Derby, DE1 | Investment Property for Sale | VES-DE1-005

Opportunity to acquire a mixed use student/commercial development in Derby city centre.

£1,850,000

Student/Commercial

VES-DE1-005

INITIAL INVESTMENT

£525,500

Based on

deposit: £462,500

stamp duty: £55,500

mortgage fees: £1,500

conveyancing fees: £6,000

GROSS RENT

£138,570

GROSS YIELD

7.5%

ADD TO FAVOURITES

The block

TENURE

Freehold

NO OF UNITS

6

TENANCY STATUS

Tenanted

FURNISHED

Part and part

TOTAL SQ FT

TBC

PRICE SQ FT

£0

Please note that this is an off-market opportunity that is available to qualified buyers only.

Please get in touch and quote the reference number above to speak to a member of our sales team who can advise on the information that will be required from you in order for us to be able to share more detailed and confidential information related to the opportunity.

Built in 2019, this three storey development comprises 4x cluster flats of 6-7 ensuite bedrooms (26-beds in total) on the first and second floors, with 2x commercial units on the ground floor.

The student apartments are fully let and generate gross rental income of £141,960 per annum with estimated operating costs of £28,390 per annum, providing estimated net rental income of £113,570 per annum. The clusters have been built to a modern and basic design which is aimed at a competitive price point for student lettings (circa £105 per week per bed). Both the first and second floors have 1x cluster flat of 6 ensuite bedrooms and 1x cluster flat of 7 ensuite bedrooms, with each bedroom approximately 10 sqm in size (apart from the 7th bedroom one on each floor which is larger at circa 14 sqm). The annual service charge budget of £28,390 comprises:

  • Management = £10,800
  • Insurance = £1,100
  • Internet = £1,920
  • Gas = £4,890
  • Electric = £3,600
  • Water = £1,740
  • Maintenance = £2,400
  • Cleaning = £960
  • Bin collection = £980

The commercial units are let to two tenants, both on 5-year fully repairing and insuring leases which commenced in 2019 and in total generate net operating income of £25,000 per annum:

  • Lease 1 = £15,000 per annum for 5 years from September 2019; and
  • Lease 2 = £10,000 per annum for 5 years from December 2019.

The aggregate estimated net operating income of the development from both the student and commercial units is therefore £138,570 per annum.

The development is ideally located in the city centre, in DE1, and all four of campuses of the University of Derby are within easy reach. It is:

  • A half hour bus ride and walk to the main campus at Kedleston Road (which is to the north on the outskirts of the city).
  • An 18-minute bus ride or 25 minutes walk to Britannia Mill campus.
  • An 18-minute bus ride or 28 minutes walk to Markeaton Street campus.
  • A 15-minute walk to One Friar Gate Square campus.

It is a 13-minute walk to Derby railway station and is on the doorstep to many local amenities, including the city centre’s retail shops, restaurants and bars.

The University of Derby boasts over 19,100 students (in the 2018/19 academic year), having increased in student numbers by over 20.1% from 2014/15, equivalent to a compounded annual growth rate of 4.7% (Source: HESA). Approximately 91% of students at the University of Derby are from the UK, circa 4.5% are from the EU and circa 4.5% are other (non-EU) international students. The University of Derby is recognised as being in the top 100 universities in the UK (Source: The Complete University Guide 2020).

The vendor is seeking offers in the region of £1,850,000.

Documents available on request, please contact for viewings or further questions.

The information relating to this property is supplied by the vendor and was the latest available information at the time of listing. Certain information may expire or become inaccurate over time.

Vesta makes no warranty as to the accuracy or completeness of the property listing or any associated information. All information should be reviewed by the purchaser and their solicitor.

About Derby, East Midlands

Derby is a city in the county of Derbyshire in the East Midlands of England. It is located on the banks of the River Derwent in the south of Derbyshire, around 15 miles west of Nottingham and 37 miles north east of Birmingham.

This area is serviced by Derby Midland railway station which is managed by East Midlands Trains. East Midland Trains operates a 2 train per hour (tph) over the Midland Main Line southbound to London St Pancras via Leicester and northbound to Sheffield. Other local routes are operated by East Midland Trains, with frequent services on the Nottingham – Matlock Derwent Valley Line and the Derby – Crewe via Stoke-on-Trent lines. CrossCountry run inter-regional services to Newcastle and Edinburgh Waverley northbound and Plymouth via Bristol Temple Meads and Reading southbound (both via Birmingham New Street).

Shopping in central Derby is divided amongst three main shopping districts, these include the Cathedral Quarter, the St Peters Quarter and the Intu Derby shopping centre. The Cathedral Quarter was Derby’s first Business improvement District and includes a large variety of shops, boutiques, coffee shops and restaurants. This district also includes the Derby Museum and Art Gallery and Derby Central Library. The largest of these districts is the Intu Derby shopping centre which is the main shopping centre in the city, with around 199 stores, a food court and the 12-screen cinema.

There are many job opportunities in industry in Derby, it is a centre for advanced transport manufacturing, home to the world’s largest aero-engine manufacturer Rolls-Royce and Toyota Manufacturing UK’s automobile headquarters is south west of the city at Burnaston. Bombardier Transportation are based at the Derby Litchurch Lane Works were for many years the UK’s only train manufacturer and therefore the city was known as the railway centre of the UK. Derby is also home to the Royal Crown Derby, which is one of the longest-established businesses in the city and produces porcelain since the 1750s. There is also Infinity Park Derby which is a business park specifically for aerospace, rail and automotive technology.

In this area there is also a selection of local schooling options which could make this location ideal for young families looking for educational institutions in walking distance for their children. The Beckett Primary School offers mixed-sex education to the age of 11 and for those looking for education for their older children there is The Kingsmead School, which educated to the age of 16.

Point of reference - not exact location,

Derby,

Derby,

England,

DE1 1SZ

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