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TTEEMPLE QUAY | BRISTOL

WELL-SECURED REGIONAL CITY CENTRE OFFICE INVESTMENT

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INVESTMENT SUMMARY

• Bristol is the regional and business of the South West of England and it has become one of the UK’s major commercial and

fi nancial centres. It is the UK’s 5th largest city with an urban zone population of 1.6 million residents.

• The award winning Temple Quay development has become the heart of Bristol’s central business district and lies adjacent to

Bristol Temple Meads railway station. It comprises over 116,125 m2 (1.25 million ft²) of prime Grade A offi ce accommodation

and has attracted occupiers including Bank of Ireland, IBM, Royal Bank of Scotland, Canada Life, HSBC and fi ve (correct ?)

Government departments.

• A new headquarters offi ce building completed in March 2010 comprising 20,017 m² (215,475 ft²) of Grade A offi ce accommodation.

This stunning waterfront building is BREEAM ‘very good’ and offers fl exible state of the art accommodation with a car parking

ratio of 1:??……...

• Let on a new 20 year lease to Burges Salmon LLP in its entirety on fi ve FRI occupational leases.

• Burges Salmon are a national law fi rm ranked in the top 20 for the number of FTSE 100 clients it advises.

• A total current rent of £5,539,139 per annum refl ecting £276.63 m2 (£25.70 ft²) overall.

• Offers are sought in excess of £77,600,000 (Seventy Seven Million Six Hundred Thousand Pounds), subject to contract and

exclusive of VAT, refl ecting an attractive net initial yield of 6.75% after deducting purchasers costs of 5.7625%.

ONEGLASSWHARF PAGE 4



BRISTOL Bristol is the UK’s 5th largest city and is the principal fi nancial and commercial centre for South West

England. Traditionally it was a major trading, fi nancial and industrial centre and port although over the

last 10 years it has developed into a strong banking and service sector economy which has become

the largest employment base in banking, fi nance and insurance sectors in the UK outside of the City of

London and a popular offi ce relocation destination.

The city has an estimated population of 550,000 and a surrounding larger urban zone with an estimated

1.6 million residents and is the UK’s 8th most popular cities.

Bristol is ranked the third highest per capita GDP after London and Nottingham and has a low

unemployment rate of ….% (…% national average).

Bristol has 56% of its population in the 20-59 year old bracket which is higher than the UK average.

Furthermore Bristol has a higher percentage (54%) than the GB average (51%) in class groupings

of higher, intermediate and supervisory managerial, administrative and professional groups. (2001

Census).

The city also benefi ts from two outstanding Universities being the University of Bristol and the University

of the West of England and this coupled with the class groupings mentioned above provide Bristol with

a skilled labour pool.

Bristol has attracted very well known companies over the years including;

• Ministry of Defence Equipment and Support

• Hewlett Packard National Research Laboratories

• AXA Sun Life Headquarters

• Lloyds Banking Group National Debt Recovery HQ

• Orange

• Rolls Royce

• BAE Systems

• BBC

• Clerical Medical

There has been a signifi cant amount of new development in the city centre including the £350 m mixed

use waterfront development at Harbourside, the next phase of Temple Quay and the development of the

Old Brewery site (detail required here)….is under way.

The city centre now has the benefi t of two shopping centres namely Broadmead (67,379 m2/725,000

ft2) and the recently completed Cabot Circus (92,900 m2/1 million ft2). Whilst the out of town retail

market is anchored by the 67,379 m2/725,000 ft2 Cribbs Causeway development.

It was also ranked as the UK’s most sustainable city in 2008.



M5

M4

M3

M4

M1

M1

M6

M4

M48

M32

M40

M40

M42

M25

M25

M5

M5

BRISTOLLONDON

BIRMINGHAM

Swindon

Oxford

Reading

Southampton

Bournemouth

Bath

Taunton

Exeter

Heathrow Airport

Gatwick Airport

M23

M27 Southampton International Airport

Bristol International

Airport

BirminghamInternational

Airport

LutonAirport

Exeter International Airport

CARDIFF

CardiffInternational

Airport

LONDON

BRISTOLBIRMINGHAM

MANCHESTERLEEDS

EDINBURGH

COMMUNICATIONSBristol is well situated in the South west of the UK enjoying good communication links to UK and Europe.

Road

Bristol benefi ts from excellent road communications being only 4 miles from the M4/M5 intersection. The M4 is the east-west axis from London

to Cardiff whilst the M5 is the north-south west axis from Birmingham to Exeter. The M48 motorway and Second Severn Crossing have further

improved road communications with Cardiff and South Wales. The M32 motorway spur links the M4 to Bristol City Centre. Temple Quay is

situated on the inner ring road directly off the M32.

Destination Miles

London 118

Birmingham 88

Manchester 169

Exeter 80

Bath 12

Rail

Bristol has two principal railway stations - Bristol Temple Meads (city centre) and Bristol Parkway (to the north of the city). These provide regular

direct intercity services to the major cities throughout the UK including London Paddington (high-speed), Manchester, Birmingham, Cardiff and

the South West.

From Temple Meads

Destination Minutes

London Paddington 80

Birmingham 75

Manchester 195

Exeter 60

Bristol Parkway 8

Air

Bristol International Airport lies 8 miles south of the city centre and there is a dedicated coach link. It offers scheduled fl ights to 114 destinations

throughout the UK, Europe and to the United States (New York and Orlando). All the major European countries including Spain (seven destinations),

Italy (eight destinations), Germany (three destinations), France (eight destinations) and Holland.

There has been substantial investment in its runway, terminal and other facilities since 2001 when the £42 m terminal was opened. Since then

this has been further extended. The airport now sees over 4.6 million passengers fl y to over 90 destinations each year and it has become the

fastest growing regional airport in the UK.

GLASGOW


NO

RTH

ST

STO

KE C

RO

THE HORSEFAIR

FEEDER ROAD

ALBERT ROAD

RE

DCL

IFF

STRE

ET

B

EDMIN

STER PARADE

CLARENCE ROAD

COMMERCIAL ROAD

YORK ROAD CORONATION ROAD

PRI

NCE

S

ANCHOR ROAD

PARK ROAD

PARK ROW

ST MICHAEL’S HILL

COTHAM ROAD

CORN ST

VICTORIA STREET

A4

BATH ROAD

CO

LSTO

NST

REET

UPP

ER M

AUDLIN STREET

BALDWIN ST

UNION STREET

EASTON WAY

AVON STREET

BOND STREET

STRE

ET

CO

LSTO

N A

VEN

UE

LEWINS ST

THE GROVE

REDCLIFF WAY

TE

MPL

E W

AY

BRO

AD Q

UAY

C

OLS

TON

AVE

NUE RUPERT

ST

M32

Temple Meads Station

TEMPLE QUAY

BROADMEAD

HARBOURSIDEQUEEN

SQUARE

FLOATIN G H A R B O U R

FLOATING HARBOUR


TEMPLE QUAYTemple Quay has become the core offi ce location in Bristol’s city centre business district in a striking waterfront environment. It lies adjacent to Bristol’s central railway station - Temple Meads and Temple Way, the city’s inner

ring road. It currently has …..m2 (….ft2) of offi ce accommodation in 12 buildings.

The development is a key mixed use regeneration scheme developed by Castlemore Securities Ltd/SWERDA. It has been master planned to create corporate offi ces, complimentary south facing bars, cafes and restaurants,

retail, leisure and residential accommodation. The development covers a total of 7.4 ha (18.3 acres) which will eventually total approximately185,800 m2 (2 million ft²) in 16 buildings.

One Glass Wharf forms part of the latest phase of development and occupies a prominent position in the centre of the development.

During the last 10 years Temple Quay has become recognised as the prime city centre offi ce location attracting both national and international business including Bank of Ireland, BT, Osborne Clarke, Canada Life, Deloitte,

IBM, HSBC and a number of central and regional Government departments including the Highways Agency, Government of South West, the Planning Inspectorate, VOSA and the Local Government for Constitutional Affairs.

Temple Meads StationTo Temple Quay - Phase 1



ONEGLASSWHARFOne Glass Wharf is a prime Grade A headquarters offi ce building overlooking Bristol’s historic waterside. It was designed by Stride Treglown architects and completed in

2010.

The building provides a total of 19,539.09 m2 (210,318 ft2) on ground and fi ve upper fl oors with secure basement car parking for …cars.

The confi guration provides accommodation suitable for single or multiple occupation in two sub-divided wings separated by a full height atrium providing typically 1,327 m²

(14,290 ft²) and 2,082 m² (22,419 ft²) respectively. An independent retail unit is provided on the ground fl oor.

The building has been constructed to a Grade A specifi cation and the quality of fi nishes is comparable with City of London developments.

The specifi cation includes;

• Two principal and two secondary cores • Feature full height central atrium with spiral staircase

• Full height atrium in the east wing • 5th fl oor roof terraces

• Seven passenger (13-person, 1000 kg) and one goods lift • Metal-tiled suspended ceilings

• Full-accessed raised fl oors • Floor to ceiling heights are typically 2.85 m

• Four pipe fan coil air conditioning system • Water cool chillers utilizing the harbour for heat rejection

• Solar control and rainwater harvesting • BREEAM Rating of “Very Good”

• CCTV security system • Secure basement parking for ….cars (1:…m2/1….ft2)

Adjoining the main building entrance Burges Salmon have the benefi t of an independent client entrance (is this a tenant’s improvement ?) and will be completing an

extensive tenant fi t out including ground fl oor restaurant and library whilst the fi fth fl oor will be extensively fi tted out with meeting and conference/hospitality suites fronting

onto the balconies.

Full details are available on request.

BASEMENT LEVEL

TYPICAL UPPER FLOOR LEVEL

GROUND FLOOR LEVEL

FIFTH FLOOR LEVEL

Access

Access

Access

Atrium Atrium

BalconyBalcony



TENANCYEither:

1. One Glass Wharf is let in its entirety to Burges Salmon LLP under the terms of fi ve contemporaneous 20 year leases. All leases are drawn on similar full repairing and insuring terms.

The leases of space held for Burges Salmon’s future expansion (ground, fi rst and second fl oor of the west wing) are subject to tenant only break clauses at the expiry of the 10th year of the term subject to 12 months written

notice.

Or

2. The majority of One Glass Wharf (80%) is let to Burges Salmon LLP under the terms of three contemporaneous 20 year leases. All leases are drawn on similar full repairing and insuring terms.

The three vacant fl oors (ground, fi rst and second of the west wing) will be offered with the benefi t of a vendors guarantee covering rent, rates and service charges on a fl oor by fl oor basis. The guarantees will be subject to a

maximum period of fi ve years.

Net ft² Rent £ Rent/ft² Tenant Term Commencing Expiry Break CPS

Lease 1 East 5th 19,661.30 540,685.75

East 4th 22,451.30 617,410.75

East 3rd 22,451.30 617,410.75

East 2nd 22,451.30 617,410.75

East 1st 22,451.30 617,410.75

East Grd Off 17,780.90 488,974.75

East Grd Atrium 3,177.20 43,686.50 13.25

East Grd Retail 1,969.80 29,547.00 15.00

East Grd Total 132,394.40 3,572,537.00 27.50 Burges Salmon 20 74.00

Lease 2 West 5th 12,871.50 353,966.25 27.50 Burges Salmon 20 7.00

Lease 3 West 4th 14,346.10 394,517.75 27.50 Burges Salmon 20 7.00

Lease 4 West 3rd 14,346.10 394,517.75 27.50 Burges Salmon 20 7.00

Lease 5 West 2nd 14,346.10 394,517.75 27.50 TBA 20 7.00

Lease 6 West 1st 14,346.10 394,517.75 27.50 TBA 20 7.00

Lease 7 West Grd 12,815.50 352,426.25 27.50 TBA 20 7.00

Total 5,857,000.50 116.00

ACCOMMODATION

Offi ce ft² Offi ce m² Offi ce ft² Offi ce m²

12,871.50 1,195.79 19,661.30 1,826.58

14,346.10 1,332.79 22,451.30 2,085.78

14,346.10 1,331.79 22,451.30 2,085.78

14,346.10 1,332.79 22,451.30 2,085.78

14,346.10 1,332.79 22,451.30 2,085.78

12,815.50 1,190.59 17,780.90 1,651.89

- - 3,117.20 295.17

- - 1,969.80 183.00

83,071.40 7,717.52 127,247.40 11,821.57

WEST EAST WING

Uses

Fifth Floor Offi ces

Fourth Floor Offi ces

Third Floor Offi ces

Second Floor Offi ces

First Floor Offi ces

Ground Floor Offi ces

Atrium

Retail Unit

Total

WEST WING



BURGES SALMON LLPBurges Salmon LLP is a limited liability partnership registered in England and Wales (LLP number OC307212). Ranked as a Top 50 national law

fi rm and in the top 20 for the number of FTSE 100 clients it advises.

With its Head offi ce in Bristol they employ 67 Partners and in excess of 630 staff in total the fi rm positions itself as the fi rst choice fi rm for

clients seeking a real alternative to the City of London. Its national and international client base ranges from private individuals to Government

departments and FTSE100 companies including the Nuclear Decommissioning Authority, Orange, The Crown Estate, Nationwide, BNP Paribas,

The Ministry of Defence and FirstGroup.

Further detail is available at www.burges-salmon.com and www.chambersandpartners.com

The Partnership Operates in the following practise areas;

1. Banking & Finance

2. Commercial

3. Corporate

4. Disputes and Litigation

5. Employment

6. Environment and Health & Safety

7. Partnerships

8. Pensions and Incentives

9. Private Client

10. Real Estate

11. Regulatory

12. Tax

Financial performance for the past three years are summarised as below full accounts are available on request.

Profi t and Loss Account - Year ended 30 April 2009

2009 2008 2007

£000’s £000’s £000’s

Turnover 64,187 68,224 61,392

Profi t [1] 24,188 29,464 26,085

Total Members Interest 37,182 38,418 33,137

[1] Profi t for the fi nancial year before members’ remuneration and profi t shares available for division among members.

BRISTOL CITY CENTRE OFFICE MARKET• Bristol City Centre stock totals 1,532,850 m2 (16.5 million ft²).

• Headline rents currently lie at £285.25 m2 (£26.50 ft2) having peaked at £296.01 m2 (£27.50 ft²).

• Currently only 34,373 m2 (370,000 ft²) of Grade A accommodation is available of which 9,290 m2 (100,000 ft²) is currently under offer.

• Only 2,323 m2 (25,000 ft²) is currently under construction in the city centre in one scheme. (does this include The Brewery site ?)

• There are currently 21 requirements for 929 m2 (10,000 ft²) plus.

A Comparison to the Other Major Regional Cities Headline Rents Take up by Sector (City Centre) 2009

Other

28

27.5

27

26.5

26

25.5

Bristo

l

Glasg

ow

Birmin

gham

Leeds

Edin

burgh

Manch

ester

The take-up by sector for Bristol City Centre in 2009 refl ects the cities diverse employment base.This coupled

with the imbalance between supply and demand, places Bristol in a good position to recover in the short to

medium term.

30%

13%

22%

14%

4%

17%

Public Sector

Telecoms, Media

& Marketing

Finance, Banking & Legal

Professional

Service Sector

£ p

er

ft2



INVESTMENT MARKETThere has been a sustained level of increased activity in the regional offi ce investment market over the last six months as investor interest has increased again for good quality stock.

Q4 2009 saw yields on UK commercial property harden by 61 basis points, the largest single quarter improvement since 2000. A number of prime regional offi ce transactions have taken place particularly in Glasgow,

Birmingham and Manchester where yields have fallen to 5.75% to 6%. These include:

Address Area Price Yield Date Comments

(ft²) (Net Initial)

3 Hardman Street, Manchester 395,000 £182.5m 6.30% March 2010 2008-build. Multi-let to 15 tenants with AWUT of 13 yrs and 30,000 ft2 vacant with a 5 year

guarantee. Average rent of £28.50 ft2.

St William House, Cardiff 140,000 £34.45m 6.50% March 2010 2002-build. Let to Lloyds TSB with 14.9 yrs unexpired at £16.91 ft2.

Whitehall Riverside, Leeds 130,000 £51.3m 5.85% February 2010 2005-build. Multi-let to seven tenants with 85% with 16 yrs unexpired at £25.50 ft2.

Mitchells & Butler HQ, Birmingham 94,630 £40m 6.00% January 2010 2003 build. Let to Mitchells & Butler for a further 34 yrs at £20 ft2 subject to annual RPI increases

(2.5-5% pa).

Broadway One, Glasgow 126,343 £51m 5.75% January 2010 2009-build. Let to Tesco Personal Finance plc for 20 years at £…ft2.

One Snowhill, Birmingham 259,999 £124.5m 6.24% December 2009 2009-build. Multi-let to Barclays and KPMG. AWUT of 12 years plus 15% vacant with guarantees

at rents of £30-32 ft2.

2 St Philips, Birmingham 62,279 £29m 5.85% December 2009 2002-build. Let to RBS for a further 8.5 yrs at £27 ft2.

141 Bothwell Street, Glasgow 175,812 £72m 5.80% December 2009 2009-build. Multi-let with AWUT of 11 years at £23.50-28.50 ft2.

7, 8 & 10 Brindley Place, Birmingham 276,833 £104m 6.93% December 2009 2003-build. Let to RBS on 3 leases with AWUT of 14 yrs at £24.50-25 ft2.

CAPITAL ALLOWANCESTQ Central Plot ND3

Capital allowances available to potential purchaser, based on £84,320,000 purchase price.

Year Capital Allowances Annual Tax Relief Cash Value

£m £m £m

1 36.2 4.1 1.1

2 32.1 3.6 1.0

3 28.5 3.1 0.9

4 25.4 2.8 0.8

5 22.6 2.4 0.7

6 20.2 2.2 0.6

7 18.0 1.9 0.5

8 16.1 1.7 0.5

9 14.4 1.5 0.4

10 12.9 1.3 0.4

Remainder 11.5 3.2

Total 10

PricewaterhouseCoopers LLP does not accept or assume any liability, responsibility or duty of care to

any third party or to any other person to whom the report is shown or in whose hands it may come.

PricewaterhouseCoopers LLP shall not be liable in respect of any loss, damage or expense of whatsoever

nature which is caused by any use a third party may choose to make of the report.

TENUREFreehold.

ESTATE MANAGEMENTTemple Quay Central will remain a privately owned and management estate. Individual building owners will be required to enter into a rent

charge deed and contribute to the cost of the management of the public realm. The estates service charge is estimated to be £XX ft² calculated

on the basis of gross internal area and is fully recoverable from the occupying tenants. (who will run management company – does purchaser

get a % share of the co ?)



CONSTRUCTION OF WARRANTIES & INSURANCESOne Glass Wharf was constructed by Balfour Beatty under the terms of a design and build form of contract. A main contractor and full suite of

principle sub contractor and professional team warranties will be available to the purchaser.

In addition the purchaser will benefi t from Latent Defects insurance.

VATThe property is elected for VAT purposes and therefore it is anticipated that the sale will be treated as a transfer of a going concern.

PROPOSALOffers are sought in excess of £77,600,000 (Seventy Seven Million Six Hundred Thousand Pounds), subject to contract and exclusive of

VAT, refl ecting an attractive net initial yield of 6.75% after deducting purchasers costs of 5.7625%.

FURTHER INFORMATIONOliver Paine

King Sturge LLP

Tel: 0117 930 5718

Email: [email protected]

Angus Minford

King Sturge LLP

Tel: 020 7087 5350


John Benson

Alder King LLP

Tel: 0117 317 1100


Mark Rothwell

Alder King LLP

Tel: 0117 317 1101




MISREPRESENTATION CLAUSE: The accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein is not guaranteed and is for general guidance only and prospective purchasers or tenants must not rely on them as statements of fact

or representations and must satisfy themselves as to their accuracy. Neither King Sturge nor Alder King nor any of its employees or representatives has any authority to make or give any representation or warranty or enter into any contract whatever in relation to the Property. Rents quoted in these particulars may be subject to

VAT in addition. The reference to any mechanical or electrical equipment or other facilities at the Property shall not constitute a representation (unless otherwise stated) as to its state or condition or that it is capable or fulfi lling its intended function.

Prospective tenants/purchasers should satisfy themselves as to the fi tness of such equipment for their requirements.

Under the Control of Asbestos at Work Regulations 2002 (CAW Regulations), the owner or tenant of the property, and anyone else who has control over it and/or responsibility for maintaining or repairing it, may be under a statutory obligation to detect and manage any asbestos or asbestos related compounds

contained within the property. Failure to comply with the CAW Regulations is an offence and could adversely affect the value of the property.

Subject to Contract | April 2010

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