Leeds Central Portfolio

132 modern apartments 3 prime, city centre locations 2 I Leeds Central Portfolio Executive Summary

• A well established and professionally managed portfolio of 132 modern apartments spread across 9 blocks in 3 central locations

• Strong rental demand with the portfolio enjoying consistently high occupancy rate – which is currently at 94% Offers are invited for the

• Leeds City Region acts as the regional centre for Yorkshire whole of our clients long and Humber with an economic output of £65.5 billion leasehold interests by and the 3rd fastest growing city centre population in the UK 5:00pm on Tuesday 11th • High tenant retention rate with an average occupancy time of 2.62 years across the portfolio December

• Diverse locations with each providing quick access to different elements of the city core

• 20 of the apartments are subject to a “covenant-lite” affordable housing s106 agreement • Unit mix of studio, 1 bedroom and 2 bedroom apartments Estimated vacant • Total current income of £864,000 rising to £927,000 on letting possession value of circa of current voids with significant further proven reversion to realise through active management £20 million

• Opportunity for short term rental growth through letting of vacant units and reviewing passing rents on let units to ERV 3 I Leeds Central Portfolio Portfolio Analysis

Accommodation Income Outgoings

Location Total Units Studios 1 bed 2 bed Vacant Passing Rent ERV Service Charge Ground Rent

WATERLOO STREET

Waterloo Apartments 20 0 14 6 1 £129,000 £142,860 £26,153.2 -

Waterloo Court 11 0 10 1 1 £66,780 £78,660 £13,178 £2,763.75

GATEWAY

Gateway - North, South, East 45 4 23 18 4 £287,520 £340,920 £53,986.14 £11,030.22

CLARENCE DOCK

Crozier House 7 0 2 5 0 £55,080 £59,040 £12,475.94 £1,750

LaSalle House 30 0 19 11 1 £204,600 £227,160 £43,000.97 £7,562.15

Cartier House 18 0 16 2 1 £113,142 £127,302 £21,412.5 £4,537.29

McLintock House 1 0 0 1 0 £8,700 £8,700 £2,064.46 £250.00

132 4 84 44 8 £864,822 £984,642 £172,271 £27,893

Leeds Central Portfolio 4 I Leeds Central Portfolio Portfolio Analysis

3% 31 20% Net Income Location Analysis Net Income 56 Total Gross rent (£665,168.75) Waterloo Street 132 £864,822 Service Charge Gateway (£172,271.21) Leeds Dock 45 77% Ground Rent (£27,893)

4 Reversionary Potential

£1,100,000 44 Accommodation Mix Total £825,000 Studio 132 1 bed £550,000 84 2 bed

£275,000 ERV Income upon full occupancy Income £0 Rent Passing

Leeds Central Portfolio WOODHOUSE 5 I Leeds Central Portfolio MOOR Leeds City Region Location

THE UNIVERSITY INNER RING OF LEEDS RO AD

Air

LEEDS A BECKETT 5 Leeds is serviced by Leeds / Bradford International airport, 9 miles north west 8 UNIVERSITY QUEEN ( SQUARE M EDINBURGH of the city centre. The airport has 4.1 million passengers per annum and flies ARENA ) GLASGOW W NEWCASTLE to 65 domestic and international locations. A flight to London is operated four O LOVELL LEEDS GENERAL O PARK INFIRMARY D times daily by British Airways at a flight time of 1hr and 15 mins. H (LGI) O U

MERRION HULL L LEEDS HANOVER MILLENNIUM A CENTRE WADE LANE N Rail SQUARE SQUARE E

( A LIVERPOOL MANCHESTER 6 SHEFFIELD Leeds Station is the third busiest British railway station outside of London 6 MERRION STREET MABGATE 0 YORK ROAD (A64)

) CALVERLEY ST CALVERLEY serving 30 million passengers through 17 platforms. The station provides LAW BIRMINGHAM PARK LANE COURTS THE LIGHT ST JOHN’S routes to major UK commercial centres with a journey time of 48 minutes to VICAR LANE WESTGATE CENTRE BRISTOL Manchester Piccadilly and 2 hours 15 to London King’s Cross. The station has THE HEADROW LONDON PARK THE EASTGATE recently undergone a thorough refurbishment programme with the opening SQUARE CORE THE (A58(M) GREEK ST ARCADES VICTORIA LEEDS ST PETER’S ST (A61)

of the £20 million south entrance in January 2017. ALBION STREET PENZANCE

LANDS LANE EAST PARADE BOND ST LEEDS CITY MAJOR UK ROAD LIKS

PARK ROW

BRIGGATE KIRKGATE HS2 COMMERCIAL ST MAJOR UK RAIL LINKS KIRKGATE MARKETS BUS VICAR LANE COACH STATION High Speed 2 is a planned high speed railway system that will connect CITY TRINITY YORK STREET

DUKE’S ST (A61) KING ST SQUARE LEEDS YORK STREET all major UK commercial centres. The £56 billion infrastructure project WELLINGTON ST CORN BOAR LANE EXCHANGE will create a journey time of 1 hour and 21 minutes between Leeds andTOWER AIRE ST SQUARE London Kings Cross and 46 minutes between Leeds and Birmingham. It is The Gateway NEW STATION ST THE CALLS anticipated to add over £7.6 billion to the Leeds economy. WELLINGTON WHITEHALL RD LS9 8AU PLACE THE CALLS LEEDS LEEDS STATION BRIDGE SOVEREIGN BREWERY FEARNS Road SQUARE CROWN WHARF GRANARY WHARF POINT BRIDGE Leeds benefits from excellent road connectivity and is situated 5 miles north WHARF BRIDGE NEVILLE STREET END KNIGHT’S WAY A61 VICTORIA RIVER AIRE of the M62 which provides access to Manchester and Liverpool to the west. BRIDGE BRIDGE CANAL RIVER AIRE WHARF The M1 is to the south east of the city centre providing quick access to the GLOBE RD Waterloo Street country’s motorway system and going directly to London, 195 miles south WATER LANE LS10 1JA GREAT WILSON STREET (A61) ROSE of the city. CROWN POINT ROAD WHARF

BLACK BULL STREET Leeds Dock LS10 1LQ

Leeds Central Portfolio 6 I Leeds Central Portfolio Market Commentary Leeds City Region

The Leeds city region economy is worth over £65.5 billion and is the largest outside of London, providing over 5% of the nation’s output.

Leeds is the largest producer in the city region with an output of £18.5 billion and the city has experienced the highest rate of private sector job growth in the past decade nationwide. Leeds hosts the UK headquarters for Asda, Capita and Sky plc with Channel 4 announcing in November 2018 that they will be creating their new regional HQ in the city. First Direct, HSBC, DLA Piper and all “Big 4” accounting firms have a signficant presence in Leeds and the Leeds city region has the highest private sector to public sector job ratio of all UK core cities.

Leeds city has a population of 784,000, a figure that is projected to grow 6% by 2026. The city is home to over 60,000 students across 8 higher education institutions including Russell Group members the University of Leeds. Leeds has the highest net inflow of students of any regional city and a high graduate retention rate of over 40% – contributing to a workforce where 34 % of the population have higher education qualifications.

The strong economy of Leeds and the opportunities it offers is a huge draw and 42% of the workforce did not grow up or study in the city. 25% of the Leeds city population is aged between 20-34, with younger demographics being attracted to the city’s professional opportunities, high standard of living and vibrant culture.

With a burgeoning young professional population and average first-time buyer age of 29, the Leeds rental market has high demand for good quality, professionally managed city centre residential stock, as exemplified by the high occupancy level short letting voids and tenant retention rate of this portfolio.

Leeds Central Portfolio 7 I Leeds Central Portfolio Vacant Possession Values

The Leeds Central Portfolio contains apartments in locations in Leeds that are in high demand by both renters and home buyers alike. Using Land Registry data we have compiled a list of transactions from the last two years, within the various blocks that form part of the portfolio. The data set out below evidences strong investor and owner occupier demand and will lead to the portfolio value being at a substantial discount to vacant possession value. Our estimate of the Vacant Possession value is in the region of £20 million reflecting a Capital Value of £273 psf.

Waterloo Street Gateway

Date Address Sold Price Sold Price (psf) Size sq. ft. Date Address Sold Price Sold Price (psf) Size sq. ft. Apartment 42, Aug-18 318 Gateway East £176,000 £240 732 Jan-18 £125,000 £305 409 Waterloo Court Jun-18 505 Gateway East £160,000 £228 700 Dec-17 51 Waterloo Apartments £215,000 £285 753 Jun-18 207 Gateway West £125,000 £178 700 Oct-17 53 Waterloo Apartments £180,000 £371 484 Apr-18 1102 Gateway East £170,000 £250 678 Sep-17 57 Waterloo Apartments £150,000 £331 452 Mar-18 411 Gateway North £180,000 £249 721 Aug-17 25 Waterloo Apartments £186,000 £257 721 Mar-18 610 Gateway North £150,000 £199 753 Nov-16 47 Waterloo Apartments £173,600 £268 646 Mar-18 115 Gateway West £170,000 £242 700 Apartment 52, March-16 £130,000 £287 452 Mar-18 1002 Gateway East £190,000 £235 807 Waterloo Court Mar-18 802 Gateway East £165,000 £243 678 AVERAGE £304 Mar-18 1201 Gateway North £203,000 £273 743 Mar-18 813 Gateway East £155,000 £257 603 Mar-18 115 Gateway West £170,000 £242 700 Mar-18 217 Gateway East £125,000 £181 689 Mar-18 1302 Gateway North £210,000 £267 786 Jan-18 715 Gateway East £190,000 £271 700 Jan-18 116 Gateway West £177,500 £253 700 Nov-17 506 Gateway West £120,000 £272 441 Sep-17 509 Gateway West £120,000 £253 474 Aug-17 904 Gateway West £230,000 £309 743 AVERAGE £245

Leeds Central Portfolio 8 I Leeds Central Portfolio

Vacant Possession Values (Cont)

Leeds Dock

Date Address Price Price psf Size sq. ft. Date Address Price Price psf Size sq. ft. Aug-18 6 La Salle £213,000 £329 646 Dec-17 137 La salle £129,000 £363 355 Jul-18 17 La Salle £209,000 £366 570 Nov-17 211 La Salle £170,000 £329 517 Jul-18 7 McClintock House £195,000 £251 775 Nov-17 62 McCLintock House £185,000 £350 527 Jul-18 52 McClintock House £217,950 £273 797 Nov-17 31 McClintock House £185,000 £286 646 Jun-18 16 La Salle £212,000 £378 560 Oct-17 84 Cartier House £125,000 £305 409 Jun-18 51 La Salle £203,000 £265 764 Oct-17 55 Crozier House £130,000 £274 474 May-18 44 La Salle £191,250 £282 678 Sep-17 7 Crozier House £125,000 £297 420 May-18 56 Cartier House £125,000 £297 420 Sep-17 73 Crozier House £135,000 £278 484 Apr-18 7 La Salle £197,500 £278 710 Aug-17 44 Crozier House £131,500 £313 420 Apr-18 166 La Salle £201,000 £252 797 Aug-17 42 Crozier House £139,000 £339 409 Mar-18 177 La Salle £200,000 £299 667 Aug-17 64 McClintock House £210,000 £274 764 Feb-18 34 La Salle £200,000 £320 624 Dec-16 40 Cartier House £120,000 £293 409 Jan-18 27 La Salle £206,000 £277 743 Sep-16 7 Cartier House £120,000 £259 463 Dec-17 175 La Salle £200,000 £251 797 AVERAGE £300

Leeds Central Portfolio 9 I Leeds Central Portfolio Leeds City Centre

14 16 9 15 8 20 17 10 12 13 2 11 19 7 A 6 5 B 1

C 4

A WATERLOO STREET 3 HOLIDAY INN 10 LEEDS TRINITY 16 CENTRAL SQUARE B GATEWAY 4 ROYAL ARMOURIES MUSEUM 120 shops, restaurants, bars and cinema PWC, Clipper Logistics C LEEDS DOCK 5 BBC YORKSHIRE 11 LEEDS KIRKGATE MARKET 17 1 SOVREIGN STREET One of Europe’s largest indoor markets 280,000 ft2 BT plc regional headquarters 6 LEEDS PLAYHOUSE 12 LEEDS MARRIOT 18 KPMG 1 BREWERY SITE, LEEDS 7 VICTORIA LEEDS 65,000 ft2 Yorkshire headquarters City Park alongside 850 homes, 850,000 ft2 Louis Vutton, John Lewis, Harvey Nichols, 13 LEEDS MALMAISON of employment space and 150,000 ft2 Vivienne Westwood 14 6 QUEEN STREET 19 ASDA HOUSE Asda UK headquarters of leisure space including a hotel 8 BROADGATE Burberry regional offices 2 CORN EXCHANGE Yorkshire Building Society 15 PLATFORM LEEDS 20 LEEDS STATION Popular leisure hub 9 PINNACLE Tech incubator & serviced office space Barclays, Regus 10 I Leeds Central Portfolio Waterloo Street

Leeds Central Portfolio 11 I Leeds Central Portfolio Location Waterloo Street, Hunslet, Leeds LS10 1JA

Waterloo Street is located on the south bank of the River Aire, immediately south of the city core. The residential blocks at Waterloo Street are 0.3 mile south east of Leeds Station and a 5 minutes’ walk from Trinity Leeds. Trinity Leeds is the city’s biggest shopping and leisure destination with over 120 shops, cafes, bars and restaurants. Waterloo Street is also home to Leeds Jurys Inn, with other hotel occupiers including the Hilton, Cosmopolitan and Travelodge all utilising the area around the Train Station. The area is close to nightlife and bars with popular operators such as BrewDog, Revolucion De Cuba and Be at One all within a 5 minutes’ walking distance.

1 bed Bedroom Split 2 bed

Leeds Central Portfolio 12 I Leeds Central Portfolio Description Waterloo Court, Leeds LS10 1JA

No. of No. Accommodation Units vacant Bedroom Types Studio/1 bed compact 0 - 1 bed 10 1 2 bed 1 - Total 11 1 Rental Income per annum £66,780 per annum ERV per annum £78,660 per annum Avg. time in occupation 2.52 years

Waterloo Court currently has a rent roll of £66,780 which would have the potential to increase to £78,660 once fully let at ERV, an increase of 21%. Passing rents range from £480 pcm - £700pcm with Martin & Co believing that the ERV of the units range from £550 pcm to £720 pcm.

Waterloo Court was built in 2007 providing 74 modern apartments over 6 floors. The property is accessed through a landscaped courtyard via a single steel framed door with a secure intercom system into a communal lobby containing mailboxes and disabled access to all floors. Entry to each floor is via a communal stairwell or 8 person passenger lift.

Individual flats consist of an open plan lounge and kitchen with separate bedrooms and bathrooms. Each kitchen is fitted as standard with single electric oven and four ring hob, washing machine, wall mounted overhead cupboards and fridge freezer.

Leeds Central Portfolio 13 I Leeds Central Portfolio Tenancy Waterloo Court, Leeds LS10 1JA

Tenure The properties are held on 11 individual long leasehold leases for terms of 999 years less 10 days from and including 01 January 2007

The ground rents are set at £250 per annum, with 10 yearly rent reviews to RI.

Expenditure

Ground Rent £2,763.75

Current Service Charge £13,178 (01/04/18 – 31/03/19)

Total 15,941.75

The Service Charge is administered by Action Property Management whilst the ground rent is managed by Premier Ground Rent.

Leeds Central Portfolio 14 I Leeds Central Portfolio Waterloo Court

Leeds Central Portfolio 15 I Leeds Central Portfolio Description Waterloo Apartments, Leeds LS10 1JA

No. of No. Accommodation Units vacant Bedroom Types Studio/1 bed compact - - 1 bed 14 1 2 bed 6 - Total 20 1 Rental Income Per annum £129,000 per annum ERV per annum £142,860 per annum Avg. time in occupation 3.90 years

The property comprises 6 storeys with commercial accommodation on the ground floor and c. 60 residential apartments on the upper storeys. The property is accessed via a single steel framed door with a secure intercom system into a communal lobby with disabled access to all floors. which are accessed via a communal stairwell or an 8 person passenger lift.

Leeds Central Portfolio 16 I Leeds Central Portfolio Tenancy Waterloo Apartments, Leeds LS10 1JA

Tenure The 20 apartments are held on a single long leasehold for a term of 999 years less 2 days from and including 6th September 2002 at a peppercorn rent without review.

s. 106 The 20 apartments are bound by a s. 106 agreement to providing affordable rental opportunities. Under the terms of the s. 106 agreement the rental level is limited to an RPI adjusted figure per sq. m. which currently equates to £13.54 per sq. m pcm (£15.09 per sq. ft. pa). Currently ERVs fall within this range for the apartments.

Prospective tenants are to be “Qualifying Tenants” who are listed as having gross earnings less the average male gross earnings for the Leeds Metropolitan District – which we currently understand to be £28,600. Furthermore prospective tenants must be in employment within 2 miles of Leeds city centre.

A full copy of the s. 106 can be found in the dataroom. Expenditure

Current Service Charge £26,153 (01/04/18 – 31/03/19) Ground Rent -

Total £26,153

Leeds Central Portfolio 17 I Leeds Central Portfolio Waterloo Apartments

Leeds Central Portfolio 18 I Leeds Central Portfolio The Gateway

Leeds Central Portfolio 19 I Leeds Central Portfolio Location The Gateway, Leeds LS9 8BZ

The Gateway development is situated at the eastern gateway of the city at an intersection of the A61 and Marsh Lane, both of which are key arterial routes leading from the south and east into and around Leeds city centre. Gateway is situated opposite Leeds Minster and is 0.4 mile south east of the iconic John Lewis department store that forms the eastern entrance to the Victoria Leeds Scheme. Victoria Leeds combines both the Victoria Quarter and the Victoria Shopping Centre and is home to Leeds’ premium retail offering with retailers including Harvey Nichols, Louis Vutton and Vivienne Westwood. The development is also in close proximity to the cultural quarter encompassing Leeds College of Music which caters to c. 2,000 students yearly, Northern Ballet, BBC and Leeds Playhouse, together with the central government’s 340,000 sq. ft. Quarry Hill office hub.

18 Studio Bedroom Split 1 bed 2 bed

Leeds Central Portfolio 20 I Leeds Central Portfolio Description The Gateway (North, South, East), Leeds LS9 8BZ

No. of No. The Gateway development provides a total of 640 residential apartments Accommodation Units vacant across the three buildings. Each of the buildings provides up to 13 storeys Bedroom Types Studio/1 bed compact 4 - of accommodation, with Gateway West being used as commercial space 1 bed 23 1 and an Ibis Hotel also being situated as part of the development. Each of the properties is accessed via a secure intercom system, leading into a 2 bed 18 3 communal lobby including mailboxes and DDA compliant access to all floors. Total 45 4 Access to each unit is provided by walkways surrounding an impressive full Rental Income per annum £287,520 per annum height atrium. ERV per annum £340,920 per annum Avg. time in occupation 3.01 years The flats consist of an open plan lounge and kitchen with separate bedrooms and bathrooms. Each kitchen is fitted as standard with single electric oven and four ring hob, washing machine, wall mounted overhead cupboards and fridge freezer.

Leeds Central Portfolio 21 I Leeds Central Portfolio Tenancy The Gateway (North, South, East), Leeds LS9 8BZ

Tenure The apartments are held on 45 long leases for terms of 150 years from including 31 March 2006 (c. 138 years unexpired)

Expenditure

Current Service Charge (Annualised) £53,986.14

Ground Rent £11,030.22

Total £65,016.36

Leeds Central Portfolio 22 I Leeds Central Portfolio The Gateway

Leeds Central Portfolio 23 I Leeds Central Portfolio Leeds Dock

Leeds Central Portfolio 24 I Leeds Central Portfolio Location Leeds Dock, Leeds LS10 1PZ

Leeds Dock is a popular mixed use scheme immediately south east of the commercial core, a 10 minutes walk from the city centre. The scheme is home to 1,100 apartments spread across numerous buildings with commercial, retail and leisure space all surrounding the dock. Prominent occupiers include Sky, Pizza Express and the £42.5 million Royal Armouries Museum alongside a range of cafés, bars and bistros. As part of its commercial provision the dock is home to a workforce of 2,000 employees.

Leeds Central Portfolio 25 I Leeds Central Portfolio Description Leeds Dock, Leeds LS10 1PZ

This transaction comprises of apartments in four of the residential blocks in the scheme; Crozier House, La Salle House, Cartier House and McClintock House each of which is similar in terms of access and specification. Each of the properties is accessed via a secure intercom system, leading 19 into a communal lobby including mailboxes and DDA compliant access 1 bed to all floors. Individual flats consist of an open plan lounge and kitchen with Bedroom Split separate bedrooms and bathrooms. Each kitchen is fitted as standard with 2 bed single electric oven and four ring hob, washing machine, wall mounted overhead cupboards and fridge freezer with some of the apartments benefitting from either full or Juliet balconies. 37

Leeds Central Portfolio 26 I Leeds Central Portfolio Crozier House Leeds Dock, Leeds LS10 1PZ

No. of No. Accommodation Units vacant Bedroom Types Studio/1 bed compact 0 - 1 bed 2 - 2 bed 5 - Total 7 - Rental Income per annum £55,080 per annum ERV per annum £59,040 per annum Avg. time in occupation 2.86 years

Current Service Charge (Annualised) £12,475.94

Ground Rent £1,750.00

Total £14,225.94

Leeds Central Portfolio 27 I Leeds Central Portfolio LaSalle House Leeds Dock, Leeds LS10 1PZ

No. of No. Accommodation Units vacant Bedroom Types Studio/1 bed compact - - 1 bed 19 1 2 bed 11 - Total 30 1 Rental Income per annum £204,600 per annum ERV per annum £227,160 per annum Avg. time in occupation 3.95 years

Current Service Charge (Annualised) £43,000.97

Ground Rent £7,562.15

Total £50,563.12

Leeds Central Portfolio 28 I Leeds Central Portfolio Cartier House Leeds Dock, Leeds LS10 1PZ

No. of No. Accommodation Units vacant Bedroom Types Studio/1 bed compact - - 1 bed 16 1 2 bed 2 - Total 18 1 Rental Income per annum £113,142 per annum ERV per annum £127,302 per annum Avg. time in occupation 2.16 years

Current Service Charge (Annualised) £21,412.50

Ground Rent £4,537.29

Total £25,949.79

Leeds Central Portfolio 29 I Leeds Central Portfolio McClintock House Leeds Dock, Leeds LS10 1PZ

No. of No. Accommodation Units vacant Bedroom Types Studio/1 bed compact - - 1 bed - - 2 bed 1 - Total 1 - Rental Income per annum £8,700 per annum ERV per annum £8,700 per annum Avg. time in occupation 1.02 years

Current Service Charge (Annualised) £2,064.46

Ground Rent £250.00

Total £2,314.46

Leeds Central Portfolio 30 I Leeds Central Portfolio Leeds Dock

Leeds Central Portfolio 31 I Leeds Central Portfolio Portfolio

Dataroom A dataroom is available on request and includes; Service Charge information, Headleases, Shared Ownership Documents, s. 106 documents and a full Tenancy Schedule. Contact Details Energy Performance Certificates Richard Turner All Energy Performance Certificates are available upon request. [email protected] 0191 223 5720 Viewing Days Gagan Jagpal Viewing Days will take place on the following dates: [email protected] 21 November 2018, 03 December 2018. 0191 223 5709

Proposal Richard Brooke Offers are invited for the whole of our clients long leasehold interests [email protected] by 5:00 pm on Tuesday 11th December 2018. 0113 233 8879 Cushman & Wakefield hereby give notice that the information provided in this brochure is provided on the following conditions: (1) The particulars are set out as a general outline only, for the guidance of intending purchasers and/or lessees and do not constitute an offer or contract, or part of an offer or contract. (2) All descriptions, dimensions and references to this property’s condition and any necessary permission for use and occupation, and any other relevant details, are given in good faith and are believed to be correct. However, any intending purchasers or tenants should not rely on them as statements or representations of fact but satisfy themselves of their correctness by inspection or otherwise. (3) No person in the employment of Cushman & Wakefield, or any joint agents, has any authority to make or give any representation or warranty whatsoever in relation to the property or properties in this brochure. (4) All prices quoted are exclusive of VAT. (5) Cushman & Wakefield shall have no liability whatsoever in relation to any documents contained within the brochure or any elements of the brochure which were prepared solely by third parties, and not by Cushman & Wakefield. Subject to Contract and Exclusive of VAT. November 2018.

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