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<ul><li><p>TheOystercatcher</p><p>Port folio</p><p>A Diverse Residential Investment Portfolio</p></li><li><p>2 | Oystercatcher Portfolio</p><p>The Oystercatcher Portfolio</p><p>Executive Summary</p><p>A stabilised regional portfolio comprising seven residential </p><p>assets. This is a rare opportunity to buy into a Private </p><p>Rented Sector portfolio consisting predominately of </p><p>freehold, unbroken blocks. The portfolio offers both a </p><p>diverse income stream and the opportunity of a break-up </p><p>to the owner occupier and buy-to-let investor markets.</p><p>Following a period of circa 18 months of extensive </p><p>refurbishment, the owners have appointed Savills (UK) </p><p>Ltd to market the Portfolio for sale. </p><p>Portfolio Performance</p><p>The occupancy level as at 1st September 2015 was 97%. </p><p>As at the same date the passing rent per annum shows </p><p>a 7.65% increase on the total gross income received </p><p>over the course of 2014.</p><p>The Portfolio is managed by Touchstone Residential </p><p>Ltd. In total the operating costs including maintenance, </p><p>management, utilities and write offs over the year </p><p>01/06/14 - 31/05/15 accounted for 38.4% of the estimated </p><p>rental value. </p><p>The current owners have undertaken a programme of </p><p>refurbishment over the last year to position the portfolio </p><p>for sale, this has significantly increased the occupancy </p><p>rate from 85% as at 31st August 2014 to 97% as at 1st </p><p>September 2015. </p><p>We would anticipate an incoming investor over the short </p><p>to medium term to be able to further reduce the gross to </p><p>net income leakage closer to the IPD index for All ASTs </p><p>(34.3% in 2014).</p><p>The table below sets out the operating cost items as a % of </p><p>the estimated rental value (a more detailed breakdown is </p><p>contained within the dataroom):</p><p>Annual Operating costs </p><p>(01/06/14 - 31/05/15) Cost </p><p>% of ERV </p><p>(01/09/15) </p><p>Maintenance 173,849 20.1%</p><p>Management 101,891 11.8%</p><p>Utilities 22,326 2.6%</p><p>Ground Rent &amp; Service </p><p>Charge27,915 3.2%</p><p>Write Offs 219 0.03%</p><p>Other &amp; Unallocated 5,806 0.7%</p><p>Total 332,006 38.4%</p><p>The Opportunity</p><p>The Portfolio represents an opportunity to acquire a well </p><p>balanced residential investment portfolio situated across </p><p>England. The assets are located across the North West, </p><p>North East, West Midlands, East Midlands and Yorkshire &amp; </p><p>Humberside. It provides an incoming investor with a core </p><p>income stream, whilst also being well positioned for an investor </p><p>to benefit from anticipated future house price growth. This </p><p>gives an incoming investor the opportunity to also pursue </p><p>a phased break-up of the individual apartments to both the </p><p>owner occupier and buy-to-let markets, with the added benefit </p><p>of the creation of ground rent income on the freehold assets. </p><p>The assets are located in strong local rental locations close </p><p>to a mix of universities, employment and leisure hubs. The </p><p>apartments are offered for rent at competitive price points </p><p>in the local markets. The Portfolio presents the opportunity </p><p>for an incoming investor to acquire the assets beneath </p><p>reinstatement value.</p><p>The Residential Market</p><p>Hometrack House Price Cities Index for July 2015 reports </p><p>an average UK year on year increase of 6.2%. The report </p><p>highlights that the northern powerhouse cities, including </p><p>Manchester, Newcastle and Sheffield, have registered a </p><p>pick-up in growth since 2013, however average prices are </p><p>still below those of 2007. Growth over the last 3 months </p><p>(+4.3%) is at the fastest rate for 11 years. There remains further </p><p>upside for house prices in regional cities outside London. The </p><p>table below reflects Savills capital growth forecast for the </p><p>next 5 years.</p><p>Savills House Price Forecast</p><p>2015 2016 2017 2018 2019 5 year</p><p>North East 1.0% 3.5% 3.5% 2.0% 2.0% 12.6%</p><p>North West 1.0% 4.0% 4.0% 2.0% 2.0% 13.7%</p><p>Yorkshire &amp; Humberside 1.5% 4.5% 4.5% 2.5% 2.5% 16.5%</p><p>West Midlands 2.0% 4.5% 4.5% 3.0% 3.0% 18.2%</p><p>East Midlands 2.0% 5.0% 5.0% 3.0% 3.0% 19.3%</p><p>Source: Savills Research, 2015</p><p>The rising demand for rented housing over the past decade </p><p>and lack of new housing supply has driven the price of </p><p>housing beyond the reach of a large segment of the </p><p>population. Our expectation is that the PRS will continue to </p><p>expand for the remainder of the decade, to 6.6m households </p><p>in the UK by 2019, which is around 250,000 new PRS </p><p>households per annum. Savills rental growth forecast for the </p><p>UK (excluding London) for the next 5 years is as follows:</p><p>Savills Rental Growth Forecast</p><p>2015 2016 2017 2018 2019 5 year</p><p>Mainstream Markets (excluding London) 2.0% 2.5% 3.0% 3.0% 3.5% 14.8%</p><p>Source: Savills Research, 2015</p></li><li><p>Oystercatcher Portfolio | 3</p><p>Summary</p><p>Block Location TenureNo. of units</p><p>Passing Rent/PA</p><p>ERV/PA ERP</p><p>1 42-56 Caversham Place Sutton Coldfield Leasehold 8 64,560 69,600 1,000,000</p><p>2 Eastwood &amp; Stoneleigh Court Manchester Freehold 26 179,820 185,640 3,050,000</p><p>3 Sharrow View Sheffield Freehold 20 133,560 138,000 2,340,000</p><p>4 91-107B Gell Street Sheffield Freehold 26 167,280 179,400 2,920,000</p><p>5 9-24 Foundry Court Newcastle Freehold 16 87,036 91,200 1,350,000</p><p>6 1-22 Langley Mere Newcastle Freehold 22 100,860 123,600 1,680,000</p><p>7 Manor Court Grimsby Leasehold 16 76,500 78,750 1,240,000</p><p>Total 134 809,616 866,190 13,580,000</p><p>ERV - Estimated Rental Value. The amount a property in good, lettable condition can be rented for annually on the open market.</p><p>A1(M)M40</p><p>M6</p><p>M180</p><p>A1(M)</p><p>M1</p><p>London</p><p>Manchester</p><p>Sheffield</p><p>Birmingham</p><p>Sutton Coldfield</p><p>Grimsby</p><p>Newcastle</p><p>42-56 Caversham Place 1</p><p>Eastwood &amp; Stoneleigh Court2</p><p>91-107B Gell Street</p><p>8-46 Sharrow View</p><p> 4</p><p> 3</p><p>9-24 Foundry Court</p><p>1-22 Langley Mere</p><p> 5</p><p> 6</p><p>Manor Court 7</p><p>ERP - Estimated Realisation Price. The amount the asset could be sold for with vacant possession, in good condition and assuming a reasonable marketing period. The ERP includes a price assuming the freehold interest is sold separately from the leasehold interests on the freehold blocks. This assumes a ground rent income of 250 PA / unit, capitalised at 3.5%. </p></li><li><p>Sutton Park</p><p>Perry Common</p><p>Sutton Coldfield</p><p>Birmingham</p><p>TheBelfry</p><p>42-56 Caversham Place</p><p>M6</p><p>M6</p><p>M6</p><p>M42</p><p>4 | Oystercatcher Portfolio</p><p>Oystercatcher Portfolio</p><p>42 56 Caversham Place Sutton Coldfield, B73 6HY</p><p>Units 8</p><p>ERP 1,000,000</p><p>Passing Rent (pa) 64,560</p><p>Occupancy 100%</p><p>ERV (pa) 69,600</p><p>Tenure Leasehold</p><p>Description</p><p> Unbroken block comprising apartments subject to 999 year leasehold interests from January 2001</p><p> 8 x two bedroom flats</p><p> Held subject to 8 x ASTs</p><p> Parking</p><p> Ground rent of 400 per annum (50/ apartment) currently payable in addition to a service charge. </p><p> 1</p><p>Location</p><p>Caversham Place comprises a single block of eight self contained flats with an enclosed car park at ground floor level, and four upper floors. Sutton Coldfield train station (with regular services into Birmingham New Street station in 20 minutes) is within walking distance (0.7 miles) along with accessible bus routes from Birmingham Road.</p><p>The current average asking rent (Zoopla) for a two bedroom flat in the B73 post code area is 634 pcm, c.6.5% beneath the average 2 bedroom rent passing in Caversham Place.</p><p>Birmingham PRS Overview</p><p>In autumn 2013, Birmingham City Council approved its Housing </p><p>Growth Plan, which foresees a need for 80,000 new homes in </p><p>Birmingham by 2031. Over the last ten years, the PRS has </p><p>continued to expand, doubling in size, and now representing </p><p>20% of homes in the city of Birmingham.</p><p>Operating Costs</p><p>Operating costs </p><p>(01/06/14 - 31/05/15) Cost </p><p>% of ERV </p><p>(01/09/15) </p><p>Maintenance 4,973 7.1%</p><p>Management 7,924 11.4%</p><p>Utilities 1,359 2.0%</p><p>Ground Rent &amp; Service Charge</p><p>20,903 30.0%</p><p>Write Offs 0 0.0%</p><p>Other &amp; Unallocated 0 0.0%</p><p>Total 35,159 50.5%</p><p>One unit was partially refurbished in 2015 at a cost of c.500. A </p><p>further 1,500 was spent on replacing domestic appliances.</p></li><li><p>A57(M)</p><p>A6010</p><p>A5103</p><p>Manchester</p><p>Manchester Grammar School</p><p>Manchester University Fallowfield Campus</p><p>Manchester High School for Girls</p><p>University of Manchester</p><p>Manchester Metropolitan </p><p>University</p><p>Manchester Piccadilly Station</p><p>Eastwood &amp; Stoneleigh </p><p>Court</p><p>Oystercatcher Portfolio | 5</p><p>Oystercatcher Portfolio</p><p>Eastwood Court and Stoneleigh Court Manchester, M14 6JU</p><p>Units 26</p><p>ERP 3,050,000</p><p>Passing Rent (pa) 179,820</p><p>Occupancy 100%</p><p>ERV (pa) 185,640</p><p>Tenure Freehold</p><p>Description</p><p> Two freehold unbroken blocks</p><p> 26 x two bedroom flats</p><p> Held subject to 25 x ASTs &amp; 1 x Assured Tenancy</p><p> Communal garden space</p><p> Parking</p><p> 2</p><p>Location</p><p>The property comprises two adjacent blocks of flats arranged </p><p>over ground floor and rising to three upper levels. It is situated </p><p>in the heart of the popular area of Fallowfield. The property </p><p>is ideally located for easy train and bus access to Manchester </p><p>City Centre. Both the University of Manchester and Manchester </p><p>Metropolitan University campuses are within a 10 minute walk.</p><p>The current average asking rent (Zoopla) for a two bedroom </p><p>flat in the M14 post code area is 690 pcm, c.20% above </p><p>the average 2 bedroom rent passing in Eastwood Court and </p><p>Stoneleigh Court.</p><p>Manchester PRS Overview</p><p>The PRS in Manchester accounts for 30% of all households, </p><p>higher than the proportion in London. This is mostly driven </p><p>by young adults, with 69% of 25 34 year old households </p><p>renting privately. There is a shortage of private rental </p><p>accommodation in the city which is forecast to worsen.</p><p>Operating Costs</p><p>Operating costs </p><p>(01/06/14 - 31/05/15) Cost </p><p>% of ERV </p><p>(01/09/15) </p><p>Maintenance 23,151 12.5%</p><p>Management 24,029 12.9%</p><p>Utilities 8,661 4.7%</p><p>Write Offs 68 0.04%</p><p>Other &amp; Unallocated 0 0.0%</p><p>Total 55,909 30.1%</p><p>All 26 flats have undergone full refurbishment over the last 5 </p><p>years. Following a health and safety report, recommendations </p><p>were implemented at a cost of 3,900 and 1,650 was spent </p><p>on roof works.</p></li><li><p>Sheffield</p><p>Sheffield Railway Station</p><p>The University of Sheffield</p><p>The University of Sheffield</p><p>Moor Market</p><p>Crook Valley </p><p>Park</p><p>A61</p><p>A57</p><p>A625</p><p>Sheffield Hallam </p><p>University</p><p>Orchard Square Shopping Centre</p><p>Sharrow View</p><p>6 | Oystercatcher Portfolio</p><p>Description</p><p> Freehold, unbroken block</p><p> 20 x two bedroom flats</p><p> Held subject to 20 x ASTs</p><p> Parking</p><p>Oystercatcher Portfolio</p><p>Sharrow View Sheffield, S7 1ND</p><p>Units 20</p><p>ERP 2,340,000</p><p>Passing Rent (pa) 133,560</p><p>Occupancy 100%</p><p>ERV (pa) 138,000</p><p>Tenure Freehold</p><p> 3</p><p>Location</p><p>Sharrow View comprises a purpose built block of flats </p><p>arranged over ground floor and rising to third floor level. </p><p>It is a private, freehold development accessed off Sharrow </p><p>Lane. Tesco, numerous pubs and restaurants are only a </p><p>short distance from Sharrow Vale, Ecclesall Road and </p><p>Sheffield City Centre, are approximately 1 mile to the north </p><p>east.</p><p>The current average asking rent (Zoopla) for a two bedroom </p><p>flat in the S7 post code area is 595 pcm, c.6.8% above the </p><p>average 2 bedroom rent passing in Sharrow View.</p><p>Sheffield PRS Overview</p><p>The PRS in Sheffield has doubled in the past 10 years. There </p><p>are now around 36,000 households in the citys private rented </p><p>sector (16% of the citys housing stock). Savills Research </p><p>believe that due to a growing population, circa 16,600 homes </p><p>need to be delivered annually to meet the growing demand. </p><p>Operating Costs</p><p>Operating costs </p><p>(01/06/14 - 31/05/15) Cost </p><p>% of ERV </p><p>(01/09/15) </p><p>Maintenance 31,309 22.6%</p><p>Management 16,539 12.0%</p><p>Utilities 3,915 2.8%</p><p>Write Offs 0 0.0%</p><p>Other &amp; Unallocated 756 0.5%</p><p>Total 52,519 37.9%</p><p>10 out of 20 flats at Sharrow View have been fully </p><p>refurbished over the past five years. 50% of these have </p><p>been refurbished in 2015, at a total cost of c.8,600. </p></li><li><p>Sheffield</p><p>Sheffield Railway Station</p><p>Sheffield Hallam </p><p>University</p><p>Orchard Square Shopping Centre</p><p>A61</p><p>A57</p><p>A625</p><p>The University of Sheffield</p><p>Moor Market</p><p>Gell Street</p><p>Oystercatcher Portfolio | 7</p><p>Description</p><p> Freehold, unbroken block</p><p> 26 x two bedroom flats</p><p> Held subject to 25 x ASTs &amp; 1 void</p><p> Parking</p><p>Oystercatcher Portfolio</p><p>91 107b Gell Street Sheffield, S3 7QT</p><p>Units 26</p><p>ERP 2,920,000</p><p>Passing Rent (pa) 167,280</p><p>Occupancy 96%</p><p>ERV (pa) 179,400</p><p>Tenure Freehold</p><p> 4</p><p>Location</p><p>The property comprises an L-shaped building offering </p><p>twenty-six residential flats over ground floor, first and </p><p>second floor levels. It is accessed via a pend off Gell Street. </p><p>Located in the Devonshire Green Quarter of the City, it is </p><p>within 0.5 miles of Sheffield City Centre. The University </p><p>of Sheffield is 0.5 miles to the north of the property and </p><p>Sheffield Hallam University is 0.7 miles to the west. The two </p><p>universities have a combined count of 59,700 students, </p><p>of which 47,500 (80%) are full-time and likely to require </p><p>accommodation. </p><p>The current average asking rent (Zoopla) for a two </p><p>bedroom flat in the S3 post code area is 777 pcm, c.40% </p><p>above the average 2 bedroom rent passing in Gell Street.</p><p>Operating Costs</p><p>Operating costs </p><p>(01/06/14 - 31/05/15) Cost </p><p>% of ERV </p><p>(01/09/15) </p><p>Maintenance 60,877 33.9%</p><p>Management 20,476 11.4%</p><p>Utilities 3,936 2.2%</p><p>Write Offs 45 0.05%</p><p>Other &amp; Unallocated 756 0.4%</p><p>Total 86,090 47.7%</p><p>12 of the 26 units at Gell Street have been fully refurbished </p><p>during the past five years. Last year this amounted to </p><p>c.19,000 whilst a further 18,000 was spent on electrical </p><p>works including replacing extractor fans in all bathrooms.</p></li><li><p>Newcastle</p><p>Newcastle University </p><p>Library</p><p>Northumbria Business </p><p>School</p><p>Newcastle Railway Station</p><p>A167(M)</p><p>Baltic Centre for Contemporary Art </p><p>St Peters Marina </p><p>Quayside</p><p>Foundry Court</p><p>8 | Oystercatcher Portfolio</p><p>Oystercatcher Portfolio</p><p>9 24 Foundry Court Newcastle, NE6 1UG</p><p>Units 16</p><p>ERP 1,350,000</p><p>Passing Rent (pa) 87,036</p><p>Occupancy 100%</p><p>ERV (pa) 91,200</p><p>Tenure Freehold</p><p>Description</p><p> Freehold, unbroken block</p><p> 8 x one bedroom flats &amp; 8 x two bedroom flats</p><p> Held subject to 15 x ASTs &amp; 1 x Assured Tenancy</p><p> Parking</p><p> 5</p><p>Location</p><p>The property comprises two adjacent blocks, each providing eight flats arranged over ground floor and three upper levels. It is approximately 1 mile from Newcastle City Centre. The property also benefits from excellent road links and Byker Metro Station (0.6 miles) provides convenient access to the city centre. In the NE6 postcode area, the current average asking price (Zoopla) of a 1 bedroom flat is 415 pcm and 532 pcm for a 2 bedroom flat. This is c.4.8% below and c.12.9% above the current average passing rents of 1 and 2 bedroom </p><p>flats respectively in Foundry Court.</p><p>Newcastle PRS Overview</p><p>The PRS accounts for 13.2% of households in Newcastle. The average house price in Newcastle according to Hometrack in July 2015 was 123,200, a rise of 10% from 2009, whilst house </p><p>prices have risen by 2.5% over the last 12 months. </p><p>Operating Costs</p><p>Operating costs </p><p>(01/06/14 - 31/05/15) Cost </p><p>% of ERV </p><p>(01/09/15) </p><p>Maintenance 22,755 24.9%</p><p>Management 9,776 10.7%</p><p>Utilities 1,330 1.5%</p><p>Write Offs 106 0.1%</p><p>Other &amp; Unallocated 4,294 4.7%</p><p>Total 38,261 42.3%</p><p>9 of the 16 apartments have been fully refurbished, of which </p><p>three were carried out over 2014/2015 at a total cost of </p><p>c.11,000.</p></li><li><p>Newcastle Railway Station</p><p>Town Moor Park</p><p>Quayside</p><p>Benton Metro </p><p>Station</p><p>Newcastleupon Tyne</p><p>A16(M)</p><p>Langley Mere</p><p>Oystercatcher Portfolio | 9</p><p>Oystercatcher Portfolio</p><p>1 22 Langley Mere Newcastle, NE12 7FN</p><p>Units 22</p><p>ERP 1,680,000</p><p>Passing Rent (pa) 100,860</p><p>Occupancy 86%</p><p>ERV (pa) 123,600</p><p>Tenure Freehold</p><p>Description</p><p> Freehold, unbroken block</p><p> 14 x one bedroom &amp; 8 x two bedrooms flats </p><p> Held subject to 16 x ASTs &amp; 3 x Assured Tenancies</p><p> Par...</p></li></ul>