South CoaSt ReSidential inveStment PoRtfolio

A portfolio of four unbroken residentiAl blocks on the south coAst comprising 73 ApArtments

VAlley View, hArold roAd, hAstings, tn35

the lArches, hAmpden close, st leonArds-on-seA, tn37

south coAst residentiAl inVestment portfolio | the lArches, hAmpden close, st leonArds-on-seA

Investment summary

> 48 apartments (mix of studios, one, two and three bedrooms) across two freehold blocks situated in st Leonards-on -sea

> Current gross rental income of £268,152 per annum

> estimated rental value of £281,880 per annum

> apartments let on asts currently with 98% occupancy

Description

the Larches is located off De Cham road, approximately 1.5 miles to the north west of st Leonards-On-sea town centre. st Leonards Warrior square train station is a short distance to the south (c. 1.2 miles) which provides services through to Bexhill to the west, or via Hastings to central London in approximately 1 hour 30 minutes.

the property comprises two attached freehold blocks of apartments (Block e and F), developed in 2005. the properties are subject to assured shorthold tenancies. the total current rent passing per annum of both blocks is £268,152 per annum, and estimated rental value of £281,880 per annum.

the appliances and heating within both blocks is electric, although it is understood that wider site is connected to mains gas.

the site extends to approximately 1.67 acres (0.68 hectares) and provides allocated parking for 50 cars.

Block E

Block e comprises a three storey block of apartments with additional accommodation on the fourth floor; this has been achieved by inserting velux windows on the fourth floor to enable the use of the roof space as residential dwellings.

each property is fitted with double doors leading to either a small Juliet balcony at first floor and above or providing access at ground floor level to the front or rear of the building.

access to Block e is via a shared communal entrance hall in the centre of the building where there is lift access to all floors and a common hallway and stairwell. at each floor is a central hallway and corridor down the centre of the building providing access to all units.

Block F

Block F is attached to Block e on the southern boundary and comprises a further 11 apartments. the ground floor comprises 6 undercroft car parking spaces currently utilised as storage space by the vendors. the ground floor also comprises two x 1 bedrooms apartments. at first floor and above are three x 2 bedroom apartments per floor with the top floor apartments contained within the roof space utilising velux windows where appropriate.

Development potential

subject to securing the necessary planning consents, the land to the west of the site fronting on to London road may provide some future development potential.

33.5m

43.2m

49.0m

49.6m

52.2m

TCB

LB

ANGLESEA TERRACE

DE CHAM ROAD

LON

DO

N R

OAD

WOODLAND VALE ROAD

DE CHAM

CLO

UD

ESLEY R

OAD

ROAD

SM

179

64

13

14

PC PC

Government

El Sub Sta

161

24

6

Offices

69

2a

12

102

185

82

2

163

2

197

10

21

1

149Heron House

12

21

84

27

98

Sub

165

2

El

1

98

66

22

83

Sta

1

18

177

31

10 to 18

Sycamores 19 to 27

StaEl

Sub

1 to 9

11Pembroke

1 to 9

The

Court

28 3028a 30a

The Larches

1 to 11

12 to 48

Hampden Mews

1

3

4

16

1

BLOCK E

BLOCK F

WOO

DLAND VALE ROAD

0m 25m 50m 75m

Ordnance Survey © Crown Copyright 2015. All rights reserved. Licence number 100022432. Plotted Scale - 1:1705

LOt 1: tHe LarCHes, st LeOnarDs-On-sea, tn37 6GB

nOte:- reproduced from the Ordnance survey map with the permission of the Controller of H.m. stationery Office © Crown copyright licence number 100022432 savills (uK) Ltd. nOte:- Published for the purposes of identification only and although believed to be correct accuracy is not guaranteed.

example bathroom, the Larches

example, Living room, the Larches

south coAst residentiAl inVestment portfolio | the lArches, hAmpden close, st leonArds-on-seA

Warrior square, st Leonards-On-sea Communal entrance hall, the Larches

example living room, the Larches sea front, st Leonards-On-sea

south coAst residentiAl inVestment portfolio | the lArches, hAmpden close, st leonArds-on-seA

Block Apartment Floor Bedrooms Bathooms Passing Rent PCM Passing Rent PA ERV PCM ERV PA Tenancy Type Tenancy Start Date Tenancy End Date

f 1 Ground 1 1 £450.00 £5,400 £450.00 £5,400 aSt 18/08/2001 17/02/2015

f 2 Ground 1 1 £400.00 £4,800 £450.00 £5,400 aSt 28/02/2010 Periodic tenancy

f 3 1st 2 1 £550.00 £6,600 £575.00 £6,900 aSt 30/11/2014 29/11/2015

f 4 1st 2 1 £550.00 £6,600 £575.00 £6,900 aSt 09/11/2014 08/11/2015

f 5 1st 2 1 £575.00 £6,900 £575.00 £6,900 aSt 13/11/2014 Periodic tenancy

f 6 2nd 2 1 £575.00 £6,900 £575.00 £6,900 aSt 25/01/2013 24/07/2015

f 7 2nd 2 1 £600.00 £7,200 £600.00 £7,200 aSt 05/05/2015 04/05/2015

f 8 2nd 2 1 £575.00 £6,900 £575.00 £6,900 aSt 29/10/2011 28/10/2016

f 9 3rd 2 1 £565.00 £6,780 £575.00 £6,900 aSt 25/04/2014 Periodic tenancy

f 10 3rd 2 1 £550.00 £6,600 £575.00 £6,900 aSt 22/02/2015 21/02/2016

f 11 3rd 2 1 £560.00 £6,720 £575.00 £6,900 aSt 22/02/2014 21/02/2016

e 12 Ground 1 1 £450.00 £5,400 £450.00 £5,400 aSt 03/01/2012 Periodic tenancy

e 13 Ground 1 1 £450.00 £5,400 £450.00 £5,400 aSt 07/02/2015 06/08/2015

e 14 Ground 1 1 £425.00 £5,100 £450.00 £5,400 aSt 23/05/2008 Periodic tenancy

e 15 Ground 1 1 £450.00 £5,400 £450.00 £5,400 aSt 22/08/2014 21/08/2015

e 16 Ground 1 1 vaCant vaCant £460.00 £5,520 aSt vaCant vaCant

e 17 Ground 1 1 £450.00 £5,400 £450.00 £5,400 aSt 03/06/2013 Periodic tenancy

e 18 Ground 1 1 £450.00 £5,400 £450.00 £5,400 aSt 30/04/2015 29/10/2015

e 19 Ground Studio 1 £350.00 £4,200 £400.00 £4,800 aSt 24/05/2006 23/12/2015

e 20 Ground 1 1 £450.00 £5,400 £450.00 £5,400 aSt 26/09/2014 Periodic tenancy

e 21 Ground 1 1 £435.00 £5,220 £450.00 £5,400 aSt 05/10/2007 05/10/2015

e 22 Ground 1 1 £450.00 £5,400 £450.00 £5,400 aSt 26/06/2014 25/06/2015

e 23 1st 1 1 £425.00 £5,100 £450.00 £5,400 aSt 12/01/2001 11/01/2016

e 24 1st 1 1 £425.00 £5,100 £450.00 £5,400 aSt 02/03/2009 Periodic tenancy

e 25 1st 1 1 £465.00 £5,580 £460.00 £5,520 aSt 03/12/2013 Periodic tenancy

e 26 1st 1 1 £460.00 £5,520 £460.00 £5,520 aSt 17/04/2014 16/04/2016

e 27 1st 1 1 £470.00 £5,640 £460.00 £5,520 aSt 30/04/2015 29/04/2016

e 28 1st 1 1 £435.00 £5,220 £450.00 £5,400 aSt 09/05/2009 08/07/2015

e 29 1st 1 1 £425.00 £5,100 £450.00 £5,400 aSt 07/06/2010 Periodic tenancy

e 30 1st Studio 1 £361.00 £4,332 £400.00 £4,800 aSt 27/05/2014 26/05/2015

e 31 1st 1 1 £460.00 £5,520 £460.00 £5,520 aSt 23/12/2013 22/12/2015

e 32 1st 1 1 £450.00 £5,400 £450.00 £5,400 aSt 26/09/2014 25/03/2016

e 33 1st 1 1 £460.00 £5,520 £460.00 £5,520 aSt 30/01/2014 29/07/2015

e 34 2nd 1 1 £450.00 £5,400 £450.00 £5,400 aSt 30/11/2012 29/05/2016

e 35 2nd 1 1 £450.00 £5,400 £450.00 £5,400 aSt 21/09/2013 Periodic tenancy

e 36 2nd 1 1 £420.00 £5,040 £450.00 £5,400 aSt 02/11/2009 Periodic tenancy

e 37 2nd 1 1 £450.00 £5,400 £450.00 £5,400 aSt 03/10/2014 02/10/2015

e 38 2nd 1 1 £450.00 £5,400 £450.00 £5,400 aSt 07/02/2015 06/02/2015

e 39 2nd Studio 1 £400.00 £4,800 £400.00 £4,800 aSt 29/08/2008 Periodic tenancy

e 40 2nd 1 1 £440.00 £5,280 £450.00 £5,400 aSt 10/11/2010 09/05/2015

e 41 2nd 1 1 £350.00 £4,200 £450.00 £5,400 aSt 02/07/2013 Periodic tenancy

e 42 2nd 1 1 £455.00 £5,460 £450.00 £5,400 aSt 25/03/2006 24/10/2017

e 43 2nd 1 1 £450.00 £5,400 £450.00 £5,400 aSt 25/09/2014 24/09/2015

e 44 2nd 1 1 £425.00 £5,100 £450.00 £5,400 aSt 11/05/2010 Periodic tenancy

e 45 3rd 3 1 £575.00 £6,900 £685.00 £8,220 aSt 14/11/2009 Periodic tenancy

e 46 3rd 2 1 £525.00 £6,300 £575.00 £6,900 aSt 28/08/2014 27/08/2015

e 47 3rd 3 2 £685.00 £8,220 £685.00 £8,220 aSt 24/05/2010 23/11/2017

e 48 3rd 3 2 £675.00 £8,100 £685.00 £8,220 aSt 28/02/2013 27/09/2015

Total 48 £22,346 £268,152 £23,490 £281,880

south coAst residentiAl inVestment portfolio | VAlley View, hArold roAd, hAstings

Description

valley view is situated adjacent to Harold road and behind existing terraced and semi detached properties. the mainline Hastings train station is situated approximately 1.9 miles from the properties and provides services to London Charing Cross.

the development, constructed in 2009, is situated approximately 1 mile to the north east of the renowned Jerwood Gallery on rock-a-nore road. the Jerwood Foundation’s choice of the stade, Hastings as the site for its major art gallery has helped accelerate the pace and depth of Hastings regeneration. the gallery houses one of the most important collections of recent work by British artists in the uK.

the accommodation is comprised of sixteen x 2 bedroom flats in Block B and nine x 2 bedroom units in Block C. all the units are of a similar layout, with

LOt 2: vaLLey vIeW, HarOLD rOaD, HastInGs, tn35 5PL

CF

CR

CF

CS

FW

CS

FW

EK

Und

Bour

ne S

tream

Sinks

Sinks

Spring

Spring

Sinks

Spring

75.5m

69.2m

SHAW CLOSE

PIND

ERS

ROAD

Playing FieldAllotment Gardens

El Sub Sta

68

127

141

143

221

219

290

270

111

10 to 18

79

1 to 9

95

258

109

102

to 1

10

269

125

282

259

Court

82 to

90

2

249

93

248244

77

218

63

61

1 to 11

Valley

View

12 to 27

28 to 36

54

Stamford

232

Block B

Block C

Block A

0m 25m 50m 75m

Ordnance Survey © Crown Copyright 2015. All rights reserved. Licence number 100022432. Plotted Scale - 1:1495

some upper apartments in Block C benefitting from sea views. Both Block B and C contain lift  access.

the properties are subject to assured shorthold tenancies. the total current rent passing per annum of both blocks is currently fully let with a rent passing of £188,340 per annum, and estimated rental value of £191,760 per annum.

the wider site slopes away from Harold road and rises on the opposite side of Bourne stream where there is an area of mature woodland which is protected. the site (excluding Block a and related parking) extends to approximately 2.05 acres (0.83 hectares). vehicular access to the site is off Harold road.

nOte:- reproduced from the Ordnance survey map with the permission of the Controller of H.m. stationery Office © Crown copyright licence number 100022432 savills (uK) Ltd. nOte:- Published for the purposes of identification only and although believed to be correct accuracy is not guaranteed.

Investment summary

> 25 two bedroom apartments across two freehold blocks situated in Hastings

> Current gross rental income of £188,340  per annum

> estimated rental value of £191,760 per annum

> apartments fully let on asts

all apartments benefit from private allocated parking space as well as allocated visitors parking and the apartments have lift access to all floors. the kitchens within the apartments are installed with gas hobs and electric ovens. the heating for the apartments is from gas central heating.

Block a and related parking provision (hatched red on the plan below) was sold to swale Housing association in 2006.

Development potential

subject to securing the necessary planning permissions, the land at north of the site both fronting on to Harold road and running parallel to the access road, may provide future development potential.

Communal entrance hall, valley view example Kitchen, valley view

example bedroom, valley view example bathroom, valley view

south coAst residentiAl inVestment portfolio | VAlley View, hArold roAd, hAstings

Block B rock-a-nore road, Hastings Old London road, Hastings

Block Apartment Floor Bedrooms Bathooms Passing Rent PCM Passing Rent PA ERV PCM ERV PA Tenancy Type Tenancy Start Date Tenancy End Date

B 12 Ground 2 1 £635.00 £7,620 £635 £7,620 aSt 02/03/2013 01/03/2016

B 13 Ground 2 1 £600.00 £7,200 £615 £7,380 aSt 31/01/2014 30/07/2015

B 14 1st 2 1 £625.00 £7,500 £640 £7,680 aSt 10/10/2013 on periodic

B 15 1st 2 1 £650.00 £7,800 £665 £7,980 aSt 04/08/2014 03/08/2015

B 16 1st 2 1 £650.00 £7,800 £650 £7,800 aSt 12/01/2015 11/07/2015

B 17 1st 2 1 £600.00 £7,200 £615 £7,380 aSt 12/06/2010 on periodic

B 18 2nd 2 1 £650.00 £7,800 £665 £7,980 aSt 29/09/2014 28/03/2016

B 19 2nd 2 1 £630.00 £7,560 £645 £7,740 aSt 10/01/2014 on periodic

B 20 2nd 2 1 £625.00 £7,500 £640 £7,680 aSt 29/11/2013 28/11/2015

B 21 2nd 2 1 £600.00 £7,200 £615 £7,380 aSt 08/03/2014 07/03/2016

B 22 3rd 2 1 £650.00 £7,800 £665 £7,980 aSt 01/10/2014 30/09/2015

B 23 3rd 2 1 £610.00 £7,320 £625 £7,500 aSt 29/06/2009 28/06/2015

B 24 3rd 2 1 £600.00 £7,200 £615 £7,380 aSt 14/02/2013 on periodic

B 25 3rd 2 1 £650.00 £7,800 £665 £7,980 aSt 13/12/2014 12/12/2015

B 26 4th 2 1 £625.00 £7,500 £640 £7,680 aSt 02/08/2013 on periodic

B 27 4th 2 1 £615.00 £7,380 £615 £7,380 aSt 09/11/2012 08/05/2016

C 28 Ground 2 1 £630.00 £7,560 £645 £7,740 aSt 21/01/2012 20/01/2016

C 29 Ground 2 1 £650.00 £7,800 £650 £7,800 aSt 12/12/2014 11/12/2015

C 30 1st 2 1 £625.00 £7,500 £625 £7,500 aSt 10/04/2015 09/10/2016

C 31 1st 2 1 £625.00 £7,500 £640 £7,680 aSt 18/05/2013 17/05/2015

C 32 2nd 2 1 £625.00 £7,500 £640 £7,680 aSt 26/08/2014 on periodic

C 33 2nd 2 1 £650.00 £7,800 £650 £7,800 aSt 07/01/2015 06/01/2016

C 34 3rd 2 1 £625.00 £7,500 £640 £7,680 aSt 19/12/2012 on periodic

C 35 3rd 2 1 £625.00 £7,500 £640 £7,680 aSt 02/01/2014 on periodic

C 36 4th 2 1 £625.00 £7,500 £640 £7,680 aSt 14/04/2012 on periodic

Total 25 £15,695 £188,340 £15,980 £191,760

south coAst residentiAl inVestment portfolio | the lArches, hAmpden close, st leonArds-on-seA & , hArold roAd, hAstings

st leonards-on-sea, sea front

Jerwood gallery, rock-a-nore road

tHe uK PrIvate renteD seCtOrthe rising demand for rented housing over the past decade and lack of new housing supply has driven the price of housing beyond the reach of a large segment of the population.

strong population growth over the next 10 years coupled with a tightening mortgage market for both first time buyers and buy to let landlords, means that there is significant opportunity for large scale investors to meet the rising demand for rented property.

savills expectation is that the Private rented sector (Prs) will continue to expand for the remainder of the decade, to 6.6m households in the uK by 2019, which is around 250,000 new Prs households per annum.

savills research forecasts the south east of england to show the strongest growth in the uK of 26.4% over the five year period from 2015-2019.

LeGaLBoth the Larches and valley view are offered for sale freehold.

PLannInGthe properties are permitted for C3 residential use.

enerGy PerFOrmanCe CertIFICatesthe ePCs for the residential apartments are contained within the data room.

WarrantIesnHBC Warranties are in place for all apartments at valley view these are in place for ten years from august / september 2009. examples of these are provided in the dataroom.

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 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 | June 2015

metHOD OF saLethe portfolio is offered for sale as a whole or as two lots. savills are seeking offers as follows:

> Lot 1: The Larches, St Leonards-on-Sea – Offers over £3.5m

> Lot 2: Valley View, Hastings – Offers over £2.5m

the portfolio is being offered for sale by way of private treaty. Offers are sought for the freehold interests subject to contract and the existing tenancies

should a closing date be set for the submission of offers, all parties will be informed in due course.

vIeWInGInternal viewings of sample properties will be possible, strictly by prior arrangement with the selling agents. Please contact the selling agents for further details.

vatvat is not chargeable on the sale of the properties.

OnLIne DatarOOm

Further information as summarised below is provided in the dataroom:

www.savills.com/hastingsstleonards

Please register to gain access.

> sales Process Letter

> Floor plans

> Full portfolio schedule

> sample tenancy agreements

> title documentation

> external & internal photographs

> energy Performance Certificates

> Land registry Information

> nHBC Warranties

COntaCtGeorge Hepburne-Scott residential Capital markets – Investment +44 (0) 20 7016 3761 ghscott@savills.com

Matthew McBride residential Capital markets – Investment +44 (0) 20 7409 5990 mmcbride@savills.com

Sam Kirkaldy sevenoaks Development +44 (0) 173 278 9783 skirkaldy@savills.com