A SUBSTANTIAL INVESTMENT BUILDING, BETWEEN REGENTS PARK, MARYLEBONE

AND THE WEST END

2DEVONSHIRE STREET

LONDON W1

22 DEVONSHIRE STREET, LONDON W1

INVESTMENT SUMMARY

• Configured to provide 56 self contained studio units, and 7 communal rooms/kitchens

• Total floor area 2,366.1 sq m (25,470 sq ft)

• Average unit size 23.2 sq m (250 sq ft)

• Currently operated as student accommodation and short term lets

• Income:

° Contracted student income – £825,521

° Projected summer revenue – £577,000

° Total – £1,400,000

• Projected reversionary income – circa £1,750,000 per annum

• Planning use: Sui Generis

• Held on a Headlease for a term of 999 years from April 1932

• Possible value add through redevelopment subject to obtaining the necessary consents

• Located in Marylebone, between Regent’s Park and Oxford Circus

• Within close proximity to University College London and the University of Westminster

3 2 DEVONSHIRE STREET, LONDON W1

University College London

Great Portland Street

City of London

The British Museum

Regent’s Park 2DEVONSHIRE STREET

University of Westminster

MayfairSouthbank Oxford CircusSoho2DEVONSHIRE STREET

62 DEVONSHIRE STREET, LONDON W1

LOCATION AND SITUATION

The property is located within the City of Westminster.

Devonshire street runs east/west/ connecting Marylebone High Street with Great Portland Street. The property sits to the east of Devonshire Street at its junction with Hallam Street.

Royal Regent’s Park is approximately (0.4 miles to the north) and Oxford Street (0.6 miles to the south). Marylebone Village is less than half a mile to the West.

University College London (0.5 miles to the east) and the University of Westminster (0.6 miles to the west) are within the vicinity. Communications are excellent with both Regents Park (Bakerloo line – Zone 1) and Great Portland Street (Hammersmith & City, Circle and Metropolitan – Zone 1) station under a five minute walk. In addition there are various accessible bus routes that connect the property to wider London. The Westway (A40) 1.2 miles to the west, links the West End to the M4 and Heathrow Airport.

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NOTE:- Reproduced from the Ordnance Survey Map with the permission of the Controller of H.M. Stationery Office. © Crown copyright licence number 100024244 Savills (UK) Ltd. NOTE:- Published for the purposes of identification only and although believed to be correct accuracy is not guaranteed.

2DEVONSHIRE STREET

LONDON W1

7 2 DEVONSHIRE STREET, LONDON W1

HISTORY

Marylebone traces its history back to the Domesday book. The eastern half of Marylebone was developed by the Duke of Portland in the 18th and 19th Centuries. In the late 19th and early 20th century following the expiration of individual building leases, much of the area was redeveloped and many of the area’s original Georgian houses were replaced by large mansions and office blocks.

Constructed in 1925, 2 Devonshire Street was originally laid out as residential apartments. In 1964 the property was acquired by the YMCA for use a high class women’s hostel and since 2007 it has been used as student accommodation and serviced apartments. The property sits on land currently owned by the Langham Estate.

This impressive corner building with generous and flexible floorplates appeals to a variety of occupiers and is situated in an enviable position close to London’s West End. Immediate neighbours include: prestigious hotels such as The Langham, The Sanderson and The Edition; world class universities such as University College London; and major employers such as the BBC.

82 DEVONSHIRE STREET, LONDON W1

FLOOR PLANS

Basement Ground Floor

1st – 5th Floor 6th Floor

For identification purposes only. Not to scale.Bedrooms Communal Area’s

Gross Internal Area 2,188.07 sq m (23,553 sq ft) Plant Room and Vaults 178.09 sq m (1,917 sq ft) Overall Gross Internal Area 2,366.1 sq m (25,470 sq ft)

9 2 DEVONSHIRE STREET, LONDON W1

TENANCY SCHEDULE

Contracted Student Income 2015/16Projected Revenue Summer 2016

(Assuming Full Occupancy)

Flat Tenancy Start Date

Tenancy End Date Weeks Room

Type Rent Per

WeekContracted

Rent End of

Summer Stay Days Rent Per Night

Summer Rent

LG1 20/09/2015 10/07/2016 42 Classic £309 £12,978 15/09/2016 67 £165 £11,055

LG2 14/09/2015 06/06/2016 38 Classic £309 £11,742 16/09/2016 101 £165 £16,665

LG3 20/09/2015 10/07/2016 42 Premium £339 £14,238 17/09/2016 67 £175 £11,725

1 05/09/2015 27/08/2016 42 Family £375 £15,750 18/09/2016 19 £185 £3,515

2 15/09/2015 05/07/2016 42 Premium £339 £14,238 19/09/2016 72 £175 £12,600

3 11/08/2015 09/08/2016 52 Family £375 £19,500 20/09/2016 37 £185 £6,845

4 Staff Occupied Classic £0 21/09/2016 168 £165 £27,720

5 10/09/2015 01/09/2016 51 Classic £309 £15,759 22/09/2016 14 £165 £2,310

6 14/09/2015 04/07/2016 42 Classic £309 £12,978 23/09/2016 73 £165 £12,045

11 01/09/2015 21/06/2016 42 Family £375 £15,750 24/09/2016 86 £185 £15,910

12 14/09/2015 05/09/2016 50 Premium £339 £16,950 25/09/2016 10 £175 £1,750

13 21/09/2015 11/07/2016 51 Premium £339 £17,289 26/09/2016 66 £175 £11,550

14 10/09/2015 08/09/2016 52 Classic £319 £16,588 27/09/2016 7 £165 £1,155

15 21/09/2015 11/07/2016 42 Classic £309 £12,978 28/09/2016 66 £165 £10,890

16 10/09/2015 02/06/2016 38 Premium £339 £12,882 29/09/2016 105 £175 £18,375

18 13/09/2015 03/07/2016 42 Classic £309 £12,978 30/09/2016 74 £165 £12,210

19 14/09/2015 04/07/2016 42 Premium £339 £14,238 01/10/2016 73 £175 £12,775

21 11/09/2015 01/07/2016 42 Family £420 £17,640 02/10/2016 76 £185 £14,060

22 18/09/2015 09/09/2016 51 Premium £372.90 £19,017.90 03/10/2016 6 £175 £1,050

23 04/05/2015 04/05/2006 52 Premium £330 £17,160 04/10/2016 134 £175 £23,450

24 31/08/2015 22/08/2016 51 Classic £309 £15,759 05/10/2016 24 £165 £3,960

25 14/09/2015 03/09/2016 51 Classic £309 £15,759 06/10/2016 12 £165 £1,980

26 12/09/2015 02/07/2016 42 Premium £339 £14,238 07/10/2016 75 £175 £13,125

28 20/09/2015 10/07/2016 42 Classic £309 £12,978 08/10/2016 67 £165 £11,055

29 14/09/2015 05/09/2016 51 Premium £339 £17,289 09/10/2016 10 £175 £1,750

31 14/09/2015 04/07/2016 42 Family £420 £17,640 10/10/2016 73 £185 £13,505

32 20/09/2015 12/06/2016 38 Premium £339 £12,882 11/10/2016 95 £175 £16,625

33 27/09/2015 17/07/2016 42 Premium £339 £14,238 12/10/2016 60 £175 £10,500

34 13/09/2015 03/07/2016 42 Classic £309 £12,978 13/10/2016 74 £165 £12,210

35 18/09/2015 10/05/2016 38 Classic £309 £11,742 14/10/2016 128 £165 £21,120

36 21/09/2015 11/07/2016 42 Premium £339 £14,238 15/10/2016 66 £175 £11,550

38 26/09/2015 18/06/2016 38 Classic £309 £11,742 16/10/2016 89 £165 £14,685

39 05/09/2015 25/06/2016 42 Premium £339 £14,238 17/10/2016 82 £175 £14,350

41 08/09/2015 28/06/2016 42 Family £412.50 £17,325 18/10/2016 79 £185 £14,615

42 12/09/2015 02/07/2016 42 Premium £339 £14,238 19/10/2016 75 £175 £13,125

43 14/09/2015 03/09/2016 51 Premium £339 £17,289 20/10/2016 12 £175 £2,100

44 01/09/2015 23/08/2016 51 Classic £309 £15,759 21/10/2016 23 £165 £3,795

45 19/09/2015 17/09/2016 52 Classic £339.90 £17,674.80 22/10/2016 -2 £165 -£330

46 01/09/2015 23/08/2016 51 Premium £372.50 £18,997.50 23/10/2016 23 £175 £4,025

48 22/08/2015 20/08/2016 52 Classic £309 £16,068 24/10/2016 26 £165 £4,290

49 18/09/2015 02/07/2016 42 Premium £339 £14,238 25/10/2016 75 £175 £13,125

51 13/09/2015 14/06/2016 39 Family £403.79 £15,747.81 26/10/2016 93 £185 £17,205

52 14/09/2015 05/09/2016 51 Premium £339 £17,289 27/10/2016 10 £175 £1,750

53 04/09/2015 24/06/2016 42 Premium £339 £14,238 28/10/2016 83 £175 £14,525

54 25/09/2015 15/07/2016 42 Classic £309 £12,978 29/10/2016 62 £165 £10,230

55 08/08/2015 27/08/2016 51 Classic £309 £15,759 30/10/2016 19 £165 £3,135

56 12/09/2015 03/09/2016 51 Premium £372.90 £19,017.90 31/10/2016 12 £175 £2,100

58 26/09/2015 24/05/2016 38 Premium £309 £11,742 01/11/2016 114 £175 £19,950

59 14/10/2015 01/06/2016 33 Family £339 £11,187 02/11/2016 106 £185 £19,610

61 10/09/2015 01/09/2016 51 Classic £309 £15,759 03/11/2016 14 £165 £2,310

62 14/09/2015 04/07/2016 42 Family £375 £15,750 04/11/2016 73 £185 £13,505

63 13/11/2015 03/06/2016 29 Classic £309 £8,961 05/11/2016 104 £165 £17,160

64 15/06/2015 15/08/2016 38 Classic £309 £11,742 06/11/2016 31 £165 £5,115

65 14/09/2015 05/09/2016 51 Premium £339 £17,289 07/11/2016 10 £175 £1,750

67 16/09/2015 08/09/2016 51 Classic £310.73 £15,847.23 08/11/2016 7 £165 £1,155

68 14/09/2015 06/06/2016 38 Family £375 £14,250 09/11/2016 101 £185 £18,685

£825,521.14 £577,000

Total £1,402,521.14

102 DEVONSHIRE STREET, LONDON W1

PLANNING

The building is currently operated as:

• Student accommodation – 36 weeks per annum • Serviced apartments – 16 weeks

Planning Ref: 11/04128/CLOPUD

Use as a hostel (sui generis) to accommodate:

i) during the Academic Terms (comprising a minimum of 38 weeks per annum) undergraduate and postgraduate students enrolled on a full-time accredited degree or post graduate course at a Higher Education Institute within a London Borough, and

ii) outside the Academic Terms to students or non students, either individually or collectively, on a short term basis (less than 90 days).

Decision – Application Permitted

Decision Issued Date Wed 10 Aug 2011

This planning permission was subsequently amended in a letter dated 19/08/15 from the City of Westminster:

‘To the extent that the academic terms of University College London are less than 38 weeks, which appears to be the case, the Council considers that it would be reasonable for the minimum period, referred to in the definition of “academic term” in the said agreement, to coincide with the actual academic terms of University College London. Term dates are likely to differ from year but for the year 2015/2016 the Council understands the academic terms for University College London to equate to 29 weeks and 4 days’.

ACCOMMODATION

Accommodation is arranged over basement, ground and six upper floors. The property consists of 56 self contained studios. There is a large open plan lounge area and laundry room at basement level. On the ground floor there is a generous entrance hall / concierge area. With the exception of the ground, each floor benefits from an additional communal kitchen. The total floor area is 2,366.1 sq m (25,470 sq ft).

INCOME AND PROJECTIONS

Studios are let as student accommodation during term time at the following rents:

Unit Type Current Projected 16/17Classic studio £309 per week £349 per week Premium studio £339 per week £399 per week Family Room £375 per week £499 per week

Rents charged are ‘all-inclusive’ and cover:-

• Furniture • Kitchenette facilities• Flat-screen TV• High speed Wi-Fi

• Electricity & water • Access to communal lounge area• On site laundry facilities• Personnel on site 8 hours a day

Projected summer revenue:

Unit Type Current Projected 16/17Classic studio £165 per night £173 per night Premium studio £175 per night £183 per night Family Room £185 per night £195 per night

*In addition to the ‘all-inclusive’ cover, a linen service is offered for the serviced apartments.

STUDENT ACCOMMODATION MARKET

Higher Education in London

There are approximately 290,000 students in the Greater London area, more than any other city in Europe. There are approximately 100,000 international students living in London, they are attracted to the capital by the strength of its higher education institutions. There are 39 recognised universities in London and three of these, Imperial College, University College and the London School of Economics are rated amongst the best 20 universities in the world. In addition, there are a significant number of private and independent colleges and language schools whose students require accommodation, including Regents American College.

Supply of Student Accommodation in London

London has an under-supply of student accommodation. Currently, only around 22% of full time students have access to purpose built residences. The average regional UK supply level is around 35-40%. In addition, challenges around securing planning permissions, CIL, land pricing and build costs make the barriers to entry to increase supply of student accommodation significant. It is therefore a rare opportunity to be able own student accommodation in central London.

11 2 DEVONSHIRE STREET, LONDON W1

James Laverack + 44 (0) 20 7016 3770 jlaverack@savills.com

Davina Clowes +44 (0) 20 7016 3838 dclowes@savills.com

Adam Alster + 44 (0) 20 7299 3097 aalster@savills.com

Marcus Roberts + 44 (0) 20 7016 3799 mroberts@savills.com

James Hanmer + 44 (0) 207 016 3711 jhanmer@savills.com

TENURE

The property is held on a Headlease for a term of 999 years from April 1932.

METHOD OF SALE

The property is offered for sale by private treaty.

Offers are sought for the Headlease interest subject to contract and the existing tenancies.

Should a closing date for the submission of offers be set, all parties who have expressed an interest will be notified in due course.

VAT

The property is not elected for VAT.

FURTHER INFORMATION

A full suite of background information, including EPCs, can be found on the online dataroom at:

www.savills.co.uk/2devonshirestreet

VIEWINGS

Viewings are strictly by appointment via the vendor’s sole selling agents, Savills. Please contact one of the team below to make an appointment.

SavillsResidential Investment Student Investment

Important Notice

Savills, and their clients give notice that:

1. They are not authorised to make or give any representations or warranties in relation to the property either here or elsewhere, either on their own behalf or on behalf of their client or otherwise. They assume no responsibility for any statement that may be made in these particulars. These particulars do not form part of any offer or contract and must not be relied upon as statements or representations of fact.

2. Any areas, measurements or distances are approximate. The text, photographs and plans are for guidance only and are not necessarily comprehensive. It should not be assumed that the property has all necessary planning, building regulation or other consents and that Savills and Knight Frank have not tested any services, equipment or facilities. Purchasers must satisfy themselves by inspection or otherwise.

Designed and Produced by Savills Marketing: 020 7499 8644 | February 2016