LAKESIDE 5000 CHEADLE ROYAL BUSINESS PARK MANCHESTER PRIME OFFICE INVESTMENT WITH ANNUAL RENTAL UPLIFTS

LAKESIDE 5000 CHEADLE ROYAL BUSINESS PARK MANCHESTER PRIME OFFICE INVESTMENT WITH ANNUAL RENTAL UPLIFTS

INVESTMENT SUMMARY High quality, well specified business park office investment. Cheadle Royal is the North West s premier Business Park. Striking, highly prominent modern Headquarters building totalling 40,049 sq ft (3,721 sq m). Excellent car parking ratio of 1:225 sq ft. Long leasehold for 215 years from 29 September 1995, at a peppercorn. Let to Balfour Beatty Group Limited with guarantee from Nike Inc. Effective minimum of 4.25 years guaranteed income. Initial rent of 800,161.63 per annum reflecting just 20.14 per sq ft. Annual fixed uplifts of 2.5% per annum. We are instructed to seek offers in the region of 9,750,000 subject to contract. This reflects a net initial yield of 7.69% and a capital value of 243 per sq ft. LAKESIDE 5000 CHEADLE ROYAL BUSINESS PARK MANCHESTER

Oakfield 3 Oakfield 2 Anglian Water Group Wienerberger De Vere Venues Byrom John Lewis Sainsbury s Management Centre Oakfield 1 David Lloyd Racquet & Fitness Centre Lakeside 5000 Premier Inn Brewer s Fayre Petrol Service Station TGI Friday s Regus Kuoni Jarden Corporation Blemain Group Agilent Technologies To Wilmslow & Alderley Edge Wilmslow/Handforth By-Pass - A34 Trinity Pharmaceuticals Kids Allowed To Manchester J3 M60 0.5 mile CHEADLE ROYAL BUSINESS PARK

5 7 30 29 9 28 Leyland M6 27 12 25 8 24 23 22 9 11 10 Chorley M61 6 Wigan Warrington Widnes Runcorn Northwich Blackburn Rawtenstall Halifax Todmorden Darwen 11 20 5 BuryM66 Bolton 2 4 M62 19 3 18 14 7 15 6 Sale 1 17 5 6 3 9 19 Salford CHEADLE ROYAL BUSINESS PARK Rochdale 20 21 22 Oldham M60 MANCHESTER 1 3 Glossop Stockport Knutsford Buxton M6 Macclesfield M62 Manchester Wilmslow CHEADLE Cheadle Royal is the North West s premier out of town business park situated within the prosperous commuter belt of South Manchester. It comprises over 600,000 sq ft of office, leisure and amenity space, in approximately 70 acres of mature parkland, close to the village of Cheadle and fronting the A34. It is within the borough of Stockport, the third most populated borough in Greater Manchester, with approximately 11,000 businesses and more than two million people within a 30 minute drive time. Originally developed by AMEC, Cheadle Royal provides a very attractive working environment and is home to major international occupiers including; Blemain Finance, Wienerberger, Jarden Group, Regus and Freeclaim. It has unparalleled on-site amenities including David Lloyd Leisure, TGI Fridays restaurant, De Vere Venues conference centre, Premier Inn hotel and Kids Allowed children s day nursery and is adjacent to Sainsbury s and John Lewis. 23 ALTRINCHAM ROAD A560 SOUTHMOOR ROAD TO HALE/ ALTRINCHAM 5 MANCHESTER AIRPORT 4 3 5 PRINCESS PARKWAY A5103 NORTHENDEN WYTHENSHAWE SIMONSWAY 2 BROWNLEY ROAD A560 SIMONSWAY RINGWAY ROAD WEST MANCHESTER AIRPORT M60 SHADOWMOSS ROAD B5166 HOLLIN LANE STYAL ROAD B5166 4 DIDSBURY VILLAGE WILMSLOW ROAD B5145 EAST DIDSBURY GATLEY A560 HEALD GREEN 1 3 KINGSWAY A34 CHEADLE A34 KINGSWAY CHEADLE ROYAL BUSINESS PARK M60 TO MANCHESTER CITY CENTRE A560 TO STOCKPORT MANCHESTER AIRPORT EASTERN LINK ROAD 2 TO WILMSLOW/ ALDERLEY EDGE

INWARD INVESTMENT & INFRASTRUCTURE IMPROVEMENTS A5103 M60 5 TO MANCHESTER CITY CENTRE h Metrolink A560 3/1 M60 UHSM MEDIPARK TO STOCKPORT g M67 & EAST Metrolink 4 Simonsway UHSM Medipark Airport City is 3 miles from Cheadle Royal and being created through phased delivery over the next 15 years and upon completion, will provide up to: The Manchester MediPark brings together c.200 acres of developable land, in and around UHSM, next to Airport City. MediPark is a gateway from the Airport to a pool of talent which has few rivals, and comprises a 7 mile long corridor from Manchester s University quarter to UHSM, which hosts the highest concentration of higher education and specialist institutes in Europe. 2 3a Airport City CHEADLE ROYAL BUSINESS PARK 1.4m sq ft logistics & industrial 1m sq ft offices 650,000 sq ft advanced manufacturing Circa 2,400 hotel beds 100,000 sq ft ancillary retail Manchester s Airport City will become an international destination in its own right. The scheme is being developed by its joint venture partners: HS2 This will extend high speed lines to Manchester with two proposed stations at Manchester Airport and Manchester Piccadilly, served by a spur off the main line. 5 HS2 Manchester Airport 6 On completion the fastest journey times to London Euston are anticipated to reduce by 60 minutes, to 1 hour 8 minutes. HEALD GREEN AIRPORT CITY NORTH AIRPORT CITY SOUTH MANCHESTER INTERNATIONAL AIRPORT A34 f TO M6/M62 BIRMINGHAM & SOUTH Styal Road STOCKPORT WYTHENSHAWE CHEADLE ROYAL BUSINESS PARK Metrolink (Manchester Airport Line) Construction of the A6 to Manchester Airport Relief Road Scheme is underway and expected to complete by Q3 2017. The route is planned to provide 10 kilometres of new 2-lane dual carriageway on an east-west route from the A6 near Hazel Grove (south east Stockport), via the 4 kilometres of existing A555 to Manchester Airport and the. The Airport Line opened in November 2014. The nine mile extension to the existing system has 15 stops and runs from St Werburgh s Road in Chorlton, via Sale to Manchester Airport. The scheme will provide much-needed connectivity for key strategic routes into the North West and to Manchester Airport, including traffic from the A6, A523 and A34 all of which are key routes for business, leisure travel and freight from Cheshire, Derbyshire, Staffordshire, and beyond. A560 M60 Manchester Airport Link Road A6 HAZEL GROVE A5102 HEALD GREEN Key benefits of the scheme will include: A34 MANCHESTER AIRPORT A555 POYNTON HANDFORTH DEAN EXISTING ROAD PROPOSED LINK ROAD WOODFORD Economic growth generating additional economic output for the region of up to 2.5 billion and contributing towards the creation of up to 5,000 new jobs; Improved access to Manchester Airport and other key destinations, particularly for Cheadle Royal Reduced congestion; Shorter journey times; Increased investment encouraged in South Manchester. LAKESIDE 5000 CHEADLE ROYAL BUSINESS PARK MANCHESTER

DESCRIPTION Lakeside 5000 is prominently situated facing the entrance to the Park. Comprising a modern striking, three storey self contained, highly specified office building, the property is of steel framed and cavity brick construction with pre-cast concrete floors. Elevations of buff masonry and feature blue curtain walling, along with a curved modern clad entrance complement a distinctive winged roof, to provide a striking Headquarters building. The building was designed to enable future sub-division if required. SPECIFICATION Lakeside 5000 has a rectangular floor plate and central core, providing Grade A Offices. Triple height, glazed atrium reception area. Suspended ceilings incorporating recessed low energy lighting to 400 Lux. Heating and cooling via four pipe fan-coil comfort cooling. Double glazed, aluminium framed windows. Gas fired heating. Two x 10 person (800 kg) passenger lifts. Male, Female and Disabled WC s on each floor. Large rectangular floor plates over 12,000 sq ft designed for excellent efficiency and flexibility for future sub-division/multiple occupancy if ever required. 178 car parking spaces providing for an excellent out-of-town office parking ratio of 1:208 sq ft. Around a third of these are within undercroft parking, with direct lift access into the offices. Hermetically sealed double glazed windows. Fully accessible raised floor with 600mm x 600mm panels. Kitchen points provided on each floor. Granite surfaces in washrooms. The site area extends to approximately 0.6 hectares (1.47 acres). Planning permission for D1 medical use on the ground and first floors was previously obtained in February 2009, which provides additional, future flexibility of uses for the building. ACCOMMODATION TYPICAL FLOORPLAN Floor Size sq ft Size sq m Ground Floor 13,621 1,265 First Floor 13,214 1,228 Second Floor 13,214 1,228 Total 40,049 3,721 Floor areas have been measured in accordance with IPMS3. The property has previously been measured on a NIA basis by an independent source. LAKESIDE 5000 CHEADLE ROYAL BUSINESS PARK MANCHESTER

TENURE Long leasehold from Muse Developments Plc (formerly AMEC Developments Plc) for 215 years less 3 days, from and including 29 September 1995 at a peppercorn rent. Muse has a 215 year long leasehold interest from the same date at a peppercorn, from Cheadle Royal Hospital. MANAGEMENT COMPANY To ensure the highest estate management standards are retained, Cheadle Royal Management Company was established and is currently controlled by Muse. The management company has responsibility for managing, cleaning, repair, upkeep and security of all common areas within the Estate, via a dedicated 24 hour on-site management centre. Maintenance costs are passed onto the individual tenants and investors, via a service charge provision. This estates charge is currently running at 0.63 per sq ft. TENANCY The property is occupied by Balfour Beatty Group Limited under a full repairing and insuring lease for a term of ten years from 1st June 2009, at a current rent of 800,161.63 per annum, reflecting 20.14 per sq ft. Nike Inc is the guarantor to the lease under an AGA following the assignment by Umbro Limited (formerly a Nike subsidiary) to Balfour Beatty in 2013. The lease benefits from annual fixed rental indexation increases of 2.5% per annum throughout the term, the next being on the 1st June. Balfour Beatty have the right to extend the lease for a further 5 years from expiry of the current lease, subject to not less than 9 months prior written notice. This extension would also be subject to annual fixed rental indexation increases of 2.5% per annum. In the event this is not taken up, the tenant must pay an additional one year s rent, which will then equate to 861,685.48. An investor will therefore receive the equivalent of a minimum of 4.25 years income.

COVENANT INFORMATION Balfour Beatty Group Limited is the principal UK operating subsidiary of Balfour Beatty plc and is a multinational infrastructure group with capabilities in construction services, support services and infrastructure investments, with over 100 years of experience in delivering highly complex infrastructure projects. A constituent of the FTSE 250 Index, Balfour Beatty works for customers principally in the UK and the US, with developing businesses in Australia, Canada, the Middle East and South East Asia. Balfour Beatty is the largest construction contractor in the UK, and employs 36,000 people in 80 countries Balfour Beatty Group Limited turned over 3.1Bn in 2014 and currently has Net Current Assets of 24M. Balfour Beatty plc generated a revenue of 8.24Bn for the year ended December 2015 with Net Current Assets of 830M. 2014 saw Balfour Beatty Group Limited s performance adversely impacted by significant issues in Engineering Services and in the regional businesses in London and the South West. The Scottish, North and Midlands regions, however, performed well. Consequently, in 2015, The Group launched the Build to Last transformation programme designed to deliver superior returns for all stakeholders. In its initial year, Build to Last has begun to deliver measurable improvements: costs are coming down and cash flow has improved substantially, such that the Board expects to reinstate the dividend at the interim results in August 2016. Furthermore, more favourable markets in 2015 saw a strong cash performance for the plc with 163M Net Cash, in addition to revenues and the order book stabilising. The underlying pre-tax losses of 2014 reflected historic projects now being managed through to completion, with more selective project bidding in place under the Build to Last program. In December 2015, the Group agreed a new 400M syndicated revolving credit facility extending through to 2020. Nike Inc is an American multinational corporation that is engaged in the design, development, manufacturing and worldwide marketing and sales of footwear, apparel, equipment, accessories and services. The company is headquartered near Beaverton, Oregon, US, and is one of the world s largest suppliers of athletic shoes and apparel and a major manufacturer of sports equipment. Nike Inc employs more than 44,000 people worldwide, and in 2015, was the world s most valuable sports brand, and 18th most valuable brand in the world. (Forbes) For the year ending December 2015, Nike Inc recorded a revenue of $30.6Bn. (Dollars in millions) FYE 31.05.2015 FYE 31.05.2014 FYE 31.05.2013 Revenues 30,601 27,799 25,313 Net Income 3,273 2,693 2,451 Market Capitalisation 87,044 66,921 55,124

LAKESIDE 5000 CHEADLE ROYAL BUSINESS PARK MANCHESTER

SOUTH MANCHESTER OFFICE MARKET South Manchester is the largest out of town office market in Greater Manchester, and one of the largest in the UK regions. Manchester has cemented its position in recent years as the UK s leading office destination outside London, with levels of office take-up consistently exceeding the other Big 6 regional cities. There has been a resurgence of large occupiers to the market during the past 18 months. Large occupational requirements are set to continue over the next 4 to 5 years with over 1.2 million sq ft of known Grade A lease events above 10,000 sq ft set to occur. Prime rents in Manchester are currently 34.00 per sq ft and forecast to grow to 39.00 per sq ft by 2019, demonstrating the strongest rental growth relative to the other UK Big Regional 6 during the next 5 years. Indeed, annualised rental growth in Manchester is 3% per annum since the late 1990s. Prime rents in South Manchester have remained stable over recent years, with headline rents of 18.50 to 22.50 per sq ft. During this time, Cheadle Royal has firmly established itself as the premier out of town park in the North West. A number of large lettings took place in South Manchester in 2015 pushing prime rents to 22.50 per sq ft. Property Size (Sq Ft) Tenant Rent (Per Sq Ft) Date 2015 take-up for South Manchester totalled 553,554 sq ft (51,425 sq m) with 169 transactions in total, which is in line with the 5 year average of 572,690 sq ft (53,203 sq m). Furthermore, there are a number of high profile occupier requirements currently circling the South Manchester market which will put further upward pressure on rents. Company Size (Sq Ft) The Hut Group 50,000 Intertek 45,000 Information Commissioner s Office (ICO) 35 40,000 New College Manchester 25,000 Advance Computer Systems 25 35,000 Convergys 15 20,000 AJ Bell 50 70,000 The supply of high quality business park accommodation within South Manchester remains constrained. If available to let, Lakeside 5000 would be one of only a handful of buildings able to accommodate a requirement in excess of 35,000 sq ft, along with: The Pavillion Towers, Didsbury 1,163 Hitchner & Wakeford 22.50 December 2015 Building One Dovecote, Sale Size 61,000 sq ft Venus Trafford Way, Old Trafford 5,148 Club La Costa 21.50 December 2015 Altitude, Atlas Business Park Lakeside 3400, Cheadle Royal 45,000 sq ft 38,000 sq ft Crescent House Towers, Didsbury 32,230 Syngenta 22.00 September 2015 Other Key Competition: Spectrum House Towers, Didsbury Ocean House Towers, Didsbury St Peters Square Stockport Scotscroft Towers, Didsbury 8,088 Cisco 21.50 August 2015 11,717 Mason & Vaughan Group 21.50 June 2015 17,918 Sky 18.50 May 2015 23,883 John Lewis 20.50 Sept 2014 Destination Total size of office scheme currently developed Current availability Quoting Rent Media City 800,000 sq ft 12% 24.00 per sq ft First Street 180,000 sq ft Fully-let 26.00 per sq ft Airport City Pre-let only 24.50 per sq ft Towers 290,000 sq ft 5% 22.50 per sq ft There has been virtually no development activity since 2008, and this restricted supply of modern space relative to demand is narrowing incentives, elongating lease terms and providing upward pressure on rents. The outlook for Cheadle Royal is very positive. LAKESIDE 5000 CHEADLE ROYAL BUSINESS PARK MANCHESTER

CAPITAL ALLOWANCES Any unclaimed allowances can be made available for the benefit of the purchaser via separate negotiation. Interested parties should make their own investigations in this regard. VAT The property has been elected for VAT. It is anticipated that the sale of the property will be treated as a Transfer of a Going Concern (TOGC). EPC E 114. Certificate available upon request. PRICING We are instructed to seek offers in the region of 9,750,000 subject to contract. This reflects a net initial yield of 7.69% and a capital value of 243 per sq ft. Year Rent ( s) Guaranteed Running Yield 2016 820,164.64 7.88% 2017 840,668.76 8.08% 2018 861,685.48 8.28%

LAKESIDE 5000 CHEADLE ROYAL BUSINESS PARK MANCHESTER PRIME OFFICE INVESTMENT WITH ANNUAL RENTAL UPLIFTS FURTHER INFORMATION Craig Barton Simon Marshall DDI: 0161 455 3712 DDI: 0161 235 7641 craig.barton@cushwake.com simon.marshall@cushwake.com PROPERTY MISDESCRIPTIONS Cushman & Wakefield for themselves and for the vendors or lessor of this property for whom they act, give notice that: i) these particulars are a general outline only, for the guidance of prospective purchasers or tenants, and do not constitute the whole or any part of an offer or contract; ii) Cushman & Wakefield cannot guarantee the accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein and prospective purchasers or tenants must not rely on them as statements of fact or representations and must satisfy themselves as to their accuracy; iii) rents quoted in these particulars maybe subject to VAT in addition; iv) Cushman & Wakefield will not be liable, in negligence or otherwise, for any loss arising from the use of these particulars; and v) the reference to any plant, machinery, equipment, services, fixtures or fittings at the property shall not constitute a representation (unless otherwise stated) as to it s state or condition or that it is capable of fulfilling its intended function. Prospective purchasers/tenants should satisfy themselves as to the fitness of such items for their requirements. vi) no employee of Cushman & Wakefield (and its subsidiaries where applicable) has any authority to make or give any representation or warranty or enter into any contract whatever in relation to the property. Cushman & Wakefield 1 Marsden Street Manchester M2 1HW DATE OF PARTICULARS: April 2016. Designed & Produced by Creativeworld. Tel 01282 858200