HINTON APARTMENTS, 6 HINTON ROAD, BOURNEMOUTH BH1 2EN PRIME STUDENT ACCOMMODATION INVESTMENT/FUNDING OPPORTUNITY

HINTON APARTMENTS, 6 HINTON ROAD, BOURNEMOUTH BH1 2EN PRIME STUDENT ACCOMMODATION INVESTMENT/FUNDING OPPORTUNITY

Content Investment Summary...3 Location... 4 Situation... 5 OS Plan... 6 Description...7 Selection of Proposed Floor Plans...8 Selection of Proposed Floor Plans cont... 9 Student Development...10 Bournemouth Student Accommodation Market... 11 Current Accommodation in Bournemouth... 12 Rent and Management Costs... 13 Proposed Management...13 Development Timescale... 13 Funding Proposal... 14 Minimum Commitment... 14 Further Information...15 2

Investment Summary Prime student accommodation funding or forward commitment opportunity with ancillary café, potential gym, cinema room, bookable dining room, study and lounge in the centre of Bournemouth In close proximity to Bournemouth University s Lansdowne Campus (c.10 minutes walk) and adjacent to MLS International College / Business School Freehold Planning consent to provide 102 studio rooms and c.3,200 sq ft of exceptional communal space, split over 7 storeys. Demolition has commenced with a build programme of 18 months Practical Completion scheduled in good time for 2018/19 academic year. Possibility of letting before 2018 academic year Projected gross income of 990,570pa Projected net operating income of 712,317pa (projected management cost 2,590 p/bed) Our client is seeking full funding offers for a total commitment in excess of 11,200,000 (Eleven million two hundred thousand pounds) reflecting a net initial yield of 6.25% assuming purchaser s costs of 1.80% A purchase of the site with the benefit of the planning permission may also be considered. Further information available on request. HINTON APARTMENTS, BOURNEMOUTH TOTAL COMMITMENT IN EXCESS OF 11,200,000 3

Location Bournemouth is a large, attractive south coast town approximately 100 miles (160km) south-west of London, 22 miles (35km) west of Southampton and 6 miles (9km) east of Poole. Road communications are excellent being situated on Junction 1 of the M27 which provides direct access to Southampton, the M3 and the rest of the UK s motorway network. In addition, there are frequent rail services to London Waterloo in a fastest journey time of 1 hour and 45 minutes. Bournemouth International Airport is located approximately 4 miles (6km) north of the city centre while Southampton International Airport is located approximately 33 miles (53km) to the north east. Bournemouth and Poole form a continuous built-up area of around 10 miles along the coast of south-east Dorset. Bournemouth is projected to see above average growth in population over the period 2014-2019. Tourism is an important part of Bournemouth s economy with 6.88 million people visiting the town in 2013, spending an estimated 501 million (Source: coastaltouristacademy.co.uk) Bournemouth boasts two universities, Bournemouth University (BU) and Arts University Bournemouth (AUB) and has a student population of 21,210, of which 16,670 are full time (Source: HESA 2014/15). A350 A31 Bournemouth Poole A35 A348 Salisbury A31 M27 M271 Winchester M3 Southampton M3 To M25 M27 Isle of Wight " M275 A3(M) Portsmouth 4

Situation Hinton Road is situated in the centre of Bournemouth, c.1 mile from Bournemouth mainline train station. The site is less than 2 miles from the Talbot Campus of Bournemouth University and Arts University Bournemouth. It is around 10 minutes walk (c.0.8 miles) to BU Lansdowne Campus. MLS International College is situated adjacent to the subject property. It incorporates Bournemouth Business School International and has c. 1,000 students. Wallisdown A3040 A3049 Columbia Farm Slades Farm Talbot Heath Talbot Village A347 Bournemouth University Talbot Campus Arts University Bournemouth Winton Strouden Charminster A3060 Haddon Hill Hinton Road is only 5 minutes walk from Bournemouth Beach and Pier, famed for its attractions and seven-mile long stretch of gently shelving sands. The green spaces of Lower and Upper Gardens are a stones throw away, following the line of the River Bourne. The main shopping streets are just to the north, with an array of vintage shops and national retailers such as House of Fraser, TK Maxx, Super Dry, Fat Face, Debenhams, Boots, Primark, Zara and Marks & Spencer. There are a variety of nearby supermarkets including Asda next to the station and Tesco Express less than half a mile away. The Odeon Cinema is just around the corner on Westover Road. With two large universities, Bournemouth is a popular place for students to study with a lively nightlife and has many bars, clubs and restaurants in the immediate vicinity of the property. The town is clearly a popular student destination. Bourne Valley urne Valley Nature Reserve A35 Alder Hills Nature Reserve B3065 Alum Chine Pug's Hole Branksome Bournemouth Town Centre Westbourne Talbot Woods West Cliff West Hill Meyrick Park B3066 A3049 B3064 B3063 Dean Park BOURNEMOUTH Hinton Apartments A35 Queen's Park Bournemouth Station Bournemouth University Lansdowne Campus East Cliff Springbourne Bournemouth House University Library Boscombe King's Par 5

OS Plan A347 Bournemouth Station (15 minute walk) Bournemouth University Lansdowne Campus (10 minute walk) B3064 B3066 A35 Bournemouth Town Centre Hinton Apartments B3066 Key Lansdowne Campus Buildings 6 Not to scale - for indicative purposes only

Description The building is currently a vacant former nightclub. Planning permission was granted in June 2016 for the demolition of the existing building and construction of 102 studio rooms and circa 3,200 sq ft of exceptional communal space to include 36 cycle spaces, cinema, bookable dining room, study, common room and café. A further application is being submitted shortly to include a gym and alter the cycle storage arrangement. The development will be laid out over 7 storeys from lower ground floor up to fifth floor. CGI - For indicative purposes only. 7

Selection of Proposed Floor Plans Ground Floor Lower Ground Floor Servery Storage Gym REFUSE AND RECYCLE Launderette Plant Flue Cycle Store - 20 no. Cycles Office Study Lift Lift Mech Riser Cinema Mech Riser Public Cafe/Meeting Space Open Plan Lounge Bookable Dining Area 8 Not to scale - for indicative purposes only

Selection of Proposed Floor Plans Ground Floor Lower Ground Floor Flue Lift Lift Mech Riser Elec Riser Store *2nd - 4th floor plans are similar to above Not to scale - for indicative purposes only 9

Student Development The development is set to create the highest specification student accommodation in the town. Collegiate Accommodation Consulting has been appointed to advise on the most profitable and effective scheme appropriate for the market. As such, the accommodation will be of a high standard, similar to Water Lane Apartments in Bristol (www.collegiate-ac.com/ukstudent-accommodation/bristol/water-lane-apartments) which was also built by the Vendor in affiliation with Collegiate. 10 Example spec from Water Lane Apartments Bristol - see Collegiate website.

Bournemouth Student Accommodation Market Bournemouth is a large university town, home to Bournemouth University (82nd in the Times Good University Guide rankings) and the Arts University Bournemouth (81st in the Times Good University Guide rankings). Bournemouth University has 18,225 students, 13,765 of which are full time. The Arts University Bournemouth has 2,955 students, 2,905 of which are full time (Source: HESA 2014/15). The town therefore has around 16,670 full time students in higher education of the full time students 1,110 are from the EU and 1,890 are non-eu. The Lansdowne Campus is home to the Faculty of Health & Social Sciences and the Executive Business Centre, where postgraduate education for the Faculty of Management is delivered. It is also where the majority of the University accommodation is based as well as being located close to the main train and bus station. Support services such as marketing, HR, finance, international admissions and ASKBUT drop-in service are also based here. The Talbot Campus s facilities include the Faculty of Management, the Faculty of Media & Communication, the Faculty of Science & Technology, The Graduate School, Sport BU and The Sir Michael Cobham Library. The Student Centre was opened on the Talbot Campus in 2015 and is a six storey, environmentally friendly building to enhance the presence of the Students Union at BU. Photovoltaic panels and ground source heat pumps reduce carbon emissions while a green roof provides insulation and increases the ecological value of the campus as a whole. A new academic building called The Fusion Building, located at the heart of the Talbot Campus, is due to open in September 2016. It is five storeys high and will provide almost 6,000 sq m of academic space, including 28 seminar rooms, three lecture theatres, research space, collaborative learning areas and a roof top terrace café. Proposals have been submitted for 100 million worth of landmark developments for striking gateway buildings at BU s Lansdowne and Talbot sites. The schemes will include state-of-the-art facilities for BU s highly regarded faculties of Media and Communication, Management, Science and Technology and Health and Social Sciences (HSS). A hybrid planning application to develop a landmark Poole Gateway Building and new transport infrastructure at Talbot has been submitted to the Borough of Poole. If approved the building would provide new specialist facilities including TV studios, editing suites and PC laboratories. The proposed transport infrastructure includes a new link road off the Boundary roundabout, a bus hub on campus and a car park extension. Lansdowne s scheme aims to bring HSS under one roof with modern facilities in a new Bournemouth Gateway Building, situated off the St Paul s roundabout. There are approximately 4,158 PBSA beds in Bournemouth (excluding the HMOS managed by Bournemouth University Student Village and Unilet). On this basis, approximately 12,500 students are unable to access PBSA, reflecting 75% of full time students. This demonstrates strong demand for further PBSA provision in the town. We are aware of two pipeline schemes. The first is due to PC in August 2017 and is being built by Watkin Jones. It will provide 454 student rooms, a 128 bed hotel (Premier Inn) and 70,000 sq ft of offices. The second scheme is a joint venture between Bournemouth University and Threesixty Developments. Planning was submitted for a 550 bed scheme of 4 to 8 bed cluster flats on 16 May 2016 with a target PC of 2019 if approved. Even if all 1,004 beds are built only c. 31% of students will be able to access PBSA (a shortfall of 11,508 beds). FT/Students No. of Beds % of Beds to F/T Students Bournemouth University 13,765 3,026 22% Arts University Bournemouth 2,905 515 18% Total University 16,670 3,514 21% Private Sector Beds 617 4% Total Existing 16,670 4,158 25% The requirement for student accommodation in Bournemouth is further intensified by international language and business schools, comprising c.17 establishments. These include: MLS International College - Bournemouth Business School International (located adjacent to subject property). SNT International College EF ETC International School Kaplan Bournemouth School of English 11

Current Accommodation in Bournemouth City Centre Mercury House, operated by Fresh, opened in September 2015 and is a 10 minute walk from the Lansdowne Campus. It provides 150 studios priced at 180 per week and we understand it is 100% occupied for the 2016 /17 academic year. e Bottom Wallisdown A3040 Talbot Heath Talbot Village Bournemouth University Talbot Campus Winton Strouden Charminster AUB - Winton Halls (100 Beds) Haddon Hill Bournemouth s PBSA provision is shown in the map: smore Bourne Valley Bourne Valley Nature Reserve BU - Okeford House (100 Beds) A3049 Queen's Park Alder Hills Nature Reserve Talbot Woods B3063 A3049 King's Pa BU - Corfe House Poole (308 Beds) B3065 Pug's Hole The Outlook (125 Beds) Westbourne Branksome BU - Chesil House (200 Beds) Bournemouth Town Centre Lulworth Student Company - Lulworth House (152 Beds) Meyrick Park BU - Cranbourne House (500 Beds) West Hill West Cliff Alum Chine Fresh - Mercury House (150 Beds) BU - Purbeck House (500 Beds) Dean Park B3066 B3064 B3066 BOURNEMOUTH AUB - Bath Road (84 Beds) Springbourne AUB - Madeira Road (378 Beds) BU - Lyme Regis House (400 Beds) BU - Dorchester House (590 Beds) Bournemouth University Lansdowne Campus East Cliff Bay View Breeze (70 Beds) BU - St Johns Boscombe Road (28 Beds) BU - Lansdowne Point (400 Beds) Omnia - Bracken House (120 Beds) Branksome Park 6 Hinton Road Legend Arts University Bournemouth Bournemouth University Private PBSA 12

Rent and Management Costs We are forecasting the gross to net income profile illustrated below. *The projected café profit has been assumed at 1.50 per bed for 6 days a week grown at 3% pa for 2 years. The Vendor will offer a rent guarantee for 1 year on the café income. The café will be managed by Collegiate. It will be open to the public during usual trading hours and available for students only outside of this period. Type No. of Beds Forecast Rent No of Weeks 2018/19 98.5% Occupancy Collegiate Management Net Rent p/week Gross Rent Cost p/bed Studio 102 180.35 51 938,196 1.5% 2,590 659,943 Cafe Profit 51 49,669 49,669 Sundry Income 25.00 51 2,705 2,705 Total 990,570 712,317 Rent and Management Costs Collegiate Accommodation Consulting has been consulted in the layout, design, planning, rent and management cost analysis of the scheme. A full mobilisation and management cost breakdown is available on request. www.collegiate-ac.com. Development Timescale Planning permission was achieved in June 2016, demolition commenced in July 2016. The build programme is c.18 months with Practical Completion anticipated in advance of the 2018/19 academic year. 13

Funding Proposal The projected net rent is 712,317 pa which assumes a void room and bad debt provision of 1.5% and a management cost of 2,590 per bed. The asset will be sold on an unconditional basis assuming a traditional forward funding structure with a rental guarantee for 1 year on the café profit. Minimum Commitment Based on the above, an anticipated NOI of 712,317 pa and total minimum commitment of 11,200,000 (Eleven million two hundred thousand pounds) would reflect a net initial yield of 6.25%, assuming purchaser s costs of 1.80%. Site purchase on completion of a development funding agreement 2,020,000 Site stamp and purchase costs @ 6.03% 125,000 Historic planning costs 465,000 Construction (including demolition and asbestos removal) 5,930,000 CIL 69,000 Contingency 175,000 Professional fees 460,000 Development finance costs @ 6.25% (coupon to the funder) 536,000 Disposal fees @ 1.50% 168,000 Total Development Costs Say: 9,950,000 Balancing payment PC August 2018-12.5% profit on cost 1,245,000 Total Minimum Commitment Say: 11,200,000 14

Further Information Contact: Colin Summers E: colin.summers@bidwells.co.uk DD: 020 7297 6272 Bidwells 25 Old Burlington Street London W1S 3AN Contact: Kat Ilett E: katherine.ilett@bidwells.co.uk DD: 020 3761 3633 Bidwells 25 Old Burlington Street London W1S 3AN Joint Agent: Dovid Sharman E: dsharman@kingsbridge-partners DD: 020 3369 9005 1 Manchester Square London W1U 3AB September 2016 IMPORTANT NOTICE RELATING TO THE MISREPRESENTATION ACT 1967 Bidwells LLP act for themselves and for the vendors of this property, whose agents they are, give notice that: These particulars do not form part of any offer or contract and should not be relied upon as statements or representatives of fact. Bidwells LLP has no authority to make or give in writing or verbally any representation or warranties in relation to the property. Any areas of measurements or distances are approximate. The text, photographs and plans are for guidance only and are not necessarily comprehensive. No assumptions should be made that the property has all necessary planning, building regulation or other consents. Bidwells LLP have not carried out a survey, nor tested the services, appliances or facilities. Purchasers must satisfy themselves by inspection or otherwise. In the interest of Health & Safety, please ensure that you take due care when inspecting the property. Bidwells LLP is a limited liability partnership registered in England & Wales (registered number OC344553). Registered head office is Bidwell House, Trumpington Road, Cambridge CB2 9LD, where a list of members is available for inspection. 15

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