C O N F E R E N C E H O U S E

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F O R S A L E

P R I M E C I T Y C E N T R E R E F U R B I S H M E N T O P P O R T U N I T Y

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E X E C U T I V E S U M M A R Y

> High profile corner office building located in Edinburgh’s Exchange District

> Refurbishment or redevelopment opportunity with the benefit of short term income

> Open plan office accommodation extending to 30,746 sq ft (NIA)

> 7 secure car parking spaces located in the basement

> Proximity to excellent transport links

> Strong Edinburgh office market dynamics providing excellent potential for value enhancement via a refurbishment programme

> Potential alternative use opportunities, subject to planning

> Breathtaking views of Edinburgh’s many iconic sites

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E D I N B U R G H

Edinburgh is one of Europe’s most vibrant capital cities, renowned for its cultural and historic attractions. The world’s first UNESCO City of Literature, it holds status and reputation as a major financial, legal and commercial centre and an innovative, emerging tech hub.

Edinburgh has a resident population of approximately 495,000 with a primary catchment in the region of 1 million people. It is one of the fastest growing and most productive cities in the UK and its workforce is one of the most highly educated in the UK. Principal employment sectors include financial and business services and the public service sector.

Edinburgh has a strong reputation for education with an impressive network of higher education and research institutions, with approximately 80,000 students studying in the capital. Universities in the city include the University of Edinburgh, Heriot Watt University, Napier University and Queen Margaret University.

Owing to Edinburgh’s UNESCO World Heritage status, the city proves a major tourist destination. Attracting approximately 3.5 million tourists a year, Edinburgh is the most visited tourist destination in the UK outside London and boasts the second highest hotel occupancy rate in Europe.

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EdinburghStation

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T H E E X C H A N G E

Master planned two decades ago as Edinburgh’s new focal point for the city’s evolving financial sector, the Exchange District is home to an impressive array of occupiers.

Occupiers of the Exchange District benefit from a wide-ranging, high quality list of amenities and services on their doorstep, including the established retail and leisure facilities of Shandwick Place, Princes Street and George Street, and the evolving offering on Morrison Street and Lothian Road. This includes more Michelin starred restaurants than any UK city outside

London, two iconic five star hotels, and a broad range of bars and nightlife opportunities. Within a short walk and the wider vicinity of Conference House is the Co-Op, Sainsbury’s Local and Tesco Express, in addition to a diverse and exciting and eclectic range of independent coffee and sandwich shops, bars and restaurants.

The combination of high quality office buildings and the wide variety of restaurants, hotels, shops, cafes, bars and health and fitness clubs, create a high end mixed use environment.

Co-Op

Hot Yoga

One Spa

Pure Gym

Lyceum Theatre

Usher Hall

NCP Castle Terrace

Odeon Cinema

All Bar One

Harvey Nichols

John Lewis

St James Quarter

Tesco

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Atria- PwC- Brewin Dolphin- EY- Green Investment Bank- AON- Scottish Law Society

Exchange Crescent- Shepherd and Wedderburn- Grant Thornton- JLL- Moody’s- Institute and Faculty of Actuaries

40 Torphichen Street- Bravura Solutions- ZoneFox

Exchange Tower- Addleshaw Goddard

Caledonian Exchange- Lindsays- Hudson- Royal Bank of Canada

50 Lothian Road- Burness Paul- Cairn Energy

Exchange Place- Black Rock- Hymans Robertson

Saltire Court- CMS - Deloitte- KPMG

Standard Life HQ SPEN Site Edinburgh International

Conference Centre Scottish Widows 145 Morrison Street

- Capita

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K E Y E X C H A N G E O C C U P I E R S

SHANDWICK PLACE MORRISON STREET

HAYMARKET STATION1213

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Tram

Having opened in May 2014, Edinburgh’s tram system is one of the most modern in Europe. The network runs from Edinburgh Airport to York Place in the city centre, with stops in various commercial and residential hubs, thereby providing an efficient commuter service into the city from the airport. It has been reported that 5.38 million passengers used Edinburgh Trams during its second 12 months of operation, which equated to a 9.3% increase year on year. The nearest tram halt to Conference House is at Haymarket station, a 5 minute walk away.

Tram times from Haymarket Tram Halt

St Andrew Square 11 mins

Edinburgh Airport 26 mins

Road

The nearby Western Approach Road offers direct access to Scotland’s motorway network. This provides connections to Glasgow (via the M8), Aberdeen/Inverness (via the M90/A9) and the south east/Borders (via the A1 and A7). Numerous bus routes have stops in the vicinity of Conference House, providing connections across Edinburgh and its suburbs. Edinburgh has the highest proportion of regular cyclists in Scotland - 12.2% of the population cycle to work, compared to the national average of 6%. (Transport Scotland).

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Train

Mainline rail services to London, other key UK cities and commuter towns run from Waverley and Haymarket train stations. These well-connected stations have undergone multi-million refurbishments and upgrading programmes to support increased passenger numbers. 20 million people travel through Edinburgh Waverley each year, making it the second busiest mainline station in the UK.

Rail times

Glasgow 45 mins

Manchester 3 hrs 15 mins

Birmingham 4 hrs 20 mins

London 4 hrs 21 mins

Air

Edinburgh Airport is Scotland’s busiest airport. Located less than 8 miles from the city centre, over 30 airlines provide direct services to over 120 destinations throughout Europe, North America and the Middle East. The airport has seen record passenger numbers across 2015 and 2016, and the owner, Global Infrastructure Partners, has pledged to support this growth.

Flight times

London 1 hr 10 mins

Amsterdam 1 hr 20 mins

Frankfurt 1 hr 55 mins

New York 6 hrs 30 mins

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C O N N E C T I V I T Y

Edinburgh benefits from excellent transport links with other cities throughout the United Kingdom and internationally.

Conference House is conveniently located in close proximity to Haymarket train station and tram halt, both of which are approximately five minutes walk to the west, and several nearby local bus services connecting the city’s principal arterial routes.

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D E S C R I P T I O N /S P E C I F I C A T I O N

Strategically and prominently positioned at the western entrance to Edinburgh’s Exchange District, Conference House acts as the gateway building into the heart of Edinburgh’s well-established financial district which hosts a number of internationally renowned occupiers.

> Entrance orientated towards Edinburgh International Conference Centre

> Conveniently located on the corner of Dewar Place and Morrison Street,

> Configured over lower ground, ground and four upper floors.

The specification is as follows:

> Open plan office accommodation, currently fitted out as serviced offices

> Suspended ceilings

> Raised access floors with floor boxes for data and power

> Male and female WCs on each floor

> Disabled WCs on all floors apart from first

> 2 passenger lifts within the main core

> Comfort cooling system part-installed

> 7 secure underground car parking spaces accessed from Dewar Place

Main Reception

East facing 4th floor office

West facing 1st floor office

3rd floor office

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F L O O R P L A N S

BasementGround FloorFirst Floor

Second Floor

Car Park Access from Dewar Place

Main Reception

Third FloorFourth Floor

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A C C O M M O D A T I O N

The property has been measured in accordance with RICS Property Measurement 1st Edition and the accommodation extends to 30,746 sq ft NIA, 31,799 sq ft IPMS 3 and 40,277 sq ft GIA. A full breakdown of IPMS 3 measurements can be found within the dataroom.

NIA SQ FT SqM

5th Floor (Plant Room) N/A N/A

4th Floor 5,270 489.6

3rd Floor 6,005 557.9

2nd Floor 5,997 557.1

1st Floor 5,820 540.7

Ground Floor 4,876 453.0

Lower Ground 2,778 258.1

TOTAL 30,746 2856.4

GIA SQ FT SqM

5th Floor (Plant Room) 115 10.7

4th Floor 6,175 573.7

3rd Floor 6,995 649.8

2nd Floor 6,990 649.4

1st Floor 6,764 628.4

Ground Floor 6,581 611.4

Lower Ground 6,657 618.4

TOTAL 40,277 3741.7

Ground floor meeting room Lift Core Car park

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E D I N B U R G H O F F I C E M A R K E T

Edinburgh’s office market has experienced a sustained and strong level of take up over the past decade which has resulted in a significant shortage of Grade A office stock in Edinburgh city centre. This level of demand, coupled with a significantly constrained development pipeline, has resulted in occupiers seeking refurbished stock in order to satisfy their requirements for open plan space within the city centre.

Edinburgh City Centre Supply

The 5,000 – 6,000 sq ft floorplates provided within Conference House are in alignment with Edinburgh’s consistent demand for this size. Take up figures from recent years highlight the continued demand for floorplates of this nature which account for approximately 30% of city centre take up transactions in recent years. These floor plates will prove to be attractive to a diverse range of occupiers, to include professional services, corporate occupiers and Edinburgh’s readily-evolving TMT sector.

Edinburgh’s constrained development pipeline will see only two new speculative office developments completions in the city centre in 2018 providing circa 100,000 sq ft of Grade A space. There is a subsequent development lag time before the next delivery phase of Grade A accommodation in late 2019. In order to address the consistent demand from city centre occupiers and forthcoming lease events tenants are increasingly seeking good quality refurbished stock to address their accommodation requirements. Conference House offers a timely and attractive opportunity to refurbish and reposition the property to benefit from the prevailing market conditions.

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P L A N N N G

Conference House presents the potential opportunity for redevelopment to alternative uses. Parties considering refurbishment or potential redevelopment opportunities should make inquiries with the City of Edinburgh Council planning department.

The adjacent Dewar Place (SPEN / Exchange 2) site is currently subject to formal development proposals for two hotels (Class 7), offices (Class 4), retail (Class 1), restaurant(s) (Class 3), a pedestrian deck, bridge link and accesses from Western Approach Road and Canning Street (planning application ref: 17/02227/PPP). The formal target determination date is 22 September 2017.

Our clients are seeking offers unconditional on planning.

E P C

The EPC rating for the building is F. A copy of the EPC certificate and associated Section 63 Action Plan can be found within the dataroom.

V A T

The property is registered for VAT.

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Edinburgh City Centre take up by grade

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Tenant Demise Net Internal Area (sq ft)

Expiry Date

Leased Car Spaces

Guaranteed Rent

Guaranteed Rent (psf)

Rent per space

ERV (psf)*

ERV per space

Comments

Regus (Edinburgh Morrison Street) Ltd

Part 1st, 2nd, 3rd. 4th Floor

19,130 24/06/16 5 £284,913 £14.89 £2,500 £27.00 - £28.50

£3,000

Now held on tacit relocation until 24/06/2018. The lease also provides for a further payment of profit rent triggered by the company achieving specific turn-over thresholds and a top up profit share SE has not received any profit rent or profit share since 2011.

Payfont LtdPart 1st Floor

3,836 30/06/17 £56,688 £14.78 £27.00 - Now held on tacit relocation until 30/06/2018

VacantPart Ground Floor

3,304 VACANT VACANT £25.00 VACANT

Regus (Edinburgh Morrison Street) Ltd

Part Ground Floor

1,428 24/06/16 1 £22,176 £15.53 £2,500 £25.00 £3,000

Now held on tacit relocation until 24/06/2018. The lease also provides for a further payment of profit rent triggered by the company achieving specific turn-over thresholds and a top up profit share SE has not received any profit rent or profit share since 2011.

VacantLower Ground Floor

2,638 VACANT VACANT £19.50 - VACANT

TOTAL 30,336 £363,777

T E N A N C I E S

Regus (Edinburgh Morrison Street) Ltd are currently in breach of their monetary obligations under the leases. Discussions are beng undertaken between the landlord and tenant.

*ERVs are subject to a good quality refurbishment being undertaken

V I D E O T O U R

On behalf of our clients we have undertaken a video tour which highlights the internal and external elements of the property. The video can be found at:

www.squarefootmedia.co.uk/conferencehouse

R A T E A B L E V A L U E

We have been verbally advised that the rateable value for the property is approximately £415,000 per annum. The subjects are entered in the Valuation Roll as multiple entities. Interested parties should make their own enquiries.

B A S I S O F S A L E

The Property is held by way of a long leasehold interest and a heritable interest, both of which are owned by our clients and would be transferred to the purchaser on completion.

Our clients are seeking offers unconditional on planning for the property with ability to transact by December 2017. We request all interested parties note interest to the sole selling agent.

F U R T H E R I N F O R M A T I O N

Detailed information including floorplans, building survey, asbestos register, fire risk assessment, EPC and Heritable Title are available via the data room at www.savills.co.uk/conferencehouse

Bidders are expected to have reviewed all information in the dataroom prior to submitting a bid.

For further information, please contact the sole selling agent:

Keith Dobsonkdobson@savills.com0131 247 3801

Kate Grahamkgraham@savills.com 0131 247 3821

Important Notice

Savills, their clients and any joint agents give notice that:

1. They are not authorised to make or give any representations or warranties in relation to the property either here or elsewhere, either on their own behalf or on behalf of their client or otherwise. They assume no responsibility for any statement that may be made in these particulars. These particulars do not form part of any offer or contract and must not be relied upon as statements or representations of fact.

2. Any areas, measurements or distances are approximate. The text, photographs and plans are for guidance only and are not necessarily comprehensive. It should not be assumed that the property has all necessary planning, building regulation or other consents and Savills have not tested any services, equipment or facilities. Purchasers must satisfy themselves by inspection or otherwise.

Designed and Produced by Savills Commercial Marketing: 020 7499 8644 | August 2017

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