COMPTON Modern Grade A Office Investment HOUSE 2300 THE CRESCENT I BIRMINGHAM BUSINESS PARK I B37 7YE COMPTON HOUSE 2300 THE CRESCENT I BIRMINGHAM BUSINESS PARK I B37 7YE Investment Summary • Modern headquarters office building • Secure investment opportunity in an established business park location • Situated at Birmingham Business Park, the West Midland’s premier out of town office location • Well located with excellent nearby amenities and 1 mile from J.7 of the M42 • A modern headquarters office building over three floors finished to a very high Grade A standard • Providing a net internal area of 32,674 sq ft (3,035.5 sq m) • Exceptional onsite parking allocation of 155 spaces at a ratio of 1 per 210 sq ft • Let it its entirety to Uniper UK Ltd, guaranteed by Uniper SE, a major global energy company with over 12,000 employees worldwide • Let by a way of a lease from 12th April 2016 for a term of 10 years and 8 months until 11th December 2026 (thus providing 8.19 years unexpired) on full repairing and insuring terms • The passing rent is £645,180 per annum (reflecting £19.75 per square foot) • Freehold We are instructed to seek offers in excess of £8,960,000 (eight million nine hundred and sixty thousand pounds) subject to contract and excluding VAT. A purchase at this level reflects a net initial yield of 6.75% (after allowing for purchaser’s costs of 6.68%) and a capital value of £274 per sq.ft. COMPTON HOUSE 2300 THE CRESCENT I BIRMINGHAM BUSINESS PARK I B37 7YE WALSALL TAMWORTH COLESHILL A1(M) Location MANCHESTER M42 M60 LIVERPOOL SHEFFIELD M56 M6 Compton House is a high quality, Grade A446 CHESTER M1 A office building located on Birmingham 4 7A Business Park, Birmingham’s most established MARSTON A452 GREEN MAXSTOKE NOTTINGHAM M6 out of town office destination. The building 4 CHESTER RD 3A provides easy access to Birmingham Airport LICHFIELD Birmingham TELFORD STONEBRIDGE RD M54 LEICESTER and International Railway Station and Business Park 7 M6 M42 PETERBOROUGH M69 overlooks Solihull Parkway. COVENTRY Birmingham COLESHILL HEATH RD M6 Business Park BIRMINGHAM A1(M) Birmingham Business Park lies 12 miles SOLIHULL PKWY east of Birmingham city centre and close M5 M1 M42 to Birmingham International Airport. It is 1 HEREFORD miles south west of J.7 of M42 and J.4 of the BICKENHILL PKWY NEC CHESTER RD M50 M40 MILTON KEYNES M6. There is a regular bus service which runs A452 GLOUCESTER A1(M) BIRMINGHAM directly to the Business Park every 12 minutes, PENDIGO WAY BIRMINGHAM AIRPORT OXFORD while frequent train services operate to M25 A45 M4 Birmingham New Street in under 15 minutes COVENTRY RD 6 A45 LONDON CARDIFF M4 and London Euston is only 70 minutes away. BICKENHILL COVENTRY BRISTOL SOLIHULL M3 COMPTON HOUSE 2300 THE CRESCENT I BIRMINGHAM BUSINESS PARK I B37 7YE M6 Situation 7A A452 Birmingham Business Park currently has a total built stock 4 of 1.884m sq.ft across 148 acres. The Park is already home to over 100 companies, including large multi-national corporations such as Rolls Royce, Fujitsu, Beiersdorf, Pendragon Group, Computacenter and Atos. It is located 7 adjacent to the M6 J4, with nearby amenities such as: The Crescent • Birmingham Airport, with flights to 110 European and Solihull Pkwy M42 international destinations • Birmingham International Railway Station, which Birmingham provides regular direct services to London and the north Business Park ARDEN • Resorts World Birmingham complex, offering restaurants, CROSS a hotel, cinema, conference facilities and designer outlets HS2 BIRMINGHAM NATIONAL • National Exhibition Centre (NEC), major host of AIRPORT EXHIBITION international conventions, exhibitions and concerts. CENTRE BIRMINGHAM HS2 INTERNATIONAL HS2 Phase I, between London and Birmingham, received Royal Assent in February 2017. The first stop will be at Arden Cross at J.6 of the M42 and a short distance from THE PIAZZA Compton House. Upon completion the journey time from @NEC Compton House to Central London will be less than RESORTS 45 minutes. Arden Cross will also provide a new vibrant WORLD GENTING mixed use development include commercial, residential, ARENA leisure and retail. 6 Arden Cross Development Birmingham Airport Resorts World National Exhibition Centre COMPTON HOUSE 2300 THE CRESCENT I BIRMINGHAM BUSINESS PARK I B37 7YE Description Compton House, measuring 32,674 sq.ft over 3 floors, is modern headquarters office building with a full Grade A specification including: • Four pipe fan coil air conditioning • 150mm fully accessible raised floors • LG7 light diffusers • A 10 person lift • Male & female WC’s on every floor • Shower room and kitchen on every floor • Car Parking ratio of 1:210 sq ft (155 in total) The building was subject to a significant refurbishment in 2015 which included the replacement of the M&E system with the addition of four pipe fan coil air conditioning. Accommodation The building has been measured in accordance with the RICS Code of Measuring Practice 6th Edition and provides the following Net Internal Areas: GF/Reception: 10,942 sq.ft 1,106.6 sq.m 1st Floor: 10,866 sq.ft 1,009.5 sq.m 2nd Floor: 10,866 sq.ft 1,009.5 sq.m TOTAL NIA: 32,674 sq.ft 3,035.5 sq.m EPC The property has an EPC rating of D98. COMPTON HOUSE 2300 THE CRESCENT I BIRMINGHAM BUSINESS PARK I B37 7YE COMPTON HOUSE 2300 THE CRESCENT I BIRMINGHAM BUSINESS PARK I B37 7YE Tenure The Guarantor Freehold. The lease is guaranteed by Uniper SE, Uniper SE, the guarantor, has a Key information: an investor owned international energy Dun and Bradstreet Rating of 5A2. • 1.7bn Euros EBITDA company with operations in more than In the past 12 months their share price • 100 years of experience Tenancy Details 40 countries and over 12,000 employees. has increased from 14.65 Euros to 25.22 They are headquartered in Dusseldorf, Euros per share. Their most recent annual • Approx 36 GW generating capacity Compton House is fully let to Uniper UK Ltd on an FRI lease Germany and are listed on the Frankfurt sales showed 72.7bn Euros and their • 8.2bcm gas storage capacity from 12/4/2016 expiring 11/12/2026 (thus providing c.8.19 year’s Stock Exchange. Market Cap is 9.5bn Euros. • 400 TWh long term gas contracts term certain). The passing rent is £645,180 per annum (£19.75 per square foot). The lease is guaranteed by Uniper SE, an International Energy Company listed on the Frankfurt Stock Exchange. The Tenant Uniper UK Ltd is an international energy company focused on power generation, energy trading, transportation, and storage, as well as a provider of specialist power engineering services and training to the industry. The company was formed by the separation of E.ON’s fossil fuel assets into a separate company that began operating on 1 January 2016. They currently employ 633 people in the UK. Uniper UK Ltd have a Dun and Bradstreet Rating of 5A1. Their most recent Financial Summary is summarised below: Fiscal non Fiscal non Fiscal non consolidated consolidated consolidated GBP (31/12/2017) GBP (31/12/2016) GBP (31/12/2015) Turnover £743,000,000 £834,000,000 £215,000,000 Profit / (Loss) (£112,000,000) (£650,000,000) (£6,000,000) Before Taxes Total Assets £618,000,000 £722,000,000 £1,259,000,000 Shareholder £423,000,000 £524,000,000 £1,081,000,000 Funds COMPTON HOUSE 2300 THE CRESCENT I BIRMINGHAM BUSINESS PARK I B37 7YE M42 Office Market Birmingham Business Park is part of the M42 market, an area between Junction 3 and 6, and also includes Blythe Valley Park, The Fore, Shirley, Solihull Town Centre, Trinity Park and the Airport. It is Birmingham’s key out of town market with a total built stock size of circa 5.9m sq.ft. The immediate location has experienced 13%+ rental growth in the last The Fore, Shirley 12 months and it remains one of the more attractive midlands submarkets. It will continue to attract tenants due to its wide sector base and accessible location. Lack of funding for speculative development has caused a supply shortage, which will continue over the next five years as the pipeline struggles to keep pace with demand. This is particularly true for the immediate vicinity where there is a real lack of development and refurbishment opportunities. Take-up in 2017 was below the 6 year average (269,498 sq.ft vs 335k sq.ft) due to a lack of stock. What was evident was space that had been refurbished and invested in experienced the highest Blythe Valley Park level of activity. Notable transactions in 2017 included Gymshark taking 42,400 sq.ft at Trigen House (Blythe Valley Park), BCA Logistics taking Trinity Park 20,700 sq.ft at 1320 Solihull Parkway (Birmingham Business Park) and PKF Cooper Parry taking 17,800 sq.ft at 1 Central Boulevard (Blythe Valley Park). 2018 2018 has been another strong year in terms of take-up for the M42 market. This is despite record low levels of availability. Take-up for the first three quarters stands at over 250,000 sq.ft and prime rents have moved forward on to £25 per sq.ft. Key deals to highlight include: Address Size (SqFt) Occupier Rent (PSF) 31 Homer Road, Solihull Town Centre Trinity Central, Birmingham Airport 25,200 Beiersdorf UK £21.50 Zenth, Cranmore Drive 23,749 Bizspace FH 31 Homer Road 12,796 Blue System Ltd £21.50 1 Central Boulevard, Blythe Valley 10,633 Wavenet £23.00 FIRST Blythe Valley 15,000 Jerroms £25.00 Plot F3 Blythe Valley Park 15,608 Prologis £23.25 2940 Trident Court 15,954 CSI £22.50 1 Central Boulevard, Blythe Valley 11,403 GKN Aerospace £23.00 COMPTON HOUSE 2300 THE CRESCENT I BIRMINGHAM BUSINESS PARK I B37 7YE Investment Comparables The market for out of town office investments has been very strong in recent years as outlined with the below schedule of recent activity: DAT E ADDRESS TENANT PRICE PRICE PSF YIELD PURCHASER COMMENTS May 18 2500 The Crescent, SSP Ltd £7.3m £268 6% Canal and River Trust 8 years term certain.