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PARHAM STUDENT VILLAGE CANTERBURY A rare opportunity to acquire a freehold campus of private sector purpose built student/residential accommodation comprising 800 bedrooms in 16 properties let on a range of tenancies with very strong underlying residential use and value.

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Page 1: Parham Student Villagepdf.savills.com/documents/Parham Student Village...Parham Student village Canterbury 7 SiTUaTioN Canterbury is approximately 45 miles from the M25 london orbital

1Parham Student Village Canterbury

Parham Student Village

CaNTErBUrYa rare opportunity to acquire a freehold campus of private sector purpose built student/residential accommodation comprising 800 bedrooms in 16 properties let on a range of tenancies with very strong underlying residential use and value.

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2 Parham Student Village Canterbury

Hamill Terrace

Sargeant’s Parade

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3Parham Student Village Canterbury

Hotham Court

Sargeant’s Parade

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4 Parham Student Village Canterbury

ExECUTivE SUmmarYRare opportunity to acquire a very significant freehold

real estate holding currently comprising 800 student bedrooms in a range of townhouses and apartments

Multiple value-add opportunities including site assembly, refurbishment, lease re-structuring and break up

Mix of bedroom types captures wide spectrum of student demand

immediate retail amenities including asda and Sainsbury’s supermarkets

15 minutes walk to Canterbury Christ Church campus and the city centre

Significant supply and demand imbalance in city with little new stock in the pipeline

Full time student population of approximately 30,199 of which only 23.14% have access to purpose built student accommodation (PBSa)

92% of the properties (by bed number) have an open C3/C4 (dwelling & HMO) planning use. the remaining 8% of planning consents reference ‘student accommodation’ but are not restricted to student occupier/s

Currently the largest private provider of student accommodation in Canterbury

Occupancy rate of 100% achieved to datedirect let rents underpin current income90% of 2014/15 income secured to four educational

institutions and 10% on a direct let basis increasing to 26% for 2015/16

Currently producing a gross income of £3,713,083 which is projected to rise to £3,968,542 in September 2015 (+6.88%). 45% of income is linked to annual RPi reviews, the majority with minimum uplifts

net projected income for 2014/15 academic year of £3,232,688 which is projected to increase to £3,338,199 in September 2015 (+3.26%)

the vendor, a Jersey SPV, may consider the sale of its entire issued share capital to the purchaser

We are instructed to seek offers in excess of £50,000,000 (Fifty million Pounds) for the freehold interest, which reflects a net initial yield of 6.17% rising to 6.37% in September 2015 based on purchasers costs of 4.8% allowing for the proven use of Multiple dwelling Relief (MdR)

Sargeant’s Parade

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5Parham Student Village Canterbury

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6 Parham Student Village Canterbury

LoCaTioNCanterbury is an historic english cathedral city and uneSCO World Heritage Site located in east Kent, approximately 61 miles east-southeast of london. the coastal towns of Herne Bay and Whitstable are 6 miles to the north and Faversham is 8 miles to the northwest.

the city centre is focused around the famous Canterbury Cathedral which dates back to 597ad. Many other historical structures remain, including the city wall founded in Roman times and rebuilt in the 14th century, the ruins of St augustine’s abbey and a norman castle, and perhaps the oldest school in england, the King’s School. Canterbury is one of the most visited tourist destinations in the united Kingdom and whilst tourism is an important part of the local economy, the other key economic driver for the city is Higher education.

the city of Canterbury has a population of 55,240 (Source: OnS 2011).

there are five Higher education institutions:

Canterbury Christ Church university (CCCu)

university of Kent (uoK)

CatS College of Canterbury (CatS)

university for the Creative arts (uCa)

girne american university (gau)

M6

M2A2

M20

M25

M11

M25

M25

M25

M3

M25

M23

M20

M20

M6

A2

A28

A28

A20

A256

A256

A256

A299

A299

A299

A229

A229

A2

A2

A2

A20

A13

A13

A13

A23

A24

A3

A30

A40

A12

A12

A12

A406 A503

A205A214

A229

A228

A249

A249

A2070

A28

A2

CANTERBURY

DOVER

FOLKESTONE

HERNE BAY

MINSTER

WHITSTABLE

FAVERSHAM

HEMPSTEAD

CHARING

ALDINGTON

SISSINGHURST

AYLESFORD

UPCHURCH

WALTHAM

BEKESBOURNE

SEASALTER

HERNHILLDUNKIRK

HOLLINGBOURNE

MARDEN

TENTERDEN

KINGSWOOD

ELHAM

CHALLOCK

SITTINGBOURNE

WOODNESBOROUGH

GILLINGHAMISLE OF

SHEPPEY

ASHFORD

MARGATE

RAMSGATE

MAIDSTONE

TONBRIDGE

DARTFORD

BROMLEY

BASILDON

BRENTWOOD

EPSOM

CROYDON

GUILDFORD

HORSHAM

MITCHAM

TWICKENHAM

HOUNSLOW

WEMBLEY

ENFIELD

ROMFORD

BARNET

ROYAL TUNBRIDGE

WELLS

CRAWLEY

LONDON

CANTERBURY

DOVER

FOLKESTONE

HERNE BAY

MINSTER

WHITSTABLE

FAVERSHAM

HEMPSTEAD

CHARING

ALDINGTON

SISSINGHURST

AYLESFORD

UPCHURCH

WALTHAM

BEKESBOURNE

SEASALTER

HERNHILLDUNKIRK

HOLLINGBOURNE

MARDEN

TENTERDEN

KINGSWOOD

TONBRIDGE

DARTFORD

BROMLEY

BASILDON

BRENTWOOD

EPSOM

CROYDON

GUILDFORD

HORSHAM

MITCHAM

TWICKENHAM

HOUNSLOW

WEMBLEY

ENFIELD

ROMFORD

BARNET

ROYAL TUNBRIDGE

WELLS

CRAWLEY

ELHAM

CHALLOCK

SITTINGBOURNE

WOODNESBOROUGH

GILLINGHAMISLE OF

SHEPPEY

ASHFORD

MARGATE

RAMSGATE

MAIDSTONE

LONDON

CaNTErBUrY iS aN hiSToriC ENgLiSh CaThEdraL CiTY aNd UNESCo WorLd hEriTagE SiTE LoCaTEd iN EaST KENT, aBoUT 55 miLES EaST-SoUThEaST oF LoNdoN

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7Parham Student Village Canterbury

SiTUaTioNCanterbury is approximately 45 miles from the M25 london orbital motorway and 61 miles from central london.

it has two railway stations, Canterbury West and Canterbury east. Canterbury West is served by high speed (56 mins) trains to london St Pancras and Canterbury east provides another service into london Victoria (1hr 30 mins).

there are nine bus routes that go directly from the bus stop on the Sturry Road (a28) to CCCu, uCa, CatS and gau.

the service is very regular with buses every 10 minutes and the journey takes approximately 5-9 minutes. two of the bus routes continue on to the uoK, which is located to the north of the city.

A2050

RHEIMS WAY

A2050

RH

EIMS W

AY

A290

WHITSTABLE ROAD

A2050

NEW DOVER ROAD

LONGPORT ST MARTIN’S HILL

A28

A28

A28

A28

PIN HILL A 2 8

ASHFORD ROAD

A28

A2

CANTERBURY

Canterbury West

To London 1 hour 31 minutes

To Dover

To London 58 minutes

Canterbury East

UNIVERSITY OF KENT 0.4 KM

15 MINUTE WALK

10 MINUTE WALK

5 MINUTE WALK

GAU

ASDA

Sainsbury’s

CCCUCathedral

UCA

Whitefriars Canterbury

Higher education institiutions

areas of interest

Parham Student Village

Walk Walk & Bus

Canterbury Christ Church university 15 mins 8 minsuniversity of the Creative arts 20 mins 10 minsCatS Canterbury 30 mins 12 minsgirne american university 22 mins 8 minsuniversity of Kent 30 mins 20 mins

CATS

Parham Student Village is located on the north-eastern side of Canterbury, conveniently positioned just off the Sturry Road (a28) which is a main route into and around the city. to the north of the site is the River Stour and Vauxhall lakes.

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8 Parham Student Village Canterbury

AmandosCourt

No reliance can be placed on the indicative plan and that the prospective purchaser’s solicitor will have to undertake their own due diligence to ascertain, amongst other matters, the full extent of the property’s demise.

SiTE PLaN

Ownership

Sargeant’s Parade En-suite Non En-suite112 Beds 28 Dwellings 112 0

Glenside Avenue En-suite Non En-suite12 Beds 3 Dwellings 5 7

Stour Promenade En-suite Non En-suite61 Beds 10 Dwellings 61 0

Riverdale House En-suite Non En-suite

24 Beds 4 Dwellings 24 0

Albert Mews En-suite Non En-suite

75 Beds 13 Dwellings 75 0

ToTaLSBeds 800Dwellings 165En-Suites 390Non En-Suites 407

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9Parham Student Village Canterbury

AmandosCourt

Riverdale House En-suite Non En-suite

24 Beds 4 Dwellings 24 0

Amandos Court En-suite Non En-suite40 Beds 7 Dwellings 40 0

Parham Close En-suite Non En-suite21 Beds 3 Dwellings 0 21

Hamill Terrace En-suite Non En-suite127 Beds 24 Dwellings 0 127

Rigby Court En-suite Non En-suite108 Beds 23 Dwellings 1 107

Freeman Court En-suite Non En-suite103 Beds 20 Dwellings 42 61

Hotham Court En-suite Non En-suite107 Beds 24 Dwellings 20 87

Colton House

En-suite Non En-suite

10 Beds 6 Dwellings

10 0

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10 Parham Student Village Canterbury

NorTh PhaSE – TWo ProPErTiES

4. 1–10 Sargeant’s Parade is comprised of 70 en-suite beds arranged in a terrace of 10 houses. the property was constructed in 2008. each house has 7 bedrooms including the ground floor living room which has been converted to provide an additional bedroom.

11-28 Sargeant’s Parade was constructed in 2010 and provides 4 bedroom flats on each of the ground and first floors with 1 bed flats on the second floor. in total the property provides 42 en-suite bedrooms in 8 x 4 bed flats and 10 x 1 bed flats.

Both properties benefit from a small garden which backs onto the river walk and car parking at the front.

WEST PhaSE – FoUr ProPErTiES

5. 1–10 Stour Promenade was constructed in 2006 and is located at the western edge of the site and can be accessed from glenside avenue. there are 61 en-suite beds arranged in a terrace of 10 houses. each house has 6 en-suite bedrooms, with the exception of 1 house which has an additional bedroom, having been converted from the downstairs living room. 9 of the properties therefore benefit from a separate living room. the properties benefit from a garden at the rear with car parking available at the front.

6. 11 glenside avenue is a traditional 3 non en-suite bedroom semi-detached house located at the northern end of glenside avenue and has car parking.

15 glenside avenue is a more modern end terrace house providing 5 en-suite bedrooms located at the north west end of glenside avenue.

16 glenside avenue neighbours number 15 and is a traditional 4 non en-suite bedroom mid terrace house.

all these properties have a garden to the rear.

SoUTh PhaSE – ThrEE ProPErTiES

1. 1–13 albert mews was built in two phases, with 1-7 opening in 2007 and comprising 43 en-suite bedrooms whilst 8-13 was completed in 2006 and is comprised of 32 en-suite bedrooms. the individual houses within the property provide a mix of 3, 5, 6 and 7 bed units. all the bedrooms benefit from double beds and some of the houses have an additional guest WC and car parking facilities.

2. riverdale house was converted from an office building and provides 24 en-suite bedrooms in 6 bed cluster flats. the bedrooms are larger than average and prove very popular with students.

3. 1–3 Parham Close property was constructed prior to 2000. there are 3 houses each providing 7 non en-suite bedrooms and 2 bathrooms. the shared kitchen provides the usual specification and facilities with car parking at the front.

1.

4. 5. 6.

2. 3.

dESCriPTioNParham Student Village is on a large interlinking campus, which have all been developed or substantially refurbished since 2003.

the buildings can be easily distinguished if they are divided into four geographical phases as below:

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11Parham Student Village Canterbury

EaST PhaSE – Six ProPErTiES

7. 1–7 amandos Court was constructed in 2009. the property provides a terrace of 4 houses with each providing 7 en-suite bedrooms and the end of terrace provides 3 x 4 bed flats.

8. 1–24 hotham Court is located on the south east corner of Sargeant’s Parade and Parham Road and was constructed in 2005. Similarly to Rigby Court and Freeman Court the property is built around a central courtyard and provides 3 houses and 21 flats providing a total of 107 bedrooms. the property provides predominantly non en-suite accommodation which is arranged with 3 to 6 bedrooms sharing 3 shower rooms.

9. 1–23 rigby Court was constructed in 2003 and is located opposite Hamill terrace on the corner of Parham Road and Sargeant’s Parade. it is built around a courtyard comprising 107 non en-suite and 1 en-suite bedrooms arranged in 10 houses and 13 flats.

10. Colton house is opposite amandos Court and provides 10 bedrooms and a management office. the property was constructed in 2007. the office is leased to CCCu and is manned 24 hours a day by a security warden. this management area provides an office, reception and a WC. the accommodation in Colton House is a mix of room types with 4 studios and 2 bedroom flats. the studios provide a double bed and a self-contained kitchen area. the 2 bedroom flats provide en-suite bedrooms, which are larger than others at the property and share a large kitchen.

11. 1–20 Freeman Court was constructed in 2004 and is located on the south west corner of Sargeant’s Parade and Parham Road. the property provides a mix of en-suite and non en-suite accommodation accross 103 bedrooms arranged in 3 houses and 17 flats predominantly with 5 to 7 bedrooms sharing 3 and 7 shower rooms.

12. 1–24 hamill Terrace adjoins amandos Court and provides accommodation in a mix of 16 houses and 8 flats. it was built in 2003 and it provides 127 non en-suite bedrooms. 13 of the houses have gardens to the rear and all have car parking spaces.

7. 9. 11.

8. 10. 12.

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12 Parham Student Village Canterbury

iNComEthe property is currently let on a variety of common law tenancies to four Higher education institutions and a number of assured shorthold tenancies for the direct lets as shown in the tenancy schedule below. Rooms let on a direct let basis include students from all the main institutions in Canterbury, including the uoK.

there is strong demand for all units in the scheme given the undersupply of accommodation in the city. Rooms let on a direct let basis demonstrate underpinning and reversionary income across the site.

TENaNCY SChEdULE

Property No. Beds Tenant

2014/15 Rent per annum

2015/16 Rent per annum

Lease Expiry First Break Date

Review Basis (& minimum

uplift)

Unexpired Term at March 2015 (Years)

Comments

1-10 Sargeant's Parade 70 CCCu £366,024 £377,005 31/07/2017 - - 2.4

Recent extension from 1 to 2 year lease. 2015/17 lease excluded from S24-28 of the landlord and tenant act 1954.

11-28 Sargeant's Parade 42 CCCu £248,960 £256,179 14/12/2031 14/09/2020 annual, RPi 5.5

1-24 Hotham Court 107 uCa £463,124 £476,555 18/06/2036 18/06/2021 annual, > 2.9% / RPi 6.3

1-20 Freeman Court 103 CCCu £439,953 £452,712 04/09/2036 17/07/2020 annual,

> 2.9% / RPi 5.4

1-13 Hamill terrace 78 CCCu £326,125 £335,583 31/12/2025 31/08/2018 annual, > 2.9% / RPi 3.5

14-24 Hamill terrace 49 CCCu

(direct let) £204,874 £250,958 30/06/2015 - - 0.3

Recent lease extension for 1 month and lease excluded from S24-28 of the landlord and tenant act 1954.direct let from expiry of CCCu lease extension.

1-23 Rigby Court 108 CCCu £455,739 £469,411 31/07/2017 - - 2.4Recent extension from 1 to 2 year lease. 2015/17 lease excluded from S24-28 of the landlord and tenant act 1954.

1-6 Colton House 10 CCCu £65,325 £67,220 04/09/2032 - annual, RPi 17.5Reception Colton House 0 CCCu £7,601 £7,821 04/09/2032 - annual, RPi 17.5

1-7 amandos Court 40 CCCu £190,299 £196,008 31/07/2017 - - 2.4Recent extension from 1 to 2 year lease. 2015/17 lease excluded from S24-28 of the landlord and tenant act 1954.

1-13 albert Mews 75 direct let £354,124 £447,552 30/06/2015 - - 0.3 earliest aSt lease expiry date.Riverdale House 24 gau £105,130 £109,335 31/08/2016 - > 4% / RPi 1.5 Review Basis for 2015/16 only.

1-3 Parham Close 21 CCCu(direct let) £98,916 £107,554 31/07/2015 - - 0.4 direct let from expiry of CCCu lease.

1-10 Stour Promenade 61 CatS/Ceg

(direct let) £335,490 £360,700 31/08/2015 - - 0.5 direct let from expiry of CatS/Ceg lease.

11 glenside avenue 3 direct let £14,400 £15,840 30/06/2015 - - 0.3 aSt expiry date.15-16 glenside avenue

9 CCCu £36,999 £38,109 15/07/2017 - - 2.4 Recent extension from 1 to 2 year lease. 2015/17 lease excluded from S24-28 of the landlord and tenant act 1954.

800 £3,713,083 £3,968,542 3.3*

Breakdown of 2015/16 direct let rent detailed in the data room*Weighted average unexpired lease term (Wault) to First Break date

Hamill Terrace1-10 Stour Promenade

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13Parham Student Village Canterbury

2014/2015 2015/2016

groSS iNComE BrEaKdoWN For aCadEmiC YEar

iNComE aNaLYSiSthe analysis of the gross income, management costs and net income projections is shown in the table below:

2014/15 2015/16gross income £3,713,083 £3,968,542Management Costs* £480,395 £630,343net Projected income £3,232,688 £3,338,199

the management costs cover the landlord’s running costs across the scheme including the central overhead, the direct let properties and the leased assets. Copies of the management budgets are available on request or in the data room.

it is anticipated there will be an increase of 16% of the total number of beds being placed into the direct let pool for 2015/16 which will allow strong rental growth to be achieved. given the undersupply of accommodation in Canterbury and the quality of the scheme, we expect this strong demand and occupancy track record to continue.

45% of the gross income under the leases typically have annual RPi linked reviews, the majority with minimum uplifts.

Tenant Rent per annum BedsCCCU £2,440,815 66% 530 66%UCA £463,124 12% 107 13%

Direct Let £368,524 10% 78 10%CATS

(CEG)*£335,490 9% 61 8%

GAU £105,130 3% 24 3%Total £3,713,083 800

Tenant Rent per annum BedsCCCU £2,200,048 55% 460 57%

Direct Let £1,182,604 30% 209 26%UCA £476,555 12% 107 14%GAU £109,335 3% 24 3%Total £3,968,542 800

* Cambridge education group

Hotham CourtSargeant’s Parade

* inclusive of Vat

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14 Parham Student Village Canterbury

maNagEmENT

the scheme is managed by universal Student living an anuK accredited manager, on behalf of the current owners. they provide a facilities management and accounting function across the entire site, together with the marketing and management of the direct let rooms.

universal Student living is a specialist student management company which was set up in 2012. it has managed Parham Student Village since 1st June 2014.

rENTS iN CaNTErBUrYthe direct let quoting rents for 2015/16 at Parham Student Village are on the basis of 48 week tenancies and are shown below:

1-13 albert Mews £127 - £135 per week 1-10 Stour Promenade £127 per week1-3 Parham Close £110 per week 14-21 Hamill terrace £110 per week 22-24 Hamill terrace £110 per week 11 glenside avenue £110 per week

the above direct let quoting rents are attractively priced in comparison to other schemes in the city, where rents for cluster en-suites start at £140 per week, as seen in the table below:

Operator Scheme Tenancy Studio Cluster En-suites 2015/16urban Student life talis Court 48 weeks £175 £145 - £150urban Student life Behn Hall 48 weeks £170 - £175 £140 - £150urban Student life Kentish House 44 weeks £170 £140CCCu St george’s Centre 40 - 47 weeks n/a £148 (2014/15)

Note: The Urban Student Life managed properties are located adjacent to the Parham Student Village at the end of Parham Road

HOTHAM COURTPARHAM ROAD

FREEMAN COURT

Parham Student Village

URBAN STUDENT LIFE

Sargeant’s Parade

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15Parham Student Village Canterbury

ThE CaNTErBUrY STUdENT marKET Canterbury is a very strong student accommodation market, driven by the fact that there are five established Higher education institutions within the city. We estimate that there are approximately 30,199 full time students studying in Canterbury, with the two largest universities being the uoK and CCCu, whilst there are also full time students on Higher education courses studying at the uCa, CatS and gau.

Based on our research, there is a significant undersupply of PBSa within Canterbury for all Higher education institutions. this is likely to continue to be the case as we believe that the supply of suitable development land in the city is fairly scarce and there will also be competition on such land from other uses, such as private residential.

Parham Student Village is the largest private provider of student accommodation in the city.

it is also worth noting that there is limited representation from established sector specialist operators, which is unusual given the volume of full-time students and range of institutions.

a summary of the breakdown of the student population in the Higher education institutions can be seen in the following table:

Canterbury Christ Church University University of Kent University for the

Creative ArtsCATS College

CanterburyGirne American

Universitythe times and Sunday times university league table 2014 90th 33rd = 99th n/a n/a

total Full time Student Population (HeSa 2012-13) 11,600 17,120 989** 450** 40**

Purpose-built Student Rooms 1,409* 4,937 143* 61* 24*

Coverage of Purpose-built rooms to full time Students 12.15% 28.84% 14.46% 13.56% 60.00%

*Including Parham Student Village ** 2014/15 student numbers quoted from the institutions

SUPPLY aNd dEmaNd oF STUdENT aCCommodaTioN WiThiN CaNTErBUrYthe table below illustrates the overall supply and demand statistics for Canterbury. this shows a low underlying ratio of PBSa to fulltime students of 23.14%, which is considered an undersupply:

Numbers/Ratiosinstitutional accommodation 6,574Private Sector accommodation (direct let)* 414total existing accommodation* 6,988total Full time Student Population 30,199total Coverage of Rooms to Ft Students 23.14%

*Including Parham Student Village

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16 Parham Student Village Canterbury

CCCu was established as a teacher training college in 1962 and in 1978 the College could award degrees which were validated by the uoK. in 1995 the College could grant its own degrees for taught courses and changed its name in 1998 to CCCu College. in 2005 university status was granted changing its name to CCCu.

CCCu have four departments consisting of the Facility of arts and Humanities, Faculty of education, Faculty of Health and Social Care and Faculty of Social and applied Science.

CCCu is spread over five campuses including Canterbury, Broadstairs, Folkestone, Medway and tunbridge Wells.

CCCu has a high rate of employment for its students. 97% of its undergraduates were employed or in further study 6 months after completing their studies. (Source: HeSa 2012/13)

STUdENT PoPULaTioN

2012-2013 2011-2012 2010-2011 2009-2010 2008-2009

Full Time Part Time Full Time Part Time Full Time Part Time Full Time Part Time Full Time Part Time

Undergraduate 10,460 3,740 10,295 4,730 9,240 4,740 8,510 5,060 7,665 4,955

Postgraduate 1,140 2,705 1,195 2,890 1,520 2,685 1,640 2,770 1,465 2,670

Total 11,600 6,445 11,490 7,620 10,760 7,425 10,150 7,830 9,130 7,625

Source: HeSa 2012/13

FiNaNCiaL STaTUS

(000’s) Year to 31 July 2014 Year to 31 July 2013 Year to 31 July 2012Income £122,207 £121,910 £115,180Total Expenditure £116,022 £115,846 £110,636Retained Surplus £5,867 £7,124 £4,389Net assets incl. Pension Liability £70,361 £64,530 £51,255

(000’s) Year to 31 July 2014 Year to 31 July 2013 Year to 31 July 2012Income £58,634 £59,015 £59,632Total Expenditure £59,197 £59,361 £62,351Retained Surplus (£563) (£346) (£3,719)Net assets incl. Pension Liability £131,101 £124,585 £126,026

the uCa was established in 2005 when Kent institute of art and design merged with Surrey institute of art and design. it was granted university status in 2008.

FiNaNCiaL STaTUS

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17Parham Student Village Canterbury

(000’s) Year to 31 August 2013 Year to 31 August 2012 Year to 31 August 2011Turnover £70,946 £56,135 £43,670Profit (Loss) before Taxation £5,454 £55 £2,318Net Tangible Assets £18,348 £13,729 £10,532

the uoK was granted Royal Charter in 1965. it’s Canterbury campus is built within 300 acres of parkland located a 20 minute walk north of Canterbury city centre.

note: there are no common law leases with the uoK at Parham Student Village. However, the vendor has aSt contracts with uoK students on a direct let basis.

CatS is a wholly owned subsidiary of the Cambridge education group (Ceg), who are the tenant covenant on these units for the 2014/15 academic year. CatS was established over 60 years ago and is where the first uK university Foundation course was provided. the College is located near to CCCu on new dover Road.

the Ceg was established in 1952 and provides academic, creative and english language Foundation courses for students seeking to progress to the world’s leading universities.

FiNaNCiaL STaTUS (CEg)

girne american university Canterbury is an independent institution of american-style higher education. it is located opposite CCCu’s St george’s Centre. the university was founded in 1985 as an independent, non-profit institution and now has campuses across the world.

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18 Parham Student Village Canterbury

rESidENTiaL vaLUES iN CaNTErBUrYThE 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.

Our 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.

to meet demand, the uK rental stock will also need to be delivered primarily by the new build market, in volume and at a discount. to achieve this without impinging on the viability of development will require the planning system to formally recognise the need for private rented accommodation as interchangeable, to a greater or lesser degree, with affordable housing provision. this may go against political aspirations for a nation of home owners and development industry funded social housing.

CaNTErBUrY rESidENTiaL marKET ovErviEWFrom a local residential point of view Canterbury is an attractive cathedral city in the heart of east Kent. its proximity to the coast and access to central london via the High Speed rail link make it one of the more desirable residential locations in the county, whilst remaining comparatively more affordable than other Kentish commuter towns such as Sevenoaks and tunbridge Wells.

two factors have created a strong private rented sector in the city. there is a strong student presence within the city as a result of the number of Higher education institutions and property prices have remained stable, so young professionals have struggled to get onto the housing ladder. this has led to a surge in the PRS with investors purchasing properties within a short walking distance of the city centre/institutions/transport links.

as a result of this strong market, the city has seen a number of small scale residential flat and townhouse / mews type developments over the last few years. these developments have largely been within the city walls.

new build stock in Canterbury typically achieves £280- £350 psf. the closest new build units at Kingsbrook Park (Berkeley Homes) have recently been achieving £280 – £325 psf.

ProPErTY vaLUE daTa/graPhS For CT1

Property Type Avg Current Value

Avg £ per sq ft

Avg # beds

Avg £ paid (last 12 months)

detached £406,040 £276 3.8 £392,818Semi-detached £251,880 £270 3.1 £246,800terraced £239,462 £291 2.8 £228,355Flats £191,486 £279 1.8 £180,694

£0Detached Semi-Detached Terraced Flats

£50,000

£100,000

£150,000

£200,000

£250,000

£300,000

£350,000

£400,000

£450,000

avEragE ProPErTY vaLUES

Source: Zoopla

Amandos Court

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19Parham Student Village Canterbury

PLaNNiNgall but two of the properties forming Parham Student Village were granted planning permission for dwellings and flats without any reference, or restrictive conditions limiting their use to student occupation.

the planning permissions for 11-28 Sargeant’s Parade and Riverdale House reference ‘student accommodation’ in their descriptions although neither are subject to any planning conditions restricting the occupier/s to students or otherwise.

as of the 1 October 2010 there was an amendment to the Permitted development Order allowing for the permitted change of use from C3 (dwelling houses) to C4 (HMOs of up to six people) and vice versa. therefore in principle this would regularise any change from C3 to C4 if it was not already established.

vaTthe majority of the property is not elected for Vat and Vat will not be payable on the purchase price. Only the student reception area in Colton House has been opted to tax.

CaPiTaL aLLoWaNCESthere are no remaining unclaimed capital allowances.

daTa roomFor further information access to a data room is available on request.

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20 Parham Student Village Canterbury

ProPoSaLWe are instructed to seek offers in excess of £50,000,000 (Fifty million Pounds) for the freehold interest, which reflects a net initial yield of 6.17% rising to 6.37% in September 2015 based on purchasers costs of 4.8% allowing for the proven use of MdR.

the vendor, a Jersey Special Purpose Vehicle (SPV), may consider the sale of it’s entire share capital.

FUrThEr iNFormaTioNSaviLLS STUdENT iNvESTmENTJamES [email protected] 020 7016 3711

aLEx [email protected] 020 7647 6956

JamES [email protected] 7016 3762

SaviLLS rESidENTiaL iNvESTmENTgEorgE [email protected] 7016 3761

BrUCE [email protected] 020 7647 6942

Important NoticeSavills, their clients and any joint agents give notice that: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.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 | March 2015

Property investment advisors, on behalf of the vendor:

LaWSoN & ParTNErS