The Forge, Neville Road

Sunderland SR4 6PL

Overview

  • 440 bed spaces providing a mix of accommodation made up of 165 standard rooms, 269 ensuites and six studios.
  • The room mix is well-suited to the local market dynamics of the city.
  • Recently undergone extensive refurbishment, completed summer 2019.
  • Currently 92% let for 2019/20.
  • Total Gross Rent of £1,889,029 for 2019/20 academic year. Assuming 100% let rising to £2,014,787.
  • Offering affordable student rents, ranging from £78 to £139 per week.
  • Direct let and currently operated by U-Student Group https://www.u-student.com/locations/sunderland/.
  • Fully secured and gated scheme.
  • The Forge is the only official accommodation partner to the University of Sunderland.
  • There are 2,430 international students studying at the university accounting for 21% of the full-time student population.
  • University of Sunderland has a growing full-time student population of 11,480.
  • Offers are invited in excess of £16,600,000 (Sixteen Million Six Hundred Thousand Pounds) for the freehold interest. A purchase at this level represents a low capital value of £37,725 per bed.

Location

Sunderland is a maritime city in the North East of England, located 10 miles south east of Newcastle,12 miles north east of Durham and 30 miles north of Middlesbrough.

The city is located on the River Wear, which passes through the middle of the city.

The population of the City of Sunderland is 277,250 with 70% of the population living south of the River Wear in the west of the city.

Located to the west of the city centre, the property is easily accessible by either the new Northern Spire Bridge or the Queen Alexandra Bridge from the north over the River Wear.

Situation

The Forge is situated to the west of Sunderland city centre.

The property is a 20-minute walk from the University of Sunderland and is in close proximity to the tramline providing access to the University within 15 minutes. Newcastle is also accessible via the tram.

The Sir Tom Cowie University Campus is accessible via public transport within 25 minutes.

The property is in close proximity to shops, bars and eateries on nearby Pallion Road and St Lukes Terrace.

Description

A purpose-built student asset built in the mid 1990s and recently refurbished, comprising two main blocks: Jobling and Marr House.

A unique student village with onsite shop and social space.

The only official student accommodation partner with the University and benefits from a university shuttle bus connecting The Forge to other student residences and University campuses.

Jobling House refurbishment completed for the 2018/19 academic year, whilst the Marr House refurbishment was completed for the 2019/20 academic year.

440 beds: 253 in Jobling House and 187 in Marr House.

Rooms range from 10 sq. m. to 27 sq. m. for standard, premium and double occupancy rooms with studio room sizes c. 40 sq m.

The scheme offers a mix of accommodation:

  • Standard room: includes single bed, wash basin, wardrobe, bedside table, study desk and chair
  • Premium room: includes single bed, shower, wash basin sink and other standard bedroom furniture
  • Ensuite room: includes 3/4 double bed, full ensuite bathroom with shower sink and toilet and standard bedroom furniture
  • Studio room includes 3/4 double bed, study area, bathroom and private kitchen
  • Double occupancy room: includes standard double bed and ensuite facilities in a shared cluster flat.
On site bike storage and car parking is also provided with parking permits available at an additional fee to students.

Other amenities include:
  • On-site Shop
  • Adaptable Social Space
  • 24/7 Manned Reception
  • Laundry
  • Free to use Cash Machine
  • Secure-gated Entry
  • Cinema Room
  • University Shuttle Bus
  • Landscaped Grounds

Tenure

Freehold.

Tenancy

Rental Income 2019/20

406 beds out of 440 are currently let for 2019/20 academic year (92%)

A schedule of Accommodation and Tenancies can be viewed in the link below.

Operator

Upon a sale, the buyer will need to introduce their own operating platform. We will be able to assist with this, if required.

U-Student Group currently operates the scheme and is a leading provider of high-quality accommodation. Formed in 2003, U-Student has a close relationship with The University of Sunderland.

U-Student as the existing operator, will provide a smooth transition for handing over the operations.


Covenant Information

University Profile

Sunderland has one Higher Education Institution: The University of Sunderland.

The University is a 1992 institution home to a full-time student population of 11,480.

Awarded Teaching Excellence Framework Silver.

The University has a 2018 Masterplan, which sets out the vision for the University's future.

The University occupies two campuses: City Campus and St Peter's Campus. The City Campus is located on the western edge of the city centre and the St Peter's Campus on the northern bank of the River Wear.

The University has opened a new School of Medicine with the medical curriculum offered in partnership with Keele University School of Medicine, which is based at the City Campus and includes hospital placements across the North East.

Further information regarding the University of Sunderland can be found in the link below.


VAT

The sale is not subject to VAT.

Data Room

Available on request.

Inspection

By appointment only

EPC

Jobling House: D77
Marr House: C74

Services

Mains gas, electricity, water and drainage are connected to the premises. 100Mbps Wi-Fi Internet is provided. The property benefits from secure fob entry.

Method of Sale

Available by means of private treaty although we reserve the right to conclude via means of informal tender.

Proposal

Offers are invited in excess of £16,600,000 (Sixteen Million Six Hundred Thousand Pounds) for the freehold interest, subject to contract and exclusive of VAT. A purchase at this level reflects only £37,725 per bed.

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NET INITIAL YIELD:
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PRICE:
£16,600,000
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