FOR SALEPrime Student Residential Development Opportunity

EDINBURGH

HAYMARKET TRAM STOP

THE HAYMARKET (CRM)

FOUNTAIN PARK

IQ FOUNTAIN BRIDGE

CANAL POINT

UNIVERSITY OF EDINBURGH

PRINCES STREET

EDINBURGH CASTLE

FOUNTAIN BRIDGE

IQ EDINBURGH GROVE

ARRAN HOUSE

ORWELL TERRACE(NAPIER UNIVERSITY)

HAYMARKETTRAIN STATION

DEVELOPMENT

MORRISON CIRCUS

EXECUTIVE SUMMARY

Edinburgh is home to 47,000 students and four universities – University of Edinburgh, Napier, Herriot Watt and Queen Margaret University.

The student : bed ratio in Edinburgh is 3.3 , (2.1 ; 1 UK average) meaning that there is significant scope for development in the city.

Prime location adjacent to the Haymarket rail station and tram system.

104 high quality studios with ancillary accommodation including cinema, gym, common room, laundry, bike storage, meeting and study space.

Attractive rental packages offering rooms between £185 and £195 per week over 48 week contracts.

Total net operating income after costs of £708,025 per annum.

Proposals are sought from interested parties to participate in this prime student residential development opportunity with a target GDV of £11,800,000 reflecting a yield of 6% subject to contract. This could be a forward funding, JV or land sale.

Haymarket Yards will provide 104 high quality studios with ancillary accommodation including cinema, gym, common room, laundry, bike storage, meeting and study space.

STUDENT RESIDENTIAL SCHEMES

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Prime Student Residential Development Opportunity

EdinburghCastle

ScottMonument

University ofEdinburgh

Edinburgh Napier University

Heart Of Midlothian FC

St JamesCentre

WaverleyStation

Haymarket Station

Queen Street

Gardens

The Meadows

EDINBURGH

HAYMARKET YD

S

TRAM LINE

TRAM LINE

Holyrood Park

A7 S

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BR

IDG

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A7 C

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A8 HAYMARKET TERRACESHANDW

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WATERLOO PLACE

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A70

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DMELVILLE DRIVE

A70

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MORRISON STREET

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QUEEN STREET

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DUNDEE STREET

FOUNTAINBRIDGE

A90 QUEENSFERRY ROAD

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24 MINS

29 MINS

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LOCATION

Edinburgh is a capital city of global recognition. It is the 7th largest city in the UK, with population of 492,680 (2014) boasting the strongest economy of any city in the UK outside of London and is one of the fastest growing cities in Europe. It is also one of the largest student markets outside of London with four established universities and approximately 47,000 full-time students excluding Edinburgh College which attracts a further 25,000 students.

There are 23 major festivals held throughout the year in Edinburgh with c.5 million attendees. The summer festivals attract up to 4 million visitors annually so summer occupancy is notably high across the city with rents often at a premium.

Demand for bedrooms is strengthened by the city’s strong language school market operating primarily during July and August.

Situated on the east of Scotland, Edinburgh sits on the main East Coast railway line, with direct connections to London and access to the wider UK road and rail network. Edinburgh International Airport is 25 minutes from central Edinburgh offering direct flights to destinations including London, Manchester, New York, Paris, Madrid, Berlin, Dublin, Rome, Amsterdam and Zurich.

SITE PLAN

SITUATION

Haymarket Yards is a few minutes from Edinburgh’s West End and conveniently situated between the University of Edinburgh and Edinburgh Napier University. The Haymarket provides some of the capital’s best attractions, with a wealth of popular bars, restaurants and quirky shopping streets nearby.

Haymarket railway station is the focal point of this busy transport hub providing busy commuter services to Glasgow and Fife, as well as long-distance services to England, Inverness and Aberdeen.

Edinburgh Trams’ Haymarket stop is located adjacent to the development and provides connections to the West of Edinburgh terminating at Edinburgh Airport and East to the City Centre.

There are local bus connections to and from the Interchange stop on nearby Haymarket Terrace.

A major mixed use scheme has commenced on The Haymarket (tHe). The development is one of Edinburgh’s biggest commercial projects of the last 10 years and includes approximately 404,000 sq ft of office, retail and leisure, 360 hotel beds, 320 car parking spaces and significant improvements to the public realm. This will further underpin the location as a major destination for residents, employers and their workforce.

GLASGOW

PRESTWICK

Edinburgh

DUNDEE

ABERDEEN

INVERNESS

STORNOWAY

BENBECULA

BARRA

CARLISLE

M8

M73M8

M9

42

43

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301

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A6

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A1107

A698

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A712

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A760

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(A92

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A836

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A97

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A77

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A811

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A703

A72

A1

A697

A697

A1068

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A721

A68

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A75

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A77

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A78

A71 A71

A76

A70

A941

A95

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A90

A93

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A92

A92

A90

A93

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A78

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A83

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A73

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A86

A87

A87

A82

(A850) A87

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A830

A9

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A87

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A74

A7

DingwallBuckie Banff

Turriff

Macduff

Ellon

Thurso

Wick

Banchory

Brechin

Blairgowrie

Pitlochry

Dunbar

Eyemouth

Alnwick

Amble

Hawick

HexhamBramptonCastle

Douglas

Langholm

NewtonStewart

Biggar

MoffatMaybole

Mauchline

Cumnock

New Cumnock

Peebles

Largs

Millport Kilbirnie

Rothesay

Oban

Lochmaben Lockerbie

Dalbeattie

Kirkcudbright

Jedburgh

Girvan

Annan

Kelso

Stonehaven

Keith

Inverurie

Lossiemouth

ForresNairn

Tain

Invergordon

Wigton

Alness

Campbeltown

Inverness

Arbroath

Forfar

Bo'ness

Grangemouth

CowdenbeathKirkcaldy

Glenrothes

St Andrews

Dunoon

PortGlasgow

Gourock

Helensburgh

Alloa

Musselburgh

Dalkeith

Carluke

Motherwell

Larkhall

Ayr

Prestwick

Irvine

Troon

Kilwinning

Ardrossan

Johnstone

Kirkintilloch

Dumfries

Airdrie

Cumbernauld

Falkirk

BonnyriggLivingston

Stranraer

Berwick-upon-tweed

Perth

Peterhead

Fraserburgh

Elgin

Montrose

Fort William

Dunfermline

Dundee

Greenock

Carlisle

Kilmarnock

East Kilbride

Hamilton

Clydebank

Stirling

Aberdeen

EDINBURGH

GLASGOW

M74

M80

M90

M90

Edinburgh is a capital city of global recognition, boasting the strongest economy of any city in the UK outside of London and is one of the fastest growing cities in Europe.

Haymarket Yards is a few minutes from Edinburgh’s West End and conveniently situated between the University of Edinburgh and Edinburgh Napier University.

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Prime Student Residential Development Opportunity

DESCRIPTION

Haymarket Yards comprises 104 studio rooms built over part 4 and part 7 floors.

All studios will benefit from the buildings shared communal facilities:

• Reception desk and seating area at main entrance withpost boxes and intercom to all rooms.

• 8 person lift to all floors sufficient to accommodate wheelchair access.

• Managers office for day to day running of the building.

• Separate covered bike storage area with easy access to Haymarket Yards street.

• Shared common room/lounge with contemporary seating & leisure facilities e.g. pool table and large wall-hung flat screen.

• Gym room with equipment.

• Cinema room with state of the art projection and sound system.

• Laundry room with separate washing machines & dryers.

• External landscaped garden areas with seating.

• All communal space to be of a contemporary design.

• Ground floor WC.

• Refuse area.

INTERNAL SPECIFICATION

All studios and DDA units to comprise the following specification:

• Three quarter bed with quality sprung mattress.• Under bed storage.• In built book cases above the bed.• Fully fitted wardrobes with chrome hanging rail.• 1 no. full height wall hung mirror.• Flooring to be high quality vinyl.• Ergonomically designed study areas with ample sockets.• Blackout blinds.• Aluminium part opening double glazed windows.• High quality integrated down lights with LED low energy

bulbs.• Wall-hung heater centrally controlled with boost button

supported by highly efficient Combined Heat and Power Unit (CHP) reducing operating costs.

• Telephone / intercom entry system for guests/visitors to contact studio.

• Stylish contemporary colour scheme.• Glass Reinforced Plastics (GRP) en-suite bathroom pods.

• Contemporary WC with soft close toilet seat and push button flush.

• Contemporary wall hung basin with chrome tap and chrome waste.

• Vanity mirror and granite storage shelf, with towel rail and soft focus lighting.

• Full Wi-Fi throughout.• High quality kitchen cabinets with contemporary chrome

handles.• Integrated 4 ring ceramic hob.• Integrated microwave / grill / oven.• Stainless steel integrated sink with single tap.• Integrated fridge / freezer.• Highly durable laminate work top.• Laminate splash back in complimentary colours.• Breakfast bar area with seating.• Two seater sofa.

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Prime Student Residential Development Opportunity

EDINBURGH STUDENT ACCOMMODATION MARKET

There are four universities in Edinburgh, with the University of Edinburgh being by far the largest in the city with nearly 25,000 students. Edinburgh Napier and Heriot Watt are of a similar size, whilst Queen Margaret is relatively small.

University of Edinburgh

Edinburgh Napier University

Heriot Watt University

Queen Margaret University

FT student population 24,975 10,460 8,695 3,525

CAGR 2008-2013 3% 0% 3% 1%

Number of international students 6,495 985 2,050 225

% of international students 25% 9% 24% 6%

Change in UCAS applications 2011-2014

26% 4% 15% -4%

UCAS app : accepts ratio 10.2 7.7 8.3 8.1

Times Rank 2016 22 93 38 96=

THE UNIVERSITY OF EDINBURGH

The University of Edinburgh is the sixth oldest in the English speaking world and is ranked 17th in the world by the QS World University Rankings. It is rated 4th in the UK for research power by the Research Excellence Framework and is a member of the Russell Group of elite UK universities.

The student population has grown at a rate above the UK average in total as well as across all levels of study. The total number of students amounted to 24,945 in 2013/14. Over a 5-year time span the number of students from outside the region increases by 27%, which is positive in terms of demand for purpose-built student accommodation.

Applications to the University of Edinburgh are significantly higher than the national average, at 9.5 per place in 2014 reflecting the Universities Global standing.

The university consistently performs well in the university rankings tables and is currently ranked 22 by The Times ranking table 2016.

EDINBURGH NAPIER UNIVERSITY

Edinburgh Napier University was founded as a technical college in 1964 and gained university status in 1992. The University is named after John Napier, the inventor of logarithms and the decimal point. Napier University was awarded the Queen’s Anniversary Prize for Higher and Further Education in 2009.

The university currently recruits 78% of its students from the UK, slightly above the national average, but a large number of students are from the EU (13%), a figure over double the national average, again providing good demand for purpose built accommodation.

The university received 18% more applications in 2014 compared to 2008, reflecting the university’s increase in popularity, and is currently ranked 97th in The Times ranking table 2016.

HERIOT-WATT UNIVERSITY

Heriot-Watt University was established as the School of Arts Edinburgh in the 1820s and was awarded university status in 1966. It is currently divided into 6 schools and operates out of a parkland campus in the South West of Edinburgh.

The university has a significant proportion of postgraduate students (24%) which is higher than the national average (18%). Student number growth in recent years has been extremely healthy.

The University received 71% more applications in 2014 compared to 2008, reflecting the institutions growing popularity among students and the university is currently ranked 41st in The Time ranking table.

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Prime Student Residential Development Opportunity

DEVELOPMENT TEAM

Developer - Scape Homes

Scape Homes has successfully completed several high quality student and first class residential accommodation schemes. Typically these were taken through planning application and the entire development process from main contractor selection through the build process to timely practical completion and snagging.

Contractor - TBC

Professional Team

Project ManagerMACE Group64a Queen Street, Edinburgh EH24NA

Planning ConsultantScott Hobbs Planning24 Stafford St, Edinburgh EH3 7BD

ArchitectMcLean Architects29 Eagle Street, Glasgow G4 9XA

EngineerCurtins1a Belford Road, Edinburgh EH4 3BL

MANAGEMENT

The purchaser will have the flexibility to appoint their own managers.

TAX

We understand the site is elected for VAT purposes.

PLANNING

A detailed planning application has been submitted and it is anticipated a planning consent will be granted by end of 2016 /early 2017.

TENURE

Feuhold.

SUPPLY

The supply of student bed spaces in Edinburgh is 11,587. The vast majority of bed spaces in the City are provided by universities, which means that rents have remained relatively restrained in Edinburgh in recent years, with the City Council reluctant to approve planning applications for purpose built bed spaces.

Within Haymarket, on West Park Place, CRM are offering studios of comparable size and specification at rents between £175 and £190 per week over 44 and 51 weeks. A short distance away at Fountainbridge, iQ are offering large studios at £185 per week over 50 weeks. The Student Housing Company are letting classic and premium studios in their Arran House scheme on Western Approach at rents of £199 and £219 per week over 43 weeks.

FUTURE DEVELOPMENT

The student : bed ratio in Edinburgh is 3.3, meaning that there is significant scope for future development in the city. However, due to the historic nature of Edinburgh securing a site and planning permission is constrained. Consequently the private sector has a relatively small presence, with only UNITE, Mansion and IQ having a significant number of beds.

INVESTMENT CONSIDERATIONS

n Edinburgh is home to 47,000 students and four Universities;University of Edinburgh, Napier, Herriot Watt and Queen Margaret University.

n Prime location adjacent to the Haymarket rail station and tramsystem.

n 104 high quality studios with ancillary accommodationincluding cinema, gym, common room, laundry, bike storage,meeting and study spaces.

n Available for the 2018 academic year.

n Attractive rental packages offering rooms between £185 and £195 per week over 48 week contracts. A gross income of £926,425 per annum.

n Total net operating income of £708,025 per annum after allowing for operating costs of £2100 per annum per bed.

n Proposals are sought from interested parties to participate inthis prime student residential development opportunity on one of the following bases:

- The preferred structure would be by way of a full funding orforward commitment based on practical completion for theacademic year 2018/2019 and a potential gross developmentvalue in the order £11,800,000. On the anticipated net income of £708,025 per annum, this reflects an initial yield of 6%. The transaction may be structured to provide Stamp Duty Land Tax (SDLT) savings.

- A Joint Venture on a basis to be agreed.- A sale of the site with or without a profit share.- Acquisition of Scape Homes HM Ltd, an SPV company which

holds the property.

Scape Homes Aberdeen development

Edinburgh is home to 47,000 students and four Universities - University of Edinburgh, Napier, Herriot Watt and Queen Margaret University.

Prime Student Residential Development Opportunity

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FURTHER INFORMATION

Mike MitchellCushman & Wakefield1 Marsden StreetManchester, M2 1HWTel: 0161 455 3778mike.mitchell@cushwake.com

Simon LoweCushman & Wakefield1 Marsden StreetManchester, M2 1HWTel: 0161 455 3745Email: simon.lowe@cushwake.com

Neil KirkCushman & WakefieldOne Edinburgh Quay, 133 Fountainbridge, Edinburgh, EH3 9QGTel: 0131 222 4554Email neil.kirk@cushwake.com

MISREPRESENTATION ACT:Cushman & Wakefield Copyright 2016. Cushman & Wakefield gives notice that: These particulars are set out as a general outline only for the guidance of intending purchasers or lessees, and do not constitute any part of an offer or contract. Details are given without any responsibility, and any intending purchasers, lessees or third parties should not rely on them as statements or representations of fact, but must satisfy themselves by inspection or otherwise as to the correctness of each of them. No person in the employment of Cushman & Wakefield as any authority to make any representation or warranty whatever in relation to this property. Purchase prices, rents or other prices quoted are correct at the date of publication and, unless otherwise stated, exclusive of VAT. Intending purchasers and lessees must satisfy themselves independently as to the incidence of VAT in respect of any transaction relating to this property.

Edinburgh images from Marketing Edinburgh. www.marketingedinburgh.orgDesigned and produced by Creativeworld. T 01282 858200.

EDINBURGH