TY ADMIRAL DAVID STREET

CARDIFF

The Amundi Collection Ty Admiral –

INVESTMENT SUMMARY

Admiral Group Plc’s Global Headquarters, a prime landmark headquarters office building completed in 2014.

Located in ’ capital city and administrative centre, adjoining the St David’s Shopping Centre and the 280,000 sq ft John Lewis Department Store.

Situated in the heart of Cardiff’s Central Business District with excellent connectivity to the Cardiff Central & Queen Street Railway Stations and planned Transport Interchange.

Grade A office buildingcompleted in 2014 comprising 206,833 sq ft of principally office accommodation together with three retail units and 120 basement car parking spaces.

25 year lease from 15th September 2014 expiring on 14th September 2039, equating to circa 21.25 years unexpired.

5 yearly upward only rent reviews index linked to the Retail Price Index with a collar and cap at 1.5% and 3.0% per annum compounded annually.

Rental to be topped up to £3,705,560 per annum equating to a very low rent of £18.08 per sq ft, which reflects a significant discount to current prime headline office rents of £25.00 per sq ft.

Let to EUI Limited who have a D& rating of 5 A1.

Guaranteed by Plc who have a D&B rating of 5 A1 and an investment grade covenant with a Moody’s credit rating of A1.

Fully occupied building with up to 3,500 employees based at the property.

BREEAM ‘Excellent’ rating and EPC rating of ‘B 34’.

Opportunity to benefit from substantial capital allowances.

We are instructed to seek offers in excess of £80,900,000 for the entire share capital in the Immo UK Admiral Cardiff S.à.r.l that owns the property, subject to contract and exclusive of VAT. This reflects anet initial yield of 4.50% (assuming acquisition costs of 1.80%).

This reflects alow capital value of £391 per sq ft. PRINCIPALITY SWALEC CARDIFF THE QUEENS CITY HALL STADIUM STADIUM CASTLE HAYES ARCADE LOCATION

TY ADMIRAL DAVID STREET

CARDIFF

CARDIFF QUEEN STREET STATION

CARDIFF CENTRAL STATION

CARDIFF UNIVERSITY CENTRAL CENTRAL ST MARYS CALLAGHAN CENTRAL JOHN ST DAVIDS SHOPPING MOTORPOINT CAPITAL OF SOUTH QUAY SQUARE STREET SQUARE LIBRARY LEWIS CENTRE ARENA QUARTER WALES Ty Admiral – Cardiff 4 | 5

Cardiff is the administrative centre for the and home Cardiff is expected to grow faster than any other UK city in CARDIFF to the internationally recognised Principality (Millennium) Stadium and population terms, 26% over the next 20 years. It is currently ranked . the 6th best shopping destination in the UK, following the completion of the St David’s Shopping Centre and the largest John Lewis store A CAPITAL CITY The city has a resident population of approximately 358,500, which is outside of central London. swelled by over 80,000 full-time students from the city’s expanding higher education sector. A further catchment population in excess of Cardiff is also consistently ranked top in UK quality of life indices – 1.5 million is situated within a 45-minute travel time from the city centre. including Moneysupermarket.com’s 2014 index, the recent EU Urban Audit, and Legal & General’s best city for young people survey. It was Through the Cardiff Master Plan, both Cardiff City Council and Welsh also voted the 3rd best capital city in Europe to live in, following Government are committed to further improving the infrastructure and a recent EU survey in 2017. RESIDENT POPULATION OF economic profile of both Cardiff and its City Region, to consolidate it as 18 million one of the most important regional centres in the UK for occupiers and The public sector is driving forward on the £1.28bn city deal for Tourist visits annually investors alike. These initiatives include: boosting the economy of the Cardiff Capital Region which combines 10 51% c.350,000 local authorities surrounding and supporting the city. The Cardiff Capital Cardiff Capital Region comprises and home to Premier League with 1.5 million people living Cardiff Central Enterprise Zone Region has a Gross Value Added (GVA) of approximately £25 billion, 51% of Welsh Economy Football team, Cardiff City within a 45-minute drive Centred around Cardiff Central Railway Station. This is the accounting for 51% of the Welsh Economy. only Enterprise Zone in the UK dedicated to attracting and growing the financial and professional services sector. Employment within the city is centred on the retail, finance, media and tourism sectors. Major occupiers within the city include Deloitte, Electrification of the main intercity rail line Eversheds, L&G, KPMG, PWC, , , 3 RANKED 6TH This will improve Cardiff’s connectivity via faster journey Welsh Government and, shortly, the BBC. times to London with the work scheduled to be completed by Q4 2018. The city is renowned for hosting some of the world’s most prestigious sporting events such as the UEFA Champions League Final, World & 3rd best European city ALTERNATIVE Investment in Cardiff Central and Queen Street European Rugby Cup Finals, Ashes Cricket Tests and assisting in the TOURIST THE WORLD’S 20% Railway Stations hosting of the 2012 Olympic Games. for quality of life DESTINATION FIRST FREE The UK’s fastest growing Core City with Plans to create new civic scaled public squares to the north and south of the station as high-quality arrival spaces and TRADE CAPITAL EUROPEAN UNION projected population growth of 20% by 2035 “gateways” to the city. Work is already completed on the south side of the station. A1(M) Improved connectivity between the city centre Cardiff is situated 150 miles to the LEEDS M62 and west of London and 40 miles to The Arriva Trains Wales franchise has been retendered M18 in 2018. Two parties have been short listed and an M4 the west of Bristol. It benefits from LIVERPOOL M60 30 M56 announcement on the successful operator is imminent. A470 A48(M) excellent transport links, both from M6 M1 As part of their strategy, they will address the Valley A1(M) Line links into Cardiff Central via Queen Street and the 32 A469 the M4 motorway (Junctions 29- A48 NOTTINHAM introduction of a rapid transport link between the city A470 33) and a mainline rail destination M54 centre and its waterfront. M4 A4054 M42 33 NORWICH A48 with intercity journey times to London IRMINHAM M6 A470 M11 Cardiff Airport M5 and Birmingham of 2 hours, as well CAMRIDE A4232 A1(M) The Welsh Government have acquired the airport looking to M50 CHELTENHAM A4161 CARDIFF CENTRAL as local rail links throughout South boost its profile and increase of the number of airlines and A48 M40 M1 LOCESTER routes around Europe and beyond. This expansion has recently OORD M25 A4232 Wales. Cardiff Airport is located west CARDIFF BAY M4 LONDON included the addition of new routes by Qatar Airways. A48 CARDIFF of the city and provides direct access CARDIFF RISTOL M4 H A4050 M2 C M3 International Convention Centre & Arena to numerous international destinations, M23 M20 ATH DOVER Work is underway to construct a new Convention Centre M5 which has recently expanded with SOTHAMPTON M27 at Celtic Manor Resort in Newport. In addition, a site in A4226 RIHTON Cardiff Bay has been earmarked as a potential location for the addition of a new carrier (Qatar ORNEMOTH A4050 EETER a new state of the art arena with a capacity of 10,000+. BARRY Airways) in 2018. A4050

A4226 Academic Profile CARDIFF INTERNATIONAL RISTOL BARRY 80,000 students from , Cardiff AIRPORT CHANNEL Metropolitan University, University of and the Royal Welsh College of Music and Drama. RHOOSE Ty Admiral – Cardiff 6 | 7

LOCATION

Admiral Group Plc’s Headquarters are

A CARDIFF S 4 t

1 a

CASTLE 6 t i situated in a prominent location at the 1 o n

T e t r ee r CARDIFF Str a entrance to the St David’s Shopping en c Que e QUEEN STREET C h u Centre, with the property fronting onto r c h i ll W a y David Street, just off Bridge Street and treet e S H Duk t i e g e h r t S QUEENS S the corner of Churchill Way. t r d e ARCADE r e fo t ld ui G

et re St ge C rid h B u W r e c st h g i l a l t e 4 W St re a et ST DAVID’S y T h SHOPPING e

H CENTRE a y S e t s M t a ree r THE St y m da S A t ARCADES r e e 3 t t r Stree PRINCIPALITY Tredega JOHN LEWIS t STADIUM ree St 2 rk 1 ce KEY Pa ra er CARDIFF CENTRAL e T et ut tre LIBRARY B k S 1 John Lewis Par et tre d S oo W t 2 CENTRAL SQUARE ree CAPITAL St B se u ou t QUARTER Custom H e NEW TRANSPORT S t r 3 Principality Stadium INTERCHANGE e S e t t M

a r y

S 4 St David’s Shopping Centre t t r ee CARDIFF CENTRAL e CALLAGHAN tr e t S t er rb SQUARE He

5 Wales Millennium Centre

B CENTRAL QUAY u t e S t r e e t 1

2 3 4 The property has excellent prominence overlooking St David’s Shopping Centre as well as adjoining the Motorpoint Arena. It is also within close proximity to the Radisson Hotel Tower, Central Square and Callaghan Square, the prime city centre office location, as well as Central Station. The entire area has seen a dramatic transformation since the opening of the second phase of the St David’s Shopping Centre and the on-going Central Square Development.

The area has attracted significant occupiers that include John Lewis who occupy a 280,000 sq ft stand alone retail unit, and in the office sector occupiers include Eversheds, ING, Lloyds , Zurich , Arriva Trains, Allied Irish Bank, AA, Deloitte, and Network Rail.

Cardiff Council’s objective for Cardiff is to further enhance this entire area, thus consolidating the central business district as well as promoting the ‘Central Area Core’ focussed on Cardiff Central Station and the Principality Stadium. Ty Admiral – Cardiff 8 | 9

5 CONNECTIVITY

Cardiff has outstanding road, rail and air communications. The city is situated on the M4 motorway, and lies approximately 236 km (147 miles) from London in the east. South Wales links via the M50 and M5 motorways to the Midlands and south west of England. Almost 80% of the UK population lives within a 4-hour drive of Cardiff.

DISTANCE BY ROAD NATIONAL RAIL TIMES FROM CARDIFF

London 236 km 147 miles London 2 hours Bristol 69 km 43 miles Bristol 50 minutes Birmingham 182 km 113 miles Reading 1 hour 35 minutes Swansea 67 km 41 miles Birmingham 1 hour 59 minutes Newport 24 km 15 miles Manchester 3 hours 10 minutes

High speed rail services give rapid access to all major cities across the Electrification of the railway between London Paddington and Cardiff UK. Cardiff Central Station is one of the principal stations on the Great Central is set to be completed in Q4 2018 reducing best travel times Western Line. to 1 hour 45 minutes.

Cardiff Central Station is also the hub of an extensive Valley Line Network Cardiff has its own international airport located 19.2 km (12 miles) serving the inland towns of south east Wales, from where a significant from the city at Rhoose. The airport serves many national and European proportion of the city’s work force is drawn. The delivery of an integrated destinations. Cardiff Metro system has been allocated up to £730m from the Cardiff Capital City Region Deal. The project may include the introduction of London’s Heathrow airport is less than a two hour drive or rail journey a light rail system to Cardiff alongside delivery of a major upgrade to from the city. the existing rail network around Cardiff, which will be centred on Cardiff Central Station. A contract will be awarded to an operator in 2018. Ty Admiral – Cardiff 10 | 11

CAPITAL QUARTER CARDIFF JR Smart is currently on site developing Number 3&4 Capital Quarter, a 75,000 sq ft and 96,000 sq ft of speculative office, respectively. This is INWARD INVESTMENT & in addition to the already completed Number 1 & Number 2 Capital Quarter office buildings which are now nearly fully let to tenants including, Finance MAJOR DEVELOPMENT SCHEMES Wales, Parsons Brinckerhoff, Alert Logic and Welsh College of Nursing. A 350-unit student housing block is also under construction with further plans for a 200-unit PRS scheme.

Cardiff has enjoyed substantial development and regeneration in the last 20 years including the creation of Cardiff Bay, the Bute Town Tunnel link road, Principality Stadium and St David’s Shopping Centre.

DUMBALLS ROAD These schemes have helped to draw Vastint (part of the IKEA Group) has bought 24 acres comprising the attention to the city and have provided Embankment site on Dumballs Road where it plans to build a mixed-use the catalyst to further large scale scheme including new and affordable housing. The site previously had planning consent for 2,000 homes. developments with Callaghan Square, the redevelopment of Cardiff Central

Station, Central Square, Central Quay, CENTRAL QUAY and Capital Quarter. All of these Directly to the south of Cardiff Central Station, Brains and Rightacres have entered schemes are within a short distance of into a joint venture on the site with master planning ongoing for a mixed-use scheme that could provide 3 million sq ft of development. The first phase Ty Admiral. These are the exciting next of this scheme, The Ledger Building, which is a c.260,000 sq ft speculative office phases of development within Cardiff’s building is currently in the planning system. CENTRAL SQUARE Core Area adding up to an ongoing A joint venture between Cardiff Council and Rightacres to comprehensively redevelop the north side of Cardiff £5bn investment programme. Central Station. The 165,000 sq ft BBC Wales Headquarters building, shortly to be completed, is a central feature. One Central Square, a 135,000 sq ft Grade A office building, has already been completed and fully let with Two Central Square, an office building of 145,000 sq ft under construction and fully pre-let. The scheme will extend to over 1 million sq ft with a 270,000 sq ft office building proposed for HMRC to house 2,000 workers and include a 33,000 sq ft public square comprising outdoor cinema and café area.

CARDIFF CENTRAL STATION Network Rail has announced plans for a major redevelopment of the station to increase capacity and significantly enhance services provided. The scheme could include further mixed-use development along with the development of the Network Rail South Car Park to include TRANSPORT INTERCHANGE a multi-storey car park to increase the Adjacent to Central Square is the Interchange site, a former car park site now parking capacity to 1,000 cars and add the subject of a £100m mixed-use scheme. It will become Cardiff’s Central potential for further office, leisure, retail bus interchange and also provide ground floor retail facilities, residential and residential accommodation. accommodation and 80,000 sq ft of offices in a 14-storey building. Ty Admiral – Cardiff 12 | 13

DESCRIPTION

Ty Admiral is a highly specified landmark office building in the heart of central Cardiff with a BREEAM rating of ‘Excellent’. The fourteen storey PROPERTY building was completed in November 2014 as a design and build for Admiral Group Plc’s new corporate headquarters.

The building comprises two levels of basement car parking, two ground floor double height retail units, a third retail unit, office and reception areas, a mezzanine level plus 11 upper floors of office accommodation. The office space benefits from small atria features incorporated on alternating floors on the north and south elevations.

The building provides a total floor area of approximately 206,833 sq ft with offices accounting for around 202,971 sq ft and the retail 3,862 sq ft. The office floorplates typically provide circa 17,100 sq ft of open plan accommodation around a central core with excellent natural daylight.

The elevations are of Portland stone coloured pre-cast concrete framing plus glazed and aluminium curtain walling together with extruded aluminium fins to provide solar shading with flat roofs which are part terraced/paved with views over central Cardiff. The building is of steel frame structure around a central core and in-situ concrete slabs on metal decking and the internal walls are of concrete blockwork, plasterboard and metal or timber studs with acoustic treatment.

Internally the building provides fully accessible raised floors with a minimum 150mm clear void and suspended ceilings throughout. The offices provide a clear floor to ceiling height of circa 2.80 metres and floor level height of 3.96 metres.

The building, arranged around one central core, contains three stairwells two serving all floors and a third serving ground, mezzanine and first floors only. Male, female and disabled WCs together with seven lifts are all provided within the main building core. In addition one lift in the main office is allocated as the service/goods lift accessing all office floors, ground floor and the upper basement level.

The building benefits from a four pipe fan coil air conditioning system to meet the heating and cooling loads of the building. Chillers are located on the roof together with air conditioning units. The fresh air is provided by the air handling units delivered via duct work into the accommodation via ceiling mounted grills. Air is extracted from the office areas through dedicated extractor grills in the suspended ceiling. A high quality lighting scheme has been provided to the entrance reception, atrium areas together with lighting to common parts.

The building benefits from a fire detection system to include sprinklers on the ground and all upper floors, an alarm system, together with lightning protection system. The building benefits from mains electricity, gas, telecoms and water services.

Externally, the building is paved and lit to match the surrounding public landscaped areas. Ty Admiral – Cardiff 14 | 15

SPECIFICATION

The main design features and landlord base build specification include:

• Typical upper floorplate of 17,100 sq ft (NIA)

• Designed for a maximum occupancy of 3,000

• Seven passenger lifts arranged in two separate of which six have a loading capacity of 1,600 kg (21 people) and a seventh with a loading capacity of 1,275 kg (17 people)

• Upper basement loading bay facility

• Floor to ceiling height of 2.80 metres in main office areas

• Floor level heights of 3.96 metres in main office areas

• Floor loadings at 3.0 kn/sq m (superimposed load) to the main office floors

• Raised access floors (250mm) to include carpets

• Suspended ceiling tiles to offices are mineral fibre

• High quality lighting systems throughout with LED lighting to the atrium/reception areas and LG7 lighting to the main office accommodation

• Four pipe fan coil high efficiency air conditioning

• Sophisticated BMS control system

• Solar control glazing and solar shading

• Male and female WCs (six each per main office floor) plus disabled WCs provided on all floors

• Secure basement car parking providing 120 spaces including 4 disabled (1: 1,691 sq ft) together with cycle racking and motorbike parking

• High quality external environment and landscape

• Photovoltaic electrical generating system to meet carbon reduction targets Ty Admiral – Cardiff 18 | 19

ACCOMMODATION

The property has been measured in accordance with both the RICS Code of Measuring Practice (6th Edition) and the Funding Agreement by Plowman Craven providing the following internal floor areas:

FLOOR USE NET INTERNAL AREAS FUNDING AGREEMENT AREAS (SQ M) (SQ FT) (SQ M) (SQ FT) Level 11 Office 1,578.7 16,993 1,589.8 17,112 Level 10 Office 1,574.1 16,943 1,585.5 17,066 Level 9 Office 1,579.6 17,003 1,590.7 17,122 Level 8 Office 1,573.8 16,940 1,585.7 17,068 Level 7 Office 1,578.3 16,989 1,589.5 17,109 Level 6 Office 1,572.5 16,926 1,583.8 17,048 Level 5 Office 1,578.3 16,989 1,589.7 17,111 Level 4 Office 1,573.5 16,937 1,584.6 17,056 Level 3 Office 1,579.0 16,996 1,589.9 17,114 Level 2 Office 1,574.1 16,943 1,585.3 17,064 Level 1 Office 1,616.7 17,402 1,624.3 17,484 Mezzanine Comms/Ancillary 403.1 4,339 676.2 7,279 Ground Reception/Office 652.7 7,025 681.7 7,338 SUB TOTAL 18,434.4 198,425 18,856.7 202,971

Ground Retail A 253.9 2,733 253.9 2,733 Ground Retail B 73.6 792 73.6 792 Ground Retail C 31.3 337 31.3 337 SUB TOTAL 358.8 3,862 358.8 3,862

TOTAL 18,793.2 202,287 19,215.5 206,833

The property has been measured in accordance with both the RICS Code of Measuring Practice (6th Edition) and the Funding Agreement. Copies of both measured surveys, undertaken by Plowman & Craven, are provided within the data room and are capable of being assigned and relied upon by the purchaser.

The property has also been measured in accordance with the new RICS Property Measurement (1st Edition), which incorporates the new International Property Measurement Standards (IPMS). The measured surveys have been undertaken by Plowman Craven, copies of which are provided within the data room and are capable of being assigned and relied upon by the purchaser.

The property comprises a site of 0.236 hectares (0.58 acres). Ty Admiral – Cardiff 18 | 19

FLOOR PLANS

GROUND FLOOR LEVELS 2, 4, 6, 8 & 10 11,200 sq ft (1,040.5 sq m) 17,048 - 17,068 sq ft (1,583.8 - 1,585.7 sq m)

Retail C

DAVID STREET DAVID STREET

BRIDGE STREET

BRIDGE STREET

Retail A Retail B

MEZZANINE FLOOR LEVELS 3, 5, 7, 9 & 11 7,279 sq ft (676.2 sq m) 17,109 - 17,122 sq ft (1,589.5 - 1,590.7 sq m)

DAVID STREET DAVID STREET

RIDE STREET BRIDGE STREET

KEY

OFFICES KEY

LIFTS OFFICES

RETAIL LIFTS

CORE CORE

Floor plans are not to scale and for indicative purposes only and the floor areas are based upon the Funding Agreement. A copy of the floor plans is available in the data room. Floor plans are not to scale and for indicative purposes only and the floor areas are based upon the Funding Agreement. A copy of the floor plans is available in the data room. Ty Admiral – Cardiff PRINCIPALITY ST MARY CARDIFF JOHN LEWIS STADIUM STREET CASTLE

TENURE

The property is held on a 250 year lease at a peppercorn from 22nd March 2012 and expiring on 21st March 2262. The freeholder is the County Council of the City and County of Cardiff. The tenant is obliged to keep the property in good repair, insured and to pay future rates, taxes and other impositions in respect of the property. The headlease has a wide permitted use that includes offices and ancillary uses within Class B1 and/or any use within Classes A1, A2, A3 or C3 as well as any other uses, subject to landlord’s reasonable consent.

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TENURE / TENANCY r The title number is CYM554643. a c Line of Posts e

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Ty Admiral CENTRAL Shelters ta b S Su El

Multi Car Pk

TCB

Motorpoint Arena Cardiff

T E E R T S T N M E A IC L R L Y I M A N N S T R E E T

CARDIFF CENTRAL ST DAVIDS MOTORPOINT CARDIFF QUEEN QUEEN STREET Not to scale. For identification purposesT only. This plan is based upon the Ordnance Survey E LIBRARY SHOPPING CENTRE ARENA STREET STATION E R T Map with the sanction of the controller S of H.M. Stationery Office. Crown Copyright. R A 0m 10m 20m 30m G E D E R T

Ordnance Survey © Crown Copyright 2018. All rights reserved. Licence number 100022432. Plotted Scale - 1:1250 Ty Admiral – Cardiff 22 | 23

TENANCY TENANT COVENANT

The key terms of the lease are as follows: ADMIRAL GROUP PLC (GUARANTOR)

Admiral Group operates 15 brands around the world, including the following UK brands: TENANT EUI Limited (Company No. 02686904) GUARANTOR Admiral Group Plc (Company No. 03849958) TERM 25 years from 15th September 2014 expiring on 14th September 2039 Since its launch in January 1993, DEMISE Whole building to include basement levels of car parking, the internal and external envelope of the

building together with hard and soft landscaping to the footprint of the building (see OS plan) the Admiral Group has become RENTAL The initial rent is £3,439,673 per annum (the vendor will top up the rent to £3,705,560 per annum until a highly profitable and fast-growing 15th September 2019) financial services company, now Since the launch of Admiral 25 years ago, they have posted ‘record profits’ on 23 separate RENT £16.75 per sq ft on the main office area, £13.00 per sq ft on the mezzanine area and £16.75 per sq ft on employing over 9,000 people across PER SQ FT the ground floor retail units, based upon initial rental occasions. During 2016, the Admiral Groups customer numbers exceeded 5million for the first time its offices in the UK. and now stands at around 5.73million. All of Admirals growth has been organic, with customer RENT REVIEW 15 September 2019, 2024, 2029 and 2034 DATES numbers increasing every year from the company’s inception in 1993, through to 2017. Admiral entered a new phase in 2004 when RENT REVIEW The rent is to be reviewed on a 5 yearly upward only basis to the Retail Price Index (RPI) with a collar and it floated on the . Admiral Group Plc released results for the year ending 31st December 2017, with record profits cap at 1.5% and 3% respectively compounded annually The float represented the biggest capital coupled with continued strong growth. Profit before tax was £403.5 million, a jump of 43% REPAIR Full repairing and insuring lease raising for a Welsh company ever and compared to 2016, whilst turnover rose 15% to £2.96 billion. Dun & Bradstreet ascribed a credit ALIENATION The ability to assign or underlet the whole or underlet parts with landlord’s consent not to be Admiral Group became the highest valued rating of 5A1 representing their top credit rating and lowest level of overall risk with a minimum unreasonably withheld, subject to an Authorised Guarantee Agreement public company in Wales. In December 2007 risk of business failure. Admiral became the second Welsh company USE The permitted use is a combination of offices and ancillary uses within Class B1; and/or A2; and in to join the FTSE Top 100 Companies. Admiral Group Plc have an investment grade covenant with a Moody’s credit rating of A1. respect of the ground floor and any mezzanine level Classes A3; and in respect of Retail Units Class A1

The Admiral Group offers home, car and ADMIRAL GROUP PLC FISCAL FISCAL FISCAL travel insurance, as well as personal loans RENTAL TOP UP NON CONSOLIDATED NON CONSOLIDATED NON CONSOLIDATED and car finance in the UK. The company 31-DEC-17 31-DEC-16 31-DEC-15 The vendor will top up the rental to the 15th September 2019 rent review based upon the minimum uplift of 1.5% per annum has operations in France, Italy, Spain, (£000’S) (£000’S) (£000’S) compounded, which equates to £3,705,560 per annum. USA, Canada, India and Mexico. Admiral’s Turnover £2,960,100 £2,580,000 £2,120,000 customer base includes higher premium Oxford Economics project average RPI growth of 3.15% per annum for the 20 year period following the September 2019 rent review. business, such as city-dwellers, younger Profit Before Taxes £403,500 £278,400 £368,700 drivers and motorists with performance cars; Tangible Net Worth £496,400 £419,400 £490,600 people who traditionally found it difficult to Customer numbers 5.73M 5.15M 4.43M UNDERLETTINGS (RETAIL) get motor insurance from the main volume Retail A is let to Stable Bar Restaurant on a 15 year lease from 2nd October 2015 at a passing rental £70,000. providers. Retail B is let to NSSB Cardiff Limited (trading as ‘Bru’) on a 10 year lease from 9th March 2018 at a passing rent of £25,000. EUI LIMITED (TENANT) EUI Limited is the principal subsidiary of the Admiral Group Plc, which offer services in direct motor insurance brokerage and providing other shared group facilities to the organisation.

EUI Limited have a Dun & Bradstreet rating of 5A1, which represents a minimum risk of business failure.

EUI LIMITED FISCAL FISCAL FISCAL NON CONSOLIDATED NON CONSOLIDATED NON CONSOLIDATED 31-DEC-16 31-DEC-15 31-DEC-14 (£000’S) (£000’S) (£000’S) Turnover £167,415 £162,235 £180,712 Profit Before Taxes £236,124 £315,529 £305,992 Tangible Net Worth £98,332 £51,473 £151,006 Ty Admiral – Cardiff 24 | 25

THE FUTURE CARDIFF OFFICE Cushman & Wakefield are aware of Grade A office requirements in excess of 300,000 sq ft for central Cardiff, which coupled with the ongoing lack of Grade A supply and low rents relative to other major regional centres, points to further rental growth going forward. This trend has prompted the development of LETTING MARKET No.3 and No.4 Capital Quarter along with the planning application for The Ledger Building at Central Quay.

BUILDING TENANT AREA (SQ FT) RENT (PER SQ FT) TERM DATE MARKET No.3 Capital Quarter Which? Limited 11,550 £24.00 10 Mar-18 Cardiff is the principal office market within Wales, and one of the major regional centres HMRC Building HMRC 269,228 Confidential 25 Aug-17 in the UK, with an estimated office stock of approximately 11 million sq ft. The central Two Central Square Cardiff University 45,736 £25.00 25 Mar-17 Cardiff office market is made up of three distinct areas, the CBD, surrounding Cardiff Two Central Square Solicitors 100,000 £25.00 15 Dec-16 Central railway station, Cardiff Waterside and the out of town business parks. One Central Square 16,633 Confidential 15 Aug-16 One Central Square Motonovo Finance 73,500 £25.00 15 Aug-16

Currently, the city centre office market is focused around Central Square, Callaghan Square and Capital BBC Wales HQ BBC 165,000 £24.00 20 Dec-15 Quarter which together extends to circa 700,000 sq ft of Grade A office accommodation. 2017 saw record office take-up figures reaching 703,926 sq ft following on from a previous record year in 2016 of 685,640. The 10-year average office accommodation take-up figure now stands at 510,000 sq ft. CARDIFF TOTAL OFFICE TAKE-UP, RENT – STEADY GROWTH SINCE 2011 LAST 14 YEARS (Including Bay, City Centre & Out of Town) Prime Headline Rents now set at £25 per sq ft at One Central Square Central Square is being developed by Rightacres and Cardiff City Council with forward funding from Legal &

General. The first phase of office development, One Central Square, completed in 2016 and is fully let with 800000 0 new headline rents at £25.00 per sq ft for the city being secured. In addition, the BBC have committed to 7026 occupying a new 165,000 sq ft Foster & Partners designed office building, with completion due in 2018 and 700000 68640 6000 Hugh James Solicitors (100,000 sq ft) and Cardiff University (45,736 sq ft) take occupation of Two Central 616000 600000 Square in Q4 2018 also let at £25.00 per sq ft. 4000 0000 421 0000 2 00000 440000 Cardiff Waterside is dominated by the National Assembly for Wales which occupies Crickhowell House 42000 400000 80000 (Tŷ Hywel) along with the which houses the debating chamber and committee rooms. 400000 6000 10 YEAR AVERAGE 28000 Headline rents at Cardiff Waterside are currently at £23.00 per sq ft. Office demand within Cardiff Bay is 00000 20 driven by the ongoing expansion of National Assembly for Wales’ Role, the Creative Arts Sector expansion 200000 and inward investment by new occupiers being drawn to the city. 100000 The profile of Cardiff Bay continues to grow as leisure based activities, focused around the Welsh Millennium 0 1 Centre (WMC) and rises. The WMC is now seen as the centre of Creative Arts in Wales 2004 200 2006 2007 2008 200 2010 2011 2012 201 2014 201 2016 2017 while the BBC’s Drama Village is establishing the Bay as a location for media production companies. The 2011 2012 201 2014 201 2016 2017 2018 development of a rapid transport link between Cardiff’s waterfront and city centre remains on the agenda for both Welsh Government and Cardiff Council. CARDIFF TOTAL OFFICE TAKE-UP (SQ.FT), LAST 8 YEARS BY LOCATION Grade A supply is at a low level in the city at around 100,000 sq ft available in the city centre. This equates

to approximately 5.3 months of Grade A supply based on historic take-up levels. The lack of Grade A supply 600000 has encouraged further development in the city, No 3 Capital Quarter (75,000 sq ft) and No 4 Capital Quarter (100,000 sq ft), both under construction and expected to be delivered in early 2018. 00000 587,32 475,45 477,612 451,022 Cardiff was the only major regional UK office market to see growth in headline rents during the downturn with rents rising in 2009 to £21.00 per sq ft and £22.00 per sq ft in 2012. This has now grown further in 2016 to 400000 £25.00 per sq ft, still well below nearby Bristol (£32.50 per sq ft) and Birmingham (£31.50 per sq ft). Quoting rents on the latest development of Grade A buildings at Central Quay (The Ledger Building) are set to be 00000 £27.00 per sq ft. 268,684 23,0 200000 2101 11,772 183,050 1667 KEY

178 1216 100000 11478 CITY CENTRE 780

46 7160 60274 721 6204 7144 OUT OF TOWN 8827 41824 412 680 0 BAY

2010 2011 2012 201 2014 201 2016 2017 Ty Admiral – Cardiff 26 | 27

UK INVESTMENT MARKET ANNUITY / LONG INCOME TRANSACTIONS ADDRESS PRICE NIY CV TENANT LEASE TERMS AREA DATE PURCHASER (PER SQ FT) (SQ FT) India House £125.00M 3.74% £400 HMRC 21 years term certain with 5 yearly 314,610 Mar-18 L&G Liverpool RR linked to RPI with a cap and collar of 0%-4% pa compounded with year 20 to MR. The investment market for high quality regional office investments remains very strong, characterised Premier Inn £34.00M 4.06% – Premier Inn 20 years term certain with 5 yearly - Dec-17 by high volume of UK and overseas capital being constrained by a lack of appropriate stock. Total volumes Custom House Street Hotels Ltd with RR linked to RPI with a cap and Investors Cardiff guarantee from collar of 0%-4% pa compounded. in 2017 across the top 10 regional markets exceeded £3.3bn, well ahead of the long-term average, with overseas FUNDING investors the most active, attracted by the UK’s political stability and favourable exchange rates. Investors are Group Plc principally targeting modern, well located offices situated in core locations with strong tenant demand and NHS Car Park £32.20M 2.60% – Plymouth 35 year lease with annual RR linked - Dec-17 Aviva Bircham Park Hospitals NHS to RPI with a cap and collar of 2%- Investors limited speculative development, such as Cardiff. Plymouth Trust 5% pa compounded. GPU £133.20M 3.54% £445 Government 25 year lease with 5 yearly RR 265,000 Sep-17 L&G Central Square Property Unit linked to RPI with a cap and collar Cardiff of 0%-4% pa compounded. FUNDING Peninsula & £43.87M 3.30% £465 South West 30 year lease with 5 yearly RR 94,158 May-17 British Steel Fernworthy House Water linked to RPI with a cap and collar Exeter of 1%-4% pa compounded. Atkins £47.60M 4.10% £504 Atkins Limited 25 year lease with annual RR linked 92,613 Jan-17 L&G Woodcote Grove to RPI with a cap and collar of 0%- Liverpool 4% pa. 3 Glass Wharf £72.65M 4.04% £653 HMRC 25 year lease with 5 yearly RR 114,830 Nov-16 L&G Bristol linked to RPI with a cap and collar FUNDING of 0%-4% pa compounded.

CARDIFF INVESTMENT TRANSACTIONS

ADDRESS PRICE NIY CV TENANT(S) LEASE TERMS AREA DATE PURCHASER (PER SQ FT) (SQ FT) 1 Callaghan Square Quoting Quoting £282 Eversheds Sutherland AWULT of 4 years 93,670 U/O U/O Cardiff £26.40M 6.50% LLP 2 Callaghan Square Quoting Quoting £329 Allied Irish Bank, AWULT of 4.5 years 45,208 Mar-18 Daily Mail Cardiff £14.88M 5.97% Church of Wales Pension Fund & AON Investment into Cardiff offices totalled around £290 million Demand for long income annuity style investments has grown 2 Capital Quarter £23.20M 6.40% £274 Cardiff University AWULT of 7.5 years 84,759 Dec-17 in 2017, with overseas investors accounting for just over 40% strongly over the past few years as pension funds and annuity Cardiff & Hugh James LLP Pension of total investment. This investor demand was particularly providers have sought to match liabilities with RPI linked Fund notable with the sales of One and Two Central Square, which investments let to strong covenants. Given the trend towards One Central Square £51.00M 5.50% £378 Motonovo Finance AWULT of 9.5 years 135,333 Jul-17 Aerium both secured strong interest from a diverse range of investors, shorter leases the market is not naturally catering towards Cardiff & Studio Tri including UK Pension Funds, Opportunity Funds and overseas this product, and much of this stock is therefore having to be investors. created through sale and leaseback, or more frequently new Two Central Square £56.60M 6.25% £418 Hugh James & AWULT of 18.1 years 145,736 Oct-16 Credit development. Cardiff Cardiff University Suisse Asset Domestic and overseas investors are expected to continue to Management target high quality regional investment stock over the short to 3&4 Callaghan Square £32.13M 6.13% £287 British Gas, Zurich AWULT of 7.93 years 112,024 Jan-16 Deutsche medium term, with a lack of available stock continuing to be Cardiff Insurance & British Asset the main barrier to entry. Markets with significant infrastructure Transport Police Management improvements, a buoyant private and public sector and a lack of Grade A stock are expected to remain particularly sought- after, with genuine rental growth anticipated. Ty Admiral – Cardiff 28 | 29

ADDITIONAL HEADLEASE SUMMARY INFORMATION

DEBT OPPORTUNITY DATE REPAIR This asset is an attractive opportunity for traditional lenders. Indicative lender 22 March 2012 The Tenant is obliged to keep the property interest has already been expressed, drawn by the property’s prime location, in repair and to use reasonable endeavours long-term secure income and good quality office accommodation. LANDLORD to keep the external areas of land, roads, entrances or pavements forming part of the The County Council of the City and County The following headline financial terms should be achievable for an asset of property in a clean and tidy condition. of Cardiff this profile:

ALTERATIONS TENANT LTV 55% 60% There are no restrictions on alterations Immo UK Admiral Cardiff S.à r.l. “All In” interest costs (assuming 5-year 2.95% - 3.10% 3.10% - 3.25% (including structural and external alterations) SWAP rate of 1.35% as at May 2018) other than a requirement for the Tenant TERM to obtain and comply with all necessary

250 years from and including 22 March planning permissions and any other permits Our Cushman & Wakefield Debt & Structured Finance team are available to 2012. and consents required under statute. assist with debt terms and sourcing of capital. Please contact: Landlord’s consent is not required for any alterations. James Spencer-Jones PREMISES [email protected] The land and the buildings constructed on INSURANCE +44 (0)20 7152 5524 it at Bridge Street and David Street, Cardiff known as Admiral House, David Street, The Tenant is responsible for keeping the VAT Cardiff CF10 2EH. building on the property insured for its full reinstatement cost with an insurance office We understand that the property is elected for VAT and therefore VAT will be of repute. payable on the purchase price. USER Office and ancillary uses within Class B1 ENVIRONMENTAL PERFORMANCE and/or any use within Class A1, A2, A3 or C3 of the Town and Country Planning (Use The property has been assessed with a BREEAM rating of ‘Excellent’. A copy is Classes) Order 1987. available in the data room.

The property has been assessed with an EPC rating of B 34. A copy is available in RENT the data room. A peppercorn.

CAPITAL ALLOWANCES ALIENATION It is anticipated that any capital allowances may be available to qualifying Assignment and underletting is permitted parties. Further details of these, are available in the data room. without Landlord’s consent.

DATA ROOM Data room access can be provided upon request, which contains the following information:

• Corporate Information • Title Documents • Occupational Documents • Reports (inc. Measured Survey, Environmental Survey, Capital Allowances & D&B Reports) • EPC • Construction Documents • Management Information Ty Admiral – Cardiff

PROPOSAL

We are instructed to seek offers in excess of £80,900,000 for the entire share capital in Immo UK Admiral Cardiff S.à.r.l that owns the property, subject to contract and exclusive of VAT.

This reflects a net initial yield of 4.50% (assuming acquisition costs of 1.80%). This reflects a low capital value of £391 per sq ft.

Ty Admiral, Cardiff is part of the Amundi Collection of eight UK properties located in London, Glasgow and Cardiff. These assets are available individually or as a portfolio.

Full details can be found at www.amundicollection.com

CONTACTS

For further information or to arrange a viewing, please contact:

NICK ALLAN ANDREW GIBSON BEN COOK JASON WINFIELD

T: +44 (0)117 910 5282 T: +44 (0)2920 262 246 T: +44 (0)20 3296 3632 T: +44 (0)20 3296 2116 | SAENTYS.COM | [email protected] 8717 +44 (0)20 7407 SAENTYS ­­ BROCHURE DESIGNED AND PRODUCED BY M: +44 (0)7803 891 705 M: +44 (0)7834 449 163 M: +44 (0)7958 902 023 M: +44 (0)7768 695 126 E: [email protected] E: [email protected] E: [email protected] E: [email protected]

Important Notice Cushman & Wakefield gives notice to anyone who may read these particulars as follows: 1. These particulars are prepared for the guidance only of prospective purchasers. They are intended to give a fair overall description of the property but are not intended to constitute part of an offer or contract. 2. Any information contained herein (whether in the text, plans or photographs) is given in good faith but should not be relied upon as being a statement or representation of fact. 3. Nothing in these particulars shall be deemed to be a statement that the property is in good condition or otherwise nor that any services or facilities are in good working order. 4. The photographs appearing in this brochure show only certain parts and aspects of the property at the time when the photographs were taken. Certain aspects may have changed since the photographs were taken and it should not be assumed that the property remains precisely as displayed in the photographs. Furthermore no assumptions should be made in respect of parts of the property which are not shown in the photographs. 5. Any areas, measurements or distances referred to herein are approximate only. 6. Where there is reference in these particulars to the fact that alterations have been carried out or that a particular use is made of any part of the property this is not intended to be a statement that any necessary planning, building regulations or other consents have been obtained and these matters must be verified by any intending purchaser. 7. Descriptions of a property are inevitably subjective and the descriptions contained herein are used in good faith as an opinion and not by way of statement of fact. 8. All photographs are for indicative purposes only. June 2018