Prime Freehold City Centre Office Investment. Manchester M2 3HZ

Prime Freehold City Centre Office Investment Manchester M2 3HZ

Investment Summary Prime freehold city centre office investment. The property is situated in the heart of the City Centre and positioned within the prime office core. The building totals 15,434 sq ft and comprises 6 storeys of fully refurbished offices and an A2 unit at ground floor level. The office accommodation has undergone a significant refurbishment programme to include a new reception area, refurbished office suites, shower facilities, and attractive outside amenity spaces on the 2nd, 4th and 6th floors. The 1st, 2nd and 3rd floors are sub divided and run as an all inclusive business centre. The property benefits from 9 underground car parking spaces providing a ratio of 1: 1,714 sq ft. Total income of 299,075 per annum exclusive. Seeking offers in the region of 3,000,000. A purchase at this level shows a Net Initial Yield of 9.42%, assuming purchasers costs of 5.8%.

Location Manchester is widely regarded as the UK s largest financial centre outside of London and is the administrative, educational, cultural, sporting and retail centre for the North West. The conurbation of Greater Manchester is home to a population of 2.6 million and is the UK s largest regional economy with an estimated 50 billion of GDP. The economy is diverse and an estimated 70 of the FTSE 100 companies are represented together with over 50 international banks and 600 major overseas companies. Major employers within the city include The Co-Operative Group, Bank of New York, Royal Bank of Scotland, legal and other professional firms accounting for approximately 30% of all office employment in the city. The city is also becoming synonymous with the growth of technology, media and telecommunications (TMT) and also the expansion of the Biopharmaceutical sector. The city is ranked 46th in the world for direct commercial real estate investment since 2008 with over 3.75 billion transacted. It is the only UK city alongside London to feature in the top 50.

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Manchester Infrastructure Air - Manchester Airport is the UK s 3rd largest, with over 100 Airlines offering direct flights to 225 destinations worldwide, connecting over 22 million passengers to more places than any other Airport in the UK. Rail - The City has two mainline railway stations, Piccadilly and Victoria linked by shuttle bus and the Metrolink tramway. There are localised stations in the City at Oxford Road, Deansgate and Salford Central. There are intercity train links to all major cities within the UK with a half hourly service to London Euston ( journey times are approximately 2 hours 10 minutes). Road - Manchester has over 100 miles of motorway within the conurbation; the M62 provides a link to Liverpool, Leeds and the West and East Coast ports. The M6 provides links to Birmingham and London in the South and Glasgow and Edinburgh to the North. Metrolink - Metrolink is the city s light rail transit system which provides access around the city centre and out to the nearby conurbations. The system extends to Eccles and Altrincham in the east and Bury and Rochdale in the North, with eight stops within the city centre. The network is set to expand further with work underway for new lines across the city centre and an extension to Manchester Airport in the south.

Situation 61 Mosley Street enjoys a strategic corner position located within the city s prime office core on the junction of Mosley Street and Charlotte Street. It is an area which is favoured by many professional companies, including accountants, banks, insurance companies and solicitors. Market Street and the Arndale Centre comprising the primary retail pitches in Manchester are located within a two minute walk. The property is well situated for public transport with Piccadilly Gardens and St Peter s Square Metrolink stations close proximity of the subject property. Manchester Piccadilly Train station is a 5 minute walk away. 1 St Peter s Square Under construction, a 268,000 sq ft Grade A, BREEAM excellent office scheme which is being developed via a joint venture between The Greater Manchester Pension Fund (GMPF) and Argent. Completion is expected Q3 of 2014. 2 St Peter s Square a proposed 160,000 sq ft Grade A office building. 3 St Peter s Square a proposed 110,000 sq ft Grade A office building. The property is also located 200 metres north of St Peter s Square which is currently a focal point of many of the significant infrastructure and development projects ongoing in the city. Circa 180,000,000 of public expenditure has been committed to the Square through Manchester City Council s decision to substantially refurbish and upgrade its civil buildings consisting of the Central Library and Manchester Town Hall. Landmark a proposed 180,000 sq ft Grade A office building. In addition to the public expenditure, there are a number of large scale projects at various stages of planning and development in the vicinity of Mosley Street and St Peter s Square.

Description 61 Mosley Street is a centrally located retail and office building split over basement, ground and six upper floors. There are 9 under croft car parking spaces. Offices Accessed off Mosley Street the office accommodation benefits from a remodelled and enlarged reception served by a six-person passenger lift to each floor. Part of the accommodation is open plan whilst the 1st, 2nd and 3rd floors are run as an all inclusive business centre with suites ranging from 170 sq ft to 900 sq ft. Retail A single let unit arranged over ground floor. The unit is currently occupied by an A2 (Financial and Professional Services use class. Planning permission would not be required to change to A1 (retail/shops). Specification includes: Suspended ceiling and LG7 Lighting to all suites/floors Kitchenette, male and female WC s on each floor Gas central heating system Secondary glazing to all floors Passenger lift Reception with desk facility Intercom entry system Shower and secure bike storage facilities Access to secure basement car parking Outside terraces to 2nd, 4th and 6th floors

Accommodation and Tenancy Schedule DEMISE FLOOR AREA (SQ FT) TENANT ANNUAL RENT RENT - PER SQ FT ANNUAL SERVICE CHARGE ANNUAL INSURANCE LEASE EXPIRY COMMENTS GROUND FLOOR 2,500 RULLION CONTRACT SERVICES 41,500 16.60 2,200.00 3,584.00 06-MAR-23 FRI FIRST FLOOR, SUITES 1 262 UNDER OFFER (CHONG DONG) 6,550 25.00 INC INC 30-SEP-15 PROPOSED 1 YEAR LEASE COMMENCING ON 1ST OCTOBER 2014. FIRST FLOOR, SUITES 2 235 BLUE SKY 5,875 25.00 INC INC 31-JAN-15 FRI. BUSINESS CENTRE* FIRST FLOOR, SUITE 3 228 JAMES O'DELL 5,700 25.00 INC INC 12-JAN-17 FRI. BUSINESS CENTRE* FIRST FLOOR, SUITE 4A 170 MOHAMMED AFTAB ARIF 4,170 24.53 INC INC 31-JUL-13 HOLDING OVER. IN DISCUSSIONS TO RENEW FIRST FLOOR, SUITE 4B 180 VIBE STUDIO 4,170 23.17 INC INC 14-DEC-15 FRI. BUSINESS CENTRE* FIRST FLOOR, SUITE 5 176 UTURN TAX REFUND 4,375 24.86 INC INC 08-DEC-14 FRI. BUSINESS CENTRE* FIRST FLOOR, SUITE 6 350 VACANT 24.00 - - QUOTING - 8,750 PA FIRST FLOOR, SUITE 7 805 AM 2 PM RECRUITMENT SOLUTIONS 20,000 24.84 INC INC 31-OCT-14 FRI. BUSINESS CENTRE* SECOND FLOOR, SUITE 1 900 YOUNGS INVESTMENT COMPANY 22,500 25.00 INC INC 15-FEB-16 FRI. BUSINESS CENTRE* SECOND FLOOR, SUITE 2&3 500 YOUNGS INVESTMENT COMPANY 12,500 25.00 INC INC 15-JUN-15 FRI. BUSINESS CENTRE* SECOND FLOOR, SUITE 4 175 JIABAI WANG 4,375 25.00 INC INC 14-MAY-14 FRI. BUSINESS CENTRE* SECOND FLOOR, SUITE 5 650 UNDER OFFER (CFES LTD) 18,500 28.46 INC INC 31-JUL-16 PROPOSED 2 YEAR LEASE COMMENCING ON 1ST AUGUST 2014. TENANT DEPOSIT OF 2,500 PA THIRD FLOOR, SUITE 1 440 VACANT 24.00 - - QUOTING - 11,000 PA THIRD FLOOR, SUITE 2 460 D-WISE TECHNOLOGIES UK 11,700 25.43 INC INC 30-APR-15 FRI. BUSINESS CENTRE* THIRD FLOOR, SUITE 3 350 BRIGHT ESTATE AGENTS 8,550 24.43 INC INC 31-JAN-14 TENANT HOLDING OVER. FRI. BUSINESS CENTRE* THIRD FLOOR, SUITE 4 175 BRANDED PRODUCT PROTECTION SERVICES 4,170 23.83 INC INC 31-OCT-14 FRI. BUSINESS CENTRE* THIRD FLOOR, SUITE 5 175 GRANT ERSKINE ARCHITECTS 4,170 23.83 INC INC 29-FEB-16 FRI. BUSINESS CENTRE* THIRD FLOOR, SUITE 6 650 VINCENT BOND & CO 16,250 25.00 INC INC 30-NOV-15 FRI. BUSINESS CENTRE* BUSINESS CENTRE TOTAL 6,881 144,300 TOTAL SHORTFALL OF 25,803.75 FOURTH FLOOR 2,203 FABRIC DIGITAL 31,900 14.48 5,940.00 660.00 31-MAY-18 TENANT DEPOSIT OF 7,975. FRI FIFTH FLOOR 2,198 OJK 32,970 15.00 5,934.60 659.40 31-AUG-17 FRI SIXTH FLOOR 1,652 F A PARTNERSHIP LIMITED 26,350 15.95 4,460.00 496.00 27-SEP-15 FRI 1 CAR PARK BAY YOUNG INVESTMENTS 1,650 LICENSE 1 CAR PARK BAY MOHAMMED AFTAB ARIF 1,650 LICENSE 2 CAR PARK BAYS FABRIC DIGITAL 3,500 LICENSE 3 CAR PARK BAYS RULLION CONTRACT SERVICES 6,000 LICENSE BUILDING TOTAL 15,434 299,075.00 18,534.60 5,339.40 *INCLUSIVE OF SERVICE CHARGE, INSURANCE, BUSINESS RATES AND SERVICES BUSINESS CENTRE SHORTFALL 25,803.75 NET RENT 273,271.25

Manchester Market Take-up in the Manchester City Centre Office market totalled c. 900,000 sq ft for 2013 with the main driver being SME s taking space ranging from 500 sq ft to 5,000 sq ft. The majority of this was grade B, refurbished accommodation ranging from c. 12-19 per sq ft. A significant driver in the market has also been business centre, serviced office space which offers all inclusive, short term accommodation. The City has seen a dramatic increase in enquiry levels and subsequent lettings to occupiers looking for fixed overheads and flexible lease terms. A schedule of recent, comparable lettings are detailed below: Service Charge PROPERTY ADDRESS Alexandra Buildings, Queen Street SIZE (SQ FT) TENANT 1,482 Atticus Law LANDLORD PDA Holdings RENT/PRICE (PER SQ FT) 16.50 The service charge on the ground, 4th, 5th and 6th floor currently stands at 18,534.60 per annum, this equates to a low figure of 2.17 per sq ft (excluding building insurance). Merchant Exchange 3,033 Live Link Property Allicance Group 16.00 Manchester One 1,460 Randstand Bruntwood 16.00 Bow Chambers 2,595 111 Piccadilly 2,256 15 Oxford Court 6,136 Ian Blackhurst Castlefield Investments Allscripts Healthcare Solutions Patrick Properties 19.50 Bruntwood 16.00 PDA Holdings 16.00 Sunlight House 4,342 Booking.com SWIP 16.50 Churchgate House (Part 6th Floor) 9,048 Capita Dunedin 16.00 Lowry House 1,423 Uinsure Bruntwood 19.50 The service charge on the business centre (1st, 2nd and 3rd floors) is inclusive within the rent. The non recoverable costs in connection with the business centre breaks down as follows: DESCRIPTION PER SQ FT Service Charge 2.70 Insurance 0.30 Business Rates N/A* Services 0.75 Total 3.75 *Subject to small business rates relief. The total shortfall for the Business Centre is 25,803.73 per annum.

Asset Management Letting of suites 1 and 6 on the 1st floor and suite 1 on the 3rd floor. This will provide an additional income of 26,300 pa. Planning permission has been approved for the erection of glass box extensions to the 2nd and 4th floor terraces (marked red on the two architect elevation plans). A planning application has also been submitted to add two additional floors to the top of the building (see architects plans). This application is currently still pending.

VAT We understand the property has been elected for VAT and it is anticipated that the sale will be structured as a Transfer of a Going Concern (TOGC). EPC Copies of the Energy Performance Certificate are available upon request. Proposal We are instructed to seek offers in the region of 3,000,000 (Three Million Pounds). Assuming purchaser costs of 5.8% this offers the following yield profiles: Net initial yield of 9.42% Reversionary yield of 10.04% (upon letting of the vacant business centre suite) Triple net yield of 8.61%

CONTACT The Team Ted Murray MRICS Darren Moorhouse MRICS Matthew Cox MRICS MOBILE: TEL: MOBILE: TEL: MOBILE: TEL: 07766 00 33 22 0161 850 0497 07778 15 99 22 0161 850 7788 07788 99 99 11 0161 850 0498 EMAIL: EMAIL: EMAIL: ted@kingstreetcommercial.com darren@kingstreetcommercial.com matt@kingstreetcommercial.com Connect with us ADDRESS: 41 South King Street. Manchester, M2 6DE EMAIL: info@kingstreetcommercial.com TEL: 0161 234 0101 For further investments & lettings, please visit: www.kingstreetcommercial.com Subject to Contract 2014 MISREPRESENTATIONACT1967KINGSTREETCOMMERCIAL,FORITSELFANDFORTHEVENDORSOFTHISPROPERTY,HEREBYGIVENOTICETHAT:Theseparticularsdonotconstitute,norconstituteanypartof,anofferorcontract.KingStreetCommercialLtdanditsmembersacceptnolegalresponsibilityforanystatementorrepresentationwhetherwritten,oralorimpliedorwhethercontainedinanyadvertisementparticularsorothermatters issuedoranycorrespondenceenteredintobythemandwhethermadeinanyantecedentpresentorsubsequentenquiriesornegotiations.neitherkingstreetcommercialnortheirprincipals,members,agents,servantsor representativeshaveanyauthoritywhatsoevertomakeorgiveanyrepresentationorwarrantywhatsoeverwhetherwrittenorimpliedinrelationtothisproperty. Anyintendingpurchasermustsatisfyhimselfbyinspection or otherwise as to the correctness of any antecedent present or subsequent statements or representations, and should not rely upon the same unless he has satisfied himself accordingly.unlessotherwisestatedallprices and rents are quoted exclusive of Value Added Tax (VAT), any intending purchasers or lessees must satisfy themselves independently as to the incidence of vat in respect of any transaction.designedby90degreesdesign and Marketing 0161 833 1890. 2014