PRIME LEISURE INVESTMENT OPPORTUNITY

LIVERPOOL, L1 1RH INVESTMENT CONSIDERATIONS • Prime leisure and office • 74% of the income is investment in the heart of secured against national City Centre. covenants. • Highly prominent and • Weighted average visible position. unexpired lease term certain of 11.7 years. • Well located to take advantage of some of • Offers are sought in Liverpool’s most popular excess of £17,250,000 cultural attractions. subject to contract and exclusive of VAT. A purchase • The property provides at this level would reflect 101,642 sq ft (9,442 sq m) an attractive net initial of leisure and office yield of 6.73% after usual accommodation. purchasers costs. • Gross receivable of • This further reflects an £1,359,280 per annum equivalent yield of 7.12% equating to a low average and reversionary yield rent of £13.37 of 7.21%. per sq ft. • Net rent receivable of £1,238,356 per annum.

2 PRIME LEISURE INVESTMENT OPPORTUNITY

3 Albert Dock

Liverpool ONE

The

Church Street Whitechapel Queensway

Playhouse Theatre

Clayton Square

St Johns Centre

St George’s Hall

Empire Lime Street Station Theatre

Site boundary for indicative purposes only PRIME LEISURE INVESTMENT OPPORTUNITY

World Museum

Walker Art Gallery

5 INVERNESS

ABERDEEN

DUNDEE

PERTH

STIRLING

FALKIRK EDINBURGH GLASGOW

DUMFRIES NEWCASTLE UPON TYNE

CARLISLE SUNDERLAND

HARTLEPOOL

DRIVETIME CATCHMENT 20 minutes 40 minutes SCARBOROUGH

LOCATION A1 (M) Liverpool is the principal The city is also well served Mersey Ferries, operate a daily Atlantic port for the north of by the national rail network service between , situated 217 miles from Lime Street Station and the Wirral while P&O and (349 km) north west of London, which provides direct access to Norfolkline Irish Sea offer daily and 34 miles (54 km) west of destinations including Manchester, services to Dublin, Belfast M6 Manchester. The city benefits Birmingham and London and Douglas (Isle of Man). In from excellent transport Euston which has a journey addition to this, Liverpool has communications. time of approximately 2 hours. recently opened a major cruise LEEDS liner terminal which allows PRESTON BRADFORD The M62 links Leeds, Liverpool John Lennon Airport cruise liners to commence and BLACKBURN Manchester and Liverpool with is situated 6 miles (10km) terminate their journeys from BURNLEY KINGSTON UPON HULL the wider motorway network south east of the city centre the City Centre. and provides direct access to and is one of Europe’s fastest M62 the city centre. The M57 and growing airports serving over Liverpool boasts a catchment SOUTHPORT M58 provide links to north 60 European destinations. population of 783,417 people M62 Liverpool and the wider region, Manchester Airport, the UK’s within a 20 minute drive time M6 SCUNTHORPE FORMBY with access to the Wirral 3rd largest airport is, 38 miles of the property and this rises BARNSLEY Peninsula via the Kingsway (61 km) to the west. to 1,835,517 people within a 40 () and Queensway minute drive time. M58 GRIMSBY () . MANCHESTER M  M1 LIVERPOOL M60 M57 M62

SHEFFIELD M53 M56

COLWYN BAY CHESTER LINCOLN M18 M6 SKEGNESS

WREXHAM STOKE ON TRENT

GRANTHAM DERBY

Not to scale for indicative purposes only. A KING’S LYNN NORWICH GREAT YARMOUTH A A

A PETERBOROUGH LOWESTOFT

M M A M

COVENTRY A  M

WORCESTER NORTHAMPTON NEWMARKET BEDFORD M CAMBRIDGE IPSWICH M M MILTON KEYNES COLCHESTER LUTON CHELTENHAM STEVENAGE Gloucester AYLESBURY STANSTED

OXFORD CHELMSFORD

HIGH WYCOMBE Swansea SOUTHENDONSEA SWINDON READING London CARDIFF BRISTOL

RAMSGATE BATH Weston-super-Mare BASINGSTOKE GUILDFORD MAIDSTONE

ROYAL DOVER SALISBURY WINCHESTER TUNBRIDGE WELLS FOLKESTONE CRAWLEY TAUNTON

SOUTHAMPTON

HASTINGS BRIGHTON PORTSMOUTH EASTBOURNE EXETER BOURNEMOUTH NEWPORT

Torquay Plymouth PRIME LEISURE INVESTMENT OPPORTUNITY

LIVERPOOL OVERVIEW Liverpool is the UK’s 5th largest city. It is The city is the largest wealth management In addition the city has four universities with a The city is now ranked 3rd of major UK cities a major centre in the UK’s second largest centre in the UK outside of London and home population of 60,000 students and has one of in terms of its retail offer. regional economy, the North West, which has a to a number of major financial institutions the highest retention rates of any UK city, population of 7.2 million people. and public bodies including Barclays Wealth, with 1 in 6 graduates finding employment In addition to all this, Liverpool has a great Royal Sun Alliance, Royal Liverpool, Liverpool in the Liverpool area. sporting tradition. The city is home to two The accounts for 2.3 Victoria, Jaguar Landrover, and HM Revenue Premier League football clubs in Liverpool million people but has a broader catchment and Customs. In 2004, the historic waterfront Mercantile FC and Everton FC, the world’s most famous of 3.75 million and a population of 6.2 million District became a UNESCO World Heritage steeplechase, the Grand National, takes place people within a one hour drive time Liverpool continues to invest and develop in Site and, along with the city’s 2008 Capital of annually at Aintree Racecourse and golf’s [www.investliverpool.com]. its own future. Over the next decade, Liverpool Culture status, helped attract over 10million Open Championship is frequently played will deliver some of the UK’s largest and most visitors to the city during 2011. on nearby course along what is known as The city of Liverpool has undergone one of ambitious development and infrastructure “England’s Golf Coast”. the most remarkable transformations of any project schemes, Liverpool Waters, Pall Mall, Perhaps the biggest symbol of Liverpool’s European city over the past decade, with New Royal Liverpool University Hospital and regeneration is the completion of Liverpool over £5billion of inward investment delivered Bio Campus, Edge Lane Retail Park and the One. The retail led development by Grosvenor through public and private partnership. transformation of North Liverpool, with a total included the redevelopment of 42 acres of Liverpool is at the centre of the UK’s second development value in excess of £10 billion. and is anchored by largest regional economy worth over The aim is to create a world class, waterside John Lewis, Debenhams, a 14 screen Odeon £121billion and home to 252,000 businesses mixed use development at the heart of the city. Cinema along with restaurants, apartments, (). offices and public open space.

LIVERPOOL IS AT THE CENTRE OF THE UK’S SECOND LARGEST REGIONAL ECONOMY WORTH OVER £121BILLION AND HOME TO 252,000 BUSINESSES (LIVERPOOL VISION)

7 LIVERPOOL LEISURE MARKET Having gained international recognition as European Capital of Culture 2008 the city continues to attract inward investment and development, providing one of the most attractive retailing and leisure destinations in the UK. The city is a well-established visitor destination and is currently the 5th most popular in the UK for overseas visitors, with 34.8m visits during 2016. (Liverpool Local Enterprise Patnership 2018). Between 2009 and 2016 there has been a 47% increase in visitor numbers and a 56% increase in the economic value of the tourist economy.

The city has one of the strongest leisure offers in the UK with its breadth of nationally and internationally renowned museums and galleries, and its wealth of other cultural and sporting attractions. These are accompanied by a strong accommodation offer, an increasingly high quality restaurant sector and the city’s renowned architectural landscape.

THE KEY LEISURE DESTINATIONS IN THE CITY INCLUDE QUEEN SQUARE ITSELF, , AND ROYAL ALBERT DOCK.

QUEEN SQUARE LIVERPOOL ONE ROYAL ALBERT DOCK

Queen Square, which forms part of the Liverpool’s most significant retail and leisure Located on the Waterfront adjacent to the St Georges Quarter, is perfectly located in the development in recent years is Liverpool ONE, and BT Convention Centre, heart of Liverpool to take advantage of some which covers 42 acres and over 1.65 million sq ft. the scheme comprises a mix of bars and of Liverpool’s most popular cultural attractions, The scheme, which provides over 160 stores, restaurants. The leisure offer is a mix of including the , bars and restaurants, is one of Europe’s leading national and independent operators. The Royal Court Theatre, The Playhouse retail and leisure destinations. Anchored Over the past two years rents at the Docks Theatre, St Georges Hall and the World by the likes of John Lewis, Debenhams and have grown from between £15 to £20 per sq ft Museum Liverpool. Queen Square offers Harvey Nichols, the scheme also provides to in excess of £30 per sq ft, with new leases a variety of leisure uses including hotels, 220,000 sq ft of leisure accommodation, over to the likes of Lunya Lita and Rosa’s Thai Cafe. restaurants, bars, all of which are successfully 600 apartments, two hotels and 3,000 new trading alongside each other to present a car parking spaces. Footfall in the scheme RENTS thriving leisure destination. Recent lettings exceeded 1 million people in the first two Significant rental growth has been observed to Costa Coffee and Five Guys, who enjoyed weeks and reached 20 million visitors in the across the leisure sector in recent years as a record opening weeks trade, underline first year. report footfall illustrated above. Traditionally lower value this success. The addition of one of the most in the city has increased 24% since the first locations such as Bold Street, and Hanover accessible car parks in Liverpool further phase of Liverpool ONE opened in May 2008. Street continue to see good demand with contributes to the success of this scheme. Its leisure offer is food led, complimenting the openings from the likes of Mowgii, Crust, retail and cinema use, and is family orientated. The Florist and The Italian Fish Club. Rents in Headline rental levels currently being achieved these less established locations are now £25 at Liverpool ONE are in the order of £70 per sq ft. to £30 per sq ft indicating the potential growth for Queens Square.

LIVERPOOL HAS DEVELOPED A STRONG LEISURE AND BUSINESS TOURISM OFFER, BOTH OF WHICH CONTINUE TO BE ENHANCED THROUGH ONGOING INVESTMENT IN THE CITY

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10 PRIME LEISURE INVESTMENT OPPORTUNITY

SITUATION Queen Square occupies a highly Queen Square Car Park is prominent and visible position in considered one of the principal car the heart of Liverpool City Centre. parks serving the city centre and

Walker The scheme is situated within currently serves approximately B World A Art Gallery an area known as St George’s 347,000 vehicles per year. T Museum H Quarter, which covers an area S T A5047 TR E Central LOND RE St George’s ON RD EE T from the The scheme is also situated in MOORFIELDS S Library LE Hall Empire Theatre T T A and to close proximity to Lime Street E D RE ST JOHN’S LN T Station which handles 13.8 million L S Williamson Square. St George’s E AP Quarter forms part of Liverpool’s passengers a year. CH St John’s LIVERPOOL T LIME STREET EE Centre

World Heritage site and boasts S TR T S R R Royal Court Immediately to the east of the A E N T architecture of an international D A Theatre S W Queen Square T property is the Marriot Hotel. quality and a cultural offer which Bus Station L Playhouse I This further contributes to the LIVERPOOL M highlight the rich history and Theatre E

S success of the subject scheme T heritage of Liverpool. In 2013 R JAMES STREET LORD ST selling approximately 37,697 REE E T E attractions within the St George’s The Three T bedrooms per year (2013). Graces LIVERPOOL Quarter attracted approximately T CENTRAL E 2.69m visitors. RE The local vicinity is set to ST A Liverpool R 5 E 0 ONE V strengthen further with the £35m 3 O The scheme is perfectly located 8 N A regeneration of Lime Street. H

to take advantage of some of Mann Island The scheme, currently under HARD

M these popular cultural attractions, AN S construction, involves the creation TREE

including the Liverpool Empire T

of a 412 bedroom student block, a Theatre, The Royal Court Theatre, T S 101 bedroom hotel, and more than R E G

The , Albert IV R

L

27,500 sq ft of retail/leisure space, E Dock W

St Georges Hall, Central Library, A

all of which is set A T

P and the World G P

to enhance the area. I E N O

Museum Liverpool. G R

G

E

Queen Square is easily accessible S T

R

by Rail, Road, and Bus, with E

E

Queen Square Car Park and T Queen Square Bus Interchange St George’s Quarter (40,000 passengers per day and Central Business District ET TRE 14 million passengers a year) both NT S China Town E LIAM located on the scheme. PAR Cavern Quarter UPPER

ET Ropewalks P STRE ARLIAMENT University Quarter Liverpool ONE

Not to scale for indicative purposes only.

11 DESCRIPTION Predominantly constructed in 1998, the property offers 101,642 sq ft (9,442 sq m) of leisure and office accommodation arranged over 4 distinct parts being The Plaza, Courtyard, St John’s House, and Yate’s. The property provides a mix of restaurants, bars and a casino, all of which are successfully trading alongside each other to present a thriving leisure destination. Whilst situated within the larger Queen Square development, the multi storey car park, Marriot Hotel and Observatory do not form part of the subject investment.

THE PLAZA YATES’ THE COURTYARD ST JOHNS HOUSE

Located at the western side of the scheme, The Plaza fronts Immediately to the south of the Bus Centrally located fronting onto Queen Over looking St John’s Lane, St George’s Hall Whitechapel to the north, the interchange to the south, and Interchange is a single unit let to Square is The Courtyard, a three and adjacent the Marriott Hotel, St Johns Queen Square to east. The Plaza contains three buildings Stonegate Pub Company Ltd t/a Yates’. unit block situated directly beneath House is a self contained Grade II* listed totalling 60,660 sq ft (5,635 sq m) and comprises ground and The building is of concrete frame the multi storey car park. The units, building comprising three leisure units, and plaza level restaurant and bar accommodation over 9 units. construction and is arranged over totalling 6,147 sq ft (571 sq m), are four floors of offices totalling 24,553 sq ft basement, ground and first floor levels occupied by a mix of national and (2,280 sq m). The leisure element is let to The Plaza is occupied by a mix of national traders including to provide 10,282 sq ft (955 sq m) of independent traders, to include La Doctor Duncans, TSO’s Oriental Buffet and Genting Casino, Five Guys, Costa, Ask Italian, Nando’s and leisure accommodation. The building Tasca, Coffee House and Lycamobile. Copacabana Brazilian Stakehouse. The offices Burger King. The block containing Five Guys & Costa has has been occupied by Stonegate ever The upper floors comprise a multi have been extensively modernised and are recently undergone a £1 million pound refurbishment to include since the unit was built in 1998 and storey car park which has previously occupied by Promenade Estates (The Vendor), full re-clad frontages. currently trades under the Yates’ brand. been sold separately by way of a long ION Property Developments Limited and leasehold to Q-Parks. Atmore Developments Limited.

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LOW VACANCY ACCOMMODATION RATE OF 3.1% TENURE The property comprises the following:

Unit Tenant Basement GIA Street Level GIA Plaza GIA First GIA Second GIA Offices NIA Total The property is held by way of 5 long leasehold interests from the (sq ft) (sq ft) (sq ft) (sq ft) (sq ft) (sq ft) (sq ft) freeholder Liverpool City Council as follows: The Plaza & Yates’ THE PLAZA 1-3 Genting Casinos UK Ltd - 16,561 4,690 4,024 - - 25,275 2a Five Guys JV Ltd - 4,622 - - - - 4,622 The Plaza is held on a 150 year lease from 10 August 1998 and is 2b Costa Ltd - 1,862 - - - - 1,862 drawn on a full repairing and insuring basis with an annual ground 2c Gelato World Ltd - - 4,488 - - - 4,488 rent of £60,000 per annum with 5 yearly reviews to RPI, subject to a 2d Dubai Marina Lounge Limited - - - 2,928 - - 2,928 minimum and maximum increase of 1% and 3%. 4 Jam Leisure Limited - - 2,223 2,240 - - 4,463 t/a Savina YATES’ 5 Azzurri Restaurants Limited - - 2,928 2,928 - - 5,856 - t/a Ask Unit 8 is held on a 150 year lease from 28 August 1998 and is drawn on a 6 Nandos Chickenland Limited - - 1,403 2,778 1,907 - - 6,088 full repairing and insuring basis with an annual ground rent equating to t/a Nando’s 10% of the aggregate total income, excluding VAT, insurance, rent, rates 7 BurgerKing Limited - 1,987 - 2,924 167 - 5,078 and service charge. The aggregate total income is reviewed annually. 8 Stonegate Pub Co. Limited - 1,409 4,426 - 4,447 - - 10,282 t/a Yates CAR PARK BLOCK Sub Total 70,942 Car Park Block The three units under the car park are held on a 132 year sub lease expiring 15 May 2148 and is drawn on an effective full repairing and 1 Mr Zindani & Mr Al-Zubiery - 373 - - - - 373 t/a Lyca Mobile insuring basis with an annual ground rent equating to 10% of the gross 2 Bernham Ltd - 1,530 - 480 - - 2,010* annual income. The aggregate total income is reviewed annually. t/a Queens The superior interest is held by Q Park who own and operate the car park. 3 La Tasca Restaurants Ltd - 3,764 - - - - 3,764 Sub Total 6,147 ST JOHNS HOUSE St John’s House Pub Hoylake Inns Ltd 1,342 2,088 - - - - 3,430 St Johns House is held on a 150 year lease from 10 August 1998 and is t/a Dr Duncans drawn on effective full repairing and insuring basis at a peppercorn rent. 1st floor Man Fung TSO - - - 4,198 - - 4,198 Ground Lavaca Brazilian Restaurant Ltd 3,531 2,589 - - - - 6,120 OPEN SPACES t/a Copacabana 2nd floor Promenade Estates - - - - - 3,294 3,294 The common parts of the estate, shaded grey on the opposite plan, are 3rd floor Vacant - - - - - 3,128 3,128 held on a 150 year lease from the 10 August 1998 at a yearly rent of one peppercorn. The cost of maintenance of the common parts are recoverable 4th floor ION Property Developments Ltd - - - - - 3,069 3,069 from the various long leasehold interests surrounding the estate, although 5th floor Atmore Developments - - - - - 1,314 1,314 Limited there is an annual shortfall of £14,000 per annum from the car park Sub Total 24,553 The total annual ground rent payable currently equates to £86,500 Total 101,642 per annum, creating a total landlord shortfall of £100,500 per annum.

*Floor area agreed in the heads of terms.

14 STREET LEVEL

Reproduced by permission of Experian Goad. Licence no. OS 100019885. Not to Scale - For Identification Purposes Only.

DOCTOR DUNCANS PUBLIC HOUSE

ENT

TAZ N/A COPACABANA& TSO’S CHINESE

RESTAURANT

COFFEE QUEEN

COFFEE SHOP

LA TASCA CASINO GENTING CLUB SPANISH RESTAURANT (2 RETAIL FLOORS)

FIVE GUYS

COSTA COFFEE NANDO’S PLAZA LEVEL PORTUGUESE RESTAURANT

BURGER KING FAST FOOD RESTAURANT (2 RETAIL FLOORS)

CASINO GENTING CLUB (2 RETAIL FLOORS)

SAVINA

BAR & RESTAURANT YATES’S PUBLIC HOUSE (2 RETAIL FLOORS) ASK ITALIAN ICE STONE GELATO RESTAURANT DUBAI MARINA LOUNGE AT

FIRST FLOOR

NANDO’S PORTUGUESE RESTAURANT

BURGER KING FAST FOOD RESTAURANT (2 RETAIL FLOORS) EXCELLENT WEIGHTED AVERAGE UNEXPIRED LEASE TENANCY TERM OF OVER 13.5 YEARS (11.7 YEARS TO BREAK) The property is let on in accordance with the following tenancy schedule:

Total GIA /NIA Tenant Lease Term Lease Next RR Contracted Contracted Comments (sq ft) Start Expiry Rent £pa Rent £psf The Plaza & Yates’ 1-3 25,275 Genting Casinos UK Ltd 26-Jun-07 25 25-Jun-32 - £420,000 £16.62 Units 1 & 3 on separate co-terminus leases. Previous break on the 15th anniversary of the term. The lease has been varied to provide 5 more years term certain with the break moved to 26th June 2027. The rent has been fixed at £420,000 pa for the duration of the term. 2a 4,622 Five Guys JV Ltd 19-Jan-2016 10 18-Jan-2031 19-Jan-21 £75,000 £16.23 - 2b 1,862 Costa Ltd 08-Jan-16 10 07-Jan-26 08-Jan-21 £47,500 £25.51 Tenant break option on 8th January 2022. Service charge cap of £4,500 per annum, renews annually in line with RPI. The current shortfall is £3,102 per annum. 2c 4,488 Gelato World Limited t/a Icestone Gelato 01-Jun-17 15 31-May-32 31-May-22 £52,500 £12.81 Rent free period expires 24th December 2018. Guaranteed by Icestone Supplies Limited. 2d 2,928 Dubai Marina Lounge Limited 22-May-18 20 21-May-38 22-May-23 £12,500 £4.10 Rent free period expires 22nd November 2019. 4 4,463 Jam Leisure Limited t/a Savina TBC 15 + 15 years + 5 years £59,000 £13.22 Tenant occupying under a tenancy at will. The lease is to be completed imminently on the terms outlined. Tenant benefits from three months rent free from the date of occupation. 5 5,856 Azzurri Restaurants Limited t/a Ask 25-Feb-99 25 24-Feb-24 25-Feb-19 £89,500 £15.28 - 6 6,088 Nandos Chickenland Limited t/a Nando’s 13-Apr-99 25 12-Apr-24 13-Apr-19 £65,350 £10.73 Lease is held by way of assignment. 7 5,078 Karali Ltd t/a BurgerKing 04-Aug-99 25 03-Aug-24 04-Aug-19 £80,500 £15.85 Lease assigned from Burgerking Ltd. 8 10,282 Stonegate Pub Co. Limited t/a Yates 28-Aug-98 50 27-Aug-48 28-Aug-18 £145,000 £14.10 - Total 70,942 £1,046,850 Car Park Block 1 373 Mr Zindani & Mr Al-Zubiery t/a Lyca Mobile 20-Jan-15 5 19-Jan-20 - £10,000 £26.81 - 2 2,352 Bernham Ltd t/a Queens TBC 20 + 20 years + 5 years £20,000 £8.50 Tenant is occupying under a Tenancy at Will. Formal terms for a new lease on the terms set out are in solicitors hands and superior landlord’s consent is awaited. The rent commencement date is 9th March 2019 (12 months from the date the tenant took occupation). The balance of any rent free period will be topped up by the vendor. 3 3,764 La Tasca Restaurants Ltd 17-Jun-98 25 16-Jun-33 17-Jun-18 £90,000 £23.91 Premises demised pursuant to original lease and a reversionary lease. Total 6,489 £120,000 St John’s House Pub 3,430 Punch Tarmeys Ltd t/a Dr Duncans 25-Dec-08 25 24-Dec-2043 25-Dec-18 £46,000 £13.41 Premises demised pursuant to original lease and a reversionary lease (to be completed imminently). Tenant’s obligations guaranteed by Andrew Mikhail and Mikhail Hotels and Leisure Holdings Limited and benefit of AGA from former tenant, Hoylake Inns Limited. Mezzanine 4,198 Man Fung TSO 18-Sept-98 21 17-Aug-19 - £30,000 £7.15 - Ground 6,120 DRBE Ltd t/a Copacabana TBC 10 + 10 years + 5 years £30,000 £4.90 Tenant occupying under a tenacy at will. Rent commencement date is the 29th September 2018. Landlord only break on the 5th anniversary of the term, subject to conditions of the lease not being met. 2nd Floor 3,294 Promenade Estates PC 5 +5 years - £37,880 £11.50 Vendor to take a new five year lease on completion of the sale. 3rd Floor 3,128 Vacant ------Current shortfalls: Service Charge -£15,985 pa, and Insurance £1,337 pa. The building is grade II listed so there are no rates shortfalls. 4th Floor 3,069 ION Property Developments Ltd 06-Feb-15 15 05-Feb-2020 - £34,050 £11.09 - 5th Floor 1,314 Atmore Developments Limited 06-Sept-13 10 05-Sept-23 06-Sept-18 £14,500 £11.04 The tenant has the right to determine the lease on 6 months notice at any time throughout the term. Total 24,553 £192,430

The total gross rent receivable per annum is £1,359,280 per annum, and a net rent of £1,238,356 per annum, after deductions for landlords occupational shortfalls (£20,424), ground rents (£86,500pa) and the service charge shortfall from Open Spaces (£14,000 pa).

16 PRIME LEISURE INVESTMENT OPPORTUNITY

ASSET MANAGEMENT A number of successful Asset Management initiatives have been implemented at Queen Square over recent years. Most significantly of these was the transformation and letting of the block containing Five Guys and Costa, which has recently undergone a £1 million refurbishment to include full re-clad frontages.

There are further value-enhancing asset management opportunities to be implemented as follows:

RENTAL GROWTH

Many of the leases at Queen Square are the original leases from the schemes completion in 1999. As such, there hasn’t been the opportunity to drive the rental values in line with the rest of the Liverpool leisure market. The scope for growth is illustrated by the two new lettings to Costa Coffee and Five Guys at £26 per sq ft and £20 per sq ft respectively.

LET THE VACANT FLOOR

The 3rd floor of St John’s Tower has recently become vacant. Re-let this floor setting a new rental tone in the building.

REGEAR EXISTING LEASES

A number of smaller tenants have short unexpired terms. The opportunity exists to re-gear these leases further improving the term certain.

SCHEME COMMERCIALISATION

Currently there is no income from commercialisation within the scheme. The common parts of the estate offer huge potential for sources of additional income.

17 COVENANT

Unit Tenant Year Ending Turnover Pre-tax Profit/ Net Worth/ D&B % of Income (£000’s) (Loss) (Loss) Rating 74% OF THE (£000’s) (£000’s) INCOME SECURED The Plaza & Yates’ AGAINST NATIONAL 1 Genting Casinos UK Ltd 31-Dec-16 280,600 42,600 13,600 3A2 30.70% COVENANTS.

2a Five Guys JV Limited 31-Dec-16 90,426 -12,875 -33,127 N2 5.50% EXCLUDING BREAKS 2b Costa Limited 02-Mar-17 886,366 103,387 616,894 5A1 3.50% 60.7% OF THE INCOME 2c Gelato World Ltd - - - - H2 3.80% SECURED FOR MORE 2c (Guarantee) Icestone Supplies Ltd 30-Nov-16 - - 113 C2 - THAN 10 YEARS 2d Dubai Marino Lounge Ltd - - - - O3 0.90% FIVE GUYS OPENING 4 Jam Leisure Ltd - - - - N3 4.30% WEEK WAS THE 5 Azzurri Restaurants Limited 02-Jul-17 249,250 19,286 76,115 5A1 6.50% SECOND MOST 6 Nandos Chickenland Limited 26-Feb-17 649,772 87,810 -140,589 N1 4.80% SUCCESSFUL IN 7 Karali Ltd 31-Dec-16 56,460 2,710 8,581 3A1 5.90% THE CHAIN’S

8 Stonegate Pub Co. Limited 25-Sep-16 642,561 -12,539 -68,901 N 10.60% HISTORY WITH 10,000

Car Park Block SANDWICHES, 3,700 PORTIONS OF FRIES 1 Mr Zindani & Mr Al-Zubiery - - - - - 0.70% AND 3,500 SODAS 2 Bernham Ltd 30-Sep-16 - - 5,099 2A3 1.50% SOLD. 3 La Tasca Restaurants Ltd 28-May-17 14,409 -2,048 -12,970 N3 6.60%

St John’s House

Pub Punch Tarmeys Ltd - - - - O3 3.40%

1st Floor Man Fung TSO - - - - - 2.20%

Ground DBRE Ltd - - - - - 2.90%

2nd Floor Promenade Estates Limted 31-Dec-16 - - 602 A2 2.80%

3rd Floor Vacant ------

4th Floor ION Property Developments Ltd 30-Jun-17 - - 3,189 2A2 2.50%

5th Floor Atmore Developments Limited 31-Mar-17 - - 22,730 4A1 1.10%

18 PRIME LEISURE INVESTMENT OPPORTUNITY

Site boundary for indicative purposes only

19

PRIME LEISURE INVESTMENT OPPORTUNITY

SERVICE CHARGE The maintenance and servicing of the common parts of the estate are covered by a service charge which is fully recoverable from the tenants. Full details are available upon request, however the average cost is £3.16 per sq ft.

VA T EPC We understand that the property is registered for VAT and An Energy Performance certificate for each unit is available therefore we anticipate treating the sale as a Transfer of a upon request. Going Concern (TOGC).

INVESTMENT PROPOSAL Offers are sought in excess of £17,250,000 (Seventeen Million, Two Hundred and Fifty Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level would reflect an attractive net initial yield of 6.73% after usual purchasers costs, an equivalent yield of 7.12% and a reversionary yield of 7.21%.

CONTACT Should you wish to consider the property further please do not hesitate to contact:- Savills Mason Owen

Nick Okell Freddie Guest Jamie Moffatt Andrew Scott [email protected] [email protected] [email protected] [email protected] +44 (0) 161 236 8644 +44 (0) 161 244 7724 +44 (0) 151 242 3042 +44 (0) 151 242 3043

Important Notice Savills, their clients and any joint agents give notice that: 1. They are not authorised to make or give any representations or warranties in relation to the property either here or elsewhere, either on their own behalf or on behalf of their client or otherwise. They assume no responsibility for any statement that may be made in these particulars. These particulars do not form part of any offer or contract and must not be relied upon as statements or representations of fact. 2. Any areas, measurements or distances are approximate. The text, photographs and plans are for guidance only and are not necessarily comprehensive. It should not be assumed that the property has all necessary planning, building regulation or other consents and Savills have not tested any services, equipment or facilities. Purchasers must satisfy themselves by inspection or otherwise. Designed and Produced by Savills Marketing: 020 7499 8644 | June 2018

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