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FOR SALE DARLEY BANK 7-11 Brook Street Derby DE1 3PF RARE STUDENT ACCOMMODATION LONG INCOME INVESTMENT OPPORTUNITY DARLEY BANK, 7-11 BROOK STREET, DERBY, DE1 3PF DERBY, DARLEY BANK, BROOK STREET, 7-11 • Rare opportunity to acquire a freehold, high-quality • Underpinned by a strong vacant possession, direct let student accommodation asset situated in Derby value reflecting c.95% of the property’s market value • Darley Bank comprises a modern, cluster-led purpose- • University of Derby is rated Gold in the Teaching built student accommodation scheme with 14 studios Excellence Framework and 391 cluster bedrooms • The University of Derby has seen student population • Located on Brook Street, its prime situation offers easy growth of 25% over the five years to 2018/19 Investment access to the University of Derby and Derby City Centre • The property is let for a term certain of 28 years and 6 months, offeringsecure, index-linked income Montagu Evans are instructed to seek offers in excess of £27,500,000 Summary • Rent is reviewed annually in line with RPI, with a collar of 2% and a cap of 4% respectively (Twenty-Seven Million Five Hundred Thousand Pounds) subject to • Let to Derbyshire Student Residences Limited with the contract and exclusive of VAT. This reflects a low capital value of £67,901 University of Derby acting as guarantor, both benefiting per bed space and an attractive Net Initial Yield of 4% at the current from a Dun & Bradstreet Ratings of 5A1 passing rent (assuming purchaser’s costs of 6.76%) • Current passing rent of £1,177,335 (effective 1st September 2020) reflecting a rent cover ratio (on the basis of Direct Let) of approximately 1.5 times PAGE 2 PAGE DARLEY BANK, 7-11 BROOK STREET, DERBY, DE1 3PF DERBY, DARLEY BANK, BROOK STREET, 7-11 Derby Derby is a major regional centre in the East Midlands, situated approximately 15 miles west of Nottingham and 26 miles north- west of Leicester. The city benefits from strong road connectivity with its situation on the A52 providing access to the M1 motorway at junction 25 (Sandiacre Interchange). • Derby Railway Station offers direct services to Nottingham • Derby’s profile as a city of sport has increased in recent in 23 minutes, Birmingham New Street in 33 minutes years, with a number of local professional sports teams and London St Pancras in 1 hour and 35 minutes. East including Championship side Derby County Football Midlands Airport is situated 13 miles south-east of Derby and Club and Derbyshire County Cricket Club offers flights to over 70 international destinations • Derby has a highly skilled workforce and is well • Under the Derby City Centre Masterplan 2030, the Council established in the advanced transport manufacturing sector, are aiming to leverage £3.5 billion in investment, create with 11.8% in hi-tech functions, four times the national 4,000 new jobs and deliver 1,900 new homes by 2030 average. A number of internationally renowned businesses, including Rolls-Royce, Toyota and Bombardier, have • Each year the City hosts various cultural events, including the substantial operations in the City Derby Book Festival and the Derby Festé. Derby Arena at Pride Park opened in 2015 as a multi-use indoor arena • The £200m development of Infinity Park Derby is and has since hosted a range of cycling, badminton and currently in progress and aims to attract new high-tech entertainment events businesses to the city. Extending to 100 acres and set to offer 1.5 million sq ft of commercial space, it aims to create • Derby benefits from three main retail areas - Cathedral 8,000 new jobs Quarter, St Peters Quarter and the Derbion PAGE 3 PAGE (formally Intu Derby) offering a variety of shops, cafés and restaurants DARLEY BANK, 7-11 BROOK STREET, DERBY, DE1 3PF DERBY, DARLEY BANK, BROOK STREET, 7-11 Brookside Derwent Students Jurys Inn DUFFIELD ROAD Rail Research and Innovation Centre A601 University of Derby Kedleston Road Campus Peak Court Chapel Street Multistorey Car Park University of Derby Queen’s Leisure Centre Derby Cathedral Derby College Cathedral Court University of Derby Princess Alice Court University of Derby The Croft Homes for Students Derby Railway Station FORD STREET A601 Sir Peter Hilton Court University of Derby Parksafe Multistorey Car Park Law School Markeaton Street Campus Agard Court University of Derby Britannia Mill Campus University of Derby BOLD LANE FRIAR GATE FRIAR GATE Roman House Collegiate PAGE 4 PAGE DARLEY BANK, 7-11 BROOK STREET, DERBY, DE1 3PF DERBY, DARLEY BANK, BROOK STREET, 7-11 Situation Brook Street occupies a prime position on the edge of Derby City The Property is well situated for the University • 5 minute walk to One Friar Gate Square Centre in a mixed-use area which includes further University of of Derby, being within walking distance of the • 10 minute walk to Derby city centre Derby accommodation and academic buildings. The surrounds • 10 minute walk to Britannia Mill also include a variety of high-quality residential developments campuses. Furthermore, the University bus also runs • 14 minute walk to Markeaton Street such as Brookbridge Court, comprising converted old mill along Bridge Street to the Kedleston Road campus • 23 minute walk to Kedleston Road buildings, and Westpoint. A short distance to the south sits the with a stop in close proximity. attractive Friar Gate, one of the key retail and restaurant pitches leading to the City Centre. Darley Bank is located amongst a number of PBSA schemes, with Peak Court to the north, Sir Peter Hilton Court and Agard Court to the south. To the west is Princess Alice Court and Nunnery Court along with the University of Derby’s Enterprise Centre. Kedleston Road The accommodation buildings are all managed by the University University of Derby of Derby. Further privately operated PBSA accommodation in the vicinity includes Brookside (Derwent Students), The Croft (Homes for Students) and Roman House (Collegiate). Kedleston Road Markeaton Street Britannia Mill University of Derby University of Derby A6 A38 Ashbourne Road A61 BRIDGE STREET BROOK STREET Brook St P P Jurys Inn A601 Willows WILLOW ROW Sports Centre A52 10 mins walk P P Derby CAR PARK City Centre Derby Sta ord Street Museum Cathedral Quarter Shopping Centre A6 Derbion Uttoxeter New Road A601 Shopping Centre CAR PARK Derby LondonTrain Rd Station PAGE 5 PAGE STREET SEARL STREET STAFFORD AGARD STREET CAR PARK • The University of Derby is arranged across three main sites in its DE1 3PF DERBY, DARLEY BANK, BROOK STREET, 7-11 namesake city, with campuses at Kedlestone Road, Markeaton Street and Britannia Mill along with the self-contained One Friar Gate Square. Aiming to be ‘an applied university of today and for tomorrow’, facilities include a Forensic Training Facility, STEM Derby Centre, NHS-standard Mock Hospital Wards and a Bloomberg Financial Markets Lab. On site campus amenities include a fully equipped sports centre, library and Students Union • The University of Derby has seen average annual full-time Student student population growth of 5.8% pa, increasing from 10,760 in 2014/15 to 13,500 in 2018/19 • The Derby PBSA market totals 3,663 beds, 2,725 of which are Market managed by the University of Derby and 938 of which are managed privately. This reflects a full-time student to bed ratio of 3.7 (above the UK average of 2.1) and that only 27% of full-time students can access PBSA Status Full-time Student Population Growth PBSA Market • Rated Gold in Teaching Excellence Framework 16,000 • 1st – University of the Year (UK Social Mobility Awards 2020) • 1st – Higher Education Institution of the Year (National Education 14,000 20% Opportunities Network Awards 2020) 12,000 • 1st – Social and Community Impact (Guardian University Awards 2020) • Top 10 – Postgraduate Student Experience (Postgraduate Taught 10,000 Experience Survey 2020) 7% 8,000 • Top 10 – in the world for international student learning experience 73% (Global ISB Benchmark Group 2018) Population Student 6,000 4,000 2,000 0 2014/15 2015/16 2016/17 2017/18 2018/19 University PBSA Private PBSA Not accommodated in PBSA University of Derby Academic Year Total HE Students 19,145 Full-time Students 13,500 Undergraduates (FT) 11,895 Postgraduates (FT) 1,605 Internationals 1,555 (12% of full-time students) Applications 4.9 per place Ranking 91st PAGE 6 PAGE HESA 2018/19 & The Times Good University Guide 2021. DARLEY BANK, 7-11 BROOK STREET, DERBY, DE1 3PF DERBY, DARLEY BANK, BROOK STREET, 7-11 Accommodation Darley Bank opened in September 2013 and comprises modern purpose-built student accommodation totalling 405 beds. The Property offers an attractive accommodation mix, with 391 premium en-suite cluster rooms and 14 self- contained studios. The cluster rooms are arranged in flats of three to seven people, each with shared kitchen and social space. Both the cluster and studio rooms offer small double beds with storage, en-suite bathrooms, workspace, wardrobes, full length mirrors and modern décor. The Property also benefits from a common room, reception, management office, cycle storage and external amenity space. Typical Floor Plan Not to scale. For illustrative purposes only. Summary Accommodation Schedule Room Type Number of Rooms Area (Sq M) Economy Bronze En-suite 7 12.5 Bronze En-suite 246 13 Silver En-suite 104 13 - 13.5 Gold En-suite 34 15 - 16 Cluster room Studio Bronze Studio 4 19 - 20 Kitchen / social space Silver Studio 6 20 - 22 Gold Studio 4 23 - 24 Total 405 PAGE 7 PAGE DARLEY BANK, 7-11 BROOK STREET, DERBY, DE1 3PF DERBY, DARLEY BANK, BROOK STREET, 7-11 Tenancy & Covenant Darley Bank is let under a reversionary FRI lease for a term certain of 28 years and 6 months, commencing on 1st September 2019 and expiring on 31st August 2049.
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