The Orbital, Ilkeston Road

Nottingham, Nottinghamshire NG7 3NE

Overview

  • Superb freehold purpose built student accommodation asset.
  • The property comprises 103 bed spaces arranged over nine floors. The accommodation offers a mix of studios (59), twodios (4) and cluster bed spaces (40).
  • Direct let and operated by Homes For Students.
  • Newly built in 2018 to a high standard.
  • Close proximity to both Nottingham Trent University and University of Nottingham.
  • Nottingham has a population in excess of 57,000 full-time students.
  • 100% let for 2018/19.
  • 100% let for 2019/20 and a waiting list of students from both universities.
  • Approximately 60% of lettings University of Nottingham/40% Nottingham Trent University.
  • Offers invited in excess of £10,000,000.

Location

NOTTINGHAM IS A CITY IN THE MIDLANDS, WHICH IS STEEPED IN HISTORY, WITH A CITY POPULATION OF AROUND 330,000 PEOPLE.

Nottingham is served by two universities, both of which have been growing in numbers. The city has approximately 57,000 students studying full-time across the two institutions where the international student population stands at around 18%.

Nottingham has an award winning public transport system, caters for a wide variety of top-level sports and was also named the City of Literature in 2015.

Situation

The property is located to the west of Nottingham centre in an area which, uniquely, can serve both the University of Nottingham and Nottingham Trent University students. A number of popular student destinations are a short walk from The Orbital. The scheme benefits from having a bus stop immediately adjacent, allowing students to access University of Nottingham in less than 15 minutes.

Description

  • Newly built in 2018 to a high specification
  • The development provides 103 bed spaces arranged over nine floors, comprising 58% studios, 3% twodios and 39% cluster beds
  • Cluster bedrooms range from 14.5 sq m to 17 sq m
  • Studio bedrooms range from 19.6 sq m to 25.1 sq m
  • There are two popular twodios which are 41.5 sq m each and located on the 6th and 7th floors
  • Floors accessed by central lift and stairwell
  • The scheme incorporates other amenities including: communal lounge area, large screen TVs in each bedroom, study area, secure cycle storage, high speed 100mb WiFi and dedicated onsite management

Tenure

Freehold (Title No. NT243594).

Tenancy

See link below.

Nottingham Student Market

Nottingham is home to two Higher Education Institutions: The University of Nottingham and Nottingham Trent University. Both of these universities have been performing strongly in recent years, ranked 16th and 37th in the Times Good University Guide 2019 respectively.

University of Nottingham

The University of Nottingham, founded in 1881, is located on the outskirts of Nottingham city with multiple campuses in the area and globally. In 2019, the University was ranked 11th in the QS Graduate Employability Rankings. The University has become increasingly competitive for applicants and they have recently recorded 7.6 applications for every place available last year.

Their global vision for 2020 highlights their aims to continue differentiating themselves from competitors and target research investment. It has received a Gold ranking in the Teaching Excellence Framework ratings.

Nottingham Trent University

Founded originally as a polytechnic school, it was rebranded a university in 1992 and today, is one of the largest universities in the UK with over 25,000 students. Nottingham Trent University is a city centre based institution with four main campuses. They have benefited from extensive investment over the last number of years.

Notably, the international student population at Nottingham Trent University has grown substantially over the past five years as the University has had an influx of students from EU and Non-EU domiciles.

The University has a Gold ranking in the new Teaching Excellence Framework measurement.

Nottingham Rents

Studios in the market are on 51 week terms and clusters are let on 44 to 51 week terms. Rental growth across Nottingham was recorded at 5.30% across private bed spaces for 2017 to 2018. Rents at The Orbital range from £132 to £152 per week for clusters and £160 to £176 per week for studios. Comparable schemes in the immediate vicinity are detailed in the brochure.

Investment Transactions

Recent investment transactions are detailed in the brochure.

Rental Profile

Approximately 60% of lettings University of Nottingham/40% Nottingham Trent University. Waiting list for the 2019/20 academic year comprised of students from both universities. See brochure for further details.

Operations

The Scheme is operated and managed by Homes For Students on a direct let basis. A full breakdown of costs and projections is available in the data room which can be accessed by contacting Cushman & Wakefield direct.


VAT

The property is elected for VAT.

OCCUPATIONAL STRUCTURE

Direct Let (Homes For Students).

DATA ROOM

Access available on request.

INSPECTION

Viewings can be arranged by contacting the sole selling agents, Cushman & Wakefield direct.

PLANNING

Full planning permission was granted in September 2016 under reference: 16/00915/PFUL3 (PP-05084036). This was for: Construction of student accommodation comprising 103 bed spaces in 69 flats with associated social space.

Proposal

Offers invited in excess of £10,000,000 (Ten Million Pounds). A sale at this level reflects a net yield of 5.78% based on the secured 2019/20 income, assuming purchaser's costs of 2.30%.

It is anticipated that the sale will be by way of a 100% share sale of the owning Special Purpose Vehicle. Details of this SPV are contained within the data room.

Download Brochure




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NET INITIAL YIELD:
5.78%
PRICE:
£10,000,000
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