Asset Management

FINANCIALS Purchase price: £7.75m Total costs: £10.75m (including refurbishment costs) End value: £15m KEY ACHIEVEMENTS Acquired a secondary office investment in a prime location at a competitive price in a strong market. Net Initial Yield on Purchase was 9.25%. Negotiated a 10-year lease extension with the Tenant who required the building to be refurbished to remain in the building. New lease is agreed at a higher rent with fixed uplifts. Conversion of a secondary investment into a prime asset by re-gearing the lease, refurbishing the property and restructuring repairing obligations to create an institutional investment. The lease re-gear and refurbishment delivers a market value improvement of £4.25 million. The office and retail investment was sold to Tesco Pension Fund on

The property offered good secure income with numerous asset management opportunities as the tenant was not in occupation. FINANCIALS Purchased for £13.25m Surrender of lease completed for a significant reverse premium to the Landlord. Sold with Vacant possession in November 2012. IRR achieved on sale of 79.5% pa from purchase. KEY ACHIEVEMENTS Agreed the outstanding rent review with the freeholder securing a reduction in rent payable under the Headlease. Secured planning consent for a 138 bed hotel in December 2011. Concluded a pre-letting to a PLC hotel operator in October 2011. Ultimately not completed. Agreed a surrender with BT (the tenant), retaining the ground floor retail sub-tenants, in return for a substantial reverse premium. Agreed a purchase of the freehold