x1 the edge, liverpool
DESCRIPTION
Knight Knox International brochure to X1 The Edge, LiverpoolTRANSCRIPT
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Investment Highlights8% NET yield for 5 years>
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Fully managed and let by X1 Lettings
231 double en-suite rooms
Built by the developer of X1 Arndale House
Prime location in the heart of Liverpool’s student community
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Knight Knox International provides the information contained within this document as a general guide. This information does not constitute an offer or
a contract and we (or anyone in our company) do not imply, make or give any representation, guarantee or warranty whatsoever relating to the terms
contained within. Any intending investor must satisfy themselves as to the correctness of any of the statements, plans or images contained within. Images are
for representational
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An opulent new-build development comprising 231 double en-suite
rooms, X1 The Edge will cater for today’s more discerning student,
offering bespoke furnishings and a wide range of facilities including
communal rooms and a full fitness suite.
Built by the same developer who delivered X1 Arndale House, this
seven-storey project will be built on the neighbouring Seymour
Street, a thriving high street in the heart of Liverpool and haven for
students, as confirmed by the letting figures of X1 Arndale House,
which is 100% let for the 2014/15 academic year.
The seven-storey building, which will have amenities including
a laundrette, bicycle storage and a private residents’ courtyard,
has already received full planning permission from Liverpool City
Council, confirming that there is a need for purpose-built student
accommodation in the city.
Let and managed by X1 Lettings, X1 The Edge will have a keyless
entry system and 24hr on-site security, allowing students and
parents alike the peace of mind that the residence will be a secure
and safe environment for them to live in.
X1 The Edge
Brought to you bythe developer ofpopular student residence - X1 Arndale House
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Why Invest in StudentAccommodation?
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Only 10 places available for every 14 applicants to UK universities
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Why Invest in StudentAccommodation?
Continuing to outperform all other forms of property investment in
the UK; private, boutique student residences are one of the most
lucrative ways of expanding an investment portfolio, due to the
stable yields and low void periods which are common for this type
of property.
The demand for high quality student accommodation is showing
no signs of abating, as UK university places are still heavily
oversubscribed with only 10 places available for every 14 applicants,
placing university-owned accommodation under an increasing
amount of strain, as they struggle to provide the standard of
accommodation required in today’s market place.
This trend for a higher-standard of living is fuelled by the
globalisation of the Higher Education market and the increase in
the number of students applying to UK universities from outside of
the UK.
Students from the European Union and overseas currently account
for over a sixth of the UK’s student population, with the number of
non-domiciled students studying at Higher Education institutions in
the UK predicted to rise to 7.6m by the year 2025.
By focussing on regional university locations like Liverpool, we are
able to offer investors higher-than-average yields in areas that
have a severe shortage of private, high-quality residences. X1 The
Edge is our latest boutique student project, identified as a prime
investment opportunity and delivered by an experienced developer
in the student accommodation market.
Average yields for regional cities currently stand at 6-6.5% across
the country, but by choosing to invest with Knight Knox International
in X1 The Edge, investors can receive 8% assured NET yields for
five years. Fully managed and designed completely with students in
mind, the project is due for completion in September 2015.
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Consistently outperforming all other forms of property investment in
the UK, returns in the private student accommodation sector were
recorded at an average of 9.6% in 2012, fuelling the continuing
development of bespoke, boutique projects through specialist
providers like Knight Knox International, to the private investor
market.
Property experts Knight Frank have estimated that universities will
generate more than £500m by 2016 through the disposal of their
existing halls of residence, allowing student’s access to a far superior
standard of accommodation that they would have previously.
Attracted by higher-than-average yields, low void periods and
on-site management companies, student accommodation is a
completely
hands-off investment and the perfect addition to any property
portfolio.
UK’s Premier Property Class
£2.1 billion invested inUK student accommodation in 2013
CBRE
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Universities will generate
more then £500 millionby 2016 through disposal of existing halls of residence
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Investment Overview
All figures are based on forecasts provided by the developer and are subject to change. Any financialinformation provided in this document is intended as a guide and does not constitute a contract.
Comprised of 231 double en-suite rooms, X1 The Edge is a purpose-built student
accommodation development, located in the heart of Liverpool’s student community.
Prices start at £54,950 and investors are offered an assured NET yield of 8% for the first 5 years.
Investment Opportunity
Double room £54,950Large double room £59,950
Purchase price
Annual NET rental income
Projected future asset
5%Expected
£54,950
£4,582
£63,703
£54,950
£4,582
£70,132
£54,950
£4,582
£77,071
Projected total value £86,613 £93,042 £99,981 (Asset value + 5 yr rental income)
Below is an example of the projects’ return-on-
investment, from the purchase of a double room
7%Buoyant
3%Conservative
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Est. NETincome £4,582
Est. weekly rent £140
Est. maintenance fee £1,350
Est. management fee (8%) £538
Est. ground rent £250
Est. NET yield8.34% (typical after 5-year rental
assurance)
Est. annual rent £6,720
Purchase Price
£54,950
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The Universityof Liverpool
82% of all UK andEU graduates from the university were employed or in furthereducation within 6 months ofgraduation
National student survey 2013
Student satisfaction
88%
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The University is investing £600 million in its facilities over the next ten years, with key projects from this including a £15 million green heating system, and £15 million state-of-art centralised teaching laboratories, already completed
The University of Liverpoolis ranked in the
top 1% ofuniversitiesworldwide and is a member of the prestigious Russell Group, comprising of leading research universities in the UK
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Liverpool JohnMoores University
Liverpool John Moores University reported a 6%year-on-year increase in student members for 2013
2012Student members
2013Student members
15.83%
All figures correct as of October 2013
83% of students are very or quite satisfied with theuniversity according to the 2013 student satisfication survey
The University has over
24,000 students of which 10% are international students
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There are over 50,000students studying atLiverpool Universities
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Liverpool life
Home to Albert Docks, the most visited free
attraction in the UK outside London, and housing
landmark sites such as Tate Liverpool and the
Merseyside Maritime Museum, it is no surprise that
the city is one of the most popular destinations for
tourists in the country.
Liverpool’s continuing rise, which culminated in it
being named The European City of Culture in 2008,
has ensured that its populace is always increasing,
surging by a staggering 5.5% over the last decade to
stand at 466,400.
With a body already reaching over 50,000 students,
reports of admissions for the 2013/14 academic year
demonstrate that this figure is increasing, as students
continue to fuel the city’s population rise.
With an increase of 2,000 students attending the
University of Liverpool’s open day, many were clearly
impressed enough to request a place at the university,
which recently confirmed that recruitment has
surged by 18% since 2012. In addition, Liverpool John
Moore’s University announced a 6% increase on last
year’s intake and nearby Edge Hill University reported
a year-on-year increase of 12%, demonstrating the
prestige associated with living in this cultural hub.
With this strong demand being confirmed in Savills
‘Spotlight on Student Housing Report’ awarding
Liverpool an ‘upper second’, in their buy-to-let
honours table, it is clear that this is a great time
to invest in Liverpool, as the student and general
population continues to fly.
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Location Map
Within walking distance to all local amenities including bars,restaurants and clubs. Major landmarks include:
O2 Arena | 12 minute walk
University of Liverpool | 9 minute walk
Liverpool Lime Street Train Station | 5 minute walk
Liverpool John Moores University | 6 minute walk
Liverpool ONE shopping centre | 10 minute walk
Albert Docks Waterfront | 11 minute walk
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Is the building built?No. X1 The Edge is a new-build
development, which will be furnished to
the highest of standards, in line with the
high expectations of today’s students.
Am I buying as Freehold or Leasehold?999 years Leasehold
What is the address of the site?X1 The Edge, Seymour Street, Liverpool,
L3
When will the building be completed?Completion for X1 The Edge will be
September 2015
Is there a rental assurance?NET rental is assured at 8% for 5 years,
from completion of the purchase
What is the projected annual return after year 5?Currently between 8% to 10% NET
(conservative after running costs,
management fee, service charges and
utilities)
Is the sale handled by UK lawyers?Yes, the seller solicitors are MSB
and the recommended solicitors for
purchasers are Blunts of Macclesfield.
Both are experienced at handling
student accommodation transactions
Is there a management company already in place?Yes, the designated management and
letting agent will be X1 Lettings
When is my rental income paid?This is paid quarterly in arrears direct
into your bank account from completion
Can I resell my unit?Yes, you can sell at any time after
exchange of contract. Knight Knox
International has a dedicated resale
site, ‘studentpodshop.com’ which offers
investors an exit strategy for their
investment
Can I do anything I want with my room?No, each room will be leased back to
the management company on a rolling
agreement so that the whole building
- in its entirety - can be let as student
accommodation
Are there any restrictions if I want to sell?Yes, the room has to be sold as student
accommodation
Frequently Asked Questions
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• Once your unit(s) has been selected
with the help of your property
consultant, please complete the
reservation agreement and return
along with a copy of your passport,
recent utility bill and your deposit. The
bank transfer details will be found on
the reservation agreement.
• You are required to pay a reservation
deposit.
• Once your Property Consultant has
confirmed they have received your
paperwork, you will need to instruct
a solicitor. Your consultant will be
on hand to help you with this should
you require assistance, as we have a
selection of recommended solicitors
who are experienced in handling
student accommodation investment
transactions.
• Your solicitor will advise you of the
paperwork they will require from you.
Please return this promptly to reduce
the risk of delays.
• Your first installment payment will be
made when you exchange contracts.
Your solicitor will inform you when
they have the date for exchange
providing you with an adequate notice
period, at the time of exchange you
will also be required to sign and return
your contracts. If you are unable to
do this due to your location your
solicitor will be able to act as your
Power of Attorney. Please note that
your solicitor may charge a fee for this
service.
• After you have exchanged contracts
you will receive a welcome letter from
the developer which will detail the
future service they will provide and
include all contact details.
• Your final payment will be due when
construction completes.
Purchase Process
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Step1
Step2
Step3
Step4
Reservation form and deposit of £5,000
Solicitor instructed, legals and sales pack sent out
50% of balance on exchange of contracts within 21 days
Remaining balance due on completion of building
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The Galleryat X1 The Quarter
The Studiosat X1 The Quarter
X1 Salford QuaysPhase Three
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X1 Developments is an investment company
based in the heart of Liverpool, which meets
the needs of UK and overseas investors looking
for an organisation that offers exceptionally
high quality investments, which have been
selected and overseen by individuals who
have unrivalled knowledge, experience and
background in the product, market sector and
location.
Not only does X1 Developments offer an
exciting portfolio of real estate investments,
but it also offers a follow-through service via
its sister company X1 Lettings, which carries
the same high level of expertise in order to
manage and protect our clients long term
investments.
X1 Developments is THE Company for anyone
looking to invest in Liverpool & throughout the
U.K, with a track record of past developments
which speaks for itself.
Download the new X1 Developments app from the Apple Store for further details on all X1 projects, including images, movies, panoramas and detailed descriptions.
X1 The Exchange
*Only available through the Apple
The Galleryat X1 The Quarter
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About KKI
A market leader in the UK buy-to-let sector, Knight Knox
International has launched 40+ developments onto the UK
market, totalling more than 3,700 units at a value in excess of
£230million.
By forging strong relationships with a select number of develop-
ers, we work in partnership with them on their projects and, as
such, are able to provide our investors exclusive access to prime
developments across the country.
The student property sector has consistently outperformed
all other asset classes in the UK market, and industry reports
continue to highlight an imbalance between the number of beds
available, and the number of students attending Higher Educa-
tion institutions, particularly in regional cities and towns.
By targeting cities which have high student populations and
a lack of purpose-built accommodation, we have developed
a portfolio of developments that deliver higher-than-average
returns in a market that is set to perform well for years to come.
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It is very refreshing to find a company who keep you informed when they say they will. They know where my interests lie and have always made me aware of opportunities that suit my investment needs.
Mr G. Brown, UK
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