EARLSDON PARK. Former Technical College: Department for Education Building: Development Site: COVENTRY

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1 Former Technical College: Mixed use refurbishment opportunity with a remier Inn let for 11.6 years term certain Department for ducation Building: 75,639 sq ft, BRAM xcellent, Grade A office with 9.3 years AWULT Development Site: VIW OORTUNITY 2 development sites with consent for residential and commercial uses ARLSDON ARK

2 xecutive Summary A rare opportunity to acquire a significant mixed use scheme providing secure income to undoubted covenants in addition to development and letting opportunities to drive significant returns. Coventry is one of the fastest developing regional economies. arlsdon ark is a mixed use development centred around the iconic neo-classical former technical college on Butts Road Coventry which includes a care village, offices, hotel, retail and associated amenities. arlsdon ark has already attracted occupiers including xtra Care, remier Inn and Department for ducation thanks to its accessible location, proximity to the city centre and public transport, since the first phase was completed in Offers are sought in excess of 25,000,000 (Twenty Five Million ounds). The scheme comprises an award winning office investment, a hotel, the refurbishment opportunity of an iconic building and two cleared development sites. The Investment Opportunity Comprises A 75,639 sq ft BRAM xcellent office building let to a single tenant with a vacant ground floor available for retail occupiers A landmark building let to remier Inn Hotels on the upper floors and 37,067 sq ft of vacant accommodation suitable for a variety of potential uses 2 development sites with consent for residential and commercial uses Offers may be submitted for the whole or for any of the three elements. NNCTIONS ARLSDON ARK DARTMNT TCHNICAL LLG DVLOMNT SIT

3 NNCTIONS Investment Rationale Former Technical College Secure income for a further 11.6 years to remier Inn Refurbishment / change of use opportunity on 37,067 sq ft Department for ducation Building One of the best office buildings in the Coventry and Warwickshire area BRAM xcellent building let to a single government occupier for an AWUT of 9.5 years Development Sites A rare opportunity to acquire a city centre residential development site with existing consent for 210 residential units, or include 50,000 sq ft of office accommodation ARLSDON ARK DARTMNT TCHNICAL LLG DVLOMNT SIT Current interest from a significant office occupier Opportunity to let 8,323 sq ft of retail/leisure space

4 Coventry Second largest city in the West Midlands opulation of 329,810 Home to Warwick University and Coventry University with over 50,000 students combined Largest employers include University of Warwick, Jaguar Land Rover, Barclays Bank lc, Royal Mail, Severn Trent and eugeot 10th highest city for housing stock growth 6th best city for private sector jobs growth 11th highest average wage in the UK Best performing Midlands city One of only four cities outside the south east where the population earn above the national average NNCTIONS ARLSDON ARK DARTMNT TCHNICAL LLG DVLOMNT SIT

5 Connections LDS MANCHSTR M1 76%of the UK population are within a 4.5 hour drive time Drive Times City Birmingham London Nottingham Leicester Rail Connections Distance 19 miles 98 miles 53 miles 26 miles CARDIFF LIVROOL Station Distance Train Time to London Train Time to Birmingham New Street Coventry 0.7 miles 1hr 3mins 21 mins Birmingham International 10 miles 1 hr 13 mins 10 mins M50 M54 M6 Birmingham BRISTOL M5 BIRMINGHAM AIRORT 80 miles 100 miles M6 20 miles 40 miles 60 miles M42 SOUTHAMTON M1 AST MIDLANDS AIRORT AIRORT Airports Airport M40 M3 Birmingham M4 ast Midlands Nottingham Leicester M1 LUTON AIRORT A1(M) M25 HATHROW AIRORT GATWICK AIRORT LONDON M11 Distance 11 miles 40 miles NNCTIONS ARLSDON ARK DARTMNT TCHNICAL LLG DVLOMNT SIT Leamington Spa 10 miles 1 hr 12 mins 31 mins Luton 67 miles

6 arlsdon ark Scheme arlsdon ark is one of Coventry s best known and largest mixed used developments over the last 10 years. The scheme is highly accessible on the edge of Coventry city centre, within a 5 minute walk of Coventry Railway station and offers significant prominence onto the B4101. arlsdon ark is dominated by the 1935, neoclassical former technology college, although it is also notable for blending this historic building with the ultra-modern BRAM excellent office next door, built for the Department for ducation in arlsdon ark is situated on Butts Road (B4101), close to its junction with the Coventry Ring Road (A4053) on the western side of the city centre. The scheme is approximately 12 minutes walk, 0.7 miles north west of Coventry Railway station. Income rofile Income The scheme currently generates an annual income of 1,633,554 per annum Site Area The investment opportunity extends to 4.40 acres Net Internal Floor Area 119,572 sq ft and 100 hotels rooms Void Area of 37,067 sq ft Development Opportunity 1.48 acres net Reversion The potential reversionary position allowing for reasonable build costs on the two existing buildings is 9.98% excluding the cost of the development land and an additional potential GDV of in excess of 25,000,000 for the development sites NNCTIONS ARLSDON ARK Site plan DARTMNT TCHNICAL LLG DVLOMNT SIT

7 arlsdon ark Scheme: Site plan The scheme totals 7.55 acres and comprises: 104,382 sq ft of office accommodation, 100 hotel rooms 262 extra care units with full amenities (not included with sale) 8,324 sq ft of retail accommodation 1.48 acres net of residential and/or commercial consented development land, consent for 210 apartments or 90 apartments and 50,000 sq ft of offices with 476 car parking spaces 620 seat theatre NNCTIONS ARLSDON ARK Site plan DARTMNT TCHNICAL LLG DVLOMNT SIT

8 Department for ducation Building Situation The Department for ducation building fronts Butts Road, adjacent the former technical college. The two buildings form the main frontage of the arlsdon ark development providing a blend of historic and modern architecture that the scheme is known for. Immediately north west of the Department for ducation building is Coventry rugby clubs stadium, whilst to the rear and accessed off Albany Road is the 262 xtra Care faciliy which incorporates residential units and a range of amenities including shops, restaurants, café s, bars and a gym. Between the Department for ducation building and the xtra Care development is a commercial and residential development opportunity. The specification of the building includes: Raised floors with a 320mm clear void Chilled beam comfort cooling Clear floor to ceiling height of 2.7m Suspended ceilings with integral uplighters Three 13 person passenger lifts Triple glazed external façade high performance window system Vertical and horizontal solar shading Green roof areas 476 car parking spaces Description The Department for ducation Building is a modern, Grade A, headquarters office building completed in 2009 with an impressive double height ground floor reception, large central atrium, ground floor retail/leisure opportunity and an incorporated multi-story car park. The high quality design of the building disguises the car park as part of the offices with external glazing and has allowed the building to achieve a BRAM xcellent rating in part due to features such as solar panels, ground source heat pump and a heat exchanger. NNCTIONS ARLSDON ARK DARTMNT TCHNICAL LLG DVLOMNT SIT

9 Department for ducation Building: Occupation The office accommodation is let to the Department for ducation for a maximum term of 20 years commencing 24 July 2009, by way of four separate leases under a single agreement. The leases are for an average term of 15 years from , however the lease allows for any of the leases to be terminated upon not less than 12 months notice, subject to satisfying a Minimum Floor Area Days Condition to ensure the landlord enjoys the same minimum income as they would have were the tenant to have occupied all four floors until 23rd July 2024, up to a maximum term of 20 years. The passing rent of the four occupational leases is 1,211,301 which reflects per sq ft. Occupational Schedule xample of the Break Mechanism There are numerous permutations of how this clause can operate however we have provided a simple example below, which demonstrates the basic purpose of the lease: Should the Department for ducation serve notice to exercise their option to break on a single floor (say 7th) effective as at April 2016, the earliest the tenant would then be able to break on any other single floor would be Demise Tenant Area Comments art Ground Floor Vacant 8,324 sq ft Currently vacant in shell condition art Ground Floor Department For ducation 2,322 sq ft art Ground Floor Car arking 16 Spaces 1st Floor Car arking 46 Spaces 2nd Floor Car arking 101 Spaces 3rd Floor Car arking 108 Spaces 4th Floor Car arking 108 Spaces 5th Floors Car arking 107 Spaces 6th Floor Department For ducation 17,997 sq ft 7th Floor Department For ducation 16,340 sq ft 8th Floor Department For ducation 16,340 sq ft 9th Floor Department For ducation 14,316 sq ft Total 75,639 sq ft 476 Spaces Car arking The Department for ducation have 130 demised car parking spaces and the right to call upon a further 266 spaces. remier Inn have exclusive rights to over 80 spaces. NNCTIONS ARLSDON ARK DARTMNT TCHNICAL LLG DVLOMNT SIT

10 The Department for ducation Building: The Department for ducation is responsible for education and children s services in ngland, and are a Government body providing a minimum risk of failure and a D&B failure score of 100 out of 100. lanning The entire scheme was consented under planning reference (approved 28th August 2007), which allowed for a range of uses across the site. We therefore understand that the building has consent for offices, under the B1 use classes. lanning consent, reference 53847/D was approved for the change of the ground floor unit of Department for ducation Building (commercial unit) to use class A1 retail, subject to development commencing with 3 years of the date of permission (i.e. by October 2012) and prior approval of shop front details. It is a condition of the approval that the site is used predominantly for the sale of convenience goods. A summary of all planning conditions can be found in the dataroom, access available on request. C NNCTIONS ARLSDON ARK DARTMNT TCHNICAL LLG DVLOMNT SIT

11 Former Technical College Situation The former technical college fronts Butts Road, adjacent the Department for ducation Building. The two buildings form the main frontage of the arlsdon ark Development, providing a blend of historic and modern architecture that the scheme is known for. The surrounding land uses include residential, offices, student accommodation, leisure and stadia in the form of Coventry Rugby Club s ground, demonstrating the truly mixed use nature of this area of the city centre. Description The former technical college is an imposing four storey neo-classical building, completed in The building is in a C shaped formation, with a theatre sitting in the centre of the C. The building is the most significant landmark in the area, which includes a 100 room remier Inn hotel on the 2nd and 3rd floors, a 620 seat theatre and two and a half floors currently in a shell condition. The building benefits from a full height reception which provides access to the main foyer, the ground floor dedicated reception for remier Inn and access to the Albany Theatre to the rear. The remier Inn provides 100 rooms aligned with the corporate specification. The part ground, first and second floors are currently in a shell condition and provide potential for high quality offices in a prestigious address, but also residential and student accommodation opportunities, subject to planning. There are ongoing discussions with occupiers for the vacant office accommodation. The Albany Theatre is an impressive, art deco style, 620 seat theatre with a part stain glassed vaulted ceiling, stage, production and preparation areas. The building was designed in 1919 and opened in The theatre was reopened as part of the arlsdon ark development in 2013, prior to which a large amount of refurbishment had been undertaken. The theatre is home to a range of local companies as well as hosting professional productions. NNCTIONS ARLSDON ARK DARTMNT TCHNICAL LLG DVLOMNT SIT

12 Former Technical College: Floor Area Demise Tenant Area Comments art Ground Floor remier Inn 4,851 sq ft Albany Theatre Occupation remier Inn has a lease commencing 19 December 2011 for a term of 25 years, expiring 19 December The rent is subject to review every 5 years with reviews linked to the Consumer rice Index, capped and collared at 1% and 4%. remier Inn are currently paying 393,500 pa ( 3,935 per room per annum). The lease is subject to a tenant break on 19 December 2026 subject to 12 months written notice. The National Association of School Business Management have a lease commencing 6th June 2014 expiring 5th June 2034 without break. The current rent passing is 28,753 pa ( per sq ft). The Albany Theatre has a lease available for signing and forms part of the consent, the lease is for a term of 25 years without break, at a peppercorn rent. 620 seats art Ground Floor NASBM 2,015 sq ft art Ground Floor Vacant 3,171 sq ft art Ground Floor Vacant 10,134 sq ft 1st Floor Vacant 23,762 sq ft 2nd Floor & 3rd Floor remier Inn 100 rooms Total 43,933 sq ft 620 seats 100 rooms NNCTIONS ARLSDON ARK DARTMNT TCHNICAL LLG DVLOMNT SIT

13 Former Technical College: Covenants remier Inn Hotels Ltd. are rated by Dun and Bradstreet as a 5A1 and represent a minimum risk of business failure. The company have reported the recent financial results: 28/02/2013 ( 000) 01/03/2012 ( 000) 03/03/2011 ( 000) Turnover 201, ,048 87,378 rofit 44,568 37,400 13,651 Tangible Net Worth 569, , ,108 Net Current Assets (Liabilities) 175, , ,534 NNCTIONS lanning Coventry technical college is locally listed as a building of special architectural or historic Interest The building is subject to planning consent, reference 53847/B, permitting demolition of part of and change of use of retained college building to provide for ground floor restaurants and drinking establishments (use classes A3 & A4), first floor offices and second floor hotel accommodation: roof top extension to provide for further hotel accommodation: rear extension to retained theatre and alterations to existing car parking and service areas. This was approved on March 2010 subject to conditions and a legal (s106) agreement. This application has been implemented in part (i.e. demolition and the hotel development). However we are not aware of whether the first floor office element has been implemented (the original approval provided for either office or residential at first floor). C ARLSDON ARK DARTMNT TCHNICAL LLG DVLOMNT SIT

14 Development Site Situation The development site is situated to the rear of the Former Technical College and accessed off Albany Road. The site is split into two separate areas, which separate the predominantly commercial uses in the buildings fronting Butts Road and the xtra Care Village at the rear of the arlsdon ark scheme. Albany Road is predominantly made up of residential land uses, which include traditional Victorian semi-detached houses and more modern, 1960/70s low rise apartment schemes. Description The development site extends to approximately 1.48 acres of cleared development sites capable of uses including offices, retail, residential and potentially student housing. Due to the current layout and the surrounding land uses, the sites would be capable of accommodating both apartments or lower density housing, although this would be subject to planning. Area The residential site (blocks C & D) extends to 0.85 acres. Commercial blocks & F extends to 0.62 acres. lanning The planning consents regarding the development sites apply to four proposed blocks. Blocks C & D which run parallel and front Albany Road are consented for 90 residential apartments under planning consent FUL/2013/0085. The second area of the development site which runs parallel with Butts Road, situated behind The Former Technical College, is noted in the planning application and schematic drawing as commercial building blocks & F. Under The aforementioned planning consent Blocks & F are consented for 50,000sq ft of offices or 120 apartments. NNCTIONS ARLSDON ARK DARTMNT TCHNICAL LLG DVLOMNT SIT

15 Further Information A data site has been prepared which includes a full legal pack of information including building surveys, measured surveys, and planning documentation is available upon request from the BN aribas Real state. ricing lement rice Yield Reversionary Capital Value osition Department for 16,000, % 9.75% 211 ducation Former Technical 7,750, % 10.1% TBC College Development Land 1,250, ,000 per acre Total 25,000,000 We are instructed to seek offers in excess of 25,000,000 (Twenty Five Million ounds) for the freehold interest in the subject property, subject to contract and exclusive of VAT. Yields are stated assuming standard purchasers costs of 5.8%. Offers will be accepted on the whole or any of the three elements individually or combinations thereof. Contacts Andrew Meikle andrew.meikle@bnpparibas.com earlsdonpark.co.uk Oliver Forster oliver.forster@bnpparibas.com Simon Robinson simon.robinson@bnpparibas.com NNCTIONS ARLSDON ARK DARTMNT TCHNICAL LLG DVLOMNT SIT We are instructed to seek offers in excess of 25,000,000 (Twenty Five Million ounds) for the freehold interest in the subject property, subject to contract and exclusive of VAT. Yields are stated assuming standard purchasers costs of 5.8%. Offers will be accepted on the whole or any of the three elements individually or combinations thereof.