STUDENT ACCOMMODATION EXCLUSIVE

Transcription

1 STUDIOS STUDENT ACCOMMODATION EXCLUSIVE ü 8.5% NET p.a. assured for 5 years ü Location with high demand for rooms ü Fully managed and hands-off investment

2 Executive Summary Uncover a new, low-risk and profitable investment venture, engineered for investors. How does the investment work? The concept is simple An opportunity to invest in an exclusive UK student accommodation investment and to benefit from proven and sustainable returns from this profitable sector. Investors purchase one or more en-suite rooms or studio suites which are leased back to a well-established management company on a rolling agreement so that the building, in its entirety, can be let as student accommodation. The managed turnkey nature of the investment allows investors a hands-off approach whilst taking advantage of increasing rate of returns and capital appreciation. Investors benefit from yields much higher than traditional buy-to-let investments. As the asset receives a higher income, it becomes more valuable and saleable every year, providing owners with the security that when they wish to exit the investment, the asset is just as attractive as when they bought it. THERE WAS 5 BILLION WORTH OF STANDING STOCK AND DEVELOPMENT SITES SOLD IN 2012 AND 2013, AND THE EARLY SIGNS FOR 2014 SUGGEST THAT WE ARE LIKELY TO SEE HIGH LEVELS OF INVESTMENT ACTIVITY THIS YEAR. IN THE FIRST FOUR MONTHS OF THE YEAR, THERE HAVE BEEN TRANSACTIONS WORTH 950 MILLION AND THIS EQUATES TO OVER 17,000 BEDS, CBRE SPOTLIGHT UK STUDENT HOUSING SECURED INCOME FULLY MANAGED PROVEN RETURNS 8.5% NET per annum Assured returns for 5 years Proven business model Full turnkey investment Established management company manages unit/s on your behalf Delivers a long-term, robust income stream Our range of student investment property has been specifically engineered for investors and provides an opportunity to benefit from proven and sustainable returns from the profitable student accommodation sector.

3 Student accommodation No.1 choice for property investment in the UK We first introduced student accommodation to investors seeking an alternative to the UK s more traditional property markets several years ago and during this time the sector has seen phenomenal growth. Our foresight combined with the rapid emergence of the sector has rewarded investors with strong returns. Total student housing transactions* 2.2 billion billion Key asset class 2015 ü The student buy-to-let market is now well established and increasing demand outstrips available supply ü Consistent occupancy rates of 99% deliver robust long-term, low-risk income streams ü Bad debts are virtually non-existent as students pay rent in advance ü 163 Higher Educational Insitutions (HESA) ü With no cap on the number of students who can study in the UK, Knight Frank forecasts that the number of international students in Higher Education will increase by 15% to 20% over the next five years ü 3% increase in student numbers (UCAS) ü 7% increase in applications from overseas students (Home Office, March 2014) ü The UK attracts 13% of the global market share (HESA) ü A record number of over 500,000 places were allocated for the student intake (UCAS) Once considered an alternative to the UK s more traditional property markets, the Knight Frank 2014 Student Property Index shows that total returns from student accommodation outperformed all other property asset classes in the year to September. This has been the case since The latest report published by the CBRE into the student property sector has revealed that this year has been the best on record. While the last two years saw student investment top 2 billion for the first time and then exceed this, 2014 has already surpassed what we ve seen in two record-breaking years. Market fundamentals supply and demand There were around 2.5 million students registered to study at the UK s 163 higher education institutions in *. In 1996/97 there were 1.8 million students and the dramatic expansion in student numbers has left most universities with an acute undersupply of accommodation. Existing housing provided by universities is often outdated and the availability of purpose-built, modern accommodation is a crucial part of their marketing plans to attract the growing student intake. With supply restricted and strong demand underpinning rental growth, now is the perfect time for investors to take advantage of current market conditions. *CBRE UK Student Housing MarketView November *Patterns and Trends in UK Higher Education 2013 (Universities UK in collaboration for HESA).

4 International students in the UK A growing market for high specification student accommodation Change in non-eu students by region of origin, and North America 32% Asia 114, ,525 Africa 25,025 35,255 North America 20,540 27,100 South America 14% Africa 41% Middle East 126% Other Europe 70% Asia 64% Australia 21% Main source countries for international students British Council The following summarises the British Council s forecast of demand for international student places in the UK: ü In 2003, 4 out of the top 10 countries with the highest demand for international student places in the United Kingdom were Asian, namely China, Malaysia, Hong Kong and India. ü By 2020, these same countries plus Pakistan will have assumed increasing importance in the top ten. ü By 2020, China could account for over 130,000 international students studying in the UK. Higher education students by domicile at UK higher education institutions ( ) 130, ,110 Total 2,501,290 2,073,065 Middle East 11,775 26,665 Other Europe 10,495 17,890 South America 3,595 4,090 Australia 2,055 2,475 Source: HESA ü Demand from India could grow to almost 30,000 students by Domicile UK EU Non-EU Source: HESA 2012 Students

5 Introducing UK Student Accommodation Exclusive, Luton Fully managed by

6 The Opportunity Luton, UK Investment Highlights Receive passive returns London Spring Place is a brand new, purpose-built student accommodation development which provides individual investors with an excellent opportunity to enter the lucrative student property market at an accessible level. The development comprises fully managed, en-suite rooms and self-contained studio suites which will be delivered fully furnished and finished to a high standard. The en-suite rooms will be arranged in clusters of 6 and will have access to a communal living area and kitchen. The self-contained studio suites will contain ensuite bathrooms and a fully functional kitchenette. With a favourable payment plan spread across the duration of the construction phase, en-suite rooms are available for 70,950. Upon completion will deliver 8.5% annual NET returns, assured for 5 years. 8.5% NET assured for 5 years Receive a passive income from the UK s no.1 asset class ü No finder s fee ü 8.5% NET returns assured for 5 years ü Luxury en-suite rooms available for 70,950 ü 250-year leasehold ü Managed by leading management company ü Established Developer with exemplary track record ü Target completion date Q WE HAVE UNDERTAKEN COMPULSORY DUE DILIGENCE ON LONDON SPRING PLACE, LUTON TO VERIFY THE BUYING PROCEDURE AND TO SATISFY THAT THE OWNERS OF THE PROJECT ARE IN A LEGITIMATE POSITION TO PROMOTE AND SELL THE INVESTMENT.

7 Location Luton, UK Luton Town Centre Home to over 24,000 students from over 100 countries, the University of Bedfordshire s main campus is located in Luton town centre. In 2004, the University was awarded by The Sunday Times with the title of Best New University. Its courses in Nursing and Midwifery are ranked number four in the country. The National Student Survey placed the University 28th in the country for student satisfaction, as well as ranking Journalism fifth in the country, Law seventh, Business 15th and Marketing 16th. The University opened a brand new 34m Campus Centre in 2010 and offers state-of-the-art facilities including 6m Campus Centre housing dance studios and a 280-seat theatre, 8m PE and Sport Science Centre and 1.2m Business Pods, unique in the UK, with work and chill-out areas and meeting rooms. Sought after location Bus Station Town Hall Library GUILDFORD STREET The Mall Luton Train Station 22 mins from London CHURCH STREET ST MARY S ROAD University of Bedfordshire 24,000 Students Luton The development is situated just 0.6 miles from Luton train station which offers good access around the town and into Central London. Hourly fast trains operate from Luton train station and take 22 minutes to get to central London. London Luton Airport is roughly 2 miles from the development and is easily accessible by train or bus. The airport is the UK s 5th largest with almost 9 million passengers recorded using the airport in A number of mainstream operators offer domestic and international flights. THERE ARE ALMOST FIVE APPLICANTS COMPETING FOR EACH AVAILABLE PLACE AT THE UNIVERSITY OF BEDFORDSHIRE, CRM MARKET ANALYSIS REPORT LONDON SPRING PLACE MIN 5WALK N Points of interest* The Mall 0.3 miles University of Bedfordshire 0.4 miles Library 0.6 miles Luton train station 0.6 miles London Luton Airport 1.9 miles * Distances are approximate. Source: Google Maps.

8 Management Company Opto Living For a hands-off investment, Opto Living has been appointed as the sole management company of London Spring Place. As a leader in the student property management market, Opto Living has an in-house team of individuals who will create bespoke marketing campaigns to promote the development to students studying at the University of Bedfordshire. 24,000 University of Bedfordshire Students 2,608 available purpose-built beds Opto Living is fully equipped to manage and market your unit/s on your behalf. Their expertise in the student property market will ensure that your investment is managed and maintained to the highest of standards. WE ARE CONFIDENT THAT THE ROOMS WITHIN LONDON SPRING PLACE WILL BE A DESIRABLE CHOICE FOR STUDENTS STAYING IN LUTON. THE BUILDING S MODERN FEATURES AND ITS CLOSE PROXIMITY TO THE UNIVERSITY CAMPUS AND TOWN CENTRE WILL HAVE A STRONG APPEAL, OPTO LIVING ONLY 28% OF STUDENT ACCOMMODATION MEETS RISING EXPECTATIONS, 2013 STUDENT ACCOMMODATION TRACKER.

9 Specification ü En-suite and studio suites ü 24 hour CCTV security and controlled building access ü Communal courtyard ü Fully equipped state-of-the-art gym ü Cinema room ü Onsite management team & manned reception ü Lounge area with LCD TVs ü Study and meeting rooms ü Visitor parking ü Games room with pool table and gaming stations ü Onsite laundry ü Outdoor leisure and sports facilities to include beach volley ball, basketball, table tennis and an outdoor cinema KITCHEN Contemporary with high gloss finish interior designed to match with bedroom furniture Integrated electric oven and hob Stainless steel sink & drainer Integrated fridge/freezer BATHROOMS Bathroom pods fabricated off site for increased quality control Contemporary white sanitary ware and large back lit wall mirror Slimline shower trays with glass screens INTERIOR FINISHES Vinyl, wood effect flooring supplied by Amtico Contemporary walnut finish fire doors throughout White painted, square edged skirting boards Low voltage LED lighting throughout Mains smoke detectors USB charging points to all rooms FURNISHINGS Double bed and mattress Built-in wardrobe Versatile storage space Dining table and chairs Sofas and coffee table to cluster communal room 42-inch TV to cluster kitchens, meeting rooms and common rooms Desk and swivel chair to every student room EXTERIORS High quality aluminium clad exterior with lightweight glazing to upper floor and feature elevations Grey UPVC framed double glazed windows Communal garden with planting External games area, volleyball and basketball courts Secure cycle parking Contemporary wall mounted external lighting SECURITY Secure audio door entry system CCTV to external and internal areas monitored continually by Building Management Access control to cluster areas to restrict unauthorized access

10 Ease of Purchase Financial Breakdown Each studio room shall be sold on a leasehold basis for a period of 250 years. ü Choose your property and pay 5,000 Reservation Fee ü The solicitors will assist the purchaser through to Exchange of Contract (within 28 days)* ü 50% of the purchase price is required on Exchange of Contracts, less the Reservation Fee = 30,475 ü 30% is payable by 1st April 2016 = 21,285 ü 20% on Completion = 14,190 STUDIO ROOMS Investment Returns INCOME FROM 6,030 PER ANNUM MODERN STUDIO ROOMS DELIVERED FULLY-FURNISHED PURCHASE PRICE 70,950 NET YIELD: 8.5% ( 6,030 PER ANNUM) ASSURED FOR 5 YEARS FULLY MANAGED OPPORTUNITY SOUGHT-AFTER LOCATION WITH HIGH DEMAND FOR BEDS *A TEAM OF COMMERCIAL SOLICITORS, EXPERIENCED IN THE STUDENT ACCOMMODATION INVESTMENT MARKET, HAVE BEEN APPOINTED TO ACT ON THE BEHALF OF INVESTORS. AVAILABLE FROM 70, % NET RETURNS ASSURED

11 Investor Security Safeguard of Funds Is the sale handled by UK lawyers? Yes. A team of commercial solicitors, experienced in the student accommodation investment sector, have been appointed to act on the behalf of investors. Who will manage my investment? All units within the development will be managed by a specialist student management company, Opto Living. Opto Living will market, maintain and manage your room on your behalf to provide you with passive returns. Can I sell my unit/s at any time? Investors are permitted to sell at any time after Exchange of Contracts. Proven Returns Hassle-Free Ownership Is there a rental assurance in place? Yes. The first 5 years are assured at 8.5% NET. When is my rental income paid? Rental income is paid quarterly in arrears direct to your chosen bank account from completion. As a non-resident in the UK am I taxed on this income? If you are a UK resident then yes you will be subject to tax. If you are a non-resident in the UK then you are classed as an overseas landlord and may apply to HMRC in the UK for exemption. Please note we cannot guarantee that an application to receive rent with no tax deductions will be accepted. DEMAND FAR OUTSTRIPS SUPPLY IN UK UNIVERSITIES WITH AROUND 1.3 APPLICANTS TO EVERY ACCEPTANCE IN 2012, LEAVING MANY UK STUDENTS UNABLE TO OBTAIN A PLACE AT UNIVERSITY, THE GUARDIAN.

12 Optamac Realty Worldwide LLP A-12 FIEE< Okhla Phase-2 New Delhi (11) (11) Disclaimer This document is intended to provide general information concerning the proposed development, construction and management of London Spring Place, New Street, Luton LU1 5DQ. The information provided has been prepared in good faith and to give a fair overall view of the Development. The photographs and electronically generated images, furnishings and accessories featured are for illustrative purposes only. This document and all information provided by us at our web site at or otherwise is based upon information provided London Luton New Street Student Accomodation Limited. (the Vendor) to ExperienceBG Limited t/a Experience Invest ( Experience, we, us, our ) and is provided on a confidential basis. This document is for the sole use of potential business partners and/or prospective purchasers. Reasonable care has been taken by us in the preparation of this document but we do not accept any responsibility or liability for the information which has been provided by the Developer. We further do not accept responsibility or liability of views or opinions herein provided or provided by us or on our behalf (whether orally or in writing) unless we have expressly confirmed such information and/or views and/or opinions in writing as being such that it should and can be relied upon. The information provided should not be taken as advice in relation to the Development. We do not warrant the accuracy or completeness of the information and/or measurements and/or financial returns provided in this document. These have been provided by the Vendor and we believe them to be correct. You acknowledge that you should and will make your own enquiries before proceeding to purchase. Nothing in this document is or should be relied upon as a representation, warranty or promise as to the past, present or future performance of Experience, the Vendor or any person directly or indirectly connected with and of them. We recommend that all appropriate commercial, tax and legal enquiries and advice is obtained before entering into a legally binding contract to purchase a property forming a part of the Development. Copyright in and to this document and its contents belong to ExperienceBG Limited.