SHARPERTON HOUSE - Allsop HOUSE, YRON STREET, SHIELDFIELD, NEWCASTLE-UPON-TYNE NE XH STUDENT...

SHARPERTON HOUSE, BYRON STREET, SHIELDFIELD, NEWCASTLE-UPON-TYNE NE2 1XH STUDENT ACCOMMODATION INVESTMENT OPPORTUNITY

STUDENT ACCOMMODATION INVESTMENT OPPORTUNITY

SHARPERTON HOUSE BYRON STREET, SHIELDFIELD, NEWCASTLE-UPON-TYNE NE2 1XH

PRIVATECLIENT

INVESTMENT SUMMARY

Purpose built modern student block constructed in 2006

•

Situated in the popular university city of Newcastle

•

9 apartments providing 30 en-suite rooms

•

Let for the academic year 2016/17 with a landlord guarantee for 2017/18 of £160,000 p.a.

•

Total current gross rent passing of £154,013 p.a.

•

Prominent student location in close proximity to both Northumbria University

and Newcastle University

•

The two universities benefit from a full time student population of over 43,000

•

Recent refurbishment works to the property undertaken in 2016

•

Freehold

•

We are instructed to seek offers in excess of £1,650,000 (One Million Six Hundred and Fifty

Thousand Pounds) subject to contract. This equates to an attractive net initial yield of 9.20%

and a triple net yield of c.7%, after allowing for purchaser’s costs of 5.45% representing a low

capital value of £196 psf.

STUDENT ACCOMMODATION INVESTMENT OPPORTUNITYSHARPERTON HOUSE, BYRON STREET, SHIELDFIELD, NEWCASTLE-UPON-TYNE NE2 1XH


LOCATION

Located on the north bank of the River Tyne, the popular City of Newcastle-upon-Tyne is the regional and economical capital of the North-East of England. The City benefits from some 280,000 residents and forms part of the wider Tyneside conurbation with a total catchment area of approximately 1.5 million. Newcastle is located approximately 280 miles north of London, 100 miles north of Leeds and 109 miles south of Edinburgh.

The City benefits from excellent transport links being located in close proximity to the A1 and A19, providing access to both the north and south of the UK, and the A69 connecting the city to

Carlisle and Cumbria to the west. Rail services are provided via the East Coast Mainline from Newcastle Central with quickest journey times to Sunderland, Edinburgh and London Kings Cross of 19 minutes, 1 hour 27 minutes, and 2 hours 50 minutes respectively.

Newcastle International Airport is located 6 miles north west of the city centre on the outskirts of Newcastle. The airport handles approximately 4.8 million passengers annually with direct routes to 80 UK, European and International destinations.

A1

A1

A1

A1

A694

A696

A692

A693

A167

A167

A167

A688

A689

A689

A172

A171

A179

A177

A688

A691

A690

A184 A194

A1058

A1018

A1300

A1231

A1018

A6072

A69

A19

A19

A19

A19

A66

A67

A68

A19

A69

A68

A68

A68

A66A66

A1 (M)

A1 (M)

A1 (M)

A1 (M)

DurhamTees Valley

International Airport

NewcastleInternational

AirportOustonAirfield

NEWCASTLEUPON TYNE

SUNDERLAND

HARTLEPOOL

MIDDLESBROUGH

RedcarBillingham

Darlington

BishopAuckland

BarnardCastle

Durham

Gateshead

Gosforth

Chester-le-Street

SouthShields

Tynemouth

JarrowNewburn

Whitley Bay

CITY CENTRE

Newcastle City Hall

CITY CAMPUSPEDESTRIANFOOTBRIDGE

SCHOOL OF DESIGN

Gatehead Millennium Bridge

PRINCESSSQUARE

A167(M)

A167(M)

A167(M)

Grey St

Grey St

Dean St

Forth St

S t Nic’s Church Yard

Side

Que

en S

t

Gra

inge

r St

Market St

John Dobson St

Melbourne St Buxton St Howard St

Argyle St

Falc

onar

St

Si m

pson Terra

ce

Pilgrim St

New Bridge St W

Que

en V

icto

ria

Road

Byro

n St

C

hest

er S

tree

t

Shie

ld S

tree

t

G

lads

tone

Terrace

Milton Place

Milton C

lose

Napia St

Milton Green

Falconar Street

NO

RTH

UM

BERLAN

D ST

REET

Cam

den

Stre

et

Cla

renc

e St

Gib

son

St

B16

00

Sandhill

B

1600 Quayside B

1600

Close B1600

Forth Banks B1600

Clayton St

NewGate St B1307 Great Market

B1311 Gallowgate

B1309 Durant Rd

B1307 Perc

y St

B1318

B1600 Stoddart Street

St Mary’s Pl

S

andy

ford

Ro

ad

A18 6 Melbourne St

Pilgrim St

A186 C

ity Rd

Westgate Rd

A186 Westgate Rd

Collingwood St

A186 Mosley St

St Nicholas’ St

A186 Neville St

Westgate Rd

Cla

yto

n St

W

A193 New Bridge St

A167 Tyne Bridge A167

Newcastle

Monument

Manors

M

Haymarket M

Manors M

SHARPERTON HOUSE

SHARPERTON HOUSE


SITUATION

Sharperton House is situated on a prominent corner position to the west side of Bryon Street at its junction with Camden Street and Falconar Street.

The property is located in the district of Shieldfield, an established student accommodation area, adjacent to Liberty Central Student Residence (850 beds) and opposite to Glenamara House Student Residence (310 beds).

The property is ideally located for both Universities: Northumbria Univeristy’s Pandon Building is located less than a minute’s walk to the south of the property and the university’s ‘City Campus East’ is located a five minute walk to the west. Newcastle University’s ‘King’s Road Campus’ and Student Union is located a 12-minute walk to the west.

Northumberland Street and the City Centre are within a 0.5km walk of the property and the city’s main attractions can all be reached in under 15 minutes by foot including the Millennium Bridge, Eldon Square Shopping Centre and The Grey’s Monument.

DESCRIPTION

• The property comprises a purpose built student block arranged over ground and three upper floors

• The block is of steel frame construction with brick elevations and solid concrete floors. The roof is metal clad and the property benefits from double glazed aluminium-framed windows throughout

• Internally the block is divided into 2 studio apartments, 1 two bedroom apartment, 2 three bedroom apartments and 4 five bedroom apartments, all with lounge and kitchen space

• In total the accommodation provides 30 en-suite rooms with units 3, 5, 7 and 8 benefiting from private balconies from their respective living spaces. Unit 1 also benefits from direct access to a private garden

• Each flat is let on a fully furnished basis and the rent is inclusive of bills including electricity and internet. The kitchens provide electric cookers, hobs and white goods. Each bedroom benefits from a ¾ size bed, desk and storage facilities. Every bedroom includes a wet room with an electric shower, W.C and basin.

• The electricity and water are individually measured per flat

• The property has benefited from recent refurbishment of all the apartments, the extent of the works differ per flat and details can be provided on request

• Broadband provision has recently been upgraded to meet both the existing and future bandwidth requirements of the students who typically have a much higher consumption ratio compared with the national average. Five separate internet connections with wireless access points in each of the flats have been made available providing consistent download speeds of up to 80 Mbps. The provision of this capability is particularly important to students for both academic and recreational purposes

43.6m44.0m

CAMDEN STREET

BYRO

NST

REET

Glenamara House

17to

19

Shar

perto

nHo

use

1to

8

Victoria Hall

B

A

210

412

816

0m 5m 10m 15m

Ordnance Survey © Crown Copyright 2017. All rights reserved. Licence number 100022432. Plotted Scale - 1:464

© Crown Copyright, ES 100004106. For identification purposes only.

NEWCASTLE: A STUDENT CITY

Newcastle-upon-Tyne is host to two leading universities: Newcastle University and Northumbria University. Combined, the two universities boast a full time student population of over 43,000, which has more than doubled in the past 15 years. The two universities have an annual income of over £710m and Newcastle University is the fourth largest employer in the North East.

In terms of education, Newcastle University in particular has received academic acclaim and is a member of the prestigious Russell Group that comprises the leading 24 universities within the UK. Northumbria University is a modern and ever expanding City Centre university currently ranked 65th in The Times Good University Guide (2018). In 2004, in recognition of the academic achievements of the two Universities, the UK government designated the City of Newcastle as one of six UK Science Cities.

INVESTING IN THE FUTURE

Both Newcastle University and Northumbria University are currently undertaking substantial investment plans which will result in a further £152 million being invested over the next 4 years. Newcastle University, in partnership with Newcastle City Council, is also helping to fund a £350m urban regeneration project on the site of the former Scottish and Newcastle brewery which will be known as ‘Science Central’, incorporating new offices and scientific workspace. NATIONAL STUDENT MARKET

In the UK, student accommodation as an asset class continues to perform well and increase in popularity. New investors have recognised the security of income and good rental growth that student accommodation offers. The sector is particularly resilient to ongoing macro-economic issues and remains robust in uncertain markets. This is highlighted by the continuing increase in purpose built student accommodation and new entry investors investing into the market. Fundamental to the sector’s resilience is the growth of student numbers from both within the UK and from overseas (HESA 2015/2016).

NEWCASTLE OCCUPATIONAL DEMAND: STUDENT ACCOMMODATION

With a full time student population of over 43,000 the occupational demand for student accommodation in Newcastle remains strong. In total there are 15,449 purpose built student accommodation beds within Newcastle of which 5,004 bed spaces are privately owned and the remaining 10,445 bed spaces are owned or controlled by either Newcastle University or Northumbria University. This suggests that only 36% of students have access to purpose built student accommodation with a large proportion of the remaining 64% of students relying on the HMO market, PRS stock or living at home – this in relation to other university cities is low. Newcastle also attracts a large percentage of international students (9,785, around 23%) who often rely solely on purpose built student accommodation rather than the traditional HMO Stock. In fact 63% of the purpose built bed space in Newcastle is required for international students alone. These figures suggest that Newcastle is a strong city for student investment and there is good competition between students for available purpose built bed spaces.

*Figures from Higher Education Statistics Agency 2017.

Undergraduate Postgraduate

Full-time Full-time Total full time students

University owned PBSA*

Privately owned PBSA*

Total PSBA* available

Average rents for PBSA*

Students per PBSA bed space

The University of Newcastle 17,680 4,565 22,245 5,3335,004 15,449

£83.30 - £164.64 2.81

Northumbria University 18,770 2,375 21,145 5,112 £73.50 - £172

*PBSA - Purpose Built Student Accommodation

SHARPERTON HOUSE, NEWCASTLE BYRON STREET, SHIELDFIELD, NEWCASTLE-UPON-TYNE STUDENT ACCOMMODATION INVESTMENT OPPORTUNITY

TENANCY SCHEDULE & ACCOMMODATION


Flat Lead Tenant Floor Beds Sq Ft Sq M Start Date

End Date

Weekly Rent per bed

Monthly Rent per bed

Gross Rent p.a

Bills included

1 Sharperton House Individual Ground 5 1,185.1 110.1 26/08/16 23/08/17 £109.70 £475.36 £28,521.50 Yes

2 Sharperton House (1 room) Individual First

5 1,228.2 114.1

05/08/16 23/07/17 £106.68 £462.27 £5,547.19 Yes

2 Sharperton House (1 room) Individual First 01/09/16 23/07/17 £88.67 £384.22 £4,610.60 Yes




3 Sharperton House Individual First 3 693.2 64.4 20/07/16 17/07/17 £84.77 £367.32 £13,223.52 Yes

4 Sharperton House Individual Second 5 1,228.2 114.1 05/09/16 04/09/17 £110.30 £477.98 £28,678.57 Yes

5 Sharperton House Individual Second 3 693.2 64.4 05/09/16 30/08/17 £98.89 £428.53 £15,427.00 Yes

6 Sharperton House (1 room) Individual Third

5 1,228.2 114.1

21/10/16 31/05/17 £80.00 £346.67 £4,160.00 Yes

6 Sharperton House (1 room) Individual Third 24/09/16 317/7/2017 £90.00 £390.00 £4,680.00 Yes




7 Sharperton House Individual Third Studio 343.4 31.9 10/08/16 09/08/17 £125.69 £544.64 £6,535.68 Yes

8 Sharperton House Individual Third Studio 412.3 38.3 12/08/16 08/08/17 £148.78 £644.70 £7,736.40 Yes

Sharperton Stead Individual Ground 2 527.4 49 06/07/16 04/07/17 £90.00 £390.00 £9,360.00 No

Communal Areas 880 81.8

Total Balcony Space Balconies arranged over different apartments 1,297 120.5

Total 8,419* 782* £154,013.60

*Balcony space not included in total sq ft / sq m


FLOORPLANS

TENUREFreehold

ACCOUNTSThe landlord will provide a gross rental guarantee of £160,000 p.a. for the 2017-2018 calendar year. For the past 3 years the property has been running at 100% occupancy and the total gross income is as follows:

2017-2016 2016-2015 2015-2014

£170,090 £162,344 £153,666

Please note that the current gross passing rent includes voids reflecting the recent substantial refurbishment of Sharperton House. For the purpose of calculating running costs we have assumed a discount of 25% to the gross rent. We advise that prospective purchasers should carry out their own due diligence to calculate potential costs. Full accounts are available on the dataroom.

THIRD FLOOR

FIRST FLOOR

SECOND FLOOR

GROUND FLOOR

Floorplans for illustrative purposes only.


PRIVATECLIENT

Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. Design CommandD www.commandHQ.co.uk 04.17

PROPOSALWe are instructed to seek offers in excess of £1,650,000 (One Million Six Hundred and Fifty Thousand Pounds) subject to contract. This equates to an attractive net initial yield of 9.20% and a triple net yield of c.7%, after allowing for purchaser’s costs of 5.45% representing a low capital value of £196 psf.

EPCRatings vary from E to C depending on unit. EPCs are available on the dataroom.

www.allsop.co.uk

For further information or to make arrangements for viewing please contact:

Alex Butler020 7543 [email protected]

Jack Robson0113 243 [email protected]

Liam Stray020 7543 [email protected]

Vicky Bingham0113 236 [email protected]

PRIVATE CLIENT TEAM RESIDENTIAL INVESTMENT

DATAROOMFor access to the Allsop Data Room, please use the following link:

https://datarooms.allsop.co.uk/register/SharpertonHouse

Information includes:

• Tenancy schedule

• Accounts

• Sample AST

• EPCs

• Floorplans

• Land Registry documents and title plan

VIEWING INFORMATIONThe property will be subject to block viewing arrangements - please refer to the agents.

SHARPERTON HOUSE - Allsop HOUSE, YRON STREET, SHIELDFIELD, NEWCASTLE-UPON-TYNE NE XH STUDENT...

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