For Sale Hetton Court, The Oval, Leeds LS10 2AU

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1 On the instructions of Canada Life Investments Office Investment Opportunity For Sale Hetton Court, The Oval, Leeds LS10 2AU

2 Investment Summary The Penny Hill Centre Prominent, well located office investment Secure income until 10th October 2019 The building measures approximately 20,197 sq ft (1,876.3 sqm) and sits on a site of approximately 0.73 acres (0.31 ha) Let to John Mowlam Construction Plc (Carillion Construction Ltd as Guarantor), and sub-let in its entirety to SRCL Limited Asset Management Opportunities We are instructed to seek offers in excess of 2,685,000 Subject to contract and exclusive of VAT for our client s freehold interest A purchase at this level reflects a NIY of approximately 9.98% (which takes into account SDLT changes with effect from 17/03/16) after purchasers costs of 6.41%. and a low capital value of approximately 131 per sq ft The Oval to Church St and M621 Hunslet Green Retail Park for identification purposes only M621

3 Location Leeds is strategically located approximately 195 miles north of London and 44 miles north east of Manchester. It has a population of 715,500 making it the third largest city in the UK after London and Birmingham (source: Think Leeds). Over 2 million people live within a 30 minute drive of Leeds city centre making Leeds a major employment provider for adjacent districts. Leeds has become known as the largest centre for banking and commercial law outside of London. The city benefits from two universities and one of Europe s largest teaching hospitals. Communication Links: Leeds benefits from immediate access to the major road network including the M621 and M1 to the south the A1(M) to the north, and the M62 to the west. Leeds Bradford International Airport located approximately 8 miles to the north west has daily flights to major UK and European destinations, and allows access to a wide range of onward connections. The city also benefits from direct rail services from Leeds mainline station to London Kings Cross, with a journey time of approximately 2 hours 15 minutes. Leeds city station is one of the busiest in the country outside central London with some 101,000 passengers passing through the station every day (source: Think Leeds). Major improvements to the railway station have been recently completed with the opening of the new, 20m Southern entrance which it is forecast will be used by approx. 20,000 passengers daily.

4 Situation The property occupies a prominent position approximately 2 miles south east of Leeds city centre and Junction 4 of the M621 motorway lies less than ½ mile south west of the property, which in turn, leads to the M1 and M62 and national motorway network. Nearby occupiers include Morrisons, Lidl and Iceland with the surrounding area being mixed use. THE OVAL A58(M) LEEDS A64(M) Sat Nav: LS10 2AU A61 M621 HILLIDGE RD CHURCH ST Hetton Court THE OVAL A61 Hetton Court A63 RIVER AIRE M621 Morrisons The Oval KFC Church St Lidl 4 A61 BEZA ST CHURCH ST A653 6 BELLE ISLE 7 M621 for identification purposes only

5 Description Hetton Court comprises a modern 3 storey office building, developed in the mid 1990 s with open surface car parking for approximately 111 cars. The surrounding area comprises a mixture of use types including two large retail parks, sports ground and residential dwellings. Surrounding occupiers include Morrisons which incorporates the Penny Hill Shopping Centre and which is home to multiple local businesses including Lidl, KFC, Mecca Bingo, B&M Bargains and several other large national occupiers alongside the various businesses. The property is of concrete frame construction with brickwork elevations under a pitched and hipped tile covered roof. The building is served by a 6 person passenger lift and is air conditioned in part. Accommodation The premises offer the following approximate area on a net internal area basis Accommodation Net Internal Area sq m sq ft Ground floor ,797 First floor ,700 Second floor ,700 Total 1, ,197 Car parking 111 surface spaces Approx site area acres ha

6 Tenancy Information The property is let in its entirety to John Mowlem Construction Plc with Carillion Construction Ltd as Guarantor on a 25 year, FRI lease expiring on 10th October 2019 and at a passing rent of 285,175 pax. The Tenant has sub-let the building and car parking in its entirety to SRCL Limited under two separate sub-leases excluded from the security of tenure provisions of the landlord and Tenant Act 1954 (as amended) at a current, total rent of 78, pax but with fixed uplifts in June and July 2018 to a total rent of 208,830 pax as follows:- Floor Sub-tenant Rent reviews Sub-lease expiry Current sub-lease rent pax Ground + First SRCL 06/01/17 and 05/07/18 29/09/ , Second SRCL 06/01/17 and 01/06/18 29/09/ ,763 Covenant Summary Carillion Construction Ltd Company No: Credit Safe Score: A77 Very Low Risk Carillion is one of the UK s leading integrated support services companies, with extensive construction capabilities, and a substantial portfolio of Public Private Partnership projects. The company employs over 40,000 people worldwide, with established businesses in the UK, Canada, the Middle East and North Africa, and annual revenues of more than 4 billion. Their vision is to be the trusted partner for providing services, delivering infrastructure and creating places that bring lasting benefits to our customers and the communities in which they live and work. SRCL Ltd Company No: Credit Safe Score: B53 Low Risk SRCL is part of Stericycle Inc. which provides healthcare services to over half a million customers worldwide, SRCL has grown significantly in the UK over the past 10 years and is one of the UK s leading healthcare waste services providers. The company provides a range of services to customers within the public and private sector including healthcare waste services, the SRCL Group now offers patient transport, healthcare courier services, compliance tools and training services. With a history stretching back over 200 years Carillion have created award-winning cultural, residential, commercial, community and infrastructure developments in cities across the world including, in the UK, the Channel Tunnel, the Tate Modern and the Library of Birmingham, which came top in a poll of the public s favourite new buildings.

7 Leeds Office Market Activity in the Leeds Office Market during 2015 exceeded industry expectations with overall city centre take-up being the second highest recorded annual total behind the record breaking year of Activity in Q was particularly strong as reducing levels of supply were met with increased demand. In the Out of Town market, 98,490 sq ft of take-up was recorded in the last quarter of 2015 and the full year figure of 268,041 sq ft, was up 13 percent on 2014 (236,719 sq ft). Of the 23 deals to complete in the final quarter four deals were over 10,000 sq ft. Furthermore, a new out-of-town headline rent for an existing building of 18 per sq ft was set when Hain Daniels acquired 11,529 sq ft at Building 2100, Thorpe Park. The Leeds market is characterised by a back drop of steadily increasing deal sizes, improving headline rents and falling tenant incentive packages. Recent Transactions Date Address Rent Size Tenant March 15 Suite 2, Roundhouse Business Park, LS psf 2,345 sq ft Banana Kick June 15 Ground floor, Unit 5 Armley Court, LS psf 1,528 sq ft Clockwork Creative September 15 Riverside Suite, Admiral House, psf 7,012 sq ft HD Brows Rose Wharf. LS9 December 15 Raynham House, Capitol Park, LS psf 12,700 sq ft BDW Trading December 15 First floor, Pavilion Building, 9.75 psf 5,000 sq ft Alno Kitchens City West Business Park, LS12 Asset Management Opportunity to surrender head lease and undertake extension of current sub-leases Potential for alternative use (subject to planning) Potential for owner occupation with vacant possession possible by October 2019

8 Tenure: Freehold Energy Performance Certificate (EPC): An EPC has been instructed and will be made available to prospective purchasers in due course. Proposal: We are instructed to seek offers in excess of 2,685,000 (Two Million Six Hundred and Eighty Five Thousand Pounds) Subject to Contract and exclusive of VAT. A purchase at this price reflects an attractive net initial yield of approximately 9.98% (which takes into account SDLT changes with effect from 17/03/16) after purchasers costs of 6.41%.. A purchase at this level would represent a low capital value of 131 per sq ft. VAT and Costs Each party will be responsible for their own legal costs incurred in the documentation of this transaction. The purchaser will also be responsible for Stamp Duty Land Tax, Registration Dues and any VAT incurred where applicable. Get in touch Further information is available on our website at: Please contact the sole agents: Richard Dunn DDL: richard.dunn@sw.co.uk Tom Goode DDL: tom.goode@sw.co.uk Subject to Contract Misrepresentation Act 1967: Messrs Sanderson Weatherall LLP for itself and for the vendor(s) or lessor(s) of this property whose agents they are, give notice that: 1) These particulars do not constitute any part of an offer or contract; 2) None of the statements contained in these particulars as to the properties are to be relied on as statements of representations of fact; 3) Any intending purchasers must satisfy themselves by inspection or otherwise as to the correctness of each of the statements contained in these particulars; 4) The vendor(s) or lessor(s) do not make or give and neither Messrs Sanderson Weatherall LLP nor any person in their employment has any authority to make or give any representation or warranty whatsoever in relation to this property; 5) None of the building s services or service installations (whether these be the specific responsibility of the freeholder, lessor or lessee) have been tested and are not warranted to be in working order. Finance Act 1989: Unless otherwise stated all prices and rents are quoted exclusive of VAT. Consumer Protection from Unfair Trading Regulations 2008 and Business Protection from Misleading Marketing Regulations 2008; Every reasonable effort has been made by Sanderson Weatherall to ensure accuracy and to check the facts contained in these particulars are complete. Interested parties are strongly advised to take appropriate steps to verify by independent inspection or enquiry all information for themselves and to take appropriate professional advice. Sanderson Weatherall LLP. Registered in England companynumber OC Registered Office 25 Wellington Street Leeds LS1 4W Design by Sanderson Weatherall LLP 25 Wellington Street, Leeds LS1 4WG