Liverpool

LIV

ERPO

OL

Luxurious student accommodation in Liverpool city centre

Less than 10 minutes walk from two major universities

Five year leaseback in place providing 8% net yields

Complete turnkey solution: no overheads to worry about

231 double en-suite rooms starting from £54,950 ($88,650 / €64,750)

Facilities include wifi, gym, 24hr security, bike storage & communal lounges

Developer & property manager with proven track record in the student sector

Completion in Q3 2015

Executive Summary

Five year leaseback in place providing

8% net yields

The United Kingdom has the sixth largest economy in the world with a GDP of $2.5 trillion dollars.

Important industries include engineering, chemicals, electronics, motor vehicles, aircrafts and financial services.

The UK has a diverse economy, an independent currency, strong domestic markets, the ability to borrow cheaply and the capability to implement well thought out reforms.

Demand for rental accommodation is the highest it has ever been with 1.2 million more households renting in 2011 compared to 2006.

Real estate planning laws are strict and the rental markets in major cities are both strong and sustainable, providing investors with the ability to purchase cash flow positive properties.

The UK university sector has an annual income of more than £20 billion and employs approx 170,000 staff.

There are almost 2.5 million university students in the UK.

British universities have a strong reputation internationally due to their long history and continuous stream of world class research output. The University of Cambridge, for example, has produced 85 Nobel Laureates to date - more than any other university in the world.

Liverpool is the fourth largest city in Britain and is home to three major universities with a student population of almost 70,000.

2.5 million university students in the UK

UK – Quick Economic Facts

With a modern open economy and a number of world class universities, the UK is very well placed to take advantage of the increasingly global student marketplace.

There remains a perception that a British university degree is more prestigious than equivalent courses in many emerging economies. The UK is now the world’s second largest destination for international students and its global share has increased from 11% to 12% in the past 10 years as the USA´s has dropped from 28% to 20%.

The UK University system remains heavily oversubscribed with only 10 places available for every 14 applications and an 8% increase in student numbers in the past 5 years.

Additionally, the development of purpose built student accommodation has not kept pace with the growth in students with most private operators reporting 99% occupancy for 2011/2012. There is unquestionably a structural undersupply of purpose built student accommodation in the UK.

The UK Student MarketInternational students arriving in the UK continues to grow with overseas students now accounting for a sixth of the total UK student population. Attracted by high quality English language degrees and a weak pound, the proportion of international students is expected to continue growing.

With competitive prices and strong yields, student property investments are secure long term investments. Whatever economic crises might come our way in the next few years, the following fact will not change: a high quality and well managed student residence in a popular university city will experience a high demand. In a boom and in a recession, there will always be students and they all want modern, comfortable and convenient accommodation.

In conclusion, universities in the UK are becoming increasingly commercial and are evolving courses to attract the best overseas talent. Investors in student accommodation are purchasing assets that are underpinned by solid long term global trends in student mobility.

UK University FeesThe UK university sector has undergone significant changes recently with the introduction of student fees in October 2012. Deep cuts in government education subsidies has resulted in average tuition fees for local British students increasing from just over £3000 per year to between £6000-£9000 per year (the maximum allowed). Most students pay these fees via student loans.

These special student loans are structured in a way that means graduates are not required to repay them until they start earning at least £21000 per year. Repayments are on a sliding scale, so that the more a student earns, the larger their monthly repayments.

There are no indications that these changes will result in a drop in overall university places as the market remains significantly oversubscribed. Importantly, overseas students attending UK universities will generally not be affected by these changes, as they have always paid tuition fees (which are competitive on a global scale).

A six-storey building located on one of Liverpool’s busiest high streets, The Edge has been designed to offer luxurious accommodation to students while providing investors with a range of options to choose from.

It is comprised of 231 double en-suite rooms, it is furnished to a high standard and offers residents a wide range of communal facilities and amenities.

Set into clusters with shared kitchen and lounge facilities, each en-suite double room is fitted with an LCD TV and Freeview box.

The EdgeStudents living at The Edge can take full advantage of the high-spec facilities available including; a fully-equipped gymnasium, keyless entry system, free WiFi throughout the building, bike storage, communal lounge areas and access to a private landscaped courtyard.

On the doorstep of Liverpool John Moores University (24,000 students) and only a 5 minute walk from the University of Liverpool (30,000 students), this location is extremely rentable.

Within a five minute walk of two major

Universities

The Edge is made up of 231 units spread across 6 storeys. There are 6-7 kitchen/lounge areas on each floor which are shared by the units surrounding them. All studios will have either city views (east, west or south) or inner courtyard views.

Financial BreakdownBelow is an investment example for an ensuite double room:

Double Room with En-Suite (prices in GBP / USD / EUR)

Purchase Price £54,950 $88,650 €64,750

Annual Rental Income £4,396 $7,092 €5,180

Net Yield 8% 8% 8%

5 Year Capital Growth 3% Conservative 5% Expected 7% Buoyant

Market Price 2013 £54,950 £54,950 £54,950

Market Price 2018 (estimated) £63,700 £70,130 £77,070

Accumulated Rental Income £21,980 £21,980 £21,980

Total Profit(Asset Value + 5Yr Rental Income) £30,730 £37,160 £44,100

Total return on cash invested 56% 68% 80%

* USD and EUR values are approximate

Business Growth

Awarded the prestigious Capital of Culture award in 2008, Liverpool City Council and local businesses have worked long and hard to build on this legacy and investment in the city is high, with projects worth over £386m completed in 2011. This includes 1million sqft of new office space and huge growth in both the professional and financial service sectors.

In addition to commercial and retail investment, the historic docklands area, one of the largest group of Grade I listed buildings in the UK, has recently been restored to its former glory, in conjunction with a fantastic new £1bn development, Liverpool ONE.

Student life

A true haven for students, Liverpool is simply bursting at the seams with the amount of bars, restaurants, shopping centres, clubs and live music venues that it has to offer.

With over 160 high-street brands, cafes and restaurants to browse through, Liverpool ONE is the ultimate shopping experience, whilst CavernWalks, Bold Street and the MetQuarter are the destination of choice for vintage boutiques and quirky independent shops.

Liverpool’s three Students Unions are all within walking distance of each other and with the world famous Cavern Club on their doorstep, students in Liverpool are guaranteed a fantastic night out.

Situated on the North West coast of England, Liverpool has great links with all major modes of public transport both into and out of the city, including bus, tram, plane, train and ferry. John Lennon Airport is a mere 20 minutes from the city centre and the bright lights of Manchester and London are just a train ride away.

Why Invest in Liverpool?A vibrant and dynamic city with an illustrious 800-year heritage, Liverpool is one of the oldest university cities in the UK, attracting over 70,000 students annually to study in the famous halls of its iconic institutions; the University of Liverpool, Liverpool John Moores University and Liverpool Hope University.

over £4 billion has been spent on Liverpools regeneration

£386 millionworth of new projectscompleted in 2011

Established in 1892, the University of Liverpool is one of the UK’s top researchled universities and has over 30,000 students, pursuing over 400 programmes, spanning 54 subject areas.

Located only five minutes’ walk from Liverpool city centre, the main campus occupies over 100 acres and contains 192 non-residential buildings that house 69 lecture theatres, 114 teaching areas and state-of-the-art research facilities.

The university has recently invested £3.5m to modernise the campus, including new landscaping, paving, lighting and street furniture, in addition to a newly installed £20m ‘green’ heating system.

Originally a small mechanics institution, which grew over the years by merging with other smaller colleges to become Liverpool Polytechnic, Liverpool John Moores University (LJMU) was eventually established in 1992 – a shining example of the UK’s new generation of universities.

Comprised of three main campuses, the university currently has over 24,000 students and is currently investing over £20m on a brand new site, focussing on specialist teaching and research laboratories.

LJMU is home to the World of Work (WOW) programme, which is endorsed by the FTSE 100 Index of companies and leading business organisations including Sony, Marks & Spencer and GKN Aerospace.

University of Liverpool

Liverpool John Moores University

10

London Road

Hunter Street

St Anne Street

Byro

m S

tree

t

Leeds Street

Leeds Street

King

Edw

ard

Stre

et

Bath Street

New Q

uay

The Strand

New Islington

Islington

Erskine Street

Lim

e St

reet

St George’s Place

St John’s Lane

Whi

tech

apel

Dale Street

Tithebarn

Street

Hatton Garden

Vauxhall Road

Water Street

London Road

London Road

Anson St

Dau

lby

Stre

et

Pembroke Place

Brownlow Hill

Brownlow Hill

Hanover Stre

et

Lime Street

Great Charlotte St

Royal LiverBuilding

CunardBuilding

DockO�ce

LiverpoolLime Street

Liverpool One

City Centre

Liverpool JohnMoores University

University of Liverpool

The RoyalLiverpoolHospital

James Street(Liverpool)

Moor�elds

BBBatath h Sh

SStrtretreeetet

ton

ndon London Roa

Hun

5

rand

Lond

n

Within walking distance to all localamenities including bars, restaurantsand clubs. Major landmarks include:

O2 Academy (5 mins walk)

University of Liverpool (5 mins walk)

Liverpool Central Library (7 mins walk)

Liverpool Lime Street Train Station (8 mins walk)

Liverpool John Moores University (10 mins walk)

Liverpool ONE shopping centre (17 mins walk)

Liverpool

Once your unit(s) has been selected with the help of your property

consultant, you need to complete a straightforward reservation agreement and return it along with a copy of your passport and a recent utility bill.

You are required to pay a reservation deposit (£5000) & reservation fee

(£1800)

Once your property consultant has confirmed they have received your

paperwork you will need to instruct a solicitor (lawyer). We will be happy to recommend a reputable and independent firm who has handled hundreds of student accommodation transactions

Your solicitor will advise you of the paperwork they will require from

you. Please return this promptly to reduce the risk of delays.

Purchase ProcessYour 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.

Your first payment installment (50% less deposit) will be made when you

exchange contracts.

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 (50%) will be due when construction completes.

The total closing costs, including the reservation fee and all legal fees will

be approx £2750 / $4300 / 3200.

1 5

6

7

89

2

3

4

STAGE 1Reservation

form anddeposit of

£6,800(includes reservation fee)

STAGE 2Solicitor

instructed,legals andsales pack

sent out

STAGE 350% of

balance onexchange ofcontracts,

within 28 days

STAGE 4Remaining

balance dueon completion

of building

Is the sale handled by UK lawyers?Yes, the seller solicitors are MSB Law in Liverpool and the recommended solicitors for purchasers are Blunts of Macclesfield (Manchester). Both have handled hundreds of student accommodation transactions.

Is there a management company already in place?Yes, a designated and experienced management company is in place.

When is my rental income paid?Once the project is operational, rent is paid quarterly in arrears direct into your bank account.

Am I taxed on this income?Most UK & European nationals can avail of the standard UK income tax exemption (approx. £9600). Outside of that, most major economies have a double taxation treaty with the UK and most non UK landlords can avoid a withholding tax by applying for an “overseas landlord” exemption.

Can I resell my unit?Yes, you can sell at any time after exchange of contract.

Can I do anything I want with my unit?No, each unit 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.

Are there any restrictions if I want to sell?Yes, the unit has to be sold as student accommodation.

Frequently Asked Questions

TestimonialsI have been involved in 12 deals with Torcana in the last 3 years and they

are experts in finding high quality, income producing properties. All of

our experiences with this company have been superb.

Robert from New York

From initial reservation to completion, the service received from Torcana

was first class. The frequent updates received throughout the process

gave us great peace of mind and we hope to purchase additional UK

properties from them soon.

Penny & Jean-Jacques from Luxembourg

The people working for Torcana are knowledgeable, committed and very

quick at problem solving. Purchasing outside your home country can be

a very complicated business and Torcana are experts at simplifying this

process in the UK student market.

Loreley from Mexico

If you are excited by this opportunity and have enjoyed learning about land investment, please examine our availability list, select your favourite unit(s) and call us to discuss the next steps.

Please COPY & PASTE the following links into your browser

Availability List: torcana.com/the-edge-liverpool.htm

Floorplans: torcana.com/userpdf/files/Edge-Liverpool-Floorplans.pdf

The Edge Video Tour: vimeo.com/78650787

Audiovisual presentation by Colin Murphy: vimeo.com/77620886

Why is UK student accommodation so popular? vimeo.com/68074770

Torcana Ltd

USA: +1 321 806 1195

Ireland: +353 1 4433 991

UK: +44 207 193 4024

Skype: torcanaltd

investments@torcana.com

www.torcana.com

This page contains general information relating to the purchase of property and its contents should not be construed as legal or other professional advice. This is not an investment offering. While all reasonable care has been taken in the compilation and publication of this information, Torcana Ltd make no representations or warranties, whether expressed or implied, as to its accuracy or completeness and the content is provided for information purposes only. All rents listed are based on information provided by third parties. Information is deemed reliable but not guaranteed. All pricing and availability and terms are subject to change without notice. Torcana Ltd shall not be liable, directly or indirectly, to the user or any other third party for any damage resulting from the use of the information contained or implied in this document. Buyers should always seek appropriate legal, tax & financial advice from suitably qualified professionals before taking, or refraining from

Call us today