Office Investment Prime, Secure, CityCentre No 3CapitalQuarter

Investment Opportunity 1 02 No 3 Capital Quarter 02 Exclusive of VAT. Subject toContract& £348 persqft. 7.72% and alowCapitalValue of standard purchaser’s costsof Yield of6%,afterdeducting reflecting anattractiveNetInitial Eight HundredThousandPounds) £26,800,000 (Twenty SixMillion, Seeking offersin excess of Opportunity The Manchester, fortotalreturnsoverthenext 2years. Cardiff isranked 3rdintheUK,afterBristoland delivered in2019or2020. with nonewvacantGradeAspacesettobe A chroniclackofsupplywillcatalyserentalgrowth inward occupiers. UK cityanditsabilitytoattractnew, innovative, and , evidencingitsgrowing profileasamajor Which? isanewoccupiertoCardiff, alongwithSky of the income. headquartered inWales andattributableto84.5% (4A1). AdmiralInsuranceisaFTSE 100Company (5A1) andWhich? Consumerservices Multi letwithtwohigh-calibretenants,Admiral expiry (9.74 yearstobreakoptions). Long-term, secureincomewith 10.51 yearstolease Quarter hasachievedover£23.00persqft. evidence alreadyemergingforgrowth.No4Capital to alowaveragerentof£22.50persqftwithstrong Current rentof£1,732,339 perannum,whichequates seven storeyswithopenplan,flexible floorplates. 76,994 sqftofGradeAofficeaccommodationover BREEAM Excellent standard. been speculativelybuilttoahighspecificationand No 3CapitalQuarterisatrophybuildingandhas Quarter, primeofficecore. formCardiff's Callaghan Square, whichcollectively, withCapital It is withincloseproximity toCentralSquareand an integralpartoftheCentralBusinessDistrict. forms aprestigiousbusinesslocationthatis Capital Quarterisamixed usedevelopmentand Centre andtheflagshipJohn Lewis store. Station, theprimeretailcoreofSt David’s 2Shopping Located withincloseproximity toCardiffCentral centres intheUK. capital citytoLondon andoneofthetoptierregional Cardiff is ’ capitalcity,theclosestEuropean investment intheheartofCardiffcitycentre. Opportunity toacquireabrandnew, freeholdoffice 03 03 Investment Opportunity No No 04 No 3 Capital Quarter Cardiff Location Central 1 2 3 4 5 6 7 8 9 6 5 2 4 3 7 1 11 10 BBC Cymru Central Square Principality Stadium Cardiff Central Rail Station Lloyds BankGroup Cardiff & Vale College Central Quay 12 13 10 12 14 13 11 9 8 14 John Street Site John Lewis 2 CallaghanSquare 1 CallaghanSquare Government PropertyUnit Centrica To CardiffBay 22 15 16 18 20 19 16 15 21 18 17 19 No 2CapitalQuarter No 1CapitalQuarter Capital QuarterCarPark No 4CapitalQuarter Motorpoint Arena Admiral HQ St. David’s 2 17 20 21 22 23 26 25 22 24 23 No 3CapitalQuarter Parking Driscoll Buildings Novotel Hotel&Gym Queen Street Rail Station New SmartBridge Ibis Hotel 24 25 26 To M4 Junction 29 CF M4 Motorway To CardiffBay& 10 4BZ 05 Investment Opportunity CALLAGHAN SQUARE RADISSON BLU JOHN LEWIS JOHN STREET 06 No 3 Capital Quarter Cardiff (Completion June2019) STUDENTS

T E E R T S T R E R E H FUSION ENGLAND EDWARD

WHARF H T R O N ALTO LUSO

PARK INN CANAL NUMBER FIVE APARTMENTS RESIDENTIAL OFFICE +RETAIL SPACE NUMBER FOUR 96,870 SQFT ATLANTIC WHARF MULTI STOREY CAR PARK 296 SPACES BIG SLEEP WESTERN COURTYARD NUMBER MOTORPOINT ARENA

THREE ACCESS ROAD ACCESS EAST WEST PEDESTRIAN ROUTE ETAP HOTEL NUMBER ONE NUMBER TWO 80,000 SQFT 82,000 SQFT

OFFICE

OFFICE

SMART WAY SMART

SMART BRIDGE SMART T E E R T S L L A D N Y T STUDENTS STUDENTS VIRIDIS VIRIDIS EASTERN COURTYARD ATLANTIC HOUSE NOVOTEL HOTEL STUDENTS STUDENTS VIRIDIS VIRIDIS CAPITAL ADAM STREET CAR PARK LAW

UNIVERSITY OFSOUTHWALES ELLEN STREET ELLEN INFRASTRUCTURE

R O

BUUK S EQUINITI E M

A

R

Y

S

T

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E T specification of theofficesandpotential forrentalgrowth. Completion. Thisfullyunderwrites thequalityoflocation, developed withnopre-lets, buthavingallspaceletbyPractical can beclearlydemonstrated bybothofficesbeingspeculatively The levelofdemandbyoccupiers forspaceatCapitalQuarter at CapitalQuarter. thereby addingfurtherrichnesstotheprestigiousoccupier pool is entirelypre-lettoGeldardsLLP, SkyandOptimumCredit, with practicalcompletionforecastforQ22019. Thebuilding No 4whichcomprises97,000 sqftofGradeAaccommodation Driscoll Buildings,JRSmartbeganspeculativelydeveloping Following thesuccessofNo1,2and3CapitalQuarter and the heartofCapitalQuarter. Western Courtyardlandscapedareawhichwillbelocatedin The amenityofferatCapitalQuarterwillbecompletedbythe opposite providesamembersgym. following practicalcompletionofNo4.Inaddition,theNovotel complemented byaCo-Op(inlegals)atNo2andfurtherretail cafe/restaurant offerhasprovedverypopularandwillsoonbe Capital Quarteralsohasagrowingamenityoffer. TheKin&Ilk accommodation practicallycompletes. development oncetheresidentialtowerandadjoiningstudent Quarter alone. Thiswillswellto5,000peoplelocatedinthe of No4,therewillbeover3,000employeesonsiteatCapital Square andCentralSquare. Followingpracticalcompletion an integralpartoftheprimeofficecorewithbothCallaghan high calibreoccupiersithasattracted.CapitalQuarterforms premier officeaddressesinthecitywhichisreflectiveof Capital Quarterhasrapidlyestablisheditselfasoneofthe Smart Bridge. are justafewminutes’ walkaway, accessedviathenew£2.5m John Lewis departmentstore, andothercitycentreamenities commuter hub).Theprimeretailcoreincludingtheflagship Cardiff andQueen Street station(themainlocal/regional Central Railway Station, themaininter-citytransporthubin It isstrategicallylocatedwithineasywalkingdistanceofCardiff build-to-rent residentialtower. construction isduetocommenceinlate2019ona307unit and a296spaceprivatemultistoreycarpark.Inaddition, over 370,000 sqftofGradeAoffices,over1,200studentbeds comprises anexciting 8acremixed usedevelopmentincluding of CardiffcitycentreandformsparttheCBD. It Capital QuarterissituatedonTyndall Street inthe heart Masterplan Capital Quarter

07 Investment Opportunity 08 No 3 Capital Quarter Cardiff Core Citiesoverthepastyear OF THEUK GROWTH EARNINGS HIGHEST including London terms (26%)overthenext 20years– than anyotherUKcityinpopulation Cardiff isforecastedtogrowfaster UK CITY GROWING FASTEST HUB CENTRAL of choice The UKcity In fullorparttimeeducation STUDENTS 75,000 of Wales

5G after theirstudies to stayinCardiff Of studentsplan 45% 21.3m To CardiffCityCentre DAILY COMMUTERS 90,000 over thenext 2years Bristol andManchester, fortotalreturns Cardiff isranked 3rdintheUK,after FOR TOTAL RETURNS THIRD to trial5Gnetworks One offewcitiesselected the last10years population over Growth inthe 12% IN THEUK on 2016 - 5%increase Visitors in 2017

Play Work Live Framework. ranked 6thinthe recentResearch Excellence University isaRussellGroupuniversityand city withacaptive, skilledworkforce. Cardiff remain inCardiffpost-studiesprovidingthe survey reportsthatatleast45%planto drive. ArecentjointKnightFrank /UCAS Cardiff withover100,000 withina45minute full orparttimehighereducationstudentsin Cardiff ishometo3universitieswith75,000 large studentpopulation the firstrolloutofanew5Gnetwork. network andisoneofthecitiesselectedfor the citycentre, acrossthepublictransport a uniquecontiguousfreeWi-Finetworkin The cityisexceptionally wellconnectedwith digital connectivity a leisureandcommuterperspective. improve theaccessibilityofCardifffromboth and extended serviceswhichwillgreatly fleet, electrificationofthe existingvalleylines project includingreplacementoftheentire Project isa£5billionrailinfrastructure times toLondon. TheSouthWales Metro connectivity withsignificantlyfasterjourney completes in2019andwillimproveCardiff’s Electrification ofthemainrailwayline rapid transport 09 Investment Opportunity 010 No 3 Capital Quarter Cardiff 90,000 dailycommuters. commuter belt (ONS Annual SurveyofHours andEarnings). growth oftheUKCoreCitiesoverpastyear Cardiff hasbenefittedfromthehighestearnings highest earninggrowth city isranked 36thglobally(INSEAD). talent, afterLondon andaheadofBirmingham.The global rankingsin2018forattractingandretaining Cardiff wasthesecondhighestUKcityin magnet fortalent tasked tobuildonthissuccess. Core City. The CardiffCapital Regional Dealis fastest growthratecomparedtoanyotherUK highly skilledjobsintheprevious2years.The The privatesectorhasgeneratedover15,000 job creation professional services sector. to attracting andgrowingthefinancialand the onlyEnterpriseZoneinUKdedicated Centred onCardiffCentral Railway Station, itis cardiff centralenterprisezone of privatesectorinvestment. new skilledjobsandleverageanadditional£4bn projects, createanewinnovationhubwith25,000 tasked withpoweringforwardmajorinfrastructure Deal whichisa£1.2bnregionalinvestmentvehicle Authorities tosigntheCardiffCapital Regional Cardiff isoneofaconglomerateten Local city deal cardiff capital regional Play Work Live 1 £1.2bn INVESTMENT ONE OF ONLY

Play Work Live Cardiff, a5%increaseonthepreviousyear. the city. In2017,21.3millionvisitorscameto domestic andinternationalvisitorscomingto Cardiff hasoneofthefastestgrowthrates visitor’s choice Lewis storeoutsideof London. and isanchoredbythesecondlargestJohn generates annualfootfallofcirca40million per year. St. David’s 2ShoppingCentre cultural facilities,drawinginmillionsofvisitors Cardiff boastsunrivalledretail,sportand retail, tourism &leisure life balanceacrosstheregionisexceptional. European capitalcitytoLondon andthework/ one Cityforqualityoflife. Itistheclosest Cardiff isconsistentlyranked theUK’s number quality oflife its kindinEurope. Welsh festivalandthe largestculturaleventof hosted theNationalEisteddfod,anannual Wales MillenniumCentre. Cardiff recently attractions suchasCardiffCastleandthe Cardiff isthehubof Wales withmajorcultural culture Covering 45,000nautical miles. UK stopontheVolvo 2018OceanicRace – top musicactsin2018.Cardiffwastheonly two worldtitleboxing matches andaraftof Champions League Final.Ithasalsohosted attention whenithostedtheUEFA 2018 corner stoneofthecityandheldworldwide home oftheWelsh RugbyUnion,itformsthe roofed stadiumintheworld.Besidesbeing renowned globallyandisthesecondlargest The PrincipalityStadium isaniconicvenue sport andevents 011 Investment Opportunity 012 A City on 013 the Move

The confidence exuberating from Cardiff can capital quarter john street be attributed to this extremely positive growth Achieving a true equilibrium of mixed-use, story with its city centre boasting a raft of new A 2.5 acre site located between Capital the scheme totals over 370,000 sq ft of developments. Quarter and Callaghan Square will bring Grade A office accommodation and over forward a mixed-use scheme comprising of central square 1,200-student beds across two schemes. approximately 300,000 sq ft. The first phase The BBC have occupied a 170,000 sq ft iconic, In addition is an on-site 296 space MSCP will comprise a 100,000 sq ft Grade A office Foster & Partners designed new HQ at Central offering occupiers a core city centre location building providing further opportunity for Square, relocating 1,200 staff members into with immediate access to additional car headline rents to be set, with future phases the city centre. In a similar fashion, the UK parking. Shortly the scheme is due to be providing hotel and retail amenities. Government has pre-let 266,000 sq ft to create complemented with the construction of a a Government Hub at Six Central Square and 307-unit build-to-rent tower with ancillary relocate a further 4,000 jobs in to the city centre. retail space. No 3 Capital Quarter was the Notable occupiers across One and Two Central third phase of this successful development. Square include First Rand , Blake Morgan, All four phases are fully let together with the , Amber Energy, and original Driscoll Buildings, having completed , amongst others. a succession of landmark lettings to both new and indigenous occupiers to Cardiff. The Interchange will comprise a mixed-use development of 300+ Build-to-Rent units, 85,000 Occupiers include both domestic and sq ft of Grade A offices and a multi-storey car international organisations such as WSP, park. All above a new integrated bus station on Alert Logic, Opus Energy, Development the ground floor offering continuity between rail , Which? Consumer Services, and bus services. Admiral Insurance, Geldards LLP, Sky, callaghan square Optimum Credit, Home Office, Equiniti, These projects are part of the wider Central Public Health Wales, BUUK Infrastructure, Consisting of five buildings totalling 300,000 Square development, forward funded entirely by Atkins and Lambert Smith Hampton. sq ft, this district is adjacent to Capital Legal & General for £450 million. Quarter and Cardiff Central Railway Station and home to major occupiers including central quay Eversheds, HSBC, AECOM, AON, Centrica, Brewin Dolphin and Deloitte. The south Masterplan for the former site on side comprises a 4.5 acre development site the south side of Central Square comprises more purchased by the and than 2.5 million square feet of development. This will come forward to provide further mixed- includes 1,000 residential apartments, Grade A use development and place-making. offices, hotel, bars/restaurants and a 600-space MSCP. The scheme will also incorporate a rapid-

No 3 Capital Quarter Cardiff transport metro link. Investment Opportunity 014 No 3 Capital Quarter Cardiff ever-expanding array ofglobaldestinations. West ofthecitycentreandprovidesdirectflights toan Cardiff InternationalAirport islocated11milesSouth- the endof2019. minutes followingcompletionofelectrificationworks by Street. Journeytimeswillcompresstojust1hour40 journey timesof2hourstoLondon andBirminghamNew connectivity isviaCardiffCentral Railway Stations with Junctions 29-33oftheM4Motorway. Mainlinerail It islinked tomajornationalroad infrastructurevia both domesticallyandinternationallybyroad,rail air. Cardiff isacapitalcitythrivingonitsrapidconnectivity Connectivity The TALBOT PORT 42 41 41

40 A465 39 38 BRIDGEND 37 36 MINEHEAD 35

TYDFIL MERTHYR BRECON

M4 A470

A48

AIRPORT CARDIFF 34 A470 TAUNTON 33

BRIDGWATER A4050 A470

A4232 BARRY 32 CARDIFF

A465

A48 30

ABERGAVENNY M4 29 28 27 26

A48 CHANNEL M4 BRISTOL NEWPORT 22 24 WESTON-SUPER

M5

A40 A39 23 GLASTONBURY CHEPSTOW

A370 -MARE M5

BRISTOL M4 MONMOUTH

A40 M48

M5 AIRPORT BRISTOL

M32 ROSS-ON-WYE

A4

A39 A36 GLOUCESTER M5

BATH

M4

A36 A4 CHIPPENHAM

CHELTENHAM

A350 A36

CIRENCESTER A429 A417 SWINDON

SALISBURY

A419 M4

Key Newport •SwanseaBristolBirmingham

Travel CARDIFF Reading •London •Manchester

A39 *Severn Bridgetollsnowabolished London Reading Birmingham Bristol* Swansea Newport by road

SWANSEA A30 M74

A40

A38

A5 connected to M4 147 miles 114 miles 113 miles 43 miles 41 miles 15 miles M8 NEWPORT M5

BRISTOL M6

A90

A49 MANCHESTER A68

M50

SWINDON

A685

A69 M6

M5 BIRMINGHAM Manchester London* Reading* Swindon* Bristol* by rail circa 20minutesfollowingelectrification. *Journey timestoLondon willcompressby

A1 A1(M)

M6 READING M1

M4 M40

M3 M1 190 mins 127 mins 96 mins 60 mins 50 mins

LONDON

A1

M25

M

1 1 015 Investment Opportunity 016 No 3 Capital Quarter Cardiff Description The

tenant boardandhigh-speedsecuritygates. flooding theareawithnaturallight,anelectronic informal meetings,animpressivefullheightatrium coffee outletwithpremiumfurnishingsidealfor welcome tothebuildingwitharelaxed, high-quality generously sizedreceptionareaprovidesawarm attractively landscapedWestern Courtyard.The of theblue-chipcovenantssecured,setwithin truly justifiableof‘trophy’assetstatusandworthy completed inAugust 2018.Itboasts aspecification of GradeAaccommodationoversevenfloors No 3CapitalQuartercomprises76,994sqft 017 017 Investment Opportunity 018 No 3 Capital Quarter Cardiff | | | | | | | | | | | | | | | | | | | | | | | | flexible power busbars Full access raised floorswith with LEDlighting Metal tiledsuspendedceilings Large roof terrace Integral coffee shopamenity high speedsecuritygates Electronic Tenant board and exceptional natural light Central atrium providing area Secure reception andbreakout Four x16personpassenger lifts 11,900 sq ft Flexible floorplates of Fully DDA compliant to achieve ‘A’ status four primebuildingsinCardiff EPC Rating A(21).Oneofonly BREEAM Excellent specification | | | | | | | | | | | | | | | | | | | | Western Courtyard Green, openspace at the system Roof mounted photovoltaic facilities Landlord shower andlocker 1:6.5 sqm Occupational densityofupto spaces 36 secure undercroft bicycle adjacent and new 296space MSCP 12 secure undercroft carparking controlled lighting Automatic smartoccupancy glazing Full heightfloor to ceiling to ceiling heightsof2.70 metres Generous typicalfinishedfloor Comfort cooling andheating 019 019 Investment Opportunity 020 No 3 Capital Quarter Cardiff Total Ground FloorOffices Floor 1Offices Floor 2Offices Floor 3Offices Floor 4Offices Floor 5Offices Floor 6Offices The IMPS3areasareasfollows: Accomodation The

76,994 10,222 SQ FT 11,902 11,064 11,897 11,897 11,897 8,115 7,152.92 1,027.87 1,105.26 1,105.26 1,105.26 1,105.72 949.65 753.90 SQ M 021 Investment Opportunity 022 No 3 Capital Quarter Cardiff Italy, Spain,USA, Canada,IndiaandMexico. within theU.K. TheGrouphasoperationsinFrance, insurance, extending topersonalandcarfinance The servicesofferedincludecar, homeandtravel second Welsh company toeverdoso. 100 Companieslistin2007andbecameonlythe continued growth,AdmiraljoinedtheFTSE Top highest valuedpubliccompanyinWales. After Group wasacceleratedintopolepositionofthe capital raiseeverforaWelsh company. Admiral 2004 andindoingsosettherecordforbiggest Admiral floatedonthe in Admiral, totalling207,000sqft. within a5minutewalkofCapitalQuarter, inTy its UKnetwork.Admiral’s headquartersarebased services companyboasting10,000peopleacross UK’s mostprofitableandrapidlygrowing financial in 1993,AdmiralGrouphasbecomeoneofthe and headquarteredinWales. Sinceitsinception Admiral InsuranceisamajorFTSE 100company Insurance Admiral covenant profile it’s UKnetwork 10,000 peopleacross for aWelsh company biggest capitalraiseever Set therecordfor and SouthWales." longterm commitmenttoCardiff environment andunderpinsour exciting, collaborative working lends itselftocreatingan head office. Theofficedesign excellent accessibility toour public transportlinks with our staffwithconvenient its centrallocationproviding was anaturalchoicethrough "Choosing No3CapitalQuarter Huw Llewellyn,EstateDirector, Admiral 100 company Major FTSE in 2018 customers 6.51m Tangible NetWorth Pre-tax Profit Turnover growth to6.51 millioncustomers(13%increase). Latest figuresin the2018resultspostfurther which wasan11%increase onthepreviousyear. latest 2017figuresreported 5.73 millioncustomers the 5millionceilingfor first timein2016.The year sinceitslaunchin1993. Thisbroke through has consistentlygrownitscustomer baseyear-on- records onturnover, profitanddividend.Admiral out of26yearssincelaunchwith2018breaking Admiral Grouphasreported‘recordprofits’ in24 company performance Further informationavailable:www.admiral.com functions includingdirectmotorinsurancebrokerage andothersharedgroupfunctions. EUI LimitedisthelargestsubsidiaryofAdmiralGroupPlcandprovidesgroup’s core EUI Limited(Tenant) -5A1covenantand84.5%ofincome. Admiral GroupPlc–5A1covenant of income 84.5% Tangible NetWorth Pre-tax Profit Turnover 31st December2017 31st December2017 covenant 5A1 GBP (000’s) GBP (000’s) £403,500 £266,626 £486,700 £170,854 £619,100 £116,480

31st December2016 31st December2016 GBP (000’s) GBP (000’s) £408,600 £548,800 £278,400 £236,124 £104,415 £167,415 Admiral CustomersbyYear 5.73m 5.73m 6.51m 31st December2015 31st December2015

2016 GBP (000’s) GBP (000’s) £473,400 £467,000 £368,700 £315,529 £162,235

2017 £57,864

2018 11% 13% 023

Investment Opportunity 024 No 3 Capital Quarter Cardiff covenant profile organisation Not-for-profit consumer bodyintheUK Largest independant its profitsusedtosupporttheWhich? Group. for-profit charitableorganisationwiththeentiretyof independent consumerbodyintheUK.Itisanot- 1.5 millionmembers,makingWhich? thelargest and publishingresults.Ithassincegrowntoover for consumers,throughtestinggoods,services campaigning toprotectrightsandraisestandards Which? wasfoundedin1957andhassincebeen Capital QuarterastheirdestinationwithinCardiff. locations inrecentyears,withmostalsoselecting Monzo whohavealsoselectedCardiffoverother follow Aon,AlertLogic, OpusEnergy, Skyand its abilitytoattractnewinwardoccupiers.They flourishing reputationofthecitythatisbolstering other majorUKcities.Thisdemonstratesthe as anewoccupierandselectedthelocationover Which? ConsumerServiceshasenteredCardiff Services Consumer Which? members 1.5 million in 1957 Founded standards Raising 4A1 covenant Which Ltd - Pre-tax Profit Turnover Tangible NetWorth Further informationavailable:www.which.co.uk will services. its magazinesandbooks publications,digitalproducts,legal,mortgage, comparisonand The tenant,Which? LimitedprovidesalloftheGroup’s commercialoperationsincluding 30th June2017 GBP (000’s) £95,210 £14,403 £12,001 4A1 15.5% covenant 30th June2016 GBP (000’s) of income £22,072 £14,596 £96,341 30th June2015 GBP (000’s) £23,565 £95,893 £18,316 025

Investment Opportunity 026 No 3 Capital Quarter Cardiff 84.5% (5A1 D&BRATING) EUI LTD

Split Income

15.5% (4A1 D&BRATING) WHICH?

Term (WAULT) of10.51 toleaseexpiries (9.74 tobreakoptions). occupational leaseswithaWeighted Average Unexpired Lease The propertyislettotwooccupationaltenantsbywayofseven tenancy schedule Total GF 1st 2nd 3rd 4th 5th 6th FLOOR Insurance Admiral EUI Ltd t/a Insurance Admiral EUI Ltd t/a Limited Which? Insurance Admiral EUI Ltd t/a Insurance Admiral EUI Ltd t/a Insurance Admiral EUI Ltd t/a Insurance Admiral EUI Ltd t/a TENANT SQ FT(SQM) AREA -IPMS (7,152.92) (1,027.87) (1,105.26) (1,105.26) (1,105.26) (1,105.72) (949.65) (753.90) 76,994 10,222 11,902 11,064 11,897 11,897 11,897 8,115

2018 10th July 2019 1st March 2019 1st March 2019 1st March 2019 1st March 2019 1st March 2019 1st March START LEASE 2033 9th July 2029 February 28th 2029 February 28th 2029 February 28th 2029 February 28th 2029 February 28th 2029 February 28th EXPIRY LEASE 15 10 10 10 10 10 10 (YEARS) TERM 2028 1st July ------OPTIONS BREAK MARKETING £1,732,339 RENT (£PA) £229,989 £248,946 £182,596 £267,795 £267,671 £267,671 £267,671 (£ PERSQFT) £22.50 £22.50 £22.50 £22.50 £22.50 £22.50 £22.50 RENT

COMMENTS 5 yearlyupwardonlyrentreviews. up). exercised inyear10(nottopped free affordedifbreakoptionisnot Vendor. Afurther4monthsrent commencement toppedupbythe 18 monthsrentfreefromlease 5 yearlyupwardonlyrentreview. Vendor willtopuptomarket rent. Half rentuntil28thFebruary2023. Terms reflectiveofGF. Terms reflectiveofGF. Terms reflectiveofGF. Terms reflectiveofGF. Terms reflectiveofGF. 027

Investment Opportunity 028 No 3 Capital Quarter Cardiff No 3 Services &Parking Oce Oce Oce Oce Oce Oce Oce Central Atrium Reception &Co eeShop Oce Oce Oce Oce Oce Oce by theLandlord. Full details areavailableuponrequest. There isafullservicecharge budgetbeingadministered service charge Freehold. tenure EUI Ltd t/aAdmiralInsurance EUI Ltd t/aAdmiralInsurance Which? Limited EUI Ltd t/aAdmiralInsurance EUI Ltd t/aAdmiralInsurance EUI Ltd t/aAdmiralInsurance EUI Ltd t/aAdmiralInsurance occupier 029

Investment Opportunity 030 No 3 Capital Quarter Cardiff drive rentswithlimitedincentives required. stock andusingtheconstrained supplyto Landlord’s areturningtorefurbishingexisting reaching PCthroughout2019 and2020. Grade Abuildings,offering availablespace, prior topracticalcompletion.Withnoother pre-let toGeldards,SkyandOptimumCredit comprising 87,860 sqft,andwillbefully is thecompletionofNo4CapitalQuarter, The onlynewspacebeingdeliveredin2019 availability standsat100,792 sqft. up basedonthepreviousyear. At Q12019, average andonly2.5months’ worthoftake- at just103,478sqft,33%belowthe10year Grade Aavailabilityattheendof2018stood availability andsupply supportive, devolvedGovernment. companies, withthebackingofa to supportingprofessionalandfinancial the onlyUKenterprisezonededicated up astheCentralCardiffEnterpriseZone, and CallaghanSquare. TheCBDdoubles- core officemarket includingCentralSquare District, aroundwhichformsthecitycentre within thecoreofCentralBusiness Capital Quarterformsastrategiclocation approximately 12.8millionsqft. has agrowing,estimatedofficestockof in thetop7UKregionalcities.Cardiff investment statisticscementingitsposition centres intheUKwithitsoccupierand Wales, andoneofthemajorregional Cardiff istheprincipalofficemarket within demand outstripssupply Market The rental growth. limited supplywhichisfuellingcontinued evidences pentupdemandoutstripping average ofleasingvolumesandfurther 499,215 sqft.Thisisequaltothetenyear 2018, take upexpectedly taperedbackto With constrainedGradeAandBsupplyin respectively. in thecity, at685,600and703,900sqft representing tworecordyearsoftake up occupational statisticswith2016and2017 Cardiff continuestoboast exceptional take up

take-up and availability (sqft) 200,000 400,000 600,000 800,000 2009 2010 2011 City centretake up(sq ft) 2012 2013 12% 17% 20% 25% 2014 0% 2% 2% 9% 4% 9% 2015 Retail, DIstribution&Transport Manufacturing &FMCGs Public Sector&Not-for-profit Other Charities Technology, Media&Telecomm Construction &Engineering Professional Services Phanmeaceutical, Medical,Healthcare Finance, Banking,Insurance Availability 2016 2017 2018 Q1 2019 9% 4% 12% 9% next nearestcapitalcity, London. Government andshortening journeytimestothe competitive overheadcosts, asupportive, devolved life balance, aswell asatalented,skilledworkforce, include competitivelivingcosts,highqualitywork draws towinthe‘warontalent’. Suchfactors and OpusEnergy, throughitsarsenalofcompelling evidenced byWhich?, Monzo, Sky, Aon,AlertLogic capture newinwardinvestmentandoccupiers,as just 2%oftotaltake up. Cardiffiswellpositionedto for 25%ofdeals,withthePublicSectorrepresenting Banking andInsuranceledthetake up, accounting reliance onanyonesectoroftheeconomy. Finance, a diverserangeofbusinesssectors,withnoover- Demand inCardiffcontinuestobegeneratedfrom demand take-up by sector 2018 2% 2% 17% 25% 20% 031 Investment Opportunity

032 No 3 Capital Quarter Cardiff regional primerents-persqftq22019 £18.00 £27.00 £36.00 • • • headline rentlevels: has continuedtosupportrentalgrowthbelow up demand,coupledwithlowlevelsofsupply a ceilingonheadlinerentsinCardiffbutthepent per sq ft.ThelackofnewGradeAsupplyhasput neighbour,Cardiff’s Bristol,currentlyat£35.00 This isextremely competitiveincomparisonto per sqftwiththenext phaseofdevelopment. £25.00 persqftandareforecasttoreach£27.00 Prime officerentsinCardiffcurrentlystandat rents andfuturegrowth £0.00 £9.00 16% growthover1year. between 2016and2017. Central Square:£21.00to£25.00persqft 13% growthover1year. between 2017and2018. Capital Quarter:£20.00to£23.00persqft 8.7% growthover1year. between 2017and2018. St Patricks House:£21.00to£23.00persqft Newcastle Cardiff Sheffield Leeds Glasgow to £23.00persqftover1years. CQ officerentshaveincreasedfrom£20.00 reach £27.00persqftby2020/2021. primeofficerentsareforecastto Cardiff's £27.00 size ofapproximately 12.8millionsqft. Cardiff hasagrowing,estimatedofficestock 12.8m sqft 13% growth Aberdeen Birmingham Manchester per sqft Edinburgh Bristol £150 £225 £300 cardiff officeinvestmentvolumes £m Q1 2018 Q1 2018 Q3 2018 Q1 2018 Q1 2018 Q1 2019 Q1 2019 Q1 2019 Q1 2019 Q1 2019 DATE key lettingtransactions London andSouthEastMarkets, withthe exceptional valuecomparedtoCentral regional officemarket capitalisingonits Cardiff israpidlybecomingaleading 2016 at£44.66bn. levels of£65.6bn2017but28%ahead during 2018,slightlylowerthantherecord represented £62.1bn ofinvestmentvolumes The UKcommercialinvestmentmarket investment activity £75 £0 2009 BUILDING No 3CapitalQuarter St Patrick’s House 3 AssemblySquare No 3CapitalQuarter No 4CapitalQuarter 2 Kingsway 2 Kingsway No 4CapitalQuarter No 4CapitalQuarter 3 CallaghanSquare 2010 2011 OCCUPIER Which? Limited Keolis Amey Knight Frank Admiral Geldards LLP Monzo Bank St JamesPlaceWealth Management Optimum Credit Sky Grant Thornton 2012 2013 investor demandforopportunitiesinCardiff. average, thisdemonstratestheunrelenting year andmorethandoublethe10-year volumes maintainingpaceontheprevious level of £289 million in 2017. With 2018 office million in2018,almostequallingtherecord Office investmentvolumestotalled£286 by amature, growingoccupationalmarket. outstanding liquiditywhichisunderpinned buyers bothUKandgloballyitoffers targeting thecity. Throughitsdepthof attention ofglobalinvestorsconsistently 2014 2015 SIZE (SQFT) 30,453 65,091 38,910 18,567 11,550 6,500 14,156 3,395 7,035 11,194 2016 RENT (PSF) 2017 £22.00 £22.50 £22.50 £23.00 £23.00 £23.00 £23.00 £23.00 £23.00 £21.75 2018 033

Investment Opportunity 034 No 3 Capital Quarter Cardiff (TOGC). treated asaTransfer ofaGoingConcern anticipated thatthetransactionwillbe The propertyiselectedforVAT. Itis vat Information tobeprovideduponrequest. capital allowances Offer Under DATE key investmenttransactions 2019 February 2018 November 2018 November 2018 September 2018 July 2018 March 2017 July BUILDING Kings Orchard The BrinellBuilding Ty Admiral Atlantic Quay1 Aurora Greenside 2 CallaghanSquare One CentralSquare Bristol CITY Brighton Cardiff Glasgow Bristol Edinburgh Cardiff Cardiff 89,010 206,833 135,333 (SQFT) 45,208 65,253 121,737 37,828 95,771 SIZE

city centrewithanArating. No 3isoneofonlyfourbuildingsinCardiff copy ofthereportisavailableuponrequest. The buildinghasanEPCratingofA(21).A epc 8 (YEARS) LENGTH INCOME 10 21.25 11.8 9.1 8 4.50 9.25 Brittan LLP Bevan TENANT Multi-let Insurance Admiral Multi-let Multi-let Multi-let vacancy) Multi-let (37% Multi-let PRICE c.£34.1m £37m £86.85m £54.74m £62.13m £17.57m £14.875m £51m YIELD INITIAL NET c.5.25% 4.75% 4.00% 5.00% 4.75% 5.27% 5.97% 5.49% (PSF) VALUE CAPITAL c.£383 £567 £420 £450 £649 £464 £329 £377 035

Investment Opportunity 036 No 3 Capital Quarter Cardiff Considerations Investment

Capital Quarteritself. evidencing thepaceofrentalgrowthwithin let, achievingrentsof£23.00persqft, completion andisalreadyfullypre- No 4CapitalQuarterisnearingpractical offices at£25.00persqft. is lowcomparedtoprimerentsforCardiff an averagerentof£22.50persqftwhich Current rentof£1,732,339 perannumreflects offer atPracticalCompletion. No 3CapitalQuarterwas100%letorunder Services (4A1D&Band15.5%ofincome). 84.5% ofincome)andWhich? Consumer breaks) toAdmiralInsurance(5A1 D&Band 10.51 yearssecureincome(9.74 yearsto top terraces. communal coffeeshopamenityandroof reception withcollaborativespace, an impressivefullheightatrium,spacious An assettrulyworthyof‘trophy’statuswith floor plates. benefitting fromopenplan,flexible is constructedtoahighspecification, Completed inJune2018,thebuilding Lewis store. and leisuredistrictwithitsflagshipJohn Central Station andtheheartofretail District, withincloseproximity toCardiff Located atthecoreofCentralBusiness of themajorregionalcentresinUK. Cardiff istheCapitalCityof Wales andone BREEAM Excellent. Freehold. to blue-chipcovenants. growth whilstbenefittingfromsecureincome tier UKcity, offeringopportunitiesforrental fully-let, GradeAofficebuildinginatop exceptional opportunitytoacquireamodern, prime officeinvestmentsthisrepresentsan In amarket characterisedbyashortageof the next 2years. regional citiesintermsoftotalreturnsover translated intothecitybeingwithintop3 inward occupiersandinvestmentwhichhas strong occupationaldynamicsattracting Cardiff isavibrant,innovativecitywith infrastructure project. and thewider£1.2bnSouthWales Metro London, cuttingjourneytimes by20minutes electrification ofthemainrailwaylineto boosted connectivitythroughthe Cardiff issettoreapthebenefitsfrom 5 years. other major regionalUKcitiesoverthenext forecast tooutperformanumberofthe rental growthover2019andisconsistently Cardiff isranked 3rdintheUKforhighest and Manchester. returns overthenext 2years,afterBristol The cityisranked 3rdoutoftheUKfortotal Bristol. to £35.00persqftnowbeingachievedin which stilloffers exceptional valuecompared per sqftwithnext cycleofdevelopment Cardiff primerents expected tohit£27.00 037 037

Investment Opportunity 38 No 3 Capital Quarter Cardiff Exclusive of VAT. Subject toContract& £348 persqft. 7.72% andalowCapitalValue of standard purchaser’s costsof Yield of6.00%,afterdeducting reflecting anattractiveNetInitial Eight HundredThousandPounds) £26,800,000 (Twenty SixMillion, Seeking offersin excess of proposal Office Investment Prime, Secure, CityCentre No 3CapitalQuarter [email protected] 029 20440141 gareth lloyd an inspectionpleasecontact: For furtherinformationortoarrange martinthopkins.co.uk 029 20461233|[email protected] Brand andbrochure design by Hopkins Martin 5. 4. 3. 2. 1. [email protected] 029 20440128 rob jones [email protected] 029 20440952 elliot evans [email protected] 020 78611158 simon rickards London, W1U8AN,whereyoumaylookatalistofmembers' names. registered numberOC305934.Our officeis55Baker Street, Knight FrankLLPisalimitedliabilitypartnershipregisteredinEnglandwith VAT: TheVAT positionrelatingtothepropertymaychangewithoutnotice. and thatallinformationiscorrect. inspection orinotherwaysthatthesemattershavebeenproperlydealtwith or otherconsenthasbeenobtained.Abuyerlesseemustfindoutby property doesnotmeanthatanynecessaryplanning,buildingregulations Regulations etc:Anyreferencetoalterationsto, oruseof, anypartofthe and distancesgivenareapproximate only. drawings andonlyshowcertainpartsoftheproperty. Areas,measurements Images etc:Theimagesshownarecomputergeneratedfromarchitectsinitial of theagents,seller(s)orlessor(s). accordingly anyinformationgivenisentirelywithoutresponsibilityonthepart agent hasanyauthoritytomake anyrepresentationsabouttheproperty, and the property, itsconditionorvalue. NeitherKnightFrankLLPnoranyjoint word ofmouthorinwriting(“information”) asbeingfactuallyaccurateabout should notrelyonstatementsbyKnightFrankLLPintheparticularsor Particulars: These particulars arenotanofferorcontract,norpartofone. You Photography -April 2019 Brochure -May2019