Location

• Aberdeen is a port city in northeast Scotland, located between the mouths of the River Dee and Don and east of the stunning Cairngorms National Park.
• It is Scotlands third most populous city, with a population of over 261,000.
• It is also known as the 'Granite City' for its many enduring grey-stone buildings. The 19th-century Marischal College owned by the University of Aberdeen is a monumental Victorian landmark that is now the headquarters of the City Council.
• Aberdeen International Airport flies to more than 100 destinations providing excellent global connectivity.
• Aberdeen Railway Station has direct links to Edinburgh (2 hours 19 minutes), Glasgow (2 hours 30 minutes) as well as access to routes across the UK.
• The city is well connected to the rest of the UK, via the A90, which connects into the main UK motorway network.

Situation

The Property is located to the southwest of the city centre, midway between the University of Aberdeen, which is located to the north of the city centre, and Robert Gordon University, which is located to the southwest of the city on the banks of the River Dee.

The location provides students with excellent connectivity via bus routes to both universities within a 2-minute walk of the Property. To the east of the Property Bon Accord Terrace Gardens provides additional outdoor space for residents and the major thoroughfare Union Street is only 5 minutes walk north, offering a wide range of shops, bars, cafes and restaurants.

There is a notable lack of student accommodation around Robert Gordon University and ABeleven is uniquely situated to meet the demands of students wanting the benefits of city centre living without compromising excellent connectivity to the campus.

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Description

• ABeleven is a 222 bed purpose-built student accommodation property comprising 214 ensuite rooms within 33 cluster flats and 8 studios.
• The Property is arranged over lower ground, ground and three upper floors. Rooms are fully furnished to a very high standard, complete with study area and super-fast Wi-Fi.
• The scheme offers an attractive ensuite-led room mix and large room sizes.
  - Ensuite rooms include 3/4 double bed, full ensuite bathroom.
  - Studio rooms include 3/4 double bed, full ensuite bathroom, fully equipped kitchen.
• There are social facilities, courtyard gardens and parking facilities for 23 cars, 9 motorcycles and 74 bicycles.
• The Property was new for the 2019/20 academic year and was 100% let for 2023/24 in May.
• The Property is operated by U-Student, an experienced student accommodation operator who have owned and managed student residences across the north of the UK since 2003. U-Student will be exiting as operator upon sale of the Property.
• Mains gas, electricity, water and drainage are connected to the premises. 100Mbps Wi-Fi Internet is provided.
• he Property benefits from a secure access card entry system to the main block and individual rooms.

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Tenure

Heritable (English Freehold).

Tenancy

2023/24 Income

The total contracted term time revenue for 2023/24 is £1,361,162 providing a net operating income of £882,879. This is based on the operational budget provided by Homes for Students reflecting £2,149 operating costs per bed. The Homes for Students budget is available in the data room along with further details of trading history.

Covenant Information

Reversionary Rents

• The Property is currently underlet versus comparable stock in the Aberdeen market and provides a buyer with attractive reversionary income based on Homes for Students rental growth projections.
• The below table shows the projected reversionary yield of 6.85% off the asking price of £13,630,000, assuming 8% rental growth and 5% OPEX growth for 2024/25 as detailed in the Homes for Students budget.

Competing Schemes

Further information can be found within the particulars of sale.

Aberdeen Student Market

Further information can be found within the particulars of sale.

Robert Gordon University

Further information can be found within the particulars of sale.

University of Aberdeen

Further information can be found within the particulars of sale.

VAT

The Property is not elected for VAT.

DATA ROOM

A full suite of information is available in a data room. Access is available on request.

INSPECTIONS

Interested parties will be informed of inspection days in due course.

FRAEW & EWS1

An FRAEW survey and EWS1 report is being completed by the vendor and will be made available in the data room.

EPC

Available in the data room.

DEBT ADVISORY

C&W's Debt & Structured Finance team focuses on debt arrangement for acquisitions. Our team can guide and support potential buyers to secure optimal lending terms. For more information, please contact Max.Borchert@cushwake.com

METHOD OF SALE

The sale process will be conducted by way of informal tender.

TRANSACTION STRUCTURE

The Property is available as an asset purchase.

Proposal

Offers are invited in excess of £13,630,000 (Thirteen Million, Six Hundred and Thirty Thousand Pounds). This reflects a net initial yield of 6.25%, an attractive £61,500 per bed and a projected reversionary yield of 6.85% in 2024/25. This assumes purchaser costs of 3.63%.

Cushman & Wakefield would like to confirm that our client is not obliged to accept the highest or indeed any offer.

ANTI-MONEY LAUNDERING

In order to discharge its legal obligations, including under applicable anti money laundering regulations, C&W will require certain information. In submitting a bid, you agree to provide such information when Heads of Terms are agreed.

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