LSP Brochure Phase 2

Page 1

PHASE 2 OPTO HOUSE

STUDENT ACCOMMODATION EXCLUSIVE

 8% NET p.a. assured for 5 years Location with strong rental demand 

www.csiprop.com

LAUNCHED


About Us

Our Success

Experience Invest Founded in 2004, ExperienceBG Limited is a privately owned London-based independent property specialist, and is considered one of the most established in the industry. As the company has grown, markets have changed. Experience Invest is a new division of the Experience Brand dedicated to non-traditional investment products, innovatively designed to meet the needs of today’s astute

Opportunities are tailored for the current market conditions and provide the opportunity to invest in asset classes seldom available to the individual investor. Student accommodation is widely regarded as a first class alternative investment product that is increasingly popular to investors seeking to diversify their portfolio.

Student Accommodation – Income Generating Asset  First-class turnkey investments  Provide long-term robust income streams  Above average yields  Increasing yields as rental increases

8% NET P.A. ASSURED FOR 5 YEARS

WITH OVER 5 YEARS’ EXPERIENCE AS INNOVATORS AND PIONEERS OF THE STUDENT PROPERTY INVESTMENT MODEL, WE ARE THE LEADING SUPPLIER OF PURPOSE-BUILT STUDENT ACCOMMODATION IN THE UK. OUR GLOBAL RECOGNITION LED US IN 2013 TO SELL OVER 600 PROPERTIES TO CLIENTS IN OVER 50 COUNTRIES WORLDWIDE. OUR PRESTIGIOUS UK HEAD OFFICE IS LOCATED IN CENTRAL LONDON AND WE WORK WITH ALL TYPES OF INVESTORS; FROM FIRST-TIME BUYERS TO HIGH NET WORTH INDIVIDUALS AND CORPORATE CLIENTS.


How does the investment work?

Executive Summary UK Student Accommodation Exclusive

The concept is simple…

venture, designed for investors. An opportunity to invest in the profitable UK student accommodation sector that has proven and sustainable returns. Investors purchase one or more en-suite rooms or studio suites which are leased back to credible management companies to be let out as student accommodation.

SECURED INCOME

The managed turnkey nature of the investment allows

• 8% NET per annum

• Full turnkey investment

• Assured returns for 5 years

• Established management company manages units on your behalf

of increasing rates of returns and capital appreciation. traditional ‘buy-to-let’ investments. A high income yielding asset, it offers owners ease of exit as the market for such assets is well established among pension funds, property trusts as well as private investors.

“THE UK SAW OVER $6.5 BILLION OF INVESTMENT IN ITS STUDENT SECTOR IN THE FIRST THREE QUARTERS OF 2015, OVERTAKING THE US.” SAVILLS WORLD STUDENT HOUSING SPOTLIGHT 2015/16.

FULLY MANAGED

Proven business model designed sector.

8% NET P.A. ASSURED FOR 5 YEARS

PROVEN RETURNS • Delivers a long-term, robust income stream


Student accommodation No.1 choice for property investment in the UK accommodation to investors seeking an alternative to the UK’s more traditional property markets several years ago and during this time the sector has seen phenomenal growth.

Total student housing transactions £5.7 billion £2.369 billion

Income Generating Asset  The student buy-to-let market is now well established with demand increasingly outstripping supply  Consistent occupancy rates of 99% deliver robust long-term, low-risk income streams  Bad debts are virtually non-existent as students pay rent in advance  A total of 163 higher educational institutions in the UK (HESA)  With no cap on the number of students who can study in the UK, Knight Frank forecasts that the number of  3% increase in student numbers (UCAS) 

Our foresight combined with the rapid emergence of the sector has rewarded investors with strong returns. Once considered an alternative to the UK's more traditional property markets, the Knight Frank 2014 Student Property Index shows that total returns from student accommodation outperformed all other property asset classes consistently since 2011.

Key asset class 2016

 The UK attracts 13% of the global market share (HESA)

2 0 1 4 2015 By the end of Dec 2015, Jones Lang Lasalle has noted that student investment should reach 5.7 billion for the year, more than doubling what was registered in the previous year. A similar report from Bilfinger GVA also indicated that 4.3 billion had already been invested up to the end of Quarter 3 2015.

 A record number of over 500,000 places were allocated for the 2014-2015 student intake (UCAS)

Market fundamentals – supply and demand There were around 2.5 million students registered to study at the UK’s 163 higher education institutions in 2011–12*. In 1996/97 there were 1.8 million students and the dramatic expansion in student numbers has left most universities with an acute undersupply of accommodation. Existing housing provided by universities is often outdated and the availability of purpose-built, modern accommodation is a crucial part of their marketing plans to attract the growing student intake. With supply restricted and strong demand underpinning rental growth, now is the perfect time for investors to take advantage of current market conditions. *Patterns and Trends in UK Higher Education 2013 (Universities UK in collaboration for HESA).

8% NET P.A. ASSURED FOR 5 YEARS


International students in the UK A growing number for high specification student accommodation Change in non-EU students by region of origin, 2003-04 and 2011-12

Other Europe

70% North America

32%

Africa

South America

14%

The following summarises the British Council’s forecast of demand for international student places in the UK:

Asia

41%

64%

2011-12

Asia

114,700

188,525

Africa

25,025

35,255

North America

20,540

27,100

Middle East

11,775

26,665

Other Europe

10,495

17,890

South America

3,595

4,090

Australia

2,055

2,475

Higher education students by domicile in UK higher education institutions (2010-11) 298,110 130,115

Total 2,501,290

 In 2003, 4 out of the top 10 countries with the highest demand for international student places in the United Kingdom were Asian, namely China, Malaysia, Hong Kong and India.

Middle East

126%

Australia

21% 2003-04

Main sources of international students British Council

 By 2020, these same countries plus Pakistan will have assumed increasing importance in the top ten.  By 2020, China could account for over 130,000 international students studying in the UK.  Demand from India could grow to almost 30,000 students by 2020.

Source: HESA

8% NET P.A. ASSURED FOR 5 YEARS

2,073,065 Domicile UK EU Non-EU

Source: HESA 2012 Students


Introducing

Opto House at

UK Student Accommodation Exclusive, Luton Fully managed by

8% NET P.A. ASSURED FOR 5 YEARS


The Opportunity

Investment Highlights

Luton, UK

Receive passive returns

London Spring Place is a brand new, purpose-built student accommodation development which provides individual investors with an excellent opportunity to enter the lucrative student property market at an accessible level.

The development comprises fully managed, en-suite rooms and self-contained

 Modern self-contained studios available from £75,380

The en-suite rooms will be arranged in clusters of 6 and will have access to a communal living area and kitchen. The self-contained studio suites will contain ensuite bathrooms and a fully functional kitchenette. With a favourable payment plan spread across the duration of the construction phase, en-suite rooms are available from £63,750 and studios are available from £75,380. Upon completion, units will deliver 8% annual NET returns, assured for 5 years.

CORNERSTONE INTERNATIONAL PROPERTIES HAS BEEN APPOINTED THE EXCLUSIVE MARKETING AGENT FOR LONDON SPRING PLACE, LUTON, IN MALAYSIA. TO TAKE ADVANTAGE OF THIS OPPORTUNITY, PLEASE CONTACT US TODAY AT +6 03 2162 2260

 8% NET p.a. assured for 5 years  Modern en-suite rooms available from £63,750

 250-year leasehold  3% interest paid on deposited funds

8% NET assured for 5 years

Receive a passive income from the UK’s no.1 asset class

8% NET P.A. ASSURED FOR 5 YEARS

 Managed by Opto Living  Established Developer with exemplary track record  Target completion date September 2017

‘WE HAVE UNDERTAKEN COMPULSORY DUE DILIGENCE ON LONDON SPRING PLACE, LUTON TO VERIFY THE BUYING PROCEDURE AND TO SATISFY THAT THE OWNERS OF THE PROJECT ARE IN A LEGITIMATE POSITION TO PROMOTE AND SELL THE INVESTMENT.’


Location

Luton Town Centre

Luton, UK Home to over 24,000 students from over 100 countries, the University of Bedfordshire’s main campus is located in Luton town centre. In 2004, the University was awarded by The Sunday Times with the title of “Best New University.” Its courses in Nursing and Midwifery are ranked number four in the country.

Bus Station Library

The National Student Survey placed the University 28th in the country for student satisfaction, as

GUILDFORD STR

EET

Luton

D OA SR Y’ AR M ST

facilities including £6m Campus Centre housing dance studios and a 280-seat theatre, £8m PE and Sport Science Centre and £1.2m Business Pods, unique in the UK, with work and chill-out areas and meeting rooms.

Luton Train Station 22 mins from London

The Mall Town Hall R

T EE

Sought after location

CH UR

ST

University of Bedfordshire 24,000 Students

CH

The development is situated just 0.6 miles from Luton train Central London. Hourly fast trains operate from Luton train station and take 22 minutes to get to central London. London Luton Airport is roughly 2 miles from the development and is easily accessible by train or bus. The airport is the UK’s 5th largest with almost 9 million passengers recorded using the airport in 2010. A number of mainstream

5

MIN WALK

“THERE ARE ALMOST FIVE APPLICANTS COMPETING FOR EACH AVAILABLE PLACE AT THE UNIVERSITY OF BEDFORDSHIRE,” CRM MARKET ANALYSIS REPORT 2013.

Points of interest*

N

LONDON SPRING PLACE

8% NET P.A. ASSURED FOR 5 YEARS

The Mall

0.3 miles

University of Bedfordshire

0.4 miles

Library

0.6 miles

Luton train station

0.6 miles

London Luton Airport

1.9 miles

* Distances are approximate. Source: Google Maps.


Management Company Opto Living

24,000

appointed as the sole management company of London Spring Place.

University of Bedfordshire Students

As a leader in the student property management market, Opto Living has an in-house team of individuals who will create bespoke marketing campaigns to promote the development to students studying at the University of Bedfordshire.

2,608

available purpose-built beds

Opto Living is fully equipped to manage and market your units on your behalf. Their expertise in the student property market will ensure that your investment is managed and maintained to the highest of standards.

“WE ARE CONFIDENT THAT THE ROOMS WITHIN LONDON SPRING PLACE WILL BE A DESIRABLE CHOICE FOR STUDENTS STAYING IN LUTON. THE BUILDING’S MODERN FEATURES AND ITS CLOSE PROXIMITY TO THE UNIVERSITY CAMPUS AND TOWN CENTRE WILL HAVE A STRONG APPEAL,” OPTO LIVING

“ONLY 28% OF STUDENT ACCOMMODATION MEETS RISING EXPECTATIONS,” 2013 STUDENT ACCOMMODATION TRACKER.

8% NET P.A. ASSURED FOR 5 YEARS


 En-suite and studio suites  24 hour CCTV security and controlled building access  Communal courtyard  Fully equipped state-of-the-art gym  Cinema room  Onsite management team & manned reception  Lounge area with LCD TVs

KITCHEN

• Dining table and chairs

designed to match with bedroom furniture • Integrated electric oven and hob • Stainless steel sink & drainer • Integrated fridge/freezer

room • 42-inch TV to cluster kitchens, meeting rooms and common rooms • Desk and ‘swivel’ chair to every student room

BATHROOMS increased quality control • Contemporary white sanitary ware and large back lit wall mirror • Slimline shower trays with glass screens INTERIOR FINISHES Amtico

 Study and meeting rooms  Visitor parking  Games room with pool table and gaming stations  Onsite laundry  Outdoor leisure and sports facilities to include beach volley ball, basketball, table tennis and an outdoor cinema

• • • •

throughout White painted, square edged skirting boards Low voltage LED lighting throughout Mains smoke detectors USB charging points to all rooms

FURNISHINGS • Double bed and mattress • Built-in wardrobe • Versatile storage space

8% NET P.A. ASSURED FOR 5 YEARS

EXTERIORS • High quality aluminium clad exterior with

• • • • •

feature elevations Grey UPVC framed double glazed windows Communal garden with planting External games area, volleyball and basketball courts Secure cycle parking Contemporary wall mounted external lighting

SECURITY • Secure audio door entry system • CCTV to external and internal areas monitored continually by Building Management • Access control to cluster areas to restrict unauthorized access


Ease of Purchase Financial Breakdown

Investment Returns

Each en-suite room shall be sold on a leasehold basis for a period of 250 years.

INCOME FROM £5,100 PER ANNUM

 Choose your property and pay RM30,000 Reservation Fee  The solicitors will assist the purchaser through to

MODERN EN-SUITE ROOMS

Exchange of Contract within 21 days

DELIVERED FULLY-FURNISHED

 50% of the purchase price is required on Exchange of Contract = £31,875

PURCHASE PRICE £63,750

 30% is payable by 1st of February 2017 = £19,125

NET YIELD:8% ( £5,100 PER ANNUM) ASSURED FOR 5 YEARS

 20% due on Completion = £12,750

FULLY MANAGED OPPORTUNITY SOUGHT-AFTER LOCATION WITH HIGH DEMAND FOR BEDS

*A TEAM OF COMMERCIAL SOLICITORS, EXPERIENCED IN THE STUDENT ACCOMMODATION INVESTMENT MARKET, HAVE BEEN APPOINTED TO ACT ON THE BEHALF OF INVESTORS.

AVAILABLE FROM £63,750 8% NET P.A. ASSURED FOR 5 YEARS

8%

NET RETURNS ASSURED


Ease of Purchase

STUDIO ROOMS

Financial Breakdown

Investment Returns INCOME FROM £6,030 PER ANNUM

Each studio room shall be sold on a leasehold basis for a period of 250 years.  Choose your property and pay RM30,000 Reservation Fee  The solicitors will assist the purchaser through to

MODERN EN-SUITE ROOMS

Exchange of Contract within 21 days

DELIVERED FULLY-FURNISHED

 50% of the purchase price is required on Exchange of Contract = £37,690

PURCHASE PRICE £75,380

 30% is payable by 1st of February 2017 = £22,614

NET YIELD:8% ( £6,030 PER ANNUM)

 20% due on Completion = £15,076

ASSURED FOR 5 YEARS FULLY MANAGED OPPORTUNITY SOUGHT-AFTER LOCATION WITH HIGH DEMAND FOR BEDS

*A TEAM OF COMMERCIAL SOLICITORS, EXPERIENCED IN THE STUDENT ACCOMMODATION INVESTMENT MARKET, HAVE BEEN APPOINTED TO ACT ON THE BEHALF OF INVESTORS.

AVAILABLE FROM £75,380 8% NET P.A. ASSURED FOR 5 YEARS

8%

NET RETURNS ASSURED


Investor Security

Proven Returns

Safeguard of Funds

Hassle-Free Ownership

Is the sale handled by UK lawyers?

Is there a rental assurance in place?

Yes. A team of commercial solicitors, experienced in the student accommodation investment sector, have been appointed to act on the behalf of investors.

When is my rental income paid?

Who will manage my investment?

Rental income is paid quarterly in arrears direct to your chosen bank account from completion.

All units within the development will be managed by a specialist student management company, Opto Living. Opto Living will market, maintain and manage your room on your behalf to provide you with passive returns.

As a non-resident in the UK am I taxed on this income? If you are a UK resident then yes you will be subject to tax. If you are a ‘non-resident’ in the UK then you are classed as an overseas landlord and may apply to HMRC in the UK for exemption.

Can I sell my unit at any time? Investors are permitted to sell at any time after Exchange of Contracts.

Please note we cannot guarantee that an application to receive rent with no tax deductions will be accepted.

“DEMAND FAR OUTSTRIPS SUPPLY IN UK UNIVERSITIES WITH AROUND 1.3 APPLICANTS TO EVERY ACCEPTANCE IN 2012, LEAVING MANY UK STUDENTS UNABLE TO OBTAIN A PLACE AT UNIVERSITY,” THE GUARDIAN.

8% NET P.A. ASSURED FOR 5 YEARS


Next Steps Reserving a unit This bespoke investor report provides a valuable insight into purchasing in our ‘UK Student Accommodation Exclusive’ and incorporates additional information on the student property sector. Please contact your dedicated consultant to discuss or request any of the following:

• Availability • Reserving a unit

“ALL CORE MARKETS CURRENTLY REMAIN STRUCTURALLY UNDERSUPPLIED. WITH STUDENT NUMBERS RISING THE IMBALANCE WILL NOT BE CORRECTED WITHIN THE SHORT TERM,” KNIGHT FRANK 2014 STUDENT PROPERTY INSIGHT.

8% NET P.A. ASSURED FOR 5 YEARS


Track Record d

te e l p

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Total of 147 en-suite and studio rooms Management Company : Opto Living Project duration : 12 months Completion date : Q3 2014

d

te e l p

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Co

Libertas Liverpool Student Accommodation 64 Self contained studios Management Company : R House Lettings Project duration : 12 months Completion date : September 2014

ed t e l

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C

London Park House Luton Student Accommodation

L1 Student Living Liverpool Student Accommodation 74 Self contained studios Management Company : R House Lettings Project duration : 12 months Completion date : September 2014

Chapel Street Luton Student Accommodation

g n i o

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64 en-suite and studio rooms Management Company : Opto Living Project duration : 12 months Completion date : Q1 2016

London Spring Place Luton Student Accommodation

g

On

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117 en-suite and 57 studios Management Company : Opto Living Project duration : 18 months Completion date : September 2016

d

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Co

8% NET P.A. ASSURED FOR 5 YEARS

Artesian Liverpool Student Accommodation 99 Self contained studios Management Company : Liverpool Student Lets Project duration : 12 months Completion date : September 2015


CORNERSTONE INTERNATIONAL PROPERTIES

Tel:

+603 2162 2260

Email: Website:

Disclaimer This document is intended to provide general information concerning the proposed development, construction and management of London Spring Place, New Street, Luton LU1 5DQ. The information provided has been prepared in good faith and to give a fair overall view of the Development. The photographs and electronically generated images, furnishings and accessories featured are for illustrative purposes only. This document and all information provided by us at our web site at www.experienceinvest.com or otherwise is based upon information provided London Luton New Street Student Accomodation Limited. (the Vendor) to ExperienceBG Limited prospective purchasers. Reasonable care has been taken by us in the preparation of this document but we do not accept any responsibility or liability for the information which has been provided by the Developer. We further do not accept responsibility or liability of views or opinions herein provided or provided by us or on our behalf (whether orally or in writing) unless w ns provided in this document. These have been provided by the Vendor and we believe them to be correct. You acknowledge that you should and will make your own enquiries before proceeding to purchase. Nothing in this document is or should be relied upon as a representation, warranty or promise as to the past, present or future performance of Experience, the Vendor or any person directly or indirectly connected with and of them. We recommend Alternative Investment that all appropriate commercial, tax and legal enquiries and advice is obtained before entering into a legally binding contract to purchase a property forming a part of the Development. Copyright in and to this document and its contents belong to ExperienceBG Limited. www.experienceinvest.com

Copyright Experience Invest 2016

8% NET P.A. ASSURED FOR 5 YEARS

CALL NOW

UK Student Accommodation Exclusive Income Generating Asset


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