GVA James Barr. City centre mutli-let office investment Thistle Street Edinburgh EH2 1EN. gva.co.uk/7653

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1 GVA James Barr City centre mutli-let office investment -38 Thistle Street Edinburgh EH2 1EN gva.co.uk/7653

2 gva.co.uk/7653 Investment highlights Multi-let office building located in the heart of Edinburgh city centre Situated in close proximity to George Street, St Andrew Square and Waverley train station Attractive combination of open plan and cellular office suites 13,229 sq ft (1,2.97 sq m) with 5 on-site car parking spaces Low passing rent of 241,341 p.a. exclusive Strong tenant mix and diverse income profile offering asset management opportunities ERV 253,190 p.a. exclusive Potential for redevelopment/change of use to residential or other alternative uses Offers over 3.00 million exclusive Net initial yield of 7.60% Attractive capital rate of per sq ft (exclusive of car parking)

3 gva.co.uk/7653 Location Edinburgh is Scotland s capital city with a population of approximately 468,000 persons and a catchment of over 1,200,000. The city is Scotland s political, administrative and legal centre. It is also Europe s fourth largest financial centre in terms of funds under management. Edinburgh is home to four universities, a number of colleges and further education centres and several research institutions. It has a varied economic base and as a financial centre it is second only to London in the UK. The Royal Bank of Scotland and Lloyds Banking Group, both have head offices within the city as do Standard Life, Scottish Widows and Aegon. Other significant employers in the city include, The Scottish Executive, Scottish Parliament, BAE Systems, Blackrock, Diageo, Skyscanner, BNY Mellon and The City of Edinburgh Council. Edinburgh benefits from excellent transport links, being well served by the Scottish motorway network with the M8 providing access to Glasgow, the M9 to Stirling and the North and the A1 trunk road to Newcastle and the South. Edinburgh International Airport lies 8 miles to the west of the city centre and provides over forty flights daily to London airports, together with direct flights to other UK cities, most major European centres and trans-atlantic to New York and Toronto. The city is a popular tourist destination and each year hosts the Edinburgh Fringe Festival; one of the largest arts festivals in the world. Thistle Street is situated in the heart of Edinburgh city centre within a minute s walk of George Street and Princes Street. This central location provides easy access to Edinburgh s premier retail locations with a wide variety of high quality shops, bars and restaurants nearby. The area is within easy walking distance of St Andrew Square Bus Station and Waverley Rail Station and is well serviced by both on-street and multi-storey car parking facilities. The subjects are located on the south side of Thistle Street, between its junctions with Hanover Street, Frederick Street.

4 gva.co.uk/7653 Description -38 Thistle Street is an attractive, 4/5 storey traditional stone office building arranged over ground to fourth floors, with additional office suites provided at mezzanine level between each floor. It was created by the redevelopment of two neighbouring buildings and the property is arranged either side of a generous central core. This provides stair and lift access to the upper floors of the building. The property was comprehensively refurbished in 2010 and provides modern, open plan office accommodation and smaller cellular offices, thus catering for a range of occupiers. The eastern ground floor unit is self-contained and currently utilised as an estate agents office. 5 clear car parking spaces are located in a rear basement accessed off Thistle Street Lane South West. The configuration of the building is well suited for multiple occupancy. The property provides a high quality specification which includes: Attractive shared entrance reception with secure video linked door entry system. 6 person passenger lift Refurbished office accommodation with suites ranging from 529 2,454 sq ft Refurbished WC provision throughout the building Suspended ceiling incorporating LG7 VDU lighting. Gas central heating (new boilers installed 2010) Integrated fire detection and intruder alarm system Comfort cooling in part. 5 on-site garaged car parking spaces. Whilst the property is currently well suited to its existing use as an office, the potential exists to redevelop the building in the future for alternative uses such as residential, serviced apartments or hotel (subject to obtaining the necessary statutory consents).

5 gva.co.uk/7653 Planning The property falls within Use Class 4 () of the Town and Country Planning (Use Classes) (Scotland) Order The one exception to this relates to the ground floor self contained office which benefits from Use Class 2 consent (Financial, Professional or Other Services). Listing The property is Grade C listed and is located within a Conservation Area which forms part of Edinburgh city centre s World Heritage site. Due to its listed status, the property benefits from 100% vacant rates relief under current legislation. Tenancies The property is offered with the benefit of 14 tenancies, which are generally on Full Repairing and insuring terms and 1 rental guarantee. The total income is 241,341 per annum exclusive. The Weighted Average Unexpired Lease Term is 3.71 years (to lease breaks) and 5.37 years (to lease expiries). The common areas of the building are managed and maintained through a common service charge. The service charge currently equates to 4.93 per sq ft. In addition to the service charge, the electricity usage is recovered from each tenant on a pro rate basis, based on floor area. This is done at a variable rate, based on prevailing energy costs. It currently equates to an additional 1.00 per sq ft approximately.

6 gva.co.uk/7653 Accommodation and tenancy schedule Unit Sector Area (sq ft) Tenant GF Ret/Off 1,176 Murray & Currie Ltd 1st Floor 1st Floor 2nd Floor 2nd Floor 3rd Floor 3rd Floor 4th Floor 653 Murray & Currie Ltd 530 Marshalls (Scotland) Ltd 649 Vacant (Vendor Guarantee) 530 Black Circles Holdings Limited 666 Allermuir Property Investment Co 529 Quattro Consult Limited 756 Ashford Property Group GF 38 1,223 Heritage Memorial Fund 1st Floor 38 2nd Floor 38 3rd Floor 38 Car Car Car 2,454 Heritage Memorial Fund Lease Start Rent Review Break Option Lease Expiry Term Certain Income Term to Lease Expiry Passing Rent per annum Passing Rent per sq ft ERV per annum ERV per sq ft Comments 16/10/ /10/ /10/ /10/ , , break option not actioned. 16/01/ /10/ , , Initial 6 month rent free period granted, followed by 12 months at 50% of agreed rent. 29/04/ /04/2016 /04/ , , months rent free if break is not exercised , , year rental guarantee from date of purchase. Quoting rent sq ft. 22/02/ /02/ /02/ /02/ , , Concessionary rent of 7,659 per annum until year 5. Vendor will top up to 9,010 per annum. 25/01/ /01/ /01/ /01/ , , Annual break clauses with three months notice. If the tenant does not break they get 1 month rent free each year. Fixed uplift at 5th Anniversary to 10,523. Service charge cap of 3,182 per annum, subject to annual RPI increases. 20/07/ /07/ , , Service charge cap of 2,687 per annum , , year lease from date of purchase, incorporating tenant break option at year 3. 01/04/ /04/ /03/ , , x car parking space let at 2,500 p.a. ( per sq ft net of parking) 01/04/ /04/ /03/ , , x car parking space let at 2,500 p.a. ( per sq ft net of parking) 2,452 PNE Wind /05/2012 /08/2017 /08/ /05/ , , months rental deposit held. 1,611 Breakthrough Breast Cancer Ashford Property Group Quattro Consult Limited Quattro Consult Limited 02/02/ /02/ /02/ , , year extension recently agreed with a tenant break option at year 3. (3 months rent free granted plus another 2 months rent free if tenant does not break - taken as half rent) ,000 2,000 5 year lease from date of purchase, incorporating tenant break option at year 3. 10/01/ /07/ ,000 2,000 Annual licence with 2 weeks notice to break from either party. 18/11/ /07/ ,000 2,000 Annual licence with 2 weeks notice to break from either party. Total 13, , ,190

7 gva.co.uk/7653 Tenure Heritable (Scottish equivalent of English freehold). VAT The property has been elected for VAT purposes and VAT is payable over and above the purchase price. We envisage that any sale will be conducted by way of a Transfer of a Going Concern (TOGC). EPC The property has an EPC rating of E+. A copy of the Energy Performance Certificate can be provided on request. ERV Recent letting transactions within the building suggest that there is scope to increase the income profile through active asset management. We estimate the current Estimated Rental Value to be in the order of 253,190 per annum exclusive. Capital Allowances To be retained by the vendor of the property. Proposal We are instructed to seek offers in excess of 3,000,000 exclusive. Assuming standard purchaser s costs of 5.80%, a sale at this level would provide a net initial yield of 7.60% and a reversionary yield of 7.98%. It would also equate to an attractive capital rate of per sq ft (exclusive of car parking) and per sq ft (inclusive of car parking). Viewing and further information Viewing is strictly by appointment only. For further information please contact: Graeme Davies graeme.davies@gvajb.co.uk Will Sandwell will.sandwell@gvajb.co.uk

8 London West End London City Belfast Birmingham Bristol Cardiff Dublin Edinburgh Glasgow Leeds Liverpool Manchester Newcastle Published by GVA 10 Stratton Street, London W1J 8JR 2014 Copyright GVA GVA is the trading name of GVA Grimley Limited and is a principal shareholder of GVA Worldwide, an independent partnership of property advisers operating globally gvaworldwide.com For further information or an appointment to view please contact Graeme Davies graeme.davies@gvajb.co.uk Will Sandwell will.sandwell@gvajb.co.uk Disclaimer Notice: The accuracy of any description, dimensions, references to condition, necessary permissions for the use and occupation and other details contained herein is not guaranteed and is for general guidance only. Prospective purchasers or tenants must not rely on them as statements of fact and must satisfy themselves as to their accuracy. Neither GVA James Barr nor any of their employees, nor their joint Agents has any authority to make or give representation or warranty or enter into any contract whatever in relation to the property. Rents or Prices quoted in these particulars may be subject to VAT in addition. The information provided is presumed to be correct at the time of print June gva.co.uk/