X1 Chapel Street, Manchester

CHAPELSTREET

www.knightknox.com

|

+44 (0)161 772 1370

|2

INVESTMENTHIGHLIGHTS •

8% assured NET yields for 5 years

•

Built by an experienced student accommodation developer

•

Prime residential site, located within walking distance to Salford and Manchester Universities

•

Appointed lettings & management agencies in place

•

Completion in time for September 2014 intake

•

Low void periods in student property investments

•

Planning approval granted

33|

WHYINVEST WHY INVEST IN STUDENT ACCOMMODATION?

Continuing to outperform all other forms of property investment in the UK; private, boutique student residences are one of the most lucrative ways of expanding an investment portfolio, due to the stable yields and low void periods which are common for this type of property.

The demand for high quality student accommodation is showing no signs of abating, as UK university places are still heavily oversubscribed with only 10 places available for every 14 applicants, placing universityowned accommodation under an increasing amount of strain, as they struggle to provide the standard of accommodation required in today’s market place.

This trend for a higher-standard of

|44

living is fuelled by the globalisation of the Higher Education market and the increase in the number of students applying to UK universities from outside of the UK.

Students from the European Union and overseas currently account for over a sixth of the UK’s student population, with the number of non-domiciled students studying at Higher Education institutions in the UK predicted to rise to 7.6m by the year 2025.

Here at Knight Knox International, we pride ourselves on being considered specialists at selling boutique student accommodation to the private investor market, with more than 10 completed, high-yielding developments to our name over the past 18 months alone.

By focussing on regional university locations like Manchester, we are able to offer investors higher-thanaverage yields in areas that have a severe shortage of private, highquality residences. Chapel Street is our latest boutique student project, identified as a prime investment opportunity and delivered by an experienced developer in the student accommodation market.

Average yields for regional cities currently stand at 6-6.5% across the country, but by choosing to invest with Knight Knox International in Chapel Street investors can receive 8% assured NET yields for the first year.

Fully

managed

and

designed

completely with students in mind.

55|

CHAPELSTREET

|6

Occupying a prime location, Chapel Street is at the heart of the Manchester City, offering easy-access to the three universities in the area. Located within a five minute walk of the University of Salford’s main campus and a ten minute bus ride of Manchester Metropolitan University and the University of Manchester, the site could not be more ideally situated.

Students living in the residence will reap the benefits of the regeneration project, as both of the railway stations located near to the site will experience major investment in their entrances and facilities, allowing for ease of movement within the city of Manchester and easy access to its impressive range of theatres, museums and shopping venues.

Chapel Street is an area currently experiencing mass regeneration. These plans will transform the area for the benefit of existing and potential residents, businesses and visitors.

The intent of the scheme is to support the regeneration of the area by creating a traffic calmed area that is more attractive to residents, businesses and investors alike.

Salford is an area which has been boosted by the arrival of Media City UK-the new home of the BBC and ITV. Such developments as this, in addition to the existing Lowry theatre have helped enhance Salford’s tourist trade attracting more than seven million visitors in 2011.

£10 million of investment has already flowed into Chapel Street with much more planned to be spent over the forthcoming years.

Eventually, the scheme aims to generate 11,000 jobs, 220,000sqm of commercial floorspace, 849 homes and 390 hotel rooms.

A bus-service operates nearby the Chapel Street site, which exclusively offers University of Salford students free transport to their building located at the centre of the media hub, while charging members of other universities a small sum.

Home to more than half a million people, including over 50,000 students, Manchester is the third most visited city in the UK, accessible from all major locations both nationally and internationally, due to its excellent air, road and rail transport systems.

Recognised as one of the most popular university locations in the UK, Manchester has three universities-Manchester Metropolitan University, The University of Salford and The University of Manchester.

Having noticed that demand is currently over-reaching supply, we are delighted to announce the launch of our latest boutique student residence-Chapel Street, as part of a solution to the city’s student housing needs.

Occupying a prime location, the Chapel Street location is at the heart of the Manchester City region, offering easyaccess to the three universities in the area. Located within a five minute walk of the University of Salford’s main campus and a ten minute bus ride of Manchester Metropolitan University and the University of Manchester, the site could not be more ideally situated.

The Financial Times in 2012 recognised the need for purpose-built student accommodation in Manchester, when they labelled Manchester’s student market as an ‘opportunity market’ for investors Chapel Street is an area currently in student accommodation, identifying experiencing mass regeneration. These Manchester as a city with a demand plans will transform the area for the beyond the current supply on offer. benefit of existing and potential residents,

77|

INVESTMENTOVERVIEW

Purchase Price: Gross Rental Income: Maintenance Fee: Management Fee: NET Income: NET Yield:

(typical after 3-year rental assurance))

Comprised of 90 double en-suite flats and 3 double en-suite studio flats

Double en-suite Double en-suite studio

Below is an example of the projects return-on-investment from the purchase of a typical double en-suite.

£54,950 £69,950

3% Conservative

5% Expected

7% Buoyant

Purchase Price

£54,950

£54,950

£54,950

Annual Rental Income

£6,375

£6,375

£6,375

Projected Future Asset Value

£63,703

£70,132

£77,071

Projected Total Value

£86,778

£92,207

£99,146

(Asset Value + 5 Yr Rental Income)

|8

£54,950 £6,375 £1,250 £460 £4,415 8.3%

“Total capital investment in the sector more than doubled to over 2.7bn pounds in 2012�

9|

University of Manchester Established in 1824, the University of Manchester has recently emerged as the third strongest university in the UK in terms of its research power.

A member of the prestigious Russell group, over 40,000 students choose to study at the university and 92% of these students are set to go straight into employment or further study.

Located in the heart of Manchester’s city centre in close proximity to Piccadilly Station, the university’s campus is overflowing with culture and heritage, with such historic gems as the Whitworth Art Gallery and the Manchester Museum on-campus.

The university has invested £750 million in buildings and facilities since 2004 and is currently putting another £1 billion into further teaching and student facilities. This investment hopes to help the university in its strive to become one of the top 25 universities in the world, and with more Nobel Laureates on the staff list than any other UK university, this is a target which they are more than able to achieve.

Manchester Metropolitan University Originally a centre of Technology, Art and Design, Manchester Metropolitan University was eventually granted its university status in 1992-a shining example of the UK’s new generation of universities.

With more than 1000 courses, it is no wonder that the university received the highest number of undergraduate applications out of all the UK universities in 2011. The university is committed to growing the local economy, helping to train the future talent of the region with more than

| 10

70% of graduates opting to stay and work in the North West.

The university is comprised of six campuses; five in Manchester and one in Crewe. The central Manchester campuses form part of the largest higher education campus in the UK and one of the most extensive education centres in Europe.

University of Salford In 1967 the University of Salford was established after Her Majesty the Queen handed over the Royal Charter. Traditionally, the 20,000 students and 2,500 members of staff have worked to serve the needs of industry, commerce and education.

However recently, the university has moved into the new-age. Although still carrying a strong focus on industry, the university is concentrating its efforts on media and technology, with a new digital learning, teaching and research space located in the centre of MediaCityUK. This technology hub is where world television centres such as the BBC and ITV reside and students are now perfectly placed to work closely with these media giants and to help shape the future of the media sector in the UK. The campus is located only a mile and a half away from Manchester City Centre and a free bus service operates from the site, carrying students to and from MediaCityUK. Prospective students are set to reap the benefits of a ÂŁ650m regeneration scheme, centred at transforming the woodlands of the current campus into an even more beautiful location in which to study.

11 |

CITY LIVING: MANCHESTER Home to more than half a million people, including over 50,000 students, Manchester is the third most visited city in the UK, accessible from all major locations both nationally and internationally, due to its excellent air, road and rail transport systems.

Recognised as one of the most popular university locations in the country, Manchester has three universities Manchester Metropolitan University, The University of Salford and The University of Manchester.

The Financial Times in 2012 recognised the need for purposebuilt student accommodation in Manchester, when they labelled Manchester’s student market as an ‘opportunity market’ for investors in student accommodation, identifying it as a city with a demand beyond the current supply on offer.

Having noticed that demand is currently over-reaching supply, we are delighted to announce the launch of our latest boutique student residence Chapel Street, as part of a solution to the city’s student housing needs.

12

| 12

13| 13

CITYMAP 1

12 minutes to Market St, main shopping district

2 30 minutes walk to the University of Manchester

3

30 minutes to Manchester Metropolitan University

4

12 minutes walk to the University of Salford

5 20 minutes to Manchester Central Library 6

7

20 minutes to Piccadilly train station 10 minutes to Victoria train station

Distance to nearest cities Leeds – 42 miles Liverpool - 34 miles

Birmingham – 86 miles London – 200 miles

| 14

1 STREE T CHAPEL ! is h e r e

7

4

1

6

2 5

2

3 4

3

15 |

FREQUENTLYASKED QUESTIONS Is the building built?

Is there a rental assurance?

No, Chapel Street will be a newbuild development designed and furnished to the high standards now expected from private student accommodation

NET rental is assured at 8% for the first five years, from completion of the purchase

Am I buying as Freehold or Leasehold?

999 years Leasehold

What is the address of the site?

| 16

Is the sale handled by UK lawyers?

Yes, the seller solicitors are MSB Law and the recommended solicitors for purchasers are Blunts of Macclesfield.

Both are experienced at handling student accommodation transactions

272 - 280 Chapel Street, Salford, M3 6FA

Is there a management company already in place?

When will the building be completed?

Summer 2014

Yes, the designated management and letting agent will be X1 Management Ltd and the designated lettings agent will be X1 Lettings Ltd

Are there tenants already in place?

When is my rental income paid?

No, this is a new-build property and will be completed and ready for the September 2014 intake

This is paid quarterly in arrears direct into your bank account from completion

Can I do anything I want with my room?

No, each room will be leased back to the management company on a rolling agreement so that the whole building - in its entirety - can be let as student accommodation

Can I resell my unit?

Yes, you can sell at any time after exchange of contract. Knight Knox International has a dedicated resale site, ‘studentpodshop.com’ which offers investors an exit strategy for their investment

Are there any restrictions if I want to sell?

Yes, the room has to be sold as student accommodation

17 |

PURCHASEPROCESS

Once your unit(s) has been selected with the help of your property consultant, please complete the reservation agreement and return along with a copy of your passport, recent utility bill and your deposit. The bank transfer details will be found on the reservation agreement.

You are required to pay a reservation deposit.

Once your Property Consultant has confirmed they have received your paperwork, you will need to instruct a solicitor. Your consultant will be on hand

| 18

to help you with this should you require assistance, as we have a selection of recommended solicitors who are experienced in handling student accommodation investment transactions.

at the time of exchange you will also be required to sign and return your contracts. If you are unable to do this due to your location your solicitor will be able to act as your Power of Attorney. Please note that your solicitor may charge a fee for this service.

Your solicitor will advise you of the paperwork they will require from you. Please After you have exchanged contracts you will receive return this promptly to reduce a welcome letter from the the risk of delays. developer which will detail the future service they will Your first installment payment provide and include all will be made when you contact details. exchange contracts. Your solicitor will inform you Your final payment will be when they have the date for due when construction exchange providing you with completes. an adequate notice period,

STAGE 1

STAGE 2

STAGE 3

STAGE 4

Reservation form and deposit of ÂŁ6,800

Solicitor instructed, legals and sales pack sent out

50% of balance on exchange of contracts within 28 days

Remaining balance due on completion of building

(includes Knight Knox International reservation fee)

19| 19

ABOUTKNIGHT KNOX INTERNATIONAL

We are a long-standing company (a Ltd company since 2004) with an excellent reputation

•

We have a large experienced team of over 30 staff, with a collective property experience of more than 200 years

• • We cater to all types of clients, from first-time buyers to large investors, helping build property

We have exclusive market-leading products that are hand-picked proven investments that sell in volume

| 20

portfolios and establishing good income returns

We are one of very few companies to experience ‘full market cycles’

• • We sell property in over 50 countries worldwide and have local expertise on the ground in every location • Most of all, our clients buy with us again and again because we are honest, experienced, professional and We have a global partner network of overseas agents and on-the-ground specialists

market the best opportunities

21 |

THEDEVELOPER

X1 Developments is an investment company based in the heart of Liverpool, which meets the needs of UK and overseas investors looking for an organisation that offers exceptionally high quality investments, which have been selected and overseen by individuals who have unrivalled knowledge, experience and background in the product, market sector and location.

Not only does X1 Developments offer an exciting portfolio of real estate investments, but it also offers a follow-through service via its sister company X1 Lettings, which carries the same high level of expertise in order to manage and protect our clients long term investments.

X1 Developments is THE Company for anyone looking to invest in Liverpool & throughout the U.K., with a track record of past developments which speaks for itself.

| 22

X1DEVELOPMENTS

IV

US CL EX EV ED

OVER 90% SOLD OUT

T

EN

M OP EL

ALL UNITS NOW SOLD OUT! 100% LET

X1 Salford Quays, Manchester Arndale House, Liverpool Comprised of 160 double-ensuite rooms, free Sky TV and within walking distance of Liverpool universities, X1 Arndale House is perfectly positioned for students studying in the city.

On course for completion in Q4 2013, the development offers investors assured rental returns for the first five years and is let and managed by an experienced student accommodation company.

An exciting new-build development in Manchester, X1 Salford Quays is a four-storey, 60 unit apartment block that is sure to be on the radar of anyone looking to purchase a residence in the city or an investment property in this popular rental area.

Investors will recieve an assured return of 6% NET yield for 5 years from completion.

Borden Court, Liverpool A stylish refurbishment project comprised of 119 single unit rooms spread over four floors, X1 Borden Court is within walking distance of the universities and contains a complete shopping centre on the ground floor – perfectly accommodating the needs of today’s students.

Currently 100% let; investors are receiving an assured 10% NET rental yield for the first year of their investment.

23 |

Market Leaders in Worldwide Property Investment www.knightknox.com | +44 (0)161 772 1370

Knight Knox International provides the information contained within this document 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.

0413V1