121 Residential Properties in Bedfordshire and Buckinghamshire 1 Executive Summary Milton Keynes

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121 Residential Properties in Bedfordshire and Buckinghamshire 1 Executive Summary Milton Keynes 121 RESIDENTIAL PROPERTIES IN BEDFORDSHIRE AND BUCKINGHAMSHIRE 1 EXECUTIVE SUMMARY MILTON KEYNES The portfolio comprises four modern freehold residential assets. Milton Keynes is a ‘new town’ built in the 1960s. The area Geographically, the properties are each connected to the major incorporates the existing towns of Bletchley, Wolverton and economic centres of Luton or Milton Keynes as well as being Stony Stratford. The population in the 2011 Census totalled commutable to Central London. 248,800. The government have pledged to double the population by 2026. Milton Keynes is one of the more successful (per capita) The current owners have invested heavily in the assets economies in the South East. It has a gross value added per during their ownership including a high specification rolling capita index 47% higher than the national average. The retail refurbishment of units, which is ongoing. sector is the largest contributor to employment. The portfolio offers an incoming investor the opportunity KEY FACTS: to acquire a quality portfolio of scale benefitting from • Britain’s fastest growing city by population. The population management efficiencies, low running costs, a low entry price has grown 18% between 2004 and 2013, the job base having point into the residential market, an attractive initial yield and expanded by 24,400 (16%) over the same period. excellent reversionary yield potential. • Milton Keynes is home to some of the largest concentrations PORTFOLIO SUMMARY AND PERFORMANCE of North American, German, Japanese and Taiwanese firms in the UK. No. of Assets 4 No. of Units 121 • Approximately 18% of the population can be found in the PRS, Floor area (sq m / sq ft) 5,068 / 54,556 with growth of 133% since 2001. Occupancy 100% No. of refurbished units 80 (66%) THE RESIDENTIAL MARKET No. of un-furbished units 41 (34%) Milton Keynes and Luton are established and growing Current rent resvered (pa) £974,268 employment centres. Rising demand for rented housing over the ERV (pa) £1,115,568 past decade and lack of new housing supply has continued to expand the PRS. LUTON Generally, there is an acute lack of quality housing in the South East of England. There are pockets of unfulfilled housing demand Luton is a large town situated 48 km (30 miles) north of London, in key markets outside London. A combination of planning policy with excellent connectivity to other major cities via its superior constraints and land availability has restricted further house road, train, rail and air connections. building targets. As such housing requirements spill over council boundaries adding pressure on neighbouring authorities. Dunstable, Houghton Regis and Luton form the Luton/Dunstable Urban Area which has a population of circa 258,000. The The largest unfulfilled needs will originate from London which population grew by 10.2% between 2001 – 2011. has a land constrained housing target of 42,000 relative to need of between 49,000 and 62,000. This makes Milton Keynes and Fast becoming a key employment zone - car manufacturing, Luton particularly well placed to continue an expanding PRS. engineering and millinery have been major employment sources. The town centre is undergoing a significant The portfolio offers an attractive opportunity to purchase an regeneration programme which will include upgrades to the efficient and high quality rental platform predicted to capture town’s bus and railway stations as well as an extension to The both rental and capital growth over the coming years. Mall Shopping Centre. Savills rental and capital growth forecast for the area are as KEY FACTS: follows:- • London Luton Airport provides flights to more than 100 Capital Values 2016 2017 2018 2019 2020 5 years destinations worldwide. South East 7% 4% 4% 3% 2% 21.6% • 23 minutes to London St Pancras by train. East 6.5% 4% 4% 3% 2% 21% • Approximately 24% of the population can be found in the Private Rental Sector (PRS), against an average of 18% PRS Rents 2016 2017 2018 2019 2020 5 years households nationally, with growth of 95% since 2001. Mainstream 3% 3% 3% 3% 3.5% 16.5% Rents 2 THE ASSETS ARE EACH CONNECTED TO THE MAJOR ECONOMIC CENTRES OF EITHER LUTON AND MILTON KEYNES ASSET SUMMARY Floor Area Floor Area Current rent Block Location Tenure No. of units ERV (Sq m) (Sq ft) reserved (pa) Mulberry Close Luton Freehold 42 1,674 18,019 £307,259 £368,448 The Drummonds Luton Freehold 33 1,328 14,295 £278,985 £292,308 Tudor Court Dunstable Freehold 20 1,024 11,021 £172,659 £225,360 Maple Court Bletchley Freehold 26 1,042 11,221 £215,365 £229,452 TOTAL 121 5,068 54,558 £974,268 £1,115,568 MILTON MILBROOK KEYNES A505 MAPLEBU CKINGHAMCOURT 4 A421 A5 A421 A5 HITCHIN LEIGHTON BUZZARD THE DRUMMONDS BICESTER TUDOR COURT 3 2 A41 DUNSTABLE 1 MULBERRY CLOSE LUTON A602 A418 A5 A34 AYLESBURY A41 WELWYN GARDEN CITY A418 OXFORD ST ALBANS A413 M25 A41 21 23 M25 M25 25 AMERSHAM WATFORD HIGH WYCOMBE DIDCOT HARROW 16 A404 HENLEY-ON-THAMES MAIDENHEAD M25 LONDON 15 3 MULBERRY CLOSE 1 - 15, 42 – 108 MULBERRY CLOSE, LUTON, BEDFORDSHIRE LU1 1BX No. of Units 42 Floor Area 1,674 sq m / 18,019 sq ft Current Rent Reserved (pa) £307,259 Occupancy 100% ERV (pa) £368,448 DESCRIPTION LOCATION The property comprises four modern The property is located on Mulberry Close Luton has a high population growth rate. purpose built residential blocks arranged immediately to the west of Luton town The majority of the population are aged as 42 apartments (30 x 1 beds and 12 x 2 centre. between 25 - 74. Major employment beds). Accommodation extends to 1,674 sectors include wholesale/retail trade, sq m / 18,019 sq ft excluding common Luton Railway Station is approximately human health and social work activity. parts. 26 of the 42 units have been 2.57 km (1.6 miles) to the east and Over 25% of the population privately rent. refurbished. There are 42 car parking connects with London Euston in 25- 1 2 35 minutes. The M1 (Junction7 10) is spaces. 8 5 INCOME 7 approximately 2 km (1.24 miles) to the1 152 The apartments are currently fully let 6 south. There are extensive amenities 9 1 9 50 5 including The Mall Shopping Centre in subject to 41 ASTs and 1 AT. The total 126.5m 1 LB Luton48 town centre itself. current rent reserved is £307,259 per annum. We estimate the ERV when all 9 6 1 AS 138 HBUR NHAM units are refurbished is in the region of ROAD 136 5 5 arage 1 127.7m £368,448 per annum. 3 5 1 3 4 1 1 3 1 El Sub Sta 8 1 to o 1 t 5 2 M ULBE RRY C LOSE 8 0 FW 1 o t 0 0 1 o t 4 7 2 2 0 7 1 o t 2 4 CW CF 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 for the purposes of identification only and although believed to be correct accuracy is not guaranteed. 4 0m 10m 20m30m THE DRUMMONDS 1-33 THE DRUMMONDS, 745- 749 DUNSTABLE ROAD, LUTON, BEDFORDSHIRE LU4 0HL No. of Units 33 Floor Area 1,328 sq m / 14,295 sq ft Current Rent Reserved (pa) £278,985 Occupancy 100% ERV (pa) £292,308 DESCRIPTION LOCATION The property comprises a modern The property is located on Dunstable Road Dunstable is a market town located three storey purpose built residential between Dunstable to the west and Luton on the outskirts of Luton. It has a apartment block and 2 detached to the east. population of 35,000. Households in bungalows. Accommodation is arranged Dunstable are typically more likely to as 33 units (10 x 1 bedroom apartments, The M1 motorway (Junction 11) is be privately rented. 20% of residents 21 x 2 bedroom apartments and 2 x 1 immediately to the east, providing work within the ward, whilst other key bedroom bungalows). Accommodation excellent transport links south towardsEl Sub S ta destinations for work include other parts extends to 1,328 sq m / 14,295 sq ft London and north towards Birmingham. of Central Bedfordshire and Luton. 68% of (excluding common parts). 25 of the 33 Leagrave Railway Station is around 2.57 commuters travel by car. units have been refurbished. There are 41 km (1.6 miles) to the north and connects car parking spaces. with London St Pancras in 40 minutes. INCOME 1 Luton and Dunstable Hospital is situated The property is currently fully let subject directly opposite the scheme.Shelter There is a Tesco Extra close by and local shops to 33 ASTs. The total current rent reserved is £278,985 per annum. We estimate the situatedW on Dunstable Road. a 135.6m r 788 d ERV once all units have been refurbished is B d C y R in the region of £292,308 per annum. 796 7 3 136.9m 5 7 3 7 to 24 13 19 1 to 3 27 to 3 1 1 3 26 5 1 2 5 25 4 14 6 to 18 7 8 2 The Drummonds 9 10 12 P 11 l a y g r o James u n a Court d 2 Downview S T A Sta N El Sub T O N R 6 7 O 1 1 2 A 1 D D o w n v i e w 1 6 26a 24a NOTE:- Reproduced from the Ordnance Survey Map with the permission of the Controller of H.M.
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