KNIGHT KNOX INTERNATIONAL
+44 (0)161 772 1370
KNIGHTKNOX.COM
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.
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Investment Highlights ·
Assured NET rental returns of 9.2% for 3 years
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High rental demand in local area
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Low void periods
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On-site management and appointed lettings agent
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Exit strategy in place
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Local council supportive of affordable, purpose-built student accommodation
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Why invest in student accommodation? Continuing to outperform all other forms of
market and the increase in the number of
higher-than-average yields in areas that have
property investment in the UK; private, boutique
students applying to UK universities from outside
a severe shortage of private, high-quality
student residences are one of the most lucrative
of the UK. Students from the European Union
residences. Minerva House is our latest boutique
ways of expanding an investment portfolio, due
and overseas currently account for over a sixth
student project, identified as a prime investment
to the stable yields and low void periods which
of the UK’s student population, with the number
opportunity and delivered by an experienced
are common for this type of property.
of non-domiciled students studying at Higher
developer in the student accommodation market.
Education institutions in the UK predicted to rise The demand for high quality student
to 7.6m by the year 2025.
accommodation is showing no signs of
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Average yields for regional cities currently stand at 6-6.5% across the country, but by choosing to
abating, as UK university places are still heavily
Here at Knight Knox International, we pride
invest with Knight Knox International in Minerva
oversubscribed with only 10 places available for
ourselves on being considered specialists at
House, investors can receive 9.2% assured
every 14 applicants, placing university-owned
selling boutique student accommodation to
NET yields for three years. Fully managed and
accommodation under an increasing amount of
the private investor market, with more than 10
designed completely with students in mind, the
strain, as they struggle to provide the standard of
completed, high-yielding developments to our
project is due for completion in December 2013.
accommodation required in today’s market place.
name over the past 18 months alone.
This trend for a higher-standard of living is fuelled
By focussing on regional university locations
by the globalisation of the Higher Education
like Nottingham, we are able to offer investors
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Minerva House One of the most popular university destinations in the UK, Nottingham is currently experiencing a severe undersupply of bespoke student housing, to accommodate the more than 55,000 students which annually descend upon the city. In direct response to this rising demand, Knight Knox International is proud to introduce Minerva House, our latest student accommodation project located in the heart of Nottingham. Built over five floors, the residence is comprised of 151 individual studios which have been packaged into three different investment options (standard, premium and deluxe), in order to cater for all levels of student budget.
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Students living at Minerva House will be part of a unique community, with access to range of bespoke communal facilities and amenities, including a fully-equipped gymnasium, entertainment lounge, laundry, secure bicycle storage and free broadband throughout the residence. Within walking distance of Nottingham Trent University and only a short bus ride away from the University of Nottingham, students are perfectly placed in the heart of a thriving community, close to all the facilities and amenities they could need, including shops, restaurants and bars.
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investment overview Purchase Price: Gross Rental Income: Maintenance Fee: Management Fee: NET Income: NET Yield:
£48,250 £5,760 £921.60 £403.20 £4,435.20 9.2%
Comprised of 151 self-contained studios, there are three investment options to choose from at Minerva House: • • •
Studios at £48,250 Premium Studios at £55,000 Deluxe Studios at £60,000
Below is an example of the projects return-oninvestment from the purchase of a typical studio unit.
3% Conservative
5% Expected
7% Buoyant
Purchase Price
£48,250
£48,250
£48,250
Annual Rental Income
£5,760
£5,760
£5,760
Projected Future Asset Value
£55,935
£61,581
£67,674
Projected Total Value
£78,111
£83,757
£89,850
(Asset Value + 5Yr Rental Income)
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A rising asset class Accounting for more than ÂŁ740m worth of capital in 2011, according to research by property specialists CBRE, the rise of the UK student accommodation market has been fuelled, in part, by the unprecedented growth in rental prices and high occupancy levels in regional cities. With property experts estimating that universities will generate over ÂŁ500m over the next five years, through the disposal of their existing halls of residence to private sector specialists like Knight Knox International, the future of the student accommodation market is looking extremely bright for investors looking to increase their portfolios with a completely hands-off investment.
490,600 students currently live in private accommodation
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Home to more than 1 million people, including over 55,000 students, Nottingham is one of the most visited cities in the UK, accessible from all major locations both nationally and internationally, due to its excellent air, road and rail transport systems.
Nottingham: A Prime Student Market
Recognised as one of the most popular university destinations in the UK, Nottingham council has recognised the need for purpose-built student accommodation as a solution to the pressing issue of a shortfall in affordable family housing in the city. The Housing Nottingham Plan 2012-2015 highlights that supply far outstrips demand in regards to the number of students looking for affordable lodgings, creating unbalanced communities as there is an ‘overconcentration of students in some areas’. Actively encouraging private developers to provide bespoke housing is part of the council’s new plan and we are delighted to announce the launch of our latest boutique student residence - Minerva House, as part of the solution to the city’s student housing needs. Nottingham is a city committed to its populace and has put into action a heavy programme of regeneration, including over £3.5billion from both private and public funds into the local transport system, infrastructure and green areas. Whilst Minerva House is within a 10 minute walk of Nottingham Trent University and only 15 minutes on public transport to the University of Nottingham, students living in the residence will reap the benefits of the regeneration project, as both the bus and tram networks have been updated in recent years, allowing for ease of movement within the city and easy access to its fantastic range of theatres, museums and shopping venues.
Nottingham Trent University
CITY MAP Each location stated below is within a 10 minute walk of Minerva House ·
Nottingham train station
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Victoria Shopping Centre
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Theatre Royal & Concert Hall
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Nottingham Arts Theatre
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Broadmarsh Shopping Centre
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Nottingham Trent University
Distances to major UK cities
· · · · ·
Sheffield – 55mins (44 miles) Birmingham – 1hr (52 miles) Leeds – 1hr 17mins (72 miles) Manchester – 1hr 51mins (82 miles) London – 2hrs 22mins (128 miles)
Minerva House
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frequently asked questions Is the building built? Yes, the developer will completely refurbish this former office block to the high standard expected of student accommodation today Am I buying as Freehold or Leasehold? 250 years Leasehold What is the address of the site? Minerva House, Spaniel Row, Nottingham NG1 6EP When will the building be completed? December 2013 Are there tenants already in place? No, the building is currently undergoing extensive refubishment Is there a rental assurance? NET rental is assured at 9.2% for the first three years, from completion of the purchase
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What is the projected annual return after year 3? Currently between 8% to 10% NET (conservative after running costs, management fee, service charges and utilities) Is the sale handled by UK lawyers? Yes, the seller solicitors are MCP and the recommended solicitors for purchasers are Blunts of Macclesfield. Both are experienced at handling student accommodation transactions Is there a management company already in place? Yes, the designated management company will be Fortis Student Management 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
When is my rental income paid? This is paid quarterly in arrears direct into your bank account from completion Am I taxed on this income? If you’re a UK resident then yes. If you’re a ‘non-resident’ in the UK then you’re classed as an ‘overseas landlord’ and apply to the HMRC in the UK for exemption - the appointed management company will be able to help with this Can I do anything I want with my studio? 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 Are there any restrictions if I want to sell? Yes, the room has to be sold as student accommodation
purchase process •
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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.
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You are required to pay a reservation deposit.
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Once your Property Consultant has confirmed they have received your paperwork, you will need to instruct a solicitor. Your consultant will be on hand 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. •
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Your solicitor will advise you of the paperwork they will require from you. Please return this promptly to reduce the risk of delays. Your first installment payment will be made when you exchange contracts. Your solicitor will inform you when they have the date for exchange providing you with an adequate notice period, 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. •
After you have exchanged contracts you will receive a welcome letter from the developer which will detail the future service they will provide and include all contact details.
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Your final payment will be due when construction completes.
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)
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about: knight knox international
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We are a long-standing company (a Ltd company since 2004) with an excellent reputation
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We have a large experienced team of over 27 staff, with a collective property experience of more than 200 years
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We have exclusive market-leading products that are hand-picked proven investments that sell in volume
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We cater to all types of clients, from first-time buyers to large investors, helping build property portfolios and establishing good income returns
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We are one of very few companies to experience ‘full market cycles’
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We have a global partner network of overseas agents and on-the-ground specialists
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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 market the best opportunities
“My husband and I have bought many properties now through knight knox international . . . We have a decent portfolio and will no doubt buy more properties with them over the coming years!” Mr and Mrs Lowe, Hong Kong
“It is very refreshing to find a company who keep you informed when they say they will. They know where my interests lie and have always made me aware of opportunities that suit my investment needs” Mr G. Brown, UK
Developer Specialists in the student accommodation market, Knight Knox International is the master agent for Fortis Developments. With an impressive track record in the sector, including Dunn House in Sunderland, Bard House in Nottingham and St. Andrew’s Court In Glasgow, Fortis are taking the concept of student living to another level.
d l o S t Ou
Bard House, Nottingham
d l o S t Ou
Dunn House, Sunderland
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Within walking distance of Glasgow universities, this four-storey former Sheriff’s Courthouse is comprised of 122 self-contained student rooms and an impressive array of communal facilities.
ill le t S ab ail v A
Listed as; Studios, Premium Studios and Deluxe Studios, every room is en-suite and includes kitchenette facilities and furniture, each of which will be competitively priced in-line with the local rental market. Due to the shortage of student accommodation in the city, this boutique residence has already generated a large amount of interest and investors are advised to contact Knight Knox International quickly, in order to secure the best units. Priced from £48,000
St. Andrews’s Court, Glasgow
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Old Market Square, Nottingham
KNIGHT KNOX INTERNATIONAL
+44 (0)161 772 1370
KNIGHTKNOX.COM