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Luxurious student accommodation in Middlesbrough city centre

Less than 5 minutes walk from a major university

Two year leaseback in place providing 9.5% net yields

Complete turnkey solution: no overheads to worry about

230 double en-suite rooms starting from £33,995 ($55,750 / €40,950)

Facilities include wifi, gym, entertainment room, bike storage & communal lounges

Developer & property manager with proven track record in the student sector

Completion in August 2014

EXECUTIVE Summary

The United Kingdom has the sixth largest economy in the world with a GDP of $2.5 trillion dollars.

Important industries include engineering, chemicals, electronics, motor vehicles, aircrafts and financial services.

The UK has a diverse economy, an independent currency, strong domestic markets, the ability to borrow cheaply and the capability to implement well thought out reforms.

Demand for rental accommodation is the highest it has ever been with 1.2 million more households renting in 2011 compared to 2006.

Real estate planning laws are strict and the rental markets in major cities are both strong and sustainable, providing investors with the ability to purchase cash flow positive properties.

The UK university sector has an annual income of more than £20 billion and employs approx 170,000 staff.

There are almost 2.5 million university students in the UK.

British universities have a strong reputation internationally due to their long history and continuous stream of world class research output. The University of Cambridge, for example, has produced 85 Nobel Laureates to date - more than any other university in the world.

Middlesbrough has one of the highest business start up rates in England and is an extremely popular student friendly city.

UK – Quick Economic factsThere are almost

2.5 MILLION University Studentsin the UK.

With a modern open economy and a number of world class universities, the UK is very well placed to take advantage of the increasingly global student marketplace.

There remains a perception that a British university degree is more prestigious than equivalent courses in many emerging economies. The UK is now the world’s second largest destination for international students and its global share has increased from 11% to 12% in the past 10 years as the USA´s has dropped from 28% to 20%.

The UK University system remains heavily oversubscribed with only 10 places available for every 14 applications and an 8% increase in student numbers in the past 5 years.

Additionally, the development of purpose built student accommodation has not kept pace with the growth in students with most private operators reporting 99% occupancy for 2011/2012. There is unquestionably a structural undersupply of purpose built student accommodation in the UK.

THE UK Student MarketInternational students arriving in the UK continues to grow with overseas students now accounting for a sixth of the total UK student population. Attracted by high quality English language degrees and a weak pound, the proportion of international students is expected to continue growing.

With competitive prices and strong yields, student property investments are secure long term investments. Whatever economic crises might come our way in the next few years, the following fact will not change: a high quality and well managed student residence in a popular university city will experience a high demand. In a boom and in a recession, there will always be students and they all want modern, comfortable and convenient accommodation.

In conclusion, universities in the UK are becoming increasingly commercial and are evolving courses to attract the best overseas talent. Investors in student accommodation are purchasing assets that are underpinned by solid long term global trends in student mobility.

UK University FeesThe UK university sector has undergone significant changes recently with the introduction of student fees in October 2012. Deep cuts in government education subsidies has resulted in average tuition fees for local British students increasing from just over £3000 per year to between £6000-£9000 per year (the maximum allowed). Most students pay these fees via student loans.

These special student loans are structured in a way that means graduates are not required to repay them until they start earning at least £21000 per year. Repayments are on a sliding scale, so that the more a student earns, the larger their monthly repayments.

There are no indications that these changes will result in a drop in overall university places as the market remains significantly oversubscribed. Importantly, overseas students attending UK universities will generally not be affected by these changes, as they have always paid tuition fees (which are competitive on a global scale).

A six-storey building located on a busy Middlesbrough high street, Rede House has been designed to offer a higher class of accommodation to local students while providing investors with one of the most competitively priced opportunities on the market.

The building was originally used as office space and is being extensively converted into 230 studio apartments (standard, premium and delux options available). All units are furnished to a high standard and offer residents a variety of communal facilities and amenities.

REDE House Students living at Rede House can take full advantage of the high-spec facilities available including; a fully-equipped gymnasium, entertainment room, free WiFi throughout the building, secure bike storage and communal lounge areas.

Within short walking distance of Teeside University (28,000 students), this location is extremely rentable.

STUDIOS 17 TO 28 SQM (183 – 300 SQFT)

BED

DESK AND CHAIR

WARDROBE & BEDSIDE TABLE

MODERN ENSUITE BATHROOM

SINK

MICROWAVE

FRIDGE FREEZER

OVEN WITH HOB & EXTRACTOR

KITCHEN STORAGE

BROADBAND

ENTERTAINMENT AND GAMES ROOM

GYMNASIUM

LAUNDRY ROOMS

CONCIERGE AND CCTV

SECURE BICYCLE STORAGE

230 studio apartments furnished to a high standard

FINANCIAL BreakdownBelow is an investment example for a standard 17 sqm (183 sq ft) studio apartment.

Standard Studio Apartment GBP USD EUR

Purchase price £33,995 $55,750 €40,950

Annual Rental Income £3,038 $5,299 €3,893

Net Yield 9.5% 9.5% 9.5%

5 Year Capital Growth 3% Conservative 5% Expected 7% Buoyant

Market Price 2013 £33,995 £33,995 £33,995

Market Price 2018 (estimated) £39,410 £43,387 £47,680

Accumulated Rental Income £15,190 £15,190 £15,190

Total Profit (capital growth + net income) £20,605 £24,582 £28,875

Total return on cash invested 61% 72% 85%

*USD & EUR values are approximate

REDE House is made up of 230 units spread across 6 storeys with prices ranging from an incredibly low £33,995 to £37,995.

Standard Studio: £33,995

Premium Studio: £35,995

Deluxe Studio: £37,995

One of England´s best kept secrets, Middlesbrough has a population of 138,400 and is a cultural and educational centre of the North East.

It´s cutting edge architecture and business friendly environment has enticed a host of companies to operate from the city. Middlesborough has recently been ranked second nationwide for the number of businesses created within its boundaries (Inward Investment Guide to England).

Entrepreneurs also see it as an ideal launch pad to start their firms, with Middlesbrough holding one of the highest business start-up rates in England.

Transport around Middlesbrough is seamless; the Middlesbrough Railway Station recently took the honour of International Station of the Year and carries 1.4m passengers annually around the country.

ABOUT Middlesbrough It has an eclectic range of bars and restaurants, four shopping centres and an iconic venue, The Empire, which plays host to a number of world-famous theatre shows and music acts. It is no wonder students consider Middlesbrough to be a haven, ensuring that purpose-built student accommodation in the town continues to produce strong rental returns.

As the rental sector remains on its booming trajectory, the local council announced plans to build 6,885 additional houses between 2012 and 2029 to unlock pent up supply and meet the demand from young professionals in the city.

Ranked second

nationwide for the number of businesses created within its boundaries

Gaining University status in 1992, Teesside University’s ascent into the top ranks has been rapid, as evidenced by its being the first modern university to scoop the prestigious “University of the Year” in the Times Higher Education Awards in 2009.

Students rate their university’s facilities very highly, with 89% saying they were happy with the university’s library and learning resources in the latest national student survey. Overseas students also rate facilities extremely highly, rating Teesside University’s library space as the best in the UK, according to the International Student Barometer in 2012.

The University is very savvy in terms of business, carving out strong connections with a number of businesses across the UK, which allows them to offer hundreds of internships and other placement opportunities to existing students and graduates. This success was recently noted by The Times, who have named the university as one of the six finalists in the Entrepreneurial University of the Year award.

TEESSIDE University

Student population of over

28,000

Rede House is perfectly located for local students, being just a 5 minute walk from both the train station and Teeside University.

THE MALL3 minute walk

CINEMA3 minute walk

TEESIDE UNIVERSITY5 minute walk

BARS & RESTAURANTS5 minute walk

MIDDLESBOROUGH TRAIN STATION10 minute walk

RIVERSIDE STADIUM15 minute walk

MIDDLESBROUGH

10mins

REDEHouse

5mins

5mins

3mins

3mins

15mins

Once your unit(s) has been selected with the help of your property

consultant, you need to complete a straightforward reservation agreement and return it along with a copy of your passport and a recent utility bill.

You are required to pay a £5000 reservation deposit.

Once your property consultant has confirmed they have received your

paperwork you will need to instruct a solicitor (lawyer). We will be happy to recommend a reputable and independent firm who has handled hundreds of student accommodation transactions

Your solicitor will advise you of the paperwork they will require from

you. Please return this promptly to reduce the risk of delays.

Your solicitor will inform you when they have the date for exchange

providing you with an adequate notice period. At the time of exchange you will also be required to sign and return your contracts.

Your first payment installment (50% less deposit) will be made

when you exchange contracts.

After you have exchanged contracts you will receive a

welcome letter from the developer which will detail the future service they will provide and include all contact details.

Your final payment (50%) will be due when construction completes.

Total closing costs, including all legal fees, will be approx

£680 / $1000 / €785.

1 5

6

7

89

23

4

STAGE 1Reservation

form and deposit of

£5000

STAGE 2Solicitor

instructed,legals andsales pack

sent out

STAGE 350% of

balance onexchange ofcontracts,

within 28 days

STAGE 4Remaining

balance dueon completion

of building

PURCHASE Process

Is this an offplan project?Rede House is an existing building which was formerly used as office space and will be extensively refurbished to reflect the standard of accommodation expected by today’s students. Completion for Rede House will be July 2014 (floors 1-4) and Dec 2014 (floors 5-6)

Am I buying as Freehold or Leasehold?250 years Leasehold

What is the address of the site?67-77 Corporation Road, Middlesbrough TS1 1LY

Is there a rental assurance?NET rental is assured at 9.5% for 2 years, from completion of the purchase

What is the projected annual return after year 2?Currently between 8% to 10% NET (conservative after running costs, management fee, service charges and utilities)

Is the sale handled by UK lawyers?Yes, the seller solicitors are Myerson’s (Cheshire) and the recommended solicitors for purchasers are TQ Property Lawyers (near Manchester). Both are very experienced at handling student accommodation transactions

Is there a management company already in place?Yes, the designated management and letting agent will be Fortis Students

Can I resell my unit?Yes, you can sell at any time after exchange of contract.

When is my rental income paid?This is paid quarterly in arrears direct into your bank account from completion agreement.

FREQUENTLY Asked Questions

Fortis Developments Ltd is one of the fastest growing development companies in the UK. The company was created to provide bespoke accommodation to meet the growing demands for this type of product.

Firmly established at the forefront of the industry, Fortis Developments Ltd is now one of the most experienced and extensive developers of student accommodation, luxury apartments and regeneration schemes in the UK.

FORTIS Developments Ltd They undertake luxury student accommodation and regeneration projects in prime locations at key university sites nationwide. Along with their careful choice of locations, the cornerstones of their success have been a combination of creativity and functionality.

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TESTIMONIALSI have been involved in 12 deals with Torcana in the last 3 years and they are experts in finding high quality, income producing properties. All of our experiences with this company have been superb.

Robert from New York.

From initial reservation to completion, the service received from Torcana was first class. The frequent updates received throughout the

process gave us great peace of mind and we hope to purchase additional UK properties from

them soon.Penny & Jean-Jacques from Luxembourg.

The people working for Torcana are knowledgeable, committed and very quick at problem solving. Purchasing outside your home country can be a very complicated business and Torcana are experts at simplifying this process in the UK student market.

Loreley from Mexico.

If you are excited by this opportunity and have enjoyed learning about the UK student accommodation market, please examine our availability list, select your favourite unit(s) and call us to discuss the next steps.

Please COPY & PASTE the following links into your browser• Availability List: torcana.com/rede-house-uk-student.htm• Floorplans: torcana.com/userpdf/files/Rede-House-Floorplans.pdf• Rede House Video Tour: vimeo.com/84026194• Why is UK student accommodation so popular? vimeo.com/68074770

Torcana Ltd

USA: +1 321 806 1195

Ireland: +353 1 4433 991

UK: +44 207 193 4024

Skype: torcanaltd

investments@torcana.com

www.torcana.com

This page contains general information relating to the purchase of property and its contents should not be construed as legal or other professional advice. This is not an investment offering. While all reasonable care has been taken in the compilation and publication of this information, Torcana Ltd make no representations or warranties, whether expressed or implied, as to its accuracy or completeness and the content is provided for information purposes only. All rents listed are based on information provided by third parties. Information is deemed reliable but not guaranteed. All pricing and availability and terms are subject to change without notice. Torcana Ltd shall not be liable, directly or indirectly, to the user or any other third party for any damage resulting from the use of the information contained or implied in this document. Buyers should always seek appropriate legal, tax & financial advice from suitably qualified professionals before taking, or refraining from taking, any action.

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