Prime M42 Office Investment Opportunity. Lex Autolease HQ. Clive Kemp & Co. Blake House Eagle Court Business Park Birmingham B26 3RZ

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1 Prime M42 Office Investment Opportunity Clive Kemp & Co

2 Prime M42 Office Investment Opportunity 02 Investment Summary Proposal Eagle Court Business Park occupies a highly prominent position adjacent to Birmingham Airport, Birmingham International Railway Station, the future Birmingham Interchange Station and the M42 Motorway. Located within the prime Birmingham Out of Town Office Market, the M42 Corridor, which benefits from strong tenant demand, restricted supply and recent rental growth. The property fronts the A45 dual carriageway, less than 2 miles from Junction 6 of the M42. Blake House comprises a modern HQ style office building, built in 1999, extending to 37,597 sq ft. 146 car parking spaces are provided, giving an excellent ratio of 1:250 sq ft. Single let to A.C.L. Ltd, with guarantee from Black Horse Group Ltd, on a new 5 year lease from July 2018, with tenant only break at Year 3 subject to rental penalty. Lex Autolease s HQ facility. Lex Autolease are the UK s market leading vehicle leasing business, and have been in occupation of the building since construction in Excellent covenant strength - Both A.C.L. Ltd and Black Horse Group Ltd benefit from a 5A1 Dun & Bradstreet credit rating, representing a minimum risk of business failure. Both companies, along with Lex Autolease, are subsidiaries of Lloyds Banking Group Plc. The property produces a net rental income of 626,095 per annum reflecting per sq ft overall, assuming half rate on reception. We are instructed to seek offers in excess of 6,900,000 (Six Million and Nine Hundred Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects an attractive Net Initial Yield of 8.50% assuming full purchasers costs and a low capital value per sq ft of

3 Prime M42 Office Investment Opportunity 03 Location Birmingham is the regional capital of the Midlands and is firmly established as the UK s second city. With a population of circa 1.1 million it is the largest regional centre in the UK by population and economic status. Birmingham sits at the centre of the larger West Midlands conurbation with a population of circa 2.45 million. As a result Birmingham has one of the largest regional labour pools in the UK, with 4.3 million people of working age living within an hour s drive of the city centre. Birmingham has a strong and well balanced economy and is a major engine of UK growth. It is one of the fastest growing cities in the United Kingdom and Europe. Birmingham has the 10th largest city economy in Europe producing 100 billion + GDP per annum, ranking Birmingham ahead of Manchester (UK), Hamburg and Munich (Germany), Stockholm (Sweden) and Lyon (France). Birmingham is host to over 75,000 companies, including 1,200 international businesses. Birmingham benefits from world class transport infrastructure, providing exceptional local, national and international connections. BLACKPOOL LIVERPOOL M53 BRADFORD M56 2 MANCHESTER MANCHESTER LEEDS BRADFORD LEEDS M1 SHEFFIELD DERBY EAST MIDLANDS A1(M) M18 M1 YORK 2 NOTTINGHAM M180 Key: Phase 1 Phase 2 Road Birmingham is surrounded by the, Toll, M42 and M5 motorways, which effectively form an outer ring road linking the city to the wider national motorway network, including the M1 and M40. Rail Birmingham is a major railway interchange, enjoying two principal main line railway stations, Birmingham New Street and Birmingham International. There is a direct train service to London Euston from Birmingham International every 20 minutes with a journey time of 1 hour. Rail connectivity will be significantly enhanced by the delivery of serving Birmingham City Centre and Birmingham Airport from Air Located adjacent to the subject property, Birmingham Airport is the UK s fifth largest airport and the second largest outside of London, providing both national and international short and long haul flights. Birmingham Airport s runway was recently extended creating a truly international hub enabling direct flights to China and the West Coast of America. CARDIFF M54 WORCESTER BRISTOL M5 M42 GLOUCESTER M4 M40 M42 CHELTENHAM 9 INTERCHANGE BANBURY OXFORD SWINDON BASINGSTOKE M4 LEICESTER M1 M3 M40 READING LUTON PETERBOROUGH M1 M25 A1(M) CAMBRIDGE A1(M) M25 LONDON HEATHROW GATWICK M11 M20 M27

4 Prime M42 Office Investment Opportunity 04 Situation CHELMSLEY ROAD A452 TOWARDS CURZON Blake House is situated on Eagle Court Business Park, 8km (5 miles) east of Birmingham City centre, and 3km (2 miles) west of Junction 6 of the M42. The property is in close proximity to Birmingham Airport, Birmingham International Railway Station, and the NEC. The property is within the M42 Corridor, Birmingham s prime Out of Town Office Market, containing the Midlands most successful commercial locations including Birmingham Business Park, Trinity Park and Blythe Valley Business Park. ST GILES ROAD THE RADLEYS MARSTON GREEN HOLLY LANE MOOREND LANE JUNCTION 7 BUSINESS PARK CHESTER ROAD M42 A446 Blake House is situated at the entrance to Eagle Court Business Park, with prominent frontage to the A45, a major arterial route providing dual carriageway access between Birmingham City centre and the M42 Motorway. In turn, the A45 dual carriageway affords direct access to Hatchford Way, the estate road serving the park. Eagle Court Business Park provides three HQ style office buildings; Blake House, Eagle 2 and Eagle 3. Eagle 2 and 3 are occupied by Virgin Media, Rexel and Goldbeck Construction. Birmingham Airport Terminal and Birmingham International Railway Station are 2km (1.5 miles) to the east, adjacent to the National Exhibition Centre and Resorts World. Construction is due to commence imminently on s Birmingham Interchange Station, adjacent to Junction 6 of the M42, enhancing the already excellent transport connections in the immediate vicinity. Junction 6 of the M42 is also due to be upgraded, incorporating a new direct link road from Birmingham Airport to the M42. Solihull town centre lies 5km (3.5 miles) to the south and Sheldon just 1 km (0.8 miles) to the west, providing additional retail and leisure amenities. EAGLE COURT BUSINESS PARK Lex Autolease INTERNATIONAL COVENTRY ROAD A45 New M42 Link Road B4438 NATIONAL EXHIBITION CENTRE INTERNATIONAL RESORTS WORLD M42 CENTRAL JUNCTION 6 A452 A45

5 Prime M42 Office Investment Opportunity 05 Description Blake House comprises a modern HQ style detached office building constructed in The property is arranged over three storeys, with an impressive central full height glazed reception area leading to two office wings, providing occupational flexibility. The property is of steel frame construction with elevations comprising a mixture of brickwork, steel-faced panelling and glazed curtain walling. The specification of the office accommodation includes; Full height glazed reception atrium Open plan office layout Full access raised floors with 150mm clear zone Finished floor to ceiling height of 2.70m Suspended ceilings with recessed lighting Four pipe fan coil air conditioning Two 13 person passenger lifts Male, female and disabled WCs, along with shower facilities The tenant has recently consolidated its operations into Blake House, and has refitted part of the building as part of this process. The building sits on a regular landscaped site, with a car park accessed from Hatchford Way providing 146 marked spaces, giving an excellent parking ratio of 1:250 sq ft. The car park benefits from an electronic access control gate, and CCTV is in operation across the site. The overall site area is approximately 0.76 hectares (1.87 acres). Accommodation The property provides the following net internal floor areas. Sq M Sq Ft Ground Floor Reception ,198 Ground Floor 1, ,714 First Floor 1, ,360 Second Floor 1, ,325 Total 3, ,597

6 Prime M42 Office Investment Opportunity 06 Tenure The property is held leasehold from Birmingham City Council for a term of 150 years from 11 October 1999 (131 years unexpired) at a peppercorn rent. Tenancy Blake House is let in its entirety to A.C.L. Ltd, with guarantee from Black Horse Group Ltd, on full repairing and insuring terms, expiring 11 July The current rent is 626,095 per annum, reflecting per sq ft overall, with half rate applied to reception. There is a tenant only break clause at Year 3 (12 July 2021) subject to 6 months written notice and a rent penalty of 104,349 (equivalent to 2 months rent). Lex Autolease (formerly Lloyds TSB Autolease) have been in occupation since the building was constructed in 1999 (over 18 years), and have recently committed to a new lease at the property. Covenant A.C.L. Ltd and Black Horse Group Ltd, along with Lex Autolease, are subsidiary companies of Lloyds Banking Group Plc, quoted on both the London and the New York Stock Exchange s, and one of the largest companies within the FTSE 100. The property provides Lex Autolease with its HQ facility, with associated group companies named on the lease. Lex Autolease are the UK s largest vehicle leasing business, providing vehicle contract hire and credit sale agreements, with a fleet of over 350,000 vehicles. During 2016 Lex Autolease were responsible for the registration of 1 in 26 new cars and light commercial vehicles in the UK. A.C.L. Ltd and Black Horse Group Ltd both provide excellent covenant strength, having Dun & Bradstreet ratings of 5A1, representing a minimum risk of business failure. The last three years of financial accounts for A.C.L. Ltd (Company Number ) and Black Horse Group Ltd (Company Number ) are as follows; A.C.L. Ltd 31/03/ /03/ /03/2015 Black Horse Group Ltd 31/12/ /12/ /12/2014 Sales Turnover - 137, ,398 Pre-Tax Profit - 20,242 55,373 Tangible Net Worth 66,538 66,538 52,665 Sales Turnover 6,010 5,782 - Pre-Tax Profit 185,148 5,691 77,624 Tangible Net Worth 516, , ,643

7 Prime M42 Office Investment Opportunity 07 M42 Office Market Birmingham s out of town office market is centred on the M42 corridor, between Junctions 4 and 7. The centre of the market is the area surrounding Junction 6, the closest junction to Blake House, which serves Birmingham Airport, Birmingham International Railway Station, and the NEC. The connectivity around Junction 6 will be enhanced by the development of Birmingham Interchange, an railway station, due for delivery in The M42 office market has witnessed strong letting activity, take-up and rental growth. Take-up for H stands at 91,055 sq ft, a 35% increase on Q and is set against a 5-year average of 350,000 sq ft. There is a shortage of available space, with a current vacancy rate of just 4.4%, the lowest of the Big 6 out of town markets. Rental levels are increasing, with prime headline rents having reached 25 per sq ft during Q2 2018, well above the current passing rent of per sq ft at Blake House. Key M42 letting transactions include; Date Property Size (sq ft) Tenant Term Headline Rent (per sq ft) May 2018 Plot F2 First, Blythe Valley Park 15,446 TBC Under Offer 15 years, May 2018 Plot F3, Blythe Valley Park 15,288 Prologis 15 years April 2018 Trinity Central, Trinity Park 25,200 Beiersdorf UK 10 years April 2018 Part Second Floor - East, One Central Boulevard, Blythe Valley Park 10,862 Wavenet Ltd 10 years April 2018 Part Second Floor - East, One Central Boulevard, Blythe Valley Park 8,443 Oracle Corporation UK Ltd 5 years February 2018 Part Ground - One Warwick Technology Park, 10,572 Baker Hicks Ltd 10 years 19.00

8 Energy Performance Certificate Blake House has an EPC rating of D95. The certificate is available on request. VAT The property has been elected for VAT. It is envisaged the sale will be treated as a TOGC (Transfer of Going Concern). Proposal We are instructed to seek offers in excess of 6,900,000 (Six Million and Nine Hundred Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects an attractive Net Initial Yield of 8.50% assuming full purchasers costs and a low capital value per sq ft of Contact For further information or to arrange a viewing please contact the joint agents; Clive Kemp & Co 45 Church Street Birmingham, B3 2RT Ben Kelly Tel: Ben.kelly@eu.jll.com Nick Wood Tel: Nicholas.Wood@eu.jll.com 6 Deanery Street London, W1K 1BA Clive Kemp Tel: clive@clivekemp.co.uk 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 and Clive Kemp & Co 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 and Clive Kemp & Co 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 September All rights reserved.