Luxury Student Accommodation. Leeds, UK

Transcription

1 Luxury Student Accommodation Leeds, UK

2 Why Invest In Student Accommodation? Student property returns will continue to outstrip traditional asset classes into The Knight Frank Student Property Report 2014 Traditionally students in the UK shared outdated private houses or lived in substandard university owned halls of residence that lacked facilities, security and maintenance. Students today have evolved from those in the past, becoming sophisticated consumers; they have come to demand more from their accommodation. Students want high quality, new build apartments with en-suite bathrooms, great facilities and security, close to university campuses and amenities, leaving them able to concentrate on what is important; their studies. High quality accommodation is an important factor for a student when going to University. It is a vital part of the education experience, building independence and confidence within their new educational environment, helping them to achieve their full potential in their studies. The student property sector is now worth 200 billion globally, growing faster than ever before - The Financial Times 2012

3 Why Invest In Student Accommodation? Student accommodation has proved to be an extremely lucrative investment. Data from the National Union of Students show that rent for purpose built accommodation has continued to rise above the rate of inflation. Since 2006, the cost to the student has increased by a massive 53%, rising from to in 2012; no wonder the student sector has been ranked by The Times as the top asset class in the UK s property market. The sector is now worth 200 billion globally, growing faster than ever before. As rental values remain so high across the board students are willing to pay more for quality accommodation. The UK also remains an increasingly popular location for overseas students to study with China, Hong Kong, India and Nigeria accounting for more than 30% of all international students in the UK. Overseas students make a huge contribution to the UK; boosting the economy and enhancing cultural life. With no cap on the number of students who can study in the UK, Knight Frank has forecasted that the number of international students in Higher Education will increase by 15%-20% over the next five years. With international students the driving force behind the demand for purpose built accommodation, this sector is sure to go from strength to strength. This will certainly boost demand for luxury student accommodation. Source: NUS Student Accommodation Cost Survey 2012/2013 With the Times recently ranking the UK 2nd in the world s top 100 Universities (after the USA), the demand for University places in the UK is still extremely strong. There is a continued oversubscription of applications for university places, with 14 applications for every 10 places; an 8% increase over the last five years. Source: Knight Frank Student Report 2014

4 Why Invest In Leeds? Leeds recently topped a list of university towns and cities that could benefit from more purpose built student accommodation. Currently, large amounts of students are living in HMO s (houses of multiple occupations), putting a huge strain on those tenants and families looking for accommodation in the area. A recent report from Savills says that 3,889 homes in Leeds could return to family use if students moved into purpose built student accommodation. This would mean that demand for student accommodation would further increase as the city looks to move students into specialist, modern accommodation. The largest financial district outside of London Demand for student accommodation is rising in Leeds. Located in the largest financial district outside of London, this has made the city a popular university destination, with student numbers rising annually. With 54,857 full time students in Higher Education, the city is struggling to offer the high quality accommodation that is currently being demanded by a new generation of consumer student. The Universities in Leeds can only provide accommodation to just 24% of students There are only 13,147 student rooms that the universities supply, meaning that there is a massive 76% of students that are left looking elsewhere for suitable accommodation. These students usually have to live at home or find alternative accommodation in the private sector. Investors are perfectly placed to take advantage of this shortage. Institution Total Number of Full Time Students University Accommodation (bed spaces) % of bed spaces to F/T Students The University of Leeds 28,575 7, % Leeds Metropolitan University 20,925 4, % Leeds College of Music % Leeds Trinity University College 2, % Leeds College of Art 1, % Leeds City College % BPP Law School % Total 54,857 13, %

5 The Opportunity Standing side by side, Asquith House and Austin Hall are purpose built, off plan developments comprising of a total of 298 en-suite bedrooms and studios over 6 levels. Asquith House has 128 en-suite bedrooms and 28 studios and Austin Hall has 114 en-suite bedrooms and 28 studios. All student bedrooms are arranged in apartments of 4 and 6 bedrooms, each sharing a communal area complete with kitchen, dining area and lounge. Studio rooms are more private and contain their own kitchenette. External Building Situated on Servia Road, the site is a convenient 5 minute walk to The University of Leeds and Leeds Metropolitan University campuses and just a 10 minute walk into the city centre. Being so close to both main university campuses, students will benefit from living and studying within a thriving student hub with an abundant of cafes, bars, restaurants and shops. Asquith House and Austin Hall are certainly the ideal base for students to live and enjoy the best of student living. Both buildings are named after leading figures in British history who were born and bred in Leeds. Asquith House is named after former Prime Minister Herbert Henry Asquith, who served as the Liberal Prime Minister of the United Kingdom from 1908 to Austin Hall is named after the English poet Alfred Austin who was appointed Poet Laureate in 1896 upon the death of Alfred Lord Tennyson.

6 Leeds Student Accommodation Asquith House and Austin Hall

7 Specifications Student Bedroom Sizes range from 13-24m 2 Student units are in apartments of 4 and 6 bedrooms and will be equipped with: Small double bed (4ft wide) Fitted wardrobes Workstation with study chair Shelving and drawers En-suite bathroom with shower cubicle, vanity sink unit and toilet Carpet, blinds and light fittings Internet with hi speed Wi-Fi or Ethernet connection En-suite Bedroom

8 Specifications Communal Areas The shared communal areas in each cluster unit will be equipped with: Fully fitted luxury kitchen Fitted oven hob and extractor Fridge Freezer Microwave Breakfast bar and seating Lounge with sofas and flat screen TV Communal area for 4 bedroom apartment

9 Specifications Studios Sizes of the rooms are 20m 2 Studios are equipped with: Small double bed (4ft wide) Fitted wardrobes Kitchenette with fitted oven, hob and sink with dining area Workstation with study chair Shelving and drawers En-suite bathroom with shower cubicle, vanity sink unit and toilet Carpet, blinds and light fittings Internet with hi speed Wi-Fi or Ethernet connection Studio

10 Specifications Ground Floor The ground floor gives access to: Reception with lobby and seating area Laundry area Staff offices Communal toilets Cycle store Bin store Reception Area

11 Specifications Apartment Opportunity As well as purchasing individual units we are also giving Investors the opportunity to purchase whole apartments to expand their portfolio. An apartment includes 4-6 bedrooms and a communal area giving access to a kitchen, dining area and lounge. 6 bedroom apartment Total apartment sizes: 4 bedroom apartments m 2 6 bedroom apartments m 2 in size Communal area for 6 bedroom apartment

12 About Leeds Location: North England, West Yorkshire Region Population: 757,500 Total Student Population: over 60,000 Leeds is a vibrant city, rich in culture and heritage. With beautiful Victorian architecture contrasted with urban redevelopment, the skyline has been transformed and Leeds is fast becoming one of the most dynamic cities in Europe. With a thriving arts scene, rich sporting heritage and pulsating nightlife, Leeds offers a unique mix of European gusto and Yorkshire warmth. The UK s largest city region outside London - Leeds City Council The compact city centre is easy to explore, and boasts breathtaking architecture like the Leeds Town Hall, and the Victoria Quarter. Fantastic attractions offer something for everyone, with entertainment, sport and theatre alongside world-class museums and galleries such as The Royal Armouries, Leeds Art Gallery and Leeds City Museum. In contrast to the busy centre, Leeds is surrounded by beautiful countryside with the idyllic Yorkshire Dales and the Peak District being right on its doorstep; an inspirational location for the many students that reside here. Considered to be Yorkshire s urban jewel, Leeds made its fortunes in textiles and tailoring in the industrial revolution in the 1800 s. Today the area has been regenerated and is now a financial and legal hub. High paced city living coupled with the slow pace of the Yorkshire Dales makes Leeds the perfect location for students and visitors alike.

13 A vibrant City rich in culture and heritage

14 About Leeds Economy Located in the heart of the UK, Leeds is the UK's fastest growing city. It is the second largest employer outside London and is a major centre for banking, finance, law, retail and media. An economy bigger than 8 EU countries Massive levels of investment continue to establish Leeds as one of the top cities in the UK. This year alone the city has launched 2 major developments; a new 350 million shopping centre Trinity Leeds, and the Leeds First Direct Arena. These developments have provided a significant boost to the citys economy of Leeds, helping to raise its profile on both the national and international stage. Facts: Financial Capital of the North An economy bigger than 8 EU countries The largest and fastest growing workforce of any UK city region Some of the UK s leading companies are based in the city: First Direct, GE Capital, Alliance & Leicester, Halifax & Direct Line Service industries account for over 80% of total employment The UK s third-largest manufacturing centre Strengths in advanced engineering, printing, chemicals and food Best city in Europe in terms of value for money of office space Britain s Best Place for Business (OMIS)

15 About Leeds Transport Excellent local, national and international transport links Leeds is centrally located to access all parts of the country. Half way between London and Edinburgh, the region has access to excellent local, national and international transport links; ideal for helping the large student population get around easily. Leeds-Bradford International Airport is just 10 miles north of the city centre and connects to UK and European destinations. Manchester airport is just 60 minutes away and is ideal for international travel. Travelling by train is extremely accessible, taking just 2 hours to London and 6 hours to Paris and Brussels. Train Times

16 Leeds North England, UK The University Of Leeds Leeds Metropolitan University Leeds City College Leeds College of Art Leeds College of Music - 5 min walk - 10 min walk - 20 min walk - 4 min walk - 22 min walk First Direct Arena Leeds Central Library Leeds Art Gallery Leeds Opera House Theatre Shopping Quarter Leeds Train Station Leeds City Bus Station Leeds General Infirmary - 11 min walk - 16 min walk - 16 min walk - 16 min walk - 15 min walk - 24 min walk - 24 min walk - 15 min walk

17 Leeds Universities

18 The Universities Leeds is the second largest provider of education in the UK. With over 60,000 full and part time students, Leeds is home to 2 universities and 5 colleges of Further Education which include the College of Music and College of Art and Design The University of Leeds Established in 1904, the University of Leeds is part of the Russell Group - a group of the UK s top 24 research - led universities 28,575 full time students Within the top 100 universities in the world (QS World Rankings 2013) Awarded 19 National Teaching Fellowships more than any other institution in the UK Nine faculties including Biological Sciences, Business, Engineering and Medicine. 6,121 International students from 141 countries

19 Leeds Metropolitan University Gained university status in ,925 full time students Over 3,000 international students from 116 different countries around the globe Leeds Trinity University College Founded as a teacher training college in the early 1960 s 2,760 full time students Top 10% in the UK for Teaching Excellence (Sunday Times University Guide 2013) Has the largest business school of its kind in the UK Has four faculties; Arts, Environments and Technology, Health and Social Sciences, Business and Law and Carnegie. 91% of graduates are in work or further study six months after graduating (HESA) Departments include Media, Film and Culture; Journalism; Business, Management and Marketing; Psychology; Sport, Health and Nutrition.

20 The Management Urban Student Life Delivering the next generation of student accommodation Urban Student Life (USL) offers a commitment to their owners and students via their charter. Their relationship with you as owner is long term and transparent. They are committed to the students, offering outstanding levels of services and security which surpass those offered by competitors. USL specialise in deposit management. Rooms are checked on a regular basis and students will have money deducted from their deposits to cover any damages. This will ensure that your unit is regularly maintained to keep it in excellent condition. In addition there is a sinking fund to cover maintenance of communal areas. This means peace of mind for you the investor- you are safe in the knowledge that your unit is ready to let in great condition at all times without incurring any cost to yourself.

21 The Contractor PHD1 Ltd With Over 25 Years Experience in new Property Development Leeds Student Development will be built by PHD1 Ltd. They were formed in December 2010 to develop new homes for local Government Departments and secured contracts in the first year for over 3m. The directors of the company have over 25 years hands on experience in new property development, developing over 1,000 properties at a build value of 125m. The company is registered as an accredited builder with the NHBC and a member of the Considerate Construction Scheme. Their dynamic approach forming partnerships on Joint Ventures enables them to design, develop and deliver outstanding value for the investor. The development will benefit from a 10 year warranty to give investors peace of mind. Previous developments include Falkland House in Liverpool and Trinity Hall in Chester. The Developer Pinnacle Student Developments (Leeds) Ltd Pinnacle Student Developments (Leeds) Ltd has been formed by the director of Pinnacle MC Global Network Julie Harvey, and PHD1 Ltd. Their previous joint ventures include the successful Chester Student Village; comprising of Trinity Hall and Waterside Court, Canterbury Student Village, The Paramount and Falkland House in Liverpool, which sold out in just 6 weeks.

22 Previous Projects Trinity Hall, Chester Located in the historic university town of Chester, North West of the UK, phase 1 of Trinity Hall was complete ready for the September 2013 student intake. The City of Chester is currently experiencing a massive shortfall of student accommodation and the University is only able to offer accommodation to 65% of first year students. With an urgent demand for 2000 student rooms, Pinnacle MC Global were able to successfully supply the shortfall for high quality student accommodation in the area. 85 Luxury en suite rooms over 4 levels 9% Yield over 5 years Originally an old school house in 1908 Phase 1 complete 100% occupancy of available rooms Phase 2 due January 2014 Waiting list of tenants for phase 2 Tenants from France, Germany, Italy, Canada and the UK

23 Previous Projects Falkland House, Liverpool Launched in September 2012, Falkland House sold out in just 6 weeks. With an under supply of student accommodation Falkland House was able to meet the demand for high quality units, offering larger than average size rooms, great location and a top management company. Phase 1 and 2 of Falkland House completed on time ready to welcome in students for the new academic year in September This investment opportunity offered investors a chance to enter the lucrative student property market at an affordable level with a 5 year assured yield from 9%. 106 hotel-style units over 8 floors Range of en-suite bedrooms, studios and one bed apartments Net yield of up to 9% assured for 5 years Fantastic location near to city centre and universities Sold out in just 6 weeks Phase 1 and 2 are 100% occupied Phase 3 due to complete on or before 2nd January. Waiting list of tenants for phase 3. Tenants from Thailand, Spain, France, Ireland and UK

24 Purchase Process Choose a student unit Pay reservation fee Instruct Solicitors Exchange of Contracts Stage Payment Completion En suite Bedroom

25 FAQ What is the full address? Servia Road, Leeds, LS7 1NJ (approximate postcode) Is it a new build or a refurbished development? It is a new purpose built student accommodation. How much are the units? Student bedrooms are priced from 52,995 and studios from 74,995. What is the assured yield? Minimum assured yield from How long is the lease and what is the ground rent? The lease is 999 years and the ground rent is 500 per annum. Are the rooms furnished? Yes- All rooms are furnished to the highest specification. Please see brochure for room specifications. How do I reserve a property? Complete a Reservation Agreement Form and pay the fee to reserve your unit. This will be deducted from your exchange payments. How will the payments be structured? Pay reservation fee, upon exchange pay 50% (less the reservation fee) a stage payment of 30% and a final payment of 20% on completion. When will contracts be issued? Once we receive the reservation form and fee we will instruct solicitors. The contract will be sent to the investor once the money laundering and ID checks have been done and client care letter has been signed and returned. We will appoint a solicitor on your behalf to handle the legal process for you. They will ensure that all the necessary legal searches have been done. The seller s solicitor will be: David Roberts. David Roberts and Co, Victoria House, Victoria Road, New Brighton, CH45 2JF The buyer s solicitor will be: Charles Agar, FDR, 21 Bold Street, Warrington, WA1 1DG When will the contracts exchange? Mid January 2014 When will the building be complete? April, 2015 When will it be occupied and when will I receive my income? The unit can be occupied by January 2015 and you will receive payment 3 months in arrears. Who will manage the development? The development will be managed by Urban Student Life; a specialist in managing student accommodation. The management costs are around 25%. This covers operating costs, management and service charges. The operating costs include insurance, staffing, marketing, cleaning utilites and office services. This also includes a sinking fund to cover maintenance and repairs, remembering that students pay a deposit with a parental guarantee to cover any individual damages.

26 Disclaimer: All images and information about the development are provided as an indication of the likely style and specification of the development. These plans are not finalised and may be subject to change. (C) Pinnacle MC Global Network Ltd