City Centre Retail and Office Investment for Sale

Imperial Building, 20-22 Victoria StreetNottingham, NG1 2EX

Retail & Office Investment

City Centre location

Multi-let

55% of income secured against The Restaurant Group; SH Funds £73m

£2,000,000, subject to contract

9.0% net initial yield

www.singerviellesales.com

LocationNottingham is located approximately 202 km (126 miles) north of CentralLondon, 26 km (16 miles) north east of Derby, 48 km (30 miles) north ofLeicester and 48 km (30 miles) south east of Sheffield.

The city benefits from good road communications with Junction 24 ofthe M1 Motorway approximately 17 km (9.5 miles) to the south west,Junction 25 approximately 12.4 km (7 miles) to the south west andJunction 26 approximately 8 km (4.5 miles) to the north west.

The city is connected to the national railway network with a fastestjourney time to London St Pancras of 1 hour 40 minutes. NottinghamStation is currently undergoing a £60 million redevelopment which willtransform it into a world-class interchange. Line speed upgrades to theMidland Mainline aim to reduce travel times between Nottingham andLondon to just 90 minutes, while direct connections to Eurostar servicesthrough to St Pancras International will mean Nottingham is less thanfive hours from Paris and Brussels. This work is due to commence in2015 and be completed by 2019.

East Midlands Airport is approximately 22 km (14 miles) to the southwest and Birmingham International Airport approximately 80 km (50miles) to the north east.

The multi-million pound project to extend Nottingham’s tram service tothe south and south west of the city commenced at the start of 2013and the extension, which is expected to open in 2015 will more thandouble the size of the existing tram line providing 16 services per hourin each direction on the city centre section. The project is expected togive up to a £300 million boost to the local economy and create up to8,000 jobs locally.

Nottingham is a top ten retail city with £4.8 billion of retail expenditure,ranked seventh for shopping population ahead of Cardiff and Liverpool.It has a catchment of 2.3 million within a 45 minute drive and has thehighest proportion of 16-24 year olds in its catchment of any UKshopping location. Home to two leading universities with 60,000 full timestudents, the city has the fourth largest student population in the UnitedKingdom. Nottingham has 30% wealthy achievers and has become thefinancial centre of the East Midlands region. (Source: Intu Group).

SituationThe subject property is situated within Nottingham City Centre, occupyinga prominent position at the corner of Victoria Street and Fletcher Gate.Surrounding occupiers include French Connection, Lacoste, G-Star Raw,Sainsbury’s, Tesco Express and an Ibis Hotel. The property benefits frombeing immediately adjacent to the Lace Market tram stop which is the firststop Northbound from Nottingham Railway Station.

The property is in close proximity to the prime retailing pitch of ClumberStreet and the “intu Victoria Centre” to the north, and the “intu Broadmarsh”shopping centre and Listergate to the south. Bridlesmith Gate is less thana minute’s walk to the west and is home to occupiers such as Ted Baker,Jack Wills, White Stuff, Cath Kidston and Links of London.

“intu Victoria” provides 91,140 sq m (981,000 sq ft) of retail, catering andleisure space across 127 units. The centre is anchored by John Lewis andHouse of Fraser with other major retailers in the scheme including Nextand Topshop. “intu Broadmarsh” comprises 45,240 sq m (487,000 sq ft)across 89 units with retailers including BHS, Argos, O2 and Boots.Nottingham City Council and intu signed a conditional developmentagreement in January 2014 for a £40 million refurbishment of intu Victoriawhich is already underway and a £150 million redevelopment of intuBroadmarsh, ahead of a wider development and extension of intu Victoriafor which planning permission was granted in July 2014.

The Lace Market and “Hockley Village” area of Nottingham are immediatelyto the east. This is a vibrant, modern section of the city which has beendescribed as “the Soho of Nottingham”. It is home to many design andfashion shops, restaurants, bars, cafes, galleries, the Lace Market Theatre,along with the Capital FM Arena Nottingham which provides a top qualityindoor sports, entertainment and conference venue right in the heart of theLace Market.

DescriptionThe property comprises an attractive Grade II listed character buildingoriginally built in the 1860’s with a more modern rear extension from the1980’s / 1990’s. Arranged over lower ground, ground, first and secondfloors, the property has a stone façade set with sash windows to theoriginal building and brick elevations and double glazed aluminium framesin the extension.

The lower ground floor is accessed from Victoria Street and is used as alounge, bar and club with back of house facilities including offices,kitchens, WC’s and cellar.

The ground floor is occupied as a clothing and accessory store known asARK and is accessed from the corner of the building at its junction ofVictoria Street and Fletcher Gate.

The first and second floors provide largely open plan officeaccommodation which benefit from a 300kg 4-person passenger lift.

PlanningThe property is Grade II listed and situated within the Lace MarketConservation.

AccommodationThe property has been measured by BKR Floor Plans and provides thefollowing areas:

A schedule of floor areas is available to download as well as a set offloor plans.

SiteWe estimate the site area to be approximately 0.04 hectares (0.11 acres).

Rateable ValueAccording to the Valuation Office website the rateable values for theproperty are as follows;

The Uniform Business Rate is 47.1 pence per pound for 2014/2015.

TenureFreehold

TenancyThe property is fully let in accordance with the attached TenancySchedule.

The total current rent is £190,850 per annum which is split between theretail/leisure element of approximately 72% and the office element of28%.

55% of the total income is secured against The Restaurant Group (UK)Limited.

Service ChargeThe service charge budget for the year commencing 25th March 2014is £35,772.00. The expenditure for the year ending 24th March 2014 was£28,517.27. The service charge information is available to download.

The lease of the first floor offices refers to a service charge cap of £8,750per annum plus RPI (excluding utility costs) and the lease of the secondfloor offices is subject to a service charge cap of £18,000 per annum plusRPI. In reality the expenditure has been below the cap so there has beenno service charge shortfall.

Sq M Sq Ft(GIA)

Lower Ground Floor - Leisure 327.29 3,523

Sq M Sq Ft(NIA)

Ground Floor - RetailZone A 35.95 387Zone B 72.00 775Zone C 93.18 1,003Zone D 88.44 952Zone E 23.13 249Remainder 54.72 589ITZA 109.44 1,178Total 367.42 3,955First Floor - Offices 339.18 3,651Second Floor - Offices 330.91 3,562

Address Description Rateable ValueBasement Restaurant & Premises £16,750Ground Floor Shop & Premises £96,500Part First Floor Rear Offices & Premises £8,200

Part First Floor Office & Premises £12,250 Second Floor Offices & Premises £24,250

CovenantsOum Investments Limited (t/a Nirvana) (Co. No. 07155608) hasreported the following abbreviated accounts;

Trading as Nirvana, the venue is a lounge, bar and club which hosts arange of events from bespoke intimate parties and corporate functionsto student and club nights. For further information visitwww.nirvananottingham.co.uk.

(Co. No. 894426) has reported thefollowing figures;

The company’s principal activity is the operation of restaurants. TheRestaurant Group Plc is the ultimate parent undertaking.

The Restaurant Group Plc (Co No. 030343) has reported the followingfigures;

The Restaurant Group plc is a FTSE 250 company listed on the LondonStock Exchange operating in excess of 400 restaurant and pubsemploying over 12,000 people. Its principal brands are Frankie &Benny’s, Chiquito, Coast to Coast, Garfunkel’s, Home Counties PubRestaurants and Brunning & Price.  For further information visitwww.trgplc.com.

Ark Fashion Limited – sub-tenant

The first ARK store opened over 20 years ago in the Leeds CornExchange. As the company grew in size they opened a second storein York in 1994, followed closely by a Sheffield-based ARK store too.Their unique mix of branded fashion and own-label apparel resulted infurther stores opening in Nottingham, Derby, Milton Keynes,Castleford and Manchester. There are now 7 stores across thecountry with more planned in the future.

Along with their in house designed brands Cloak and Hearts and Bows,the company also offers the very best streetwear brands including FredPerry, Carhartt, Cheap Monday, Motel, Ginger Fizz, The Ragged Priestand more. For further information visit www.ark.co.uk.

Brady Solicitors Limited (Co. No. 2442521) has reported the followingabbreviated accounts;

Brady Solicitors is an award-winning property law firm with a strongheritage in property litigation and the property management sector. Thefirm was winner of the solicitor of the year at the Property ManagementAwards 2011-2012 organised by News on the Block and was a finalist in2012-2013. Bradys has also been ranked by The Legal 500 (consideredto be the most comprehensive independent analysis of law firms acrossthe United Kingdom) as a leading firm for Debt Recovery in the EastMidlands region. For further information please visithttp://bradysolicitors.com.

Church Lukas Limited (Co. No. 03267313) has reported the followingunaudited abbreviated accounts:

Church Lukas is an architectural and building consultancy practiceestablished in 1993 and provides professional services to clients acrossthe country. The Company works on a broad range of projects,designing and managing new build, conversion and refurbishmentprojects and provides specialist advice to the property and constructionindustry working with large or small businesses or private individuals. Forfurther information please visit www.churchlukas.com.

Value Added TaxThe property has been registered for VAT and it is envisaged the sale willbe treated as a Transfer of a Going Concern (TOGC).

28th Feb 2013 28th Feb 2012Shareholders’ Funds £3,000 £3,000 31st March 2013 31st March 2012

Current Assets £522,290 £241,287Shareholders’ Funds 217,533 £63,937

31st Dec 2012 31st Dec 2011Current Assets £911,294 £592,919Shareholders’ Funds 518,136 £395,716

30th Dec 2013 30th Dec 2012Revenue £416,107,000 £376,438,000Pre Tax Profit 58,701,000 £48,796,000Shareholders’ Fund 73,097,000 £61,193,000

29th Dec 2013 30th Dec 2012Revenue £579,589,000 £532,541,000Pre Tax Profit 72,685,000 £64,561,000Total Equity 215,965,000 £183,848,000

Accommodation Tenant Net Internal Area Lease Start Lease Expiry Rent Review Rent Rent CommentSq Ft Sq M Per Annum Per Sq Ft

Lower Ground Oum Investments Ltd (t/aNirvana Bar) 3,523 327.29 25.12.1995 24.12.2020 25.12.2015 £34,000 £9.65 ~£33,600 rent deposit held

Ground & Part First The Restaurant Group(UK) Limited 3,955 367.42 07.11.1997 06.11.2022 07.11.2017 £104,500 £26.42

~Underlease to Rett Retail Ltd, who are in liquidation.~Sub-underlease to Ark Fashion Ltd who are in occupation.~Terms currently being agreed for Ark Fashion Ltd to takea direct underlease for a term of 2 years, subject to atenant break at expiry of first year, at a passing rent of£65,000 per annum. Outside 1954 Act Protection

First Brady Solicitors Limited 3,651 339.18 26.07.2010 25.07.2015 N/A £24,850 £6.81 ~Service charge payments capped at £8,750pa, plus RPI(excluding utility costs)

Second Church Lukas Limited 3,562 330.91 07.12.2008 06.12.2013 N/A £27,500 £7.72

~ Tenant currently holding over and has expressed interestin renewing lease. Inside 1954 Act Protection. S.25 Noticeserved which expires 10th Oct 2014. Tenant has requestedan extension of time for the statutory deadline to lodge theapplication at court. The extension requested is to 9thJanuary 2015.~Service charge payments capped at £18,000pa, plus RPI

14,691 1,365 £190,850 £12.99

Imperial Building, 20/22 Victoria Street, Nottingham NG1 2EX - Tenancy Schedule

ContactSinger Vielle94-96 Wigmore Street dale@singervielle.co.ukLondon W1U 3RFTel: 020 7935 7200 richard@singervielle.co.ukFax: 020 7486 8511www.singerviellesales.com neil@singervielle.co.uk

faye@singervielle.co.uk

jackie@singervielle.co.uk

Vendors Solicitor

Freeth Cartwright LLPCumberland Court gillian.roberts@freethcartwright.co.uk80 Mount StreetNottingham NG1 6HH Atiyya.Khaliq@FreethCartwright.co.ukTel: 0845 050 3611

ProposalOur client is seeking offers in the region of £2,000,000 (Two MillionPounds), subject to contract, reflecting a net initial yield of 9.0%.

Investment Considerations

Subject to Contract & Exclusive of VAT

Singer Vielle for themselves and for the Vendors or Lessors of this property whose Agents they are give notice that:1. The particulars are set out as a general outline only for the guidance of intending purchasers or lessees, and do not constitute, nor constitute part of, an offer or contract2. All descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are given in good faith and are believed to be correct but any intending purchasers or tenants should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the correctness of each of them.3. No person in the employment of Singer Vielle has any authority to make or give any representation or warranty whatever in relation to this property.4. All maps are for identification purposes only and should not be relied upon for accuracy.5. Unless otherwise stated, all prices and rentals quoted are exclusive of Value Added Tax to which they may be subject.Under no circumstances shall Singer Vielle be liable to you for any direct, indirect, consequential, incidental or special damages arising out of your purchase or lease of any Property.

Unless otherwise stated, all prices and rents are quoted exclusive of VAT.

These details are believed to be correct at the time of compilation, but may be subject to subsequent amendment.

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