EXCHANGE PLACE EDINBURGH...11 EXCHANGE PLACE Population Edinburgh has a population of 487,500 within...

P R I M E M U L T I - L E T I N V E S T M E N T

E X C H A N G E P L A C E E D I N B U R G H S E M P L E S T R E E T E H 3 8 B L

2E X C H A N G E P L A C E


I N T R O D U C T I O N

A F L A G S H I P A S S E T C O M P R I S I N G

T H R E E G R A D E A M U L T I - L E T

O F F I C E B U I L D I N G S

Exchange Place offers 214,655 sq ft (19,941.94 sq m) of contemporary and striking office accommodation across three properties of individual character, at the heart of the

Exchange District, Edinburgh’s thriving financial and commercial hub. Served by a world-class, multi-modal transport system and within walking distance of many of Edinburgh’s premier

attractions, including 5 star hotels and Michelin starred restaurants, Exchange Place occupies an enviably central location in the UK’s most prosperous regional city. All three buildings boast

best in class sustainability credentials and are linked by a public realm to create both an attractive and functional campus environment. A prestigious clientele currently fully occupy

Exchange Place, further adding to its investment appeal.


Contents0 5 E X E C U T I V E S U M M A R Y

0 8 E D I N B U R G H

1 4 C O M M U N I C A T I O N S

1 8 T H E E X C H A N G E

2 4 E X C H A N G E P L A C E 1



6 0 E D I N B U R G H O F F I C E M A R K E T

6 2 E D I N B U R G H I N V E S T M E N T M A R K E T

6 7 I N V E S T M E N T O V E R V I E W

6 8 I N V E S T M E N T P R O P O S A L

6 8 C O N T A C T I N F O R M A T I O N


Generous accommodationExchange Place offers generous office accommodation given the central and premier commercial nature of its location: comprising 214,655 sq ft (19,941.94 sq m) of high quality, open-plan office space in total.

Contemporary appealOnly 6 years old (completed in 2009), the buildings retain an attractive, contemporary appeal, with extensive glass frontage maximising the influx of natural light to the properties.

Unique campus locationA new public realm fully unifies the three buildings which comprise Exchange Place, providing a unique and attractive campus setting within the Exchange District.

Secure parkingA secure basement car park accessible to all three buildings provides another attractive feature to tenants and includes 181 parking spaces in total: 52 for cars, 27 for motor cycles and 102 for bicycles.

TenancyExchange Place is let to a prestigious clientele, with a diverse income profile in terms of tenant exposure and provides a purchaser with an overall weighted average unexpired term of 10.60 years to lease expiries and 8.07 years to breaks.

Rental profileThe current contracted rent is £5,023,736 per annum excluding VAT.

TenureHeritable Interest (Scottish equivalent of English Freehold).

VATVAT will be applicable to the sale of the property, which we anticipate will be undertaken by way of a Transfer Of a Going Concern (TOGC).

Investment proposalWe are instructed to seek offers in excess of £85,000,000 (Eighty-Five Million Pounds Sterling), subject to contract and exclusive of VAT for our client’s Heritable Interest (Scottish equivalent of English Freehold). A purchase at this level would reflect a net initial yield of 5.56%, allowing for purchaser’s costs of 6.28%.

E X E C U T I V E S U M M A R Y

Exchange Place offers the complete investment package: a total of three striking

Grade A office buildings in a central and commercially strategic location within a city

boasting the highest quality of living in the UK

0 6E X C H A N G E P L A C E

Edinburgh is one of Europe’s most vibrant capital cities,

renowned for its cultural and historic attractions, as well as its status as a major financial, legal

and commercial centre and innovative, emerging tech hub



E D I N B U R G H

CA P I TA L C I T Y A N D G LO B A L

B U S I N E S S C E N T R E

Edinburgh’s historic charm is just one aspect of Scotland’s diverse and stunning capital. Today, the city is also equally renowned for its status as a major financial, legal and

commercial centre, as well as an emerging tech hub. To add to its accomplishments, Edinburgh enjoys a unique political and cultural position in the UK, home to the Scottish Parliament and Scottish Government, as well as the internationally acclaimed Edinburgh

festivals, which add around £261 million to the Scottish economy annually. It’s this diversity which has provided the inspiration for so many literary greats, from Robert Louis

Stevenson to J. K. Rowling, and which adds to Edinburgh’s international prominence.


PopulationEdinburgh has a population of 487,500 within the city, increasing to 1.3m within the Lothians, Fife and Scottish Borders catchment area. It is the most prosperous regional city in the UK and its workforce is one of the most highly educated in Britain.

TransportThe city has an exceptional transport and communications network that includes direct flights from Edinburgh Airport to over 120 destinations.

Financial and Administrative CentreEdinburgh is Scotland’s capital and principal financial/administrative centre, housing the Scottish Parliament and the Scottish Government. The city is not only the seat of both local and national government, but also home of the judiciary and the arts.

Higher EducationThere are eight universities and further education colleges in Edinburgh, with almost 80,000 students studying in the city. The University of Edinburgh was ranked 39th in the World University Rankings by The Times in 2013/14.

Tourism Edinburgh is the only place in Scotland to benefit from having two UNESCO World Heritage Sites within its boundaries - the Old and New Town as well as the Forth Bridge - and is therefore a major tourist destination, attracting around 3.45 m visitors a year. It is the most visited tourist destination in the UK after London and enjoys the second highest hotel occupancy rate in Europe.

There has been significant recent investment in city amenities and visitor attractions. This includes the £47m refurbishment of the National Museum of Scotland, which last year became the most visited attraction outside London; the £37m refurbishment of the Commonwealth Pool, which reopened in Spring 2012 and was used in the 2014 Commonwealth Games; the £295m upgrade of Waverley train station; the £25m Haymarket Interchange; and the recent £60m extension of the Edinburgh International Conference Centre.

W H AT M A K E S E D I N B U R G H T H E M OST P R OS P E R O U S

R EG I O N A L C I T Y I N T H E U K ?


A R E S I L I E N T F I N A N C I A L A N D B U S I N E S S H U B

Edinburgh’s central financial and business district is home to more FTSE 100 companies than any UK city except London. It has proved its resilience during the

economic downturn, continuing to attract new entrants, and supporting the growth of existing companies.

Edinburgh is one of the fastest growing and most productive cities in the UK

New entrants to the capital include Virgin Money, Tesco Bank, Amazon, Avaloq and the UK Green Investment Bank. Others, such as BlackRock, Brewin Dolphin and Baillie Gifford, have been expanding. The financial services industry continues to play a leading role in the Scottish economy and accounts for up to one in ten Scottish jobs.

Edinburgh also enjoys a world-class reputation for enterprise in areas such as biotechnology, life sciences, information technologies and software development. Google eTown Awards recently recognised the city as the second most tech-savvy in the UK - perhaps unsurprising given Edinburgh’s rapidly expanding and innovative technology sector, home to international success stories such as Rockstar North, FanDuel, Circus Logic and Skyscanner.

Other attributes with a proven track record of attracting investors, include the city’s world class conference facilities, its overall growth, economic activity rate and its productivity (among the highest in the UK, with Gross Value Added per head of £38,000 compared to an average of £20,699).

The city regularly ranks highly for investment attractiveness, financial services competitiveness, commerce and conference holding.


C O M M U N I C A T I O N S

E XC E L L E N T CO N N EC T I V I T Y A N D A WO R L D C L A S S

T RA N S P O RT I N F RA ST R U CT U R E O N T H E D O O R ST E P

Less than 8 miles from the city centre, Edinburgh Airport is the 5th largest in the United Kingdom and Scotland’s busiest.

W I T H OV E R 5 0 A I R L I N E S O P E RAT I N G F R O M E D I N B U R G H . . .

...the terminal offers both business and leisure travellers a choice of over 120 destinations across 28 countries throughout Europe, and services further afield to North America and the Middle East.

G LO BA L I N F RA ST R U C T U R E PA RT N E RS M A D E A N £8 0 0 M I N V E ST M E N T I N

E D I N B U R G H A I R P O RT I N 2 01 2 A N D H AV E S ECU R E D D E A L S W I T H A M E R I CA N

A I R L I N E S , V I R G I N AT L A N T I C A N D QATA R A I RWAYS A M O N G OT H E RS , TO

I N C R E A S E T H E N U M B E R O F F L I G H TS A N D D E ST I N AT I O N S O N O F F E R .

L A R G E ST


Edinburgh TramsWAV E R L EY A N D

H AY M A R K E T H AV E B OT H U N D E R G O N E M U LT I -

M I L L I O N R E F U R B I S H M E N T A N D U P G RA D I N G

P R O G RA M M E S TO S U P P O RT I N C R E A S E D

PA S S E N G E R N U M B E RS .

Waverley & Haymarket train stations

T H E C I T Y ’S T WO P R I N C I PA L RA I L STAT I O N S L I E W I T H I N A S H O RT WA L K ,

TA X I , T RA M O R B U S R I D E , F R O M E XC H A N G E P L AC E .

Multi-million upgrades

Excellent road links

Scotland’s capital city benefits from direct access to the national motorway network. It is served by the M8 from the west (Glasgow and Livingston), the M90/A9 from the north (Aberdeen and Inverness) and the A1 and A7 from the south/south east (the Borders, East Lothian and Newcastle).

The city’s new tram system commenced operations in May 2014 and now provides a direct link between the airport, Haymarket and Princes Street, terminating at York Place close to the proposed St James’ Quarter.

The stations provide direct rail services to and from London on the east coast network and are easily accessible from other principal English towns and cities. Regular services to all major Scottish centres are available, including a shuttle service to Glasgow, which runs every 15 minutes at peak times.


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Scotland’s capital city is one of the best connected in the UK, linked to Europe and

beyond by a sophisticated transport and communications network

Walking

P R I N C E S S T R E E T 5 M I N S

S H A N D W I C K P L A C E T R A M H A LT 5 M I N S

C H A M B E R S S T R E E T 7 M I N S

H AY M A R K E T 7 M I N S

E D I N B U R G H C A S T L E 7 M I N S

R O YA L M I L E 8 M I N S

WAV E R L E Y S TAT I O N 1 2 M I N S

Flight Times

L O N D O N 1 H R S 1 0 M I N S

A M S T E R D A M 1 H R S 2 0 M I N S

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F R A N K F U R T 1 H R S 5 5 M I N S

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A B U D H A B I 7 H R S 3 0 M I N S

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Tram Times

S T A N D R E W S Q U A R E 7 M I N S

E D I N B U R G H A I R P O R T 2 1 M I N S

Rail Times

G L A S G O W 4 5 M I N S

N E W C A S T L E 1 H R S 2 3 M I N S

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L E E D S 3 H R S

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BA S E M E N T CA R PA R K

P U B L I C

S P A C E

Exchange Place 1 Exchange Place 2 Exchange Place 3

Key

For illustrative purposes onlyTotal site area (indicated black) extends to approximately 1.741 acres (0.705 hectares)


T H E E XC H A N G E

The well-connected and central Exchange District has become firmly established as

Edinburgh’s main financial and commercial hub

Exchange Place lies right at the heart of what has now become firmly established as Edinburgh’s main commercial centre.

Master planned 20 years ago as a new focal point for the city’s burgeoning financial sector, the area is now home to an impressive line-up of occupiers, including Scottish Widows, Standard Life, Aberdeen Asset Management, Bank of New York Mellon,

Hymans Robertson, BlackRock, Franklin Templeton, PwC, CMS Cameron McKenna, the UK Green Investment Bank and Wood Mackenzie, among others.

These occupiers benefit from wide-ranging, high quality amenities and services on their doorstep, including more Michelin starred restaurants than in any other UK city

outside London, two iconic five star hotels and a broad range of retail and leisure facilities, including the nearby Fountain Park Leisure Complex.


OccupiersA Barclays Wealth

B Deutsche Bank

C DLA Piper

D HBJ Gateley, RBC Wealth Management

E Lindsays, Hudson

F Capita

G Regus

H Standard Life HQ

I Moody’s, Grant Thornton, Shepherd & Wedderburn, JLL, Logic Now, Ryden, Colliers

J Cairn Energy, Clydesdale Bank, Burness Paull LLP

K Brewin Dolphin, Green Investment Bank, PwC, AON

L Aberdeen Asset Management

M The Bank of New York Mellon, Edinburgh Chamber of Commerce

N CMS Cameron McKenna, Martin Currie, Deloitte, KPMG

O Franklin Templeton Investments

P Scottish Widows

Q MacRoberts, Lloyds Banking Group

R Lloyds Banking Group

S Watson Wyatt, DWF Biggart Baillie

T Saffery Champness, Bloomberg, BTO, C&W

U Baker Tilly, Barclays, Lloyds, Companies House

V Financial Conduct Authority

W Lloyds Banking Group, Turcan Connell, Pinsent Masons LLP

X NHS, Senergy, Broadcom

Amenities1 Rutland Nursery

2 Living Well

3 Galvin Brasserie De Luxe

4 Caledonian - A Waldorf Astoria Hotel

5 EICC

6 One Spa

7 One Square Restaurant

8 Sheraton Grand Hotel

9 All Bar One

10 Careshare Nursery

11 Lyceum Theatre

12 Usher Hall

13 Filmhouse

14 NCP Castle Terrace

15 Odeon Cinema

16 Edinburgh Castle

Streets1 West Approach Road

2 George Street

3 Princes Street

4 Lothian Road

5 Morrison Street

6 Castle Terrace

7 Semple Street

8 Fountainbridge

Transport1 Haymarket Station

2 Tram route

3 Waverley Station

4 Port of Leith

AT T H E H E A RT O F A T H R I V I N G B U S I N E S S

CO M M U N I T Y

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Exchange Place 1 is 100% let to BlackRock, Hymans Robertson, Cundall

Johnston and Cameron Hume. Evans Cycles occupy the retail space fronting

onto Fountainbridge


Its prominent corner position amplifies the powerful

architectural identity of Exchange Place 1, affording it an instantly

recognisable HQ status


S P EC I F I CAT I O N

The office accommodation is over ground to fifth floor and is finished to

a high specification:

High quality external building finishes incorporating natural stone and glazed cladding

Striking architectural design incorporating roof terraces on the upper floors offering stunning views over the city

Dramatic double-height entrance and generous reception area that opens into a full height atrium to form a light-filled, vibrant concourse

Manned reception desk with access control system and three automatic glazed security gates

24 hour on-site security, supplemented by CCTV throughout the development

Minimum floor to ceiling height of 2.7m

Four pipe fan coil air-conditioning serving all areas

Three 13 person passenger lifts, one 8 person firefighting lift and one 21 person goods lift

Fully accessible metal raised access floor with minimum void of 150mm

Metal suspended ceiling incorporating recessed lighting, in the spirit of LG7 and sprinkler system for fire control

Male and female WC’s along with shower facilities are provided on each floor

Lower ground floor secure parking for 25 cars, providing a ratio of 1:4,790 sq ft


ACCO M M O DAT I O N

The property has been measured by Plowman Craven in accordance with International Property Measurement Standards (IPMS 3) and with the RICS Code of Measuring Practice

(Sixth Edition). The net internal areas are as follows:

F L O O R U S E T E N A N T A R E A ( I P M S 3 ) A R E A (S i x t h Ed i t i o n)

S Q M S Q F T S Q M S Q F T

FIFTH OFFICE HYMANS ROBERTSON LLP 1,671.0 17,986 1,210.4 13,029

FOURTH OFFICE BLACKROCK INTERNATIONAL LIMITED 2,025.8 21,806 1,815.3 19,540

THIRD OFFICE BLACKROCK INTERNATIONAL LIMITED 2,178.9 23,453 2,132.8 22,957

SECOND OFFICE BLACKROCK INTERNATIONAL LIMITED 2,181.3 23,479 2,134.0 22,970

FIRST OFFICE BLACKROCK INTERNATIONAL LIMITED 2,083.5 22,427 1,947.0 20,958

GROUND OFFICECUNDALL , JOHNSTON & PARTNERS LLP

CAMERON HUME LIMITED F.W. EVANS CYCLES (UK) LIMITED

1,449.7 15,605 1,886.6 20,308

T O TA L 1 1 , 5 9 0 . 2 1 2 4 , 7 5 6 1 1 , 1 2 6 . 1 1 1 9, 76 2


T H I R D F L O O R

22,957sqft

F I F T H F L O O R

13,029 sqft

F I R S T F L O O R

20,958 sqft

S E C O N D F L O O R

22,970 sqft

F O U R T H F L O O R

19,540 sqft

G R O U N D F L O O R

20,308 sqft

N O R T H

*Areas stated are RICS Code of Measuring Practice (Sixth Edition).


T E N A N T F LO O RA R E A* (S Q F T )

CA R PA R K I N G

L E A S E STA RT & E X P I RY

B R E A K O PT I O N

N E XT R RCU R R E N T R E N T ( P E R A N N U M )

R E N T ( P E R S Q F T )

CO M M E N TS

Hymans Robertson LLP

5th † 13,029 3 9th Jun 20098th Jun 2024

9th Jun 2014 £394,820 £29.67 (plus £2,750 per space)

2014 rent review currently at arbitration.

BlackRock International Limited

4th3rd2nd1st (Part)

19,54022,95722,97014,677

18 6th Sep 20135th Sep 2028

6th Sep 2023 (12 months notice)

6th Sep 2018 £483,960£565,968£566,280£361,416

£24.00£24.00£24.00£24.00£3,000 per space

Rent free period to be topped up by vendor. Income producing from 6th May 2016. Tenant has an option to extend for a further 5 years on 12 months’ notice. Car parking spaces held on separate license which can be terminated in respect of all or any of the spaces on 06/09/2018, 06/09/2020, 06/09/2023 and 06/09/2025 upon 3 months notice.

BlackRock International Limited

1st (Part) 6,281 1 1st Sep 20145th Sep 2028


6th Sep 2018 £153,774 £24.00 £3,000 per space

Rent free period to be topped up by vendor. Income producing from 6th May 2016. Tenant has an option to extend for a further 5 years on 12 months’ notice. Car parking spaces held on separate license which can be terminated on 06/09/2023 upon 3 months notice.

Cundall, Johnston & Partners LLP

Ground – Office †

5,645 2nd Mar 20151st Mar 2025

2nd Mar 2020(9 months notice)

2nd Mar 2020 £104,432.50 £18.50 Break penalty of £75,000 plus VAT. 20 months rent free structured as 9 months rent free and 22 months at half rent, to be topped up by vendor.

Cameron Hume Limited

Ground – Office †

3,397 1 1st Oct 201230th Sep 2017

£70,940 £20.00£3,000 per space

The tenant has provided a rent deposit of 6 months.

F.W. Evans Cycles (UK) Ltd

Ground - Retail

6,288 17th Sep 201116th Sep 2026


17th Sep 2016 £75,000 £11.93 Personal break option subject to 12 months notice and 6 month rental penalty.

Short Term License

Car Parking

2 £6,000 1 car parking space currently let to 4Sight Financial Software Limited at £3,000 pa, can be terminated at any time upon 2 weeks notice. 1 car parking space let to Cameron Hume Limited at £3,000 pa, can be terminated at any time upon one month’s notice.

TOTAL 114,784** 25 £2,782,590.50

T E N A N CY SC H E D U L E

*Areas in accordance with RICS Code Of Measuring Practice (6th Edition) | **Atrium base and reception not included in this total

† BlackRock has a right of pre-emption over this space until the earlier of (i) the first of the leases under which BlackRock lease 3 complete floors comes to an end or (ii) BlackRock cease to occupy and trade from three or more complete floors or (iii) the day prior to the 15th anniversary of the BlackRock Date of Entry


Hymans Robertson LLPHymans Robertson is the UK’s leading independently owned pensions, benefits and investment consultancy, with offices in Edinburgh, Glasgow, Birmingham and London. The firm was founded in Glasgow in 1921 and counts many of the UK’s biggest pension schemes and FTSE 100 companies as clients. In 2015, the firm was awarded the Actuarial/Employee Benefits Consultancy of the Year at the UK Pension Awards for the third year running.

For the financial year to 31 March 2015, the company reported a turnover of £68.986 million. They have a Dun & Bradstreet rating of N1, indicating a minimum risk of business failure.

BlackRock International LimitedBlackRock is one of the world’s leading asset management firms and a premier provider of investment management, risk management and advisory services. The firm is a truly global company, employing more than 12,000 professionals in 30 countries across the world, and managing over 7,700 portfolios.

As of 30 September 2015, BlackRock’s assets under management totalled 4.5 trillion US dollars. In the year to 31 December 2014, BlackRock International Limited reported a turnover of £42.287 million and a tangible net worth of £598.51 million. They have a Dun & Bradstreet rating of 5A1, the highest possible rating.

Cundall, Johnston & Partners LLPCundall is a multi-disciplinary engineering consultancy firm established in 1976. Originally founded in Edinburgh and Newcastle, the firm now has over 400 employees and has expanded organically to include 20 offices in 11 countries worldwide.

For the financial year to 30 June 2015, the company reported a turnover of £35.37 million, and has a Dun & Bradstreet rating of O2, indicating a lower than average risk of business failure.

Cameron Hume LimitedCameron Hume is a specialist investment management company, predominantly dealing with fixed income investment management on behalf of institutional clients.

For the financial year to 30 September 2014, the company reported a turnover of £183,355 and a tangible net worth of £1.545 million. They have a Dun & Bradstreet rating of 2A1, indicating a minimum risk of business failure.

F.W. Evans Cycles (UK) LimitedEvans Cycles is one of the UK’s largest leading cycle retailers. The first store was opened in London in 1921, and the company now has over 50 stores across the UK, as well as an established internet sales business. Evans Cycles has produced its own range of Pinnacle bikes, and has also collaborated with Olympic champion Chris Hoy to create the HOY bike range.

For the financial year to 1 November 2014, the company reported a turnover of £127.65 million and a tangible net worth of £7.509 million. They have a Dun & Bradstreet rating of 3A3.

COV E N A N T I N F O R M AT I O N




2



Exchange Place 2 is 100% let to Wood Mackenzie, 4Sight Financial

Software and i2 Office


The strong external architectural identity of Exchange

Place 2 is complemented by the high quality internal specification

of the building



The office accommodation is over lower ground to fifth floor and is finished

to a high specification:

High quality external building finishes incorporating natural stone and glazed cladding

Striking architectural design incorporating roof terraces on the upper floors offering stunning views over the city

Single height entrance foyer that provides access to a full height atrium

Manned reception desk with feature wall



Four pipe fan coil air-conditioning serving all areas

Three 13 person passenger lifts and one 8 person firefighting lift



Male and female WC’s along with shower facilities are provided on each floor

Lower ground floor secure parking for 17 cars providing a ratio of 1:3,632 sq ft


F L O O R U S E T E N A N T A R E A ( I P M S 3 ) AREA (Sixth Edit ion)


FIFTH OFFICE WOOD MACKENZIE INVESTMENTS LIMITED 749.6 8,069 683.8 7,360

FOURTH OFFICE WOOD MACKENZIE INVESTMENTS LIMITED 978.9 10,537 956.6 10,297

THIRD OFFICE WOOD MACKENZIE INVESTMENTS LIMITED 979.2 10,540 956.5 10,296

SECOND OFFICE WOOD MACKENZIE INVESTMENTS LIMITED 977.8 10,525 955.1 10,281

FIRST OFFICE I2 OFFICE LIMITED 829.8 8,932 808.3 8,700

GROUND OFFICE4SIGHT FINANCIAL SOFTWARE LIMITED

I2 OFFICE LIMITED671.6 7,229 849.5 9,144

LOWER GROUND OFFICE I2 OFFICE LIMITED 539.4 5,807 527.6 5,679

T O TA L 5 , 7 2 6 . 3 6 1 , 6 3 9 5 , 7 3 7. 4 6 1 , 7 5 7

F I F T H F L O O R

7,360 sqftT H I R D & F O U R T H F L O O R

10,296/10,297 sqftN O R T H





S E C O N D F L O O R

10,281 sqftF I R S T F L O O R

8,700 sqft

L O W E R G R O U N D F L O O R

5,679 sqftG R O U N D F L O O R

9,144 sqft


N O R T H


T E N A N T F LO O R A R E A* (S Q F T )

CAR PARKING



N E XT R R CU R R E N T R E N T ( P E R A N N U M )


CO M M E N TS

Wood Mackenzie Investments Limited

5th4th3rd2ndCar Parking

7,36010,29710,29610,281

10 31st Dec 200930th Dec 2026

31st Dec 2014 £217,120£293,465.50£288,288£287,868£30,000

£29.50£28.50£28.00£28.00£3,000 per space

All 4 floors held on one lease. Tenant option to extend for a further 5 years on 12 months notice. 2014 rent review outstanding.

i2 Office Limited

1stGround (Part)Lower GroundCar Parking

8,7002,540 5,679

4 16th Mar 201415th Jul 2024

16th Mar 2017 £230,550£50,800£96,543£11,000

£26.50£20.00£17.00£2,750 per space

All 3 floors held under one Lease. Tenant previously occupied under an 18 month personal license.

4Sight Financial Software Limited

Ground (Part)Car Parking

4,497 1 4th Jan 20123rd Jan 2022

4th Jan 2017 (6 months notice)

4th Jan 2017 £77,700 £20.00£2,750 per space

Contracted rent of £92,690 pa. Stepped rental across 5 years. Years 1-3 = £70,205. Years 4 -5 = £77,700. (total 13 months RF). If the break option is not exercised the rent is reduced by 50% for 12 months.

Short Term Licence

Car Parking 1 £2,750 One space let to Valad at £2,750 per annum. 3 months notice required to terminate.

Vacant Car Parking 1 Currently occupied by building manager.

TOTA L 59,6 5 0 * * 1 7 £ 1 , 5 8 6,0 8 4 . 5 0


*Areas in accordance with RICS Code Of Measuring Practice (6th Edition)

** Atrium base and reception not included in this total



Wood Mackenzie Investments LimitedThe Wood Mackenzie Group is a leading specialist provider of consultancy and research services to the energy and mining sectors and was first established in 1973. The company’s clients include international and national energy, metals and mining companies as well as financial institutions and governments. In 2015, the group was acquired by Verisk Analytics in a deal which valued the firm at £1.85 billion.

The latest company accounts to 31st December 2014 show the company has a tangible net worth of £251.58 million and a Dun & Bradstreet rating of 5A1, the highest possible rating.

i2 Office Limitedi2 Office is one of the UK’s premier providers of serviced offices and currently operates from 30 locations across the UK.

For the financial year to 31 December 2013, the company reported a turnover of £15.962 million and a tangible net worth of £6.532 million. They have a Dun & Bradstreet rating of 2A3.

4sight Financial Software Limited4Sight provide specialist software solutions for financial institutions in order to improve efficiency, and enhance risk management and customer services. The company has offices in Edinburgh, London, Toronto and Sydney.

The latest company accounts to 31st December 2014 show the company has a tangible net worth of £10.154 million and a Dun & Bradstreet rating of G2, representing a lower than average risk of business failure.


4 6E X C H A N G E P L A C E 3


3


4 7E X C H A N G E P L A C E 3

Exchange Place 3 is 100% let to Scott-Moncrieff, JLT, Max Fordham

and Valad. Mint CafE & Flowers occupy the retail space


The sweeping curve of Exchange Place 3 provides this

sustainable office accommodation with an instant kerb appeal



The office accommodation is over ground to fourth floor and is finished

to a high specification:

High quality external building finishes incorporating light shelves that reflect daylight into the building reducing demands on artificial lighting and rain water harvesting

Striking architectural design offering stunning views over the Pentland Hills on the upper floors

Double height entrance foyer accessed from the public realm

Manned reception desk with feature wall



Heated by a low pressure hot water system and naturally ventilated

Two 13 person passenger lifts



Male and female WC’s are provided on each floor with four showers provided at basement level

Lower ground floor secure parking for 10 cars providing a ratio of 1:2,846 sq ft


F L O O R U S E T E N A N T A R E A ( I P M S 3 ) A R E A ( S i x t h Ed i t i o n)


FOURTH OFFICE FIRM OF SCOTT-MONCRIEFF 571.2 6,148 547.8 5,896

THIRD OFFICE FIRM OF SCOTT-MONCRIEFF 551.6 5,937 548.2 5,901

SECOND OFFICE FIRM OF SCOTT-MONCRIEFF 571.5 6,152 548.1 5,900

FIRST OFFICEVALAD MANAGEMENT SERVICES LIMITED

MAX FORDHAM LLP498.7 5,368 479.6 5,162

GROUND OFFICEJLT EB SERVICES LIMITED

MINT CAFÉ & FLOWERS LIMITED432.5 4,655 520.6 5,604

T O TA L 2 , 6 2 5 . 5 2 8 , 2 6 0 2 , 6 4 4 . 3 2 8 , 4 6 3





S E C O N D / T H I R D / F O U R T H F L O O R

5,900 / 5,901 / 5,896 sqft

G R O U N D F L O O R

5,604 sqft

F I R S T F L O O R

5,162 sqft

N O R T H



T E N A N T F LO O RA R E A* (S Q F T )

CA R PA R K I N G S E RV I C E S



N E XT R RCU R R E N T R E N T ( P E R A N N U M )


CO M M E N TS

The Firm of Messrs Scott-Moncrieff

4th3rd2ndCar Parking

5,8965,9015,900

5 1st Jul 200930th Jun 2024

1st Jul 2014 £150,348£147,525£147,500£13,750

£25.50£25.00£25.00£2,750 per space

All 3 floors held under one Lease. 3rd floor sublet to Caird Capital LLP, Kiltearn Partners LLP and Peter Brett Associates LLP. 2014 rent review outstanding.

Valad Management Services Limited

1st (Part) 1,664 1 7th Sep 20106th Sep 2020

7th Sep 2015 £39,358 £22.00£2,750 per space

Service charge cap of £15,327 pa (£9.21 psf). 2015 rent review outstanding.

Max Fordham LLP

1st (Part) 3,498 19th Mar 201518th Mar 2025

18th Mar 2020 (6 months notice)

19th Mar 2020 £76,956 £22.00 12 months rent free from date of entry. Additional 6 months rent free if break not exercised.

JLT EB Services Limited

Ground (West)

3,412 4 24th April 201223rd April 2022

23rd April 2017(9 months notice)

24th April 2017 £68,240£11,000

£20.00£2,750 per space

9 months rent free if break option not exercised. Lease in process of being assigned to Wood Mackenzie Investments Limited.

Mint Café & Flowers Limited

Ground 1,081 22nd Oct 201221st Oct 2022

22nd Oct 2017(6 months notice)

22nd Oct 2017 £2,750 £2.54 Mutual break options at Year 5. Service Charge Cap applied:Y1: Service Charge freeY2: £693.15Y3: £1,346.58Y4: £1,846.58 and thereafter £2,000 per annum.Current landlord service charge shortfall of £2,366 pa.

TOTA L 2 7, 3 52 * * 1 0 £6 57, 42 7

N E T R E N T £6 5 5,0 61


*Areas in accordance with RICS Code Of Measuring Practice (6th Edition) | **Atrium base and reception not included in this total



Scott-MoncrieffScott-Moncrieff is one of Scotland’s leading independent firms of chartered accountants and business advisors working across the private and public sectors. The company is a member of the Moore Stephens International network, which is one of the leading international accounting and consulting networks, comprising 636 offices of member firms in over 100 countries worldwide.

The company currently operates from three Scottish offices in Edinburgh, Glasgow and Inverness, with 15 partners and over 160 staff.

Scott-Moncrieff operates as a Scottish Partnership and has a Dun & Bradstreet rating of O2, which represents a lower than average risk of business failure.

Valad Management Services LimitedValad Europe is a leading European real estate investment manager specialising in multi-let, commercial properties in the UK and continental Europe. The company currently manages over 5.3 billion Euros of assets from 22 offices across 13 countries. The company was originally founded in the UK in the 1960s as Teesland and was partnered with Blackstone Real Estate Partners in 2011 in order to privatise the company. In 2015, Valad Europe was acquired by Cromwell Property Group for €145 million.

For the financial year to 30 June 2014, the company reported a sales turnover of £15.38 million, and a tangible net worth of £4.811 million. They have a Dun & Bradstreet rating of 2A1, indicating a lower than average risk of business failure.

JLT EB Services LimitedJLT is one of the UK’s largest providers of employee benefits. It is part of the JLT Group, which has a history dating back to 1832 when Jardine Matheson & Co was formed. The company has expanded through mergers and acquisitions, and is now a FTSE250 company employing over 10,000 people worldwide.

The Employee Benefits division started operating in 1982 and represents 26% of the JLT Group. The division offers a wide range of benefit and pension services and employs over 2,600 professionals.

For the financial year to 31 December 2014, JLT Group had a turnover of £1.104 billion. The company has a Dun & Bradstreet rating of N1, indicating a minimum risk of business failure.

JLT EB Services has a Dun & Bradstreet rating of N4.

Max Fordham LLPMax Fordham set up his own building service engineering consultancy in 1966, and in the 40 years since, the firm has grown to over 180 people in five offices around the UK. The firm has worked on over 5,000 projects and has consulted on several award winning projects, including the National Museum of Scotland and the Museum of XXI Century Art (MAXXI).

For the financial year to 5 April 2015, the company reported a turnover of £11.12 million, and has a Dun & Bradstreet rating of H2, indicating a lower than average risk of business failure.

Mint Café & Flowers LimitedMint Café & Flowers Limited is an independent café and flower shop which has operated at Exchange Place since 2012.


E D I N B U R G H O F F I C E M A R K E T

Edinburgh’s office market has enjoyed a sustained period of uptake on the back of an improving economy and increasing business confidence, which together with a significant shortage of supply has

resulted in significant and sustained rental growth. Recent open market lettings have achieved headline rates in excess of £30 per sq ft, considerably ahead of the average passing rents in Exchange Place.

2015 witnessed continued market optimism as a number of high profile schemes became fully let.

L E T T I N G T A B L E

A D D R E S S T E N A N TS I Z E ( S Q F T )

S I Z E ( S Q M )

L E A S E S T A R T D A T E

L E A S E ( Y E A R S )

R E N T ( P S F )

QUARTERMILE 4 FANDUEL 58,567 5,441.01 Q2 201615 YEARS (10 YEAR BREAK)

£30.00 - £32.00

ATRIA 1 MORRISON STREET

THE LAW SOCIETY OF SCOTLAND

19,076 1,772.20 Q2 2015 15 YEARS £27.53


ALLIANCE TRUST 7,694 715.07 Q2 201515 YEARS (10 YEAR BREAK)

£32.50

CALTON SQUARE BAILLIE GIFFORD 22,400 2,081.01 Q1 2015 8 YEARS £27.00

6-8 ST ANDREWS SQUARESTANDARD LIFE INVESTMENTS

108,564 10,085.93 Q4 2014 15 YEARS £30.00


PWC 32,278 2,998.70 Q1 2014 20 YEARS £30.00



S U P P LY & D E M A N D

There are very positive signs for continuing rental growth and falling incentives in the light of the increasing demand and supply shortages

in the Edinburgh market.

Edinburgh office space availability

Through 2015 there was 950,000 sq ft let in Edinburgh, up 8.60% on the 2014 total, which continues to indicate healthy demand for all types of office space.

Absorption of good quality second hand accommodation accelerated sharply through 2015.

Availability in Edinburgh is currently 1,169,000 sq ft, with Grade A supply at 414,000 sq ft.

The vacancy rate currently stands at 4.80% for total office stock in Edinburgh.

Development Pipeline

Within the Edinburgh market there is potentially only 1,038,000 sq ft of office space set to complete between now and 2018. This is compared to an average annual take-up figure of 777,000 sq ft for the past five years. This shortage of forecast supply is resulting in high levels of pre-letting activity and rising rental levels as tenants realise that the options for moving to new developments are very limited.

With increasing demand and such limited supply, rental growth prospects are at their highest for a decade.

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SUPPLY (LHS)5%

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VACANCY RATE (RHS)


E D I N B U R G H I N V E ST M E N T M A R K E T

Edinburgh is a major European office centre and it continues to attract demand from a diverse range of sources. For much of the past three years demand has been largely fuelled by UK institutions and overseas money attracted by the

transparency, low interest rate environment and the discount to other regional cities within the UK.

With an improving economic environment, growing occupier demand and supply remaining constrained, the only consequence can be continued rental growth and this is increasing the motivation of investors. Many are predicting that

these factors will result in Edinburgh prime yields continuing to compress towards 5.00%.

I N V E S T M E N T M A R K E T

D AT E A D D R E S S T E N A N C YWAU LT ( B R E A K )

P R I C EP R I C E ( P S F )

I N I T I A L Y I E L D

C O M M E N T

Q1 20161 ST PETER'S SQUARE , MANCHESTER

MULTI-LET 11 £180,000,000 £672 4.75%V: GMPVF

WE BELIEVE THE PROPERTY IS UNDER OFFER AT THE STATED LEVEL.

Q1 2016ATRIA ONE & TWO, MORRISON STREET, EDINBURGH

MULTI-LET16.15 ( 14.21)

£100,000,000 £494 5.63%V: CITY OF EDINBURGH COUNCIL

UNDER OFFER . QUOTING PRICE STATED.

Q4 20151 BRINDLEYPLACE , BIRMINGHAM

SINGLE-LET14 (9)

£36,720,000 £531 5.14%V: TRINOVA P: GLL

Q4 2015CITYMARK, FOUNTAINBRIDGE , EDINBURGH

SINGLE-LET 10.09 £43,650,000 £427 5.80%V: ARDSTONE P: TRINOVA

CORPORATE PURCHASE

Q4 2015STANDARD LIFE HOUSE , LOTHIAN ROAD, EDINBURGH

SINGLE-LET 16 £93,750,000 £346 5.08%V: STANDARD LIFE INVESTMENTS P: PRIVATE CLIENT OF HSBC

Q4 2015INNOVATION SQUARE BIRMINGHAM

MULTI-LET 2.85 £20,250,000 £377 4.25%V: FORTONS P: DTZ IM

Q3 20151 COLMORE SQUARE , BIRMINGHAM

MULTI-LET 9.10 £87,300,000 £430 4.04%V: IBRC P: L&G

Q3 2015WESTPORT 102, LADY LAWSON STREET, EDINBURGH

MULTI-LET7.53 (6.34)

£29,200,000 £307 5.17%V: HUDSON ADVISORS P: CORDING REAL EASTATE

Q2 2015CITYPOINT, HAYMARKET TERRACE , EDINBURGH

MULTI-LET8.25 (6.25)

£14,475,000 £345 5.76%V: ROCKSPRING P: CBRE GLOBAL INVESTORS

Q4 2014PORT HAMILTON, MORRISON STREET, EDINBURGH

SINGLE-LET 15 £105,000,000 £387 5.08%V: ABERDEEN ASSET MANAGMENT P: PRIVATE CLIENT OF HSBC



ATRIA ONE & TWO MORRISON STREET EDINBURGH

QUOTING PRICE:

£100,000,000QUOTING YIELD:

5.63%

STANDARD LIFE HOUSE LOTHIAN ROAD EDINBURGH

ACHIEVED PRICE:

£93,750,000YIELD:

5.08%

CITYPOINT HAYMARKET TERRACE EDINBURGH

ACHIEVED PRICE:

£14,475,000YIELD:

5.76%


I N V E ST M E N TOV E RV I E W

Service chargeThe current service charge budgets for the year 2015/2016 for the three buildings are:

Exchange Place 1: £705,417 (£6.14 per sq ft)



Common Parts: £193,940 (£0.92 per sq ft)

Further details can be provided on request.

Rate per sq ft is calculated against RICS Code of Measuring Practice (6th Edition), excluding receptions and atrium bases.

Value Added TaxThe property has been elected for VAT and therefore VAT will be payable on the purchase price. However it is anticipated that the sale will be treated as a Transfer Of a Going Concern (TOGC).

Capital AllowancesAll remaining Capital Allowances will be retained by the vendor.

Income ProfileExchange Place provides the purchaser with the following income profile:

Expiry Breaks

Exchange Place 1 11 .52 7.37

Exchange Place 2 10.06 9.82

Exchange Place 3 8.01 6.80

TOTAL 10.60 8.07

Exchange Place is 100% let, with 65% of the income secured to 5A1 tenant covenants.

66% of the income has an unexpired term in excess of 10 years.

The property currently provides a total net income of £5,023,736 per annum.

EPC / BREEAM

The properties have the following ratings:

Exchange Place 1E P C C + B R E E A M V E RY G O O D

Exchange Place 2E P C C B R E E A M V E RY G O O D

Exchange Place 3E P C B + B R E E A M E XC E L L E N T


Investment ProposalWe are instructed to seek offers in excess of £85,000,000 (Eighty Five Million Pounds Sterling), subject to contract and exclusive of VAT for our client’s Heritable Interest. A purchase at this level

would reflect a net initial yield of 5.56% allowing for purchaser’s costs of 6.28%.

Data RoomA data room has been set up and details can be provided

by the selling agents to interested parties.

The Agents for themselves and for the vendors or lessors of this property whose agents they are give notice that: (i) the particulars are set out as a general outline only for the guidance of the intended purchasers or lessees and do not constitute, nor constitute part of, an offer or contract; (ii) all descriptions, dimensions, reference to condition and necessary permissions for use and occupation, and other details are given without responsibility and any intending purchasers or tenants should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the correctness of each of them; (iii) no person in the employment of the Agents has any authority to make or give any representations or warranty whatever in relation to this property. January 2016.

JLLAlasdair Humphery

+44 (0) 131 301 [email protected]

Colin Campbell+44 (0)131 301 6789

[email protected]

Cushman & WakefieldDavid Davidson

+44 (0)141 223 [email protected]

Calum Cowe+44 (0)131 226 8759

[email protected]

For further information or to arrange an accompanied inspection, please contact the joint selling agents:

0131 226 8700cushmanwakefield.co.uk

EXCHANGE PLACE EDINBURGH...11 EXCHANGE PLACE Population Edinburgh has a population of 487,500 within...

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