BBC TV STUDIO & LEEDS COLLEGE OF MUSIC BBC Broadcasting House, 2 St Peters Square, Leeds, LS9 8AH Long Income Investment 16.5 Year WAULT BBC TV STUDIO & LEEDS COLLEGE OF MUSIC BBC Broadcasting House, 2 St Peters Square, Leeds, LS9 8AH Investment Summary Location Situation Communications Investment Summary Property Overview • Modern 4 Storey Office, TV Studio, Radio Station & Music Auditorium Tenure • Prominent location on the eastern fringe Tenancy of the city centre. • Fully occupied by and leased to the Lease Summary BBC & Leeds College of Music Regeared Lease • WAULT – 16.5 years • NIA 36,945 sq ft Salient Lease Points • Passing rent of £474,641 per annum - £12.84psf The BBC BBC Yorkshire & Leeds College of Music Proposal Capital Allowances & VAT • Offers invited in excess of £8,500,000 reflecting Proposal a Net Initial Yield of 5.23% • Low capital value of £230 per sq ft. Contact Details 2. BBC TV STUDIO & LEEDS COLLEGE OF MUSIC BBC Broadcasting House, 2 St Peters Square, Leeds, LS9 8AH Investment Summary Location Situation Location Leeds - a key city in Yorkshire and the largest legal The property itself is situated in Quarry Hill and fronting central squares, Centenary Square and St Peters Square Situation and financial centre in the UK after London. on to St Peters Place (A61) and St Peters Square, a and the area is now known as the ‘Arts quarter’ as it is prominent location on the eastern fringe of Leeds City home to West Yorkshire Playhouse, BBC Yorkshire, Leeds Centre. Quarry Hill has been the focus of substantial College of Music campus and ‘The Wardrobe’. Communications regeneration which began back in the early 1990’s. The development of the area has taken place around two Property Overview Tenure Woodhouse Lane St Mary’s Street A58(M) Tenancy A61 Regent Street Kirkstall Road Lease Summary A64(M) Merrion Street A64(M) The Property Beckett Street Burley Road Eastgate Mabgate Regeared Lease Burley Street Marsh Lane The Headrow Eastgate Salient Lease Points A64(M) A61 Wellington Street The BBC LEEDS Marsh Lane Canal Street Kirkgate BBC Yorkshire & LeedsStation Railway Dyer Street Duke St Leeds College of Music The Calls Capital Allowances A61 BBC St Cecilia St & VAT Marsh Lane Water Lane St Peters Square Proposal Contact Details York St A643 York St Kirkgate Marsh LaneSaxton Lane A61 3. A61 3 3 Kirkgate A621 A621 Marsh Lane BBC TV STUDIO & LEEDS COLLEGE OF MUSIC BBC Broadcasting House, 2 St Peters Square, Leeds, LS9 8AH Investment Summary 11. BBC Yorkshire & LCM 44. The Merrion Centre 77. Victoria Gate 107. Corn Exchange 22. Leeds Train Station 55. The Light 88. Quarry House - Department of Health Location 33. Trinity Shopping Centre 66. First Direct Arena 99. West Yorshire Playhouse Situation Communications Property Overview Tenure Tenancy Lease Summary 4 5 6 Regeared Lease Eastgate 3 Salient Lease Points 2 The BBC 10 7 BBC Yorkshire & Leeds College of Music Regent Street Capital Allowances Kirkgate 9 & VAT Duke Street Proposal 1 8 Contact Details Crown Point Road York Street A64(M) Marsh Lane 4. Black Bull Street BBC TV STUDIO & LEEDS COLLEGE OF MUSIC BBC Broadcasting House, 2 St Peters Square, Leeds, LS9 8AH Investment Summary Communications Location A1(M) Situation Leeds by Car NEWCASTLE UPON-TYNE Communications London 3 Hours 45 Mins Via M1 SUNDERLAND MIDDLESBROUGH Property Overview Edinburgh 3 Hours 55 Mins Via A1 Manchester 1 Hours 15 Mins Via M62 A1(M) Tenure M6 LEEDS BRADFORD Birmingham 2 Hours 05 Mins Via M1 AIRPORT LEEDS HULL Tenancy BLACKPOOL M62 M82 M1 M180 LIVERPOOL MANCHESTER Lease Summary Leeds by Rail M60 M58 MANCHESTER AIRPORT M53 M1 Regeared Lease London 2 Hours 15 Mins M8 NOTTINGHAM A1M EAST Edinburgh 3 Hour 00 Mins MIDLANDS NORWICH Salient Lease Points M54 AIRPORT Manchester 0 Hours 50 Mins M68 BIRMINGHAM M8 BIRMINGHAM INTERNATIONAL AIRPORT The BBC Birmingham 1 Hours 50 Mins M42 M40 M11 M5 M1 A1M COLCHESTER BBC Yorkshire & LUTON AIRPORT SOUTHEND Leeds College of Music -0N-SEA STANSTED SWANSEA M4 AIRPORT GLOUCESTER M40 M25 Capital Allowances M1A Leeds by Aeroplane CARDIFF LONDON & VAT M4 M4 M4 HEATHROW BRISTOL AIRPORT M25 M20 M2 Leeds Bradford Airport - less than 10 miles from the subject property M3 Proposal GATWICK and the 15th busiest airport in the UK. AIRPORT M5 M27 Contact Details SOUTHAMPTON Number of Airlines - 11 EXETER Number of Passengers - 3.6m (2016 – increase of 4.6% on 2015) PLYMOUTH 5. BBC TV STUDIO & LEEDS COLLEGE OF MUSIC BBC Broadcasting House, 2 St Peters Square, Leeds, LS9 8AH Investment Summary Property Overview Tenure Location A modern purpose built four storey property constructed to the highest standards Basis Long Leasehold Situation to represent the regional Broadcasting Centre and headquarters of BBC Yorkshire. Completed in July 2003, the building is a four-storey broadcasting centre including Rent Peppercorn offices, studios/production area and restaurant for the BBC. There is also a separate Term 125 years from 27 March 2003 (110 unexpired) Communications Auditorium with a seating capacity of 350 persons and roof top venue space for Freeholder Leeds City Council the Leeds College of Music on the third/fourth floors. Property Overview Blue denotes BBC & LCM demise. Demise Red denotes total LLH demise. The property sits on a 0.66 acre site and also has the benefit of 12 parking spaces. Tenure Tenancy Lease Summary Tenancy Regeared Lease The property is fully let on three leases as follows: Salient Lease Points Lease Unexpired Next Floor/Demise Tenant Size (sq ft) Expiry Term Review Review Basis Rent (£) 86.6% of OMV for offices off an assumed area of 19,674sq ft. Before The BBC British lease regear the passing rent was £356,328. It is against this rent that the review is calculated and then the £42,930 per annum deduction is Ground/1/2/3 Broadcasting 23,154 30/01/2032 14 Years 24/03/2018 313,398 BBC Yorkshire & subequently made. The rent review would therefore look as follows: Leeds College of Music Corporation 19,674sqft X ERV (£22.00psf) = £541,035 X 86.6% = £468,536 minus £42,930 = £348,936. Capital Allowances & VAT British 86.6% of OMV for retail off an assumed area of 5,866sq ft. Before Broadcasting lease regear the passing rent was £84,884. It is against this rent that Corporation the review is calculated and then the £10,070 per annum deduction is Proposal Restaurant 5,812 30/01/2032 14 Years 24/03/2018 73,814 (Trading as subequently made. The rent review would therefore look as follows: Aaghar Indian 5,866sqft X ERV (£17.50psf) = £102,655 X 86.6% = £88,899 minus £10,070 Contact Details Restaurant) = £78,829. Therefore nil increase. Leeds College Leeds College of Music of Music 7,979 18/10/2047 29.6 Years 18/10/2022 2% per annum compounded - reviewed 5 yearly. 87,429 36,945 474,641 6. BBC TV STUDIO & LEEDS COLLEGE OF MUSIC BBC Broadcasting House, 2 St Peters Square, Leeds, LS9 8AH Investment Summary BBC Lease Commentary Salient Lease Points Location The original lease has recently been regeared following an approach from the BBC 1954 Act Inside the Act Situation due to their continued commitment to the building. Rent Review Time not of the essence Original passing rent £440,212 per annum (£15.20psf) Assignment Communications Assignment of part not permitted. Assignment of the Lease Expiry 24/03/2028 whole permitted subject to Landlord Consent, not to be unreasonably withheld and subject to the Tenant entering Property Overview Lease Break 24/03/2021 into an Authorised Guarantee Agreement. Rent Review 24/03/2018 – Alienation Tenure (as summarized in the previous page table) The Landlord may also require, where reasonable, that the Assignee procure a guarantor. Tenancy Subletting Subletting of whole or part permitted subject to LL Regeared Lease - BBC consent and subject to compliance with certain conditions, Lease Summary not to be unreasonable withheld. Regeared Lease The lease break has been removed and a reversionary lease put in place. Salient Lease Points years term 14 certain Regeared Lease - Leeds College of Music The BBC (expiring 30/01/2032) LCM have entered into a new 30 year lease in exchange for the landlord building BBC Yorkshire & a new venue area on the roof. Leeds College of Music The incentive is an annual rent reduction of £53,000, which has been calculated as the BBC marriage value share divided by the 15 years and applied annually. Capital Allowances & VAT years term Day one rent receivable certain Proposal 29.5 per (expiring 15/09/2047) £ £387,212 annum Contact Details - 2% per annum compounded reviews At the rent reviews, the £53k deduction is made subsequently, but at all times the - 5 yearly rent is upwards only. 7. BBC TV STUDIO & LEEDS COLLEGE OF MUSIC BBC Broadcasting House, 2 St Peters Square, Leeds, LS9 8AH Investment Summary The BBC Location The British Broadcasting Corporation (BBC) is a British British Government, agreed by Parliament, and used to (2016: £335 million). Cash generated from operations has Situation public service broadcaster headquartered at Broadcasting fund the BBC’s radio, TV, and online services covering been offset by a £220 million pension deficit payment House in London. The BBC is the world’s oldest national the nations and regions of the UK. Since 1 April 2014, made in March 2017. The current strong financial position broadcasting organisation and the largest broadcaster in it has also funded the BBC World Service (launched in of the BBC, along with the successful delivery of recent Communications the world by number of employees. 1932 as the BBC Empire Service), which broadcasts in 28 saving plans, leaves the Corporation in a good position to languages and provides comprehensive TV, radio, and meet its future obligations (which include pension deficit Property Overview The BBC is established under a Royal Charter and online services in Arabic and Persian.