Mary Parker House Plymouth
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mary parker house Plymouth Prime student housing funding opportunity Location Plymouth is the largest Plymouth is home to over 29,000 students including Plymouth University, the 10th largest Higher Education Institution (HEI) conurbation in the South in the UK. The university incorporates the Peninsula College of Medicine & Dentistry, one of the UK’s highest ranking West of England, situated medical schools. The city benefits from excellent communication links by road, rail and 230 miles from London air. By road, the A38 dual carriageway connects the M5 motorway at Exeter. By rail, there are direct train services to London Paddington and 125 miles from with a fastest journey time of 3 hours 20 minutes. Exeter Airport is located to the north east, with a drive time of approximately Bristol. Plymouth has an 45 minutes. internationally renowned sea port and is also home to the largest operational naval base in Western Europe at HMNB Devonport. Executive Summary New development of 165 en-suite bed spaces with additional facilities Prime, direct let student including reception, cinema room, gym, study rooms, games room accommodation funding and laundry. Practical completion for August 2017. We expect the property opportunity with sound to reach effective full occupancy for the 2017/18 academic year producing a gross income of £1,165,353 and a net income of property fundamentals £864,217 after allowance for operating costs. and underlying demand Student demand is created principally by Plymouth University - the 10th largest Higher Education Institution (HEI) in the UK with over demographics. 20,000 full-time students and one of the UK’s highest ranking medical schools. Located in Plymouth, the largest conurbation in the South West Freehold with a full pack of warranties which are assignable to of England, and home to two Higher Education Institutions (HEIs) the purchaser. in Plymouth University and The University of St Mark & St John, commonly known as Marjon in addition to the Plymouth College We are seeking proposals at a net consideration of £13,000,000 of Art. based on projected 2017/18 net operating income of £864,217 which reflects a net initial yield of 6.27% rising to 6.44% in 2018/19 and Situated in a prominent position at the corner of Apsley Road 6.66% in 2019/20. All figures assume full purchaser’s costs of 6.11%. and Dale Road with a walking distance of 6 minutes to Plymouth Our client is willing to consider a variety of disposal structures and University and Plymouth College of Art. Stamp Duty Land Tax (SDLT) treatments. Situation Barbican Waterfront Plymouth Pavilions - live music & ice rink The property is located Royal Citadel in a prominent position Barbican Leisure Park at the corner of Apsley Plymouth Hoe Road and Dale Road and is strategically located for students: Theatre Royal • Plymouth Railway Station is located 0.4 miles south west. Union Street • The site is located 0.3 miles north of Plymouth University’s campus and Plymouth College of Art, both of which have Drake Circus an approximate walking distance of 6 minutes. Plymouth University Shopping Centre • The city’s main shopping centre, Drake Circus, is located Graduate School of immediately to the south of university campus. Management • Mutley Plain and North Hill are located approximately 2 and 4 minutes’ walk away, both of which form the main student nightlife offer with a number of shops, cafes, bars and restaurants. National Marine Aquarium University of Plymouth Plymouth College Main Campus of Art Armada Way Shopping Centre 6 mins Mutley Plain North Hill Mary Parker House Plymouth Train Station The accommodation comprises 143 en-suite bed spaces, Description arranged in clusters flats of between 3 and 8 bed spaces and 22 Accommodation en-suite studios. We consider room sizes to be generous with en-suite cluster bed spaces from 13 sq m to 18 sq m and studio accommodation between 19 sq m and 24 sq m. The ground floor will comprise generous levels of social space Cluster Medium Cluster Large Cluster Studios including cinema room, gym, study rooms and games room with (14sqm) (16sqm) (17sqm plus) The property is being additional facilities including reception and laundry. Externally, there Ground 23 0 0 5 will be six car parking spaces. developed over First 25 5 3 5 Second 25 5 3 5 ground and 4 upper Third 20 5 4 7 floors totalling 165 Fourth 21 4 0 0 TOTAL 114 19 10 22 high specification bed spaces. The cluster accommodation is arranged as follows: 3 Bed 4 Bed 5 Bed 6 Bed 7 Bed 8 Bed TOTAL 2 1 2 23 1 1 4 33 1 1 4 33 1 4 29 1 1 1 1 25 2 3 4 15 1 1 143 Typical Floorplan Income Gross Rental Tenancy Length 2017/18 Room Type Size No. of Beds Income (98% (weeks) Weekly Rent occupancy) Standard Studio 18-19m2 16 51 £165 £131,947 Premium Studio 20-25m2 4 51 £175 £34,986 Premium Accessible Studio 24m2 2 51 £175 £17,493 3 Bed En-Suite Clusters 14m2 6 43 £154 £38,937 4 Bed En-Suite Clusters 14-16m2 12 43 £154 £77,875 5 Bed En-Suite Clusters 14m2 20 43 £150 £126,420 6 Bed En-Suite Clusters 13-22m2 90 43 £149 £565,097 7 Bed En-Suite Clusters 14m2 7 43 £149 £43,952 8 Bed En-Suite Clusters 14m2 8 43 £144 £48,545 Total Core Income £1,085,253 Summer Income (143 en-suite cluster beds at 50% rent for 7 weeks) £74,820 Ancillary Income (Laundry and vending) £5,280 Total Gross Income £1,165,353 Operating Cost (£1,622 per bed incl. VAT and general management fee) £267,626 CRM Performance Fee (3% of net operating income incl. VAT) £33,510 Net Operating Income £864,217 We expect the property to reach effective full occupancy for the 2017/18 academic year producing a gross income of £1,165,353 and a net income of £864,217 after allowance for operating costs. Net operating income and income returns, as projected by our operating partner, are expected to grow as follows: Net operating YEAR 1 YEAR 2 YEAR 3 Income (2017/18) (2018/19) (2019/20) £918,194 £888,450 £864,217 Net running yield (purchase price of £13,000,000 and 6.11% costs) 6.27% 6.44% 6.66% Plymouth Student Market Plymouth has two Higher Plymouth University is the 10th largest Higher Education Institution (HEI) in the UK. It is a 1992 university that attracted Education Institutions in over 20,000 full-time students in 2014/15. It is currently arranged into four faculties and benefits from a partnership with University Plymouth University and of Exeter to provide medicine and dentistry courses as part of the Plymouth University Peninsula Schools of Medicine and Dentistry The University of St Mark & - one of the UK’s highest ranking medical schools. The University has undergone a process of consolidating its provision into the St John, commonly known centre of Plymouth since gaining university status, although it retains a significant number of campuses and affiliated colleges as Marjon. The city is also across South West England. home to the Plymouth Marjon was established in 1840 and is located on a small, self- contained campus approximately 4.5 miles north east of Plymouth College of Art. City Centre. It offers a range of courses from Foundation Degrees & Progression Courses to Honours Degrees and Postgraduate study. It claims to be the most experienced teacher training provider in the South West. Marjon has recently invested £20 million into its campus and sports facilities. The campus investment has seen a new sports centre, refurbished student housing and a new entrance and student centre. 94% of graduates are either in employment or continuing in higher education 6 months after graduation. Class sizes are small with excellent facilities and social activities provided on campus. Plymouth College Plymouth University Marjon of Art Full-time student population (2014/15) 20,850 1,970 960 International students (2014/15) 2,140 35 45 % International students 10% 2% 5% Change in UCAS applications (2007-2015) 13% 5% 131% UCAS applications: acceptances ratio 5.2 3.8 3.0 Times ranking (2017) 80 105 n/a Developer Maple Grove Developments Maple Grove Developments are wholly owned by Eric Wright Group, a private company involved in construction, commercial property Limited have an established development, civil engineering and house building. Financial accounts to 31 December 2014 indicate a turnover of £161m, joint venture partnership pre-tax profit of £9.6m and net assets of £74m. Both Maple Grove Developments and Yorvale have substantial track record in a variety with Yorvale and are of development schemes and further details can be seen on their websites at www.ericwright.co.uk and www.yorvale.com. currently developing a The joint venture has recently completed its Brickworks, York development number of purpose built comprising 326 beds which was ultimately funded by LetterOne Treasury Services. Eric Wright Group acted as main contractor on this project. students accommodation Plymouth will be the joint venture’s second student accommodation project with other projects in the pipeline. A full experience document schemes throughout the UK. and financial accounts can be provided on request. The Brickworks, York Professional Capital Team Allowances • Main Contractor: Morgan Sindall Capital allowances available by way of separate negotiation. • Architect: Mitchell Architects • Engineer: Case Consultants Our client has assembled • Project Manager / Quantity Surveyor: QSPM an experienced design • M&E Consultant: Amber Management and Engineering Services Warranties team detailed as follows: • Operating Partner: CRM Limited The vendor has a full pack of warranties which are assignable to the purchaser.