London Student Accomodation

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  • 8/2/2019 London Student Accomodation

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    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

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    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

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    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

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    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.

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    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.

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    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

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    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

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    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.

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    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

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    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!

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    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.

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    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