- 20 Bed Student Investment Opportunity
- 0.6 miles from NTU campus
- 2 x Semi-Detached Properties containing 6 flats
- Fully let for current and upcoming Academic Year
- Projected income of £101,400 for 20/21
- 4 x 3 bed flats & 2 x 4 bed flats
- Gross Yield of 10.1% based on 20/21 academic year
- Currently Licensed HMO properties
- Offers In excess of £999,500
DescriptionFHP & FHP Student Living are delighted to offer this large and well located Student Investment Opportunity. Located around half a mile from NTU campus, the site contains 20 beds and is fully let for the current and upcoming academic year, producing an income of £101,400 for the 20-21 academic year. THE PROPERTY The property comprises a substantial pair of semi detached buildings probably erected over 100 years ago. These buildings are of traditional 10.5" brick construction under a pitched slate roof. In recent years the property has been extended, modernised and refurbished. They have current NCC licenses and are up to date with regards to the law regarding gas and electricity. They comprise of 2 four bedroom/two bathroom flats and 4 three bedroom/one bathroom flats. The kitchens and carpets were all renewed between 2016 and 2018 and have had new boilers in 2017 and 2018.
LOCATION Nottingham is a major provincial city and has an urban population of approximately 275,000 and a leisure catchment of 750,000 persons.
The property is situated on the western side of Noel Street in the section adjacent to Mount Hooton Road and directly opposite The Forest Park & Ride. The property is therefore well located with connections into Nottingham city centre with numerous bus routes and the NET tram link directly opposite the subject property on Forest Road West.
The surrounding areas including that of Alfreton Road and generally have seen a significant number of new PBSAs brought to the market with such sites as The Orbital Nottingham Square, Russell View, solidifying demand from students to live in the areas such as Radford alongside the provision of University territories such as Linton and The Arboretum.
Latest HESA figures from 2017-18 show just under 64,000 students with estimated increases in enrolments now reflecting close to 70,000 students. Nottingham is home to 2 large universities.
The University of Nottingham (33,100 students for 17/18) was placed 18th in the 2020 Guardian League Table and 159th in the world according to the Times HE findings, is a Russell Group University located on the periphery of Nottingham between Linton and Beeston. Nottingham Trent University is a City Based university (30,890 students) placed 12th in the 2020 Guardian League Table and won Times HE University of the Year for 2017 and Modern University of the Year 2018.
INCOME The property is currently let on six ASTs from 1st September 2019 at a total rent of £93,000 per annum. Five of the ASTs are for 50 weeks and one is for 52 weeks. This is calculated at a rate of £95 per person, per week.
The accommodation is fully let for the academic year 2020-2021 from 2ndSeptember 2020 at a figure of £101,400 per annum. The rates per room vary between £99 and £105 per person, per week. All of the tenancies are for 50 weeks.
In our opinion, there is room to obtain rents of up to £110 per person, per week and to extend some of the tenancies to 52 weeks to produce an income for the following year of circa £109,000 per annum.
Offers are invited in excess of:
This equates to a bed rate of £49,975, a gross initial yield of 9.26% and a gross reversionary yield of 10.14%.
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