The Harlequin Centre, Paul Street, Exeter, Devon | Property for sale | Savills
Offers invited

The Harlequin CentrePaul Street, Exeter, Devon

  • Leasehold
Investment

Key features

  • Brownfield co-living development opportunity
  • Prime city centre location
  • Planning permission for two Co-Living (Sui Generis) accommodation blocks
  • Planning reference - 21/1104/FUL
  • Block 1-to provide for 180no. studios & 8 cluster flats with 48 cluster bedrooms
  • Block 2-to provide 133no. studios
  • 250 year long leasehold title registered under title DN511035
  • 1.76 acres (0.71 hectares)

A prime residential development opportunity

About this property

  • The Harlequin Centre is located in the heart of Exeter city centre, benefitting from a Sui Generis (Co-living) planning consent which can be delivered for the AY 29/30. It also has the advantage of a Russell Group university market, and is situated between The University of Exeter's main Campus and St Lukes campus.

    The Harlequin Centre is a former shopping centre, strategically positioned between Queen Street to the north east, Paul Street to the south east, the Iron Bridge to the south west and Northernhay Street to the north west. The shopping centre is currently vacant and in the process of being demolished in line with the implemented planning permission. Two retail units, 1 The Harlequin Centre and 21-22 Queen Street are to remain, and are currently tenanted, with the main vehicular access to the Council owned Guildhall Car Park, accessed off Paul Street to be retained.

    The Property is held under a 250 year leasehold title and is registered under title DN511035. The freehold title is owned by Exeter City Council, title number DN147487. A ground rent of £100,000 per annum is payable to the freeholder upon completion of the enabling works on site. The ground rent is subject to an upwards only rent review every 5 year at 2.5% of the residential rent plus 10% of the commercial rent received.

    The Harlequin Centre benefits from a Sui Generis (Co-living) planning consent comprising a total of 361 beds, with studios accounting for 72% of the units. A deed of variation has been agreed with ECC to remove the 20% affordable rent units on site, to be replaced by an off-site payment of £2,000,000 in lieu of affordable housing.

    This has a late stage review mechanism with a profit share above £13,000,000. The site also benefits from two operational retail units, both of which are let at a combined rent of £40,500 per annum, which will remain income producing throughout the development period and remain operational with the rent to rise upon completion of the development.

    The site is ideally located in the city centre providing access to Exeter High Street, including shops, bars, restaurants and historic sites of interest. The site is located equi distant from both the University of Exeter main Streatham Campus and the St Luke’s Campus, providing an ideal location for students looking for convenient access to both the University and city centre.

    Curlew provides a full service operational living sector asset creation and management platform, from asset acquisition/creation through to ongoing long term operational asset management, with fee alignment to investors’ income and capital returns.

Local information

  • The site is located in the city centre, 5 minutes from the major train station and within an 18 minute walk of the University of Exeter. The University is part of the prestigious Russell Group which has c.29,000 full-time students. The university has proved attractive to domestic and international students, with full-time student population increasing by c. 5% pa in the past 10 years. It is ranked 11th in the UK with 6.7 applicants per place. Exeter boasts two major campuses: the main Streatham campus near the city centre and St Luke’s medical campus.
  • Exeter's robust domestic and international demand underpins its global appeal, highlighted by placing as runner-up for the Times University of the Year award (2024). The University of Exeter’s Capital Strategy programme will see the university invest up to £430m to improve and deliver world class research and education, as well as provide exceptional teaching, learning and research spaces within the next 10 years.

Additional information

  • Due to a supply shortage in the PRS market, there is a strong opportunity for Co-Living, providing a greater choice for residents, offering Co-Living tenants numerous advantages, including the convenience of all-inclusive rent, alongside a built-in community.
  • The Co-Living sector is continuing to grow, with record numbers of units being delivered, however there is still a supply and demand imbalance, which coupled with a shortage of PBSA accommodation is allowing Co-Living to offer an alternative option for students seeking high quality and well amenitised living
  • According to the 2011 Census, Exeter had around 11,000 private rented sector (PRS) households, representing 22% of all households, with more recent Experian estimates indicate this has risen to just over 14,000 households, or 25% of all households. Experian Mosaic classification shows the geodemographic makeup of PRS in Exeter, showing the dominant group as Rental Hubs, accounting for 59% of all PRS households, compared to only 24% across the South West.
  • The Rental Hubs group is described as educated young households, typically in their mid-20's to early-30's, with working professional occupations, which are a primary target group of Co-Living units.
  • PRS households in Exeter are more affluent than the wider region. Median household income is just under £33,000, compared to £30,000 for those in the rest of the South West. Assuming 30% of gross income spent on rent, this allows households greater flexibility with capacity to spend around £800 more on rent over a year than the wider region.
  • Exeter PRS income distribution departs from wider regional trends, with households earning between £30,000-£50,000 accounting for 65% of those in PRS compared to 53% in the South West and wider GB.