Executive Summary. Landmark City Centre office building located between Paradise and Arena Central regeneration schemes

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5 Executive Summary Landmark City Centre office building located between Paradise and Arena Central regeneration schemes Birmingham is the UK s Second City and is witnessing unprecedented levels of inward investment and occupier take-up Birmingham has been named the best city in the UK for investment* Baskerville House is located alongside the Paradise development, the Library of Birmingham and the International Convention Centre (ICC), at Centenary Square, one of the principal public squares in the city centre The property provides 199,355 sq ft (18, sq m) of extensively refurbished high quality office accommodation across ground, six upper floors and two basement floors 141 car parking spaces, equating to an excellent in town car parking ratio of 1:1,413 sq ft Multi-let to Network Rail, West Midlands Growth Company, Bestinvest and Kaplan Financial with a WAULT of 7 years to breaks and 7.7 years to expiries on let space Long leasehold for over 233 years at a peppercorn rent Marketing rent of 4,909,394 per annum equating to a low per sq ft (including rental guarantees) Opportunity to drive performance through active asset management, including letting the vacant space and working with existing tenants to extend leases Offers are sought in excess of 70,700,000 (Seventy Million, Seven Hundred Thousand Pounds). A purchase at this price would reflect a net initial yield of 6.50% and a low capital value of 351 per sq ft after allowing for usual purchaser s costs A purchase at this level would reflect a reversionary yield of 7.13% based on our opinion of MRV Subject to contract and exclusive of VAT. * Emerging Trends in Real Estate Europe

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7 CENTENARY SQUARE REDEVELOPMENT

8 2 CHAMBERLAIN SQUARE Paradise, Birmingham 1 CHAMBERLAIN SQUARE Baskerville House is strategically situated adjacent to the Paradise redevelopment scheme

9 CLOCKWISE FROM TOP LEFT Deutsche Bank, HS2 new offices in 2 Snowhill and Jaguar Land Rover assembly plant Birmingham The UK s 2nd City Birmingham is unquestionably the UK s second city, in terms of both contribution to national GDP and population size. It is at the forefront of a regional economy worth around 110bn and has the largest concentration of businesses outside of London. Birmingham is a city of business with a balanced economy and is currently experiencing strong growth. Birmingham is the second largest city in the UK for the business and financial services sector which is responsible for around 130,000 jobs. Due to it s connectivity and excellent labour potential, the city has seen huge levels of inward investment in recent years. This has been highlighted by The Government Property Unit (GPU), HSBC, HS2 and Deutsche Bank relocating staff to the city. Birmingham has been named the best city in the UK, and the second best in Western Europe for investment (according to Site Selection). The city is home to a number of major corporations with businesses such as Jaguar Land Rover, HSBC, Deutsche Bank, RBS, Wesleyan Assurance, Gowling WLG, Gateley LLP, Shakespeare Martineau, The Law Society and Kraft all having significant headquarter facilities in the region. In total, the city is home to over 75,000 companies including 1,200 international businesses. To support the city s strong business credentials, there is a burgeoning leisure and tourism sector. Birmingham has been voted the most popular destination outside of London for meetings, conferences and events for six successive years (British Meetings & Events Industry Survey (BMEIS)). Birmingham is a city of young professionals. Over one third of the population is under 25 (making Birmingham the youngest city in Europe) and the city has 4.2m people of the working age living within a 1 hour drive (the largest labour pool in the UK). The city is home to three major universities, producing over 25,000 graduates every year. There are 20 universities within a 1 hour drive, including three Russell Group Institutions (The University of Birmingham, Warwick and Nottingham Universities). Birmingham is a city of business with a balanced economy and currently experiencing strong growth 12

10 Birmingham Facts & Figures 4 MICHELIN STAR RESTAURANTS John Lewis 250,000 SQ FT OF RETAIL SPACE 6 DEPARTMENT STORES 37m TOURISTS Heart of UK motorway network 1.3bn spent on infrastructure 75,000 25,000 3 New Street Station Birmingham Airport COMPANIES STUDENTS UNIVERSITIES 42.36M PASSENGERS 12.9M PASSENGERS 130,000 JOBS IN FINANCIAL SERVICES 110bn OF REGIONAL ECONOMY HS2 49 MINS TO LONDON 2019 NEW METRO LINE OUTSIDE BASKERVILLE HOUSE 14 15

11 Birmingham is home to four Michelin starred restaurants, more than any other city outside of London. Furthermore, all six major UK department stores (Selfridges, John Lewis, Harvey Nichols, House of Fraser, M&S and Debenhams) have a presence in the city centre. The John Lewis store, a 35m investment in 2014, extends to 250,000 sq ft and created 650 new jobs. John Lewis is the anchor tenant for the Grand Central scheme, a 150m redevelopment of Birmingham New Street station which included a new 500,000 sq ft shopping mall. The Bullring, anchored by Selfridges and totalling 1.349m sq ft, is the premier retail destination in the city with an estimated 36m visitors flocking there every year. The Mailbox, Birmingham s luxury retail, leisure and entertainment centre, has recently seen a 50m redevelopment to include an expanded Harvey Nichols store as well as additional retail and leisure facilities. Birmingham attracted 37.2m visitors in 2016 (a record year), according to Global Tourism Solutions. Since 2006, visitor numbers have increased by 12% (c. 3.6m people) which has added around 550m to the economy. The city s visitor economy is now worth an estimated 6bn. Birmingham s Frankfurt Christmas Market is the biggest of its kind in the UK with nearly 200 stalls lining the city centre, welcoming over 5.5m visitors. All six major UK department stores are located in the city centre CLOCKWISE FROM TOP LEFT The Library of Birmingham in the foreground of Baskerville House, The Bullring and Selfridges & Co. Building 17

12 Inward Investment and Regeneration 49 mins to London 50 Airlines, 140 Destinations PARADISE, BIRMINGHAM ARENA CENTRAL GRAND CENTRAL HIGH SPEED 2 AIRPORT Paradise is a prime 17 acre site in the heart of Birmingham City Centre, adjacent to Baskerville House, currently being redeveloped by Argent to include 1.8m sq ft of office and leisure space across 10 new buildings. The scheme is being funded by a joint venture between Birmingham City Council, Hermes and CPPIB. Phase I commenced in January 2015, which included major infrastructure works and a rerouting of the inner city road network as well as 250,000 sq ft of Grade A offices. In March 2016, PWC announced they would be taking 90,000 sq ft in 1 Chamberlain Square before committing to the remaining 58,000 sq ft in December The Arena Central development, soon to be home to a new 210,000 sq ft Grade A office, forward sold to HSBC for the headquarters of its new ringfenced retail banking division. PC is expected early The development is situated adjacent to Baskerville House. Arena Central has consent for over 1 million sq ft of commercial space in total. In September 2017 it was announced that HMRC had signed up to 238,998 sq ft within 3 Arena Central, which will see 3,600 public servants move there in The scheme will also include a new 22 storey PRS tower which will deliver 323 apartments at a cost of over 40m. Birmingham New Street station underwent a 600m redevelopment and extension, including a new shopping centre branded Grand Central, completed in September Grand Central, which is anchored by John Lewis extends to 500,000 sq ft of new retail and leisure with occupiers including Jo Malone, The White Company and Carluccio s. The railway station is the 7th busiest in the UK and the busiest interchange station outside of London. HS2, anticipated to be running from 2026, is the 24bn rail project initially linking London with Birmingham and cutting journey times to approximately 49 minutes. It will result in a new station being built at Curzon Street in Birmingham City Centre and 25,000 direct jobs will be created as a result. Royal Assent for Phase I was granted in February Phase II of the project will link Birmingham with Manchester and Leeds meaning that the city is truly at the centre of the UK s infrastructure network. Passenger throughput at Birmingham Airport in 2017 was 12.9m, making Birmingham the 3rd largest airport outside of London. The Airport is now home to over 50 airlines travelling to 140 destinations including New York, Delhi and Dubai. Emirates now operates a service to Dubai using the Airbus A380, the world s largest passenger airline. Furthermore twice weekly flights from Birmingham are now being planned to Beijing and Shanghai. In May 2014 the 400m runway extension was completed at a cost of 65m allowing the airport to expand into new markets. In September 2016 it was announced that 100m was being invested into a new baggage handling system and two new car parks including a drop-off zone

13 GLASGOW M77 M90 M8 EDINBURGH Birmingham - World Class Connectivity BELFAST INTERNATIONAL AIRPORT DUBLIN AIRPORT HS2 Motorways Railways Airlines NEW YORK DUBLIN BELFAST M74 SWANSEA M4 CARDIFF EXETER M5 M6 LIVERPOOL AIRPORT EDINBURGH BRISTOL NEWCASTLE UPON TYNE PRESTON M62 MANCHESTER M6 M5 A1 LEEDS BIRMINGHAM M6 SWINDON DARLINGTON EAST MIDLANDS AIRPORT BIRMINGHAM AIRPORT COVENTRY AIRPORT M4 M40 M3 M1 SOUTHAMPTON LEICESTER BARCELONA M1 HULL LUTON AIRPORT HEATHROW AIRPORT LONDON GATWICK AIRPORT CAMBRIDGE M25 M23 GENEVA M26 DUBAI FOLKESTONE NORWICH Birmingham is a truly international city. It is at the heart of the UK s road and rail network as well as having an ever expanding international airport, which handles over 12.9m passengers every year. An estimated 1.3bn have been invested in Birmingham s infrastructure over the past 5 years. ROAD Birmingham is in the heart of England s motorway network linking the M1, M5, M6, M40 and M42 meaning 90% of the population can be accessed within 4 hours. RAIL Birmingham has three main train stations in the heart of the city centre, Moor Street, Snow Hill and New Street, all with regular services across the country. New Street is the busiest interchange station in the UK outside of London with a train leaving the station every 37 seconds and more than 140,000 people passing through every day. The redevelopment of New Street Station has increased the capacity of the station from 32m passengers per year to 52m. London (Euston) Manchester Leeds Edinburgh AIR 1hr 20mins 1hr 29mins 2hr 3mins 4hr 57mins Birmingham Airport is located approximately 8 miles south east of Birmingham City Centre but is accessed in less than 10 minutes via Birmingham New Street station. The following destinations have regular flights from Birmingham. Paris Edinburgh Dublin Geneva Barcelona Dubai New York HS2 1hr 15 mins 1hr 10 mins 1hr 5 mins 1hr 30 mins 1hr 40 mins 6hr 55 mins 7hr 45 mins In February 2017, the HS2 Bill received Royal Assent paving the way for construction to begin between London and Birmingham. HS2 will become the world s most advanced passenger railway system. It is anticipated that around 25,000 direct jobs will be created in the region as well as an additional 100,000 in the wider network. The Department for Transport has confirmed that the line will mean travel time from Birmingham to London will be cut to 49 minutes. Two major interchange stations will be constructed as a result Arden Cross at Junction 6 of the M42 and Curzon Street in the centre of Birmingham. MIDLAND METRO The Midland Metro system originally opened in May 1999 providing a tram service between Birmingham and Wolverhampton. In December 2015 the extension of the line between Birmingham Snow Hill and New Street was completed following a 128m investment. Eventually the system will be extended further to Centenary Square stopping outside Baskerville House (c. 2019), Brindleyplace and eventually into Edgbaston. The Midland Metro currently carries an estimated 4.8m passengers per year. 21 PLYMOUTH PARIS

14 BARCLAYCARD ARENA THE LIBRARY OF BIRMINGHAM BRINDLEYPLACE THE CUBE THE MAILBOX PARADISE ARENA CENTRAL ADVANCED GPU (HRMC) COLMORE ROW VICTORIA SQUARE THE GRAND HOTEL NEW STREET GRAND CENTRAL THE BULLRING SELFRIDGES & CO. SNOWHILL

15 Situation CENTENARY SQUARE Baskerville House is situated alongside the Library of Birmingham and International Convention Centre (ICC), at Centenary Square, one of the principal public squares in the city centre. The Library of Birmingham was a 189m project completed in April 2013 and now sees around 316,000 visitors every year. The ICC, which also incorporates the Symphony Hall, is one of Europe s most high profile conference centres with over 350 events and 300,000 delegates every year. The square is currently subject to a 10m makeover project to include water features, lighting columns and other renovation works with completion due in the summer of Core location between Paradise and Arena Central PARADISE, BIRMINGHAM Immediately adjacent to the east of the property is the Paradise development, which is currently underway, and due to deliver 1.8m sq ft of new accommodation across 10 buildings. Phase I of the scheme also included a revised road layout and new public realm which will improve accessibility into the area. ARENA CENTRAL Baskerville House faces the Arena Central development, soon to be home to HSBC s 210,000 sq ft HQ which will house their personal and business banking operations. The transaction was the largest in Birmingham since 2002 and will accommodate over 1,000 staff. Phase II, known as 3 Arena Central, will deliver a 238,988 sq ft HQ for HMRC to be delivered in SUMMER HILL ROAD GEORGE STREET PARADISE CIRCUS LIONEL STREET GREAT CHARLES STREET BIRMINGHAM SNOW HILL COLMORE ROW CATHEDRAL SQUARE DALE END BARCLAYCARD ARENA NEW STREET BIRMINGHAM MOOR STREET SHEEPCOTE STREET PARADISE BIRMINGHAM NEW STREET NEW STREET BRINDLEYPLACE BROAD STREET BRIDGE STREET ARENA CENTRAL SUFFOLK STREET GRAND CENTRAL BULLRING BIRMINGHAM THE MAILBOX 24 CLOCKWISE FROM TOP Grand Central, One Arena Central and Centenary Square

16 The Property DESCRIPTION Baskerville House is a Grade II listed detached property, stone clad with classical features. It occupies a prominent position on Centenary Square in Birmingham City Centre. The property was originally constructed as one of four proposed civic buildings in the 1930s, it now provides Grade A accommodation over lower ground to sixth floor. The property was comprehensively refurbished and extended in 2007, with the addition of two new upper floors. The property now provides large flexible floor plates behind retained façades. Over the last few years the property has undergone further extensive refurbishment works to the office areas, external façades and also the replacement of the chilled water pipework. Pedestrian access to the property is via a double height vaulted reception, with security barrier controls, leading to a central core with six lifts leading to all of the office levels. Vehicular access is to the rear and is off Cambridge Street. Internally, the property benefits from the following institutional grade accommodation, including: Glazed atria from second to sixth floors Full air conditioning via chilled ceilings with perimeter chilled beams, fresh air at floor level and heating by way of a low level perimeter trench system Metal tile suspended ceilings incorporating a mixture of LG3 and LED lighting with column and perimeter up-lighters Four 13-person passenger lifts serving all floors plus two 17-person passenger lifts from ground to sixth and a separate goods lift Floor to ceiling heights ranging from 2.6m to 2.9m Full access raised floors with 160mm void Separate male, female and disabled toilets with high quality facilities including tiled walls and full height cubicles Showers provided on the lower ground floor Planning grid of approximately 1.5m per module 24 hour on-site security with CCTV routed to building management system and office on the lower ground floor BREEAM Very Good rating Fully DDA compliant 27

17 Accommodation The property has been measured by Plowman Craven in accordance with the RICS code of Measuring Practice (Sixth Edition) and provides the following approximate Net Internal Areas. SCHEDULE OF AREAS FLOOR USE SQ FT SQ M Sixth Office 17,659 1,640.6 Fifth Office 24,768 2,301.0 Fourth Office 28,496 2,647.4 Third Office 28,089 2,609.6 Second Office 30,160 2,802.0 First Office 25,744 2,391.7 Ground Office 25,073 2,329.4 Lower Ground Office 18,154 1,686.6 B.M.A ramps accessed via secure doors, which are operated by a key fob or from the reception desk. There is a direct pedestrian link from the car park to the central lift and stair core at lower ground level. Brindley Drive Car Park 100 spaces in the multi-storey car park on Cambridge Street to the rear of the property. The spaces are in dedicated sections of the car park, each with its own access control on levels 1, 2 and 3. West Yard 16 spaces at street level adjacent to the property. Further information including a schedule of car parking spaces is available upon request. Basement Storage TOTAL 199,355 18,520.9 The property has also been measured in accordance with International Property Measurement Standards (IMPS3). Further information is available on request. BRINDLEYPLACE 100 spaces on level 1, 2, 3 CAR PARKING Baskerville House benefits from three car parks offering a total of 141 spaces. Lower Ground Car Park 25 spaces at lower ground level accessed by a ramp from Cambridge Street. The car park benefits from separate in and out CAMBRIDGE STREET WEST YARD 16 spaces 25 spaces underground 28

18 Network Rail We are really pleased with what s been delivered. Baskerville House is a magnificent building and ideal for our agile-working requirements. Network Rail

19 Sample Floor Plans FIRST FLOOR 25,744 SQ FT / 2,391.7 SQ M SECOND FLOOR 30,160 SQ FT / 2,802.0 SQ M Floor plans are not to scale and for indicative purposes only. Floor plans are not to scale and for indicative purposes only

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21 Tenure CAR PARK The property (comprising Baskerville House, the West Yard and the parking areas within the Brindley Drive Car Park) is held under the terms of a single long lease from Birmingham City Council to Britel Fund Trustees Limited for a term of 250 years from 5th February 2002 at a peppercorn rent. It is intended that the sale will be structured by way of granting a new long leasehold from Britel Fund Trustees Limited to the purchaser on the same terms as the existing lease and expiring 1st February 2252, providing in excess of 233 years unexpired term. Further information is available on request. MULTISTOREY CAR PARK BRINDLEY DRIVE 141.1m 77 PARADISE CIRCUS QUEENSWAY STATUE LIBRARY OF BIRMINGHAM CENTENARY SQUARE REDEVELOPMENT HALL OF MEMORY (War Memorial) Plan not to scale. For indicative purposes only. 37

22 Tenancy Schedule TENANT DEMISE AREA (SQ FT) PARKING SPACES LEASE START LEASE BREAK LEASE EXPIRY RENT REVIEW CURRENT RENT RENT PSF COMMENT Kaplan Financial Ltd Lower Ground Floor / Part Ground Floor 19, /09/ /08/ /08/ /09/ , Service charge cap rising in line with RPI, currently 8.32 psf. Rent inclusive of 14 car parking spaces at 2,500 per space. Under Offer to Volker Rail Ltd Part Ground Floor 4, , year lease with 15 months rent free. Rent includes 2 spaces at 2,250 pa. Bestinvest (Holdings) Ltd Part Ground Floor 5, /08/ /07/ /08/ , Rent inclusive of 4 car parking spaces. Marketing Birmingham Ltd Marketing Birmingham Ltd Part Ground Floor (Rear Left) Part Ground Floor (Rear Right) 6, /12/ /10/ , , /10/ /10/ , Network Rail Infrastructure Ltd 1st Floor 25, /04/ /04/ /04/ , Network Rail Infrastructure Ltd 2nd Floor 29, /04/ /04/ /04/ , Reduced rent period from 14 October 2016 until 13 October 2018 at half rent. Rent inclusive of 1 car parking space. (Car parking rent = 1,850) right to take 4 further car parking spaces. Reduced rent period from 14 October 2016 until 13 October 2018 at half rent. Rent inclusive of 2 car parking spaces at 2,500 each and 3 further spaces at 1,850 each. (Car parking rent = 10,550). Rent inclusive of 3 car parking spaces ( 7,500). Rent based on historic fixed area of 25,803 sq ft. Rent inclusive of 2 car parking spaces ( 5,000). Rent based on historic fixed area of 29,610 sq ft. Vacant Part 3rd Floor 13, , months rent, 12 months service charge guarantee. Under Offer to Network Rail Part 3rd Floor 14, , Network Rail Infrastructure Ltd 4th Floor 27, /04/ /04/ /04/ , Under offer new 10 year lease with 5 year break. 18 months rent free, further 6 months rent free if break not exercised. Additional 2,500 per space for 3 car parking spaces. Rent inclusive of 2 car parking spaces ( 5,000). Rent based on historic fixed area of 27,993 sq ft. Vacant 5th Floor 24, , months rent, 12 months service charge guarantee. Vacant 6th Floor 17, , months rent, 12 months service charge guarantee. Marketing Birmingham Ltd Car Parking Spaces 21/ /09/ /10/2021-5,000 2, Terminable on one months notice. Vacant Car Parking Spaces TOTAL 197, ,909, * Network Rail areas taken from historic survey and are smaller than the updated measured survey

23 Covenant Information Network Rail own and operate the railway infrastructure in England, Wales and Scotland on behalf of the nation, employing over 35,000 people. This includes 20,000 miles of track, 40,000 bridges and viaducts and thousands of tunnels, signals, level crossings and points. Network Rail also manages rail timetabling and 18 of the largest stations in England, Scotland and Wales, Including Birmingham New Street and London Euston. We are really pleased with what s been delivered. Baskerville House is a magnificent building and ideal for our agile-working requirements. - Network Rail Network Rail Infrastructure Limited has a Dun & Bradstreet rating of 5A 1, their latest accounts are shown below: 31/03/ /03/ /03/2015 Sales/Turnover 6,252,000,000 6,138,000,000 6,113,000,000 Profit/(Loss) Before Taxes Tangible Net Worth 361,000, ,000,000 (457,000,000) 5,569,000,000 6,657,000,000 6,392,000,000 Kaplan Financial, part of Kaplan Inc, is the UK s leading global provider of education and training. Programmes include professional accountancy and financial training, vocational qualifications and Apprenticeships, financial markets, postgraduate and undergraduate degrees. Kaplan combines 70 years of educational and learning excellence with leading online learning technologies, award-winning study materials and support from the industry s most experienced tutors and assessors who are dedicated to ensuring success. Kaplan Financial Ltd has a Dun & Bradstreet rating of 4A 1, their latest accounts are shown below: 31/12/ /12/ /12/2014 Sales/Turnover 68,279,000 68,101,000 67,270,000 Profit/(Loss) Before Taxes Tangible Net Worth (1,159,000) (2,031,000) (655,000) 18,405,000 19,750,000 20,659,000 The West Midlands Growth Company (WMGC) will help to create new jobs, expand existing businesses and attract new businesses and investment to the region, aligned to the ambitions set out in the West Midlands Combined Authority (WMCA) Strategic Economic Plan. Formerly Marketing Birmingham, the company was established in April It continues to operate leisure and business tourism programmes Visit and Meet Birmingham, inward investment programme Business Birmingham and its partnership programme. The WMGC has been established in partnership with Local Enterprise Partnerships, local authorities, Growth Hubs, universities and a wide range of businesses across the private sector. It focuses its core activities across Greater Birmingham and Solihull, Coventry and Warwickshire and the Black Country, with the potential and scope to deliver services in a wider Midlands context. Marketing Birmingham Limited has a Dun & Bradstreet rating of N 1. Their latest accounts are shown below. Bestinvest is a financial services group based in London. It provides independent investment advice, financial planning, wealth management and execution-only services predominantly to private investors. The group serves 70,000 clients through its website, telephone-based investment advisers and face-to-face meetings with independent financial advisers. Clients investments are generally in funds - unit trusts, OEICs and investment trusts - or bespoke discretionary funds. In 2015 Bestinvest was awarded Best Online/ Execution-only Stockbroker and Best Self-select ISA Provider by readers of the Investors Chronicle and Financial Times. Bestinvest is a Tilney Group Company. Bestinvest (Holdings) Limited has a Dun & Bradstreet rating of N 2. Their latest accounts are shown below. 31/12/ /12/ /12/2014 Sales/Turnover 3,667,000 1,759, ,000 31/12/ /12/ /12/2014 Sales/Turnover 5,846,970 5,453,424 7,673,700 Profit/(Loss) Before Taxes 13,507 8,538 6,555 Profit/(Loss) Before Taxes Tangible Net Worth 4,578, , ,000 (326,000) 521,000 5,658,000 Tangible Net Worth (1,291,271) (907,598) (974,285) 40 41

24 Occupational Overview PIPELINE Supply of new office accommodation in the city is currently at the highest level since before the 2008 recession with a number of new and major refurbishment schemes coming forward. These include: 3 Snowhill 420,000 sq ft (2019) 2 Chamberlain Square 183,000 sq ft (2019) OCCUPATIONAL OVERVIEW 2017 proved to be an exceptional year for occupier activity in Birmingham, as both existing occupiers and new entrants vied for city centre space. Office take-up increased by 45% from the previous year to reach 1.01m sq ft by year end. This total is 34% ahead of the 10-year annual average. SUPPLY With large scale development delivering new space to the market, Grade A availability increased to 250,000 sq ft, although this is still 5% below the 10-year average. At the end of Q1 2018, 1.6m sq ft was under construction with delivery due before the end of Of this total, approximately 900,000 sq ft is speculative. DEMAND The city has seen significant inward investment in recent years. The most significant has been HSBC s 210,000 sq ft commitment at Arena Central which will be home to the HQ for its UK Retail Banking operation. Moreover, Advanced consolidated a number of regional offices into 45,000 sq ft at The Mailbox. More recently, the Government Property Unit (GPU) committed to a 238,900 sq ft pre-let taken at 3 Arena Central. The building will be the Midlands regional hub for HM Revenue and Customs (HMRC), alongside other government departments. Occupation is scheduled for Following an agreement in March 2016 to take 90,000 sq ft, PWC took the remaining 58,600 sq ft at 1 Chamberlain Square. The building will enable PWC to relocate its existing Birmingham based operation from 19 Cornwall Street as well as providing room for further growth. Occupation is scheduled for Q During 2017 Professional Services continued to form the largest source of demand in Birmingham. The sector accounted for 30% of take-up, with the RICS (30,800 sq ft), Hogan Lovells (23,400 sq ft) and Arcadis (22,900 sq ft) being other notable firms to take new space in Underpinned by the GPU letting, the public sector accounted for the next highest proportion of take-up, comprising 27%. Prime headline rents increased by 3% to per sq ft. We anticipate a further rise to per sq ft in Colmore Row 225,000 sq ft (2020) RENT Prime headline rents now stand at per sq ft. As a result of new stock coming forward, Knight Frank anticipate a further uplift to per sq ft in RECENT LEASING TRANSACTIONS Q Q DATE BUILDING OCCUPIER SIZE (SQ FT) RENTAL Q3 1 Chamberlain Square PWC 90, Q4 Gnd & 5th floor 55 Colmore Row RICS 30, Q4 1 Chamberlain Square PWC 58, Q4 4th floor The Colmore Building Willis Towers Watson 23, Q3 55 Colmore Row Savills 16, Q2 1 Colmore Square Hays 17, Q1 The Mailbox WSP 46,500 P&C Q1 134 Edmund Street West Midlands Trains 21, Q Q Q Q Q Q Q Q

25 CLOCKWISE FROM TOP LEFT 2 Chamberlain Square, The Colmore Building, 55 Colmore Row and 3 Snowhill Competing Schemes COMPETING SCHEMES Occupiers looking for space in Birmingham have been hampered in recent years due to lack of suitable options. Whilst there are a number of significant refurbishment projects currently underway, the competition for floorplates of 20,000 30,000 sq ft is still tight, as demonstrated below. Baskerville House will remain the most cost effective option for an occupier seeking a 20,000-30,000 sq ft floorplate in the city core: ADDRESS FLOORPLATE SIZE (SQ FT) QUOTING RENT (PSF) LANDLORD COMMENT The Colmore Building 23, Ashby Capital 55 Colmore Row 23, TH Real Estate 1 Colmore Square 22, Legal & General 2 Chamberlain Square, Paradise 20,000-24, Paradise Circus Limited Partnership The Lewis Building 16, Legal & General Fully refurbished Fully refurbished and available now PC Q Fully refurbished and available RENTAL GROWTH FORECAST Experian are currently forecasting that Birmingham is set to experience excellent rental growth in the coming years. Experian have provided the following growth predictions: AVERAGE RENTAL GROWTH FORECASTS P.A. (BIRMINGHAM OFFICES) Birmingham 1.1% 1.6% 2.3% 2.8% 3.0% There are currently only three existing buildings in Birmingham competing with 20,000-30,000 sq ft floorplates 44

26 Investment Market RECENT TRANSACTIONS DATE Jan 2018 Jan 2018 Jan 2018 Dec 2017 Feb 2017 ADDRESS 55 Colmore Row, Birmingham 3 Hardman Square, Manchester 5 St Philips Place, Birmingham One Cathedral Square, Bristol 3,4,5,6 and 9 Brindleyplace, Birmingham AREA (SQ FT) TENANT(S) WAULT (YEARS) PRICE PRICE PSF NIY 157,562 Multi-let c m % 178,339 Multi-let m % 81,493 Secretary of State m % 56,059 Dyson m % 566,000 Multi-let 11.5 c. 260m % 2017 was another year full of activity in the Birmingham Investment Market. Office investment turnover reached 599m, 47% ahead of the 10 year average in the city. The strong investor interest in the city is set to continue with only a limited number of opportunities coming forward, particularly at the prime end. The most sizable of these transactions was the purchase of 3,4,5,6 and 9 Brindleyplace by HSBC Alternative Investments for 260m. Prime city centre yields have hardened to 4.75% compared to a historic low of 4.35% achieved in This still compares favourably to prime yields currently being seen in Central London (3.5%). The pool of buyers has never seen as much depth as present with UK Institutions competing with core plus private equity house and overseas investors has started very strongly with sale of 55 Colmore Row by IM Properties to TH Real Estate s European Cities Fund for 98m. The building was redeveloped in 2017 and is home to the RICS and Savills. This was closely followed by Royal London Asset Management s purchase of 5 St Philips Place for 45m (c. 4.7% NIY) which is let to the Secretary of State until December

27 Investment Rationale Further Information Baskerville House is one of the most iconic landmark buildings in Birmingham The property will benefit from the incredible growth Birmingham is witnessing and the high quality regeneration of the immediate area including Paradise and Arena Central An investor has the opportunity to let the vacant space at a new headline rent and regear existing leases Listed status means that vacant space does not currently attract void business rates Baskerville House is extremely well positioned to benefit from continued rental growth within the city The property has been extensively refurbished and requires minimal capex going forward Opportunity to generate additional income from letting out the vacant car parking spaces. Once let at Knight Frank opinion of market rent this will provide in an additional 257,500 of income per annum The property will benefit from the new amenity offerings which will be delivered at Paradise and Arena Central Baskerville House will benefit from the substantial investment currently being seen in Centenary Square immediately outside of the building as well as the extension of the Metro line SERVICE CHARGE The budget for the current service charge year (1st April 2018 to 31st March 2019) is 1,438,363, which equates to an overall rate of 7.34 per sq ft. RATES The property is listed and, therefore, there is no liability for empty building business rates. VAT We understand that the property will be treated as a Transfer of a Going Concern for VAT purposes. EPC The property has an excellent Energy Performance Certificate rating of B (46). SURVEYS CAPITAL ALLOWANCES Further information is available on request. DATAROOM A data room has been set up with relevant documentation; access is available on request. PROPOSAL Offers are sought in excess of 70,700,000 (Seventy Million, Seven Hundred Thousand Pounds). A purchase at this price would reflect a net initial yield of 6.50% and a low capital value of 351 per sq ft after allowing for usual purchaser s costs. Subject to contract and exclusive of VAT. The vendor has prepared the following surveys which can be assigned to the purchaser: Plowman Craven Measured Survey Workman Building Survey Workman Environmental Survey Further information available on request

28 Contacts For further information or to arrange an inspection please contact the following: Tim Smither T +44 (0) M +44 (0) tim.smither@knightfrank.com Ashley Hudson T +44 (0) M +44 (0) ashley.hudson@knightfrank.com Freddie Owen T +44 (0) M +44 (0) freddie.owen@knightfrank.com Jonathan Devaney T +44 (0) M +44 (0) jonathan.devaney@knightfrank.com Joshua Morris T +44 (0) M +44 (0) joshua.morris@knightfrank.com Ben Wisher T +44 (0) M +44 (0) ben.wisher@knightfrank.com 55 Baker Street London W1U 8AN 1 Colmore Row Birmingham B3 2BJ IMPORTANT NOTICE (1) Particulars: These particulars are not an offer or contract, nor part of one. You should not rely on statements by Knight Frank LLP in the particulars or by word of mouth or in writing ( information ) as being factually accurate about the property, its condition or its value. Knight Frank LLP has no authority to make any representations about the property, and accordingly any information given is entirely without responsibility on the part of the agents, seller(s) or lessor(s). (2) Photos etc: The photographs show only certain parts of the property as they appeared at the time they were taken. Areas, measurements and distances given are approximate only. (3) Regulations etc: Any reference to alterations to, or use of, any part of the property does not mean that any necessary planning, building regulations or other consent has been obtained. A buyer or lessee must find out by inspection or in other ways that these matters have been properly dealt with and that all information is correct. (4) VAT: The VAT position relating to the property may change without notice. Knight Frank LLP is a limited liability partnership registered in England with registered number OC Knight Frank LLP registered office is 55 Baker Street, London, W1U 8AN, where you may look at a list of members names. May Brochure designed and produced by SAENTYS +44 (0) info@saentys.com saentys.com

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