FREEHOLD STUDENT ACCOMMODATION C3 RESIDENTIAL INVESTMENT & DEVELOPMENT OPPORTUNITY SPRING COURT, SPRING ROAD, IPSWICH IP4 2RS

FREEHOLD STUDENT ACCOMMODATION C3 RESIDENTIAL INVESTMENT & DEVELOPMENT OPPORTUNITY SPRING COURT, SPRING ROAD, IPSWICH IP4 2RS

INVESTMENT SUMMARY SPRING COURT SPRING ROAD IPSWICH Established student accommodation investment opportunity in Ipswich town centre In close proximity to the University of Suffolk Campus (c. 10-15 minutes walk) Ipswich is also home to Suffolk New College, a 5-minute walk from the property Located less than a mile from Ipswich town centre and its bars, clubs, retail and leisure facilities 88 study bedrooms laid out over 24 self-contained flats surrounding a central courtyard Landscaped grounds and secure gated car park Registered with the University of Suffolk s Accredited Accommodation Scheme Freehold Significant undersupply with only one other purpose built student scheme in Ipswich Rooms let on a direct let basis and managed by Property First (a specialist in Ipswich student accommodation management) Current gross income of 372,475 pa Projected net operating income of 279,356 pa based on the current gross income Our client is seeking offers in excess of 3.4m subject to contract and net of VAT for their freehold interest, reflecting a net initial yield of 7.72% assuming purchaser s costs of 6.46% and a net initial yield of 7.84% assuming Multiple Dwellings Relief costs of 4.80% Net initial yields based on current occupancy and 25% management costs Very low capital value per bed of only c. 38,600 per bed 2

SPRING COURT SPRING ROAD IPSWICH LOCATION Ipswich is a major commercial centre and the county town of Suffolk. The town has a district population of over 170,000 with an urban area population of 322,000 within 12.5 miles. Ipswich lies approximately 85 miles north east of London, 51 miles east of Cambridge and 45 miles south of Norwich. The town benefits from excellent road communications being adjacent to both the A12, which gives direct access to the M25 at J28, and the A14 which provides access to the A1(M) at J14. Furthermore, Ipswich provides direct trains to London Liverpool Street with a fastest journey time of 70 minutes. In recent years, Ipswich has become increasingly recognised as a centre for education. This is illustrated by University of Suffolk (UoS), a collaboration between the University of Essex and the University of East Anglia that was established in 2007 and was awarded university status in 2016. N M40 A15 Northampton M1 Luton Peterborough A1(M) A1(M) A14 LONDON A47 Bishop's Stortford M25 King's Lynn A14 Cambridge M11 Stansted A120 A12 A47 Colchester A14 A12 Norwich A140 Harwich A146 Lowestoft IPSWICH Felixstowe TO A14 (J55) A1022 A1214 B1075 B1075 A1022 A137 A1156 IPSWICH TOWN CENTRE The Buttermarket A137 To A14 (J56) WOODBRIDGE ROAD A1022 University of Suffolk A1071 A1156 Neptune Marina B1075 N Suffolk New College GROVE LANE ST JOHNS ROAD A1071 SPRING ROAD B1075 SITUATION Spring Court is located on Spring Road approximately 0.7 miles from Ipswich Town Centre and 0.6 miles from the University of Suffolk. Ipswich Station is approximately 1.3 miles to the west. The University of Suffolk Campus is a 10-15 minute walk and Suffolk New College is a 5 minute walk from the property. The University of Suffolk campus is located next to Neptune Marina, a hub of activity with a mix of vibrant restaurants, cafes, shops and apartments with views overlooking the waterfront. 3

UoS EDUCATIONAL DEVELOPMENT SITE NEPTUNE MARINA THE PROPERTY UoS MAIN CAMPUS ATHENA HALL STUDENT ACCOMMODATION UoS WATERFRONT BUILDING AND MAIN UNIVERSITY RECEPTION UoS STUDENT UNION 4

SPRING COURT SPRING ROAD IPSWICH DESCRIPTION Spring Court comprises a modern, three-storey detached student accommodation building providing an approximate Net Sales Area (NSA) of 18,084 sq ft. The main frontage faces onto Spring Road and extends in an inverted U-shape to the rear. The property is of cavity brick / block wall construction rendered in part, beneath a pitched slate and flat roof. The floors are concreted throughout. The property was developed to provide 24 flats with 88 non-ensuite bedrooms within. The ground floor flats are accessed from the internal courtyard whilst first and second floor flats are accessed via communal internal staircases and external walkways. One second floor flat has a duplex kitchen and bathroom at third floor level. SPRING ROAD THE PROPERTY BARTHOLOMEW STREET View from Spring Road In addition to the washing machines provided within the flats, there is a store room and laundry with 3 washing machines and 2 dryers on the ground floor. Access is available to the property via the main entrance on Spring Road and via Bartholomew Street by means of electrically operated vehicular and pedestrian gates. This side entrance leads to a large car park with space for c. 20 cars. An enclosed bin store area is adjacent to the entrance gates. The front garden and inner courtyard are grassed. Potential development land Allotments The total site area is c. 0.248 ha (0.61 acres). Not to scale, for indicative purposes only. View from Bartholomew Street 5

SPRING COURT SPRING ROAD IPSWICH IPSWICH STUDENT ACCOMMODATION MARKET.. The University of Suffolk (UoS) opened.. in 2007 and is owned jointly by the.. University of East Anglia and the University of Essex. It was awarded university status in 2016. The University has partner colleges across Suffolk and Great Yarmouth, including Suffolk New College, West Suffolk College and East Coast College. UoS offers a portfolio of courses within the Faculty of Arts, Business and Applied Social Science and the Faculty of Health and Science. Degrees range from Foundation, Honours and Postgraduate to Continuing Professional Development (CPD) courses. UoS currently employs around 200 academics ensuring the institution provides students with a high quality and innovative teaching and learning experience. The total number of full time students at UoS was 3,680 for the 2015/16 academic year (source: HESA). Approximately 70% of UoS students are based at the University s main hub in Ipswich. The University continues to invest heavily in its facilities with the development of the 5.5m The Atrium and waterfront studios innovation centre, radiography, psychology and engineering labs. Furthermore, the car park that lies adjacent to Athena Hall (the only other notable PBSA building in the town) has been acquired by UoS for the development of additional educational facilities. Approx F/T University Private Sector % Beds to Students in Beds Beds F/T Students Ipswich 2,576 590 146 29% 6

SPRING COURT SPRING ROAD IPSWICH Example rooms let to Willis Faber. TENURE Freehold CURRENT RENT AND MANAGEMENT COSTS Rooms in 21 of the 24 cluster flats are let to students and the additional 3 cluster flats are let to Willis Faber for use by its employees. Rooms are currently let on the basis of 47-52 week tenancies. At the time of writing, 84 of the beds (95.5%) are let for the 2017/18 academic year. Historically, occupancy runs at approximately 98% and lettings are still taking place for 2017/18. A tenancy schedule is available on request. As at October 2017, the overall tenancies are as follows: Type Number Rental Range 2017/18 Projected Net Rent... of Beds Per Week Gross Rent management projected... cost per annum 2017/18 Student 68 80-100 299,675 25% 224,756 Non en-suite clusters PRS 20 70-85 72,800 25%.. 54,600 Non en-suite clusters 372,475 279,356 7

FURTHER INFORMATION Should you require any further information or wish to inspect, please contact: Colin Summers Partner DDI: 020 7297 6272 colin.summers@bidwells.co.uk Katherine Ilett Senior Surveyor DDI: 020 3761 3633 katherine.ilett@bidwells.co.uk ASSET MANAGEMENT AND RESIDENTIAL CONVERSION In our view, whilst take up is already very good, some of the flats could benefit from a light refurbishment to help grow the rent and secure student occupancy. Alternatively, given the property has a wider residential use class, there is potential for a future PRS scheme or to divide and sell the units individually. USE We understand the property has C3 residential use. VAT The property is not elected for VAT. PROPOSAL Offers sought in excess of 3,400,000 (Three Million Four Hundred Thousand Pounds) for the freehold interest, reflecting a net initial yield of 7.72% assuming purchaser's costs of 6.46% and a net initial yield of 7.84% assuming Multiple Dwellings Relief costs of 4.80%. Bidwells 25 Old Burlington Street London W1S 3AN Tel: 020 7493 3043 October 2017 8

Bidwells 25 Old Burlington Street London W1S 3AN Tel: 020 7493 3043 bidwells.co.uk IMPORTANT NOTICE RELATING TO THE MISREPRESENTATION ACT 1967 AND THE PROPERTY MISDESCRIPTIONS ACT 1991 Bidwells LLP act for themselves and for the vendors of this property, whose agents they are, give notice that: These particulars do not form part of any offer or contract and should not be relied upon as statements or representatives of fact. Bidwells LLP has no authority to make or give in writing or verbally any representation or warranties in relation to the property. Any areas of measurements or distances are approximate. The text, photographs and plans are for guidance only and are not necessarily comprehensive. No assumptions should be made that the property has all necessary planning, building regulation or other consents. Bidwells LLP have not carried out a survey, nor tested the services, appliances or facilities. Purchasers must satisfy themselves by inspection or otherwise. In the interest of Health & Safety, please ensure that you take due care when inspecting the property. Bidwells LLP is a limited liability partnership registered in England & Wales (registered number OC344553). Registered head office is Bidwell House, Trumpington Road, Cambridge CB2 9LD, where a list of members is available for inspection