The Archibald Simpson, 5 Castle Street, Aberdeen. Prime Leisure Investment

The Archibald Simpson, 5 Castle Street, Aberdeen Prime Leisure Investment

The Archibald Simpson, 5 Castle Street, Aberdeen Investment Summary Aberdeen is the third largest city in Scotland and is the oil capital of Europe. The city has an affluent population with low spend leakage from its primary catchment population of 511,000 people (PROMIS). Aberdeen is ranked 13th out of top UK retailing centres in terms of catchment spend per capita. Located at the northern end of Union Street, Aberdeen s main retail and leisure thoroughfare. The property is let to JD Wetherspoon on FRI terms until 30th March 2034, with a tenant only break option on 31st March 2029. Net income of 157,404 per annum, with a rent review on 31st March 2019. Absolute Ownership interest (Scottish equivalent of English freehold). Offers in excess of 2,580,000 (Two Million, Five Hundred and Eighty Thousand Pounds Sterling) subject to contract and exclusive of VAT are sought for the Absolute Ownership in the property. A purchase at this price will reflect a net initial yield of 5.75% after allowing for purchaser s costs of 5.92% based on Scotland s Land and Buildings Transaction Tax (LBTT).

Aberdeen Leisure in Aberdeen Aberdeen is Scotland s third largest city, with a population of approximately 200,000 and a catchment in excess of 500,000. The city has benefitted from its status as Europe s Oil and Gas capital, and has enjoyed strong economic performance, even throughout the global downturn. It has the UK s second highest employment rate, which stands at 77.9%, and contributes an estimated GDP of 11.4 billion to the Scottish economy. Across 2004-2013 Aberdeen saw the highest growth in businesses in the UK, cementing its position as a city to watch. The strong performance is shared across the residential population who have the highest weekly earnings in the UK outside of London. Aberdeen is committed to attracting investment, and a range of initiatives are in place to help reach this goal. The airport has recently invested in a runway extension and a 5 million A87 parking deck, while the Harbour Board continues to invest in the development of the port, with nearly 200 million invested in recent decades. Meanwhile the new Aberdeen Western Peripheral Route, which will ease traffic flow in and around the City and Shire, is scheduled for completion in 2018. A888 A865 A867 A859 A859 A858 A863 A850 A855 A866 A851 A896 A832 A890 A87 The energy sector has generated an affluent population with Aberdeen ranked 13th out of top UK retailing centres in terms for catchment spend per capita (PROMIS). The spend potential is also forecast to increase between 2014 and 2019 above the UK retailing centre average. A890 The city boasts a relatively high proportion of young adults aged 15-9 24. This is in part due to a high student population (approximately A832 A835 A837 A831 A834 A836 A839 A832 A897 28,300 people) across Aberdeen s two universities and further education college. There is also a large representation of adults aged 25-44. A838 49 A835 Tourists are of growing importance to Aberdeen with 1.62 million visitors per year (Scotland Visitor Survey), and generates 359 million 8 of spend per year in the City and Shire. Aberdeen also attracts the 8 6 transient spending of those working in the offshore oil industry. 5 A832 A887 A833 39 38 40 39 41 3 39 41 7 7 6 20 5 7 80 44 47 3 20 81 48 52 50 75 0 Aberdeen 6 0 0 Aberdeen is the major leisure and retail hub for the North East of Scotland. The Food and Beverage sector is currently at the forefront of occupier market activity, with Aberdeen being one of the go to locations for operators. Union Street has evolved, outwith the prime retailing pitch, as a restaurant and bar location, with the Jamie s Italian, Jamie Oliver s restaurant chain, located in close proximity. The national restaurant and public house market operators are continuing to expand with city and town centres locations being primarily targeted. There is a plethora of operators that are expanding at present including Mitchells & Butlers, Greene King, Spirit Group, Marstons, Stonegate and Living Ventures, who are also being joined by emerging Scottish brands such as Brew Dog and Bar Soba. The new wave of entrants to the Scottish leisure market has seen rents in the prime location of Union Square sit at 35-40 per sq. ft. and the new development on Marischal Square is achieving rents of up to 30 per sq. ft. A830 The city has also become a leading focal point for renewable energy with global acknowledgement of its energy knowledge base and supply chain skills particularly in the fields of offshore/ marine renewables, hydrogen and biomass. As well as other industry sectors such as tourism, this will help the city sustain its strong economic A85 performance going forward. A848 A849 A884 8 A861 A86 A889 S C O T L A N D 7 A85 A85 A85 Perth 2 24 3 3 4 23 26 28 2 4 0 Dundee 32 2 33 0 34 37 57 2 Demographics A816 A83 A886 A819 A815 A814 A81 1 A873 A811 A84 1 Stirling M9 M80 3 07 Dunfermline 85 M90 11 2 1 16 Glenrothes Kirkcaldy 15 17 A198 The city has an affluent population with low spend leakage from its primary catchment population of 511,000 people (PROMIS) due to a lack of competing centres nearby. A847 A846 A886 A815 A78 Greenock A8 M8 Clydebank Paisley A737 Irvine A736 A809 M77 Kilmarnock A71 Glasgow Motherwell A725 Hamilton Wishaw East Kilbride A71 Falkirk M80 Cumbernauld Airdrie Coatbridge A72 A721 M8 A71 A70 M9 0 Livingstone A702 A721 A72 A701 EDINBURGH A1 A720 A703 A7 A1 A6089 A6105 A697 A6112 A1107 A1 A698 Berwick-upon-Tweed A1 A78 A77 A83 A70 M74 A68 A699 A841 A719 Ayr A70 A76 A702 M74 A701 A708 A698 A68

The Archibald Simpson, 5 Castle Street, Aberdeen Situation The property is situated at the junction of King Street, an arterial route into the city from the North, and Union Street, Aberdeen s prime retail and leisure Street. In close proximity to the subjects is Marischal College, the Council offices, Aberdeen Sheriff Court and a new mixed-use development at Marischal Square, which is currently under construction. The development will include 26,600 sq ft of retail and restaurant space, 173,500 sq ft of Grade A offices, a high quality public realm space and a 4 star Residence Inn by Marriott. This will add substantially to the appeal of this area. The Archibald Simpson is within walking distance of Aberdeen s largest shopping centres, the Bon Accord St Nicholas and Union Square. The Vue cinema and Grosvenor casino are also nearby. The location is well connected in terms of road and rail links, offering a range of transport options across and outwith the city. HOTEL, OFFICE & RESTAURANT DEVELOPMENT SITE

Description Accommodation & Tenancy The subjects comprise an impressive, Category A listed former bank building. The property features a prominent entrance, and is arranged over basement, ground and two upper floors. The ground floor provides the main bar and dining area, with customer lavatory facilities and a staff room on the first floor. The basement provides storage and kitchen facilities. The second floor is outwith the ownership and is currently used as offices. Tenancy The property is let to JD Wetherspoon PLC on a Full Repairing and Insuring (FRI) lease for 35 years expiring on 30 March 2034. There is a tenant only break option on 31 March 2029. The current rent is 157,404 per annum, with the next rent review due on 31 March 2019. The subjects have been measured on a gross internal area (GIA) basis in accordance with the RICS Code of Measuring Practice (6th Edition) and approximate areas are as follows: Floor sq m sq ft Ground floor 452.94 4,875 Basement 295.08 3,176 First floor 143.22 1,542 Total 891.24 9,593

The Archibald Simpson, 5 Castle Street, Aberdeen Tenant Covenant J D Wetherspoon is a leading national public house operator with over 1,000 pubs across the UK and Ireland. The company was founded in 1979 and is well known for its low prices, long opening hours and no music policy. J D Wetherspoon are rated by Experian as very low risk. For the financial year to 27th July 2014, the company had a turnover of 1,409,333,000, a pre-tax profit of 78,365,000 and a net worth of 200,330,000. This covenant provides good security of income. Financial Year Ended Turnover Pre-tax Profit Net Worth 29 July 2012 1,197,129,000 58,882,000 152,708,000 28 July 2013 1,280,929,000 57,143,000 194,749,000 27 July 2014 1,409,333,000 78,365,000 200,330,000

Tenure Absolute Ownership NJ9406SW (Scottish NJ9406SE equivalent NJ9406NW of English NJ9406NE Freehold). EPC LAND REGISTER OF SCOTLAND N Officerʼs ID / Date 3268 10/4/2001 ORDNANCE SURVEY NATIONAL GRID REFERENCE The Energy performance rating for the property is G with CO2 emissions of 183. A full Energy Performance Certificate (EPC) can be provided on request. VAT TITLE NUMBER ABN5817 Survey Scale The property has been elected for VAT and therefore VAT will be elected on the purchase price. However 1/1250 it is anticipated that the sale will be treated as a Transfer Of a Going Concern (TOGC). CROWN COPYRIGHT C - Produced from REGISTERS DIRECT on 28/01/2010 at 14:10 with the authority of Ordnance Survey pursuant to section 47 of the Copyright, Designs and Patents Act 1988. Unless that act provides a relevant exception to copyright, the copy must not be copied without the prior permission of the copyright owner. This copy has no evidential status. 70m

Proposal We are instructed to seek offers in excess of 2,580,000 (Two Million, Five Hundred and Eighty Thousand Pounds Sterling) subject to contract and exclusive of VAT for the Absolute Ownership in the property. A purchase at this price, after allowing for purchaser s costs of 5.92% based on LBTT, will reflect a net initial yield of 5.75%. For further information please contact: Sarah Stewart T: +44 (0)131 226 8736 E: sarah.stewart@eur.cushwake.com Stephen Bibby T: +44 (0)131 226 8738 E: stephen.bibby@eur.cushwake.com Stuart Moncur T: +44 (0) 131 226 8754 E: stuart.moncur@eur.cushwake.com Cushman & Wakefield LLP The Auction House 63A George Street Edinburgh EH2 2JG MISREPRESENTATION ACT Cushman and Wakefield LLP for themselves and for the vendors or lessors of this property whose agents they are give notice that: (1) the particulars are set out as a general outline only for the guidance of intending purchasers or lessees, and do not constitute, nor constitute part of, an offer or contract; (2) all descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are given in good faith and are believed to be correct, but any intending purchasers or tenants should not rely on them as statements or representations of fact but satisfy themselves by inspection or otherwise as to the correctness of each of them; (3) no person in the employment of Cushman and Wakefield LLP has any authority to make or give representation or warranty whatever in relation to this property. July 2015.