STUNNING FREEHOLD OFFICE INVESTMENT NEW ISLINGTON, , M4 7BD AN ABSOLUTELY INVESTMENT

INVESTMENT SUMMARY

• Cutting edge design, modern Grade A office with ground floor retail

• Well located on Manchester’s inner ring road with excellent rail and Metro Communication Links.

• 25,185 sq. ft. (2,340 sq. m.) with attractive 5,261 sq. ft. (489 sq. m.) floor plates.

• 42 Onsite car parking spaces (1:600 sq. ft.)

• Let to Kacoo Fashion Limited for 6 years from 15th February 2016 on FRI terms.

• Kacoo Fashion has a Dun Bradstreet rating of 2A2

• Rent of £402,100 per annum breaking back to a modest £16.31 per sq. ft. inclusive of cars.

• Highly reversionary. Grade A CPD offices now letting at £32.00 / £34.00 per sq. ft. and nearby refurbished buildings now targeting rents in excess of £20 per sq. ft.

• Freehold

• Major development activity within close proximity will continue to enhance the immediate location.

• Asking price £5,200,000 (Five Million Two Hundred Thousand Pounds) representing a Net Initial Yield of 7.25% assuming standard purchasers costs of 6.6%.

• A purchase at this level reflects a low capital value of £181 per sq. ft. assuming cars at £15,000 per space.

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MANCHESTER

Manchester is the centre of a thriving city region and is widely recognised as the second largest economy in the UK after London with a gross value added of £51bn. The city is the centre of economic activity in the North West with a variety of economic sectors represented including 80 of the FTSE100 companies. The Conurbation has a population of 2.6m and there are approximately 7m people living within an hour’s drive of the city centre.

Manchester is particularly renowned for design, media and digital sector businesses and is the second largest hub for creative industries in Europe. The city’s student population of approximately 110,000 is the largest in the UK outside London and provides a steady supply of highly qualified graduate employees to the local labour market.

The city has a rich cultural and sporting heritage and is the third most popular UK city for international visitors with a tourist economy estimated to be worth £6.6bn per annum.

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ACCOMMODATION TENANCY / TENURE OFFICE MARKET INVESTMENT MARKET RECENT TRANSACTIONS GALLERY FURTHER INFORMATION A56

A665

A664 042 A6 WAY TRINITY D BUTL R ER AN ABSOLUTELY E D S L R T D A M A H C H Victoria D B O U L P LOCATION R O O T HANOVER ST L L A E A6 R ND

65 S T 2 ST S 6 T SHUDEHILL W A S A D Shudehill Interchange N ST B R H E A S G N ST T T EI EY W S L G S E A RG JER OD W O T L N H E E S ST O I OV G M O T H R O W A I Y G A ISLINGT SS NEW O 5 T 6 LO N 6 B A T 5 S LOCATION / SITUATION R ION O UN P TIB ST W R G E C N C O HURCH R A T E RR C ST S A T R S U MARK T T Fabrica is located in the New Islington area of Manchester E H V A ET ST E E N R L C S T S 2 O T A66 and fronts Great which forms part of Manchester’s S A Market Street T S OLD MILL E S S ST S inner ring road. New Islington is a major regeneration area T FF T O T RI A S TA R BR G New Islington ID S S KIN C KI N adjacent to the Northern Quarter of GE G ST NG ST O S N T Mosley Street T A W A T E Picadilly GardensE S which over recent years has been successfully attracting a N 6 PR E N 6 D D INC W 5 R E Y A O ST S T R L S S K L diverse mix of commercial and residential schemes. A RY S H S Y O T T ST P E T IG O A IE T EV H U 6 UC N D S E M S MOSLEY ST R I T The property is immediately adjacent to an Ibis Hotel which 103 N O S T 5 H S

A U L L T ST was constructed at the same time as Fabrica with Ground S A C A56 34 H N P OR O E St. Peter’s Square T TER ST T S L S T R ON E Floor facilities including a Costa coffee shop. M D ST L S S A T I P AN V O A R X T TL T F R S Fabrica has excellent road transport links and is within 4 A L O T 3 O R PO 4 ME N L D E T minutes walk of the New Islington Metro Station and within S F H D AIR S FIE Y S LD ST E T A O L ST S T C B64 O S H N 05 K easy walking distance of Piccadilly Railway Station. M T R V R W R A6 Y E O I 35 O W L D A W T T L

S I LO E W H P W S T E N

C H A Manchester Central I

N

U C Oxford Road N A Aerial View M AY A36 5 W N A5103 IA N CU AN A6 ) M A57(M

O XFORD RD A34 PRINCESSRD A57 HYDE RD

A6

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ACCOMMODATION TENANCY / TENURE OFFICE MARKET INVESTMENT MARKET RECENT TRANSACTIONS GALLERY FURTHER INFORMATION CITY TOWER ST JAMES HOUSE ARNDALE CENTRE ST PETER’S SQUARE MANCHESTER ARENA NEO

PICCADILLY GARDENS

EXPRESS BUILDINGS

MALMAISON HOTEL 1 PICCADILLY

NORTHERN QUARTER

PICCADILLY PLACE ALDI PICCADILLY STATION PURE GYM

CENTRAL RETAIL PARK M&S OUTLET

NEW ISLINGTON IBIS HOTEL COSTA COFFEE

WALKING TIMES

IBIS Hotel...... 1 minute NEW ISLINGTON New Islington Metro...... 4 minutes Central Retail Park...... 5 minutes Pure Gym...... 6 minutes Northern Quarter...... 10 minutes Piccadilly Station...... 12 minutes Back to location ...... 15 minutes

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Fabrica is within 12 minutes walk of Piccadilly Railway Station which is SRATEGIC Manchester’s principal intercity railway station and the North West destination REQUIREMENTS for HS2. The station and its surrounding area will be subject to a major NEW ISLINGTON HOLT TOWN FRAMEWORK regeneration focus over the next 15 years as a result of the HS2 initiative. PICCADILLY NORTH The regeneration potential of this area has already been recognised with a significant increase in commercial and residential development. Steps are being taken to compulsory acquire properties in order to both accommodate CBD EAST VILLAGE the HS2 link and create a major new regeneration area to provide the following:-

• Connectivity associated with a best in class multimodal transport hub. PICCADILLY PLACE PICCADILLY CENTRAL • 4,500 new homes.

• 625,000 m² of commercial office space.

• 100,000 m² of retail space. NORTH CAMPUS • 1,000 new hotel rooms. MAYFIELD

• Numerous high quality public spaces. • A variety of cultural and community use buildings.

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AIR RAIL METROLINK ROAD is the North of ’s The city benefits from two mainline stations, Fabrica is within 4 minutes walk of New Islington Manchester has superb road connectivity intercontinental air link offering over 200 Manchester Victoria and Manchester Piccadilly Metrolink Station which allows passengers with approximately 25% of the UK’s entire international destinations carrying around 22.5m which is the fourth busiest railway station in to travel directly to most destinations on the motorway network running through the region. passengers per annum. the UK with over 23m passengers per annum. network. The recently opened second city Approximately 60% of the entire UK’s population Approximately 46 trains per day run to London crossing has assisted in increasing the capacity is within 2.5 hours drive with excellent with an approximate journey time of 2 hours. across the whole Metrolink system. connectivity to the wider motorway network via the M60 orbital motorway.

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DESCRIPTION

Fabrica is a building of cutting edge innovation and design constructed in 2013 featuring 4 upper floors of offices with Ground Floor Retail accommodation. This modern office building with a striking appearance and efficient floor plates was built to the highest standards compliant with BCO Grade A specification and gaining a BREEAM excellent accreditation.

BREEAM Excellent

BCO Grade A Specification

5,431 Sq ft floorplates

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SPECIFICATION

The building offers the following specification:- • 2.6m floor to ceiling height • 2 x 8 person passenger lifts

• Full raised access floors • A double glazed curtain wall façade with feature solar screen system • BREEAM rating of excellent

• Suspended metal tiled ceilings with integral LG7 compliant lighting • VRV air conditioning system

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ACCOMMODATIONWELCOME DESCRIPTIONTENANCY / TENURE LOCATIONOFFICE MARKET SPECIFICATIONINVESTMENT MARKET ACCOMMODATIONRECENT TRANSACTIONS GALLERYGALLERYFURTHER INFORMATIONCONTACTS Floor Sq Ft Sq M

AN ABSOLUTELY Fourth 5,261 489

SPACE Third 5,261 489

Second 5,261 489

First 5,261 489

Mezzanine / Studio 382 35

Reception 684 64

Ground Floor Retail 3,075 286

TOTAL 25,185 2,340

Office areas based on NIA. Retail based on GIA. IPMS-3 office measurements and further information available on request.

TYPICAL FLOOR PLAN

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TENANCY SITEPLAN The property is let on a single lease to Kacoo Fashion Limited (Company Number 06236314) T/A Glamorous for a term of 6 years from 15th February 2016 on full repairing and insuring terms.

The property is let at a headline rental of £402,100 per annum which breaks back to a highly reversionary rent of £16.31 psf, inclusive of cars. (Assuming reception and mezzanine to be at half rent.)

TENANTS COVENANT For the past 3 years Kacoo Fashion Limited reported the following figures:-

Year Ending 31.03.16 Year Ending 31.03.15 Year Ending 31.03.14 Turnover £22.89m £22.76m Not Available PreTax Profit £174,423 £2,902,730 Not Available Tangible Net Worth £4.316m £4.589m £2.478m

TENURE Freehold, of Fabrica office building (shaded blue).

The car park and common areas (edged in red) are owned by the vendor who will grant the purchaser the right to occupy 42 car parking spaces within this area, for a term of 125 years at a peppercorn rental.

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MARKET COMMENTARY

Office Market Greater Manchester is the largest office market outside London and Manchester City Centre has Further along Great Ancoats A and A Investments have recently announced their plans to a total office stock of approximately 22.25m sq ft. Vacancy rates in Manchester City Centre are refurbish the Express Building with a view to targeting rents of £21.00 psf plus. amongst the lowest of any of the big 6 regional cities. Below is a rental schedule for various office properties which are situated outside Manchester’s Manchester City Centre offices have performed exceptionally well over the last 10 years and chave traditional Central Business District. higher levels of take up than all other UK regional cities. This trend continued in 2016 with City Date Occupier Building Size Rent Centre take up of 1,306,599 sq ft Jan 2014 Arup 4 Piccadilly Place 16,000 sq ft £26.00 The success of Manchester City Centre offices has attracted a significant level of development Feb 2015 British Transport Police The Peninsula 11,748 sq ft £20.00 activity in recent years. At the present, the City Centre has approximately 1.39m sq ft of Grade A Feb 2015 PBS The Peninsula 11,777 sq ft £21.50 space either under construction or which has recently been completed. These schemes attracted Mar 2015 Ticketmaster Sevendale House 22,765 sq ft £16.50 a considerable amount of tenant interest and approximately 911,500 sq ft of this accommodation June 2015 Code Computer Love Sevendale House 14,106 sq ft £16.00 has already been let. The remaining 478,500 sq ft of availability represents barely one year’s Aug 2015 NuGen 3 Piccadilly Place 12,718 sq ft £26.00 anticipated Grade A take up. As a result of high levels of demand rents for Grade A office Aug 2015 Urban Bubble Sevendale House 5,800 sq ft £16.50 accommodation in central Manchester are now in the range £32/£34 psf. As the supply/demand equation for Grade A accommodation is well balanced for the foreseeable future, it is anticipated Nov 2015 Join the Dots The Hive 9,993 sq ft £17.50 that prime rents will move to £35/£36 psf within the next 12/24 months. Feb 2016 Barbican Insurance The Hive 8,225 sq ft £16.50 Jul 2016 Directors Online The Peninsula 11,748 sq ft £18.50 The success of the prime city centre market has had a knock on effect on the edge of town market Sep 2016 My Clever Agency 11 Ducie Street 5,446 sq ft £18.50 with notable successes in areas where newly built or high quality refurbished space has been Jan 2017 Feed The Hive 4,235 sq ft £19.50 made available such as Salford Quays where take up in 2015 and 2016 was over 800,000 sq ft and Feb 2017 Flatshare Dale House 7,700 sq ft £18.00 where rents have moved from circa £15 psf to £20 psf with notable transactions including Bupa (142,000 sq ft), AJ Bell (90,000 sq ft) and Talk Talk (105,000 sq ft).

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ACCOMMODATION TENANCY / TENURE OFFICE MARKET INVESTMENT MARKET RECENT TRANSACTIONS GALLERY FURTHER INFORMATION 1.4 AN ABSOLUTELY MARKET 1.2 MANCHESTER MARKET COMMENTARY 1.0 Investment Market Manchester is ranked 46 globally for direct commercial and real estate investment and is the only city, alongside London, to feature within the top 0.8 EDINBURGH 50 demonstrating the city’s credentials as a highly liquid market. Investment BIRMINGHAM in the Central Business District runs at approximately £1bn per annum. 0.6 BRISTOL GLASGOW Million Sq Ft LEEDS 0.4

0.2

0.0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

MANCHESTER CITY TAKE-UP. INCLUDING 10 YEAR AVERAGE.

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Recent City Centre investment transactions include the following:-

Net Sq. Ft. Net Ini- Sq. Ft. Property Price (psf) Initial Date Property Price (psf) Date tial Yield Yield

£10.5m* (£140) £16m Express Buildings N/A 75,600 February 2017 76 King Street 6.2% 42,663 November 2015 * Unrefurbished (£375) with vacant posession

£29.15m 83,688 £16.1m 50,000 201 3.6% February 2017 35 Fountain Street 5.5% June 2015 (£348) sq ft (£322)

£12.05m 33,216 The Hive, Northern £17m 80 Mosley Street 5.23% January 2017 6.75% 80,000 April 2015 (£364) (3,086) Quarter (£213)

£116m Dale House, £7.6m 3&4 Piccadilly Place 5.75% 321,290 April 2016 6.4% 42,000 March 2015 (£361) Northern Quarter (£181)

£6,940,000 December Clarence House 5.5% 17,514 (£396) 2015

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ACCOMMODATIONWELCOME DESCRIPTIONTENANCY / TENURE LOCATIONOFFICE MARKET SPECIFICATIONINVESTMENT MARKET ACCOMMODATIONRECENT TRANSACTIONS GALLERYGALLERYFURTHER INFORMATIONCONTACTS HOME INVESTMENT SUMMARY MANCHESTER LOCATION / SITUATION AERIAL NEARBY DEVELOPMENT TRANSPORT DESCRIPTION SPECIFICATION

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VAT INVESTMENT CONSIDERATIONS PROPOSAL

The property is elected for VAT. We envisage that the transaction will be • Cutting edge modern design We are instructed to seek offers in excess treated as a transfer of a going concern (TOGC). of £5,200,000 (Five Million Two Hundred • Highly reversionary rent of £16.31 (overall) per sq. ft. inclusive of car parking and taking Thousand Pounds) subject to contract and mezzanine and reception at half rent – Grade A offices within the central business district exclusive of VAT. EPC are now letting at £32.00/£34.00 per sq. ft. The nearby Express Building is currently being refurbished and the landlord will be targeting rents in excess of £20 per sq. ft. Assuming standard purchaser’s costs of 6.6% Fabrica has an EPC rating of B(44) Full copies of the EPC Certificate can be the purchase at this level reflects a net initial • Rapidly improving location with significant development activity provided upon request. yield of 7.25% and a low capital value of • Low capital value - £181 per sq. ft. assuming a capital value of £15,000 per space for car £181 psf. parking DATA ROOM • Opportunity to re-gear lease or take part surrender and re-let at higher rental Further information is available on request within our secure data room.

FURTHER INFORMATION For further information or to arrange an inspection please contact:

Mark Williams Oliver Rowe Dan Crossley DD: 0161 819 8220 DD: 0161 819 8212 DD: 0161 819 8221 E: [email protected] E: [email protected] E: [email protected]

PROPERTY MISDESCRIPTIONS ACT 1991 The joint agents for themselves and for the Vendors or Lessors of this property whose Agents they are, give notice that: 1.These particulars do not constitute any part of an offer or contract. 2. The information contained within these Particulars has been checked and unless otherwise stated is believed to be materially correct at the date of publication. After publication circumstances may change beyond our control, but prospective purchasers or Tenants will be informed of any significant changes as soon as possible. 3. All descriptions, statements, dimensions, references to condition and permissions for use and occupation or other details are given in good faith and are believed to be correct, but are made without responsibility and should not be relied upon as representations of fact. Intending Purchasers or Tenants should satisfy themselves as to their correctness before entering into a legal contract. 4. All plant, machinery, equipment, services and fixtures and fittings referred to in these particulars were present at the date of publication. However, they have not been tested and therefore we give absolutely no warranty as to their condition or operation. 5. Unless otherwise stated all prices, rents and other charges are quoted exclusive of VAT. Any intending Purchaser or Tenant must satisfy themselves independently as to the incidence of VAT in respect of any transaction. 6. The Vendors or Lessors do not make or give nor does the Agent nor any person in their employment, have any authority to make or give any representation or warranty whatsoever in relation to this property. September 2017. Designed and produced by Richard Barber & Company 0161 833 0555. www.richardbarber.co.uk

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