Meadow Court, Edinburgh, EH9 1NH Sauchiehall Street, Glasgow, G2
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High yielding student accommodation assets let at affordable rents in prime, city centre locations. Meadow Court, Sauchiehall Street, Edinburgh, EH9 1NH Glasgow, G2 3HU Managed by 2 EXECUTIVE SUMMARY Meadow Court, Edinburgh Sauchiehall Street, Glasgow • Opportunity to acquire a leased, • Opportunity to acquire a prime, We are pleased to offer a rare opportunity to acquire city centre located purpose centrally located, student two well let student accommodation properties in the built student accommodation accommodation investment renowned Scottish Cities of Edinburgh and Glasgow. with reversionary potential; boasting market encompassing • Meadow Court is centrally located affordable rent profile; Both benefit from city centre locations, within prime in Sciennes, adjacent to Meadows • Situated Glasgow City Centre, student areas, offering good quality accommodation at Public Park with Edinburgh’s equidistant from Glasgow’s principal competitive rents. 2015/16 occupancy of 100% for both University’s main campus located universities, and within an area assets. Combined projected net income for 2016/17 of just 5 minute walk away; boasting an abundance of student • Subject to a lease to the amenities including shops, pubs, £1,008,947 with strong rental growth and light touch University of Edinburgh ; clubs and other leisure facilities; refurbishment potential from a low base. • Managed by Prime Student Living; • Managed by Prime Student Living; • The property comprises 148 well • Highly accessible location with specified student bedrooms excellent bus, train and SPT subway arranged as 3, 4, 5 and 6 bedroom connections to all universities cluster flats along with 5 and 6 and the rest of the city; bedroom townhouses arranged • Comprises 81 student bed spaces PROPOSAL around a central courtyard; • The accommodation is the • Edinburgh is also home to nearly most affordable private sector 48,000 students in total across accommodation in Glasgow, with the University of Edinburgh, average room prices of £112 per week; We are seeking offers in excess of £14,650,000 subject Edinburgh Napier, Herriot Watt • Multiple demand drivers with and Queen Margaret University; five Higher Education Institutions to contract which reflects a Net Initial Yield of 6.68% • Heritable Interest; (HEI’s) and almost 55,000 full based on 2016/17 income and purchasers cost at 3.11%. • Summer income is underpinned time students (HESA 2014/15); by annual agreement with • Heritable Interest Destiny Student Limited; • Potential lease and nominations The properties are also available separately. • Budgeted Net Operating Income agreements with Glasgow’s for 2016/17 of £696,155. Higher Education Institutions; • Budgeted Net Operating Income for 2016/17 of £312,792. 3 MANAGEMENT AND OPERATIONS Prime Student Living is the student housing management arm of the Crosslane Group. Prime Student Living manage and operate the entire portfolio of the Victus European Student Accommodation Fund, along with the student accommodation of other third parties such as Coral and AUB. It is a member of ANUK, which is the The assets are available with or recognised industry leader in the without the benefit of a management accreditation of managers of agreement, however Prime Student student accommodation. Prime Living would be delighted to offer currently manages existing student their services to continue to manage accommodation of over 2,000 the portfolio. The management fee bedrooms in the UK, France and would be dependent on the scope of Germany. By the commencement of the services required however typically, 2015/16 academic year, Prime will have for mandates of this type the fee is 4,000 bedrooms of accommodation estimated at approximately 4% of gross under management throughout rents received, subject to negotiation. A the UK and mainland Europe. full management proposal is available. Prime aim to offer a complete management service to their partners, from ensuring each room is occupied on the first day of term to collecting the rents. Their team will utilise all sales channels and relationships and their building managers will market directly to existing students, whilst their website and online activity can pick up new and international students looking for accommodation. 4 Meadow Court, Sciennes, Edinburgh 5 Location Edinburgh is a capital city of global recognition, with population of 492,680 (2014) boasting the strongest economy of any city in the UK outside of London and is one of the fastest growing cities Situation in Europe. It is also one of the largest student markets outside of London with four established Meadow Court is centrally located in Sciennes, opposite the University of Edinburgh’s own universities and approximately 47,000 full-time students excluding Edinburgh College which accommodation on and adjacent to Meadows Public Park. The University of Edinburgh’s main attracts a further 25,000 students. campus is located just 0.5km (0.3miles) to the north, therefore the property is strategically well located for students of the University of Edinburgh, within a 5 minute walk time. There are 23 major festivals held throughout the year in Edinburgh with c.5 million attendees. The summer Sciennes is very close to many different departments of the University of Edinburgh, and therefore “One of the fastest festivals attract up to 4 million visitors annually so summer has a large student population, some living in modern university-owned residences. Most of the occupancy is notably high across the city with rents often student housing is non-purpose built merging into Grange, Newington and Marchmont. growing cities at a premium. Demand for bedrooms is strengthened in Europe” by the city’s strong language school market operating The property is 1.5 miles from Princes Street, Edinburgh’s main shopping destination which is primarily during July and August. home to several UK high street brands such as Boots, BHS, H&M, Debenhams, House of Fraser, Marks & Spencer, Topman and Topshop and HMV. Edinburgh sits on the main East Coast railway line, with direct connections to London and access to the wider UK road and rail network. Edinburgh International Airport is 25 minutes from central The property benefits from excellent transport links with numerous bus stops close to the property Edinburgh offering direct flights to destinations including London, Manchester, New York, Paris, providing access to the city. Edinburgh Waverley Station is 1.3 miles north of the property. Madrid, Berlin, Dublin, Rome, Amsterdam and Zurich. 6 Meadow Court, Sciennes, Edinburgh Description Internal Specification Meadow Court comprises 148 student bedrooms arranged as 3, 4, 5 and The main block comprises cluster flats of 3, 4 and 6 bedrooms. The 3 and 4 beds have one 6 bedroom cluster flats along with 5 and 6 bedroom townhouses around toilet and one shower/bathroom with the 6 beds benefiting from two toilets and two shower/ a central courtyard with access provided off Sciennes Road. bathrooms. Along with the main block there are two blocks of town houses comprising 5 and 6 bedrooms. Again the 6 beds benefit from two toilets and two shower/bathrooms, with the 5 The courtyard area provides car parking for 13 cars as well as bicycle storage. beds having just one of each. On-site 20Mb Broadban d FlatscreenTV All Utility 24/7 On-site Washer/ Dryer Car Parkin & FREE gement & g Wi-Fi Bills Included Mana Wi-Fi is provided throughout the property and the property The property was refurbished in 2012 which included new bathrooms Maandint kitchen/loungeenance provides a free shuttle to University buildings. areas including ovens, work surfaces, washer/dryers, new furniture and flooring. Each flat has shared kitchen/lounge areas with soft furnishings, dining table and chairs and washing machine. Wall mounted flat screen TV’s are provided in lounge areas. Flat Schedule Large bedrooms comprise 3/4 beds, standard rooms have single beds. There is a small accommodation office located between the main block and one of the blocks of town houses Room Type 3 Bed 4 Bed 5 Beds 6 Beds Number of rooms and storage for 22 bicycles. Cluster Flats 1 22 4 115 Houses 3 3 33 Total 3 88 15 42 148 7 Meadow Court, Sciennes, Edinburgh Edinburgh Student Accommodation Market There are 4 universities in Edinburgh, with the University of Edinburgh being by far the largest in the city with nearly 25,000 students. Edinburgh Napier and Herriot Watt are of a similar size, whilst Queen Margaret is relatively small. Historic 2014/15 University of Edinburgh Edinburgh Napier Heriot Watt Queen Margaret Occupancy FT student population 24,975 10,460 8,695 3,525 CAGR 2008-2014 3% 0% 3% 1% 100% 2015/16 Number of international students 6,495 985 2,050 225 % of international students 25% 9% 24% 6% 91% Change in UCAS applications 2011-2014 26% 4% 15% -4% Satisfaction UCAS app : accepts ratio 10.2 7.7 8.3 8.1 Rating Times Rank 22 93 38 96= The University of Edinburgh Edinburgh Napier University Heriot-Watt University Tenure The University of Edinburgh is the sixth Edinburgh Napier University was founded as a Heriot-Watt University was established as oldest in the English speaking world and is technical college in 1964 and gained university the School of Arts Edinburgh in the 1820s Heritable Interest. ranked 17th in the world by the QS World status in 1992. The University is named after and was awarded university status in University Rankings. It is rated 4th in the John Napier, the inventor of logarithms and 1966. It is currently divided into 6 schools UK for research power by the Research the decimal point. Napier University was and operates out of a parkland campus Excellence Framework and is a member of awarded the Queen’s Anniversary Prize for in the South West of Edinburgh. Tenancies the Russell Group of elite UK universities. Higher and Further Education in 2009.