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

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S t el S ap Ch Chapel St G re at A Old Mill St Salford nc 6 Central MANCHESTER oa 6 ts 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

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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

Acomb St MOSS COURT Burleigh St

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x f Denmark Rd o r d

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Whitworth Park

Moss Court

Moss Ln East B5219 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 LOCATION

A 6 CITY EDGE Ma ncunian Way A Bond St 57(M)

A 6 A635

Paddock St

Lockton Close t Cakebread St S

r o e lac an P M n lto ar h C

A r Wadeson Rd d w i ck N G en re e e Gr Thirsk St n ck S wi rd A

City Edge

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Deanwater Close Hamsell Rd

Skerry Close 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. This is highlighted by the amount of capital being deployed in this sector. Investor appetite for prime student residential property has been driven by the following key factors:

G Sustained rental growth G Yield compression G Minimal voids G Strong international student numbers G Attractive income security MANCHESTER HIGHER EDUCATION

Manchester’s vast student population reflects Manchester’s popularity as a first-class student destination. With currently over 100,000 students across its three main universities; Manchester University, Manchester Metropolitan University and the University of Salford, the city region has one of the largest student populations in Europe. In addition to the three universities in the city region there Over 100,000 are a further 19 universities and higher education institutions in the North West, taking the region’s student population to approximately 515,000. Students Manchester Metropolitan Universityis one of the largest universities in the UK, attracting over 38,000 students based across two campuses. The university welcomes over 3,000 international students each year from over 120 countries. The University of Manchester is the largest single-site university in the UK and has 40,000+ students registered at the university. Over 28,000 are undergraduates, and more than 11,000 are postgraduates and the University has a population of 8,000 international students representing 180 countries. PROPOSAL

We are instructed to seek offers in excess of £10,800,000 (Ten Million Eight Hundred Thousand Pounds). Based on September 2016 projected rental income a purchase at this level reflects an attractive gross yield of 8.95% and a net yield of 6.56% based on the existing running costs of £1,500 per bed.

Assuming a 10 year hold we expect the investment to generate an attractive ungeared IRR in the region of 10%. We have assumed stamp duty on the purchase price of 1% based on the application of Multiple Dwelling Relief. Any interested parties should satisfy themselves of the SDLT payable. CONTACT For further information please contact:

3 Hardman Street T +44 (0)161 228 6411 Spinningfields F +44 (0)161 228 7354 Manchester M3 3HF www.lsh.co.uk

NICK MULLINS IAN SCOTT [email protected] [email protected] T 0161 242 7062 T 0161 242 7070 M 07720 498 083 M 07736 620 897

OnePiccadilly Gardens T +44 (0)161 828 6440 Manchester M1 1RG F +44 (0)161 828 6490 www.jll.co.uk

ROB HOGARTH GEORGE OAKEY [email protected] [email protected] T 0161 238 6253 T 0161 828 6429 M 07814 256 208 M 07525 160 004

IMPORTANT NOTICE Lambert Smith Hampton & JLL gives notice to anyone who may read these particulars as follows: 1.These particulars are prepared for the guidance only of prospective purchasers. They are intended to give a fairoverall description of the property but are not intended to constitute part of an offer or contract. 2. Any information contained herein (whether in the text, plans or photographs) is given in good faith but should not be relied upon as being a statement or representation of fact. 3. Nothing in these particulars shall be deemed to be a statement that the property is in good condition or otherwise nor that any services or facilities are in good working order. 4 The photographs appearing in this brochure show only certain parts and aspects of the property at the time when the photographs were taken. Certain aspects may have changed since the photographs were taken and it should not be assumed that the property remains precisely as displayed in the photographs. Furthermore no assumptions should be made in respect of parts of the property which are not shown in the photographs. 5. Any areas, measurements or distances referred to herein are approximate only. 6. Where there is reference in these particulars to the fact that alterations have been carried out or that a particular use is made of any part of the property this is not intended to be a statement that any necessary planning, building regulations or other consents have been obtained and these matters must be verified by any intending purchaser. 7. Descriptions of a property are inevitably subjective and the descriptions contained herein are used in good faith as an opinion and not by way of statement of fact. Published March 2016, photography taken February 2016.