Investment with assured 9% Net Yield

Investment with assured 9% Net Yield

Martin and Co (Stoke and Newcastle under Lyme offices) are delighted to be able to offer an opportunity to invest in a major local development with an assured nine per cent net yield for at least the first 3 years.  This is a blue-chip project aimed at one of the most lucrative sectors of the property market.

Keele House is a brand-new investment opportunity in the UK student accommodation sector, giving investors an opportunity to purchase a fabulous income-generating asset. With a huge shortage of quality, self-contained accommodation in the area, Keele House is set to deliver a unique and unrivalled option for students at an incredibly competitive price.

Student property continues to remain one of the best performing property sub-classes of the last 20 years. Its resilience to cyclical economic patterns has created a platform for investors of continued risk-aversion during the economic downfall: as student property values have stayed the same or increased, the number of accommodation spaces available to students is still failing to keep up with the growth in applications.

This will be a “hands-off” investment with all the tenancy management done by specialists in the field, CRM Students, which already manages more than 19,000 student beds across the country and is accredited by ANUK, a body recognised by all UK Universities, the Student Union and the government for defining a code of standards for student accommodation.

A developer specialising in building high quality student accommodation is to turn the currently empty Blackburn House off the Midway at Newcastle into 147 luxury studio apartments for pupils studying at either of the universities or the hospital complex. The self-contained studio suites which will be completed to a high standard and will be delivered fully furnished.  Each will feature a kitchenette and an en suite bathroom. There will  also be communal areas, a gym and secure storage for bicycles.

The landmark building will be renamed Keele House and the conversion should be completed a year from now in the fourth quarter of 2015.

Investors can buy the leasehold at £65,000 per apartment and are guaranteed a nine per cent return and five per cent will be paid on deposited funds until the work is finished and a rental income is being generated. With a purchase price of £65,000 the gross rent is £7,650 and after management deductions (£1,400) and ground rent (£300) the net income is £5,950.

The local marketing is being exclusively handled by Martin and Co and they welcome any questions from people who think this might be the ideal investment for them.

Mark Beckett, managing director of the Martin and Co in Hanley and Newcastle,  said he is delighted at the opportunity to work with such a prestigious project.

Mark said: “It is a wonderful accolade to have been chosen to market these properties and very exciting to be involved in a project like this which I believe will be unique in this area.

“Student accommodation has long been recognised as giving the best and safest returns in property for the casual investor and Keele House is aimed at people who have some money in the bank where it is earning almost nothing but who are looking for a safe haven investment, with no day-to-day involvement or management and which will provide a decent income.’’

Between Keele and Staffordshire universities there are almost 28,000 students and with those studying at the hospital the population is more than 30,000. Mark said: “From that number we are looking for less than 150 who want to live in superb, modern accommodation and no one expects that target will be hard to achieve!’’

 “With international student mobility constantly increasing and new legislation limiting the amount of approved HMO (houses of multiple occupancy), purpose-built student property is proving to be a reliable source for secure investments.

“In recent years, the demand for student accommodation has changed significantly. Students want to live and study in an environment which will support their chances of successfully obtaining their degree, they want to ensure their university experience is the best it can be and will no longer settle for below average living conditions.

“Keele House meets specific market demands and provides first class facilities within a convenient and  modern, student accommodation environment.’’

He added: “Student property is the perfect addition to any portfolio. With no cap on the number of students who can study in the UK and with numbers forecast to increase by 15 to 20 per cent it is a true long-term income-generating asset. Placed with traditional buy-to-let property, the sustainably high yield and hands-off qualities of student accommodation make it perfect for paying down other geared properties and keeping as an asset throughout retirement.’’

Please call Martin & Co on 01782 453001 to register your interest