GREATER LONDON REVERSIONARY STUDENT INVESTMENT OPPORTUNITY MAKSONS HOUSE 52 STATION ROAD, WEST DRAYTON UB7 7BT

GREATER LONDON REVERSIONARY STUDENT INVESTMENT OPPORTUNITY MAKSONS HOUSE 52 STATION ROAD, WEST DRAYTON UB7 7BT

(Rightmove West Drayton is the most in-demand area for home buyers in the capital 2018) INVESTMENT SUMMARY Fully-refurbished student accommodation scheme of 29 luxury studio beds in the heart of West Drayton; 300 metres from West Drayton railway station, which will benefit greatly from Crossrail (opening 2019), reducing journey times into Central London locations by 45%; 8 minutes journey time to Brunel University London (Ranked 59th in The Times University Guide 2019); 3 miles north of London Heathrow, Europe s busiest airport, handling over 70 million passengers each year and employing 76,600 people directly; 100% occupied for the 2018/19 term with 97% of students attending Brunel University London; Current gross income of 426,289 per annum, net income of 338,907 per annum, based upon actual 2018/19 operating costs of 2,827 per bed; The area is one of the fastest growth areas in the UK with average house prices rising by 62% over the last 5 years; Freehold with exception of a small parking area held long leasehold; All rooms are ensuite and fitted out to a high specification to include ¾ size double beds, fully-fitted kitchenette with fridge/ freezer and microwave oven/grill, Oak hardwood floors / doors and wall-mounted flat-screen TVs; There is scope to significantly grow the income through both asset management initiatives and increasing the number of rooms through further development (potential for an additional 7 studios equating to a gross rental increase of c. 100,000 per annum); Offers are invited in excess of 6,275,000, reflecting a net initial yield of 5.25% and a net reversionary yield of 5.50%, assuming usual purchaser s costs of 2.80%.

LOCATION West Drayton Maksons House is located in the heart of West Drayton, a popular suburban town on the edge of West London, within the London Borough of Hillingdon. It is an area that has already seen the benefits of its ongoing regeneration and is located just 16 miles (25.7 km) west of prime Central London and 3 miles (4.8 km) north of London Heathrow, Europe s busiest airport, handling over 70 million passengers each year. West Drayton benefits from excellent road communications with Junction 4 of the M4 motorway located within 1.5 miles (2.4 km) south accessed via the A408 Stockley Road. This in turn provides direct access to the M25 motorway (Junction 15) and the national motorway network. WEST DRAYTON SUBJECT PROPERTY STATION ROAD Bellclose Road WEST DRAYTON The area is served by West Drayton railway station, which is currently undergoing extensive redevelopment ahead of the arrival of Crossrail (Elizabeth Line) in 2019, delivering regular services to into Central London with a typical journey time to London Paddington of 20 minutes and westerly into Reading in 30 minutes. 4 Ch urch Road Porters Way New analysis by Rightmove (February 2018) found West Drayton is the most indemand area for home buyers in the capital with properties taking an average of just 37 days to sell. SITUATION The property is prominently situated in the heart of West Drayton on Station Road, at its junction with Swan Road. It has a large frontage onto Station Road of approximately 60 metres and the building itself is considered a local landmark within the area having been sympathetically converted from an old Royal Mail sorting office and retaining its attractive character appearance. Station Road, leading up into the High Street, has an excellent convenience retail offer including Boots, Lloyds Bank, Post Office, Domino s Pizza and Tesco Express as well as a range of local eateries and bars, ideally suited for the students of Maksons House. The areas to the south and west of the property are predominantly residential, whilst the picturesque Grand Union Canal runs directly through West Drayton intersecting with the High Street to the north. There are a number of parks and green spaces in close proximity including Yiewsley Recreation Ground, Huntsmoor Park and Stockley Park Golf Club. Maksons House benefits from excellent connectivity being 300 metres south of West Drayton railway station and with a number of local bus routes and cycle paths serving the surrounding area. The nearest large supermarket is Morrisons approximately 5 minutes walk north. Brunel University London is situated within an 8-minute drive-time to the north and 97% of 2018/19 residents study at this university. However, Maksons House is ideally situated for several Universities with c.190,000 students studying within a 45-minute door-to-door catchment. 25 mins by Crossrail to Tottenham Court Road (University of London)

CROSSRAIL The area has benefited from significant infrastructure investment over the past 5 years, most notably due to the implementation of Crossrail, which is scheduled to be fully operational from autumn 2019. Crossrail, which will be known as the Elizabeth Line, is the most significant infrastructure improvement to London since the opening of the London Underground over 150 years ago. Services are to commence from Reading, via Maidenhead, Heathrow and West Drayton, through to Central London providing a new high-speed rail link to vastly improve London s connectivity east to west. Maksons House is located within 300 metres of the new Crossrail station where journey times to Bond Street will be reduced by 43% to 22 minutes and to the City of London by 45%, to 28 minutes. This will allow students to travel direct to London Universities at Tottenham Court Road (UCL, SOAS, Birkbeck and University of London Union) and Whitechapel (Queen Mary University, Barts and The London School of Medicine and Dentistry) whilst putting all of the amenities of London s West End on their doorstep. This will significantly broaden the appeal of West Drayton to students looking for comparatively affordable accommodation whilst studying across London. All journey times stated incorporate the faster Crossrail service commencing in 2019. Stratford Forest Gate Ilford Goodmayes Romford Harold Wood Shenfield Taplow Slough Iver Hayes & Harlington Hanwell Ealing Broadway Bond Street Farringdon Whitechapel Maryland Manor Park Seven Kings Chadwell Heath Gidea Park Brentwood Maidenhead Burnham Langley West Drayton Southall Heathrow Airport West Ealing Acton Main Line Paddington Tottenham Court Road Liverpool Street Canary Wharf Custom House Woolwich Abbey Wood STUDENTS WITHIN A 45 MINUTE CATCHMENT OF MAKSONS HOUSE INSTITUTION STUDENTS JOURNEY TIME MINUTES* Brunel University 12,940 8 Royal Holloway 7,835 21 University of West London 10,390 26 Royal Academy of Music 820 29 The Royal Central School of Speech and Drama 1,100 32 University College London 37,905 34 London School of Economics and Political Science 11,210 35 London School of Hygiene and Tropical Medicine 1,345 36 Barts and The London School of Medicine and Dentistry 2,300 37 Imperial College 15,665 37 The University of Westminster 19,650 37 The School of Oriental and African Studies 6,360 37 Birkbeck College 12,915 37 London Business School 2,060 38 King's College London 30,565 39 Queen Mary University of London 18,890 45 TOTAL 191,950 *Fastest journey times (door-to-door) according to Google Maps (November 2018) and incorporating faster Crossrail times where applicable. The 8 mins journey time to Brunel University London (Ranked 59th, Times University Guide 2019)

DESCRIPTION Maksons House is a locally-listed landmark building, formerly the Royal Mail sorting office for Hillingdon, extensively refurbished in 2017 to provide luxury student accommodation with ancillary amenity space. The student accommodation comprises 29 luxury self-contained studio flats arranged over ground and first floors, each providing the following high specification: ¾ size double bed with gas-lift under-bed storage Study station with large desk and lumbar support chair Fully-fitted ensuite shower room with WC and wash basin Fully-fitted kitchenette incorporating fridge/freezer, microwave oven/ grill and sink with tiled splashback, mixer tap and drainage board Solid white oak hardwood floors and doors Soundproofed windows with fitted blinds Wall-mounted shelving/cupboard units and pin up board Hanging wardrobe and chest of drawers Wall-mounted electric heater and flat-screen TV Digital keypad safe Maksons House further provides a large common room with sofas and television, 2 housekeepers cupboards, one per floor, and a large communal kitchen incorporating 2 large sinks, 4 fan ovens and 6 double hobs with stainless steel extractor fans above. There is CCTV throughout the common areas. Outside there is a large secure landscaped courtyard and designated parking for 12 bikes and 14 cars. Access to the accommodation is provided via the main archway entrance off Station Road with two alternative access points from the car parking area and the private landscaped courtyard. Maksons House operates a key-card entry system throughout allowing access into the building, secure communal areas / bike store / courtyard and each student s private flat. ACCOMMODATION Room Type No. Rooms No. Beds Bed Spaces Standard Studio 4 4 13.80% Premier Studio 11 11 37.93% Signature Studio 14 14 48.27% Total 29 29 100.00% For identification purposes only. Freehold Flying Freehold LLH 99 years

INCOME ANALYSIS The property is 100% let for the 2018/19 term in accordance with the table below (based on actual occupancy/income received); 97% of current students attend Brunel University London (Ranked 59th, The Times University Guide 2019); 2018/19 gross term time income is 426,289 per annum; Majority of beds (85%) are let on 51-week terms; There is currently no sundry income / vending at the property and we have not included an allowance in the 2018/19 income figures; There are 14 parking spaces at Maksons House, with an estimated rental value of 600 per annum per space; 8 of the parking spaces are held long leasehold at a ground rent of 4,500 per annum + VAT; Total operating expenditure of 81,982 per annum, received for this period, reflecting a rate of 2,827 per bed and c. 20% of gross rent; Total Net Income 2018/19 of 338,907 per annum. COST ANALYSIS Maksons House actual/budgeted operating costs are 81,982 for the 2018/19 academic year, reflecting 2,827 per bed. A breakdown of current operational expenditure is shown below. OPERATIONAL EXPENDITURE BREAKDOWN PER BED Management & Letting Rates & Utilities Cleaning 424.83 629.86 1,206.90 Room Type No. Rooms Term (weeks) 2018/2019 Rent per Week 2018/2019 Rent per Annum Standard 4 51 249.00 50,796.00 Premier Signature 9 51 274.00 125,766.00 1 48 274.00 13,152.00 1 47 274.00 12,878.00 10 51 299.00 152,490.00 1 47 299.00 14,053.00 1 44 299.00 13,156.00 Signature (dual occupancy) 2 51 349.00 35,598.00 Accommodation Total 29 417,889.00 Parking 14 51 600 per annum 8,400.00 TOTAL INCOME 426,289.00 Leasehold Payaway (Parking Area) Operating Costs Total Net Income 2018/19-5,400-81,982 ( 2,827 per bed) 338,907 Laundry 351.72 Insurance Internet Landscaping Security 103.45 71.92 27.93 10.34.000.200.00.400.00.600.00.800.00 1,000.00 1,200.00 1,400.00 West Drayton has outperformed Greater London by 7.4% over the past 12 months (Land Registry, Q1 2018)

REVERSION OPPORTUNITY Estimated gross rental value for 2019/20 of 437,365 per annum, assuming 51 week lets and allowing for 97% occupancy; Operating costs stated above are actual and have been stabilised over 2 years but could potentially benefit from some further efficiencies in procurement; Operational costs currently include a weekly laundry service. Striping this out would lower the operating costs to 2,475 per bed; Currently 2 rooms have been let as dual-occupancy but there is potential and demand to increase this to a total of 6 rooms should a purchaser wish. Dual-occupancy rooms attract a premium of 50 per week on the Signature room rate; Summer holiday income due to the location of Maksons House close to Brunel, Crossrail and Heathrow airport, there is a very strong rental demand in the summer months. There is potential to shorten the term time student lets to 44-week tenancies and benefit from the extra seasonal demand for rooms over the summer. Prior to this academic year, short-term rents of 79 per night have been achieved (Booking.com rating of 9.3 out of 10); Note that the reversionary income is not guaranteed and is subject to market conditions. HIGHER EDUCATION IN LONDON There are currently 277,695 full-time students in London (HESA 2016/17), more than any other city in Europe. Several institutions including Imperial College, University College and King s College London are continually ranked within the top 20 best universities in the world by the QS World University Rankings. Out of this total number of full-time students, c. 49,228 (17.7%) are offered accommodation by universities in halls of residence. A further 31,406 (11.3%) students are offered accommodation by private sector landlords in purpose-built student accommodation (PBSA). This leaves a surplus of 197,061 (71.0%) students that cannot access either university halls of residence or PBSA. London student accommodation summary No. Beds % total full time student population Students living in University Halls of Residence 49,228 17.7% Students living in private sector purpose built accommodation 31,406 11.3% Students unable to access university or private sector accommodation 197,061 71.0% Total London full time Higher Education population 277,695 100% (source: Knight Frank London Student Market Report 2018). Room Type No. Rooms Term (weeks) 2019/2020 Rent per Week 2019/2020 Rent per Annum Standard 4 51 259.00 52,836.00 Premier 11 51 289.00 162,129.00 Signature 8 51 309.00 126,072.00 Signature (dual occupancy) 6 51 359.00 109,854.00 Void Allowance @ 3% - 13,526.73 Accommodation Total 29 437,364.27 Parking 14 51 600 per annum 8,400.00 Sundries 29 50 per annum 1,450.00 TOTAL INCOME 447,214.27 Leasehold Payaway (Parking Area) Operating Costs - 5,400-81,982 ( 2,827 per bed) Projected Net Income 2019/20 359,832.27

DEVELOPMENT OPPORTUNITY Ground Floor Our client s architect has drawn up plans and commenced discussions with the planning authority for the addition of a further 5 rooms at 2nd floor level. Additionally, the ground floor common room has been designed so that it can be split to accommodate a further 2 studios were a purchaser interested in adding bed spaces. Based upon current estimates this has the potential to increase the gross income by c. 100,000 per annum. Any additional value derived from development opportunities will require planning permission. Please seek your own advice. Proposed First Floor Proposed Second Floor 62% Average house prices have increased by in West Drayton over the past 5 years

BRUNEL UNIVERSITY LONDON Brunel University London is currently ranked 59th in The Times University Guide 2019 and celebrated 50 years of innovation in teaching and world-class research in 2016. The university boasts an impressive library and world-class sports facilities which are among the best offered by any university. For each available place at Brunel University London there are more than 10 applications. The university has a total of 12,940 full-time students, an increase of 8.3% from last year, of which 20.1% are from overseas. The university offers accommodation for 4,816 students (with guaranteed places for 1st years), leaving nearly 2/3rd of students unable to access university accommodation. It should be noted that Maksons House is the only purpose-built student accommodation scheme within the borough of Hillingdon serving Brunel University London. PLANNING The property benefits from planning consent for Student Accommodation (Sui Generis use class) granted in 2015 under application number 44606/ APP/2015/2367. TENURE Maksons House is held Freehold with the exception of the parking areas. The undercoft parking, which underlies the BT Telephone exchange, is held Flying Freehold and the additional 8 spaces are held on a 99-year Long Leasehold interest at a ground rent of 5,400 (incl. VAT) per annum. VAT The property is not elected for VAT. EPC The property has an Energy Performance Certificate rating of E43. A copy of the certificate is available upon request. catchment 190,000 students studying within a 45-minute door-to-door of Maksons House

PROPOSAL Offers are invited in excess of 6,275,000 (Six Million Two Hundred and Seventy-Five Thousand Pounds) subject to contract and exclusive of VAT. This reflects a Net Initial Yield of 5.25% and a Net Reversionary Yield of 5.50%, assuming purchaser s costs of 2.80%, which allows for stamp duty (SDLT) of 1% based upon the transaction benefiting from Multiple Dwellings Relief (MDR). Purchaser s should seek their own advice regarding SDLT and MDR. FURTHER INFORMATION Should you require further information or wish to view the property please contact either:- OLIVER TAYLOR T: 020 7042 6001 M: 07773 773 790 E: oliver@buchananbond.com HANNAH MAWDSLEY T: 020 7042 6005 M: 07595 701 432 E: hannah@buchananbond.com 3-5 Barrett Street St Christopher s Place London W1U 1AY 020 7042 6000 www.buchananbond.com Misrepresentation Act 1967 & Declaration Buchanan Bond Real Estate Ltd, for themselves and for the vendors of this property whose agents they are, give notice that: i) The particulars are set out as a general outline only for the guidance of intending purchasers, and do not constitute, nor constitute part of, an offer or contract. ii) All descriptions, dimensions, references to condition and necessary permission for use and occupation and other details are given in good faith and are believed to be correct, but any intending purchasers should not rely on them as statements or representations of fact and must satisfy themselves by inspection or otherwise as to the correctness of each of them. iii) No person in the employment of Buchanan Bond Real Estate Ltd has any authority to make or give any representation or warranty in relation to this property. DECEMBER 2018