MULTI-LET OFFICE INVESTMENT

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1 MULTI-LET OFFICE INVESTMENT STRATFORD UPON AVON Units 1-8 Elm Court, Arden Street, Stratford upon Avon, Warwickshire CV37 6PA

INVESTMENT SUMMARY Modern courtyard office property, located in the heart of the attractive Warwickshire town of Stratford upon Avon The property provides a total of 1,961.

2 INVESTMENT SUMMARY Modern courtyard office property, located in the heart of the attractive Warwickshire town of Stratford upon Avon The property provides a total of 1, sq m (21,109 sq ft) of office accommodation (Net Internal Area) and 49 parking spaces Multi-let to five tenants, on six leases, with an income-weighted average unexpired lease term of 6 years 11 months to expiries and rental income of 203, per annum exclusive The vendor proposes to guarantee the rent, Business Rates and service charge on the vacant unit for a maximum of 18 months, giving an income of 258, per annum exclusive Significant asset management potential, including alternate uses (subject to any necessary consents) We are instructed to invite offers in excess of 2,555,000 (two million, five hundred and fifty five thousand pounds), subject to contract and exclusive of VAT, for the freehold interest in the property. A purchase at this level would reflect a net initial yield of 9.5%, having deducted purchaser s costs of 6.39%, or 121 per sq ft Capital Value.

S T Y S T Shrewsbury M6 M1 Leicester A1175 LOCATION Stratford upon Avon is a historic market town located in the heart of the country, approximately 19 miles south of Coventry, 32 miles south east of

Famous globally as the birthplace of William Shakespeare, who remains a major draw (even 400 years after his death), tourism is important to the town s economy, with almost 5 million visitors to the

In addition to tourism-related businesses, office-based employment is significantly higher than the national average; of note, NFU Mutual is headquartered in the town.

The M40 motorway (between London and Birmingham) runs to the north/east of the town, with access to Junction 15 via the A46, a south west-north east arterial route that also provides access to

Stratford upon Avon has a railway station, which is served by London Midland trains to Birmingham, with an approximate journey time of 50 minutes to Birmingham Moor Street, and by Chiltern Railways

3 S T Y S T Shrewsbury M6 M1 Leicester A1175 LOCATION Stratford upon Avon is a historic market town located in the heart of the country, approximately 19 miles south of Coventry, 32 miles south east of Birmingham, 31 miles north east of Cheltenham, 41 miles north west of Oxford and 98 miles north west of London. Famous globally as the birthplace of William Shakespeare, who remains a major draw (even 400 years after his death), tourism is important to the town s economy, with almost 5 million visitors to the district each year (compared with a resident urban population of approximately 26,400 people). The town also attracts workers, with net in-commuting of 12,500 people a day. In addition to tourism-related businesses, office-based employment is significantly higher than the national average; of note, NFU Mutual is headquartered in the town. Strategically located in the centre of the country, Stratford upon Avon has excellent communications. The M40 motorway (between London and Birmingham) runs to the north/east of the town, with access to Junction 15 via the A46, a south west-north east arterial route that also provides access to Coventry and Cheltenham. Stratford upon Avon has a railway station, which is served by London Midland trains to Birmingham, with an approximate journey time of 50 minutes to Birmingham Moor Street, and by Chiltern Railways trains to London Marylebone via Warwick/Leamington Spa, with an approximate journey time of 125 minutes. Birmingham International Airport, which handled 11.6 million passengers flying to 143 destinations in 2016, is located approximately 27 miles to the north of the town, with access via the A46, M40 and M42. SITUATION Elm Court is situated within the town centre, fronting the A4390 Arden Street, approximately 100m south of its junction with the A3400 Birmingham Road. It lies on the western side of the main retail area, with Windsor Street multi-storey car park immediately to the rear (east). Immediately to the west, Stratford Hospital, a community hospital within the South Warwickshire NHS Foundation Trust, is on the opposite side of Arden Street. Stratford upon Avon railway station, which is beyond the hospital, is a 7-minute walk. The former cattle market, located between the railway station and hospital, is currently being redeveloped as Arden Quarter, a 40 million 189-unit residential-led scheme. Immediately to the north of Elm Court, plans are being worked up for a mixed-use development, Stratford Gateway, on a 1.15-hectare (2.85-acre) site bounded by Arden Street, Birmingham Street and Windsor Street. Hereford A40 Newport RISONS A456 A49 M50 M5 BIRMINGHAM M5 A422 S T R AT F O R D - U P O N - AV O N C A N A L W E S T E R N R D B R U N E L ARDEN QUARTER DEVELOPMENT WAY A L C E S T E R R D A L B A N Y R D W H A R F R D W E S T E R N R D A A46 Cheltenham Swindon A45 Coventry Stratford-Upon-Avon A423 A46 A429 M40 A424 A44 A A A R D E N S T B I R M I N G H A M R D G R E E N H I L L S T R O T H E R S T C H E S T N U T WA L K C L O P T O N R D B R E W E R Y S T STRATFORD-UPON-AVON C L O P T O N R D E LY S T S C H O L A R S L N M4 A46 A R T H U R R D K E N D A L L AV E S H A K E S P E A R E S T C H U R C H S T Oxford A34 C H A P E L S T A426 S M U L B E R R Y S T M AY F I E L D H I G H S T T Y L E R S T A47 Milton Keynes Reading W O O D S T B R I D G E S T C H A P E L L N S H E E P S T Peterborough Kettering Northampton M A I D E N H E A D R D WA R W I C K C T P AY T O N S T A421 M25 LONDON SAT NAV - CV37 6PA R I V E R

4 28 1 DESCRIPTION Elm Court is a courtyard office scheme, of which Units 1-8 form the first phase constructed in 1990/1991 on the site of a former engineering works. The subject property comprises two predominantly 3-storey terraces, each originally containing four units, with Units 5-8 fronting Arden Street and Units 1-4 at the rear, on the other side of a central car park. The buildings, which are believed to be of steel frame construction, have masonry elevations, sash-style windows with a mixture of single- and double-glazing and tile-clad pitched roofs. The office units are generally split vertically, each with its own entrance and services, but Units 2-4 Kings House were reconfigured in 2012 to split horizontally from a single entrance/core, providing larger floorplates. The general specification of the office accommodation includes: solid floors; perimeter power/data trunking; central heating with perimeter radiators; retro-fitted air conditioning units in a number of units; suspended ceilings with mineral fibre tiles; and inset lights. Kings House has a lift. There is a landscaped block-paved car park between the two terraces, which also extends below Units 5-7 because Arden Street is at a higher level. The primary entrance to the car park, and rear terrace, is from/to Arden Street, with an archway and ramp under Unit 8; there is an external lift between the undercroft car park and ground floor level of Unit 8. The access road continues past Unit 1, and between 10 Elm Court and 11 Elm Court (both in separate ownership), to a second entrance on Birmingham Road. The different buildings have separate energy performance ratings, generally of C ; the individual ratings and scores are set out in the accommodation schedule below, while the Energy Performance Certificates (EPCs) and Recommendations Reports are available on request. ACCOMMODATION The property provides the following accommodation calculated in accordance with the Royal Institution of Chartered Surveyors professional statement, RICS Property Measurement (1st Edition): TENURE The property is held freehold, with separate titles for the main property and roadway. The owners and occupiers of 10 Elm Court and 11 Elm Court have a right to use the access road, shown shaded blue on the site plan, contributing to the costs. TENANCIES The property is 79% let to five tenants on six leases, as set out in the tenancy schedule overleaf. The rental income is 203, per annum exclusive, with all tenants paying quarterly in advance on the modern quarter days (1st January, 1st April, 1st July and 1st October). Units 1-8 Elm Court, Arden Street, Stratford upon Avon The vendor proposes to provide a guarantee to cover the rent (at 54,200 per annum exclusive), Business Rates and service charge for Unit 1 for a maximum of 18 months, resulting in an income of 258, per annum exclusive. Promap. Ordnance Survey Crown Copyright All rights reserved. Licence number Not to scale For identification purposes only 7 to 9 1 to 6 BREWER 1a Heartla Church UNIT FLOOR EPC RATING (SCORE) IPMS3 OFFICE NET INTERNAL AREA SQ M SQ FT SQ M SQ FT 5 6 Conrad House 1 to Whole C (65) , ,336 Arden Court El Sub Sta 28 Kings House (2-4) Ground , ,080 Elizabeth Place Kings House (2-4) First C (61) , ,133 1 to 3 Car Park Kings House (2-4) Second , ,148 5 Whole C (68) , ,137 6 Whole C (75) , , to Whole C (67) , ,001 reet Car Park 10 8 Whole* E (110) , ,743 Total 2, ,575 1, ,109 *Note: The floor areas for Unit 8 include 7.50 sq m (81 sq ft) on the Second Floor that is under 1.5m in height. There are 49 parking spaces, with 19 undercroft spaces below Units 5-7 (including two disabled spaces) and 30 external spaces. ORD N- N to Elm Court Multistorey Car Park 11 1 to to 16 1 Wheelwright Court St C The property occupies a regularly shaped site of approximately hectares (0.538 acres) net of the access road beyond Unit 1. ARDEN STREET Foundry Court 1 to 4 6 PCs Car Park.3m

5 TENANCY SCHEDULE DEMISE TENANT NET INTERNAL AREA PARKING SPACES LEASE START EXPIRY (BREAK) RENT PAX* NEXT RENT REVIEW COMMENTS 1 Vacant (4,336) 10 54, Refurbished. 2. The vendor proposes to guarantee the rent, Business Rates and service charge for up to 18 months. Kings House Gd Flr Svenska Handelsbanken AB (publ) (2,080) 5 8/5/2014 7/5/2024 (8/5/2019) 25, /5/ Effective Full Repairing & Insuring terms, although tenant does not contribute to cost of lift in Kings House. 2. Tenant s option to break on 8/5/2019 with not less than 6 months notice. Kings House 1st & 2nd Flrs Zinc Group Limited (4,281) 10 27/1/ /1/2026 (26/1/2021) 53, /1/ Effective Full Repairing & Insuring terms. 2. Tenant s option to break on 26/1/2016 with not less than 6 months notice. 5 Lodders Solicitors LLP (2,137) 5 26/10/ /12/2025 (24/12/2020) 25, /10/ Full Repairing & Insuring terms. 2. Tenant s option to break on 24/12/2020 with not less than 6 months notice. The tenant has additional annual options to break if its premises at 10 Elm Court are subject to compulsory purchase. 6 Lodders Solicitors LLP (4,530) 9 25/12/ /12/2025 (24/12/2020) 53, /12/ Full Repairing & Insuring terms. 2. Tenant s option to break on 24/12/2020 with not less than 6 months notice. The tenant has additional annual options to break if its premises at 10 Elm Court are subject to compulsory purchase. 3. Ground Floor is sublet to Self Financial Planners, a business in which the tenant has an interest, on an Excluded Lease. 4. The tenant has been in occupation since January Albert E Sharp LLP (2,001) 4 1/4/ /3/ , /4/ Internal Repairing & Insuring terms. 2. Tenant had option to break on 31/3/2017 that was not operated. 8 WA Hubbard, GM Howard & SJ Farnell (T/A Burgis & Bullock) (1,743) 4 10/6/2016 9/6/2021 (9/6/2019) 21, Full Repairing & Insuring terms, albeit tenant s repair obligation is qualified by schedule of condition. 2. Tenant s option to break on 9/6/2019 with not less than 6 months notice. Total 1, (21,109) , Note: All rents are payable quarterly in advance on the modern quarter days (1st January, 1st April, 1st July and 1st October).

TENANT COVENANT INFORMATION Svenska Handelsbanken AB (publ) 13% of rental income Handelsbanken is a full-service bank for both private and corporate customers.

20,475m SEK19,213m Total Equity SEK 136,381m SEK 126,268m SEK 126,627m 1 = SEK 10.

6 TENANT COVENANT INFORMATION Svenska Handelsbanken AB (publ) 13% of rental income Handelsbanken is a full-service bank for both private and corporate customers. Founded in 1871, it has more than 800 branches in its six home markets of Sweden, Denmark, Norway, Finland, Holland and the UK, while it has operations in more than 20 countries. In the UK, the bank has 207 branches and an asset management operation, undertaking approximately two-thirds of its business with corporate customers, and accounting for 11% of global turnover. Svenska Handelsbanken AB (publ) Year ending 31/12/ /21/ /12/2014 Total Income SEK 40,763m SEK 40,336m SEK 38,314m Profit/(Loss) SEK 20,633m SEK 20,475m SEK19,213m Total Equity SEK 136,381m SEK 126,268m SEK 126,627m 1 = SEK as at 1/9/2017 Zinc Group Limited 26% of rental income Zinc Group is a credit control, recoveries management and business process outsourcing company, working in the banking & finance, utilities, insurance and telecoms sectors. Founded in 2008, it is headquartered at the subject property and has another office in Glasgow. Zinc Group Limited [reg no ] Year ending 31/5/ /5/ /5/2014 Turnover Pre-tax Profit/(Loss) Shareholders Funds ( 517,915) 573, ,285

Lodders Solicitors LLP 39% of rental income Lodders is a regional law firm, headquartered in Stratford upon Avon (in the adjacent 10 Elm Court) and with offices in Henley in Arden, Birmingham and

Lodders Solicitors LLP [reg no OC306995] Year ending 30/6/2016 30/6/2015 30/6/2014 Turnover 8,784,855 7,515,140 - Pre-tax Profit/(Loss) 4,121,954 3,421,582 - Total Members Interests 2,759,338

and charities, as well as corporate clients.

7 Lodders Solicitors LLP 39% of rental income Lodders is a regional law firm, headquartered in Stratford upon Avon (in the adjacent 10 Elm Court) and with offices in Henley in Arden, Birmingham and Cheltenham. Founded 230 years ago, the firm has 25 partners and 110 staff. Lodders Solicitors LLP [reg no OC306995] Year ending 30/6/ /6/ /6/2014 Turnover 8,784,855 7,515,140 - Pre-tax Profit/(Loss) 4,121,954 3,421,582 - Total Members Interests 2,759,338 2,403,527 2,137,115 Albert E Sharp LLP 12% of rental income Albert E Sharp is a discretionary fund management and advisory stockbroking firm, which advises private investors, pension funds, trusts and charities, as well as corporate clients. The original firm was founded in 1911 and, after a period in corporate ownership, was re-established as a private firm in 2009, with some 20 staff based at the subject property. Albert E Sharp LLP [reg no OC339858] Year ending 31/12/ /12/ /12/2014 Turnover 2,828,461 2,446,057 1,785,787 Operating Profit/(Loss) 1,822,038 1,533,609 1,122,938 Total Members Interests 317, , ,730 Burgis & Bullock 10% of rental income Burgis & Bullock is a regional firm of chartered accountants and business advisors, headquartered in Leamington Spa and with offices in Stratford upon Avon, Nuneaton, Rugby, Leicester and London. Founded in 1888, the firm has some 70 staff.

SERVICE CHARGE There is a comprehensive service charge to cover the costs of running and maintaining the common parts of the property and Kings House, with a budget for the year ending 31st December

There is full recovery, including from 10 Elm Court and 11 Elm Court for the costs of the access road, with apportionments ranging from approximately 16 per sq m ( 1.

8 SERVICE CHARGE There is a comprehensive service charge to cover the costs of running and maintaining the common parts of the property and Kings House, with a budget for the year ending 31st December 2017 of 46, (2016: 44,142.60). There is full recovery, including from 10 Elm Court and 11 Elm Court for the costs of the access road, with apportionments ranging from approximately 16 per sq m ( 1.50 per sq ft) for the individual units to 37 per sq m ( 3.40 per sq ft) for Kings House. VALUE ADDED TAX The property is elected to tax for VAT but it is anticipated that the transaction will be treated as a Transfer of Going Concern (TOGC) if the required conditions are met. PROPOSAL We are instructed to invite offers in excess of 2,555,000 (two million, five hundred and fifty five thousand pounds), subject to contract and exclusive of VAT, for the freehold interest in the property. A purchase at this level would reflect a net initial yield of 9.5%, having deducted purchaser s costs of 6.39%, or 121 per sq ft Capital Value. FURTHER INFORMATION For more information, or to arrange a viewing, please contact: Cushman & Wakefield No 1 Colmore Square Birmingham B4 6AJ James Bladon +44 (0) james.bladon@cushwake.com Justin Quibell +44 (0) justin.quibell@cushwake.com +44 (0) David Smeeton +44 (0) david.smeeton@cushwake.com DISCLAIMER Important Notice Cushman & Wakefield gives notice to anyone who may read these particulars as follows: 1. These particulars are prepared for the guidance only of prospective purchasers. They are intended to give a fair overall description of the property but are not intended to constitute part of an offer or contract. 2. Any information contained herein (whether in the text, plans or photographs) is given in good faith but should not be relied upon as being a statement or representation of fact. 3. Nothing in these particulars shall be deemed to be a statement that the property is in good condition or otherwise nor that any services or facilities are in good working order. 4. The photographs appearing in this brochure show only certain parts and aspects of the property at the time when the photographs were taken. Certain aspects may have changed since the photographs were taken and it should not be assumed that the property remains precisely as displayed in the photographs. Furthermore no assumptions should be made in respect of parts of the property which are not shown in the photographs. 5. Any areas, measurements or distances referred to herein are approximate only. 6. Where there is reference in these particulars to the fact that alterations have been carried out or that a particular use is made of any part of the property this is not intended to be a statement that any necessary planning, building regu-lations or other consents have been obtained and these matters must be verified by any intending purchaser. 7. Descriptions of a property are inevitably subjective and the descriptions contained herein are used in good faith as an opinion and not by way of statement of fact. September 2017 Design by Martin Hopkins

442/446 HOLLOWAY ROAD, LONDON N7 6LX

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