St Marks Apartments, 20 St Mark Street

Lincoln, Lincolnshire LN5 7BA

Overview

  • Prime Student Accommodation Investment Opportunity
  • Best in class purpose built student accommodation in Lincoln
  • 100% letting history - 38% of which are international students
  • Proven rental growth outperforming national average
  • Prime location - 2 minute walk from University of Lincoln and a 3 minute walk from train station
  • No 22 in rankings - The University of Lincoln has moved up rankings by 25 places, to No. 22 by The Guardian
  • 116 beds, made up of a mixture of large studios, premium studios, twodios and cluster apartments
  • £839,511 gross income for 2018/2019
  • £554,238 net operating income for 2018/2019
  • £2,370 management costs per bed
  • Built in 2013 and refurbished to a high spec in 2016
  • Operated by Collegiate, a prestige operator of luxury student accommodation
Proposals are sought for the freehold interest with offers in excess of £8,975,000 (Eight Million, Nine Hundred and Seventy-Five Thousand Pounds) reflecting a net initial yield of 6.00% reflecting purchaser's costs at 2.80%, allowing for MDR. This reflects £77,370 per bed.

Location

Lincoln is a dynamic and contemporary cathedral city and the county town of Lincolnshire in the East Midlands, now acting as the main economic driver for the Greater Lincolnshire Area.

  • The city of Lincoln is situated approximately 48 miles south-east of Sheffield, and 89 miles north-east of Birmingham. There is a direct line from Lincoln to King's Cross with a journey time of 1 hour 55 minutes.
  • The city benefits from a new £30 million transport hub opened earlier in 2018, providing a state of the art bus station and a 1,000 space multi-storey city centre car park. The city also benefits from direct rail services to and from London.
  • Lincoln is home to two universities, The University of Lincoln and Bishop Grotesseste University.

Situation

  • 1 minute walk to Lincoln High Street
  • 2 minute walk to the University of Lincoln
  • 3 minute walk to Lincoln Central Rail Station
Bishop Grosseteste University is reachable by public transport (23-minute bus journey) with buses running every 15 minutes, a short walk from the Property.

At the city campus, there are plans to build a new state of the art medical training facility located opposite the Isaac Newton Building and adjacent to the existing science building, set to train our future doctors and GPs.

Two brand new, high specification academic buildings - The Sarah Swift Building and the Cygnet Wharf - recently opened at the start of the 2017/2018 academic year and are in the immediate vicinity. Both have been nominated for prestigious Royal Institution of Chartered Surveyors (RICS) Awards 2018, East Midlands in the regeneration and commercial categories.

Further information on Lincoln's universities can be found in the Marketing Brochure.

Description

Property Highlights

  • Built in 2013
  • Extensively refurbished in 2016 to a high specification (£1.5m)
  • Private on-site fitness suite
  • Reception area
  • High speed broadband and Wi-Fi
  • Laundry room
  • Lounge study area
  • Bike rack

Accommodation Specification

  • Interior design lead scheme
  • Communal kitchen and dining area within each cluster flat
  • Flat screen TV
  • Fridge/freezer
  • Bedrooms fitted with modern furniture including desks and wardrobes
  • Communal breakout space on every floor

Management

  • The asset is currently managed by Collegiate
  • Collegiate are a well known operator for their luxurious and sleek living spaces and unparalleled attention to detail. Their student accommodation delivers sophisticated and modern designs and provide onsite concierge services and high quality security systems
  • Collegiate operate in 20 cities and on 37 PBSA schemes throughout the UK
  • Upon sale, there is the opportunity for a buyer to put in their own operating platform

Rental Growth

National average rental growth between 2017/2018 academic year and 2018/2019 stood at 2.7% for PBSA in the UK. The rental growth at St. Marks between 2017 and 2018 was 7.4% and between 2016 and 2017 was 9.4%, massively out performing the national average. Proposed rents for academic year 2019/2020 reflect a 3% uplift from the current academic year.

For further information on the property's income and an overview of the UK student market, please see the Marketing Brochure.


Tenure

Freehold. There is an electricity sub-station lease commencing 18th September 2013 for a term of 21 years.

VAT

Not elected for VAT.

PLANNING

Planning permission for application No.2012/0197/F was granted on 10th April 2013.

Inspection

The Property may be viewed by appointment only.

Proposal

Offers are invited in excess of £8,975,000 (Eight Million, Nine Hundred and Seventy-Five Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level reflects a Net Initial Yield of 6.00% assuming purchaser's costs of 2.80%.

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NET INITIAL YIELD:
6%
PRICE:
£8,975,000
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