Kent Street Residence

Page 1

UK Birmingham

Kent Street Residence


BIRMINGHAM:

MACRO OVERVIEW Known as the UK’s ‘Second City’, Birmingham is on par with London for culture, leisure and business but has exceeded the capital recently for house price growth. The city is part of the booming West Midlands authority, which boasts 23% GVA growth and has one of the fastest growing economies in the country.


ECONOMY

ECONOMY

Birmingham’s economy has grown at a rapid pace which is set to continue. 25.5% GVA growth is forecast for Birmingham between 2018-2028, above the regional average of 23% for West Midlands.

BUZZING BIRMINGHAM -

AFTER LONDON, BIRMINGHAM HAS: • The largest economy in the UK at GBP25.3 billion • The UK’s biggest business hub with the largest number of new businesses in 2017 at 12,108 • HSBC, Deutsche Bank, Barclays and HM Revenue and Customs are collectively relocating and increasing staff numbers to around 8,000 personnel by 2020

Most popular destination for those migrating from London in 2017 Host of the 2022 Commonwealth Games, bringing in GBP1.1 billion to the UK economy, with half invested in the West Midlands

BIRMINGHAM FEATURES WORLD-CLASS RECREATIONAL FACILITIES. IT HAS:

8 universities and world-class research institutions producing 52,000 graduates annually with a 49% graduate retention rate

More open space than Paris, with over 600 parks covering 8,000 acres

More canals than Venice, with a 56-mile canal network

The greatest number of Michelin-starred restaurants in the UK after London

One of the largest shopping centres in Europe, and is in the UK’s Top 3 most popular shopping destinations

Sources: JLL, visitbirmingham.com, vmgrowth.com, Savills

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07


SUPPLY

DEMAND

SUPPLY -

DEMAND -

The city’s housing delivery data indicates a supply/demand imbalance – partly because the wave of demand from investors, renters and owner-occupiers is relatively new and there is a scarcity of available sites in the city centre which can be developed. Birmingham is still not building at preglobal financial crisis levels, showing a lot of room to catch up.

Demand will be supported by a growing number of businesses and firms moving to Birmingham for more affordable office space and quality of life for its workers. There is a healthy appetite for first-time buyers in Birmingham, however the lack of completions in previous years has created fierce competition for each available property.

RESIDENTIAL DEVELOPMENT PIPELINE 2009 TO 2019 -

Population rising by 171,000 to 1.3 million by 2039

No. of units

This translates into nearly 100,000 additional households being created over the next two decades 0.6% employment growth per annum is forecast between 2018-2022 - stronger than the regional and national average

Source: Knight Frank Savills, Birmingham Strategic Housing market Assessment, JLL, ONS

Completed

Under construction

2008-2017 annual average

4,057 additional dwellings required every year until 2026 in order to meet demand

Sources: SHMA, Savills, Deloitte Crane Survey

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09


SALES MARKET

RENTAL MARKET

SALES MARKET -

RENTAL MARKET -

Strong price growth has been recorded since the financial crisis yet Birmingham remains affordable with less than half the affordability ratio of London.

With a large student population and growing workforce, Birmingham’s rental demand is increasing. A lack of supply has forced aspiring home-owners to rent as well, promoting a high volume of rental activity.

AFFORDABILITY RATIO -

AVERAGE ASKING RENTS -

Birmingham: 7.2x London: 16.6x

Flat - 2 bed

HOUSE PRICE GROWTH GBP Flat - 1 bed

Birmingham

United Kingdom

HOUSE PRICES RISE BETWEEN 2018-2022 House prices in Birmingham are forecast to rise 20.5% between 2018-2022, compared to 14.2% in West Midlands and 12.6% in the UK.

RENTAL GROWTH -

Rental prices in Birmingham are forecast to rise 16.5% between 2018 – 2022

Sources: Land Registry, Savills Prime Market Forecasts, PwC, ONS

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Sources: LendInvest, Savills, Global property guide

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CONNECTIVITY

CONNECTIVITY

CONNECTIVITY 90% of the UK is within 4 hours of Birmingham, making it one of the UK’s best transport hubs.

HIGH SPEED 2 (HS2) Europe’s largest infrastructure project, the HS2 will bring London within 38 minutes of Birmingham and significantly cut journey times to Manchester, Edinburgh and Newcastle. This will increase accessibility to jobs and attract businesses to the area. Birmingham is home to HS2’s construction headquarters, and 1,500 jobs will be created in the city from now untill the project’s completion and produce GBP4 billion increase in economic output per year in the West Midlands.

GLOBAL NETWORK Birmingham Airport currently connects directly to 150 global destinations. 2017 was Birmingham Airport's busiest year yet, carrying over 13 million passengers, and the city has further ambitions of accommodating up to 20 million passengers annually.

Routes opening 2026 Birmingham to London 2033 Birmingham to Manchester and Leeds

BIRMINGHAM TO Leeds

Liverpool Manchester Piccadilly Nottingham Current journey time Journey time when HS2 complete

Sources: Knight Frank, West Midlands Growth Company

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Birmingham

REGENERATION

REGENERATION Arena Birmingham National Sea Life Centre

REGENERATION: SMITHFIELD Brindleyplace Estate Management The GBP500 million Birmingham Smithfield regeneration project will form a unique destination that includes vibrant markets, an exciting new family leisure quarter and new residential neighbourhoods.

THE SCHEME -

The International

Birmingham Moor Street

Convention Centre Ikon Gallery

Birmingham ha am N New ew Street St

BIRMINGHAM SMITHFIELD

Cineworld

Deliver 100,000sqm of floor space, 3,000 new employment opportunities and 1,000 residential units

6 min. walk

GBP470 million benefit to the local economy Be integrated with the Midland Metro tram system and bring Birmingham Smithfield within minutes of the proposed Five high Ways speed rail (HS2) terminus at Curzon

Bus B u us s stop st stop KENT STREET RESIDENCE Hig

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ACTIVITY AND SCALE Ark St Alban’s Academy

Birmingham Central Mosque

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THE DEVELOPMENT

KENT STREET RESIDENCE 16

Computer generated images are intended for illustrative purposes only

A striking modern development, Kent Street Residence integrates city-living with an urban community feel. The development uses the historic context of the Kent Street Baths and features a green rooftop terrace, offering a place to relax in the middle of the city.

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THE DEVELOPMENT

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For more information, please speak to one of our consultants.

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Computer generated images are intended for illustrative purposes only

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SPECIFICATIONS

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Computer generated images are intended for illustrative purposes only

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SPECIFICATIONS

SPECIFICATIONS

SPECIFICATIONS -

BATHROOMS • Bath with shower (where the plans allow a bath otherwise only a shower unit) • Half height wall tiling throughout with added wall tiling around bath/shower

GENERAL SPECIFICATIONS • Walls constructed of plasterboard and feature skim and decoration • Secure front doors with veneer finish, door viewer and apartment number • uPVC double glazed windows throughout • Flush, white satin finish internal doors • All bedrooms feature built-in wardrobes, with the addition of large mirrors where room layout permits FLOORING • Vinyl flooring featured throughout bedrooms, kitchen and living room (subject to client approval) • Ceramic tiles in bathrooms

KITCHENS • Fully fitted kitchens featuring Energy Rated A appliances from Zanussi, Indesit, Bosch or similar • Work surfaces with coordinating cooker splashback • Brushed stainless steel single fan oven with grill • Black finish ceramic hob, featuring touch control and 4 zones, and built-in extractor hood • Integrated dishwasher and fridge/freezer units • Integrated washer/dryer

Whilst every effort has been made to ensure that the information provided is as accurate as possible, our specifications and CGIs are designed specifically as a guide only. IP Global and the developer reserve the right to amend the specifications as necessary without notice.

DOWNLOAD FLOORPLANS

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Computer generated images are intended for illustrative purposes only

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ILLUSTRATIVE RETURNS MODEL

Price (GBP)

Capital appreciation (%)

HOW MUCH WILL MY PROPERTY INCREASE IN VALUE? -

AVERAGE SAMPLE 2-BED UNIT PRICE

GBP290,000

Illustrative property value (GBP)

LTV

65%

Capital appreciation (%)

MORTGAGE INTEREST RATE (interest only)

3.79% (25 years)

Annual growth

WHAT IS MY NET MONTHLY CASH POSITION AFTER PAYING MY MORTGAGE? 0 Price (GBP)

ILLUSTRATIVE PROPERTY VALUE

1

2

290,000 301,600 310,648

3

4

5

6

7

8

9

10

321,521 334,382 349,429 363,581 376,833 389,195 400,686 411,333

CAPITAL APPRECIATION

-

4.0%

7.1%

10.9%

15.3%

20.5%

25.4%

29.9%

34.2%

38.2%

41.8%

ANNUAL GROWTH

0

4.0%

3.0%

3.5%

4.0%

4.5%

4.1%

3.6%

3.3%

3.0%

2.7%

Rent (GBP)

Rental yield (%)

WHAT WILL MY GROSS RENTAL INCOME BE? Rental income Rental yield

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CASH IN:

CASH OUT:

• Rental Income

• Tenant management fees • Running costs • Mortgage costs

1

2

3

4

5

6

7

8

9

10

RENTAL INCOME

14,160

14,514

14,949

15,473

16,014

16,519

16,987

17,420

17,820

18,189

RENTAL YIELD

4.9%

5.0%

5.2%

5.3%

5.5%

5.7%

5.9%

6.0%

6.1%

6.3%

27


ILLUSTRATIVE RETURNS MODEL

5-YEAR PROFIT -

ILLUSTRATIVE RETURNS MODEL

10-YEAR PROFIT GROSS PROFIT (GBP134,539)

Net profit

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GROSS PROFIT(GBP283,378)

Net profit

Gross profit: Rental income and capital appreciation Net profit: Gross profit minus acquisition costs, running costs, mortgage costs and sales costs

Gross profit: Rental income and capital appreciation Net profit: Gross profit minus acquisition costs, running costs, mortgage costs and sales costs

Property price at purchase: GBP290,000

Property price at purchase: GBP290,000

Property value at sale (year 5): GBP349,429

Property value at sale (year 10): GBP411,333

LTV: 65% (GBP188,500)

LTV: 65% (GBP188,500)

Mortage interest rate: 3.79% (25 years)

Mortage interest rate: 3.79% (25 years)

5 year gross profit: GBP134,539

10 year gross profit: GBP283,378

Rental income: GBP75,110

Rental income: GBP162,045

Capital appreciation: GBP59,429

Capital appreciation: GBP121,333

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