Hadrian's Tower Comparison Information by The High Street Group

HADRIANâ&#x20AC;&#x2122;S TOWER Comparison Information

Background We have compiled this comparison report in order to assist clients in their decision to invest in this landmark development.

The Vita Building is a few hundred metres from Hadrian’s Tower and is built to a much higher quality than the current neighbouring student blocks:

Due to the unique factors of the building, including the sheer size and above average specification, we are unable to offer any direct comparisons and have therefore utilised data from developments in the immediate area that have been built to cater for a similar target market and include some of the facilities that Hadrian’s Tower will offer on completion.

• There is a greater amenity and recreational space offering

Hadrian’s Tower is a unique development and investment, and this brochure is meant to demonstrate the reasoning behind our conviction that this will provide a quality and solid investment in the long term with considerate growth potential. There have been no new purpose built blocks that are designed to meet the high net worth student and postgraduate professional market place, until the construction of the Vita Building in Strawberry Place.

Science Central Regeneration Zone

• The units are generally larger and finished to a higher specification • A higher level of included service provision (e.g. weekly cleans, Grab n’ Go breakfasts, social events around the recreational spaces and inclusive utility bills)

The Core

The purpose of this report is to consider Hadrian’s Tower in comparison to the Vita Building, as it is the only block built to focus on the same market as our development. We have also included Liberty Plaza in this report, providing a comparison to general student accommodation in the immediate area. The Key

HADRIAN’S TOWER

Urban Sciences Building

in the market

Place

Hadrian’s Tower on Rutherford Street is a 26-storey building located within the heart of the new high-rise business and learning district of Newcastle upon Tyne. The area is dominated by the University, the City Council and the Hospital. Newcastle is a renowned University city that is highly specialised in Medical Sciences, Business and the Built Environment. The residents in this location are predominantly foreign students and the post-graduate professionals that remain in the hospitals and the wider city throughout their postgraduate training period. The high standing of the University within its specialist fields means that its reach across the world is very high. We know that the family wealth of students at Newcastle University is higher than that of most other main stream university cities in the UK. The asset will be held as a build-to-rent block and will target those postgraduate professionals and the high net worth students that are interested in a higher standard of living. Property prices and rental rates across the city are based upon buy-to-let rentals and purpose-built student accommodation blocks. 4

Hadrian’s Tower has a unique combination of the following values: • City centre location • Lifestyle offering • Views and vantage points • New-build premium • Quality of the apartments • Premium rental location • Rental yield guarantee The unique nature of the scheme means that there are no direct comparisons.

City Centre Location The city centre (bounded in red) is divided into four main areas: • Leisure and residential (private residential only) • Shopping and retail • Civic, hospital and university educational buildings

University Hospital • Newcastle University •

• High-rise urban extension containing stadium, office, student and educational building (including Science Central) Civic Centre • Northumbria University •

St James’ Park •

Science Central • HADRIAN’S TOWER

Central Station •

Hadrian’s Tower is the only high-rise private residential block (non-student) in the city, and is located between the city’s modern high-rise urban extension and the Georgian Grainger Town residential / leisure areas. Vita Student Newcastle Strawberry Place Newcastle upon Tyne NE1 4PQ Liberty Plaza Wellington Street Newcastle upon Tyne NE4 5SA Hadrian’s Tower 27 Rutherford Street Newcastle upon Tyne HADRIAN’S NE4 5SR TOWER

Quality of Apartments There are over 40,000 students in Newcastle and Science Central is the prime city centre location. Demand is currently on a 3:1 ratio to supply across the city with much higher ratios on Science Central itself. This area of the city has a rental premium for a product that is let typically by high net worth students or postgraduate professionals retained within the city. The high-rise district of the city is less than 10 years old and borne out of the expansion of the University through the creation of Science Central. The area is heavily populated with high-rise accommodation, all within new-build professionally managed blocks. Some of those blocks have been sold to the foreign markets on the basis of a 7% un-leverageable yield.

Our apartments provide a higher quality of accommodation when compared to the other residential stock in the new highrise district of the city. Hadrian’s Tower will compete with purpose-built student blocks on Science Central for senior students, postgraduates and young professionals. Hadrian’s Tower is also the last regeneration site wedged between Science Central and the city centre. Future expansion can only be hosted in more fringe locations. Our closest comparable on Science Central is Liberty Plaza. Whilst this is a student block it provides an opportunity to compare price points and the quality of apartments being offered to the students compared to our postgraduate professional offering.

Comparisons with other low-rise apartments in the city The apartments have unique value when compared to older units within the city centre: • All apartments meet with the new Design Space Standards

• All 2 bed apartments have two double bedrooms, permitting effective sub-letting

• All apartments are wheelchair accessible

• High quality kitchens, bathrooms and bedrooms

• All apartments have whole-house ventilation and sprinkler system protection • The majority of apartments have twin aspect views

Views

and Vantage Points

Hadrian’s Tower, at 82 metres, will be the largest residential block within the city centre.

The closest residential block in height is The View which is a student accommodation block located behind Hadrian’s Tower.

In fact, it is the largest structure in the city and compares to the following key city structures:

There are no other private residential high-rise blocks within the city centre. The remainder of the stock includes some medium-rise blocks (typically 5 - 8 storeys), and old low-rise office conversions within the city centre.

• St. Mary’s Cathedral – 68 metres • St. Nicholas’ Cathedral – 62 metres • St. James’ Park – 60 metres • The View – 60 metres It also sits alongside St. James’ Park and The View on the city’s hill top.

All residents will have access to the Sky Lounge, which will provide views from the top floor and the roof of the building.

Lifestyle

offering

Our block will be supported by a Lifestyle Offering delivered by All Saints Living. Our rental customers will include high net worth students and the postgraduate/young and professional market place. This potential audience is accustomed to a Lifestyle Offering to support their living standard. This Lifestyle Offering will include the following ancillary services: • Touchdown meeting spaces within the ground floor entrance areas and the Sky Lounge on the 26th floor • Cleaning services • Launderette • Wifi and high speed broadband throughout the block • 24 hour on-site foyer, maintenance and resident support • Grab n’ Go breakfasts 7

Overview of Apartments

HADRIAN’S TOWER Hadrian’s Tower, Rutherford Street

Vita Building, Strawberry place

Liberty Plaza, Wellington Street

•• 26 storeys

• 8 storeys

• 10 storeys

• 165 apartments

• 271 apartments

• 1296 apartments

• 1 and 2 bedroom apartments

• Studio, 1 bed, and ‘cluster’ / 2 bed apartments

• Cluster, studio, 1 and 2 bed apartments

• Lifestyle offering

• Communal facilities

• Targeted to high net worth overseas students, postgraduates and young professionals

• Targeted to high net worth overseas students and postgraduates

• Targeted to the general student market

• High quality specification

• Above average specification

• Basic specification

communal living

Apartment Information &

Hadrian’s Tower has over 56 1 bed apartments. The apartments are an average NIA of 52m2, and have open plan kitchen / living areas with separate dedicated bedrooms and bathrooms. Full height glazing provides views over the city.

HADRIAN’S TOWER

Hadrian’s Tower has over 109 2 bed apartments that can be sublet on a twin cluster basis (i.e. 2 double bedrooms per common lounge and kitchen). The apartments are an average NIA of 65m2. The product is superior in both room sizes and the usage of shared space (i.e. twin clusters rather than quadruple or sextuple clusters).

• The Vita Building has simple but effective open plan layouts for its en-suite units, organised in clusters of 5 roomed apartments around common kitchens and lounges.

• The en-suite rooms at Liberty Plaza comprise of four/six bedrooms formed around a common kitchen.

• The Vita Building has a much higher level of internal finishes than other nearby student accommodation.

• The ‘Superior Apartments’ at Liberty Plaza comprise of stand alone apartments with a combined kitchen/living/ bedroom space and an en-suite bathroom. There is no separate bedroom space and the NIA is 35m2.

• Fully fitted kitchens, floor to ceiling glazing and a good standard of finishes.

• Liberty Plaza has a very basic level of finishes and a basic appliance kitchen.

Amenities, Facilities and Services

HADRIAN’S TOWER The Vita Building has a common room located on the ground floor of the courtyard that is used to stage parties, DJ nights, wine and food tasting events.

• Weekly apartment cleans • Free high powered broadband

The lifestyle offering includes the following support services:

• Charity fundraising and volunteering

• Grab’n’Go breakfasts

• Weekly apartment cleans

• Inclusive utility bills

• Free high powered broadband

• Drop-in sessions to seek advice on finances, and well-being

• 24/7 concierge

• Grab n’ Go breakfasts

• Cycle store

• Inclusive utility bills

• CCTV/ Security

• Bedding and utensils • Free contents insurance

Liberty Plaza offers a dedicated Student Experience:

Hadrian’s Tower has a Sky Lounge and café with touch down space in the foyer. The following services will also be provided:

• Social events and activities to meet new people

RENTAL COMPARISON

HADRIAN’S TOWER Studio apartments / 1 bed apartments

Studio apartments / 1 bed apartments

• The average rent for studio apartments on the 6th floor is £337 per week on single occupancy per apartment

• The average rent for the ‘Superior Studio’ apartments is £209 per week on single occupancy

• The average rent for our 1 bed units is £216 per week

• We have been unable to obtain the sizes for the Vita Student accommodation bedroom studio / 1 bed apartments

• The average size of a 1 bed apartment is 45m2

• Our 1 bedroom apartments range from 46 - 61m2

Kitchen/Diner

Living

Bathroom

Bedroom

Cluster units 2 bed apartments / Cluster units • The average rent for the 2 bedroom apartments / en-suite is £213 for single occupancy per room • We have been unable to obtain the sizes for the Vita Student accommodation cluster / 2 bed apartments

• The average rent for the ‘Deluxe en-suite’ room is £153 per week for single occupancy per room • The average size of a Deluxe en-suite room is 17m2

2 bed apartments • The average rent for our ‘twin cluster’/2 bed apartment is £164 per person, or £329 per apartment. • Our 2 bedroom apartments range from 61 - 81m2 En-Suite

Bathroom

Living/Kitchen/Dining Bedroom 1

Bedroom 2

OUR NEW DEVELOPMENT WILL SURPASS THE HIGHEST BUILDING IN THE AREA BY AT LEAST 33% IN HEIGHT 14

Rental Guarantee Several reference points across the city boast a gross rental yield of 6.5% and 6.6% as a selling point. We are offering a rental guarantee of 7% net for the first five years. With rental income expected to continue rising by an average of 4.0% per annum during the build and guarantee period then it follows that a further 1% yield will be achieved before the end of the guarantee.

The vast majority of comparable stock within the City are old or converted housing stock. Local Agent Walton Robinson has confirmed that the new build premium for our apartments are as follows:

1 Bed Apartments - £19,000

2 Bed Apartments - £28,000

Based on our review of the reference points and data collated, we have drawn the following conclusions regarding the vacant possession values of second hand stock within the city.

1 Bedroom Apartments

2 Bedroom Apartments

Comparable 1 bedroom apartments across the city range from £120,000 to £170,000 with the following aspects:

Comparable 2 bedroom apartments across the city range from £180,000 to £300,000, excluding tenanted units, with the following aspects:

• Apartments with partial city views are typically £150,000 - £170,000

• Apartments with partial city views are typically £240,000 - £275,000

• Apartments with views of the river are typically £130,000 - £145,000

• Apartments with views of the river are typically £180,000 - £240,000, with the majority of apartments in the region of £225,000 - £240,000, depending upon height

• Apartments located on the quayside, which is on the fringe of the city, average £136,000 and are not new build but are purpose built blocks • Apartments that are located within the city centre, and are neither purpose built nor new average £145,000 • Apartments that are located close to the train station but on or around the Western Gateway average £126,000 The comparables do not extend beyond 6 storeys in height, and have dated designs and specifications. In addition, none have a new-build premium and the values trade on modest rental yields of circa 6.5% (gross). The new-build premium for 1 bed apartments across the city is £19,000. Whilst Hadrian’s Tower has a number of additional values we have based our average values for floors 1 - 6 at £161,000 per apartment, which is broadly similar to the average of the existing stock plus the new build premium. Investors will enjoy premium yields and the other benefits of investing in a unique asset.

• Apartments located on the quayside, which is on the fringe of the city average £222,000 and are not new-build but are purpose built blocks • Apartments that are located within the city centre, and are neither purpose built nor new average £267,000, once 2B3P units are removed • Apartments that are located close to the train station but on or around the Western Gateway average £215,000, once 2B3P units are removed The comparables do not extend beyond 11 storeys in height, and have dated designs and specifications. In addition, none have a new build premium and the values trade on modest rental yields of circa 6.5% (gross). The new-build premium for 2 bed apartments across the city is £28,000. Whilst Hadrian’s Tower has a number of additional values, not least the premium yield from the student and postgraduate professional marketplace, we have based our average values for floors 1 - 11 at £246,000 per apartment, which is less than the average of the existing stock plus the new-build premium.

COMPARISON BUILDINGS SUMMARY OF REFERENCE POINTS We have looked at each of the reference points and considered the value that they have in comparison to Hadrian’s Tower. We have summarised those comparisons on the following basis (*** = premium). Apartment Block/Location

City Centre

View or Vantage

New Build Premium

Lifestyle Offering

Quality of Apartments

Premium Rents

Yield Guarantee

***

Baltic Quay

St. Anne’s Quay

55 Degrees North

Pandongate

Princess Building

Turnbull Building

Stamp Exchange

***

Grey Street

***

Waterloo Square

***

The View/ Liberty Plaza

***

Hadrian’s Tower

contact information Tony Morrin, Investor Sales Manager Telephone: 0191 211 4130 Mobile: 07967 156901 Email: tmorrin@allsaintsliving.com Visit us online: www.hadrianstower.com Directions: By Road The nearest major road is the A167(M)/A1. Follow signs to St. James’ Park and the building is on St. James’ Boulevard. Public Transport The nearest train station is Newcastle Central station. The nearest metro station is St. James’ Park. Newcastle coach station is 7 minutes’ walk. Each property mentioned in this brochure (including text, photographs, artists impressions and computer generated images) on all pages is indicative and intended as a guide only. It should not be assumed that any contents/furnishings/furniture etc. photographed or illustrated in this brochure are included in any sale. Any areas, measurements or distances, external and internal, referred to are approximate and are given as a guide only and may be subject to variations. Descriptions of the properties and landscaping are subjective and are used in good faith as an opinion and not a statement of fact. Depending upon the stage of construction, purchasers should satisfy themselves by inspection should they have any concerns. We reserve the right at any time to change the layout, specifications, elevations and landscaping on each property and development. The information in this brochure does not constitute a contract or warranty. In accordance with the Property Misdescriptions Act (1991) we have prepared this information as a general guide to the property. It is not intended to form part of any offer or contract. All photographs and floor plans are given as a guide only and should not be relied upon for the purchase of any furnishings.

HADRIANâ&#x20AC;&#x2122;S TOWER 27 Rutherford Street, Newcastle upon Tyne