146 PRINCES STREET, 1 HOPE STREET, 11 HOPE STREET LANE & 3 HOPE STREET / EDINBURGH INVESTMENT SUMMARY • Edinburgh, the capital city of Scotland, is a major administrative, retail and tourist destination with a growing and affluent catchment population • Unique opportunity to acquire one of the city’s 6 key retail department stores • Prominently located, overlooking Edinburgh Castle, at the west end of Princes Street, the focal point for retailing in the city centre • Iconic building extending to 6,647 sq m (71,553 sq ft) over lower ground, ground, and five upper levels • Let in isolation on 2 leases to House of Fraser (Stores) Limited until 2058 (Just over 40 years unexpired) • Ability to subdivide / redevelop subject to vacant possession and planning • Substantial reversionary investment with main store valued to approximately 50% of rental value • Total current rent passing is £729,945 per annum equating to £10.20 per sq ft overall 02 • Outstanding rent review, which upon settlement is expected to increase to an estimated annual rent of £743,200 per annum • Offers in excess of £13,700,000 (Thirteen Million, Seven Hundred Thousand Pounds) exclusive of VAT. Assuming usual purchaser’s costs and LBTT, a purchase at this level would reflect an attractive net initial yield of 5.02%, increasing to 5.11% assuming settlement of the outstanding rent review at £743,200 per annum 146 PRINCES STREET, 1 HOPE STREET, HOUSE OF FRASER 11 HOPE STREET LANE & 3 HOPE STREET EDINBURGH LOCATION Edinburgh is Scotland’s Capital The city has a population of 487,500 City and its principal financial and people and a regional population of over administrative centre, housing both 1.6 million within the Fife and Scottish the Scottish Parliament and the Borders catchment area. It is the most Scottish Government. prosperous regional city in the UK and its workforce is one of the most highly Edinburgh is recognised as a globally educated. important business centre and is the UK’s second largest and Europe’s fourth Edinburgh is consistently ranked as one of largest financial centre, by equity assets the UK’s most competitive cities, based under management. It is the capital city on factors such as skills, productivity and of Scotland, located approximately 400 qualifications. As a city, it has the second miles north of London and 45 miles highest gross value added per resident east of Glasgow. Edinburgh is one of of any of the 133 regions of the UK, at the six cities categorised by Property £38,000 per resident compared to the Market Analysis as a major city and, average of £20,699. Edinburgh has been consequently, benefits from a significant voted the UK’s best city for the second catchment population. year running by The Telegraph. While traditionally recognised as a city of history and heritage, Edinburgh is now at the forefront of a rapidly expanding TMT sector, having recently been voted the UK’s second most most tech-savvy 03 city, and home to established TMT businesses, such as Rockstar North, FanDuel, Cirrus Logic, and Skyscanner. There are eight universities and further education colleges in Edinburgh, with almost 80,000 students in the city. The University of Edinburgh was ranked 24th in the World University Rankings by The Times in 2015/16. In the past five years, more than 80 spin- out companies have come from The University of Edinburgh, 95% of which are still active. 146 PRINCES STREET, 1 HOPE STREET, HOUSE OF FRASER 11 HOPE STREET LANE & 3 HOPE STREET EDINBURGH Rail Tr a m The city centre is served by Edinburgh Waverley The City’s new tram system began operating and Haymarket rail stations, with House of in May 2014, directly connecting Edinburgh Fraser equidistant between the two. Edinburgh Airport with the city centre. The tram route Waverley is Scotland’s second busiest rail station directly passes the entrance to the store, with with in excess of 21 million entries/exits in the the West End (0.2 miles) and Princes Street year to December 2015. (0.3 miles) stops both in the immediate vicinity. CONNECTIVITY In its second full year of operation 5.38 million Both Edinburgh Waverley and Haymarket rail passenger journeys were recorded on Edinburgh stations have benefited from recent multi- trams, representing an increase of over 9% on million pound refurbishments and upgrading the previous year. Edinburgh is the most visited Road programmes to keep pace with increased tourist and commercial Edinburgh benefits from access to the passenger demand. Edinburgh Waverley provides Air destination in the UK after national motorway network. The City is served direct train services to and from London via the Edinburgh Airport is located only 8 miles from London, with an exceptional by the M8 and M9 from the West (Glasgow East Coast main line and also provides easy the city centre and is Scotland’s busiest airport transport and communications and Livingston), the M90/A9 from the North access to and from other key English towns and and the UK’s sixth largest. Passenger numbers network connecting it both (Aberdeen and Inverness) and the A1/A7 cities, as well as providing services to all major in 2015 increased by 9.4% to 11.13 million internationally and with other from the South/South East (East Lothian, the Scottish cities. representing an average of 30,495 passengers cities throughout the UK. Borders and Newcastle). per day. Key: Tram Stop Train Station Bus Station YORK YORK PLACE PLACE QUEEN STREET BUS STATION FREDERICK STREET HANOVER STREET House CASTLE STREET of FraserHOUSE OF CHARLOTTE GEORGE STREET ST ANDREW ST ANDREW FRASER SQUARE SQUARE SQUARE QUEENSFERRY STREET CALTON LEITH STREET HILL PRINCES STREET TRAMLINE WEST END PRINCES STREET PRINCES STREET PRINCES STREET THE MOUND GARDENS SHANDWICK PLACE TO GLASGOW, WAVERLEY 04 < NORTH, SOUTH AND WEST TO EAST COAS T AND SOUTH > STATION < TO EDINBURGH AIRPORT HAYMARKET ROAD LOTHIAN TORPHICHEN ST NORTH BRIDGE KING’S STABLES ROAD EDINBURGH < TO EDINBURGH AIRPORT CASTLE MORRISON ST HAYMARKET ROYAL MILE STATION EXCHANGE DISTRICT 146 PRINCES STREET, 1 HOPE STREET, HOUSE OF FRASER 11 HOPE STREET LANE & 3 HOPE STREET EDINBURGH HIGH & MIGHTY JESSOPS OFFICE SOLICITOR THOMPSONS TRAILFINDERS H SAMUEL GARS CARD FACTORY CURRYS PC WORLD & ROSE & CROWN CARPHONE WAREHOUSE 05 PUBLIC STARBUCKS ENT JAPANESE HOUSE HAKATAYA RESTAURANT DOUGH PREMIER INN ENT PIZZA ZARA’S TURKISH CUISINE DENTAL SURGERY DANCE WEAR MIRO CANTINA URBAN DANIEL HENDERSON EXCHANGE JEWELLER OUTFITTERS BRITISH TELECOM BRITISH WILDFIRE REST & ENT GRILL ROSE STREET SOUTH LANE MOUNTAIN VACANT WAREHOUSE DIRTY DICK’S ROBERT PUBLIC GRAHAM HOUSE ROSE STREET MAIL BOXES THE PLAYERS LOUNGE WATERSTONES WOLFITS CAFÉ and jewellers. Again, there is almost 1780 BAR & 100% occupancy on George Street and RESTAURANT Multrees Walk, with occupiers including SCOTTS Anthropology, LK Bennett, Hobbs, PRINCES STREET PRINCES OF ROSE Armani, Louis Vuitton and Mulberry. STREET PUBLIC Located at the east end of Princes Street, HOUSE TH Real Estate are currently undertaking an £850m redevelopment of the St James Centre, which upon completion in 2020 will comprise a new, state of the art shopping centre. Anchored by the existing John Lewis department store, it will comprise more than 850,000 sq ft of retail, dining, and leisure space along with a hotel and residential accommodation. It is expected to extend Edinburgh’s shopper catchment by 20% and boost the City’s retail sector to 8th in the UK from PLACE OF HALIFAX the current position of 13th. The leisure WORSHIP offer will incorporate a 214 bedroom W Hotel, 6 screen Everyman Cinema and over 20 restaurants. CARPHONE WARHOUSE EDINBURGH HOUSE OF FRASER OFFICE & VACANT BANK VACANT & GIN 71 & CUP TEA CUP OFFICE LOUNGE CAFÉ ENT OFFICE ENT NATIONWIDE ENT SOUTH CHARLOTTE STREET The city centre has a very compact prime retail core, comprising Princes Street, George Street, Multrees Walk and two shopping centres, although the St James Centre has recently been closed in order to allow demolition and the creation of a ENT new scheme, Edinburgh St James. ENT Retailing in the city centre is focussed on VACANT Princes Street, which is home to a wide variety of major occupiers. There are five other department stores in the city centre, including Jenners, Marks & Spencer and Debenhams on Princes Street, Harvey SHANDWICK’S PUBLIC HOUSE Nichols in St Andrew Square, and John Lewis which forms part of the St James Centre. SANTANDER Supporting the retail offer on Princes Street, George Street to its north and Multrees Walk to the east of St Andrew Square, are now considered to be the preferred destination for upmarket boutique retailers, high end fashion retailers, licensed leisure operators MCDONALD’S THE EDINBURGH WOOLLEN MILL PRIDE OF SCOTS GIFTS HOPE STREET LANE CHARLOTTE SQUARE SQUARE CHARLOTTE House of Fraser ANGELS SHARE HOTEL & BAR ORVIS SPORTS GOODS ENT HOPE STREET BAR STREET RUTLAND KYLOE HEADS & TAILS & HEADS BAR & REST & BAR RUTLAND HOTEL RUTLAND PUBLIC HOUSE GHILLIE-DHU RYAN’S PUBLIC HOUSE AND USQUABAE BAR & REST PLACE RUTLAND OFFICE ENT SUBWAY ENT OFFICE GREGGS BAR MATHERS OFFICE QUATTRO ZERO QUATTRO ITALIAN REST ITALIAN UND ALT BETTING SCOTBET FOUNDRY 39 BAR & REST BARBURRITO VACANT SHUROPODY ODDBINS QUEENSFERRYBAKER STREET MAXIME ENT OPTICAL EXPRESS HOME 146 PRINCES STREET, 1 HOPE STREET, PATISSIMER ENT BAR & REST & BAR 11 HOPE STREET LANE & 3 HOPE STREET ENT VACANT ENT ENT QUICKSILVER VACANT BANK OF SCOTLAND ENT Edinburgh is one of the strongest retailing centres in the UK and being the RETAILING IN Capital City, dominates its catchment, generating an estimated £2.56bn of in-store comparison retail expenditure. This is further enhanced by tourist EDINBURGH expenditure which is estimated at over £1bn annually, equating to an average spend of £334 per visitor.