Greater London Reversionary Student Investment Opportunity

 

SUMMARY

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 en-suite 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);

LOCATION

LOCATION

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.

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.
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

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.

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.

DESCRIPTION

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.

ACCOMODATION

 

 

 

 

INCOME ANALYSIS

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.

TENURE

TENURE

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.

 

IMAGES

PHOTO GALLERY

PROPOSAL

EPC

Available upon request.

VAT

The property is not elected for VAT.

PRICE

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.

MISREPRESENTATION ACT 1997 & 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.

BROCHURE

BROCHURE

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