The Edge
X1 The Edge
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Investment Highlights > 8% NET yield for 5 years > Fully managed and let by X1 Lettings > 231 double en-suite rooms > Built by the developer of X1 Arndale House > Prime location in the heart of Liverpool’s student community
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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
X1 The Edge
X1 The Edge
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An opulent new-build development comprising 231 double en-suite rooms, X1 The Edge will cater for today’s more discerning student, offering bespoke furnishings and a wide range of facilities including communal rooms and a full fitness suite.
Built by the same developer who delivered X1 Arndale House, this seven-storey project will be built on the neighbouring Seymour Street, a thriving high street in the heart of Liverpool and haven for students, as confirmed by the letting figures of X1 Arndale House, which is 100% let for the 2014/15 academic year.
The seven-storey building, which will have amenities including a laundrette, bicycle storage and a private residents’ courtyard, has already received full planning permission from Liverpool City Council, confirming that there is a need for purpose-built student accommodation in the city.
Let and managed by X1 Lettings, X1 The Edge will have a keyless entry system and 24hr on-site security, allowing students and parents alike the peace of mind that the residence will be a secure and safe environment for them to live in.
Brought to you by the developer of popular student residence X1 Arndale House
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X1 The Edge
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Only 10 places available for every 14 applicants to UK universities
Why Invest in Student Accommodation?
Continuing to outperform all other forms of property investment in
Students from the European Union and overseas currently account
the UK; private, boutique student residences are one of the most
for over a sixth of the UK’s student population, with the number of
lucrative ways of expanding an investment portfolio, due to the
non-domiciled students studying at Higher Education institutions in
stable yields and low void periods which are common for this type
the UK predicted to rise to 7.6m by the year 2025.
of property.
By focussing on regional university locations like Liverpool, we are
The demand for high quality student accommodation is showing
able to offer investors higher-than-average yields in areas that
no signs of abating, as UK university places are still heavily
have a severe shortage of private, high-quality residences. X1 The
oversubscribed with only 10 places available for every 14 applicants,
Edge is our latest boutique student project, identified as a prime
placing university-owned accommodation under an increasing
investment opportunity and delivered by an experienced developer
amount of strain, as they struggle to provide the standard of
in the student accommodation market.
accommodation required in today’s market place.
Average yields for regional cities currently stand at 6-6.5% across
This trend for a higher-standard of living is fuelled by the
the country, but by choosing to invest with Knight Knox International
globalisation of the Higher Education market and the increase in
in X1 The Edge, investors can receive 8% assured NET yields for
the number of students applying to UK universities from outside of
five years. Fully managed and designed completely with students in
the UK.
mind, the project is due for completion in September 2015.
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X1 The Edge
UK’s Premier Property Class
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Consistently outperforming all other forms of property investment in the UK, returns in the private student accommodation sector were recorded at an average of 9.6% in 2012, fuelling the continuing development of bespoke, boutique projects through specialist providers like Knight Knox International, to the private investor market. Property experts Knight Frank have estimated that universities will generate more than £500m by 2016 through the disposal of their existing halls of residence, allowing student’s access to a far superior standard of accommodation that they would have previously. Attracted by higher-than-average yields, low void periods and on-site management companies, student accommodation is a completely hands-off investment and the perfect addition to any property portfolio.
£2.1 billion invested in
UK student accommodation in 2013 CBRE
Universities will generate more then ÂŁ500 million by 2016 through disposal of existing halls of residence
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X1 The Edge
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Investment Overview Investment Opportunity Comprised of 231 double en-suite rooms, X1 The Edge is a purpose-built student accommodation development, located in the heart of Liverpool’s student community. Prices start at £54,950 and investors are offered an assured NET yield of 8% for the first 5 years.
Double room £54,950 Large double room £59,950
3% Conservative
5% Expected
7% Buoyant
Purchase price
£54,950
£54,950
£54,950
Annual NET rental income
£4,582
£4,582
£4,582
Projected future asset
£63,703
£70,132
£77,071
Projected total value
£86,613
£93,042
£99,981
Below is an example of the projects’ return-oninvestment, from the purchase of a double room
(Asset value + 5 yr rental income)
All figures are based on forecasts provided by the developer and are subject to change. Any financial information provided in this document is intended as a guide and does not constitute a contract.
Est. ground rent £250
Est. weekly rent £140 Est. annual rent £6,720
Est. management fee (8%) £538
Purchase Price £54,950 Est. maintenance fee £1,350 Est. NET yield 8.34% (typical after 5-year rental assurance)
Est. NET income £4,582
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X1 The Edge
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The University of Liverpool
88%
82%
of all UK and EU graduates from the university were employed or in further education within 6 months of graduation
National student survey 2013 Student satisfaction
The University of Liverpool is ranked in the
top 1% of universities
worldwide and is a member of the prestigious Russell Group, comprising of leading research universities in the UK
ÂŁ600 million
The University is investing in its facilities over the next ten years, with key projects from this including a ÂŁ15 million green heating system, and ÂŁ15 million state-of-art centralised teaching laboratories, already completed
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X1 The Edge
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Liverpool John Moores University 6%
Liverpool John Moores University reported a year-on-year increase in student members for 2013
2012 Student members
2013 Student members
The University has over
24,000
students of which 10% are international students
83% of students are very
or quite satisfied with the university according to the 2013 student satisfication survey
83%
All figures correct as of October 2013
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X1 The Edge
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There are over 50,000 students studying at Liverpool Universities
Liverpool life Home to Albert Docks, the most visited free
With an increase of 2,000 students attending the
attraction in the UK outside London, and housing
University of Liverpool’s open day, many were clearly
landmark sites such as Tate Liverpool and the
impressed enough to request a place at the university,
Merseyside Maritime Museum, it is no surprise that
which recently confirmed that recruitment has
the city is one of the most popular destinations for
surged by 18% since 2012. In addition, Liverpool John
tourists in the country.
Moore’s University announced a 6% increase on last year’s intake and nearby Edge Hill University reported
Liverpool’s continuing rise, which culminated in it
a year-on-year increase of 12%, demonstrating the
being named The European City of Culture in 2008,
prestige associated with living in this cultural hub.
has ensured that its populace is always increasing, surging by a staggering 5.5% over the last decade to
With this strong demand being confirmed in Savills
stand at 466,400.
‘Spotlight on Student Housing Report’ awarding Liverpool an ‘upper second’, in their buy-to-let
With a body already reaching over 50,000 students,
honours table, it is clear that this is a great time
reports of admissions for the 2013/14 academic year
to invest in Liverpool, as the student and general
demonstrate that this figure is increasing, as students population continues to fly. continue to fuel the city’s population rise.
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X1 The Edge
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Location Map Within walking distance to all local amenities including bars, restaurants and clubs. Major landmarks include: O2 Arena | 12 minute walk University of Liverpool | 9 minute walk Liverpool Lime Street Train Station | 5 minute walk Liverpool John Moores University | 6 minute walk Liverpool ONE shopping centre | 10 minute walk Albert Docks Waterfront | 11 minute walk
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Frequently Asked Questions Is the building built? No. X1 The Edge is a new-build
What is the projected annual return after year 5?
When is my rental income paid?
development, which will be furnished to
Currently between 8% to 10% NET
This is paid quarterly in arrears direct
the highest of standards, in line with the
(conservative after running costs,
into your bank account from completion
high expectations of today’s students.
management fee, service charges and
Am I buying as Freehold or Leasehold? 999 years Leasehold
What is the address of the site?
utilities)
Is the sale handled by UK lawyers?
Can I resell my unit? Yes, you can sell at any time after exchange of contract. Knight Knox International has a dedicated resale
Yes, the seller solicitors are MSB
site, ‘studentpodshop.com’ which offers
and the recommended solicitors for
investors an exit strategy for their
purchasers are Blunts of Macclesfield.
investment
X1 The Edge, Seymour Street, Liverpool,
Both are experienced at handling
L3
student accommodation transactions
When will the building be completed?
Is there a management company already in place?
Completion for X1 The Edge will be
Yes, the designated management and
agreement so that the whole building
September 2015
letting agent will be X1 Lettings
- in its entirety - can be let as student
Is there a rental assurance? NET rental is assured at 8% for 5 years, from completion of the purchase
Can I do anything I want with my room? No, each room will be leased back to the management company on a rolling
accommodation
Are there any restrictions if I want to sell? Yes, the room has to be sold as student accommodation
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X1 The Edge
Purchase Process
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•
Once your unit(s) has been selected
you require assistance, as we have a
will also be required to sign and return
with the help of your property
selection of recommended solicitors
your contracts. If you are unable to
consultant, please complete the
who are experienced in handling
do this due to your location your
reservation agreement and return
student accommodation investment
solicitor will be able to act as your
along with a copy of your passport,
transactions.
Power of Attorney. Please note that
recent utility bill and your deposit. The bank transfer details will be found on
your solicitor may charge a fee for this •
the reservation agreement.
Your solicitor will advise you of the Please return this promptly to reduce
•
service.
paperwork they will require from you.
You are required to pay a reservation
•
the risk of delays.
you will receive a welcome letter from
deposit.
the developer which will detail the •
•
After you have exchanged contracts
Your first installment payment will be
future service they will provide and
Once your Property Consultant has
made when you exchange contracts.
include all contact details.
confirmed they have received your
Your solicitor will inform you when
paperwork, you will need to instruct
they have the date for exchange
a solicitor. Your consultant will be
providing you with an adequate notice
on hand to help you with this should
period, at the time of exchange you
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Your final payment will be due when construction completes.
Step 1
Reservation form and deposit of ÂŁ5,000
Step 2
Solicitor instructed, legals and sales pack sent out
Step 3
50% of balance on exchange of contracts within 21 days
Step 4
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Remaining balance due on completion of building
X1 The Edge
The Gall at X1 Th
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X1 Salford Quays Phase Three
The Studios at X1 The Quarter
lery he Quarter
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
X1 The Exchange
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.
Download the new X1 Developments app from the Apple Store for further details on all X1 projects, including images, movies, panoramas and detailed descriptions.
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*Only available through the Apple
X1 The Edge
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About KKI A market leader in the UK buy-to-let sector, Knight Knox International has launched 40+ developments onto the UK market, totalling more than 3,700 units at a value in excess of ÂŁ230million. 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.
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
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0913V3
+44 (0)161 772 1370
www.knightknox.com
Market Leaders in Worldwide Property Investment
X1 The Edge