CONTENTS

04 - : MACRO OVERVIEW

06 - ECONOMY

08 - CONNECTIVITY

10 - EDUCATION 18 - SALES AND RENTAL MARKET

12 - REGENERATION 20 - THE DEVELOPMENT

16 - SUPPLY AND DEMAND 22 - AREA MAP

32 - COMPARABLE MAP

34 - SPECIFICATIONS

35 - DEVELOPER

36 - DISCLAIMER BIRMINGHAM: MACRO OVERVIEW

Situated centrally between major UK hubs, Birmingham has become the most popular destination for people moving out of the Capital. With large volumes of regeneration and high-connectivity, it's no surprise that it was recently named the number one business hotspot in the UK, outside of .

4 5 ECONOMY ECONOMY

BIRMINGHAM ECONOMY -

Birmingham has more open spaces than Paris and more than At a GDP of £38.7bn Contracting in 2020 Venice. These factors in 2019, Birmingham due to Covid-19, is the city with the Birmingham's GDP is contribute to the city largest economy in the expected to grow over being listed in the Top UK outside of London 11% in 2021 50 Most Livable Cities of the Mercer’s Global Quality of Living Report.

The 4% GDP growth in PWC’s Emerging Trends 2019 outstripped the in Real Estate 2019 national average of ranked Birmingham as 1.4% and London at 2% the most investable city in the UK

Birmingham is undergoing enormous regeneration ahead of hosting the Commonwealth Games in 2022. The aims to create 65,000 square metres of new and improved public spaces.

The region recorded HSBC, Deutsche Bank It also currently has one of the largest shopping centres the biggest growth in and are in and the 2nd highest number of Michelin-starred employment of all UK collectively relocating restaurants in the UK. regions with 81,000 to Birmingham new jobs in 2019 bringing 8000 new staff members

Sources: Knight Frank, JLL, , One Touch Property Investments

6 7 CONNECTIVITY CONNECTIVITY

THE HS2 PROJECT - Birmingham is the most strategically-located city in the UK, The HS2 will connect Birmingham to with 90% of the population able to reach it in under 4 hours. London in just under 45 minutes. With It promises to cement this reputation as Europe’s largest infrastructure project, the HS2 high-speed rail, shortly comes most workers in London already spending underway. that time commuting, the more affordable The world-class HS2 Curzon Station will sit between the cost of living in Birmingham will further and the Creative Business add to the rapid population growth. Quarter. It will fully integrate with the city’s current transportation and drastically shorten connections to the rest of the country.

The City Council predicts that Curzon Station will generate a cumulative GDP impact of £3.1 billion and an economic output of £1.4 billion.

BIRMINGHAM AIRPORT - HS2 TRANSPORTATION LINK - £500 million investment in EDINBURGH UK's 3rd infrastructure to 2033 to EDINBURGH largest airport outside to GLASGOW 4 hour 59 minutes of London 4 hour 45 minutes 50 airlines 3 hour 11 minutes just under 3 hour 20 minutes operating 12.5 million 143 direct routes passengers in 2018 to 1 hour 59 minutes to LEEDS 49 minutes 1 hour 35 minutes MANCHESTER 40 minutes

BIRMINGHAM to LONDON 2 hours 45 minutes

LONDON

Sources: Google map, thetrainline.com, hs2.org.uk Sources: Knight Frank, Growth Company, Statisa, One Touch Property Investment

8 9 EDUCATION EDUCATION Jewelly Quarter University 9mins

Birmingham Birmingham Adderley Park EDUCATION Snow Hill City University

5minsGarrison Lane Park Birmingham - Moor Street Birmingham New Street The lifestyle Birmingham has to offer has attracted students locally and abroad, drawn to its cultural diversity and world- East & Green class education. It makes a prestigious feature on the list of top Bordesley 50 Best Student Cities according to the QS World University Five Ways Rankings.

There are 5 first-rate universities producing 25,000 graduates a year. 49% of these graduates opt to stay in Birmingham, contributing to a skilled and talented workforce.

The high graduate retention rate has resulted in 40% of Birmingham's population being under the age of 25, contributing to a strong rental demand. It also adds to the growing local economy as major companies establish head offices to take advantage of the young pool of talent. University 19mins

• Over 34,000 students, 40% are postgraduates • Over 8,700 international students from approximately 150 countries One of the top 100 universities in the world Total number of students • The 11th best university in the UK in Birmingham • 80,000 • One of the top 50 universities ranked for student life quality

UK’s second-largest 2nd student city • Listed in the top 50 universities in the UK • Ranked 11th in the world for students pursuing Marketing studies • An international community of students from more than 120 countries • Featured in the World Top 50 for International Outlook of Birmingham's • Over 250 university partnerships in around 45 countries 40% population is under the age of 25 years old

• 24,500 students • Featured in the top 100 universities in the UK • 97% of students are employed or in further study within 6 months of graduating • £260 million invested to transform the campus

Sources: QS World University Rankings, Times Higher Education, THE World University Rankings

10 11 REGENERATION BIRMINGHAM MAP REGENERATION

Birmingham is currently undergoing a 20-year City Centre 4 CURZON STATION Masterplan to create over 50,000 new jobs and 16 million sq ft of à A new HS2 rail terminus covering almost 350,000 sq ft, new mixed-use floorspace. is set to open it's doors in 2026. Routes opening

A38 2026 Aptly called the Big City Plan, it is a vision to promote and The Curzon station will provide direct routes to major UK cities in record time, Birmingham to London Aston Expresy acting as a catalyst for regeneration. facilitate continuing transformation into a world-class city centre. Station 2033 The Eastside and Southside are undergoing the most significant 28 It will further add quality public transport within Birmingham city, including a Birmingham to Manchester brand-new and light-rail system called the . regeneration. and Leeds

26 St Paul’s Station Ã1 DIGBETH 5 Characterised by street art and red- housing, Digbeth 6 Jewellery Quarter à Eastside London has , Birmingham has Snowhill -a postmodern development has been dubbed Birmingham’s Shoreditch. à 18 7 5 à à 8 with the largest anticipated office scheme in the UK outside of the capital city. With 3 4 à 5 E 600,000 sq ft of prime office space, blue chip tenants include KPMG, Barclays, BDO, Its convenient location is a huge draw for trendy creatives and savvy business-men 3 11 21 DWF, Gowlings and the headquarters of the largest infrastructure investment in the alike. Just 10 minutes on foot from the city centre, Digbeth is estimated to grow in Snow Hill 24 UK: the HS2. 20 Station 4 popularity as transport routes improve efficiency. 19 à A City Centre Enterprise Zone Sites Major Sites 10 The is Digbeth’s real estate focal point. A refurbished factory that 1 Arena Central houses 101 creative industries bound by art galleries, cafes and dance studios. 6 SOHO WHARF 22 2 Paradise Circus 28 à 7 Soon, however, the regeneration will command the most 3 Snowhill Building 2 A £165 million project to regenerate industrial land into urban living space with public D City Centre Core attention. A £450 million investment aimed to create mixed-use floor space on 2 23 4 Snowhill Building 3 piazzas on the canal front. Soho Wharf promises to take full advantage of the canal 13-acres of prime Digbeth real estate. 5 Post and Mail 13 system surrounding the 12-acre site and provide new homes for over 2000 people. 6 Southern Gateway 12 103 Moor Street 14 7 1 Station SMITHFIELD Birmingham Children’s Hospital 2 New Street 8 à Station The Birmingham Smithfield Regeneration Scheme is 9 7 ST PAUL’S QUARTER C 9 16 1 10 (Phase 2) à a £500 million investment to redevelop the former Westside and à 11 Eastside Locks A £125 million upgrade on almost 100,000 sq ft of commercial, retail and leisure space wholesale market. 15 Digbeth Digbeth wedged between the buzzing Jewellery Quarter and the city centre. The restoration plan 6 12 Typhoo Wharf proposes to create 305 new homes and additional mixed-use space across 20 buildings The plan is to create 3,228,000 sq ft of mixed-use floor space 2 17 à 13 while delicately maintaining the urban grain and historic charm of this heritage site. incorporating cultural and leisure attractions. An iconic feature will be 14 Street a vibrant new market as well as a festival square to capitalise on local Custard Factory Extension events. Furthermore, the plan includes developing more than 2,000 15 homes and 3,000 new jobs. 16 Smithfield Court B à COMMONWEALTH GAMES 2022 17 Connaught Square à The convenient location of Smithfield will allow it to take advantage of Jewellery Quarter the HS2 and the famous Bullring shopping centre, increasing the footfall Birmingham and the West Midlands region are set to host the tenfold and drawing in up-and-coming neighbourhoods from the South 18 St Georges Urban Village Commonwealth Games in 2022. East. The development will take 15 years to complete and is expected to KEY 19 University College Birmingham reach £470 million in local economic output. 20 Newhall Square Growth Area 21 Ludgate Hill Birmingham has secured a £778 million investment and will sell over 1 million tickets Southside and Highgate Wider areas of change 3 JEWELLERY QUARTER A38 Bristol Street Eastside to spectators across the globe. The event is set to bring extensive tourism and à Public open space 27 22 Curzon Park business trade to the entire West Midlands region. 23 City Park Gate Steeped in incredible history, the Jewellery District is a diverse destination and today Rail Aimed to further enhance residential and commercial developments in the area, the home to a bustling food and drink scene. The area continues to enjoy significant local 24 Birmingham City University Rail station Campus regeneration plans will also include upgraded transport links to the city centre and investment and unabated restoration, making it an undeniably attractive place to live and other regions. work in the city. Metro Birmingham Science Park 25 Digital Plaza Proposed Metro extension Venture Way Birmingham’s Jewellery Quarter houses Europe’s largest concentration of businesses 26 HS2 route/terminus involved in the jewellery trade and produces 40% of all the jewellery made in the UK. Other Major Development Site Canal 27 Bristol Street and St Lukes Sources: JLL, Birmingham City Council, One Touch Property Investments 28 12 13 14 15 SUPPLY DEMAND

SUPPLY AND DEMAND MINIMUM NET ADDITIONAL HOUSING UNITS REQUIRED - - The demand for housing in Birmingham is significantly on the rise, with a population growth rate of 0.9% p.a. It is further supported by a growing number of businesses and firms moving to Birmingham for more affordable office space and quality of life for its workers.

The population is forecast to rise to 1.3 million by 2039

89,000 additional units are needed between 2011 and 2031 It is not possible to deliver all of the additional accommodation within the city boundary, so the new supply of housing is expected to expand to the outskirts. Essentially, the city will need over 4,000 additional housing units every year until 2031. Employment growth is 1.1% per annum, more than double the national average of 0.5% RESIDENTIAL DEVELOPMENT PIPELINE 2010 TO 2023 -

NUMBER OF RESIDENTIAL UNITS BEING DEVELOPED IN BIRMINGHAM CITY CENTRE AGAINST THE RISE IN POPULATION -

Residential unit completed Population for Birmingham City Centre

As seen in the graph, Birmingham’s residential development overlain by the rise in population, the outlook for property 2008-2018 Completed Under construction investors is extremely positive. Development activity has grown but annual average simultaneously remained below demand levels for some time, which has created fierce competition for new homes in the city. As seen in the graph the dark blue bar indicates the forecasted This trend is set to continue in large due to the development of the number of units to complete, while the light blue bar indicates the HS2 system. With more Londoners migrating to areas that offer better figure of units actually completed. value for money, the Birmingham City Council is scrambling to provide additional space for this housing. It has objectively assessed that Even though the construction levels have increased significantly over 89,000 additional units are needed between 2011 and 2031. the last few years, only 60-70% of projected completions actually happen on time. This is largely due to a shortage of labour and accessibility to high quality materials.

Source: Birmingham City Concil Sources: Knight Frank Savills, Birmingham Strategic Housing market Assessment, JLL, ONS, Birmingham.gov.uk SALES MARKET RENTAL MARKET

SALES AND RENTAL MARKET YEAR-ON-YEAR HOUSE PRICE GROWTH (JUNE 2020) - -

Despite the increase in construction, Birmingham still faces a supply/ 2.7% UK 2.8% Birmingham demand imbalance. It is forecast that new build values in the city will continue to rise on the back of this imbalance by a projected 21.7% over the next 5 years, outperforming the UK's average. Of all the cities in the UK, Birmingham has one of the highest FIVE-YEAR HOUSE PRICE FORECASTS (SEPTEMBER 2020) retention rates for students. It produces 25,000 graduates - a year from its top 3 universities and retains 49% of them. Birmingham also has the third-highest level of graduates, after London and Manchester, who move to the city without any prior links.

These notable factors contribute to Birmingham having one of the youngest populations in Europe and a highly educated one at that. Combined with the lack of available housing options, a large portion of the population has been forced into the rental HISTORIC HOUSE PRICE GROWTH market. The forecasted rental growth in Birmingham is, as a - result, higher than the UK average.

A GROWING POPULATION -

2020 2039 1.16m Current 1.3m Forecast population population Birmingham

RENTAL PRICES TICK UP -

Strong price growth (31%) has been recorded over the past 5 Average askingrents years, yet Birmingham remains affordable with almost half the Increase in Birmingham affordability ratio of London.

HOUSE 6.5 12.1 10.2 7. 6 PRICE TO Birmingham London Bristol

INCOME increase Percentage RATIO -

Birmingham has outpaced the wider West Midlands Region in terms of average asking rents for many years, seeing a rise of 28% since 2009. For central locations in particular, this steady level of rental growth is forecast to continue over the next decade.

Sources: SHMA, Savills, Deloitte Crane Survey, House Price Index, ONS Sources: LendInvest, Savills, Global property guide, Knight Frank Research, Rightmove, Oxford Economics, Savills Research East & Green is a striking modern development situated in the beating heart of Digbeth's regeneration, just a 5-minute walk from The Custard Factory and Smithfield. The building is comprised of high specification one- and two-bedroom apartments with floor-to-ceiling windows overlooking vistas of the City Centre.

With the new tram stop to the HS2 Curzon Station on its doorstep, East & Green is ideally positioned to attract the growing young demographic moving to Birmingham from London.

20 Computer generated images are intended for illustrative purposes only21 AREA MAP EAST & GREEN

Jewelly Quarter LOCAL AMENITIES

1 The Clean Kilo 4 Highgate Park

2 2 The Custard Factory 5 Flex Fitness Birmingham

3 Convenience Store

7 POINTS OF INTEREST

1 O2 Institute - Music Venue 12 The Ivy 1 5 1 Birmingham 6 6 2 Smithfield Regeneration Site 13 21 2 Snow Hill Station Thinktank Birmingham Science Museum 5 3 Birmingham 14 Harvey Nichols 3 Birmingham Moor Street 12 4 15 Town Hall Birmingham Station Museum & 20 Art Gallery 15 5 TheGarrison Clean Kilo 16 The International Lane Park Convention Centre 18 16 11 4 Birmingham Moor Street Station 6 Birmingham Curzon Street - HS2 Station 17 17 3 Ikon Gallery Birmingham 19 10 7 National Trust - 18 National SEA LIFE Centre New Street Station Birmingham

13 9 The Electric 8 Birmingham 19 14 Cinema 1 O2 Institue 2 The Alexandra Theatre 2 9 20 Arena Birmingham 7 1 Cineworld 10 Birmingham New Street 21 Birmingham Snow Hill Station Station 8 St Andrew’s 11 Piccadilly Arcade Shopping Park

BordesleyUNIVERSTIY 3

Five Ways 3 1 Birmingham City University 4 University of Birmingham 4 5 2 5 Newman University - Birmingham 3 University College Birmingham

4 1 square = approx. 4min. walk 1 Two Snowhill: Gowling WLG, 4 Calthorpe Academy School Ark St Alban’s Academy Quilter Cheviot, BDO LLP and HS2 5 Birmingham Crown Court 4 5 2 One Snowhil: KPMG, Barclays Bank PLC and DWF 6 EY and DLA

Birmingham 3 The Rowton Birmingham Children's Hospital Central Mosque 7

22 23 THE DEVELOPMENT

24 Computer generated images are intended for illustrative purposes only 25 THE DEVELOPMENT

26 Computer generated images are intended for illustrative purposes only 27 THE DEVELOPMENT

Computer generated images are intended for illustrative purposes only 29 THE DEVELOPMENT

30 Computer generated images are intended for illustrative purposes only 31 COMPARABLES MAP

TIMBER YARD

Av. 1 Bed - £208,399 (£469 psf) Av. 2 Bed - £333,161 (£410 psf)

IRON WORKS

Av. 1 Bed - £230,000(£341 psf) Av. 2 Bed - £321,238 (£355 psf) THE AXIUM

Av. 1 Bed - £255,485 (£429 psf) Av. 2 Bed - £310,946 (£418 psf)

APEX LOFTS

Av. 1 Bed - £228,196 (£415.1 psf) Av. 2 Bed - £291,263 (£401 psf) (Excluding duplex units)

EAST AND GREEN

Av. 1 Bed - £210,000 (384psf) Av. 2 Bed - £270,000 (379psf)

KENT STREET RESIDENCES (PHASE 1)

Av. 1 Bed - £204,120 (£422 psf) WESTMINSTER WORKS Av. 2 Bed - £281,143 (£392 psf) Av. 1 Bed - £204,456 (£390 psf) Av. 2 Bed - £265,491 (£370 psf)

For more information, please speak to one of our consultants.

32 33 SPECIFICATIONS DEVELOPER

A development by SPECIFICATIONS -

Internal finishes • White satin finished skirtings • Fine plaster skim coat walls with Dulux Trade Diamond Matt paint • Satin stainless-steel ironmongery Merchant Square Capital is a niche developer focussing on producing high- • Satin anodised aluminium door ironmongery with latch specification apartments at affordable prices. By securing the best land in key growth • Wood effect vinyl plank flooring locations as well as development and contractor deals, the savings are passed on to end buyers. Only a percentage of our developments are sold to satisfy lender • Paint grade flush face solid core doors commitments with the remaining units retained by us, as we truly believe in the investment potential of every project. Bathroom and en-suite fittings Merchant Square Capital is focussed on key market fundamentals for real estate • Minoli Bravestone series grey ceramic floor tiling capital growth and has previously developed in commuter towns where growing • Atlas Concorde Brave Pearl ceramic wall tiling connectivity is forecast to significantly drive up value. • Vanity basin complete with floor standing base unit For our next project, we have identified Birmingham as an area that will exhibit strong • Duravit Durastyle floor mounted WC price and rental growth over the coming years with the new HS2 making Central • Bath fitted with thermostatic bath filler & London reachable in just 45 minutes. The neighbourhood of Digbeth was chosen as the location is a key player in the Birmingham Big City Plan with substantial shower mixer valves and screen infrastructure upgrades underway and quick access to the HS2 Curzon Station. • Electric towel warmer • Silver back polished mirror

Kitchen cabinets and appliances • Ceramic hob and electric oven with easy clean enamel and extractor hood • Integrated LCD touch display fridge/freezer • Integrated A rated energy dish washer with 7 programmes • Sink with satin stainless-steel tap • AAA energy efficiency Washer dryer with 10+7kg wash/dry capacity Harpers House Prime House • Composite quarts work tops Leatherhead, Surrey Leatherhead, Surrey

merchantsquarecapital.com

34 35 DISCLAIMER

Please note: floor plans, prices and images are for information purposes only and are subject to change from time to time. Areas shown are approximate measurements.

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