THE COURTYARD SOLIHULL 707 WARWICK ROAD SOLIHULL B91 3DA PRIME TOWN CENTRE MULTI-LET INVESTMENT OPPORTUNITY

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1 707 WARWICK ROAD B91 3DA PRIME TOWN CENTRE MULTI-LET INVESTMENT OPPORTUNITY

2 investment summary C O U R T YA R D A rare opportunity to acquire a freehold, prime multi-let office building in the heart of Solihull town centre. Solihull is a vibrant regional centre in the heart of the West Midlands with excellent transport connectivity being at the centre of the UK motorway and rail networks. Excellent prominence, adjacent to Mell Square Shopping Centre and with direct frontage onto Warwick Road, the main arterial route into Solihull from Junction 5 of the M42. Attractive modern courtyard office extending to 43,020 sq ft arranged over a 9 unit courtyard scheme with the benefit of 153 car parking spaces providing an excellent ratio of 1:281 sq ft. Weighted Average Unexpired Lease Term (WAULT) 5.38 years to expiry and 3.78 years to break. Current void of 10,663 sq ft providing excellent asset management opportunities. Total passing rent of per annum reflecting a low average rent of per sq ft. Freehold Offers are sought in excess of 7,500,000 subject to contract and exclusive of VAT. A purchase at this level reflects an attractive Net Initital Yield of 6.98% based on purchaser s costs of 6.66%, a capital value of per sq.ft and a Reversionary Yield of 9.97% when fully let.

3 Stoke-on-Trent M6 Manchester Oswestry Burton-upon-Trent Stafford STAFFORDSHIRE Birmingham Shrewsbury Telford M54 Litchfield M6 TOLL M42 London Wolverhampton Walsall M69 SHROPSHIRE Stourbridge Ludlow WORCESTERSHIRE M5 M5 BIRMINGHAM Redditch M42 Coventry M6 Warwick Rugby M1 HEREFORDSHIRE Worcester Stratford-upon-Avon WARWICKSHIRE M40 Hereford M50 Ross-on-Wye location Solihull is a sub-regional centre in the heart of the West Midlands conurbation and is regarded as one of the region s most desirable office, retail and residential locations. The town was ranked third for enterprise in the 2013 Index of Towns and Cities conducted by Santander. It was also voted the best place to live in the UK in the uswitch Quality of Life Index The town is situated 9 miles south east of Birmingham and 13 miles west of Coventry. London is approximately 120 miles to the south east and Manchester approximately 80 miles to the north. Solihull has a district resident population of just over 206,000 and there are nearly 5.3 million people living in the West Midlands conurbation (2011 census). The surrounding area is regarded as being highly skilled and affluent with over 70% of the urban population being considered of above average education and personal incomes. There are five Universities within a ten mile radius of the town centre providing a strong local graduate workforce. The area is an integral part of the West Midlands economy and the most productive in the region, supporting over 7,000 businesses and more than 100,000 employees. The workforce is highly productive with GDP per capita at 130% of the national average compared to a regional rate of 90%. The principal driver for this is the development of key economic assets in the Borough such as Birmingham Airport, the National Exhibition Centre (NEC), Birmingham and Blythe Valley Business Parks and Solihull town centre. The strength of the local economy in terms of economic output reflects its success in attracting high value, knowledge-intensive businesses. Private sector knowledge-intensive services account for 38.2% of jobs locally compared to a UK average of 31.4%. The town also has a concentration of high-tech manufacturing activity. Major companies located in Solihull include Jaguar Land Rover, Paragon Finance, National Grid, Npower and ZF/TRW.

4 road Solihull is located at the centre of the national motorway network and lies approximately 1 mile west of Junction 5 of the M42 motorway which in turn links to the M5, M6 and M40 motorways. The town also has excellent bus connections with services to Birmingham, Warwick and Coventry. rail Solihull is served by two passenger railway stations that provide regular direct services to London. Birmingham International Station, to the north of the town centre has direct services to London Euston with a fastest journey time of 72 minutes and Solihull Station, located in the heart of the town provides direct services to London Marylebone in 85 minutes. The town will also benefit from the proposed HS2 interchange planned adjacent to Birmingham International. air Birmingham Airport is one of the Midlands fastest growing largest airports and and is situated 4 miles north of Solihull town centre. It handled over 12 million passengers for the first time in 2016 and has recorded 25 consecutive months of passenger growth as it continues to attract more airlines, routes and passengers to the Midlands largest airport. Over 60 airlines operate scheduled and charter flights to over 100 worldwide destinations. Summer 2017 sees the return of British Airways to the airport and following the 2015 runway extension, the airport now benefits from direct flights to the west coast of America and the Far East, as well as flights on the Airbus A380. Touchwood Shopping Centre Streetsbrook Rd Station Approach Solihull Station Birmingham Station Rd TOUCHWOOD Poplar Rd H Warwick Rd MELL SQUARE SHOPPING CENTRE Blossomfield Rd Lode Lane Lode Lane Union Rd George Rd Warwick Rd M42 J5 situation M42 J4 Monkspath Hall Rd Princes Way Proposed New Station Homer Rd Church Hill Stratford-upon-Avon New Rd The Courtyard occupies a very prominent position in the heart of Solihull town centre, fronting onto Warwick Road. It lies adjacent to Solihull Hospital and close to Solihull School and is immediately opposite the pedestrianised town centre which offers an abundance of vibrant leisure, restaurant and retail amenities with the key schemes being Mell Square and the Touchwood Shopping Centre. Mell Square is situated opposite the property and comprises a circa 750,000 sq ft retail-led scheme anchored by House of Fraser, M&S and Sainbury s. The owner, IM Properties, is undertaking a phased redevelopment to further enhance the diversity of the retail and leisure offer. The award-winning Touchwood Shopping Centre is within a 5 minute walk and is anchored by John Lewis and offers restaurants, bars and a cinema. Lend Lease plans to extend the centre by a circa 100,000 sq ft to provide further restaurant and retail facilities. Nearby major office occupiers include Npower, National Grid, Exoserve, Paragon Finance, Shakespeare Martineau solicitors, UK Immigration and Solihull Metropolitan Council.

5 site The site totals approximately 0.54 hectares (1.31 acres). tenure Freehold. rental value & market commentary The Solihull town centre office market is well established as a regional headquarter location and forms an important part of the wider Birmingham Out of Town and M42/M40 office market. The town is home to a number of major occupiers such as National Grid, Npower, Paragon Finance, The Secretary of State and BUPA. As a result of these major occupiers interspersed with a buoyant regional professional services market, the Birmingham Out of Town and M42/M40 office markets have seen strong letting activity with 340,272 sq ft of take up seen in 2016, against a 5 year average of 375,000 sq ft. Headline rents in Solihull continue to strengthen with per sq ft being achieved at Lansdowne Gate, whilst per sq ft has been achieved at the Fore Business Park. Prologis s new UK headquarters at Blythe Valley will reflect per sq ft when they take occupation in Overall there is a limited supply of well specified office accommodation within the Solihull market and this provides an excellent asset management opportunity to realise the letting potential of the property. description The property comprises a modern courtyard office development comprising 9 self-contained buildings. The scheme is arranged around a central courtyard and benefits from a secure multi-decked car park to the rear as well as some courtyard car parking to the front of each office. Open plan offices Suspended ceilings with metal / mineral fibre ceiling tiles Fully carpeted raised access flooring Ceiling mounted comfort cooling The buildings are of brick elevations under pitched, tiled roofs and generally benefit from the following specification, most of which have been refurbished to a very high standard:- LG7 lighting Passenger lift serving part of the accommodation The Courtyard offers some of the best specified small office suites within the town centre. Not only do many of the suites benefit from a top specification but they have their own dedicated access with onsite car parking. There is no other comparable product within the Solihull town centre currently available, with the newly constructed St Alphege Place having let within 3 months of delivery.

6 schedule of accommodation and tenancies The property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) and extends to a total of 43,020 sq.ft. There are a total of 153 car parking spaces on site, 21 spaces directly in front of the offices and a further 132 within a multi-deck car park to the rear of the site. schedule of accommodation and tenancies The property benefits from an attractive WAULT of 5.38 years to lease expiry and 3.78 years to break. Subject to the under offer letting (Unit 1 Part First Floor) completing the property will be 75.3% let by floor area providing significant opportunity to increase the income profile of the property. Building Demise Total (Sq Unit 1 ft) Car Parking Spaces Ground Floor 1,959 5 Vacant (Comply-Serve in Admin) Tenant Lease Start Lease Expiry Break Rent Review Rent p.a. Rent per Sq ft ERV p.a. ERV per Sq ft EPC Comments , Part First Floor 460 Under Offer TBC 3 years - - 8, , Tenant in Administration (Comply-Serve) Part Second Floor 1,566 4 Jet Environmental Systems 11/11/16 10/11/21 10/11/19-24, , Tenant has the benefit of 12 months half rent. Lease is Outside the act. 6 months notice on break option. Part First Floor 1,428 Floream 16/06/15 15/06/20 16/06/18-25, , E(106) Lease is Outside the act. 6 months notice on break option. Part Second Floor 459 Floream 22/12/15 15/06/20 16/06/18-8, , Lease is Outside the act. 6 months notice on break option. Car Parking Car Parking Licence - 3 Jet Environmental Systems 11/11/16 10/11/ , , Tenant has 1 month rolling breaks on car parking licence. Sub Total 5,872 68, , Unit 2 Ground Floor 909 BSL Strategic 21/03/17 20/03/22 20/03/20-17, , Tenant has the benefit of 12 months half rent. Lease is Outside the act. 6 months notice on break option. First Floor 1,018 Hayfield Homes 21/03/17 20/03/22 20/03/20-18, , Tenant has the benefit of 12 months half rent. Lease is Outside the act. 6 C(58) months notice on break option. Second Floor 1,018 Deepdeen Care 07/04/17 06/04/22 06/04/20-18, , Tenant has the benefit of 8 months half rent. Lease is Outside the act. 6 Sub Total 2,945 55, , Unit 3 Whole 2, Accuvision 08/11/12 07/11/27-08/11/17 42, , C(54) Sub Total 2,733 42, , Unit 4 Ground Floor 1,275 Davisons Solicitors 23/11/16 22/11/ , , First Floor - Side Wing First Floor - Bridge Wing months notice on break option. 1,028 Tactile Technology 16/06/16 15/06/ , , C(53) Lease is Outside the act. Tenant has benefit of 6 months half rent between 23/11/2020 and 22/05/2021. Lease is Outside the act. 1,044 Davisons Solicitors 23/11/16 22/11/21 22/11/19-19, , Lease is Outside the act. 6 months notice on break option. Second Floor 2,075 Cambridge Carbonates 01/07/15 30/06/20 30/06/18-31, , Lease is Outside the act. 6 months notice on break option. Sub Total 5,422 94, , Unit 5 Ground Floor 2,085 7 Svenska Handelsbanken AB 28/07/11 27/07/ , , Lease is Outside the act. First Floor 2,031 7 Vacant , Lease is Outside the act. Second Floor 2,047 7 London & Zurich Ltd 01/07/16 30/06/ , , B(43) Tenant has benefit of 18 months half rent. Lease is Outside the act. Sub Total 6,163 71, , Unit 6 Ground & First Floor 1,772 Ellis Hass 16/07/14 15/07/ , , Second Floor Vacant , Sub Total 2,354 21, , Unit 7 Whole 3,075 Vacant , C(64) Sub Total 3,075-56, Unit 8 Whole 5, Orbit (Underwriting Agencies) C(61) Lease is Outside the act. 31/07/14 30/07/23 30/07/20 31/07/17 90, , C(67) Lease is Outside the act. 6 months notice to break Sub Total 5,097 90, , Unit 9 Ground Floor 3, Thursfields Legal 04/05/17 03/05/27 03/05/22 04/05/22 57, , Tenant has benefit of 24 months half rent. 9 months notice to break First Floor 3,016 Vacant , Second Floor 3, Havas People 18/11/16 17/11/ , , D(100) Tenant has benefit of 9 months rent free. Lease is Outside the act. Sub Total 9, , , TOTAL 43, , ,370.00

7 service charge There is a service charge running at the property which maintains the common areas of the property. The budget for the year 2017/2018 is 204,933 reflecting a rate of 4.76 per sq ft. Further details are available upon request. vat The property has been elected for VAT and therefore VAT will be payable. It is intended that the property will be sold as a TOGC. epc EPCs for each unit are set out within the schedule of accommodation and tenancies. Full EPCs can be provided upon request. proposal further information Further details of the property, inclusive of building by building floor plans can be found on the letting website Should you require further information or wish to arrange an inspection please contact:- ANDREW FRANCK-STEIER andrew.franck-steier@fspproperty.co.uk JAMES HEMSTOCK james.hemstock@fspproperty.co.uk We are instructed to seek offers in excess of 7,500,000 (Seven Million Five Hundred Thousand Pounds) subject to contract and exclusive of VAT. On the basis of the current passing rent of 559,723.00, a purchase at this level would represent the following yield profile, allowing for purchasers costs of 6.66%. Net Initial Yield: 6.98% Reversionary Yield: 9.97% Capital Value: per sq.ft. Franck Steier Price Ltd Third Floor, Victoria House Colmore Row, Birmingham, B3 3BD dataroom A dataroom has been set up for the property. For access details please contact Franck-Steier Price. Misrepresentation Clause: The accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein are not guaranteed and are for general guidance only and prospective purchasers or tenants must not rely on them as statements of fact or representations and must satisfy themselves of their accuracy. Neither Franck-Steier Price Ltd, nor any of their 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. Prices and 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 of fulfilling its intended function. Prospective tenants/purchasers should satisfy themselves as to the condition of such equipment for their requirements.