Overview of Hastings Investment Opportunity

Overview of Havelock, Hastings PBSA/Holiday let option – due to be launched soon.

We are honoured to launch what we see as one of the most exciting developments we have come across, in a sought-after stunning seaside location, and taking advantage in the huge demand for both student and Holiday lets in an area that has staggering untapped potential.

Residential Estates are working exclusively alongside a multi award winning designer, architect and developer to bring a low cash entry stunning investment that will be a fantastic and very profitable addition to your portfolio, either for a first time or seasoned investor.

HASTINGS – The town The history rich town of Hastings retains the character and charm of a Victorian seaside resort.

Explore the Lanes and the passageways of the Old town, lined with vintage shops, boutiques and welcoming cafes. Small independent art galleries adorn the streets, selling local art. Take a trip down to the beach and pier and then visit the world famous black fish huts that populate the seafront, offering some of the freshest seafood imaginable.

Being on the sea, Hastings also offers some of the finest dining experiences and some fabulous pubs, it’s a stunning mix of old world with beautiful backdrops and every taste is catered for.

Please check out the links below for some of the finest eating establishments: Hastings Restaurants and Places to Eat in Hastings - olivemagazine Restaurants in Hastings: 10 of the best places to go | Great British Life Eat & Drink in Hastings (whatsoninhastings.com) THE 10 BEST Hastings Bars & Clubs - Tripadvisor HASTINGS AT A GLANCE: • Synonymous with the Battle of Hastings in 1066 between King Harold’s English and William the Conqueror’s Normans. The actual battle took place 3 miles outside of Hastings and that is now where the town of BATTLE stands, which is well worth a day trip.

• Discover the history of the Britain’s first Norman castle, wander through the ruins, take in the breath-taking views whilst exploring the remains of the dungeon and chapel.

• A seaside town and resort that developed during Victorian times and retains its old-world charms with seafront squares, the old pier, elegant parks, and plenty of entertainment for the young, including the underground skate park and best crazy golf in the UK. • The medieval Old Town is stunning, truly a throwback to time, lots of little passageways with independent cafes, eateries, boutique shops, antique shops, art galleries, inns, and restaurants – you can spend a day just exploring there.

• Hastings County Park nature reserve is a large area of woodland glens, beaches and cliff tops with stunning views.

• A burgeoning art scene is to be enjoyed.

• A trip up the cable car called the West Hill lift is not to be missed to take in the stunning vista.

• All this is within an hour and a half from London – an area they have called in London the new “Shoreditch on Sea” and an area that is not taking over from the mantle of Brighton when it was smaller and independent – this is an area of immense potential and stunning features 7 reasons to visit arty Hastings | VisitBritain PLEASE WATCH THE FOLLOWING VIDEO BELOW: Hastings | Attractions & Tourist Information | Visit Britain

The development: This is a very appealing proposition – the two strongest markets in the property investment sector have undoubtedly been the PBSA market and the STL/FHL markets – what are these: PBSA – Purpose Built Student Accommodation.

The rise of this as a serious investment property is staggering – put simply you have a property that has a constant demand, every year you get new students needing accommodation, so the cycle just continues, and this ultimately makes the property crash or recession proof from an investment angle. The student market is only growing, and this has been well documented, and it is the high end, affordable, well facilitated, self-contained student studios that are occupied first – where students can have their own space but enjoy the communal facilities on offer.

For PBSA to work you need areas where the University is growing but where the opportunity for students to stay in other options is negligible, this creates that demand vs supply advantage – and Hastings is one of those locations. In fact, Hastings Uni, which is a branch of the University of Sussex has NO other option of this kind. This is the first investor led PBSA to be developed, in the most advantageous location, and will be fully accredited to the University and will become their recommended student accommodation. This will give the buyer 40 weeks of constant income.

STL/HL - Short term let and Holiday let There is no denying the emergence of this market, it has revolutionised the property market with high yields, incredible demand and well-maintained properties that are regularly reported on and kept up to the highest standards. The “staycation” market is massive, and it has been well publicised, but it has always been here and has just got bigger and more popular with nightly rates for good self-contained studios around £120-£150 per night in locations like Hastings.

How does this fit into this opportunity? Simple – the student yearly term is approx. 40 weeks, and their term ends at the end of June and starts in September – which perfectly fits into the highest demand for self-contained properties during the high season with the highest demand and rates.

This property has dual permissions – and once the student has left for the term, the management team will go into the apartments and refresh (2-3 days) then they will be advertised on the Holiday let market in advance, so you get the best of both worlds – it is the perfect way to utilise the apartment and fully hands off.

The development itself: An existing building, which used to be part of the University, situated just a hundred yards from the University, 100 yards from the train station which gets you to London and Brighton and the South coast, couple of minutes’ stroll to the seafront and a 5-10 minute walk to the OLD town but you are in the Heart of the new town, so the tenant has everything at their disposal.

The development will have 106 units – 49 will be available to the investor market and 57 will be run as a fully functioning high end Hotel with all Hotel facilities, such as bars, communal areas, concierge, and a 3000sqft event and conference centre in the basement – in Hastings itself there are no other high end large Hotels and there are not any event and conference centres, so this fills a massive hole in the market.

The 49 available for sale will DIFFER from the Hotel rooms in that these have to be designed for dual purpose, so are totally self-contained as opposed to just Hotel rooms – they will have full facilities for cooking and studying with en suites, but all students will still have full use of the Hotel facilities. When it comes to the Holiday let market then these are more likely to be more popular as they offer those extra features.

The natural tourism and the event centre will bring instant bookings for the off-term period.

All the 49 units available for sale will have their own leasehold and offer no restrictions on resale down the line – they act in the same way as a PBSA, it just adds something a little extra to the deal.

There will be 2 different types of properties for sale: Self contained studio x 21 at £79,999 Self contained studio x 28 at £84,999 The slightly higher priced studios have a much higher ceiling and double level windows, so will command a slightly higher nightly rate and student weekly rate – but both offer the same yields.

The Hotel and student blocks are being developed and designed by Sean Cochrane of Cochrane design and his resume/CV is impeccable, from working on the home of Dame Helen Mirren to the Russian oligarchs in Mayfair – he is also responsible for the design and refurbishment of the Es Vive Hotel in Ibiza which was then sold to Lionel Messi (a CV and profile is available) but in the meantime here is a link to his website About | Cochrane Design The Hotel itself will be run under the Vive banner which not only had the Ibiza project but has two further projects in Menorca under way – if you want an idea of the quality if the brand then check this link out Hotel MiM Ibiza Es Vivé - Adults Only - Official Website (mimhotels.com) It cannot be underestimated in knowing you have a well respected developer and designer on the job, and in the below article you will see the designer, Sean Cochrane, mentioned by name in this article confirming Messi’s purchase of the Hotel after refurbishment he designed, organised and managed Messi buys Es Vive Ibiza refurbed by Cochrane design This build and development will have the very same eye for detail, which in turn will enable investors to get the very best rates and very best occupancies on the Holiday let side and instant demand for the long-term students.

Management This is a hands-off investment – for the 40 weeks for the student side, the University will do all the advertising and the students allocated an apartment.

For the Holiday let side, it will be then managed under the banner of the Hotel and their existing management side that is already looking after the Hotel side – you will then have the Hotel advertised on all the portals like booking.com, hotels.com, trip advisor, Airbnb, its own dedicated website and obviously available to walk ins.

Deductions Service charge for upkeep = £1500 per annum Management costs for the Holiday let side - £2,000 – this includes all laundry, clean linen, changeovers, labour and management of bookings Total deductions £3,500 per annum.

All apartments come FULLY FURNISHED Completions and build time The 49 studios will be ready for the student intake of 2022 – however there is a chance, given the team on the project and the experience that the development could finish in time to take advantage of some of the tourist season before the student intake, giving you a bonus income.

Payment Plan to Purchase £5000 on reservation 50% on exchange 50% on completion (minus £5000 reservation fee & 4% interest that is accrued during the build time on deposited funds)

Returns, profit and why to invest: Let’s get to the part that is really exciting, and let’s face it, why you are buying.

These figures are based on a £79,999k studio.

THE FIRST TWO EXAMPLES SHOW THE REVENUE SPLIT OPTION WITH LOW & HIGH NIGHTLY RATE SCENARIOS IN THE STL/FHL 1) THESE ARE OUR CONSERVATIVE ESTIMATES WHEN IT COMES TO THE NIGHTLY RATE 40 weeks x £140 per week PBSA = £5,600 *It is worth noting that most PBSA brings in £160 per week so this could be achievable.

11 weeks of Holiday lets (1 week for turnaround from PBSA and to get ready for PBSA again).

Nightly rate £105 per night as an average over 77 nights.

85% occupancy gross income = £6,545 per annum • Given it is absolute peak holiday season we actually expect a 90% + occupancy and if you look now there are VERY few rooms available anywhere in Summer.

Total booking income = £ 12,145 Deductions = £3,500 Net income = £8,645 per annum Net ROI = 10.81% Based on our experience with PBSA and Holiday lets rates will increase year on year and our year 3 predictions go up to 12.5% NET return on a cash investment.

2) THESE ARE ESTIMATES WHEN IT COMES TO THE NIGHTLY RATE WHEN WE HAVE USED OUR ANALYTICS CALLED DYNAMIC PRICING WHICH IS TOTALLY INDEPENDENT AND WORKS ON ACTUAL RATES IN THAT AREA AT THAT TIME AS AN AVERAGE 40 weeks x £140 per week PBSA = £5,600 *It is worth noting that most PBSA brings in £160 per week so this could be achievable.

11 weeks of Holiday lets (1 week for turnaround from PBSA and to get ready for PBSA again).

Nightly rate £135 per night as an average over 77 nights 85% occupancy gross income = £8,837.75 per annum • Given it is absolute peak holiday season we actually expect a 90% + occupancy and if you look now there are VERY few rooms available anywhere in Summer.

Total booking income = £ 14,435.75 Deductions = £3,500 Net income = £10,935.75 per annum Net ROI = 13.67% Based on our experience with PBSA and Holiday lets rates will increase year on year and our year 3 predictions go up to 16% NET return on cash investment.

We will also be offering a “comfort blanket” SECURED ASSURANCE option – and this will offer the following: 3) RENTAL ASSURANCE There will be an offer of a 3-year rental assurance which will be a NET rental assurance offered to the investor if they choose.

This is a payment each year that will give the investor a set amount each year based on the purchase price and will take care of all deductions.

Year 1 = 7% NET on purchase price Year 2 = 8% NET on purchase price Year 3 = 9% NET on purchase price You will not be able to transfer an option once taken.

Our thoughts: We feel we have found the perfect storm for cash only investments, where the strongest yield orientating markets work in one option at the best possible times. This is projected to become a ground-breaking development in what it offers and what it can give back, in a location where you do not have ANY competition and designed and developed by a multi award winning designer.

The projections not only highlight the very fine development but also its massive earning capabilities, from high debt free returns, commercially earned high resale values and profit and more importantly the best located development in the area, with the highest demand possible in the two most stable and fastest growing tenant markets in the investment sector.

What information we will provide when we launch in Feb: • Full forecasts • Full availability • Brochure • Graphs highlighting – 1. Income versus pay back on purchase (when will my purchase be paid off in full?)

2. Resale value when sold with set returns in place (proving growth is very evident) 3. Cumulative profit with income and resale value over a 10-year forecast (you will be staggered by the results) • Developer profile • Specification and CGIs • Drone footage • List of previous developments and developer CV • Floor plans • Developers vision .