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LEEDS:
MACRO OVERVIEW Leeds is one of the six cities set to benefit from the GBP7 billion Northern Powerhouse initiative, which aims to boost the economy and infrastructure of the country as a whole. Leeds is outpacing other regions with the city’s GVA forecast to expand by 2.0% annually from 2018 to 2022, above the 1.7% Northern England average.
Sources: JLL
LUCENT SQUARE
ECONOMY
LEEDS’S ECONOMY HAS GROWN 40% OVER THE LAST DECADE, AND IS CURRENTLY WORTH GBP18 BILLION, PREDOMINATELY DUE TO THRIVING INDUSTRIES AND A GROWING POPULATION.
Fastest growing legal sector in the UK, with a 20% increase in legal jobs from 2010-2016 versus just 5% in London
Accelerated growth in the tech, media and telecom industries with 96% more dedicated office space to this sector since last year – more than any other Northern Powerhouse city
One of the largest finance and professional services hubs outside London, with over 30 domestic and international banks within its borders
65,000 student population, with a 30% graduate retention rate
Known as ‘Knightsbridge of the North’, Leeds is one of the Top 5 UK Retail and Tourism destinations with 26 million visitors annually
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ECONOMY
REGENERATION HIGH SPEED 2 (HS2) RAIL NETWORK
JOURNEY TIMES TO MAJOR UK HUBS WILL BE DRASTICALLY REDUCED.
LEEDS TO BIRMINGHAM (completing in 2033)
LONDON
HEATHROW
57 min
(previously 1 hr 56 minutes)
1 HR 21 min
(previously 2 hr 9 minutes)
1 HR 38 min
(previously 3 hr 12 minutes)
• Expected to add GBP54 billion to the regional economy by 2050 • Leeds station will undergo a proposed GBP500 million revamp with over 3 million sqft space for new shops, restaurants and offices • 300,000 jobs are expected to be created through the Leeds City Region HS2 Growth Strategy plan
SOYO
• GBP300 million scheme with 685,000sqft of office, leisure, residential and retail space • A new and vibrant cultural hub for Leeds, completing in 2022
SOUTH BANK REGENERATION
• A GBP350 million investment, and one of Europe’s largest city centre regeneration initiatives • The 185-hectare scheme plans to double the size of the city centre
• Development of a new GBP57 million Leeds City College campus
NEW BRIGGATE
• GBP12 million regeneration scheme in the city centre’s Grand Theatre Quarter
• Expected to create 35,000 new jobs • Proposed location of the HS2 station Sources: Leeds City Council, Centre for Cities, HS2.org, Financial Times
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SUPPLY
DEMAND
DESPITE THE INCREASE IN COMPLETIONS IN RECENT YEARS, HOUSING SUPPLY HAS NOT REACHED THE MINIMUM TARGET LEVELS.
THE CITY’S POPULATION GREW TO OVER 800,000 PEOPLE IN 2017. THE POPULATION IS FORECAST TO GROW TO 860,618 IN 2028.
DWELLING COMPLETIONS 2009 TO 2016 -
POPULATION GROWTH -
3,366 new dwellings are required per year until 2033 to meet demand.
Total dwellings built
Population growth
Target
Population forecasts
Sources: Leeds AMR 2013, AMR 2016 Sources: JLL, Leeds CSSR 2018, ONS
THE WORKING AGE POPULATION HAS EXPERIENCED 10.2% GROWTH FROM 2010 TO 2017. LEEDS HAS SEEN THE HIGHEST RATE OF PRIVATE SECTOR JOBS GROWTH IN THE UK. PRIVATE SECTOR JOB GROWTH IN 2017 8
6
4
2
Sources: JLL, Leeds CSSR 2018, ONS
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SALES MARKET
RENTAL MARKET
A LARGE POPULATION OF RENTERS, PARTICULARLY IN THE CITY CENTRE, ARE PUSHING RENTS UPWARDS.
AVERAGE RENTS -
RENTAL GROWTH FORECAST -
LEEDS SAW 29.6% HOUSE PRICE GROWTH FROM 2012 TO 2018. 19.9% HOUSE PRICE GROWTH IS FORECAST FOR LEEDS BETWEEN 2018 AND 2022. Source: SHMA 2017
HOUSE PRICE GROWTH -
HOUSE PRICE GROWTH FORECAST -
• 73.3% of households in the city centre are privately rented, against the 19.9% Leeds average • Low vacancy rate of 2.5% • 4.5-4.75% average yield for buy to let properties
UK
Leeds
Leeds
UK
Sources: SHMA 2017, JLL, Zoopla
Sources: JLL, ONS
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THE AREA
E US O DH
With plans to redefine how the people of Leeds live, work and play, SOYO, located to the east of the city centre and south of York Road, will form an exciting and happening new community space for Leeds’s growing city centre.
1 A6
SO YO
O O W
A58
LN
SERVIA H ILL
LE I
CE
ST
ER
PL
A 66 0
PI
T
CLARE
NDON
AY CL
A61
RD
LN
—
ARENA QUARTER KNOWLEDGE QUARTER
B U RL
SKIN NER LN
CIVIC QUARTER
EY ST
— Just five minutes walk from Lucent Square, the neighbourhood will include trendy bars, restaurants and lots of green space. Incorporating the existing Cultural Quarter, which is already home to notable employers and institutions, SOYO is set to become one of the city’s most desirable areas.
QUARRY HILL THE HEADROW
8 A5
SO YO
SHOPPING QUARTER
LN
CENTRAL BUSINESS DISTRICT
SH
W E LL IN GTON ST
M
R A
THE CALLS
14 TER LN WA
O IN T
SOUTH BANK CENTRAL
1
RD
A6
N W O R C
P
15
A 66 0
LN
THE AREA AY
PI
T
A61
CL
N
19 14
ARENA QUARTER
THE AREA
200m
12
KNOWLEDGE QUARTER
SKIN NER LN
Lovell Park
1
QUARRY HOUSE/SOYO
2
NORTHERN BALLET
3
LEEDS COLLEGE OF MUSIC
4
BBC LEEDS
5
WEST YORKSHIRE PLAYHOUSE
6
BUS STATION
7
JOHN LEWIS
8
LEEDS KIRKGATE MARKET
9
VICTORIA LEEDS
10
ROYAL ARMOURIES MUSEUM
11
THE GRAND THEATRE & OPERA HOUSE LEEDS
12
FIRST DIRECT ARENA
13
TRINITY LEEDS
14
LEEDS BECKETT UNIVERSITY
15
O2 ACADEMY LEEDS
16
THE HENRY MOORE INSTITUTE
17
LEEDS ART GALLERY
18
LEEDS TOWN HALL
19
UNIVERSITY OF LEEDS
15 Leeds Teaching Hospitals NHS Trust
CIVIC QUARTER
18
17
11
16
A64 THE HEADROW
9
CENTRAL BUSINESS DISTRICT
SHOPPING QUARTER
7
5
8
(M)
QUARRY HILL 1
LUCENT SQUARE
4 3
6
2 SH
LN
13
R
W E L L IN GTON ST
A M
Leeds railway station
THE CALLS
TER LN WA
N W O R C
T LL S HA RS MA
HOLBECK URBAN VILLAGE
PROPOSED HS2 CORRIDOR
P
A61
LEEDS DOCKS
SOUTHERN GATEWAY
T ST W
1 A6
A 653
H RD
1
10
O IN T
SOUTH BANK CENTRAL
RD
A6
TRAVEL TIMES York Rd/ Marsh Lane Bus Stop: 1 min Quarry House/SOYO 5 mins
Victoria Leeds/ John Lewis/ Leeds Kirkgate Market 14 mins 4 mins 5 mins
Trinity Leeds: 5 mins 6 mins Leeds train station: 5 min 8 min
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University of Leeds Leeds Art Gallery Leeds Town Hall O2 Academy Leeds Train Station Leeds Trinity Victoria Leeds
Leeds Grand Theatre
BBC Leeds Kirkgate Market
John Lewis
Northern Ballet
Quarry House/SOYO
Lucent Square
O O W
1 A6
E US O DH
COMPARABLES
A58
LN
SERVIA H ILL
LE I
CE
ST
ER
MABGATE GATEWAY BLOCK A & B PL
1 beds: GBP125-154k (258psf) 2 beds: GBP170-281k (268psf)
NDON CLARE
CL
AY
PI
T
A61
RD
LN
A 66 0
TATE HOUSE 1 beds: GBP165-170k (279psf) 2 beds: GBP179-289k (263psf)
SKIN NER LN
42 PARK PLACE 1 1 1 1 B U RL
bed: bed: bed: bed:
GBP147.5k (343psf) GBP157.5k (337psf) GBP165k (340psf) GBP165k (345psf)
EY ST
A64
ST PETER’S HOUSE
THE HEADROW
QUAY
bed: bed: bed: bed:
GBP165k (337psf) GBP170k (317psf) GBP165k (434psf) GBP185k (325psf)
LUCENT SQUARE LN
8 A5WHITEHALL
1 1 1 1
(M)
2 bed: GBP200k (387psf) W E LL IN 2 bed: GBP242.5k (341psf) GTON ST
R
SH
1 beds: GBP145k-165k (258psf) A 1+1 beds: M GBP160k-215k (226psf) 2 beds: GBP185k-251k (230psf)
A
RD
61 HALL ST PETER’S O IN T
ARTHUR'S FOLD 1 beds: GBP123-177k (378psf) 2 beds: GBP211-250K (335psf)
N W O CR
TER LN WA
A61
T LL S HA RS MA
HOLB EC K L N
P
1 bed: GBP155k (287psf) 1 bed: GBP167.5k (291psf) 2 bed: GBP295k (288psf)
DOCK ST 1 bed: GBP163k (337psf) 2 bed: GBP255k (388psf)
SWEET ST W
1 A6
THE QUAYS
A 653
NINEVEH RD
2 bed: GBP255k (300psf) 2 bed: GBP390k (402psf) 2 bed: GBP375k (335psf)
WATERMAN'S PLACE 1 1 2 2
bed: GBP163k (322psf) bed: GBP167k (330psf) bed: GBP230k (305psf) bed: GBP240k (326psf)
New build: New developments currently selling off-plan Completed re-sales recorded on Land Registry
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THE DEVELOPMENT
LUCENT SQUARE
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On the back of a strong structural design and modern minimalist aesthetic, Lucent Square focuses on the essentials of living: space, light and nature. The development will have balconies on most units and is in close proximity to many amenities, major employers and transport links.
Computer generated images are intended for illustrative purposes only
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THE DEVELOPMENT
FEATURES
Specifications
Bathrooms
• Wood internal doors with ironmongery in brushed chrome
• Bath with shower (where the plans allow a bath otherwise only a shower)
• Walls painted in magnolia
• WC with flush
• Skirting boards and architrave painted in white gloss
• Basin with vanity unit
• Door numbers on each apartment door • Numbered post boxes in entrance to communal areas • Provision of audio access control panel • Provision of broadband facility/connection to the site (likely Virgin or SKY) • Smoke detectors within flats and communal areas Flooring • Neutral carpet in bedrooms • Wood effect laminate floor in hallway, kitchen and living room • Bathroom tiles to floor and part of walls Lighting • Recessed downlight to kitchens, bathrooms, hallway and living room • Pendant lights in bedrooms Electrical • Brushed chrome switches and sockets • Smoke detectors and heat detectors • TV point in living room and bedroom • Telephone point in living room
• Mixer taps to bath and basin • Tiled walls incorporating feature wall • Mirror above vanity units • Bathrooms from Scudo, Hudson Reed, Phoenix or similar Kitchens • Fully fitted kitchens from Howdens Kitchens or similar • Work surfaces with matching splashbacks • Integrated electric fan oven, ceramic hob and extractor • Integrated fridge-freezer and integrated dishwasher • Stainless steel sink unit • Washer/Dryer which is plumbed in and installed Heating • Electric panel heaters with central timer • Chrome towel rails to bathrooms and en-suites 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, 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)
HOW MUCH WILL MY PROPERTY INCREASE IN VALUE? -
Capital appreciation (%)
AVERAGE SAMPLE 2-BED UNIT PRICE
GBP205,700
Illustrative property value (GBP)
LTV
65%
Capital appreciation (%)
MORTGAGE INTEREST RATE (interest only)
3.60% (25 years)
Annual growth
WHAT IS MY NET MONTHLY CASH POSITION AFTER PAYING MY MORTGAGE? 0 ILLUSTRATIVE PROPERTY VALUE
Price (GBP)
1
205,700 212,900
2
3
221,415
229,165
4
5
6
7
8
9
10
237,186 246,673 255,553 263,833 271,527 278,653 285,234
CAPITAL APPRECIATION
-
3.5%
7.6%
11.4%
15.3%
19.9%
24.2%
28.3%
32.0%
35.5%
38.7%
ANNUAL GROWTH
-
3.5%
4.0%
3.5%
3.5%
4.0%
3.6%
3.2%
2.9%
2.6%
2.4%
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
10,812
11,244
11,638
12,045
12,407
12,742
13,051
13,337
13,599
13,840
RENTAL YIELD
5.3%
5.5%
5.7%
5.9%
6.0%
6.2%
6.3%
6.5%
6.6%
6.7%
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ILLUSTRATIVE RETURNS MODEL
5-YEAR PROFIT -
ILLUSTRATIVE RETURNS MODEL
10-YEAR PROFIT -
GROSS PROFIT (GBP99,120)
GROSS PROFIT(GBP204,250)
114,808
Net profit
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Net profit
Gross profit: Rental income and capital appreciation Net profit: Gross profit minus acquisition costs, running costs, mortgage costs and tax liability
Gross profit: Rental income and capital appreciation Net profit: Gross profit minus acquisition costs, running costs, mortgage costs and tax liability
Property price at purchase: GBP205,700
Property price at purchase: GBP205,700
Property value at sale (year 5): GBP246,673
Property value at sale (year 10): GBP285,234
LTV: 65% (GBP133,705)
LTV: 65% (GBP133,705)
Mortage interest rate: 3.60% (25 years)
Mortage interest rate: 3.60% (25 years)
5 year gross profit: GBP99,120
10 year gross profit: GBP204,250
Rental income: GBP58,147
Rental income: GBP124,716
Capital appreciation: GBP40,973
Capital appreciation: GBP79,534
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