FOR SALE MULTI-LET CITY CENTRE OFFICE INVESTMENT OPPORTUNITY. Quartz Point THE STONEBOW, YORK YO1 7NP

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2 YORK RAIL STATION YORK MINSTER MARKS & SPENCER UNIVERSITY OF ST JOHN RESIDENCE Q PARKS MSCP HISCOX INSURANCE KINGS POOL HUNGATE FUTURE PHASES HUNGATE COMPLETED PHASES 02

3 FOR SALE FOR SALE MULTI-LET CITY CITY CENTRE OFFICE INVESTMENT OPPORTUNITY Investment Summary The City of York is the commercial centre of North Yorkshire and a major tourism and transport hub is a modern building developed in % let and income producing Fixed rental increase in May 2020 Current passing rent of 195,344 per annum Let to Mott Macdonald Limited and Pryers Solicitors LLP WAULT of 7 years to expiry and 3.6 years to break Freehold We are instructed to seek offers in excess of 2,450,000 (Two Million Four Hundred and Fifty Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level reflects a Net Initial Yield of 7.50% assuming usual purchase costs of 6.38%, a yield of 7.81% in May 2020 and a low capital value of 215 per sq ft. 03

4 Economy York The historic City of York lies in the centre of the United Kingdom, equidistant from London and Edinburgh, and is internationally renowned for its architecture, heritage and tourism. York is the UK s first UNESCO City of Media and Arts and the UK s founding Science City and first Gigabite City. The City is an international business destination and currently supports some 100,000 jobs and contributes 3 billion of value to the national economy. According to growth projections for the City up to 2030, the York economy is set to grow at a faster rate than both the UK and regional averages (Source www. yorkmeansbusiness.co.uk). York is home to internationally competitive industry and research expertise in biosciences, healthcare/ medicine, bio-renewables and high tech rail, as well as growing and dynamic businesses operating in a diverse range of sectors from finance and insurance to IT, digital and creative technologies. The City also has two universities, the University of York and York St John, with student numbers of approximately 20,000. With the most resilient economy in the North of England, York also offers an outstanding quality of life, from world renowned heritage and diverse, quality housing to retail and tourism/leisure opportunities. In 2012, total visitor numbers were 7 million who contributed over 575 million to the local economy. 04

5 A19 River Ouse To Middlesborough and A1 (M) Shipton Rd A1237 A64 FOR SALE MULTI-LET CITY CENTRE OFFICE INVESTMENT OPPORTUNITY Road Clifton Moor Gt B1363 A1036 The City is positioned 27 miles north east of Leeds and has excellent road links, being situated on the A64 dual carriageway which connects with the national motorway network via Junction 44 of the A1(M) to the south west. Rail Boroughbridge Rd Clifton Rd Malton Rd YORK York enjoys excellent communications via the rail network with a regular service to London (Kings Cross) and a fastest journey time of approximately 1 hour 50 minutes. A1237 B1224 A59 Tadcaster Rd YORK Fulford Rd Lawrence St A1079 A64 To Hull Air Leeds Bradford International Airport is situated approximately 38 km (24 miles) to the south west and Durham Tees Valley Airport is approximately 56 km (35 miles) to the north. A1036 A64 To M62 (J37) To Leeds and A1(M) J45 Demographics/Employment At the 2011 Census, York had a population of 198,000 a 9.4% increase since Since 1971, York s population has grown by nearly 31% with a 19,000 population increase over the last decade. At 2011, York had total employees of 103,000 with slightly above average concentrations of finance, professional and business services and other services employees. The City boasts an affluent demographic profile with a significantly above average representation of the adult population within the most affluent A, B & C social grouping. York s economy is forecast to grow by 9.50% by 2021, which is greater than major regional cities such as Birmingham, Liverpool and Sheffield. Unemployment at September 2014 stood at 1% compared to the GB average of 2.6%. Major employers in York include Aviva, Network Rail, Northern Rail, City of York Council, York Hospitals NHS Trust, University of York and Tesco. 05

6 YORK HOSPITAL LOWITHER STREET FOR SALE MULTI-LET CITY CENTRE OFFICE INVESTMENT OPPORTUNITY SYCAMORE TERRACE YORK RAILWAY STATION A1036 STATION RD A19 LONGFIELD TERR FREDERIC ST LEEMAN ROAD ST. MARY S TOFT GREEN GROSVENOR TERRACE MARYGATE WELLINGTON ROW TANNER ROW ROUGIER ST MICKELGATE TRINITY LN A19 MUSEUM GARDENS BOOTHAM MUSEUM ST ST. MARTIN S LANE LENDAL NORTH ST ST. LEONARD S PL A1036 RIVER OUSE GILLYGATE CONEY ST SKELDERGATE STONEGATE DAVYGATE SPURRIERGAT E BRIDGE ST RETAIL CORE B1227 CLARENCE STREET YORK MINSTER YORK ST JOHN UNIVERSITY MINSTER YARD LOW PETERGATE SWINEGATE PARLIAMENT STREE T COPPERGATE CLIFFORD ST TOWNEND STREET LORD MAYOR S WALK CASTLEGATE OGLEFORTH GOODRAMGATE COLLERGATE FOSSGATE SHAMBLES COPPERGATE CENTRE PICCADILLY MONKGATE THE STONEBOW LOWITHER STREET WALMGATE JEWBURY 2 1 RIVER FOSS Situation is situated in the vibrant Fossgate Quarter, only a short walk from the famous medieval Shambles and within 10 minutes of York Rail Station. The prime retail areas of Coney Street and Parliament Street are within a short walk. Stonebow is being revitalised with the development of Hungate and Stonebow House, which are directly opposite and adjacent to :- 1 Hungate - A mixed-use scheme with the potential to provide 1,250 residential apartments and 20,000 sq ft of retail accommodation. Phase 1 (200 units) and Phase 2 (195 units) are completed and built. 2 Stonebow House A comprehensive redevelopment that will provide 31,500 sq ft of retail and leisure space with 17 luxury apartments and 4 penthouses. The project will be completed in Spring Occupiers in the immediate vicinity include DEFRA, who are one of the occupiers in the 142,000 sq ft Secretary of State Kings Pool development within 200m of. In addition, Hiscox Insurance occupy a new-build 60,000 sq ft office opposite which is home to 500 employees. PRIORY ST 06

7 Description was developed by Evans Property Group in 2010 and provides 11,364 sq ft of Grade A office accommodation over ground and two upper floors. The building is an attractive mix of masonry and glazing and benefits from the following specification: BREEAM Good Combined heating and cooling system Recessed LG7 fluorescent lighting Full access raised floors Suspended ceilings 8-person high speed passenger lift 07

8 Tenure Freehold Accommodation Floor Area Sq Ft Area Sq M Ground 5, First 3, Second 2, Total 11,364 1,055.6 Tenancies The property is fully let in accordance with the tenancy schedule below and produces a current income of 195,344 per annum. Notably, Mott Macdonald did not exercise their option to break in Unit Description Tenant Name Start Date Expiry or Termination Date Next Option Date - Report Next or O/S Review Current Rent Area Rent /Sq Ft Comments First Floor Mott Macdonald Limited 29/9/ /9/ ,624 3, Ground & Second Floor Pryers Solicitors LLP 1/9/ /8/2026 Break 31/08/2021 1/9/ ,720 7, Break is subject to 6 months prior written notice. Rent increases to 140,859 on 13 May Total 195,344 Total Rent at 13 May ,483 08

9 Covenant Strengths Mott Macdonald Limited ( ) is a multi-disciplinary consultancy with its headquarters in the UK (Croydon). It is one of the largest employeeowned companies in the world and employs 16,000 staff in 150 countries. Year Ending Turnover Pre-Tax Profit Net Worth 31/12/ ,105 46, ,257 31/12/ ,610 40, ,724 31/12/ ,295 46, ,971 The company has a D&B Rating of 5A1. Pryers Solicitors LLP (OC335469) is a firm of solicitors established in 2002 to act for people injured in the course of medical treatment and accidents. They are now the largest medical negligence, personal injury and medical product liability firm in the North of England. Year Ending Turnover Pre-Tax Profit Net Worth 30/11/ ,018 30/04/2015 5,799 2,621 3,917 30/04/2014 5,142 1,476 3,246 York Occupier Market The current office stock of approximately 3,700,000 sq ft has seen a significant amount removed from the market as office buildings have been converted to residential use. Grade A office supply in York City Centre is very restricted with a limited development pipeline compounded by good levels of demand. There is currently less than 10,000 sq ft of vacant Grade A office space available, with a further 12,500 sq ft available by way of assignment. Future development is severely restricted by the historic constraints of the City Centre and available sites. Prime rents in York range between per sq ft and per sq ft. has achieved some of the highest rentals in York, demonstrating the quality of the building and its location. Investment Rationale One of the few new-build office buildings within the York CBD Both tenants are in full occupation Opportunity to remove break clause in Pryers Solicitors lease Lack of development pipeline will create strong rental growth York s economy is forecast to grow quicker than Liverpool, Sheffield and Birmingham over the next four years Micro location continually improving with the development of Hungate and Stonebow House. Prime rents in York offer excellent scope for growth when compared to Leeds at per sq ft. 09

10 Investment Proposal VAT The property is elected for VAT and it is envisaged that the sale will be treated as a Transfer of a Going Concern (TOGC). Service Charge The current service charge for year ending March 2018 is 3.46 psf. Further information For further information including access to the data room and viewing arrangements, please do not hesitate to contact one of the sole agents:- Mathew Atkinson DD: mathew.atkinson@eu.jll.com Richard Hinds DD: richard.hinds@eu.jll.com EPC Copies are available upon request Proposal We are instructed to seek offers in excess of 2,450,000 (Two Million Four Hundred and Fifty Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level reflects a Net Initial Yield of 7.50% assuming usual purchase costs of 6.38%, a yield of 7.81% in May 2020 and a low capital value of 215 per sq ft. Crown Copyright All rights reserved. Promap licence number Jones Lang LaSalle licence number This plan is published for the convenience of identification only and although believed to be correct is not guaranteed and it does not form any part of any contract. Disclaimer - JLL for themselves and for the vendors or lessors of this property whose agents they are, give notice that:- a. the particulars are set out as a general outline only for guidance and do not constitute, nor constitute part of, an offer or contract; b. all descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are believed to be correct, but any intending purchasers, tenants or third parties should not rely on them as statements or representations of fact but satisfy themselves that they are correct by inspection or otherwise; c. no person in the employment of JLL has any authority to make or give any representation or warranty whatever in relation to the property; d. Any images may be computer generated. Any photographs show only certain parts of the property as they appeared at the time they were taken. For properties in Scotland: e. This correspondence is expressly subject to completion of formal legal missives in accordance with Scots Law Copyright Jones Lang LaSalle IP Inc January All rights reserved.