WEST POINT & CENTRE COURT STREET, PLYMOUTH PL4 0AH PROMINENT CITY CENTRE OFFICE INVESTMENT WEST POINT & CENTRE COURT, EXETER STREET, PLYMOUTH PL4 0AH

INVESTMENT SUMMARY ■ Location ■ Rent Plymouth is the principal city of , 118 miles (190 km) The property produces a total rent of £307,750 per annum south west of Bristol, 55 miles (89 km) east of Truro and 44 equating to £11.06 per sq.ft. overall. miles (71 km) south west of Exeter. It is situated on the A38 and A30 providing access to the M5 and the national ■ Proposal motorway network. We are instructed to seek offers of £3,000,000 (Three Million Pounds only) which reflects a NIY of 9.64% ■ Situation based on purchaser’s costs of 6.45% and a low capital value The property is situated at the eastern end of the city of only £114 psf inclusive of acquisition costs. centre fronting the A374 Exeter Street linking to the A38 to the east.

■ Description Two adjacent office buildings; Centre Court is a two-storey office building fronting the A374 and West Point is a four-storey building, accessed from Ebrington Street. The two buildings are linked with a courtyard.

■ Accommodation 27,815 sq ft (2,584.01 sq.m.) with 42 car parking spaces (1:662 sq.ft.).

■ Site Footprint Comprises 0.45 acres (0.182 Hectares)

■ Tenure Three titles - two are Freehold and one is Long Leasehold relating to a substation in the corner of Centre Court.

■ Tenancies The building is let to three tenants, The Secretary of State for Communities and Local Government, The First Secretary of State and Plymouth Community Healthcare CIC. The Wault is 4.9 years to expiry (2.7 years term certain).

PROMINENT CITY CENTRE OFFICE INVESTMENT www.bcmre.com WEST POINT & CENTRE COURT, EXETER STREET, PLYMOUTH PL4 0AH

LOCATION The property is located in Plymouth, which is the principal city of Devon and the second largest conurbation in the South West of England in terms of both employment and population. It is located 190 km (118 miles) south west of Bristol, 89 km (55 miles) east of Truro, and 71 km (44 miles) south west of Exeter.

The city has excellent road communications with both the A38 and A30 dual carriageways providing access to the national motorway network at Junction 31 of the M5 motorway at Exeter.

Plymouth has a mainline railway station with a direct journey time to of just over 3 hours whilst there are other direct services to the Midlands, the North, South Wales and Scotland. A1 A14 Exeter Airport is 71 km (44 miles) away. A6 NEWMARKET A14 CAMBRIDGE NORTHAMPTON BEDFORD WORCESTER STRATFORD-UPON-AVON A5 M40 A11 A46 M1 M11 IPSWICH A429 The city is also classed as a major port offering both passenger and vehicle ferry services currently SUDBURY BANBURY MILTON A1 HEREFORD A505 A44 KEYNES FELIXSTOWE operated by Brittany Ferries. M5 M1 A6 A470 M50 A5 HARWICH A40 LUTON STEVENAGE STANSTED A44 M40 A120 A40 CHELTENHAM LUTON COLCHESTER A41 DUNSTABLE A10 BRECON BEACONS GLOUCESTER A429 A1 (M) BISHOP’S CARMARTHEN NATIONAL PARK HERTFORD WARE STORTFORD A12 A470 AYLESBURY HEMEL ST CLACTON-ON-SEA A48 ALBANS A483 A40 HEMPSTEAD CHELMSFORD A414 HARLOW OXFORD HATFIELD A414 DEMOGRAPHICS CIRENCESTER AMERSHAM M25 A465 PONYTPOOL M5 M40 A12 LLANELLI A420 HIGH M1 M25 WYCOMBE M25 NORTH A449 A470 WATFORD SEA The city has a population of 462,000 within the primary catchment. M48 SWANSEA PONTYPRIDD M4 A433 BASILDON NEWPORT SWINDON SOUTHEND-ON-SEA M4 SLOUGH WEST A13 SWANSEA A343 DRAYTON LONDON CITY M4 M4 SHEERNESS CARDIFF READING HEATHROW Public Services makes up the largest share of total employment in Plymouth at 37.2% A46 CHIPPENHAM LONDON MARGATE BRISTOL A2 ROCHESTER A346 M4 BRACKNELL M5 A38 NEWBURY A350 A322 CARDIFF BATH M20 CROYDON BRISTOL A33 M2 BRISTOL CHANNE L WESTON-SUPER-MARE M3 Plymouth is a major residential expansion area with a projected population growth of 0.8% by A36 A343 A3 M25 A37 SEVENOAKS A338 BASINGSTOKE A24 MAIDSTONE 2017. A programme to build 5,500 new homes on the edge of the city began earlier this year. ANDOVER REIGATE A22 M20 FARNHAM GUILDFORD M23 A303 A39 A361 DOVER MINEHEAD M5 A36 A303 GATWICK ASHFORD M3 ALTON ROYAL GLASTONBURY A3 CRAWLEY TUMBRIDGE A31 WELL FOLKESTONE BRIDGE WATER A361 A22 A26 Plymouth University is home to 35,000 students and 3,000 staff with the main campus located a A37 SALISBURY WINCHESTER A23 short walk from the subject property. BARNSTAPLE A272 A272 UCKFIELD TAUNTON A350 A36 PETERSFIELD A354 SOUTHAMPTON WELLINGTON YEOVIL A338 SOUTHAMPTON LEWES R M27 A3 (M) E CHICHESTER V HASTINGS O NEWHAVEN D F BRIGHTON O M5 BROCKENHURST PORTSMOUTH A377 A354 I T R A A338 PORTSMOUTH EASTBOURNE S T A386 ENGLISH CHANN EL BOURNEMOUTH A30 DORCHESTER POOLE EXETER EXETER ISLE OF WRIGHT

LAUNCESTON WEYMOUTH A386 DARTMOOR A380 NATIONAL PARK

A388 A38 TORQUAY A385 NEWQUAY

PLYMOUTH DARTMOUTH

PLYMOUTH

PROMINENT CITY CENTRE OFFICE INVESTMENT FALMOUTH www.bcmre.com ENGLISH CHANN EL WEST POINT & CENTRE COURT, EXETER STREET, PLYMOUTH PL4 0AH

14

15 16

13 1 4 3

2 12

5 6

KEY 9 Barbican Leisure Scheme

1 West Point & Centre Court 10 National Marine Aquarium

2 Old Tree Court 11 Sutton Harbour Marina

3 12 Bretonside bus station Unite Student Accommodation 11 7 4 Jury’s Inn 13 Drakes Circus shopping centre 5 North Quay House 14 Roland Levinsky Building

6 Salt Quay House 15 Plymouth College of Art 8 7 Mast House & Design 8 Premier Inn 16 Beaumont

10 9

PROMINENT CITY CENTRE OFFICE INVESTMENT www.bcmre.com WEST POINT & CENTRE COURT, EXETER STREET, PLYMOUTH PL4 0AH

SITUATION The properties are situated in a very prominent location at the eastern end of the city centre, fronting onto the A374 Exeter Street which is the main arterial route into the city from the Marsh Mills junction of the A38.

Close by lie the amenities of the main retail and leisure provision, including Drakes Circus Shopping Centre, Sutton Harbour Marina (home to the National Marine Acquarium), and the Barbican Leisure scheme. Plymouth University’s main campus lies close by, as does the Plymouth College of Art and Design, and many of the surrounding buildings provide residential accommodation for students.

Bretonside Bus Station, situated directly south of Drakes Circus, is due to see construction start soon on a large new cinema-anchored leisure extension. This will cement the location as the premier family leisure destination in the city.

The immediate area is also home to the city’s grade A office provision, including Old Tree Court and Salt/ North Quay House’s. Significant occupiers include Plymouth University, Foot Anstey, DWP, the GPU, Cygna and Capita.

DESCRIPTION The properties comprise two adjacent office buildings with ancillary car parking constructed in 1990/91.

West Point provides accommodation over basement, ground and three upper floors, and Centre Court provides accommodation over ground and first floors. Both properties provide good quality modern office accommodation benefitting from suspended ceilings and raised floors.

Reception – West Point Office accommodation – HMRC ACCOMMODATION Centre Court provides a total of 12,900 sq.ft. over two floors, and West Point a total of 14,915 sq.ft. over 5 floors. In total the property provides 42 car parking spaces, located in the basement, opposite the reception of West Point, and on the small plot of land along Hill Street.

Subject property – view from Exeter Street

PROMINENT CITY CENTRE OFFICE INVESTMENT www.bcmre.com WEST POINT & CENTRE COURT, EXETER STREET, PLYMOUTH PL4 0AH

TENURE The property is held under three titles, two freehold and one long leasehold. Further information is available upon request. The long lease relates to a substation situated in the corner of Centre Court. TENANCIES The properties are let in accordance with the schedule below. All the accommodation is fully occupied by the various tenants.

Building Floor Tenant Floor Area Rent Rent Lease Expiry Break Rent Term Comments sq.ft. p.a. psf Start Review Certain

Secretary of State for Occupied by UK Border and Communities & Local West Point Part 2nd Floor 2,269 £32,300 £14.24 25-Mar-91 24-Mar-16 n/a n/a 0 Immigration Agency which is in Government (UK Border full occupation, holding over & Immigration Agency)

Ground, 1st, Part First Secretary of State 12,646 £136,500 £10.79 21-Mar-09 20-Mar-24 2-April-21 25-Mar-19 4.45 Occupied by HMRC and UK BIA 2nd & 3rd Floors (HMRC) Plymouth Community Centre Point All Healthcare CIC 12,900 £138,950 £10.77 25-Mar-16 24-Mar-20 30-Apr-18 1.56 (Livewell Southwest) TOTAL 27,815 £307,750 £11.06 2.7

COVENANTS Plymouth Community Healthcare CIC– otherwise known as Livewell Southwest is directly responsible for the Plymouth area, as well as for co-ordinating work with the other south west PCTs.

HMRC and UKBA – both of these tenants are central government departments and therefore offer undoubted covenants. The GPU is responsible for the property estates of both departments.

SERVICE CHARGE The service charge budget for y/e Dec 2016 is £179,320 which equates to £6.48 psf. Further details are available upon request.

PROMINENT CITY CENTRE OFFICE INVESTMENT www.bcmre.com WEST POINT & CENTRE COURT, EXETER STREET, PLYMOUTH PL4 0AH

PLYMOUTH DEVELOPMENT PIPELINE OFFICE MARKET There is very little significant office development planned in the city centre. Sutton Harbour plc have one site upon which offices could be developed, but build costs mean that a pre-let at £20 psf is required. The supply of offices in Plymouth City centre is primarily made up of secondary period or post war developments. Plymouth witnessed The immediate vicinity is also seeing some significant development in the student sector. For example on Coburg a spate of development in the 1960’s with schemes such as the Civic street Knightsbridge Student Housing are developing a 22 storey scheme of 507 beds. This activity demonstrates the Centre being built, and since then very little development has taken strong potential of the location for alternative uses. place. Bretonside bus station is currently the subject of a proposal by British Land to develop a That which has taken place has been focused on Sutton Harbour, cinema-anchored leisure scheme which will cement this location as the prime family leisure destination in the city. where Sutton Harbour plc has developed a number of buildings over the last 8 years and in the process have created what now constitutes the prime pitch within the City centre. ASSET MANAGEMENT OPPORTUNITIES ■ The tenants fully utilise the accommodation, offering the opportunity to re-gear the existing leases. Part 2nd Although there is a surfeit of Grade B accommodation, the city centre floor West Point has already expired. currently has a critical under-supply of Grade A accommodation. In fact there is currently no grade A availability within the city centre, ■ The passing rents offer potential for future growth. Supply of office floors of 10-15,000 sq.ft. are extremely since the letting of the last floor at North Quay House in Sutton limited in central Plymouth, and the PCT and GPU rents of £10.70 psf are significantly below the levels of recent Harbour to Rame Consulting in 2015. comparable lettings.

The most recent lettings in accommodation which are comparable to ■ Explore the development potential of the site. There would be an opportunity to significantly intensify the development the subject property are as follows: if VP could be secured, and the site would suit student accommodation or hotel uses particularly well.

SALT QUAY HOUSE, SUTTON HARBOUR Old Tree Court In Feb 2014 Bishop Fleming took an 8 year lease (TBO fifth year)on 5,900 sq.ft. at a headline rent of £15.50 psf with a 3 month rent free period.

NORTH QUAY HOUSE, SUTTON HARBOUR In August 2014 Rame Consulting took a 10 year lease (TBO fifth year) on 4,000 sq.ft. at a headline rent of £15.50 psf with 6 months rent free period.

The immediate facility is home to a number of central government departments. For example Old Tree Court which is situated directly opposite the subject property is occupied by the Department of Work and Pensions.

PROMINENT CITY CENTRE OFFICE INVESTMENT www.bcmre.com WEST POINT & CENTRE COURT, EXETER STREET, PLYMOUTH PL4 0AH

EPC An EPC has been commissioned and is available upon request. PROPOSAL We are instructed to seek offers in excess of £3,000,000 (Three Million Pounds VAT only) subject to contract and exclusive The property has been elected for VAT and therefore it of VAT. A purchase at this level would is envisaged that the sale will be treated as a transfer reflect a net initial yield of 9.64% after of a going concern (TOGC). allowing for purchaser’s costs of 6.75%. This would equate to a very attractive capital value of £114 psf including CONTACT acquisition costs. For further information or to arrange an inspection please contact:

TIM WILLS BCMRE [email protected] St Christopher’s House DL: +44 (0) 203 667 8405 St Christopher’s Place M: +44 (0) 7789 690 863 London W1U 1NZ

ANDREW DOBSON [email protected] DL: +44 (0) 203 667 8402 M: +44 (0) 7789 690 753

TOM STEADMAN [email protected] DL: +44 (0) 203 667 8406 M: +44 (0) 7789 690 753

Misrepresentation Act. All premises are offered subject to contract and availability. These particulars are issued, without responsibility on the part of the vendor, BCM, or any of their respective employees or agents and serve only as an introductory guide to the premises. No part of them constitutes a term of a contract or a statement or representation upon which any reliance can be placed. Any person with an actual or prospective interest in the premises must satisfy themselves as to any matter concerning the premises by inspection, independent advice or otherwise. Neither BCM, nor any of their employees or agents have any authority to make orgive any representation or warranty as to the premises whether in these particulars or otherwise. Unless otherwise stated all figures quoted are to be considered exclusive of AT.V October 2016.

PROMINENT CITY CENTRE OFFICE INVESTMENT www.bcmre.com