St Paul s Chambers, Sheffield PRIME CITY CENTRE MIXED USE INVESTMENT OPPORTUNITY FOR SALE

St Paul s Chambers, Sheffield PRIME CITY CENTRE MIXED USE INVESTMENT OPPORTUNITY FOR SALE

Investment Summary St Paul s Chambers is very well situated in the prime location of the city, forming part of the Heart of the City. Occupiers at St Paul s include; DLA Piper, Barclays Corporate Banking, PwC and the Government Department for Business Innovation & Skills. The leisure occupiers include; Café Rouge, Caffè Nero, Piccolino, Pizza Express, Genting Casino, Cosmo and Smoke BBQ. The property is a high quality, leisure and retail development, arranged over ground floor and basement, which was fully redeveloped in early 2000 s, comprising 4 self contained units measuring 9,132 sq ft, also benefiting from the ground rent income from the residential apartments above. The subject interest is held by way of a long leasehold interest expiring 2251 at a peppercorn rent to Sheffield City Council. A total income of 199,600 per annum and a Weighted Average Unexpired Lease Term (WAULT) of 13.1 years. The income is underpinned by Mitchells and Butlers Retail (No 2) Limited, with 87% of the WAULT and 57% of the passing rental. Offers are sought above 3,000,000 (three million pounds), subject to contract and exclusive of VAT. A purchase at this level represents a Net Initial Yield of 6.25%, after allowing for purchaser s costs of 6.45%.

Location Sheffield is England s fourth largest city and the commercial, administrative and retail centre of South Yorkshire, with an urban area population of approximately 640,000. The city is located 150 miles (240 km) north of London, 33 miles (53 km) south of Leeds and 38 miles (61 km) east of Manchester and benefits from its central location within the UK. The city enjoys excellent access to the national motorway network, with Junctions 31 to 34 of the M1 on the eastern fringe of the city, approximately 4 miles (6.5 km) from the city centre. The M1 provides direct access to the north (Leeds, Barnsley and Wakefield) and south (Nottingham, Milton Keynes and London). In addition, the M18, accessed at Junction 32 of the M1 provides direct access to the Humberside Ports. The A57 and M67 provide access to Manchester, approximately 38 miles (61 km) to the west. Sheffield Mainline Station provides direct services to the following UK cities with approximate fastest journey times as below: London (St Pancras) Birmingham Manchester Nottingham Leeds 127 minutes 65 minutes 50 minutes 45 minutes 40 minutes Manchester, East Midlands, Leeds-Bradford International and Doncaster Robin Hood Airports are located 47 miles (75 km), 53 miles (85 km), 45 miles (72 km) and 27 miles (44 km) respectively and are all within 1 hours drive of the city. All provide a range of national, European and international services.

St Paul s Chambers is very well situated in a prime location, forming part of the Heart of the City, which is the busiest part of Sheffield city centre. Situation The Heart of the City includes extensive public realm, including Sheffield Peace Gardens and the Winter Gardens which adjoin the Millennium Galleries. The surrounding buildings include a Mercure Hotel, Sheffield s tallest residential tower incorporating 300 apartments, a large Q-Park car park, two existing prime office buildings and a final third building currently under construction. The existing buildings at St Paul s Place include over 125,000 sq ft of prime office accommodation and include occupiers such as; DLA Piper, Barclays Corporate Banking, PwC and the Government Department for Business Innovation & Skills. The leisure occupiers include; Café Rouge, Caffè Nero, Piccolino and Pizza Express, amongst others. The final phase of this development is now due for completion December 2015 and will comprise a 95,000 sq ft building with ground floor retail, leisure and offices above. St Paul s Chambers is also adjacent to the proposed new development of Sheffield s Retail Quarter (SRQ), which is currently in the development consultation stage, with Phase 1 planned for completion by 2019.

THE M O OR Situation 1 Piccolino 2 Caffè Nero 3 Café Rouge 4 Bills 5 Genting Casino 6 Smoke BBQ 7 Cosmo 8 Pizza Express 9 Mercure Hotel 10 Costa Coffee 11 3 St Paul s Place new 95,000 sq ft development DEBENHAMS St Paul s Chambers 11 10 5 6 JOHN LEWIS 4 NE PEACE GARDENS TO 2 1 N NS 3 8 IO EE PI 7 DI S VI R ST CITY HALL ST RE ET 9 TOWN HALL WINTER GARDEN LEOPOLD SQUARE SURREY STREET NO CRUCIBLE THEATRE RF OL K ST GAT RE LYCEUM FAR ET E LE OP OL D ST ORCHARD SQUARE SHOPPING CENTRE RE ET T

Description St Paul s Chambers are set within an extremely attractive, historic building constructed of terracotta red brick, believed to date back to the late 1800 s. It was substantially re-modelled in the early 2000 s, to provide a series of retail and leisure units on the lower parts with residential above. The ground floor and basement is offered for sale along with the ground rent income from the residential on the upper floors.

Tenancies Property Tenant Area Sq Ft Area ITZA Current Rent per Annum Rent per Sq Ft Lease Start Lease End Secure Term (yrs) Upwards Only Rent Reviews 8-12 St Paul s Parade Mitchells and Butlers Retail (No 2) Limited 7,276 n/a 113,500 15.60 25/12/2001 24/12/2036 20.1 25/12/2021* 25/12/2026* 25/12/2031* 2 St Paul s Parade Coral Racing Limited 958 515 39,500 41.23 21/11/2012 20/11/2022 6.0 21/11/2017 4 St Paul s Parade Premiere Employment Limited 433 367 36,000 83.14 05/07/2002 04/07/2017 0.6 n/a 8 St Paul s Parade Clare Louise Morton 465 n/a 10,000 21.50 28/09/2012 27/09/2018 1.8 n/a Upper Floors Residential SPCMC Limited n/a n/a 600 n/a 25/03/2001 23/03/2126 109.4 n/a TOTALS 9,132 199,600 WAULT 13.1 yrs * Upwards only rent review, linked to RPI compounded annually, with a collar and cap at 1% and 4%. Income Analysis Mitchells & Butlers Retail (No 2) Ltd (Reg no 03959664) This is the main operating company of M&B, whose latest accounts show a Turnover of 256.4m and a Net Worth of 147.4m. They have a Dun & Bradstreet credit rating of 5A1 and are deemed as very low risk. The property is trading as a Browns Brasserie & Bar. Coral Racing Limited (Reg no. 541600) Trading as Coral, the tenant is one of the UK s largest licensed betting offices. For the year ending September 2015, Coral Racing Limited reported a Turnover of 667m, a Pre-Tax Profit of 81.1m and a Net Worth of 264.1m. The tenant has a Dun & Bradstreet rating of 5A1. The following chart reflects the weighted rental income for each tenant: 0% 3% 1% 87% 9% Mitchells & Butlers Retail (No 2) Limited Coral Racing Limited Premiere Employment Limited Clare Louise Morton SPCMC Limited

St Paul s Chambers, Sheffield PRIME CITY CENTRE MIXED USE INVESTMENT OPPORTUNITY FOR SALE Tenure The property is held long leasehold on a ground lease to Sheffield City Council at a peppercorn rent, expiring 28/02/2251. VAT The property has been elected for VAT. The sale will be treated as a Transfer of a Going Concern (TOGC). Data Room A data room containing all legal and property related information is available on request from CPP. Proposal Offers are invited above 3,000,000 (three million pounds), subject to contract and exclusive of VAT. A purchase at this level represents a Net Initial Yield of 6.25% after allowing for purchaser s costs of 6.45%. Contact Rob Darrington MRICS: Partner DDI: +44 (0) 114 270 9163 E: rob@cppartners.co.uk Roger Haworth MRICS: Partner DDI: +44 (0) 114 270 9162 E: roger@cppartners.co.uk An Argus valuation CVL file or Excel spreadsheet containing a detailed tenancy schedule can be obtained from CPP on request. EPC EPC s are available upon request. MISREPRESENTATION ACT These particulars do not constitute part of an offer or contract. All descriptions, dimensions, reference to condition and necessary permission for use and occupation and other details contained herein are for general guidance only and prospective purchasers or tenants should not rely on them as statements or representations of fact and must satisfy themselves as to their accuracy. Neither Commercial Property Partners, nor its employees or representatives have any authority to make or give any representation or warranty or enter into any contract in relation to the property. Rents quoted in these particulars may be subject to VAT in addition. The reference to any mechanical or electrical equipment or other facilities at the property shall not constitute a representation (unless otherwise stated) as to its state or condition or that it is capable of fulfilling its intended function and prospective tenants/purchasers should satisfy themselves as to the fitness of such equipment for their requirements. Prices/rents quoted in these particulars may be subject to VAT in addition. a) These particulars were prepared from preliminary plans and specifications before the completion of the properties and are intended only as a guide. They may have been changed during construction and final finishes could vary. Prospective purchasers should not rely on this information but must get their solicitor to check the plans and specifications attached to their contract. b) We have not made any investigations into the existence or otherwise of any issues concerning pollution of land, air or water contamination and the purchaser is responsible for making his own enquiries in this regard. Designed and produced by www.thedesignexchange.co.uk Tel: 01943 604500. December 2016.