FOUNDRY COURT AND WATERMANS YARD NORWICH

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1 Savills Residential Capital Markets FOUNDRY COURT AND WATERMANS YARD RESIDENTIAL & RETAIL INVESTMENT OPPORTUNITY Foundry Court

2 3 INVESTMENT SUMMARY WATERMANS YARD FOUNDRY COURT Riverside Leisure Area Norwich Train Station Two well situated blocks known as Foundry Court and Watermans Yard, together comprising 48 apartments,

2 2 3 INVESTMENT SUMMARY WATERMANS YARD FOUNDRY COURT Riverside Leisure Area Norwich Train Station Two well situated blocks known as Foundry Court and Watermans Yard, together comprising 48 apartments, 27 garages, 15 off-street surface car parking spaces and three retail units All of the apartments are let on assured shorthold tenancies (ASTs), with a gross income of 368,160 per annum Foundry Court has three retail units with a gross income of 30,915 per annum The Cathedral Castle Mall Shopping Centre Norwich Castle The residential units have a net sales area (NSA) of 2,849 sq m (30,670 sq ft) and the retail units have a gross internal area (GIA) of 161 sq m (1,734 sq ft) Norwich Market City Hall The Forum The portfolio has a total rent passing of 399,075 per annum and an estimated market rental value of 429,500 per annum, reflecting a rental increase of 7.6% Theatre Royal Chapelfield Shopping Centre The portfolio has been consistently occupied at 100% A strong reversionary rental potential, through active management and rental growth prospects Both properties are centrally located in Norwich city centre and are within walking distance to all amenities

Norfolk. It has a resident population of 132,512 (2011 Census) and a primary catchment population of 895,000.

The mainline station is situated to the east of the city centre and provides links to London and the Midlands with the fastest journey time to London Liverpool Street being c. 1 hour 50 minutes.

Norwich is a vibrant city which has seen substantial development over the past fifteen years. This has primarily been in the retail, leisure and residential sectors in and around the city centre.

3 4 5 Over 10 million day tourists and 1.5 million overnight visitors are attracted to Norwich each year LOCATION Norwich is the main centre of East Anglia and dominates a large primary catchment area, which encompasses much of eastern Norfolk. It has a resident population of 132,512 (2011 Census) and a primary catchment population of 895,000. The city lies approximately 110 miles to the north east of London via the A11/M11 and about 45 miles to the north of Ipswich via the A140/A14. The mainline station is situated to the east of the city centre and provides links to London and the Midlands with the fastest journey time to London Liverpool Street being c. 1 hour 50 minutes. The city also benefits from an expanding airport with a regular route to Schipol and internationally thereafter. Norwich is a vibrant city which has seen substantial development over the past fifteen years. This has primarily been in the retail, leisure and residential sectors in and around the city centre. Subsequently, Norwich was ranked 13th in the UK by Javelin Group s Venuescore as a leading retail destination. Chapelfield, Castle Mall and Riverside are well established destinations and occupiers provide a good mix of retail and leisure brands; Chapelfield is anchored by House of Fraser. The city centre is a major destination in its own right and benefits from the presence of John Lewis, Debenhams, Marks and Spencer, Jarrolds and an historic covered market. Norwich has two universities; UEA, a top 15 university, with c. 15,000 students and the second highest graduate retention rate in the UK and Norwich University of the Arts, which is smaller at c. 2,000 students, with a city centre campus. The city is also a major tourist destination, having two cathedrals, a castle, museums, five theatres and galleries. There is also an extensive array of shops, restaurants and bars. Over 10 million day tourists and 1.5 million overnight visitors are attracted to the city each year, with tourism being worth about 700 million per year to the city and supporting 12,000 jobs. The local economy is dominated by a number of key long established employers concentrated in the finance and manufacturing sectors. Major employers within the city include Aviva, Marsh, Virgin Money, Moneyfacts, Archant, Kettle Foods, PWC and Anglian Windows. There are also major employers on the outskirts of the city, including Lotus Cars and Broadland Business Park. The city has an established reputation for food research and the Norwich Research Park (NRP) is one of the leading classes for this type of development. A 26 million Government grant has enabled the second phase of development at NRP. GRAPES HILL WATERMANS YARD BARN RD CHAPELFIELD GARDENS OAK ST WEST WICK ST POTTERGATE ST GILES ST BE THEL S T T HEATRE ST DUKE ST COLEGATE ST GEORGES ST ST AND REWS ST CASTLE ANGLIA SQUARE SHOPPING CENTRE ST CRISPINS ROAD MEADOW FISHERGATE WHITEFRIARS CASTLE MUSEUM & GALLERY UNIVERSITY OF THE ARTS FERRY LANE CATHEDRAL PRINCE OF WALES RD BISHOPGATE FOUNDRY COURT A1242 ROSARY RD THEATRE ROYAL CASTLE MALL UNION ST INTU CHAPELFIELD A11 VICTORIA ST BUS STATION SURREY ST BERT ST KIN G ST ROU EN RD RAIL STATION RIVERSIDE RETAIL PARK Not to Scale - For Identification Purposes Only.

6 7 The portfolio has been consistently occupied at 100% PORTFOLIO SUMMARY The portfolio comprises 48 apartments, 24 garages, 15 off-street surface car parking spaces and three

The owner constructed the buildings in 2004 and 2006 respectively and has managed them since completion.

White goods and cooking appliances are included within the portfolio. The majority of tenants are professional / working people, plus a few mature students. There are no DSS tenants.

Generally most tenants have stayed for over six months and there are current tenants who have been in occupation over 10 years.

4 6 7 The portfolio has been consistently occupied at 100% PORTFOLIO SUMMARY The portfolio comprises 48 apartments, 24 garages, 15 off-street surface car parking spaces and three retail units across two properties: Foundry Court, Prince of Wales Road, NR1 1NS and Watermans Yard, Westwick Street, NR2 4SZ. The owner constructed the buildings in 2004 and 2006 respectively and has managed them since completion. The properties have been maintained to a good standard with general maintenance and capital expenditure occurring in between tenancies. White goods and cooking appliances are included within the portfolio. The majority of tenants are professional / working people, plus a few mature students. There are no DSS tenants. The portfolio has been consistently 100% occupied. The minimum tenancy length offered is six months and the average tenancy length is c. 18 months. Generally most tenants have stayed for over six months and there are current tenants who have been in occupation over 10 years. Property Foundry Court Watermans Yard Residential Units Commercial Units Garages Parking Spaces Residential Income PA Commercial Income PA Total Income PA Residential ERV* Commercial ERV* Total Market Rental Value ,120 30, , ,800 36, , , , , ,200 Foundry Court Totals ,160 30, , ,000 36, ,500 *Estimated Rental Value Foundry Court Watermans Yard Watermans Yard

8 9 FOUNDRY COURT, NR1 1ND Foundry Court completed in 2004 and comprises 24 self-contained apartments (three x one bedroom apartments, 20 x two bedroom apartments and one x three bedroom apartment),

Six of the apartments are ground and first floor duplexes with direct access.

However, there is an opportunity to add value through light refurbishment.

1 miles to the east and provides direct service to London Liverpool Street in as little as one hour 47 minutes, every half an hour.

5 8 9 FOUNDRY COURT, NR1 1ND Foundry Court completed in 2004 and comprises 24 self-contained apartments (three x one bedroom apartments, 20 x two bedroom apartments and one x three bedroom apartment), three commercial units, 12 garages and 11 surface car parking spaces. The parking facilities service the residential aspect of the property. Six of the apartments are ground and first floor duplexes with direct access. Since completion the properties have received general capital expenditure and have therefore been maintained to a good standard. However, there is an opportunity to add value through light refurbishment. Foundry Court is situated on the Prince of Wales Road, which is one of the main links from the city centre to Norwich railway station. The station is located approximately 0.1 miles to the east and provides direct service to London Liverpool Street in as little as one hour 47 minutes, every half an hour. Norwich Cathedral and The Close, which is the largest English cathedral precinct at 44 acres, is situated c. 0.2 miles to the north. All three retail units are in a prominent position fronting the Prince of Wales Road. The local council have just announced a 2.6 million regeneration plan aimed at the Prince of Wales Road, which will improve the flow of pedestrian and vehicle traffic. The prime retail area is situated c. 0.4 miles to the west of the property. The estimated market rental value of the residential and commercial units is 218,300, reflecting a rental increase of 8.05%. Foundry Court Residential Tenancy Schedule Apartment Floor NSA* Sq m. NSA* Sq ft. No. of Bedrooms Parking Facility Let with Flat Income PCM Income PA 1 First ,900 2 First Garage 575 6,900 3 First Garage 550 6,600 4 Second Garage 575 6,900 5 Second ,600 6 Second Space 575 6,900 7 Third Garage 595 7,140 8 Third Space 575 6,900 9 Third , Ground & First Garage 595 7, Ground & First , Second Garage 595 7, Second Garage 575 6, Third Garage 550 6, Third , Ground & First Garage 650 7, Ground & First Space 625 7, Second Space 595 7, Second Garage 595 7, Third Garage 595 7, Third Space 595 7, Ground & First Garage 550 6, Ground & First Space 625 7, Second Space 795 9,540 Totals: 1,331 14,325 14, ,120 Foundry Court Commercial Tenancy Schedule All three retail units are demised within Foundry Court. Tenant Service Area sq ft. Income PA Lease Start Lease End Date Unexpired Lease Term Market Rental Value Rebel Inc. Tattoo Studio 561 9, July months 10,000 Linkup Estate Agent , January months 12,000 WMG Car Leasing 586 9, November months 12,500 Total 1,734 30,915 36,500 New terms have been agreed with Rebel Inc. based upon a new lease expiring in 2023 at a rent of 10,000 per annum, subject to a break clause exercisable by the tenant after July 2019 with a three month notice period. *Net Sales Area

10 11 WATERMANS YARD, NR2 4SD Watermans Yard completed in 2006 and comprises 24 self-contained apartments (23 x two bedroom apartments and one x three bedroom apartment), four surface car parking

Watermans Yard is situated on Westwick Street, which is approximately 1.0 mile to the north west of Norwich railway station and c. 0.

St Benedicts Street, runs parallel to the south, which is a very vibrant part of the city centre with a number of independent bars and restaurant.

of Bedrooms Parking Facility Let with Flat Income PCM Income PA 1 Ground 65 703 2-625 7,500 2 First 65 703 2 Garage 650 7,800 3 Second 65 703 2 Space 675 8,100 4 Third & Fourth 90 974 3 Garage 795

6 10 11 WATERMANS YARD, NR2 4SD Watermans Yard completed in 2006 and comprises 24 self-contained apartments (23 x two bedroom apartments and one x three bedroom apartment), four surface car parking spaces and 14 garages. All of the apartments benefit from either a balcony or Juliet balcony. Four of the apartments are impressive duplex units and four have direct views over the River Wensum. Watermans Yard is situated on Westwick Street, which is approximately 1.0 mile to the north west of Norwich railway station and c. 0.5 miles to the north west of the main shopping area of the city centre. The River Wensum runs parallel to Westwick Street to the north of the site. St Benedicts Street, runs parallel to the south, which is a very vibrant part of the city centre with a number of independent bars and restaurant. The estimated market rental value is 211,200, reflecting a rental increase of 7.19%. Watermans Yard Tenancy Schedule Apartment Floor NSA* Sq m. NSA* Sq ft. No. of Bedrooms Parking Facility Let with Flat Income PCM Income PA 1 Ground ,500 2 First Garage 650 7,800 3 Second Space 675 8,100 4 Third & Fourth Garage 795 9,540 5 First Garage 650 7,800 6 Second ,800 7 Third Space 625 7,500 8 First Garage 650 7,800 9 Second Garage 650 7, Second Garage 795 9, Third Garage 695 8, Ground & First Garage , Second & Third Garage 800 9, Third , Ground , Ground , First Garage 675 8, First Space 725 8, First Garage 695 8, Second Garage 695 8, Second , Second Garage 675 8, Ground & First Space 650 7, First Garage 695 8,340 Totals: 1,519 16,345 16, ,040 *Net Sales Area

12 13 THE RESIDENTIAL MARKET Capital Value Growth Price Vs Peak Rental Value Heat Maps Average Rents & Rental Growth - NR1 Average Rents & Rental Growth - NR2 40% 900 900 30% 800 800 Price vs peak

England England & Wales Average monthly asking rent, 1 bed properties - Q3 Over 650 550-600 500-550 450-500 Under 450 0 Q4 2015 Q1 Q2 Q3 Q4 Q1 Q2 Q3 1 Bedroom Flat 2 Bedroom Flat 3 Bedroom Flat 0 Q4

7 12 13 THE RESIDENTIAL MARKET Capital Value Growth Price Vs Peak Rental Value Heat Maps Average Rents & Rental Growth - NR1 Average Rents & Rental Growth - NR2 40% % Price vs peak 20% 10% 0% -10% -20% Average Eents PCM Average Eents PCM % Norwich Norfolk East of England England & Wales Average monthly asking rent, 1 bed properties - Q3 Over Under Q Q1 Q2 Q3 Q4 Q1 Q2 Q3 1 Bedroom Flat 2 Bedroom Flat 3 Bedroom Flat 0 Q Q1 Q2 Q3 Q4 Q1 Q2 Q3 1 Bedroom Flat 2 Bedroom Flat 3 Bedroom Flat Source: Land Registry Source: Land Registry. Source: Rightmove Source: Rightmove The Price Vs Peak graph shows average capital value growth of residential property in the stated locations from In Norwich average residential capital values have increased by 22%, which reflects 2% above Norfolk and 3% above England & Wales. Average monthly asking rent, 2 bed properties - Q3 Over Source: Land Registry Under 650 The above graph demonstrates the average rent per calendar month (PCM) per unit type from Q to Q3, for the postal code location of NR1. The average rental compound annual growth rate (CAGR) from 2015 to in NR1 across one, two, and three bedroom flats was 4.3%. The rental CAGR for Foundry Court during the same period was 1.4%. The average rents PCM per unit type in NR1 in Q3 were: one bedroom: 644, two bedroom: 759 and three bedroom: 810. Currently the average rents PCM in Foundry Court are: one bedroom: 560, two bedroom: 590 and three bedroom: 714. The above graph demonstrates the average rent per calendar month (PCM) per unit type from Q to Q3 for the postal code location of NR2. The average rental CAGR from 2015 to in NR1 across one, two, and three bedroom flats was 4.9%. The rental CAGR for Watermans Yard for during the same period was 2.1%. The average rents PCM per unit type in NR1 in Q3 were: one bedroom: 569, two bedroom: 727 and three bedroom: 867. Currently the average rents PCM in Watermans Yard are: two bedroom: 674 and three bedroom: 795 (one unit). The aforementioned data analysis for both Foundry Court and Watermans Yard supports the fact that the rents have not been pushed over the last three years, in order to maintain a 100% occupancy rate. Therefore, the portfolio has an attractive reversionary rental income, which could be assessed through active management and rental growth. Savills House Price Forecast Savills Rental Growth Forecast Location year compound growth UK 1.0% 2.5% 5.0% 2.5% 2.5% 14.2% East Midlands 1.0% 3.0% 5.0% 2.5% 2.5% 14.8% East of England 0.5% 2.5% 4.0% 2.0% 2.0% 11.5% South East (excluding London) 0.5% 2.5% 4.0% 2.0% 2.0% 11.5% year compound growth UK (excluding London) 2.5% 2.5% 3.0% 3.5% 3.5% 15.5%

8 FURTHER INFORMATION Tenure Both properties are held freehold. Method of Sale The portfolio is offered for sale, by way of private treaty, as one lot. Offers individually for either Foundry Court or Watermans Yard will also be considered. Offers are sought for the freehold interest/s subject to contract. VAT Both properties are not elected for VAT. Data Room Further Information can be found on the Savills Data Room: Contacts Piers de Winton MRICS Director - Residential Capital Markets pdewinton@savills.com James Watkins MRICS Surveyor Residential Capital Markets jwatkins@savills.com Arthur Morgan MRICS Associate Norwich amorgan@savills.com Viewings Viewings are strictly by appointment via the vendor s sole selling agent, Savills. Please contact either Arthur Morgan or James Watkins to make an appointment. Important Notice Savills, their clients and any joint agents give notice that: 1. They are not authorised to make or give any representations or warranties in relation to the property either here or elsewhere, either on their own behalf or on behalf of their client or otherwise. They assume no responsibility for any statement that may be made in these particulars. These particulars do not form part of any offer or contract and must not be relied upon as statements or representations of fact. 2. Any areas, measurements or distances are approximate. The text, photographs and plans are for guidance only and are not necessarily comprehensive. It should not be assumed that the property has all necessary planning, building regulation or other consents and Savills have not tested any services, equipment or facilities. Purchasers must satisfy themselves by inspection or otherwise. Designed and Produced by Savills Marketing: February 2018

On behalf of Receivers 19.5 years unexpired with no break options Highly secure income Spirit Group (SF - 366m) Tenant acquired by Greene King Plc in

On behalf of Receivers 19.5 years unexpired with no break options Highly secure income Spirit Group (SF - 366m) Tenant acquired by Greene King Plc in July 2015 City centre location within Norwich s leisure