Bearford House, Hanover Street, Edinburgh EH2 2PJ FOR SALE HIGH QUALITY OFFICE INVESTMENT OFFERS OVER 1,600,000

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1 FOR SALE HIGH QUALITY OFFICE INVESTMENT OFFERS OVER 1,600,000

2 Investment Summary Total passing rent of 115,649 per annum Fully let offices located in prime city centre location Attractive offering of open plan and cellular accommodation Potential future conversion to residential/ serviced apartments subject to planning OFFERS OVER 1,600,000 (ONE Million Six Hundred Thousand Pounds) are invited, which reflects an attractive NIY of 6.83% allowing for purchasers costs of 5.8% FOR SALE HIGH QUALITY OFFICE INVESTMENT

3 Location Edinburgh is Scotland s Capital City and benefits from excellent communications. Edinburgh International Airport, one of the UK s fastest growing airports is situated 8 miles to the west of the City centre. It handles over 7.5 million passengers, 30 airlines and flies to over 80 destinations. Edinburgh s two main line railway stations offer excellent rail links to other Scottish destinations and London can be reached by rail in approximately 4 hours. By road Edinburgh is approximately 45 miles east from Glasgow (M8), 35 miles south east from Stirling (M9), 40 miles south from Perth (A9) and 110 miles north of Newcastle (A1). Situation Hanover Street is located in the heart of Edinburgh city centre. It is one of the main streets which connects George Street and Princes Street, the city s main retailing pitches. Bearford House is located on the east side of Hanover Street at its junction with Rose Street, a short walk from both George Street and Princes Street. Accommodation & Tenancy Tenant Description Lease Start Lease Expiry Break Option Rent Floor Area (sq ft) Comment Wings Corporate Travel Ltd Front, 1st floor 16/09/ /09/ /09/ ,950 1,117 If tenant exercises the break option the tenant is required to pay a 2,825 penalty. If the break is not exercised then tenant receives 4 months rent free. Space and Time Media Ltd Rear, 1st floor 10/04/ /04/ /04/ ,500 1,317 If tenant does not exercise break then they benefit from reduced rent in the 3 rd year of the term of 20,417. Schedule condition in place. Service charge cap of 7,944 subject to RPI increases. Ramboll UK Ltd Front, 2nd floor 23/07/ /07/ /07/ ,955 1,231 If break option not exercised then tenant benefits from 3 month rent free. Service charge cap of 7,182 subject to RPI annual increases. Atelier Ten (Scotland) Ltd Rear, 2nd floor U/O U/O 5th Anniversary 23,814 1,316 A closing date was set on the suite and is now the legal process is underway. There is a photographic schedule of condition agreed with the tenant. The agreed Heads of Terms include a rent free period of 2 months. There is a guarantor in place (Atelier Ten Ltd). Lawware Ltd Front, 3rd floor 18/07/ /07/ /07/ ,090 1,261 Landlord holds 3 month rent deposit. Service charge cap of 6,030 subject to RPI annual increases. In terms of a back letter, the tenant is entitled to: an initial 2 month rent free period; a rent concession in years 2 & 3-15,075 per annum; a rent concession in years 4 & 5 of 16,583 per annum if the tenant does not exercise their break option. share possession with Lawcloud Ltd. Guy & Co Communications Ltd Rear, 3rd floor 06/08/ /08/ /08/ , There is a schedule of condition in place and a 3 month rent deposit is held by the landlord. Service charge cap of 5,664 subject to RPI annual increases. In terms of a back letter, the tenant is entitled to 5 months rent free, structured as: 115,469 7,181 half-rent payable for first 6 months (equivalent to 3 months rent free from the date of entry); and reduced rent of 12,980 per annum in years 2 & 3 (reflecting additional 1 month rent-free per year).

4 Description The subject property comprises the first, second and third floor suites of 39 Hanover Street providing cellular offices to the front of the building with open plan offices to the rear. The office suites and communal areas benefit from lift access, male and female WCs at all levels, kitchen and tea prep facilities and gas central heating. The building was recently extensively refurbished. Tenure The property is held on a heritable title (Scottish equivalent of English freehold). Energy Performance Certificate We have been advised that the property has an E+ Rating. Covenant Company D&B Rating Sales Turnover Profit(Loss) Before Taxes Tangible Net Worth Net Current Assets Wings Corporate Travel 1A2 2,578, ,225 1,130,963 1,642,003 Space and Time Media Ltd A3 43,832,189 1,119, , ,389 Ramboll UK Ltd 3A1 63,707,000 1,299 13,718 9,937 Atelier Ten (Scotland) C2 144, ,761 Lawware Ltd A1 594, ,653 Guy & Co Ltd O3 Proposal We are instructed to seek offers in excess of 1,600,000 (One Million Six Hundred Thousand POUNDS STERLING) exclusive of VAT for our client s heritable interest subject to and with the benefit of the existing leases. A purchase at this level would show an attractive net initial yield of 6.83% and a capital rate of 223/sqft allowing for purchasers costs of 5.8%. FOR SALE HIGH QUALITY OFFICE INVESTMENT

5 OFFICES

6 VAT Our clients have elected to waive exemption for VAT and accordingly VAT will be payable on the purchase price, although we anticipate the sale will be treated as a TOGC. Legal Costs Each party will be responsible for their own legal costs incurred in connection with the transaction. Viewing & Further Information Please contact the sole selling agent: Stewart Sheridan/Cathal Keane Allan King Sheridan Property Consultants 37 ONE, 37 George Street Edinburgh EH2 2HN Tel Stewart Cathal Allan stewart@sheridanproperty.co.uk . cathal@sheridanproperty.co.uk . allan@sheridanproperty.co.uk Sheridan Property Consultants for themselves and for the vendors or lessors of this property whose agents they are give notice that: (i) the particulars are set out as a general outline only for the guidance of intending purchasers or lessees, and do not constitute, nor constitute part of, an offer or contract; (ii) all descriptions, reference to condition and necessary permission for use and occupation, and other details are given without responsibility and any intending purchasers or tenants should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the correctness of each of them and are advised to do so; (iii) no person in the employment of Sheridan Property Consultants has any authority to give representation or warranty whatever in relation to this property; (iv) all prices, rents and premiums quoted are exclusive of VAT at current rate. Date of Publication: January 2014