Within walking distance of Teesside University, Rede House has been designed to provide the students of Middlesbrough with a higher class of accommodation than anything currently on the market. The building was originally used as office space and is being extensively converted into 230 studios, in addition to a host of communal facilities including; fully-equipped gymnasium, entertainment room, lounge, laundry room and secure bicycle storage area. The ground floor will remain as retail space and investors have the option of choosing a standard, premium or deluxe unit, depending on the level of investment required.
One of the most competitively priced investments on the market; Rede House is the perfect addition to any investment portfolio and offers up to 9.5% NET rental return for the first 2 years.
Knight Knox International student Development
Knight Knox International provides the information contained within this document as a general guide. This information does not constitute an offer or a contract and we (or anyone in our company) do not imply, make or give any representation, guarantee or warranty whatsoever relating to the terms contained within. Any intending investor must satisfy themselves as to the correctness of any of the statements, plans or images contained within. Images are for representational purposes only. The content contained within is correct adhering to the previous statement at the time of publishing.
Why Invest in Student
Continuing to outperform all other forms of property investment in the UK; private, boutique student residences are one of the most lucrative ways of expanding an investment portfolio, due to the stable yields and low void periods which are common for this type of property. The demand for high quality student accommodation is showing no signs of abating, as UK university places are still heavily oversubscribed with only 10 places available for every 14 applicants, placing university-owned accommodation under an increasing amount of strain, as they struggle to provide the standard of accommodation required in todayâ€™s market place.
This trend for a higher-standard of living is fuelled by the globalisation of the Higher Education market and the increase in the number of students applying to UK universities from outside of the UK.
By focussing on regional university locations like Middlesbrough, we are able to offer investors higher-than-average yields in areas that have a severe shortage of private, high-quality residences. Rede House is our latest boutique student project, identified as a prime investment opportunity and delivered by an experienced developer in the student accommodation market.
Students from the European Union and overseas currently account for over a sixth of the UKâ€™s student population, with the number of non-domiciled students studying at Higher Education institutions in the UK predicted to rise to 7.6m by the year 2025. Here at Knight Knox International, we pride ourselves on being considered specialists at selling boutique student accommodation to the private investor market, having successfully launched 23 student projects over the past 24 months alone.
Average yields for regional cities currently stand at 6-6.5% across the country, but by choosing to invest with Knight Knox International in Rede House, investors can receive 9.5% assured NET yields for two years. Fully managed and designed completely with students in mind, the project is due for completion in July 2014.
completed student developments to our name
UKâ€™s Premier Property Class Consistently outperforming all other forms of property investment in the UK, returns in the private student accommodation sector were recorded at an average of 9.6% in 2012, fuelling the continuing development of bespoke, boutique projects through specialist providers like Knight Knox International, to the private investor market. Property experts Knight Frank have estimated that universities will generate more than ÂŁ500m by 2016 through the disposal of their existing halls of residence, allowing studentâ€™s access to a far superior standard of accommodation that they would have previously. Attracted by higher-than-average yields, low void periods and on-site management companies, student accommodation is a completely handsoff investment and the perfect addition to any property portfolio.
Total capital investment in the sector more than doubled to
billion in 2012
All Core markets in the UK remain structurally undersupplied for Purpose Built Student Accommodation Knight Frank Student Property Report 2014
Investment Overview Investment Opportunity Rede House was formerly used as office space and will be extensively refurbished to reflect the standard of accommodation expected by today’s students Studio |
Premium Studio | £37,995 Deluxe Studio |
1-bed apartment | £43,995
Investment Breakdown from Year 3 Purchase Price: £35,995 Gross Rental Income: £4,840 * Maintenance Fee: £1,016.40 Management Fee: £415.80 Ground Rent: £150 NET Income: £3,257.80 NET Yield: 9.05% *Estimated rent based on £110 p.w for 44 weeks **Ground rent of approx. £150 per annum will be charged after the 2 year assurance period
Figures are based on forecasts provided by the developer and are subject to change. Any financial information provided in this document is intended as a guide and does not constitute a contract.
Annual NET rental income
Projected future asset value
Projected total value
Five year forecast after assured rental period
Example return on investment on the purchase of a studio unit
Why Invest In
One of the country’s best kept secrets Middlesbrough is a sculptural delight with innovative architectural exploits such as Temenos, a £2.7 million giant dual-ringed public art installation, and Middlesbrough’s transporter bridge, one of only three in the country, lighting up the town’s skyline. This cutting-edge look has enticed a host of businesses to operate from the town; in fact, Middlesbrough has seen the second highest growth in the country for the number of businesses within its boundaries, according to the latest Inward Investment Guide to England. Entrepreneurs also see it as an ideal launchpad to start their business, with Middlesbrough holding one of the highest business start-up rates in England.
Transport around Middlesbrough is incredibly seamless; the Middlesbrough Railway Station recently took the honour of International Station of the Year and currently ferries around 1.4m passengers annually around the country.
As the rental sector remains on its booming trajectory, the council have announced plans to build 6,885 additional houses between 2012 and 2029, to unlock housing and supply the demand from young professionals in the city.
With four shopping centres in the city and iconic venue, The Empire, playing host to a number of world-famous theatre shows and music acts, it is no wonder students consider Middlesbrough to be a haven, ensuring that purpose-built student accommodation in the town continues to produce strong letting figures.
An increasing amount of housing is needed for renters throughout Middlesbrough, meaning that students who previously lived in HMOs are moving to purpose-built student accommodation, as houses are freed-up to supply the thriving rental sector.
Rental Growth of
in regional cities Knight Frank Student Property Report 2014
Gaining university status in 1992, Teesside University’s ascent was anything but steady, quickly making the grade as the first modern university to scoop the University of the Year in the Times higher education awards in 2009. This investment has resulted in students rating the university’s facilities very highly, with 89% of students saying they were happy with the university’s library and learning resources in the latest national student survey. Students from overseas, who represent 5.6% of the total student populace, also rate facilities extremely highly, rating Teesside University’s library space as the best in the UK, according to the International Student Barometer 2012.
The university is also very savvy in terms of business, carving out strong connections with a number of businesses across the UK, which allows the University to offer hundreds of internships to graduates and placement opportunities to undergraduates, the hard work of which was recently noted by The Times, who have named the university as one of the six finalists in the Entrepreneurial University of the Year award.
Student population of over
Middlesbrough Map Locations in Middlesbrough
Distances to Major UK Cities
Middlesbrough Train Station | 5 minute walk
1. Newcastle | 39.6 miles
Teesside University | 5 minute walk
2. Manchester | 120.5 miles
Middlesbrough Library | 10 minute walk
3. Birmingham | 174.1 miles
Riverside Stadium | 15 minute walk
4. Glasgow | 189 miles
The Mall | 20 minute walk
5. London | 250.8 miles
You are required to pay a reservation deposit.
Once your Property Consultant has confirmed they have received your paperwork, you will need to instruct a solicitor. Your consultant will be on hand to help you with this should you require assistance, as we have a selection of recommended solicitors who are experienced in handling student accommodation investment transactions.
Once your unit(s) has been selected with the help of your property consultant, please complete the reservation agreement and return along with a copy of your passport, recent utility bill and your deposit. The bank transfer details will be found on the reservation agreement.
Your solicitor will advise you of the paperwork they will require from you.
Please return this promptly to reduce the risk of delays.
Your first installment payment will be made when you exchange contracts. Your solicitor will inform you when they have the date for exchange providing you with an adequate notice period, at the time of exchange you will also be required to sign and return your contracts. If you are unable to do this due to your location your solicitor will be able to act as your Power of Attorney. Please note that your solicitor may charge a fee for this service.
After you have exchanged contracts you will receive a welcome letter from the developer which will detail the future service they will provide and include all contact details.
Your final payment will construction completes.
Is the building built?
No, Rede House was formerly used as office space and will be extensively refurbished to reflect the standard of accommodation expected by today’s students
Am I buying as Freehold or Leasehold? 250 years Leasehold
What is the address of the site?
67-77 Corporation Road, Middlesbrough TS1 1LY
When will the building be completed?
Completion for Rede House will be in two parts with phase one to be completed September 2014 and phase two December 2014
Is there a rental assurance?
NET rental is assured from 9% for 2 years, from completion of the purchase
Can I do anything I want with my room?
No, each room will be leased back to the management company on a rolling agreement so that the whole building - in its entirety - can be let as student accommodation
What is the projected annual return after year 2?
Currently between 9% to 10% NET (conservative after running costs, management fee, service charges and utilities)
Is the sale handled by UK lawyers?
Yes, the seller solicitors are Myerson’s and the recommended solicitors for purchasers are TQ Property Lawyers. Both are experienced at handling student accommodation transactions
Is there a management company already in place?
Yes, the designated management and letting agent will be Fortis Students
Can I resell my unit?
Yes, you can sell at any time after exchange of contract. Knight Knox International has a dedicated resale site, ‘studentpodshop.com’ which offers investors an exit strategy for their investment
When is my rental income paid?
This is paid quarterly in arrears direct into your bank account from completion
Dunn House Setting the standards for student, leisure and residential development throughout the UK! Fortis Developments Ltd is one of the fastest growing development companies in the UK. The company was created to provide bespoke accommodation to meet the growing demands for this type of product.
Firmly established at the forefront of the industry, Fortis Developments Ltd is now one of the most experienced and extensive developers of student accommodation, luxury apartments and regeneration schemes in the UK. We undertake luxury student accommodation and regeneration projects in prime locations at key university sites nationwide. Along with our careful choice of locations, the cornerstones of our success have been a combination of creativity and functionality.
St Andrewâ€™s Court
About Knight Knox
We are a long-standing company (a Ltd company since 2004) with an excellent reputation
We have a global partner network of overseas agents and on-the-ground specialists
We have a large experienced team of over 30 staff, with a collective property experience of more than 200 years
We sell property in over 50 countries worldwide and have local expertise on the ground in every location
We have exclusive market-leading products that are hand-picked proven investments that sell in volume We cater to all types of clients, from first-time buyers to large investors, helping build property portfolios and establishing good income returns We are one of very few companies to experience â€˜full market cyclesâ€™
Most of all, our clients buy with us again and again because we are honest, experienced, professional and market the best opportunities.
All KKI completed developments
let for the 2013/14 academic year
www.knightknox.com +44 (0)161 772 1370 .24