MAKSONS HOUSE 52 STATION ROAD, UB7 7BT

DRAFT

GREATER REVERSIONARY STUDENT INVESTMENT OPPORTUNITY West Drayton is the most in-demand area for home “ buyers in the capital (Rightmove 2018)

INVESTMENT SUMMARY

• Fully-refurbished student accommodation • 3 miles north of London , • The area is one of the fastest growth areas • There is scope to significantly grow the scheme of 29 luxury studio beds in the Europe’s busiest airport, handling over in the UK with average house prices rising income through both asset management heart of West Drayton; 70 million passengers each year and by 62% over the last 5 years; initiatives and increasing the number employing 76,600 people directly; of rooms through further development • 300 metres from West Drayton railway • Freehold with exception of a small parking (potential for an additional 7 studios station, which will benefit greatly from • 100% occupied for the 2018/19 term with area held long leasehold; equating to a gross rental increase of c. (opening 2019), reducing journey 97% of students attending Brunel University £100,000 per annum); times into locations by 45%; London; • All rooms are ensuite and fitted out to a high specification to include ¾ size double • Offers are invited in excess of £6,275,000, • 8 minutes journey time to Brunel • Current gross income of £426,289 per beds, fully-fitted kitchenette with fridge/ reflecting a net initial yield of 5.25% and a University London (Ranked 59th in annum, net income of £338,907 per annum, freezer and microwave oven/grill, Oak net reversionary yield of 5.50%, assuming The Times University Guide 2019); based upon actual 2018/19 operating costs hardwood floors / doors and wall-mounted usual purchaser’s costs of 2.80%. of £2,827 per bed; flat-screen TVs; LOCATION Baker Street Tube A40 West Drayton 1a Maksons House is located in the heart of West Drayton, a popular suburbanM40 town 1 A466 on the edge of West London, within the LondonOxford Borough16 of . It is an area O . X

D F . that has already seen the benefits of its ongoing regeneration and is located justR 16 O R B467 D

M R D . A40 A D H K miles (25.7 km) west of prime Central London and 3 miles (4.8 km) north of London R R N R E O A D A D L D P E Hilingdon Heathrow, Europe’s busiest airport, handling over 70 million passengers each year. I WE F Tube STE E RN AV R ENUE

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H S TA West Drayton benefits from excellent road communications with Junction 4of T Bellclose Road WEST DRAYTON Central London IO N the M4 motorway located within 1.5 miles (2.4 km) south accessed via the A408 Uxbridge SUBJECT PROPERTY R O . Tube A D D Stockley Road. This in turn provides direct access to the M25 motorway (Junction R M D GHA A 15) and the national motorway network. ROCKIN O

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Y r Hillingdon WEST DRAYTON a

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n L Golf Course H RD. d UG W LSO Un The area is served by West Drayton railway station, which is currentlyA4007 undergoing O i C o n A4020 extensive redevelopment ahead of the arrival of Crossrail (Elizabeth Line) in 2019, C 4 A412 a

n H U a X I l BR delivering regular services to into Central London with a typical journey time to G Brunel Porters Way I H D d M25 G h Roa R E rc London of 20 minutes and westerly into Reading in 30 minutes. E University R Chu O O N A

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D London R Langley E V Hayes New analysis by Rightmove (February 2018) foundPark West Drayton is the most in- I demand area for home buyers in the capital with properties taking an average of A408 Hillingdon just 37 days to sell. Cowley Hospital A437

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SITUATION B470 N L R

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n . A nio A W d U D an D is Gr e Golf Club L Iver Yiewsley an The property is prominently situated in the heart of West Drayton on Station e West Drayton S Road, at its junction with Swan Road. It has a large frontage onto Station Road TA . S R IP D S Hayes & Harlingdon of approximately 60 metres and the building itself is considered a local landmark . O N

R D within the area having been sympathetically converted from an old Royal Mail . C West HE LN sorting office and retaining its attractive character appearance. R RY . Drayton Paddington Langley Station Road, leading up into the High Street, has an excellent convenience retail 4b M4 4 offer including Boots, Lloyds Bank, Post Office, Domino’sSlough Pizza and Tesco Express LN 15 AY as well as a range of local eateries and bars,5 ideally suited for the students of OW Central London OLL A408 Maksons House. The areas to the south and west of the property are predominantly H residential, whilst the picturesque runs directly through West LN Drayton intersecting with the High Street to the north. There are a number of

HATCH LANE parks and green spaces in close proximity including YiewsleyColnbrook Recreation Ground, A4 BATH ROAD Huntsmoor Park and Stockley Park Golf Club. 4a

Maksons House benefits from excellent connectivity being 300 metres south of Heathrow Terminal 5 West Drayton railway station and with a number of local bus Poyleroutes and cycle Heathrow paths serving the surrounding area. The nearest large supermarket is Morrisons Terminals 1, 2 & 3 approximately 5 minutes’ walk north. Brunel University London is situated within A3044 14 Hatton Cross A30 an 8-minute drive-time to the north and 97% of 2018/19 residents study at this London Heathrow university. However, Maksons House is ideally situated for several Universities with International Airport c.190,000 students studying within a 45-minute door-to-door catchment. M25 Heathrow Stanwell Terminal 4 25 mins by Crossrail to “ Court Road (University of London) MAKSONS HOUSE, 52 STATION ROAD, WEST DRAYTON UB7 7BT CROSSRAIL

The area has benefited from significant infrastructure investment over the past 5 years, most notably due to the Maksons House is located within 300 metres of the new Crossrail station where journey times to Bond Street implementation of Crossrail, which is scheduled to be fully operational from autumn 2019. Crossrail, which will will be reduced by 43% to 22 minutes and to the City of London by 45%, to 28 minutes. This will allow students be known as the Elizabeth Line, is the most significant infrastructure improvement to London since the opening to travel direct to London Universities at Tottenham Court Road (UCL, SOAS, Birkbeck and University of London of the over 150 years ago. Union) and (Queen Mary University, Barts and The London School of Medicine and Dentistry) whilst putting all of the amenities of London’s West End on their doorstep. This will significantly broaden the appeal of Services are to commence from Reading, via , Heathrow and West Drayton, through to Central West Drayton to students looking for comparatively affordable accommodation whilst studying across London. London providing a new high-speed rail link to vastly improve London’s connectivity east to west. All journey times stated incorporate the faster Crossrail service commencing in 2019.

Forest Harold Stratford Gate Goodmayes Wood Shenfield

Hayes & Bond Maryland Manor Seven Chadwell Gidea Brentwood Taplow Slough Iver Harlington Broadway Street Farringdon Whitechapel Park Kings Heath Park

Maidenhead Burnham Langley West Paddington Tottenham Liverpool Drayton Ealing Main Line Court Road Street Custom House

STUDENTS WITHIN A 45 MINUTE CATCHMENT OF MAKSONS HOUSE

INSTITUTION STUDENTS JOURNEY TIME MINUTES* Brunel University 12,940 8 Royal Holloway 7,835 21 University of West London 10,390 26 Royal Academy of Music 820 29 The Royal Central School of Speech and Drama 1,100 32 University College London 37,905 34 London School of Economics and Political Science 11,210 35 London School of Hygiene and Tropical Medicine 1,345 36 Barts and The London School of Medicine and Dentistry 2,300 37 Imperial College 15,665 37 The University of 19,650 37 The School of Oriental and African Studies 6,360 37 Birkbeck College 12,915 37 8 mins journey time to Brunel London Business School 2,060 38 King's College London 30,565 39 University London (Ranked 59th, Queen Mary University of London 18,890 45 The Times University Guide 2019) TOTAL 191,950 “ *Fastest journey times (door-to-door) according to Google Maps (November 2018) and incorporating faster Crossrail times where applicable.

MAKSONS HOUSE, 52 STATION ROAD, WEST DRAYTON UB7 7BT DESCRIPTION

Maksons House is a locally-listed landmark building, formerly the Royal Mail sorting office for Hillingdon, extensively refurbished in 2017 to provide luxury student accommodation with ancillary amenity space.

The student accommodation comprises 29 luxury self-contained studio flats arranged over ground and first floors, each providing the following high specification:

• ¾ size double bed with gas-lift under-bed storage • Study station with large desk and lumbar support chair • Fully-fitted ensuite shower room with WC and wash basin • Fully-fitted kitchenette incorporating fridge/freezer, microwave oven/ grill and sink with tiled splashback, mixer tap and drainage board • Solid white oak hardwood floors and doors • Soundproofed windows with fitted blinds • Wall-mounted shelving/cupboard units and pin up board • Hanging wardrobe and chest of drawers • Wall-mounted electric heater and flat-screen TV • Digital keypad safe

Maksons House further provides a large common room with sofas and television, 2 housekeepers’ cupboards, one per floor, and a large communal kitchen incorporating 2 large sinks, 4 fan ovens and 6 double hobs with stainless steel extractor fans above. There is CCTV throughout the common areas. Outside there is a large secure landscaped courtyard and designated parking for 12 bikes and 14 cars.

Access to the accommodation is provided via the main archway entrance off Station Road with two alternative access points from the car parking area and the private landscaped courtyard. Maksons House operates a key-card entry system throughout allowing access into the building, secure communal areas / bike store / courtyard and each student’s private flat.

For identification purposes only. Freehold ACCOMMODATION Flying Freehold LLH 99 years

Room Type No. Rooms No. Beds Bed Spaces

Standard Studio 4 4 13.80% Premier Studio 11 11 37.93% Signature Studio 14 14 48.27% Total 29 29 100.00%

MAKSONS HOUSE, 52 STATION ROAD, WEST DRAYTON UB7 7BT INCOME ANALYSIS COST ANALYSIS

• The property is 100% let for the 2018/19 term in accordance with the table below (based on actual Maksons House actual/budgeted operating costs are £81,982 for the 2018/19 academic year, reflecting occupancy/income received); £2,827 per bed. A breakdown of current operational expenditure is shown below. • 97% of current students attend Brunel University London (Ranked 59th, The Times University Guide 2019); • 2018/19 gross term time income is £426,289 per annum; OPERATIONAL EXPENDITURE BREAKDOWN PER BED • Majority of beds (85%) are let on 51-week terms; • There is currently no sundry income / vending at the property and we have not included an allowance

in the 2018/19 income figures; Management & Letting £1,206.90 • There are 14 parking spaces at Maksons House, with an estimated rental value of £600 per annum per space;

• 8 of the parking spaces are held long leasehold at a ground rent of £4,500 per annum + VAT; Rates & Utilities £629.86 • Total operating expenditure of £81,982 per annum, received for this period, reflecting a rate of £2,827 per bed and c. 20% of gross rent;

• Total Net Income 2018/19 of £338,907 per annum. Cleaning £424.83

Term 2018/2019 2018/2019 Room Type No. Rooms (weeks) Rent per Week Rent per Annum Laundry £351.72 Standard 4 51 £249.00 £50,796.00

9 51 £274.00 £125,766.00 Insurance £103.45 Premier 1 48 £274.00 £13,152.00 1 47 £274.00 £12,878.00 Internet £71.92 10 51 £299.00 £152,490.00 Signature 1 47 £299.00 £14,053.00 1 44 £299.00 £13,156.00 Landscaping £27.93 Signature (dual occupancy) 2 51 £349.00 £35,598.00 Accommodation Total 29 £417,889.00 Parking 14 51 £600 per annum £8,400.00 Security £10.34 TOTAL INCOME £426,289.00 £.000 £.200.00 £.400.00 £.600.00 £.800.00 £1,000.00 £1,200.00 £1,400.00 Leasehold Payaway -£5,400 (Parking Area) -£81,982 Operating Costs (£2,827 per bed) Total Net Income West Drayton has outperformed Greater £338,907 2018/19 London by 7.4% over the past 12 months “ (Land Registry, Q1 2018)

MAKSONS HOUSE, 52 STATION ROAD, WEST DRAYTON UB7 7BT REVERSION OPPORTUNITY HIGHER EDUCATION IN LONDON

• Estimated gross rental value for 2019/20 of £437,365 per annum, assuming 51 week lets and allowing There are currently 277,695 full-time students in London (HESA 2016/17), more than any other city in Europe. for 97% occupancy; Several institutions including Imperial College, University College and King’s College London are continually ranked within the top 20 best universities in the world by the QS World University Rankings. • Operating costs stated above are actual and have been stabilised over 2 years but could potentially benefit from some further efficiencies in procurement; Out of this total number of full-time students, c. 49,228 (17.7%) are offered accommodation by universities in “halls of residence”. A further 31,406 (11.3%) students are offered accommodation by private sector landlords • Operational costs currently include a weekly laundry service. Striping this out would lower the operating in purpose-built student accommodation (PBSA). This leaves a surplus of 197,061 (71.0%) students that costs to £2,475 per bed; cannot access either university halls of residence or PBSA.

• Currently 2 rooms have been let as dual-occupancy but there is potential and demand to increase this to % total full time a total of 6 rooms should a purchaser wish. Dual-occupancy rooms attract a premium of £50 per week on London student accommodation summary No. Beds student population the Signature room rate; Students living in University Halls of Residence 49,228 17.7% • Summer holiday income – due to the location of Maksons House close to Brunel, Crossrail and Heathrow airport, there is a very strong rental demand in the summer months. There is potential to shorten the Students living in private sector purpose built accommodation 31,406 11.3% term time student lets to 44-week tenancies and benefit from the extra seasonal demand for rooms over Students unable to access university or private sector 197,061 71.0% the summer. Prior to this academic year, short-term rents of £79 per night have been achieved accommodation (Booking.com rating of 9.3 out of 10); Total London full time Higher Education population 277,695 100%

Note that the reversionary income is not guaranteed and is subject to market conditions. (source: Knight Frank London Student Market Report 2018).

Term 2019/2020 2019/2020 Room Type No. Rooms (weeks) Rent per Week Rent per Annum Standard 4 51 £259.00 £52,836.00 Premier 11 51 £289.00 £162,129.00 Signature 8 51 £309.00 £126,072.00 Signature (dual occupancy) 6 51 £359.00 £109,854.00

Void Allowance @ 3% -£13,526.73

Accommodation Total 29 £437,364.27 Parking 14 51 £600 per annum £8,400.00 Sundries 29 £50 per annum £1,450.00 TOTAL INCOME £447,214.27 Leasehold Payaway -£5,400 (Parking Area) -£81,982 Operating Costs (£2,827 per bed)

Projected Net Income £359,832.27 2019/20

MAKSONS HOUSE, 52 STATION ROAD, WEST DRAYTON UB7 7BT DEVELOPMENT OPPORTUNITY Ground Floor

Our client’s architect has drawn up plans and commenced discussions with the planning authority for the addition of a further 5 rooms at 2nd floor level. Additionally, the ground floor common room has been designed so that it can be split to accommodate a further 2 studios were a purchaser interested in adding bed spaces.

Based upon current estimates this has the potential to increase the gross income by c. £100,000 per annum.

Any additional value derived from development opportunities will require planning permission. Please seek your own advice.

Proposed First Floor

Proposed Second Floor

Average house prices have increased by “ 62% in West Drayton over the past 5 years

MAKSONS HOUSE, 52 STATION ROAD, WEST DRAYTON UB7 7BT BRUNEL UNIVERSITY LONDON

Brunel University London is currently ranked 59th in The Times University Guide 2019 and celebrated 50 years of innovation in teaching and world-class research in 2016. The university boasts an impressive library and world-class sports facilities which are among the best offered by any university. For each available place at Brunel University London there are more than 10 applications.

The university has a total of 12,940 full-time students, an increase of 8.3% from last year, of which 20.1% are from overseas. The university offers accommodation for 4,816 students (with guaranteed places for 1st years), leaving nearly 2/3rd of students unable to access university accommodation. It should be noted that Maksons House is the only purpose-built student accommodation scheme within the borough of Hillingdon serving Brunel University London.

PLANNING

The property benefits from planning consent for Student Accommodation (Sui Generis use class) granted in 2015 under application number 44606/ APP/2015/2367.

TENURE

Maksons House is held Freehold with the exception of the parking areas. The undercoft parking, which underlies the BT Telephone exchange, is held Flying Freehold and the additional 8 spaces are held on a 99-year Long Leasehold interest at a ground rent of £5,400 (incl. VAT) per annum. VAT

The property is not elected for VAT.

EPC

The property has an Energy Performance Certificate rating of E43. A copy of the certificate is available upon request. 190,000 students studying within a 45-minute door-to-door “ catchment of Maksons House MAKSONS HOUSE, 52 STATION ROAD, WEST DRAYTON UB7 7BT PROPOSAL

Offers are invited in excess of £6,275,000 (Six Million Two Hundred and Seventy-Five Thousand Pounds) subject to contract and exclusive of VAT. This reflects a Net Initial Yield of 5.25% and a Net Reversionary Yield of 5.50%, assuming purchaser’s costs of 2.80%, which allows for stamp duty (SDLT) of 1% based upon the transaction benefiting from Multiple Dwellings Relief (MDR). Purchaser’s should seek their own advice regarding SDLT and MDR.

FURTHER INFORMATION

Should you require further information or wish to view the property please contact either:-

OLIVER TAYLOR HANNAH MAWDSLEY 3-5 Barrett Street 020 7042 6000 T: 020 7042 6001 T: 020 7042 6005 St Christopher’s Place www.buchananbond.com M: 07773 773 790 M: 07595 701 432 London W1U 1AY E: [email protected] E: [email protected]

Misrepresentation Act 1967 & Declaration Buchanan Bond Real Estate Ltd, for themselves and for the vendors of this property whose agents they are, give notice that: i) The particulars are set out as a general outline only for the guidance of intending purchasers, and do not constitute, nor constitute part of, an offer or contract. ii) All descriptions, dimensions, references to condition and necessary permission for use and occupation and other details are given in good faith and are believed to be correct, but any intending purchasers should not rely on them as statements or representations of fact and must satisfy themselves by inspection or otherwise as to the correctness of each of them. iii) No person in the employment of Buchanan Bond Real Estate Ltd has any authority to make or give any representation or warranty in relation to this property. DECEMBER 2018