F R E E H O L D O F F I C E I N V E S T M E N T O P P O R T U N I T Y

BARLEY HOUSE OAKFIELD GROVE, CLIFTON, BRISTOL, BS8 2BN

BARLEY HOUSE, OAKFIELD GROVE, CLIFTON, BRISTOL, BS8 2BN

INVESTMENT SUMMARY

t LocatedintheaffluentareaofClifton.t Georgianofficebuildingarrangedovergroundandtwoupperfloorstotalling14,499sqft.t Freehold.t FullylettostrongcovenantTheUniversityofBristoluntil1stNovember2024.t Lowbaserentof£220,000perannum(£15.17psf)withananticipatedupliftat2019review.

t Offersaresoughtinexcessof£3,600,000 (Three Million Six Hundred Thousand Pounds)subjecttocontractandexclusiveofVAT.t Apurchaseatthislevelreflectsanattractivenet initial yield of 5.74%, afterallowingforpurchaser’scostsof6.51%.t Capitalvalueof£249 psf.

BARLEY HOUSE, OAKFIELD GROVE, CLIFTON, BRISTOL, BS8 2BN

LOCATIONBristolisthemajorregionalcentreofthesouthwest,approximately118mileswestofLondon.ThecitybenefitsfromanenviablelocationatthejunctionoftheM4andM5motorways,providingaccesstothenorthandsouthofEngland,aswellasadirectrouteeastwardstoLondonandwestintoWales.

TheCity of Bristol is the 5th largest conurbation in theUK and thecapital of the SouthWest.With an estimated population of 550,000andapproximately1.6million residentswithin thewiderurbanarea,Bristolbenefitsfromthe3rdhighestGDPpercapitaafterLondonandNottingham.

Bristolhasbenefittedgreatlyfromtheimpactof‘inshoring’andisnowoneofthelargestemploymentbasesforbanking,financeandinsurancesectors outside London. Bristol also has a flourishing professionalsectorandinrecentyearssomenotablecompanyrelocationsinclude;the Ministry of Defence Equipment & Support, Hewlett PackardNational Research Laboratories, Friends Life Headquarters, LloydsBankNationalDebtRecoveryHeadquarters,RollsRoyce,Airbus,andtheBBC.TheSundayTimesrecentlyvotedBristolthebestcitytoliveinBritain2017.

SITUATIONBarleyHouseislocatedwithintheaffluentareaofCliftonapproximately1miletotheeastofBristolcitycentre.CliftonisrenownedforhavingsomeofthemosticonicspotsinBristol,includingBrunel’sfamousSuspensionBridge,theObservatory,BristolZooandtheDurdhamDowns.Theareaisalsohometoseveralupmarketretailers,cafes,pubsandrestaurants.

Theproperty is locatedonOakfieldGroveand isconvenientlypositionedbetweenWhiteladiesRoadandCliftonVillage.Theareasurroundingthepropertyispredominantlyhighvalueresidentialandthereisalackofofficesupplyinthislocation,largelyduetotheimplementationofPermittedDevelopmentRights.NearbyoccupiersincludetheBBC,Handlesbanken,BristolLidoSpa,StarbucksandTheIvy.

Millennium Sq

Lloyds Amphitheatre

Bristol Cathedral

Bristol Museum

Bristol UniversityClifton Campus

Bristol UniversityStudents Union

Bristol Royal Hospital For Children

Queen Sq

Brandon Hill

Cabot Tower

Berkeley SqVictoria Sq

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3 11

12

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BRISTOL

BARLEY HOUSE

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BARLEY HOUSE, OAKFIELD GROVE, CLIFTON, BRISTOL, BS8 2BN

DESCRIPTIONThepropertycomprisesan‘L’shapedGeorgianofficebuildingarrangedovergroundandtwoupperfloors.Thepropertywasbuiltincirca1936andthespecificationincludes;

t Perimetertrunkingt Centralheatingwithwallmountedradiatorst Suspendedtileceilingt Recessedfluorescentstriplightingt Carpetedfloors

Externally, there is provision for 23 car parking spaces to the front of the buildingreflectingagoodoverallparkingratioof1:630sqft.BarleyHousehasbeenalteredtointerconnecttotheUniversity’sadjoiningbuildingOakfieldHousethatisunderdifferentownership.

ACCOMMODATIONWehavebeenprovidedwiththefollowingnetinternalareas;

Floor Description Sqm Sqft

Ground OfficeG1 339.6 3,655

Ground OfficeG2 126.5 1,362

First Office11 335.0 3,606

First Office12 150.0 1,615

Second Office21 251.4 2,706

Second Office22 144.5 1,555

Total 1,347.0 14,499

65.8m

14

5

9

27

21

22

16

(Childrens Nursery)

60.7m

63.1m

58.8m

63.4m

Tank (Cov)

LB

OAKFIELD P

LACE

SO

UTH

LEIG

H R

OAD

OA

KFIE

LD

GR

OV

E

LEIG

H R

OAD

OAKFIELD ROAD

Lido

Spa

University

of Bristol or Barley House

Barley

House

31

31

12

Vicarage

28

Oakfield

20

15

18

43

to 20

1 to 4

Mansio

ns

2

26

33

11

1

16

18a

12

Hotel

16

Arling

ton

Southleigh Mews

St P

aul's Church

24

36

25

9

21

PH

25

22

17a

17

17

34

House

El S

ub S

ta

Courtyard

The Coach Ho

26b

27

26

39

26

Reflecti

ons House

31

14

15 to 2

3

1 to 1

0

40 to 4

4

Pumping Station

32

House

22b

38

19

26a

120m 10m 20m 30m

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. © Crown Copyright. All rights reserved. Licence Number LIG0074.

Barley HouseOakfield RoadClifton, Bristol

BS8 2BN

Ordnance Survey © Crown Copyright 2018. All rights reserved.

Licence number 100022432. Plotted Scale - 1:1250

BARLEY HOUSE, OAKFIELD GROVE, CLIFTON, BRISTOL, BS8 2BN

TENUREFreehold.

TENANCYThepropertyisletinitsentiretytotheUniversityofBristol(onassignmentfromSmith&WilliamsonSolomonHareAuditLLP)foratermof30yearsexpiringonthe1stNovember2024.Theleaseisonfullrepairingandinsuringterms,subject to five yearly upward only rent reviews. The property produces acurrentrentalof£220,000perannumwhichequatesto£15.17psf.

BRISTOL OFFICE MARKET

The Bristol city centre office market comfortably exceeded the 10-yearannual take-upaverage (545,740sq ft) in2017, reaching614,000sq ft.Threedealsdominatedactivity:Dyson(28,718sqft)andUniversityofBristol(27,341sq ft) at1CathedralSquare,andSimmons&Simmons (26,985sq ft) at Aurora. All three deals took space during construction placingfurtherpressureonthesupplypipeline.BristolprovidesanextremelywellbalancedeconomywithtakeupcomingfromarangeofsectorsincludingTMT,Professional,ServicesandPublicAdministration.

Supplyremainsunderconsiderablepressureandtheoverallvacancyratestoodat3.0%atend-2017.ThenewGradeAvacancyrateremainsatzeroand the relaxationofPermittedDevelopmentRightscoupledwith robustdemandhasremovedaconsiderableproportionofpoorerofficestockfromthecitycentremarket.Thereisnorealsignofthispressurebeingalleviatedthroughcurrentpipelineactivitywithonly158,000sq ftdue tocompleteoverthenextsixmonths.

Headlinerentsforthecitycentreincreasedsignificantlyin2017,rising14%year-on-yearto£32.50persqft.Theoutlookfor2018remainsstrongandfurtherrentalgrowth isanticipatedbytheendof theyear.QuotingrentsonAuroraatFinzelsReach,theonlyspeculativeGradeAbuildingunderconstructionare£35.00persqft.

BARLEY HOUSE, OAKFIELD GROVE, CLIFTON, BRISTOL, BS8 2BN

ESTIMATED RENTAL VALUE Thepropertyproducesacurrentrentof£220,000perannumwhichequatestoalowlevelof£15.17psf.Thisrepresentsasignificantdiscountofroughly53%toprimeGradeABristolrents.Comparableleasingtransactionsareasfollows;

BRISTOL OFFICE INVESTMENT MARKET ThesupplyanddemanddynamicsoftheBristoloccupationalofficemarkethaveledtostronglevelsofinterestfromamixtureofprivateinvestors,propertycompaniesandinstitutions.ThevalueofofficeinvestmenttransactionsinBristoltotalled£429.96m(PropertyData)in2017andcitycentretransactionsaccountedfor£278.15m,reflecting65%ofthetotalvalue.

WehavesetoutbelowascheduleofrecentBristolcitycentreofficeinvestmenttransactions,thathighlightsthestrongyieldsbeingachieved;

Giventherentalevidence,weareoftheopinionthatanupliftinrentalvaluetoaminimumof£17.00persqftshouldbeachievableatthenextreviewin2019.Thiswouldequatetoanoverallrentalof£269,982perannum.Shouldthepropertybecomevacantuponexpiry,webelievethatthepropertyoffersasignificantrefurbishmentopportunitywhererentalvaluescouldbesignificantlyincreased.TheindividualfloorplatesareanidealsizefortheBristoloccupiermarket,andthepropertycouldbeletasawholeoronafloorbyfloorbasis.

Date Address Size(sqft) Tenant Rent(£psf) Term/BreakQ42017 3rdFlr1BrunswickSquare 11,782 AMI £22.50 10/5Q42017 2ndFlrStCatherinesCourt 6,987 HargreavesLansdown £28.50 10/5Q42017 14/15QueenSquare 2,170 LGTVestra £26.50 10/5Q32017 Pt4thFlr,NewminsterHouse 2,724 SimitiveLtd £17.00 5/3Q32017 GrndFlrCentral,TheQuorum 2,250 TalentInternational £19.00 5/3Q12017 2ndFlr,VintryHouse 5,200 FatMedia £18.00 5/3

Date Address Tenant Size Price CapVal(£psf) NIY Comments

Q42017 1CathedralSquare,Bristol UniversityofBristol& DysonTechnologyLtd 56,059 £33,500,000 £597 5.00%

Comprehensivelyrefurbishedin September2017.WAULTof12.4yearstoexpiryand7.6yearstobreak.

Q42017 90VictoriaStreet Multi-let 24,365 £9,000,000 £369 5.35% Offmarket.LLH.WAULTof3yearstoexpiry.

Q32017 NewBondHouse,Bristol Multi-let 21,955 £3,800,000 £173 5.43% WAULTof3.11yearstoexpiry.Q32017 66QueenSquare,Bristol KPMGLLP&Handelsbanken 61,498 £30,500,000 £495 5.25% Offmarket.WAULTof13yearstoexpiry.Q32017 1GeorgesSquare,BathStreet,Bristol ClarkeWillmott 68,660 £26,000,000 £378 5.50% 5.75yearstoexpiryQ32017 TheCube,LowerLambStreet,Bristol Fraser-NashConsultancyLtd 14,738 £5,116,225 £347 5.33% 4.5yearstoexpiryQ12017 WhiteladiesHouse,Bristol Handelsbanken&Filmsat59 15,501 £4,153,000 £268 6.08% WAULTof4.83yearstoexpiry.

BARLEY HOUSE, OAKFIELD GROVE, CLIFTON, BRISTOL, BS8 2BN

PROPOSAL Offers are sought in excess of £3,600,000 (Three Million, Six Hundred Thousand Pounds),subjecttocontractandexclusiveofVAT.Apurchaseatthislevelreflectsanet initial yield of 5.74%,anda reversionary yield of 7.04%baseduponourERV,afterpurchaser’scostsat6.51%.Thisreflectsalowcapitalvalueof£249persqftoverall.

COVENANT STATUS TheUniversityofBristolwasfoundedin1876asUniversityCollege,Bristolandisranked44intheQSWorldUniversityRanking.

In2017theUniversityGrouprecordedasurplusbeforeothergainsandlossesof£47.2million,arecordyearandup21%comparedto2016.Capital investmentequatedtoover£100mandresearchincomefromcompetitivelywongrantswasup7.3%to£159.9million.TheUniversitycontinueditssustainedgrowthinstudentnumbers,growingby7%intheyearto21,808studentsinfulltimeeducation.

TheUniversityofBristolareoneof the largestoccupiers in theCliftonareawith themajority of teaching taking place on theirmainCliftonCampus. The campus spansawidearea,borderedtothenorthbyTyndallsParksRoadandtothesouthbyParkRowandtheHHWillsMemorialBuilding.TheRichmondBuilding,hometotheBristolStudentsUnion isashortwalk from themaincampusand located300m tosouthofBarleyHouse.

EPC ThepropertyhasanEPCratingofC72.

VAT Theproperty iselected forVATand thereforeVATwill bepayableon thepurchaseprice.WewouldanticipatethesaletobedealtwithbywayofaTransferofaGoingConcern(TOGC).

FURTHER INFORMATION

Forfurtherinformation,pleasecontactthesoleagents;

JLLforthemselvesandforthevendorsorlessorsofthispropertywhoseagentstheyare,givenoticethat:-a.theparticularsaresetoutasageneraloutlineonlyforguidanceanddonotconstitute,norconstitutepartof,anofferorcontract;b.alldescriptions,dimensions,referencestoconditionandnecessarypermissionsforuseandoccupation,andotherdetailsarebelievedtobecorrect,butanyintendingpurchasers,tenantsorthirdpartiesshouldnotrelyonthemasstatementsorrepresentationsoffactbutsatisfythemselvesthattheyarecorrectbyinspectionorotherwise;c.nopersonintheemploymentofJLLhasanyauthoritytomakeorgiveanyrepresentationorwarrantywhateverinrelationtotheproperty;d.Anyimagesmaybecomputergenerated.Anyphotographsshowonlycertainpartsofthepropertyastheyappearedatthetimetheyweretaken.©March2018JonesLangLaSalleIP,Inc.Allrightsreserved.

Oliver PaineJLLTel: +44 (0)117 930 5718oliver.paine@eu.jll.com

Ross WigleyJLLTel: +44 (0)117 930 5792ross.wigley@eu.jll.com