BBC TV Studio & LEEDS COLLEGE OF MUSIC BBC Broadcasting House, 2 St Peters Square, Leeds, LS9 8AH. Long Income Investment. 16.

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1 Long Income Investment 16.5 Year WAULT

Modern 4 Storey Office, TV Studio, Radio Station & Music Auditorium Prominent location on the eastern fringe of the city centre. Fully occupied by and leased to the BBC & WAULT 16.

2 Modern 4 Storey Office, TV Studio, Radio Station & Music Auditorium Prominent location on the eastern fringe of the city centre. Fully occupied by and leased to the BBC & WAULT 16.5 years NIA 36,945 sq ft Passing rent of 474,641 per annum psf Offers invited in excess of 8,500,000 reflecting a Net Initial Yield of 5.23% Low capital value of 230 per sq ft. 2.

3 Leeds - a key city in Yorkshire and the largest legal and financial centre in the UK after London. The property itself is situated in Quarry Hill and fronting on to St Peters Place (A61) and St Peters Square, a prominent location on the eastern fringe of Leeds City Centre. Quarry Hill has been the focus of substantial regeneration which began back in the early 1990 s. The development of the area has taken place around two central squares, Centenary Square and St Peters Square and the area is now known as the Arts quarter as it is home to West Yorkshire Playhouse, BBC Yorkshire, Leeds College of Music campus and The Wardrobe. A58(M) Woodhouse Lane Merrion Street A64(M) Regent Street The Property A64(M) Beckett Street Eastgate A61 Mabgate St Mary s Street Burley Street ellington Street Water Lane Leeds Railway Station The Headrow LEEDS The Calls Eastgate Kirkgate A61 Marsh Lane A61 A64(M) Street Duke St BBC St Peters Square St Cecilia St Marsh Lane Marsh Lane 3. A61 York St Kirkgate York St A61 Marsh Lane Saxton Lane

1. LCM 4. The Merrion Centre 22. Leeds Train Station 5. The Light 33. Trinity Shopping Centre 6. First Direct Arena 77. Victoria Gate 88. Quarry House - Department of Health 99.

4 1. LCM 4. The Merrion Centre 22. Leeds Train Station 5. The Light 33. Trinity Shopping Centre 6. First Direct Arena 77. Victoria Gate 88. Quarry House - Department of Health 99. West Yorshire Playhouse Corn Exchange Eastgate 10 Kirkgate 7 Duke Street 1 9 Regent Street Crown Point Road York Street 8 A64(M) 4. Black Bull Street Marsh Lane

5 A1(M) Leeds by Car London 3 Hours 45 Mins Via M1 NEWCASTLE UPON-TYNE SUNDERLAND Edinburgh 3 Hours 55 Mins Via A1 MIDDLESBROUGH Manchester 1 Hours 15 Mins Via M62 Birmingham 2 Hours 05 Mins Via M1 Leeds by Rail M6 BLACKPOOL LIVERPOOL M58 A1(M) LEEDS BRADFORD M82 LEEDS M1 MANCHESTER M60 MANCHESTER M62 HULL M180 London 2 Hours 15 Mins M53 M8 M1 NOTTINGHAM Edinburgh Manchester Birmingham 3 Hour 00 Mins 0 Hours 50 Mins 1 Hours 50 Mins M54 BIRMINGHAM BIRMINGHAM INTERNATIONAL M42 EAST MIDLANDS M8 M40 M68 A1M M11 NORWICH Leeds by Aeroplane Leeds Bradford Airport - less than 10 miles from the subject property and the 15th busiest airport in the UK. SWANSEA M4 CARDIFF M5 M4 BRISTOL GLOUCESTER M4 M40 M3 M1 LUTON HEATHROW A1M STANSTED M25 M1A M4 LONDON M25 M20 M2 GATWICK COLCHESTER SOUTHEND -0N-SEA Number of Airlines - Number of Passengers m (2016 increase of 4.6% on 2015) EXETER PLYMOUTH M5 M27 SOUTHAMPTON 5.

A modern purpose built four storey property constructed to the highest standards to represent the regional Broadcasting Centre and headquarters of BBC Yorkshire.

There is also a separate Auditorium with a seating capacity of 350 persons and roof top venue space for the on the third/fourth floors. The property sits on a 0.

6 A modern purpose built four storey property constructed to the highest standards to represent the regional Broadcasting Centre and headquarters of BBC Yorkshire. Completed in July 2003, the building is a four-storey broadcasting centre including offices, studios/production area and restaurant for the BBC. There is also a separate Auditorium with a seating capacity of 350 persons and roof top venue space for the on the third/fourth floors. The property sits on a 0.66 acre site and also has the benefit of 12 parking spaces. Basis Rent Term Freeholder Demise Long Leasehold Peppercorn 125 years from 27 March 2003 (110 unexpired) Leeds City Council Blue denotes BBC & LCM demise. Red denotes total LLH demise. The property is fully let on three leases as follows: Floor/Demise Tenant Size (sq ft) Lease Expiry Unexpired Term Next Review Review Basis Rent ( ) Ground/1/2/3 Restaurant British Broadcasting Corporation British Broadcasting Corporation (Trading as Aaghar Indian Restaurant) 23,154 5,812 30/01/ /01/ Years 14 Years 24/03/ /03/ % of OMV for offices off an assumed area of 19,674sq ft. Before lease regear the passing rent was 356,328. It is against this rent that the review is calculated and then the 42,930 per annum deduction is subequently made. The rent review would therefore look as follows: 19,674sqft X ERV ( 22.00psf) = 541,035 X 86.6% = 468,536 minus 42,930 = 348, % of OMV for retail off an assumed area of 5,866sq ft. Before lease regear the passing rent was 84,884. It is against this rent that the review is calculated and then the 10,070 per annum deduction is subequently made. The rent review would therefore look as follows: 5,866sqft X ERV ( 17.50psf) = 102,655 X 86.6% = 88,899 minus 10,070 = 78,829. Therefore nil increase. 313,398 73,814 Leeds College of Music Leeds College of Music 7,979 18/10/ Years 18/10/2022 2% per annum compounded - reviewed 5 yearly. 87, , ,641

7. BBC Lease Commentary The original lease has recently been regeared following an approach from the BBC due to their continued commitment to the building.

7 7. BBC Lease Commentary The original lease has recently been regeared following an approach from the BBC due to their continued commitment to the building. Original passing rent Lease Expiry Lease Break Rent Review 440,212 per annum ( 15.20psf) 24/03/ /03/ /03/2018 (as summarized in the previous page table) - BBC The lease break has been removed and a reversionary lease put in place. The incentive is an annual rent reduction of 53,000, which has been calculated as the BBC marriage value share divided by the 15 years and applied annually. 14 years term certain (expiring 30/01/2032) Day one rent receivable 387,212 per annum At the rent reviews, the 53k deduction is made subsequently, but at all times the rent is upwards only Act Inside the Act Rent Review Alienation Time not of the essence - LCM have entered into a new 30 year lease in exchange for the landlord building a new venue area on the roof % per annum compounded reviews - 5 yearly Assignment Assignment of part not permitted. Assignment of the whole permitted subject to Landlord Consent, not to be unreasonably withheld and subject to the Tenant entering into an Authorised Guarantee Agreement. The Landlord may also require, where reasonable, that the Assignee procure a guarantor. Subletting Subletting of whole or part permitted subject to LL consent and subject to compliance with certain conditions, not to be unreasonable withheld. years term certain (expiring 15/09/2047)

8 The British Broadcasting Corporation (BBC) is a British public service broadcaster headquartered at Broadcasting House in London. is the world s oldest national broadcasting organisation and the largest broadcaster in the world by number of employees. is established under a Royal Charter and operates under its Agreement with the Secretary of State for Culture, Media and Sport. Its work is funded principally by an annual television licence fee which is charged to all British households, companies, and organisations using any type of equipment to receive or record live television broadcasts and iplayer catch-up. The fee is set by the 35,402 Staff (inc part-time, flexible & fixed contract) British Government, agreed by Parliament, and used to fund the BBC s radio, TV, and online services covering the nations and regions of the UK. Since 1 April 2014, it has also funded the BBC World Service (launched in 1932 as the BBC Empire Service), which broadcasts in 28 languages and provides comprehensive TV, radio, and online services in Arabic and Persian. Around a quarter of BBC revenues come from its commercial arm BBC Worldwide Ltd, which sells BBC programmes and services internationally and also distributes the BBC s international 24-hour Englishlanguage news services BBC World News, and from BBC. com, provided by BBC Global News Ltd. s cash balance at the end of the year is 256 million, which is a 79 million reduction from prior year (2016: 335 million). Cash generated from operations has been offset by a 220 million pension deficit payment made in March The current strong financial position of the BBC, along with the successful delivery of recent saving plans, leaves the Corporation in a good position to meet its future obligations (which include pension deficit repayments) and to continue delivering world-class content to its audiences. has been focusing on cost savings and delivered an annual saving of 81m in 2016/17. Property is critical to this, and the subject property was one such example where the BBC have identified key buildings where they see long term requirements and seek to reduce rents in return for longer lease terms. 8.

BBC Yorkshire The property is the Head Office for BBC Yorkshire which began television broadcasting in 1968, following the separation of the region from the Manchester based BBC North.

9 BBC Yorkshire The property is the Head Office for BBC Yorkshire which began television broadcasting in 1968, following the separation of the region from the Manchester based BBC North. The first Leeds base for BBC North, upon the launch of regional television was a converted studio in All Souls Church, where the service was based until From then, the television service moved into Old Broadcasting House at Woodhouse Lane, Leeds, where some services such as BBC Radio Leeds had already been broadcasting. In 2004, however, the equipment required replacing and the subject property was purpose built. All of BBC Yorkshire s Leeds-based facilities moved to the building, located in St. Peter s Square at Quarry Hill, which included state-of-the-art computer systems, new digital studios for BBC Radio Leeds, and new technology that allowed the programme to be broadcast in widescreen. is a music conservatoire based in the Quarry Hill district of Leeds, England. The college is the only conservatoire in the UK to offer both Higher and Further Education courses. Aside from its education provision which also includes short courses and programmes for adults and school-age musicians hosts a seasonal programme of concerts, in the subject property, a 350-seat auditorium. In 2011 was awarded All-Steinway School status becoming the only conservatoire in England to have 90% of its pianos from the Steinway family. It was formerly known as Leeds Music Centre ( ) and City of ( ), founder and first principal Joseph Stones ( ), and became a wholly owned subsidiary of Leeds City College in August

10. Have been fully claimed by the vendor. None available to transfer. VAT We understand the property will be treated as a Transfer of a Going Concern for VAT purposes.

A purchase at this level would reflect a net initial yield of 5.23% after allowing for the purchaser s costs of 6.701%. This represents a low capital value of approximately 230 per sq ft.

10 10. Have been fully claimed by the vendor. None available to transfer. VAT We understand the property will be treated as a Transfer of a Going Concern for VAT purposes. Offers are invited in excess of 8,500,000 (Eight Million and Five Hundred Thousand Pounds) for the Long Leasehold interest, subject to contract and exclusive of VAT. A purchase at this level would reflect a net initial yield of 5.23% after allowing for the purchaser s costs of 6.701%. This represents a low capital value of approximately 230 per sq ft. Mike Burden MRICS e: mike.burden@kimmre.com t: +44(0) m: +44 (0) Charlie Moulton e: charlie.moulton@kimmre.com t: +44(0) m: +44 (0) Josh Beebee MRICS e: josh.beebee@kimmre.com t: +44(0) m: +44 (0) MISREPRESENTATION ACT 1967 Kimmeridge Real Estate Ltd on its own behalf and for vendors or lessors of this property, whose agent it is, gives notice that: 1. The particulars are produced in good faith, but are a general guide only and do not constitute any part of a contract. 2. No person in the employment of the agent(s) has any authority to make or give any representation or warranty whatsoever in relation to this property. 3. The property is offered subject to contract and unless otherwise stated all rents are quoted exclusive of VAT. 4. Nothing in these particulars should be deemed a statement that the property is in good condition, or that any services or facilities are in working order. 5. Unless otherwise stated, no investigations have been made regarding pollution, or potential land, air or water contamination. Interested parties are advised to carry out their own investigations if required. Publication Date: February 2018

This vibrant and accessible gateway to the city will have wide and varied appeal and looks to build on its rich cultural stage to help define a

This vibrant and accessible gateway to the city will have wide and varied appeal and looks to build on its rich cultural stage to help define a WHAT S THE STORY? SOYO Leeds captures the very essence of what it is to be a part of this unique, cultural part of the city. It embraces a spirit of no nonsense originality, vibrancy and creativity. An