Purpose-built student accommodation situated in central Southampton
Description
The subject property is situated on St. Mary’s Road, adjacent to its junction with Clovelly Road, approximately 0.5 miles north east of Southampton
City Centre. St. Mary’s Road is accessed via the eastern side of Charlotte Place roundabout. St. Mary’s Road lies in close proximity to the A3024
and A33 which are main spine roads through Southampton, providing access to the M271 and M27 at their most northern points. The Royal South
Hants Hospital is positioned 0.1 miles north of the subject. A mix of uses surround the property including office, residential and retail. The property
is situated opposite two of the largest developments of student accommodation in Southampton including Crescent Place and Liberty Point.
The property is situated 250m north east of Solent University Campus and 1.7 miles south of University of Southampton Avenue Campus. Unilink bus
services run from St. Mary’s Road, around 50m.
The subject property comprises of a 20th Century building arranged over 4 levels, constructed of brick with part pitched tiled roof and part flat roof. Glazing is UPVC double glazed. The property comprises of a ‘lock-up’ retail unit to the front with residential above. The residential accommodation is
accessed by a dual access door to the southern elevation. To the ground floor there is also associated bin and bike stores, W/C facilities and a laundry room. To the upper floors there are seven residential apartments (1 x studio, 4 x one bedroom and 2 x two bedroom).
The Opportunity
Students make up a large proportion of the population of Southampton. University of Southampton has circa 25,000 students and Solent University has approximately 10,500 foreign students.
The opportunity exists to acquire a fully income producing student block which are conveniently located, close to both universities and have been completed to a high specification.
The building is fully let with average room sizes of 29.8 sq m for St Mary’s Road. This is excessive with the average private en-suite student room size (outside London) of 13.41 sq m.
Guide Price
Offers are invited in the order of 1.4m, representing a gross yield of 10.18% and on a net yield basis (assuming estimated running and standard purchaser’s costs) of 8.53%.
The individual price reflects £109,000 a room (assuming £200,000 of value attributable to the retail).
Tenure
Freehold.
The units are individually let to students under Assured Shorthold Tenancy agreements. AST’s will be provided to interested parties upon request,
St Mary’s Road commercial unit is let to a local independent tenant on a new 20 year FRI lease at a rent of £25,000pa with 5 yearly upward only rent reviews.
VAT & Sale Structure
The sale price is exclusive of any VAT, which if applicable, will be in addition at the appropriate rate. The vendor holds the asset in a clean SPV and therefore there is the opportunity to purchase this company.
Viewings
All viewings can be arranged by appointment with Sole Selling Agents Savills.
AML
In accordance with anti-money laundering regulations, the successful purchaser will be required to provide identification documents upon request and without delay.