Student Investment / Redevelopment Opportunity in the Heart of Cheltenham
The Regency spa town of Cheltenham is a borough in Gloucestershire located on the edge of the Cotswold Hills. The town is well served by the M5 motorway, accessed via Junctions 10 and 11 and is approximately 8.4 miles to the north east of Gloucester, 39 miles north east of Bristol and 35 miles west of Oxford. The town has excellent transport links with Cheltenham Spa railway station located 0.5 miles to the north west of the property providing regular main line railway services to Bristol, Birmingham and London. There are a number of bus stops in close proximity. The town is famed for its Racecourse and hosts numerous International Literature, Jazz, Music and Science Festivals as well as offering some of the leading education establishments with Cheltenham College, Dean Close School, Pate’s Grammar School and Cheltenham Ladies College all nearby.
The property comprises two substantial, detached former residential period town houses with purpose built rear anneses, which provide an operational student residence offering 90 student bed-spaces arranged over lower ground plus three upper floors. Both buildings are identical in layout and comprise 54 student bed-spaces across the two period properties and 36 student bed-spaces across the purpose built rear annexes. The two period buildings retain many features typical of traditional town houses of their time and were converted in 1994. All rooms within the period properties have shared bathrooms and each cluster contains between six and seven bed-spaces, communal kitchen and dining area. The purpose built rear annexes were constructed in 2003. All rooms are en-suite and each cluster flat contains between four and five bed-spaces, communal kitchen and dining area. The property is offered with existing furnishings, fully equipped spacious shared kitchens, bedrooms including a single bed, wardrobe, bookshelves and desk. The property also benefits from an on-site communal laundry room, bicycle storage areas, gas central heating, WiFi and etheret internet connection and door intercom entry system There is no lift access throughout. The site extends to approximately 0.61 acres.
The property is let to The University of Gloucestershire (Company no. 6023243) on a rolling annual lease expiring 15 June 2019. The University has a Creditsafe rating of A (84/100), ‘Very Low Risk’. We understand there is an opportunity to extend the lease (subject to agreement), continue managing the property on a direct let basis or consider redevelopment for alternative uses, subject to planning. The current passing rent totals £370,791 per annum.