N O.1 COLMORE SQUARE

A LANDMARK OFFICE INVESTMENT IN THE HEART OF BIRMINGHAM’S CENTRAL BUSINESS DISTRICT

2 3 N O.1 COLMORE SQUARE BIRMINGHAM

ASSET OVERVIEW

NO.1 COLMORE SQUARE ONE OF BIRMINGHAM’S MOST PRESTIGIOUS ADDRESSES

PRIME TROPHY OFFICE PASSING RENT OF £5,915,251 PER ANNUM No.1 Colmore Square comprises a prime, trophy office asset Multi-let to 5 tenants, producing a total passing rent of £5,915,251 set over ground and nine upper floors. per annum (£5,741,139 per annum net after ground rent deduction), including rental guarantees on the part 3rd floor and 5th floor. GLOBALLY RECOGNISABLE TENANTS

Well secured multi-let office investment let to five globally LOW AVERAGE RENT OF £27.79 PSF recognisable tenants. The passing rent reflects a low average rent of £27.79 psf on the office accommodation, with prime rents in the city centre now REMASTERED AND COMPREHENSIVELY REFURBISHED reaching between £33.50-£35.00 per sq ft. The property has been subject to an extensive refurbishment to the 3rd, 5th and 6th floors which also included a brand new reception, new amenities, common areas and M&E. RENTAL PERFORMANCE The fully refurbished vacant space on part 3rd floor and 5th floor provides an excellent opportunity to set new rental levels to support PRIME LOCATION future performance of the asset. One of the most high profile positions in Birmingham overlooking Colmore Square and strategically situated 130m from Birmingham Snow Hill Railway Station and 500m from Grand Central Station, A STRONG WAULT whilst the planned High Speed 2 terminus is within 530m. The investment has an excellent average weighted unexpired lease A Midland Metro extension linking Snow Hill to Grand Central term of 6.7 years on the let space. runs past the western elevation of the property, where there is a stop for the service on Bull Street nearby. LONG LEASEHOLD The property is held long leasehold for a term 250 years from NET INTERNAL AREA OF 202,633 SQ FT 29 September 1999, with a current ground rent of £174,112 The property has a Net Internal Area of 202,633 sq ft (18,828 per annum. sq m), and provides 133 car parking spaces across two sub- basement parking areas, giving a car parking ratio of 1:1,524 sq ft. WIREDSCORE CERTIFICATION No. 1 Colmore Square is Wired Certified Platinum demonstrating FLEXIBLE FLOOR PLATES its best-in-class digital infrastructure and connectivity. Regular floor plates with excellent natural light ranging from 19,131 sq ft to 22,058 sq ft. LEASING WEBSITE www.no1colmoresquare.uk

4 5 N O.1 COLMORE SQUARE BIRMINGHAM

INVESTMENT PROPOSAL

Offers are invited in excess of £100,000,000 subject to contract and exclusive of VAT, for the long leasehold interest in No.1 Colmore Square.

Long leasehold for 250 years from 29 September 1999 (230 years unexpired) with a fixed ground rent based upon the greater of the minimum ground rent being £150,000 or 3% of rents received and reviewed on a five yearly basis by calculating the average rental income over the preceding five-year period (currently £174,112 per annum).

A purchase at this level reflects a Net Initial Yield of 5.38%, assuming purchaser’s cost of 6.79%, a capital value of £493.43 per sq ft and an attractive Reversionary Yield of 5.75%.

6 7 8 9 N O.1 COLMORE SQUARE BIRMINGHAM

POSSIBLY THE BEST ADDRESS IN BIRMINGHAM

Snow Hill Queensway

James Watt Queensway

LOCATION Ludgate Hill Weaman St 01 Whittall St NO.1 COLMORE SQUARE

08 Birmingham Snow Hill 09 OVERLOOKING THE REMODELLED COLMORE SQUARE, NO.1 COLMORE SQUARE IS SITUATED IN A PROMINENT POSITION AT THE HEART OF BIRMINGHAM’S 11 CENTRAL BUSINESS DISTRICT. Newhall St 07 Corporation St Lionel St 06 Colmore Square 12 The property occupies a prime and high profile position overlooking Looking into the future, No.1 Colmore Square is well positioned Colmore Square. It sits within close proximity to Bull Street Metro to benefit from new upcoming developments in Birmingham. The

Station of the recently extended Metro Line, which acts as a fast link scheme, which is currently in its planning Great Charles St Queensway between the city’s two major railway stations, Birmingham Snow Hill stage, will act as the new gateway to the Colmore Business District and Birmingham New Street. Birmingham Snow Hill is located only a from the HS2 Curzon Street Station. minutes walk away, whilst Grand Central is approximately 8 minutes walk. The surrounding area of the property is occupied by some of Cornwall St Birmingham’s highest profile occupiers. Nearby companies include Edmund St Great Colmore Square is a prime location situated at the north eastern end RICS, KPMG, RBS, Gowling WLG, Shoosmiths, Barclays, HS2, Western of Colmore Row and to the south west of the Snow Hill development. Wesleyan and PwC. Lionel St 05 Arcade Colmore Square is undoubtedly the most prestigious address in 15 Birmingham 02 Birmingham’s Central Business District. STATION DISTANCE WALK TIME Newhall St Cathedral Colmore Row Snow Hill 125 metres 1 minute Edmund St Bull St No.1 Colmore Square is just a 10 minute walk away from the New Street (Grand Central) 500 metres 8 minutes Dale End forthcoming Curzon Street Terminal of HS2, whilst also well positioned to benefit from the retail and leisure aspects the Central HS2 Curzon Street Terminal 530 metres 10 minutes 03 14 Business District has to offer, being only a short walk away from Bull Street Stop (Metro Line) 75 metres 2 minutes 10 E an abundance of various national and local restaurants. 04 Colmore Row Chamberlain F Square 13

01 02 03 04 05 Birmingham Victoria Temple St Town Hall Square

Corporation St

Broad St Birmingham Moor St Stephenson St 06 07 08 09 10 Grand Central Su olk St Queensway Selfridges

H ill St Birmingham Bullring New Street Shopping Centre 11 12 13 14 15

Street tion Sta

10 11 N O.1 COLMORE SQUARE BIRMINGHAM

BIRMINGHAM £1.3 BILLION £110 BILLION 130,000

THE UK’S SECOND CITY INVESTED IN INFRASTRUCTURE REGIONAL ECONOMY JOBS IN FINANCIAL SERVICES SINCE 2010

BIRMINGHAM IS THE UK’S SECOND CITY IN TERMS OF POPULATION SIZE AND IS ALSO THE LARGEST CONTRIBUTOR TO NATIONAL GDP OUTSIDE OF LONDON. 2018 16% 40%

NAMED THE UK’S MOST RISE IN RESIDENTS SINCE 2000 - APPROXIMATELY 40% OF The city is at the forefront of the regional economy, being worth Birmingham is fast becoming the most popular alternative to London ENTREPRENEURIAL CITY IN 2018 – NOW THE MOST POPULOUS CITY POPULATION IS UNDER THE AGE approximately £110 billion, and has the largest concentration of for graduates, which is underlined by the city having the second INSTANT OFFICES OUTSIDE OF LONDON OF 25 – THE YOUNGEST AND MOST business of all regional cities, with Birmingham home to approximately highest graduate retention rate in the UK. This is further underlined by DIVERSE POPULATION OF ANY 75,000 companies. living costs within the city being 60% lower than in London, which MAJOR EUROPEAN CITY adds to the already convincing case for Birmingham as an alternative It sits at the centre of the larger Greater Birmingham conurbation, location to the capital. and as a result has the largest regional labour pool in the UK, with 4.3 million people of working age living within one hour’s drive. New Street Station has been transformed into the impressive gateway of Grand Central, the city’s Midland Metro line has also been The increasing inward investment in Birmingham has been rewarded extended, and Birmingham Airport has witnessed further expansion. 65,000 2022 £3 BILLION by a number of major corporations relocating parts of their operations With another £3 billion planned for new projects over the next 10 to the city, including PwC, Barclays, Deutsche Bank, Advanced, year period, including the construction of the HS2 terminal at Curzon UNIVERSITY STUDENTS – SECOND HOST OF THE 2022 PLANNED FOR NEW PROJECTS Beazley Insurance, HSBC, HS2, RICS, WSP, and the General Dental Street Station, Birmingham will further establish itself as a globally ONLY TO LONDON IN TERMS OF COMMONWEALTH GAMES OVER THE NEXT 10 YEARS Council at 1 Colmore Square. Moreover, the city is home to a number integrated business location. NURTURING THE NEXT WAVE OF INCLUDING THE NEW HS2 CURZON of other major corporations with businesses such as Jaguar Land Rover, HIGHLY SKILLED EMPLOYEES STREET TERMINAL Wesleyan, Eversheds Sutherland LLP, Gateley LLP, RBS, Barclays, Investment in the city’s infrastructure also contributed highly to Lloyds, Handelsbanken, Investec, KPMG, Kraft, and Gowling WLG Birmingham’s successful bid to host the Commonwealth Games all having significant headquarter facilities in the region. in 2022. The Games will allow Birmingham to demonstrate its connectivity, inclusivity, diversity and rejuvenation on a global NETWORK INTERNATIONAL COMPANIES HS2 PHASE 1 Birmingham has also established itself as a hub for advanced scale. Located at the heart of the UK, Birmingham is extremely well manufacturing. This sector has benefitted from the city producing positioned to attract people to the Games and the city itself, allowing Heart of the UK motorway road network International companies such as PwC, Reducing time between Birmingham and 25,000 graduates a year. In addition to the graduates produced further opportunity for Birmingham to exhibit its ongoing regeneration Barclays, Deutsche Bank, Advanced, Beazley London to 49 minutes. within Birmingham, there are a further 20 universities within one hour‘s and transformation. Insurance, HSBC, RBS, RICS, Gowling drive of the city, producing an additional 114,000 graduates a year. WLG and WSP Global have all relocated operations to Birmingham

12 13 N O.1 COLMORE SQUARE BIRMINGHAM

M90

GLASGOW EDINBURGH

M8 M77 BIRMINGHAM CONNECTIVITY

M74 EDINBURGH

NEWCASTLE UPON TYNE BIRMINGHAM IS A TRULY INTERNATIONAL CITY. IT IS AT THE HEART OF THE UK’S ROAD AND RAIL NETWORK AS WELL AS HAVING AN EVER EXPANDING INTERNATIONAL AIRPORT, WHICH HANDLES OVER 12.9M PASSENGERS EVERY YEAR.

M6 BELFAST INTERNATIONAL A1 DARLINGTON AIRPORT

BELFAST ROAD AIR Birmingham is in the heart of England’s motorway network linking the Birmingham Airport is located approximately 8 miles south east of M1, M5, M6, M40 and M42 meaning 90% of the population can but is accessed in less than 10 minutes via LEEDS be accessed within 4 hours. Birmingham Grand Central station. The following destinations have PRESTON HULL regular flights from Birmingham Airport: RAIL NEW YORK M62 MANCHESTER Birmingham has three main train stations in the heart of the city centre, DESTINATION JOU RNEY TIME Moor Street, Snow Hill and Grand Central (New Street), all with Paris 1hr 15 mins DUBLIN regular services across the country. AIRPORT Edinburgh 1hr 10 mins LIVERPOOL AIRPORT M6 M1 Grand Central is the busiest interchange station in the UK outside Dublin 1hr 5 mins DUBLIN of London with a train departing every 37 seconds and more Geneva 1hr 30 mins than 140,000 people passing through every day. The stations Barcelona 1hr 40 mins redevelopment has increased the capacity from 32 million Dubai 6hr 55 mins passengers per year to 52 million. EAST MIDLANDS New York 7hr 45 mins AIRPORT NORWICH LEICESTER DESTINATION JOURNEY TIME BIRMINGHAM MIDLAND METRO M6 London (Euston) 1hr 20mins In December 2015, the extension of the line between Birmingham BIRMINGHAM Manchester 1hr 29mins Snow Hill and Grand Central was completed following a £128m AIRPORT CAMBRIDGE COVENTRY Leeds 2hr 3mins investment. The system is currently being extended further to Centenary AIRPORT M1 Square, with planned stops outside the Birmingham Library, M5 DUBAI Edinburgh 4hr 57mins M40 and eventually into . The Midland Metro currently carries an estimated 4.8m passengers per year. LUTON AIRPORT M25 SWANSEA SWINDON LONDON M4 CARDIFF BRISTOL M4

HEATHROW AIRPORT M26 M23 M3 GATWICK FOLKESTONE AIRPORT SOUTHAMPTON M5

EXETER

GENEVA BARCELONA Motorways

PARIS Railways PLYMOUTH Airlines

14 15 N O.1 COLMORE SQUARE BIRMINGHAM

49 MINS £137 M 50,000

TRAVEL TIME FROM BIRMINGHAM GRAND CENTRAL STATION IS TO IT IS ANTICIPATED THAT 50,000 TO LONDON WILL BE CUT TO BE LINKED TO THE NEW TERMINAL ADDITIONAL JOBS WILL GLASGOWIN FEBRUARY 2017, THE HS2 BILL RECEIVED ROYAL ASSENT PAVING THE WAY FOR EDINBURGH 49 MINUTES AT CURZON STREET VIA A £137 BE CREATED IN THE WEST CONSTRUCTION TO BEGIN BETWEEN LONDON AND BIRMINGHAM. HS2 WILL BECOME MILLION METRO EXTENSION MIDLANDS REGION THE WORLD’S MOST ADVANCED PASSENGER RAILWAY SYSTEM. IT IS ANTICIPATED THAT AROUND 25,000 DIRECT JOBS WILL BE CREATED IN BIRMINGHAM AND THE WIDER REGION, AS WELL AS AN ADDITIONAL 100,000 IN THE WIDER NETWORK.

The Department for Transport has confirmed that the line will mean It is anticipated that 50,000 additional jobs will be created in the NEWCASTLE UPON TYNE travel time between Birmingham and London will be cut to 49 region, with 26,000 of these based in Birmingham. minutes. Two major interchange stations will be constructed as a result This in turn will lead to a £4 billion increase in economic output in £1 BILLION £4 BILLION – Arden Cross at Junction 6 of the M42 and Curzon Street in the the region per year, which will also generate an average increase in centre of Birmingham. £680 per worker. In addition to the positive impact HS2 will have APPROXIMATELY £1 BILLION TO IT IS FORECAST THAT HS2 WILL on Birmingham’s commercial sector, the scheme is also set to benefit BE INVESTED IN THE DEVELOPMENT LEAD TO A £4 BILLION INCREASE IN Grand Central Station is to be linked to the new terminal at Curzon the city’s residential market. The average Birmingham house price has OF THE BRAND NEW CURZON ECONOMIC OUTPUT IN THE REGION Street via a £137 million Metro extension, whilst approximately increased by 8% since 2017, and is forecast to increase further as STREET STATION EACH YEAR £1 billion is to be invested in developing the Curzon Street station. HS2 gets closer to completion. DARLINGTON

LEEDS PRESTON HULL

MANCHESTER

NORWICH LEICESTER BIRMINGHAM

CAMBRIDGE

SWANSEA SWINDON LONDON CARDIFF BRISTOL

FOLKESTONE

SOUTHAMPTON

EXETER

16 17 PLYMOUTH N O.1 COLMORE SQUARE BIRMINGHAM

Birmingham is home to 5 Michelin starred restaurants, more than any The Mailbox, Birmingham’s luxury retail, leisure and entertainment BIRMINGHAM other city outside of London. Furthermore, all six major UK department destination centre, has recently undergone a £50m redevelopment A LEISURE LOCATION stores (Selfridges, John Lewis, Harvey Nichols, House of Fraser, M&S to include an expanded Harvey Nichols store as well as additional and Debenhams) have a presence in the city centre. The John Lewis retail and leisure facilities. The scheme is home to occupiers including store, a £35m investment in 2014, extends to 250,000 sq ft and the BBC, Tommy Hilfiger, Paul Smith and Hugo Boss, whilst there created 650 new jobs for the city. is also an Everyman Cinema and a variety of bars including Toms Kitchen, Café Rouge and Miller & Carter. BIRMINGHAM HAS EXPERIENCED A REVITALIZATION OVER THE LAST DECADE, John Lewis is the anchor tenant for the Grand Central scheme, WITH THE CITY TRANSFORMING INTO A DIVERSE, CULTURAL HOTSPOT WHICH IS a £150m redevelopment of Birmingham New Street station According to Global Tourism Solutions, Birmingham welcomed DRAWING AN EVER-INCREASING NUMBER OF YOUNG PEOPLE TO THE AREA. which included a new 500,000 sq ft shopping centre. 41.8m visitors in 2017, with subsequent visitor spend reaching £7.1bn – an increase of more than 9 per cent in the space of a year. The Bullring, anchored by Selfridges and totalling 1.349m sq ft, is the premier retail destination in the West Midlands with an estimated The Colmore Business District is home to some of Birmingham’s 36m visitors every year. The scheme was named one of Europe’s premier food and beverage destinations. In recent years, operators best established shopping centre in 2016 by ICSC, and retailers including Gusto, The Alchemist, The Ivy, Gaucho, Fazenda, based within the shopping centre perform 55% better than their Dirty Martini, Head of Steam, Mowgli and most recently Tattu national averages. The Bullring has a total resident catchment have all opened premises within the area, whilst long-standing of approximately 3.5 million, which is one of the largest retail occupiers such as San Carlo, Fumo, Adams and Purnells remain catchments in the UK. popular leisure destinations.

JOHN LEWIS IS THE ANCHOR TENANT FOR THE GRAND CENTRAL SCHEME

1.349 MILLION SQ FT 41.8M £7.1 BILLION 5

THE BULLRING IS THE PREMIER VISITORS TO BIRMINGHAM VISITOR SPEND IN 2017 – AN BIRMINGHAM HAS 5 MICHELIN RETAIL DESTINATION IN THE IN 2017 INCREASE OF MORE THAN 9% STARRED RESTAURANTS, WEST MIDLANDS MORE THAN ANY OTHER UK CITY OUTSIDE OF LONDON

18 19 N O.1 COLMORE SQUARE BIRMINGHAM

BIRMINGHAM INWARD INVESTMENT & DEVELOPMENT

03 01 02

01

02 07 PARADISE GRAND CENTRAL STATION 1.5million sq ft of office and leisure Grand Central Station - £650million space across 8 new buildings. The redevelopment to provide a scheme has already secured PWC transformational gateway to the city. and Two is under construction.

03 04

04 ARENA CENTRAL SNOW HILL STATION 05 Circa 1million sq ft of office Set to undergo a transformation as the accommodation across 5 new gateway to the proposed Snow Hill buildings. To include the new Masterplan, acting as the main public Headquarters of HSBC Retail Banking interchange in the heart of the district. 08 and a government hub. 05 06

3 HS2 CURZON STREET STATION

06 The final phase of the Snowhill Scheme HS2 Curzon Street Station - £1 billion extending to 404,000 sq ft. Practical site of HS2 terminal, reducing journey completion is anticipated in mid 2019. time to London to just 49 minutes.

07 08

103 COLMORE ROW MARTINEAU GALLERIES

103 Colmore Row - 236,945 sq ft More than 1,000,000 sq ft of office of new office space across 25 floors. space, 50,000 sq ft of retail and Practical completion is anticipated 1,100 residential apartments. in 2021.

20 21 N O.1 COLMORE SQUARE BIRMINGHAM

DESCRIPTION

ONE OF THE MOST HIGH PROFILE, PRIME OFFICE BUILDINGS IN BIRMINGHAM

No. 1 Colmore Square commands a dominant position in the heart of Birmingham’s central business district. Since acquisition, our client has taken the opportunity to further enhance it as a key commercial destination. The building has been remastered and reinvented, with the best quality finishes affording genuine gravitas. A stunning new entrance sets the tone and throughout, standards have been raised, with a design-led reimagining of common areas, enhanced amenities and re-specified floorplates offering truly impressive work space.

22 23 N O.1 COLMORE SQUARE BIRMINGHAM

ACCOMMODATION

THE OFFICE ACCOMMODATION PROVIDES HIGHLY FLEXIBLE AND ADAPTABLE FLOOR PLATES EXTENDING FROM 19,131 SQ FT TO 22,057 SQ FT, BEING SOME OF THE LARGEST FLOOR PLATES CURRENTLY BEING OFFERED IN BIRMINGHAM CITY CENTRE.

GIVEN THE BUILDINGS LOCATION OVERLOOKING COLMORE SQUARE, THE OFFICE FLOORS BENEFIT FROM EXCELLENT VISTAS AND LEVELS OF NATURAL LIGHT.

The property is accessed via a stunning double height reception from Colmore Square, with access to the office floors provided via a new speed gate entry system to the refurbished lift lobby. The lift lobby incorporates six 21-person passenger lifts, as well as one goods lift and one firefighting lift. The lobby area is finished with honed limestone flooring and perforated metal ceiling tiles.

The buildings main reception area, as well as the 3rd, 5th and 6th floors, were comprehensively refurbished in 2016. At ground floor level, the main reception area was extended and upgraded, whilst new shower facilities were also incorporated. The shower facilities were designed with all glass enclosures and finished with Stratton Umber ceramic tiles. A drying and locker room was also incorporated into the building’s ground floor as part of the refurbishment, with inset lockers and increased temperature changes installed as part of the works.

WCs have been refurbished to incorporate high quality finishes and redecoration. Flooring within the WCs is covered by natural ceramic tiles of Stratton Umber finish, whilst wall mounted electric taps are also incorporated.

Additionally, a high-efficiency air cooled packaged water chiller plant has been installed to serve the building. The plant is complete with standby capacity. The refurbished floors benefit from a brand new central intelligent Building Energy Management System (BEMS) which also controls the new fan coil units.

The comprehensive refurbishment of No.1 Colmore Square has helped bring the property in line with modern sustainability and efficiency standards, with the building now classified as BREEAM Very Good with an EPC rating of B.

The property is one of only two buildings in Birmingham to boast a Platinum WiredScore

24 25 N O.1 COLMORE SQUARE BIRMINGHAM

SPECIFICATION

THE COMPREHENSIVE REMASTERING OF NO. 1 COLMORE SQUARE FUTURE-PROOFS THIS MAJESTIC BUILDING FOR THE 21ST CENTURY, BRINGING IT INTO LINE WITH MODERN REQUIREMENTS OF SUSTAINABILITY AND PERFORMANCE. IT IS CLASSIFIED AS BREEAM VERY GOOD, WITH AN EPC RATING OF B AND A PLATINUM WIREDSCORE.

Raised access floors with 150mm void

Suspended tiled ceiling with recessed LED lighting

‘Intelligent’ lighting controls

New high efficiency heating and cooling 4 pipe fan coil units

Provision for floor mounted small power outlets throughout floorplates

New Shower facilities with complimentary towels, soaps and concierge facility

New purpose built locker and drying rooms

Fully refurbished and remodelled WC’s on the 3rd, 5th and 6th floors

Part third floor has the benefit of a cat B fit out

Platinum WiredScore

26 27 N O.1 COLMORE SQUARE BIRMINGHAM

28 29 N O.1 COLMORE SQUARE BIRMINGHAM

SCHEDULE OF AREAS

THE PROPERTY HAS PREVIOUSLY BEEN MEASURED AND PROVIDES THE FOLLOWING NET INTERNAL AREAS

FLOOR AREA (SQ M) AREA (SQ FT)

GROUND 1,064.7 11,460

FIRST 1,971.3 21,219

SECOND 2,049.3 22,058

THIRD 2,017.9 21,721

FOURTH 2,049.2 22,057

FIFTH 2,045.8 22,021

SIXTH 2,046.9 22,033

SEVENTH 1,998.9 21,516

EIGHTH 1,806.7 19,447

NINTH 1,777.3 19,131

TOTAL 18,828.0 202,663

Two basement levels of secure car parking provide 133 car spaces giving an excellent city centre ratio of 1:1,524 sq ft

30 31 N O.1 COLMORE SQUARE BIRMINGHAM

GROUND FLOOR N FIFTH FLOOR N 1,064.7 SQ M (11,460 SQ FT) 2,045.8 SQ M (22,021 SQ FT)

Dis. WC Lobby

Clnr's

Male WC Female WC

Lobby Lobby

Lift Lobby

UP UP

Dis. WC Clnr's

Open Plan Office

UP

THIRD FLOOR 2,017.9 SQ M (21,721 SQ FT) Wired Certification provides the global benchmark for digital connectivity in commercial office buildings

WIRED CERTIFICATION s

Wired Certified Platinum is the highest WiredScore rating. Achieving TWO DIVERSE TELECOMMUNICATION POINTS OF ENTRY this confirms that No.1 Colmore Square has best-in-class digital AND TWO DIVERSE RISERS infrastructure and connectivity to provide for tenants’ needs now and Why this matters: This reduces the risk of single points of network in the future. failure and provides tenants with the option of full resiliency. This will allow sophisticated tenants to occupy the building. Male WC Female WC

Lobby Lobby FOUR INDEPENDENT FIBRE PROVIDERS Why this matters: This provides substantial choice for tenants around AMPLE CAPACITY FOR THE INSTALLATION OF FUTURE Lift Lobby their own (existing or potential) service and options for backup TELECOMMUNICATION INFRASTRUCTURE provision. It also creates a competitive pricing environment providing Why this matters: This capacity will ensure No. 1 Colmore Square tenants with access to the best available rates. can meet the digital connectivity demands of existing and future tenants’ installation requirements, and ensure fast occupation. FIXED WIRELESS PROVISION: Dis. WC Why this matters: Fixed Wireless is an alternative telecommunications technology giving tenants access to another provision option and the ability to create further connectivity resilience, both supplier and physical.

Floor plans are not to scale, for indicative purposes only.

32 33 N O.1 COLMORE SQUARE BIRMINGHAM

TENURE

THE PROPERTY IS HELD LONG LEASEHOLD FOR 250 YEARS FROM 29 SEPTEMBER 1999 (230 YEARS UNEXPIRED).

There is a ground rent based on the greater of the minimum ground rent being £150,000 or 3% of rents received and reviewed on a five yearly basis by calculating the average rental income over the preceding five-year period (currently £174,112 per annum). The ground rent is subject to review on 29 September 2019.

The freehold interest is held by The Trustees of the Central England Area Quaker Meeting of the Religious Society of Friends.

The property occupies a site extending to 0.63 acres (0.26 hectares)

as illustrated by the OS plan.

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Priory Gate

3 3

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COLMORE CIRCUS QUEENSWAY Priory House

Colmore Square

Pitman Buildings

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Colmore Square 14 to 18

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Colmore Gate 8

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4 1 7 3 4 0 to Old Square

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8 2 1 B 7 U L Ordnance Survey © Crown Copyright 2019. All rights reserved. Licence number 100022432. Plotted Scale - 1:1L250 S T R E E T

34 35 N O.1 COLMORE SQUARE BIRMINGHAM

TENANCY SCHEDULE

DEMISE TENANT AREA CAR TERM START DATE LEASE EXPIRY CURRENT RENT PSF OR MARKET RENTAL ERV PSF / NEXT RENT REVIEW COMMENTS (SQ FT) SPACES ANNUAL RENT PER SPACE VALUE (MRV) PER SPACE 1st Floor, 2nd Floor Shakespeare Martineu LLP 52,000 21 May 2004 20 May 2024 £1,431,870 £27.03 £1,534,000 £29.50 21 May 2019 & Part Ground Floor

Part 3rd Floor Hays Specialist Recruitment Ltd 14,221 14 September 2017 13 September 2027 £436,046 £31.00 £419,520 £29.50 14 September 2022

Part 3rd Floor VACANT 7,500 £221,250 £29.50 £221,250 £29.50 2 year rent, rates and s/c guarantee

4th Floor Cushman & Wakefield Debenham 22,057 21 May 2004 20 May 2024 £597,500 £27.09 £650,682 £29.50 21 May 2019 Lease states floor area of Tie Leung Ltd 22,131 sq ft

5th Floor VACANT 22,021 £649,620 £29.50 £649,620 £29.50 2 year rent, rates and s/c guarantee

6th Floor The General Dental Council 22,033 1 October 2018 30 September 2033 £595,000 £27.00 £649,974 £29.50 1 October 2023

7th Floor, 8th Floor, Ernst & Young LLP 62,831 21 May 2004 20 May 2024 £1,696,464 £27.00 £1,853,515 £29.50 21 May 2019 9th Floor & Part Ground Floor

Car Spaces Shakespeare Martineu LLP 34 16 June 2004 20 May 2024 £68,000 £2,000 £85,000 £2,500 21 May 2019

Car Spaces Cushman & Wakefield Debenham 15 30 July 2004 20 May 2024 £30,000 £2,000 £37,500 £2,500.00 21 May 2019 Tie Leung Ltd

Car Spaces The General Dental Council 5 20 December 2018 30 September 2033 £12,500 £2,500 £12,500 £2,500 1 October 2023

Car Spaces Ernst & Young LLP 41 21 May 2004 20 May 2024 £82,000 £2,000 £102,500 £2,500 21 May 2019

Vacant Car Spaces VACANT 38 £95,000 £2,500 £95,000 £2,500 2 year rent, rates and s/c guarantee. GDC has an option on 10 spaces

Sub Station Western Power Distribution 38 30 September 2002 29 September 2077 £1 £2,500 £1 £2,500 (West Midlands) Plc 202,663 133 £5,915,251 £6,311,060 Net Income after £174,112 Ground Rent £5,741,139 £6,136,948

36 37 N O.1 COLMORE SQUARE BIRMINGHAM

TENANTS

NO.1 COLMORE SQUARE IS LET TO FIVE GLOBALLY RECOGNISABLE TENANTS.

The property has a WAULT of 6.7 years. The average rent is Cushman & Wakefield represent 10.63% of the passing rent at a low £27.79 per sq ft on the let space, providing the opportunity to drive rent of £27.09 per sq ft. The rent is subject to review on 21 May greater returns through rental growth. The majority of rental income 2019. The Cushman Birmingham office is the largest outside London. is secured against tenants with low financial risk and good covenant strength. The General Dental Council signed a new lease in October 2018 and represents 10.29% of the passing rent. This letting secured a 30.14% of the passing rent is secured against Ernst & Young LLP until whole floor on a long-term lease to a tenant with excellent covenant May 2024 and will be subject to a rent review in May 2019. EY strength. This is a new headquarters facility for the GDC having Birmingham is the largest office outside London with up to 1,000 staff. moved out of London.

In September 2017, a record rent was achieved within the property 29,521 sq ft of the property is currently void, representing 14.6% of in the letting to Hays Specialist Recruitment Ltd at £31.00 per sq the building’s total floor area. This provides a significant opportunity to ft, which represents 7.47% of the overall rental income. This office establish a higher rental tone, with the achieved letting of £31.00 per provides all UK headquarters operations such as training. sq ft to Hays Specialist Recruitment Ltd setting a new rental tone.

Shakespeare Martineu represents 25.42% of the passing rent at a continuing modest rent of £27.03 per sq ft. The rent is subject to review on 21 May 2019. This office provides the headquarters for this top 50 law firm.

% OF RENT PASSING PAID BY EACH TENANT UNEXPIRED TERM FOR EACH TENANT

25.42% 15

16.04% 12

9 8.64 years 6

7.47% 5.33 years 5.33 years 5.33 years 3

0 30.14% 10.63% 14.70 years

10.29%

KEY

Shakespeare Martineu LLP The General Dental Council Ernst & Young LLP Ernst & Young Hays Specialist Recruitment Ltd Ernst & Young LLP

Leung Debenham Tie Cushman & Wakefield Cushman & Wakefield Cushman & Wakefield 2 year Rental Guarantee Shakespeare Martineu LLP

Debenham Tie Leung The General Dental Council Hays Specialist Recruitment Ltd

38 39 N O.1 COLMORE SQUARE BIRMINGHAM

CUSHMAN & WAKEFIELD DEBENHAM TIE LEUNG LTD Cushman & Wakefield Debenham Tie Leung Ltd is one of the world’s largest commercial real estate service firms. The firm currently operates in more than 70 countries and employs approximately 48,000 people. In late 2018, the COVENANT STRENGTH firm announced that it is to be listed on the NYSE. Cushman & Wakefield Debenham Tie Leung Ltd have been awarded a Dun & Bradstreet credit rating of 3N and has reported the following financials:

NO.1 COLMORE SQUARE IS LET TO 5 GLOBALLY RECOGNISED TENANTS, ALL INDIVIDUAL INDIVIDUAL INDIVIDUAL OF WHICH PROVIDE A STRONG COVENANT. ERNST & YOUNG LLP, CUSHMAN & 31/12/2017 31/12/2016 31/12/2015 IN THOUSANDS IN THOUSANDS IN THOUSANDS WAKEFIELD AND HAYS SPECIALIST RECRUITMENT OPERATE INTERNATIONALLY, Sales/Turnover 124,019 117,733 217,547 WHILST SHAKESPEARE MARTINEU LLP AND THE GENERAL DENTAL COUNCIL Profit/(Loss) Before Taxes 10,082 (29,455) 17,936 OPERATE FROM A NUMBER OF OFFICES THROUGHOUT THE UK. Equity Shareholders Funds (52,012) (60,620) (33,221) Tangible Net Worth (66,501) (78,368) (53,557)

ERNST & YOUNG LLP THE GENERAL DENTAL COUNCIL Ernst & Young LLP is a multi-national professional services firm with 250,000 The General Dental Council acts as the regulator for dental professionals employees worldwide in 150 different countries. It provides tax, consulting, throughout the UK. It monitors dental practices and ensures that all dental assurance and financial advisory services to its clients. Ernst & Young LLP have professionals maintain up to date knowledge, controlling the quality of dental been awarded a Dun & Bradstreet credit rating of 5A1 and has reported the education in the country, and ensuring a proper quality of care is given to following financials: patients.

CONSOLIDATED CONSOLIDATED CONSOLIDATED The General Dental Council have been awarded a Dun & Bradstreet credit 29/06/2018 30/06/2017 01/07/2016 IN THOUSANDS IN THOUSANDS IN THOUSANDS rating of 4A1 and has reported the following financials: Sales/Turnover 2,412,000 2,348,000 2,150,000 INDIVIDUAL INDIVIDUAL INDIVIDUAL Profit/(Loss) 531,000 512,000 488,000 31/12/2015 30/12/2014 31/12/2013 Before Taxes IN THOUSANDS IN THOUSANDS IN THOUSANDS Equity Shareholders Funds 448,000 338,000 149,000 Sales/Turnover 45,945 33,140 32,795 Tangible Net Worth 428,000 317,000 127,000 Profit/(Loss) Before Taxes 1,235 6,286 527 Equity Shareholders Funds 16,889 12,555 21,443 Tangible Net Worth 16,068 11,560 20,267

HAYS SPECIALIST RECRUITMENT LTD SHAKESPEARE MARTINEU LLP Hays Specialist Recruitment Ltd is one the world’s leading recruitment and Shakespeare Martineu LLP are one of the UK’s top 50 law firms, and operate human resources companies. The firm operates from 33 countries worldwide, from a number of offices across the country. They work with a wide range of and recruit qualified, professional and skilled people across a wide range of clients – entrepreneurs, family businesses, charities, medium sized businesses specialised industries and professions. and global household names.

Hays Specialist Recruitment Ltd have been awarded a Dun & Bradstreet credit Shakespeare Martineu LLP have been awarded a Dun & Bradstreet credit rating of 5A1 and has reported the following financials: rating of 3A1 and has reported the following financials:

INDIVIDUAL INDIVIDUAL INDIVIDUAL INDIVIDUAL 29/06/2018 30/06/2017 24/06/2016 26/06/2015 IN THOUSANDS IN THOUSANDS IN THOUSANDS IN THOUSANDS INDIVIDUAL INDIVIDUAL INDIVIDUAL INDIVIDUAL 30/04/207 30/04/2016 30/04/2015 30/04/2014 Sales/Turnover 1,471,921 1,391,731 1,462,786 1,365,633 IN THOUSANDS IN THOUSANDS IN THOUSANDS IN THOUSANDS Profit/(Loss) Before Taxes 49,104 49,877 59,599 49,055 Sales/Turnover 70,245 69,165 47,801 48,010 Equity Shareholders Funds 71,567 132,897 162,619 115,232 Profit/(Loss) Before Taxes 8,877 7,055 5,389 2,165 Tangible Net Worth 48,789 108,520 133,040 97,129 Equity Shareholders Funds 8,877 7,055 5,389 2,093 Tangible Net Worth 8,877 7,055 5,389 2,093

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N O.1 COLMORE SQUARE BIRMINGHAM 15 £ per sq. ft.

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5 33.5 27 28.5 28.5 28.5 28.5 28.5 30 32.5 33.5 33.5 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 YTD

OFFICE TAKE UP SUPPLY

OFFICE MARKET OVERVIEW KEY At the end of Q4 2018 Grade A availability was 108,250 sq. Grade A Grade B Grade C ft., with a maximum of 55,000 sq ft available in a single building. Accordingly refurbished buildings have come to absorb the majority of

1,000,000 the occupational requirements, and it is those buildings where some of BIRMINGHAM’S OFFICE MARKET COMPRISES A WIDE CROSS SECTION OF OCCUPIERS FROM THE the city’s highest rents are currently being set. LEGAL AND FINANCIAL SECTORS TO FINTECH AND GAMING, THROUGH TO TECHNOLOGY AND 800,000 ADVANCED MANUFACTURING. THE MARKET IS CHARACTERISED BY A CURRENT LACK OF STOCK, 700,000 The remaining available stock will have eroded further over the next AND DEVELOPMENT PIPELINE SUPPLY WHICH IS RESULTING IN POSITIVE RENTAL GROWTH OF 2.2% 600,000 six months. This will put the city at a historic low for availability at a

OVER THE NEXT 5 YEARS. 500,000 point when demand from all sectors and inward investment has never been higher. The direct impact on rents should see growth accelerate 400,000 to new highs and put increased pressure on the pipeline to react 300,000 giving confidence to investors to keep pace up.

DRIVERS OF DEMAND AND OCCUPIER MOBILITY RENTS & FUTURE GROWTH 200,000 This imbalance between supply and demand has resulted in a positive The growing preference amongst young, skilled graduates to live and 100,000 rental growth forecast for the city of an 2.2% average over the next work in city centre locations is a key and pertinent social trend. The 35 - 5 years. preference for a city centre environment is having a direct impact 2010 2011 2012 2013 2014 2015 2016 2017 2018 30 upon the occupational decision making of larger organisations, from both the public and private sectors. 25 The gravitational pull of the city continues to be evident in occupiers’ decision making, with major corporations including HSBC moving One of the key drivers for an employer seeking access to qualified 20 2,500 staff into their new premises at Arena Central, and PwC staff is the quality and scale of the universities in Birmingham. There 15 adding 1,000 new staff into their new premises at One Chamberlain are five universities in Birmingham, with over 65,000 students in £ per sq. ft. Square. In addition, Advanced relocated all of their UK staff to the city. The growing proportion of graduates choosing to remain 10 65,000 sq ft at Mailbox, whilst Hogan Lovells have quadrupled the within Birmingham (57%) following University is further evidence of size of their occupation within Central Birmingham to take advantage 5 Birmingham’s compelling proposition in this regard. The city already of the cost benefits that can be secured by expanding the regional employs 130,000 people in the Business, Finance and Professional 33.5 27 28.5 28.5 28.5 28.5 28.5 30 32.5 33.5 33.5 0 office footprint. Services Sectors and approximately 40% of the working population is 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 under the age of 25; making Birmingham the youngest city in Europe. YTD KEY LETTING TRANSACTIONS When compared to the City or West End of London, Birmingham’s TAKE-UP Grade A office accommodation is offered at a discount of 70% to 75% in terms of rent, whilst salaries are typically c. 30% to 35% The take-up of Grade A accommodation repeatedly accounts for over DATE ADDRESS OCCUPIER SIZE RENTAL QUALITY OF BUILDING lower in the UK regions compared to London. Such financial 50% of total activity within Birmingham. This is, in part, driven by Q1 2019 Freeths LLP 6,700 £33.00 (u/o) Grade A - refurbished occupiers1,000,000 seeking to raise the profile of their business and enhance headlines remain important considerations for a high proportion Q1 2019 45 Church Street Gerald Eve 2,891 £32.50 (u/o) Grade A their staff recruitment potential. of occupiers, alongside accessibility and the working environment. 800,000 Q4 2018 1 Colmore Square General Dental Council 22,000 £27.00 Grade A - refurbished These factors are particularly important when an organisation has 700,000 the ability to be flexible in their choice of location. In 2018, the Birmingham office market recorded a take up of Q4 2018 The Lewis Building BGF 12,000 £32.00 Grade A back to frame refurbished 747,000600,000 sq ft, which has been characterised by a mixture of Q3 2018 The Colmore Building Zurich Insurance 23,000 £31.61 Grade A - refurbished local and inward investment. It is expected that H1 of 2019 will Positive sentiment will dominate 2019, with the announcements of 500,000 Q4 2017 1 Chamberlain Square PWC 60,000 £33.00 New Build Prime Grade A (remaining be considerably stronger due to deals that are currently ‘in legals’ HS2 commencing construction at Curzon Street and Birmingham 400,000 building from pre-let) playing host to the 2022 Commonwealth Games. These two completing and further demand being satisfied as we move towards 300,000 Q4 2017 The Colmore Building Hogan Lovell 15,000 £31.60 Grade A - refurbished external factors will help drive and provide a continued resilience in the end of the year. Birmingham, reinforcing confidence in potential occupiers to make 200,000 Q4 2017 55 Colmore Row RICS 30,000 £33.50 Prime Grade A back to frame refurbished Grade A take up continued to dominate the market in 2018, again (paid £35psf for Gnd Floor element) the move to the city. 100,000 accounting for over 50% of the take up. The table opposite illustrates Q3 2017 1 Colmore Square Hays 15,000 £31.50 Grade A - refurbished this, showing- the breakdown in take up over the last 5 years. We fully 2010 2011 2012 2013 2014 2015 2016 2017 2018 Q3 2017 55 Colmore Row Savills 16,000 £33.00 Prime Grade A back to frame refurbished expect this trend to continue into 2019 and beyond with the market continuing to be characterised by a shortage of newly built supply.

AVERAGE RENTAL GROWTH FORECASTS P.A (BIRMINGHAM OFFICES)

2019 2020 2021 2022 2023 Birmingham 1.8% 1.9% 2.1% 2.5% 2.7%

42 43 N O.1 COLMORE SQUARE BIRMINGHAM

INVESTMENT MARKET TRANSPARENT REAL ESTATE MARKET

BIRMINGHAM’S CORE OFFICE MARKET HAS TRANSFORMED FROM ONE OF MAINLY UK INSTITUTIONS TO A TRULY GLOBAL MARKET, WITH INVESTORS DRAWN FROM CONTINENTS ACROSS THE WORLD. THE UK HAS CONSISTENTLY BEEN RANKED THE MOST TRANSPARENT REAL ESTATE INVESTORS ARE ATTRACTED TO THE EXCELLENT OCCUPATIONAL MARKET DYNAMIC, THE RENTAL MARKET GLOBALLY, AS STATED BY THE GLOBAL REAL ESTATE TRANSPARENCY INDEX. GROWTH STORY AND THE TREMENDOUS SUCCESS THAT THE BIRMINGHAM AND MIDLANDS ECONOMY CONTINUES TO ENJOY. WITH IMMINENT PROJECTS OF HS2 AND THE COMMONWEALTH GAMES, BIRMINGHAM WILL CONTINUE TO ATTRACT MAJOR INVESTORS AND OCCUPIERS ALIKE. The UK is home to some of the oldest and most established real estate professional organisations, including the Royal Institution of Chartered Surveyors (RICS), which was established in 1868 and sets standards The past 24 months has seen an improved level of stock come to sentiment for regional office assets combined with excellent rental and regulations for the real estate industry globally. Furthermore, the the market, with demand remaining exceedingly high. As a result, growth forecast. UK has some of the largest and most detailed real estate databanks, investment volumes have risen, with several prime offices being traded including the MSCI which has recorded commercial real estate during this period. Since the beginning of 2017, office investment The improving economic backdrop and the associated improvement investment since 1980. sales have amounted to just over £900m. Buyers have come from a in the occupier market have prompted a marked increase in investor’s range of sources including UK institutions, Private Equity, and overseas appetite for risk. With prime long-income stock in short supply, investors, with a number of newcomers to the market. Furthermore, investors are increasingly turning to value-add opportunities, such there has recently been more demand for trophy assets from the Far as well-located shorter let properties which offer good re-letting East and Middle Eastern investors. prospects.

Knight Frank currently report prime office yields in Birmingham at There have been a number of high profile transactions across the UK 4.75%, and anticipate this level to be maintained for the foreseeable cities, set out below: future. This figure reflects the substantial demand and positive investor

ADDRESS OCCUPIER PURCHASER / VENDOR PRICE NIY CAP VAL PSF

55 Colmore Row Multi-let European Cities Fund c/o TH RE / £98m 4.9% £608 IM Properties 2 Colmore Square Multi-let Railways Pension Trustees / £95m 6.4% £320 Nurton Developments 5 St Phillips Place Multi-let Royal London Asset Management / £45m 4.7% £555 Savills IM The Cube Multi-let Talisker Corporation / £51m 6.3% £236 Tristan Capital Partners 3 Arena Central HMRC L&G / Miller Developments £125m 3.7% £521 Aurora, Bristol Multi-let Royal London / Palmer Capital £62m 4.75% £650 One Cathedral Square, Bristol Multi-let BMO / Castleforge Partners £33.5m 5.00% £598 3 Hardman Square, Manchester Multi-let Royal London / M&G £107.25m 4.90% £566

44 45 N O.1 COLMORE SQUARE BIRMINGHAM

ADDITIONAL INFORMATION INVESTMENT PROPOSAL

DEBT ADVISORY EPC WE ARE INSTRUCTED TO SEEK OFFERS IN EXCESS OF £100,000,000 SUBJECT TO CONTRACT The Knight Frank sales team have held preliminary discussions with AND EXCLUSIVE OF VAT FOR OUR CLIENTS LONG LEASEHOLD INTEREST. 3 Refurbished Floors EPC potential lenders and would be delighted to discuss potential finance options with interested parties. A PURCHASE AT THIS LEVEL REFLECTS A NET INITIAL YIELD OF 5.38%, ASSUMING PURCHASER’S COST OF 6.79%. THIS REFLECTS A CAPITAL VALUE OF £493.43 PER SQ FT AND SERVICE CHARGE AN ATTRACTIVE REVERSIONARY YIELD OF 5.75%. The service charge year runs from 25 March and the budget for the current year is running at £6.08 psf. The proposed budget for next year is £6.84 psf on the refurbished accommodation. More information is available on request.

VAT We understand that the property has been elected for the purposes of VAT. Whole Building EPC

CAPITAL ALLOWANCES Residual capital allowances can be made available by way of separate negotiation. Further information can be made available upon request.

DATA ROOM Please contact the sales team for access to the online data room containing key documentation.

Knight Frank 1 Colmore Row, Birmingham West Midlands, B3 2BJ

ASHLEY HUDSON JONATHAN DEVANEY SIMON RICKARDS HENRY WYLD T +44 (0) 121 233 6443 T +44 (0) 121 233 6490 T +44 (0) 20 7861 1158 T +44 (0) 20 7861 1520 M +44 (0) 7771 976 848 M +44 (0) 7717 346 610 M + (0) 7787 844 384 M +44 (0) 7768 844 478 [email protected] [email protected] [email protected] [email protected]

Important Notice 1. Particulars: These particulars are not an offer or contract, nor part of one. You should not rely on statements by Knight Frank LLP in the particulars or by word of mouth or in writing (“information”) as being factually accurate about the property, its condition or its value. Neither Knight Frank LLP nor any joint agent has any authority to make any representations about the property, and accordingly any information given is entirely without responsibility on the part of the agents, seller(s) or lessor(s). 2. Photos etc: The photographs show only certain parts of the property as they appeared at the time they were taken. Areas, measurements and distances given are approximate only. 3. Regulations etc: Any reference to alterations to, or use of, any part of the property does not mean that any necessary planning, building regulations or other consent has been obtained. None of the services or appliances have been tested and no warranty is given or is to be implied that they are in working order. A buyer or lessee must find out by inspection or in other ways that these matters have been properly dealt with and that all information is correct. 4. VAT: The VAT position relating to the property may change without notice. Knight Frank LLP is a limited liability partnership registered in England with registered number OC305934. Our registered office is 55 Baker Street, London, W1U 8AN, where you may look at a list of members’ names. Date of particulars: February 2019.

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