SAPPHIRE - Lewis Ellis

1 SAPPHIRE COURTSTREETSBROOK ROAD I solihull I B91 1 QTA PRIME ASSET MANAGEMENT & REPOSITIONING OPPORTUNITYSOLIHULL TOWN CENTRESAPPHIRE COURTSTREETSBROOK ROAD34681011912131416715215 House of FraserMarks & SpencerMell Square Shopping CentreJohn LewisPremier InnTouchwood Shopping CentreCouncil O cesSolihull Police StationProposed WaitroseParagonNational GridXoserve/National GridnpowerSolihull StationDecked Station Car ParkSolihull Fire Station12345678910111213141516 Situated immediately adjacent to solihull rail station and a short walk from the town centre retail and leisure facilities.

2 SAPPHIRE Court is currently an office development comprising six interlinking blocks totalling 88,375 sq ft (8,286 sq m) NIA. The investment is significantly underpinned by office redevelopment or alternative use values including residential or senior living (subject to planning) and hotel uses. Freehold. SAPPHIRE East (Blocks A, B and C) is let to the Environment Agency (49%), The First Secretary of State (40%) and a vacant suite (11%). The AWULT is years to expiry and years to break. SAPPHIRE West (Blocks D, E and F) is vacant and has been delisted so as not to attract vacant rates.

3 solihull is regularly named one of the UK s best places to work, live and shop. At the end of 2013, based on their Quality of Life index, uSwitch named it the Best Place to Live in the UK. Prime office rents in the solihull area currently stand at per sq ft, as witnessed at Interserve House. This is a significant discount to Grade A rents in Central Birmingham which are currently in excess of per sq ft. Prime residential sales values in central solihull for apartments are now over 375 per sq ft.

4 Offers sought, on an unconditional basis, in excess of 10,000,000 (Ten Million Pounds), subject to contract and exclusive of VAT. A purchase at this level equates to an overall low capital value of 113 per sq ft (based on Net Internal Areas).INVESTMENTCONSIDERATIONSThe investment comprises a rare opportunity to acquire a prime acre site in solihull town centre, with numerous opportunities to improve the existingasset through repositioning or redevelopmentSAPPHIRE COURT I STREETSBROOK ROAD I solihull I B91 1QT0203 SAPPHIRE WESTSAPPHIRE EASTCONSENTED HOTELDEVELOPMENT SITE0405 There are numerous opportunities to substantially increase the current value of the property and potentially deliver a statement development in a prosperous town centre.

5 The current income provided by government strength tenants in SAPPHIRE East for a minimum of years provides an income return whilst asset management angles can be initiated. OFFICE INITIATIVES Refurbish existing SAPPHIRE West office buildings to Grade A standard to take advantage of the lack of currently available Grade A office accommodation in solihull town centre. Undertake phased redevelopment of the whole site into two or more new Grade A office buildings and consider increasing massing on site, subject to planning.

6 Within SAPPHIRE East remove The First Secretary of State break in 2021 and let vacant office suite. RESIDENTIAL INITIATIVES Convert SAPPHIRE West into residential apartments under existing Permitted Development Rights, for which planning has been obtained. Secure planning permission to convert SAPPHIRE East upon vacant possession. Alternatively, consider a phased redevelopment of the whole site for new build residential apartments, subject to planning. The site is of such a size and location to explore Private Rented Sector (PRS) investment.

7 ALTERNATIVE INITIATIVES Planning has been secured for the development of a 99-bed hotel with associated conference and restaurant facilities on the existing car park to the south of the site. Explore alternative land uses including senior living, educational and healthcare. Liaise with Network Rail and solihull Council to provide direct link to solihull rail station and associated bus stops through the existing multi deck adjacent car MANAGEMENT &DEVELOPMENT INITIATIVESThe investment is significantly underpinnedby office redevelopment or alternative use valuesincluding residential, senior living and hotel usesSAPPHIRE COURT I STREETSBROOK ROAD I solihull I B91 1 QTCONNECTING PEOPLES olihull s central location has excellenttransport links by road.

8 Rail and airSAPPHIRE COURT I STREETSBROOK ROAD I solihull I B91 1QT ROAD solihull is located at the centre of the national motorway network and the town centre is approximately 1 mile ( ) west of Junction 5 of the M42 Motorway. This in turn connects to the M5, M6 and M40 motorways. RAIL solihull railway station, adjacent to SAPPHIRE Court, is served by both Chiltern Railways and London Midland. solihull will also benefit from the proposed HS2 station at Birmingham Airport. AIR Within solihull Borough lies Birmingham Airport, the seventh largest in the UK.

9 The airport is one of the fastest growing in the UK, handling circa million passengers in 2014 and served by over 60 airlines operating scheduled and charter flights to over 125 domestic, European and transatlantic Motorway NetworkHS1 & HS20607125destinations served byBirmingham airportDirect train to London90minsBirminghamCity Centre7 milesby roadLOCATIONS olihull is one of the region s most desirable office,retail and residential locationsSolihull is a sub-regional centre in the heart of the West Midlands conurbation and is regarded as one of the region s most desirable office, retail and residential locations.

10 ROADS olihull is located approximately 7 miles (11 km) south east of Birmingham city centre, 13 miles (21 km) west of Coventry, and 14 miles (22 km) north west of Warwick. London is approximately 120 miles (193 km) to the south east and Manchester approximately 80 miles (129 km) to the north railway station, adjacent to SAPPHIRE Court, has the following fastest direct journey times:Birmingham (Moor Street/Snow Hill)15 minutesWarwick17 minutesStratford-upon-Avon28 minutesHigh Wycombe75 minutesLondon (Marylebone)90 minutesAIRB irmingham Airport is located 4 miles ( km) north of solihull town centre, close to the intersection between the M6 and M42 motorways and is linked to both Birmingham International rail station and the National Exhibition Centre (NEC).