x1 the edge, liverpool

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Knight Knox International brochure to X1 The Edge, Liverpool

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Page 1: X1 The Edge, Liverpool

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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

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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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