FOR SALE PRIME RETAIL LEISURE AND OFFICE INVESTMENT

FOR SALE PRIME RETAIL LEISURE AND OFFICE INVESTMENT 1 0 6 / 1 1 2 B U C H A N A N S T, 4 0 R O Y A L E X C H A N G E S Q & 7 R O Y A L B A N K P L A C E G L A S G O W G 1 3 A A

02 Glasgow is Scotland s largest city and is widely acknowledged as being the UK s best retail centre outside London. The property occupies an entire block in 100% prime position on the pedestrianised section of Buchanan Street, which is Glasgow s premier shopping thoroughfare. The property is situated between St Vincent Place and Gordon Street close to Princes Square shopping centre and down from Buchanan Galleries. Shopper footfall on Buchanan Street is estimated to exceed 1 million people per week. The property comprises a magnificent new flagship restaurant occupied by The Ivy and further units let to Edinburgh Woollen Mill and Thomas Pink with offices let to Nationwide Building Society. Future opportunities to refurbish and improve the offices, and to incorporate the 2 car garage as sales space into the Thomas Pink unit at ground floor level. Current rental income of 874,705 per annum of which 80% is for leisure and retail uses and 20% is for office/mast use. Total ERV of 1,270,688 per annum (86% - 14% split). Offers in excess of 20,500,000 (Twenty Million Five Hundred Thousand Pounds) are sought for the Heritable interest in the property. A purchase at this level will reflect a net initial yield of 4.03%, rising to 5.85%. The net equivalent yield is 5.48% after allowing for purchaser s costs and LBTT.

03 Glasgow is one of the strongest shopping locations outside London and is widely recognised as a European leading fashion destination. The city centre provides a huge variety of retail offer from high street multiples, to boutiques, to international flagship stores and is frequently first on the representation list for occupiers outside London. City Centre retail floor space is estimated at 3 million sq ft with Buchanan Street at the centre of this. The city ranks No1 on the PMA Retail Provision score out of the UK s top 200 retail centres; is within the top three and often the top of many other city centre rankings. Glasgow has an extensive retail catchment. The immediate catchment is densely populated. However, due to the extent of the retail offer the catchment also has a very long reach throughout the west coast and rest of the country. This is further added to by the growing number of tourists and visitors to the city. There are 2.24m people within 45 minutes drive of the city and the prime thoroughfare of Buchanan Street attracts an estimated 1 million shoppers weekly*. Glasgow has a high comparison spend of 2.56 billion ranking it second in the UK behind London West End*. (*Source CACI) The city provides a concentrated effective mix of pedestrianised and covered retailing. The famous z shaped shopping core which takes in Sauchiehall Street, Buchanan Street and Argyle Street provides the spine and prime pitch. At either end of Buchanan Street is Buchanan Galleries and St Enoch Shopping Centre, with the more boutique Princes Square shopping and leisure destination centered on Buchanan Street, all of which provide over 1.7 million sq ft. The retail offer on Buchanan Street has been expanded with the development of the 115,000 sq ft Buchanan Quarter by Land Securities a high street development providing 11 retail stores, cafés & restaurants. It opened in March 2013 and is fully let demonstrating the inherent strength of tenant demand for Buchanan Street. The 62,000 sq ft flagship store was taken by H & M, other tenants in the development include Vans, Gap, Fat Face and Office. Top brands represented on Buchanan Street include Hugo Boss, Apple, Zara, Levi s, Urban Outfitters, Jack Wills, Nike and All Saints. At the south end of the street is a flagship House of Fraser store and the St Enoch centre providing tenants such as Hamleys (first store outside London), Debenhams, H&M and Superdry. At the north end of the street lies Buchanan Galleries anchored by John Lewis and including Hollister and Next. 106/112 Buchanan Street is centrally placed on the spine of the city s retail core securing its long-term position as a prime pitch in one of the UK s most important retailing centres.

04 Like many of the streets in the centre of Glasgow, Buchanan Street was named after a famous merchant who had made his fortune thanks to Glasgow s reputation as the Second City of the Empire. Opened in 1780, Buchanan Street took its name from Andrew Buchanan, one of the city s most successful tobacco merchants. He was the head of two great Virginia tobacco houses, Buchanan, Hastie & Co and Andrew Buchanan & Co. Andrew Buchanan envisioned that Glasgow would spread westward. With this in mind, on the 15th of February, 1763, he acquired the first portion of five acres or thereby of ground in the Burgh of Glasgow, in the part called Palezeon s Croft, on the North side of Argyle Street, with plots or steadings for building on each side thereof. His plan was to take down his own mansion which was situated on Argyle Street opposite the entrance to St. Enoch Square and thereby enable access to the new street. Unfortunately, the American War of Independence (1775-1783) intervened and Andrew Buchanan lost his tobacco fortune. His business was wound up and his development plan ended up in the hands of some Glasgow bankers. Yet, in spite of this setback, his vision soon became reality and lots on the street bearing his name were progressively occupied. The first part of Buchanan Street from Argyle Street to Gordon Street was opened in 1780 and the remaining section in 1804. Initially, the street was occupied by a mixture of merchants villas, smallholdings and some workshops but as the century progressed some very handsome buildings were erected, the first of significance being St George s Church, now known as St. George s Tron Church, designed by William Stark and completed in 1808. Further fine buildings were added, including the Glasgow Stock Exchange in 1875-77, designed by John Burnet. The street acquired a reputation for elegance and specialty shopping which continues to this day.

05 The subjects lie on the east side of Buchanan St between St Vincent Place to the north and Royal Bank Place to the south. Nearby retailers include All Saints, The White Company, Hobbs, Lush, Vodafone, LK Bennett and Jack Wills. Nearby restaurants include TGI Fridays, Zizzi s, Rogano and Miller & Carter. BUCHANAN GALLERIES QUEEN STREET APPLE STORE 106 / 112 BUCHANAN ST, 40 ROYAL EXCHANGE SQ & 7 ROYAL BANK PLACE URBAN OUTFITTERS ST VINCENT STREET MASSIMO DUTTI BUCHANAN STREET TED BAKER PRINCES SQUARE GLASGOW CENTRAL HUGO BOSS HOUSE OF FRASER

1 0 6 / 1 1 2 B U C H A N A N S T, 4 0 R O YA L EXC H A N G E S Q & 7 RO YA L B A N K P LAC E This B Listed property was designed by Thomson and Sandilands in 1897/98 and comprises a four storey and basement Dunmore ashlar sandstone constructed property under a pitched timber and slated roof. There is a feature turret on the south-east corner. The building is bounded on the north side by North Court Lane. 106 BUCHANAN ST Let to The Ivy over basement, ground and first floors. The property has frontage to Buchanan St and extensive return frontage to Royal Bank Place. The kitchen and staff facilities will be located on first floor level, with bar and restaurant seating on ground floor and part first floor connected by a new sales stair. Toilets will be located on all levels. 110/112 BUCHANAN ST - Let to Edinburgh Woollen Mill Ltd and trading as Hector Russell over ground and basement levels. There is sales space over both levels with staff and toilet facilities located within the basement. Both floors have plaster/papered walls with lowered acoustic ceiling tiles incorporating fluorescent panels lights and carpeting/timber to the floors. A central sales stair connects both levels. 1 ROYAL BANK PLACE Let to Thomas Pink over ground, mezzanine and first floor levels. The ground floor benefits from a very prominent four bay aluminium shop front. The sales space is finished to a high standard and has plastered walls & ceiling with spotlights, A/C and a timber finished floor. This floor also incorporates disabled toilet facilities whilst the mezzanine is used for storage and the first floor is used for staff facilities. ROYAL BANK PLACE OFFICES Let to Nationwide Building Society on 2nd and 3rd floors. The offices are accessed via control entry double doors leading into an attractive lobby area where an 8-person lift is located serving all upper floors. The offices comprise a mixture of cellular and open plan accommodation arranged around a central core where stairs, toilets and lift are located. The ceilings are a mixture of plaster/cornice and lowered acoustic whilst lights range from pendant to spot and integral fluorescent fixtures. Heating is generally by means of gas fired boilers and radiators. A separate fire stair/exit serves all levels. A 2 car garage accessed from North Court Lane and let to Nationwide B.S. is included. A new lift has recently been installed. 06

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UP 2270 UP TO 1ST FLR BOH STAIR UP FRM BSMNT COFFEE MG 1 0 6 / 1 1 2 B U C H A N A N S T, 4 0 R O Y A L 08 Ground ENTRANCE LOBBY DROP OFF 8.2m² BAR LARGE W/S WITH FRIDGE MEDIUM W/S STILL ROOM/ 13m² DWC 1660 FIRE EXIT THE IVY HECTOR RUSSELL NATIONWIDE THOMAS PINK COMMON PARTS Basement First CHILLER MALE TOILETS FEMALE TOILETS STAFF CANTEEN FREEZER CORRIDOR OFFICE BAR LANDING LOBBY REFUSE POSSIBLE GENERAL STORE CORRIDOR FEMALE CHANGING PLANT ROOM POTENTIAL PDR MALE CHANGING THE IVY HECTOR RUSSELL COMMON PARTS THE IVY COMMON PARTS

09 Second NATIONWIDE COMMON PARTS Third NATIONWIDE COMMON PARTS

10 UNIT USE TENANT LEASE START LEASE EXPIRY REVIEW RENT AREA SQ FT ITZA ZONE A RATE SQ FT ERV 106 BUCHANAN ST RESTAURANT TROIA UK RESTAURANTS LTD TRADING AS THE IVY 110 / 112 BUCHANAN ST RETAIL GUARANTEED BY CAPRICE HOLDINGS LTD THE EDINBURGH WOOLLEN MILL LTD 20/09/2018 19/09/2043 20/09/2023 340,000 G 2,445 31/07/2005 31/07/2025 (BK OPTION 31/07/2020) B 2,017 1 5,705 TOTAL 10,167 31/07/2020 245,500 G 764 B 2,714 TOTAL 3,478 1,987* 3 171.11 636,198 ( 320 ZONE A) 1,027 239.05 328,640 ( 320 ZONE A) 1 ROYAL BANK PLACE ROYAL BANK PLACE 2ND FLOOR ROYAL BANK PLACE 3RD FLOOR RETAIL THOMAS PINK LTD 11/11/1996 10/11/2021 119,205 G 1,235 OFFICE OFFICE NATIONWIDE BUILDING SOCIETY NATIONWIDE BUILDING SOCIETY 01/09/2018* 2 31/08/2027 (BK OPTION YRS 3 & 6) 01/09/2018* 2 31/08/2027 (BK OPTION YRS 3 & 6) 1 322 M 432 TOTAL 1,989 01/03/2023 80,000 5,550 Plus 1 car space 01/03/2023 85,000 5,584 Plus 1 car space 1,235 96.52 135,850 ( 110 ZONE A) 14.05 + 2,000 / space 14.86 + 2,000 / space MAST ARQIVA LTD 30/06/2014 30/06/2029 30/06/2020* 1 5,000 5,000 80,000 85,000 874,705 26,768 1,270,688 * 1 30/06/17 rent review outstanding * 2 The lease start dates applicable to the Nationwide leases over levels 2 and 3 will commence upon conclusion of missives for the investment sale * 3 ITZA allows 8% deduction for quantum and 10% deduction for shape and frontage

11 The current rental income is 874,705 per annum. We anticipate that this will rise to 1,270,688 per annum based on 320 Zone A at rent review for the Buchanan St units. The existing percentage split for the ground floor units is 80% with 20% from the upper floors. This would change to 86% and 14% after the reviews/reversions. Existing Rental Income Leisure - 38% Retail - 42% Office - 19% Mast - 1% 1.TROIA UK RESTAURANTS LTD T/A THE IVY is guaranteed by Caprice Holdings Ltd for a minimum of 5 years and thereafter until audited annual accounts disclose that the net pre-tax profits (before charging all depreciation) of the Tenant for each of the three consecutive financial years exceed three times the aggregate of the annual rent and any service charge payable in terms of the Lease. Caprice Holdings Ltd. For the year ending 01/01/2017 the company had turnover of 67m and a tangible net worth of 41.2m. Pre-tax profits were 8.7m. Troia UK Restaurants Ltd. For the year ending 30/07/2017 the company had turnover of 43.9m and an adjusted EBITDA of 4.7m. Originally opening in 1917 The Ivy now operate from over 16 restaurants nationwide. 2.EDINBURGH WOOLLEN MILL LTD have a D & B rating of 5A1. For the year ending 25/02/2017 the company had turnover of 171m and a tangible net worth of 159m. Pre-tax profits were 23.62m. Founded in 1946, the company now operates in excess of 500 stores nationwide. 3.THOMAS PINK LTD have a D & B rating of 2A2. For the year ending 31/12/2016 the company had turnover of 34m and a tangible net worth of 3.6m. ERV Income Leisure - 50% Retail - 36% Office - 13% Mast - 1% Founded in 1984, the company now operate 33 shops including stores in London, New York and Paris. 4.NATIONWIDE BUILDING SOCIETY For the year ending 2017 the company had turnover of 3.28bn. Pre-tax profits were over 1.05bn. Founded over 130 years ago, the Society has over 15 million members. 5.ARQIVA LTD have a D & B rating of 5A1. For the year ending 30/06/2017 the company had turnover of 637m and a tangible net worth of 1,481m. Pre-tax profits were 270.7m.

12 PROPERTY PRICE INITIAL YIELD 78-90 Buchanan Street & 9-17 Exchange Place DATE COMMENTS PURCHASER c 31m 4.00% Jul-18 Multi-let to Lush, Vodafone, Starbucks and offices. Analysed as 4% (Lush & Vodafone), 5.75% (Starbucks), 7.5% (offices). 4% initial yield rises to 4.48% Pontegedea 122-128 Buchanan Street 9.36m 4.2% Jul-18 Let to Scribbler & Swatch DTZim 130-140 Buchanan Street c 14m 4.00% Dec-17 Let to Starbucks & Edinburgh Woollen Mill Redevco UK 35-53 Buchanan Street 35.2m 4.68% Dec-17 Let to Frasers with an unexpired term of 142 years. The next rent review is 2044 147 Buchanan Street & 48-72 St Vincent Street 47.8m 5.22% Nov-17 Multi-let mixed use block. Tenants include Apple, Skipton, TSB and Mitchells and Butler. Unexpired term of 10.3 years to expiry and 8.5 years to the breaks. Analysed as 4% (Apple), 5.5% (St V St units), 6.75% (offices) Strathclyde PF Pontegadea 164A Buchanan Street 4.07m 4.40% May-17 Let to Clarks Shoes on a new 10 year lease Private Investor 20-26 Buchanan Street 29.30m 4.29% Mar-17 Let to Nike until September 2025. TBO 9/20 Redevco UK 55-59 Buchanan Street 22.15m 4.00% Feb-17 Multi-let to KIKO, Molton Brown and Russell & Bromley Ltd 4% initial yield rises to 4.15% Saudi Investor Buchanan Street is currently witnessing unprecedented levels of occupier demand and consequently rental growth. Between circa 2005 and 2014 rents remained stable at 250 to 260 per sq ft Zone A however this has moved on considerably over the last 12/18 months with an extended period of rental growth which shows no sign of abating. This demand has resulted in a number of deals being agreed at in excess of 300 per sq ft Zone A with the top rent presently sitting at 320 per sq ft. There are still several outstanding requirements for the street and in line with occupier demand investment sentiment has also been very strong. Heritable interest (Scottish equivalent of English Freehold interest). The property is VAT exempt and therefore no VAT will be chargeable on the purchase price. ADDRESS TENANT ZRATE / SQ FT DATE 57 Buchanan St Russell & Bromley 304 Jan 2017 42 Buchanan St Hotel Chocolat 307 Jan 2017 124 Buchanan St Scribbler 312 July 2017 131 Buchanan St T2 317 Dec 2016 36 Buchanan St Levi s 320 Dec 2017 84 Buchanan St Vodafone 320 Dec 2017 9 Exchange Place Starbucks 113 Feb 2018 Legal documentation, plans, ITZA breakdowns, tenant credit reports and other information is held within a Data Room. Access will be provided to interested parties via the selling agents. Full details are available in the data room. We are instructed to seek offers in excess of 20,500,000 (TWENTY MILLION FIVE HUNDRED THOUSAND POUNDS STERLING) subject to conclusion of missives and exclusive of VAT for the Heritable interest. A purchase at this level would reflect a NET INITIAL YIELD OF 4.03% rising to 5.85% allowing for standard purchaser s costs based on LBTT. THE NET EQUIVALENT YIELD IS 5.48%. This is based on approximate NET EQUIVALENT YIELDS OF 5% (Buchanan St units), 6.25% (Thomas Pink) and 9% (offices).

FURTHER INFORMATION For further information and to inspect the property please contact: GRAEME FAITH Graeme Faith & Co Ltd 0141 332 6392 gf@graemefaith.co.uk DOUGLAS HOGG HSA Retail 0141 548 8062 douglas.hogg@hsaretail.com Graeme Faith & Co Ltd / HSA Retail for themselves, for any joint agents and for the vendors or lessors of this property whose agents they are, give notice that; (i) the particulars are set out as a general outline only for the guidance of intending purchasers or lessors and do not constitute, in whole or in part, an offer or contract. (ii) all descriptions, dimensions, references to condition and necessary permission 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. (iii) no person in the employment of Graeme Faith & Co Ltd / HSA Retail has any authority to make or give any representation or warranty whatever in relation to this property. (iv) all rentals and prices are quoted exclusive of VAT. September 2018.