PRIME MULTI-LET OFFICE INVESTMENT

MANCHESTER CITY CENTRE M2 2EE

EXECUTIVE SUMMARY • Absolute prime multi-let office investment

within Manchester’s traditional office core.

• Comprises of 12,580 sq ft of offices arranged over six upper floors.

• Fully let to a range of professional occupiers including Eddie Rockers, Get Recruited, Millerbrook Properties and Cunningham Solicitors.

• Long leasehold interest with 92 Years unexpired.

• Total net rent of £234,274 per annum (£18.62 psf) from completion.

• Estimated rental value of £253,806 per annum (£20.17 psf).

• Well positioned for future rental growth.

• WAULT of 3.5 to break and 4.2 to expiry.

• Seeking offers in excess of £3,500,000 (Three Million Five Hundred thousand). Providing the following yield profile after allowing for purchaser’s costs of 6.5%.

Net Initial : 6.28% Reversionary: 6.80% Capital Value : £278 psf

83 FOUNTAIN STREET MANCHESTER CITY CENTRE M2 2EE

MANCHESTER Manchester has earned itself a reputation as the “UK’s second city” and is widely regarded as the largest financial hub outside of central London. The city also leads the way as the North West capital for the administrative sector, education and retail.

Greater Manchester has a population of approximately 2.6 million people that contribute circa £51 billion GDP, the largest regional economy in the UK. Since 2008 over £4 billion has been invested in direct commercial real estate in the city making it 46th in the world. The only regional city to feature in the top 50 alongside London. This has allowed areas like Spinningfields and other city centre developments to attract high profile occupiers such as BNY, Google, Ford Credit and Barclays. Manchester has also seen an increase in companies such as Kellogs, Siemens and Adidas moving their headquarters to the city.Manchester’s graduate retention figures are some of the highest in the UK allow tenants easy access to talent from approximately 100,000 students in the city.

The city’s tourism economy equates to around £6.6 billion per annum making it the third most popular UK city for international visitors. This is largely driven by Manchester’s culture and sport with the worlds second busiest live music venue, Manchester Arena, six theatres and multiple museums alongside the two global football giants of Manchester City and United.

83 FOUNTAIN STREET MANCHESTER CITY CENTRE M2 2EE

SITUATION 83 Fountain Street is situated on the junction between Fountain Street and Booth Street. The building is at the heart of Manchester City Centre’s prime financial and professional district, outside of Spinningfields and close to Manchester Town Hall and St Peter’s Square.

83 Fountain Street is located within a 1 minute walk of the St Peter’s Square Metrolink station which is serviced by all Metrolink lines. The Metrolink Provides access throughout the city centre and out to Eccles and Altrincham to the east and Bury and Rochdale to the north and Manchester Airport in the south. The property is also within a 8 minute walk of all of the major train stations of Manchester (Piccadilly, Oxford Road, Victoria and Deansgate)

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83 FOUNTAIN STREET MANCHESTER CITY CENTRE M2 2EE

DESCRIPTION 83 Fountain Street comprises a modern 7 storey building of steel frame construction with double glazed windows and brick elevations. The property extends to 12,580 sq ft in total.

The property was extensively refurbished in early 2000’s and benefits from an impressive double height glazed entrance reception directly fronting Fountain Street. The building has a secure basement car park with ramped access providing parking for 7 vehicles.

At the ground floor of 83 Fountain Street there is a self contained licenced gastro pub trading as ‘The Directors Box’ which has previously been sold off on a long leasehold basis expiring in 2110. The owner, Unique Pub Properties Limited, also owns the ultimate freehold of 83 Fountain Street.Internally the office accommodation benefits from:

• Suspended ceilings• Recessed lighting • Air conditioning to part• 7 person lift

• Intercom entry system• Double glazed windows• Perimeter trunking

83 FOUNTAIN STREET MANCHESTER CITY CENTRE M2 2EE

ACCOMMODATION The property extends to 12,580 sq ft of office accommodation over six upper floors, excluding the ground floor Gastro Pub. The property also benefits from 7 additional basement car parking spaces with ramped access from West Mosley Street.

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83 FOUNTAIN STREET MANCHESTER CITY CENTRE M2 2EE

TENANCIES The property is let in accordance with the attached tenancy schedule and will provide a net rental income of £234,274 per annum (£18.62 psf) on completion.

The vendor currently occupies two office suites on the third and fourth floors which will be let to two of the vendor’s associated businesses.

On completion, Millerbrook Properties and AH Shared Services will enter into 2 co-terminus leases for a period of 5 years. The leases will be drafted on full repairing and insurance terms (by way of a service charge) and incorporate a tenant only break on the 3rd anniversary, subject to 6 months notice.

The leases will include 5 car parking spaces and the vendor will also enter into annual licences on the two remaining car park spaces for a minimum period of 24 months.

TENANT COVENANT We have summarised the covenant strength of the tenants below:

• Eddie Rockers Limited ( Company no. 03009737): D&B Rating 3A1

• Get Recruited Limited ( Company no. 07226070): D&B Rating C2 Get Recruited a is national multi sector recruitment agency with a proven track record of providing Permanent, Temporary and Contract Recruitment solutions.

• Corinthian Tax LLP ( Company no. OC370743): D&B Rating H3 Corinthian Tax LLP are Chartered Tax Advisors and Accountants based in Manchester city centre. They provide tax advice and accountancy services to both individuals and businesses.

• Millerbrook Properties Ltd ( Company no. 04433361): D&B Rating N2 Millerbrook Properties Ltd is a well established property company established by the vendor in 2002. Millerbrook Specialise in investment and development of both commercial and residential properties.

• AH Shared Services ( Company no. 08400402): D&B Rating N4 AH Shared Services is owned by the vendor and Is the parent company of several prominent legal services companies. These trading brands include fully owned subsidiaries of Tandem Law, Antony Hodari Solicitors and Paul Rooney Associates.

• Learning Unlimited (Company no. 08287673): D&B Rating H3 Learning Unlimited is part of Chesterfield College and provides a range of apprenticeships and employee training to businesses and current students.

• Cunninghams Solicitors (Company no. 08400402): D&B Rating O3 Cunninghams Solicitors is a criminal defence practice who specialise in the defence of allegations of serious fraud, money laundering, and VAT & Tax fraud.

• DRSP Ltd (Company no. 07678656): D&B Rating D2 DRSP Ltd specialise in claims for financial mis-sold Payment Protection Insurance (PPI), mis-sold Pay Day Loans (PDL) and mis-sold Self Invested Pension Plans (SIPP).

Year End 31/03/2017 31/03/2016 31/03/2015

Turnover £11,922,968 £8,355,803 £7,165,637

Pre Tax Profit £2,857,571 £1,040,702 £1,327,654

Net Worth £8,087,192 £5,840,425 £5,114,738

83 FOUNTAIN STREET MANCHESTER CITY CENTRE M2 2EE

TENANCY SCHEDULE

Demise Tenant NIAsq ft

CarSpaces

RentPassing

Rentper sq ft ERV ERV

(£/sqft)Lease Term

LeaseExpiry

BreakOption

Rent Review Comments

Ground FloorUnique Pub Properties

- - 0 0.00 - - Long Lease 23/12/2110 n/a n/a Held on long leasehold.

First FloorEddie Rockers Ltd

1,911 - £27,289 £14.28 £36,309 £19.005 years from29/05/2015

28/05/2020 n/a 5 yrsService charge cap £11,328.12 pa subject to RPI review

Second Floor

Get Recruited 2,182 - £39,276 £18.00 £41,458 £19.005 years from01/03/2018

28/02/2023 n/a n/a

Third Floor Suite A

Corinthian Tax LLP

1,082 - £15,689 £14.50 £20,558 £19.006 years from09/10/2014

08/10/2020 n/a 5 yrs

Third Floor Suite B

Millerbrook Properties Ltd 961 3 £24,259 * £19.00 £24,259 £19.00 5 Years from

completion TBC TBC5 year lease 3 year break from completion, * assuming car park @ £2,000 per space (3)

Fourth Floor AH Shared Services Ltd 2,185 2 £45,515 * £19.00 £45,515 £19.00 5 years from

completion TBC TBC5 year lease 3 year break from completion, * assuming car park @ £2,000 per space (2)

Part Fifth Floor

Learning Unlimited 1,346 - £24,901 £18.50 £25,574 £19.00 5 years from

01/04/2018 01/04/2023 Tenant 4/1/2021 n/a

Part Fifth Floor

Cunninghams Solicitors 786 - £15,720 £20.00 £15,720 £20.00 5 years from

27/03/2018 26/03/2023 Tenant 3/27/2020 - Annual tenant break after 2

years on 6 months notice

Sixth Floor DRSP Ltd 2,127 - £37,625 £17.69 £40,413 £19.00 28/02/2017 27/02/2022 Tenant 28/02/2020 n/a

2 Parking Spaces

AH Shared Services Ltd _ 2 £4,000 _ £4,000 _

Minimum 2 years from completion

_ _ _12 months licence from completion, car park @ £2,000 per space (2)

Totals 12,580 7 £234,274 £253,806

83 FOUNTAIN STREET MANCHESTER CITY CENTRE M2 2EE

OCCUPATIONAL The most recent letting to Cunninghams Solicitors in March 2018 reflected a rent of £20 per sq ft which still remains significantly below the rental tone of surrounding buildings.

Building Rent £ sq ft.

31 Booth Street £24.00

82 King Street £32.50

The Pinnacle £30.00

Clarence House £24.50

1 New York Street £30.00

MARKET COMMENTARY Manchester is home to the best performing UK regional city centre office market outside of London with a total stock of circa 19m sq ft. Latest figures have confirmed that in 2017 the city centre experienced take-up of over 1.2m sq ft with an average annual take-up over the past 10 years is in excess of 1m sq ft.

Demand in 2017 remained strong with an encouraging mix of small and medium sized business taking space alongside the larger floor plate transactions. An example of this is that 80% of lease transactions in Manchester City Centre are 5,000 sq ft or less.

The Manchester market predicts a sharp rental increase in good quality refurbished buildings due to the lack of new build stock available.

We estimate the current ERV to be £253,806 (£20.00 psf) as per the tenancy schedule, offering a purchaser the opportunity of further rental growth.

INVESTMENT COMMENTARY The Manchester investment market over the last 3 years has seen a continuation of strong investment demand for city centre offices during this period. A diverse range of domestic and overseas investors traded in excess of £2 billion of office investment transactions.

This trend is typical of the total investment volumes seen in 2017 for Manchester City Centre offices that reached £878.65 million, 80% greater than the 10-year average of £483 million and 32% higher than figures recorded in 2016.

Current prime new build office yields reflect 4.75% with prime refurbished offices demanding yields of around 5.25%. Strong investment demand has lead to prime investment yields of sub 5% for both new build and refurbished offices and capital values of between £274 and £557 per sq ft.

83 FOUNTAIN STREET MANCHESTER CITY CENTRE M2 2EE

EPC The first, second, third, fourth and sixth floor have an EPC rating of C67 and the fifth floor has an EPC rating of C53. A copy of the EPC’s are available on request.

VATThe property is elected for VAT and it is envisaged that the transaction will be treated as a Transfer of a Going Concern.

CAPITAL ALLOWANCESAny unclaimed capital allowances will be retained by the vendor.

SERVICE CHARGEThe current service charge budget running between 30th September 2017 and the 29th September 2018 is £81,450. This reflects £6.45 per sq ft.

TENURE The property is held long leasehold from 25th December 1985 expiring on 24th December 2110 at a rent of one peppercorn. The freehold is owned by Unique Pub Properties Limited who are also the owners of the long leasehold interest in the gastro pub on the ground floor.

Misrepresentation Act 1967. Unfair Contract Terms Act 1977 The Property Misdescriptions Act 1991. These particulars are issued without any responsibility on the part of the agents and are not to be construed as containing any representation or fact upon which any person is entitled to rely. Neither the agents nor any person in their employ has any authority to make or give any representation or warranty whatsoever in relation to the property. May 2108. RB&Co 0161 833 0555. www.richardbarber.co.uk

PROPOSAL We are instructed to seek offers in excess of £3,500,000 (Three Million Five Hundred Thousand Pounds). This reflects the following attractive yield profile after allowing for purchases costs of 6.5%

Net Initial : 6.28%Reversionary: 6.80%Capital Value : £278 psf

FURTHER INFORMATIONFor further information or to arrange an inspection please contact:

Dan CrossleyDD: 0161 819 8221E: dan.crossley@avisonyoung.com

Oliver RoweDD: 0161 819 8212E: oliver.rowe@avisonyoung.com

Kipp Harden DD: 0161 507 4714E: kipp.harden@avisonyoung.com

83 FOUNTAIN STREET MANCHESTER CITY CENTRE M2 2EE