The turmoil at fund manager Blue Sky and the write-down of its student accommodation assets has caught the attention of observers and investors in the fast-growing sector.

This month listed investment company Blue Sky Alternatives Access Fund saw the value ascribed to five of seven student accommodation funds slashed, two increase (by 4 per cent and 6 per cent) and the proceeds of one fund, Student Accommodation Fund 8, handed back with interest following the scrapping of a planned Sydney project.