London Student Accomodation
Embed Size (px)
Transcript of London Student Accomodation
-
8/2/2019 London Student Accomodation
1/12
Invest In Recession Proof, High Quality StudentAccommodaon In Historic Greenwich London
oering Long Term High Rental Returns
Just 48 Luxurious, Bouque, Fully Furnished, En-suite Student Studios in Desirable
and Historic Greenwich, South East London
Massive 9% NET Rental Returns, 1st Year Rental Assured
Now Studios with Integrated Kitchen Facilies
A fully Managed And Hands-O Investment
London is Rated By Knight Frank As The Best Place In The UK For Student Investment
Walking distance to Greenwich University and Two Other Higher Educaon Centres
Huge Shortage Of Good Quality Student Accommodaon in The Area
Experienced Management Company In Place
The underlying market fundamentals are posive, with supply restricted and strong demand
underpinning rental growth. Knight Frank Student Report, 2011
Just
82
,700
Canary Wharf
Greenwich
Studios WithMassive
9%NET Yields
-
8/2/2019 London Student Accomodation
2/12
Contents
Investment Summary 3
The Development 4
The Locaon of the Development 6
Financials
8
The Buying Process 9
How To Reserve 10
FAQs
11
-
8/2/2019 London Student Accomodation
3/12
Investment Summary
Page 3
A Recession Proof Investment
There is a widespread dierence of opinion regarding what will
happen in the residenal and commercial property market rightnow in the UK. But one thing that few experts disagree on is the
potenal for both capital growth and surety of high rentals that
comes with well located student accommodaon in key cies
with presgious universies. Furthermore as always happens in
me of nancial downturns and higher unemployment, student
numbers always increase, providing you with a recession-proof
investment.
A Stable And High Yielding Investment
Over the past 6 years, rents in this sector have increased at 5%
per year, in contrast to 0.6% for the commercial market as a
whole and the occupancy rates for student accommodaon cur-
rently sit between 97% - 100%. Also compared to residenal
tenants who only sign up for on 6 month contracts students
are oen required to rent for a full year.
This provides incredible stability that is very hard to achieve in the global economic climate and
which has made this opportunity so popular with both UK and overseas investors.
A Passive Income And Turnkey Investment
Most property investment is rarely as passive or hands o as we would like. However, by work-
ing with a very experienced and established management company that specialises in the stu-
dent accommodaon market, this investment provides you with that true armchair invest-
ment where you can sit back, relax and see your regular monthly income hit your bank account.
Please contact our experienced team on the details below if you have any quesons regard-
ing this excellent investment opportunity, as we only have a very limited number of units
available.
Knight Franks View On Student Accommodaon In London
With 291,000 full-me students enrolled across 40 Higher Educaon Instuons (HEI), London
clearly remains a hub of student acvity and connues to occupy the top posion for student
investment. It boasts a large proporon of both postgraduates and internaonal students, yet
only 15.4% of its students are housed in university -owned accommodaon. Knight Frank con-
siders that London needs a further 100,000 student bedrooms providing transport-accessible,
value accommodaon in the 150-200 per week price range.
Knight Frank 2011 Student Research Report (Copies freely available upon request)
SourceKnight Frank Student Report
-
8/2/2019 London Student Accomodation
4/12
The Development (part 1)
Page 4
Answering the growing demand for high quality student accommodaon
There is currently a massive shortage of some 100,000 student rooms across London and in par-
cularly in central locaons. For the discerning UK and overseas student, this bouque develop-
ment, comprising of just 48 en-suite student studios will oer a luxury accommodaon opon
and a fresh alternave to large, overcrowded old halls of residences and private housing in the
area.
Communal living areas and kitchens will be spacious and of a modern, contemporary design with
large at screens televisions and all bathrooms ed to a high standard in line with achieving
100% occupancy rates consistently, year on year. There will also be a fully ed gym, which will
be free of charge for students.
The development is located on Bexley Road which is just across from the Avery Hill campus and
within walking distance of two of the most presgious further educaon centres for the Arts,
Drama and Dance: Bird College and Rose Bruford College. Unique 51 week tenancies will be
available which will ensure long term rentals and provide investors with consistent rental income
for the future.
-
8/2/2019 London Student Accomodation
5/12
The Development (part 2)
Page 5
High spec with superb
facilies
The building will compriseof four oors with the gym
being located in the ground
oor.
Only the highest quality x-
tures and ngs are used
to create a sophiscated
and modern interior that
also oers generous living
and dining facilies on eachoor.
All rooms are spacious with
en-suite and kitchen facili-
es and top quality furni-
ture. Also as beng a luxu-
ry bouque development of
this nature, there will be a
very a modern lounge / din-
er facilies to every 6 en-
suite units!
What is included in each student
studio? A Flat screen television
One double bed, desk chair and ward-
robe
Carpets and blinds
Internet access is included with eachroom
In addion there is an unparalleled list of
amenies such as:
Gym
Laundry
Media services including printer and
photocopier
Communal Lounge including 42 TV
Full oor plans are
available upon re-
quest from our
dedicated team.
-
8/2/2019 London Student Accomodation
6/12
Locaon Of Development
Page 6
A = Bexley Road Student Development
= Greenwich University, Avery
= Rose Bruford College of Theatre and Performance
= Bird College OF Dance, Music and Theatre
500 Metres
-
8/2/2019 London Student Accomodation
7/12
Locaon Of Development (2)
Page 7
Central Locaon To a Variety of Presgious Further Educaon Instuons
Most students value the locaon of their accommodaon as much as the quality of it. This de-
velopment at 157 Bexley Road, SE9 2PR, is located in a prime spot just across the road from the
Avery Hill campus and close to two further educaon centres. This provides a large amount of
student numbers for this small bouque student development and ensures long term rentals
year on year and consistent rental income for investors.
A guide for approximate locaons and distances from the student accommodaon is as fol-lows:
University of Greenwich, Avery Hill - 100 metres
Falconwood Railway Staon - 600 metres
Rose Bruford College 750 - metres
Bird College 1 km
Central Londonjust 15 minutes away
-
8/2/2019 London Student Accomodation
8/12
FinancialsProviding a Realisc ROI of 90% In Just 5 Years
Page 8
Oering Excellent hands-free Regular Passive IncomeAs you can see below, these student studios oer an excellent return on your investment and
well above average rental yields. Furthermore, the management company in place will provide
their experse at a highly compeve rate of just 8% for full management. Tradional student
accommodaon would normally aract fees of around 12 -15% for this level of service. This re-
duces your costs signicantly and sll means you will achieve a net rental yield of at least 9% in a
prime London locaon.
Return On Your Investment Over 5 Years
1 Bedroom En-suite Student Studio Amount
Purchase Price 82,700
Gross Income (51 weeks at 180pw) 9,180
Gross Yield
11.1%
Maintenance and expenses 1,000
Management Fee (Just 8%) 735
Net Income 7,445
Net Yield 9.00%
Capital Appreciaon based on en-suite unitConservave Expected Buoyant
Increase 5% 7% 9%
2012
86,835
88,489
90,143
2013 91,177 94,683 98,256
2014 95,736 101,311 107,099
2015 100,522 108,403 116,738
2016 105,548 115,991 127,244
Prot 22,848 33,291 44,544
Net Rental Income*Conservave Expected Buoyant
Increase 3% 5% 7%
2012 7,445 7,445 7,445
2013 7,668 7,817 7,966
2014 8,052 8,208 8,524
2015 8,454 8,619 9,120
2016 8,877 9,049 9,759
Prot 40,497 41,138 42,814
Total Prot 63,345 74,429 87,358
Return 76.60% 90.00% 105.63%
As with any property located
in a prime locaon, prices rise
in line with inaon, personalincome and with the yield it
achieves. Because this invest-
ment oers incredibly high
yields, the property will be
very much in demand to pur-
chase.
*With inaon currently
around 5% we believe this is
a fair expectaon of rentalincreases, especially consid-
ering the massive shortage of
quality student rooms in the
area.
-
8/2/2019 London Student Accomodation
9/12
The Buying Process - Safe, Simple and Secure
Page 8
Page 7
Reservaon Reservaon form and fee 5,000 received (refundable if full planning consent not obtained)
Sales pack sent to buyers Solicitors within 21 days of reservaon.
Exchange (Est March/April 2012) Upon receipt of Planning Permission Exchange and Compleon will take place within 21 days
Investor pays a poron of total purchase price
The Investors Solicitors will be given relevant Contract/Lease within sucient me scale to review and fur-
ther enquiries raised
Construcon Full Construcon has been contracted to be completed on the specied given compleon date and full insur-
ance will be taken out to protect investment
Architect to inspect and sign o parcular stages of compleon
Required funds to be disbursed from Solicitor to contractor
Ensuring Investor monies completely safe guarded
Cercate Of Compleon Cercate of compleon issued
Final Architect cercate issued
Both cercates forwarded to purchaser Solicitors
Investor will be given 2 weeks nocaon that compleon draws near
From this point the buyer has 28 days to forward the balance of the funds due to the solicitors
Page 9
-
8/2/2019 London Student Accomodation
10/12
How To Reserve
Page 10
Reserve Your Student Studio Today Before All
Units Are Sold!
The step by step process of purchasing:
1. Please contact us on the details below to get the latestavailability of units. We will then forward you a reservaon
form which needs to be completed.
2. Once your unit has been selected please complete the
reservaon agreement and return along with a copy of
your passport and recent ulity bill. The bank transfer de-
tails will be found on the reservaon agreement for pay-
ment of the reservaon fee of just 5,000 to the
developer.
3. Once the vendor have conrmed that they have re-
ceived your reserved fee and reservaon form, you will
need to instruct a solicitor. We can assist you with this if
you would like.
4. Your solicitor will advise you of the paperwork they will
require from you. Please return this promptly to reduce the
risk of delays.
5. Your rst installment payment will be made when you
exchange contracts, your solicitor will inform you when
they have the date for exchange providing you with an ade-
quate noce period. The expected date of exchange is
March / April 2012. At the me of exchange you will also
be required to sign and return your contracts.
The amount required to exchange would be 50,000
6. Your nal installment is due when the building com-pletes, again your solicitor will provide you adequate no-
ce. Should you have any quesons during this processplease do not hesitate to contact us. Compleon is due
September 2012.
The amount to complete would be the remaining balance
which would be 27,700
Please be aware that availability is very
limited so please contact us today to reserve
your unit!
-
8/2/2019 London Student Accomodation
11/12
FAQs
Q1. How achievable is the rental yield?
A1. The rental yield is very achievable. Similar student accommodaon based in Greenwich oers a lower
standard of accommodaon and smaller rooms, which rent for 180 to 220 per week and are consistent-
ly 100% fully booked. Also this is without extra facilies such as a gym! Given the new build quality, theat screen TVs in the rooms and just 1 minute walking distance of the nearest university, these spacious
and luxury student rooms will be the rst choice of any student studying in Greenwich. In addion the de-
velopment is also close to two presgious performing arts and drama colleges as well, both of which do
not have any accommodaon available for their students and have expressed a strong interest in these
units already for rental purposes.
Q2. What are the benets of 51 week tenancies?
A2. 51 week tenancies are rarely oered by universies in their halls of accommodaon for the simple
reason that they can rent these out on very high nightly / weekly rentals during the summer when they
host conferences and convenons. In many cases rents can be as high as 100-
150 per night. This caus-
es a problem for students, in parcularly internaonal students who want to stay during the summer. By
oering 51 week tenancies, not only does this development oer something unique, but also maximises
the rental income for investors.
Q3. What is the length of lease on the these student studios?
A3. The lease would be for 250 years which is considered to be very long.
Q4. Are there any sourcing / nders fees payable?
A4. No.
Q5. How experienced are the management company?
A5. The management company will be experienced in this sector and are well established in the area. This
level of experse enables the management company to consistently achieve occupancy rates close to
100% year aer year.
Q6. What do you mean by the rst year rental is assured?
A6.This means that the developer will assure the payment of the rental for the rst year starng in Octo-
ber 2012 which gives you absolute peace of mind. In the very unlikely event that the developer slightly
overruns and misses the deadline, you would sll have your rental income for that year. Very few devel-
opers have the experience and condence to oer such an assurance.
Q7. How long do I have to make my decision to reserve?
A7. As with all of our excellent property investment deals this project will be sold on a strictly rst come,
rst served basis. Given the quality of this deal, the tremendous yields oered and the exceponal value
for money we feel that this property deal will be very popular indeed so we would advise investors to re-
serve as soon as possible to avoid disappointment.
Page 11
-
8/2/2019 London Student Accomodation
12/12
FAQs (2)
Q8. Can I purchase using a mortgage or does it have to be cash?
A8. Unfortunately due to the current very stringent and restricted lending condions most lenders mini-
mum loan amounts, at the moment mortgages are not available for this type of accommodaon and
therefore you will need to purchase with cash. However, it may be possible, me scales perming, to
raise nance either as a loan or re-mortgage secured on your exisng property which will then allow you
to be in a cash posion to invest. The generally low interest rates available on a secured loan / mortgage
would be easily covered by the extremely high rental yield oered here. The rental income should cover
the cost of the loan and sll provide excellent passive income.
Q9. How do I reserve one of the student studios?
A9. Please contact our experienced team on the details below and we would be delighted to discuss with
you the current availability. You would then need to sign and return the reservaon form along with the
reservaon fee.
Page 12