INVESTMENT OPPORTUNITY

INVESTMENT OPPORTUNITY TIME BUSINESS CENTRE WATERVOLE WAY FIRST POINT BUSINESS PARK DN4 5JP FREEHOLD SERVICED OFFICE INVESTMENT OPPORTUNITY

Investment summary DESCRIPTION INCOME PROPOSAL Freehold, modern three storey self-contained office building constructed in 2013. Well located on First Point Business Park, situated to the south of Doncaster. An office building of 23,560 sq ft with 106 surface level car parking spaces. The second floor remains in a shell and core condition presenting the opportunity to expand the serviced office operation. The ground and first floor operate as a serviced office which is currently 100% occupied and operated on a management agreement. 35 separate occupiers on licence agreements producing a gross income of 438,600 pa. Offers sought in excess of 2,950,000 for the freehold interest. This reflects an initial yield of 6.90% and a reversionary yield of 12.40%, once fitting out the second floor space, having allowed for purchaser s costs.

37 A638 A635 THORNE ROAD A630 HATFIELD LANE 4 TIME BUSINESS CENTRE WATERVOLE WAY DN4 5JP TIME BUSINESS CENTRE BALBY CARR BANK WATERVOLE WAY WOODFIELD WAY Location WOODFIELD WAY BULLRUSH GROVE BALBY CARR BANK BALBY CARR BANK SHEEP LANE A6182 MELTON ROAD MAL LARD WAY Doncaster is one of the main towns within South Yorkshire, located 20 miles north-east of Sheffield and 28 miles south-east of Leeds. Doncaster has a catchment population of over 302,000 at the 2011 census. Time Business Centre is situated on First Point Business Park to the south of Doncaster town centre and has attracted a number of high profile occupiers including Amazon, Morrisons, B&Q, Kia and Holiday Inn. LONG LA PAR K DRIVE NE SHEFFIELD ROAD BA CK LAN A1(M) EDLINGTON LANE E 36 BROOM HOUSE LANE SPROTBROUGH ROAD A60 35 BALBY CARR BANK WOODFIELD WAY COMMUNICATION The subject property benefits from excellent road communications, being situated approximately half a mile from Junction 3 of the M18 Motorway, which provides a link to the M62 and the M1 to the south. Furthermore, the A1(M) is in close proximity to the property, providing good access to Leeds and the north east, as well as to Newark-on-Trent and the south east. Doncaster Railway Station is located on the East Coast Mainline, with services now operated by Virgin Trains. Trains run frequently from London Kings Cross to Doncaster with a journey time of only 1 hour 40 minutes as well as providing services within Yorkshire and regular services north to Leeds, Newcastle and Edinburgh. Sheffield and Doncaster are jointly served by the international airport, Robin Hood Airport, 8 miles to the east of the subject property. A6182 3 A18 M66 M56 A638 BURNLEY A555 A6033 MANCHESTER M60 A523 A537 A6 MACCLESFIELD NUTWELL LANE M18 M62 A629 A628 A65 A515 A623 A59 A658 HUDDERSFIELD HARROGATE A629 A61 LEEDS M621 BARNSLEY SITUATION First Point Business Park is a 2 million sq ft mixed use development, developed by Catesby Property Group. The 120 acre park includes three large distribution units, a public house, a 94 bed hotel (operated by Holiday Inn), a 175,000 sq ft B&Q store, a motorcar dealership, a petrol filling station and four office buildings totalling circa 110,000 sq ft. Construction of 13 light industrial units is currently underway nearby. The property is situated on the south side of Watervole Way and is adjacent to a new 90,000 sq ft Morrisons food store, and a 415,000 sq ft Amazon Distribution Centre. M1 A619 A61 A58 M1 SHEFFIELD M62 33 A1(M) A628 A64 PONTEFRACT A1 A635 M1 31 32 A19 A60 YORK A1(M) A19 WORKSOP A1 A614 A63 M18 A57 A631 M62 A1 A614 SCUNTHORPE GAINSBOROUGH A1

Accommodation The property has been measured on a Net Internal Area basis in accordance with the RICS Code of Measuring Practice (6th Edition) and from this we calculate the approximate areas to be as shown below: FLOOR SQ M SQ FT Ground Floor 701* 7,542* First Floor 744 8,009 Second Floor 744 8,009 Total NIA 2,189 23,560 * Reduced floor plate due to the presence of the reception area on ground floor, when operated as a serviced office. Description The property was built in 2013 by Catesby Property Group as part of the wider business park and comprises a three storey, selfcontained, modern office building. The property is arranged over ground, first and second floors providing a total NIA of 23,560 sq ft (2,189 sq m). The ground and first floor are fitted out to a Cat A specification, whilst the second floor remains in a shell and core condition. The ground and first floors are operated as a serviced office and are divided into 35 individual suites comprising 177 desks. The serviced office operation provides occupiers with good quality furnished suites, which include the use of kitchen and toilet facilities and the ability to use meeting room facilities at an additional cost. The building has the following specification:- Fully accessible raised floors; Suspended ceilings with Cat II lighting; Air conditioning system with a separate control panel in each suite; and 1 x passenger lift serving all floors. There are 106 surface level car parking spaces providing a ratio of 1:222 sq ft. SITE The property is on a site of approximately 0.648 hectares (1.6 acres). TENURE Freehold. CUSHMAN & WAKEFIELD 4

Licences MANAGEMENT AGREEMENT A management agreement is currently in place between the Freeholder and Time Business Centre (Doncaster) Limited. They have successfully overseen the serviced office operation from inception to 100% occupancy. This licence agreement can be terminated on sale, or alternatively the operator may remain in place through further negotiations. LICENCE AGREEMENTS The standard term for the licences is generally 12 months. Upon expiry, either party may break by giving no less than 3 months notice to the other party. The ground and first floors are currently 100% occupied on standardised licence agreements, which are available upon request. FORECAST FOR APR 2015-MAR 2016 No. of Licensees 35 52 No. of Workstations 177 319 Gross Income 489,120 783,360 Net Operating Income 215,298 386,434 For the current year of April 2014 March 2015, the gross income (licence fees and supplementary income) was 318,361 with a net income of 90,952. A list of licensees and full internal management accounts are available on request. OCCUPANCY RATE The ground and first floors are running at full capacity as shown on the graph, which is the result of a steady and successful leasing program over the past 18 months since the centre opened. The success of the serviced office so far highlights the demand from local and national occupiers for flexible quality accommodation within this location. There is further demand in the area and this presents the opportunity to expand the operation by fitting out the second floor. The property has attracted a mixture of local and national occupiers. FORECAST FOR APR 2015-MAR 2016 FOLLOWING FIT OUT OF 2ND FLOOR Occupancy % DEC - 13 JAN - 14 FEB - 14 MAR - 14 APR - 14 MAY - 14 SERVICES The licence fee includes the following services: Heating and Lighting Internet 24 hour access and security Free car parking Reception services Office Furniture Telephone system and line rental Building Insurance Office and window cleaning Building Maintenance and Facility Management Refuse Disposal JUN - 14 Months JUL - 14 AUG - 14 Total Occupancy % 6 9 9 11 14 14 26 37 40 43 46 51 57 57 66 74 86 89 89 91 100 SEP - 14 OCT - 14 NOV - 14 DEC - 14 JAN - 15 FEB - 15 MAR - 15 APR - 15 MAY - 15 JUN - 15 JUL - 15 AUG - 15 Additional services are provided to the tenants. Historically these services have generated income of approximately 20% over and above the licence fee receivable. These include:- Telephone calls Meeting room facilities Printing and photocopying

TIME BUSINESS CENTRE WATERVOLE WAY DN4 5JP Proposal We are seeking offers in excess of 2,950,000 (Two Million, Nine Hundred and Fifty Thousand Pounds) for the freehold interest. This reflects an initial yield of 6.90% and a reversionary yield of 12.40%, once fitting out the second floor space, having allowed for purchaser s costs. THE INVESTMENT OPPORTUNITY Modern freehold office building with all furniture, fixtures and fittings Diversified income stream with both local and national occupiers Strong occupational demand demonstrated by speed of take-up Limited competition Asset management opportunity to fit out second floor capturing serviced office demand or to the ability to attract a traditional occupier Building now recognised as one of the premier serviced office operations within the region Excellent car parking ratio and nearby amenities INVESTMENT SCENARIOS This freehold sale presents the purchaser with a number of options including: Freehold purchase inheriting underlying licences with the opportunity to replace Time Business Centre with own operation business Freehold purchase and possibility to negotiate a new management agreement with Time Business Centre Freehold purchase with opportunity to seek tenants on traditional leasing terms upon expiry of the licence agreements PLANNING The subject property benefits from Use Class B1. EPC RATING The property benefits from an EPC rating of B 31. BREEAM Built to Very Good BREEAM sustainability rating. WEB ACCESS www.cushmanwakefieldinvestmentsales.co.uk/cw/ timebusinesscentre CUSHMAN & WAKEFIELD 6

www.cushmanwakefieldinvestmentsales.co.uk OUR Team Andy Dickens E: andy.dickens@eur.cushwake.com T: +44 (0) 20 7152 5030 Lyndsay Barnes E: lyndsay.barnes@eur.cushwake.com T: +44 (0) 20 7152 5295 Cushman & Wakefield LLP 43/45 Portman Square London W1A 3BG November 2015 MISREPRESENTATION ACT 1967 Cushman & Wakefield LLP (and their joint agents if appointed) for themselves and for vendors or lessors of this property whose agents they are, give notice that: (1) The particulars are produced in good faith, are set out as a general guide only and do not constitute any part of a contract. (2) No person in the employment of the agent(s) has any authority to make or give any representation or warranty whatever in relation to this property. (3) This property is offered subject to contract and, unless otherwise stated, all rents are quoted exclusive of VAT. (4) Nothing in these particulars should be deemed to be a statement that the property is in good condition or that any services or facilities are in working order. (5) Unless otherwise stated, no investigations have been made regarding pollution or potential land, air or water contamination. Interested parties are advised to carry out their own investigations if required. Production by PlusArt 0115 972 4000