Introduction
Within close proximity to the two main universities in Leicester, Crown Place Leicester is an exceptional Student investment. The Crown Place building is a converted Grade 2 listed former textile mill, which will undergo an extensive renovation process, to emerge as a leading property for the student population in the area.
The new build will include a swimming pool, gym, café/restaurant, games room and cinema room. The facilities being unique in Leicester and should prove attractive to students.
Starting from £57,500, the units are priced Below Market Value (BMV), and offer 50% non-status finance. Each unit will benefit from an assured minimum NET yield for the first 5 years, providing complete peace of mind for potential investors.
The individual units will form clusters of high-end study bedrooms, each with their own en suite bathroom and kitchen centred around shared living spaces.
Knight Frank recently published a report stating that Leicester is currently suffering a severe shortage of high quality purpose-built student accommodation. Student numbers had increased during the three years leading up to the 2010/2011 academic year placing the two universities in the area, De Montfort and Leicester Universities under pressure to accommodate their students. Last year De Montfort University was forced to locate privately rented properties or hotels for students after admitting more students than they could accomodate.
The 2005, 2006 and 2007 National Student Survey for overall student satisfaction saw Leicester ranked joint first amongst mainstream universities throughout England. In 2008 they came second on to Cambridge and regained joint first in 2009.
A leading independent management company will run the building providing investors with a fully “hands off” investment.
The project will prove appealing to the 27,000 students at De Montfort University as it is only a short walk from the campus. The University of Leicester boasts 23,000 students with Leicester’s total student population reaching an impressive 50,000.
Financials
The building has been independently valued, confirming the individual units are worth in excess of their current purchase price.
The units are projected to yield gross returns of 11.97%.
All units boast an assured minimum 6% NET yield for first 5 years.
The pods are purchased with a 999 year lease.
The rent is paid biannually.
51 Week tenancies
Purchase Process:
Day 1 - £2,000 to reserve
On exchange of contracts – 50% of purchase price less the £2,000 reservation fee payable
On Completion (Q3 2013) – Developer will provide 50% developer finance
Security
Crown Place is an existing period building scheduled to undergo an extensive refurbishment program.
The developer is very experienced in the construction field
Favourable payment plan, 50% of purchase price payable on completion. Developer finance available.
The reservation fee and the deposit paid prior to exchange are sent directly to the client account of your representative solicitor. Upon the exchange of sale, an Insurance Bond is activated prior to any monies being forwarded to the developer. Should the student hall construction fail to complete, the Insurance Bond permits a full refund of monies.
The majority of key university towns showed 100% occupancy rate for the last academic year with private halls mainly targeting affluent domestic, overseas and mature students.
Ever increasing student applications within the UK.
Building fully managed by independent management company with fixed management fees.
Tenants will sign 51 week rental agreement with management company.
The development has full planning permission.
Appointed UK solicitor to represent all investors