ORME HOUSE 9% NET P.A. ASSURED FOR 5 YEARS NEWCASTLE-UNDER-LYME, UK MODERN ONE-BED STUDIOS & TWO-BED APARTMENTS FULLY-MANAGED AND HANDS-OFF INVESTMENT

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1 ORME HOUSE NEWCASTLE-UNDER-LYME, UK 9% NET P.A. ASSURED FOR 5 YEARS MODERN ONE-BED STUDIOS & TWO-BED APARTMENTS FULLY-MANAGED AND HANDS-OFF INVESTMENT 5% INCOME DURING BUILD

2 Summary Orme House is a brand new investment opportunity in the UK Purpose Built Student Accommodation (PBSA) sector, giving investors an opportunity to purchase a fabulous income-generating asset. The development comprises 102 modern self-contained one-bed studios and two-bedroom apartments, which will be complete to a high standard and will be delivered fully furnished. Part of the development is a beautiful listed school building and a new build block. Each studio will feature a kitchenette and an en-suite bathroom and is available from just 69,999. Payment is spread throughout the build and, what s more, 5% interest will be paid on your deposited funds until the build is complete. The development will serve the accommodation requirements of students studying at both Keele and Staffordshire Universities. With a huge shortage of quality, self-contained accommodation in the area, Orme House is set to deliver a unique and unrivalled option for students at an incredibly competitive price. Particularly popular with international students and postgraduates, Orme House provides first-class living standards coupled with a full range of facilities and communal meeting spaces. Receive a passive income from the UK s number 1 asset class. 9% NET ASSURED FOR 5 YEARS PURCHASE PRICE 69,999 GROSS RENT 8,050 MANAGEMENT 1,350 GROUND RENT 400 NET INCOME 6,300 NET YIELD 9% THE INVESTMENT IS INCOME GENERATING FROM DAY ONE WITH INTEREST PAID ON DEPOSITED FUNDS. UPON COMPLETION YOU WILL RECEIVE 9% ANNUAL NET RETURNS FOR 5 YEARS. No finders fee Receive 9% NET per annum assured for 5 years Premier self-contained one-bed studios available from 69,999 5% interest paid on deposited funds 125 year leasehold Fully-managed, hands-off investment Perfect town centre location close to two major universities

3 About student property How assets compare Total returns per for the year to September % 7% 6% 5% 4% 3% 2% 1% 0% Student All property Retail Office Industrial Growth of the sector 3.24% RENTAL RETURNS 3% RISE IN RENTALS SEPT % RENTAL RETURNS 4% RISE IN STUDENT NUMBERS SEPT 2014 Student property is the perfect addition to any portfolio. With no cap on the number of students who can study in the UK and with numbers forecast to increase by 15% - 20%, it is a true long-term income-generating asset. Placed with traditional buy-to-let property, the sustainably high yield and hands-off qualities of student accommodation make it perfect for paying down other geared properties and keeping as an asset throughout retirement. KNIGHT FRANK S PROPERTY INDEX SHOWS THAT TOTAL RETURNS FROM STUDENT ACCOMMODATION HAS OUT PERFORMED EVERY OTHER PROPERTY ASSET CLASS SINCE 2011 Student property continues to remain one of the best performing property sub-classes of the last 20 years. Its resilience to cyclical economic patterns has created a platform for investors of continued risk-aversion during the economic downfall: as student property values have stayed the same or increased, the number of accommodation spaces available to students is still failing to keep up with the growth in applications. With international student mobility constantly increasing and new legislation limiting the amount of approved HMO (houses of multiple occupancy), purpose-built student property is proving to be a reliable source for secure investments. In recent years, the demand for student accommodation has changed significantly. Students want to live and study in an environment which will support their chances of successfully obtaining their degree, they want to ensure their university experience is the best it can be and will no longer settle for below average living conditions. Orme House meets specific market demands and provides first class facilities within a convienient and modern, student accommodation environment. STUDENT NUMBERS

4 Location Orme House is in Newcastle-Under- Lyme s town centre and is just a short walk from the shopping centre, public transport, banks, bars, cinema and supermarkets. A few minutes to Stoke-on-Trent, the location is within easy reach of the city s many attractions. Boasting a premiership football club, famous attractions such as the Wedgwood museum and Alton Towers, there will never be a dull moment in the life of these students! Keele University 5 mins Staffordshire University 10 mins Royal Stoke University Hospital 10 mins Shopping Centre 2 mins Supermarket 1 min Town Centre 1 min National Rail Station 10 mins Orme House provides the luxury of being central to the town but also is within just 5 or 10 minutes from each of the two Universities of Keele and Staffordshire. SHOPPING CENTRE NEWCASTLE-UNDER-LYME ORME HOUSE STAFFORDSHIRE UNIVERSITY With a scarcity of new, quality accommodation, this already well developed town offers the perfect environment for investors in Orme House. KEELE UNIVERSITY ROYAL STOKE UNIVERSITY HOSPITAL SUPERMARKET H STOKE-ON-TRENT

5 The Universities KEELE Copyright Naked Eye Travel 7,700 students 11% of students are from outside of the UK Ranked 41 out of 119 (Guardian University Guide) There are currently 8 applications per university space Ranked 44 out of 121 in the Times Good University Guide Copyright Steven Birks used under Creative Commons Licence STAFFORDSHIRE 20,000 students 13% of students are from outside of the UK Two campuses, one in Stoke-on-Trent and one in Stafford Computing and entertainment technology degrees to move to Stoke-on-Trent Ranked in the Times Good University Guide

6 Specification One-bed studio Double bed Desk, chair, wardrobe, night-stand Sofa High specification kitchen Modern en-suite bathroom Two-bed appartment Double bed in each room Desk, chair, wardrobe, night-stand each Sofa High specification kitchen Modern, shared bathroom

7 Communal areas Communal lounge Reception area including DDA compliant reception desk with associated staff facilities, deliveries room and individual student post boxes Study room Gymnasium Laundry facilities General/cycle store

8 Management Company URBAN STUDENT LIFE IS ONE OF THE LEADING STUDENT ACCOMMODATION MANAGEMENT COMPANIES IN THE UK. USL is a complete, independent, full-service property development and management targeted at the student accommodation, PRS and educational sectors. We aim to provide cost-effective solutions in an uncomplicated manner that will allow our clients to achieve performance, investment return and sustainable quality. We aim to deliver results across a range of services within the student accommodation and wider educational sector. Our core activities are agency services (finding properties and end users), technical services (delivering properties) and operational and financial services (managing properties to optimise the potential developments). OPERATIONAL MANAGEMENT At Urban Student Life, we can provide full management services for any student accommodation property. This is supported by sales and marketing expertise targeted at the international student sector on both short and longer-term courses, providing greater opportunities to yield manage the property and thus produce higher returns. Reception and administrative duties Enrolment of student wardens to support site-based teams Checking in and out of all students at the beginning and end of tenancies Inventory management Apartment inspections, deep cleaning, repairs, renewals and redecorations Cleaning and maintenance of common areas and shared facilities Reservation and contract administration Security and emergency management Solving students occupational needs and issues Day-to-day marketing Overseeing summer lets Control of rental voids and bad debts including legal action where necessary

9 The Developer We are Abode. We deliver exceptional, contemporary design with an unrivalled level of finish. We create accommodation that consistently raises the bar, guaranteeing that it is always in demand and more than capable of providing a return on your investment. Our 35 years of experience in the construction and development industries perfectly equip us to design and deliver successful property in the commercial, residential, retail and student sectors. Our high standards in both construction and specification are the foundation of everything that makes Abode successful. It is these aspects that first draws clients to us, but it is our actual day to day work ethic and approach that makes sure that your every expectation is exceeded Ashley Ladson, Director Ashley graduated from Sheffield University with a degree in Mathematics and Management. He has 15 years experience as a developer main contractor, working across all main sectors including residential, retail, listed refurbishment projects and new build developments. Having worked his way up from site manager to lead roles, Ashley has experience from the bottom upward on construction and development projects.

10 F.A.Q. What type of development is it? The development is a conversion of a Grade 2 listed building and adjacent new build. The location is very central to two leading universities providing an unrivalled accommodation option. When will the building be completed? Orme House is due to complete in September 2018 What are the projected annual returns? There is a five year assurance of 9% net yield. This is because after the five year period, the developer can be certain that the development will be fully tenanted, due to the high demand and attractive proposition to potential tenants. After the three year period the rental income should continue at the same rate, if not increase, which will see the yield stay the same, or best case scenario, increase. Are there any restrictions if I want to sell? No. Once you have completed on the purchase and you have the legal title deed, you would be free to sell your unit on the open market at any time in the future. Most investors however usually hold on to their student property for the long-term as it provides a very high level of income for minimum effort. What security is offered on my investment? Deposit monies are held in escrow until draw down on build. If for any reason the development is not ready for the 2018 intake a 5% interest is paid on all your deposited funds until completion. Are these units classified as students pods? No. All the units are self-contained studio apartments, and you will receive a Full Title Deed and you will be the owner of the property. Am I buying as freehold or leasehold? 125 years leasehold. What is the development address? Orme House, The Orme Centre, Newcastle-under-Lyme, ST5 2RP Does the assured rent exclude the ground rent? Yes, excluding ground rent, this is 400 per annum.

11 Purchase process Your investment agency will assist you through the purchase process and can recommend a solicitor to act on your behalf and carry out the property conveyancing. You are free to appoint your own solicitor, however in our experience the purchase process is far smoother and faster when using a recommended independent solicitor who is familiar with the product. 1 After a full consultation process with your property advisor, a unit will be selected. They will then prepare and send to you a reservation form for you to duly check, sign and return, accompanied with a reservation fee of 5,000, a copy of your photo ID and proof of residency i.e. a utility bill or bank statement (no older than 3 months old). Payment plan 1 2 5,000 RESERVATION DEPOSIT 50% VALUE OF PURCHASE PRICE On exchange of contract (within 28 days) 2 Both parties solicitors will be instructed and a legal contracts pack will be issued to your solicitor for review. 3 The contracts are sent to you for signature and at this time your solicitor will ask for the outstanding balance of purchase monies to be paid into their client account. 3 25% VALUE OF PURCHASE PRICE Half way through build programme 4 Upon receipt of your signed documents and balance of purchase monies, exchange and completion can take place. Your solicitor will then attend to registration formalities with land registry. This process should take no longer than 28 days. Contact your sales adviser for full details, floor plans and reservation form. 4 REMAINING BALANCE on completion of the development BUYERS RECOMMENDED SOLICITOR Kam Singh & Mohamed Amir Patel DWS Legal Friar Lane, Leicester, LE1 5RA Phone: (Option 0) SELLER S SOLICITOR David Frankland DWF LLP 1 Scott Place, 2 Hardman Street, Manchester M3 3AA Phone:

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