DEVELOPMENTS. Regional Student Investment Portfolio BRISTOL BATH

Transcription

1 DEVELOPMENTS Regional Student Investment Portfolio BRISTOL BATH

2 CONTENTS Executive Summary Investment Summary Summary Property Schedule Portfolio Bristol Properties 1A Ambra Vale Creswicke House Jacob s Brewery William Canynge House 140A Whilteladies Road Cumberland Street Bath Properties Nautica & The Bath Sea Cadets Additional Dataroom Information Rengen Collection Contact Details 3

3 EXECUTIVE SUMMARY Rengen Developments is a multi-disciplinary property developer, which focuses on sites in the South West of England. Our comprehensive range of multi-sector delivery in the UK property markets, provides a strong position from where we explore opportunities and create value in our work and the work we do for our purchasers. IESTYN LEWIS CHIEF EXECUTIVE OFFICER

4 INVESTMENT SUMMARY A rare opportunity to acquire a part mature part forward commitment of a high quality regional purpose built student portfolio located in Bath and Bristol. The two university cities are currently ranked as follows; Bath University 12th, Bristol University 19th, University of West England 60th, Bath Spa University 75th. The portfolio comprises seven assets providing a total of 276 beds and three commercial units. 177 beds are income producing and the balance of 99 beds will be completed, fully let and income producing by September If necessary, the vendors propose to top up the rent on the unfinished assets. The portfolio has been efficiently managed in house by the vendors who are offering a 5 year management agreement based on 16% of the gross income. The agreement is to include marketing and letting activity and building management. It will not include maintenance costs and outgoings such as utilities and rates etc. The portfolio s gross income in September 2017 will be 2,068,584 per annum. The portfolio net income in September 2017 will be 1,762,181 per annum. We are seeking offers in excess of 27,520,000 for the freehold interest in all seven assets This represents a net initial yield of 6% after deduction purchasers costs of 6.72%. All properties held Freehold with the exception of William Canynge House on a 150 year lease granted in March

5 CURRENT ASSETS City Address Completion date Tenure No. of Beds Av rent per bed/week Total gross student income - 52 weeks 100% occupancy Commercial income Total gross income Operational of gross Student income Net income 1 Bristol Ambra Vale 1A Ambra Vale, Cliftonwood 2011 Freehold , ,712 15, ,398 2 Bristol Creswicke House, 9 Small Street 2014 Freehold ,300 50, ,300 45, ,652 3 Bristol Jacob's Brewery 19 Jacobs Wells Road, Clifton 2013 Freehold , ,236 38, ,478 4 Bristol William Canynge House, Redcliff House 2016 Freehold ,848 72, ,848 51, ,672 SUMMARY PROPERTY SCHEDULE 5 Bristol Whiteladies 140a Whiteladies Road, 2013 Freehold , ,100 28, ,444 TOTAL 177 1,122, ,000 1,244, ,551 1,064,645 DEVELOPMENT ASSETS City Address Completion date Tenure No. of Beds Av rent per bed/week Total gross student income - 52 weeks 100% occupancy Commercial income Total gross income Operational of gross Student income Net income 6 Bristol Cumberland Street Cumberland Street Sep-17 Freehold ,900 31, ,400 89, ,976 7 Bath Sea Cadets, 30 St Johns Road, Bathwick Sep-17 Freehold , ,000 37, ,560 TOTAL ,900 31, , , ,536 TOTAL ,915, , ,500 31,500 2,068, , , ,415 1,762, ,536 TOTAL 276 1,915, ,500 2,068, ,415 1,762,181 8

6 PROPERTIES BRISTOL BATH

7 BRISTOL PROPERTIES CITY HIGHLIGHTS 1 Bristol is the 5th largest conurbation in the UK and the capital of the South West. It has an estimated population of around 550,000 and a larger urban zone with an estimated 1.6 million residents. Bristol is amongst the most attractive, successful and culturally prestigious cities in the UK, enjoying a rising profile within Europe and beyond. Destination London Paddington Birmingham New Street Cardiff Swindon Reading Ambra Vale Jacob s Brewery Creswicke House William Canynge House 140a Whiteladies Road Cumberland Street Travel time 1 hours 39 minutes 1 hour 23 minutes 52 minutes 34 minutes 1 hour 10 minutes 5 6 STUDENT POPULATION 4 Bristol boasts two major universities, The University of Bristol and The University of West England (UWE). Bristol has 38,335 full time students at its two institutions and there are 9,707 bedrooms in university halls of residence. The private sector only provides an additional 1,485 beds which creates a structural undersupply of accommodation with in excess of 27,000 (71% ) of students unable to obtain purpose built accommodation in the City The University of Bristol is a member of the prestigious Russell group of Universities and is ranked 19th in the sector by the Times Good University Guide The University is highly regarded and has 8.2 applicants per place and a total of 17,620 full time students, of which 15% are international students. The University of the West of England is ranked 60th in the sector by The Times Good University Guide 2017 and has 4.5 applicants per place. The University has 20,715 full time students, of which 8% are international students. 12

8 1A AMBRA VALE, CLIFTONWOOD 1a Ambra Vale provides smart and contemporary student accommodation in the sought after BS8 area of Bristol. The development comprises five spacious no. 3 and no. 4 bedroom apartments finished to a high standard. Ambra Vale was completed in 2011, the development is situated near to Clifton Village and Bristol s famous floating harbour. ACCOMMODATION SCHEDULE 2017/2018 Type of Rent per Gross No of Type No. of weeks Accommodation Week Income Cluster Flats , TOTAL , *RENTS EXCLUSIVE OF BILLS - the Tenants pay for all Utilities themselves excpe 14

9 CRESWICKE HOUSE, 9 SMALL STREET Located in the heart of Bristol City Centre, close to Corn Street, Christmas Steps and Harbourside. Sympathetically converted period building completed in 2015, providing 2,765 sqft of commercial space with 36 studio apartments above. ACCOMMODATION SCHEDULE 2017/2018 Type of Gross No of Type Rent per Week No. of weeks Accommodation Income Studio Apartments , TOTAL , Commercial tenancy 2016/2017 Floor Tenant Floor Area Lease Term Term Start Term End Break Option Rent Review Rent Passing (pa) 2017/2018 Ground 3 march 2021 every Café Vero 764 sqft 15 years 02/03/ /03/2031 nil 5th yr after 16,500 16, Ground Vacant 1761 sqft TWO YEAR RENT COVER 33, TOTAL 2525 sqft 50, RENTS INCLUSIVE OF BILLS TOTAL 50,

10 JACOB S BREWERY, CLIFTON Located off Jacob s Wells Road close to Brandon Hill, Clifton Village and Park Street. A part new build and part refurbished development completed in Arranged over ground and three upper floors to provide a total of 40 student beds. ACCOMMODATION SCHEDULE Type of Accommod ation No of Type 2017/2018 Rent per Week No. of weeks Gross Income Cluster Flats , TOTAL , *RENTS ARE EXCLUSIVE OF BILLS 18

11 WILLIAM CANYNGE HOUSE, REDCLIFF Located in the Redcliff Quarter in the heart of Bristol opposite the brand new 180m 600,000 sqft Redcliff Quarter currently under construction. The property was converted in 2014 and comprises a four storey brick built building under a mansard roof with ground floor offices of 3,901 sqft and cluster beds above. ACCOMMODATION SCHEDULE Type of Accommod ation No of Type 2017/2018 Rent per Week No. of weeks Gross Income Cluster Flats , TOTAL , Commercial tenancy Floor Tenant SQFT Lease Term Term Start Term End Rent Passing (pa) Ground Integreon Mar-15 Mar-18 47,000 Ground Iesis Mar-15 Mar-18 25,000 TOTAL ,000 TOTAL 72, *RENTS ARE EXCLUSIVE OF BILLS 20

12 140A WHITELADIES ROAD, CLIFTON Located in Clifton, close to the Downs and in the heart of the cafe, bar and pub locality of Whiteladies Road. A conversion completed in 2014 to provide 27 cluster flats and 2 studio apartments. ACCOMMODATION SCHEDULE 2017/2018 Type of Accommodation No of Type Rent per Week No. of weeks Gross Income Cluster Flats , Studio Apartments , TOTAL , *RENTS ARE EXCLUSIVE OF BILLS ON THE CLUSTER FLATS - THE 2 NO STUDIOS ARE INCLUSIVE 22

13 CUMBERLAND STREET, BRISTOL The site is located on Cumberland Street in Bristol, adjacent to Cabot Circus. The development comprises 81 student beds and 21 car parking spaces on the lower ground floor. This period building is currently being comprehensively redeveloped for occupancy in September ACCOMMODATION SCHEDULE 2017/2018 Type of Accommodation Cluster Flats TOTAL 81 Rent per Week Tenant No of Type 52 Gross Income 558, ,900 SQFT Lease Term Term Start No. of weeks Commercial tenancy Floor LOWER GROUND FLOOR PARKING Term End 5000 Break Option Rent Review Rent Passing (pa) 31, Spaces TOTAL 590,400 24

14 BATH PROPERTY CITY HIGHLIGHTS Bath is a historic city and is one of the strongest retail and leisure centres in the UK. The city is designated by UNESCO as a World Heritage site and is widely regarded as one of the most attractive cities in Europe. Bath is a vibrant and cosmopolitan place to live and work and is world famous for its Georgian architecture and Roman Baths. Bath has a district population of 176,015 persons (2011 Census) and a primary catchment of 450,000 persons (source Promis). Destination Travel time London Paddington 1 hours 33 minutes Bristol Temple Meads 12 minutes Swindon 27 minutes Cardiff 1 hour 7 minutes Exeter 1 hour 12 minutes 1 Nautica & The Bath Sea Cadets 1 STUDENT POPULATION Bath is recognised as a UK creative hotspot and has recently been acknowledged as the most productive digital tech cluster in the UK by Tech City. Bath is an established university city, with two universities: Bath University and Bath Spa University. The University of Bath is currently ranked 12th by the Times Good University Guide 2017 and The University of Bath is expected to grow from 14,000 students to 19,300 by 2020/21. Bath Spa University is spread over 4 campuses throughout Bath and North East Somerset. It is expected that the number of students studying at Bath Spa will increase from 6,632 to 10,500 over the next 4 years. It was ranked 5th most creative university in a University Student Survey during 2015 and ranked 75th by the Times Good University Guide

15 NAUTICA & THE BATH SEA CADETS This scheme comprises 18 luxury student studio apartments, located in the centre of Bath. All studios are single occupancy only and will be ready for occupation at the end of September This development is also home to The Bath Sea Cadets HQ, the development includes a brand new facility for the Cadets on the ground floor, sold off on a freehold basis. ACCOMMODATION SCHEDULE 2017/2018 Type of Rent per Gross No of Type No. of weeks Accommodation Week Income Studio Apartments ,000 TOTAL ,000 *RENTS ARE INCLUSIVE OF BILLS 28

16 ADDITIONAL INFORMATION EPC s EPC s for all properties are available on request MANAGEMENT The existing portfolio is managed directly by the vendors. They have a well established management platform that runs the entire portfolio. The existing portfolio costs run at less than 11% of gross income or less. If the successful purchasers require, the vendors will continue to run the existing portfolio under a separate management contract. The management cost platform would be 16% per annum, guaranteed for the first five years after purchase. Similarly, the vendors will commit to a management platform for the development stock for five years, again based on 16% of gross income. A full breakdown of existing management costs is available for review. DATA ROOM A full data room with planning documents, floorplans, EPC s, etc will be available upon request. PROPOSAL Offer in excess of 27,520,000 are sought for the entire portfolio. A purchase at this level will reflect an initial yield of 6% after deduction for purchaser costs. 30

17 the rengen collection Rengen is a multi-disciplinary property developer, which focuses on sites in the South West of England. Our comprehensive range of multi-sector delivery in the UK property markets, provides a strong position from where we explore opportunities and create value in our work and the work we do for our purchasers NAUTICA, BATH 2 RADWAY HOUSE, BATH 3 JACOB S BREWERY, BRISTOL 4 THE BRASSWORKS LOFTS, BRISTOL 5 WIDCOMBE WHARF, BATH 6 SOUTHAMPTON BUSINESS CENTRE 7 CUMBERLAND STREET, BRISTOL 8 THE CHAPEL, BATH 9 AMBRA VALE, BRISTOL 10 THE EXCHANGE, BATH 11 CANAL BRIDGE, BATH 12 WILLIAM CANYNGE HOUSE, BRISTOL 13 CRESWICKE HOUSE, BRISTOL 14 LONGBROOK STREET, EXETER 15 PICCADILLY PLACE, BATH

18 DEVELOPMENTS Alex Upson Tel: +44 (0) Gregor Wallace Tel: +44 (0) Darren Sheward Tel: +44 (0) Hollie Ruddle Tel: +44 (0) Simon Eddy Tel: +44 (0) Subject to Contract and Exclusive of VAT Lambert Smith Hampton June 2017 Disclaimer: Lambert Smith Hampton Group Limited and its subsidiaries and their joint agents if any ( LSH ) for themselves and for the seller or landlord of the property whose agents they are give notice that: (i) These particulars are given and any statement about the property is made without responsibility on the part of LSH or the seller or landlord and do not constitute the whole or any part of an offer or contract. (ii) Any description, dimension, distance or area given or any reference made to condition, working order or availability of services or facilities, fixtures or fittings, any guarantee or warrantee or statutory or any other permission, approval or reference to suitability for use or occupation, photograph, plan, drawing, aspect or financial or investment information or tenancy and title details or any other information set out in these particulars or otherwise provided shall not be relied on as statements or representations of fact or at all and any prospective buyer or tenant must satisfy themselves by inspection or otherwise as to the accuracy of all information or suitability of the property. (iii) No employee of LSH has any authority to make or give any representation or warranty arising from these particulars or otherwise or enter into any contract whatsoever in relation to the property in respect of any prospective purchase or letting including in respect of any re-sale potential or value or at all. (iv) Price or rent may be subject to VAT and any prospective buyer or tenant must satisfy themselves concerning the correct VAT position. (v) Except in respect of death or personal injury caused by the negligence of LSH or its employees or agents, LSH will not be liable, whether in negligence or otherwise howsoever, for any loss arising from the use of these particulars or any information provided in respect of the property save to the extent that any statement or information has been made or given fraudulently by LSH. (vi) In the case of new development or refurbishment prospective buyers or tenants should not rely on any artists impressions or architects drawings or specification or scope of works or amenities, infrastructure or services or information concerning views, character or appearance and timing concerning availability or occupation and prospective buyers or tenants must take legal advice to ensure that any expectations they may have are provided for direct with the seller or landlord and LSH shall have no liability whatsoever concerning any variation or discrepancy in connection with such matters.