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STUDENT ACCOMMODATION INVESTMENT AND ASSETMANAGEMENT OPPORTUNITY IN COVENTRY CITY CENTRE

KEY INVESTMENT / ASSETMANAGEMENT CONSIDERATIONS

SEEKING OFFERS IN EXCESSOF £7,300,000, REFLECTINGA NET INITIAL YIELD OF 7.5%

■ Student accommodation operational opportunity in the popular Queens Road area of Coventry, utilised by both Coventry and Warwick University students

■ Converted former office building and purpose built annexe in close proximity, arranged over 4 and 3 floors respectively, operating with full occupancy for over 10 years

■ Apollo House provides investors with an opportunity to acquire well established direct let student scheme, with a mixture of under and post graduates in a city centre location

■ Coventry University still undersupplied in regard to purpose built student accommodation in the city centre

■ Rental rates of £110 and £120 per week on standard and deluxe rooms, based on 42 weeks for under graduates and 50 weeks for post graduates allow significant room for improvement

■ Gross Income 2017/ 2018 of £809,680, with an EBITDA 2017/2018 of £563,180

■ Current Facilities Management cost equates to £1,531 per bed, representing 30.44% of Turnover.

■ Clean freehold titles on both properties, potential to purchase the offshore company holding the assets based in the Bahamas if beneficial

■ Apollo House offers potential development opportunities for the addition of 2 extra floors, alteration of internal layout to en-suite accommodation or change of use to Residential / PRS, subject to planning.

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The Annex

Station

CathedralRetail Area

Sky Dome Ramada Hotel [166 Beds]

AXO Students [214 Beds]

Liberty Park [464 Beds]

Regent House [67 Beds]

Coventry University

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LOCATIONApollo House is situated on the corner of the Butts Road (B4101) and Albany Road, in close proximity to Earlsdon, the premier residential area of the city, with the Annexe situated across the road on the corner of Gordon Street. The buildings occupy a highly visible position close to the city central ring road, opposite Earlsdon Park which houses the Albany Theatre, national government offices including the Department of Education and MH Land Registry, as well as a Premier Inn and a recently constructed 262 bed Extra Care Facility. The buildings are located approximately 0.7 miles walk from Coventry University, there is a direct line bus stop outside Apollo House that takes 25 minutes to Warwick University and Coventry central station is 0.5miles walk, providing direct line trains to both London and Birmingham in under 1 hour.

SITUATIONCoventry is a city and metropolitan borough in the West Midlands and the 10th largest city in England and 12th in the UK, with a population at latest estimate of 337,500, the fastest growing city outside Greater London.

The local economy is home to some of the world’s leading companies such as Jaguar Land Rover, Aston Martin, Rolls Royce, Tata Group, London Taxis, Severn Trent and EON. However it is the Universities that are increasingly taking centre stage, with Coventry being the only city in the country having two Universities listed inside the top 15 of the Guardian league tables for 2017/2018. With a total in excess of 54,000 students.

In terms of purpose built student accommodation, the city has seen an explosion of development recently to meet the substantial under supply in the market, as well as a desire by the local council to see students moving from the historic HMO based offerings. Following a recent study conducted on the city’s student accommodation, it highlighted a still unmet demand of around 3,500 student beds, taking into consideration all constructed and consented schemes.

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EARNINGS BEFORE INTEREST, TAX, DEPRECIATION ANDAMORTISATION 2017/18: £563,180

INCOME

THE ANNEXBed Room No. of Rent Term Occupancy Total GrossType Rooms (per week) (weeks) Rate Rent

Standard Room 10 £110 50 100% £55,000

Premier Room 17 £120 50 100% £102,000

Total Gross Income £157,000

TOTAL GROSS INCOME £809,680

Site No. of Rooms Cost per Student per Annum Total FM Cost Apollo House 134 £1,531.06 £205,154

The Annex 27 £1,531.06 £41,337

TOTAL EXPENDITURE £246,500

APOLLO HOUSEBed Room No. of Rent Term Occupancy Total GrossType Rooms (per week) (weeks) Rate Rent

Standard Room 54 £110 42 100% £249,480

Premier Room 80 £120 42 100% £403,200

Total Gross Income £652,680

STUDENT INCOME 2017/18

OPERATIONAL BUDGET 2017/18

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TENUREFreehold - 100% occupied.

SERVICESAll mains services connected to the building.

PRICEOffers are required in excess of £7,300,000 which equates to aNet Initial Yield of 7.5% after purchasers costs of 2.8%

VATBromwich Hardy stipulate that VAT will not be charged on the sale.

EPCThe EPC assessment forApollo House is C62 The EPC assessment forThe Annex is D83Full reports for both properties are available on request.

GENERAL INFORMATION

CONTACT INFORMATIONFOR FUTHER INFORMATION OR TO ARRANGE A VIEWING PLEASE CONTACT:

Misrepresentations Act 1967. Unfair Contract Terms 1977. Consumer Protection Regulations under Unfair Trading Regulations 2008. The Business Protection Regulations from Misleading Marketing Regulations 2008. These particulars are issued without any responsibility on the part of the agent and are not to be construed as containing any representations or fact upon which any person is entitled to rely. Neither the agent or any person in their employ has an authority to make or give any representation or warrant whatsoever in relation to the property. November 2017

James M. BrookesBromwich Hardy1 The Cobalt Centre, Siskin Parkway East,Middlemarch Business Park, Coventry CV3 4PE

02476 308 900

07854 367 326james.brookes@bromwichhardy.com

THE ANNEXExample Floor Plan

APOLLO HOUSEExample Floor Plan