EDINBURGH COLLEGE GRANTON CAMPUS, EDINBURGH EXECUTIVE SUMMARY

High specification on campus Student Residential Investment built in 2010.

Subject to a Nomination Agreement Currently producing a net operating with Edinburgh Colleges until 2035 income for 2015/16 of £556,917 subject and managed by CRM Students to annual RPI increases + 0.5% subject to cap of 5% and collar of 3% Edinburgh Colleges is one of the largest colleges in the UK, with over Offers around £7,250,000 (seven 25,000 students, formed in 2012 from million two hundred and fifty thousand the merger of Edinburgh’s Telford, pounds) are sought for the long leasehold Jewel & Esk and Stevenson colleges. interest providing a return of 7.25% after allowance for purchasers costs of 6.17%. Edinburgh is also home to a further 47,000 students and four universities – SPV company available to University of Edinburgh, Napier, Herriot purchase if required Watt and Queen Margaret University.

Long leasehold for 175 years from W.M. Morrison Supermarkets Plc dated 2010 at a peppercorn. LOCATION

Edinburgh is a capital city of global recognition.

It is the 7th largest city in the UK, with There are 23 major festivals held and internationally. The summer festivals access to the wider UK road and rail population of 492,680 (2014) boasting throughout the year in Edinburgh with c.5 attract up to 4 million visitors annually so network. Edinburgh International Airport the strongest economy of any city in million attendees. The largest of these summer occupancy is notably high across is 25 minutes from central Edinburgh the UK outside of London and is one of is the Edinburgh Festival Fringe which the city with rents often at a premium. offering direct flights to destinations the fastest growing cities in Europe. It is attracts an estimated 2.6 million attendees Demand for bedrooms is strengthened by including London, Manchester, New also one of the largest student markets in July and August. Other festivals and the city’s strong language school market York, Paris, Madrid, Berlin, Dublin, outside of London with four established events such as the Royal Edinburgh operating primarily during July and August. Rome, Amsterdam and Zurich. universities and approximately 47,000 full- Military Tattoo, Edinburgh International time students excluding Edinburgh College Festival, Edinburgh International Book Situated on the east of Scotland, Edinburgh which attracts a further 25,000 students. Festival and the Royal Highland Show sits on the main East Coast railway line, bring additional visitors both from the UK with direct connections to London and LOCATION

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Edinburgh College Residences are located On West Granton Road, Edinburgh.

There are direct bus links to Princes Street and the West End (15 Minutes). Just 10 minutes by bus or 30 minutes walking is Ocean Terminal which provides numerous shops, restaurants, a cinema, a gym, hairdressers and spa. The college is also within walking distance of Cramond and Silverknowes Beaches.

The property is located next to Edinburgh College Granton Campus, a large Morrisons Supermarket and close to Pure Gym. The accommodation is also within walking distance of Edinburgh College of Music and the University of Edinburgh Western General Hospital campus. SITUATION EDINBURGH COLLEGE

Edinburgh College is the largest college in Scotland and amongst the largest in the UK.

Edinburgh College is the largest college The Campus has a fully equipped sports Edinburgh Student Accommodation Market (Excluding Edinburgh College) in Scotland and amongst the largest in halls, as well as specially equipped University of Edinburgh Napier Heriot-Watt Queen Margaret the UK. It formed in 2012 following the spacious art studios, complete with the Edinburgh University University University merger of Edinburgh’s Telford College, latest tools and materials to produce FT student population 24,945 10,040 8,750 3,465 Jewel & Esk College and Stevenson a wide range of creative work. College. It has over 25,000 students from CAGR 2008-2013 3% -1% 5% 1% 96 different countries and offers over 900 The main student social area is known No. International Students 6,110 920 2,185 255 as the ‘Hub’, and is surrounded by a courses from access to degree level and % International Students 24% 9% 25% 7% continuing professional development. range of college facilities, including The college now has 4 campuses across student services, the student union and Change in UCAS applications 35% 10% 32% 6% 2011-2014 Edinburgh, Midlothian and East Lothian, a Hair and Beauty Training Salon. UCAS app: accepts ratio 10.1 7.7 8.5 8.3 employs 1,200 staff and has an annual The higher education system in Scotland turnover of £65m primarily funded by SFC. Times Rank 22 100 38 71= differs to the system in the rest of the UK. Change in Times Rank 2011- -11 -34 5 -4 The Granton Campus was redeveloped in • Many students move into higher 2014 2006. It is home to Edinburgh College’s education at the age of 17 rather than 18. Construction Centre for Excellence, based at the Forthside building on West Shore Road. • Four-year undergraduate degree Supply programmes, which have been The Campus specialises in providing Total Demand Pool 38,515 replicated in the United States and a range of modern and traditional Hong Kong offers students enhanced Students: bed ration 2.7 construction courses – from glazing, flexibility and academic breadth. carpentry and stone masonry to Uni Rooms 2014 9808 conservation and heritage construction • First degree students from Scotland Private sector rooms 2014 3272 skills. With support from Historic Scotland, or the rest of the EU studying in the centre is being continuously updated Scotland are entitled to have their and improved. Granton also plays host to tuition fees paid by the Student PASS - one of Scotland’s largest training Awards Agency for Scotland (SAAS). providers in the performing arts. DESCRIPTION

Nominations Agreement (minimum) week term time rent of £153.50. Granton, offers some of the best student Students currently enjoy a small discount The property is let to Edinburgh College of £5.50 per week from the college. accommodation available in Edinburgh. Combining by way of a Nominations Agreement a range of five-bedroom student apartments with of 25 years from August 2010 with a The annual rent increase is indexed to break option in 2025. The Agreement RPI +0.5% capped at 5% per annum a mix of self-contained studios, Granton student guarantees 90% (99 beds) based on a 43 and collared at 3% per annum. residences houses undergraduate, postgraduate and international students.

Accommodation The lounge areas comprise sofas and coffee table. Furniture varies Room Type No of Flats No of Rooms dependant on size of the apartment. Cluster Flats 21 105 Communal Area Studios 3 3 DDA Compliant 1 2 The ground floor holds a large communal Flat area with TV and games, laundry facilities, Total 26 110 WC and reception occupied by the current operator. The property benefits from

Internal Specification • Secure bike store The cluster flats consist of five individual • Access to car parking spaces ensuite bedrooms and a shared kitchen/ in the landlord’s car park. living room and hallway. The DDA flat on • Secure door entry system the ground floor comprises 2 individual • 24-hour CCTV ensuite bedrooms with a shared kitchen/ • 8 person lift living room. Studios provide a bedroom/ dining-kitchen area with ensuite bathroom. Tenure

All of the flats provide contemporary 175 year Long Leasehold Interest from fixtures, fittings and furnishings. Kitchens W.M. Morrison Supermarkets Plc dated include fitted units with microwave, oven, January 2010 at a peppercorn rent. hob, fridge-freezer with bedrooms including bed, desk, chair and wardrobe. Bathrooms comprise shower cubicle, WC and sink unit. DESCRIPTION

Summer Income Tax

All income during the 8 week summer We understand the properties are period (mid-June to mid-August) flows not elected for VAT purposes. VAT to the owner. Since the first available will therefore not be payable on the summer period in 2011 an agreement purchase price and a Transfer of Going has been in place with Experience Concern (TOGC) will not be applicable. English (previously Edinburgh Language Centre) who provide foreign language Planning summer students. The agreement with We understand that the properties Experience English is renewable annually. have consent for their existing use HMO Licence but purchasers will need to satisfy themselves on the current position. There is an HMO Licence in place for each individual flat for 2015/16 that is required EPC’s to be renewed in June each year EPC’s can be viewed via the data site Financial Information

Actuals Budget

2014/15 2015/16 Rental Income £634,293 £ 691,634 Summer Income £54,962 £76,000 Other Income £13,780 £14,000 incl. short term lets Laundry Income £2,333 £2,500 Totals £705,368 £784,134 Operational £227,742 £227,217 Expenses Net Income £477,626 £556,917 Running costs are currently £2065 per bed space. PROPOSAL

The property provides a total rental Ability to introduce purchasers Contact Simon Lowe income for 2015/16 budgeted own management platform. For further information, please contact: at £784,134 per annum and net Cushman & Wakefield operating income of £556,917. Offers around £7,250,000 (seven million Mike Mitchell 1 Marsden Street two hundred and fifty thousand pounds) Manchester, M2 1HW Nomination agreement with are required subject to contract. Cushman & Wakefield Edinburgh College expiring in 2035 1 Marsden Street Tel: 0161 455 3745 with a break option in 2025. The property is also available by purchasing Manchester, M2 1HW Email: [email protected] the SPV which holds the property. Guaranteed annual uplifts of RPI + 0.5% Tel: 0161 455 3797 Sophie Magee subject to cap of and collar of Email: [email protected] 5% 3% Cushman & Wakefield 1 Marsden Street Manchester, M2 1HW

Tel: 0161 455 3778 Email: [email protected] IMPORTANT NOTICE

DTZ Debenham Tie Leung Limited (C&W) nor that any services or facilities are in out or that a particular use is made of any gives notice to anyone who may read good working order. 4 The photographs part of the property this is not intended to these particulars as follows: 1.These appearing in this brochure show only certain be a statement that any necessary planning, particulars are prepared for the guidance parts and aspects of the property at the building regulations or other consents have only of prospective purchasers. They are time when the photographs were taken. been obtained and these matters must intended to give a fair overall description Certain aspects may have changed since be verified by any intending purchaser. 7. of the property but are not intended to the photographs were taken and it should Descriptions of a property are inevitably constitute part of an offer or contract. 2. Any not be assumed that the property remains subjective and the descriptions contained information contained herein (whether in the precisely as displayed in the photographs. herein are used in good faith as an opinion text, plans or photographs) is given in good Furthermore no assumptions should be and not by way of statement of fact. faith but should not be relied upon as being made in respect of parts of the property a statement or representation of fact. Any which are not shown in the photographs. As of September 2, 2015, DTZ and C&W potential purchaser, lessee or third party 5. Any areas, measurements or distances have combined under a new common should satisfy themselves by inspection or referred to herein are believed to be correct brand. Notwithstanding our new branding, otherwise as to the correctness of each of but their accuracy is not guaranteed and our underlying legal entities have not them. 3. Nothing in these particulars shall they do not form part of any contract. 6. changed, including their names. be deemed to be a statement that the Where there is reference in these particulars property is in good condition or otherwise to the fact that alterations have been carried