GLOBE WORKS BIRMINGHAM - PRIME BIRMINGHAM PURPOSE BUILT STUDENT ACCOMMODATION SCHEME
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GLOBE WORKS BIRMINGHAM PRIME BIRMINGHAM PURPOSE BUILT STUDENT ACCOMMODATION SCHEME JANUARY 2021
Globe Works provides
a rare opportunity to
acquire a 520 bed PBSA
scheme within the heart
of Birmingham.
GLOBE WORKS | CUSHMAN & WAKEFIELD 02
INVESTMENT
OVERVIEW
AMENITIES An excellent opportunity to acquire
a significant operational student
accommodation building within
the heart of a thriving student city.
The property opened in August 2019 and comprises
520 student bed spaces arranged as 176 ensuite bedrooms
STUDENT LOUNGE FOUR SEPARATE RECEPTION/ EXTERNAL COURTYARD in cluster flats and 344 self-contained studios.
WITH STUDY SPACE STUDY ROOMS LOBBY AREA WITH WITH SPORTS AREA
STAFF OFFICES Exceptional student market which includes a total of
69,810 full time students across 5 higher educational institutions.
The city has three universities ranked in the top 100
within the UK; University of Birmingham, Aston University
and Birmingham City University.
Aston University and Birmingham City University are both located within
10 minutes walk of the scheme and account for 48% of the Birmingham’s
total student population.
STUDENT GYM CINEMA ROOM LAUNDERETTE STUDENT CYCLE STORE
Birmingham has experienced significant rental growth since 2013/14,
increasing by a minimum of 3.1% annually until 2019/20.
Despite the issues caused by Covid-19 Birmingham still achieved positive rental
growth between 2019/20 and 2020/21 with ensuite rooms increasing by 1.3%
and studios increasing by 2.9%.
Cushman and Wakefield’s calculation of the Birmingham Student: Bed ratio remains
positive at 1.9:1.
GLOBE WORKS | CUSHMAN & WAKEFIELD 03
GLOBE WORKS | CUSHMAN & WAKEFIELD 04
THE
OPPORTUNITY
THE KEY FEATURES INCLUDE: Prime operational student
accommodation scheme
BUILDING BEDS LOCATION
in the second largest
The property opened in August 2019
and comprises 3 high quality purpose
Globe Works provides a total of
520 beds split across 176 ensuite
The property is located in
Birmingham, within a short distance
university city in the
built student accommodation blocks bedrooms in cluster flats and to Aston University, Birmingham UK outside of London.
ranging in height from 4 to 9 storeys. 344 studio bedrooms. City University and University
College Birmingham.
SPECIFICATION COMMUNAL SPACE COMMERCIAL
The scheme offers an excellent Students benefit from over 877 sqm Two commercial units on the ground
specification, providing residents with a of communal space including a student floor of the property totalling
stylish and intimate living experience. lounge with study space, four meeting 307 sqm are currently being marketed
rooms, reception/lobby area, student under Class E (Commercial, Business
gym, cinema room, launderette, external and Services) of the use classes order.
courtyard with sports area and student
cycle store.
GLOBE WORKS | CUSHMAN & WAKEFIELD 05
ASTON UNIVERSITY NEWTOWN
10 min 5 min SHOPPING CENTRE
LOCATION
OVERVIEW
THE UNIVERSITY OF LAW
12 min 4 min
The property is located in the city of Birmingham fronting BIRMINGHAM CITY UNIVERSITY
Cliveland Street and is in close proximity to Aston University, 15 min 7 min
Birmingham City University and University College Birmingham.
The surrounding area is one of the most attractive areas for GLOBE WORKS
students when seeking private accommodation within the city.
UNIVERSITY COLLEGE
The city centre and flagship Bullring shopping centre, which BIRMINGHAM
offer a vast array of retail and leisure facilities, are located
JEWELLERY
within walking distance to the south of the property. 15 min 6 min
QUARTER
Birmingham has good road links with the city being THE UNIVERSITY
served by the M5, M6 and M42, whilst also having OF LAW ASTON
good rail travel (London is accessible in 90 minutes UNIVERSITY
from New Street Station) and air travel via Birmingham BIRMINGHAM SNOW HILL
International Airport which provides access to both 9 min 4 min
European and International destinations.
BIRMINGHAM
SNOW HILL
NEW STREET STATION
20 min 8 min
BIRMINGHAM
CITY UNIVERSITY
BIRMINGHAM
CITY CENTRE UNIVERSITY MOOR STREET
COLLEGE BIRMINGHAM BIRMINGHAM
13 min 6 min
CITY CENTRE
BULLRING &
BULLRING GRAND CENTRAL
20 min 8 min 10 min walk
BIRMINGHAM
GLOBE WORKS | CUSHMAN & WAKEFIELD 06
20 min walk NEW STREET STATION
SITUATION
THE UNIVERSITY GLOBE WORKS
OF LAW
ASTON
UNIVERSITY
BIRMINGHAM
CITY UNIVERSITY
UNIVERSITY CITY CENTRE
COLLEGE
BIRMINGHAM
BIRMINGHAM
SNOW HILL
BULLRING
NEW STREET
STATION
BIRMINGHAM
GLOBE WORKS | CUSHMAN & WAKEFIELD
MOOR STREET 07
UK STUDENT MARKET
HIGHLIGHTS
Despite the
challenges faced
throughout the
5.25 %
17 %
680,770 course of 2020 there
PRIME REGIONAL YIELDS OF THE TOTAL UK STUDENT POPULATION BEDS IN THE UK 2020/21 continues to be
ARE FROM NON-EU COUNTRIES
strong institutional
demand for UK
Purpose Built Student
Accommodation.
1.9m £6.1bn 450,000
FULL-TIME STUDENTS TRANSACTED IN THE UK INTERNATIONAL STUDENTS
PBSA MARKET IN 2020
GLOBE WORKS | CUSHMAN & WAKEFIELD 08
UK STUDENT MARKET
The UK remains one the largest and most liquid PBSA markets
in the world with transaction volumes of £6.1bn in 2020. Asset Date Beds Pricing NIY Price Per Bed
New Century Place
The fundamentals of the UK PBSA Despite the disruptions from Dec 20 270 £50.0m 5.60% £185,185
Reading
market remained strong throughout Covid-19, 2020 has seen record
2020, with the student demand pool PBSA transaction volumes of £6.1bn,
continuing to rise faster than the largely dominated by the sale of the Red Queen
number of new beds being delivered. iQ portfolio. This makes it the highest Dec 20 210 £20.75m 5.60% £103,571
Coventry
year on record, above the previous
best in 2015 where £5.79bn transacted.
Symons House
Jul 20 351 £50.08m 5.54% £142,687
Leeds
On a UK wide basis 24,799 beds The long-term strength of the market
were delivered for the 2020/21 is evidenced by the rental increases Crown House
Jul 20 355 £39.26m 5.92% £110,608
academic year, demonstrating the in student accommodation tracking Sheffield
appetite from developers and investors 16% above the rate of inflation since
to expand the market. 2014. There continues to be strong
investor appetite for the PBSA sector. True Student
Sep 19 607 £72m 5.50% c.£118,000
Glasgow
GLOBE WORKS | CUSHMAN & WAKEFIELD 09
BIRMINGHAM
OVERVIEW
1 2 3 4
Birmingham is the UK’s second The city is renowned as The city lies near the The city originally emerged
most populous city with over one of the main educational geographic centre of as a key location within the
1.15 million inhabitants and hubs of the United Kingdom, England at the crossing UK in the 18th century thanks
is the youngest city in Europe with 80,000 students points of the national railway to the industrial revolution
with more than 40% of its across 5 higher educational and motorway systems. era and the cities growth in
population found to be under institutions. The city also benefits from manufacturing capabilities.
the age of 25. Birmingham International
Airport, which offers travel
to global destinations.
5 6 7 8
Whilst the city remains Birmingham’s key employers The city hosts significant retail In terms of infrastructure
a key industrial location include, Rolls-Royce, Jaguar, and leisure offerings, including the city council has recently
within the UK, professional National Express, Sainsbury’s, the Bull Ring and Grand outlined plans for a
occupations make up Lloyds Bank and RBS. Central shopping centres £25 million regeneration of
24.4% of the Birmingham which when combined are the Birmingham’s city centre in
employment market, above UK’s largest city centre based advance of the Birmingham
the national average of shopping centre. 2022 Commonwealth Games.
21.9%, demonstrating a high
proportion of skilled labour
within the employment market.
GLOBE WORKS | CUSHMAN & WAKEFIELD 10BIRMINGHAM INSTITUTIONS
OVERVIEW
Full-time Student Growth Times Rank Full-time Student Growth Times Rank Full-time Student Growth Times Rank Full-time Student Growth Times Rank
Students (2013-2018) 2020 Students (2013-2018) 2020 Students (2013-2018) 2020 Students (2013-2018) 2020
12,210 28% 48 21,325 22% 96 29,835 15% 14 4,275 9% N/A
Aston University first opened in 1895 as the The university originally came together under the The University of Birmingham was established by University College Birmingham dates back to the
Birmingham Municipal Technical School, receiving City of Birmingham Polytechnic in 1971. It became Queen Victoria by Royal Charter in 1900 and was the 19th century, ultimately transferring to the higher
its Royal Charter in 1966 and later changing in name a university in 1992 and changed its name to UK’s first civic or ‘redbrick’ university. education sector in 2002 and receiving full university
to Aston University in 1997. Birmingham City University in 2007. status in 2012.
INVESTMENT
INVESTMENT INVESTMENT INVESTMENT
The University is in the midst of a major campus
The University has outlined its vision for the future The university has invested £340 million in their redevelopment. The development projects, part of The University has invested £130 million in their
within a Campus Masterplan. The masterplan details campuses and facilities over recent years including a ten year investment plan are creating new facilities campuses and facilities, including building McIntyre
investment in the public realm, medical school, main a £41 million extension at the City South Campus. on behalf of students, staff and the local community. House and Moss House, since 2014.
building and the students union.
GLOBE WORKS | CUSHMAN & WAKEFIELD 11BIRMINGHAM
MARKET DEMAND
MARKET DEMAND
The Birmingham market has seen 10% growth in the student
demand pool* since 2016/17, increasing to 46,570 students.
69,810 18%
Aston University has refocused its efforts on serving the local community, FULL-TIME STUDENTS GROWTH IN TOTAL STUDENT
which has resulted in a 45% increase in undergraduate student numbers. NUMBERS SINCE 2013/14
Birmingham City University has seen growth of 22% over the same
period, an increase of 3,820 students – with particularly strong
performance at postgraduate level for a post-1992 institution.
The University of Birmingham has seen 15% growth in student numbers
since 2013/14, driven largely at undergraduate level. 60% 21%
STUDENTS FROM INTERNATIONAL STUDENTS
The University of Birmingham has also seen a 19% increase in students
from outside the UK over the same period helping drive strong demand
OUTSIDE THE REGION ACROSS BIRMINGHAM
A mature developed
for bed spaces. market that has
remained healthy due
to continued strong
* C&W’s student demand pool calculation estimates the true number of students demanding
accommodation in Birmingham, excluding students not currently in PBSA in the West Midlands,
living at home, on placement or on part time courses.
demand pool growth
3 45%
UNIVERSITIES IN TOP GROWTH IN UNDERGRADUATE and well-located
100 WITHIN THE UK STUDENT NUMBERS AT
ASTON UNIVERSITY
PBSA products
GLOBE WORKS | CUSHMAN & WAKEFIELD 12BIRMINGHAM
MARKET SUPPLY
MARKET SUPPLY
There are currently The market is distinguished Birmingham is characterised
25,197 university owned and by a high proportion of private by an under supply of studios,
privately owned student beds sector PBSA, making up making up just 20% of beds in
across Birmingham. 72% of beds in the market. the market, low in comparison
to the UK average of 29%.
31% of the Birmingham 17% of the Birmingham * C&W Quality Assessment Key: Private sector
student bed market is under market is classified as room and facility quality rankings are assessed
nominations agreements with poor quality*, very high in out of five, 1 being the lowest quality and 5 being
higher educational institutions. comparison the UK national the highest. C&W consider all room/facility
average of 6%. quality rankings of 1 as poor quality.
The Birmingham market has performed consistently well
as one of the major developed markets, with rental growth
remaining positive despite increasing levels of supply.
GLOBE WORKS | CUSHMAN & WAKEFIELD 13BIRMINGHAM
MARKET SUPPLY
RENTAL GROWTH PRIME REGIONS RENTAL GROWTH
8%
Birmingham has been
one of the most consistent
performing prime regional 6%
markets with average rental
growth of 3.7% annually since
the 2013/14 academic year. 4%
2%
Out of the competing prime
regional cities only Manchester
and Nottingham have 0%
experienced higher average
growth over the same period.
-2%
Despite a backdrop of -4%
BIRMINGHAM COVENTRY GLASGOW LEEDS LIVERPOOL MANCHESTER
economic and political
uncertainty, caused in 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 7 Year Average
part by Brexit and Covid-19,
Birmingham has still achieved
positive rental growth in
2019/20 with ensuite rooms
increasing by 1.3% and studios
increasing by 2.9%.
GLOBE WORKS | CUSHMAN & WAKEFIELD 14ACCOMMODATION
SCHEDULE
Globe Works opened in
Room Classification Total Rooms by Type
August 2019 and comprises
3 blocks of PBSA ranging
Classic Ensuite 74
in height from 4 to 9 storeys.
With 520 beds across 10 room types Premium Ensuite 22
the property consists of 176 ensuite
clusters in 4 to 7 bedroom flats and
Classic Plus Ensuite 61
344 studio bedrooms.
The property offers an excellent Standard Ensuite 19
specification, providing residents with
a stylish and intimate living experience.
Standard Studio 125
With 877 sqm of communal space students
have access to; a student lounge with study
space, four meeting rooms, reception/ Classic Studio 98
lobby area, student gym, cinema room,
launderette, external courtyard with Premium Studio 46
sports area and student cycle store.
There are two commercial units on Deluxe Studio 26
the ground floor of the Property which
are currently being marketed under Classic Plus Studio 38
Class E of the use classes order and are
expected by to be let on fully repairing
and insuring leases. Premium Plus Studio 8
Deluxe Plus Studio 3
TOTAL 520
GLOBE WORKS | CUSHMAN & WAKEFIELD 15COMMUNAL
FACILITIES
190 STUDENT LOUNGE 29
LAUNDERETTE
SQ M WITH STUDY SPACE SQ M
107 FOUR SEPARATE EXTERNAL COURTYARD
SQ M STUDY ROOMS WITH SPORTS AREA
122 RECEPTION/LOBBY AREA 26
STUDENT CYCLE STORE
SQ M WITH STAFF OFFICES SPACES
57
STUDENT GYM
SQ M
26
CINEMA ROOM
SQ M
GLOBE WORKS | CUSHMAN & WAKEFIELD 16TYPICAL
FLOOR PLANS
GROUND FLOOR
Gym Laundry Meeting Office Cafe
Room
n
t io
p
ce
Re
Study Study
Room Room Cinema
Lounge/
Seating Area
Study
Room
Shop
Landscaped
Courtyard
Outdoor
Sports Area
KEY
Communal/Management Facilities
Retail
GLOBE WORKS | CUSHMAN & WAKEFIELD 17TYPICAL FLOOR PLANS TYPICAL ENSUITE CLUSTER LAYOUT GLOBE WORKS | CUSHMAN & WAKEFIELD 18
COMPETING
PBSA
Term Room Facilities
Scheme Operator Room Type Rent Per Week
(Weeks) Quality Quality
Fresh
Onyx Ensuite £145 - £172 44/51 4 5
Student
1 GLOBE WORKS
Studio £182 - £197 51
Staniforth Unite
Ensuite £150 - £156 45/51 4 3
House Students
2 4
Studio £194 - £194 51
Canalside
Homes for
Ensuite £127 - £173 44/48/20 3 4 2 5 ASTON
3
Students
3 UNIVERSITY
Studio £188 - £188 51
1
Bagot Street Collegiate Ensuite £146 - £187 45/51 4 4
4
Studio £185 - £185 51
Student
The Heights Ensuite £149 - £155 45/51 3 4
Roost
5
Studio £189 - £219 51
Source: Cushman & Wakefield Student Accommodation Tracker 2020/21
GLOBE WORKS | CUSHMAN & WAKEFIELD 19RENT
ANALYSIS
RENTAL ANALYSIS STUDENT INCOME
The graph below shows the range of marketed rents The table below shows the 2021/22 forecast term time income.
for the 2020/21 academic year. Globe Works is priced The rents have been provided by Nido and have been released online.
competitively within the market.
Room Classification Beds Term (Weeks) Rent Per Week
GLOBE WORKS – RENTAL ANALYSIS
£225 Classic Ensuite 74 45/51 £149/£145
£215 Premium Ensuite 22 45/51 £159/£154
£205
Classic Plus Ensuite 61 45/51 £154/£149
£195
Standard Ensuite 19 45/51 £146/£140
£185
£175 Standard Studio 125 45/51 £149/£145
£165 Classic Studio 98 45/51 £163/£155
£155
Premium Studio 46 45/51 £169/£164
£145
Deluxe Studio 26 45/51 £182/£174
£135
£125 Classic Plus Studio 38 45/51 £168/£159
ENSUITE STUDIO
Local Comparable Unweighted Average Premium Plus Studio 8 45/51 £178/£171
Globe Works Unweighted Average
Local Comparable Rent Range Deluxe Plus Studio 3 45/51 £184/£179
Source: Cushman & Wakefield Student Accommodation Tracker 2020/21
TOTAL 520
GLOBE WORKS | CUSHMAN & WAKEFIELD 20FINANCIAL MANAGEMENT COSTS
The Nido management budget (including 5%
OVERVIEW
management fee) for the 2021/22 academic year
is £1,100,678 per annum reflecting £2,117 per bed
per annum.
Operating Expenses Annual Per Bed
Staff (304,324) (585)
FORECAST STUDENT INCOME Utilities (205,000) (394)
The rents for the 2021/22 Academic year are summarised below: Marketing (92,527) (178)
Cleaning (88,786) (171)
Room Type Beds Term (Weeks) Rent Per Week Occupancy Total
Maintenance (68,956) (133)
Classic Ensuite 74 45/51 £149/£145 98.00% £506,533
Premium Ensuite 22 45/51 £159/£154 98.00% £158,372 Sales (40,807) (78)
Classic Plus Ensuite 61 45/51 £154/£149 98.00% £433,288 Internet (38,387) (74)
Standard Ensuite 19 45/51 £146/£140 98.00% £126,244 Bank Charges (25,885) (50)
Standard Studio 125 45/51 £149/£145 98.00% £851,792 IT (16,851) (32)
Classic Studio 98 45/51 £163/£155 98.00% £722,887
Site Resources (13,387) (26)
Premium Studio 46 45/51 £169/£164 98.00% £358,454
Experiential Marketing (10,676) (21)
Deluxe Studio 26 45/51 £182/£174 98.00% £215,384
Office Costs (4,573) (9)
Classic Plus Studio 38 45/51 £168/£159 98.00% £287,991
Premium Plus Studio 8 45/51 £178/£171 98.00% £64,889 Legal & Professional (1,755) (3)
STUDENT NET
Deluxe Plus Studio 3 45/51 £184/£179 98.00% £25,175 OPERATING Insurance (1,210) (2)
Av. Rent £155.71 98.00% £3,751,008 INCOME CoGS (677) (1)
Summer Income 323 6 £162.17 35.00% £110,000 The forecast Net
Total Operating Expenses
Operating Income (913,800) (1,757)
Ancillary Income £17,220 (Excl Mgmt Fee)
(NOI) for the 2021/22
Discounts 3.75% (140,663) academic year is
£2,637,029*. Management Fee (186,878) (359)
Total Student Revenue £3,737,565
Total Operating Expenses
* this figure excludes (1,100,678) (2,117)
(Inc Mgmt Fee)
the head rent
GLOBE WORKS | CUSHMAN & WAKEFIELD 21OWNERSHIP STRUCTURE
AND MANAGEMENT
OWNERSHIP STRUCTURE MANAGEMENT
Globe Works is currently managed
by the Nido Collection (Nido),
one of Europe’s leading student
housing companies with over
6,000 beds under management.
STRUCTURE TERM HEAD RENT
Long Leasehold (option to 999 years from 6 July 2017 Initial rent of £870,000*
re‑purchase the freehold
for £1 in 2064)
PAYMENT REVIEW FREQUENCY REVIEW MECHANISM
Rent is Payable in equal Annually RPI uplifts cap and collared
quarterly instalments at 5% and 1%
* We believe the current head rent to be £928,126.
Further information is available within the data room.
GLOBE WORKS | CUSHMAN & WAKEFIELD 22ADDITIONAL SERVICES INSPECTION
INFORMATION It is understood that services are available to the property,
although it will be the responsibility of the purchaser to
The property may be viewed by prior arrangement through
the vendor’s sole selling agents, Cushman & Wakefield.
ensure they are available and adequate for any future Prospective purchasers should be aware that inspections
use of the property. are made entirely at their own risk and no liability is
accepted by the vendor or their agent.
SDLT FURTHER INFORMATION
We believe the Multiple Dwelling Relief is available but A full information pack is available within the data room:
recommend independent advice is sought. https://estatecreate.com/Globe_Works
PROPOSAL SALE BY RECEIVERS
Cushman & Wakefield are instructed on the sale of this The Property is offered for sale by the joint LPA/Fixed
property – POA. Charge Receivers who act as agents for the vendor and
without personal liability. The Receivers are not bound
to accept the highest, or any, offer and can give no
representations or warranties including as to VAT.
GLOBE WORKS | CUSHMAN & WAKEFIELD 23FOR MORE INFORMATION:
ANDREW SMITH JACK SMART
M 07876 635 008 M 07793 149 911
E andrew.t.smith@cushwake.com E jack.smart@cushwake.com
Disclaimer: Important Notice Cushman & Wakefield gives notice to anyone who may read these particulars as follows: These particulars are prepared for the guidance only
of prospective purchasers. They are intended to give a fair overall description of the property but are not intended to constitute part of an offer or contract. Any information
contained herein (whether in the text, plans or photographs) is given in good faith but should not be relied upon as being a statement or representation of fact. Nothing in these
particulars shall be deemed to be a statement that the property is in good condition or otherwise nor that any services or facilities are in good working order. The photographs
appearing in this brochure show only certain parts and aspects of the property at the time when the photographs were taken. Certain aspects may have changed since the
photographs were taken and it should not be assumed that the property remains precisely as displayed in the photographs. Furthermore no assumptions should be made in
respect of parts of the property which are not shown in the photographs. Any areas, measurements or distances referred to herein are approximate only. Where there is reference
in these particulars to the fact that alterations have been carried out or that a particular use is made of any part of the property this is not intended to be a statement that any
necessary planning, building regulations or other consents have been obtained and these matters must be verified by any intending purchaser. Descriptions of a property are
inevitably subjective and the descriptions contained herein are used in good faith as an opinion and not by way of statement of fact. January 2021.You can also read
