Haymarket Yards

Edinburgh EH12

Overview

  • Edinburgh is home to 47,000 students and four universities: University of Edinburgh, Napier, Herriot Watt and Queen Margaret University
  • The student:bed ratio in Edinburgh is 3.3 (2.1:1 UK average) meaning that there is significant scope for development in the city
  • Prime location adjacent to the Haymarket rail station and tram system
  • 104 high quality studios with ancillary accommodation including cinema, gym, common room, laundry, bike storage, meeting and study space
  • Attractive rental packages offering rooms between £185 and £195 per week over 48 week contracts
  • Total net operating income after costs of £708,025 per annum
  • Proposals are sought from interested parties to participate in this prime student residential development opportunity with a target GDV of £11,800,000 (Eleven Million, Eight Hundred Thousand Pounds) reflecting a yield of 6% subject to contract. This could be a forward funding, JV or land sale
Haymarket Yards will provide 104 high quality studios with ancillary accommodation including cinema, gym, common room, laundry, bike storage, meeting and study space.

Location

Edinburgh is a capital city of global recognition. It is the 7th largest city in the UK, with population of 492,680 (2014) boasting the strongest economy of any city in the UK outside of London and is one of the fastest growing cities in Europe. It is also one of the largest student markets outside of London, with four established universities and approximately 47,000 full-time students excluding Edinburgh College which attracts a further 25,000 students.

There are 23 major festivals held throughout the year in Edinburgh with c.5 million attendees. The summer festivals attract up to 4 million visitors annually, so summer occupancy is notably high across the city with rents often at a premium.

Demand for bedrooms is strengthened by the city's strong language school market operating primarily during July and August.

Situated on the east of Scotland, Edinburgh sits on the main East Coast railway line, with direct connections to London and access to the wider UK road and rail network. Edinburgh International Airport is 25 minutes from central Edinburgh, offering direct flights to destinations including London, Manchester, New York, Paris, Madrid, Berlin, Dublin, Rome, Amsterdam and Zurich.

Edinburgh is a capital city of global recognition, boasting the strongest economy of any city in the UK outside of London and is one of the fastest growing cities in Europe.

Situation

Haymarket Yards is a few minutes from Edinburgh's West End and conveniently situated between the University of Edinburgh and Edinburgh Napier University. The Haymarket provides some of the capital's best attractions, with a wealth of popular bars, restaurants and quirky shopping streets nearby.

Haymarket railway station is the focal point of this busy transport hub providing busy commuter services to Glasgow and Fife, as well as long-distance services to England, Inverness and Aberdeen.

Edinburgh Trams' Haymarket stop is located adjacent to the development and provides connections to the west of Edinburgh terminating at Edinburgh Airport and east to the City Centre.

There are local bus connections to and from the Interchange stop on nearby Haymarket Terrace.

A major mixed use scheme has commenced on The Haymarket (tHe). The development is one of Edinburgh's biggest commercial projects of the last 10 years and includes approximately 404,000 sq ft of office, retail and leisure, 360 hotel beds, 320 car parking spaces and significant improvements to the public realm. This will further underpin the location as a major destination for residents, employers and their workforce.

Description

Haymarket Yards comprises 104 studio rooms built over part 4 and part 7 floors.

All studios will benefit from the building's shared communal facilities:

  • Reception desk and seating area at main entrance with post boxes and intercom to all rooms
  • 8 person lift to all floors sufficient to accommodate wheelchair access
  • Managers office for day to day running of the building
  • Separate covered bike storage area with easy access to Haymarket Yards street
  • Shared common room/lounge with contemporary seating and leisure facilities e.g. pool table and large wall-hung flat screen
  • Gym room with equipment
  • Cinema room with state of the art projection and sound system
  • Laundry room with separate washing machines and dryers
  • External landscaped garden areas with seating
  • All communal space to be of a contemporary design
  • Ground floor WC
  • Refuse area

INTERNAL SPECIFICATION

All studios and DDA units to comprise the following specification:
  • Three quarter bed with quality sprung mattress
  • Under bed storage
  • In built book cases above the bed
  • Fully fitted wardrobes with chrome hanging rail
  • 1 no. full height wall hung mirror
  • Flooring to be high quality vinyl
  • Ergonomically designed study areas with ample sockets
  • Blackout blinds
  • Aluminium part opening double glazed windows
  • High quality integrated down lights with LED low energy bulbs
  • Wall-hung heater centrally controlled with boost button supported by highly efficient Combined Heat and Power Unit (CHP) reducing operating costs
  • Telephone/intercom entry system for guests/visitors to contact studio
  • Stylish contemporary colour scheme
  • Glass Reinforced Plastics (GRP) en-suite bathroom pods
  • Contemporary WC with soft close toilet seat and push button flush
  • Contemporary wall hung basin with chrome tap and chrome waste
  • Vanity mirror and granite storage shelf, with towel rail and soft focus lighting
  • Full Wi-Fi throughout
  • High quality kitchen cabinets with contemporary chrome handles
  • Integrated 4 ring ceramic hob
  • Integrated microwave/grill/oven
  • Stainless steel integrated sink with single tap
  • Integrated fridge/freezer
  • Highly durable laminate work top
  • Laminate splash back in complimentary colours
  • Breakfast bar area with seating
  • Two seater sofa

Tenure

Feuhold.

EDINBURGH STUDENT ACCOMMODATION MARKET

There are four universities in Edinburgh, with the University of Edinburgh being by far the largest in the city with nearly 25,000 students. Edinburgh Napier and Heriot Watt are of a similar size, whilst Queen Margaret is relatively small.

For more information, please consult the marketing brochure.

SUPPLY

The supply of student bed spaces in Edinburgh is 11,587. The vast majority of bed spaces in the city are provided by universities, which means that rents have remained relatively restrained in Edinburgh in recent years, with the City Council reluctant to approve planning applications for purpose built bed spaces.

Within Haymarket, on West Park Place, CRM are offering studios of comparable size and specification at rents between £175 and £190 per week over 44 and 51 weeks. A short distance away at Fountainbridge, iQ are offering large studios at £185 per week over 50 weeks. The Student Housing Company are letting classic and premium studios in their Arran House scheme on Western Approach at rents of £199 and £219 per week over 43 weeks.

Future Development

The student:bed ratio in Edinburgh is 3.3, meaning that there is significant scope for future development in the city. However, due to the historic nature of Edinburgh, securing a site and planning permission is constrained. Consequently the private sector has a relatively small presence, with only UNITE, Mansion and IQ having a significant number of beds.

DEVELOPMENT TEAM

Developer - Scape Homes

Scape Homes has successfully completed several high quality student and first class residential accommodation schemes. Typically these were taken through planning application and the entire development process from main contractor selection through the build process to timely practical completion and snagging.

Further information can be found in the marketing brochure.

VAT

We understand the site is elected for VAT purposes.

MANAGEMENT

The purchaser will have the flexibility to appoint their own managers.

PLANNING

A detailed planning application has been submitted and it is anticipated a planning consent will be granted by end of 2016/early 2017.

INVESTMENT CONSIDERATIONS

  • Edinburgh is home to 47,000 students and four Universities: University of Edinburgh, Napier, Herriot Watt and Queen Margaret University
  • Prime location adjacent to the Haymarket rail station and tram system
  • 104 high quality studios with ancillary accommodation including cinema, gym, common room, laundry, bike storage, meeting and study spaces
  • Available for the 2018 academic year.
  • Attractive rental packages offering rooms between £185 and £195 per week over 48 week contracts. A gross income of £926,425 per annum
  • Total net operating income of £708,025 per annum after allowing for operating costs of £2,100 per annum per bed

Proposal

Proposals are sought from interested parties to participate in this prime student residential development opportunity on one of the following bases.

  • The preferred structure would be by way of a full funding or forward commitment based on practical completion for the academic year 2018/2019 and a potential gross development value in the order £11,800,000 (Eleven Million, Eight Hundred Thousand Pounds). On the anticipated net income of £708,025 per annum, this reflects an initial yield of 6%. The transaction may be structured to provide Stamp Duty Land Tax (SDLT) savings
  • A Joint Venture on a basis to be agreed
  • A sale of the site with or without a profit share
  • Acquisition of Scape Homes HM Ltd, an SPV company which holds the property

Download Brochure



Google Maps

NET INITIAL YIELD:
6%
PRICE:
£11,800,000
REGISTER INTEREST
OR CONTACT US

Please select a contact *

 
 
 

(* Required Field)