High Yielding UK Student Accommodation Investment

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1 High Yielding UK Student

2 Highlights: Prime city centre and waterside location 8% NET per annum assured for 5 years 227 self-contained studios spread over 8 floors On-site facilities unrivalled on the local student market Delivered fully furnished Fully managed by Opto Studio Living Award-winning Developer with a proven track record 250-leasehold agreement 10-year NHBC Certification upon completion High demand location with over 50,000 students

3 Overview Opto Student Newcastle is a high yielding UK Student located in one of the country s most under supplied markets. Designed to address the lack of available high-quality student rooms, Opto Student Newcastle is strategically positioned to cater for Newcastle University and Northumbria University students and offers city centre, waterfront accommodation. With a selection of highly desirable on-site facilities, Opto Student Newcastle is set to become one of the most desirable student accommodation buildings in the city. Secured income 8% NET per annum assured for 5years Fully managed Established managed company manages your property on your behalf Rooms delivered fully furnished Proven returns Delivers a long-term and robust income stream Hotspot location for student property investment

4 Facilities Gym Games Room Courtyard Cinema Room Outdoor Seating Areas Roof Terrace with River Views Communal Kitchen with Dining Rooms Outhouse for Events Laundry 24/7 CCTV On-site Management Secure Fob Lock Access

5 Why invest in UK student property? With the sector recording average occupancy levels of 99%, student property provides exceptionally reliable income An impressive 505,680 students were placed in full-time UK higher education through UCAS in August 2017 Student property has proven resilient to market fluctuations throughout history With a proven track record of returns and strong demand from students, 2017 witnessed an impressive 5.3 billion investment into the sector Applications from international students exceeded 100,000 for the first time ever in 2018 (UCAS) Around 43,500 EU student applied for places at UK universities in 2018 up 3% from 2017 (UCAS) UK Purpose Built Student Accommodation (PBSA) is highly attractive to international investors There is still room for growth. Only a fifth of students live in university-owned PBSA.

6 Self-contained studios from 81,250 Investment options: Option one: Option two: Pay 5,000 to Reserve a property Pay 25% less the Reservation Fee on Exchange of Contracts (28 days after Reservation) Pay 25% due on 1 st October 2018 Pay 25% due on 31 st January 2019 Pay 25% upon Completion Pay 5,000 to Reserve a property Pay 40% less the Reservation Fee on Exchange of Contracts (28 days after Reservation) Pay 40% due on 1st October 2018 Pay 20% due on Completion 2% interest on deposited funds Payment plan Self-contained studio apartments within Opto Student Newcastle will be sold on a leasehold basis for a period of 250-years. Additional Legal Fees A team of commercial solicitors, experienced in the UK s student buy-to-let market, have been appointed to act on the behalf of investors. Legal fees are estimated to be between 860-1,100 fully inclusive of VAT, searches and disbursement costs.

7 5-year investment scenario Conservative Purchase Price 81,250 8% annual NET income for 5 years 6,498 NET income over 5 years 32, % uplift on Purchase Price 10,166 Total income over 5 years 42,654 ROI % over 5 years 52.50% Annualised NET ROI 10.50% *Please note financials are for indicative purposes only and may be subject to change Rental income is assured at 8% for 5 years, NET of all costs. Capital uplift based on yield compression assuming a conservative 3% rental inflation per annum.

8 Location St James Stadium 1.2 MILES Train station 0.8 MILES City Centre 0.8 MILES Newcastle University 1 MILE Sage Gateshead arena 0.6 MILES Northumbria University 0.4 MILES Quayside 0.2 MILES With a total of 50,000 students, the development is perfectly positioned to cater to the shortfall of 28,035 students (64.6%) who are unable to access university or private sector student accommodation. City Centre location Excellent transport links and walking distance to all local attractions and amenities. Newcastle University Approx min walk from the development. Northumbria University 5 min walk from the development. Quayside Located in the trendy waterfront and next to vibrant waterfront vibrant bars, restaurants and coffee shops. City Centre The development is a short walk from the city centre and the main train station. Close to the world-famous Gateshead Millennium Bridge and the Sage Gateshead waterfront concert venue.

9 A Global University City Around 50,000 students International students account for 15% of all students 4% annual climb in student rents 2 world-class universities (Newcastle University and Northumbria University) Newcastle named the best location in the UK for student nightlife in % rise in applications from students to study in Newcastle in 2017 Student numbers up by 70% at Newcastle University ( ) Student numbers up by 110% at Northumbria University ( ) 28,035 students (64.6%) unable to access university or private sector Since 2007, applications to Newcastle higher education institutions have risen by 27.7%, from 47,965 in 2007 to the 61,235 figure recorded in 2016 Newcastle University is given an overall ranking of 22nd in the Times Good University Guide 2018, up from 23rd place in For every place there are 6.5 applications The University of Northumbria is given an overall ranking of 65th in the Times Good University Guide For every place there are 5.6 applications The universities in Newcastle have 43,390 students but are only in a position to offer 8,906 students accommodation in halls of residence or bedrooms under nomination agreements. This represents just 20.5% of the full-time student population, illustrating an undersupply, Knight Frank.

10 FAQs Who is the Developer? The award-winning Opto Property Group is the Developer behind the project. Opto Property Group has successfully delivered a number of high quality student accommodation projects, commercial and residential developments. The company has delivered over 800 purpose-built student units across three developments and has a proven track record in delivering high quality projects on time and on budget. Who is the Management Company? Upon completion, each studio within the development will be fully managed by Opto Student Living. The company will maintain and manage the investment, in its entirety, on the behalf of investors. Boasting a 4.2 star ranking on Google Reviews, Opto Living is a specialist student property management company that has been successfully operating since 2014.

11 What is the address of the development? Opto Student, Newcastle, 85 City Road, Newcastle, NE1 2AQ. yield is assured for 5 years at 8% NET. We estimate the yield will increase over time, in line with market inflation. You can sell your unit at any time to another investor through a UK or overseas agent. Is there a rental assurance in place? Yes. 8% NET rental return is assured for the first 5 years of the investment. Is there a benefit for buying into the project in the early off plan stages? Early investors will have the choice of the best units within the project and will be able to purchase a self-contained studio apartment at the best possible pricing. What is the length of the leasehold? Each self-contained studio apartment is sold on a 250-year leasehold. Can I sell my unit/s at any time? Investors are permitted to sell at any time after Completion. Is there an exit strategy? The UK s student accommodation market is fairly young therefore there have not been many resales on the market. As the investment offers such a high yield, we envisage that most investors will want to hold onto their investment long-term. The Is the sale handled by UK lawyers? Yes. A team of commercial solicitors, experienced in UK student property investment, have been appointed to act on the behalf of investors. As a non-resident in the UK am I taxed on this income? If you are a UK resident then yes, you will be subject to tax. If you are a non-resident in the UK, then you are classed as an overseas landlord and may apply to HMRC in the UK for exemption. Please note we cannot guarantee that an application to receive rent with no tax deductions will be accepted. When will the development complete? The target completion date has been scheduled for Q The development is already under construction.

12 Is there a warranty in place? Yes, the development will be completed to highest standard and, upon completion, will have a 10-year NHBC warranty. When will the development be occupied and when will I receive my income? The apartments will be let out by the date of completion and the assured yield will be paid from this date, quarterly in arrears. What happens at the end of the 5-year rental assurance period? Is there furniture included in the price of the apartment? Yes, all studio apartments within the development will be delivered fully furnished and ready to let. At the end of year 5, investors will have the option to continue managing the unit through Opto Living. Investors will be responsible for the payments of the Management Fee, Ground Rent and Service Charge. After the assured period, investors can manage the unit themselves or appoint another management company.

13 Our Team Kevin Dickins CEO Kevin has been involved in the acquisition and sale of UK investment property for over 12 years, overseeing 1200 property transactions in this time. Kevin has a portfolio of UK buy to let properties throughout the UK including Salisbury, Manchester, Newcastle, Surrey and Nottinghamshire. He is passionate about investors educating themselves to ensure they understand their genuine net investment returns rather than making speculative property investments. Harvey Mills Head of Sales Harvey, a former Martin and Co director, has worked in the property industry for over 30 years. As well as being our Senior Sales Advisor, he also oversees our property management business and planning consultancy matters. Patricia Hakong Finance Director Patricia Hakong is a Chartered Accountant, with extensive experience in finance, risk management, and regulatory compliance in the general insurance and financial services sector. Her main areas of focus in the last 15 years have included management, financial and regulatory reporting; risk management; internal audit; catastrophe loss modelling; and capital setting, principally in the Lloyd s market. Gareth Frampton Head of Operations Gareth has been involved in Broadgate since its incorporation in His main areas of focus are due diligence, sales progression, marketing and finance. He previously worked with financial advisors Edward Jones. Patricia Dickins Marketing Patricia has worked in property investment marketing for 9 years. She compiles our brochures and looks after our website.

14 High Yielding UK Student Head Office: Tel: London Office: Tel: Whilst the utmost has been done to verify the contents of any printed or electronic formatted document, they have no authority to make or give any representations or warranties in relation to any property. Any particulars provided do not form any part of an offer or contract and must not be relied upon as statements or representations of fact. Any areas, measurements or distances are approximate. Any text, photographs and plans are for guidance only and are not necessarily comprehensive. Purchasers must satisfy themselves by survey or otherwise. Any particulars or plans provided are prepared from preliminary plans and specifications before completion of the properties and are intended only as a guide. They may have changed during construction or finishes could vary. Prospective purchasers should not rely on this information but have their solicitor check the plans and specifications attached to their contract. The Purchaser understands that this does not form a contract of purchase and that all purchase contracts will be provided by the vendor to the Purchaser s solicitor. Any reservation fee required is non-refundable and reserves the property until the date of exchange outlined by the vendor. Should the purchaser not be seen to be making fair and reasonable progress to exchange on the date set the Purchaser understands that the vendor may re-offer the property to the open market and the reservation fee will remain nonrefundable. The purchaser understands exchange and completion deposits are payable to his/her solicitor, that property values can decrease as well as increase and that rental income achieved may not always match that predicted.