Prime Office Investment For Sale FORTYFOUR. PETERSTREET Manchester City Centre

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1 Prime Office Investment For Sale

2 Investment Summary A prime freehold Manchester city centre office building Manchester is the UK s 2nd city and is the economic and cultural capital of the North West region Situated in a central location in an area of the city which is undergoing major redevelopment Developed in 1990 and comprehensively refurbished in 2005 the property comprises of 24, 814 sq ft (2,305 sq m) of high quality office accommodation arranged over ground and 6 upper floors plus 14 basement car spaces The property has let up continuously through the recent recession and a number of opportunities exist to regear tenant leases The property benefits from a quality tenant line up including Kennedy Solicitors, Grifiths & Armour and Buck Consultants Average unexpired lease term of 2 years to expiry. The total current income is 515,833 per annum reflecting an average rent of less than 21 psf. Freehold Capital Value of psf Offers are sought in excess of 8,125,000 (eight million, one hundred and twenty five thousand) subject to contract and exclusive of VAT. A purchase at this level will reflect a 6.0% net initial yield assuming standard purchase costs of 5.8%. For further information please contact: Chris Bathurst Chris Dudhill Tel: Tel:

3 Location Manchester is the acknowledged capital of the north of England and is the largest English financial and business centre outside London. Manchester forms the focus of economic activity in the North West and comprises a strong mix of banking, finance, service sector businesses and manufacturing industries. Greater Manchester is home to a population of 2.6 million and accounts for 28 billion of the region s GDP. The economy is extremely diverse with an estimated 70 of the FTSE 100 companies represented, together with over 50 international banks and 600 major overseas companies. It is already the 2nd most populous large urban zone in the UK after London and the 16th in Europe, with 7 million people living within 1 hour s drive time. Financial and professional services accounts for 56% of jobs in Manchester, placing it in the top 30 cities in the world for this sector. The city is forecast to see an average 2% growth per annum in office based employment over the next 10 years. Positive employment growth is expected to continue well in to the next decade, with 19,000 additional office based jobs created by 2023.

4 Connectivity Road 25% of the UK s motorway network runs through the northwest region, therefore approximately 60% of the UK s population is within a 2.5 hour drive time. The M60 orbital motorway- provides excellent linkages around the Greater Manchester Conurbation. Destination Miles Drive Time Birmingham 86 1hr 37mins Derby 81 1hr 45mins Glasgow 216 3hrs 25mins Hull 98 1hr 54mins Leeds 45 59mins Liverpool 34 43mins London 199 3hrs 41mins Nottingham 81 1hr 56mins Sheffield 38 1hr 12mins Air Manchester International Airport is the 3rd largest airport in the UK offering flights to over 200 International destinations and carrying over 20 million passengers a year. The airport is located 6 miles south of Manchester City Centre and is shortly to benefit from direct Metrolink access from. Rail Manchester is linked to the National Rail Network and the city centre is served by 2 mainline railway stations; Piccadilly and Victoria. Journey times to London Euston have been reduced to approximately 2 hours with 3 services running every hour. Destination London Birmingham Edinburgh Glasgow Leeds Liverpool Nottingham Paris Rail Time 2hrs 8mins 1hr 31mins 3hrs 18mins 3hr 16mins 49mins 50mins 1hr 48mins 5hrs 12mins Metrolink Metrolink is one of the most successful light rail systems in the UK, providing access around the city centre and the wider conurbation. The network is set to expand further with work underway on a new line across the city and to Manchester Airport. ROCHDALE TOWN Rochdale Railway Statio Newbold Kingsway BURY Milnrow Newhay Radcliffe Shaw & Crompton Whitefield Besses o th Barn Derker Oldham Mumps Oldham Central Prestwich Oldham King Street Heaton Park Westwood Freehold Bowker Vale South Chadderton Crumpsall Hollinwood Failsworth Abraham Moss Woodlands Road Central Park Monsall Newton Heath & Moston VICTORIA Shudehill ECCLES Weaste Ladywell Langworthy MEDIA CITY UK Broadway Anchorage Harbour City Salford Quays Exchange Quay Pomona Mosley Street St Peter s Square Deansgate-Castlefield CORNBROOK Trafford Bar CITY ZONE Market Street Piccadilly Gardens PICCADILLY New Islington Holt Town Etihad Campus Sportcity - Velodrome Clayton Edge Lane Cemetery Lane Droylsden Ashton Audensh Old Trafford Stretford Dane Road Sale Brooklands Timperley Navigation Road ALTRINCHAM Firswood Chorlton-cum-Hardy St. Werburgh s Road Withington Burton Road West Didsbury Didsbury Village EAST DIDSBURY

5 Miller St Victoria Station CHANCERY PLACE ONE ST PETERS SQUARE A56 Manchester Cathedral Corn Exchange Corporation St Printworks Shudehill S Blackfriars St TOWN HALL 1 MANCHESTER CENTRAL Manchester Arndale Shopping Centre Market St High St Back Turner St Church St Thomas St Oldh SPINNINGFIELDS GREAT NORTHERN WAREHOUSE Wood St Bridge St John Rylands Library W King St Deansgate King St S King St John Dalton St Cross St King St Brown St CHANCERY PLACE Spring Gardens Milk St Marble St Fountain St W Mosley St Piccadilly Piccadilly Gardens Situation 44 Peter Street occupies a very central location within Manchester city centre adjacent to the 5 Star Radisson Edwardian Hotel and equidistant between two of the largest office developments in Manchester city centre, namely: One St Peter s Square and Spinningfields both within 150 metres of the property. In addition to being a recognized office address the immediate location is regarded as the city s conference and upscale hotel area with Manchester Central Plaza and conference centre immediately to the rear of the property. Proposals for the development of further hotels, conference and leisure facilities within The Great Northern Warehouse complex and the Bootle Street Police Station site will further add to the mix of high quality occupiers in the area. The building is just a few minutes walk from both Oxford Road and Deansgate Railway stations and 100 metres from St Peters Square Metrolink station. Spinningfields SPINNINGFIELDS Deansgate Great Northern Warehouse Peter St Peter St Watson St Lloyd St Jackson s Row Bootle St Great Bridgewater St Windmill St Manchester Central Convention Centre A6042 Mount St A5103 Princess St Town Hall Central Library ONE ST PETERS SQUARE BARBIROLLI SQUARE Chepstow St George St A34 Nicholas St Charlotte St New York St Portland St Abingdon St Sackville St Chorlton St Whitworth St Granby Row Minshu Sackville Deansgate Station Whitworth St W Oxford Road Station

6 GROUND FLOOR TYPICAL UPPER FLOOR Description 44 Peter Street offers contemporary Grade A office space with the benefit of on site parking. The building was constructed in 1990 and underwent a full plant and machinery refit in 2003 and a comprehensive refurbishment of the common areas and office space in The building provides a high level office specification incorporating the following: 2 high-speed passenger lifts Male and Female WC facilities to each floor Dedicated on-site Building Manager 24 hours, 7 days a week access Fully DDA compliant 24 hour CCTV surveillance Secure basement car parking Full access raised floor LG3 compatible lighting VRV Air-Conditioning System Metal pan suspended ceiling

7 Accomodation The property has been measured in accordance with the RICS code of measuring practice and the building extends to 24,814 sq ft (2,305 sq m) over ground and 6 upper floors and is currently subdivided into 9 individual suites. Individual office floors extend to 3,600 sq ft. In addition the property benefits from 14 basement car spaces. Floorplans are available in the data room. EPC Radisson Edwardian Free Trade Hall Hotel Energy Performance Certificate is available in the data room. Tenure Freehold

8 Tenancy The property is let in accordance with the tenancy schedule below and currently produces a total income of 515,833 pa reflecting rents between psf to psf with car spaces at 2,500 per space. The property has an AWULT to expiry of 2 years. The current property service charge equates to 4.13 psf ( 4.22 psf in 2013). Tenancy Schedule Floor Area CPS Tenant W.E.F Term Expiry (Break) R/R Freq (Next) Rent p.a. ERV ERV (psf) Comment Ground 2,250 1 Selection Group Ltd 01-Sep Aug-16 37,125 49, Rent increase 01 Sep 15 to 40,500pa 1st floor Griffiths & Armour Ltd 01-Jan Dec-22 (01-Jan-18) 5 01-Jan-18 50,470 56, month Rent free if break not exercised. SC Cap at 5.50psf + Annual Increase in RPI 1st floor 622 Hunter Education Ltd 01-Oct Sep-7 (31-Mar-16) (31-Sep-16) 11,394 13, Rent increase 01 Apr 15 to 13,026pa 2nd floor 3,600 2 Messrs Corbett, Philip & Jones (Kennedys Sol) 06-Nov Oct ,000 80, rd floor 3,545 2 Messrs Corbett, Philip & Jones (Kennedys Sol) 10-Oct Oct ,900 79, th floor 3,525 1 Rmri Plc 17-Dec Dec ,000 76, SC Cap at 5.60psf + Annual increase in RPI 5 & 6th floor 6,189 4 Buck Consultants Ltd 01-Feb Jan , , th floor 1,225 Rmri Plc 17-Dec Dec-15 24,500 25, SC Cap at 5.60psf + Annual increase in RPI 7th floor 1,265 Messrs Rolland Williamson Webster & Grice 16-Sep Sep-15 23,924 25, Car Space 1 Rmri Plc 17-Dec Dec-12 2,500 2,500 2,500 Holding over Car Space 1 Rmri Plc 17-Dec Dec-12 2,500 2,500 2,500 Holding over Car Space 1 Selection Group Limited 01-Apr Mar-15 1,740 2,500 2,500 Mutual rolling break on 1 month notice Total 24, , ,094

9 Covenant Status. The latest trading figures available have being listed in accordance with the schedule below. Copy Accounts are available in the data room. Market Commentary Statistics: Greater Manchester is the largest office market in the UK outside of London Total office stock = 22,250,000 sq ft Tenant Year Turnover Pre-Tax Profit Net Assets Comment Average total annual take up = 900,000 sq ft Selection Group Ltd Information unavailable Exemption small business Average Grade A take up = 325,000 sq ft Available Grade A space = 25,000 sq ft Grifiths & Armour Ltd 30-Nov-13 2,994,477 2,993,714 8,251, Nov-12 2,665,881 2,665,076 7,178,976 Current Vacancy Rate = 9% (less than 12 months supply) Published city centre office requirements = 925,000 sq ft Messrs Corbett, Philip & Jones (Kennedy s Law Llp) 31-Dec-12 37,879,000 ( 2,779,000) 1,633, Dec-11 29,208,000 5,775,000 8,534,000 Grade A offices under construction = 268,000 sq ft (1 St Peter s Square) The above figures identify a clear imbalance between supply and demand in the city centre, which signifies excellent potential for continuing rental growth on existing Grade A and Grade B office stock RMRI Plc Buck Consultants Ltd Messrs Rolland Williamson Webster & Grice 30-Jun-13 2,086,335 ( 254,780) ( 1,067,344) 30-Jun-12 1,998,944 ( 775,214) ( 733,241) 31-Dec-12 40,748,000 2,612,000 18,002, Dec-11 40,112,000 9,021,000 18,174,000 Information Unavailable Exemption small business. T/A Hurd Rolland Architects Prime rents in are now predicted to grow in 2015 to between 32psf and 35psf Property Tenant Area (sq ft) Rent (psf) Date The Pinnacle, King Street Archquest 1, Dec 2013 Vantage Point Enterprise 5, Jan King Street Zeus Capital 3, May 2014

10 Investment Market Over the course of the last 12 months 13 separate office investment transactions have occurred in, with a total value of 600,000,000. The recent sale of Chancery Place to NFU Mutual at an Initial yield of 5% has established the new benchmark prime yield in the city centre Property Tenants Area (sq ft) Price (Net Initial Yield) Capital Value ( per sq ft) Date AWULT Chancery Place Kyocera, Clyde & CO, i2, HSB Engineering, Clearwater Finance, Travelers Insurance, JLL & QBE Management Services 106,000 57,000,000 (5.0%) 540 Sep years to expiry, 6 years to break Ship Canal House Gateley LLP, Stripes Solicitors Ltd, HIMOR Group Ltd, BNP Paribas and others 72,544 Under Offer at Circa 27m (5.75%) 370 Sep years to break, 5.6 years to expiry 1 Piccadilly Gardens Bank of New York Mellon, Allianz, JLL, HSBC 176,470 75,000,000 (5.5%) 425 Jul-14 4 year WAULT St James House JLT, Aldermore Bank Plc, Slater & Gordon, Watts 84,210 21,000,000 (6.15%) 250 Jun-14 3 years to break, 4.7 years to expiry Direct Line House UK Insurance Ltd 60,590 24,171,500 (5.65%) 399 May years to WAULT VAT VAT will be payable on the purchase price it is anticipated that the sale will be dealt with as a Transfer of a Going Concern (TOGC). Proposal We are seeking offers in excess of 8,125,000 (Eight million, one hundred and twenty five thousand) subject to contract for our clients freehold interest a purchase at this level reflects a 6.0% net initial yield, after deducting purchasers costs at 5.8%.

11 Further Information For further information or to arrange an inspection, please contact: Chris Bathurst Tel: Chris Dudhill Tel: MISREP: The accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained here in is not guaranteed and is for general guidance only and prospective purchasers or tenants must not rely on them as statements of fact or representations and must satisfy themselves as to their accuracy. Christopher Dee nor any of its employees or representatives has any authority to make or give any representation or warranty or enter into any contract whatever in relation to the property. Rents quoted in these particulars may be subject to VAT in addition. The reference to any mechanical or electrical equipment or other facilities at the property shall not constitute a representation (unless otherwise stated) as to its state or condition or that it is capable or fulfilling its intended function. Prospective tenants/purchasers should satisfy themselves as to the fitness of such equipment for their requirements. Designed and Produced by Ask October 2014.