MULTI LET OFFICE INVESTMENT

LOCK HOUSE 2 CASTLE MEADOW ROAD

NOTTINGHAM NG2 1AG

OC

OCLOCK HOUSE 2 CASTLE MEADOW ROAD NOTTINGHAM NG2 1AG

OC OCLOCK HOUSE 2 CASTLE MEADOW ROAD NOTTINGHAM NG2 1AG

INVESTMENT CONSIDERATIONS

Located in the historic City of Nottingham

Excellent communications being situated 7 miles east of the M1 motorway (J25) and regular direct train services to London and Birmingham

Well presented, refurbished office building comprising approximately 1,568.7 sqm (16,885 sq ft)

Let to the strong covenants of Willmott Dixon Construction Ltd, MG Thurston Ltd & SJ Gelsthorpe Ltd t/a Cartwright King Solicitors and Browne Jacobson LLP

WAULT of 4.6 years to break, 7.5 years to expiry

Total topped up rent of £243,497.50 pa

Extensive car parking providing 31 spaces

Freehold

Future potential alternative uses including residential and student accommodation (STP)

We are instructed to seek offers in excess of £2,775,000 (Two Million, Seven Hundred And Seventy Five Thousand Pounds), subject to contract and exclusive of VAT reflecting an attractive net initial yield of 8.25% off the topped up rent and a low capital value of £164 psf assuming purchaser’s costs of 6.42%.

OCLOCK HOUSE 2 CASTLE MEADOW ROAD NOTTINGHAM NG2 1AG

LocationThe historic City of Nottingham lies at the heart of the UK and forms

the commercial and administrative hub for the East Midlands. It is

situated approximately 130 miles north of Central London and 50

miles north east of Birmingham. Nottingham benefits from excellent

communications with the M1 (J25) located approximately 7 miles to

the west, providing access to both the M69 and the M18.

Nottingham train station is located within the city centre, a five

minute walk from Lock House, providing direct rail services into

London St Pancras with a fastest journey time of approximately

1 hour 40 minutes. Regular train services run to Birmingham New

Street and Derby with journey times of approximately 1hr 15mins

and 20 minutes respectively.

Nottingham East Midlands Airport is located approximately 15 miles

to the south. Birmingham International Airport, the UK’s 5th largest

airport is located approximately 45 minutes drive to the south west.

The city has two world renowned universities with over 60,000

students providing a high quality graduate workforce.

BirminghamAirport

Nottingham CityAirport

LeicesterAirport

East MidlandsAirport

ManchesterAirport

A60

A61

A46

A52

A15

A15

A42

A47

A1

A6

A1

A606

A614

A619

A453

M1

M6

M6

M6

M56

M60

M54M42

M42

M69

A1 (M)

A1 (M)

M18

M5

M1

Stoke-on-Trent■

Crewe■

Chesterfield■

Rotherham■

Ransfield■

Boston■

Wolverhampton■

Kidderminster■

Telford■

Rugby■

Ketting■

■

Doncaster

■

Macclesfield

■

Warrington

Lincoln■

Peak

Dis

tric

t N

atio

nal P

ark

NOTTINGHAM

■

MANCHESTER

■

COVENTRY

LEICESTER■

DERBY■

BIRMINGHAM■

PETERBOROUGH■

SHEFFIELD■

Carrington Street

Carrington Street

Arkw

right Street M

eadows W

ayQueens Drive

Wilf

ord

Road

Wilf

ord

Stre

et

Traffic Street

Waterway Street West

She

rrifs

Way

Queen’s Road

Crocus S treet

Meadows Way

Meadows Way

Castle Meadow Road

Castle Meadow Road

Castle Meadow

Rd

Station Road

Tren

t Street

Cliff Road

Popham Street

High Pavement

Hamilton D

rive

Hope Drive

Crocus Street

Peveril Drive

Lent o n Road

Park Valley

Castle Road

Isabella Street

A6005

Castle Boulevard

Canal Street

A6008

A6008 M

aid Marian W

ay

A6008 A

6008

NOTTINGHAM

NOTTINGHAMCASTLE & GROUNDS

NOTTINGHAM CANALNOTTINGHAM CANALOC

Overflow

FB

Mowbray House

CCOverflow

27.9m

26.5m

26.6m

Bols

Bols

Bollards

MP Bollards

WIL

FO

RD

ST

RE

ET

Castle Lock

El Sub Sta

6

4

PH

2Lock House

0m 10m 20m 30m

Ordnance Survey © Crown Copyright 2016. All rights reserved. Licence number 100022432. Plotted Scale - 1:899

OC LOCK HOUSE 2 CASTLE MEADOW ROAD NOTTINGHAM NG2 1AG

Carrington Street

Carrington Street

Arkw

right Street M

eadows W

ayQueens Drive

Wilf

ord

Road

Wilf

ord

Stre

et

Traffic Street

Waterway Street West

She

rrifs

Way

Queen’s Road

Crocus S treet

Meadows Way

Meadows Way

Castle Meadow Road

Castle Meadow Road

Castle Meadow

Rd

Station Road

Tren

t Street

Cliff Road

Popham Street

High Pavement

Hamilton D

rive

Hope Drive

Crocus Street

Peveril Drive

Lent o n Road

Park Valley

Castle Road

Isabella Street

A6005

Castle Boulevard

Canal Street

A6008

A6008 M

aid Marian W

ay

A6008 A

6008

NOTTINGHAM

NOTTINGHAMCASTLE & GROUNDS

NOTTINGHAM CANALNOTTINGHAM CANALOC

© Crown Copyright, ES 100004106. For identification purposes only.

SituationThe property is situated at the junction of Castle Meadow Road and Wilfred

Street, adjacent to Nottingham Canal to the north and Castle Meadow

Business Park to the south. Wilford Street provides access to the A52 to the

south west and the city centre to the north east.

The immediate area is of predominantly office use with residential and

leisure occupiers nearby along the canal. Castle Wharf is situated a short

walk along the canal to the east and has been regenerated to provide a

number of leisure operators at the water’s edge in many of the old canal

buildings.

Nearby occupiers include Nottingham Magistrates Courts, HM Revenue

and Customs, Coral Bookmakers, Gala Leisure, Land Registry and

Nottinghamshire Archives.

The Broadmarsh shopping centre is located approximately 5 minutes walk

from the subject property which provides access into Nottingham City

Centre and a large supply of national multiple retailers. Nottingham City

Council have commenced work on a £250 million development in the intu

Broadmarsh Area to transform and regenerate the south gateway to the City.

DescriptionThe property comprising approximately 1,568.7 sqm (16,885 sq ft), was

constructed in 1997 and is spread over the ground, first and second floors.

Internally there is a single 8 person passenger lift with male and female WCs

provided within the central core at all floor levels. The specification of the

property includes comfort cooling, suspended ceiling with recessed lighting

and raised floors. Willmott Dixon Construction Ltd have added an additional

two air conditioning units as set out in the licence for alterations.

There is a car park to the front of the property providing approximately

31 car parking spaces.

TenureFreehold.

OCLOCK HOUSE 2 CASTLE MEADOW ROAD NOTTINGHAM NG2 1AG

Floor Tenant Area NIA (sq m)

Area NIA (sq ft)

Rent pa (Rent psf)

Lease Start Lease Expiry (Break)

Rent Review Comments

Ground Willmott Dixon Construction Ltd 489.3 5,266 £76,197.50 (£14.47)

15/02/2016 14/02/2026 (14/02/2021)

15/02/2021 Stepped rent as follows: 15/02/2016 - 03/02/2017: £76,197.50 pa 04/02/2017- 03/02/2018: £39,412.50 pa. The vendor will top up to £76,197.50. 04/02/2018 until review date: £76,197.50 pa. Lease is subject to a Schedule of Condition regarding the condition of the windows only. 10 car parking spaces.

First MG Thurston Ltd & SJ Gelsthorpe Ltd t/a Cartwright King Solicitors

537.4 5,785 £83,100.00 (£14.36)

09/06/2015 08/06/2025 (09/06/2020)

09/06/2020 The current rent passing is £41,550.00 pa. Vendor to top up remaining rent free to 08/12/2016. If the break is not exercised, half rent payable for 12 months from the break date (effectively 6 months rent free). 10 car parking spaces.

Second Browne Jacobson LLP 542.0 5,834 £84,200.00 (£14.43)

25/09/2012 30/11/2021 (30/11/2016)

25/09/2017 Break option not exercised. 3 months rent free from 6th year of the term and thereafter 12 months half rent (effectively 9 months rent free) to be topped up by the vendor. 11 car parking spaces.

Total 1,568.7 16,885 £243,497.50

Accommodation and Tenancy Schedule

Covenant InformationWillmott Dixon Construction Ltd – 00768173

D&B Rating: 4A1 - Minimum risk of business failure

Willmott Dixon are a privately run company established in 1852. They are experts in

construction, residential development and property support services. The company

currently employs over 3,500 people across the UK. For the year ending 31 December

2015 Willmott Dixon Construction Limited published a Turnover of £865,241,557,

Pre-Tax Profits of £17,299,830 and a Net Worth of £24,610,953.

Cartwright King Solicitors M G Thurston Limited – 06529871 S J Gelsthorpe Limited – 06530091

D&B Rating: B2 D&B Rating: B2

Lower than average risk of business failure Lower than average risk of business failure

Cartwright King Solicitors are a Legal 500 top tier firm and employ over 160 experts

in 12 areas of law. The company operates from 18 locations across the UK including

Nottingham, Manchester, Oxford, Birmingham and Leeds. For the year ending 30 April

2015 MG Thurston Limited published a Turnover of £58,707,596 and SJ Gelsthorpe

Limited a Net Worth of £237,546.

Browne Jacobson LLP - OC306448D&B Rating: H2

Lower than average risk of business failure

Browne Jacobson are a firm of solicitors specialising across both the public and

private sectors. Employing over 400 lawyers, with 109 partners, the company operates

nationwide with offices in Birmingham, Exeter, London, Manchester and Nottingham. For

the year ending 30 April 2015 Browne Jacobson LLP published a Turnover of £58,707,596.

OC LOCK HOUSE 2 CASTLE MEADOW ROAD NOTTINGHAM NG2 1AG

Nottingham Office MarketAt the end of 2015 Nottingham had an

estimated office stock of 10.6 million sq ft.

Office take up in the city centre averages

between 200,000 – 250,000 sq ft per annum.

The majority of take up is from occupiers

requiring less than 10,000 sq ft.

The city is home to over 50 regional and

national headquarters including Alliance Boots,

Capital One, EON, Experian, HM Revenue and

Customs, Specsavers and Speedo. The largest

employer in Nottingham is Boots, employing

over 7,000 people across its office, factory and

warehousing operations in the city. The energy

and utilities company EON operates from a

number of offices based in both city centre

and out of town locations and employs over

4,000 people. The global information services

company, Experian, employs approximately

3,000 people across 4 different locations in

Nottingham.

The public sector is a fundamental driver of

employment within Nottingham, HM Revenue

and Customs has over 2,000 staff at Howard

House, Nottingham City Council are based

nearby at Loxely House and at a site in West

Bridgford.

Nottingham has a high share of city centre

demand when compared to out of town.

There is currently a lack of Grade A available

space in the city centre. Approximately 60%

of available space comprises 1960’s to 1980’s

buildings and are classed as poor or obsolete.

Some of the secondary and tertiary office

space in Nottingham city centre has seen a

change to alternative use, primarily student

accommodation and residential.

Developments in the pipeline include the

Guildhall development which will include

130,000 sqft of Grade A office space and

Unity Square which has planning consent

for 290,000 sq ft of office accommodation.

The current lack of high quality space in

Nottingham means there is limited prime

rental evidence. However, the refurbished

37 Park Row is achieving rents of £17.68 psf.

Signs that rental growth is being achieved

across the wider part of the market are

becoming more and more apparent, illustrated

by the letting to Interoute in 2016 at New Castle

House with a rent of £17 psf.

Considering the table of recent transactions

below, Lock House offers excellent prospects

for rental growth.

OC

Alternative UseThe property offers potential alternative uses including residential and student

accommodation (STP). There have been a number of residential developments

along the canal, with a significant leisure offering to support both of these potential uses.

Address Tenant Lease Start Area (sq ft) Rent (pa) Rent (psf)

New Castle House Interoute Q1 2016 16,000 £272,000 £17.00

Waterfront House, Waterfront Plaza

Ikano Bank Q3 2015 3,800 £62,700 £16.50

37 Park Row Now:Pensions Q3 2015 20,000 £353,600 £17.68

Park View House, 58 the Ropewalk

Allied Irish Bank Q1 2015 2,000 £33,000 £16.50

ProposalWe are instructed to seek offers in excess of £2,775,000 (Two Million, Seven Hundred And Seventy Five Thousand Pounds), subject to contract and exclusive of VAT reflecting an attractive net initial yield of 8.25% off the topped up rent and a low capital value of £164 psf assuming purchaser’s costs of 6.42%.

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 www.commandHQ.co.uk 09.16

For further information or to make arrangements for viewing please contact:

www.allsop.co.uk

Lottie Hayward020 7543 6750lottie.hayward@allsop.co.uk

Andy Pointon020 7543 6720andy.pointon@allsop.co.uk

OCEPCThe property has an EPC rating of D (93).

VATThe property is elected for VAT and we

would anticipate that the transaction

would be treated as a transfer of a going

concern (TOGC).

LOCK HOUSE 2 CASTLE MEADOW ROAD NOTTINGHAM NG2 1AG