APARTMENTS - Cushman & Wakefield...BUILT IN 2013 & REFURBISHED TO A HIGH SPEC IN 2016. INVESTMENT SUMMARY OPERATED BY COLLEGIATE a prestige operator of luxury student accommodation

ST.MARKSAPARTMENTS

20 St. Mark Street, Lincoln, LN5 7BA

PRIME STUDENT ACCOMMODATIONINVESTMENT OPPORTUNITY

BUILT IN 2013 & REFURBISHED TO A HIGH SPEC

IN 2016.

INVESTMENT SUMMARY

OPERATED BY COLLEGIATE

a prestige operator of luxury student accommodation

MANAGEMENT COSTS PER

BED.

£2,370

NO.22 IN RANKINGSThe University of Lincoln has moved up rankings by 25 places, to No 22.

by The Guardian.

116 BEDS made up of a mixture

of large studios, premium studios,

twodios and cluster apartments.

100%LETTING HISTORY

38% OF WHICH ARE INTERNATIONAL

STUDENTS.

BEST IN CLASSpurpose built student

accommodation in Lincoln.

PROVEN RENTALGROWTH

outperforming national average

PRIME LOCATION2 minute walk from

University of Lincoln and a 3 minute walk from

train station.

GROSS INCOMEFOR 2018/2019.

£839,511NET OPERATING

INCOME FOR 2018/2019

£554,238

Proposals are sought for the freehold interest with offers in excess of £8,975,000 reflecting a net initial yield of 6.00% reflecting purchasers costs at 2.80%, allowing for MDR. This reflects £77,370 per bed.

LOCATION

BY RAIL JOURNEY TIME

Sheffield 1h 23 mins

Leeds 1h 50 mins

London King’s Cross 1h 55 mins

Manchester 2h 19 mins

Birmingham 2h 24 mins

BY CAR JOURNEY TIME

Sheffield 49 miles

Leeds 72miles

London King’s Cross 142 miles

Manchester 110 miles

Birmingham 90 miles

Lincoln is a dynamic and contemporary cathedral city and the county town of Lincolnshire in the East Midlands now acting as the main economic driver for the Greater Lincolnshire Area.

» The city of Lincoln is situated approximately 48 miles southeast of Sheffield, and 89 miles northeast of Birmingham. There is a direct line from Lincoln to King’s Cross with a journey time of 1 hour 55 minutes.

» The city benefits from a new £30 million transport hub opened earlier in 2018 providing a state of the art bus station and a 1,000 space multi-storey city centre car park. The city also benefits from direct rail services to and from London.

» Lincoln is home to two Universities, The University of Lincoln and Bishop Grotesseste University.

NEW £30 MILLION TRANSPORT

HUB

PORTLAND ST

MONSON ST

SIBTHORP ST

COULSON RD

FIRTH RD

BEEVOR ST

GREEN LN

ORC

HAR

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GRE

SHAM

STDRAKE ST

ALEXANDRA TERRACE

WATERSIDE S

WATERSIDE N

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BR

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LINDUM RDCARHOLME RD

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WRAGBT R

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THE

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ROPE WALK

KESTEVEN ST

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TRIT

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1003

B1273

LINCOLN

NEWLAND

NEW BOULTHAM

LINCOLNCORNHILL

ST.MARK’SAPARTMENTS

2

3

4

5

67

8 9 10

11

12

13

EDINBURGH

ABERDEEN

GLASGOW

LIVERPOOL

MANCHESTER

SHEFFIELD

BIRMINGHAM

BRISTOL

NEWCASTLE

LEEDS

LONDON

LINCOLN

MAP

KEY1. Lincoln Cathedral

2. Brayford Pool

3. Science Building

4. Proposed site for new Medical Building

5. Isaac Newton Building

6. Lincoln Performing Arts Centre

7. Student Union

8. University Library

9. Sarah Swift Building

10. Train Station

11. St Marks Shopping Centre

12. Morrisons

13. Tritton Retail Park

BRAYFORD POOL

TRAINSTATIONST.MARK’S

APARTMENTS

LINCOLNCATHEDRAL

3 MINUTE WALKTO TRAIN STATION

2 MINUTE WALK TOUNIVERSITY CAMPUS ST MARK’S

SHOPPING CENTRE

ODEONCINEMA PRIMARK

B1273

HIGH STREET

UNIVERSITY CAMPUSTESCO EXPRESS

TRITTON RETAIL PARK

DEBENHAMS

AERIAL

SURROUNDING AREA OVERVIEW

SITUATION6.9m

ST MARK STREET

Albion Yard

El Sub Sta

1 75

St Mark's

1 70

Church Hall

1 64

1 57

165

339

1 60

345

4

1 62

168

341341a

343

327

1 69

340

334 to 337

1 61

1 59

338

1 63

328

333

2

The Junxion

332

2

344

St MarksHouse

ColbeckChambers

35

1

329

342

8

Rose House

1

to

1 1

347 1

3

5

Hig

h St

reet

2 MINUTE WALKTO THE UNIVERSITY

OF LINCOLN

1 MINUTE WALKTO LINCOLN

HIGH STREET

» Bishop Grosseteste University is reachable by public transport (23-minute bus journey) with buses running every 15 minutes, a short walk from the Property.

» At the city campus there are plans to build a new state of the art medical training facility located opposite the Isaac Newton Building and adjacent to the existing science building, set to train our future doctors and GP’s.

3 MINUTE WALKTO LINCOLN

CENTRAL TRAIN STATION

Two brand new, high specification academic buildings – The Sarah Swift Building and the Cygnet Wharf, recently opened at the start of the 2017/2018 academic year and are in the immediate vicinity. Both of which have been nominated for prestigious Royal Institution of Chartered Surveyors (RICS) Awards 2018, East Midlands in the regeneration and commercial categories.

UNIVERSITIES

LINCOLN TOTAL STUDENTS FULL-TIME INTERNATIONAL

Total 16,385 13,660 1,215

2 UNIVERSITIES The current student

population is more than 16,000 and growing.

5,921 BEDS IN LINCOLN3,706 are privately owned, 540 on a direct let bases,

the remaining are nominated by the

universities.

A LOW DEVELOPMENT PIPELINE OF 537

PBSA BEDSconsented in Lincoln

(August 2018)

1.8:1 STUDENT TO BED RATIO

The overall international student population at the University of Lincoln is over 10% of the total student population. From 2011 to 2016 the full time student population at the University of Lincoln increased by 17%, massively outperforming the national average of 5% over the same period.

IMPROVED RANKINGS FOR UNIVERSITY OF

LINCOLNNo.22 by The Guardian (up 25

places) and 43rd in the Complete University Guide

Rankings 2018/2019

SCHEDULE OF ACCOMMODATION

ROOM TYPE TENANCY LENGTH PRICE PER WEEK

Studios 51 £140 – £222

Clusters 51 £122 – £137

Twodios 51 £107 – £111

ROOM UNITS NUMBER OF BEDS

Twodios (shared bathrooms) 13 26

Ultra Studio 3 3

Studio 4 4

Premier Studio with view 6 6

Premier Studio Plus 5 5

Premier Studio 32 32

Deluxe Studio 5 5

Penthouse Suite 1 1

Cathedral View Studio 2 2

5 Bed Apartment 4 20

2 Bed Apartment 6 12

Total 81 116

ACCOMMODATION BREAKDOWN

RENTAL INCOME 2018/19

PROPERTY DESCRIPTION

PROPERTY HIGHLIGHTS

» Built in 2013

» Extensively refurbished in 2016 to a high specification (£1.5M)

» Private on-site fitness suite

» Reception area

» High speed broadband and Wi-Fi

» Laundry room

» Lounge study area

» Bike rack

ACCOMMODATION SPECIFICATION

» Interior design lead scheme

» Communal kitchen and dining area within each cluster flat

» Flat screen TV

» Fridge/freezer

» Bedrooms fitted with modern furniture including desks and wardrobes

» Communal breakout space on every floor

PLANNING

Planning permission for application No. 2012/0197/F was granted on 10th April 2013.

TENURE

Freehold.

There is an electricity sub-station lease commencing 18th September 2013 for a term of 21 years.

GROUND FLOOR SECOND TO FOURTH FLOORS

C3

C3

C3

C3 T2

T2

T2

T2

T1

T1

S1S1

T2

T2

C4

C4

C4

C4

C3 C3

COMMSROOM

PLANT ROOM

RECEPTION

AMENITY LOUNGE

PO

ST

BIN

STO

RE

LIFT

GYM

LAUNDRYROOM

PLANT ROOM

FIFTH FLOOR

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BOOTH SEATING

STUDIO

PREMIER STUDIO

PREMIER STUDIO PLUS

DELUXE STUDIO

PENTHOUSE SUITE

5 BED APARTMENTS

TWODIO

2 BED APARTMENTS

SIXTH FLOOR

LOUNGE

KEY

MANAGEMENT & INCOME

MANAGEMENT » The asset is currently managed by Collegiate.

» Collegiate are a well known operator for their luxurious and sleek living spaces and unparalleled attention to detail. Their student accommodation delivers sophisticated and modern designs and provide onsite concierge services and high quality security systems.

» Collegiate operate in 20 cities and on 37 PBSA schemes throughout the UK.

» Upon sale there is the opportunity for a buyer to put in their own operating platform.

RENTAL GROWTHNational average rental growth between 2017/2018 academic year and 2018/2019 stood at 2.7% for PBSA in the UK. The rental growth at St. Marks between 2017 and 2018 was 7.4% and between 2016 and 2017 was 9.4%, massively out performing the national average. Proposed rents for academic year 2019/2020 reflect a 3% uplift from the current academic year.

2018/2019 Income

Gross Annual Rent £839,511

Assumed voids for bad debts (1.5%) -£12,593

Laundry Income (Based on 2017 – 2018 income) £2,320

Total Annual Rent £829,238

Operating Expenditure (excluding VAT) -£275,000 (£2,370 per bed)

Net Operating Income £554,238

2016/17 Gross Income £714,380

2017/18 Gross Income £781,735

2018/19 Gross Income £839,511

Historic Income Profile

THE OVERVIEW OF THE UK STUDENT MARKET

For the 2018/19 academic year, there are 625,714 purpose-built student accommodation (PBSA) beds available to the UK’s full-time student population which stands at just under 1.8 million students. On average, there are two non-commuting students for every purpose-built bed meaning that the sector remains structurally undersupplied with accommodation. Average rental growth in the sector between the academic years 2017/18 and 2018/19 stands at 2.7%

Purpose-built stock appeals strongly to an aspirational ‘Generation Z’ student body that seeks a great student experience. The policy environment appears to be moving in the favour of purpose-built developments, with clear incentives for local authorities to move students out of traditional private rented accommodation into purpose-built stock.

Looking forwards the fundamentals of the market remain the same, with those that offer good value accommodation in good locations and in strong markets best set to succeed. Whilst the international environment is becoming more competitive, the UK remains a global centre of Higher Education and looks set to remain attractive in the future. Combined with a growing proportion of UK 18 year olds post-2020, there appears to be significant room for growth in the market.

Investor appetite for the sector has evolved significantly over recent years, with a more diversified spectrum of investors seeking exposure to student accommodation (alongside other operational real estate sectors). This has encompassed Private Equity, Sovereign Wealth Funds, and global institutions, as well as the traditional investor pool of developer/operators and sector specialists. In addition, we are seeing increasing demand from UK institutions who, having grown comfortable with the operational nature of sectors such as hotels and PRS, are looking to acquire single assets in well performing PBSA markets.

There is increased demand beyond the traditional Russell Group university destinations for schemes within close proximity to well performing Universities that have a strong letting history. Lincoln is proving to be an attractive location for investment for PBSA. The University is quickly moving up the rankings and attracting a high proportion of overseas students, coupled with this is a low development pipeline of PBSA. The PBSA market in the UK has a wide transactional base. The most recent sales of similar, direct let, PBSA are summarised in the table below:

SCHEME SALE DATE BEDS PRICE PAID PRICE PER BED NET INITIAL YIELD

Castle Gate Haus, Nottingham

October 2018 113 £10,200,000 £76,692 5.75%

Marketgait Apartments,

Dundee

October 2018 116 £9,500,000 £81,897 6.25%

Earnest Place, Durham

September 2018 362 £34,000,000 £93,923 6.04%

The Mill House,

EdinburghAugust 2018 257 £25,130,000 £97,782 5.84%

800 Bristol Road,

BirminghamAugust 2018 103 £14,620,000 £141,943 5.69%

1.8 MILLION FULL-TIME

STUDENTS IN THE UK

STUDENT ACCOMMODATION INVESTMENT COMPARABLES

PROPOSAL & CONT ACTS

PROPOSALOffers are invited in excess of £8,975,000 (Eight Million, Nine Hundred and Seventy Five Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level reflects a Net Initial Yield of 6.00% assuming purchasers costs of 2.80%.

INSPECTIONThe Property may be viewed by appointment only.

VATNot elected for VAT.

CONTACTSKATIE BEATTIE

Tel: +44 (0)161 235 8963

Mob: +44 (0)7889 309063

Email: [email protected]

RUSSELL HEFFERAN

Tel: +44 (0)161 235 7666

Mob: +44 (0)779 531 0140

Email: [email protected]

OLAN COYLE

Tel: +44 (0)161 235 8975

Mob: +44 (0) 776 620 2018

Email: [email protected]

MISREPRESENTATION ACT: Cushman & Wakefield Debenham Tie Leung Limited (“C&W”) gives notice to anyone who may read these particulars as follows: 1. These particulars are prepared for the guidance only of prospective purchasers. They are intended to give a fair overall description of the property only and do not constitute any part of an offer or contract. 2. Any information contained in these particulars (whether in the text, plans or photographs) is given in good faith but should not be relied upon as being a statement or representation of fact or that the property is in good condition or otherwise nor that any services or facilities are in good working order. 3. The photographs appearing in these particulars show only certain parts and aspects of the property at the time when the photographs were taken. Certain aspects may have changed since the photographs were taken and it should not be assumed that the property remains precisely as displayed in the photographs. Furthermore no assumptions should be made in respect of parts of the property which are not shown in the photographs. Any areas, measurements or distances referred to herein are approximate only. 4. Where there is reference in these particulars to the fact that alterations have been carried out or that a particular use is made of any part of the property this is not intended to be a statement that any necessary planning, building regulations or other consents have been obtained and these matters must be verified by any intending purchaser. 5. No person in the employment of C&W has any authority to make or give any representation or warranty whatsoever in relation to this property.6. This property is offered subject to contract and unless otherwise stated all rents are quoted exclusive of VAT.7. Unless otherwise stated, no investigations have been made by or on behalf of C&W regarding pollution, or potential land, air or water contamination. Interested parties are advised to carry out their own investigations as required. Photography taken October 2018, published November 2018.

DESIGNED BY