25 Year RPI Linked Leaseback HUMBER QUAYS HULL, HU1 2BN 1&2 HUMBER QUAYS AND FREEDOM QUAY CAR PARK HULL, HU1 2BN

Investment Summary

• Best office buildings in Hull set within attractive landscaped plaza. • Enviable location overlooking the Humber Estuary and . • Hull is rapidly changing with exciting investment projects announced and in the pipeline. • Hull benefits from excellent road, rail and air access and the UK’s largest port complex. • One Humber Quays comprises high quality, air conditioned flexible office accommodation extending to approximately 21,821 sq ft (2,027.24 sq m) over four floors. • Two Humber Quays has been sold off long leasehold. • Freedom Quay Car Park provides secure parking for 271 cars, approximately 30% let on 125 year leases. • C Spencer Limited will take a 25 year lease on each floor of One Humber Quays, subject to 5 yearly RPI rent reviews (collar & cap of 1-4%). • Gross rent roll of £394,782 per annum. • C Spencer Limited is one of the UK’s largest privately owned multi-discipline engineering firms with a turnover in excess of £147m (2014). • Offers in excess of £5,330,000 which reflects an attractive net initial yield of 7%, after allowance for usual purchaser’s costs of 5.8%, and an approximate capital value of £200 psf on One Humber Quays. 1&2 HUMBER QUAYS AND FREEDOM QUAY CAR PARK HULL, HU1 2BN g A1(M)

A59 A166 HARROGATE York A661 Hornsea A1079 A614 A658 A61 A165 LOCATION A64 HUMBER QUAYS A58 Beverley & A19 A1079 HULL BRADFORD A1 Hull is a thriving commercial centre on the east coast of the UK, equidistant LEEDS A614 M621 between London and Edinburgh, within an hour’s drive of Leeds and York and A63 HULL 100 miles from Manchester. Recently awarded the title of UK City of Culture 2017 M62 1 3M62 38 A63 7 and named by the Sunday Times as one of the best places to live in the UK, Hull 26 37 42 30 34 41 Wakefield32 36 A15 is a rapidly changing city and the focus of significant inwards investment. 25 33 Immingham 40 M18 Huddersfield A19 39 M181 The city benefits from excellent road access with the A63 dual carriageway linking A61 A638 6 Scunthorpe 38 Grimsby M1 5 1 M180 M180 5 to the wider area via the M62 and M180 Motorways. A629 38 HUMBERSIDE Barnsley 3 37 4 37 4 Hull benefits from its unique location on the north side of the Humber, the UK’s Doncaster 36 36 3 ROBIN HOOD A159 busiest trading estuary and largest port complex. Acting as a gateway to mainland AIRPORT A15 M18 Rotherham A1(M) Europe, 320 million customers are accessible within 24 hours. Humber based 34 1 34 33 A631 32 34 A18 logistics companies ship directly to over 50 countries, with more than 170 shipping A46 SHEFFIELD 31 lines operating regularly. P&O Ferries handle over 1 million passengers a year on

E RA T its daily services between Hull and Rotterdam/Zeebrugge. FREE TOW ETOWN N FRE WAY WITHAM A165 Key: WA EET Y STRKINGSTON NORTH BRIDGE Hull Trains provide 7 direct train services daily to and from London, with a quickest JOHNSQUARE WRIGHT STREET GREAT UNION STREET GRIMSTON ST EW PROSPECT STREET TTE ST M S REET CHARLO 1 ST D 1&2 Humber O journey time of 2.5 hours. C BAKER STREET RRATT W K JA I O B L BER F Quays O F I C ND S E ALBION STREET F R FERENSWAY EN STREET OR OW GARD Three international airports are easily accessed from Hull. Humberside Airport, just NEW CE 8 T NORTH WALLS 2 Freedom Quay R DR E I VE ST STEPHEN’S E QUEENS DOCK AVENUE T 30 minutes south of the centre, serves over 0.5 million passengers a year and is Car Park GEORGE STREET BRIDGE home to the second largest heliport in the UK, serving up to 54 North Sea oil and WEST STREET DOCK STREET 1 7 KING JAMESON STREET EDW REET ARD ST T SOUTH STREET S PARAGON GUILDHALL ROAD 6 SQUARE GELDER gas rigs. Robin Hood Doncaster Sheffield Airport and Leeds Bradford Airport lie LFRED PARAGON S TREET QUEEN A 2 VICTORIA Fruit Market SQUARE within 45 minutes and 1.5 hours drive time respectively. T R LANE E CAR WHITEFRIARGATE WGATE PARLIAMENT ST E

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LOCAL ECONOMY

Half a million people live within Hull’s Travel to Work Area with a further 5 million people living within an hour’s drive of City. Hull’s Gross Added Value is estimated at over £4.6 billion (2012); it has been increasing consistently since 2009 and is at its highest value recorded. In 2013, Experian analysis showed Hull topping the table for businesses experiencing the highest level of sales growth. Major private sector employers in the City include Arco, Associated British Ports, Cranswick plc, Crown Paints, Reckitt Benkiser and Smith and Nephew. The attraction for businesses to locate in the area is clear with operating costs up to 20% lower than the UK average. There has been £1.5 billion of regeneration investment in Hull over the last five years with more significant investment announced to include £160m Siemens offshore wind turbine manufacturing facility, £150m Green Port Hull Development (ABP) and the £170m Castle Street Infrastructure Project. As a result of being awarded UK City of Culture 2017, it is estimated 30% of UK travellers are more likely to visit the City with the economic impact of the extra jobs and visitors estimated to be at least £60 million. Directly as a result of preparations for 2017, £25m is being invested specifically targeting the waterfront areas to improve the public realm and regenerate the Fruit Market into a vibrant, mixed-use lifestyle quarter.

the Fruit Market, opposite across the Marina. of and the regeneration of the Property the north 1.5km of the A63 and road junctions immediately to 2015, comprising improvements to approximately to be submitted to the Planning Inspectorate Spring improvements to the Castle Street Infrastructure, due will directly benefit fromThe Property the proposed Bakerinclude PWC, Tilly, Siemens and Santander. Retail Park and an Odeon Cinema. Nearby occupiers West in close proximity to the Ice Arena, Kingston lies at the end ofThe Property Wellington Street of the City and to the Portthe heart of Hull to the east. network and the Humber Bridge through motorway route providing dual carriageway access from the immediately to the south of the A63, principal lies and Hull Marina. The Property Humber Estuary best location in Hull with enviable views across the Humber Quays is uniquely situated in arguably the SITUATION HULL, HU1 2BN HUMBER QUAYS 1&2 ANDFREEDOM QUAY PARK CAR

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DESCRIPTION

The Humber Quays development comprises the best quality office accommodation currently available in Hull, developed in 2005/7. The subject property includes One Humber Quays, Two Humber Quays (sold off on a long leasehold) and the Freedom Quay Car Park. The freehold title includes the attractive landscaped pedestrianised plaza area surrounding the office buildings. One Humber Quays is situated at the forefront of the development, overlooking the Estuary and Marina. The Property extends to approximately 21,821 sq ft (2,027.24 sq m) over ground and three upper floors. The Property is of steel frame construction with glazed curtain wall elevations and concrete floors. Internally, the accommodation is arranged in two wings either side of a central core. The specification includes: • Full height glazed atrium entrance • Two passenger lifts • Feature central spiral staircase • Open plan floor plates • Air conditioned • Raised access floors • Suspended ceilings incorporating Cat II lighting • Male, female and kitchenette facilities to each floor • Spectacular third floor board room with external paved terrace • Secure car parking The Freedom Quay Car Park is situated immediately opposite the two office buildings on Wellington Street West. The car park provides secure parking for 271 cars over 3 levels. The freehold title of the car park is subject to a long leasehold of part of the premises which has been sublet for mostly residential use along with some ground floor commercial premises and a lease of an electricity substation site. 1&2 HUMBER QUAYS AND FREEDOM QUAY CAR PARK HULL, HU1 2BN

Plant Plant Area Area

Third Floor Plan

Typical Lower Floor Plan ACCOMMODATION

One Humber Quays has been measured in accordance with the RICS Code of Measuring Practice 6th Edition and provides the following net internal areas: Floor Use Sq m Sq ft Ground Office 539.02 5,802 One Humber Quays benefits from 184 car spaces First Office 694.64 7,477 currently allocated with the Property providing an Second Office 694.64 7,477 excellent ratio of 1:119 sq ft. Third Office 98.94 1,065 The site area of One and Two Humber Quays is Total 2,027.24 21,821 approximately 2.63 acres (1.06 hectares). 1&2 HUMBER QUAYS AND FREEDOM QUAY CAR PARK HULL, HU1 2BN

TENURE SERVICE CHARGE

Freehold. Detail on the service charge accounts on One Humber Quays, Plaza and Car Park and the apportionments thereof can be accessed via the data room. There is a current service charge shortfall of approximately £1,179 pa on the Car Park service charge. TENANCIES

One Humber Quays Floor Tenant Area Car Rent Rent Car Space Term Lease Rent Comments (sq ft) Spaces pa psf Rent pa Commencement Review Ground C Spencer Ltd 5,802 42 £89,000 £12.50 25 Completion 5 yearly; RPI Includes 20 car spaces within rent. Additional subject to 1-4% 22 spaces @ £750 per cps pa. collar and cap 1st C Spencer Ltd 7,477 54 £117,460 £12.50 25 As above As above Includes 22 car spaces within rent. Additional 32 spaces @ £750 per cps pa. Sublet to RBS. Terms available on request. 2nd C Spencer Ltd 7,477 54 £117,460 £12.50 25 As above As above Includes 22 car spaces within rent. Additional 32 spaces @ £750 per cps pa. 3rd C Spencer Ltd 1,065 7 £15,560 £12.50 25 As above As above Includes 4 car spaces within rent. Additional 3 spaces @ £750 per cps pa. Sub Total 21,821 £339,480 Two Humber Quays Whole Colsilverbird À Sarl £1 999 03/08/2006 Freedom Quay Car Park Residential tenants 9 £6,750 £750 125 Various 5 yearly; OMV Individual leases available on data room. Rolling break on 6 months notice. No obligation to contribute to service charge. Colsilverbird À Sarl 11 £5,500 £500 125 02/02/09 16/03/14 Review under negotiation. Colsilverbird À Sarl 5 £2,500 £500 125 25/02/09 25/02/14 Review under negotiation. Colsilverbird À Sarl 20 £15,000 £750 125 13/07/12 13/07/17 Colsilverbird À Sarl 16 £8,000 £500 125 26/09/08 26/07/13 Review under negotiation. Colsilverbird À Sarl 26 £17,550 £675 125 25/12/07 25/12/17 C Spencer Ltd 157 25 Completion Included under the office occupational leases. C Spencer Ltd 27 £0 25 Completion None Midlands Ground Rents £1 250 01/10/07 Residential long leasehold and substation. Limited Sub Total 271 £55,301 TOTAL £394,782 1&2 HUMBER QUAYS AND FREEDOM QUAY CAR PARK HULL, HU1 2BN

MARKET COMMENTARY The Hull office market witnessed improved demand throughout 2014 which is forecast to continue, additionally fuelled as the economic impact of the City of Culture and the Siemens deal in particular feed into the property market. The focus of the office market has moved to the waterfront areas where better quality office accommodation is available benefitting from excellent parking provision. This area is set to improve further with the Fruit Market redevelopment, improved Castle Street infrastructure and the proposed pedestrian footbridge over the A63. Prime rents are currently in the region of £14.50 psf with accommodation under offer at this headline level in Two Humber Quays, exclusive of parking. At Marina Court, a newly refurbished suite of 17,500 sq ft was let to Andrew Jackson Solicitors at a headline rent of £13.50 psf inclusive of 50 car spaces for a term of 15 years. 1&2 HUMBER QUAYS AND FREEDOM QUAY CAR PARK HULL, HU1 2BN

COVENANT EPC PROPOSAL

The Spencer Group The EPC rating for 1 Humber Quays We are instructed to seek offers in The Spencer Group, incorporated in 1989, is one of the UK’s largest privately is B. A copy of the certificate is excess of £5,330,000 (five million owned engineering, construction and systems integration businesses. available in the data room. three hundred and thirty thousand Headquartered in Hull, with additional offices in London and Glasgow, projects in pounds) subject to contract and Port and Marine environments represent the company’s strongest heritage and VAT exclusive of VAT. After allowance for from this the company expanded to the multi-disciplinary firm it is today. usual purchaser’s costs of 5.8%, this The property is registered for VAT and The latest accounts for C Spencer Limited are as follows: reflects an attractive net initial yield of the purchaser is to make their own 7%. This equates to a capital value of 31/03/2014 31/03/2013 31/03/2012 enquiries into the viability of a TOGC. approximately £200 psf on One £’000 GBP £’000 GBP £’000 GBP The vendor will assist where possible. Humber Quays. Turnover 147,267 94,689 78,537 Profit before taxation 1,155 1,062 31 CONTACT Net tangible assets 6,438 5,420 4,496 Shareholders funds 6,438 5,420 4,496 For further information, to arrange access to the data room or to inspect the property, please contact: Source: FAME Rebecca Farnsworth Graham Foxton C Spencer Limited have an Experian rating of 88 out of 100, reflecting a Low Risk of Business Failure. Tel: 0113 297 2420 Tel: 0113 297 1950 Mob: 07776 342315 Mob: 07717 546786 Spencer is an Engineering company that specialises in innovative Design and Build [email protected] [email protected] solutions. It has been a Principal Contractor for its largest client by value, Network Rail, for 20 years and its other clients include Drax Power, ABP, Siemens, Humber Bridge Board and Magnox. Spencer was awarded the accolade Transport Supplier Knight Frank LLP of the Year in 2014 at the National Transport Awards. 9 Bond Court Leeds Notable examples of recent design and build projects include a £7m Biomass Rail LS1 2JZ Unloading Facility in Hull Docks for Drax and ABP and a £21m remodelling of Gravesend Station for Network Rail. Important Notice 1. Particulars: These particulars are not an offer or contract, nor part of one. You should not rely on statements by Knight Frank LLP in the particulars or by word of mouth or in writing ("information") as being factually accurate about the property, its condition or its value. Neither Knight Frank LLP nor any joint agent has any authority to make any representations about the property, Spencer is presently engaged also in developing an energy from waste facility in and accordingly any information given is entirely without responsibility on the part of the agents, seller(s) or lessor(s). 2. Photos etc: The photographs show only certain parts of the property as they appeared at the time they were taken. NB: Photos on cover and Hull ("Energy Works") which aims to export 25MW of electrical power to the Grid - Page 1 taken in 2014. Areas, measurements and distances given are approximate only. 3. Regulations etc: Any reference to alterations to, or use of, any part of the property does not mean that any necessary planning, building regulations or other consent has been enough to power 40000+ homes. obtained. A buyer or lessee must find out by inspection or in other ways that these matters have been properly dealt with and that all information is correct. 4. VAT: The VAT position relating to the property may change without notice. Knight Frank LLP is a limited liability partnership registered in England with registered number OC305934. Our registered office is 55 Baker Street, London, W1U 8AN, where you may look at a list of members' names. March 2015. Designed & produced by www.thedesignexchange.co.uk Tel: 01943 604500.

Subject to Contract and exclusive of VAT