SAUL HOUSE

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SAUL HOUSE

RUSTON WAY, LINCOLN LN6 7FQ

Prime student accomodation investment opportunity

SAUL HOUSE

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INVESTMENT SUMMARY

� Student accommodation property comprising 69 en-suite student bedrooms

� Purpose built, modern accommodation completed in 2013

� Excellent location within 100m of the University of Lincoln’s Brayford Pool Campus

� Subject to an annual nominations agreement with the University of Lincoln

� 100% occupancy in 2013/2014 academic year

� Net Operating Income of £272,088 for the current academic year 2013/2014

� Offers sought in excess of £3,670,000 for the freehold interest reflecting a net initial yield of 7.00%

SAUL HOUSE

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LOCATION

The historic Cathedral City of Lincoln is located approximately 35 miles north east of Nottingham, 46 miles south east of Sheffield and 143 miles north of London.

Lincoln is a strong regional, administrative and commercial centre with a population of 85,595 people (Census 2001). The ‘Greater Lincoln’ catchment has a population of approximately 250,000 people.

Lincoln benefits from excellent transport and rail links with the rest of the country.

Lincoln’s main arterial routes include the A46, A57 and A15. The A46 provides access to the A1 at Newark on Trent, Leicester and the M1 (junction 21a) to the south east and Grimsby to the north east. The A57 provides access to the A1, the M1 (junction 31) and Sheffield to the north west whilst the A15 leads north towards Scunthorpe and the M180 (junction 4) and south towards Sleaford.

Lincoln Central Railway Station is operated by East Midlands Trains who provide services along with Northern Rail. Lincoln Central provides regular services to London King’s Cross with a fastest journey time of 1 hour 50 minutes. There are also direct services to Leicester (1 hour 44 minutes), Sheffield (1 hour 20 minutes) and Nottingham (52 minutes).

Humberside International and East Midlands airports are easily accessible being 25 and 48 miles away respectively and provide direct flights to many European and continental destinations.

Bristol

Bath

Cardiff

Swansea

GloucesterCheltenham

Swindon

Oxford

Milton Keynes

Reading

Aylesbury

High Wycombe

Basingstoke Guildford

Crawley

Maidstone

RoyalTunbridge Wells

London

Chelmsford

Colchester

Ipswich

NorthamptonBedford

Cambridge

NorwichGreat Yarmouth

Lowestoft

King’s Lynn

Peterborough

Newmarket

StevenageStansted

Luton

Leicester

Birmingham

Coventry

Worcester

Telford

Stoke-on-TrentWrexham

Colwyn Bay

Derby

Nottingham

A1M1

M1A57

M180

M62

A1

M11

A14

A1(M)

A47A47

A47

M1

M69

M6

M54M42

M45

M40

M1

Manchester

Sheffield

LeedsBradford

York

Liverpool

PrestonBlackburn

Burnley

Harrogate

MiddlesbroughDarlington

Stockton-on-Tees

Hartlepool

Sunderland

Newcastleupon Tyne

Edinburgh

GlasgowFalkirk

Stirling

Aberdeen

Perth

Dundee

Inverness

Plymouth

Exeter

Torquay

Southampton

Portsmouth

Bournemouth

BrightonEastbourne

Hastings

Southend-on-Sea

Ramsgate

Dover

Folkestone

Kingston upon Hull

Scarborough

Grantham

Lincoln

Skegness

Doncaster Grimsby

ScunthorpeBarnsley

Carlisle

Dumfries

Salisbury WinchesterTaunton

Weston-super-Mare

Newport

M53

M57M62

M18M1

A1(M)

M62

M6

Chester

Formby

Southport

Lincoln benefits from excellent transport and rail links with the rest of the country.

SAUL HOUSE

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THE UNIVERSITY OF LINCOLN

The University of Lincoln was established in 2001 with the Brayford Pool site becoming the main campus . There are now 11,000 students/1,200 staff and the University is thought to be worth more than £250m to the local economy (doubling local economic growth rates) and has created more than 3,000 new jobs. The university of Lincoln is now ranked in the Top 50 of The Guardian University Guide 2013.

There has been more than £140 million invested in the Brayford Pool campus that has transformed a city centre brownfield site, revitalised the area and attracted investment from the retail, leisure and property sectors.

The University has an award-winning business incubation centre, Sparkhouse, that has supported more than 100 new and growing businesses to establish themselves in the region and create over 200 new jobs.

The University is home to the National Centre for Food Manufacturing at Holbeach campus, a state-of-the-art training factory sponsored and updated entirely by industry. The University of Lincoln opened the UK’s first purpose-built engineering school in 25 years in collaboration with Siemens and emda.

Contract research and consultancy purchased from the University by business and the public sector is thought to be worth over £16 million in the last five years (2007-12).

Students rated a number of Lincoln’s courses among the best in the country for student satisfaction in the latest National Student Survey. Accounting was ranked number one nationally for the fourth year in a row.

The University has accreditation by a number of professional bodies including Nursing and Midwifery Council, Royal Pharmaceutical Society of Great Britain, Health Professions Council, General Social Work Council, British Psychological Society, Broadcast Journalism Training Council, Periodical Training Council, Chartered Institute of Environmental Health, Chartered Institute of Personnel and Development, Law Society, Bar Council and Institute of Biomedical Science. It is the School of Journalism’s first institution in Europe to receive “Recognised for Excellence” accolade.

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SITUATION

Saul House is located 1.2 miles to the south west of Lincoln City centre. The student residence occupies a prominent position towards the western end of Ruston Way. Access to Ruston Way is via the B1273 to the north and the B1003 from the south.

Saul House is located within a five minute walk to the Brayford Pool Campus, opposite to the University’s Sports Centre, all weather sports facilities and McDonalds, and adjacent to the Holiday Inn hotel.

Universityof Lincoln

CARHOLME ROAD

A5 7

NEWLAND

WIG

FORD

WAY

ST MARYS STREET

B127

3 BR

AYFO

RD W

AY

ROPE WALK

SITE

The site is broadly rectangular in shape and extends to approximately 0.34 acres

(0.137 hectares).

DESCRIPTION

Saul House is a purpose built student accommodation property that first opened in September 2013.

The accommodation block comprises 69 bed spaces arranged in 3 bed cluster flats providing en suite facilities to each bedroom. The internal specification is of a high standard with modern furnishings.

Internet access points are provided to each bedroom. The cluster flats benefit from a shared kitchen and living room. These communal areas are well equipped with dishwashers provided to the kitchens and sofas and televisions supplied to the lounge areas.

There is a dedicated laundry facility and separate management suite.

TENURE

The property is held freehold.

MANAGEMENT

Derwent FM currently manages the property on behalf of the vendor. The management contract commenced in September 2013 and is subject to various conditions. If these conditions are met the agreement will continue, until either party fails to perform and serves not less than thirty days’ written notice at any time. The contract can be terminated immediately following a sale of the property.

Derwent FM have indicated that they would be amenable to entering into a new contract with a purchaser to continue to provide such services.

Interested parties are requested to, in the first instance, contact the vendor’s agent who will provide further information regarding the facilities management and the current agreement upon request.

SAUL HOUSE

SAUL HOUSE

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TENANCY

The property is let to students via an annual rolling nominations agreement with Lincoln University subject to Occupational Agreements which effectively follow the basis of an Assured Shorthold Tenancy (AST).

The all en-suite accommodation at Saul House is 100% let for the year 2013/2014 on a 51 week basis, providing a gross rental income for the property of £387,090 per annum. This equates to £110/week per bed space.

The University of Lincoln currently takes an administration fee of 6% (£23,225) for the University to find the students so net rent before facilities management and other cost is £103/week/bedspace - £363,864 per annum.

Facilities management costs for the year 2013/2014 are as follows;

Management fees £34,380pa

Utilities £50,600

Internet charges / TV £6,796

Net operational income £272,088

NOMINATIONS AGREEMENT

Saul House is a University of Lincoln Accommodation Agency property and therefore benefits from joint marketing with the University (http://www.lincoln.ac.uk/home/accommodation/accommodationagency/)

Saul House is also currently subject to an annual nominations agreement with the University of Lincoln for the 2013/2014 academic year. The Nominations Agreement guarantees the rental value of the reserved rooms. This Agreement is reviewed with the University annually.

The University seeks to provide accredited accommodation for as many first year students as possible and in discussions has again agreed to nominate the same number of rooms for the 2014/2015 academic year at room rates to be confirmed.

VAT

We understand the property is elected for VAT and it is proposed that the transaction will be treated as a TOGC.

EPC

The property has an Energy Performance Rating of B (50)

PROPOSAL

We have been instructed to seek offers in the region of £3,670,000 (Three Million Six Hundred and Seventy Thousand Pounds) subject to contract and exclusive of VAT for the freehold interest. A purchase at this level will reflect an attractive net initial yield of 7% assuming standard purchaser’s costs of 5.8%.

FURTHER INFORMATION

For further information and arrangements to inspect the property are to be made through Savills or our joint sole agent Hodgson Elkington LLP:

Mark K Wilson mkwilson@savills.com + 44 (0) 113 220 1254

Simon Lister slister@savills.com + 44 (0) 113 220 1208

Lizze Whetman lwhetman@savills.com +44 (0) 20 7016 3863

SUBJECT TO CONTRACT

Sam Elkington sam.elkington@hodelk.co.uk +44 (0) 1522 814 696

Tim Murgatroyd tim.murgatroyd@hodelk.co.uk +44 (0) 1522 698 888

Important Notice

Savills, Hodgson Elkington and their clients and any joint agents 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 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 January 2014