A RARE OPPORTUNITY TO ACQUIRE A SIGNIFICANT INVESTMENT AND STRATEGIC DEVELOPMENT ASSET IN CARDIFF

Transcription

1 GE HEALTHCARE THE MAYNARD CENTRE, LONGWOOD DRIVE CARDIFF A RARE OPPORTUNITY TO ACQUIRE A SIGNIFICANT INVESTMENT AND STRATEGIC DEVELOPMENT ASSET IN CARDIFF

2 INVESTMENT CONSIDERATIONS Part leaseback to GE Healthcare Limited and part development opportunity. A rare opportunity to acquire one of Cardiff s best located development opportunities. Cardiff is the UK s fastest growing Core City with a 1.5 million population within a 45 minute drive and was ranked the 3rd best European city for quality of life by the European Union. Highly prominent and easily accessible location adjacent to the M4 motorway (Junction 32) and Cardiff City Centre. New 10 year lease (7 year tenant only break option) to GE Healthcare Limited at 1,219,607 per annum exclusive which equates to an average rent of per sq ft. GE Healthcare Limited have a Dun & Bradstreet rating of 5A1. The buildings extend to a total of circa 18,400 sq m (198,055 sq ft) of which 10, sq m (110,805 sq ft) will be subject to a leaseback to GE Healthcare Limited. PROPOSAL We are seeking offers in excess of 13,400,000 (Thirteen Million, Four Hundred Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects a Net Initial Yield of 8.53% after allowing for standard purchaser s costs of 6.72% and a low capital value of per sq m ( per sq ft). The total site extends to circa hectares (27.10 acres), of which approximately 5.34 hectares (13.20 acres) is immediately available for development. Potential for enhanced uses, subject to planning. Freehold.

3 NEWPORT CARDIFF CITY CENTRE TO NEWPORT, BRISTOL, LONDON & M50 TO CARDIFF CITY CENTRE & CARDIFF BAY m4 A470 PROPOSED VELINDRE CANCER CENTRE CORYTON ROUNDABOUT LONGWOOD DRIVE J32 m4 GE HEALTHCARE TO BRIDGEND, SWANSEA & SOUTH WEST SAT NAV: CF14 7YT

4 CARDIFF Cardiff is the capital city of Wales, with an estimated resident population of 358,500 and a further 1.5 million within a 45 minute travel time. Cardiff has a projected growth of 20% by 2035, making it the fastest growing UK core city in percentage terms. Capital City status was granted in 1955 and the city has grown to become Wales economic and political centre along with being the home to the Welsh Government. The city has a developing national and global reputation. It plays host to various substantial and prominent occasions, including Britain s biggest free summer celebration, and offers more green space per individual than any other UK core city. Cardiff has also been assigned as the world s first Fair Trade Capital, empowering moral exchanging. Employment within the city is centred on the retail, finance, media and tourism sectors. Major occupiers within the city include Admiral Insurance, Eversheds Sutherland, L&G, Lloyds Banking Group, Cardiff Council, Welsh Government and the BBC. Cardiff ranks within the top 10 UK cities for its percentage of residents with high qualifications, reflective of the high retention rate of its universities graduates. A 2016 report by the European Union placed Cardiff 3rd on its list of European cities offering the best quality of life, whilst its unemployment rate is one of the lowest in the UK according to the Centre for Cities. The Cardiff Capital Region (CCR) covers 10 local authorities, has a population of 1.5 million and Gross Value Added (GVA) of approximately 25 billion, accounting for 51% of the Welsh Economy. Approximately 80,000 people commute daily into the city from the wider urban area.

5 CARDIFF BAY Cardiff is placed 19th in the UK retail rankings and 5th in Experian s strongest market potential category. The main attraction is the 88,257 sq m (950,000 sq ft) of accommodation in the St David s Shopping Centre, which provides a home for the majority of national retail multiples, including Wales largest department store John Lewis (their largest store outside of London), Debenhams, Apple, Hugo Boss and a circa 8,361 sq m (90,000 sq ft) Primark. Other major retailers within the city include House of Fraser, TK Maxx, Fred Perry and Joules. CARDIFF CITY CENTRE Tourism plays a large part of Cardiff s economy with an estimated number of 18.3 million visitors in 2010, along with being ranked sixth in the world in National Geographic s alternative tourist destinations. The city is renowned for hosting some of Europe s most prestigious sporting events such as the European Rugby Cup Final, Ashes Cricket Tests, assisting the hosting of the 2012 Olympic Games and the 2017 Champions League Final on 3rd June These events and many others helped Cardiff to be awarded the European City of Sport for 2009 and Cardiff was also awarded the European City of Culture in 2008 and the Best UK City for Young People in The city is known as being a dynamic focal point of learning and Cardiff has one of the biggest student populations in the UK. TO NEWPORT, BRISTOL, LONDON & M50 GE HEALTHCARE m4 TO BRIDGEND, SWANSEA & SOUTH WEST

6 TAFF S WELL TAFFS WELL TRAIN STATION COMMUNICATIONS Cardiff is well served by both road and rail communications. The city is situated on the M4 motorway, and lies approximately 236 km (147 miles) from London in the east. South Wales links via the M50 and M5 motorways to the Midlands and south west of England. Almost 80% of the UK population live within a 4 hour drive of Cardiff. Distance by road London 236 km 147 miles Bristol 69 km 43 miles Birmingham 182 km 113 miles Swansea 67 km 41 miles Newport 24 km 15 miles High speed rail services give rapid access to all major cities across the UK. Cardiff Central Station is one of the principal stations on the Great Western Line from London to Swansea. Frequent services run to and from London Paddington, with an average journey time of 2 hours. From London, connections can then be made onto EuroStar services to Europe. Cardiff Central Station is also the hub of the extensive and dense Valley Line Network serving the inland towns of south east Wales, from where a significant proportion of the city s work force is drawn. Transport for Wales are presently working on the South Wales Metro which is a large multi-modal transit initiative aiming to provide accessibility enhancements throughout the Cardiff City Region, predominantly through investments in light rail. Cardiff s railway terminal links into the UK and European network. NEATH PORT 39 TALBOT 38 GE HEALTHCARE THE MAYNARD CENTRE, LONGWOOD DRIVE, CARDIFF A465 SWANSEA A4061 A4059 A465 A470 A4059 A4058 A4119 LLANTRISANT 35 M4 ABERDARE A48 34 CARDIFF INTERNATIONAL AIRPORT BARRY A470 A A4232 A4050 BRISTOL CHANNEL 32 BRISTOL AIRPORT The electrification of the train line between London Paddington and Cardiff Central is due to be completed in The travel times between these destinations is set to be reduced to a time in the region of 1 hour 45 minutes. Cardiff has its own international airport located 19.2 km (12 miles) from the city at Rhoose. The airport provides mainland and European schedules. London s Heathrow airport is less than a two hour drive away. A469 A48 30 A465 A A467 A465 TREDEGAR EBBW VALE TONYPANDY CWMCARN PONTYPRIDD TONYREFAIL CAERPHILLY A467 A4042 A48 WESTON-SUPER-MARE M M5 21 A40 A449 PONTYPOOL CWMBRAN USK CARDIFF ABERGAVENNY M RAGLAN A48 NEWPORT EASILY ACCESSIBLE LOCATION ADJACENT TO THE M4 MOTORWAY (JUNCTION 32) & CARDIFF CITY CENTRE M5 A M4 A466 CHEPSTOW 22 AVONMOUTH TO CAERPHILLY, MERTHYR TYDFIL & MID WALES TO BRIDGEND, SWANSEA & SOUTH WEST MONMOUTH 18 A38 M48 M49 17 BRISTOL 21 RIVER A37 A48 SEVE R N M5 M3 B4262 RADYR CASTLE COCH A470 London Bristol Reading A4054 Longwood Drive RADYR TRAIN STATION N Birmingham Manchester TONGWYNLAIS GREENMEADOW WOODS HOTEL 32 LONGWOOD NATURE RESERVE M4 TO NEWPORT, BRISTOL, LONDON & M50 CORYTON INTERCHANGE WHITCHURCH CORYTON GOLF CLUB CARDIFF CITY CENTRE & CARDIFF VILLAGE HOTEL A470 AND LEISURE BAY (5MILES) CLUB A4054 National Rail times from Cardiff CORYTON TRAIN STATION 2 hours 7 minutes 50 minutes 1 hour 35 minutes 1 hour 59 minutes 3 hours 10 minutes

7 INWARD INVESTMENT / DEVELOPMENT ACTIVITY Cardiff has undergone a significant amount of development in the last 20 years with the creation of Cardiff Bay, the Bute Town Tunnel link road, Principality Stadium and St David s Shopping Centre. This large scale development is set to continue with the completion of Callaghan Square office development 46,451 sq m (500,000 sq ft), the redevelopment of Network Rail s central train station, and creation of the 74,341 sq m (800,000 sq ft) Central Square scheme which is to be anchored by the new BBC Wales Headquarters, as well as the redevelopment of Dumballs Road in Cardiff s Core Area South. Cardiff Business Council was launched in May 2014, with the prime focus of positioning the Cardiff Capital Region as a world class business location. Since their launch, the business council have focused on assisting with inward investment into the City and have managed to attract a major office occupier, Alert Logic, to locate their EMEA headquarters at One Capital Quarter. Cardiff has an ongoing 5bn investment programme in place, including plans to develop a multipurpose arena and assist with the new gateway to the city through the Central Square scheme. Central Square a joint venture between Cardiff Council & Rightacres to comprehensively redevelop the north side of Cardiff Central Station which will include the new 15,329 sq m (165,000 sq ft) BBC Wales Headquarters building. The mixed use scheme is set to extend to a total of 74,321 sq m (800,000 sq ft) of office, hotel, residential and retail accommodation. Cardiff Central Station (Network Rail Scheme) Network Rail have announced plans for a major redevelopment of the central train station, in order to increase capacity and significantly enhance the services provided at the station. The scheme could include further mixed use development along with the development of the Network Rail South Car Park to include a multi-storey car park which will increase the parking capacity to 1,000 cars and the potential for further office, leisure, retail and residential accommodation. Central Quay directly adjacent to the southern side of Cardiff Central Station, Brains & Rightacres have entered into a joint venture which is in the process of Master planning a large mixed use scheme across the Brains Brewery site. Callaghan Square the remaining 1.79 ha (4.42 acres) of development land on the south side of the Callaghan Square Scheme was purchased by the Welsh Government in 2012, with the aim of kick starting speculative office development in Cardiff. Capital Quarter JR Smart is currently on site developing a further 7,432 sq m (80,000 sq ft) of speculative office accommodation. This is in addition to the One Capital Quarter building that Welsh Government purchased in 2013, which is understood to be fully let to tenants including, Finance Wales, Parsons Brinckerhoff, Alert Logic and the Welsh College of Nursing. Cardiff Parkway Business Park plans are being prepared for a new business park to align with the Metro system delivery which will incorporate a new train station to facilitate the development of the 176 acre (71 hectare) site. Residential significant large scale residential developments have now been granted consent including St Ederyn s Village (1,020 homes), Churchlands (4,500 homes) Plasdwr (7,500 homes) and Junction 33 (2,010 homes) delivering much needed homes for the city. Notwithstanding, Cardiff is still in need of further housing sites to deal with the required housing stock beyond the current 3.8 years land supply. Hotels the Cardiff Tourism Strategy and Action Plan ( ) has identified that tourism supports over 13,700 jobs in the city with hotels reporting high levels of occupancy. The Plan notes the limited range and capacity of the existing bed stock and suggests a need to get more discretionary tourist visits. The Plan focuses on tourism but Cardiff s commercial and business renaissance is also driving particularly strong hotel demand during the week, complementing tourism s weekend bias. Industrial speculative development has been limited, however the likes of Amazon, Aldi and Geopost have committed to new build projects in recent months as the food and logistic sector in particular continues to excel. Velindre Cancer Centre an outline planning application has been submitted for the development of a 14.5 hectare (35.80 acre) cancer treatment facility upon the land to the north of the Whitchurch playing fields. The Velindre Centre and Maggies Care Facility is set to open in September 2022 and will be a nonsurgical treatment and international research & development facility with an estimated 1,000 members of staff. Importantly, the development will incorporate road enhancement works to Longwood Drive and specifically the roundabout adjacent to the Asda petrol filling station.

8 m4 J32 THE GE HEALTHCARE CARDIFF SITE The GE Healthcare Cardiff Site comprises a medical technology manufacturing facility operated by GE Healthcare, situated to the north of Cardiff city centre, just off Junction 32 of the M4 motorway at Coryton fronting onto Longwood Drive. CD2 CD1 ED2 The entire site encompasses a secure facility of approximately hectares (30 acres), of which hectares (27.10 acres) forms part of the sale. The buildings within the sale extent to approximately 18,400 sq m (198,055 sq ft) of accommodation. The site comprises seven buildings of one and two storeys used for offices, laboratories and warehousing. There are approximately 527 car parking spaces upon the site, which equates to a ratio of 1:32.24 sq m (1:347 sq ft) OA RP2 The facility has security fencing and two vehicular access points off Longwood Drive, with all current access being controlled via a security lodge. OA3 GE Healthcare will occupy and leaseback buildings RP2, CD2 and ED2, leaving the remaining buildings OA3, OA, CD1 and Buildings 19/20 available for refurbishment or redevelopment. The land available (which includes vacant buildings and service road) comprises approximately 5.34 hectares (13.2 acres). The Cardiff Nuclear Licence Site (CNLS) is currently within the GE Healthcare ownership. The CNLS area will be excluded from the sale.

9 GE HEALTHCARE LIMITED - LEASEBACK BUILDINGS RP2 CD2 ED2 SPINE CORRIDOR Building RP2 The building is constructed around a reinforced concrete frame, with plant and machinery housed on the roof. External elevations are clad with curtain walling with large glazed sections together with brickwork. Internally the building is configured to provide office accommodation, manufacturing/laboratory space to both the ground and first floors together with male and female WC facilities and locker rooms / changing areas. Delivery access is provided via a roller shutter door. There is a central stairwell together with a goods lift situated off the loading area with four fire escape staircases. Building CD2 CD2 provides laboratory and clean room accommodation to the ground floor with a smaller amount of office accommodation provided on the first floor. The building is of a similar construction type to RP2 but makes more use of composite panels applied to external elevations in place of the large glazed sections. Matching facing brickwork is also used, particularly to the plinth and the two buttress type protrusions which house the additional fire escape staircases. Building ED2 Building ED2 is situated adjacent to the south east elevation of CD2, accessed via a small link corridor and roller shutter doors to the eastern elevation. The accommodation is arranged mainly over the ground floor although ancillary offices and meeting rooms are provided at first floor (mezzanine) level. This building is of a steel portal frame construction, supporting colour coated profiled steel panels applied to the shallow pitched roof covering. External elevations offer part facing brickwork, as a match for the remaining accommodation on the site and part colour coated profiled steel panels, designed to create a parapet to the roof covering and benefitting from ribbon type fenestration to the ground and first floor of the south west facing elevation.

10 VACANT BUILDINGS CD1 OA OA3 19/20 Building CD1 This building offers accommodation over two floors and is accessed from the main spine corridor or entrance facing Car Park 1. The building mirrors the construction of CD2. Internally the building offers laboratory accommodation to the ground floor together with male and female WC facilities and goods delivery access. The first floor accommodation, accessed via a central stairwell located just off the main spine corridor, is configured to provide more modern office accommodation, clean rooms and laboratory space. The clean room facilities will remain within this building, providing for future letting potential for this higher value use. Building OA A detached two storey purpose built office building with the main accommodation arranged in two distinct circular structures, connected by a central reception area which is connected to the main spine corridor of the GE Healthcare accommodation. The building is constructed around a structural frame which supports a flat roof structure and a combination of large glazed sections and facing brickwork provided to external elevations. Internally the building offers a canteen and commercial kitchen to the ground floor of the west wing, with meeting rooms and offices provided within the remainder of the accommodation. Building OA3 This building comprises a detached two storey structure situated to the far west of the facility which provides office accommodation to both ground and first floors. The building is of steel frame construction supporting a pitched roof structure with a covering of colour coated profiled metal sheets. The external elevations are of brickwork finish and incorporate large sections of glazing. Internally the building is configured to provide an entrance foyer to the ground floor together with male, female and disabled WC facilities and a central break out area. Workshop/office accommodation, with some store areas, are provided to the remaining parts of the ground floor. The first floor accommodation is accessed via either a stairwell or lift. Building 19/20 Building 19/20 was purpose built for a specific production facility, reflected in its design which offers accommodation over a basement, ground and first floor, together with additional plant accommodation within two turret type structures, one to each of the south west and north east ends of the structure. The structural frame of the building supports a flat roof covering with external elevations comprising colour coated micro-ribbed panels punctuated by fenestration in a ribbon style to ground and first floor elevations. Internally, the building has been left to a shell finish, reflecting its limited use following original construction. No services are currently or will be provided to this building.

11 m4 J32 Grounds The site on which the facility has been constructed is irregular in shape but generally level, save for bunded areas created by the occupier. A circulation road leads from the security lodge accessed off Longwood Drive, which provides vehicular access to all buildings comprising the facility. A second vehicular access point is located off Longwood Drive at the south west corner of the site. There are five distinct car park areas on site as highlighted on the following page, the first and largest is to the north of the site just to the west of the security lodge positioned at the main entrance. Three other car park areas are situated immediately to the south of Building RP2. A total of 527 car spaces are provided within these car parks and ad hoc car parking is provided elsewhere within the site, mainly off the site access roads. Otherwise the grounds are laid to lawns with large landscaped areas which include mature trees and specimen shrubs. Site Security The existing site boundary fence and security gate will be retained and operated by GE Healthcare until the deregulation of the CNLS site is completed. It is currently estimated that this will occur during December 2019, at which point control of the gatehouse and fence will transfer to the purchaser without any requirement to maintain. GE Healthcare will construct a new fence and barrier access to the north of building CD2 for the purpose of their ongoing security to coincide with the transferring of the gatehouse to the purchaser. Details of the security arrangements can be found in the data room. Cardiff Nuclear Licenced Site (CNLS) Information The area within the Estate Plan shaded yellow annotated CNLS extends to 1.17 hectares (2.90 acres) and will be retained by the Vendor until completion of the deregulation of the Nuclear site. The process of decomissioning and deregulating the site is already under way and details of this process including timing can be found within the data room. Completion of the deregulation process is estimated to be December The CNLS land will remain within the Vendor s ownership, with suitable access and egress rights across the remainder of the site being granted. On completion of the deregulation process the site may be offered to the market and a proportion of the site will be placed under a put option to the purchaser of the wider site. Details on this can be obtained from the data room.

12 Car Parking There are five areas provided on site for car parking which are annotated on the estate plan below: ESTATE PLAN CAR PARK 1 TENURE The freehold of the site edge in blue on the Estate Plan, subject to rights reserved for necessary access and egress from the retained CNLS land shaded yellow. The red line boundary on the Estate Plan is the GE Healthcare lease boundary (see Lease Structure). ACCOMMODATION CD1 CD2 ED2 The property measurements have been supplied by our client and we understand the areas below are in accordance with the RICS Code of Measuring Practice (Sixth Edition) and provide a total net internal floor area of 18, sq m (198,055 sq ft). A breakdown of the floor areas is set out in the schedule below. CNLS Building Use Sq m Sq ft OA West OA East RP2 GE HEALTHCARE LIMITED RP2 Office / Laboratory 5, ,201 OA3 CAR PARK 2 CAR PARK 3 CAR PARK 4 CAR PARK 5 CD2 Office / Laboratory 2, ,740 ED2 Industrial 1, ,864 VACANT CAR PARKING SPACES Car Park spaces Car Park 2 36 spaces Car Park 3 91 spaces Car Park 4 88 spaces GE Healthcare will use the car parking facilities (Car Park 3, 4 & 5) within their lease boundary and will require access and egress for between vehicles on the site at any given time. CD1 Office / Laboratory 4, ,456 OA Office 1, ,107 OA3 Office ,491 19/20 Shell 1, ,196 Total 18, ,055 Car Park 5 Total 74 spaces 527 spaces Ancillary buildings such as the Power House and Security Lodge have not been incorporated in the above areas schedule.

13 TENANCY INFORMATION On completion of the separation works, GE Healthcare Limited will enter into a new lease upon the land and buildings shown edged in red on the Estate Plan. This will include buildings RP2, CD2, ED2 and the Power House. The spine corridor between buildings RP2 and CD2 will also be demised to GE Healthcare Limited. The following market rents have been applied to the main buildings within the demise, in order to calculate GE Healthcare s rental commitment. Building Floor Area Sq m Sq ft Total Sq m Total Sq ft Rent (psf) Rental GE HEALTHCARE LIMITED RP2 CD2 ED2 Ground 2, ,712 Mezzanine ,724 First 2, ,765 Ground 2, ,101 First ,639 Ground 1, ,072 First (Mezzanine) ,792 5, , ,190 2, , ,207 1, , ,210 Sub Total 10, ,805 1,219,607 VACANT CD1 OA OA3 19/20 Ground 2, ,371 First 2, ,224 Ground ,470 First ,684 Ground ,624 First ,037 Basement ,294 Ground ,998 First ,904 4, ,456 1, , ,491 1, ,196 Subtotal 8, ,250 Total 18, ,055 GE Healthcare currently have a number of tenants within the buildings upon the site. However, all existing leases will be terminated in December 2017 to allow for the separation works to be undertaken without interruption and vacant possession to be provided on all non-leaseback land and building.

14 TENANT COVENANT General Electric is one of the world s largest companies with businesses located across the world, including GE s Healthcare division which is headquartered in the UK and supplies its products worldwide. The company provides medical imaging and information technologies, medical diagnostics, patient monitoring systems, drug discovery, biopharmaceutical manufacturing technologies, performance improvement and performance solutions services to help customers to deliver better care to more people around the world at a lower cost. LEASE STRUCTURE GE Healthcare Limited will commit to a new lease from the date of completion based on the following terms: The GE Healthcare Cardiff facility employs approximately 300 people in the manufacture of consumables and reagents that enables research and development in the basic mechanisms of disease, drug discovery and drug development. GE Healthcare Limited have a Dun & Bradstreet rating of 5A 1, which represents a minimum risk of business failure. The Dun & Bradstreet report with further financial information can be found in the data room. Tenant: Demise: Term: Tenant Break: Notice Period: Rent: Rent Review: Repair: Alienation: GE Healthcare Limited All the land and property within the red line shown on the Estate Plan, incorporating buildings RP1, CD2 and ED2 10 Years 7th Anniversary of the term The Tenant will provide the Landlord with 12 months written notice 1,219,607 per annum exclusive The rent will be reviewed on the 5th anniversary of the term to Open Market Rent The Tenant will be responsible for the keeping the Demise in good repair and decoration, but in no better condition than the photographic schedule of condition which will be completed by the Tenant and annexed to the Lease. The tenant will be permitted to assign the whole and sub-let whole or part of their leasehold interest subject to the Landlords consent, not to be unreasonably withheld or delayed.

15 SERVICES SEPARATION WORKS GE Healthcare will commit to significant service separation works to isolate the majority of the services between their retained leasehold land & buildings and the remaining site & buildings. These separation works will be undertaken within a period of 6 months following exchange of contracts with completion of the sale and new lease to GE Healthcare Limited to simultaneously occur thereafter. Details of these separation works can be found in the data room. SERVICE CHARGE Estate Service Charge The purchaser will be required to create an Estate Service Charge. The cost to each tenant is to be calculated as a percentage of the total land area occupied by an individual tenant within the Whole Property. Although not exclusive, the following elements will need to be considered in this service charge budget: Maintenance of the estate road network, as existing or in the event that a new layout is constructed for common access purposes Maintenance and upkeep of the landscaped areas, including car parking areas unless leased separately Buildings Service Charge We have also assumed that each of the buildings outside of the GE Healthcare boundary (OA3, OA & CD1) will have separate Building Service Charges, assuming that these become multi-let assets. In the event that a building is let as a whole, the sole tenant will deal with these elements. The cost to each tenant is to be calculated as a percentage of the total square footage occupied by an individual tenant within the Building, we have assumed it would include: Repair & Maintenance of the Building Cleaning and Maintenance of common areas Lighting and services to common areas Health & Safety Security Building Management Fee Building Service Charge Account Audit Fee Management and maintenance of common drainage Health & Safety Estate signage Environmental Audit Lighting supplied to the common areas excluding the buildings and security lodge CCTV / Security provided to the common areas excluding the buildings and security lodge (carried out by GE Healthcare and charged back to the Landlord until December 2019) Security Fence Maintenance (to be carried out by GE Healthcare and charged back to the Landlord until December 2018) Estate Management Fee Estate Service Charge Account Audit Fee

16 MARKET COMMENTARY Cardiff s core occupational markets have been performing well over the last few years, with record volumes of office take-up, industrial take-up on the increase and the retail, hotel and leisure markets prospering from an improving economic environment. Large pre-let transactions have led the way in both the city centre office and industrial markets, with a shortage of good quality secondary buildings increasing rents in both sectors. An increased demand for leisure accommodation within the city as a result of increased footfall and tourism activity has moved Cardiff forward in these sectors. The hotel market in particular remains buoyant as an identifiable shortfall in room availability drives demand for new development. Out of Town Office Transactions Date Property Tenant Business Type Size (sq ft) Rent (psf) June 2017 May 2017 Dec 2016 Aug 2016 July 2016 Feb 2016 Caerleon House Cleppa Park Global Reach Cardiff Bay 1 River House St Mellons Vision Court Pentwyn Fountain Court St Mellons 5 Greenmeadow Springs Junction 32 M4 Slowhit Limited Services / Sales 26, Wimott Dixon Construction 7, Public Health Wales Indoor Biotechnologies Healthcare 6, Medical 4, Liberata UK Plc Service provider 10, Lovell / Morgan Sindall Construction 7, CARDIFF OFFICE MARKET COMMENTARY The out of town office market, through 2016 and 2017 to present, has witnessed increased activity in terms of actual transactions and new requirements. Jan 2016 Aug Riverside Court Gwaelod y Garth Eastern Business Park St Mellons Synexus UK Ltd Medical 9, Powell Dobson Architect 8, Demand for out of town office space in South Wales is improving, and a characteristic of the South Wales office market is that a higher proportion of companies prefer to be located in the established business parks situated either on a motorway junction, or in close proximity to the M4 corridor. Cardiff continues to dominate the office market in South Wales both in terms of levels of demand and take up. The average take up of office accommodation over the last 10 years in Cardiff which includes City centre, Cardiff Bay and out of town business park locations equates to 490,000 sq ft per annum.

17 Annual Office Take up (sq ft) 700, , , , , , , , , , , , , , , , , , , , , , The below graph clearly indicates the majority of office lettings continue to take place in Cardiff city centre. Over the last 6 years, out of town office take up has totalled some 720,670 sq ft which equates to an average take up of approximately 120,000 sq ft per year. 475, , ,778 INDUSTRIAL MARKET COMMENTARY 2016 Industrial take-up volumes in South Wales were almost twice the five year average. Demand for new space continues to be strong and there are currently around 1.5 million sq ft of live occupier requirements in the market. This, combined with a lack of new development, has resulted in a fall in availability across the region. Availability is now at its lowest point on record and is particularly tight in the grade A market. The market has, over the past few years, witnessed significant growth in warehouse distribution and parcel service delivery, predominantly as a result of the change in the UK retailing habits. Whilst in 2007 online sales accounted for only 3.7% of all retail sales, C&W are predicting that this will increase to 15.7% by This represents an increase of approximately 400% in only 12 years. There is currently an ever diminishing level of vacant industrial accommodation over 50,000 sq ft in Wales, and there is now less than 6 million sq ft available as at Q4 2016, representing less than half the total availability levels only five years ago. Compounding matters, we are of the view that the region is unlikely to witness any additional significant speculative development in the near future due to a lack of available and well located development sites. The limited available stock in all size groups has led to a 1.7% rise in prime gross rents that range between 2.50 and 4.50 per sq ft. Wales remains an attractive location for manufacturers seeking lower cost labour and major occupiers have recently taken up purpose-built space include Aston Martin (70,000 sq ft), ALTK (100,000 sq ft) and General Dynamics (250,000 sq ft). There is currently no grade A space available in the Cardiff market and all of the 5.7 million square feet of space that is available is grade B and C only. After a slow H1 2016, take up picked up in H2 totalling 2.2 million square feet and has continued to remain strong during Q (811,000 sq ft). 400, , INDUSTRIAL TAKE-UP BY GRADE (MN SQ FT) 300, , , , ,000 50, , ,978 60, , , , , ,878 99,465 78,505 67,160 57,215 62,904 38, , ,163 41,842 41, Source: Cushman & Wakefield Research City Centre Out of Town Bay Grade A Grade B Grade C

18 EASILY ACCESSIBLE LOCATION ADJACENT TO THE M4 MOTORWAY (JUNCTION 32) & CARDIFF CITY CENTRE GE HEALTHCARE LONGWOOD DRIVE m4 TO BRIDGEND, SWANSEA & SOUTH WEST TO NEWPORT, BRISTOL, LONDON & M50 m4 CORYTON ROUNDABOUT TO CARDIFF CITY CENTRE & CARDIFF BAY A470 A470

19 m4 ASSET MANAGEMENT/ DEVELOPMENT POTENTIAL The property provides a wide range of asset management and development opportunities with large areas of the site remaining undeveloped, in particular between buildings OA, OA3 and CD1 (labelled A, B, C and D on the plan below). The location of the site provides a number of development opportunities for a variety of uses including logistics, storage, research facility, offices, hotel or residential, subject to appropriate statutory consents. Cardiff City Council s Deposit LDP (2013) proposals map shows that the site lies within an EC1 policy area (EC1.8). EC1 is a protective policy which safeguards against the loss of employment land. As such, non-employment uses will be resisted. Surrounding the site is a river corridor which falls under conservation policy EN4 Strategic River Valleys which provides a planning framework within which the council can protect, promote and enhance the river corridors for nature and recreational purposes. A B The re-letting of the existing vacant buildings, with OA and OA3 providing traditional office accommodation and CD1 having the added benefit of containing a number of clean rooms which could generate interest from higher value specialist uses. C D Buildings 19 & 20 are currently finished to shell and interest has been shown from a number of related users over the past few years for letting and/or purchase. Alternatively, the building could be demolished to release further significant development land. An assessment of demolition costs for each building is available within the data room.

20 ENVIRONMENTAL The Vendor has commissioned a Phase 1 Environmental Report which is available from the data room. EPC The Energy Performance Certificates can be provided on request. A copy of the certificates are available within the data room. CAPITAL ALLOWANCES The Vendor will make a joint tax election (s198 election) with the Purchaser fixing the value of the fixtures and fittings to 1. VAT The GE Healthcare retained element of the property has been elected for VAT purposes and as such VAT is charged on the purchase price. DATA ROOM A selection of relevant documents are available within the data room which is located at Please contact the vendor s agents for access details. FURTHER INFORMATION Please note viewings are strictly by open days only. For further information please contact: Andrew Gibson andrew.gibson@cushwake.com Nick Allan nick.allan@cushwake.com PROPOSAL We are seeking offers in excess of 13,400,000 (Thirteen Million, Four Hundred Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects a Net Initial Yield of 8.53% after allowing for standard purchaser s costs of 6.72% and a low capital value of per sq m ( per sq ft). DISCLAIMER Important Notice Cushman & Wakefield gives notice to anyone who may read these particulars as follows: 1. These particulars are prepared for the guidance only of prospective purchasers. They are intended to give a fair overall description of the property but are not intended to constitute part of an offer or contract. 2. Any information contained herein (whether in the text, plans or photographs) is given in good faith but should not be relied upon as being a statement or representation of fact. 3. Nothing in these particulars shall be deemed to be a statement that the property is in good condition or otherwise nor that any services or facilities are in good working order. 4. The photographs appearing in this brochure show only certain parts and aspects of the property at the time when the photographs were taken. Certain aspects may have changed since the photographs were taken and it should not be assumed that the property remains precisely as displayed in the photographs. Furthermore no assumptions should be made in respect of parts of the property which are not shown in the photographs. 5. Any areas, measurements or distances referred to herein are approximate only. 6. Where there is reference in these particulars to the fact that alterations have been carried out or that a particular use is made of any part of the property this is not intended to be a statement that any necessary planning, building regu-lations or other consents have been obtained and these matters must be verified by any intending purchaser. 7. Descriptions of a property are inevitably subjective and the descriptions contained herein are used in good faith as an opinion and not by way of statement of fact. September 2017 Design by Martin Hopkins