Peel Cross Eccles New RoadSalfordM5 4SE

Omega House

High Yielding Office Opportunity

A Bilfinger Real Estatecompany

Omega HousePeel Cross, Eccles New Road, Salford, M5 4SE

Executive Summary

• Single let office investment (14,483 sq ft) at Isher Business Park, Salford

• Excellent location just off Regent Road providing direct access to the M602 and wider motorway network.

• Four storey office building with 59 car parking spaces.

• New 5 year reversionary lease agreed to Yodel Delivery Network Ltd and guaranteed by Shop Direct Ltd providing a total unexpired term of 5.5 years.

• Current passing rent of £165,297 pa (£11.41 psf) and revisionary lease in April 2015 rebased to £125,000 pa (£8.63 psf).

• Offers are sought in excess of £1,075,000 (One Million Seventy Five Thousand Pounds), subject to contract and exclusive of VAT.

• Very low capital value of £74.22 psf.

• This would reflect an attractive net initial yield of 14.53% and a reversion of 11.00% in April 2015, assuming acquisition costs of 5.80%.

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Omega HousePeel Cross, Eccles New Road, Salford, M5 4SE

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The city of Salford is situated in Greater Manchester, 1.5 miles to the west of Manchester city centre and 32 miles east of Liverpool. Salford has a district population of 233,900 persons (2011 Census) and a population of approximately 1 million people within a 10 km radius of the centre. Salford forms part of the Manchester conurbation and enjoys excellent road communications being situated adjacent to the M602 motorway allowing access to the regional and national motorway networks. The M60, M56, M61, M62, M66 and M67 motorways are all accessed via the M60.

Salford Quays, a major mixed use urban regeneration project developed over the past 20 years and extends to circa 126 acres. Over 278,000 sq m (3 million sq ft) of office accommodation has been developed and attracted occupiers such as the BBC and ITV at MediaCity UK and is now quickly becoming a leading international hub for the creative and digital sectors. In addition the area boasts numerous leisure attractions and it is estimated that it attracts over 6 million visitors per year.

Omega House is situated on Isher Business Park just off Eccles New Road at its junction with Peel Cross Road. Eccles New Road links directly to the roundabout at the start of the M602 motorway, which provides access to the M60 and M62 motorways to the west. Regent Road (A57) provides dual carriageway access into the centre of Manchester.

Location & Situation1.5 MILES

CITY CENTRE

SALFORD UNIVERSITY

1 MILE MEDIACITYUKSALFORD QUAYS

LIVERPOOLM60/61/62

M602

OMEGA HOUSE

Omega HousePeel Cross, Eccles New Road, Salford, M5 4SE

Site Plan

Omega HousePeel Cross, Eccles New Road, Salford, M5 4SE

DescriptionThe property comprises a detached, modern, purpose built office building on ground and three upper floors built in 1990. The building is of steel frame construction with brick elevations with aluminium framed double glazed windows. The roof is pitched with artificial slate covering. Internally, the building provides a chevron shaped floor plate with a central service core incorporating an eight person passenger lift. Male and female WC’s are provided on alternate floors with an additional disabled toilet at ground floor. There is a staff canteen to the ground floor.

The offices are finished with carpeted full access raised floors, suspended ceilings with recessed lighting and perimeter hot water radiators served by two gas fired boilers located within the roof space. The tenant has installed comfort cooling throughout the property.

Externally, there is parking provision for approximately 59 vehicles.

Omega HousePeel Cross, Eccles New Road, Salford, M5 4SE

Accommodation The property has the following approximate net internal floor areas:

The site provides a total of 0.22 hectares (0.54 acres).

Floor Sq m Sq ft

Ground 299.20 3,221

First 344.00 3,703

Second 348.10 3,747

Third 354.20 3,813

Total 1345.50 14,483

Omega HousePeel Cross, Eccles New Road, Salford, M5 4SE

TenureThe property is held on a long leasehold basis under the terms of a FRI 999 year lease commencing on 24 April 1997. The ground rent is £20 per annum.

Tenancy InformationThe property is let in its entirety to Yodel Delivery Network Ltd and guaranteed by Shop Direct Holdings Ltd until 3 April 2020 (5.5 years unexpired). The original lease is for a term of 25 years from 4 April 1990 at a current rent of £165,297 pa (£11.41 psf).

A reversionary lease has been agreed from 5 April 2015 for a further 5 year term. The rent has been a rebased to £125,000 pa (£8.63 psf). There is an unexpired term of 5.5 years.

VATThe prices quoted are exclusive but may be subjective to VAT.

Covenant InformationYodel Delivery Network Limited is the UK’s leading parcel delivery company. In March 2010, Home Delivery Network Limited (HDNL) now Yodel Delivery Network Limited, acquired the domestic parcel delivery business of DHL (DHL Domestic), through its wholly owned subsidiary, Parcelpoint Limited. The combined business now trades as “Yodel” and is the largest parcel delivery business in the UK, delivering over 135 million parcels per year.

Between January and July 2012 the business moved to a fully integrated national Service Centre network of 57 sites. This move to an integrated national Service Centre network delivered a fundamental shift in the company’s financial performance and has seen a full integration of the two businesses. Pre-tax losses include large restructuring and reorganisation charges hence do not reflect the underlying performance of the business.

Due to consumer demand, Yodel has recently launched YodelDirect - its first ever collection and delivery service that can be accessed directly by consumers.

Yodel Delivery Network Limited have a D&B rating of 4A2 and their accounts for the past three years are as follows:

Year Ending (£000’s)

30 June 2013 30 June 2012 30 June 2011

Turnover 379,024 535,142 723,563

Profit (Loss) before Taxes

(98,297) (66,937) (131,836)

Net Worth 33,798 77,379 (163)

Further information can be found at www.yodel.co.uk

Shop Direct Limited is the UK and Ireland’s leading multi-brand digital retailer, delivering more than 48 million products every year into 25 million parcels to five million active customers.

Annual sales are £1.7 billion and their household name digital department stores include Very.co.uk, Littlewoods, isme and Woolworths.co.uk. Between them, they receive more than 950,000 website visits every day.

Almost 80% of Shop Direct’s sales are now online, with more than a quarter of those from mobile devices. Mobile traffic to their websites has increased by more than 150% over the last 12 months and continues to grow rapidly.

Both Yodel Delivery Network Limited and Shop Direct Limited are subsidiaries of LW Corporation, the investment holding company of Sir David and Sir Frederick Barclay and their families.

Shop Direct Limited have a D&B rating of 5A2 and their accounts for the past three years are as follows:

Year Ending (£000’s)

30 June 2013 30 June 2012 30 June 2011

Turnover 1,690,000 1,670,100 1,938,100

Profit (Loss) before Taxes

6,600 (57,700) (113,900)

Net Worth 108,900 79,200 116,900

Further information is available at www.shopdirect.com

Omega HousePeel Cross, Eccles New Road, Salford, M5 4SE

Further informationShould you wish to inspect the property or require additional information, please contact:

EPCAn Energy Performance Certificate (EPC) is available upon request or downloaded from our website www.gva.co.uk/8270

ProposalOffers are sought in excess of £1,075,000 (One Million Seventy Five Thousand Pounds), subject to contract and exclusive of VAT.

This would reflect an attractive net initial yield of 14.53% and a reversion of 11.00% in April 2015, assuming acquisition costs of 5.80%

Very low capital value of £74.22 psf.

Adam Wildig Direct Dial: 0161 956 4029 adam.wildig@gva.co.uk

Gurminder Manak Direct Dial: 0161 956 4105 gurminder.manak@gva.co.uk

GVA, Norfolk House 7 Norfolk Street Manchester M2 1DW

For any other investment sales please visit:gva.co.uk/investment

EmailAdam Wildig

EmailGurminder Manak

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SUBJECT TO CONTRACT

October 2014

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GVA is the trading name of GVA Grimley Limited and is a principalshareholder of GVA Worldwide, an independent partnership of propertyadvisers operating globally gvaworldwide.com

GVA Grimley Limited Conditions under which Particulars are issued GVA Grimley Limited for themselves, for any joint agents and for the vendors or lessors of this property whose agentsthey are, give notice that:1.) The particulars are set out as a general outline only for the guidance of intending purchases or lessors and do not constitute, nor constitute part of, an offeror contract. 2.) All descriptions, dimensions, references to condition and necessary permission for use and occupation, and other details, are given in good faith and are believed to becorrect but any intending purchasers or tenants should not rely on them as statements or representations of fact but satisfy themselves by inspection or otherwise as to the correctnessof each of them. 3.) No person in the employment of GVA Grimley Limited or any joint agents has any authority to make or give any representation or warranty whatever in relation tothis property. 4.) All rentals and prices are quoted exclusive of VAT. Reproduced by courtesy of the Controller of HMSO. Crown Copyright reserved. Licence No 774359. If applicable, withconsent of Chas E Goad, Cartographers, Old Hatfield, Geographers A-Z Map Co Ltd and/or The Automobile Association. For identification purposes only.