SAPPHIRE COURT STREETSBROOK ROAD I I B91 1QT

A PRIME ASSET MANAGEMENT & REPOSITIONING OPPORTUNITY SAPPHIRE COURT I STREETSBROOK ROAD I SOLIHULL I B91 1QT

SOLIHULL TOWN CENTRE 1 3 7 INVESTMENT 2 6 10 CONSIDERATIONS 8 4 The investment comprises a rare 11 opportunity to acquire a prime 3.93 acre 9 5 12 site in Solihull town centre, with numerous 13 opportunities to improve the existing asset through repositioning or redevelopment

• Situated immediately adjacent to Solihull rail station and a short walk from the town centre retail and leisure facilities. • Sapphire Court is currently an office development comprising six interlinking blocks totalling 88,375 sq ft (8,286 sq m) NIA. STREETSBROOK ROAD 14 • The investment is significantly underpinned by office redevelopment or alternative use values including residential or senior living (subject to planning) and hotel uses.

• Freehold. • Sapphire East (Blocks A, B and C) is let to the 16 15 1 Environment Agency (49%), The First Secretary of State House of Fraser (40%) and a vacant suite (11%). The AWULT is 9.06 2 Marks & Spencer years to expiry and 4.74 years to break. 3 Mell Square Shopping Centre • Sapphire West (Blocks D, E and F) is vacant and has been delisted so as not to attract vacant rates. 4 John Lewis 5 Premier Inn 6 Touchwood Shopping Centre • Solihull is regularly named one of the UK’s best places to work, live and shop. At the end of 2013, based on their 7 Council O ces Quality of Life index, uSwitch named it the Best Place to 8 Live in the UK. Solihull Police Station 9 SAPPHIRE COURT • Prime office rents in the Solihull area currently stand Proposed Waitrose at £23.75 per sq ft, as witnessed at Interserve House. 10 Paragon This is a significant discount to Grade A rents in Central which are currently in excess of £30.00 11 National Grid per sq ft. 12 Xoserve/National Grid • Prime residential sales values in central Solihull for 13 apartments are now over £375 per sq ft. npower 14 Solihull Station 15 Decked Station Car Park • Offers sought, on an unconditional basis, in excess of 16 £10,000,000 (Ten Million Pounds), subject to contract Solihull Fire Station and exclusive of VAT. • A purchase at this level equates to an overall low capital value of £113 per sq ft (based on Net Internal Areas).

02 03 SAPPHIRE COURT I STREETSBROOK ROAD I SOLIHULL I B91 1QT

ASSET MANAGEMENT & DEVELOPMENT INITIATIVES

The investment is significantly underpinned by office redevelopment or alternative use values including residential, senior living and hotel uses

• There are numerous opportunities to substantially increase the current value of the property and potentially deliver a statement development in a prosperous town centre. • The current income provided by government strength tenants in Sapphire East for a minimum of 4.74 years provides an income return whilst asset management angles can be initiated.

SAPPHIRE WEST OFFICE INITIATIVES • Refurbish existing Sapphire West office buildings to Grade A standard to take advantage of the lack of currently available Grade A office accommodation in Solihull town centre. SAPPHIRE EAST • Undertake phased redevelopment of the whole site into two or more new Grade A office buildings and consider increasing massing on site, subject to planning. • Within Sapphire East remove The First Secretary of State break in 2021 and let vacant office suite.

RESIDENTIAL INITIATIVES • Convert Sapphire West into residential apartments under existing Permitted Development Rights, for which planning has been obtained. Secure planning permission to convert Sapphire East upon vacant possession. • Alternatively, consider a phased redevelopment of the whole site for new build residential apartments, subject to planning.

• The site is of such a size and location to explore Private Rented Sector (PRS) investment.

ALTERNATIVE INITIATIVES • Planning has been secured for the development of a 99-bed hotel with associated conference and restaurant facilities on the existing car park to the south of the site. CONSENTED HOTEL • Explore alternative land uses including senior living, educational and DEVELOPMENT SITE healthcare. • Liaise with Network Rail and Solihull Council to provide direct link to Solihull rail station and associated bus stops through the existing multi deck adjacent car park.

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CONNECTING PEOPLE Solihull’s central location has excellent transport links by road, rail and air CARLISLE

ROAD Solihull is located at the centre of the national M6 motorway network and the town centre is LEEDS approximately 1 mile (1.6km) west of M62 HULL Junction 5 of the M42 Motorway. This in turn connects to the M5, M6 MANCHESTER LIVERPOOL and M40 motorways. SHEFFIELD

RAIL HS2 M6 HS2 M1 Solihull railway station, adjacent to Sapphire Court, is served by both and . BIRMINGHAM BIRMINGHAM AIRPORT Solihull will also benefit from the M1 proposed HS2 station at Birmingham Airport. SOLIHULL HS2 M5 M40 AIR Direct train to London Within Solihull Borough lies CARDIFF M4 LONDON Birmingham Airport, the seventh BRISTOL Birmingham largest in the UK. The airport is one of HS1 M20 DOVER City Centre the fastest growing in the UK, handling M3 circa 9.7 million passengers in 2014 and served by over 60 airlines operating scheduled and charter flights to EXETER over 125 domestic, European and 7 miles transatlantic destinations. UK Motorway Network 125 destinations served by HS1 & HS2 90 by road mins Birmingham airport

06 07 SAPPHIRE COURT I STREETSBROOK ROAD I SOLIHULL I B91 1QT

LOCATION Solihull is one of the region’s most desirable office, retail and residential locations

M6 A460 A51 A449 LICHFIELD A42

11 12 CANNOCK BURNTWOOD 11A T7 T8 T6 11 M54 BROWNHILLS T5 1 2 10A T4 TAMWORTH Solihull is a sub-regional centre in the heart of the conurbation Solihull Metropolitan Borough is renowned for its key economic assets, A5 and is regarded as one of the region’s most desirable office, retail and strategic transport infrastructure, high quality environment, aspirational A461 residential locations. housing and excellent schools, which are integral to its economic success. 10 ROAD These values have ensured that Solihull is a desirable place in which to M6 Toll live, work and invest. The town centre is strong, vibrant and of high regional Solihull is located approximately 7 miles (11 km) south east of Birmingham 10 T3 A5 importance containing a wide variety of shops, businesses and civic services. WALSALL city centre, 13 miles (21 km) west of , and 14 miles (22 km) north A454 9 T3 west of Warwick. London is approximately 120 miles (193 km) to the south Public and private sector initiatives include: A449 SUTTON east and Manchester approximately 80 miles (129 km) to the north west. 8 COLDFIELD T2 • Solihull rail station has seen a 250% increase in passenger traffic in 10 RAIL years rising to over 1.65m annually in 2013/2014. This has led to a new M6 NUNEATON T1 deck car park being constructed. A41 Solihull railway station, adjacent to Sapphire Court, has the following fastest direct journey times: • Touchwood shopping centre, anchored by John Lewis, currently comprises DUDLEY WEST 1 6 5 8 BROMWICH 4A 650,000 sq ft of retail and leisure space. Planning is consented to add a Birmingham (Moor Street/Snow Hill) 15 minutes further 115,000 sq ft / 30 units. 2 Warwick 17 minutes 4 • Standard Life/Opus Land have obtained planning for a 28,000 sq ft 3A M6 Stratford-upon-Avon 28 minutes A456 BIRMINGHAM Waitrose supermarket adjacent to John Lewis. High Wycombe 75 minutes HALESOWEN A45 BIRMINGHAM • IM Properties plan a phased redevelopment of the 750,000 sq ft 3 A38 6 London (Marylebone) 90 minutes Mell Square shopping centre. A456 A41 A452 M5 A34 AIR • Premier Inn opened a 112-bed hotel and associated restaurant in August KIDDERMINSTER M42 2012 in Solihull town centre. SOLIHULL Birmingham Airport is located 4 miles (6.5 km) north of Solihull town centre, 5 COVENTRY close to the intersection between the M6 and M42 motorways and is linked to • Jaguar Land Rover announced in January 2015 they are to create a further both Birmingham International rail station and the National Exhibition Centre A441 A435 1,300 jobs at their Solihull plant to build their first sports utility vehicle. This 4 4 (NEC). follows the recent launch and production of the new Jaguar XE at the plant which created 1,700 direct jobs. Inward business investment into the region has led to the runway at the airport 2 KENILWORTH 1 being extended in 2014 and the airport now handles direct flights to China, the • The National Exhibition Centre is the UK’s largest and Europe’s busiest. A448 4A M42 3 A4177 3A Middle East and New York. Adjacent to the NEC is the 16,000-person Arena. Both have seen upgrade A449 ALVECHURCH expenditure in the last 5 years totalling £70 million. BROMSGROVE A46 M40 REDDITCH 08 HENLEY IN ARDEN WARWICK 09

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SOLIHULL TOWN PROFILE & DEMOGRAPHICS Solihull is an integral part of the West Midlands economy and the most productive in the region

Solihull has a 7,000 Solihull has a businesses, population of employing 74.5% more than level of home 206,700 ownership (2011 Census) 100,000 people

Demographic and Business Profile

Solihull has a population of 206,700 (2011 census) and is considered a highly affluent borough in both the regional and national context. This is characterised by above-average levels of income and home ownership and a high proportion of residents (50%) classified as belonging to the Prosperous Suburbs socio-demographic classification.

The living environment, with a mix of urban and rural communities, key strategic sites, transport infrastructure and large amounts of green space are Solihull’s key strengths, as evidenced by high levels of resident satisfaction with the area. Solihull residents also earn more than the UK average across all percentile groups with the positive wage differential increasing among the very highest earners.

Overall, Solihull has a high level of home ownership (74.5% of all households in 2011 compared to the UK average of 63%). There were 115,662 vehicles in Solihull in 2011, an average of 1.43 for every household in the borough, compared to the UK average of 1.26 and the West Midlands average of 1.28. Nearly 41% of households in Solihull have two or more vehicles, significantly more than the UK average of 32%.

Solihull is an integral part of the West Midlands economy and the most productive in the region. The town supports Birmingham, the UK’s second largest city, by being home to over 7,000 businesses employing more than 100,000 people. The workforce is recognised as being highly productive with GDP per capita of 130% of the national average, compared to a wider regional rate of 90%.

The M42 Economic Gateway is a major economic growth driver in the Greater Birmingham and Solihull Local Enterprise Partnership (LEP) area and is home to key strategic assets and employers including Birmingham Airport, the National Exhibition Centre, Jaguar Land Rover, Birmingham and Blythe Valley Business Parks who draw in circa 85,000 workers to the Borough on a daily basis.

NEC Weekly earnings Voted the UK’s largest ‘best place and Europe’s 13% to live in busiest exhibition higher than the national average the UK’ centre (uSwitch survey)

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Sapphire Court occupies a prominent position fronting 1 Fire Station 7 Proposed Waitrose

Streetsbrook Road. 2 Solihull Train Station 8 Premier Inn

Solihull town centre with its associated retail and leisure 3 npower 9 Touchwood/John Lewis facilities is located 500m to the south east. SITUATION 4 Xoserve/National Grid 10 Magistrates Court Junction 5 of the M42 motorway is 1 mile (1.6 km) to 5 National Grid 11 Police Station Sapphire Court is situated in Solihull town centre the east via the B4102 (Warwick Road) and A41. 6 UK Border Agency immediately adjacent to the railway station

1 SAPPHIRE COURT B4025 STREETSBROOK ROAD

Sapphire Court is situated on Streetsbrook Road in Solihull town centre. The property is very well located for local public transport links, being adjacent to Solihull train station and associated numerous bus stops. The property is also very accessible by car and is less than 5 minutes walk from the town centre 2 amenities. Solihull boasts two shopping centres. Touchwood is one of the UK’s best known regional shopping destinations and has a reported annual footfall of 16 million. STATION APPROACH The scheme is anchored by John Lewis, H&M, Zara, Topshop, Next, GAP and Apple. Mell Square is the traditional shopping heart of the town centre and is anchored by House of Fraser, Marks & Spencer, BHS and Sainsbury’s. The main office core in Solihull is situated along Homer Road/Princes Way where large offices for the likes of npower, National Grid, Xoserve, Paragon, B425 LODE LANE UK Immigration Service, West Midlands Police and Solihull Council are located. J5 M42 1 MILE m Also on Homer Road is Solihull Magistrates Court, Solihull Central Library & Arts Complex and a Holiday Inn hotel.

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STATION ROAD

SAPPHIRE COURT Solihull Hospital

D R E E N FIRE A N B 4 L R STATION 0 U 2 5 D E O LO B 425 HOMER ROAD R STATION ST B 3 E CAR PARK RE T ET N S I BR W RD O STER OK BE AMIN R OA ANE D DE L 4 HERBERT ROAD LO D B 4 7 S 102 WA ROAD T A RWICK W A T O AR I ON R WI APPR CK Solihull School OACH R R SOLIHULL A OA L D D STATION STATI P OR ON O RO P 9 CH AD E S 02

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Y Shopping Centre R E A S W W H E POLICE W O N E A M STATION kJUNCTION 5 M42

S E Y R U R O O 10 H A D N E E W T R I OAD H W COUNCIL St Alphege Church OFFICES Golden D Jubilee A O Gardens R

6 L D L A I Tudor Grange Park O H R 11 L H L P C A R R H I U H N H T C A E C P S S W K A Y 12 N 13 O M R ECTOR Y ROAD SAPPHIRE COURT I STREETSBROOK ROAD I SOLIHULL I B91 1QT

DESCRIPTION Sapphire Court currently comprises six interlinked office blocks totalling 88,375 sq ft (NIA)

Sapphire Court was originally constructed in 1975 and subsequently extended in 1987. It has been substantially refurbished at various points. The property comprises six interlinked office blocks providing a total floor area of 88,375 sq ft (8,286 sq m) NIA. Blocks A, B and C are collectively known as Sapphire East and provide office space of 47,144 sq ft (4,381 sq m) NIA. Sapphire East is predominantly let to the Environment Agency and The First Secretary of State, with a small third floor suite vacant of 4,746 sq ft (441 sq m) NIA. Blocks D, E and F are collectively known as Sapphire West and previously provided office space of 41,231 sq ft (3,905 sq m) NIA. Sapphire West is currently vacant and has been stripped back to shell and de-rated so as to not attract vacant rates. The property is of concrete frame construction with brick and curtain wall glazed elevations. Blocks A, C and E are four storeys in construction, block D is three storeys and blocks B and F are two storeys. Sapphire East benefits from full VAV air-conditioning, three compartment underfloor trunking, suspended ceilings and double glazing. Male, female and disabled WC’s are provided at each level. A total of five 8-person lifts serve the property, one in block A, two in block C and two in block E. Those in block E have been decommissioned. In the last two years the Landlord has replaced the chillers and central boilers in Sapphire East. There is surface car parking for 286 vehicles providing an excellent town centre car parking ratio of 1:309 sq ft.

GIA NIA* Sapphire East 61,008 sq ft 47,144 sq ft 5,668 sq m 4,381 sq m Sapphire West 51,891 sq ft 41,231 sq ft 4,821 sq m 3,905 sq m Total 112,899 sq ft 88,375 sq ft 10,489 sq m 8,286 sq m *The NIA area for Sapphire West is prior to strip out

SERVICE CHARGE

There is a service charge covering both the office buildings and external areas. For the year ending 30th September 2015 the total service charge is at £10.46 per sq ft. This breaks down to an external area charge of £0.84 per sq ft and a cost of £9.62 per sq ft for the Sapphire East offices. Within Sapphire East the office cost of £9.62 per sq ft is split between base costs of £6.19 per sq ft and major works (only due in 2014/2015) of £3.42 per sq ft. The service charge should reduce to a longer term average of circa £7.00 per sq ft in future years. As Sapphire West is decommissioned then only the external area charge applies to this element. A detailed breakdown of the service charge is available on the Lewis Ellis website.

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PLANNING The site lends itself to future re-development and is unallocated in the Solihull plan.

BLOCK A - ENVIRONMENT • Cerda Planning have acted as planning consultant on Sapphire Court since 2009 and have AGENCY ENTRANCE prepared a planning position statement which is available on the Lewis Ellis website. • Solihull Metropolitan Borough Council are the Local Planning Authority for the site. • The site comprises previously developed land, located within the urban area, occupying a highly sustainable location in proximity to the rail station and town centre. • The site is prominent and the Council have always been very supportive of proposals coming forward to enhance the visual amenity of the site. The site is unallocated in the Solihull plan. • Planning permission has been secured for a hotel and remodeling of the existing office buildings (reference 2012/01081, approved 1st July 2015). There is also a prior approval for conversion to residential with no affordable housing (reference 2013/1815, extant until BLOCK C - VACANT FLOOR 30th May 2016). There is no negative planning history on the site. • Planning is currently sought for partial demolition of the office buildings (Sapphire West, blocks D,E & F) and replacement with new office accommodation. Very positive pre- application discussions have been held. • The extant prior approval, whilst confirming the acceptability of a residential conversion scheme, also provides a fall back for the purposes of negotiating a demolition/ redevelopment scheme for residential. Furthermore, Solihull Council are unable to TENURE demonstrate a 5 year supply of housing land such that the presumption in favour of sustainable development applies - the consequence being that a residential proposal should The property is held Freehold. The site extends to approximately 3.93 acres (1.59 hectares). only be refused where the Council can evidence significant and demonstrable harms. BLOCK C - THE FIRST SECRETARY OF STATE ENTRANCE • In overall terms, the previously developed nature of the site and its sustainable position in the Borough is such that the site will always be appropriate for development; there are a variety of options available including hotel, office and residential uses. Whilst office use TENANCY is the Council’s preferred use, the fallback position with a prior notification for residential Sapphire East (Blocks A, B and C) is currently let (89%) to two tenants with an AWULT of 9.06 years to lease expiry and 4.74 years taking into account the one break together with the extant permission for a business hotel provides options for taking the option. The income produced in the property is secured against two government tenants, thereby offering undoubted income security during their lease terms. The site forward. current passing rent is £541,859 per annum. Sapphire West (Blocks D, E and F) is vacant and has been delisted so as not to attract vacant rates. Within the third floor vacant suite of Sapphire East, there is a landlord’s service and estate charge liability for 2014/15 of £52,815 per annum and a rates liability of £39,933 per annum. Within Sapphire West, there is a landord’s estate charge liability for 2014/15 of £34,760 per annum. The current net income is therefore £414,351 per annum, which should increase to circa £425,000 following the reduction in the service charge for 2015/2016.

Block/Floor Tenant NIA sq ft NIA sq m Lease Start Lease Expiry Break Option Rent pa Rent psf Car Spaces Comment Tenant has been in occupation since 1988 and recently rebased rent from Block A (Ground, 1st, 2nd, 3rd), Block B (Ground) Environment Agency 22,594 2,100 06/06/2014 05/06/2019 £239,159 £10.59 71 £377,820 pa (£16.72). Service charge cap of £240,000 per annum (£10.50 per sq ft). Schedule of condition. Block B (1st) Block C (Ground, 1st, 2nd) The First Secretary of State 18,555 1,724 25/12/2003 24/12/2028 01/04/2021 £302,700 £16.31 57 Option to break subject to 9 months notice. Service and estate charge liability for 2014/15 = £52,815 per annum. Block C (3rd) Vacant 4,746 441 £0 17 Rates liability for 2015/16 = £39,933 per annum. Reception 1,249 116

Sapphire East Sub Total 47,14 4 4,381 £541,859 145 Sapphire West Sub Total 41,231* 3,905* £0 133 Estate charge liability for 2014/15 = £34,760 per annum. Substation Midlands Electricity Board 29/12/1974 28/12/2073 £0 Overall Total 88,375 8,286 £541,859 278 Net Income Total (less 2014/15 service and estate charge and rates liability) £414,351

*As Sapphire West has been stripped out the NIA figures given are prior to this. 16 17 SAPPHIRE COURT I STREETSBROOK ROAD I SOLIHULL I B91 1QT

DEVELOPMENT & REFURBISHMENT POTENTIAL Macro level considerations Micro level considerations • Distinct lack of refurbished Grade A office buildings in Solihull town centre and • Solihull town centre is 500m distant providing all necessary amenities. no speculative development underway, despite increasing levels of demand • The property occupies an excellent location adjoining Solihull railway station for Grade A accommodation. Sapphire Court is at a stage in its life cycle where there exists various and associated bus stops. This is very attractive from both an office or opportunities to improve the value of the property • New cycle Grade A office rental high of £23.75 per sq ft recently achieved at residential perspective. Interserve House, an out of town location. • The site is screened by a row of thick tree lined shrubbery, which reduces • Solihull has the 3rd highest average residential sales prices (£2,189 per sq m) noise from both Streetsbrook Road and the railway, giving a feeling of The site lends itself to a number of uses including, but not exclusive to, outside Southern . exclusivity to the site. refurbishment or redevelopment as offices, conversion or new build residential, • Solihull resident population is regarded as being highly skilled and affluent • The existing buildings are complimented by a large surface parking area to hotel, educational use or senior living, subject to a relevant planning consent with over 70% of the urban population being considered as “suburban comfort” all sides of the property. This offers both an excellent car parking ratio for the or “symbols of success”. offices and also provides additional development land. • There are a number of town centre initiatives currently underway including • The buildings on the site are of low density and offer opportunities to infill/ extensions to Touchwood Shopping Centre, Mell Square Shopping Centre and a expand the existing properties or redevelop to a more efficient density. new Waitrose supermarket.

SAPPHIRE WEST

SAPPHIRE EAST F D E

B C A

CONSENTED HOTEL DEVELOPMENT SITE

STREETSBROOK ROAD

18 19 SAPPHIRE COURT I STREETSBROOK ROAD I SOLIHULL I B91 1QT

OFFICE REFURBISHMENT / DEVELOPMENT Existing Building Initiatives New Office Development • Refurbish existing Sapphire West office building to Grade A standard to take • Consider phased redevelopment of the whole site into two or more new Grade A Solihull is regarded as one of the Midlands prime office locations advantage of the lack of supply in Solihull town centre. Planning for a office buildings and look to increase massing on site, subject to planning. comprehensive refurbishment to include landscaping works has been granted • Architects, Fletcher Rae, have designed a stand alone, contemporary Grade A under planning application number 2012/01081. office of 64,585 sq ft (6,000 sq m) GIA / 56,620 sq ft (5,260 sq m) NIA to Solihull is regarded as one of the Midlands prime office locations. The town centre and the business parks along the M42 including Blythe Valley, Birmingham Business Park, Trinity Park, The Green and Solihull Business Park provide the highest concentration of Grade A offices • Let vacant 3rd floor office suite in Sapphire East. replace Sapphire West (c.37% increase in size). This would consist of two 4-storey 16 metre wide blocks with a link element containing the building outside of Birmingham city centre. The town has attracted a wide range of national and international occupiers including Jaguar Land Rover, • Remove The First Secretary of State break in 2021 in Sapphire East. core facilities. National Grid, RWE npower, Paragon Finance, ARUP, LaFarge, Balfour Beatty, Oracle, Fujitsu and Siemens. • Increase massing by infilling the lower storey blocks B, D and F, which lie • Recent pre-application meetings with Solihull Council support the concept of The Solihull office market enjoyed an excellent 2014 with 418,000 sq ft of office space in the town centre and the M42 corridor transacted in between the four storey blocks A, C and E. redeveloping Sapphire West as outlined above. over the course of the year. This figure is nearly double the long term average of 220,000 sq ft. With demand for Grade A office space in the town centre now outstripping supply and office stock at very low levels, new speculative developments and refurbishments of office space in Solihull are now being considered. Rents of £21.00 per sq ft have been proven at Fore Business Park and furthermore Interserve plc have just committed to a 113,657 sq ft pre-let at £23.75 per sq ft adjacent to Birmingham Airport. SAPPHIRE WEST

SAPPHIRE EAST F D E

B C A General Notes

All site dimensions shall be verified by the Contractor on site prior to commencing any works.

Do not scale from this drawing.

Only work to written dimensions.

This drawing is the property of Fletcher-Rae (UK) Limited (t/a Fletcher-Rae) and copyright is reserved by them. The drawing is not to be copied or disclosed by or to any unauthorised persons without the prior written consent of Fletcher-Rae (UK) Limited.

CGI of Proposed New Sapphire West Office Development CGI of Proposed New Sapphire West Office Development

Legend

Proposed Trees

Existing Trees

STREETSBROOK ROAD

Existing to be Demolished

Ea Ga Ca Da Fa H

Existing 6 UP

Sapphire East Visitor Parking

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Layout Plan of Proposed 20 New Sapphire West Office Development CGI of Refurbished Sapphire West Office 21 Revision

Scale 1:500@A1 Status Planning Drawn by SH Date 01.09.15 Client Caudwell Properties

Project Sapphire Court

Drawing Description Proposed Site Plan

Drawing No. 11054_PL1002 Rev. /

A r c h i t e c t s M a s t e r P l a n n e r s D e s i g n e r s N Hill Quays, 5 Jordan Street, Manchester, M15 4PY

t +44 (0)161 242 1140 f +44 (0)161 242 1141 w www.fletcher-rae.com e [email protected] SAPPHIRE COURT I STREETSBROOK ROAD I SOLIHULL I B91 1QT

RESIDENTIAL CONVERSION / REDEVELOPMENT Ten Most Expensive towns per sq m outside Southern England. Town Region Average Price (per sq m) in 2014 Residential Development & Conversion Initiatives Solihull was named “The Best Place to Live in the UK” by uSwitch Altrincham North West £2,227 • Convert Sapphire West into residential apartments under existing Permitted Edinburgh Scotland £2,214 Development Rights, for which planning has been obtained (reference at the end of 2013 based on their Quality of Life Index 2013/1815). Solihull West Midlands £2,189 • Secure planning permission to convert Sapphire East to residential apartments Leamington Spa West Midlands £2,144 A vibrant town centre, the strength of the local economy, high quality schooling and natural environment coupled with excellent upon vacant possession in the future. connectivity to Birmingham and London have been the key factors driving the demand for residential property in Solihull town centre. Aberdeen Scotland £2,125 The town was named “The Best Place to Live in the UK” by uSwitch at the end of 2013 based on their Quality of Life Index. • Alternatively, consider a phased redevelopment of the whole site, increasing Harrogate Yorkshire £2,077 massing, to deliver a scheme of new residential apartments, subject to planning. Solihull has experienced a robust period of residential growth in recent years and is considered one of the most buoyant and strongest York Yorkshire £1,908 performing towns in the region. In terms of capital growth over the past 12 months, vendor asking prices are 9% higher, partly driven by an • Furthermore, explore options for senior living or care home uses. Sutton Coldfield West Midlands £1,857 increasing supply/ demand imbalance (Source: Rightmove). Current prime residential sales values for apartments in central Solihull are • The site is of such a size and location to allow a scale of redevelopment which now over £375 per sq ft. Macclesfield North West £1,783 would be of interest to Private Rented Sector investors. Worcester West Midlands £1,770

There are many residential developers active in the region with current examples including: • Ortus Homes (a McCarthy & Stone company) have developed Scarlet Oak to the immediate east of Solihull town centre. This is a development of 28 two bedroom apartments with gated car parking is exclusively for over 55’s, with prices starting from £325,000. • Two miles south of Solihull town centre, Crest Nicholson have developed Dorridge Gate, a scheme of 27 two, three and four bed homes, with prices starting from £235,000. They have a second phase planned called Dorridge View which will comprise 17 three, four and five bed executive houses set on a private road. • Three miles to the south east, Damson Homes are developing Birchy Greens, a scheme of 5 three, four and five bed houses, with prices from £525,000. • Two miles to the south east, Marcity are developing Catherine’s Court, a scheme of 14 two bed apartments, with prices from £305,000.

SAPPHIRE WEST

SAPPHIRE EAST F D E

B C A CGI of Conversion of Sapphire West

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HOTEL DEVELOPMENT Hotel Development Initiatives Planning has been granted for a 99-bed hotel with associated • On the existing car park to the south of the site, planning has been granted for the development of a 99-bed hotel over ground and four conference and bar/restaurant facilities upper floors with associated conference and bar/restaurant facilities.

• Designed by Fletcher Rae, the total floor area of the hotel granted is Hotels in the West Midlands region continue to perform well seeing a further year of growth in 2014 on top of the year on year growth 35,565 sq ft (3,304 sq m), and the room types include: 87 double from the low point of 2010. Occupancy rates have increased due to both business and leisure factors, such as major conferences in the rooms, 8 family rooms and 4 accessible rooms. area, and the increasingly popular annual German Christmas Market in Birmingham city centre. During the latter event occupancy rates in • Planning has been granted under planning application number central Birmingham rose by over 5% to 84% in 2014, with the average room rate and RevPAR both increased by 11% and 17% respectively 2012/01081. during the same period. • Strong interest has been received in this site from Travelodge who Solihull town centre has seen the recent development of a 112-bed Premier Inn hotel to complement the existing offer of a 120-room are keen to locate in Solihull town centre. Wright Silverwood are Holiday Inn, 185-room Ramada and the 180-room 4* St John’s Hotel. Furthermore, there are active hotel requirements in the Solihull area Travelodge’s retained advisors in the Midlands. from such brands as Travelodge and Accor. CGI of New Hotel Hotel rental room rates in the area are now in excess of £5,000 per room. Prime net initial yields for well let hotels in equivalent locations to Solihull are currently in the order of 4.75 - 5.00% NIY with good demand from institutional investors.

CGI of New Hotel SAPPHIRE WEST

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PEDESTRIAN ACCESS POINT SAPPHIRE EAST CONSENTED HOTEL DEVELOPMENT SITE

PROPOSED HOTEL FOOTPRINT

HOTEL CAR PARK/ DROP OFF STREETSBROOK ROAD

MAIN SITE ACCESS

STREETSBROOK ROAD

24 25 SAPPHIRE COURT I STREETSBROOK ROAD I SOLIHULL I B91 1QT

VAT CAPITAL ALLOWANCES The property is elected for VAT and it is proposed that the We understand that capital allowances may be available, sale will be treated as a Transfer of a Going Concern. (TOGC). subject to negotiation. EPC DATA ROOM There is a data room for the property with key tenancy The property has an EPC rating of C and a score of 71. information, title documents, EPC certificate, planning A copy of the EPC certificate and recommendation report is information, architects plans and service charge details. available on the Lewis Ellis website. Access to it can be obtained via the ‘Current Sales’ page on the Lewis Ellis website: www.lewisellis.co.uk.

26 27 SAPPHIRE COURT STREETSBROOK ROAD I SOLIHULL I B91 1QT

PROPOSAL We are instructed to seek offers, on an unconditional basis,in excess of £10,000,000 (Ten Million Pounds), subject to contract and exclusive of VAT for the freehold interest in the subject property. A purchase at this level equates to a low capital value of £113 per sq ft. Alternatively, the property is held within an SPV which can be acquired by way of a company sale, further information is available on request.

FURTHER INFORMATION Should you require any additional information or wish to view the property please contact either: Matthew Brown David Kos Tel: 020 7493 3330 Tel: 020 7493 3330 Mob: 07836 724420 Mob: 07709 813267 Email: [email protected] Email: [email protected]

Lewis Ellis LLP for themselves or nominees or lessors of this property whose agents they give notice that: (1) the particulars are set out as a general outline only for the guidance of the intending purchasers or lessees, and do not constitute part of an offer or contract; (2) 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; (3) no person in the employment of Lewis Ellis LLP has any authority to make or give any representation or warranty whatever in relation to the property. September 2015. Designed and Produced by Creativeworld. Tel: 01282 858200.