LIVERPOOL INNOVATION PARK EDGE LANE, L7 9NJ

MIXED USE MULTI-LET INVESTMENT Prominent location on Edge Lane, with excellent road and transport links to /11 city centre and the motorway 01 network

Total passing rent of £1,315,687 per Three buildings (Innovation Centre, annum INVESTMENT Building 3 and Building 19) totalling 282,532 sq ft and 4.25 acres of The net receivable income, including SUMMARY development land fronting Edge Lane, vendor guarantees and after deducting on a landscaped campus setting which landlord non recoverable costs is extends to approximately 8.79 hectares £901,923 per annum. (21.7 acres) with car parking for 1,616 cars The potential ERV is £1,929,056 per annum.

Let to 36 tenants with an average weighted unexpired term of circa 3 years to breaks and 5.4 years to expiries Offers are sought in excess of £12,500,000 (Twelve Million Five Hundred Thousand Pounds) subject to contract and exclusive of VAT. Assuming 44% of income secured against the purchaser’s costs of 6.7% and attributing undoubted covenants of Liverpool £1.5m to 4.25 acres of development land Community Health NHS Trust and Mersey fronting Edge Lane, a purchase at this Care NHS Trust level reflects the following: 11.20 % Net Initial Yield 7.68% Triple Net Yield Asset management opportunities 16.42% Reversionary Yield to improve rental income by letting £39 Capital Value per sq ft vacant accommodation, and enhance value including redevelopment of the land fronting Edge Lane, let or explore alternative uses for Building 3, and refurbish or sell Building 19 to an owner occupier For indicative purposes only Liverpool is situated in the North West of England 02/11 and is the commercial and administrative capital of Merseyside. It is approximately 25 miles west of Manchester, 11 miles from Warrington and 21 miles from Chester. The M58 and M62 motorways provide communications into the city and Liverpool also LOCATION benefits from the extensive local Merseyrail networks.

Liverpool is the 6th largest city in the UK and is rapidly expanding with over £5 billion of investment delivered in the past decade through private and public partnership into culture, arts and development.

KEY FACTS:

–– Liverpool is situated in the centre of the North West, the UK’s second largest regional economy.

–– Merseyside has an economy worth more than £20 billion.

–– Over 3,000 companies have chosen the area as their base of operations demonstrating the region’s MANCHESTER commercial opportunities. LIVERPOOL –– 6.2 million people within an hour’s drive.

–– Two major airports within 45 minutes’ drive time.

–– Two hours journey time to London by rail. BIRMINGHAM

–– 45% of North American Trade enters via Liverpool.

–– Visitor spend worth £3.64 billion to the local economy. LONDON –– Four Universities and over 18,000 graduates a year. With strengths in automotive, ports and logistics, business services, creative and digital, life sciences and low carbon technologies, Liverpool offers a diverse and compelling offer for investors.

LIVERPOOL TWO The Port of Liverpool will be one of Europe’s biggest super container ports, capable of handling 1.5 million TEUs of cargo a year. The £300 million post-Panamax terminal is due to open shortly and it is estimated that it will add £5 billion gross value to the economy.

AUTOMOTIVE Liverpool is home to Jaguar Land Rover’s fastest selling model of all time, the ‘Car of the Year’ Evoque and the new BAC Mono.

LIFE SCIENCES Liverpool is home to over 90 life science companies with revenue in excess of £1.5 billion per annum, contributing over £300 million in Gross Value Added (GVA) to the local economy.

LIVERPOOL ONE Opened in 2008, Liverpool ONE extends to over 1.6 million sq ft and is home to 170 retailers including John Lewis, Debenhams, Zara and Hollister.

CREATIVE AND DIGITAL An estimated 50,000 skilled people are employed in the creative and digital sector across the city region. 03/11

SITUATION

Liverpool Innovation Park is located approximately two miles east of Liverpool city centre with a prominent frontage to Edge Lane, the main arterial route between the and the city centre.

The property is in close proximity to Edge Lane Retail Park, which is currently undergoing a substantial redevelopment, as well as the established Technology Park. Nearby occupiers include Barclays, Sony Computer Entertainment and Royal Bank of Scotland.

The property is served by Wavertree Technology Park railway station which provides a regular direct service to Liverpool Lime Street and Manchester Piccadilly. From Liverpool Lime Street Station, regular services link to multiple regional and national destinations including Manchester, Birmingham and London Euston in a fastest time of 2 hours.

Liverpool’s John Lennon Airport is situated approximately 8 miles to the south east and is one of the UK and Europe’s fastest growing Airports. ANE GE L ED

C

A

B EDGE LANE REDEVELOPMENT

For indicative purposes only

There are a number of LITTLEWOODS C. EDGE LANE RETAIL PARK significant redevelopment A. STUDIOS LIVERPOOL Edge Lane Retail Park immediately to the east schemes in the immediate Planning consent has been granted for the of the property is currently undergoing a £200m vicinity of Liverpool redevelopment of the former Littlewoods building redevelopment, with construction underway for a new cinema, bowling alley, gym and five leisure units. Innovation Park which will into a £25m film studio in order to meet demand for film and production facilities. The 12 acre site is also further enhance Edge Lane proposed to become the new home for the Liverpool The proposal regenerates a significant gateway to as a location. Theatre School. Liverpool and plans also include a central boulevard through the retail park with views over the city.

Planning consent has been granted for the 1,000,000 THE BUNKER sq ft development incorporating the re-modelling B. and extension of an existing retail park to provide Capital and Centric recently completed the £4m extensive new accommodation. conversion of the Bunker Building adjacent to Littlewoods Studios Liverpool, a 20,000 sq ft The design statement states speculative office space, aimed at digital and ‘the overall aims of the creative occupiers. Edge Lane redevelopment are to produce a primary gateway into the site, and create a positive image for Liverpool while offering opportunities for new and improved employment, retail, leisure, open space and residential development to compliment the work already undertaken’. 04/11 The property comprises a number of primarily office buildings arranged in a landscaped campus setting on a site extending to approximately 8.79 ha (21.7 DESCRIPTION acres). The property consists of the Innovation Centre, which comprises Building 2, Building 16 and Building 17.

There are also two standalone buildings, ‘Building 3’ and ‘ Building 19’ which are identified on the site plan overleaf. EDGE LANE

SOLD OFF INNOVATION BUILDING 19 BUILDING 3 LONG LEASE CENTRE HOLD

04/11

DESCRIPTION CD 4 CD 4 CD 4 CD 4 / / / /

1 1 1 1

1/98 1/98 1/98 1/98

CD4/11/98

1/98 1 / 4

CONTINUED CD CD4/11/98

1/98 1/98 1 1 / / 4 4 CD CD 4/11/98

1/98 1 / 4 CD

1/98 1/98 1 1 / / 4 4 CD CD 4/11/98

1/98 1 / 4 CD 4/11/98 BAYLIS (GF)CD / BUILDING 2 (1F & 2F)

1/98 1 / 4 CD 4/11/98

1/98 1 / 4 CD 4/11/98

1/98 1 / 4 CD 4/11/98 UP UP

Innovation Centre HO S E Indicative Floor Plan

INNOVATION CENTRE The Innovation Centre is a rectangular three storey building with two further wings extending from it. The majority of the accommodation has been fully refurbished to provide the following specification:

BUILDING 16 BUILDING 17 Air conditioning F F I I R S R U U S P P T T

T T

F F O O L L

O O O O –– R R

–– LG7 lighting

–– Suspended ceilings

–– Three compartment perimeter trunking

The primary use in this part of the site is INNOVATION offices and there is also an onsite cafe and CENTRE gym. Building 17 is occupied by Aimes Management Services Limited under a lease expiring in 2265 at a peppercorn rent. 04/11

DESCRIPTION

Fire Door Fire Door Building 3 is a former BUILDING 3 production facility that extends to approximately 78,226 sq ft and offers an extensive clear floor plate suitable for a variety of uses. D INSP O O R 99.7m The vendor is providing a two year rent, rates, insurance and service charge guarantee on this building. C C A A BL BL E E

DU C T DU C T

73.9m Building 3 Indicative Floor Plan BUILDING 19

Building 19 extends to 48,509 sq ft. It is currently in shell condition and has potential for a variety of uses including a Headquarter Office, training facility, call centre or research and development (R&D) facility. Building 17 The vendor is providing a two Indicative Upper Floor Plan year service charge and insurance guarantee on this building. No rates are currently payable.

0 2 10 meters

SCALE BAR

SECTION 2 /11 A referenced measured survey has been undertaken and is available to be assigned. 05 The buildings have been measured in accordance with the RICS Property Measurement, 1st Edition, on an IPMS 3 - Office (Innovation Centre and Building 19), and Gross Internal Area (Building 3) basis.

A breakdown of the building areas are as follows: ACCOMMODATION Referenced Survey Areas NIA

Demise Area (sq ft) Area (sq m) Area (sq ft) Area (sq m)

Innovation Centre* 155,797 14,474 142,646 13,252

Building 3 78,226 7,267 73,914 6,867

Building 19 48,509 4,507 45,561 4,232

Total 282,532 26,248 262,121 24,351

The site extends to 8.79 hectares (21.7 acres).

* NB: The Innovation Centre areas do not include Building 17 which is sold off long leasehold to Aimes Management Services Ltd.

The vendor has invested heavily in the site over the past two years. Over £2.6 million has been spent and the 06/11 works completed have included: –– Replacement of Innovation Centre roof –– Cat A and common area refurbishment –– Selective building demolition to improve RECENT parking and site layout IMPROVEMENT –– Car park construction –– Shower block and cycling facility upgrade WORKS –– Electrical upgrade of site, and substation switchgear replaced –– Replacement of the two large boilers Refurbished Office Accommodation GROUND FLOOR 1st FLOOR

BAYLIS BAYLIS BAYLIS BUILDING 2 BUILDING 2 SUITE 3 SUITE 2 SUITE 1 BUILDING 17 BUILDING 16 BUILDING 17 BUILDING 16

VACANT AIMES MANAGEMENT SERVICES Ltd

2nd FLOOR

BUILDING 2 BUILDING 17 BAIRD HOUSE VACANT For indicative purposes only 07/11 LIVERPOOL INNOVATION PARK EDGE LANE, L7 9NJ TENANCY –– The property provides a total area of 282,532 sq ft and a total passing rent of £1,315,687 per annum. INFORMATION –– The net receivable income, including vendor guarantees and after deducting landlord non recoverable costs is £901,923 per annum. –– The property has an estimated rental value of £1,929,056 per annum. –– The average weighted unexpired term is 3 years to break, and 5.4 years to expiries. –– There are 36 tenants on site. The five largest tenants providing 64% of the total income are as follows; Liverpool Community Health NHS Trust (34%) Mersey Care NHS Trust (10%), Barclays Bank plc (9%), Benn Dunne Gyms (UK) Limited (6%) Redbridge Produce & Flowers Ltd (5%). –– Within the Innovation Centre which extends to 155,797 sq ft, there is 47,944 sq ft currently vacant, providing significant potential to increase income. –– There are 4 suites currently under offer. In the event that these do not complete, the Vendor will provide a one year rental guarantee. –– Building 3 and Building 19 are currently vacant. The vendor will provide a two year rent, rates, insurance and service charge guarantee for Building 3. –– A two year service charge and insurance guarantee will also be provided for Building 19.

–– A tenancy schedule is available upon request. /11 44% of the income is secured against Liverpool Community Health NHS Trust and 08 Mersey Care NHS Trust, both of which provide an undoubted covenant.

The percentage of income by tenant is as follows: TENANT COVENANTS 24% Liverpool Community Health NHS Trust

34% Benn Dunne Gyms (UK) Ltd

Mersey Care NHS Trust

Redbridge Produce & Flowers Ltd

12% Barclays Bank plc HCA Guarantee

6% Other 9% 5% 10% A summary of the five key tenants by income is as follows:

Liverpool Community Health NHS Trust Ben Dunne Gyms (UK) Limited (Company Number: 07409928)

Liverpool Community Health NHS Trust provides community health services to people Ben Dunne Gyms is an Irish chain of gyms, with nine locations across Ireland and the in their homes, in over 70 locations including health centres and clinics, 5 walk-in UK. The company was founded in 1997 when they opened their first gym in Dublin. centres and 10 GP practices. The company offers affordable gym memberships with facilities including freeweights, resistance machines, CV machines and functional training zones. In 2012 the company The Trust have a team of over 3000 staff, 80 percent of whom are practicing reported that they had over 40,000 memberships. healthcare professionals including nurses, helath visitors, GP’s, dentists, dieticians and physiotherapists. 31/05/2015 31/05/2014 31/05/2013 Liverpool Community Health NHS Trust is a government funded organisation and Turnover - - - therefore do not submit key accounts. Pre-Tax Profit - - -

Mersey Care NHS Trust Working Capital (£259,664) (£410,767) (£387,356)

Mersey Care provides specialist mental health services in with Shareholder funds (£226,021) (£549,802) (£619,864) services including inpatient and community mental health, learning disabilities, addiction management and acquired brain injury services. Mersey Care are one of only Ben Dunne Gyms (UK) Limited have a Creditsafe rating of 42/100 reflecting moderate three trusts in the country who offer these services. risk.

Mersey Care operate across 30 sites in Merseyside employing 4000 staff and cared for more than 36,000 people in 2014/15. Redbridge Produce & Flowers Limited (Company Number: 03034745)

Mersey Care NHS Trust is a government funded organisation and therefore do not Redbridge Produce & Flowers are part of Total Produce UK, one of the UK’s largest submit key accounts. fresh produce providers. Total Produce service the retail, wholesale, and food service sectors with Redbridge providing wholesale and flower services from the subject property. Barclays Bank PLC (Company Number: 0126167) The company was formed by way of a demerger of the fresh produce business Barclays is a British Multinational banking and financial services company with Fyffes in 2006 and is now listed on the London Stock Exchange and the Irish Stock headquarters in London that was founded in 1690. It is a universal bank with Exchange. operations in retail, wholesale and investment banking, wealth management and mortgage lending and credit cards. 31/12/2014 31/12/2013 31/12/2012

The company employs 129,400 people and operates in over 50 countries globally as Turnover £62,908,000 £65,875,000 £64,826,000 a constituent of the FTSE 100 Index with a secondary listing on the New York Stock Exchange. Pre-Tax Profit £912,000 £1,089,000 £254,000

Working Capital £3,593,000 £2,833,000 £2,869,000 31/12/2014 31/12/2013 31/12/2012 Shareholder funds £5,184,000 £4,259,000 £4,200,000 Turnover £30,060,000,000 £33,293,000,000 £54,291,000,000 Redbridge Produce & Flowers Ltd have a Creditsafe rating of 81/100 reflecting very Pre-Tax Profit £2,309,000,000 £2,885,000,000 £650,000,000 low risk. Working Capital (£32,811,000,000) (£41,876,000,000) (£30,216,000,000)

Shareholder funds £63,794,000,000 £61,009,000,000 £57,067,000,000

Barclays Bank PLC have a Creditsafe rating of 86/100 reflecting very low risk. 09/11 There are various asset management opportunities which could be undertaken in Building 3 order to improve rental income and value:

REDEVELOPMENT LAND ASSET FRONTING EDGE LANE There is sufficient car parking on site MANAGEMENT (1,616 spaces) to accommodate further development fronting Edge Lane. Roadside OPPORTUNITIES uses are potentially viable subject to planning as approximately 31,000 vehicles pass the site each day.

ALTERNATIVE USES FOR BUILDING 3 A new owner could explore alternative uses for the 78,226 sq ft Building 3. Recent external works now mean that the unit can be accessed separately from the main Building 19 building, providing additional flexibility in the future.

REFURBISH AND RE-LET VACANT ACCOMMODATION There is currently 47,925 sq ft (circa 30%) of vacant accommodation within the main Innovation Centre which provides an opportunity to improve the rental income at the property.

BUILDING 19 Building 19, the standalone office building can be refurbished and relet, or alternatively sold off separately, potentially to an owner occupier.

10/11 SERVICE CHARGE Further information is available within the data room.

TENURE ADDITIONAL The property is held freehold. One of the wings within the main building known as INFORMATION Building 17 (hatched green), is occupied by Aimes Management Services Limited, under a lease expiring in 2265, at a peppercorn rent.

The area hatched blue is a possessory only title but is within the vendors ownership.

EPC Copies of the EPC certificates are available upon request.

VAT We envisage that the transaction will be structured as a TOGC (Transfer of Going Concern).

CAPITAL ALLOWANCES Further information regarding capital allowances is available upon request.

DATA ROOM Further information is available within a dedicated marketing data room. Please contact the agents for access.

PROPOSAL Offers are sought in excess of £12,500,000 (Twelve Million Five Hundred Thousand Pounds) subject to contract and exclusive of VAT. Assuming purchaser’s costs of 6.7% and attributing £1.5m to 4.25 acres of development land fronting Edge Lane, a purchase at this level reflects the following:

11.20 % Net Initial Yield 7.68% Triple Net Yield 16.42% Reversionary Yield £39 Capital Value per sq ft Should you require further information or wish to arrange a viewing please contact: 11/11

Andrew Hilbourne Jenna McIntyre James Porteous CONTACTS One Piccadilly Gardens One Piccadilly Gardens One Piccadilly Gardens Manchester M1 1RG Manchester M1 1RG Manchester M1 1RG T: +44 (0)161 238 6284 T: +44 (0)161 828 6405 T: +44 (0)161 238 7408 [email protected] [email protected] [email protected]

MISREPRESENTATION ACT 1967 | DISCLAIMER COPYRIGHT © JONES LANG LASALLE IP, INC. 2015. All rights reserved. Jones Lang LaSalle Limited for themselves and for the vendor of this property whose agents they are give notice that: a) The particulars are set out as general outline only for the guidance of intending purchasers and do not constitute, nor constitute part of, an off er or contract. b) All descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are given in good faith and are believed to be correct, but any intending purchasers should not rely on them as statements or representations of fact but satisfy themselves by inspection or otherwise as to the correctness of each of them. c) No person in the employment of Jones Lang LaSalle Limited has any authority to make or give any representation or warranty whatever in relation to these properties. SUBJECT TO CONTRACT S • EXCLUSIVE OF VAT • April 2016