In the meantime, if I can be of any further assistance please do not hesitate to contact me or my colleague, Mark Dansky (DDI: ).

Transcription

1 8 May 2017 Dear Investor CAPITA SHEFFIELD I have pleasure in attaching a unique investment opportunity secured to 5A1 covenant for in excess of 22 years subject to annual rental increases throughout the term. We would like to secure terms with a purchaser within a relatively short time frame and therefore kindly request if this opportunity of interest to come forward with a proposal as soon as possible. In the meantime, if I can be of any further assistance please do not hesitate to contact me or my colleague, Mark Dansky (DDI: ). Yours sincerely JEREMY M D HODGSON Partner For Allsop LLP DL M E jeremy.hodgson@allsop.co.uk Property Consultants. Allsop is the trading name of Allsop LLP, a limited liability partnership, registered in England and Wales with number OC315531, whose registered office is at: 33 Wigmore Street, London W1U 1BZ. A list of members is available for inspection at this address. Regulated by RICS. Offices in West End, City, and Leeds. Allsop LLP 33 Wigmore Street London W1U 1BZ T +44 (0) F +44 (0) DX Soho Square

2 LONG LET OFFICE INVESTMENT

3 INVESTMENT SUMMARY Long let prime Grade A office investment with annual uplifts Let to Capita Business Services Ltd with a guarantee from Capita PLC Lease expiry 22 December 2039 thus providing an unexpired term of 22.6 years Annual RPI rental increases between 0% & 3% per annum 5A1 D&B covenant Passing rent of 1,076,715 pax equating to a low psf Totalling 61,638 sq ft (5, sq m) Freehold Limited Grade A office supply with headline rents psf Offers in excess of 20,500,000 (Twenty Million, Five Hundred Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects an attractive net initial yield of 4.92% and the following profile based on 3%* uplifts: % % % % % *RPI forecast data sourced from The Office for Budget Responsibility.

4 LOCATION & SITUATION Sheffield is the fourth largest city in the UK and located in South Yorkshire with an estimated population of over 550,000. The city centre hosts both Sheffield City and Sheffield Hallam Universities which has stimulated regeneration of secondary office buildings. Major employers in the city include Sheffield Teaching Hospitals NHS Trust, HSBC, Home Office, Irwin Mitchell and Aviva. Hartshead House comprises an HQ office building located adjacent to, and benefitting from direct access, to Sheffield Parkway (), the primary inner ring road of Sheffield and the primary arterial route to Junction 33 of the M1 Motorway. The property is situated immediately to the east of the Sheffield Basin, the head of the Sheffield and Tinsley Canal, and home to a number of major national occupiers including Nabarro LLP, Regus, Bizspace and a Hilton Hotel. Sheffield Rail Station is situated approximately 0.7 miles to the south west accessed via dedicated walkways and roads lying adjacent to the main concentration of prime Grade A office accommodation within Sheffield City Centre. TENANCY The property is let in its entirety on a FRI lease to Capita Business Services Ltd with a guarantee from Capita PLC on a lease expiring 22 December 2039 with no tenant break options. The rent is increased on an annual basis, being equivalent to the increase in the Retail Price Index, subject to a minimum increase of 0% per annum and a maximum increase of 3% per annum. The current passing rent is 1,076,715 pax ersity field Upper Hanover St Infirmary Rd Netherthorpe Rd Penistone Rd Brook Hill Hanover Way B6070 Rutland Rd Hoyle St Broad Ln Hicks St Rutland St B6074 Burton Rd Ne epsen d Ln B6539 TENURE Freehold B6070 H arv est Ln B6074 Woodside Ln Rugby St Harvest Ln Pilsmoor Rd Pilsm oor Rd Mowbray St Gibraltar St Moorfield s Tenter St Chatham St Corporation St TOWN CENTRE ACCOMMODATION Derek Dooley Way Nursery St Shoreham St d 09 Wicker Blonk St Castlegate 35 Bumgreave Rd Wicker Sheaf St Sheffield Suffolk Rd Exchange Pl Furnival Rd B6073 B6071 B Spital Hill 35 B6080 Gower St Furnival Rd Talbot St B6071 Bernard St B6070 Duke St Duke St Sutherland St Attercliffe Rd 09 Savile St Derek Dooley Way Sheffield Pkwy The property comprises a modern attractive, high quality open plan office accommodation developed in totalling 61,638 sq ft (5, sq m) arranged over basement, ground and seven floors. Sheaf St A6 1 St Johns Church Park B6083 Carlisle St E 78 Effingham Rd B6073 Bern ard Rd B6071 A57 Sheffield Pkwy City Rd B6070 Savile St E 09 Fred Mulley Rd 09 Attercliffe Rd A57

5 COVENANT Capita Business Services Ltd is the leading outsourcing company in the UK controlling over 20% of market process. Capita services include central government, education, transport, health, life and pensions, insurance, and other private sector organisations (including financial services). Capita is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index. Capita Business Services Ltd have a Dun & Bradstreet rating of 5A1 the most recent rent accounts are as follows: Tenant Year Ending Turnover Pre-Tax Profit Total Net Worth D&B Rating Capita Business Services Ltd 31 Dec ,319,754, ,946, ,577,000 5A1 31 Dec ,210,422, ,297, ,066, Dec ,066,320, ,882, ,494,000 RETAIL PRICE INDEX The Office of Budget Responsibility is forecasting the following RPI growth for the next 5 years: % 3.6% 3.1% 3.1% 3.2% Source: Office of Budget Responsibility.

6 SHEFFIELD OFFICE MARKET Due to limited supply headline rents for Grade A office accommodation have increased in 2017 to psf. Prior to this, rents achieved were constrained to psf for Grade A office accommodation largely due to a lack of availability of high quality office accommodation. Current total availability equates to a low vacancy rate of 7.7% which is well below the national average of 9.7%. Speculative development in 2017 looks set to reach the highest levels seen since the Global Financial Crisis. Phase 2 at Sheffield Digital Campus, will provide over 80,000 sq ft of office space, whilst Steel City House will provide a further 67,000 sq ft. Furthermore, Re-volution 2, which is due to complete by the end of the year, will provide 54,800 sq ft of mixed use high-tech office and manufacturing space. There is currently a total of 581,000 sq ft under construction across the Sheffield market, of which over 53% is expected to complete after The total under construction equates to 5.0% of existing stock, the figure on average across the rest of UK centres is 1.2%. HARTSHEAD HOUSE Source: Promis

7 DATAROOM For access to the Allsop Dataroom please use the following link: PROPOSAL Offers in excess of 20,500,000 (Twenty Million, Five Hundred Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects an attractive net initial yield of 4.92% and the following profile based on 3%* uplifts: % % % % % *RPI forecast data sourced from The Office for Budget Responsibility. For further information or to make arrangements for viewing please contact: Jeremy Hodgson jeremy.hodgson@allsop.co.uk Mark Dansky mark.dansky@allsop.co.uk Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. Design CommandD