Leeds Central Portfolio 132 modern apartments 3 prime, city centre locations 2 I Leeds Central Portfolio Executive Summary • A well established and professionally managed portfolio of 132 modern apartments spread across 9 blocks in 3 central locations • Strong rental demand with the portfolio enjoying consistently high occupancy rate – which is currently at 94% Offers are invited for the • Leeds City Region acts as the regional centre for Yorkshire whole of our clients long and Humber with an economic output of £65.5 billion leasehold interests by and the 3rd fastest growing city centre population in the UK 5:00pm on Tuesday 11th • High tenant retention rate with an average occupancy time of 2.62 years across the portfolio December • Diverse locations with each providing quick access to different elements of the city core • 20 of the apartments are subject to a “covenant-lite” affordable housing s106 agreement • Unit mix of studio, 1 bedroom and 2 bedroom apartments Estimated vacant • Total current income of £864,000 rising to £927,000 on letting possession value of circa of current voids with significant further proven reversion to realise through active management £20 million • Opportunity for short term rental growth through letting of vacant units and reviewing passing rents on let units to ERV 3 I Leeds Central Portfolio Portfolio Analysis Accommodation Income Outgoings Location Total Units Studios 1 bed 2 bed Vacant Passing Rent ERV Service Charge Ground Rent WATERLOO STREET Waterloo Apartments 20 0 14 6 1 £129,000 £142,860 £26,153.2 - Waterloo Court 11 0 10 1 1 £66,780 £78,660 £13,178 £2,763.75 GATEWAY Gateway - North, South, East 45 4 23 18 4 £287,520 £340,920 £53,986.14 £11,030.22 CLARENCE DOCK Crozier House 7 0 2 5 0 £55,080 £59,040 £12,475.94 £1,750 LaSalle House 30 0 19 11 1 £204,600 £227,160 £43,000.97 £7,562.15 Cartier House 18 0 16 2 1 £113,142 £127,302 £21,412.5 £4,537.29 McLintock House 1 0 0 1 0 £8,700 £8,700 £2,064.46 £250.00 132 4 84 44 8 £864,822 £984,642 £172,271 £27,893 Leeds Central Portfolio 4 I Leeds Central Portfolio Portfolio Analysis 3% 31 20% Net Income Location Analysis Net Income 56 Total Gross rent (£665,168.75) Waterloo Street 132 £864,822 Service Charge Gateway (£172,271.21) Leeds Dock 45 77% Ground Rent (£27,893) 4 Reversionary Potential £1,100,000 44 Accommodation Mix Total £825,000 Studio 132 1 bed £550,000 84 2 bed £275,000 ERV Income upon full occupancy Income £0 Rent Passing Leeds Central Portfolio WOODHOUSE 5 I Leeds Central Portfolio MOOR Leeds City Region Location THE UNIVERSITY INNER RING OF LEEDS RO AD Air LEEDS A BECKETT 5 Leeds is serviced by Leeds / Bradford International airport, 9 miles north west 8 UNIVERSITY QUEEN ( SQUARE M EDINBURGH of the city centre. The airport has 4.1 million passengers per annum and flies ARENA ) GLASGOW W NEWCASTLE to 65 domestic and international locations. A flight to London is operated four O LOVELL LEEDS GENERAL O PARK INFIRMARY D times daily by British Airways at a flight time of 1hr and 15 mins. H (LGI) O U S E MERRION HULL L LEEDS HANOVER MILLENNIUM A CENTRE WADE LANE N Rail SQUARE SQUARE E ( A LIVERPOOL MANCHESTER 6 SHEFFIELD Leeds Station is the third busiest British railway station outside of London 6 MERRION STREET MABGATE 0 YORK ROAD (A64) ) CALVERLEY ST CALVERLEY serving 30 million passengers through 17 platforms. The station provides LAW BIRMINGHAM PARK LANE COURTS THE LIGHT ST JOHN’S routes to major UK commercial centres with a journey time of 48 minutes to VICAR LANE WESTGATE CENTRE BRISTOL Manchester Piccadilly and 2 hours 15 to London King’s Cross. The station has THE HEADROW LONDON PARK THE EASTGATE recently undergone a thorough refurbishment programme with the opening SQUARE CORE THE (A58(M) GREEK ST ARCADES VICTORIA LEEDS ST PETER’S ST (A61) of the £20 million south entrance in January 2017. ALBION STREET PENZANCE LANDS LANE EAST PARADE BOND ST LEEDS CITY MAJOR UK ROAD LIKS PARK ROW BRIGGATE KIRKGATE HS2 COMMERCIAL ST MAJOR UK RAIL LINKS KIRKGATE MARKETS BUS VICAR LANE COACH STATION High Speed 2 is a planned high speed railway system that will connect CITY TRINITY YORK STREET DUKE’S ST (A61) KING ST SQUARE LEEDS YORK STREET all major UK commercial centres. The £56 billion infrastructure project WELLINGTON ST CORN BOAR LANE EXCHANGE will create a journey time of 1 hour and 21 minutes between Leeds andTOWER AIRE ST SQUARE London Kings Cross and 46 minutes between Leeds and Birmingham. It is The Gateway NEW STATION ST THE CALLS anticipated to add over £7.6 billion to the Leeds economy. WELLINGTON WHITEHALL RD LS9 8AU PLACE THE CALLS LEEDS LEEDS STATION BRIDGE SOVEREIGN BREWERY FEARNS Road SQUARE CROWN WHARF GRANARY WHARF POINT BRIDGE Leeds benefits from excellent road connectivity and is situated 5 miles north WHARF BRIDGE NEVILLE STREET END KNIGHT’S WAY A61 VICTORIA RIVER AIRE of the M62 which provides access to Manchester and Liverpool to the west. BRIDGE BRIDGE CANAL RIVER AIRE WHARF The M1 is to the south east of the city centre providing quick access to the GLOBE RD Waterloo Street country’s motorway system and going directly to London, 195 miles south WATER LANE LS10 1JA GREAT WILSON STREET (A61) ROSE of the city. CROWN POINT ROAD WHARF BLACK BULL STREET Leeds Dock LS10 1LQ Leeds Central Portfolio 6 I Leeds Central Portfolio Market Commentary Leeds City Region The Leeds city region economy is worth over £65.5 billion and is the largest outside of London, providing over 5% of the nation’s output. Leeds is the largest producer in the city region with an output of £18.5 billion and the city has experienced the highest rate of private sector job growth in the past decade nationwide. Leeds hosts the UK headquarters for Asda, Capita and Sky plc with Channel 4 announcing in November 2018 that they will be creating their new regional HQ in the city. First Direct, HSBC, DLA Piper and all “Big 4” accounting firms have a signficant presence in Leeds and the Leeds city region has the highest private sector to public sector job ratio of all UK core cities. Leeds city has a population of 784,000, a figure that is projected to grow 6% by 2026. The city is home to over 60,000 students across 8 higher education institutions including Russell Group members the University of Leeds. Leeds has the highest net inflow of students of any regional city and a high graduate retention rate of over 40% – contributing to a workforce where 34 % of the population have higher education qualifications. The strong economy of Leeds and the opportunities it offers is a huge draw and 42% of the workforce did not grow up or study in the city. 25% of the Leeds city population is aged between 20-34, with younger demographics being attracted to the city’s professional opportunities, high standard of living and vibrant culture. With a burgeoning young professional population and average first-time buyer age of 29, the Leeds rental market has high demand for good quality, professionally managed city centre residential stock, as exemplified by the high occupancy level short letting voids and tenant retention rate of this portfolio. Leeds Central Portfolio 7 I Leeds Central Portfolio Vacant Possession Values The Leeds Central Portfolio contains apartments in locations in Leeds that are in high demand by both renters and home buyers alike. Using Land Registry data we have compiled a list of transactions from the last two years, within the various blocks that form part of the portfolio. The data set out below evidences strong investor and owner occupier demand and will lead to the portfolio value being at a substantial discount to vacant possession value. Our estimate of the Vacant Possession value is in the region of £20 million reflecting a Capital Value of £273 psf. Waterloo Street Gateway Date Address Sold Price Sold Price (psf) Size sq. ft. Date Address Sold Price Sold Price (psf) Size sq. ft. Apartment 42, Aug-18 318 Gateway East £176,000 £240 732 Jan-18 £125,000 £305 409 Waterloo Court Jun-18 505 Gateway East £160,000 £228 700 Dec-17 51 Waterloo Apartments £215,000 £285 753 Jun-18 207 Gateway West £125,000 £178 700 Oct-17 53 Waterloo Apartments £180,000 £371 484 Apr-18 1102 Gateway East £170,000 £250 678 Sep-17 57 Waterloo Apartments £150,000 £331 452 Mar-18 411 Gateway North £180,000 £249 721 Aug-17 25 Waterloo Apartments £186,000 £257 721 Mar-18 610 Gateway North £150,000 £199 753 Nov-16 47 Waterloo Apartments £173,600 £268 646 Mar-18 115 Gateway West £170,000 £242 700 Apartment 52, March-16 £130,000 £287 452 Mar-18 1002 Gateway East £190,000 £235 807 Waterloo Court Mar-18 802 Gateway East £165,000 £243 678 AVERAGE £304 Mar-18 1201 Gateway North £203,000 £273 743 Mar-18 813 Gateway East £155,000 £257 603 Mar-18 115 Gateway West £170,000 £242 700 Mar-18 217 Gateway East £125,000 £181 689 Mar-18 1302 Gateway North £210,000 £267 786 Jan-18 715 Gateway East £190,000 £271 700 Jan-18 116 Gateway West £177,500 £253 700 Nov-17 506 Gateway West £120,000 £272 441 Sep-17 509 Gateway West £120,000 £253 474 Aug-17 904 Gateway West £230,000 £309 743 AVERAGE £245 Leeds Central Portfolio 8 I Leeds Central Portfolio Vacant Possession Values (Cont) Leeds Dock Date Address Price Price psf Size sq.