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. 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%).

2 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. 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. 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).

3 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. 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.

4 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. 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, 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.

5 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. 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.

6 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).Inward business investment into the region has led to the runway at the airport being extended in 2014 and the airport now handles direct flights to China, the Middle East and New Metropolitan Borough is renowned for its key economic assets, strategic transport infrastructure, high quality environment, aspirational housing and excellent schools, which are integral to its economic values have ensured that Solihull is a desirable place in which to live, work and invest.

7 The town centre is strong, vibrant and of high regional importance containing a wide variety of shops, businesses and civic services. Public and private sector initiatives include: Solihull rail station has seen a 250% increase in passenger traffic in 10 years rising to over annually in 2013/2014. This has led to a new deck car park being constructed. Touchwood shopping centre, anchored by John Lewis , currently comprises 650,000 sq ft of retail and leisure space. Planning is consented to add a further 115,000 sq ft / 30 units. Standard Life/Opus Land have obtained planning for a 28,000 sq ft Waitrose supermarket adjacent to John Lewis . IM Properties plan a phased redevelopment of the 750,000 sq ft Mell Square shopping centre. Premier Inn opened a 112-bed hotel and associated restaurant in August 2012 in Solihull town centre. Jaguar Land Rover announced in January 2015 they are to create a further 1,300 jobs at their Solihull plant to build their first sports utility vehicle.

8 This follows the recent launch and production of the new Jaguar XE at the plant which created 1,700 direct jobs. The National Exhibition Centre is the UK s largest and Europe s busiest. Adjacent to the NEC is the 16,000-person Arena. Both have seen upgrade expenditure in the last 5 years totalling 70 TollM54M42M40A449A454A449A449A448A456A45 6A435A441A452A4177A460A461A41A51A42A5A5A 38A34A41A45A46 BIRMINGHAMSUTTONCOLDFIELDCOVENTRYDUDLEYW ALSALLNUNEATONWOLVERHAMPTONCANNOCKLICHFI ELDBROWNHILLSBURNTWOODHALESOWENKIDDERMIN STERALVECHURCHSTUDLEYWARWICKREDDITCHBROM SGROVEWESTBROMWICHTAMWORTHM42 BIRMINGHAMSOLIHULLKENILWORTHHENLEY IN ARDENSAPPHIRE COURT I STREETSBROOK ROAD I SOLIHULL I B91 1QT0809 SOLIHULL TOWN PROFILE& DEMOGRAPHICSS olihull is an integral part of the West Midlands economy and the most productive in the regionSAPPHIRE COURT I STREETSBROOK ROAD I SOLIHULL I B91 1 QTDemographic and Business ProfileSolihull has a population of 206,700 (2011 census) and is considered a highly affluent borough in both the regional and national context.

9 This is characterised by above-average levels of income and home ownership and a high proportion of residents (50%) classified as belonging to the Prosperous Suburbs socio-demographic living environment, with a mix of urban and rural communities, key strategic sites, transport infrastructure and large amounts of green space are Solihull s key strengths, as evidenced by high levels of resident satisfaction with the area. Solihull residents also earn more than the UK average across all percentile groups with the positive wage differential increasing among the very highest , Solihull has a high level of home ownership ( of all households in 2011 compared to the UK average of 63%). There were 115,662 vehicles in Solihull in 2011, an average of for every household in the borough, compared to the UK average of and the West Midlands average of Nearly 41% of households in Solihull have two or more vehicles, significantly more than the UK average of 32%.

10 Solihull is an integral part of the West Midlands economy and the most productive in the region. The town supports Birmingham, the UK s second largest city, by being home to over 7,000 businesses employing more than 100,000 people. The workforce is recognised as being highly productive with GDP per capita of 130% of the national average, compared to a wider regional rate of 90%. The M42 Economic Gateway is a major economic growth driver in the Greater Birmingham and Solihull Local Enterprise Partnership (LEP) area and is home to key strategic assets and employers including Birmingham Airport, the National Exhibition Centre, Jaguar Land Rover, Birmingham and Blythe Valley Business Parks who draw in circa 85,000 workers to the Borough on a daily earnings 13%higher than thenational average7,000businesses,employing more than100,000peopleNECthe UK s largest and Europe s busiest exhibitioncentreVoted best placeto live inthe UK (uSwitch survey)Solihull has apopulation of206,700(2011 Census)