The Cube, Ealing

London W5 4NG

Overview

  •  Opportunity to acquire a prime student accommodation investment in Ealing, London
  •  The scheme comprises 124 bed spaces, arranged over four floors. The rooms are a mix of self-contained studio bedrooms (32) and twin bedrooms (46)
  •  The property is operated by Homes For Students, who are involved with schemes across the United Kingdom
  •  Freehold Interest
  •  Net Operating Income of £1,121,183
  •  Accommodation is a 15-minute walk to the University of West London and is served by South Ealing Tube Station which is on the Piccadilly Line
  •  The scheme has been designed to a high specification and will be ready for occupation in August 2017
  •  We are seeking offers in excess of £21,250,000 (Twenty One Million, Two Hundred and Fifty Thousand Pounds) which reflects a net initial yield of 4.95%, after purchaser's costs. Subject to contract and exclusive of VAT

Location

Ealing, to the west of London, is the capital's third largest borough. Ealing has unique characteristics akin to suburban developments and inner-city projects. The vast majority of this major metropolitan region falls within the W5 postcode.

Approximately 300,000 people reside in the area which has superb accessibility to London City and amenities such as Westfield Shopping Centre and several sporting venues. Heathrow Airport, the second busiest in the world, is a 25-minute journey from The Cube by tube from South Ealing Station.

Bus services run through Ealing frequently and a 24/7 service is available on routes 65, 297 and E1.

Crossrail

The new Crossrail train network across London and the South East will benefit residents of Ealing along the Elizabeth Line. The 200m long trains are due to operate from Ealing Broadway Station from December 2018.

By December 2019, all services between Reading to the east and Shenfield/Abbey Wood to the west are expected to be in operation. The introduction will reduce travel time for commuters significantly.

Travel time from Ealing Broadway Station to Bond Street Station will be halved from 22 minutes to 11 minutes for commuters.

Situation

The site is just south of Ealing Broadway and High Street and is a 15-minute walk to the University of West London.

Tube - Served by South Ealing Tube Station which is on the Piccadilly Line.
Bus- Ealing is served by a 24/7 bus services on routes 65, 297 and E1.

Universities
15-minute walk from University of West London. The Met Film School at Ealing Studios is situated opposite UWL, Imperial College London, Hammersmith Campus is a 20-minute cycle time from the Cube.

The property is newly built and early lettings indicate that it will be fully occupied by August 2017.

Description

Facilities

Included in the weekly rent, students are provided with the following facilities during their stay at The Cube
  • En-suite rooms which feature designer fittings
  • High quality and durable furniture
  • Fully integrated kitchen appliances
  • Floor-to-ceiling blackout curtains
  • High-speed broadband
  • Wall-hung, flat screen, Smart TVs in each room
  • Communal area with pool table, sofas and TVs
  • Laundry service on-site
  • Secure swipe card accessibility
  • 24/7 on-site security
Further information can be found in the marketing brochure.


Tenure

Freehold.

Tenancy

We expect the property to reach full occupancy for the 2017/18 academic year producing a gross income of £1,286,883 and a net operating income of £1,121,183 after allowance for operating costs of £2,124 per bedroom.

LONDON - STUDENT MARKET COMMENTARY

With 43 Higher Education institutions, London is the national centre for education in the UK, attracting large numbers of students nationally, as well as from overseas. In 2014/15, the London student population was around 366,385 (total students), making it by far the largest student destination in the UK.

Cushman & Wakefield's Student Residential Tracker calculates a total of 78,611 purpose-built bed spaces in the City in 2016/17, an 8% increase on the previous academic year. However, the London market still suffers from structural levels of undersupply, with the London Plan suggesting a need for between 20,000 - 31,000 additional bed spaces by 2025

Development has been impacted significantly by high land costs, competition from other uses, and the impacts of Community Infrastructure Levy. Long term demand is still rising faster than supply, and students increasingly wish to live in purpose-built developments. This change in student expectations, has created a gap in the market which is being filled by innovative developments such as The Cube.


INVESTMENT SUMMARY

  • The scheme comprises 124 bed spaces, arranged over four floors. The rooms are a mix of self-contained studio bedrooms (32) and twin bedrooms (46)
  • Student to bed ratio of 5:1 represents a very healthy demand pool
  • Operated by Homes for Students

Proposal

Offers are invited in excess of £21,250,000 (Twenty One Million, Two Hundred and Fifty Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level reflects a Net Initial Yield of 4.95%, allowing for purchaser's cost of 6.13%.

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NET INITIAL YIELD:
4.95%
PRICE:
£21,250,000
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