CENTRECITY HILL STREET BIRMINGHAM B5 4UA

Transcription

1 CENTRECITY HILL STREET B5 4UA LANDMARK MULTI-LET OFFICE INVESTMENT OPPORTUNITY For sale on behalf of the Joint LPA Receivers

2 1 INVESTMENT SUMMARY Landmark and highly prominent multi-let office building in Central Birmingham with significant asset management opportunities Located in the major regional centre of Birmingham, the UK s second city, with the largest financial and professional service sector outside London Strategic and improving position in close proximity to Birmingham New Street Station and the future John Lewis department store Freehold Let to 15 tenants comprising major corporate and government occupiers including Legal & General, The Secretary of State, OFWAT, Grant Thornton and QA Group Excellent income security - 58% of office income secured against Very Low Risk covenants, with a further 33% secured against Low Risk or Below Average Risk covenants Centre City comprises a 21 storey office building extending to 19, sq m (208,903 sq ft), arranged over a 6 storey podium, benefitting from an impressive central glazed atrium, with a 15 storey tower above Floorplate sizes range from sq m (7,500 sq ft) in the tower to sq m (19,538 sq ft) in the podium, all of which can be easily sub divided providing flexibility Refurbished and unrefurbished vacant accommodation extending to 2, sq m (23,791 sq ft) Significant asset management potential through letting of vacant floors, lease regears / renewals with existing occupiers, develop serviced office operation, and rolling refurbishment program to complete common parts and office accommodation upgrade Total Current Rental Income: 2,683, per annum 1.2 THE PROPOSAL We are instructed to seek offers in excess of 22,000,000 exclusive of VAT for the freehold interest in Centre City. A purchase at this level reflects an attractive net initial yield of 11.53% and a low capital value of 1, per sq m ( 105 per sq ft). 2 CENTRE CITY LANDMARK MULTI-LET OFFICE INVESTMENT OPPORTUNITY

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4 2 THE LOCATION Birmingham is the regional centre of the West Midlands and the UK s second city. With a population of c. 1,028,701 (2009 estimate) Birmingham is the largest regional centre, ranking ahead of Glasgow and Manchester and boasts a large population catchment area with over 2.8 million people within a 40 minute drive. Birmingham is situated approximately 168km (117 miles) North West of London, 32km (20 miles) West of Coventry, 113km (70 miles) South of Manchester and 74km (46 miles) South West of Nottingham. Birmingham is building for the future, which will help consolidate its position as the UK s second city and its strong position within a European context. It is estimated that there is in the region of 13 billion of infrastructure proposals in the pipeline for delivery before 2015, with 9.2 billion underway or in the pipeline for the city centre alone. One high-profile example is the c. 650 million redevelopment of New Street Station located adjacent to Centre City - work on which is now underway. Public and private sector landmark schemes already delivered include Europe s largest city centre retail regeneration scheme, Bullring, in addition to the International Convention Centre, Symphony Hall, National Indoor Arena, Brindleyplace and The Mailbox. 2.1 COMMUNICATIONS Birmingham is situated at the heart of the UK s communications network and benefits from excellent domestic, European and International transport links. The city is at the centre of the UK s motorway network with the M5, M6 and M42 forming an orbital route around the city and principally accessed by the Aston expressway, A38 (M), which in turn links directly with Smallbrook Queensway and Hill Street. The M6 Toll road opened in 2003 and provides an alternative route to the M6 around the North of the West Midlands conurbation. Birmingham is at the heart of the UK rail network and has three mainline city centre train stations (New Street, Snow Hill and Moor Street stations) with regular services to London (fastest journey time of 1 hour and 20 minutes) along with other major cities including Manchester (fastest journey time of 1 hour and 28 minutes). The planned High Speed 2 rail line will serve the city centre, with the proposed terminus close to the existing Moor Street Station. High Speed 2 aims to cut Birmingham to London journey times to 49 minutes and provide direct onward connections to continental Europe. The Midland Metro Light Rail Transport System connects Wolverhampton to Birmingham s Snow Hill Station and is due to be extended to New Street Station by The city centre is a nationwide hub for National Express Coaches and also benefits from an extensive bus service that operates 24 hour services throughout the city. Birmingham Airport is approximately 13km (8 miles) east of the city, adjacent to the National Exhibition Centre and benefits from a direct rail link to Birmingham New Street Station. It is the second largest airport outside Greater London and the South East offering flights to more than 100 destinations worldwide. In 2010 it handled over 9.3 million passengers and there are advanced plans to extend the airport s runway to allow for further international growth and direct flights to China, India and the West Coast of North America. 4 CENTRE CITY LANDMARK MULTI-LET OFFICE INVESTMENT OPPORTUNITY

5 CENTRECITY National Rail times from Birmingham London 1 hour 20 mins Coventry 20 mins Glasgow 3 hours 57 mins Worcester 39 mins Manchester 1 hour 28 mins Stoke-on-trent 47 mins Liverpool 1 hour 34 mins Banbury 48 mins Newcastle 3 hours 16 mins Solihull 8 mins Bristol 1 hour 26 mins Warwick 31 mins Source: thetrainline.co.uk

6 3 SITUATION NG HILL T IDDLEWAY T ST WEST ILBY ROAD GT. TINDAL ST OD MIDDLEWAY RUSTON STREET D Centre City occupies a highly prominent position within Central Birmingham, being highly visible from both Hill Street and Smallbrook Queensway. New Street Station is less than 50 metres directly to the North, Bullring Shopping Centre 100 metres to the East and The Mailbox 200 metres to the North West. Centre City is bounded by Hill Street, Smallbrook Queensway, Hinckley Street and Theatre Approach. Smallbrook Queensway leads to Suffolk Street Queensway, which is in turn links to the A38 (M) Aston Expressway for direct access to the national motorway network beyond. Pedestrian access from New Street Station is currently by way of Smallbrook Jewellery Queensway, however the Quarter new main entrance of the redeveloped station, along with the new John Lewis department store, will be situated at the junction of Hill Street and Station Street, some metres North of Centre City s Hill Street entrance. The New Street Station redevelopment scheme will radically improve connectivity through to the South side of the station around Centre City. BROWNING ST SHERBORNE STREET RYLAND STREET RYLAND ST RUSTON STREET Brindleyplace GRANVILLE STREE T The Mailbox GREAT COLMORE STREET NEWHALL ST COLMORE ROW HILL STREET HURST STREET NAVIGATION STREET NEW STREET T E M PLE ROW SMALLBROOK QUEENSWAY BULL STREET CORPORATION STREET BROMSGROVE STREET 6 CENTRE CITY LANDMARK MULTI-LET OFFICE INVESTMENT OPPORTUNITY LTHORPE ROAD ST. VINCENT STREET EDERICK ROAD ICKNIELD MIDDLEWAY POPE STREET PITSFORD STREET WARSTONE CARVER STREET CAMDEN STREET CAMDEN STREET A457 SANDPITS PARADE SHEEPCOTE STREET JAMES S ROAD GEORGE ROAD EDWARD STREET FREDERICK STREET NEWHALL HILL EDWARDS R OAD A456 BROAD STREET TENNANT STREET BISHOPS GATE STREET Five Ways Station A4540 LANE VITTORIA STREET AUGUSTA STREET GRAHAM STREET GAS STREET BERKLEY STREET H O LIDAY STR E ET ISLINGTON ROW GEORGE STREET SMITH STREET BARR STREET GT. HAMPTON STREET BATH ROW HALL ST CHARLOTTE STREET CAMBRIDGE ST 7 BRIDGE STREET YON STREET UNETT STREET NORTHWOOD STREET COX STREET NEWHALL STREET FLEET STREET HOLIDAY STREET BELL BARN ROA MOTT STREET LUDGATE HILL LIVERY STREET HOSPITAL STREET BREARLEY TOWER HENRIETTA ST LOWER LOVEDAY ST STATION ST STREET STREET CECIL STREET 1. BBC 2. Network Rail 3. BT 4. Birmingham City Council 5. Virgin Trains NEW JOHN ST WEST NEWTON MIDDLEWAY 1 A41 CONSTITUTION HILL MAN DRIVE 6. DLA Piper 7. ITV SHADWELL STREET PRINCIP STREET 8. Raddison Blu 9. Holiday Inn 10. Hippodrome Theatre CLIVELAND STREET WRENTHAM STREET STEELHOUSE LANE HIGH STREET Bullring EDGBASTON ST ET NEW TOWN ROW A34 GT CHARLES ST QUEENSWAY ST CHADS QUEE N S W AY SUFFOLK STREET 2 6 HOLLOWAY HEAD ISTOL ROAD 8 BR Snowhill Station New Street Station UPPER DEAN ST PERSHORE STR ET DALE END ALBERT ST ISHOP STREET BAGOT STREET MOAT LANE NEW JOHN STREET PRITCHETT STREET PARK STREET ASTON MOOR STREET QUEENSWAY BRAD F O RD STREET MACDONALD STRE RD STREET JAMES WATT Q W A Y D CENTRECITY CORPORATION ST A38 Moor Street Station REA STREET ASTON ROAD JENNENS ROAD MERIDEN STREET CHARLES HENRY STREET ROAD FAZELEY STREET NEW CANAL STREET IGBET H HIGH STREET CHEAPSIDE LISTER STREET HOLT STREET WOODCOCK STREET Birmingham & Fazeley Canal A4540 DARTMOUTH MIDDLEWAY LAWLY ST B4132 CURZON STREET BRADFORD STREET ER STREET GREEN STREET ADAMS STREET LIVERPOOL STREET HEATH MILL LANE DERITEND CHEAPSIDE WARWICK STREET GREA

7 CENTRECITY Brindleyplace New Street Station Colmore Row Snow Hill Station The Cube The Mailbox Bullring Moor Street Station CENTRECITY POINTS OF INTEREST

8 4 THE FUTURE - new street station and john lewis department store The New Street Station or Birmingham Gateway project is a multi-phase project encompassing a redevelopment of the current station. Incorporating a new main entrance from the Hill Street / Station Street junction close to Centre City, and additional entrances from Stephenson Street to the north will break the connectivity barrier the current station site presents. The redevelopment of Birmingham New Street station will create:- A concourse with three and half times more space for passengers, enclosed by a giant light-filled atrium More accessible, brighter and clearer platforms, reached by new escalators and public lifts A stunning new station exterior comprising stainless steel cladding, adding to Birmingham s growing reputation for excellence in design Eight entrances, creating better links to and through the station for pedestrians A major stimulus for the physical regeneration of the areas surrounding the station Taxi rank and drop off facilities clustered around the new southern entrance Large scale redevelopment and southern extension of the Pallasades Shopping Centre above the station The Southern extension to the Pallasades will provide a brand new glass fronted 22, sq m (250,000 sq ft) John Lewis Department store, the first in Birmingham The new station project will be delivered to exceptionally high standards of architectural design and create a new focal point for central Birmingham. Further information on the project including an impressive fly-through can be accessed at: New Street Station redevelopment will have an extremely positive impact on the immediate vicinity, greatly improving connectivity through the New Street Station site and providing a focus for development activity around the new main entrance at Hill Street / Station Street and the John Lewis department store. Centre City s excellent position within metres of the new main entrance provides a unique opportunity to capitalise on the area s improved physical environment, connections and amenities. The John Lewis department store will be open by 2014, with the whole station project complete by Station Street / Hill Street entrance and John Lewis department store 8 CENTRE CITY LANDMARK MULTI-LET OFFICE INVESTMENT OPPORTUNITY

9 CENTRECITY New Street New Station Entrance Corporation Street Pallasades Entrance New Street St. Martins Circus Queenswa y Birmingham New Street Station Station Entrance Bullring John Lewis Hill Street New Station Entrance CENTRECITY Smallbrook Queensway PROPOSED SITE PLAN NEW STREET STATION façade NEW STREET STATION ATRIUM

10 5 DESCRIPTION Centre City comprises a landmark and highly prominent 21 storey office building extending to 19, sq m (208,903 sq ft) of flexible accommodation and 206 parking spaces. Constructed in the 1970s, the property is of concrete frame construction with composite concrete cladding panels and single glazed window units. The property comprises two main elements, the podium and tower. The property is accessed by way of an impressive double height reception facility off Hill Street, which provides a central reception desk, seating area, café and access to the impressive full podium height central glazed atrium and lift banks. The podium is arranged over 6 floors (Ground 5th Floor) totalling 9, sq m (99,934 sq ft) and provides typical large floor plate sizes of up to 1, sq m (19,952 sq ft) overlooking the impressive central atrium. The podium is served by two lift cores, one at the front of the building leading from the main Hill Street reception comprising two 13 person passenger lifts, the other within the atrium comprising two 13 person glass wall climbing lifts. The tower extends over 15 floors (6th Floor 20th Floor) totalling 10, sq m (108,969 sq ft) and provides a typical floor plate size of sq m (7,470 sq ft) arranged around a central core. The tower is served by a separate bank of four 13 passenger lifts which serve all floors, with one serving the basement parking areas. The main specification features of the refurbished accommodation include:- VRF air conditioning system Fully accessible raised floors Suspended ceiling with high quality recessed lighting capable of achieving LG7 The base specification of the unrefurbished accommodation provides for a central air handling unit system with perimeter convector units. There are 206 secure basement parking spaces arranged over three levels. The basement parking is accessed from Hinckley Street on the properties northern boundary. This provides an excellent city centre parking ratio of 1:94.21 sq m (1:1014 sq ft). Parking, motorbike and bicycle storage is available to tenants 24 hours a day and 7 days a week. SITE PLAN 10 CENTRE CITY LANDMARK MULTI-LET OFFICE INVESTMENT OPPORTUNITY

11 CENTRECITY 5.1 accommodation PODIUM SQ M SQ FT Ground floor ,096 1st floor 1, ,445 2nd floor 1, ,045 3rd floor 1, ,508 4th floor 1, ,538 5th floor 1, ,302 SUB TOTAL PODIUM 9, ,934 TOWER SQ M SQ FT 6th floor ,159 7th floor ,266 8th floor ,248 9th floor ,020 10th floor ,499 11th floor ,438 12th floor ,470 13th floor ,252 14th floor ,252 15th floor ,252 16th floor ,359 17th floor ,157 18th floor ,199 19th floor ,199 20th floor ,199 SUB TOTAL TOWER 10, ,969 TOTAL 19, ,903 LADIES LIFT LIFT MAIN ENTRANCE LIFT LIFT Floorplans not to scale GENTS TYPICAL PODIUM FLOORPLATE TYPICAL TOWER FLOORPLATE

12 6 TENURE and tenancy The property is held Freehold. The property is let in accordance with the following tenancy schedule producing a total current passing rent of 2,683, The weighted average unexpired term is 2.73 years to break and 3.00 years to expiry. DESCRIPTION FLOOR AREA SQ M FLOOR AREA SQ FT PARKING SPACES TENANT LEASE START LEASE END BREAK PODIUM Sandwich Bar Caffe Kix Ltd 21/12/ /12/ Basement Storeroom Thales Properties Ltd 20/10/ /10/ Part Ground Floor ,621 2 Griffiths Waite Limited 23/08/ /08/ Part Ground Floor ,304 - Legal & General Insurance Limited 20/05/ /11/ Part 1st Floor , Legal & General Insurance Limited 20/01/ /11/ Part 1st Floor ,527 4 Legal & General Insurance Limited 20/01/ /11/ Part 1st Floor Store Legal & General Insurance Limited 20/01/ /11/ Part 1st Floor ,586 5 Legal & General Insurance Limited 20/01/ /11/2013-2nd Floor ,685 2 Legal & General Insurance Limited 20/01/ /11/2013-2nd Floor 1, , Eagle Star Life Assurance Co. Limited 25/03/ /03/2013-3rd Floor ,666 3 Legal & General Insurance Limited 20/01/ /11/2013-3rd Floor 1, , Legal & General Insurance Limited 26/09/ /11/2013-4th Floor 1, , Secretary of State for The Environment 23/08/ /08/ Part 5th Floor ,750 - QA Limited 07/09/ /09/ /09/2016 Part 5th Floor ,552 - Vacant SUB TOTAL PODIUM 9, , TOWER 6th Floor ,159 - Vacant th Floor ,266 - Vacant th Floor , Perceptive Informatics UK Ltd 03/02/ /02/2015-9th Floor ,020 - City Centre Birmingham Limited (Operated by YSES) 22/12/ /12/ /12/ th Floor ,499 - QA Limited 10/06/ /03/ Part 11th Floor ,450 - Thales Properties Ltd 05/05/ /10/ /10/2012 Part 11th Floor ,988 - Vacant th Floor ,470 - Debt Lifeboat Ltd 02/09/ /08/ th, 14th & Part 15th Floor 1, , Grant Thornton UK LLP 28/11/ /11/ Part 15th ,826 - Vacant Part 16th Floor ,638 5 Atos Origin IT Services UK Ltd TBC 14/04/ Part 16th Floor ,721 - Zurich Employment Services Ltd 27/07/ /07/ th Floor ,157 - The Secretary of State for Communities & Local Government Part 18th Floor ,504 2 The Secretary of State for Communities & Local Government Part 18th, 19th & 20th 1, , The Secretary of State for Communities & Local Government 20/06/ /06/ /06/ /06/ /08/ /06/ Roof Top Aerial BT Plc 21/05/ /05/ SUB TOTAL TOWER 10, , ADDITIONAL CAR PARKING Car Parking 5 Zurich Employment Services Ltd 22/09/ /07/ Car Parking 3 Zurich Employment Services Ltd 27/07/ /07/ Car Parking 55 Vacant SUB TOTAL ADDITIONAL CAR PARKING 63 TOTAL 19, ,

13 CENTRECITY RENT REVIEW RENT PER ANNUM RENT PER SQ FT RENT PER PARKING SPACE COMMENTS 21/12/2013 6, Rolling landlord break on 1 month notice. Fixed uplift to 7,000 at next rent review. Tenant wishes to expand into Atrium, current proposals available upon request , , Fixed annual rental uplifts, Year 1-52,500, Year 2-53,500, Year 3-54,500, Year 4-55,500, Year 5-56,500. Contracted rent is inclusive of service charge service charge is 30, Rent stated in tenancy schedule removes is net of service charge contribution - 64, , , Service charge cap of 5.59 per sq ft, linked to RPI - 50, , Service charge cap of 5.76 per sq ft, linked to RPI - 7, , , Service charge cap of 6.00 per sq ft, linked to RPI - 97, , Service charge cap of 6.25 per sq ft, linked to RPI - 150, , Sublet to Finance & Business Training School - 39, , Service charge cap of 5.60 per sq ft, linked to RPI 26/09/ , , , , Occupied by The Independent Review Service 07/09/ , Service charge cap of 7.50 per sq ft, linked to CPI Newly refurbished accommodation. QA have option to take a lease on this accommodation at per sq ft. QA are required to serve notice by 25/01/2012 to activate the agreement. Further details available upon request 1,395, Accommodation is stripped out and not liable for vacant business rates Accommodation is stripped out and not liable for vacant business rates - 130, , Guarantee from Parexel International Limited YSES have yet to submit trading information. The serviced agreement income is on a turnover basis calculated as - gross turnover less running costs (capped at 175,000 per annum) and management fee (15% of gross turnover). Landlord and tenant break clause - 112, Reversionary lease in conjunction with 5th floor, with an option to extend, further details available upon request. Service charge cap of 6.63 per sq ft, linked to CPI - 55, Tenant break option on 6 months written notice Newly refurbished accommodation. The air conditioning is not currently split from the remainder of the 11th floor. Budget estimate for splitting is 16,367 and Thales will contribute 50% of this cost if the space is let before their lease expiry in October , Guarantee from Baker Tiley Services Ltd - 287, , Part 15th sub let to The Secretary of State for Communities & Local Government (OFWAT) , , Regeared lease awaiting completion - 60, /06/ , Occupied by OFWAT 31/08/ , , Occupied by OFWAT - 273, , Occupied by OFWAT 20/05/2010 6, Rent review to higher of open market value or open RPI increase - rent review outstanding 1,272, , , , , , , , ,683,245.17

14 7 COVENANT INFORMATION LATEST ACCOUNTS TENANT NAME PERCENTAGE OF INCOME (%) EXPERIAN CREDIT OPINION EXPERIAN COMMERCIAL DELPHI RATING DATE TURNOVER (GBP 000) PRE TAX PROFITS (GBP 000) BRACKETS = MINUS FIGURES NET WORTH (GBP 000) BRACKETS = MINUS FIGURES Legal & General Insurance Ltd 29.17% Very Low Risk 5 31/12/ ,038 (11,739) 89,518 ngth Profile Secretary of State for Communities and Local Government 16.21% Undoubted Covenant Secretary of State for the Environment 11.55% Undoubted 28% Undoubted Very Low Covenant Risk 31% Undoubted Grant Thornton UK LLP 10.82% Low Risk Low 14% Risk 4 30/06/ ,883 (77,576) (24,650) QA Ltd 8.94% Below Average Below Average Risk 16% Risk 3 28/05/ ,452 4,142 (14,888) Finance & Business Training Ltd 5.65% Above Average Risk 11% Above Average Risk Undoubted /12/ (354) Perceptive Informatics Guaranteed by: Parexel International Ltd 4.91% Below Average Risk Below Average Risk 3 30/06/2010 8, /06/ ,168 (5) 6 Debt Lifeboat Ltd Guaranteed by: Baker Tilley Management Ltd 5.08% Above Average Risk 2 31/03/2010 1,632 (13) (324) Low Risk 4 31/03/ , ,129 f Income Zurich Employment Services Ltd Thales Properties Ltd 2.27% 2.09% Legal & Low General RiskInsurance Ltd Not 29.17% provided Secretary of State for Communities Below Average & Local Government 16.21% 3 Risk Secretary of State for the Environment 11.55% 31/12/ /12/ ,769 20,856 (15,261) (13,803) (92,367) 29,684 Atos IT Services UK Ltd 2.01% Very Low Risk 5 31/12/ ,197 29,038 1,291,887 Griffiths Waite Ltd 0.85% Grant Thornton UK LLP 10.2% Low Risk 4 30/06/ QA Ltd 8.94% Caffe Kix Ltd 0.23% Low Risk 4 31/12/ Finance & Business Training Ltd 5.65% BT PLC 0.22% Very Low Risk 5 31/03/ ,076,000 1,717,000 (1,438,000) Perceptive Informatics 4.91% 8 INCOME ANALYSIS Debt Lifeboat Ltd 5.08% Zurich Employment Services 2.27% Thales Properties Ltd 2.09% Atos IT Services UK Ltd 2.01% Griffiths White Ltd 0.85% Caffe Kix Ltd 0.23% BT PLC 0.22% UNEXPIRED TERM PROFILE COVENANT STRENGTH PROFILE Covenant Strength Profile Undoubted 28% rm Profile Less than 2 Years 13% 2 to 5 Years 65% 5+ Years 22% Very Low Risk 31% Low Risk 14% Below Average Risk 16% Above Average Risk 11% 14 CENTRE CITY LANDMARK MULTI-LET OFFICE INVESTMENT OPPORTUNITY

15 CENTRECITY 9 OFFICE MARKET Birmingham boasts the largest regional city centre office market within the UK. Total stock is estimated at c. 1,765, sq m (19,000,000 sq ft) which places Birmingham ahead of Manchester, Leeds, Glasgow and Edinburgh by quantum. The Birmingham occupational market has held up well with take up between Q1 Q standing at 259,353 sq ft, which compares favourably with the 5 year average of c. 600,000 sq ft. Over 90% of the transactions in 2010 were for 10,000 sq ft or below and this trend has continued into Prime rental levels currently stand at per sq ft, the rental cycle having bottomed out in 2010 and showing modest growth thereafter. Rental growth is forecast to pick up pace within the next 2-5 year horizon, due to ongoing supply side constraints, with the current up and built Grade A supply representing only 18 months of take up at current absorption rates. Take-up in the vicinity of Centre City has been particularly strong over the past 18 months, with several lettings taking place in Centre City and SBQ. Take up transacted over this period totals 125,943 sq ft, demonstrating the healthy interest shown by occupiers in the area, and a particular desire of tenants to be located close to key transport hubs and city centre amenities. Centre City is ideally placed to capture the majority of the transaction turn over in the Birmingham office market in the sub 10,000 sq ft size band, and provides a flexible range of potential accommodation of between 2,000 sq ft and 19,000 sq ft which can be tailored to suit tenant requirements. With the dynamics of the Birmingham occupational market and the forcast rental growth, Centre City can expect a positive future. Jones Lang LaSalle s prime rental forecasts are as follows:- YEAR GROWTH RATE % % % % %

16 10 ASSET MANAGEMENT Refurbishment and letting of the vacant and stripped out 6th and 7th floors Restructuring of the Legal & General leases Completion of common parts refurbishment programme Restructuring and / or renewal of other existing tenant leases Refurbishment and reconfiguring of main Hill Street reception Develop the service office operation on the 9th floor with operator YSES or bring in new operator Providing a café in the central atrium to create a new central amenity for all tenants Letting of refurbished part 5th, part 11th and part 15th floors Larger scale refurbishment and / or redevelopment of building Alternative uses 11 THE PROPOSAL We are instructed to seek offers in excess of 22,000,000 exclusive of VAT for the freehold interest in Centre City. A purchase at this level reflect an attractive net initial yield of 11.53% and a low capital value of 1, per sq m ( 105 per sq ft) 11.1 FURTHER INFORMATION Centre City presents a number of asset management opportunities:- Access to the dedicated Centre City data room can be obtained upon request from Jones Lang LaSalle and contains the following supporting information:- Title In addition, the following can also be obtained upon request from Jones Lang LaSalle:- Circle CVL File Tenancy Schedule in Excel Format Leases Service charge and management information Building survey Supplemental building survey reports :- - M&E (including lifts) - FHP ESS Ltd - Cladding - Martech - Environmental - Jones Lang LaSalle - Structural - Pell Frichmann Energy performance certificates 16 CENTRE CITY LANDMARK MULTI-LET OFFICE INVESTMENT OPPORTUNITY

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18 If you require further information or to arrange an inspection please contact the sole agents. Jones Lang LaSalle 45 Church Street Birmingham B3 2RT Edward Gamble Tel: +44 (0) Ben Kelly Tel: +44 (0) Jack Farmer Tel: +44 (0) This property is being marketed on behalf of the Joint LPA Receivers and therefore no warranties or guarantees in any respect, including but not limited to VAT, can be given. The LPA Receivers are not bound to accept the highest or any offer and are acting without personal liability COPYRIGHT JONES LANG LASALLE IP, INC This publication is the sole property of Jones Lang LaSalle IP, Inc. and must not be copied, reproduced or transmitted in any form or by any means, either in whole or in part, without the prior written consent of Jones Lang LaSalle IP, Inc. The information contained in this publication has been obtained from sources generally regarded to be reliable. However, no representation is made, or warranty given, in respect of the accuracy of this information. We would like to be informed of any inaccuracies so that we may correct them. Jones Lang LaSalle does not accept any liability in negligence or otherwise for any loss or damage suffered by any party resulting from reliance on this publication. September 2011.