CITY VIEW ESKDALE TERRACE, JESMOND , NE2 4DY

REFURBISHED STUDENT ACCOMMODATION INVESTMENT IN THE HEART OF VIBRANT JESMOND CITY VIEW JESMOND ESKDALE TERRACE, JESMOND, NEWCASTLE UPON TYNE, NE2 4DY REFURBISHED STUDENT ACCOMMODATION INVESTMENT IN THE HEART OF VIBRANT JESMOND

INVESTMENT CONSIDERATIONS

Newcastle is the largest City in the North East

Situated in Jesmond, Newcastle’s most affluent and vibrant residential suburbs

Jesmond is first choice location for students in Newcastle and 2 minutes walk to the vibrant Osborne Road

Prominent position within an established prime student area, 13 minutes’ walk from , 11 minutes’ walk from and 2 minutes’ walk from

Newcastle was described by the Times Good University guide as ‘a magnet for students’ and boasts over 43,000 full time students

Defensive asset class with alternative use and rental growth potential

Tightly supplied market with 3.4 students per purpose built bed space

Located close to excellent local amenities

Comprises two recently refurbished student halls providing a total of 123 student units split between Block A (65 units) and Block B (58 Units)

55% prelet and under offer for the 2019 term

Projected 2019 term Gross income of £725,704 per annum inclusive of rent, car park, utility and laundrette income

Freehold

We are seeking offers in excess of £9,250,000 (Nine Million Two Hundred and Fifty Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level would reflect a gross initial yield of 7.85% on the projected 2019/2020 income excluding purchaser’s costs.

Outline for identification purposes only. CITY VIEW JESMOND ESKDALE TERRACE, JESMOND, NEWCASTLE UPON TYNE, NE2 4DY REFURBISHED STUDENT ACCOMMODATION INVESTMENT IN THE HEART OF VIBRANT JESMOND

JESMOND : UPMARKET & SOPHISTICATED

Jesmond is the most expensive and upscale suburb of Newcastle and characterised by large, terraced, Victorian and Edwardian housing. The area is popular with affluent families attracted to Jesmond’s two private schools, young professionals and students. The suburb includes the leafy Park known for its outstanding beauty including Jesmond Dene House a boutique luxury hotel restaurant.

The area is well connected with three Metro Stations, providing public transport links to and the rest of the region.

Jesmond offers an excellent selection of independent fashion boutiques, jewellers primarily located on Acorn Road. Osborne Road is the famous hub of the action and has a thriving social scene including independent restaurants and cocktail bars providing an up market alternative to the clubs and bars of the city centre.

There are three supermarkets, a Waitrose, Tesco Metro and Sainsburys a community library and swimming pool, complete with fitness suite and exercise classes and a number of specialist gyms. CITY VIEW JESMOND ESKDALE TERRACE, JESMOND, NEWCASTLE UPON TYNE, NE2 4DY REFURBISHED STUDENT ACCOMMODATION INVESTMENT IN THE HEART OF VIBRANT JESMOND

DESCRIPTION Block A comprises an attractive period building built in the early 20th Both blocks are directly managed by the in house management On site amenities include: century split over four storey’s and formed of solid red brick walls, team. • Fully furnished rooms Georgian style sash windows and a slate mansard roof. There is a car The building comprises a total 123 student units split between • High speed fibre broadband park to the rear of Block A which provides 11 car parking spaces. Block A (65 units) and block B (58 units). Block A provides a • On site laundrette and bike storage facilities Block B is a modern block split over three floors and formed mix of studio and traditional flat rooms whilst Block B provides of red brick walls, uPVC double glazing, beneath a flat roof. exclusively flat rooms. The studio rooms are spacious and • Secure resident’s car park (11 car parking spaces) Both blocks have been tastefully refurbished to a high arranged to provide internal bathrooms and kitchen facilities • 24/7 emergency maintenance & helpline specification to include new electric central heating with whilst the flat rooms provide communal bathrooms and kitchen • CCTV & Intercom entry ‘smart radiators’, kitchens, bathrooms, internal doors and facilities. There is a communal onsite laundrette located on the a new flat roof on Block B. The scheme achieved practical lower ground floor within Block A. • In-house Cleaner and Janitor services completion in September 2018. • Complimentary Sky TV package with 60” TV’s in communal areas CITY VIEW JESMOND ESKDALE TERRACE, JESMOND, NEWCASTLE UPON TYNE, NE2 4DY REFURBISHED STUDENT ACCOMMODATION INVESTMENT IN THE HEART OF VIBRANT JESMOND

NEWCASTLE CITY

CENTRE MAP Exhibition Park SUBJECT PROPERTY Great North Brandling Road Skateboard Village Jesmond Park Heaton Park

Medical C L Great North AR ESLINGTON TERRACE School E M OAD O ORD R N Museum: DYF T AN S Jesmond Vale

C Hancock R E P O N O A T R R D T Royal Victoria A LA L

M N D D Infirmary A O R O T O O

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R A

D D W R A

O Y Block A

F D A Y A 1 D O 6

N 7 R City View

A ( Jesmond A M I S

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O E ESKDALE TERRACE T G Northumbria C D S I I V R T O B N University D E S D E A CE R PLA A U Y’S AR R R ST M Sport Central Q A T

B S

T

City Hall R

E Haymarket E & Pool T

Haymarket Block B Bus Station Preparatory School John

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E C Dobson L A Newcastle

Newcastle United Z A S R T E Street O S City E D N P D Football Club C A Eldon Garden A R Campus E R K T S

R T S Shopping Centre R T O

East E A D Laing E Art Gallery T Monument Newcastle NEW BRIDGE STREET T S C T Manors University E R St James K Manors A

R W A T intu Eldon M E H Business E Battle A R

L T

L Square S

School R Central Newcastle High School N Field O

O T A Shopping S Chinatown Theatre REE D T B N S I T TO X G E The Centre Royal BU E R T T S Gate EE TR L E S L RN E U City Road Grainger LBO W ME O Newgate Sandgate T S Street Town Marine To ee Grey Street Wharf O2 Millennium Factory Walker Key: Old Road Academy D Bridge E Newcastle A Hoults

S Yard T T S R Law Courts Millennium OD E Main Line Station O E Newcastle W T Bridge ING LL C O Arts Centre Quayside BALTIC Metro Discovery Centre for DE SI AY Museum QU Contemporary Art AD QuayLink Buses RO RE HO H S Newcastle LL UT HI SO ND Central Station SA Gateshead Mill Coach Quays Road Centre St. Mary’s Station Heritage © Crown Copyright, ES 100004106. For identification purposes only. for Life Northern D Hillgate Haw R Newcastle D Centre Design Centre O Quay Road O College W S T O C S FO R TH B AN K LOCATION Baltic SITUATION S Newcastle-upon-Tyne Gateshead Business The City benefits from some 298,883 residentsQuarter and forms part of the The property is situated in Jesmond, a prime student area within close RD EW Centre K “ AS wider conurbation. Newcastle is the North East’s primary proximity of Northumbria University (0.6 miles) and Newcastle University

is the regional and H retailing, leisure and officeI destination and is located approximately (0.7 miles). Jesmond Metro station (0.1 miles) is readily accessible from G Metro Radio H S

T 280 miles (451 km) northR of , 100 miles (160 km) north of the subject property which provides regular services into Newcastle Arena E E G D T R A and 109 miles (175 km) south ofT Edinburgh. city centre. T economical capital Trinity E R S

O H S E N Square A O NE Newcastle benefits from excellentD transport links LA being located in The area benefits from excellent local amenities with Osborne and C RK PA E C N close proximityI to the A1 Jacksonand A19, providing access to both the north Acorn Road home to a number of top national occupiers including R of the North-East P Street and southGateshead of the UK and the A69 connecting the City to Carlisle and Waitrose, Starbucks, Boots, Greggs, Pizza Express and many others. Interchange Cumbria to the west. Leisure and sporting facilities nearby include Dene Park, Jesmond D A of . O R W Rail services are provided via the East Coast Mainline from Newcastle Cricket & Tennis Club which are all within comfortable walking E K S ” A Central with quickest journey times to , Edinburgh and distance of the subject property. London KingsCivic Cross of 19 minutes, 1 hour 27 minutes, and 2 hours Centre 0 minutes respectively. Newcastle International Airport is located 6 miles North West of the City Centre. CITY VIEW JESMOND ESKDALE TERRACE, JESMOND, NEWCASTLE UPON TYNE, NE2 4DY REFURBISHED STUDENT ACCOMMODATION INVESTMENT IN THE HEART OF VIBRANT JESMOND EXHIBITION PARK EXHIBITION PARK & TOWN MOOR EASTON HALL

OSBOURNE ROAD ( Amenities ) JESMOND RVI HOSPITAL RVI HAYMARKET ST JAMES’ PARK ST JAMES’ PARK INTU ELDON SQUARE MANORS MONUMENT NEWCASTLE UNIVERSITY BUSINESS SCHOOL pitch) (Prime retail EAST PILGRIM STREET DEVELOPMENT ST JAMES CHINA TOWN MANORS STATION GRAINGER MARKET NATIONAL TRUST NATIONAL HOSPITAL

HAMPTON HILTON BY NEWCASTLE CENTRAL STATION

Outline for identification purposes only. CITY VIEW JESMOND ESKDALE TERRACE, JESMOND, NEWCASTLE UPON TYNE, NE2 4DY REFURBISHED STUDENT ACCOMMODATION INVESTMENT IN THE HEART OF VIBRANT JESMOND

NEWCASTLE: A STUDENT CITY “Newcastle-upon-Tyne is host to two leading universities: Newcastle University and Northumbria University. Combined, the two UNIVERSITY OF NEWCASTLE NORTHUMBRIA UNIVERSITY universities boast a full time student population Newcastle University is the fourth largest employer in the North East. Northumbria University is the biggest university in the northeast of of over 43,000 which has more than doubled in In terms of education, Newcastle University has received academic England, and it is investing £22 million in its city campus to improve the past 15 years. The city has been named acclaim and is a member of the prestigious Russell Group that the student experience, with a new ‘Student Central Zone.’ The comprises the leading 24 universities in the UK and is ranked among university has been ranked in the top ten British Universities and ‘a magnet city for students’ by The Times Good the 150 best universities in the world. The university has recently Colleges Sports league table for 5 years and has recently invested University Guide with Newcastle University introduced new courses, including Pharmacy, making it one of the £30 million in its sports centre including a swimming pool, climbing receiving 6.1 applications per place and few universities to offer this degree. Recent investment includes a £30 wall and a 3,000 seat indoor area. In 2004, in recognition of the million extension of the sports centre which is due to open in 2020 as academic achievements of the two Universities, the UK government Northumbria University receiving 5.1 well as the £350 million Science Central project (in partnership with designated the City of Newcastle as one of six UK science cities. applications per place.” the City Council) homing National Innovation Centres as well as new lecture halls and student facilities. CITY VIEW JESMOND ESKDALE TERRACE, JESMOND, NEWCASTLE UPON TYNE, NE2 4DY REFURBISHED STUDENT ACCOMMODATION INVESTMENT IN THE HEART OF VIBRANT JESMOND

Unique student “investment located in the heart of Jesmond close to the vibrant Osborne Road ”

Population in excess of 298,883 residents in Newcastle Upon Tyne.

Northumbria University has invested £200 million in its city centre campus over the past ten years.

NATIONAL STUDENT MARKET A magnet for students’ and In the UK, student accommodation as an asset class continues in purpose built student accommodation and new entry investors boasts over 43,000 full time to perform well and increase in popularity. New investors have investing into the market. Fundamental to the sector’s resilience recognised the security of income and good rental growth is the growth in applicants looking to come to University from the students. Headline rental that student accommodation offers. The sector is particularly European Union and the rest of the world. growth for purpose built resilient to ongoing macro-economic issues and remains robust in (UCAS, 2017/2018) student accommodation uncertain markets. This is highlighted by the continuing increase (PBSA) increased by 2.26% for the 2018/19 academic year. NEWCASTLE OCCUPATIONAL DEMAND: STUDENT ACCOMMODATION There are approximately 15,000 purpose built student bed spaces in Newcastle upon Tyne split between the university and private ownership, with 3,700 currently under construction. Excluding the development pipeline, there are 3.4 students per PBSA bed space.

Newcastle University has recently been Full Time Part Time Total Full Applications Total PBSA Development Students Per Time Per Place Beds Available Pipeline PBSA Bed Space involved in the £250 Newcastle University 22,245 1,550 23,795 6.10 million Science Central 15,000 3,700 3.4 project alongside the Northumbria University 21,145 6,020 27,165 5.10 city council. *PBSA – Purpose Build Student Accommodation CITY VIEW JESMOND ESKDALE TERRACE, JESMOND, NEWCASTLE UPON TYNE, NE2 4DY REFURBISHED STUDENT ACCOMMODATION INVESTMENT IN THE HEART OF VIBRANT JESMOND

ACCOMMODATION The property provides the following areas (GIA):

Block A Block B

Floor Units per Area Area Floor Units per Area Area floor (sq m) (sq ft) floor (sq m) (sq ft)

Lower Ground 8 380 4,090 Ground Floor 18 340 3,660 Ground Floor 18 900 9,688 First Floor 20 340 3,660 First Floor 22 900 9,688 Second Floor 17 400 4,306 Second Floor 20 340 3,660

Total 65 2,580 27,771 Total 58 1,020 10,979

The overall area (GIA) of the property is 3,600 sq m (38,750 sq ft).

LETTING & MANAGEMENT

Both blocks are fully occupied for 2018/2019 term producing a total of £579,024 p.a. Due to practical completion of the property in September 2018 the length of contracts was shortened to 43 weeks.

The income for the September 2019 term reflects a 52 week term, utilities charge of £170 p.a. laundrette and car parking income.

Traditionally student accommodation in Jesmond are 50% let by end of January, 75% by end of March and 100% by end of June. Presently, 55% of the rooms are pre-let and under offer for the 2019 term as per the projected income profile below.

The table below sets out the projected income profile from 2019 / 2020 which has been broken down into rental income, laundrette income and car parking income.

There are 11 car parking spaces of which 10 are let and one is used for staff purposes.

Further information is available in the dataroom.

Summary Income Breakdown Block A & Block B

Gross 2019 Projected Income p.a.

Block A Rent £394,680

Block B Rent £296,444

Utilities £20,910

Car Park £3,670

Laundrette £10,000

Total 2019 Income £725,704 CITY VIEW JESMOND ESKDALE TERRACE, JESMOND, NEWCASTLE UPON TYNE, NE2 4DY REFURBISHED STUDENT ACCOMMODATION INVESTMENT IN THE HEART OF VIBRANT JESMOND

TENANCY SCHEDULE - CITY VIEW - BLOCK A

Room Size Floor Gross Projected Pre let & Room Size Floor Gross Projected Pre let & Area Area Level 2019/20 Rent p.a. Under offer Area Area Level 2019/20 Rent p.a. Under offer (sq m) (sq ft) (52 Week) 2019-20 (sq m) (sq ft) (52 Week) 2019-20

FLAT 9 (2 ROOMS) FLAT 4 (8 ROOMS) A 8.0 86 Lower Ground £5,980 ✓ A 8.0 86 First Floor £5,460 ✓ B 7.0 75 Lower Ground £5,980 ✓ B 9.0 97 First Floor £5,460 ✓ C 9.0 97 First Floor £5,460 ✓ STUDIO APARTMENTS D 9.0 97 First Floor £5,460 ✓ 1 16.0 172 Lower Ground £7,800 E 9.0 97 First Floor £5,460 2 19.0 205 Lower Ground £8,580 F 9.0 97 First Floor £5,460 3 17.0 183 Lower Ground £7,800 G 9.0 97 First Floor £5,460 4 28.0 301 Lower Ground £8,840 ✓ H 9.0 97 First Floor £5,460 5 19.0 205 Lower Ground £8,060 6 24.0 258 Lower Ground £8,060 FLAT 5 (7 ROOMS)

FLAT 1 (4 ROOMS) A 9.0 97 First Floor £5,564 ✓ A 10.0 108 Ground £5,980 ✓ B 7.0 75 First Floor £5,564 ✓ B 9.0 97 Ground £5,980 ✓ C 8.0 86 First Floor £5,564 ✓ C 8.0 86 Ground £5,980 ✓ D 8.0 86 First Floor £5,564 ✓ D 9.0 97 Ground £5,980 ✓ E 8.0 86 First Floor £5,564 ✓ F 8.0 86 First Floor £5,564 ✓

STUDIO APARTMENTS G 7.0 75 First Floor £5,564 ✓ 7 18.0 194 Ground £8,320 8 15.0 161 Ground £8,580 FLAT 6 (7 ROOMS) 9 22.0 237 Ground £8,580 ✓ A 8.0 86 Second Floor £5,564 10 19.0 205 Ground £8,840 B 8.0 86 Second Floor £5,564 ✓ 11 15.0 161 Ground £8,840 C 8.0 86 Second Floor £5,564 ✓ 12 TBC TBC Annex* £8,840 D 8.0 86 Second Floor £5,564 ✓ E 8.0 86 Second Floor £5,564 ✓ FLAT 2 (8 ROOMS) F 8.0 86 Second Floor £5,564 ✓ A 8.0 86 Ground £5,148 ✓ G 9.0 97 Second Floor £5,564 ✓ B 7.0 75 Ground £5,148 ✓ C 9.0 97 Ground £5,148 ✓

D 8.0 86 Ground £5,148 ✓ FLAT 7 (8 ROOMS) E 8.0 86 Ground £5,148 ✓ A 8.0 86 Second Floor £5,460 F 7.0 75 Ground £5,148 ✓ B 8.0 86 Second Floor £5,460 ✓ G 10.0 108 Ground £5,148 ✓ C 8.0 86 Second Floor £5,460 ✓ H 8.0 86 Ground £5,148 D 8.0 86 Second Floor £5,460 ✓ E 8.0 86 Second Floor £5,460 ✓ FLAT 3 (7 ROOMS) F 8.0 86 Second Floor £5,460 ✓ A 9.0 97 First Floor £5,564 ✓ G 8.0 86 Second Floor £5,460 ✓ B 9.0 97 First Floor £5,564 ✓ H 8.0 86 Second Floor £5,460 ✓ C 9.0 97 First Floor £5,564 ✓ D 9.0 97 First Floor £5,564 ✓ E 9.0 97 First Floor £5,564 ✓ FLAT 8 (2 ROOMS) F 9.0 97 First Floor £5,564 ✓ A 7.0 75 Second Floor £6,136 ✓ G 8.0 86 First Floor £5,564 ✓ B 9.0 97 Second Floor £6,136 ✓ CITY VIEW JESMOND ESKDALE TERRACE, JESMOND, NEWCASTLE UPON TYNE, NE2 4DY REFURBISHED STUDENT ACCOMMODATION INVESTMENT IN THE HEART OF VIBRANT JESMOND

TENANCY SCHEDULE - CITY VIEW - BLOCK B

Room Size Floor Gross Projected Pre let & Room Size Floor Gross Projected Pre let & Area Area Level 2019/20 Rent p.a. Under offer Area Area Level 2019/20 Rent p.a. Under offer (sq m) (sq ft) (52 Week) 2019-20 (sq m) (sq ft) (52 Week) 2019-20

FLAT 1 (4 ROOMS) FLAT 7 (5 ROOMS) A 8.0 86 Ground £5,148 A 8.0 86 First Floor £5,148 ✓ B 8.0 86 Ground £5,148 B 8.0 86 First Floor £5,148 ✓ C 9.0 97 Ground £5,148 C 8.0 86 First Floor £5,148 ✓ D 8.0 86 Ground £5,148 D 9.0 97 First Floor £5,148 ✓ E 8.0 86 First Floor £5,148

FLAT 2 (5 ROOMS) FLAT 8 (5 ROOMS) A 8.0 86 Ground £5,044 ✓ A 7.0 75 First Floor £4,928 B 8.0 86 Ground £5,044 ✓ B 8.0 86 First Floor £4,928 C 8.0 86 Ground £5,044 ✓ C 8.0 86 First Floor £4,928 D 9.0 97 Ground £5,044 ✓ D 9.0 97 First Floor £4,928 E TBC TBC Ground £5,044 ✓ E 8.0 86 First Floor £4,928 ✓

FLAT 3 (4 ROOMS) FLAT 9 (5 ROOMS) A 8.0 86 Ground £5,148 ✓ A 8.0 86 Second £5,148 B 8.0 86 Ground £5,148 ✓ B 8.0 86 Second £5,148 C 9.0 97 Ground £5,148 ✓ C 8.0 86 Second £5,148 D 8.0 86 Ground £5,148 ✓ D 9.0 97 Second £5,148 E 8.0 86 Second £5,148

FLAT 4 (5 ROOMS) FLAT 10 (5 ROOMS) A 8.0 86 Ground £5,044 ✓ A 8.0 86 Second £5,148 B 9.0 97 Ground £5,044 ✓ B 8.0 86 Second £5,148 C 9.0 97 Ground £5,044 C 8.0 86 Second £5,148 D 9.0 97 Ground £5,044 D 9.0 97 Second £5,148 E 9.0 97 Ground £5,044 E 8.0 86 Second £5,148

FLAT 5 (5 ROOMS) FLAT 11 (5 ROOMS) A 9.0 97 First Floor £5,148 ✓ A 8.0 86 Second £5,148 B 7.0 75 First Floor £5,148 B 8.0 86 Second £5,148 C 8.0 86 First Floor £5,148 C 8.0 86 Second £5,148 D 8.0 86 First Floor £5,148 ✓ D 9.0 97 Second £5,148 E 8.0 86 First Floor £5,148 E 8.0 86 Second £5,148

FLAT 6 (5 ROOMS) FLAT 12 (5 ROOMS) A 8.0 86 First Floor £5,148 A 8.0 86 Second £5,148 B 8.0 86 First Floor £5,148 B 8.0 86 Second £5,148 C 8.0 86 First Floor £5,148 C 8.0 86 Second £5,148 D 8.0 86 First Floor £5,148 D 9.0 97 Second £5,148 E 8.0 86 First Floor £5,148 E 8.0 86 Second £5,148 EPC Block A Easton Hall – C(61). Block B Easton Hall – D(81).

VAT The property is not elected for VAT.

DATAROOM For access to the Allsop Dataroom please use the following link: https://datarooms.allsop.co.uk/register/Y9WAL

PROPOSAL We are seeking offers in excess of £9,250,000 (Nine Million Two Hundred and Fifty Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level would reflect a gross initial yield of 7.85% on the projected 2019/2020 income excluding purchaser’s costs.

For further information or to make arrangements for viewing please contact:

Anthony Hart Jack Robson Andrew Wise Mark Dansky 0113 243 7950 0113 243 7952 020 7543 6731 020 7543 6813 [email protected] [email protected] [email protected] [email protected]

allsop.co.uk

Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. Design CommandD www.commandHQ.co.uk 02.19