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AN EXCLUSIVE HIGHYIELDING NEW BUILDSTUDENT PROPERTY INVESTMENT OPPORTUNITYbrought to you by the Alliance Group.
A great addition to any property portfolio in the increasinglypopular Student Accommodation investment sector.
� AN EXCLUSIVE HIGH YIELDING NEW BUILD STUDENT PROPERTY INVESTMENT OPPORTUNITY –brought to you by the Alliance Group. A great addition to any property portfolio in the increasingly popular Student Accommodation investment sector.
� YIELDS OF 10% assured in Year 1 – no voids
� Room prices from ONLY £40,000* requiring ONLY £20,000 deposit.
� 50% FINANCE AVAILABLE for all investors
� HIGH SPEC with excellent living space and facilities
� EXCELLENT location
� LOW MAINTENANCE COSTS and fully managed
� HIGH DEMAND for purpose built student accommodation in Huddersfield
� University of Huddersfield is one of the FASTEST GROWING in the UK.
� FULLY FURNISHED
� 199 YEAR LEASEHOLD TITLE
� Investors will have PEACE OF MIND that their deposit is INSURED for the construction period
� HANDS OFF INVESTMENT with management company appointed
� EASY PAYMENT TERMS
* Assumes purchase of townhouse with freehold.
STUDENT ACCOMMODATION HUDDERSFIELD
AN EXCLUSIVE HIGH YIELDING NEW BUILD STUDENTPROPERTY INVESTMENTOPPORTUNITY
STUDENT ACCOMMODATION HUDDERSFIELD
INVESTMENTSUMMARY
KNIGHT FRANKSVIEW ON STUDENTACCOMMODATION
The underlying market
fundamentals are positive, with
supply restricted and strong
demand underpinning rental
growth. Given the lack of
finance currently available for
development and the
constrained pipeline, rents are
likely to continue to rise for the
foreseeable future. There is
strong demand for high quality,
income producing assets and it
is anticipated this will continue
with increased appetite from
investors for direct let stock.
Source: Knight Frank Student
Research Report
A STABLE AND HIGHYIELDINGINVESTMENT
There is a widespread
difference of opinion regarding
what will happen in the
residential and commercial
property market in the UK right
now. One thing few experts
disagree on is the potential for
both capital growth and surety
of high rentals that comes with
well located student
accommodation in key cities
with prestigious universities.
Over the past 6 years rents in
this sector have increased at
5% per year, in contrast to 0.6%
for the commercial market as a
whole and occupancy rates for
student accommodation
currently sit between 97%-
100%. Compared to residential
tenants who often sign for 6
months contracts, students are
often required to rent for a full
year.
A PASSIVE INCOMEAND TURNKEYINVESTMENT
Most property is rarely as
passive or hands free as we
would like. However, by
working with a very
experienced and established
management company that
specializes in the student
accommodation market, this
investment provides you with a
truly hands free investment
where you can sit back andreceive your regular monthly
income.
Whilst it is true there is a serious lack of good quality student accommodation, this shortage is even more
compounded for luxury student accommodation which Alliance are building in Huddersfield. Not only do
these types of accommodation command higher prices but, most importantly they are the ones which are
rented first and provide the highest occupancy rates.
HOUSE 1: 6 bed En-suite
HOUSE 2: 4 bed En-suite
HOUSE 3: 6 bed En-suite
HOUSE 4: 6 bed En-suite
HOUSE 5: 6 bed (2 En-suite and 4 with double shared shower rooms)
WHAT IS INCLUDED IN EACH ROOM
1x Bed
1x Desk/workstation
1x Study chair
1x Curtains/blinds
1x Wardrobes
1x Electric data/phone sockets
1x Duvet/pillow/mattress
Hi speed WIFI
COMMUNAL KITCHEN/LOUNGE AREA
Flat screen TV
Sofa/chairs
Coffee
Cooker
Microwave
Washing machine
Dishwasher
Fridge/freezer
STUDENT ACCOMMODATION HUDDERSFIELD
THE DEVELOPMENT
5 new build purpose
built student
townhouses.
28 units in total.
Completion for start of
2013 academic year.
Purchased on 199 year
leashold.
All houses have a
lounge, kitchen and
dining area. Parking and
cycle storage.
NORTH WEST FACING ElEVATION
SOUTH EAST FACING ElEVATION
GROUND FlOOR
PlAN
SECOND FlOOR
PlAN
SOUTH WEST FACING ElEVATION
FIRST FlOOR
PlAN
NORTH EAST FACING ElEVATION
THE DEVELOPMENT CONTINUED
STUDENT ACCOMMODATION HUDDERSFIELD
Students value the location of
their accommodation almost as
much as the quality of it, and
this is something Alliance has
taken into account selecting this
prime location. This ensures a
very high occupancy and
demand to rent this student
accommodation.
The site is located in lockwood,
which is a residential area
popular with young
professionals and students.
Situated 1 mile from the town
centre of Huddersfield and the
main campus of the University
and close to local amenities. It is
a 15 minute walk to the
University or 5 minutes by bus.
local amenities include Tesco
Express, Fitness First,
Huddersfield Rugby Club,
Restaurants and Bars.
Huddersfield is located in the
heart of Yorkshire on the M62
with quick access to leeds and
Manchester and has excellent
rail links to liverpool, Sheffield
and York. One of the largest
towns in UK on the edge of the
Peak District an area of
outstanding natural beauty.
A town centre campus with
sporting, cultural and social
amenities you would expect
from a major regional centre.
STUDENT ACCOMMODATION HUDDERSFIELD
THE LOCATION
Huddersfield is located in theheart of Yorkshire with quickaccess to Leeds, Manchester,Liverpool, Sheffield and York.
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HUDDERSFIELD
SITE PLAN
THE DEVELOPMENT
ESTABLISHED IN 1825 as HuddersfieldScientific and Mechanic Institute. TheUniversity of Huddersfield is one of the fastest growing inthe UK with a student population of over 24,000 from 130 different countries. RECENTLY VOTEDNUMBER 1 IN THE WORLD by overseas students by (IBS) rating learning and living experiences.
Ranked 6th in England for GRADUATE EMPLOYMENT HIGHER THAN OXFORD ANDCAMBRIDGE (HESA). 94.4% of students areemployed of in further education within 6 monthsafter graduating. RECENTLY SIGNED ANAGREEMENT WITH THE PRINCES TRUST todevelop its links with the University’s Business Mine- which provides advice, mentoring andfinancial help to enterprising students and the NEW £11.5 MILLION ENTERPRISE ANDINNOVATION CENTRE.
Majority of English Universities have increased feesto the maximum of £9,000 pa, where the University ofHuddersfield raised the fees to £7950 pa MAKINGIT VERY COMPETITIVE. This on top of its long andproud tradition of delivering first class education andemployment prospects has resulted in recordnumber of applicants for the 2012 academic year.
THE UNIVERSITY OF HUDDERSFIELD ISRANKED 5 IN THE UK for the biggest increase inapplications for 2012 with demand rising by morethan 60 % compared with the previous 3 yearaverage (Savills Student Housing Spotlight).
THE MAIN QUEENSGATE CAMPUS HAS SEENOVER £90 MILLION INVESTMENT over the past10 years including a new £16 million Business Schooland a £21.5 million learning and leisure Centre tobe opened in 2014 to fully integrate with theremodelled library and Central Computing Facility.
THE SUCCESS OF THE UNIVERSITY IS CREATING A HIGH DEMAND FOR PURPOSEBUILT STUDENT ACCOMMODATION INHUDDERSFIELD.
STUDENT ACCOMMODATION HUDDERSFIELD
University Campus OldhamwelcomesProfessor BRIAN COX prominent UKphysicist and BBCpresenter, back to his home town
THE UNIVERSITY
STUDENT ACCOMMODATION HUDDERSFIELD
FINANCIALSOPTION 1 Purchase individual room(s) as a shareholder of the property with a 199 yearleasehold title.
Illustration of a single en-suite room based on market income projections
Purchase Price £49,995
50% Investor Cash Deposit £24,998
50% Mortgage Finance (20 year repayment) £24,998
Gross Rental Income + Yield £4,590 – 9.2% per annum
Management Fee 8% + vat £441 per annum
Net Yield on Purchase Price 8.3% per annum
Net Yield on Cash Deposited 16.6% per annum
Typical Mortgage Repayment per annum £1,980 (source lloyds TSB mortgage calculator)
(based on 20 year capital repayment interest at 5%)
Residual and cash positive income including £2,169
capital being repaid on mortgage each year
Projections show initial equity invested can be repaid in only 11.5 years (including making capital repayments each year)
OPTION 2 Purchase whole house and retain freehold10% DISCOUNT OFF INDIVIDUAL ROOM PRICES£49,995 reduced to only £45,000 per room - SAVING £29,970
Illustration of townhouse 1 (6 bed en-suite)
Per room
Purchase Price £270,000 £45,000
50% Investor Cash Deposit £135,000 £22,500
50% Mortgage Finance (20 years) £135,000 £22,500
Gross Rental Income + Yield £27,540 at 10.2% £4,590 AT 10.2%
Management fee 8% + vat £2,646 £441 per annum
Net Yield on Purchase Price 9.2% 9.2% per annum
Net Yield on Cash Deposited 18.4% 18.4% per annum
Typical Mortgage Repayment per annum £10,692 £1,782 (source lloyds TSB mortgage calculator)
(based on a 20 year capital repayment and interest of 5%)
Residual and cash positive income including
capital being repaid on mortgage each year £14,202 £2367
Projections show initial equity invested can be repaid in only 9.5 years (including making capital repayments each year)
* Please note these examples are for illustration purposes only.
The projections for income, occupancy and rates etc are not guaranteed.
STUDENT ACCOMMODATION HUDDERSFIELD
RENTAL INCOMERental Returns in years 1-3 (assuming 3% annual increase)
Alliance have negotiated a competitive rate and service with a reputable management company.
It is anticipated each room will achieve in excess of £90 per week over 51 weeks. The following tables illustrate
projected rental returns and are based upon the price per room for the purchase of a townhouse.
Existing comparable student rental properties:
YEAR 1 £4,590 £90 PW 10.2%
YEAR 2 £4,743 £93 PW 10.5%
YEAR 3 £4,896 £96 PW 10.9%
RENTAL INCOME
RENTALAMOUNT
YIELD
Snow Island, Kingsmill Lane studio £90 Unite Students
Firth Point, 100 Firth Street HD1 studio £95 Unite Students
Aspley Hall, HD1 studio £97 Opal Students
Gransmere Road, HD1 5 bed apartment £85 Student
Victoria Road, HD1 5 bedroom flat £90
Victoria Road, HD1 6 bedroom flat £100
Water St, HD1 1 bed flat £87 Right Move
New North Road 5 bed semi £96 Right Move
Brook Street, Moldgreen 6 bed terraced £80 Right Move
Highfileds Developments studio flats (20) £115 Right Move
LOCATION PROPERTYTYPE
PRICE PW SOURCE
STUDENT ACCOMMODATION HUDDERSFIELD
BUYINGPROCESSOPTIONS1. Purchase whole townhouse and retain freehold.
2. Purchase individual room(s), as a shareholder of the property with a leasehold title.
RESERVATIONSSTEP 1 – Complete reservation form and pay reservation deposit of £5,000.
STEP 2 – Introduction to buyers’ solicitors. Pay 50% of legal fee of £600 (inc VAT).
– Receive Sales & Purchase Contract and lease Contract.
EXCHANGEExchange will be within 21 days after reservation for 50% of purchase price.
Step 1 – Pay balance of exchange deposit £24,997.50 less £5,000 already paid - £19,997.50.
Applicable to single room purchases. Deposits will vary per room for townhouse purchases.
COMPLETIONAnticipated July/August 2013.
STEP 1 – Developer’s solicitor issues notice to complete.
STEP 2 – Pay balance of legal fees - £600
STEP 3 – Pay proportionate share of Stamp Duty (see below)
STEP 4 – Pre occupation checks by relevant council and architects.
STEP 5 – Draw down of finance available of 50% of purchase price.
Building ready for occupation.
STAMP DUTYStamp Duty will be levied at the prevailing rate.
House No.1 – 3% of purchase price House No.4 – 3% of purchase price
House No.2 – 1% of purchase price House No.5 – 1% of purchase price
House No.3 – 3% of purchase price House No.6 – 3% of purchase price
For individual room purchases as these will be done on a share basis Stamp Duty will be paid by room
purchasers on a proportionate basis of the freehold amount of Stamp Duty.E.g. On House No.1 where stamp duty at 3% is £8,100, each room buyer will pay a 1/6th share of this, £1,350.
ASSURANCE10% immediate income from day 1 of operation guaranteed for the first year
based on the purchase price, not the cash invested.
The guaranteed rental income will commence on the agreed legal completion
date and will be paid quarterly in arrears net of finance payments, tax and
other considerations.
* The above is for illustraion purposes only.
Individuals will receive up to date precise purchase costs and processes upon reservation.
1. What is the length of the lease on each room?The lease will be 199 years from the completion date of the property. This is considered a long-term lease.
2. Are the rooms furnished?These are luxurious student rooms and accordingly will be delivered with everything a student requires to start or continue studies.
3. How achievable are the rental yields?Similar student accommodation in Huddersfield is currently renting for similar prices, without factoring in a year’s worth of rental price increases which would mean values would be greater at completion in readiness for 2013 academic year.
4. What is meant by the first year rental is assured?This means that the developer will assure the payment of rental for the first year starting in September 2013, which gives investors absolute peace of mind.
5. Are my deposits insured?All investor deposits will be insured. Only when the purchasers solicitors have received details of the insurance cover in place will exchange deposits be released to the developer.
6. How do I know my property meets the criteria for student accommodation?There is already planning approval for the build of 6 new student houses with a total of 28 rooms. The development will also hold the relevant HMO license (House of Multiple Occupation) issued by the Government for communal living.
7. Who will manage the rentals?Will manage all the rental income on behalf of all the investors, working closely in conjunction with the Alliance GRP.
8. Do I have to take the mortgage or can I purchase with cash?This will be one of the only student accommodation investments where purchasers benefit from an exclusive 50% of the purchase price as a mortgage. This significantly reduces purchasers capital required and increases cash on cash returns, in addition to the provision of high passive income after the repayment of the mortgage. Purchasers who decide to buy a whole house on a freehold basis will have the option to purchase in cash or with the 50% mortgage. Purchasers of individual rooms will have to take the 50% mortgage.
9. What are the expected legal costs?legal costs are expected to be £1,000 plus VAT. 50% payable on reservation/exchange and 50% on completion. Details of our nominated purchasers solicitors are available upon request.
10.Will I be able to sell my room or townhouse?Yes both owners of whole freehold houses and individual room owners with a leasehold title will be free to sell after completion of the purchase.
It is worth noting that this is a high yielding investment particularly attractive due to the:
� High Yielding New Build Student Property located within 1 mile of Huddersfield University
� High Specification, Fully Furnished with excellent living space and facilities
� 50% lTV Finance available
� Fully Managed with low maintenance costs
� High demand for purpose build student accommodation in Huddersfield
11.Other costs?Closing costs will include legal fees as above, management set up fee (approx £150 per room + VAT), stamp duty as above, plus any finance arrangement fee. Owners will be responsible for utilities.
STUDENT ACCOMMODATION HUDDERSFIELD
FAQs
With offices in london and Hong Kong,
the ALLIANCE GROUP has an
established and professional
management team, who have assisted
thousands of clients from around the
globe for more than 20 years.
Excellent results and achievements have
been accomplished with a focus on
diligence, the right investment
approach, and a great emphasis of
building relationships through
delivering results and service to our
clients.
ALLIANCE GROUP develops and
manages high quality, income producing
assets on behalf of all investors
LONDON OFFICE14 Duke StreetMayfairlondonUnited Kingdom
T +44 020 7409 3055E [email protected]
HONG KONG OFFICERm 1204, Kinwick Centre32 Hollywood RoadCentralHong Kong
T (852) 2242 8989E [email protected]
www.gp-alliance.com
THE ALLIANCE GROUP
AUTHORISED SEllING AGENT(S)
The information is made available to you for your personal use and must not be given, shared or communicated with any other
person except for your own professional advisors for the sole purpose of obtaining their professional advice.
We endeavour to provide up to date, accurate and complete information but make no guarantees or representations as to the
accuracy, reliability or completeness of the information contained herein including changes to taxation legislation etc.
Subject to contract.
The developer reserves the right to alter plans, designs and specifications that may be required and therefore descriptions of the
project, buildings, location or development particulars, specifications including artists impressions and images of the development
are given in good faith and believed to be correct, but they do not form part of any offer or solicitation and are intended only as a
general guide.
Further information will be contained within the legal pack provided by the solicitors and purchasers are advised to verify
information with the solicitors.