Louisa Ryland House

Prime refurbishment opportunity In The Heart Of Birmingham’s Central Business District

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Louisa Ryland House, 44-46 Newhall Street & 96-98 Edmund Street, Birmingham B3 3PL Louisa Ryland House

2 Computer generated image Investment Summary

n A rare opportunity to acquire two prime interconnected buildings offering full vacant possession, located in Birmingham’s Central Business District. The two buildings are collectively known as Louisa Ryland House.

n Birmingham is the UK’s second City and the economic and cultural capital of the Midlands region. Birmingham is at the heart of a powerful, fast growing City Region economy, which benefits from a GDP within the top 10 in Europe.

n Louisa Ryland House is situated at the very heart of Birmingham’s prime office core, and occupies a prominent position fronting Newhall Street, Edmund Street and Cornwall Street, in close proximity to Colmore Row, Birmingham’s premier business address.

n The existing property offers two distinct but interconnected buildings extending to a total of 80,459 sq ft of accommodation. The properties were substantially rebuilt and amalgamated onto a single integrated floor plate in 1985 behind a retained façade. The two distinct elements comprise; • 44-46 Newhall Street – Grade II listed elements – 56,424 sq ft (inclusive of 7,840 sq ft at basement level) arranged over 6 floors with principle frontage to Newhall Street • 96-98 Edmund Street – Grade II and Grade II* listed elements – 24,035 sq ft arranged over 6 floors with principle frontage to Edmund Street

n Behind the retained façade the buildings benefit from a straightforward steel frame with insitu concrete floors, which can be easily adapted to suit a variety of uses.

n Detailed planning consent was granted in 2016 for a comprehensive office refurbishment scheme, which lends itself to two separate blocks of accommodation. The new scheme provides reconfigured internal space and additional floors on top of the existing structure. The consented scheme delivers up to 81,280 sq ft of Grade A office accommodation, 57,211 sq ft in the 44-46 Newhall Street element and 24,069 sq ft in the 96-98 Edmund Street element. The new scheme converts basement space to a parking use.

n In addition to the existing office consent, the property provides a unique opportunity to explore alternative use angles for all or distinct parts of the existing or refurbished / redeveloped property. These potential uses would include residential, serviced apartment, student and hotel, subject to planning.

n Long leasehold from Birmingham City Council for a term of 150 years expiring 30 March 2165. The ground rent payable for a future commercial scheme is 1% of rent received, and for a future residential scheme is £300 per unit subject to 5 yearly RPI uplifts.

Proposal We are instructed to seek offers for the long leasehold interest, subject to contract and exclusive of VAT. Consideration will be given to offers for all or distinct parts of the property (The Newhall Street Building and / or The Edmund Street Building). Subject to planning offers for all or part will also be considered.

Computer generated image 3 4 Louisa Ryland House Birmingham: A global city Birmingham is the regional capital of the Midlands region and is firmly established as the UK’s second city. The City sits at the centre of the larger West Midlands conurbation with a population of circa 2.45 million (2015 estimate). As a result, Birmingham has one of the largest regional labour pools in the UK, with 4.3 million people of working age living within an hour’s drive of the city centre.

Birmingham has a strong and well balanced economy and is 5 years. This is highlighted by HSBC’s decision to relocate a major engine of UK growth. It is one of the fastest growing the headquarters of its HSBC UK retail bank to Birmingham, cities in the United Kingdom and Europe. Birmingham has the moving 1,000 jobs from London into 210,000 sq ft at Arena 10th largest city economy in Europe producing £100 billion + Central. This continues the impressive inward investment GDP per annum (2015 estimate), ranking Birmingham ahead of trend set by HS2 and Deutsche Bank. Manchester (UK), Hamburg and Munich (Germany), Stockholm (Sweden) and Lyon (France). Birmingham is host to over The City produces around 25,000 graduates a year from its 75,000 companies, including 1,200 international businesses. three top class universities. There are a further 18 universities within an hour’s drive, producing 112,000 graduates per year, Birmingham’s business and financial services sector is the 60,000 of which are Business, Technical or Science students. second largest in the UK and employs over 130,000 + people within the city and 350,000 in the wider region, and Birmingham is one of the leading cities for events in Europe. is expected to grow by over 30% by 2025. The city is a key With facilities such as the National Exhibition Centre and the target for inward investment, and has seen more successful International Convention Centre, the city accounts for around inward relocations than any other regional centre in the last 40% of the UK’s conference and exhibition trade each year.

Birmingham is... n The largest regional economy in the UK outside of London n A dynamic economic powerhouse with the largest financial and professional services sector outside London; the fastest growing sector in the city, already employing 130,000+ people n Host to over 75,000 companies, including 1,200 international businesses n Home to major employers investing in the city, including HSBC, HS2, Deutsche Bank, Jaguar LandRover and Kraft n The youngest major city in Europe, with under 25s accounting for nearly 40% of population n One of the UK’s top university city’s, producing nearly 25,000 graduates a year from its three top class universities, with a further 112,000 graduates from 18 leading universities within one hour drive n A city on the move – Birmingham’s Big City Plan is a master plan for the next 20 years of development in the city and is the biggest of its kind in Europe n A key target for inward investment and infrastructure projects, subject to more infrastructure investment than any other European city n The future centre of the UK’s high speed rail network, consolidating Birmingham’s position at the heart of the UK’s infrastructure platform

5 Louisa Ryland House

Inward investment Birmingham has recently been named the UK’s most investable city and the sixth best in Europe*.

New Street Station New Street Station is the busiest interchange station in the UK and Birmingham’s principal station. The £650 million redevelopment project has recently completed, transforming the station and raising capacity up to 140,000 passengers daily. A new central atrium connects the station to the recently opened Grand Central Shopping Centre above, which provides over 50 new retail and leisure outlets anchored by a 250,000 sq ft John Lewis.

Midland Metro The £127 million extension to Line 1 of Midland Metro is now complete and extends the tram network between Snow Hill Station and New Street Station. Further extensions to the Midland Metro system are funded and in the preparation phase. These include a further extension to Line 1 through Paradise, Brindleyplace and to Edgbaston beyond; and the construction of Line 2 serving the new HS2 station at Birmingham Curzon, Digbeth and Birmingham Airport. Midland Metro serves Snow Hill Railway Station, which is a 5 minute walk from Louisa Ryland House, offering multi modal transport connections.

Birmingham Airport Birmingham is served by Birmingham Airport, 13km (8 miles) to the east of the City Centre via the M6 motorway. Birmingham Airport underwent a £65 million runway extension and terminal expansion during 2014 and 2015, creating the potential for a truly international airport gateway at the heart of the UK. The works will enable Birmingham Airport to double its capacity and directly compete with London Heathrow and Manchester Airport for international long haul flights to China, India and the West Coast of America. The airport has been further enhanced by the recent opening of the ‘Sky Deck’ which provides facilities for operating the A380 airline, which is now used by Emirates services.

High Speed 2 Phase 1 of HS2 will connect London and Birmingham by 2026, with a dedicated new city centre terminus at Birmingham Curzon Street. Phase 2 of the project will connect Birmingham with Manchester and Leeds, placing the City at the heart of the new national high speed network. The forecast journey time from London to Birmingham will reduce to 48 minutes. A new HS2 station will also be located at Birmingham Airport, allowing passengers to reach the terminal from London in just 44 minutes.

Snow Hill Masterplan A £600m master plan has been launched to transform the Snow Hill area of the city over a 20 year period, creating 10,000 jobs and boosting the city’s economy by £600m a year. This area is in close proximity to Louisa Ryland House. The vision is to redevelop the existing Snow Hill Railway Station, in association with major public realm and highway improvements, new cycle routes and enhanced linkages across railway lines with an extension of Edmund Street.

*Source: Urban Land Institute and PwC (2015)

6 7 Map Key To Manchester & North West

Motorways Railway Lines Train Stations

Stoke-on-Trent

M6

Oswestry Burton-upon-Trent Stafford

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Shrewsbury Lichfield M54 To Leeds Telford M6 TOLL M42 & North East Walsall Wolverhampton M69 BIRMINGHAM SHROPSHIRE AIRPORT M1 Stourbridge BIRMINGHAM M6

M5 Ludlow Solihull Coventry M42 COVENTRY AIRPORT Rugby

Redditch WORCESTERSHIRE Warwick

M5 Worcester M40 Stratford-upon-Avon HEREFORDSHIRE To London WARWICKSHIRE & South East Hereford

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To Bristol Ross-on-Wye To Oxford, & South West London & South

8 Louisa Ryland Connectivity House Birmingham is located at the very heart of the United Kingdom, and benefits from a world class, multimodal integrated transport infrastructure, providing exceptional local, national and international connections.

Road Midland Metro

The city benefits from a comprehensive Midland Metro tram system, one of the UK’s most successful rapid transport systems, currently operating between Birmingham and Birmingham is strategically located at the centre of the UK’s Wolverhampton via West Bromwich and Wednesbury. motorway network with the M5, M6 and M42 forming an It operates seven days a week with a ‘turn up and go’ every orbital route around the city which is principally accessed eight minutes during the day and every 15 minutes during the by the Aston Expressway, A38 (M). Opened in 2003, the M6 evenings and Sundays. Line 1 was recently extended between Toll road provides an alternative route to the M6 around the Snow Hill and New Street Station, opening in May 2016. north of the West Midlands conurbation. These excellent road Further extension to the system are planned to Edgbaston links mean that 90% of the UK market, both consumer and via Paradise and Brindleyplace, and Birmingham Airport via business is within a four hour travel time of the city. Birmingham Curzon Street (HS2 terminus) and Digbeth.

Rail Air

Birmingham is well served with regional and national rail services from 3 main central stations. Birmingham New Street connects the city with London Euston (1 hour 23 minutes), Manchester Piccadilly (1 hour 28 minutes) and Glasgow Central (4 hours 19 minutes) along the West Coast Mainline whilst both Birmingham Snow Hill and Birmingham Moor Street Birmingham Airport lies 13km (8 miles) south-east of the provide services to London Marylebone in a fastest journey City and serves 143 national and international destinations time of under 2 hours. All three stations provide regional carrying over 11 million passengers each year. It has recently services with Birmingham New Street offering regular services undergone a £65m runway extension, and associated terminal to Worcester, Wolverhampton, Derby and Nottingham whilst improvements, significantly increasing its capacity and Birmingham Snow Hill and Birmingham Moor Street service enabling direct flights to China, India and the West Coast of Leamington Spa, Stratford, Solihull and Kidderminster. America.

9 Louisa Ryland House Perfectly positioned Louisa Ryland House benefits from a close proximity to a number of Birmingham’s business, retail and leisure hotspots.

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O N T C O T O N E C I facilities that complement the Central approximately 520,240 sq m (5.6 million sq ft) E H T S U A TR R ET R R E T E C O E H P T Business District function. Surrounding of office space S TR S R T S T E S L R O E E L E C R A E T landmark buildings include The Grand Hotel, T L T E S E R NW R B T L A R T U There are several high profile redevelopment E E T S L D E N O E K L Birmingham Cathedral, the Council House and R H C E C N T IO R I S E S L C T W T S R R E schemes in the immediate area that will T T A L E D E A Town Hall along with modern developments H PA E A N B E T E RA L T D E L D F E U E E E M significantly improve the R environs of the T N R D EE A G E including the award winning One & Two ST R T T S N S T W property and the widerE Colmore BusinessS O M D R Snowhill, 55 Colmore Row and 103 Colmore LE R E C A N R W E O District in the future. These schemesED include SUM W LM Row (under construction). T MER H O S RO M A C D W A L Rockspring and Sterling’s 103 Colmore Row, N R L T LA G ST E T P A R T E O A R E E R E E M SC R T T ST The property is situated within Colmore Ardstone Capital’s One Newhall Street, A S P D D T L N R E N E E IO E E R T E Business District, a business improvement Horton’s redevelopment of The Grand Hotel T O W A L B W O R A R R B D I E O U N W L C P P R L district established to project manage and Argent’s Paradise Circus scheme of D E M H L K L S E E O S I P T R N E T R C T G Y A Y R E E improvements and services to the central over 1 million sq Dft of office led mixed use D S E W R R T T A I R R V A E D E E business quarter of Birmingham. The Colmore redevelopment. All theS above lie within 300m D T R O I Y A S ET E T D E L E R L Business District (CBD) area is Birmingham’s E of the subject property. T E T T EE S A R TR O E S O E S T E C L T S G ER R S E I T E premier concentration of professional and T ID A T E R L R W S R N B E D T M C E S C A E C L N U E N U I P N V N O IO T S M N N S E N STR T Q T A EET REE C ST U C CAMBRIDGE ARR E S LA E NE

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O T R S B T R E T B E EE Tenure T R E ST A ON K ATI S H ST T IL R L Long leasehold from Birmingham City Council for a term of E TREET S E S T ASTON T T EE EDGB R TR E S E Y 150 years expiry 30 March 2165. The future ground rent from a ET T LE RE ET CK ST E IN N R H R ST VE commercial scheme will be 1% of rents received, and for a future E N T Arena Central S IO E AT E ST residential scheme is £300 per unit subject to 5 yearly RPIR uplifts. T S ET Further information is available on request. D RE A ST O GH R U GO B H U R S T S T T R E E RE E ST E T L L 12 IA L RC IS E S M T M R O B EE C L ET U T T E C E TR H E W S E R A H R T S G S S H U T I R N O E D G G E A T R T O E M O PP R N U A B S R T R S E H E A T L L S T T R EE E TR E S T EY B IDL R R

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14 Louisa Ryland House

Existing buildings Description The existing property comprises two distinct but interconnected office buildings that offer a combined total of 80,459 sq ft of office accommodation, inclusive of 7,840 sq ft at basement level. Originally built between 1879 and 1883 the combined buildings originally comprised: n 44-46 Newhall Street (formerly known as Board of Guardians Office) n 96 Edmund Street (formerly known as Empire House) n 98 Edmund Street (formerly known as School Board Offices)

The building is named in honour of Louisa Anne Ryland, a major former benefactor to the city of Birmingham, who died shortly after the completion of the original Victorian scheme. The buildings Edmund Street Frontage were substantially rebuilt and amalgamated in 1985 to provide a single integrated floor plate. These works involved retaining the Grade II listed façade whilst a new steel frame was installed behind. The amalgamated property has an L-shaped floor plate with an internal courtyard filling the remaining area as part of a rectangular shaped site. The property was used as a major office facility for Birmingham City Council between 1985 and 2012.

44-46 Newhall Street extends across basement, ground and four upper floors with the fifth floor solely providing plant space whilst 96 and 98 Edmund Street are arranged over ground and five upper floors. Again, the sixth floor is reserved for plant. Within 44-46 Newhall Street the basement level is arranged as storage accommodation.

Accommodation

44-46 Newhall Street 96 & 98 Edmund Street

Floor Sq.m Sq.ft Floor Sq.m Sq.ft

Basement 728 7,840 Ground Floor 384 4,139

Ground Floor 1,029 11,076 First Floor 352 3,790

First Floor 904 9,729 Second Floor 387 4,164

Second Floor 934 10,054 Third Floor 394 4,239

Third Floor 891 9,594 Fourth Floor 381 4,098

Fourth Floor 755 8,130 Fifth Floor 335 3,606

Total 5,242 56,424 Total 2,233 24,035

*Gross Internal Areas can be provided upon request

Newhall Street & Edmund Street Corner Frontage

15 Existing Ground Floor Plan

44-46 Newhall Street

96-98 Edmund Street

Existing Newhall Street Elevation

16 Typical Upper Floor Plan Louisa Ryland House

44-46 Newhall Street

96-98 Edmund Street

A full set of existing floor plans and CAD files are available upon request

Existing Edmund Street Elevation

17 Proposed office buildings

Detailed planning consent was secured in 2016 for a Grade A office refurbishment scheme. The consented scheme will provide a total of 81,280 sq ft across two separately accessed Grade A office blocks – Newhall Street Building and Edmund Street Building. The planning application number for the new scheme is 2015/10427/PA.

The Newhall Street Building The Edmund Street Building The Newhall Street Building will become a landmark The Edmund Street Building will become a prestigious headquarter style office building. The building has consent multi-let office building. The building has consent to provide to provide 57,211 sq ft in total, including 54,740 sq ft of a total of 24,069 sq ft, including 20,441 sq ft of Grade A office Grade A office accommodation and 2,471 sq ft of retail and accommodation and 3,628 sq ft of retail and leisure space, leisure space, arranged over ground to fifth floor. The consent arranged over lower ground to fourth floor. The consent envisages that the existing mansard is removed and replaced envisages that the existing building will be altered to create with two new floors of office accommodation above the a standalone and separately accessed retail and leisure unit existing structure, the creation of a feature double height over ground and lower ground floors whilst the Grade A office reception area with access from Newhall Street and relocation accommodation will feature a dedicated bespoke reception of the central core and circulation areas. The standalone retail area with access from Edmund Street and will be arranged and leisure unit will be created at ground floor and will benefit over ground and the four upper floors. from dedicated access from Cornwall Street as well as dual frontage to Newhall Street. The new floor plates are typically c.4,800 sq ft in size, targeting an array of occupiers active within the local market. The new floor plates will vary between c.8,000 sq ft and At lower ground level the building will be adapted to provide c.11,000 sq ft, making them attractive to the local market and parking for 9 vehicles with cycle storage and associated a number of occupational requirements. At basement level the changing facilities, again with a new vehicular access created scheme will provide car parking for 25 vehicles alongside cycle from Cornwall Street. storage and associated changing facilities with a new access to the car park created from Cornwall Street.

Newhall Street Building Edmund Street Building

Floor Sq.m Sq.ft Floor Sq.m Sq.ft

Ground Floor – Office 448 4,826 Lower Ground – Retail 194 2,085

Ground Floor – Retail 230 2,471 Ground Floor – Retail 143 1,543

First Floor 943 10,153 Ground Floor – Office 199 2,142

Second Floor 1,056 11,367 First Floor 446 4,806

Third Floor 1,027 11,057 Second Floor 445 4,793

Fourth Floor 865 9,313 Third Floor 449 4,834

Fifth Floor 746 8,024 Fourth Floor 359 3,867

Total 5,315 57,211 Total 2,236 24,069

18 Louisa Ryland House

Computer generated image Computer generated image

Computer generated image 19 Proposed Ground Floor Plan

44-46 Newhall Street

96-98 Edmund Street

Proposed Newhall Street Elevation

20 Proposed Upper Floor Plan Louisa Ryland House

44-46 Newhall Street

96-98 Edmund Street

A full set of existing floor plans and CAD files are available upon request

Proposed Edmund Street Elevation

21 22 Computer generated image Louisa Ryland House

Grade A specification The consented scheme delivers a true Grade A specification that targets the very best in deliverable accommodation and ensures a high quality product is presented to the market.

The target specification includes:

Sustainability Internal Accommodation n Target BREEAM rating: Very Good with an EPC rating of B n Finished floor to finished ceiling thresholds 2800 - 3200mm

n LED, energy efficient lighting Mechanical & Electrical n Micro perforated fully accessible suspended ceiling n Fully programmable building management system n Fully accessible raised flooring to all office areas with a n Full four pipe heating and cooling system minimum clear void of 150mm n Access control proximity readers to all pedestrian and n Design Occupancy of 10sq.m per person for comfort vehicular entry points cooling and sanitary accommodation & 6sq.m per person maximum means of escape n Standby Power Generation Provision for tenant installation n Destination control system passenger lifts with 3no. within Newhall Street and 2no. within Edmund Street

23 Louisa Ryland House

Office market commentary Birmingham boasts the largest financial and professional services sector outside London; the fastest growing sector in the city, and is home to over 75,000 companies, including 1,200 international business. Birmingham has one of the largest CBD office markets in the UK, with over 18 million sq ft of built stock, along with a high quality business community and dynamic Central Business District area.

Take up Significant transactions Take-up within Birmingham’s CBD office market has been Within the last year there have been a number of significant exceptionally strong over the last 2 years and as a result this transactions that have set the rental tone for Birmingham City has maintained the pressure on the amount of available Centre. These are as follows; good quality space. Take-up to the end of Q3 2016 was 596,750 sq ft, with a record take-up for the half year mark n One Chamberlain Square, Paradise – March 2016. which saw Birmingham cement itself as the dominant regional 90,000 sq ft pre-let to PwC, with occupation from 2019. office market in the UK with 23% of total take up during this Headline rent of £32.00 per sq ft. period. This comes on the back of a very strong 2015, where n Baskerville House, Centenary Square – March 2016. take-up totalled 970,515 sq ft, comfortably ahead of both 84,500 sq ft letting to Network Rail. Average headline the 5 and 10 year averages of 704,456 sq ft and 702,074 sq ft rent of £24.20 per sq ft, with £25.00 per sq ft on the respectively. fourth floor.

1,000,000 n 55 Colmore Row – March 2016. 40,000 sq ft pre-let to 5 year average Pinsent Masons, with occupation from 2017. 900,000 10 year average Headline rent of £30.00 per sq ft.

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Year H1 2016

24 Take up analysis

Take up by letting size Take up by sector While the Birmingham office market has seen some notable Demand continues to be generated from a diverse range success in attracting significant inward investment, and seen of business sectors, with Birmingham benefiting from a several high profile lettings, the market has been buoyant diversified take-up profile with no over-reliance on any one throughout the size bands, with strong take-up also on sector of the economy. Birmingham is well positioned to transactions of less than 10,000 sq ft, which accounted for attract new inward investment from global occupiers as the 36% of total take-up in 114 transactions during 2015. This trend towards decentralisation from London and the South demonstrates there is a good number of large lettings in any East intensifies. This is highlighted by HSBC’s recent decision one year that could target 44 Newhall Street, and a good level to relocate its headquarters for the HSBC UK retail bank of smaller transactions that suit 96-98 Edmund Street. to Birmingham, moving 1,000 jobs from London, building on the success of inward investment seen from HS2 and 350,000 Deutsche Bank.

300,000 300,000 250,000 250,000 200,000

Sq ft 150,000 200,000

100,000 150,000 Sq ft

50,000 100,000 36% 23% 13% 6% 22% 0%

0

0 50,000 30.35% 18.35% 16.98% 10.74% 5.32% 17.90% 0.27% 10,001 50,001 25,001 10,000 50,000 25,000 100,001 100,000

200,000 0

200,000+ 2015 Transaction Size TMT Other

Banking &

Manufacturing

Supply Service Industries Financial Services Public Administration Professional Services Total Grade A supply continues to decrease, with Birmingham 2015 Sector Transactions now facing a shortage of true Grade A stock. Grade A office supply now stands at around 323,000 sq ft, which represents a very low Grade A vacancy rate of around 1.8%. Rents and future growth

The increasing levels of demand and scale of active Prime office rents in Birmingham peaked at £33.00 per sq ft requirements, means there will be a severe shortage of in 2008 before dropping to back during the recession. available supply in the near term. This is further compounded They have since recovered and continue to strengthen. by the lag in the current development pipe line where there Prime rents now stand at £32.00 per sq ft and are forecast are no new completions until mid-2017, at the earliest. to reach £35 per sq ft in 2019. JLL’s latest rental forecasts for prime Birmingham rents from September 2016 are as follows;

2016 6.7% £32.00

2017 3.1% £33.00

2018 3.0% £34.00

2019 2.9% £35.00

2020 0.00% £35.00

Average 3.20%

25 Louisa Ryland House

Potential residential use Louisa Ryland House provides an excellent opportunity for conversion to premium residential accommodation, subject to the receipt of the appropriate planning permission. The character of the existing buildings together with a prime location within the heart of Birmingham’s CBD presents a unique opportunity for a developer to deliver a bespoke premium value scheme.

There have been a number of residential conversions The indicative layout plans based on the existing layout undertaken within the Birmingham market within recent provide a total of 86 one, two and three bedroom apartments, years, the majority of which were 100% forward sold to as detailed in the summary table. owner occupiers and investors. However, none of these schemes are at all comparable in terms of the quality of In assessing an indicative layout based on the increased floor development that could be provided at Louisa Ryland House. space provided within the detailed planning permission, in Working with architects Broadway Malyan, the development our opinion due to the existing service cores being removed potential of Louisa Ryland House for residential conversion has and a new core being created, the increased average floor been assessed, to consider indicative development options and plate within the building was not efficient for conversion to layout proposals. Two indicative development options have residential. As such, we determined that the existing service been prepared, based on: cores could be retained, but utilising a reconfigured 4th floor and the creation of the additional 5th floor. The indicative n Option 1 - Existing layout of the buildings. layout plans for this option provide a total of 96 one, two and three bedroom apartments, as detailed in the summary table. n Option 2 - Utilising the increased floor space provided by way of the detailed planning permission granted in 2016 for a comprehensive office refurbishment scheme.

Option 2 - Utilising the increased floor space Option 1 - Existing layout of the buildings within planning permission

1 bed 2 bed 3 bed 1 bed 2 bed 3 bed

Floor Floor

Basement 3 2 Basement 3 2

Ground 5 6 1 Ground 5 6 1

First Floor 9 7 2 First Floor 9 7 2

Second Floor 8 8 2 Second Floor 8 8 2

Third Floor 8 8 2 Third Floor 8 8 2

Fourth Floor – Removal Fourth Floor – as existing 7 5 3 7 7 1 of current with addition Totals 40 36 10 Fifth Floor – New addition 2 3 3 Total apartments 86 Totals 42 43 11

Total apartments 96

26 Ground floor

First floor

Typical upper floor

A more detailed set of floorplans is available on request.

27 Residential market commentary Birmingham boats a dynamic and fast growing residential market, which has seen Birmingham City centre re-emerge as a vibrant environment for those who visit, work and live in the city.

Birmingham has benefited from significant investment Population and City Centre Market over the last 2 years, with investment into public realm and infrastructure, coupled with a huge growth in the retail Over 1 million people live within Birmingham’s boundaries, and leisure scene, all of which has made Birmingham, and with a further 5.35 million within an hour of the city centre. the City Centre in particular an exciting and exceptionally The city’s population is youthful with 46% under the age of 30 well connected place to live. Birmingham boasts five compared the Great Britain average of 14%. The population of Michelin star restaurants, more than any other regional Birmingham City Centre itself is growing at a rapid rate, with city, and vibrant areas such as Brindleyplace, Mailbox, key residential areas including the Jewellery Quarter, Westside, and the Cube, together with a significant number of Southside and Digbeth. These growing central residential areas independent bars and restaurants, providing an excellent surround the traditional office and retail cores. food and leisure offering. Over 55% of Birmingham’s City Centre population rent With the improving sentiment around Birmingham, we privately, which is considerably higher than the West Midlands expect the current strong demand and value trends to average of 16%. There is a progressively compelling rental continue, and maintain the positive impact on values, dynamic in Birmingham which underpins great rental growth pushing up both sales and rental values in the city. prospects.

The Cube

28 Louisa Ryland House

Mailbox

Demand Capital Values Research suggests that anticipated population growth will Capital values at the peak of the market in 2007 were in create a demand for an additional 45,000 residential units excess of £500 per sq ft. Mid recession values contracted by within Birmingham City Centre. Demand for city centre up to 30%, but the market has recovered strongly since. The accommodation is currently increasing at a rate at which lack of supply and increasing demand is now pushing capital the development pipeline cannot support, which is having a values forward significantly. JLL now forecast growth in the positive effect on sales values. order of 3-4.5% per annum over the next 5 years within the City Centre.

Supply Rental Value Growth At present there are 10,000 units in the near to mid-term development pipeline, of which only 2,000 are under With the high percentage of rental properties as part of the construction. Data suggests that there is only a 6 to 12 overall market, the strong demand and lack of supply, rental month supply of available apartment stock remaining in the growth is anticipated to be strong. Growth is forecast in the Birmingham City Centre market, creating positive conditions region of 2.9% - 3.1% per annum between 2016 and 2019. for both rental and capital value growth, and a significant gap for new schemes.

Brindleyplace - Central Square

29 Louisa Ryland House

Potential hotel use Louisa Ryland House offers an excellent opportunity for conversion to a hotel or serviced apartment use, subject to the receipt of appropriate planning permission. The character of the existing buildings together with a prime location within the heart of Birmingham’s CBD presents a unique opportunity for a developer to deliver a very high quality luxury hotel or serviced apartment scheme.

There have been a number of hotel and serviced apartment The indicative layout plans based on the existing layout conversions undertaken within the Birmingham market within provide a total of 154 bedrooms, as detailed in the summary recent years, the majority of which were of inferior quality table. The principle entrance would be from Newhall Street properties in more fringe locations. Working with architects with the ground floor comprising front of house, back of house Broadway Malyan, the development potential of Louisa Ryland and a kitchen. The basement floor would include conference House for hotel conversion has been assessed, to consider facilities, gym and further back of house facilities. indicative development options and layout proposals. Two indicative development options have been prepared, based on: In assessing an indicative layout based on the increased floor space provided within the detailed existing office planning n Option 1 - Existing layout of the buildings. permission, in our opinion due to the existing service cores being removed and a new core being created, the increased n Option 2 - Utilising the increased floor space provided by average floor plate within the building was not efficient way of the detailed planning permission granted in 2016 for for conversion to hotel use. As such, we determined that a comprehensive office refurbishment scheme. the existing service cores could be retained, but utilising a reconfigured 4th floor and the creation of the additional 5th floor. The indicative layout plans for this option provide a total of 179 bedrooms, as detailed in the summary table.

Option 2 - Utilising the increased floor space Option 1 - Existing layout of the buildings within planning permission

Number of Number of Number of Number of bedrooms suites bedrooms suites

Floor Floor

Ground Floor 18 Ground Floor 18

First Floor 35 First Floor 35

Second Floor 35 Second Floor 35

Third Floor 35 Third Floor 35

Fourth Floor - as existing 29 2 Fourth Floor - Removal of 27 2 current with addition Totals 152 2 Fifth Floor - New addition 25 2 Total rooms 154 Totals 175 4

Total rooms 179

30 Ground floor

First floor

Typical upper floor

A more detailed set of floorplans is available on request.

31 Louisa Ryland House

Hotel market commentary

Birmingham is a major tourism and business destination at the heart of the UK. Birmingham has grown to become an international business hub, finding itself at the forefront of worldwide advances in science, technology and economic development. Alongside the Jewellery Quarter and Victorian Birmingham Museum and Art gallery, which is renowned for its pre-Raphaelite masterpieces, the city is home to an extensive network of canals. Moreover, the city offers an ever increasing number of vibrant restaurants and trendy cafés and bars, along with world class shopping at Bullring, Grand Central, Mailbox amongst other destinations.

Tourism Supply Birmingham Airport is the primary international airport in the The Birmingham hotel market currently comprises 129 hotels region. August YTD 2016, the airport reached a new record (13,409 rooms). Supply is heavily dominated by international with 11 million passengers, a 10% uplift from the same time and national hotel brands, which make up 84% of the room last year. Long haul flights rose 26%, with services to the stock. Approximately 36% of hotel rooms are in the budget Middle East, North America and Europe being the top three segment while the 4-star segment accounts for c. 32%. There growth markets, up 34.1%, 32.6% and 10.8%, respectively. are a total of eight hotels in the pipeline expected to open in New routes to Reykjavik, New York, Madrid, Warsaw, Budapest the next two years, adding c. 900 rooms to the market. and Poznan were added to the airport’s offerings and helped drive growth.

Performance Demand Birmingham’s hotel market is one of the best performing amongst cities in the UK. For the first six months of 2016, A primary demand generator for hotels in the local area is Birmingham achieved a 9.6% RevPAR growth to £48. The the International Convention Centre, Barclaycard Arena and uplift was primarily driven by a 8.9% increase in the average National Exhibition Centre. The NEC is the largest exhibition rate to £66, while occupancy rose a marginal 0.6% to 72.8%. facility in the UK and provides 20 interconnected halls offering c. 190,000 square metres of exhibition space. The site also accommodates the Genting Arena which further offers 16,000 square metres of multi-purpose space. The entire NEC complex attracts over three million visitors per annum. Whilst demand created by the event and airport is critical for hotels, the corporate and tourism market is also a significant generator of room nights.

32 Quick facts 11m Passenger Arrivals at 13,409 Birmingham Airport Current Hotel Rooms ▲ 10%

£48 c. 900 RevPAR New Rooms ▲ 9.6% Expected by 2018 June YTD 2016

72.8% £66 Occupancy Average Rate ▲ 0.6% ▲ 8.9% June YTD 2016 June YTD 2016 Hotel du Vin

Recent openings StayCity Newhall Square 170 rooms, Opened 2016

Park Regis Birmingham 253 rooms, Opened 2016

Aparthotel Adagio, Birmingham City Centre 108 rooms, Opened 2015

Pipeline Premier Inn Birmingham, Broad St (Extension) 32 rooms, Due 2016

EasyHotel Birmingham, John Bright Street 84 rooms, Due 2017

Holiday Inn Express, Arena Central 250 rooms, Due 2017

Grand Hotel, Colmore Row 170 rooms, Due 2018

Hyatt

33 Louisa Ryland House

Further information VAT The property is elected for VAT, and VAT shall therefore be Proposal payable on the purchase price. We are instructed to seek offers for the long leasehold interest, subject to contract Vacant Business Rates and exclusive of VAT. The existing listed buildings are exempt from vacant business Consideration will be given to offers for rates. all or distinct parts of the property (The Newhall Street Building and / or The Energy performance certificates Edmund Street Building). The premises have an EPC rating of C (70). A copy of the Subject to planning offers for all or part certificate is available on request. will also be considered.

Data room A data room has been prepared, containing relevant supporting documents and information. Access is available upon request.

34 Contact

For further information or to arrange an inspection please contact:

JLL – Birmingham Harris Lamb 45 Church Street Grosvenor House Birmingham 75-76 Francis Road B3 2RT Birmingham B16 8SP Ben Kelly T: +44 (0)121 634 6527 Andrew Lamb E: [email protected] T: +44 (0)121 213 6001 E: [email protected] Richard Roberts – Residential T: +44 (0)121 634 6508 Peter Wood E: [email protected] T: +44 (0)121 213 6004 E: [email protected] Gavin Wright – Hotels and Hospitality T: +44 (0)121 634 6598 E: [email protected]

JLL – London 30 Warwick Street London W1B 5NH

Noel Lander T: +44 (0)207 087 5336 E: [email protected]

© Crown Copyright 2012. All rights reserved. Promap licence number 100020449. Jones Lang LaSalle licence number 100017659. This plan is published for the convenience of identification only and although believed to be correct is not guaranteed and it does not form any part of any contract.

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Subject to Contract • Exclusive of VAT • October 2016.

35 Louisa Ryland House