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RARE INVESTMENT OPPORTUNITY TO ACQUIRE TWO DIRECT-LET STUDENT BLOCKS IN MANCHESTER INVESTMENT The total gross income will be £994,180 per annum SUMMARY from September 2016 A rare opportunity to acquire two freehold direct-let student blocks in Manchester City Edge ...is located in close proximity to The occupational market for student Piccadilly Station and Manchester accommodation within Manchester is Metropolitan University well established and growing with a substantial lack of purpose built stock Manchester is a first-class student destination £10,800,000 with over 100,000 students across three major universities We are instructed to seek offers in 108 beds in Moss Court with excess of £10,800,000 (Ten Million September 2016 rents to average Eight Hundred Thousand Pounds) £112 per week. 69 beds at City Edge subject to contract and exclusive with September 2016 rents to average of VAT £120 per week. Moss Court ...is located in close proximity 8.95% to Oxford Road, a thriving student 100% An offer at this level reflects an location close to the University attractive gross yield of 8.95% and of Manchester Both blocks are 100% let and have a net yield of 6.56% based on strong historic occupation levels September 2016 rents. Rd t am S ldh lk O i S t el S ap Ch Chapel St G re at A Old Mill St Salford nc 6 MANCHESTER oa 6 Central t s 0 St 5 y A 2 a 66 W A y it in r T Deansgate Store St A34 Regent Rd Piccadilly Station A6 F airfield St A 6 Ashton Old Rd 5 3 North 6 B6469 Campus A KEY LOCATIONS n L Deansgate Oxford Rd City Edge ll 56 a A s rd O M a 5 ncunian Wa 6 y A 6 5 A57 3 6 A (M) 4 A 7 MMU 6 Hyde Rd 0 Points of interest 5 A d R r e t University of Manchester d A6 s 067 e 5 R A UoM h s Manchester Metropolitan University C s e c n i Manchester Metropolitan University r P 8 Oxford Rd 1 University Campus 2 A5184 5 B Manchester Royal Infirmary 02 Apollo Deansgate Locks Anson Rd Manchester Central Moss Court China Town M os s L East Piccadilly Gardens n Castlefield Northern Quarter Printworks MOSS COURT APARTMENTS 0 A601 LOCATION MOSS COURT G Superb student location within a short walking distance of the University of Manchester Campus and the Royal Manchester Children’s Hospital. G Abundance of local amenity with Lidl, Superdrug, Morrisons Local, Tesco, Poundland and Subway all within a 5 minute walk. G Extremely well connected and benefiting from one of Europe’s busiest bus routes situated along Oxford Road just 200m from the property. G Bus services to the City Centre take approximately 20 minutes and this is soon to improve following the completion of the planned bus improvement works to Oxford Road. G Oxford Road Train Station is easily accessible by public transport and links with Manchester Piccadilly Train Station to the east. MOSS COURT APARTMENTS DESCRIPTION MOSS COURT Moss Court was built in 2009 and is a modern 4 storey student accommodation block comprising 28 cluster flats ranging between 2 and 4 beds, providing a total of 108 beds. The cluster flats provide large double bedrooms, two/three shared bathrooms and a common kitchen and living area which is fitted to a high standard with all white goods including washing machines. Both buildings have car parking facilities to the rear and provide a £578,640 high speed broadband connection to all rooms. 108 beds per annum* EPC Each cluster flat has an individual EPC assessment with the ratings in total ranging between categories B and C. All EPCs are available on request. *The anticipated gross rents from September 2016 T B h 5 e 1 B 1 o 7 u le v a rd LOCATION MOSS COURT Acomb St Acomb Burleigh St Burleigh O x f o Denmark Rd r d R d Whitworth Park Moss Court B5219 Moss Ln East Parkfield St Heald Place Heald Grove Playfair St MOSS COURT APARTMENTS MOSS COURT APARTMENTS MOSS COURT APARTMENTS MOSS COURT APARTMENTS ACCOMMODATION MOSS COURT Moss Court provides 108 student rooms within 28 x 2, 3 and 4 bedroom apartments. The accommodation split is as follows: APARTMENT TYPE FLATS BEDROOMS 2 BEDS 1 2 3 BEDS 2 6 4 BEDS 25 100 TOTAL 28 108 SUMMARY SPECIFICATION G Electric panel heaters. G Shared fully fitted contemporary kitchens incorporating; electric fan oven, electric ceramic hob, extractor fan, microwave, washing machine and fridge/freezer unit. G Shared bathroom facilities within each apartment incorporating; a bath/shower, toilet and washbasin. G Fully furnished bedrooms including; desk, office chair, blend of ¾ size and double beds, bedside table, chest of drawers and wardrobe. G Each apartment has its own electric boiler. G 27 secure surface level car parking spaces. CITY EDGE APARTMENTS LOCATION CITY EDGE G Excellent location approximately 0.5 miles from Oxford Road, The University of Manchester’s Campus and The Royal Northern College of Music. G No shortage of nearby amenity with Starbucks, Costa, Tesco and the Student Union all located along the Oxford Road corridor. G Manchester City Centre is just a 10 minute walk north of the property along the A6, which forms one of the main arterial routes serving the city centre. G Well connected to Manchester City Centre and Piccadilly Train Station via numerous bus links close to the property. G Nearby leisure offerings include the Manchester Aquatics Centre, Sugden Sports Centre and The 02 Apollo which forms one of Manchester’s most established music venues. CITY EDGE APARTMENTS DESCRIPTION 69 beds CITY EDGE in total City Edge was built in 2007 and comprises three separate buildings arranged over 2 to 4 stories which provide a total of 21 modern student cluster flats ranging between 3 and 4 beds, providing a total of 69 beds. The flats provide large double rooms which are fully furnished. The communal kitchen / living areas comprise new kitchens and are fitted to a high standard with all white goods and there are a number of shared bathrooms within each flat. Both buildings have car parking facilities to the rear and provide a high speed £397,440 broadband connection to all rooms. per annum* EPC Each cluster flat has an individual EPC assessment with the ratings ranging between categories C and D. All EPCs are available on request. *The anticipated gross rents from September 2016 CITY EDGE APARTMENTS A 6 M a nc un ia A n 6 W ay A 57 (M ) Lockton Close Bond St LOCATION Wadeson Rd CITY EDGE ce A635 A Pla lton Cakebread St r ar d Ch Paddock St w i c k t S G r r o e e an n M S N Hanworth Close wick Green Ard Deanwater Close Kale St City Edge Thirsk St Skerry Close Hamsell Rd CITY EDGE APARTMENTS CITY EDGE APARTMENTS CITY EDGE APARTMENTS ACCOMMODATION CITY EDGE City Edge provides 69 student rooms in 21 x 3 and 4 bedroom apartments across three self-contained purpose built residential blocks. The accommodation split is as follows: APARTMENT TYPE FLATS BEDROOMS 3 BEDS 15 45 4 BEDS 6 24 TOTAL 21 69 SUMMARY SPECIFICATION G Electric panel heaters. G Shared fully fitted contemporary kitchens comprising; electric fan oven, electric ceramic hob, extractor fan, microwave, washing machine and built in fridge freezer unit. G Shared bathroom facilities within each apartment incorporating; a shower, toilet and washbasin. G Fully furnished bedrooms including; desk, office chair, blend of ¾ size and double beds, bedside table, chest of drawers and wardrobes. G Video intercom system. G Each apartment has its own electric boiler. G 20 secure surface level car parking spaces. TENURE TENANCY & OCCUPATION We are instructed to sell the Freehold interests of both assets. Both Moss Court and City Edge are 100% let and have strong historic occupancy levels. The flats are let on an ‘all inclusive’ basis which includes water, electricity and broadband. G Moss Court currently provides a gross income of £509,904 per annum. The units are all let on 48 week contracts with the average rent reflected at £98 per week. G City Edge currently provides a Gross Income of £363,360 per annum. The units are all let on 48 week contracts running from 1st September to 31st July with the average rent reflected at £110 per week. G Lettings for the 2016/17 academic year have commenced. The rents being achieved have grown with bookings at Moss Court reflected at around £112 per week and at City Edge £120 per week. The anticipated gross rents from September 2016 are therefore £578,640 per annum and £397,440 per annum for Moss Court and City Edge respectively and £976,080 per annum combined. The properties also generated a further £18,150 in booking fees for the 2015/16 academic year. We can provide detailed tenancy schedules and rental/booking evidence upon request. G The vendor’s total operating costs including management are approximately £1,500 per bed (27.5% of gross rental income). The vendor offers to continue managing the assets in the short to medium term if this is required. Further details can be provided. G Based on the above the net income for the 2016/17 academic year will be £728,730 per annum. The vendor will underwrite this net income for 2016/17. STUDENT ACCOMMODATION MARKET Investors, who are increasingly global, now see purpose built student residential as a mainstream ‘Alternative’ asset class, with a strong demand base and the ability to generate steady long term income streams.