BERNARD MYERS HOUSE 4-6 HAVIL STREET | LONDON | SE5 7RU Building exterior INVESTMENT CONSIDERATIONS ￭ Freehold student accommodation property constructed in 2006. 121 en-suite rooms arranged predominantly as 6 bedroom cluster flats and 2 accessible studios. ￭ The property benefits from a nominations agreement with University of the Arts London for a further 18 years, subject to a mutual break at the end of the 2015/16 academic year. The agreement is for at least 97% of bedrooms. ￭ The asset is under-pinned by direct let rents which would be in the order of 15% higher than those currently passing under the nomination agreement. ￭ Located within close proximity to Kings College London and University of the Arts London campuses and a range of transport links. ￭ Planning permission for student accommodation in London Borough of Southwark remains challenging to secure which insulates values, drives rental growth and creates barriers to entry to the sector. ￭ Rare opportunity for representation in London, which, with a total of 41 universities, forms the largest concentration of higher education in Europe. ￭ Within London, only 62,351 (21%) students have access to purpose built student accommodation. There are 303,105 full time students in London (HESA 11/12). ￭ London is home to four of the world’s leading 75 institutions: University College London (4th), Imperial College London (5th), King College London (19th) and London School of Economics and Political Science (68th). (2013/14 QS World University Ranking). ￭ Forecast gross rent of £924,405 for the 2013/14 academic year and net rent of £715,305. ￭ We are instructed to seek offers in excess of £10,800,000 for the freehold interest in the Property, which reflects a net initial yield of 6.25% assuming purchaser’s costs of 5.80%. Typical Kitchen LOCATION SITUATION London is the capital city of the United Kingdom, with excellent inter-city and international travel links. The Bernard Myers House is situated in Zone 2, within the London Borough of Southwark, south east London. The M25, which encircles the city, connects directly to routes to the North (M1, M11, M40), West (M4), South (M3, property is located on Harris Street, a predominantly residential street, with Southwark College to the north. M23) and East (M2, M20) of the country. The city is supported by eight main railway stations including Kings Cross St Pancras, which connects directly to mainland Europe via the Eurostar network. The property is well situated for a number of universities, including the University of the Arts London (Camberwell College of Arts & College of Communication), King’s College London (Denmark Hill Campus) The city is supported by several major international airports including Heathrow (17 miles), Gatwick (30 miles) and London Southbank University. and Stansted (37 miles). All are easily accessible via public transport, namely coach services and express train The nearest underground station to Bernard Myers House is Oval (Northern Line), which lies 1.4 miles (20 min routes. Heathrow is also linked directly to the London underground network via the Piccadilly Line (journey walk) to the west, whilst Denmark Hill Overground Station is a 15 minute walk to the south. time from Oval Underground Station approximately 66 minutes). The Property is also serviced by several bus routes; the 343 runs directly past the site, providing access up to London is the largest metropolitan area in the European Union and in demographic terms its population rate Elephant and Castle and on to New Cross; the 12 runs directly to Oxford Circus Station and the 36 to Hyde increased from 7,172,091 to 8,173,900 between 2001 and 2011; an increase of 14%. During this period the Park and Paddington Station (Source: Transport for London). population of Southwark increased from 244,861 to 288,300; an increase of 17.7%. London is expected to remain at the forefront of the UK recovery given its concentration of service sectors companies. Growth output in London (nominal GVA) 2007 – 2011 was 12.40%, far out-stripping other UK ELEPHANT & CASTLE REGENERATION regions. In labour market terms, 374,000 jobs created in the UK between 2013 and 2018 are forecast to be Elephant & Castle is currently undergoing a major 15-year physical regeneration programme, led by within London, which equates to approximately 1 in every 4 jobs (ONS). Southwark Council and its commercial partner Lend Lease. The master-planned redevelopment is budgeted at £3 billion and covers 170 acres. A large amount of post World War II social housing is to be demolished, including the Heygate Estate, to make way for up to 2,988 new homes (over 600 of which will be affordable). On top of this, developments in Elephant & Castle will deliver: ￭ 7,000 new jobs (created on site construction and in new commercial space). ￭ Over £2.5 million invested in local employment and training. ￭ Central London’s largest new park in 70 years with a minimum area of 2 acres. ￭ Up to 50,000 sq ft of community space for uses such as a crèche, art gallery, museum, Council Chambers, library, community meeting rooms and provision for a new health facility of up to 5,000 sq ft. ￭ Up to 50,000 sq ft of leisure facilities for uses such as a gym, music hall and cinema. ￭ Retail floorspace including over 50 new shops. ￭ 50,000 sq ft of office and workspace. ￭ £2.6 million towards local transport improvements for pedestrians, cyclists and motorists. Typical Kitchen 91 95 Valan House 105 TRAVEL TIMES 147 1 DISTANCE/METHOD 13 117 2 LOCAL UNIVERSITIES PH AND JOURNEY TIME od rho hbou University of the Arts g ng ei si University of the Arts KCL London KCL N ou (College of H ce (Camberwell College) (Denmark Hill) South Bank (Guy’s Campus) ffi O 2.6m Communication) Distance (miles) 0.4 miles 1.1 miles 1.5 miles 1.7 miles 2.2 miles 127 33 131 LB 133 135 18 minutes 29 minutes HAR Walking / Bus 7 minutes 16 minutes 16 minutes (bus) (bus) (bus) R I 2.8m S 156 S 15 6a T 160 R EET Cycling 2 minutes 6 minutes 13 minutes 14 minutes 15 minutes PO Source: Transport for London (TFL) Southwark College Camberwell Centre ESS FROM OVAL FROM DENMARK HILL o 22 JOURNEY TIME (MINUTES) JOURNEY TIME 1 t UNDERGROUND STATION TO: OVERGROUND STATION TO: s House d Myer Bernar Play 4 to 6 Area Waterloo 6 minutes Clapham High Street 4 minutes El Sub Sta 16 6 Elephant & Castle 8 minutes Wandsworth Road 6 minutes W o 24 ard 1 t se St ou 7 H 1 ll acy Bdy Rumba C 19 oleby 1 to London Bridge 11 minutes Clapham Junction 14 minutes Path ouse P Rill H a 28 12 th 24 14 Embankment 19 minutes Canada Water 12 minutes 29 13 Close allow B 24 7 1 18 12 6 Piccadilly Circus 19 minutes Shoreditch High Street 24 minutes 19 13 32 16 157 Oxford Circus 21 minutes Hoxton 24 minutes FW 46 30 44 28 14 Bank 22 minutes Stratford 33 minutes 12 12 6 AD RO TON ING ELM 165 Victoria 23 minutes Highbury & Islington 36 minutes 1 2.6m 68 160 1 Paddington 30 minutes Camden Town 49 minutes Not to scale - For indicative purposes only 70 Source: Transport For London (TFL) 1 158 173 156 1 52 1 0m 42 10m 20m 30m 11 9 Ordnance Survey © Crown Copyright 2013. All rights reserved. Licence number 100022432. Plotted Scale - 1:1052 TRAVEL TIMES ACCOMMODATION SCHEDULE DISTANCE/METHOD LOCAL UNIVERSITIES ROOM TYPE NUMBER OF BEDS SIZE (M2) BED SIZE AND JOURNEY TIME DESCRIPTION Bernard Myers House is a 2006 purpose built student accommodation block of part 3, 4 and 5 storeys. The University of the Arts scheme provides 123 en-suite bedrooms: 121 cluster bedrooms arranged predominantly as 5 bedroom flats University of the Arts KCL London KCL (College of and 2 accessible self contained studio units. All rooms include a 4ft bed, en-suite bathroom, desk, wardrobe (Camberwell College) (Denmark Hill) South Bank (Guy’s Campus) Classic Studio 2 20 ¾ Communication) and storage facilities. Each room has a data point for a wired internet service. Each flat benefits from a shared kitchen and lounge area. Distance (miles) 0.4 miles 1.1 miles 1.5 miles 1.7 miles 2.2 miles The ancillary facilities on-site include; management office, laundry and vending machines. The Property is Classic En-suite 121 12.5 ¾ secured by gated entrances, digital CCTV coverage as well as out of hours duty manager cover. There is a 18 minutes 29 minutes Walking / Bus 7 minutes 16 minutes 16 minutes (bus) cycle store for 44 bicycles. (bus) (bus) Total 123 Cycling 2 minutes 6 minutes 13 minutes 14 minutes 15 minutes Source: Transport for London (TFL) FROM OVAL FROM DENMARK HILL FLOOR PLANS JOURNEY TIME (MINUTES) JOURNEY TIME UNDERGROUND STATION TO: OVERGROUND STATION TO: Waterloo 6 minutes Clapham High Street 4 minutes Elephant & Castle 8 minutes Wandsworth Road 6 minutes London Bridge 11 minutes Clapham Junction 14 minutes Embankment 19 minutes Canada Water 12 minutes Piccadilly Circus 19 minutes Shoreditch High Street 24 minutes Oxford Circus 21 minutes Hoxton 24 minutes GROUND FLOOR PLAN Not to scale - For indicative purposes only Bank 22 minutes Stratford 33 minutes Victoria 23 minutes Highbury & Islington 36 minutes Paddington 30 minutes Camden Town 49 minutes Source: Transport For London (TFL) Building Exterior Building Exterior LONDON STUDENT MARKET The capital has experienced significant growth in student numbers over the past 10 years recording a full time With a total of 41 universities, London has the largest concentration of higher education in Europe.