DEVONSHIRE STREET 2LONDON W1

A SUBSTANTIAL INVESTMENT BUILDING, BETWEEN REGENTS PARK, MARYLEBONE AND THE WEST END 2 DEVONSHIRE STREET, LONDON W1 2

INVESTMENT SUMMARY

• Configured to provide 56 self contained studio units, and 7 communal rooms/kitchens • Total floor area 2,366.1 sq m (25,470 sq ft) • Average unit size 23.2 sq m (250 sq ft) • Currently operated as student accommodation and short term lets • Income: °° Contracted student income – £825,521 °° Projected summer revenue – £577,000 °° Total – £1,400,000 • Projected reversionary income – circa £1,750,000 per annum • Planning use: Sui Generis • Held on a Headlease for a term of 999 years from April 1932 • Possible value add through redevelopment subject to obtaining the necessary consents • Located in Marylebone, between Regent’s Park and Oxford Circus • Within close proximity to University College London and the University of Westminster 3 2 DEVONSHIRE STREET, LONDON W1 Great Portland Street Regent’s Park DEVONSHIRE STREET University City of The British College London London Museum 2 DEVONSHIRE STREET University of Soho Southbank Oxford Circus Mayfair 2 Westminster 2 DEVONSHIRE STREET, LONDON W1 6

LOCATION AND SITUATION

The property is located within the City of Westminster. University College London (0.5 miles to the east) and the University of Westminster (0.6 miles to the west) are within the vicinity. Devonshire street runs east/west/ connecting Marylebone High Street Communications are excellent with both Regents Park (Bakerloo line with Great Portland Street. The property sits to the east of Devonshire – Zone 1) and Great Portland Street (Hammersmith & City, Circle and Street at its junction with Hallam Street. Metropolitan – Zone 1) station under a five minute walk. In addition Royal Regent’s Park is approximately (0.4 miles to the north) and Oxford there are various accessible bus routes that connect the property to wider Street (0.6 miles to the south). Marylebone Village is less than half a mile London. The Westway (A40) 1.2 miles to the west, links the West End to the West. to the M4 and Heathrow Airport.

KING’S CROSS ST PANCRAS

D R D A E T S P M A H

DEVONSHIRE STREET EUSTON SQUARE

LONDON W1 EUSTON REGENT’S PARK 2 SQUARE

MARYLEBONE ROAD WARREN STREET

G O W E RS T

GREAT PORTLAND STREET

REGENT’S

PARK C L E V E L A N D S T T O T E N H A M C O U R TO A D

FITZROY SQUARE

L P E R I H S N O V E D

MARYLEBONE ROAD

T S R E V O S L O B

DEVONSHIRE ST E C A L P D N A L T R O P

G O W E RS T

C H A R L O T ES T

t

i

o

n

a

1

l (PH)

38

t

S 5

o

8

t 3

C L E V E L A N D S T 6

u 7 d

C e PCs y n c l

t e

s

H

H GOODGE i r e

o

S

u 24 t

STREET a

6

s T S D L E I F H C T I T T A E R G 24 7 t

i

e o WEYMOUTH ST se 8

n

7

u

9

2

o

2

T S E L O P M I W 24

22

H

o

t 4

5

sy

1

o

2 g

PADDINGTON r

A 3

NEW CAVENDISH ST 8 STREET 5

GARDENS 24 PH 0 T O T E N H A M C O U R TO A D

T S R E Y A H T

i C H A R LO T SE T F

5 Apa

0

E C A L P R E T S E C U O L G 1 G 0 LB 9 R 0 23

2 E

1 4 NEW CAVENDISH ST 5 A

T

P

O 7 5

R

o 1

t

2 T BO

L 4 2 5 1 T 2 A 3 L 2 SOV EAS N S D E W 23

E S 0 1

d R

M n 6 rtla TR

6 o

MORTIMER ST T 1 P S e l to S

0 h a o T it N p h E 22

t s T o 9

3 E H e 22 5 R n l t 4 C ome te E o W 8 E S 14 for n r T E 1 ildre E R h l T

d C 7 ona MARYLEBONE C an 0 ti

TS S R E N R E B Na 2 TS WNE MA yal lind

K R o e B 2

R The r th 6 A e fo R A HT BO PNLA CE itut

P Inst 3

1 6 5 1

0 0 t

2 S 6 2 o t 2 C e 8

o 2

o a 4 6 W I G M O R E S T 11 u f o r 0 t r

d

22 5

1 6

0 0

T E E R T S T N E G E R 2

5

0

1

21 6

6 9

D 2 8

E t 9 o

V 9

5

O 1

21 7

7 W I G M O R E S T 6 N

M 6

S

FITZROVIA 7 EW 9

H

I 1 R 8

S 21 E 6

4

R 5 9

O 1 W 2 1

2 1 0

MANCHESTER 7 SQUARE 2 2 1 0 8 CAVENDISH 8 SQUARE 20 8 W I G M O R E S T 3

2 0 MARGARET ST 6 6 20

4

5 8 H 8 6 P

2 0

3 4 9

o

7 a

1 OXFORD STREET t 8

d 1 woo 1 PORTMAN ood 4 G SOHO SQUARE to rt W ARDS TOU R ou 4

C 5

W I G M O R E S T 5 SQUARE

2 W

18

o 1 o

e o

t 8

t

4 y

1

to m 9

7 o 1 OXFORD 9 u 4 t h

CIRCUS H

o

u

se 2

8 0

2 7 2

OXFORD STREET 7 D 1 H e

v 3 a o

2 l l n 1

a 1 9

4

7 H 9 6

6 m

7 8

o o

t C u

B 1 s o e R N E W B O N DS T u I D r

ilds t u 1

d G F BOND GREAT MARLBOROUGH ST n 7

y a O SOHOit 1 C n R 1 7 Londo of 9 STREET 6 D 0 te tu M HANOVER R EG EN ST RE T Insti E SQUARE 0m 10m 20m 30m W 7 S OXFORD STREET 8

NOTE:- Reproduced from the Ordnance Survey Map with the permission of the Controller of H.M. Stationery Office. © Crown copyright licence number 100024244 Savills (UK) Ltd. NOTE:- Published 8 for the purposes of identification onlyT and

e 9 n although believed to be correct accuracy is not guaranteed. 1 7 2 DEVONSHIRE STREET, LONDON W1

HISTORY

Marylebone traces its history back to the Domesday book. The eastern This impressive corner building with generous and flexible floorplates half of Marylebone was developed by the Duke of Portland in the 18th appeals to a variety of occupiers and is situated in an enviable position and 19th Centuries. In the late 19th and early 20th century following the close to London’s West End. Immediate neighbours include: prestigious expiration of individual building leases, much of the area was redeveloped hotels such as The Langham, The Sanderson and The Edition; world class and many of the area’s original Georgian houses were replaced by large universities such as University College London; and major employers such mansions and office blocks. as the BBC. Constructed in 1925, 2 Devonshire Street was originally laid out as residential apartments. In 1964 the property was acquired by the YMCA for use a high class women’s hostel and since 2007 it has been used as student accommodation and serviced apartments. The property sits on land currently owned by the Langham Estate. 2 DEVONSHIRE STREET, LONDON W1 8

FLOOR PLANS

Gross Internal Area 2,188.07 sq m (23,553 sq ft) Plant Room and Vaults 178.09 sq m (1,917 sq ft) Overall Gross Internal Area 2,366.1 sq m (25,470 sq ft)

Basement Ground Floor

1st – 5th Floor 6th Floor

Bedrooms Communal Area’s For identification purposes only. Not to scale. 9 2 DEVONSHIRE STREET, LONDON W1

TENANCY SCHEDULE

Projected Revenue Summer 2016 Contracted Student Income 2015/16 (Assuming Full Occupancy) Tenancy Tenancy Room Rent Per Contracted End of Rent Per Summer Flat Start Date End Date Weeks Type Week Rent Summer Stay Days Night Rent LG1 20/09/2015 10/07/2016 42 Classic £309 £12,978 15/09/2016 67 £165 £11,055 LG2 14/09/2015 06/06/2016 38 Classic £309 £11,742 16/09/2016 101 £165 £16,665 LG3 20/09/2015 10/07/2016 42 Premium £339 £14,238 17/09/2016 67 £175 £11,725 1 05/09/2015 27/08/2016 42 Family £375 £15,750 18/09/2016 19 £185 £3,515 2 15/09/2015 05/07/2016 42 Premium £339 £14,238 19/09/2016 72 £175 £12,600 3 11/08/2015 09/08/2016 52 Family £375 £19,500 20/09/2016 37 £185 £6,845 4 Staff Occupied Classic £0 21/09/2016 168 £165 £27,720 5 10/09/2015 01/09/2016 51 Classic £309 £15,759 22/09/2016 14 £165 £2,310 6 14/09/2015 04/07/2016 42 Classic £309 £12,978 23/09/2016 73 £165 £12,045 11 01/09/2015 21/06/2016 42 Family £375 £15,750 24/09/2016 86 £185 £15,910 12 14/09/2015 05/09/2016 50 Premium £339 £16,950 25/09/2016 10 £175 £1,750 13 21/09/2015 11/07/2016 51 Premium £339 £17,289 26/09/2016 66 £175 £11,550 14 10/09/2015 08/09/2016 52 Classic £319 £16,588 27/09/2016 7 £165 £1,155 15 21/09/2015 11/07/2016 42 Classic £309 £12,978 28/09/2016 66 £165 £10,890 16 10/09/2015 02/06/2016 38 Premium £339 £12,882 29/09/2016 105 £175 £18,375 18 13/09/2015 03/07/2016 42 Classic £309 £12,978 30/09/2016 74 £165 £12,210 19 14/09/2015 04/07/2016 42 Premium £339 £14,238 01/10/2016 73 £175 £12,775 21 11/09/2015 01/07/2016 42 Family £420 £17,640 02/10/2016 76 £185 £14,060 22 18/09/2015 09/09/2016 51 Premium £372.90 £19,017.90 03/10/2016 6 £175 £1,050 23 04/05/2015 04/05/2006 52 Premium £330 £17,160 04/10/2016 134 £175 £23,450 24 31/08/2015 22/08/2016 51 Classic £309 £15,759 05/10/2016 24 £165 £3,960 25 14/09/2015 03/09/2016 51 Classic £309 £15,759 06/10/2016 12 £165 £1,980 26 12/09/2015 02/07/2016 42 Premium £339 £14,238 07/10/2016 75 £175 £13,125 28 20/09/2015 10/07/2016 42 Classic £309 £12,978 08/10/2016 67 £165 £11,055 29 14/09/2015 05/09/2016 51 Premium £339 £17,289 09/10/2016 10 £175 £1,750 31 14/09/2015 04/07/2016 42 Family £420 £17,640 10/10/2016 73 £185 £13,505 32 20/09/2015 12/06/2016 38 Premium £339 £12,882 11/10/2016 95 £175 £16,625 33 27/09/2015 17/07/2016 42 Premium £339 £14,238 12/10/2016 60 £175 £10,500 34 13/09/2015 03/07/2016 42 Classic £309 £12,978 13/10/2016 74 £165 £12,210 35 18/09/2015 10/05/2016 38 Classic £309 £11,742 14/10/2016 128 £165 £21,120 36 21/09/2015 11/07/2016 42 Premium £339 £14,238 15/10/2016 66 £175 £11,550 38 26/09/2015 18/06/2016 38 Classic £309 £11,742 16/10/2016 89 £165 £14,685 39 05/09/2015 25/06/2016 42 Premium £339 £14,238 17/10/2016 82 £175 £14,350 41 08/09/2015 28/06/2016 42 Family £412.50 £17,325 18/10/2016 79 £185 £14,615 42 12/09/2015 02/07/2016 42 Premium £339 £14,238 19/10/2016 75 £175 £13,125 43 14/09/2015 03/09/2016 51 Premium £339 £17,289 20/10/2016 12 £175 £2,100 44 01/09/2015 23/08/2016 51 Classic £309 £15,759 21/10/2016 23 £165 £3,795 45 19/09/2015 17/09/2016 52 Classic £339.90 £17,674.80 22/10/2016 -2 £165 -£330 46 01/09/2015 23/08/2016 51 Premium £372.50 £18,997.50 23/10/2016 23 £175 £4,025 48 22/08/2015 20/08/2016 52 Classic £309 £16,068 24/10/2016 26 £165 £4,290 49 18/09/2015 02/07/2016 42 Premium £339 £14,238 25/10/2016 75 £175 £13,125 51 13/09/2015 14/06/2016 39 Family £403.79 £15,747.81 26/10/2016 93 £185 £17,205 52 14/09/2015 05/09/2016 51 Premium £339 £17,289 27/10/2016 10 £175 £1,750 53 04/09/2015 24/06/2016 42 Premium £339 £14,238 28/10/2016 83 £175 £14,525 54 25/09/2015 15/07/2016 42 Classic £309 £12,978 29/10/2016 62 £165 £10,230 55 08/08/2015 27/08/2016 51 Classic £309 £15,759 30/10/2016 19 £165 £3,135 56 12/09/2015 03/09/2016 51 Premium £372.90 £19,017.90 31/10/2016 12 £175 £2,100 58 26/09/2015 24/05/2016 38 Premium £309 £11,742 01/11/2016 114 £175 £19,950 59 14/10/2015 01/06/2016 33 Family £339 £11,187 02/11/2016 106 £185 £19,610 61 10/09/2015 01/09/2016 51 Classic £309 £15,759 03/11/2016 14 £165 £2,310 62 14/09/2015 04/07/2016 42 Family £375 £15,750 04/11/2016 73 £185 £13,505 63 13/11/2015 03/06/2016 29 Classic £309 £8,961 05/11/2016 104 £165 £17,160 64 15/06/2015 15/08/2016 38 Classic £309 £11,742 06/11/2016 31 £165 £5,115 65 14/09/2015 05/09/2016 51 Premium £339 £17,289 07/11/2016 10 £175 £1,750 67 16/09/2015 08/09/2016 51 Classic £310.73 £15,847.23 08/11/2016 7 £165 £1,155 68 14/09/2015 06/06/2016 38 Family £375 £14,250 09/11/2016 101 £185 £18,685 £825,521.14 £577,000 Total £1,402,521.14 2 DEVONSHIRE STREET, LONDON W1 10

PLANNING INCOME AND PROJECTIONS

The building is currently operated as: Studios are let as student accommodation during term time at the following rents: • Student accommodation – 36 weeks per annum • Serviced apartments – 16 weeks Unit Type Current Projected 16/17 Planning Ref: 11/04128/CLOPUD Classic studio £309 per week £349 per week Premium studio £339 per week £399 per week Use as a hostel (sui generis) to accommodate: Family Room £375 per week £499 per week i) during the Academic Terms (comprising a minimum of 38 weeks Rents charged are ‘all-inclusive’ and cover:- per annum) undergraduate and postgraduate students enrolled on a full- time accredited degree or post graduate course at a Higher Education • Furniture • Electricity & water Institute within a London Borough, and • Kitchenette facilities • Access to communal lounge area • Flat-screen TV • On site laundry facilities ii) outside the Academic Terms to students or non students, either • High speed Wi-Fi • Personnel on site 8 hours a day individually or collectively, on a short term basis (less than 90 days). Projected summer revenue: Decision – Application Permitted Decision Issued Date Wed 10 Aug 2011 Unit Type Current Projected 16/17 Classic studio £165 per night £173 per night This planning permission was subsequently amended in a letter dated Premium studio £175 per night £183 per night 19/08/15 from the City of Westminster: Family Room £185 per night £195 per night ‘To the extent that the academic terms of University College London are less than 38 weeks, which appears to be the case, the Council considers *In addition to the ‘all-inclusive’ cover, a linen service is offered for the serviced apartments. that it would be reasonable for the minimum period, referred to in the definition of “academic term” in the said agreement, to coincide with the actual academic terms of University College London. Term dates STUDENT ACCOMMODATION are likely to differ from year but for the year 2015/2016 the Council MARKET understands the academic terms for University College London to equate to 29 weeks and 4 days’. Higher Education in London There are approximately 290,000 students in the Greater London ACCOMMODATION area, more than any other city in Europe. There are approximately 100,000 international students living in London, they are attracted to Accommodation is arranged over basement, ground and six upper floors. the capital by the strength of its higher education institutions. There The property consists of 56 self contained studios. There is a large open are 39 recognised universities in London and three of these, Imperial plan lounge area and laundry room at basement level. On the ground floor College, University College and the London School of Economics there is a generous entrance hall / concierge area. With the exception of are rated amongst the best 20 universities in the world. In addition, the ground, each floor benefits from an additional communal kitchen. The there are a significant number of private and independent colleges total floor area is 2,366.1 sq m (25,470 sq ft). and language schools whose students require accommodation, including Regents American College. Supply of Student Accommodation in London London has an under-supply of student accommodation. Currently, only around 22% of full time students have access to purpose built residences. The average regional UK supply level is around 35-40%. In addition, challenges around securing planning permissions, CIL, land pricing and build costs make the barriers to entry to increase supply of student accommodation significant. It is therefore a rare opportunity to be able own student accommodation in central London. 11 2 DEVONSHIRE STREET, LONDON W1

TENURE VAT

The property is held on a Headlease for a term of 999 years from The property is not elected for VAT. April 1932. FURTHER INFORMATION METHOD OF SALE A full suite of background information, including EPCs, can be found on The property is offered for sale by private treaty. the online dataroom at: Offers are sought for the Headlease interest subject to contract and www.savills.co.uk/2devonshirestreet the existing tenancies. Should a closing date for the submission of offers be set, all parties who have expressed an interest will be notified in due course.

VIEWINGS

Viewings are strictly by appointment via the vendor’s sole selling agents, Savills. Please contact one of the team below to make an appointment. Savills Residential Investment Student Investment James Laverack Davina Clowes Adam Alster Marcus Roberts James Hanmer + 44 (0) 20 7016 3770 +44 (0) 20 7016 3838 + 44 (0) 20 7299 3097 + 44 (0) 20 7016 3799 + 44 (0) 207 016 3711 [email protected] [email protected] [email protected] [email protected] [email protected] Important Notice Savills, and their clients give notice that: 1. They are not authorised to make or give any representations or warranties in relation to the property either here or elsewhere, either on their own behalf or on behalf of their client or otherwise. They assume no responsibility for any statement that may be made in these particulars. These particulars do not form part of any offer or contract and must not be relied upon as statements or representations of fact. 2. Any areas, measurements or distances are approximate. The text, photographs and plans are for guidance only and are not necessarily comprehensive. It should not be assumed that the property has all necessary planning, building regulation or other consents and that Savills and Knight Frank have not tested any services, equipment or facilities. Purchasers must satisfy themselves by inspection or otherwise. Designed and Produced by Savills Marketing: 020 7499 8644 | February 2016