Oxford Court. 46 Oxford Street, Leicester, LE1 5XX STUDENT ACCOMMODATION INVESTMENT OPPORTUNITY

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1 Oxford Court 46 Oxford Street, Leicester, LE1 5XX STUDENT ACCOMMODATION INVESTMENT OPPORTUNITY

Oxford Court Leicester INVESTMENT SUMMARY An opportunity to invest in a freehold prime fully operational student housing investment in the popular university city of Leicester.

2 Oxford Court Leicester INVESTMENT SUMMARY An opportunity to invest in a freehold prime fully operational student housing investment in the popular university city of Leicester. The property is located opposite De Montfort University campus and a short walk to the University of Leicester. 200 cluster beds arranged over four floors with communal areas. One year nominations agreement to the University of Leicester. Reviewed on a year-to-year basis which currently covers 125 (62.5%) of the beds. Fully let for 2017/18 with waiting list. Net Operating Income of 683,508 ( 3,418 pa per bed space). Potential for significant rental growth there has been 5.6% rental growth in private PBSA between the 2016 and 2017 academic years in Leicester. Potential to add value through further refurbishment. INVESTMENT SUMMARY We are seeking offers in excess of 10,400,000 (Ten Million Four Hundred Thousand pounds) for the freehold interest reflecting a Net Initial Yield of 6.25%.

LEICESTER Population of the City of Leicester is 329,839 (Census 2011) Two universities with over 32,000 full-time students LOCATION Leicester is a major city within the East Midlands and is located

3 LEICESTER Population of the City of Leicester is 329,839 (Census 2011) Two universities with over 32,000 full-time students LOCATION Leicester is a major city within the East Midlands and is located 27 miles south of Nottingham, and 40 miles north east of Birmingham. The city is located at the intersection of two major railway lines the Midland Main Line and Cross Country Line it also benefits from excellent motorway links. Junction 21a of the M1 provides access to London, the North and Scotland. East Midlands Airport (19 miles) is the closest international airport and accessible by car as well as being serviced by frequent bus routes. Leicester is the largest economy in the East Midlands with an energetic City Centre that includes Intu Highcross Shopping Centre plus various restaurants and bars. Property close to City Centre shopping and leisure facilities East Midlands Airport is a 30 minute drive away

4 SITUATION The property is located fronting Oxford Street, with access to the rear on to York Street. Situated within an area predominantly given over to student residential, the property is ideally located. The surrounding area also offers a wide range of amenities including local retail, pubs, bars and cafes and within walking distance to John Lewis, Highcross Shopping Centre and St Martins Square. Leicester train station is 0.9 miles away (12 minute walk) from the property with regular train services to Nottingham (29 minutes), Birmingham (49 minutes) and London St Pancras International (1 hour 9 minutes). The site is located directly opposite the De Montfort University campus Innovation Centre close to the City Centre (0.5 miles), and within short walking distance to other university buildings. POI Walking Time By Rail Journey Time De Montfort University Leicester Train Station University of Leicester 4 mins 12 mins 19 mins Nottingham Birmingham London St Pancras 29 mins 49 mins 1h 9 mins Subject Site For identification purposes only

5 Highcross Shopping Centre Leicester Train Station Oxford Court Leicester Royal Infirmary King Power Stadium LOCATION Train Line

UNIVERSITIES Leicester is home to two highly regarded universities, with the University of Leicester growing significantly over recent years.

6 UNIVERSITIES Leicester is home to two highly regarded universities, with the University of Leicester growing significantly over recent years. The University is currently ranked 34th by The Sunday Times Good University Guide 2018 and De Montfort University is ranked 67th. The City has one of the largest student populations in the UK in excess of 70,000, including the Leicester Colleges. Both universities have been subject to increasing demand. De Montfort University has invested about 136m on its campus transformation project which is underway. University of Leicester has a 1bn development plan and is continuing to invest 6m a year in resources and facilities. There are currently 32,625 (84%) full-time students from the University of Leicester and De Montfort University combined with 38,730 students in total. UCAS applications to both University of Leicester and De Montfort grew by 7% and 18% respectively between University of Leicester had a 13% rise in 2016 enabling it to accept more than 4,000 new undergraduates. University Total Students Full-Time International Times University Ranking 2018 University of Leicester 17,825 15,275 3,494 (19.6%) 34th 7.1 De Montfort University 20,905 17,350 1,777 (8.5%) 67th 5.0 Total 38,730 32,625 5,271 Applicants Per Place

STUDENT ACCOMMODATION UNIVERSITY ACCOMMODATION IN LEICESTER There are 15,715 total bed spaces in Purpose Built Student Accommodation (PBSA) in Leicester.

7 STUDENT ACCOMMODATION UNIVERSITY ACCOMMODATION IN LEICESTER There are 15,715 total bed spaces in Purpose Built Student Accommodation (PBSA) in Leicester. Private Sector direct let schemes provides circa 8,515 bed spaces with the combined universities providing 7,200 through university owned accommodation and nominations agreements. There has been 5.6% rental growth in private PBSA between the 2016 and 2017 academic years in Leicester. The scheme is 100% let with a waiting list. LOCAL MARKET COMPARABLES Comparable Schemes Avg. Cluster Rent pw (17/18) Bede Park The Hosiery Factory The Shoe & Boot Factory City Block City Block

SPECIFICATION The property provides 200 bedrooms with offices for lettings and administration, student meeting rooms, laundry, study room, games room and external communal area providing bike storage

8 SPECIFICATION The property provides 200 bedrooms with offices for lettings and administration, student meeting rooms, laundry, study room, games room and external communal area providing bike storage and picnic facilities. Standard clusters provide a fully fitted kitchen, shower room with WC and an additional WC. Superior cluster apartments have an additional shower room. Bedrooms have fitted furniture, double beds and Wi-Fi. New bedroom furniture, kitchens and bathrooms were introduced in Refurbishment works of the reception and laundry areas are planned and will be completed prior to sale. There is potential to add value through further refurbishment. Facilities Included in the Scheme: Onsite Accommodation Team Onsite Maintenance Team Entertainment and Games Room Wi-Fi Internet available up to 100Mbps 24/7 Security Secure Bike Storage Laundry Room External Communal Area All Bills Included Five-bed standard cluster layout with shower room and additional W.C

INCOME ANALYSIS A summary of the types of available accommodation and the Net Operating Income is shown below. The current operational expenditure per bed is 1,300. No.

Bedroom 8 46 105 100% 38,640 Classic Double Bedroom Two Showers 11 46 105 100% 53,130 Deluxe Double Bedroom 4 46 110 100% 20,240 Two Bedroom Apartment 2 46 120 100% 11,040 Total 75 University of

9 INCOME ANALYSIS A summary of the types of available accommodation and the Net Operating Income is shown below. The current operational expenditure per bed is 1,300. No. of Beds Tenancy Length 2017/18 Rent Per Bed pw Occupancy Income Description Direct Let Classic Double Bedroom % 223,146 Deluxe Double Bedroom (Small) % 4,370 Deluxe Double Bedroom % 38,640 Classic Double Bedroom Two Showers % 53,130 Deluxe Double Bedroom % 20,240 Two Bedroom Apartment % 11,040 Total 75 University of Leicester (Nomination) Classic Double Bedroom % 457,380 Classic Double Bedroom Two Showers % 64,680 Deluxe Double Bedroom Two Showers % 29,040 Total 125 Scheme Total / Average Gross Term Income 901,666 Occupancy Void (2%) - 18,033 Summer Income 51,875 Additional Income 8,000 Total Annual Rent 943,508 Operating Expenditure - 260,000 Total Annual Rent 683,508 An opportunity for an investor to acquire the freehold interest of a prime located student accommodation investment serving both the University of Leicester and De Montfort University. Gross Rental Income is 943,508 per annum and Net Operating Income is 683,508 per annum for 2017/18.

10 FLOOR PLANS 200 cluster flats are arranged over four floors. The flats are then divided among five houses: Fox House Willowbrook House Holloway House Craven House York House

SCHEME DETAILS MANAGEMENT Currently managed internally - there is an operating platform currently in place managed by the vendor.

ENERGY PERFORMANCE CERTIFICATES An EPC dated 12 th January 2011 has a rating of B 50 for the development.

50Mbps Wi-Fi Internet is provided as standard with option to upgrade up to 100Mbps.

The property benefits from secure key fob entry and intercom system with 24 hour CCTV.

11 SCHEME DETAILS MANAGEMENT Currently managed internally - there is an operating platform currently in place managed by the vendor. There is a possibility for this management service to be continued for a purchaser. TENURE Freehold. ENERGY PERFORMANCE CERTIFICATES An EPC dated 12 th January 2011 has a rating of B 50 for the development. SERVICES Mains gas, electricity, water and drainage are connected to the premises. 50Mbps Wi-Fi Internet is provided as standard with option to upgrade up to 100Mbps. Each cluster benefits from a recently installed Worcester Bosch central heating boiler. The property benefits from secure key fob entry and intercom system with 24 hour CCTV. TENANCIES The property is fully let with a waiting list for 2017/18 academic year. The University of Leicester has a one year rolling nominations agreement with Oxford Court to occupy 125 rooms. This is reviewed on a year-to-year basis and offers 44 week term lets. The remaining rooms (75) are direct let on a 46 week term basis. PROPOSALS Offers are invited in excess of 10,400,000 (Ten Million Four Hundred Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level reflects a Net Initial Yield of 6.25%, allowing for purchasers cost of 4.80%.

CONTACTS For access to the data room please contact one of the following: Contacts Mike Mitchell Tel: +44 (0)161 455 3797 Mob: +44 (0)774 700 8440 Email: Mike.Mitchell@cushwake.

12 CONTACTS For access to the data room please contact one of the following: Contacts Mike Mitchell Tel: +44 (0) Mob: +44 (0) Russell Hefferan Tel: +44 (0) Mob: +44 (0) Katherine Almond Tel: +44 (0) Mob: +44 (0) MISREPRESENTATION ACT: Cushman & Wakefield gives notice that: These particulars are set out as a general outline only for the guidance of intending purchasers or lessees, and do not constitute any part of an offer or contract. Details are given without any responsibility, and any intending purchasers, lessees or third parties should not rely on them as statements or representations of fact, but must satisfy themselves by inspection or otherwise as to the correctness of each of them. No person in the employment of Cushman & Wakefield has any authority to make any representation or warranty whatever in relation to this property. Purchase prices, rents or other prices quoted are correct at the date of publication and, unless otherwise stated, exclusive of VAT. Intending purchasers and lessees must satisfy themselves independently as to the incidence of VAT in respect of any transaction relating to this property. Cushman & Wakefield in house brochure. Date of publication 26 th September 2017.

Prime Student Housing Investment Opportunity

Prime Student Housing Investment Opportunity S T U D E N T L I V I N G L I K E N O O T H E R Executive Summary. A unique opportunity to invest in a best in class student housing scheme completed in 2015.