner and potential investor. The business was founded to meet a clear housing gap in inner-city Johannesburg, where students still face overcrowded rooms, unreliable landlords, unsafe buildings, and inconsistent access to the basic services needed for academic success.

What EduStay Offers and Who We Serve

Our core business is the conversion and operation of multi-unit houses and small apartment blocks specifically designed for student living. We lease and fit out buildings close to campus, then rent beds on monthly student agreements that are simple, predictable, and all-inclusive.

We serve two primary customer groups:

• NSFAS-funded students who need affordable, compliant accommodation with transparent pricing.
• Private-paying students whose families want secure housing near campus with stable internet, study-friendly spaces, and reliable management.

Our accommodation model is built around fully furnished rooms, uncapped Wi-Fi, study spaces, biometric access control, and onsite management. Students do not need to source furniture, manage utility surprises, or negotiate with informal landlords.

We are positioned as a boutique student residence operator, not a high-density commune.
Our value lies in safety, location, consistency, and disciplined management.

Legal Structure and Ownership

EduStay Student Residences operates as EduStay Student Residences (Pty) Ltd under South African company law. This structure supports investment, formal lending, and clean governance, while keeping ownership transparent and commercially credible.

The founder is the majority shareholder and leads the business on a long-term ownership basis. A smaller equity allocation is reserved for a future operational partner and potential investor, allowing us to bring in additional strategic capacity without losing control of the residence brand and operating standards.

Ownership Position

Stakeholder	Role	Equity Position
Founder	Majority shareholder	Majority equity interest
Future operational partner / investor	Strategic growth partner	Minority equity stake reserved

This ownership structure gives EduStay room to scale responsibly while keeping day-to-day decision-making aligned with the residence’s quality standards and student-first operating model.

Location and Operating Footprint

Our primary operating base is Braamfontein, Johannesburg, one of the most important student accommodation nodes in South Africa. The location gives us direct access to Wits, UJ, and surrounding institutions, as well as transport routes used daily by students moving between class, campus, and part-time work.

Braamfontein also supports our broader acquisition strategy. As we grow, we intend to extend operations into nearby student-heavy areas such as Auckland Park and selected inner-city nodes where converted residential stock can be repositioned for student use.

The location is commercially attractive because students value reduced commute times, safer walking routes, and access to food, retail, libraries, and public transport. Parents and guardians also view proximity to campus as a risk reducer, especially where off-campus housing quality is uneven.

Founding Purpose and Mission

EduStay was founded to provide a better housing experience for students who need more than a bed. We created the business around the reality that academic performance is directly affected by living conditions, daily security, internet reliability, and the ability to study in peace.

Our mission is to deliver safe, modern, and affordable student accommodation that supports academic success in Johannesburg. We do this by combining compliant property standards with practical residence management, so students receive housing that is both financially accessible and operationally dependable.

:::reassure Why the market responds to our model
Our residence model resonates because it solves the most common pain points students face in off-campus housing:

• Unsafe or overcrowded rooms
• Poor maintenance response times
• Unpredictable monthly costs
• Weak internet and poor study conditions
• Lack of accountability from informal landlords
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What Makes EduStay Commercially Distinct

EduStay is designed around a clear service proposition: professional student housing in a location students already want, priced for affordability but delivered with a higher standard of management than typical digs.

We focus on:

• Lower bed density than overcrowded student houses
• Fully furnished rooms with functional, durable fit-outs
• Uncapped Wi-Fi for study, assignment submission, and online learning
• Biometric access and other security controls
• Onsite management to resolve issues quickly
• Clear house rules that protect the study environment
• All-inclusive pricing that reduces friction for students and families

This positioning matters because students are not simply buying shelter. They are buying continuity, predictability, and an environment that reduces distractions during the academic year.

Management Philosophy and Governance

The company is founder-led and built around strong operational oversight. The founder has three years of experience running long-term rentals in Johannesburg and is responsible for strategy, finance, and landlord and university relationships.

Day-to-day operations are supported by a residence operations team that includes Refilwe Mahlangu, a diploma holder in Hospitality Management with 8 years of experience in guesthouse and student residence operations, and Bongani Sithole, an onsite residence supervisor with 5 years of security and facilities management experience in inner-city buildings. Finance and compliance support is provided by Tumelo Khumalo, a part-time bookkeeper with an accounting diploma and 6 years of SME finance experience. As the portfolio expands, Naledi Tshabalala, who holds a degree in Marketing and has experience managing social media for a youth-focused NGO, will support growth marketing and tenant acquisition.

This mix of property, hospitality, security, bookkeeping, and marketing capability gives EduStay the operational depth needed to manage student residences professionally.

Strategic Growth Position

EduStay is built to scale from a 40-bed first property into a multi-building student accommodation platform over the next five years. The business is initially focused on stabilising one residence in Braamfontein, then expanding into additional buildings where student demand remains strong and consistently under-supplied.

Our long-term objective is to build a trusted South African student accommodation brand that can serve students across Johannesburg with repeatable standards, strong occupancy, and reliable cash generation. We are not relying on speculative demand. We are targeting a large, well-defined student market that already needs secure, affordable, and professionally managed housing.

:::tip Investor-readiness signal
The business is already defined by:

• A formal legal entity
• A clear student-only customer base
• A specific operating geography
• A practical service model
• A management team matched to the operating requirements of the asset
  :::

EduStay Student Residences is therefore more than a rental concept. It is a focused student housing operator built for Braamfontein, structured for growth, and designed to serve students who need accommodation that is safe, modern, and dependable.

🔒 Continues in the full version

The remaining 9 sections of this document cover:

• Products and Services
• Market Analysis
• Competitive Analysis
• SWOT Analysis
• Marketing and Sales Strategy
• Management and Organization
• Operating Plan
• Financial Plan and Projections
• Funding Request

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