Atlantic House | Tyndall Street | Cardiff | CF10 4PP

ATLANTIC HOUSE

PROMINENT OFFICE INVESTMENT IN CARDIFF’S CENTRAL ENTERPRISE ZONE

INVESTMENT CONSIDERATIONS

• TwoofficebuildingswhichareindividuallylettoCapitalLawLLPandThe UniversityofSouthWales.

• ProminentofficeinvestmentintheheartofCardiffCentralEnterpriseZone adjacenttothesoughtafterCapitalQuarterofficescheme.

• Fullrepairingandinsuringleaseswithanaverageweightedunexpired leasetermof11.04yearsand8.32yearstobreak.

• Totalpassingrentalof£560,395perannum(£13.54/sqft)witha guaranteeduplifttoaminimumof£579,586on31stMay2016.

• 3,846.06sqm(41,399sqft)(NIA)onasiteareaofcirca0.28hectares (0.68acres).

• Amixtureofofficeanduniversityteachingaccommodation.

• Freehold

• 70onsitecarparkingspacesprovidingaverygenerousratioforthecity centreof1:600.

• CloseproximityandveryshortwalkintoCardiffCityCentre’sprimeretail coreincludingaJohnLewisDepartmentStore.

• OccupiersinthevicinityincludeEversheds,HSBC,FinanceWales,Alert Logic(EuropeanHeadquarters),AdmiralandWSPParsonsBrinkerhoff.

Weareinstructedtoseekoffersintheregionof£6.85 million (Six Million Eight Hundred and Fifty Thousand Pounds),subjecttocontractandexclusiveofVAT.

Apurchaseatthislevelwouldequatetoanet initial yield of 8.00%subjecttousualpurchaser’scostsof5.80%andreflectsacapitalvalueof£165.46persqft.

Thevendorwilltopuptherenttoatotalof£579,586perannuminlinewiththeshortfall(£19,191perannum)untilJune2016fromCapitalLawLLP.

Subjecttocontract&exclusiveofvat

ATLANTIC HOUSE

LOCATION

CardiffisthecapitalcityofWalesandthebusiness,culturalandretailheartoftheregion.ItisalsotheadministrativecentreforWelshGovernmentandhometotheinternationallyrecognisedMillenniumStadiumandtheWalesMillenniumCentre.

Cardiffis150milestothewestofLondonand40milestothewestofBristol.Itbenefitsfromexcellenttransportlinks,bothfromtheM4motorwayandasamainlineraildestinationwithintercityjourneytimestoLondonandBirminghamof2hours,aswellaslocalraillinksthroughoutSouthWales.CardiffAirportislocatedjustsouthwestofthecity,whichprovidesaccesstonumerousEuropeandestinations,andissettoexpandwiththerecentacquisitionoftheairportbytheWelshGovernment.

Thecityhasaresidentpopulationofapproximately350,000,whichswellswiththeadditionofover50,000full-timestudentsfromthecity’severexpandinghighereducationsector,toincludeCardiffUniversity,CardiffMetropolitanUniversity,theRoyal

WelshCollegeofMusic&DramaandtheUniversityofSouthWales(tenant,AtlanticHouseWest).Cardiff’spopulationisalsoexpectedtogrowfasterthanthatofanyotherUKcity(26%)overthenext20years–includingLondon(source:CardiffCityCouncil).

Cardiffhasbeenthefastestexpandingcityinemploymenttermssince2000,andtheFinancialServicessectorhasgrownfasterthananyotherUKcityoverthepastdecade(source:CardiffCityCouncil).ItslargestemployersincludeAdmiralInsurance,Legal&General,Eversheds,HughJamesSolicitors,BritishGasandDeloitte.

Thecityhasacompactcentrebuthasrecentlybeennamedthe6thbestshoppingdestinationintheUK,withthecompletionoftheStDavid’s2shoppingcentreandthelargestJohnLewisstoreoutsideofcentralLondon,aswellasthethrivingVictorianshoppingarcadesandavibrantcaféandrestaurantquarter.CardiffisconsistentlyrankedtopinUKqualityoflifeindices–includingMoneysupermarket’s2014index,therecentEUUrbanAudit,andLegalandGeneral’s‘BestCityforYoungPeople’survey.

B R E C O N B E A C O N SN A T I O N A L P A R K

B L A C KM O U N T A I N S

CardiffInternational

Airport

A48

Raglan

Pontypool

214141

3938

32

33

292827

26 2423

22

1936

35

21

20

19

18

17

16

14

13

12

34

2015

42

40

37

30

S EV

ERN

NEWPORT

BRISTOLCARDIFF

SWANSEA

B R I S T O L C H A N N E L

A4119

A46

5

M4

M4

M5

M5

A4059

A470

A465

A4061

A465

A4058

A468A470

A469

A467

A467A4046

A48

A48

A48

A48

A466

A466

A40

A40

A449

A404

2

A40

A479

A40

A465

A4232

A40

50

M32

A4059

A4215

A4221

A470

A470

A370 A38

A4

A37

M4

M49

M48M4

Llantrisant

Weston-Super-Mare

ChepstowCwmbran

MonmouthAbergavenny

MerthyrTydfil

Neath Usk

PortTalbot

Bridgend

Aberdare

Tonypandy

Tonyrefail

Avonmouth

M5

M5

Pontypridd

Caerphilly

Barry

Blaina

Crumlin

Brecon

Sennybridge

EbbwVale

HirwaunGlyn-Neath

Ross-on-Wye

Rhymney

ATLANTIC HOUSE

o an

Princes Court

Ric

hm

ond

Cr

Fred

erickSt

QueenStreet

CENTRAL BUS STATION

CENTRAL TRAIN STATION

StadiumPlaza

St David's Centre

St David'sHall

Queen'sArcade

S.A. Brain& Co LtdBrewery

MillenniumStadium

Millennium

Walkw

ayR

iver Taff

CardiffRugby Club

A4160 Tresillian Way

Crichton Street

Herbert St

Lloy

d G

eorg

e A

ve

A47

0

Tyndall St

Crichton Street

Bute S

treet

Park Street

Havelock S

t

Fitzhamon E

mbankm

ent

Fitzhamon Lane

Beaucham

p St

Plantagenet S

t

Great W

estern lane

Scott R

d

Westgate S

treet

St M

ary Street

Saunders Road

Penart

h Road

Hayes B

ridge Road

St M

ary Street

Trinity Street

The Hayes

Working S

t

St John Street

Church St

High St ArcadeArcade

Castle

Wom

anby St

Queen Street

Greyfriars Road

The Friary

Queen Street

High S

treet

Guildhall Pl

Quay St

Wharton Street

Caroline Street

Custom House St

Mill

Lane

Tredegar St

Mary A

nne St

Hills StreetW

estgate Street

Castle Street

MotorpointArena

Duke Street

Boulevard de Nantes

A470

Dumfries Ln

Dum

fries Place

Park Place

Park Place

Stuttgarter Strasse

Newport Rd A4161

Fitzalan Pl

Fitzalan Rd

Adamstown

Knox Rd

North R

oad

King

sway

A4161

Bute Park

Riverside

Rd EastCowbridge

Cathedral R

d A4119

Low

er C

athe

dral

Rd

A41

19

Cla

re S

t

A4161

Sophia Close

Sophia W

alk

Talbot St

Hamilton St

Museum

Avenue

Park Lane

St A

ndrews Lane

Park Lane

Windsor LaneCrockherbtown Ln

Greyfriars P

l

Kingsway

North Edward St

Windsor P

lMuseum Place

Woodville Rd

The Walk

The Parade

West G

rove

East G

rove

City R

dB

4261

Glossop R

d

How

ard Pl

Newport Road Lane

Fitzalan Pl

Windsor Rd

Davis St

Guildford Cr

Sandon St

Tyndall St

Wharf Rd E

Brigantine Pl

Llansannor Dr

Ellen S

tS

chooner Way

Sm

art Way

Moira Place

Moira Te

rrace

St Andrews Place

City Hall Rd

Gorsedd Gardens Rd

King E

dward VII Avenue

Green St

Neville Pl

Neville St

De Burgh St

Machen Place

Gloucester S

t

Clare Gdns

Clare Pl

Despenser St

Tudor St

Tudor Lane

Pendyris St

Despenser Place

Craddock St

Rawden Mews

Raw

den Pl

Coldstream

Tce

Mark St

Brook St

Cardiff Castle

Morgan Arcade

Royal Arcade

Charles S

treet

Churchill W

ay

Wesley Lane

Churchill W

ay

David S

t

Bridge StGuilfo

rd St

Station Terrace

BarrackLane

Adam St

Central Link

A4234

A4234 toCardiff Bay & M4

A470 (A469) toCaerphilly & M4

A4161 to A48and M4 West

A4161 to Newport,A48 & M4

CardiffLibrary

Bute EastDock

New

Footbridge

Atrium

GlamorganCounty

Cricket Club

WelshInstituteof Sport

Coopers Field

Welsh College of Music & Drama

SophiaGardens

LawCourts

City Hall

NationalMuseum& Gallery

Cardiff

Sat Nav: CF10 4PP

CentralRailStationCentralBusStationCaféQuarterSt.David’sShoppingCentreJohnLewisNewFootbridge500SpaceCarParkEquinitiServicesLtdQueenStreetRailStationNovotelHotel&GymRadissonHotelMillenniumStadiumNewAdmiralHQMotorpointArenaETAPHotelNumber1CapitalQuarterEvershedsINGMaldronHotelCastleCivicCentreCallaghanSquare

FutureDevelopment

ViridisRealEstate

12345678910111213141516171819202122

2324252627

BritishGasInexusServicesLtdCineworldCinemaNo2CapitalQuarterUniversityofSouthWales–Creative&CulturalIndustries

CarParksP

P

PP

P

P

PP

P

P

P

P

8

27

7

16

26

1822

17

23

1

2

19

11

35

4

25

14

13

9

212012

15

10

6

24

ATLANTIC HOUSE

SITUATION

AtlanticHouseissituatedonTyndallStreetintheheartofCardiffCityCentre,adjacenttoCapitalQuarterandCallaghanSquare,theprimeofficelocations.StDavid’sShoppingCentreandtheprimeretailcorearejustafewminutes’walkaway.AtlanticHousealsositswithintheCardiffCentralEnterpriseZonewithnearbyoccupiersincludingEversheds,BritishGas,HSBC,FinanceWales,AlertLogic(EuropeanHeadquarters),WSPParsonsBrinkerhoffandAdmiral.

CardiffCentralBusandRailwayStationsareeasilyaccessibleandthelocationbenefitsfromexcellentroadcommunicationsincludingtheA4232whichlinkswithbothCardiffBayandJunction33oftheM4Motorwayjustafewminutes’driveaway.

CARDIFF CITY CENTRE VISION

Cardiff Centre Enterprise ZoneThepropertyoccupiesacentralpositionwithintherecentlyestablishedEnterpriseZonewhichistheonlyzoneofitskindintheUKdedicatedtoattractingandgrowingthefinancialandprofessionalservicessector.CardiffCityCouncilandtheWelshGovernmenthaveacknowledgedthatthefuturegrowthoftheWelshEconomydependsonastrongandvibrantcapitalcity.

Capital QuarterTotherearofthepropertyistheCapitalQuarterschemewhichincludesGrade‘A’offices,hotel,studenthousingandeducationuses.Todate,theDriscollBuildings37,074sqftandthe78,000sqftNo1CapitalQuarterhavebeencompletedandlettogetherwithanew£2.5mfootbridgeenablingeasyaccesstotheretailcoreandothercitycentreamenities.No2CapitalQuarter,whichwillbeanew85,000sqftGrade‘A’officebuilding,isunderconstruction

withpracticalcompletionexpectedinspring2016.Inaddition,partofthesitehasbeensoldtoViridisfora600bedstudenthousingdevelopment,expectedtobeoccupiedinSeptember2016.

Electrification of the Main Intercity LineThiswillimproveCardiff’sconnectivityviafasterjourneytimestoLondonwiththeworkscheduledtobecompleted by2017.

Central SquareCardiffCityCouncil,viaadevelopmentagreementwithRightacresPropertyCompany,haveacquiredlandandbuildingstothenorthofCardiffCentralRailwaystationwiththevisionforacomprehensiveredevelopmentoftheareaoverthenext10yearswhichwillhaveapositiveimpactonCardiff’simagetobothnewoccupiersandinvestors.BBCWaleshaveselectedCentralSquareasthesitefortheirnew165,000sqftHeadquartersBuildingwhichwillformthecentreofthisregenerationarea.

Capital Quarter Capital Quarter

DESCRIPTION

AtlanticHousewasconstructedin1990andprovidesopenplanofficesarrangedovergroundandfourupperfloorstogetherwithbasementcarparking.Thepropertybenefitsfromraisedfloors,carpeting,suspendedceilings,recessedVDUlighting,gasfiredheating,comfortcooling,2passengerliftsandmale,femaleanddisabledtoilets.CapitalLawhaverecentlyrefurbishedtheiraccommodationinAtlanticHouseEasttoahighspecification.

PARKING

Thecarparkprovidesatotalof70parkingspaces;34allocatedtoAtlanticHouseEastand36toAtlanticHouseWest.Thisprovidesaparkingratioof1:581and1:600respectively.

SITE

Thesiteextendstocirca0.68acres(0.28hectares).

ACCOMMODATION

Inreferencetotheleasedocumentationthebuildingsprovidethefollowingnetinternalfloorareas.

ThesefloorareaswillbeusedtocalculatetherentforthepurposeofrentreviewsonbothAtlanticHouseEastandWest.

Building Floor Sq m Sq ft

AtlanticHouseEast Ground 375sqm 4,041sqft

First 403sqm 4,334sqft

Second 402sqm 4,332sqft

Third 404sqm 4,344sqft

Fourth 199sqm 2,140sqft

Total NIA 1,783 19,191

Building Floor Sq m Sq ft

AtlanticHouseWest Ground 455 4,896

First 470 5,057

Second 467 5,030

Third 469 5,047

Fourth 202 2,178

Total NIA 2,063 22,208

TENURE

Freehold

TENANCIES

Atlantic House East isheldunderoneleaseforatermof15yearsfromMay2011,expiringon30thMay2026(c.10.86yearstoleaseexpiry).Theleaseisheldunderfullyrepairingandinsuringtermsto‘CapitalLawLLP’atapassingrentof£249,483perannumwithasteppedincreasetoaminimumof£268,674(£14.00persqft)on31stMay2016.

Atlantic House WestiscurrentlyheldunderasubleasetoTheUniversityofSouthWalesfromRoyalBankofScotlanduntilNovember2016.TheRoyalBankofScotlandleaseexpireson24thDecember2016.TheUniversityofSouthWaleshavesignedanewleaseforatermof10yearsfrom25thDecember2016,expiringon24thDecember2026(tenantbreak25thDecember2021).Theleaseisfullyrepairingandinsuringatapassingrentof£310,912perannum.The1styearofTheUniversityofSouthWales’newleasewillbeatarentof£155,456perannumandthiswillthenrevertto£310,912perannumon25thDecember2017.

COVENANT INFORMATION

Capital Law LLP .OC317296

D&BRatingH3

CapitalLawLLPisaleadingproviderofcommerciallegalservicestoprivateandpublicsectorclientsthroughouttheUKandEurope.CapitalLawworksalongsidetheirfullyintegratedmanagementconsultancybusinesses,ConsultCapitalandCapitalInsight,toprovideaholisticandinformedbusinessservice.CapitalLawLLPhasanetworthof£861,234.

BasedinCardiffandLondon,establishedforover20yearswithover100plusstaffemployedattheirCardiffHeadquartersinAtlanticHouseEast.CapitalLaw’smainareasofexpertiseincludeemployment,commercialproperty,commercial,corporate,commercialdisputes,recoveryandinsolvency,intellectualproperty,media,consultancyandregulatorylaw.

University Of South Wales

TheUniversityofSouthWaleswasformedon11thApril2013fromthemergeroftheUniversityofGlamorganandtheUniversityofWales,Newport.Withmorethan31,000studentsfrom122countries,theuniversityisthesixthlargestintheUnitedKingdomandthelargestinWales.

TheuniversityispartoftheUniversityofSouthWalesGroupwhichalsocomprisestheRoyalWelshCollegeofMusicandDramaandtheMerthyrTydfilCollege.Ithasabandof106partnercolleges,universities,FEinstitutionsororganisations,whodeliverUniversityofSouthWaleshighereducationprogramsoraccesscoursesintheUKand18othercountries.

EPCThebuildingsEPCcertificatesarevaliduntilDecember2020(East)andFebruary2022(West).AtlanticHouseEastandWesthaveEPCratingsofC63andD85,respectively.Furtherinformationisavailableuponrequest.

VAT

WeunderstandthatthepropertyiselectedforVATandthereforeVATwillbepayableonthepurchaseprice.

ImportantNotice.Cushman&Wakefieldgivesnoticetoanyonewhomayreadtheseparticularsasfollows:1.Theseparticularsarepreparedfortheguidanceonlyofprospectivepurchasers.Theyareintendedtogiveafairoveralldescriptionofthepropertybutarenotintendedtoconstitutepartofanofferorcontract.2.Anyinformationcontainedherein(whetherinthetext,plansorphotographs)isgiveningoodfaithbutshouldnotberelieduponasbeingastatementorrepresentationoffact.3.Nothingintheseparticularsshallbedeemedtobeastatementthatthepropertyisingoodconditionorotherwisenorthatanyservicesorfacilitiesareingoodworkingorder.4.Thephotographsappearinginthisbrochureshowonlycertainpartsandaspectsofthepropertyatthetimewhenthephotographsweretaken.Certainaspectsmayhavechangedsincethephotographsweretakenanditshouldnotbeassumedthatthepropertyremainspreciselyasdisplayedinthephotographs.Furthermorenoassumptionsshouldbemadeinrespectofpartsofthepropertywhicharenotshowninthephotographs.5.Anyareas,measurementsordistancesreferredtohereinareapproximateonly.6.Wherethereisreferenceintheseparticularstothefactthatalterationshavebeencarriedoutorthataparticularuseismadeofanypartofthepropertythisisnotintendedtobeastatementthatanynecessaryplanning,buildingregulationsorotherconsentshavebeenobtainedandthesemattersmustbeverifiedbyanyintendingpurchaser.7.Descriptionsofapropertyareinevitablysubjectiveandthedescriptionscontainedhereinareusedingoodfaithasanopinionandnotbywayofstatementoffact.

September 2015

Design by Martin Hopkins Design. | Tel: 029 2046 1233 www.martinhopkins.co.uk

CARDIFF OFFICE MARKET

CardiffistheprincipalofficemarketwithinWalesandoneofthemajorregionalcentresintheUK,withanestimatedofficestockofapproximately11millionsqft.

CardiffwastheonlymajorregionalUKofficemarkettoseegrowthinheadlinerentsduringthedownturnfrom£21.00to£22.00persqft.However,CardiffstillrepresentsamajorrentaldiscounttonearbyBristolandBirminghamwherelevelsarenearing£30.00persqft.

Steadilyimprovingoccupieractivitysawtake-upofspacein2014atanimpressive544,000sqftwhichcomfortablyexceedsthe10yearaveragefigureof465,000sqft.

ImprovingdemandshouldstimulatesupplyalthoughthereiscurrentlyashortageofGradeAspace.ThisshortagehasalsoresultedinadecreaseinthelevelofincentivesrequiredtosecureGradeAlettings.Thiscontinuingtrend,coupledwiththeinitiativestoimprovetheeconomicprofile,shouldhelpdriverentalgrowthinCardiffgoingforward.

HeadlinerentsatCapitalQuarterwhichadjoinsAtlanticHouseEastandWestarecurrentlyat£18.95persqftwithrecentlettingstoFinanceWales(22,324sqft)andParsonsBrinkerhoff(13,079sqft).OtherevidencewithincloseproximityatCallaghanSquareincludesBritishGastaking14,625sqftat£21.00persqftwithonly9months’rentfree. Andrew Gibson

Cushman&WakefieldT:02920262246E:Andrew.Gibson@cushwake.com

Jason WinfieldCushman&WakefieldT:02032962116E:Jason.Winfield@cushwake.com

David MullinsFletcherMorganT:02920378921E:David.Mullins@fletchermorgan.co.uk

Sarah BellCushman&WakefieldT:02032964414E:Sarah.Bell@cushwake.com

PROPOSAL

Weareinstructedtoseekoffersintheregionof£6.85 million (Six Million Eight Hundred and Fifty Thousand Pounds),subjecttocontractandexclusiveofVAT.

Apurchaseatthislevelwouldequatetoanet initial yield of 8.00%subjecttousualpurchaser’scostsof5.80%andreflectsacapitalvalueof£165.46persqft.

Thevendorwilltopuptherenttoatotalof£579,586perannuminlinewiththeshortfall(£19,191perannum)untilJune2016fromCapitalLawLLP.