PRIME MIXED-USE INVESTMENT , Investment Summary

■■ Freehold interest in landmark ■■ c.56,000 sq ft mixed use Victorian arcade with its prime frontage onto Deansgate ■■ 16 retail/restaurant units, 19,000 sq ft of creative offices and a penthouse flat ■■ 21 different tenants generating a diversified income stream of c. £1.1m per annum ■■ Independent focused retail and leisure destination with high footfall ■■ Low passing rents at £30 - £140 Zone A (retail) and £7.50 - £15 per sq ft (offices) ■■ Manchester is the largest economic area outside London ■■ Our clients are seeking offers in excess of £17m (seventeen million pounds), subject to contract and exclusive of VAT for the benefit of the freehold interest, which reflects a net initial yield of 6% and a reversionary yield of 6.55% on the basis of standard purchasers costs. ■■ The asset is held in a Jersey Property Unit Trust (JPUT). Manchester is one of Europe’s most dynamic cities. Barton Arcade is situated within

Manchester’s PRIME prime retailing OFFICE central core CORE

King Street

Market Street

Cross Street Royal Exchange Spinningfields O Arndale Shopping Centre WATCHES F St Ann's Square SWITZERLAND

Exchange Square REISS

Barton Corn Exchange Deansgate Arcade

URBAN & CIVIC RENAISSANCE HOTEL REDEVELOPMENT

2 3 N TO B E BARBE E NS T BARB ER ER UN H BE S TICIA M TO OP BE LLIA O T WI

K C T A L N B

TLE AURA

ST KET WOK RE WA TO & LK POT R A

B SY NC The RStore

TO BE KF C

FJALLR A VEN

ENTRAN AP CE TO ARTMEN TS JONES & ROBINSONS

50 metres Tenancies

The property is multi-let to 21 tenants producing a gross passing rent of £1,096,242 pax, as detailed in the tenancy schedule. The net rent after deduction of service charge shortfalls is currently £1,094,838 pa. There is a shortfall of £1,404 due to a service charge cap on Unit 11.

Area Total % of Sector (Sq ft) Rent Total Rent Deansgate - Retail/Leisure 13,288 £534,149 49% Arcade - Retail/Leisure 5,560 £211,065 19% Creative Offices 19,073 £231,228 21%

N TO B E BARBE E NS T Basement - Leisure 16,560 £91,000 8% BARB ER ER UN H BE S TICIA M Penthouse 1,648 £28,800 3% TO OP BE LLIA O T WI Total 56,129 £1,096,242 100%

K C T A L N B

TLE AURA

ST KET WOK RE WA TO & LK POT R A

B SY NC The RStore

% of income by sector Wault Expiry Retail 39% 0-2 years 15% TO BE KF C Leisure 37% 2-5 years 20%

FJALLR A VEN Creative Offices 21% 5-10 years 46% Residential 3% 10 years + 19%

ENTRAN AP CE TO ARTMEN TS JONES & ROBINSONS Tenure

Freehold

4 5

50 metres Tenancy Schedule

Occupational Occupational Details Areas Lease Details Income Costs

Ground Current Rental Total Total Floor Current Rental Service Trading Floor Lease Expiry Next Rent Value Description User Area Area Area Breaks Rent £ Value £ Charge Comments Name Area Start Date Review (£ ZA/ (£ ZA/ (sq ft) (sq m) ITZA pa pa Budget 2018 per sq ft) per sq ft) (units) Deansgate Retail/Leisure Ground Floor 606 56.3 New Lease subject to 10 months rent free. In solicitors Basement Unit 4 Intro Fashion 1228 114.08 501 06/03/18 05/03/28 £78,000 £134.48 ZA £78,000 £134.48 ZA £7,190.67 hands. Outstanding rent free will be topped up at the Sales/Stock date of completion. Tenant Keaton Services Ltd. Total 1833 170.3 Ground Floor 602 55.9 10 yr lease stepped rent: Year 1 £75,000. Year 2 £76,000. Year 3 £77,000. Year 4 £78,000. Year 5 £80,000. U/O First Floor Unit 5 Services 1301 120.9 423 £75,000 £135.35 ZA £77,000 £139.33 ZA £14,550.66 The tenant is receiving 6 months rent free. Outstanding Barber Barber Sales/Stock rent free will be topped up at the date of completion. Total 1903 176.8 Tenant Stay True Ltd. Company No. 06034211 Ground Floor 728 67.6 Unit 6 STA Travel Travel Basement 455 42.3 541 12/03/10 11/03/20 £81,149 £137 ZA £81,149 £137 ZA £9,246.96 Tenant STA Travel Ltd. Company No. 1263330 Total 1183 109.9 Ground Floor 1444 134.1 First Floor Suite 19A 1979 183.8 and Lunya Leisure Sales 1,055 24/11/15 23/11/35 24/11/20 £135,000 £35.56 psf £135,000 £35.56 psf £29,671.56 Tenant Lunya Limited. Company No. 06618491 Unit 7 & 8 Basement 373 34.7 Total 3796 352.6 Ground Floor 733 68.1 AFL exchanged to Wok to Walk at £85,000/year. 10 year lease with 3 months rent free. Subject to change 5th Unit 9 Wok To Walk Leisure Basement 1567 145.6 458 TBC TBC £85,000 £36.95 psf £85,000 £36.95 psf £17,978.03 of use to A3 and listed building consent. The tenant is Year receiving 3 months rent free. Outstanding rent free will Total 2300 213.7 be topped up at the date of completion. Ground Floor 574 53.3 First Floor 12 months rent free. 3 months break penalty. 1134 105.4 Outstanding rent free will be topped up at the date Unit 10 Sync Technology Sales 478 24/10/17 23/10/27 24/10/22 24/10/22 £80,000 £129.00 ZA £80,000 £129.00 ZA £8,916.74 of completion. Tenant GBM Digital Technologies Ltd. Basement 565 52.5 Company No. 02719704 Total 2273 211.2 13,288 1,234.5 £534,149 £536,149 Arcade Retail/Leisure Ground Floor 509 47.3 Outside L&T Act. Tenant Jeffery-West Retail Ltd. Unit 1 Jeffery-West Fashion Basement 420 39 417 01/05/16 30/04/21 01/05/19 £30,000 £68.50 ZA £30,000 £68.50 ZA £7,258.36 Company No. 03506800 Total 929 86.2 Ground Floor 537 49.9 To be new 10 year lease to William Hunt at a rent of U/O Unit 2 Fashion Basement 563 52.3 429 £38,000 £83.15 ZA £38,000 £83.15 ZA £8,598.19 £38,000 p.a. Rolling 1 month landlord break on current William Hunt tenant Philip & Jill Black. Total 1100 102.2 Ground Floor 528 49.1 Under offer to Seen Opticians at £38,000 pa. U/O Unit 3 Services Basement 599 55.6 422 £38,000 £84.00 ZA £38,000 £84.00 ZA £8,812.43 Currently occupied by Barber Barber, to be Seen Opticians surrendered on completion of unit 3 lease. Total 1127 104.7 Unit 11 The R Store Fashion Ground Floor 479 44.5 479 20/11/15 19/11/25 20/11/20 20/11/20 £14,400 £30.00 ZA £14,400 £30.00 ZA £3,662.52 Tenant The R Store Ltd. Company No. 9597752 Occupational Occupational Details Areas Lease Details Income Costs

Ground Current Rental Total Total Floor Service Floor Lease Expiry Next Current Rent (£ Rental Value (£ Description Trading Name User Area Area Area Breaks Charge Comments Area Start Date Review Rent £ pa ZA/per Value £ pa ZA/per (sq ft) (sq m) ITZA Budget 2018 sq ft) sq ft) (units) Arcade Retail/Leisure Year 2 £20,000/year. Year 3 £21,000/ year. Year 4 onwards £22,000/year. Tenant received 12 months rent free. Unit 12 Pot Kettle Black Leisure Ground Floor 371 34.5 371 06/03/18 19/08/24 £20,000 £53.91 ZA £21,000 £56.60 ZA £2,836.73 Outstanding rent free will be topped up at the date of completion. Tenant Pot Kettle Black Coffee Ltd. Company No. 08869091 Tenant Pot Kettle Black Coffee Ltd. Unit 13 Pot Kettle Black Leisure Ground Floor 347 32.2 304 01/05/16 19/08/24 £18,500 £60.86 ZA £18,500 £60.86 ZA £2,653.22 Company No. 08869091 RR - fixed uplift to £52,165 p.a in 2019 to be topped up by the vendor. Unit 14 Pot Kettle Black Leisure Ground Floor 1207 112.1 1059 20/08/14 19/08/24 20/08/19 £52,165 £49.26 ZA £52,165 £49.26 ZA £9,228.93 Tenant Pot Kettle Black Coffee Ltd. Company No. 08869091 5,560 516.4 £211,065 £212,065 Creative Offices Office Suites The Offices T break - 6-12 months notice. Offices 11,874 1,103.7 - 07/11/14 06/11/21 07/11/19 07/11/19 £135,544 £11.42 psf £178,100 £15.00 psf £90,828.59 (various) (North West) Ltd Company No. 06949486 Office Suites Six & Flow Ltd Offices 1,241 115.3 - 06/01/17 05/01/22 06/01/20 £17,680 £14.25 psf £18,600 £15.00 psf £9,295.59 28-31a Office Suites Outside L&T Act. T break - 3 months Crowd UK Ltd Offices 1,209 112.3 - 25/03/16 24/03/21 25/03/19 25/03/19 £18,135 £15.00 psf £18,135 £15.00 psf £9,055.89 32-32a notice. Company No. 09829857 Office Suites 49-50 GDP Funding LLP Offices 738 68.6 - 03/08/12 02/08/17 £5,550 £7.52 psf £11,100 £15.00 psf £5,527.92 Holding Over. Company No. 7385360 Michael Hyde & Office Suites 51-53 Offices 2,597 241.3 - 24/06/07 23/06/17 £35,500 £13.67 psf £39,000 £15.00 psf £19,452.57 Holding Over. Associates Ltd Office Suite 55 2004 Ltd Offices 173 16.1 - 27/11/08 26/05/09 £2,042 £11.80 psf £2,600 £15.00 psf £1,295.84 Holding Over - Inside L&T Act Office Suites Mr. Alan Sandford & Offices 502 46.6 - 29/11/06 28/11/11 £6,777 £13.5 psf £7,530 £15.00 psf £3,760.18 Holding Over 61 & 63 Mr. Kieran Singh Office Suites 69-70 MGS Estates Ltd Offices 739 68.6 - 16/02/10 15/02/15 £10,000 £13.53 psf £11,100 £15.00 psf £5,535.41 Holding Over. Company No. 2287555

19,073 1,771.9 £231,228 £286,165 Basement Leisure Unit 15 - Tenant Be At One Limited. Be At One Leisure Basement 5,182 481.4 11/12/15 10/12/35 11/12/20 10/12/35 £75,000 £14.47 psf £75,000 £14.47 psf £17,243.03 Basement Company No. 04092709 12 months rent free. Tenant to undertake Unit 16 - Crowd UK Ltd Events/ M&E works. Outstanding rent free will be Basement Sub Basement 11,378 1,057.1 12/02/18 11/02/23 12/02/20 £16,000 £1.40 psf £50,000 £4.39 psf £- t/a Brickworks Leisure topped up at date of completion. Mutual and Sub Basement break clause 12/2/2020 16,560 1,538.5 £91,000 £125,000 Penthouse 3 bed roof top Kingdom Capital Ltd Residential 1,648 153.1 - 26/02/18 25/02/19 £28,800 £30,000 £- Apartment Total 56,129 5,214.5 £1,096,242 £1,189,379 £292,600 6 7 Rental Values

The current prime rental tone in the ownership is circa £140 per sq ft Zone A applied to the Deansgate frontage which reduces internally to approximately £30 per sq ft Zone A. The passing rents on the internal arcade units are at a substantial discount to the units with Deansgate frontage.

This compares favourably to other shopping streets in Manchester:

Market Street £300 Zone A King Street £130 Zone A St Ann's Square £180 Zone A Deansgate £140 Zone A Exchange Street £190 Zone A

It is our opinion that the estimated rental value as of today's date would lie in the region of £1,189,379 pa as detailed in the tenancy schedule. Asset Management

There are number of asset management initiatives that could be implemented to reprofile the property and increase both rental and capital value. These include the following: ■■ Opportunity to improve the retail tenant line-up in the short term on the internal Arcade units and benefit from rental growth. Barber Barber’s move from Unit 3 to Unit 5 provides the opportunity to re-let Unit 3. Terms have been agreed on Unit 3 at a headline Zone A rent of £84.24 and at the same time, terms have been agreed to reflect Unit 2 at a similar tone. Further information is available on request. ■■ The 19,073 sq ft of creative office space at Barton Arcade has significant reversionary potential given that the passing rents range from £7.50 - £15per sq ft and rents for creative offices in comparable central Manchester locations are currently between £20 and £27.50 per sq ft. ■■ Use upcoming lease events including rent reviews and expiries in the creative office leases to capitalise on the rental growth and improve net operating income. ■■ Some of the smaller creative office suites could be reconfigured to create larger, open-plan areas with the potential to drive further rental growth. ■■ Consideration could be given to alternative uses on the upper levels including further residential or an Aparthotel subject to planning. ■■ The large basement area of over 11,000 sq ft is let on a short- term lease at a below market rent. At expiry this lease could be re-geared on a longer term basis on more attractive terms. ■■ Potential to sell off a long leasehold interest in the penthouse flat.

8 9

Location

Manchester is the administrative and commercial capital of the north west of , one of Europe’s most dynamic cities, and is the largest economic centre in the country, outside of London.

Manchester has a population of approximately 2.8 Approximately £13 billion will be invested million, with in excess of 12 million people within in transport infrastructure across the North a 50 mile radius of the city centre and boasts the including plans for High Speed 2 and 3, which will largest travel to work area of any conurbation half the journey time to London to an improved outside of London. travel time of just 68 minutes. The Greater Manchester region has benefited Major employers in the city include a number from large scale development in recent years, of blue chip businesses such as Barclays, BBC, including the ongoing Metro Link expansion, £650 ITV, HSBC, Kelloggs, Guardian Media Group, million Media City:UK development. The largest Stagecoach, Thomas Cook, RBS and numerous development in the North West – Noma is being legal and professional firms. The relocation of undertaken at a cost of £800 million. The 20 acre BBC from London to Salford accounted for masterplan is creating new homes, offices, hotels, 2,500 new people coming to the City. Media shops and restaurants. City UK, where the BBC is located, is a £650 million, 36-acre scheme and it is estimated that Further large scale development is planned for the development will create up to 15,000 jobs the city including the £800 million Manchester and add approximately £1 billion to the regional Airport City, which will be the largest UK economy over 5 years. development since the London 2012 Olympics (the £50 billion ‘Atlantic Gateway’ project which A merger of the University of Manchester and aims to reinvigorate the ) UMIST kick-started a £500 million building and the Project where a further programme known as “Knowledge Capital” £1 billion will be invested in the University of with the aim to become a top 10 university. Manchester to develop it’s campus. Manchester has three universities providing one of the largest student populations in Europe with The Northern Powerhouse proposes to boost an estimated 100,000 students. economic growth across the north of England, targeting the core cities of Manchester, , The City is also a thriving tourism, sporting and The city continues Leeds, and Newcastle. Manchester cultural economy. Key attractions in the City lies at the heart of these plans, representing the include the (one of Europe’s to attract a largest economically and geographically of the busiest indoor venues), Imperial War Museum multitude of global east coast cities. North, The National Football Museum, Old Cricket Club, Manchester United and occupies such as The £300m development of the M56, A6 and the Manchester City Football Clubs, the National Airport Eastern Link to provide 10 km of new Gazprom, Ford Cycling Centre and the UK’s best theatre scene two lane dual carriageway on the east-west route outside London with a total of 13 theatres. Credit, Syngenta, from the A6 near Hazel Grove to and the M56 will substantially ease BNY, Emirates congestion in the south of the conurbation. and Google. 10 11 Communications

Road Manchester benefits from an excellent and highly developed transport infrastructure with the M60 Orbital Motorway connecting Greater Manchester with the M62, M61, M66, M67 Lancaster and M56 motorways and providing a direct link to the National Motorway Network beyond.

Rail There are two mainline rail stations within the city centre (Manchester Piccadilly and Manchester Victoria), which provide intercity services throughout the UK including direct, regular services to London (fastest journey time under 2 hours); Edinburgh (3 hours 19 minutes) and Cardiff (3 hours 29 minutes).

Air Manchester Airport is the largest UK regional airport and is located 13 km (8 miles) south of Manchester city centre. The airport operates over 200 direct flights to worldwide destinations Nottingham with access to most of western Europe within 3 hours and daily direct flights to multiple US cities and Middle East hubs. The airport benefits from a direct rail link into the city centre with a journey time of approximately 15 minutes. A new terminal is planned for the airport which will be completed in 2023 and will see passenger numbers increase from the current 20 million each year to 50 million each year by 2050.

Tram The System was the UK’s first modern street operating light rail system and now serves a significant proportion of the Greater Manchester conurbation, linking Bury, Oldham, Altrincham and Eccles, Ashton-under-Lyne, Rochdale, East Didsbury, Media City:UK and Manchester Airport to the city centre. The recently completed £185 million Second City crossing has improved the capacity, flexibility and reliability of the Metrolink system and also includes a new tram stop on Exchange Square. Manchester Arena

VICTORIA M Situation STATION

Barton Arcade is situated National Football SHUDEHILL Museum M within Manchester’s prime Manchester

DEANSGATECathedral The Corn retailing central core and Exchange CHAPEL STREET was originally built to Barton Harvey create a covered retailing Nichols k in l o tr link between Deansgate and Arcade e MANCHESTER M&S M The Lowry ARNDALE St Ann’s Square. Nearby Hotel Royal SALFORD Exchange MARKET STREET occupiers include House CENTRAL Theatre HIGH STREET ST. ANN’S SQUARE T of Fraser and Harvey E E House of R M T Fraser S CROSS STREET Nichols department store, St. Ann’ s MARKET R E Church V STREET P E I L KING T C . ST C Waterstone’s, Patisserie BRIDGE ST AD SOUT REE IL LY H T . KING S S T. PICCADILLY Valerie, The Botanist and JOHN DAL I N GARDENS A NORTHERN T SPINNINGFIELDS TON ST N M QUARTER U . O PICCADILLY Molton Brown. F GARDENS

AYTOUN STREET

ALBERT SQUARE NSGATE COOPER ST. Town Hall EA D P I C C A

D

I Manchester L PETER STREET L Central Y PRINCESS PORTLAND STREET ST. JOHNS MOUNT ST. Library M GARDENS Radisson SACKVI Hotel ST. PETER’S M PICCADILLY SQUARE STREET Midland LLE STREET STATIO N Great Northern Hotel

SACKVILLE GARDENS

Manchester LOWER Central Barbirolli OXFORD STREET Square CASTLEFIELD

Hilton Hotel T E E UNIVERSITY OF DEANSGATE R T CASTLEFIELD S MANCHESTER

M N O I

B

L

A

DEANSGATE S TATION

OXFORD ROAD STATIO N 12 13 Description

The property comprises a purpose-built Victorian Arcade constructed between 1871 and 1874 and is the earliest of three Victorian Arcades built in Manchester prior to 1900. The property is Grade II* Listed (relating to all the facades including the roof, atrium and all the interior of the Arcade).

Two large stone towers are positioned Internally, the ground floor is currently above the Arcade entrances on the configured as 15 retail units with 7 units Deansgate elevation. The property is benefiting from unrestricted frontage currently arranged over sub basement, to Deansgate. The majority of retailers basement, ground and four upper floors benefit from basement accommodation comprising a mixture of retail, leisure, which is used as additional sales area or creative offices and one residential unit. for ancillary storage. Part of the first All floors in the Arcade are served by two and all of the second and third floors stairwells at each end of the property. comprise creative office suites accessed The first stairwell is accessed from a by the Arcade’s internal perimeter balcony. glazed office entrance accessed from Above the offices, there is a penthouse flat. Barton Square which contains a 6-person The property has the advantage of a 450 kg lift serving ground to third floor basement and sub basement area which only. The second stairwell is accessed follows the footprint of the building and from the Arcade. Both stairwells and the is used for event space and has a 240 goods lift serve the ground, basement capacity night club. and sub basement. A number of retail units contain staircases between ground, basement and first floors. The Arcade is of cast/ wrought iron frame construction with a combination of decorative stone and brick cladding to the exposed elevations covered by an ornate cast iron atrium of arches with glass in-fill panels. 14 15

Retailing in Manchester

Manchester is one of the UK’s top retail destinations with an estimated retail floorspace of 2.75 million sq ft and a retail spend of circa £3.9 billion per annum. The City ranks 2nd out of the UK PROMIS Centres, benefiting from an estimated primary catchment population of 1.6 million people.

The City ranks 1st on both PMA Retail pitches. Operators include Las Iguanas, The Score and PMA Fashion Score. Major Living Room, Cote, Gaucho Grill, Lunya, JD anchor store retailers represented include Wetherspoon and Patisserie Valerie. Selfridges, Harvey Nichols, Marks & Spencer, St Ann’s Square is the historic retailing core Debenhams, Kendalls (House of Fraser), Next linking Deansgate, King Street, The Royal and Primark. Exchange Arcade and Market Street. The prime retail in the city is predominantly King Street is situated to the south of the focused along the pedestrianised Market retailing core acting as a major arterial Street, which complements the Manchester route connecting the traditional CBD and the New Cathedral with Spinningfields. Designer and speciality Quarter. Centre retailers located on the Street include Hugo comprises 1.4 million sq ft and is anchored Boss, The White Company and Jack Wills. by Next with a full line up of mid-market Spinningfields is the city’s leading business fashion operators such as Top Man, Superdry, and leisure destination and is one of the Hollister and River Island. The Centre UK’s most visited city centre destinations provides a footfall of over 40 million and is with over 5.5 million visitors per year, and considered to be one of the UK’s premier daily footfall in excess of 14,000 people, and shopping centres. annual retail and leisure spend in excess of Deansgate is one of the principal arterial £80 million. routes through the city centre and is regarded as the traditional prime retail Prime rents in Manchester are and leisure pitch. Deansgate has the ability currently at £300 per sq ft Zone to provide both day and night time trade A, whereas the top Zone A rent at due to its excellent location, being in close Barton Arcade is c £140 per sq ft, proximity to a wide ranging target audience demonstrating the prospects for and is still one of the strongest bar/restaurant rental growth.

16 17 The market consistently out performs all of Creative Office the other regional cities and has been Market the best performer since 1989 Manchester is the strongest office market outside of Central London and has a total stock of 23 million sq ft with the City Centre accounting for 15.8 million sq ft.

The market consistently out performs all of the other regional cities and has been the best performer since 1989, producing an average rental growth of 3.7% pa and the City is expected to see faster office based employment growth over the next 5 years than Greater London and all of the key UK regional cities (6% compared with the UK average of 3.5%). Manchester demonstrates robust occupational characteristics, consistently witnessing higher levels of take up than any of the other big 6 regional centres. Headline rents for Grade A office space in the City are currently £35 per sq ft. The rental tone for refurbished office space in these prime city centre locations ranges from approximately £20 to £27.50 per sq ft. The creative office rents at Barton Arcade range from £7.50 per sq ft to £15 per sq ft and provide significant prospects for rental growth.

Creative Offices

The creative office suites comprise circa 19,073 sq ft and are located on part first, second and third floors, accessed by the Arcade’s internal perimeter balcony. They provide a unique and affordable work space for a variety of media and creative businesses. The creative offices are let to 9 tenants, including Offices North West Limited who are a serviced office provider. The office space is flexible and affords 24 hour access and security.

The Offices (North West) are a serviced office provider of high end flexible, fully serviced work space.

Matthew Hyde Associates are award winning architects based in Manchester in Sheffield.

GDP Funding are a specialist debt consultancy to the commercial property industry. Six and Flow is a Manchester based venture and growth marketing agency, working across digital channels to help businesses improve brand awareness and customer acquisition. 18 19

Barton Arcade Leisure/Retail

The Arcade is made up of an eclectic mix of both multiple and independent retail and leisure tenants including STA Travel, Wok to Walk, Barber Barber and Pot Kettle Black.

The strength of trade has been demonstrated by the recent up-size by Barber Barber, Pot Kettle Black and the new lettings to Wok to Walk, Crowd UK and Sync. Further information on the tenants is set out below

JILL BLACK Jeffery-West Retail Ltd Sync Jill Black WOMANS International footwear brand established in 1987 and trade from Sync is a purpose-built space for people and businesses to shop, Jill Black is an independent retailer stocking independent labels 6 different premium locations including London and New York. learn, share, create and collaborate, offering Apple products and sourced from fashion shows around the world. The retailer has those of other leading tech brands. Sync is powered by GBM Digital a long standing reputation for attracting 'in-the-know stylistas' Technologies, the largest Apple Service Provider in the North. In (Manchester Evening News). the last two years, it has been the largest Apple Authorised Reseller Lunya Limited based on revenue and is also in the Top 20 of the Tech Track Top 100 Fastest Growing Companies in the UK (Business cloud, 2018). Catalonian Deli, Restaurant & Bar with representation in both Liverpool and Manchester as well as an online shop, recreating the The R Store Ltd very best of Catalan and Spanish food, dining culture and vibe. The R Store Ltd is an independent men’s fashion retailer specialising Stay True Ltd (Barber Barber) in new and vintage foot wear stocking brands such as Adidas, Nike, New Balance, Clarks Originals, Red Wing, Fred Perry, 80sCasuals Barber Barber prides itself on impeccable service and extensive and Casual Connoisseur. STA Travel Ltd knowledge in the craft of men's haircutting and bespoke shaving, in luxurious surroundings, in the finest buildings in cities across the UK. Established in 1971 STA is one of the world's largest student and youth Barber Barber operates from 5 central city locations throughout travel agency with over 200 branches in 12 different countries. the UK including London, Birmingham and Leeds. Pot Kettle Black Coffee Limited Two Rugby League stars have swapped their on-pitch skills to bring artisan coffees to the people of Manchester. Pot Kettle Wok to Walk Intro Black came to fruition after a trip to Sydney with the idea of Wok to Walk is a fast food takeaway restaurant chain from the Intro is an independent menswear boutique and online store based opening an Australian-style coffee shop in Manchester. PKB have Netherlands and specialises in wok stir-fried Asian cuisine, with in Manchester. Specialising in cutting edge fashion, stocking a large a huge range of speciality teas, food, smoothies, wines, beers and almost 100 restaurants around the world. selection of premium based menswear brands bespoke cocktails.

20 21 Accommodation

The property comprises approximately 56,129 sq ft (5,214.9 sq m) as detailed in the tenancy schedule.

The Brickworks

-02_Sub Basement 1 : 200 Sub Basement N Leisure Retail Creative offices Residential

U/O U/O Seen Opticians Seen Opticians

U/O U/O Intro William Hunt Intro William Hunt Men's fashion Jeffery West Jeffery West U/O Barber Barber

STA Travel Access to Sub-basement STA Travel

Access from Barton Sq, part of fitout proposals currently being replaced as Lunya

U/O Wok to Walk U/O Wok to Walk Pot Kettle Black Coffee Shop

Sync

Sync Access to Sub-basement Be At One The RStore

-01_Basement 1 : 200

00_Ground Floor Basement Ground Floor 1 : 200

22 23 Accommodation

U/O Barber Barber GDP Funding LLP The Offices (North West)

TheOffices (North West) Lunya

Six & Flow

The Offices (North West)

Sync

Crowd UK

01_First Floor 1 : 200 02_Second Floor 1 : 200

First Floor Second Floor N Leisure Retail Creative offices Residential

U/O The Offices Private (North West) rooftop terrace

MGS Estates ltd The Offices (North West)

Rooftop Sandford & Singh penthouse Jewellers Kingdom Capital Ltd Extent of Flat shown grey, not surveyed The Offices (North West)

2004 ltd Opticians

The Offices Private (North West) rooftop terrace The Offices Michael Hyde (North West) Associate rooftop garden Architects

03_Third Floor 04_Roof Plan 1 : 200 1 : 200

Third Floor Roof Plan

24 25 Brickworks

Brickworks Manchester is a unique venue set in the vaults of Barton Arcade and extending to over 11,378 sq ft (1,057 sq m).

The basement underwent a refurbishment in 2017 with the exposed brickwork walls and arches cleaned and sealed and Wi-Fi and feature lighting installed in all chambers. Mechanical ventilation was installed on both north and south sides of the space to provide fresh air and efficient circulation. Brickworks has 8,000 sq ft dedicated to flexible, immersive space with a full bar, gin bar, 25 seater private screening room, and a 2,000 sq ft members lounge for the creative industries. The venue is available for private hire for groups of up to 280 people and has already hosted a variety of events including promotional launches for Reebok, Lone Wolf Gin and a pop up event for Just Eat. Brickworks has already hosted filming & photography bookings, product launches, dinners, gigs, theatre productions and a fashion show. There are several other events booked for 2018. Brickworks benefits from its own dedicated entrance at ground level and can operate outside the opening hours of the retail arcade. The current lease was for an initial term of 3 years but due to the success of the project and future investment planned for the sub-basement, the lease term will be extended to 5 years. Service Charge

The service charge budget year runs from 1st January to 31st December. The service charge budget for the year ending 31st December 2018 is £292,600 which reflects an overall rate of £5.21 per sq ft. The service charge budget for year ending 31st December 2017 was £264,000, reflecting an overall rate of £4.70 sq ft. There is a current service charge shortfall of £1,404 pa due to a service charge cap on Unit 11. Further information on the service charge is available on the Data site.

EPC

Energy Performance Certificates (EPC’s) are not required as the building is Listed.

VAT

The property has been elected for VAT and VAT will be payable on the purchase price. It is envisaged that the sale will be treated as a Transfer of a Going Concern (TOGC).

26 27

Proposal

Our clients are seeking offers in excess of £17,000,000 (seventeen million pounds), subject to contract and exclusive of VAT for the benefit of the freehold interest.

A purchase at this level, on the basis of the income outlined in the Tenancy Schedule, reflects a net initial yield of 6% and a reversionary yield of 6.55%, after allowing for standard purchaser’s costs of 6.74%. The price reflects a low capital value of £300 per sq ft. The asset is held in a Jersey Property Unit Trust (JPUT). Further information is available on request. Recent investment transactions include the following:

4/14 King Street and 99/103 Deansgate, Manchester Freehold block on the corner of King Street and Deansgate sold in January 2018 for £8.7 million reflecting a net initial yield of 5.45%. The block comprised 5 units on King Street and 4 on Deansgate with sold off residential upper parts. The price reflected a capital value of c. £878 per sq ft.

62/68 Cross Street, Manchester Freehold retail and office investment let to 5 tenants, sold in September 2017 for £4.8 million, reflecting a blended net initial yield of 5.48% and an equivalent yield of 5%. This price reflected a capital value of £619 per sq ft.

101 Princess Street, Manchester Freehold office/leisure investment bought by Standard Life in July 2017 for £8.1 million, which reflected a net initial yield of 6.39%. The property comprised a mixed use building with 2 nightclubs on the lower ground and basement with 5 upper floors of office accommodation.

28 29 Barton Arcade

Further Information A data room is available on request from this office.

For further information, or to arrange an inspection to view, then please contact:

Philip Hay [email protected] 020 7637 7100

Brook Wannop [email protected] 020 7637 7100

Messrs. Jackson Criss for themselves and for the vendors or lessors of this property whose agents they are to give notice that: (i) the particulars are set out as a general outline only for the guidance of intending purchasers or lessees, and do not constitute, nor constitute part of, an offer or contract; (ii) 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 or tenants 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; (iii) no person in the employment of Messrs. Jackson Criss has any authority to make or give any representation or warranty whatever in relation to this property. 100491. April 2018.