10% NETT
FIXED INCOME FOR 10 YEARS
Q Studios Student Property (Phase 1) New build UK Student Property | Award winning developer
* Investor Report
Key investment points: S
10% NET fixed yields for 10 years
S
Optional 5% interest on deposited funds during build
S
Independent 10-year structural warranty
S
Effortless & automatic income
S
Zero costs for 10 years
S
Fully flexible resale options
S
Available from ÂŁ69,950
Stoke's only development of student studios
Key development points: S
Phase 1: 153 spacious student studios
S
Award winning developer
S
Prime location near University Quarter
S
Excellent facilities: gym, cinema, study centre
S S
Professional onsite management company
S
Majority of current stock bedroom-only units
Phase 1: 153 studios
Phase 2: 147 studios
Available now
Coming soon
Serious undersupply of student accommodation
Q Studios Student Property
2
Presenting A new build 300-studio student development, ideally situated between two established universities.
Q Studios: aerial view
3
IN THIS REPORT
THE OVERVIEW
5
THE PROPERTY
6-10
THE LOCATION
11-16
I NFOR M ED I NVE STI NG Our vision is to help you to tap into the enormous potential of UK property investing
THE FINANCIALS
17-19
THE TEAM
20-29
4
Keele University
THE OVERVIEW
Investment summary Q Studios is a quality new build Student Property, Property, ideally ideally situated situated opposite opposite an upcoming student village development and within walking walking distance distanceof of two popular university campuses. It also sits directly adjacent to to the the brand brand new new £282 £282 million million 'UniQ' ‘UniQ’ university university campus development. development
This is the
17
th
Student Property with our award winning partner developer
PROVEN TRACK RECORD
With only 7% access to to purpose purpose built built student student en-suites en-suites citywide, citywide, demand demand isis assured for these highly sought after after studio studio apartments apartments -- of of which which there thereare are 153 in Phase I of the development. Indeed, only 21% of the city’s growing growing student student population populationcurrently currentlyhave have access to any form - including form of Purpose Purpose Built Built Student Student Accommodation Accomodation - including university halls. Professional onsite management management and and aa range range of ofexcellent excellentfacilities, facilities, including a gym, cinema and study centre further enhance the attraction attractionof of Q Studios to tenants and property property investors investors alike. alike. Buyers receive an effortless 10% NET with NETTincome incomefixed fixedfor for1010years, years, with zero costs during this period. The award winning developer also offers an optional 5% interest on all on all deposited funds during construction, as well as as aa unique unique 10-year 10-year structural warranty. warranty.
The only NHBC-certified Student Property developer
Fully managed 24/7 by professional onsite team
5
THE PROPERTY
Q Studios: studio student accommodation
6
THE PROPERTY
The best in student living Q Studios is a brand new 300-apartment purpose built Student Property set within a beautifully landscaped courtyard. Each studio is completely self-contained, with an open plan living space that includes both study and social areas, as well as a double bed and fully-equipped kitchen. The en-suite bathroom contains a cubicle shower, wash basin and toilet. Construction by our award winning developer ensures the high standard of furnishings, fixtures and fittings throughout. These apartments are complemented by an excellent range of facilities that further increase the property’s appeal, particularly given the limited nature of alternative options (see page 8). The fact that student studio rental growth is outpacing all other unit types (Knight Frank) clearly indicates the high levels of demand for this accommodation form.
Q Studios: cinema room
( Cinema
Fully equipped gym
n
Laundry
Secure bike storage
Landscaped courtyard
Communal study centre
Enhanced security systems
! Lift access to all floors
Management Office
Car parking
Residents will enjoy a carefree lifestyle in one of Stoke’s safest districts. All-inclusive bills reduce budgetary pressures, while the onsite management team is responsible for all maintenance and housekeeping.
7
THE PROPERTY
Q Studios: cinema room
8
THE PROPERTY
Bike
Property plan - ground floor
Store Bike Store
Bike Store
032
4
Ground level car park
017
034
035
8 01
9
01
0
02
Study Hall
036
1
02
2
02
3
02
5
02
02
Courtyard
6
02
7
02
9
02
1
03
Bike Store
033
8
02
0
03
Each studio includes: S Super high speed Wi-Fi (100MB) S High specification fixtures & fitting
Laundry
S High quality furnishings
Gym
Lifts
S Keyless entry system Lounge/ cinema
S Quality white goods
Plant Room Bin Store
Reception Secure gated entrance
S En-suite bathroom S Comfortable desk space
Communal facilities
9
THE PROPERTY
Comparison with other properties Both of Stoke’s universities have a very limited supply of accommodation.
Competitor developments in Stoke-on-Trent
Secondly, these rooms are often unappealing to students - the vast majority have shared shower and kitchen facilities, with only around a quarter benefiting from en-suites. What’s more, there are only 605 units in privately owned Purpose Built Student Accommodation across Stoke. This means that 17,941 students have no access to their preferred accommodation.
UNIT TYPE
Firstly, they are limited in terms of numbers, with only 18.4% of students having access to universityowned halls of residence.
Bedroom
En-suite
Studio
Q Studios
-
-
300
Liberty Court
-
345
-
Lomax Halls
-
120
20
Caledonia Mills
-
114
6
Parking
Landscaped courtyard
Gym
Cinema
"Stoke exhibits all the characteristics we have come to expect from regional property investment locations in the UK. The poor standard of current stock and nominal supply pipeline makes the
Research from Knight Frank shows the growing student demand for studios. Given that there are only 26 other purpose built student studios in the city, we expect our property to be very popular.
city poorly equipped to meet fast growing demand."
10
THE LOCATION
G
University Quarter
City Centre
City Centre
Attractive student location
University Campuses
Q Studios is situated in the highly sought after Hartshill area, with its wide variety of shops and services. The city’s new University Quarter is directly adjacent, making it appealing to students at both local universities. The property also benefits from being close to all transport links, while the city centre is just a little over a mile away.
Hanley Park
D
Castle Park
Dual demand from two universities University library
On-the-doorstep amenities
A
Q Studios
Convenient access into city centre
Staffordshire Uni. campus
E
Students' Union
Stoke-on-Trent Railway Station
Keele University main campus: 10-minute drive
F
B
Keele Hospital Campus
C
Supermarket
Distance to key locations from Q Studios
On foot
University library
Stoke-on-Trent Railway Station
Staffordshire University
Supermarket
Hanley Park
Students' Union
Keele Hospital Campus
City Centre
10 minutes
8 minutes
7 minutes
10 minutes
11 minutes
12 minutes
25 minutes
26 minutes
B
C
D
E
F
G
6 minutes
6 minutes
4 minutes
6 minutes
8 minutes
12 minutes
A By bike
5 minutes
5 minutes
11
THE LOCATION
/ Introduction to Stoke
a Victoria Hall, Cultural Quarter
Stoke-on-Trent is located in England’s West Midlands region, just an hour’s drive from both Liverpool and Manchester, and a 90-minute train ride from London. The city boasts the UK’s second fastest growing local economy over the last five years. It is going from strength to strength, with more than £1.5 billion of regeneration funding
UK's second fastest growing economy
being invested over the next decade. Stoke is home to two highly respected universities and 22,700 students. Its £282 million University Quarter initiative is part of a strategy to attract 17,000 more students
UK City of Culture 2021 Bid
2 internationally respected universities
over the next decade, placing additional pressure on undersupplied accommodation options. Europe’s current City of Sport and a UK City of Culture nominee, it is one of the greenest cities in the UK, with over 1,380 hectares of open green space.
a Smithfield Civic Centre, Hanley
Critical undersupply of accommodation
12
THE LOCATION
Why choose Stoke-on-Trent? THE ECONOMY
UK’s second fastest growing local economy (Oxford Economics)
Economy has grown by 18.6 % since 2010 - national average just 3.2%
THE CITY
Top 10 city for private sector employment growth (Centre for Cities)
European City of Sport 2016
SUPPLY/DEMAND
2nd best UK city to start a business (Quality Formations)
One of the UK’s greenest cities, with over 1,380 hectares of park and open spaces
THE UNIVERSITIES
. 22,700-strong university community, with impressive levels of student satisfaction
21% student access to purpose built accommodation, including university halls
Only 7% access to ensuite or studio student accommodation
Keele University: University of the Year for Student Experience 2017 (The Times)
Staffordshire University: centralising operations in Stoke – 3,000 students relocated to city in 2016
New £282m University Quarter to drive 75% growth in student numbers by 2026
13
THE LOCATION
O Hotspot for students
Keele University
Staffordshire University
Ranked a top 4% global university
Centralising operations in Stoke
Keele has nearly 10,000 students and has invested over ÂŁ115 million in its two campuses in Stoke over the last decade.
Staffordshire University is home to 14,750 students in Stoke, spread across its Leek Road and College Road campuses.
The university is now ranked 34th in the country and is recognised by UCAS as one of the fastest growing universities in the country.
It's a pioneer of two year fast-track degrees and is working to create an award-winning, teaching-led university by 2017, with a focus on employability, enterprise, and entrepreneurialism.
It has been first for student satisfaction every year since 2014 in the National Student Survey and is the University of the Year for Student Experience 2017 (The Times and the The Sunday Times).
The university is centralising operations in Stoke; it has invested over ÂŁ42 million in its facilities here, and 3,000 computing and entertainment technology students were transferred to the city in 2016.
14
THE LOCATION
/ UniQ: Stoke’s University Quarter Investing in world-class education facilities
The University Quarter is a £282 million initiative designed to create a state-of-the-art learning site in Stoke-on-Trent.
Stoke-on-Trent College, University Quarter
Covering approximately 400 acres, it represents the largest collaborative project for higher education in the UK. UniQ is home for Staffordshire University, Stoke-on-Trent College and Stoke-on-Trent Sixth Form College, with the six-year construction process completed in 2016. Located adjacent to Q Studios and Stoke's railway station, this investment has rejuvenated the city centre and is encouraging further commercial and residential developments.
Q Studios
UniQ will attract 17,000 more students to Stoke
It is part of a strategy to attract 17,000 more students to Stoke-onTrent over the next decade.
15
THE LOCATION
A critically " undersupplied city Accommodation supply far below UK average Stoke-on-Trent is home to 22,700 students, enrolled at Keele University and Staffordshire University. Limited accommodation options mean that they are reliant on private accommodation options in a city where strict legislation limits student access to residential housing. This population has access to just 4,779 units in Purpose Built Student Accommodation (including universityowned halls of residence). At 21%, student access sits considerably lower than the 15.9%, the city's proportion of overseas students UK average of 27% (Knight is three times larger than Frank). the UK average (Knight Frank) - a key demographic for Purpose Built At 15.9%,Accommodation. the city's proportion of overseas students Student is three times larger than the UK average (Knight Frank) - a key demographic for Purpose Built Student Accommodation.y 2024 will further stretct
Local provision of Purpose Built Student Accommodation There are currently 4,779 purpose built bed spaces in Stoke-on-Trent (including university-owned stock).
Only 7% of the city's student population have access to purpose built student en-suite or studio accommodation.
Critical undersupply of student rooms
22,700
Total students requiring accommodation
4,779 Total PBSA
21.0% Percentage supply
Supply shortfall of 79% (17,921) Plans to attract 17,000 more students by 2026 under Stoke's University Quarter initiative will further stretch this property supply shortfall.
16
THE FINANCIALS
a Stoke Minster
OPTIONAL 5% INTEREST ON DEPOSITED FUNDS DURING BUILD
Financial overview
10% 10 % 10% 10% 10% 10% 10 % 10 % 10 % 10 %
Example of a studio (purchased for £69,950, units available from £69,950 to £78,950)
Purchase Purchase price Fixed legal fee
Operations NETTfixed fixedincome income 10% NET Management fees fees Management
10% fixedincome incomefor for10 10years years 10%NETT NET fixed
Costs
Zero Stamp Duty*
£0
Management fees
£0
Service charge
£0
Ground rent
£69,950 £894
Every year for 10 years
£6,995 £0
Service charge fee
£0
Ground rent fee
£0
The 10% NETT fixedincome incomefor for1010years years NET fixed
Fixed legal fee, no
enables buyers to earn an effortless effortless income,
hidden extras**
while still maintaining complete control control
Income paid quarterly
over capital.
in arrears
With the onsite management company both highly experienced and incentivised, buyers can simply wait for the income to be delivered
Incentivised management company Priced from £69,950
into their bank account each quarter. * For all purchases less than £150,000 ** We have no control over taxes or levies
17
THE FINANCIALS
% Effortless income NET fixed Buyers receive 10% NETT fixedincome incomeeach eachyear yearfrom fromday day1 1ofof the property becoming operational, with no involvement in property management. Unlike other property forms, the buyer is not responsible for sustaining the quality of facilities, maintaining high occupancy levels, chasing up late rental payments and so forth. This means that they benefit from a completely effortless and reliable income stream arriving into their accounts quarterly in arrears.
Purchase protection during & after the build
Payment Schedule: Option 1: No interest on deposited funds during construction S £5,000 reservation deposit S 40% due on exchange of contracts December S 40% due when build reaches roof height (estimated in May 2017) 2017) S Balance due on completion (less reservation deposit) S Fixed income begins 1st October 2018 - 10% NETT NET annual annualyields yieldsfor for1010years years
Option 2: 5% interest on deposited funds during construction S £5,000 reservation deposit S 40% due on exchange of contracts
directlyinto intobank bankaccount account quarterly arrears quarterly in in arrears S Fixed income paid directly
December S 40% due when build reaches roof height (estimated in May 2017) 2017)
onsitemanagement, management,responsible responsiblefor forevery everyoperational operational S Professional onsite
S Balance due on completion (less reservation deposit)
aspect of the development resale options options S Fixed income period provides fully flexible resale interests aligned alignedwith withmanagement managementcompany company S Your interests warranty S 10-year independent build warranty
S Fixed income begins 1st October 2018 - 10% NETT NET annual annualyields yieldsfor for9 9years years
Option 3: 5% interest on deposited funds during construction S £5,000 reservation deposit S 80% due on exchange of contracts
5% interest intereston ondeposited depositedfunds fundsduring duringbuild build S Optional 5%
S Balance due on completion of construction (less reservation deposit)
sign-off of each phase prior to to S Independent architect sign-off
S Fixed income begins 1st October 2018 - 10% NETT NET annual annualyields yieldsfor for9 9years years
corresponding payment
18
THE FINANCIALS
Ready made resale options
Attractive resale conditions
The resale value of Student Property is based on its ability to generate income. With 10% NE T fixed income for 10 years, buyers benefit from full flexibility regarding the timing of their resale and strong yield-driven capital growth.
40%
You can choose to sell the property at the top, middle or bottom end of the market (7% to 10%), with this decision determining both your profit at resale and how quickly you can sell.
Even with 40% capital growth on exit, you can still offer returns of
7.14% NE T
Yield-driven capital growth (example of studio purchased for £69,950)
The remaining fixed income period is passed on
The table below shows the fixed income passed on to new buyers at resale, with various
to the new buyer, making the conditions better
levels of capital growth (0-40%):
than many off-plan properties.
Resale price
Your profit on exit
Your capital growth
Fixed yields for new buyer
£69,950
£0
0%
£76,945
£6,995
10%
9.1% NETT income
£83,940
£13,990
20%
8.3% NETT income
£90,935
£20,985
30%
7.7% NETT income
£97,930
£27,980
40%
10.0% NETT income
7.14% NETT income
19
THE TEAM
8 Award winning developer We are the exclusive agent masterofagent an award of anwinning award winning developer that developer has been thatoperating has been operating since 2001.since 2001. They are a Top 400 Residential Build Company Company and and all all their new build properties are protected by a unique 10-year structural warranty.
Established in 2001
National award for build quality
Top 400 Residential Build Company
Half a decade's experience in student sector
Proven track record
Fully managed properties
They entered the Student Property sector in its infancy and have developed a robust business model that provides secure high yields. Their Our partnership development nowextends extendsacross across1717Student StudentProperties, Properties,asas well as one large development of luxury Serviced Apartments. Together, we theycarefully carefully handpick handpick selected selected locations locations inin key key undersupplied UK cities.
Contracts are signed directly with the established developer developer –- no third third party partyshell shellcompanies. companies.
20
THE TEAM
Fully operational properties Secure & high yielding Thecurrently We developer have currently 15 fully have 15 fully operational operational UK student UK student properties –properties these have - these all provided have all8-10% provided NET 8-10%on yields NETT schedule yields to onour schedule buyers.
The Box
College Street Village
Pre-Tenanted
Established Student Property
Converted Student Property
Converted Student Property
Buyers received immediate income
to their buyers. Additionally, the first two phases of Additionally, our Westbeach theServiced first twoApartments phases of
Buyers received immediate income
the developer’s have been fully operational Westbeach Serviced since Apartments 2013 and 2015, have respectively, been fully again
Buyers received immediate income
operational providing double-digit since 2013 and NET2015, yields. respectively, again providing double-digit NETT yields. All buyers receiving their All buyers incometheir receiving as income expected as expected
Proven delivery of Proven sector-leading delivery of yields sector-leading yields
•
40 student units
•
24 en-suites
•
16 units across 3 apartments
•
100% occupied since opening
•
100% occupied since opening
•
100% occupied since opening
•
Providing 8% NE T income to
•
Providing 10% NE T income to
•
Providing 10% NE T income to
buyers since April 2016
buyers since August 2014
buyers since May 2015
21
THE TEAM
Fully operational properties Newly operational for 2016/17 academic year
Norfolk Street
Tudor Studios
Jubilee Court
Durham House
Converted Student Property
Converted Student Property
New build Student Property
Converted Student Property
Rented out during difficult springtime period
• 50 en-suites
• Restored Grade II listed façade
• 100% occupied since opening
• Fully tenanted for 2016/17
• Providing 10% NE T income to buyers since April 2014
academic year • Buyers receiving 10% NE T annual income since September 2016
• Adjacent to impressive campus transformation • Fully tenanted for 2016/17 academic year • Buyers receiving 10% NE T
• Closest private development to campus • 100% occupancy from day 1 • Providing 10% NE T income to buyers since September 2016
annual income since September 2016
22
THE TEAM
Developments currently under construction Robust buyer security The developer’s proven business Our proven business model has model has them to provide enabled usenabled to provide properties properties with sector-leading with sector-leading 8-12% NET
Onsite management team:
The Foundry (Phase II)
Westbeach, Devon
New build Student Property
Luxury Serviced Apartments & Spa
8-12% fixed With for incomeNETT fixedincome for 10 years. 10 years. aligned With contracts contracts directlyaligned to this
V SE A PH
directly to this extablished company, established company, buyers will
LE AB L AI AV
effortless income
Buyer interests aligned with freeholder
buyers always always will receive theirreceive yields their yields as expected. A range of payment options
Yield-driven
means that many buyers are
capital growth
already receiving their returns alongside regular construction updates. The 10-year structural structural warranties ensure that the quality of construction on all new builds exceeds UK standards.
•
Extension to established accommodation
•
10% NET fixed income for 10 years
•
Income will begin October 2017
•
160 apartments
•
Two operational phases
•
Providing high NET income to
Fully flexible
buyers since 2013
resale options
23
THE TEAM
Feature properties: available now On
eu
ni
Ph
Fi
na
as
tl
ef t
eV
The Chapel
Westbeach
Scholar's Village
Fully operational Student Property
Luxury Serviced Apartments & Spa
Fully operational Student Property
lp
ha
se
Student Property has been recognised as the UK’s top
Serviced Apartments are the fastest growing hospitality
Scholar’s Village has a prime location at the heart of
performing asset since 2011. This property sits just 320
sector, with demand far outstripping supply.
Bradford’s designated Learning Quarter, just a 2-minute
metres from the university, and has been fully tenanted
Westbeach is located in the UK’s most popular tourist
walk from the university campus. The development has
for over a decade - the result of a housing shortage that
region, and the development’s prime beachside
been fully operational since 2006, and boasts a range of
forces many students into accommodation 2 hours away
location and excellent facilities ensure its popularity
excellent facilities alongside its spacious student
in Lancaster.
among visitors to Westward Ho!
en-suites.
• •
8-10% NETT fixed yields for 10 years
•ș
8-10% NETT yields fixed for 10 years
•
8-10% NETT yields fixed for 10 years
Immediate and automatic income
•
Proven income from operational phases
•
2-minute walk from university campus
•
80% undersupply of student accommodation
•
Redeveloped seafront opened in 2016
•
Fully operational since 2006
•
Proven demand since 2006
•
TripAdvisor Centre of Excellence
•
82.4% undersupply of student accommodation
•
Highly sought after National Park location
•
Available from £160,000
•
Available from £45,950
24
THE TEAM
! Quality onsite
Mezzino: meet your management team
Professional management is central
Mezzino is a professional property management company,
to the attraction of Purpose Built
specialising in the management of Purpose Built
Student Accommodation, ensuring
Student Accommodation.
management
that it remains a high yielding and passive property investment.
Established in 2010, they manage over 1,800 student rooms across the UK and are responsible for the collection of over
The onsite property management
ÂŁ9m in rent from a property portfolio with a total value in
company ensures occupancy,
excess of ÂŁ80m.
sustains the high standards of the property and enables buyers to
Mezzino has established advanced marketing strategies and
receive a completely effortless
is rolling out its brand across the country. This helps to secure
NET income.
high demand from students, ensuring maximum occupancy
The interests of the management company are fully aligned with buyers, being incentivised to ensure 100% occupancy and secure rental yield growth.
The large size of this development allows Mezzino to capitalise on beneficial economies of scale to drive down operational costs.
and catalysing positive rental growth.
ANUK Accredited
RICS Accredited
National Code Accredited
www.anuk.org.uk
www.rics.org
www.nationalcode.org
25
Next steps...
Talk with us today S Your questions answered S View floor plans - check availability S Reserve a unit For Sales Enquiries:
; +44 (0) 203 287 8727 info@emergingproperty.co.uk 1 Level 3, North Block, Wisma Selangor Dredging, 142D Jalan Ampang, 50450 Kuala Lumpur, Malaysia +603 2162 2260 www.csiprop.com
info@csiprop.com facebook.com/csiprop
U K -
www.emergingproperty.co.uk
Informed investing Our vision is to help you to tap into the enormous potential of yielddriven UK property. We are the exclusive agent for an award winning property developer, with oices in the UK and Dubai and supported by a global network of agents. Our consultative approach and committed after-sales team ensure that we keep buyers informed from purchased to resale. Realise your investment goals, speak with us today
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