FOR SALEPrime Student Residential Development Opportunity
EDINBURGH
HAYMARKET TRAM STOP
THE HAYMARKET (CRM)
FOUNTAIN PARK
IQ FOUNTAIN BRIDGE
CANAL POINT
UNIVERSITY OF EDINBURGH
PRINCES STREET
EDINBURGH CASTLE
FOUNTAIN BRIDGE
IQ EDINBURGH GROVE
ARRAN HOUSE
ORWELL TERRACE(NAPIER UNIVERSITY)
HAYMARKETTRAIN STATION
DEVELOPMENT
MORRISON CIRCUS
EXECUTIVE SUMMARY
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 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.
STUDENT RESIDENTIAL SCHEMES
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Prime Student Residential Development Opportunity
EdinburghCastle
ScottMonument
University ofEdinburgh
Edinburgh Napier University
Heart Of Midlothian FC
St JamesCentre
WaverleyStation
Haymarket Station
Queen Street
Gardens
The Meadows
EDINBURGH
HAYMARKET YD
S
TRAM LINE
TRAM LINE
Holyrood Park
A7 S
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BR
IDG
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A7 C
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A8 HAYMARKET TERRACESHANDW
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PRINCES STREET A8
WATERLOO PLACE
LEIT
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A70
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DMELVILLE DRIVE
A70
DA
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A71 GORGIE ROAD
MORRISON STREET
LEV
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MELV
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TMARKET STREET
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TR
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GEORGE STREET
LAURISTON PLACE
QUEEN STREET
QUEEN STREET
JOH
NST
ON TERRACE
HIGH STREET
THE ROYAL MILE
DUNDEE STREET
FOUNTAINBRIDGE
A90 QUEENSFERRY ROAD
A90 WA
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24 MINS
29 MINS
15 MINS
DA
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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.
SITE PLAN
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.
GLASGOW
PRESTWICK
Edinburgh
DUNDEE
ABERDEEN
INVERNESS
STORNOWAY
BENBECULA
BARRA
CARLISLE
M8
M73M8
M9
42
43
44
7
8
109
11
12
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14
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3
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A828
A6
A689
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A1107
A698
A709
A710
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A713
A712
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A886
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A760
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A99A9
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A68
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A77
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A71 A71
A76
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A95
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A92
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A90
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A73
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A86
A87
A87
A82
(A850) A87
A887
A830
A9
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(A856)
A87
A82
A74
A7
DingwallBuckie Banff
Turriff
Macduff
Ellon
Thurso
Wick
Banchory
Brechin
Blairgowrie
Pitlochry
Dunbar
Eyemouth
Alnwick
Amble
Hawick
HexhamBramptonCastle
Douglas
Langholm
NewtonStewart
Biggar
MoffatMaybole
Mauchline
Cumnock
New Cumnock
Peebles
Largs
Millport Kilbirnie
Rothesay
Oban
Lochmaben Lockerbie
Dalbeattie
Kirkcudbright
Jedburgh
Girvan
Annan
Kelso
Stonehaven
Keith
Inverurie
Lossiemouth
ForresNairn
Tain
Invergordon
Wigton
Alness
Campbeltown
Inverness
Arbroath
Forfar
Bo'ness
Grangemouth
CowdenbeathKirkcaldy
Glenrothes
St Andrews
Dunoon
PortGlasgow
Gourock
Helensburgh
Alloa
Musselburgh
Dalkeith
Carluke
Motherwell
Larkhall
Ayr
Prestwick
Irvine
Troon
Kilwinning
Ardrossan
Johnstone
Kirkintilloch
Dumfries
Airdrie
Cumbernauld
Falkirk
BonnyriggLivingston
Stranraer
Berwick-upon-tweed
Perth
Peterhead
Fraserburgh
Elgin
Montrose
Fort William
Dunfermline
Dundee
Greenock
Carlisle
Kilmarnock
East Kilbride
Hamilton
Clydebank
Stirling
Aberdeen
EDINBURGH
GLASGOW
M74
M80
M90
M90
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.
Haymarket Yards is a few minutes from Edinburgh’s West End and conveniently situated between the University of Edinburgh and Edinburgh Napier University.
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Prime Student Residential Development Opportunity
DESCRIPTION
Haymarket Yards comprises 104 studio rooms built over part 4 and part 7 floors.
All studios will benefit from the buildings shared communal facilities:
• Reception desk and seating area at main entrance withpost 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 & 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 & 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.
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Prime Student Residential Development Opportunity
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.
University of Edinburgh
Edinburgh Napier University
Heriot Watt University
Queen Margaret University
FT student population 24,975 10,460 8,695 3,525
CAGR 2008-2013 3% 0% 3% 1%
Number of international students 6,495 985 2,050 225
% of international students 25% 9% 24% 6%
Change in UCAS applications 2011-2014
26% 4% 15% -4%
UCAS app : accepts ratio 10.2 7.7 8.3 8.1
Times Rank 2016 22 93 38 96=
THE UNIVERSITY OF EDINBURGH
The University of Edinburgh is the sixth oldest in the English speaking world and is ranked 17th in the world by the QS World University Rankings. It is rated 4th in the UK for research power by the Research Excellence Framework and is a member of the Russell Group of elite UK universities.
The student population has grown at a rate above the UK average in total as well as across all levels of study. The total number of students amounted to 24,945 in 2013/14. Over a 5-year time span the number of students from outside the region increases by 27%, which is positive in terms of demand for purpose-built student accommodation.
Applications to the University of Edinburgh are significantly higher than the national average, at 9.5 per place in 2014 reflecting the Universities Global standing.
The university consistently performs well in the university rankings tables and is currently ranked 22 by The Times ranking table 2016.
EDINBURGH NAPIER UNIVERSITY
Edinburgh Napier University was founded as a technical college in 1964 and gained university status in 1992. The University is named after John Napier, the inventor of logarithms and the decimal point. Napier University was awarded the Queen’s Anniversary Prize for Higher and Further Education in 2009.
The university currently recruits 78% of its students from the UK, slightly above the national average, but a large number of students are from the EU (13%), a figure over double the national average, again providing good demand for purpose built accommodation.
The university received 18% more applications in 2014 compared to 2008, reflecting the university’s increase in popularity, and is currently ranked 97th in The Times ranking table 2016.
HERIOT-WATT UNIVERSITY
Heriot-Watt University was established as the School of Arts Edinburgh in the 1820s and was awarded university status in 1966. It is currently divided into 6 schools and operates out of a parkland campus in the South West of Edinburgh.
The university has a significant proportion of postgraduate students (24%) which is higher than the national average (18%). Student number growth in recent years has been extremely healthy.
The University received 71% more applications in 2014 compared to 2008, reflecting the institutions growing popularity among students and the university is currently ranked 41st in The Time ranking table.
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Prime Student Residential Development Opportunity
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.
Contractor - TBC
Professional Team
Project ManagerMACE Group64a Queen Street, Edinburgh EH24NA
Planning ConsultantScott Hobbs Planning24 Stafford St, Edinburgh EH3 7BD
ArchitectMcLean Architects29 Eagle Street, Glasgow G4 9XA
EngineerCurtins1a Belford Road, Edinburgh EH4 3BL
MANAGEMENT
The purchaser will have the flexibility to appoint their own managers.
TAX
We understand the site is elected for VAT purposes.
PLANNING
A detailed planning application has been submitted and it is anticipated a planning consent will be granted by end of 2016 /early 2017.
TENURE
Feuhold.
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.
INVESTMENT CONSIDERATIONS
n Edinburgh is home to 47,000 students and four Universities;University of Edinburgh, Napier, Herriot Watt and Queen Margaret University.
n Prime location adjacent to the Haymarket rail station and tramsystem.
n 104 high quality studios with ancillary accommodationincluding cinema, gym, common room, laundry, bike storage,meeting and study spaces.
n Available for the 2018 academic year.
n Attractive rental packages offering rooms between £185 and £195 per week over 48 week contracts. A gross income of £926,425 per annum.
n Total net operating income of £708,025 per annum after allowing for operating costs of £2100 per annum per bed.
n Proposals are sought from interested parties to participate inthis prime student residential development opportunity on one of the following bases:
- The preferred structure would be by way of a full funding orforward commitment based on practical completion for theacademic year 2018/2019 and a potential gross developmentvalue in the order £11,800,000. 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.
Scape Homes Aberdeen development
Edinburgh is home to 47,000 students and four Universities - University of Edinburgh, Napier, Herriot Watt and Queen Margaret University.
Prime Student Residential Development Opportunity
10 11
FURTHER INFORMATION
Mike MitchellCushman & Wakefield1 Marsden StreetManchester, M2 1HWTel: 0161 455 [email protected]
Simon LoweCushman & Wakefield1 Marsden StreetManchester, M2 1HWTel: 0161 455 3745Email: [email protected]
Neil KirkCushman & WakefieldOne Edinburgh Quay, 133 Fountainbridge, Edinburgh, EH3 9QGTel: 0131 222 4554Email [email protected]
MISREPRESENTATION ACT:Cushman & Wakefield Copyright 2016. Cushman & Wakefield gives notice that: These particulars are set out as a general outline only for the guidance of intending purchasers or lessees, and do not constitute any part of an offer or contract. Details are given without any responsibility, and any intending purchasers, lessees or third parties should not rely on them as statements or representations of fact, but must satisfy themselves by inspection or otherwise as to the correctness of each of them. No person in the employment of Cushman & Wakefield as any authority to make any representation or warranty whatever in relation to this property. Purchase prices, rents or other prices quoted are correct at the date of publication and, unless otherwise stated, exclusive of VAT. Intending purchasers and lessees must satisfy themselves independently as to the incidence of VAT in respect of any transaction relating to this property.
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EDINBURGH