MORTEC OFFICE PARK, YORK ROAD, LEEDS MULTI-LET OFFICE INVESTMENT

MORTEC OFFICE PARK, YORK ROAD, LEEDS MULTI-LET OFFICE INVESTMENT

INVESTMENT SUMMARY High quality, well-specified Business Park investment. Built/comprehensively refurbished in 1999/2000. Six modern purpose-built, self-contained office units and one refurbished Grade II Listed building standing in 1.98 hectares (4.89 acres) of mature landscaped grounds. The investment offers good income diversity and security with tenants including Crosby Homes (Yorkshire) Limited, Technology In Motion, Emcor Group Limited, Specialist Liability Services Limited and Trett Contract Services Limited. Excellent overall car parking ratio of 1:17.32 m² (1:187 ft²). Long leasehold 999 years at a peppercorn rent. Offers in the region of 4,500,000 (Four Million Five Hundred Thousand Pounds), subject to contract and exclusive of VAT. This reflects an attractive net initial yield of 8% after allowing for purchase costs of 5.75%. LOCATION Leeds is the principal financial and business service centre in the North East of England. The City has a district population of over 727,000 persons (making it the second largest metropolitan district in England) and an estimated 2.2 million persons living within a 30 minute drive time of the City Centre. Leeds is strategically located at the northern end of the M1 motorway, only 10 miles from the M62 transpennine motorway, providing direct links to London and Manchester/Hull respectively. The completion of the M1/A1 link to the south of the City, which provides a direct link between the M1/M621 and the A1(M) motorways, has further enhanced the City s road communications. The City benefits from an excellent rail infrastructure, providing a regular intercity service with a fastest journey time to London (Kings Cross) of 1 hour 56 minutes. Leeds also enjoys a regular service to Manchester, Liverpool, York and Newcastle. Leeds City Station is the busiest rail station in the UK outside Central London, with an estimated 50,000 passengers using it each day. Leeds Bradford International Airport is located approximately 7 miles to the north west of the City Centre and offers daily flights to both domestic and European destinations. The airport handles over 2.8 million passengers per year.

YEADON LEEDS BRADFORD AIRPORT A61 A58 WHINMOOR A657 A658 A658 A647 HORSFORTH A65 HEADINGLEY A660 CHAPEL ALLERTON A61 CITY CENTRE Roundhay LEEDS A58 A64 MORTEC OFFICE PARK YORK ROAD A64 MORTEC OFFICE PARK A647 PUDSEY A64 SCHOLES A6177 BRADFORD A650 A58 A62 A6110 M621 1 2 BEESTON A653 3 4 MIDDLETON HUNSLET 7 43 44 ROTHWELL 46 A642 GARFORTH A63 SEACROFT SWARCLIFFE 27 MORLEY 26 SITUATION Mortec Office Park is prominently situated to the north east of Leeds City Centre on the A64 York Road, one of the City s main arterial routes. The development is 1 mile from Leeds Outer Ring Road, 4 miles from the M1/A1 link and only 5 miles from Leeds City Centre. Mortec Office Park therefore benefits not only from excellent road communications to the local and national motorway network but is also less than a 10 minute drive from Leeds City Centre. Mortec Office Park benefits from a perpetual right of access over the road hatched orange on the Ordnance Survey Extract. DESCRIPTION Mortec Office Park comprises a development of eight individual B1 office units developed between 1999 and 2000 and set within 1.98 hectares (4.89 acres) of mature and landscaped grounds providing a total of 2,252 m² (24,245 ft²) of accommodation. Units 1 & 2 are occupied by Crosby Homes (Yorkshire) Limited and is a Grade II Listed property that forms part of a property previously known as Morwick Hall. The property was substantially refurbished in 1999/2000 to a high standard of office accommodation. The remainder of the Park consists of five modern single/two-storey office buildings that were constructed in 2000 within the extensive grounds of the original building, Morwick Hall. EXTERNAL SPECIFICATION Superb landscaped setting forming part of a controlled business environment. High quality finishes. Impressive combination of new and Listed buildings. Self-contained campus style office park with strong identity. Attractive courtyard area and landscaping with pond and quest recreation areas. INTERNAL SPECIFICATION Each of the buildings on the Park has the following specification:- Spacious contemporary offices with excellent natural lighting and ventilation. Full raised access floors. Category 2 lighting. Impressive high quality entrance areas. Aluminium framed double-glazed windows. Gas fired central heating. Male, Female and Disabled WC facilities. The property benefits from 130 car parking spaces on site, representing an excellent car parking ratio of 1:17.32 m² (1:187 ft²).

TENURE The property is held long leasehold by way of a 999 year lease with effect from 1 March 2000, expiring on 1 March 2999, at a peppercorn rent. TENANCY SCHEDULE The property is let in accordance with the Schedule of Accommodation & Tenancies below and produces a total current income of 381,628 per annum. Unit Tenant Area ft 2 Lease Start Rent Lease Expiry Passing Rent ERV Comments NIA Review (Break) PA ( /ft 2 ) ( /ft 2 ) 1 & 2 Crosby Homes 6,844 29/09/05 28/09/10 28/09/15 104,312 104,312 (Yorkshire) Ltd (29/09/10) ( 15.25) ( 15.25) 3 Technology In 2,188 23/02/07-22/02/12 32,600 35,000 Motion Limited (23/02/10) ( 14.89) ( 16.00) 4 Educational Ideas Ltd 861 01/11/07-31/10/12 14,000 14,000 (01/11/10) ( 16.25) ( 16.25) 5A Emcor Group (UK) Plc 1,220 05/07/06-04/07/11 18,755 19,500 (05/07/09) ( 15.37) ( 16.00) 5B Trett Contract Services 2,161 01/01/03 01/01/08 31/12/12 38,900 34,600 Limited (31/12/09) ( 18.00) ( 16.00) 6A Shopcreator Limited* 2,945 01/04/07 01/04/12 31/03/17 47,120 47,120 1st Floor (01/04/10) ( 16.00) ( 16.00) 6B Vacant - 2 year Rent, Rates 1,071 2 year Rent, Rates and - - 17,404 17,404 2 year Rent, Rates and Service Charge Gnd Floor and Service Charge Guarantee Service Charge Guarantee ( 16.25) ( 16.25) Guarantee. 6C Vacant - 2 year Rent, Rates 1,622 2 year Rent, Rates and - - 25,952 25,952 2 year Rent, Rates and Service Charge Gnd Floor and Service Charge Guarantee Service Charge Guarantee ( 16.00) ( 16.00) Guarantee. 7 Vacant - 2 year Rent, Rates 3,349 2 year Rent, Rates and - - 53,585 53,585 2 year Rent, Rates and Service Charge and Service Charge Guarantee Service Charge Guarantee ( 16.00) ( 16.00) Guarantee. Unit has potential to be sub divided and let on a floor by floor basis. 8 Specialist Liability 1,984 25/11/05-07/12/10 29,000 31,700 Services Limited ( 14.61) ( 16.00) Total 24,245 381,628 383,173 * Shopcreator Limited entered administration and have been purchased by Selserve (UK) Limited. A Tenancy at Will is in place, whilst and assignment of the original lease liability is documented.

OUT-OF-TOWN OFFICE MARKET Historically, Leeds has not had a strong out-of-town office market as the firms that have traditionally dominated demand have been from the professional services, who prefer to locate in the town/city centre. However, over the last 10 15 years Leeds has seen the development of out-of-town office parks as issues associated with land costs, availability and parking ratios have come to the fore. Purpose built out-of-town office developments have included White Rose Office Park (Arlington Office Park) to the south of the City Centre, Thorpe Park to the east, Leeds Valley Park to the south and Capitol Park and Airport West to the north of Leeds. These purpose built developments have attracted national covenants and commanded rents of 20.00-21.00 ft². This is in contrast to the subject property, which has a low average passing rent of 15.75 ft² and provides a platform from which to drive rents forward. ASSET MANAGEMENT OPPORTUNITIES Potential to increase the rental profile of the asset by developing a serviced office business. Underlying potential to develop the site to a higher density subject to the relevant consents. Flexible accommodation offer that is capable of sub division to provide higher value small floor plate office suites. Unit 7 capable of being sub divided and let on a floor by floor basis VAT The property is registered for VAT purposes and VAT will be payable on the purchase price.

PRICE We are instructed to seek offers in excess of 4,500,000 (Four Million Five Hundred Thousand Pounds), subject to contract and exclusive of VAT, for our client s long leasehold interest. A purchase at this level reflects a net initial yield of 8%, after deduction of usual purchaser s costs of 5.75%. The pricing explicitly makes an allowance for potential re letting voids that may be incurred in the period up to 2011. The vendor is prepared to put in a 2 year rent, rates and service charge guarantee on the vacant accommodation. FURTHER INFORMATION Should you require any further information, or wish to arrange an inspection, please contact: David Scott Tel: 0113 235 5244 Email: david.scott@kingsturge.com Phil Martin Tel: 0113 235 5226 Email: phil.martin@kingsturge.com Crown Copyright 2008. All rights reserved. Promap licence number 100020449. King Sturge licence number 100017659. This plan is published for the convenience of identification only and although believed to be correct is not guaranteed and it does not form any part of any contract. Misrepresentation Clause: The accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein is not guaranteed and is for general guidance only and prospective purchasers or tenants must not rely on them as statements of fact or representations and must satisfy themselves as to their accuracy. Neither King Sturge LLP nor any of their employees or representatives has any authority to make or give any representation or warranty or enter into any contract whatever in relation to the property. Rents quoted in these particulars may be subject to VAT in addition. The reference to any mechanical or electrical equipment or other facilities at the property shall not constitute a representation (unless otherwise stated) as to its state or condition or that it is capable or fulfilling its intended function. Prospective tenants/purchasers should satisfy themselves as to the fitness of such equipment for their requirements. Subject to Contract Exclusive of VAT March 2008