St Colme Street / Edinburgh / Eh3 6Aa

1-3 ST COLME STREET / EDINBURGH / EH3 6AA

CITY CENTRE OFFICE INVESTMENT OPPORTUNITY WITH FUTURE REDEVELOPMENT POTENTIAL 1-3 St Colme Street 02

City Centre Office Investment Opportunity With Future Redevelopment Potential 1-3 St Colme Street

Investment Summary

• 1-3 St Colme Street provides an opportunity • The current passing rent is £212,500 per to acquire a substantial Georgian townhouse annum equates to £12.85 per sq ft in the centre of Edinburgh’s New Town. taking the reception at a half rate. Further open market rent review due • Edinburgh is Scotland’s capital city as well as on 27 October 2019. being a key financial and administrative centre. • Heritable interest (Scottish equivalent • St Colme Street is situated within Edinburgh’s of English Freehold). West End business district and offers a prestigious townhouse address. • Future redevelopment potential, subject to planning. • Category A listed and provides 16,677 sq ft of accommodation over lower ground, ground • JLL has been instructed by the same and three upper floors. vendor to market another serviced office let to Citibase Plc in Swallowfield, Reading. • Fully let to Citibase Plc (D&B rating of 2A 1) on a lease expiring 26 October 2024.

Offers are sought in excess of £2,670,000 (Two Million, Six Hundred and Seventy Thousand Pounds Sterling) for our client’s Heritable interest, subject to contract and exclusive of VAT.

A purchase at this level reflects an attractive net initial yield of 7.51% exclusive of purchaser’s costs of 5.93% and a low capital value of £160 per sq ft.

1-3 ST COLME STREET / EDINBURGH / EH3 6AA 03 River Forth

Waverley Station St Andrew Square

East End

Old Town

George Street Princes Street Queen Street

Charlotte Square New Town The Exchange

1-3 St Colme Street

West End 04

City Centre Office Investment Opportunity With Future Redevelopment Potential 1-3 St Colme Street

Edinburgh A90 A85 A85 Perth Edinburgh, the capital city of Scotland, is Edinburgh benefits from having two A82 a principal financial and administrative UNESCO World Heritage Sites within its A92 A91 St Andrews centre, housing both the Scottish boundaries, The Old and New Towns, along A84 A9 Parliament and the Scottish Government. with the Forth Rail Bridge nearby and A91 is therefore a major tourist destination, The population of the city is 487,500, attracting around 3.45m visitors a year Glenrothes

A82 A91 increasing to 1.3m within the Lothians, Fife M9 M90 with the second highest hotel occupancy A92 and Scottish Borders catchment area. It A92 rate in Europe. Kirkcaldy is the most prosperous regional city in the A811 Stirling A985 Dunfermline UK with one of the most highly educated There has been significant recent M80 Dalgety Bay North Berwick workforces in Britain. investment in city amenities and visitor Falkirk Helensburgh A90 attractions. This includes the £47m Dumbarton There are eight universities and further A80 Tranent refurbishmentD unoonof the NationalGreenock Museum of M8 A1 A1 education colleges in Edinburgh, with Scotland, which last year became the most M80

almost 80,000 students in the city. The M73 Livingston A720 8 visited attraction outside A7 London; the £37m M8 Edinburgh University of Edinburgh was ranked 24th refurbishment of the Commonwealth Pool, A8 A71 Paisley GLASGOW Penicuik A68 in the World University Rankings by The Largs which reopened in Spring 2012 and was A702

Times in 2015/16. In the past five years, Hamilton A73 used in the 2014 Commonwealth Games; West Linton A703 East Kilbride A7 more than 80 spin-out companies have A71 Carluke the £295m upgrade of Waverley Station;A737 come from the University of Edinburgh, A697 the £25m Haymarket Interchange; and the A721 M74 A7 Ardrossan 2 Galashiels with 95% of them still active. Peebles recent £60m extension of the Edinburgh A77 Kilmarnock Innerleithen International Conference Centre.Irvine A71 A71 A72 A76 Melrose

A78 Troon Moffat A702 A77 A7

A697 Prestwick

Ayr Cumnock “Edinburgh is Scotland’s capital Jedburgh

A70 A68 Campbeltown city as well as being a key financial M74 Hawick Alnwick and administrative centre” A76

A68

A7 1-3 ST COLME STREET / EDINBURGH / EH3 6AA A77 A701 A74 (M) Langholm Lockerbie

Dumfries

Newton Stewart Gretna NEWCASTLE

Stranraer Carlisle Wigtown Siloth M6 05

City Centre Office Investment Opportunity With Future Redevelopment Potential 1-3 St Colme Street

“Situated within the heart of Edinburgh’s St Colme Street West End business district and offers a St Colme Street is situated within the heart of Edinburgh’s West End business district and offers a prestigious townhouse address. prestigious townhouse address”

St Colme Street forms a strategic part of Edinburgh’s New Town by providing an important link road from Queensferry Road/Queensferry Street onto Queen Street and George Street. St Colme Street is situated immediately north of

Charlotte Square, Edinburgh’s prime townhouse address. HERIOT ROW

WEMYSS PLACE E QUEEN STREET C A L P Dean Y A The principal shopping and leisure facilities within Edinburgh, Princes Street R FREDERICK STREET Gardens O M

FORRES STREET and George Street, are adjacent, with leisure occupiers including Starbucks, QUEEN STREET THISTLE STREET

Jamie’s Italian, Brown’s, GBK and Gusto all within walking distance. NORTH CASTLE STREET E C A L P ALBYN PLACE E HILL STREET I L

N The property is in close proximity to public car parking and benefits from I

A GEORGE STREET excellent transport links. Edinburgh’s principal bus routes, tram route as well ST COLME STREET GLENFINLAS ST 1-3YOUNG STREETSt Colme Street as Waverley and Haymarket Railway Stations are nearby. FREDERICK STREET

ROSE STREET CHARLOTTE SQUARE

GREAT STUART ST CHARLOTTE SQUARE

RANDOLPH LANE GEORGE STREET CASTLE STREET LYNEDOCH PLACE CHARLOTTE SQUARE Charlotte Square PRINCES STREET ROSE STREET

QUEENSFERRY STREET CHARLOTTE SQUARE TRAM LINE

MELVILLE STREET LN Princes Street Gardens HOPE STREET LN PRINCES STREET MELVILLE STREET

N L STAFFORD STREET T E E R T S ALVA STREET Y R R RAILWAY LINE E F S LOTHIAN ROAD N E E U Q T E E R T S D SHANDWICK PLACE N A L T U WILLIAM STREET R

KIN Edinburgh Castle TRAM LINE G STABL ES RD

1-3 ST COLME STREET / EDINBURGH / EH3 6AA 06 07

City Centre Office Investment Opportunity With Future Redevelopment Potential 1-3 St Colme Street

Description Typical Floor Plate 1-3 St Colme Street comprises a self-contained The property is maintained in an excellent Georgian Category A listed townhouse of traditional condition by the tenant. There are kitchen 24 sandstone construction under a pitched and slated facilities on every floor with a shower located 23 roof. The office accommodation is arranged over within the basement. Disabled Gents Toilet Toilet lower ground, ground and three upper levels and 18 19 Ladies Toilet Admin Stair Meeting 25 The property has the benefit of under pavement Well totals 16,677 sq ft. Room Office vaults to the front, accessed from the associated Kitchen

Internally the property comprises cellular office courtyards, and a private garden to the rear Corridor Stair Well space, providing serviced office accommodation. that the tenants have the exclusive use of. The lift 26 Meeting Many of the original period features are retained occupiers of the street are also afforded access to Room 22 throughout the property and there is a passenger lift the Moray Place Gardens on payment of a modest

17 21 providing access from lower ground to third floors. annual charge. Reception Breakout Room

“Category A listed and providing 16,677 sq ft of accommodation over lower ground, ground and three upper floor”

1-3 ST COLME STREET / EDINBURGH / EH3 6AA 08

City Centre Office Investment Opportunity With Future Redevelopment Potential 1-3 St Colme Street

For illustrative purposes only

1 2

4 9 Accommodation Site Area The property has been measured in accordance with the RICS The site areas extends to 0.21 acres

49.4m 6

Code of Measuring Practice (6th Edition). We estimate the net (0.08 hectares), measured from Promap. 3 50.6m

Posts 4 1 4 internal floor area to be as follows: MORAY PLACE

1 1 T E E

T 3 4 3 Hotel

S 9 2

Description Use Area (sq m) Area (sq ft) 0

4 R 8

2 EPC A 3 U F T O R

S T 4 R

Lower Ground Office 345.01 3,714 A 8 E A copy of the EPC certificate is available E S

R S G T R

on request. 6 E 3 E Ground Office 316.38 3,406 P T L A

C 2 4 E 5 1 Ground Reception 25.06 270 10

2 11 2

4 First Office 322.73 3,474 Tenure 1 2

3 2

Second Office 308.91 3,325 Heritable interest (Scottish equivalent of 2 56.1m

English Freehold).

Third Office 231.27 2,488 1

7 ir's 9

ET incla ent

E S um 8 9 R ine on 0 ST ther M 1 ME Ca 1 0 OL Total 1,549.36 16,677 1 ST C

6 LB

R ts Well Pos T H

4 A 3 1

1 R

G L

O 1 L

1 E T

N T

E 0 F

1 I N S

L T 9 A “A substantial Georgian townhouse in the S

T 8 R

E seum T Mu

centre of Edinburgh’s New Town” 6 1 2

0m 10m 20m 30m 4

This plan is published for the convenience of identification only and although believed to be correct is not guaranteed and it does not form any part of any contract. © Crown Copyright. All rights reserved. Licence Number LIG0074.

1-3 ST COLME STREET / EDINBURGH / EH3 6AA 09

City Centre Office Investment Opportunity With Future Redevelopment Potential 1-3 St Colme Street

Tenancy Covenant Information The property is let in its entirety to Citibase Plc on a lease expiring 26 October 2024. Citibase Plc is the largest independent serviced office provider in the UK, providing serviced office accommodation and business The passing rent is £212,500 per annum which equates to £12.85 per sq ft, taking the administration and support services through a network of reception at a half rate. The rent is subject to an upward only open market rent review 44 centres nationwide. The organisation was established in 1993 on 27 October 2019. and is headquartered in Victoria, London.

Citibase’s ‘Freedom at Work’ ethos focuses on providing small businesses with an alternative in the business centre market through flexible short-term agreements, simple “Let to Citibase Plc (D&B rating of 2A 1) transparent billing arrangements, prestigious addresses, professional reception and on a lease expiring 26 October 2024” administration support services, immediate starts and a friendly environment. For year ending 29 February 2016, Citibase Plc delivered a record EBITDA of £2 million, a record operating margin of 15.2% and record cash at bank of £4.3 million. Sales Turnover and Profit Before Taxes increased by 8.5% and 557% respectively between 2015 and 2016. Citibase Plc is rated 2A1 by Dun & Bradstreet, representing a minimum risk of business failure. Their most recent financial results are summarised below:

29/02/2016 28/02/2015 28/02/2014

Sales Turnover £13,069,868 £12,045,564 £11,019,023 Profit Before Taxes £1,410,713 £214,604 £17,998 Tangible Net Worth £1,657,217 £529,348 £368,976 Net Current Assets (Liabilities) £135,264 (£696,061) (£1,643,150)

Further information can be found at www.citibase.com.

1-3 ST COLME STREET / EDINBURGH / EH3 6AA 10

Planning Capital Allowances Proposal The property is Category A listed and is located within There are no capital allowances available to the purchaser. We are instructed to seek offers in excess of £2,670,000 the New Town conservation area and a UNESCO World (Two Million, Six Hundred and Seventy Thousand Pounds Heritage Site. Sterling) for our client’s Heritable interest, subject to contract and exclusive of VAT. The Edinburgh development plan generally supports VAT conversion of traditional townhouse accommodation We understand the property is elected for VAT. It is the A purchase at this level reflects an attractive net initial from non-residential back to housing and a number of intention of the parties that the transaction will be treated yield of 7.51% exclusive of purchaser’s costs of 5.93% townhouse conversions have previously been approved as a transfer of a going concern (TOGC). and a low capital value of £160 per sq ft. within the New Town.

Interested parties are invited to make their own enquiries to the City of Edinburgh Council Planning Department.

1-3 ST COLME STREET / EDINBURGH / EH3 6AA 1-3 ST COLME STREET / EDINBURGH / EH3 6AA

CITY CENTRE OFFICE INVESTMENT OPPORTUNITY WITH FUTURE REDEVELOPMENT POTENTIAL 1-3 St Colme Street

Contacts Accompanying Sale For further information or to arrange JLL has been instructed by the same vendor to market an inspection, please contact: another serviced office let to Citibase in Swallowfield, Reading.

Colin Campbell For further information, please contact: 0131 301 6789 07900 062 909 Laura Houghton [email protected] 020 7852 4959 07738 625165 Janey Douglas [email protected] 0131 301 6718 Disclaimer Jones Lang LaSalle Limited (JLL) for themselves and for the vendors or lessors of this 07734 883 046 property whose agents they are, give notice that:- [email protected] a. the particulars are a general outline only for guidance and do not constitute, nor constitute part of, an offer or contract; b. all descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are believed to be correct, but any intending purchasers, tenants or third parties should not rely on them as statements or representations of fact but satisfy themselves that they are correct by inspection or otherwise; c. no person in the employment of JLL has any authority to make or give any representation or warranty whatever in relation to the property; d. the photographs show only parts of the property as they appeared when taken; e. unless otherwise stated, all prices are quoted exclusive of VAT, if applicable; f. reference to any mechanical or electrical equipment or other facilities at the property shall not constitute a representation (unless otherwise stated) as to its state or condition or that it is capable of fulfilling its intended function; SWALLOWFIELD, READING © 2016 Jones Lang LaSalle IP, Inc. All rights reserved.