No1 CALLAGHAN SQUARE CArdiff CF10 5BT PRIME REGIONAL CITY CENTRE OFFICE INVESTMENT OPPORTUNITY

No1 CALLAGHAN SQUARE CArdiff CF10 5BT PRIME REGIONAL CITY CENTRE OFFICE INVESTMENT OPPORTUNITY

2 investment SUMMARY - Opportunity to acquire a prime office investment in the heart of city centre, and within close proximity to Central Station. - is Wales capital city and one of the major regional centres in the UK. - Callaghan Square is a high profile office development located centrally in s prime office core. It forms an integral part of the Central Business District, alongside Central Square and Capital Quarter. - No 1 Callaghan Square is regarded as one of the trophy buildings in, comprising 93,670 sq ft of Grade A office accommodation, with an excellent city centre car-parking ratio of 1:880 sq ft. - Let to Eversheds Sutherland (International) LLP for a further 4 years, with Eversheds having been in occupation since 2002. No.1 Callaghan Square is Eversheds second largest UK office. - Current rent of 1,850,000 per annum, equating to 19.75 per sq ft, with prime rents in standing at 25.00 per sq ft and expected to continue to grow, due to exceptional demand / supply fundamentals. - Seeking offers in excess of 26,400,000 (Twenty Six Million Four Hundred Thousand Pounds) which reflects a net initial yield of 6.5% having deducted normal purchaser s costs of 7.72%, reflecting effective Stamp Duty change from April 2018. This equates to a low capital value of 282 per sq ft. Subject to Contract & Exclusive of VAT.

3 RFC PRINCIPALITY STADIUM STADIUM HOUSE CASTLE CENTRAL MARKET ST DAVID S SHOPPING CENTRE CAPITOL SHOPPING CENTRE MOTORPOINT ARENA QUEEN STREET CENTRAL SQUARE No1 CALlAghAn SQUARE CENTRAL CAPITAL QUARTER CENTRAL QUAY No1 CAllAghAn SQUARE CArdiff CF10 5BT

4 LOCATiON is one of the UK s premier business locations, attracting numerous national and global companies including Admiral Insurance, Zurich, Atradius, Legal & General, Deloitte, BT, BBC and Eversheds. is a popular tourist destination attracting millions of visitors every year. There are numerous attractions including the iconic Principality Stadium, Castle, Bay and the International Sports Village. has an established retail core, which includes a major shopping centre, known as St. David s 2, which was completed in 2009. This development, together with the original St David s Shopping Centre, comprises a combined 1.4 million sq ft of retail space, including a 260,000 sq ft John Lewis store. This retail development has elevated firmly into the top 10 of the UK s retail hierarchy. is one of the UK s premier business locations, attracting numerous national and global companies. NORTH ROAD COLLEGE ROAD Welsh College Of Music & Drama Bute Park RFC TUDO R STREET MUSEUM AVENUE KING EDWARD VII AVENUE KINGSWAY HIG H ST CASTLE STREET DUKE ST River Taff University Castle Principality Stadium Cathays Park WESTGATE STREET University Main Site City Hall GREYFRIARS RD WHARTON ST SENGHEN NYDD ROAD PARK LANE ST A NDREW'S PL PARK PLACE QUEEN STREET PARK LANE SALISBURY ROAD BO ULEVARD-DE-NANTES STUTTGA RTER ST DUMFRIES PL Castle Arcade Shopping Centre WOOD STREET ST MARY STREET PARK PLACE National Museum & Gallery Queens West Shopping Centre Central Market CENTRAL STATION CATHAYS STATION Gorsedd Gardens St David's Shopping Centre HILL'S ST THE HAYES ILL LANE M C USTO M HO USE ST CHARLES STREET BRIDGE STREET St David's Shopping Centre John Lewis CHURCHILL WA Y MARY ANN ST No1 CAlLAghAn SQUARE RICHMOND CR Capitol Shopping Centre CHURCHILL WAY Motorpoint Arena BUTE TERRACE RICHMOND ROAD WEST G RO VE NEW PORT ROAD QUEEN STREET STATION SA N D O N ST GUILDFOR ST HERBERT STREET ADAM ST PENARTH ROAD CALLAGHAN SQUARE TRESILLIAN WAY CANAL PARADE BUTE STREET

5 COMMUNiCATiONS is the capital city of Wales and has a population of over 300,000 with a further 1.2 million within a 45 minute travel time of the city centre. The city is strategically located approximately 150 miles west of London, 106 miles south-west of Birmingham and 43 miles west of Bristol. benefits from excellent road links and can be accessed from junctions 29-33 of the M4 motorway. International Airport is located 12 miles to the south west of city centre and offers scheduled flights to a number of European destinations and the Middle East. Central Railway Station provides intercity rail services to London Paddington approximately twice an hour with a journey time of under 2 hours following completion of the electrification upgrade works, which will be completed in 2018. Distance by road Newport 15 miles Swansea 41 miles Bristol 43 miles Birmingham 113 miles Reading 114 miles London 147 miles National Rail times from Bristol 50 minutes Swindon 60 minutes Reading 95 minutes London 127 minutes Manchester 190 minutes International Airport is located 12 miles to the south west of city centre and offers scheduled flights to many European destinations and the Middle East. A1(M) LEED S M62 A40 M50 118 TO BIRMINGHAM LIVERPOOL M56 M6 MANCHESTER M60 M1 M18 A1(M) 49 SWANSEA A465 M4 BRIDGEND MERTHYR TYDFIL A470 BRISTOL CHANNEL ABERGAVENNY A4042 A449 A40 33 32 26 24 23 29 NEWPORT M5 A466 CHEPSTOW 21 20 18 19 22 BRISTOL 4 3 BRISTOL A37 11 GLOUCESTER 13 A48 M5 BATH M4 STROUD A4 CHELTENHAM A419 SWINDON A40 15 TO LONDON GLOUCESTER M40 M1 SWANSEA OXFORD M25 M4 LONDON BRISTOL M4 Heathrow Bristol M3 M20 BATH M23 Gatwick M5 SOUTHAMPTON M27 NOTTINGHAM M54 M42 BIRMINGHAM M6 M11 M5 A1(M) M50 CHELTENHAM NORWICH CAMBRIDGE BRIGHTON EXETER BOURNEMOUTH M2 DOVER

6 SituAtion Along with Central Square, Callaghan Square is considered one of the prime office pitches in. Callaghan Square is situated within the heart of the city centre, located adjacent to Central Railway station and within walking distance of Central Square where the new BBC Wales Head Office and Government Property Unit for Wales will be located. The St David s Shopping Centre, the Principality Stadium and the rest of the city centre amenities are all easily accessible. MEPC were the original developers of this major office scheme on the north side of Callaghan Square, which was competed in two phases. Phase 1, which includes No1&2 Callaghan Square, was completed in 2002 while Phase 2 comprises three buildings totalling approximately 160,000 sq ft and was completed in 2007 and 2008. Callaghan Square forms an integral part of Council s multi million pound vision for a Central Business District in the heart of the city centre. Callaghan Square is considered one of the prime office pitches in - Adjacent to Central Railway Station and with easy access to the city centre amenities.

7 DESCRiPTiON The subject property comprises a prominent, Grade A office building arranged over ground and four upper floors, completed in 2002. The building forms an L shape around a central core, thereby providing flexible office floorplates. The office floors benefit from good floor to ceiling heights and excellent natural light. At ground floor level an access road leads to secure car parking for both No.1 and No.2 Callaghan Square. The specification includes: Four pipe fan coil air-conditioning Fully accessible raised floors Suspended metal ceilings with recessed lighting Four 8 person passenger lifts Male, female, disabled toilet and shower facilities on each floor Feature double height reception area 107 on-site secure car parking spaces to the rear of the property, providing an exceptional city centre car-parking ratio of 1:880 sq ft. Prominent, Grade A headquarters office building arranged over ground & four upper floors.

8 AccommodAtion The property has been measured in accordance with the RICS Code of Measuring Practice (Sixth Edition) and provides the following approximate Net Internal Areas: Demise sq ft sq m Floors 1-4 78,246 7,269.29 Ground Floor 15,424 1,432.94 Total 93,670 8,702.23 No.2 Site The site extends to approximately 1.069 acres (0.433 hectares). Tenure Typical floor plan. Not to scale. Freehold. There is a decked car park and parking at grade level to the rear of the subject property that falls within the freehold title. No.2 Callaghan Square has the right to use 55 designated car parking spaces in this area. For indicative purposes only.

9 TenAncy No.1 Callaghan Square is let on two FRI leases to Eversheds Properties Limited, now Eversheds Sutherland (International) LLP on 20 year leases expiring 19th April 2022, providing 4 years term certain. The rent has recently been agreed at review to 1,850,000 per annum ( 19.75 per sq ft overall), as per the following schedule: Demise sq ft Lease Start Lease Expiry Rent (p.a.) Rent (psf) Ground floor 15,424 19/04/2002 18/04/2022 298,454 19.35 1st-4th floors 78,246 19/04/2002 18/04/2022 1,551,546 19.83 93,670 1,850,000 19.75 Aecom and HSBC occupy part ground floor and part first floor, respectively on sub-leases. Further information can be provided upon request. TenAnt profile Eversheds merged with Sutherland Asbill & Brennan in 2016 to form one of the largest global law firms, employing around 3,000 lawyers across 66 offices in 32 jurisdictions. Eversheds Sutherland s office is the second largest within its UK network, employing around 500 people, and they have occupied the property since completion in 2002. Eversheds most recent results are as follows: Year Ending 30th April 2017 ( 000 s) Year Ending 30th April 2016 ( 000 s) Year Ending 30th April 2015 ( 000 s) Turnover 436,444 404,767 378,812 Profit / (Loss) Before Taxes 131,456 125,688 122,571 Tangible Net Worth 164,612 169,824 180,819 Net Current Assets (Liabilities) 171,704 178,368 180,819

10 MARKET COMMENTARY is the principal office market within Wales, and one of the major regional centres in the UK, with an estimated office stock of approximately 11 million sq ft. The central office market is made up of three distinct areas, the Business District surrounding Central railway station, Waterside and the out of town business parks. The City Centre office market is focused around Central Square, Callaghan Square and Capital Quarter which together extends to in excess of 1.3 million sq ft of Grade A office accommodation. Central Square is being developed by Rightacres and City Council with funding from Legal & General. The first phase of office development, One Central Square, completed in 2016 and is fully let with new headline rents at 25.00 per sq ft for the city being secured. In addition, the BBC have committed to occupying a new 165,000 sq ft Foster & Partners designed office building, with completion due in 2018, also let at 25.00 per sq ft. Finally Two Central Square 145,000 sq ft will be complete in Q4 2018 and has already been pre-let to University and Hugh James at 25.00 per sq ft. Grade A supply is at an extremely low level in the city, at around 110,000 sq ft with under 100,000 sq ft available in the City Centre. This equates to less than 1 years Grade A supply based on historic levels. The lack of Grade A supply has encouraged further development in the City, with No 3 (75,000 sq ft) and No 4 Capital Quarter (95,000 sq. ft.), both under construction and expected to be delivered in 2018. Callaghan Square totals just over 300,000 sq ft in 5 buildings, and is around 95% let with only 17,000 sq ft currently available. This underlines the enduring attraction to occupiers of the location, principally due to its proximity to the mainline railway station and the attractive working environment that the scheme offers. Some key rental comparables are provided below: Property Size (sq ft) Tenant Lease start Term Rent (psf) Two Central Square 45,000 University Q4 2018 25 25.00 Two Central Square 100,000 Hugh James Solicitor Q4 2018 15 25.00 One Central Square 73,500 Motonovo Finance August 2016 15 22.00 One Central Square 6,500 Studio Tri June 2016 5 25.00 BBC HQ Central Square 165,000 BBC Q2 2018 20 25.00 THE FUTURE Headine Rent per sq ft Knight Frank are aware of approximately 400,000 sq ft of office requirements looking within which, coupled with the ongoing lack of Grade A supply and low rents relative to other major regional centres, points to further rental growth going forward. 27.00 25.00 23.00 21.00 19.00 17.00 15.00 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

11 investment market The investment market for good quality regional offices remains buoyant, characterised by high levels of UK and overseas requirements, but constrained by a lack of available stock. Total volumes in 2017 across the top 10 regional markets exceeded 3.3 BN, well ahead of the long-term average, with overseas investors the most active, attracted by the UK s political stability and a relatively cheap pound. These investors are generally chasing modern, well located offices situated in core locations, such as which fits well within this brief. Office investments in totalled 290M for 2017, with overseas investors accounting for 40% of investment turnover. This demand was particularly evident with the sales of One and Two Central Square, which both secured strong interest from a diverse range of investors, including Pension Funds, Opportunity Funds and overseas investors. Domestic and overseas investors are expected to continue to chase good quality regional investment stock over the short to medium term, with a lack of available stock continuing to be the main barrier to high trading volumes. Markets such as, with significant infrastructure improvements, a buoyant private and public sector and a lack of Grade A stock are expected to remain particularly sought-after, with genuine rental growth anticipated. Recent regional office comparables include the following: Date Property Purchaser Area (sq ft) Under Offer Jan 2018 Dec 2017 Dec 2017 Dec 2017 Jul 2017 No.2 Callaghan Square, 1 Cathedral Square, Bristol 5 St Philips Place, Birmingham 55 Colmore Row, Birmingham 2 Capital Quarter, 1 Central Square, Under Offer 46,247 14.25M (Quoting) Price NIY Capital Value (psf) 6.25% (Quoting) WAULT Tenant TBC 4.5 Multi-let BMO 56,059 33.5M 5.00% 598 7.6 Dyson Royal London 80,358 45.5M 4.75% 566 2.5 Secretary of State TH Real Estate 160,000 96.5M 4.89% 603 7.0 Multi-let Tesco s PF 84,759 23.2M 6.40% 274 7.5 Multi-let Aerium 135,333 51.0M 5.50% 378 9.5 Multi-let

12 investment considerations - Opportunity to acquire a prime office investment in the heart of city centre, and within close proximity to Central Station. - Central Enterprise Zone is the only Enterprise Zone in the UK dedicated to growing and attracting the financial and professional service sectors. - Significant infrastructure improvements currently underway will further enhance s domestic and international profile and connectivity. - is Wales capital city and one of the major regional centres in the UK. - Callaghan Square is a high profile development located centrally in s prime office core. It forms an integral part of the Central Business District, alongside with Central Square and Capital Quarter. - No 1 Callaghan Square is regarded as one of the trophy buildings in, comprising 93,670 sq ft of Grade A office accommodation, with an excellent city centre car-parking ratio of 1:880 sq ft. - Let to Eversheds Sutherland (International) LLP for a further 4 years, having been in occupation since 2002. No.1 Callaghan Square is Eversheds second largest UK office. - Current rent of 1,850,000 per annum, equating to 19.75 per sq ft, with prime rents in standing at 25.00 per sq ft and expected to continue to grow, due to exceptional demand/ supply fundamentals. - Exceptional opportunity to acquire a fully occupied Grade A office building in a major regional centre offering opportunities for pro-active asset management and rental growth, as well as the potential for a mid-term lease re-gear.

No1 CALLAGHAN SQUARE CArdiff CF10 5BT Capital Allowances Further information upon request. Further information For further information or to arrange an inspection, please contact the following: VAT The property is elected for VAT. It is anticipated the transaction will be treated as a Transfer of a Going Concern. EPC Available upon request. Proposal We are instructed to seek offers in excess of 26,400,000 (Twenty Six Million Four Hundred Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level would reflect a net initial yield of 6.5% having deducted purchasers costs of 7.72%. Simon Rickards T: +44 20 7861 1158 M: +44 7787 844 384 E: simon.rickards@knightfrank.com Gareth Lloyd T: +44 29 2044 0141 M: +44 7917 50 3751 E: gareth.lloyd@knightfrank.com Rob Jones T: +44 29 2044 0128 M: +44 7836 245 916 E: rob.jones@knightfrank.com Elliot Evans T: +44 29 2044 0952 M: +44 7468 727 941 E: elliot.evans@knightfrank.com 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 OC305934. Knight Frank LLP registered office is 55 Baker Street, London, W1U 8AN, where you may look at a list of members names. March 2018. Knight Frank LLP 55 Baker Street London, W1U 8AN United Kingdom Knight Frank LLP Emperor House Scott Harbour Pierhead Street, CF10 4PH United Kingdom