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BURGESS HOUSE NEWCASTLE
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Burgess House, Newcastle www.knightknox.com | +44 (0)161 772 1370
BURGESS HOUSE NEWCASTLE
Our twelfth project to be launched in partnership with Fortis Developments, Burgess House is a five-storey development located on St. James Boulevard, in the midst of all that the city has to offer. A conversion of a former office block, the building will be transformed into 110 studio units, complete with communal areas including a gymnasium, laundry room, secure bicycle storage and fully-equipped entertainment lounge, designed to cater for the needs of today’s students. As with all Fortis Developments’ properties, Burgess House will be let and managed by an experienced rental management company who will be based on-site, to assist with any queries that residents may have and ensure the smooth day-to-day running of the building.
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Like the rest of Britain, Newcastle-upon-Tyne is experiencing a severe shortage of housing stock, exacerbated by the demands placed on the local market by the more than 49,000 students that descend annually into the city, to study at the renowned universities of Newcastle and Northumbria.
Within walking distance of the city centre and Newcastle United football ground, not to mention both university campuses, students living at Burgess House also have access to excellent local and national transport links, to allow them to explore their new home away-from home.
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KNIGHT KNOX INTERNATIONAL BUY WITH CONFIDENCE
A market leader in the UK buy-to-let sector, Knight Knox International has launched 35+ developments onto the UK market, totalling more than 3,000 units at a value in excess of ÂŁ195million.
By forging strong relationships with a select number of developers, we work in partnership with them on their projects and, as such, are able to provide our investors exclusive access to prime developments across the country.
The student property sector has consistently outperformed all other asset classes in the UK market, and industry reports continue to highlight an imbalance between the number of beds available, and the number of students attending Higher Education institutions, particularly in regional cities and towns.
By targeting cities which have high student populations and a lack of purpose-built accommodation, we have developed a portfolio of developments that deliver higher-than-average returns in a market that is set to perform well for years to come.
35+
Knight Knox International has launched over developments in the UK, totalling more than 3,000 units at a value in excess of
ÂŁ195million
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Burgess House, Newcastle www.knightknox.com | +44 (0)161 772 1370
I have been very pleased with the professionalism and good ethics of Knight Knox International. They seem to pick reliable developers who have a good track record. I would always favour Knight Knox for property investments. Mrs S. Morley
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STUDENT ACCOMMODATION The UK’s leading asset class
According to Knight Frank’s 2014 Property Insight Report, the student accommodation sector has produced positive rental growth every year of the economic downturn. This pervasive demand for a British education shows no sign of fading as university applications are at record highs. UCAS figures for the 2013/14 intake have indicated that nationally, university acceptances are at their highest ever levels. By choosing to invest in student accommodation in a regional town or city, investors will receive higher than average yields in areas that have a shortage of accommodation, guaranteeing recurrent rental demand in a prosperous market. Compared to other property investments, student accommodation stands out by dependably offering high returns. According to LSL Property Services, investors are able to expect an average of over 7% as a rental yield, which far exceeds typical values of 5.3% for residential buy-to-let properties in the UK. The popularity of student accommodation among investors is effectively driven by reliable occupancy rates of 99% or higher, as well as the structural undersupply. Investors are capitalising on the rising demand of boutique, high-quality accommodation, in addition to the shortage of passable properties that fulfil students’ needs, to generate high returns, not found anywhere else in the UK’s property market. Knight Frank predicts this asset class is set to continue to be strong in the future, saying: “We forecast 2014 will see increased rental growth, sharpening yields and improved investment performance for existing funds.”
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Burgess House, Newcastle www.knightknox.com | +44 (0)161 772 1370
Number of students studying at Newcastle University – 21,190 Number of students studying at the University of Northumbria – 27,815 Newcastle-upon-Tyne is now home to over 49,000 students from Newcastle University and Northumbria University. Knight Frank, in their 2014 student property report, stated “whilst structural undersupply is a feature of all UK core markets it remains most pronounced in locations such as London, Edinburgh, Newcastle and Bristol”. The North East retains the highest number of graduates out of any region, reported at 80% according to a report by Million+, showing that the region’s universities contribute most strongly to the local economy.
8,351 university owned beds
49,005 students
Savills’ Student Spotlight report names Newcastle as one of the worst cities for students occupying HMOs, and claims over 3,000 homes, currently occupied by students, could be unlocked for family use and result in £3.2 million additional council tax revenue per annum, if more purpose-built student accommodation was raised to house students. Both Newcastle and Northumbria University saw a high increase in the number of accepted applicants from 2012 to 2013, a rise of 12.5% and 11.5% respectively, putting increasing pressure on the local housing market.
Newcastle University 2012 applicants
Newcastle University 2013 applicants
Northumbria University 2012 applicants
Northumbria University 2013 applicants
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Burgess House, Newcastle www.knightknox.com | +44 (0)161 772 1370
NEWCASTLE & HIGHER EDUCATION
Reported as being ‘structurally undersupplied’ by leading property experts Knight Frank in their 2014 Student Property Report, Newcastle is the perfect location for Burgess House, our newly launched boutique student accommodation project. Home to more than 49,000 students studying at two renowned universities, the city requires purpose-built accommodation to alleviate the strain that is being placed on the local housing market.
Newcastle University
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Famed for being a regional centre for the arts, theatre and live music, students studying at Newcastle University will also have access to its 24hr library, which has won the Government’s Charter Mark for excellent customer service five times in a row – the only UK university to have achieved this level of excellence.
With its first-class sports facilities and an £8million refurbishment of its students union, the university also has one of the largest careers services in the UK and has won several national awards in this sector, making it an extremely desirable destination for students.
Northumbria University
Comprised of two campuses connected by a free shuttle bus, Northumbria University is the largest Higher Education institution in the North East of England, with the highest number of employed graduates in the region. The university recently saw an increase in accepted applicants of 11.5%, no doubt a result of the award-winning bars and club venues on its campus and its fantastic students union, which was voted Union of the Year in 2011.
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INVESTMENT OPPORTUNITY FINANCIAL BREAKDOWN
A fantastic addition to any property portfolio, Burgess House is competitively priced for the local market, with two different levels of investment to choose from:
Premium Studios: Deluxe Studios:
Priced at £64,995 Priced at £68,995
Offering an assured NET rental yield for the first two years, the building will also be let and managed by an experienced team, with the added benefit of a managed office on-site.
Financial projection of premium studio * (Purchase Price £64,995) Gross Rent: £7,440 NET Yield: 9.15% NET Income: £5,950 Maintenance Fee: £1,044 Management Fee: £446 Weekly rent: £155
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Burgess House, Newcastle
www.knightknox.com | +44 (0)161 772 1370
* All figures are based on forecasts provided by the developer, are indicative only and are subject to change. Any financial information provided in this document is intended as a guide and does not constitute a contract.
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Burgess House, Newcastle www.knightknox.com | +44 (0)161 772 1370
LOCATION INFORMATION NEWCASTLE
Local amenities 1. Newcastle Central Metro 2. Eldon Square Shopping Centre 3. Newcastle Business School 4. St James’s Park 5. Newcastle University 6. Northumbria University
0.3 miles 0.5 miles 0.5 miles 0.6 miles 0.9 miles 1.1 miles
Newcastle, England
Distance to major UK cities Edinburgh, Scotland Manchester, England Nottingham, England Birmingham, England London, England Cardiff, Wales
106 miles 143 miles 159 miles 205 miles 282 miles 321 miles
Distance to major international cities Paris, France 556 miles Amsterdam, Netherlands 603 miles Berlin, Germany 951 miles Moscow, Russia 2,057 miles Abu Dhabi, United Arab Emirates 4,567 miles
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DEVELOPER PROFILE FORTIS DEVELOPMENTS
Setting the standards for student, leisure and residential development throughout the UK! Fortis Developments Ltd is one of the fastest growing development companies in the UK. The company was created to provide luxury developments, achieving the growing standards in the marketplace. Firmly established at the forefront of the industry, Fortis Developments is now one of the most experienced and extensive developers of student accommodation, luxury apartments and regeneration schemes in the UK. We undertake luxury student accommodation and regeneration projects in prime locations at key university sites nationwide. Along with our careful choice of locations, the cornerstones of our success have been a combination of creativity and functionality. It is our objective to create highly sought after developments in growing markets around the UK.
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Burgess House, Newcastle www.knightknox.com | +44 (0)161 772 1370
SOL D
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OUT
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Rede House, Middlesbrough
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Perfectly located student accommodation finished to the highest of standards
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Chronicle House, Chester
Purchase Price - £35,995 | Up to 9.5% NET yields for the first 2 years
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St Andrew’s Court, Glasgow
Bard House, Nottingham
Purchase Price - £48,000 | 9.2% NET yields for the first 3 years
Purchase Price - £60,000 | 9.2% NET yields for the first 3 years
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Burgess House, Newcastle www.knightknox.com | +44 (0)161 772 1370
PURCHASE PROCESS HOW IT WORKS
Investing through Knight Knox International is a quick and easy process, simply;
Speak to a Knight Knox Property Consultant and choose your apartment(s)
Complete the reservation form and pay the deposit
Solicitor instructed, legal documents and sales pack sent out
50% of the balance is payable upon exchange of contracts *
Balance of 50% payable upon completion of your apartment
Contact a property consultant today to reserve the best apartment! Tel: +44 (0)161 772 1370 | www.knightknox.com
*Contracts need to be exchanged within 21 days of reservation/planning approval
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FREQUENTLY ASKED QUESTIONS WHAT YOU NEED TO KNOW
Am I buying as freehold or leasehold? 250 years leasehold
What is the address of the site? Burgess House, 93-105 St James Boulevard, Newcastle NE1 4BW
Are there tenants already in place? No, Burgess House is a refurbishment of a former office building
What are the projected annual returns on this project? Returns of circa 9.16% are assured for the first 2 years
Can I receive finance on this development? There is currently no finance offered by the developer
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Burgess House, Newcastle www.knightknox.com | +44 (0)161 772 1370
When is my rental income paid? Quarterly in arrears, direct into your bank account from completion Is there a management company in place? Yes, the designated management company will be Fortis Student Living, who will block manage and let the building Can I re-sell my unit? Yes, you can sell at any time after exchange of contract Are there any restrictions if I want to sell? No, you are free to sell your unit on the open market
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The information contained within this document is intended as a general guide. This information does not constitute an offer or a contract and we (or anyone in our company) do not imply, make or give any representation, guarantee or warranty whatsoever relating to the terms contained within. Any intending investor must satisfy themselves as to the correctness of any of the statements, plans or images contained within. Images are for representational purposes only. The content contained within is correct adhering to the previous statement at the time of publishing.
Burgess House, Newcastle www.knightknox.com | +44 (0)161 772 1370
0414-V1