CITY VIEW JESMOND ESKDALE TERRACE, JESMOND NEWCASTLE UPON TYNE, NE2 4DY REFURBISHED STUDENT ACCOMMODATION INVESTMENT IN THE HEART OF VIBRANT JESMOND

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1 ESKDALE TERRACE, JESMOND NEWCASTLE UPON TYNE, NE2 4DY REFURBISHED STUDENT ACCOMMODATION INVESTMENT IN THE HEART OF VIBRANT JESMOND

2 INVESTMENT CONSIDERATIONS Newcastle is the largest City in the North East Situated in Jesmond, Newcastle s most affluent and vibrant residential suburbs Jesmond is first choice location for students in Newcastle and 2 minutes walk to the vibrant Osborne Road Prominent position within an established prime student area, 13 minutes walk from Newcastle University, 11 minutes walk from Northumbria University and 2 minutes walk from Jesmond Metro Station Newcastle was described by the Times Good University guide as a magnet for students and boasts over 43,000 full time students Defensive asset class with alternative use and rental growth potential Tightly supplied market with 3.4 students per purpose built bed space Located close to excellent local amenities Comprises two recently refurbished student halls providing a total of 123 student units split between Block A (65 units) and Block B (58 Units) 55% prelet and under offer for the 2019 term Projected 2019 term Gross income of 725,704 per annum inclusive of rent, car park, utility and laundrette income Freehold We are seeking offers in excess of 9,250,000 (Nine Million Two Hundred and Fifty Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level would reflect a gross initial yield of 7.85% on the projected 2019/2020 income excluding purchaser s costs. Outline for identification purposes only.

3 JESMOND : UPMARKET & SOPHISTICATED Jesmond is the most expensive and upscale suburb of Newcastle and characterised by large, terraced, Victorian and Edwardian housing. The area is popular with affluent families attracted to Jesmond s two private schools, young professionals and students. The suburb includes the leafy Jesmond Dene Park known for its outstanding beauty including Jesmond Dene House a boutique luxury hotel restaurant. The area is well connected with three Metro Stations, providing public transport links to Newcastle City Centre and the rest of the region. Jesmond offers an excellent selection of independent fashion boutiques, jewellers primarily located on Acorn Road. Osborne Road is the famous hub of the action and has a thriving social scene including independent restaurants and cocktail bars providing an up market alternative to the clubs and bars of the city centre. There are three supermarkets, a Waitrose, Tesco Metro and Sainsburys a community library and swimming pool, complete with fitness suite and exercise classes and a number of specialist gyms.

4 DESCRIPTION Block A comprises an attractive period building built in the early 20th century split over four storey s and formed of solid red brick walls, Georgian style sash windows and a slate mansard roof. There is a car park to the rear of Block A which provides 11 car parking spaces. Block B is a modern block split over three floors and formed of red brick walls, upvc double glazing, beneath a flat roof. Both blocks have been tastefully refurbished to a high specification to include new electric central heating with smart radiators, kitchens, bathrooms, internal doors and a new flat roof on Block B. The scheme achieved practical completion in September Both blocks are directly managed by the in house management team. The building comprises a total 123 student units split between Block A (65 units) and block B (58 units). Block A provides a mix of studio and traditional flat rooms whilst Block B provides exclusively flat rooms. The studio rooms are spacious and arranged to provide internal bathrooms and kitchen facilities whilst the flat rooms provide communal bathrooms and kitchen facilities. There is a communal onsite laundrette located on the lower ground floor within Block A. On site amenities include: Fully furnished rooms High speed fibre broadband On site laundrette and bike storage facilities Secure resident s car park (11 car parking spaces) 24/7 emergency maintenance & helpline CCTV & Intercom entry In-house Cleaner and Janitor services Complimentary Sky TV package with 60 TV s in communal areas

5 NEWCASTLE CITY CENTRE MAP Exhibition Park Skateboard Park Great North Road Brandling Village Jesmond SUBJECT PROPERTY Heaton Park Medical School Royal Victoria Infirmary QUEEN VICTORIA ROAD CLAREMONT Great North Museum: Hancock ROAD BARRAS BRIDGE Haymarket ST MARY S PLACE SANDYFORD ROAD City Hall & Pool CENTRAL MOTORW AY A167 (M) Northumbria University Sport Central SANDYFORD ROAD PORTLAND ROAD STODDART STREET Jesmond Vale ESKDALE TERRACE Block A City View Jesmond ESLINGTON TERRACE Key: Main Line Station Metro Discovery Museum QuayLink Buses Newcastle College Newcastle United Football Club Newcastle University St James Business School Chinatown Coach Station SCOTSW OOD RD STOW ELL STREET Centre for Life LEAZES PAR K ROAD The Gate O2 Academy Newcastle Arts Centre Newgate Street Newcastle Central Station FORTH BANKS Haymarket Bus Station Eldon Garden Shopping Centre intu Eldon Square Shopping Centre Metro Radio economical capital Arena Grainger Town Old Newcastle Newcastle-upon-Tyne is the regional and of the North-East of England. C OLLINGW OOD ST Monument Theatre Royal ASKEW ROAD John Dobson Street Laing Art Gallery Grey Street DEA STREET MARKET ST SANDHILL Quayside City Campus East QUAYSIDE LOCATION NEW BRIDGE STREET MELBOURNE STREET BUXTON STREET Hillgate Quay CLARENCE STREET GIBSON STREET Baltic Gateshead Business The City benefits from Centre some 298,883 residents Quarter and forms part of the wider Tyneside conurbation. Newcastle is the North East s primary retailing, leisure and office destination and is located approximately 280 miles (451 km) north of London, 100 miles (160 km) north of Leeds and 109 miles (175 Trinity km) south of Edinburgh. Square Newcastle benefits from excellent transport links being located in close proximity to the A1 Jackson and A19, providing access to both the north Street and south Gateshead of the UK and the A69 connecting the City to Carlisle and Interchange Cumbria to the west. ASKEW RD PRINCE CONSORT RD Manors Quayside Manors Law Courts St. Mary s Heritage Centre SOUTH SHORE ROAD HIGH STREET Sandgate GATESHEAD Rail services are provided via the East Coast Mainline from Newcastle Central with quickest journey times to Sunderland, Edinburgh and Civic London Kings Cross of 19 minutes, 1 hour 27 minutes, and 2 hours Centre 0 minutes respectively. Newcastle International Airport is located 6 miles North West of the City Centre. STO DART ST Battle Field Gateshead Millennium Bridge Millennium Bridge Gateshead Quays Haw Road CRAW HALL ROAD BALTIC Centre for Contemporary Art Mill Road Marine Wharf PARK LANE City Road Northern Design Centre Ouseburn Toffee Factory Walker Road Hoults Yard Newcastle Preparatory School SITUATION Central Newcastle High School Crown Copyright, ES For identification purposes only. The property is situated in Jesmond, a prime student area within close proximity of Northumbria University (0.6 miles) and Newcastle University (0.7 miles). Jesmond Metro station (0.1 miles) is readily accessible from the subject property which provides regular services into Newcastle city centre. The area benefits from excellent local amenities with Osborne and Acorn Road home to a number of top national occupiers including Waitrose, Starbucks, Boots, Greggs, Pizza Express and many others. Leisure and sporting facilities nearby include Dene Park, Jesmond Cricket & Tennis Club which are all within comfortable walking distance of the subject property. Block B

6 Outline for identification purposes only. NEWCASTLE CENTRAL STATION HAMPTON BY HILTON NORTHUMBERLAND STREET (Prime retail pitch) MONUMENT MANORS MANORS STATION NATIONAL TRUST HOSPITAL EXHIBITION PARK & TOWN MOOR OSBOURNE ROAD (Amenities) JESMOND EASTON HALL NEWCASTLE CITY COUNCIL HAYMARKET INTU ELDON SQUARE RVI HOSPITAL ST JAMES PARK EAST PILGRIM STREET DEVELOPMENT GRAINGER MARKET CHINA TOWN ST JAMES NEWCASTLE UNIVERSITY BUSINESS SCHOOL

7 NEWCASTLE: A STUDENT CITY Newcastle-upon-Tyne is host to two leading universities: Newcastle University and Northumbria University. Combined, the two universities boast a full time student population of over 43,000 which has more than doubled in the past 15 years. The city has been named a magnet city for students by The Times Good University Guide with Newcastle University receiving 6.1 applications per place and Northumbria University receiving 5.1 applications per place. UNIVERSITY OF NEWCASTLE Newcastle University is the fourth largest employer in the North East. In terms of education, Newcastle University has received academic acclaim and is a member of the prestigious Russell Group that comprises the leading 24 universities in the UK and is ranked among the 150 best universities in the world. The university has recently introduced new courses, including Pharmacy, making it one of the few universities to offer this degree. Recent investment includes a 30 million extension of the sports centre which is due to open in 2020 as well as the 350 million Science Central project (in partnership with the City Council) homing National Innovation Centres as well as new lecture halls and student facilities. NORTHUMBRIA UNIVERSITY Northumbria University is the biggest university in the northeast of England, and it is investing 22 million in its city campus to improve the student experience, with a new Student Central Zone. The university has been ranked in the top ten British Universities and Colleges Sports league table for 5 years and has recently invested 30 million in its sports centre including a swimming pool, climbing wall and a 3,000 seat indoor area. In 2004, in recognition of the academic achievements of the two Universities, the UK government designated the City of Newcastle as one of six UK science cities.

8 Unique student investment located in the heart of Jesmond close to the vibrant Osborne Road Population in excess of 298,883 residents in Newcastle Upon Tyne. Northumbria University has invested 200 million in its city centre campus over the past ten years. A magnet for students and boasts over 43,000 full time students. Headline rental growth for purpose built student accommodation (PBSA) increased by 2.26% for the 2018/19 academic year. NATIONAL STUDENT MARKET In the UK, student accommodation as an asset class continues to perform well and increase in popularity. New investors have recognised the security of income and good rental growth that student accommodation offers. The sector is particularly resilient to ongoing macro-economic issues and remains robust in uncertain markets. This is highlighted by the continuing increase in purpose built student accommodation and new entry investors investing into the market. Fundamental to the sector s resilience is the growth in applicants looking to come to University from the European Union and the rest of the world. (UCAS, 2017/2018) NEWCASTLE OCCUPATIONAL DEMAND: STUDENT ACCOMMODATION There are approximately 15,000 purpose built student bed spaces in Newcastle upon Tyne split between the university and private ownership, with 3,700 currently under construction. Excluding the development pipeline, there are 3.4 students per PBSA bed space. Newcastle University has recently been involved in the 250 million Science Central project alongside the city council. Full Time Part Time Total Full Time Applications Per Place Newcastle University 22,245 1,550 23, Northumbria University 21,145 6,020 27, *PBSA Purpose Build Student Accommodation Total PBSA Beds Available Development Pipeline Students Per PBSA Bed Space 15,000 3,

9 ACCOMMODATION The property provides the following areas (GIA): Block A Floor Units per floor (sq m) (sq ft) Lower Ground ,090 Ground Floor ,688 First Floor ,688 Second Floor ,306 Total 65 2,580 27,771 Block B Floor Units per floor (sq m) (sq ft) Ground Floor ,660 First Floor ,660 Second Floor ,660 Total 58 1,020 10,979 The overall area (GIA) of the property is 3,600 sq m (38,750 sq ft). LETTING & MANAGEMENT Both blocks are fully occupied for 2018/2019 term producing a total of 579,024 p.a. Due to practical completion of the property in September 2018 the length of contracts was shortened to 43 weeks. The income for the September 2019 term reflects a 52 week term, utilities charge of 170 p.a. laundrette and car parking income. Traditionally student accommodation in Jesmond are 50% let by end of January, 75% by end of March and 100% by end of June. Presently, 55% of the rooms are pre-let and under offer for the 2019 term as per the projected income profile below. The table below sets out the projected income profile from 2019 / 2020 which has been broken down into rental income, laundrette income and car parking income. There are 11 car parking spaces of which 10 are let and one is used for staff purposes. Further information is available in the dataroom. Summary Income Breakdown Block A & Block B Gross 2019 Projected Income p.a. Block A Rent 394,680 Block B Rent 296,444 Utilities 20,910 Car Park 3,670 Laundrette 10,000 Total 2019 Income 725,704

10 TENANCY SCHEDULE - CITY VIEW - BLOCK A (sq m) Room Size (sq ft) Floor Level Gross Projected 2019/20 Rent p.a. (52 Week) Pre let & Under offer (sq m) Room Size (sq ft) Floor Level Gross Projected 2019/20 Rent p.a. (52 Week) Pre let & Under offer FLAT 9 (2 ROOMS) A Lower Ground 5,980 B Lower Ground 5,980 STUDIO APARTMENTS Lower Ground 7, Lower Ground 8, Lower Ground 7, Lower Ground 8, Lower Ground 8, Lower Ground 8,060 FLAT 1 (4 ROOMS) A Ground 5,980 B Ground 5,980 C Ground 5,980 D Ground 5,980 STUDIO APARTMENTS Ground 8, Ground 8, Ground 8, Ground 8, Ground 8, TBC TBC Annex* 8,840 FLAT 2 (8 ROOMS) A Ground 5,148 B Ground 5,148 C Ground 5,148 D Ground 5,148 E Ground 5,148 F Ground 5,148 G Ground 5,148 H Ground 5,148 FLAT 3 (7 ROOMS) A First Floor 5,564 B First Floor 5,564 C First Floor 5,564 D First Floor 5,564 E First Floor 5,564 F First Floor 5,564 G First Floor 5,564 FLAT 4 (8 ROOMS) A First Floor 5,460 B First Floor 5,460 C First Floor 5,460 D First Floor 5,460 E First Floor 5,460 F First Floor 5,460 G First Floor 5,460 H First Floor 5,460 FLAT 5 (7 ROOMS) A First Floor 5,564 B First Floor 5,564 C First Floor 5,564 D First Floor 5,564 E First Floor 5,564 F First Floor 5,564 G First Floor 5,564 FLAT 6 (7 ROOMS) A Second Floor 5,564 B Second Floor 5,564 C Second Floor 5,564 D Second Floor 5,564 E Second Floor 5,564 F Second Floor 5,564 G Second Floor 5,564 FLAT 7 (8 ROOMS) A Second Floor 5,460 B Second Floor 5,460 C Second Floor 5,460 D Second Floor 5,460 E Second Floor 5,460 F Second Floor 5,460 G Second Floor 5,460 H Second Floor 5,460 FLAT 8 (2 ROOMS) A Second Floor 6,136 B Second Floor 6,136

11 TENANCY SCHEDULE - CITY VIEW - BLOCK B (sq m) Room Size (sq ft) Floor Level Gross Projected 2019/20 Rent p.a. (52 Week) Pre let & Under offer (sq m) Room Size (sq ft) Floor Level Gross Projected 2019/20 Rent p.a. (52 Week) Pre let & Under offer FLAT 1 (4 ROOMS) A Ground 5,148 B Ground 5,148 C Ground 5,148 D Ground 5,148 FLAT 7 (5 ROOMS) A First Floor 5,148 B First Floor 5,148 C First Floor 5,148 D First Floor 5,148 E First Floor 5,148 FLAT 2 (5 ROOMS) A Ground 5,044 B Ground 5,044 C Ground 5,044 D Ground 5,044 E TBC TBC Ground 5,044 FLAT 8 (5 ROOMS) A First Floor 4,928 B First Floor 4,928 C First Floor 4,928 D First Floor 4,928 E First Floor 4,928 FLAT 3 (4 ROOMS) A Ground 5,148 B Ground 5,148 C Ground 5,148 D Ground 5,148 FLAT 9 (5 ROOMS) A Second 5,148 B Second 5,148 C Second 5,148 D Second 5,148 E Second 5,148 FLAT 4 (5 ROOMS) A Ground 5,044 B Ground 5,044 C Ground 5,044 D Ground 5,044 E Ground 5,044 FLAT 10 (5 ROOMS) A Second 5,148 B Second 5,148 C Second 5,148 D Second 5,148 E Second 5,148 FLAT 5 (5 ROOMS) A First Floor 5,148 B First Floor 5,148 C First Floor 5,148 D First Floor 5,148 E First Floor 5,148 FLAT 11 (5 ROOMS) A Second 5,148 B Second 5,148 C Second 5,148 D Second 5,148 E Second 5,148 FLAT 6 (5 ROOMS) A First Floor 5,148 B First Floor 5,148 C First Floor 5,148 D First Floor 5,148 E First Floor 5,148 FLAT 12 (5 ROOMS) A Second 5,148 B Second 5,148 C Second 5,148 D Second 5,148 E Second 5,148

12 EPC Block A Easton Hall C(61). Block B Easton Hall D(81). VAT The property is not elected for VAT. DATAROOM For access to the Allsop Dataroom please use the following link: PROPOSAL We are seeking offers in excess of 9,250,000 (Nine Million Two Hundred and Fifty Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level would reflect a gross initial yield of 7.85% on the projected 2019/2020 income excluding purchaser s costs. For further information or to make arrangements for viewing please contact: Anthony Hart anthony.hart@allsop.co.uk Jack Robson jack.robson@allsop.co.uk Andrew Wise andrew.wise@allsop.co.uk Mark Dansky mark.dansky@allsop.co.uk allsop.co.uk Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. Design CommandD