Student Investment Opportunity

FLATS 1-70 2C ROAD , LE2 1HT

Newly developed student accommodation providing 70 studios in a prime location

Computer Generated Image Investment Considerations • Prime student investment in Leicester • Gross Rent Reserved: £644,538 (2019/20 Academic Year) • New accommodation for Academic Year 2019/20 • Upfront rental payment structure • Comprising 70 self-contained high specification studios • Limited supply of studio accommodation in Leicester • Part conversion and part new build retaining character of a former • We are instructed to invite offers in excess of £7,750,000 high street bank reflecting a gross yield of 8.3% • Conveniently located adjacent to The

Computer Generated Image Location Situation

Leicester is located in the , with a population of approximately 350,000 (mid-2016 estimate). The The Bank is conveniently located for students, situated south of the city centre on St Albans Road. The property city is situated approximately 160 km (100 miles) north of London, 90 km (56 miles) to the east of Birmingham sits on the edge of Victoria Park, a popular destination for students studying at both the University of Leicester and 40 km (25 miles) to the south of Nottingham. It currently has the second largest economy in the East and . The main campus of the University of Leicester can be accessed by tenants of The Midlands. Bank via a short walk through Victoria Park. This convenience will be popular amongst the student demographic. Leicester is at the intersection of two major railway lines—the north/south Midland Main Line and the east/west The University of Leicester’s main campus is within a 5 minute walk of the subject, being only 500m to the Birmingham to London Stansted Cross Country line. There are regular southern services to London with journey south of the property. Importantly residents can also access a full array of amenities by foot including pubs, bars, times averaging 75 minutes and services to Birmingham with journey times averaging 60 minutes. It is also restaurants and shops along London Road which adjoins St Albans Road. There are various bus routes which placed at the confluence of the M1/M69 motorways and the A6/A46 trunk routes. The connectivity of the city is stop on London Road providing good links to the city centre and the surrounding areas. Leicester’s main Train particularly appealing to outside investment. Students can access the city by road and rail with ease. Station is within 800m (0.5 mile) of the subject; a 10 minute walk. Leicester’s global reach was recently boosted by the success of its football team; Leicester City’s famous Premier League title win of 2016 has been a major driver of foreign investment and foreign interest in the city. Higher Education in Leicester

The city is home to two Universities; The University of Leicester and De Montfort University. Both Universities are There are approximately 43,000 students studying in Leicester with both the University of Leicester and De situated on the city fringe, to the south of city centre. Montfort University bringing significant numbers of students to the city every year. It is rare that a city has two well established highly respected university institutions both of which are investing heavily regarded in their facilities.

Leicester Train 10 minutes walk Leicester Station City Centre 5 minutes walk

De Montfort University Leicester Train Station The University of Leicester Subject Property The University of Leicester

The University of Leicester Leicester University was granted University status in 1957. According to the Higher Education Statistics Authority (HESA), latest figures show the University has approximately 17,410 registered students.

The University has increased its undergraduate enrolments more than any other since the introduction of £9,000 tuition fees. A further 13% rise in 2016 enabled it to accept more than 4,000 new undergraduates in a single intake.

Leicester is ranked 34th in the 2019 Times Good University Guide. There has been a recent focus on improving the student experience, with a new student app, peer mentoring and the filming of lectures. These improvements have seen the University awarded silver from the Teaching Excellence Framework (TEF) panel.

The undergraduate population is among the most socially diverse of any university within the Times Guide top 25. Competition for places is high, with 7.1 applications per place recorded in 2018/19.

De Montfort University

De Montfort University was granted University status in 1992 so it is a relatively new higher education institution. According to the Higher Education Statistics Authority (HESA), latest figures show that the University has approximately 25,695 registered students.

De Montfort has recently invested £136m improving campus facilities and is currently ranked 67th in the 2019 Times Good University Guide.

The University has gained high praise from the TEF, receiving a gold award for “delivering consistently outstanding teaching, learning and outcomes for its students. It is of the highest quality found in the Subject Property UK.”

De Montfort has recently gained recognition for graduate employment with the university creating important ties with national businesses based in the area.

Approximately 93% of students study full-time at the university. Application numbers continue to rise despite other some other universities suffering a decline. For indicative purposes only Tenure

The property is held Freehold.

Description

The Bank comprises the redevelopment of a former high street bank and accompanying site to provide a predominantly new build student accommodation block. In total the property provides 70 self-contained studio apartments over ground, a mezzanine level, and three upper floors (for the most part).

There are five different types of studio, depending on varying size and position within the building; Executive Bronze, Silver, Gold, Platinum and Superior. A full breakdown is available to view/ download from the dedicated website.

Income

The Bank will be operated on a direct let basis. It is now fully booked for the 2019/2020 Academic Year with a waiting list of unsuccessful applicants. This highlights the quality of the development but also the lack of studio accommodation and subsequent demand in Leicester.

Rent secured for the 2019/2020 Academic Year surpassed income projections, totalling £644,538. The gross rental annual income will be paid to the buyer (subject to apportionments) upon completion as this has been paid by students on an upfront basis.

Operating Budget

We have quoted the gross income rather than a projected net income on the assumption that buyers will appoint their own operator.

We have provided a proposed operating budget in the data-room but accept this will differ between parties. The budget has been prepared on the basis of current operating costs within existing student properties managed by the vendor. The vendor will retain management of the property if this is preferable to the buyer. VAT

The property is not elected for VAT. St Albans Road Energy Performance Certificates Leicester, LE2 1GF

EPCs can be downloaded / viewed on the dedicated website.

Viewing Information

The property will be subject to block viewing arrangements and will not be available for viewing internally outside of these times. Please contact the office to register your interest. Proposal The Opportunity We are instructed to invite Leicester has a growing student population with both institutions reporting healthy intake offers in excess of £7,750,000 and further expansion plans. The city expects student numbers to continue to grow with reflecting a gross yield of 8.3% applications rising year on year.

Our client has recognised the popularity of the limited number of student studios available The property is held within a to rent in Leicester with the vast majority of current developments offering cluster clean SPV therefore a corporate accommodation. We understand from UCAS the University of Leicester alone this year deal structure is possible if this received in excess of 2,000 applications from foreign students therefore demand for studio is preferable. The vendor will accommodation is strong. consider the sale of either the With rent payments made upfront by the students, the opportunity benefits from secure rental asset of the SPV. income for the forthcoming Academic year.

This is an opportunity to acquire a new student investment asset with secured income for Further information is available the forthcoming Academic Year. The buyer will benefit from the assignment of all warranties at: www.thebankleicester.co.uk and guarantees. The property is already receiving enquiries from students for Academic Year 2020/21 emphasising its popularity amongst the student demographic Contacts

For further information or to arrange a viewing, please contact:

Anthony Hart Jack Robson William Shoebotham 0113 243 7950 0113 243 7952 020 7344 2659 [email protected] [email protected] [email protected]

Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective allsop.co.uk purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. March 2018