CONTENT ABOUT 02 LEEDS: MACRO OVERVIEW 04 ECONOMY 06 SUPPLY 10 DEMAND 11 SALES MARKET 12 RENTAL MARKET 13 THE AREA 14 COMPARABLES MAP 20 THE DEVELOPMENT 22 ILLUSTRATIVE RETURNS MODEL 26 DEVELOPER 30 CONTACTS 31
LEEDS: MACRO OVERVIEW Leeds is one of the six cities set to benefit from the GBP7 billion Northern Powerhouse initiative, which aims to boost the economy and infrastructure of the country as a whole. Leeds is outpacing other regions with the city s GVA forecast to expand by 2.0% annually from 2018 to 2022, above the 1.7% Northern England average. Sources: JLL LUCENT SQUARE
ECONOMY LEEDS S ECONOMY HAS GROWN 40% OVER THE LAST DECADE, AND IS CURRENTLY WORTH GBP18 BILLION, PREDOMINATELY DUE TO THRIVING INDUSTRIES AND A GROWING POPULATION. Fastest growing legal sector in the UK, with a 20% increase in legal jobs from 20102016 versus just 5% in London Accelerated growth in the tech, media and telecom industries with 96% more dedicated office space to this sector since last year more than any other Northern Powerhouse city One of the largest finance and professional services hubs outside London, with over 30 domestic and international banks within its borders 65,000 student population, with a 30% graduate retention rate Known as Knightsbridge of the North, Leeds is one of the Top 5 UK Retail and Tourism destinations with 26 million visitors annually 6 7
ECONOMY REGENERATION HIGH SPEED 2 (HS2) RAIL NETWORK JOURNEY TIMES TO MAJOR UK HUBS WILL BE DRASTICALLY REDUCED. LEEDS TO BIRMINGHAM (completing in 2033) 57 min (previously 1 hr 56 minutes) LONDON 1 HR 21 min (previously 2 hr 9 minutes) HEATHROW 1 HR 38 min (previously 3 hr 12 minutes) Expected to add GBP54 billion to the regional economy by 2050 Leeds station will undergo a proposed GBP500 million revamp with over 3 million sqft space for new shops, restaurants and offices 300,000 jobs are expected to be created through the Leeds City Region HS2 Growth Strategy plan SOYO GBP300 million scheme with 685,000sqft of office, leisure, residential and retail space A new and vibrant cultural hub for Leeds, completing in 2022 SOUTH BANK REGENERATION Development of a new GBP57 million Leeds City College campus A GBP350 million investment, and one of Europe s largest city centre regeneration initiatives The 185hectare scheme plans to double the size of the city centre Expected to create 35,000 new jobs NEW BRIGGATE GBP12 million regeneration scheme in the city centre s Grand Theatre Quarter Proposed location of the HS2 station Sources: Leeds City Council, Centre for Cities, HS2.org, Financial Times 8 9
SUPPLY DEMAND DESPITE THE INCREASE IN COMPLETIONS IN RECENT YEARS, HOUSING SUPPLY HAS NOT REACHED THE MINIMUM TARGET LEVELS. THE CITY S POPULATION GREW TO OVER 800,000 PEOPLE IN 2017. THE POPULATION IS FORECAST TO GROW TO 860,618 IN 2028. DWELLING COMPLETIONS 2009 TO 2016 POPULATION GROWTH 3,366 new dwellings are required per year until 2033 to meet demand. Total dwellings built Target Population growth Population forecasts Sources: Leeds AMR 2013, AMR 2016 Sources: JLL, Leeds CSSR 2018, ONS THE WORKING AGE POPULATION HAS EXPERIENCED 10.2% GROWTH FROM 2010 TO 2017. LEEDS HAS SEEN THE HIGHEST RATE OF PRIVATE SECTOR JOBS GROWTH IN THE UK. PRIVATE SECTOR JOB GROWTH IN 2017 8 6 4 2 Sources: JLL, Leeds CSSR 2018, ONS 10 11
SALES MARKET RENTAL MARKET A LARGE POPULATION OF RENTERS, PARTICULARLY IN THE CITY CENTRE, ARE PUSHING RENTS UPWARDS. AVERAGE RENTS RENTAL GROWTH FORECAST LEEDS SAW 29.6% HOUSE PRICE GROWTH FROM 2012 TO 2018. 19.9% HOUSE PRICE GROWTH IS FORECAST FOR LEEDS BETWEEN 2018 AND 2022. Source: SHMA 2017 HOUSE PRICE GROWTH HOUSE PRICE GROWTH FORECAST 73.3% of households in the city centre are privately rented, against the 19.9% Leeds average Low vacancy rate of 2.5% 4.54.75% average yield for buy to let properties UK Leeds Leeds UK Sources: SHMA 2017, JLL, Zoopla Sources: JLL, ONS 12 13
THE AREA With plans to redefine how the people of Leeds live, work and play, SOYO, located to the east of the city centre and south of York Road, will form an exciting and happening new community space for Leeds s growing city centre. SO YO Just five minutes walk from Lucent Square, the neighbourhood will include trendy bars, restaurants and lots of green space. Incorporating the existing Cultural Quarter, which is already home to notable employers and institutions, SOYO is set to become one of the city s most desirable areas. QUARRY HILL SO YO MARSH LN ALLS 14 15
THE AREA 19 CLAY PIT LN A61 N 200m THE AREA KNOWLEDGE QUARTER 14 ARENA QUARTER 12 Lovell Park SKINNER LN 1 QUARRY HOUSE/SOYO 15 Leeds Teaching Hospitals NHS Trust 2 NORTHERN BALLET CIVIC QUARTER 18 17 16 THE HEADROW 11 A64 (M) 3 LEEDS COLLEGE OF MUSIC 4 BBC LEEDS CENTRAL BUSINESS DISTRICT WELLINGTON ST SHOPPING QUARTER 13 9 8 7 6 5 QUARRY HILL 4 3 2 1 MARSH LN LUCENT SQUARE 5 WEST YORKSHIRE PLAYHOUSE 6 BUS STATION 7 JOHN LEWIS Leeds railway station THE CALLS 8 LEEDS KIRKGATE MARKET A61 9 VICTORIA LEEDS MARSHALL ST HOLBECK URBAN VILLAGE PROPOSED HS2 CORRIDOR A61 SOUTH BANK CENTRAL CROWN POINT RD 10 LEEDS DOCKS 10 ROYAL ARMOURIES MUSEUM 11 THE GRAND THEATRE & OPERA HOUSE LEEDS 12 FIRST DIRECT ARENA SOUTHERN GATEWAY 13 TRINITY LEEDS A 14 LEEDS BECKETT UNIVERSITY TRAVEL TIMES 15 O2 ACADEMY LEEDS 16 THE HENRY MOORE INSTITUTE York Rd/ Marsh Lane Bus Stop: 1 min Quarry House/SOYO 5 mins Victoria Leeds/ John Lewis/ Leeds Kirkgate Market 14 mins 4 mins 5 mins Trinity Leeds: 5 mins 6 mins Leeds train station: 5 min 8 min 17 LEEDS ART GALLERY 18 LEEDS TOWN HALL 19 UNIVERSITY OF LEEDS 17
University of Leeds Leeds Art Gallery Leeds Town Hall O2 Academy Leeds Train Station Leeds Trinity Victoria Leeds Leeds Grand Theatre BBC Leeds Kirkgate Market John Lewis Northern Ballet Quarry House/SOYO Lucent Square
WOODHOUSE LN COMPARABLES SERVIA HILL A61 A58 LEICESTER PL MABGATE GATEWAY BLOCK A & B 1 beds: GBP125154k (258psf) 2 beds: GBP170281k (268psf) A660 CLARENDON RD TATE HOUSE CLAY PIT LN A61 42 PARK PLACE 1 beds: GBP165170k (279psf) 2 beds: GBP179289k (263psf) SKINNER LN 1 bed: GBP147.5k (343psf) 1 bed: GBP157.5k (337psf) 1 bed: GBP165k (340psf) 1 bed: GBP165k (345psf) BURLEY ST THE HEADROW ST PETER S HOUSE A64 (M) A58 WHITEHALL QUAY 2 bed: GBP200k (387psf) 2 bed: GBP242.5k (341psf) WELLINGTON ST 1 bed: GBP165k (337psf) 1 bed: GBP170k (317psf) 1 bed: GBP165k (434psf) 1 bed: GBP185k (325psf) LUCENT SQUARE 1 beds: GBP145k165k (267psf) 1+1 beds: GBP160k215k (226psf) 2 beds: GBP185k251k (231psf) MARSH LN A61 ST PETER S HALL ARTHUR'S FOLD 1 beds: GBP123177k (378psf) 2 beds: GBP211250K (335psf) WATER LN CROWN POINT RD 1 bed: GBP155k (287psf) 1 bed: GBP167.5k (291psf) 2 bed: GBP295k (288psf) MARSHALL ST A61 HOLBECK LN DOCK ST 1 bed: GBP163k (337psf) 2 bed: GBP255k (388psf) SWEET ST W NINEVEH RD A653 THE QUAYS 2 bed: GBP255k (300psf) 2 bed: GBP390k (402psf) 2 bed: GBP375k (335psf) A61 WATERMAN'S PLACE 1 bed: GBP163k (322psf) 1 bed: GBP167k (330psf) 2 bed: GBP230k (305psf) 2 bed: GBP240k (326psf) New build: New developments currently selling offplan Completed resales recorded on Land Registry 20 21
THE DEVELOPMENT LUCENT SQUARE On the back of a strong structural design and modern minimalist aesthetic, Lucent Square focuses on the essentials of living: space, light and nature. The development will have balconies on most units and is in close proximity to many amenities, major employers and transport links. 22 Computer generated images are intended for illustrative purposes only 23
THE DEVELOPMENT FEATURES Specifications Wood internal doors with ironmongery in brushed chrome Walls painted in magnolia Skirting boards and architrave painted in white gloss Door numbers on each apartment door Numbered post boxes in entrance to communal areas Provision of audio access control panel Provision of broadband facility/connection to the site (likely Virgin or SKY) Smoke detectors within flats and communal areas Flooring Neutral carpet in bedrooms Wood effect laminate floor in hallway, kitchen and living room Bathroom tiles to floor and part of walls Lighting Recessed downlight to kitchens, bathrooms, hallway and living room Pendant lights in bedrooms Electrical Brushed chrome switches and sockets Smoke detectors and heat detectors TV point in living room and bedroom Telephone point in living room Bathrooms Bath with shower (where the plans allow a bath otherwise only a shower) WC with flush Basin with vanity unit Mixer taps to bath and basin Tiled walls incorporating feature wall Mirror above vanity units Bathrooms from Scudo, Hudson Reed, Phoenix or similar Kitchens Fully fitted kitchens from Howdens Kitchens or similar Work surfaces with matching splashbacks Integrated electric fan oven, ceramic hob and extractor Integrated fridgefreezer and integrated dishwasher Stainless steel sink unit Washer/Dryer which is plumbed in and installed Heating Electric panel heaters with central timer Chrome towel rails to bathrooms and ensuites Whilst every effort has been made to ensure that the information provided is as accurate as possible, our specifications and CGIs are designed specifically as a guide only. IP Global and the developer reserve the right to amend the specifications as necessary without notice. 24 Computer generated images are intended for illustrative purposes only 25
ILLUSTRATIVE RETURNS MODEL AVERAGE SAMPLE 2BED UNIT PRICE GBP205,700 LTV 65% MORTGAGE INTEREST RATE (interest only) 3.60% (25 years) Price (GBP) Capital appreciation (%) HOW MUCH WILL MY PROPERTY INCREASE IN VALUE? Illustrative property value (GBP) Capital appreciation (%) Annual growth WHAT IS MY NET MONTHLY CASH POSITION AFTER PAYING MY MORTGAGE? 0 1 2 3 4 5 6 7 8 9 10 Price (GBP) ILLUSTRATIVE PROPERTY VALUE 205,700 212,900 221,415 229,165 237,186 246,673 255,553 263,833 271,527 278,653 285,234 CAPITAL APPRECIATION 3.5% 7.6% 11.4% 15.3% 19.9% 24.2% 28.3% 32.0% 35.5% 38.7% ANNUAL GROWTH 3.5% 4.0% 3.5% 3.5% 4.0% 3.6% 3.2% 2.9% 2.6% 2.4% Rent (GBP) Rental yield (%) WHAT WILL MY GROSS RENTAL INCOME BE? Rental income Rental yield CASH IN: Rental Income CASH OUT: Tenant management fees Running costs Mortgage costs 1 2 3 4 5 6 7 8 9 10 RENTAL INCOME 10,812 11,244 11,638 12,045 12,407 12,742 13,051 13,337 13,599 13,840 RENTAL YIELD 5.3% 5.5% 5.7% 5.9% 6.0% 6.2% 6.3% 6.5% 6.6% 6.7% DISCLAIMER: Any information (including any data, pictures, graphics, and analysis) included in this and other documents is provided by IP Global Limited ( IPG ) to you pursuant and subject to IPG s terms and conditions including those specified in the Client Deed. The information provided by IPG is intended solely as a guide and for information purposes and does not constitute an offer or an acceptance to invest. You are strong advised to seek independent tax, legal and financial advice to your satisfaction before making any investment decision. IPG does not and cannot guarantee the accuracy of the information. You should not rely on such information as your sole means of making a decision. IPG representatives only work in relation to properties outside Hong Kong and are not therefore licensed under the Estate Agent s Ordinance to deal with Hong Kong properties. IP Global is the trading name of IP Real Estate Investments Pte Ltd (CEA License Number: L3010023I) which is licensed under the Estate Agents Act 2010 of Singapore. The IP Global Kuala Lumpur office is in conjunction with Complete Real Estate & Management Sdn Bhd (935131 P / VE (1) 0246). WARNING: Property values and rental yields can fall as well as rise. DISCLAIMER: Any information (including any data, pictures, graphics, and analysis) included in this and other documents is provided by IP Global Limited ( IPG ) to you pursuant and subject to IPG s terms and conditions including those specified in the Client Deed. The information provided by IPG is intended solely as a guide and for information purposes and does not constitute an offer or an acceptance to invest. You are strong advised to seek independent tax, legal and financial advice to your satisfaction before making any investment decision. IPG does not and cannot guarantee the accuracy of the information. You should not rely on such information as your sole means of making a decision. IPG representatives only work in relation to properties outside Hong Kong and are not therefore licensed under the Estate Agent s Ordinance to deal with Hong Kong properties. IP Global is the trading name of IP Real Estate Investments Pte Ltd (CEA License Number: L3010023I) which is licensed under the Estate Agents Act 2010 of Singapore. The IP Global Kuala Lumpur office is in conjunction with Complete Real Estate & Management Sdn Bhd (935131 P / VE (1) 0246). WARNING: Property values and rental yields can fall as well as rise. 26 27
ILLUSTRATIVE RETURNS MODEL ILLUSTRATIVE RETURNS MODEL 5YEAR PROFIT GROSS PROFIT (GBP99,120) 10YEAR PROFIT GROSS PROFIT(GBP204,250) 114,808 Net profit Gross profit: Rental income and capital appreciation Net profit: Gross profit minus acquisition costs, running costs, mortgage costs and tax liability Net profit Gross profit: Rental income and capital appreciation Net profit: Gross profit minus acquisition costs, running costs, mortgage costs and tax liability Property price at purchase: GBP205,700 Property value at sale (year 5): GBP246,673 LTV: 65% (GBP133,705) Mortage interest rate: 3.60% (25 years) 5 year gross profit: GBP99,120 Rental income: GBP58,147 Capital appreciation: GBP40,973 Property price at purchase: GBP205,700 Property value at sale (year 10): GBP285,234 LTV: 65% (GBP133,705) Mortage interest rate: 3.60% (25 years) 10 year gross profit: GBP204,250 Rental income: GBP124,716 Capital appreciation: GBP79,534 DISCLAIMER: Any information (including any data, pictures, graphics, and analysis) included in this and other documents is provided by IP Global Limited ( IPG ) to you pursuant and subject to IPG s terms and conditions including those specified in the Client Deed. The information provided by IPG is intended solely as a guide and for information purposes and does not constitute an offer or an acceptance to invest. You are strong advised to seek independent tax, legal and financial advice to your satisfaction before making any investment decision. IPG does not and cannot guarantee the accuracy of the information. You should not rely on such information as your sole means of making a decision. IPG representatives only work in relation to properties outside Hong Kong and are not therefore licensed under the Estate Agent s Ordinance to deal with Hong Kong properties. IP Global is the trading name of IP Real Estate Investments Pte Ltd (CEA License Number: L3010023I) which is licensed under the Estate Agents Act 2010 of Singapore. The IP Global Kuala Lumpur office is in conjunction with Complete Real Estate & Management Sdn Bhd (935131 P / VE (1) 0246). WARNING: Property values and rental yields can fall as well as rise. DISCLAIMER: Any information (including any data, pictures, graphics, and analysis) included in this and other documents is provided by IP Global Limited ( IPG ) to you pursuant and subject to IPG s terms and conditions including those specified in the Client Deed. The information provided by IPG is intended solely as a guide and for information purposes and does not constitute an offer or an acceptance to invest. You are strong advised to seek independent tax, legal and financial advice to your satisfaction before making any investment decision. IPG does not and cannot guarantee the accuracy of the information. You should not rely on such information as your sole means of making a decision. IPG representatives only work in relation to properties outside Hong Kong and are not therefore licensed under the Estate Agent s Ordinance to deal with Hong Kong properties. IP Global is the trading name of IP Real Estate Investments Pte Ltd (CEA License Number: L3010023I) which is licensed under the Estate Agents Act 2010 of Singapore. The IP Global Kuala Lumpur office is in conjunction with Complete Real Estate & Management Sdn Bhd (935131 P / VE (1) 0246). WARNING: Property values and rental yields can fall as well as rise. 28 29
DEVELOPER With a philosophy of bringing life to city centres, Gold & Amber has a successful track record across a number of UK cities. Gold & Amber are currently focusing on Leeds, with three completed developments on a city s edge and commuter zones. With an ongoing development pipeline in Leeds, Lucent Square marks their fourth project in the city. Brunswick Court features 39 new apartments in Leeds s city centre, situated between the rapidly developing Mabgate and SOYO quarters, yet set in its own tranquil location. 1 Sanford Street is a beautiful development of 28 luxurious apartments in the heart of Swindon town centre. 30