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PROFITABLE RECESSION BEATING PROJECTS

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March 20th 2020

We are by far the largest independent student accommodation conversion company in the North West, with in excess of 171 successfully completed and rented projects.

Looking at the future student accommodation marketplace, we have recently added to our books a significant number of new properties based around the two Universities.

We believe that the coming recession will give us a great opportunity to increase sales to the right kind of investors.

The Universities must and will continue throughout the coronavirus crisis. Our successful business model creates minimum 4-bedroom student rooms based in large converted houses.

The rooms are built to a high standard and have full university specification, broadband, fire protection and most of them offer their own bathroom facilities.

They have large common areas but are absolutely individual and private.

These units can provide a more isolated living space than the high infection risk situation created by the 200-room campus type accommodation blocks which have large busy communal spaces.

We have been informed it is likely, that in an effort to cut down risk of the virus spreading through the student body, the Universities will resort to online study, based within their own private rooms and linked to tutorials with single lecturers based on small numbers of students.

They will cut out the theatre style lectures which are currently attended by 100s of students.

On the economic front, the coming recession is being countered by the recent Bank of England interest cut. This has confirmed to us that it is the right time to build up our inventory, both for our own portfolio and for our customers.

All other forms of investment will obviously reduce in yield whilst ours will remain unaffectedly high.

At the same time, the worry of this recession will give us the opportunity to force down the price of our acquisitions.

We are completely committed to this aggressive approach to the market which has proved to be so successful and profitable during all previous economic recessions.

 

There are two completely undeniable facts about recessions.

  1. They always end
  2. They always lead to market growth and an increase in property values

 

New Inventory

                                                                                             Return on cash invested                                                           Return on Investment Yield

                                                                                            (net of mortgage payments)                                                    (cash sales)

*All percentages below are net returns per annum

                                

Christian Rd Preston 5 Bed                        

 

19.05%

 

9.77%

Eldon St Preston 6 Bed                               

 

18.69%

11.31%

Christchurch St Preston 4 Bed                 

 

18.45%

10.13%

Pedder St Preston 4 Bed                            

 

18.20%

9.95%

Kenmure Plc Preston 5 Bed                      

 

18.16%

10.87%

Hall St Preston 4 Bed                                   

 

16.80%

10.51%

Vincent St Lancaster 4 Bed                        

 

16.00%

9.89%

Cockersand Dr Lancaster 4 Bed            

 

13.74%

8.47%

St Paul’s Rd Lancaster 4 Bed                     

 

13.15%

8.09%

 

  • Return on cash invested (banks or building societies) 1.65% PA 
  • Offshore savings 2% PA
  • Government backed bonds and gilts 0.16% PA 
  • FTSE Index has recently dropped by approx. 9% PA

 

(N.B based solely on internet information)

 

The Preston Units are all City Centre based and within 10 minutes to the main University Campus. Lancaster has two very distinct popular areas because of its position as a Campus University, it is based in its own grounds outside of the City.

The Lancaster properties are all within the student accommodation areas either close to the City where the student Union & university transport links are to be found or the other popular area which is within sight of the University itself.

All properties are handed over fully let, regulated and licenced to local and government standards.

For full breakdowns and sales information on any of our properties including the recent additions above, please telephone Vicki or Dan on 0161 870 0010 or by email at info@hmodesigns.co.uk.