SUNDERLAND

JOHN STREET

P20-25

SUNDERLAND

JOHN STREET, SUNDERLAND2 3

P28-29P26-27

LOCATIONTHE CONSTRUCTIONCOMPANY

SUNDERLAND

JOHN STREETP4-7 P8-9 P10-13

P14-17

P30-31

INVESTMENT OVERVIEW

RENTAL VALUATION

PROJECTED RETURNS

PROPERTY SPECIFICATION

PURCHASE PROCESS

P32-33

DISCLAIMER

P18-19

CONSTRUCTIONUPDATE

INVESTMENTOVERVIEWJohn Street is an exceptional opportunity to invest in an excellent below market value development at the heart of the growing maritime city of Sunderland.

JOHN STREET, SUNDERLAND

£89,950

£104,950

Q4 2016LEASEHOLD

ONE BEDROOMAPARTMENTS

TWO BEDROOM APARTMENTS

COMPLETION SCHEDULED250 YEARS

4 5

CONSUMER PROTECTION FROM UNFAIR TRADING REGULATIONS 2008 (CPR)

These regulations prohibit unfair practices. To satisfy our obligations under the CPRs, our sales particulars have been prepared by us upon the instruction of the vendor and in accordance with these regulations. The property details are produced in good faith and are not intended to form part of a contract.

BELOW RICS* VALUATION

ONE BED: 5.32% BELOW

TWO BED: 10.11% BELOW

*Royal Institute of Chartered Surveyors

JOHN STREET, SUNDERLAND6 7

“Sunderland has a fast growing digital sector with the third highest digital salary growth in the UK between 2012-2015, putting them on the top 20 highest digital salaries in the UK in 2015.”

TECH NATION 2016

JOHN STREET, SUNDERLAND

RENTAL VALUATION

8 9

John Street is located in the heart of Sunderland’s city centre, providing an excellent central location for tenants in the city.

With the Central Rail and Metro Stations just 0.10 and 0.12 miles from the development, John Street is ideally placed for commuters looking to travel to work in the surrounding areas, as well as enjoy excellent transport links to neighbouring Newcastle.

John Street is also suitable for student tenants, standing less than 800 metres from the University of Sunderland city campus.

Given the exceptionally desirable location of John Street, the lettings agent for the project – Hackett Property – has provided the following rental valuations for the property:

1 BED APARTMENT

NET ANNUAL RENT

GROSS ANNUAL RENT

£6,480

£8,160

2 BED APARTMENT

NET ANNUAL RENT

GROSS ANNUAL RENT

UP TO £8,324

UP TO £10,200

JOHN STREET, SUNDERLAND

Launch Price £104,950

Gross Rent (Per Month*) £850

Gross Rent (Per Annum*) £10,200

Projected Service Charges £697

Lettings Fee £979

Ground Rent £200

NET Rent (Per Annum) £8,324

NET Rental Return % 7.9%

PROJECTEDRETURNS

10

Launch Price £89,950

Gross Rent (Per Month*) £680

Gross Rent (Per Annum*) £8,160

Projected Service Charges £697

Lettings Fee £783

Ground Rent £200

NET Rent (Per Annum) £6,480

NET Rental Return % 7.2%

11

FULL CASH PURCHASE1 BED APARTMENT 2 BED APARTMENT

BASED ON UNIT 3 BASED ON UNIT 2

STAMP DUTYLAND TAX

To find out if your purchase will incur Stamp Duty, please visit the Stamp Duty overview and calculator at:

https://www.gov.uk/stamp-duty-land-tax/overviewhttp://www.hmrc.gov.uk/tools/sdlt/land-and-property.htm

The purchaser may be liable for property related taxes in connection with property purchases and ownership in addition to any ongoing personal or corporate taxation which may apply.

Please Note:

This example is for illustration purposes only; the projections for the income, occupancy levels, room rates and management charges are not guaranteed and are subject to change. We accept no responsibility for any changes or inaccuracy with these figures; they are provided in good faith as a general guide and based on what we believe to be correct but do not form part of any offer or solicitation.

* Projected

JOHN STREET, SUNDERLAND12

Sunderland’s rental yield was the 8th highest in the UK for the period of 2010-2016. Higher than the national average.

13

STUDY BYBUY-TO-LET INDEXAND ZOOPLA 2016

CENTRALLOCATION

CONVERTED OFFICE

BUILDING

PROPERTYSPECIFICATION

HIGH-QUALITY CONTEMPORARY

DESIGN

1 BEDROOMAPARTMENTS

51M2

14 15JOHN STREET, SUNDERLAND

0.10 MILES FROMSUNDERLAND STATION

0.27 MILES FROM THE BRIDGES

SHOPPING CENTRE

2 BEDROOMAPARTMENTS

54-67M2

MODERNSHOWER ROOM

16 JOHN STREET, SUNDERLAND

FURNITURE PACKSFor each style of apartment, there is a furniture pack available, providing purchasers with a carefully selected range of contemporary designs, chosen specifically for apartments at John Street.

The Developer will contribute £1,000 towards the furniture packs below. There is no cash alternative and the offer is not transferable if investor buys their own furniture pack.

1 BEDROOMAPARTMENT

2 BEDROOMAPARTMENT

DOUBLE WARDROBE 2X DOUBLE WARDROBE

CHEST OF 3 DRAWERS 2X CHEST OF 3 DRAWERS

4FT BED WITH FAUX LEATHER HEADBOARD AND MATTRESS

2X 4FT BED WITH FAUX LEATHER HEADBOARD AND MATTRESS

BEDSIDE CABINET 2X BEDSIDE CABINET

MICROWAVE, TOASTER & KETTLE MICROWAVE, TOASTER & KETTLE

FRIDGE/FREEZER FRIDGE/FREEZER

COFFEE TABLE COFFEE TABLE

3 SEATER FAUX LEATHER SOFA 2 & 3 SEATER FAUX LEATHER SOFA

17

£3,150 + VAT - £1,000 CONTRIBUTION FROM THE DEVELOPER

£2,650 + VAT - £1,000 CONTRIBUTION FROM THE DEVELOPER

IMAGES TAKEN ON SITE

IN OCTOBER 2016

18 JOHN STREET, SUNDERLAND 19

CONSTRUCTIONUPDATEJohn Street is currently undergoing the construction process to make this office to residential conversion one of the most desirable apartment locations in Sunderland and is due to complete in Q4 2016.

21JOHN STREET, SUNDERLAND20

277,150PEOPLE LIVE INSUNDERLAND

Sunderland is a thriving city with a lot of opportunities for its residents with 80 international companies, such as Nike and Nissan, having relocated to the city, catering to over 25,000 employees.

Sunderland city council is investing money in the city centre to breathe new life into the city. Redevelopment projects comprise a new 1.8million public square which was completed in 2015.

Source: Office For National Statistics

ONLY NON-CAPITAL CITY WITH A FRIENDSHIP

AGREEMENT WITH WASHINGTON DC

UK DIGITAL CITY 2014

UK CITY OF CULTURE 2021

CANDIDATE

GREAT TRANSPORT LINKS WITH DIRECT

TRAINS TO LONDON, CARLISLE AND NEWCASTLE

SUNDERLANDSource: Sunderland 2021

HIGHER PERCENTAGE OF PEOPLE IN WORKING AGE (16-64) THAN THE NORTH WEST ENGLAND

AND UK AVERAGESource: Nomis Labour Market

Report 2015

INVESTED IN THE NEW WEAR CROSSING PROJECT

£100M

Source: Sunderland Council

23

400THE GROWTH OF OVER

INVESTED IN A NEWVIBRANT CULTURAL

QUARTER

£2.4MTHE TURNOVER FOR THE

DIGITAL SECTOR INCREASED BY

BETWEEN 2010 & 2014

44%

Source: Office For National Statistics

Source: Sunderland CouncilSource: Tech Nation 2016

JOHN STREET, SUNDERLAND22

SUNDERLANDIN NUMBERS

£1 BILLIONINVESTED IN

REDEVELOPMENTSACROSS THE CITY

Source: Sunderland 2021

8,459 PEOPLEBETWEEN 2014 AND 2015

RELOCATED TO SUNDERLAND

SOFTWARE BUSINESSES HAVE BEEN SUPPORTED BY

SUNDERLAND SOFTWARE CITY

OF THE GREENEST CITIES IN THE UK WITH 57%

GREEN SPACE IN THE CITY AREA

TOP 5

Source: Sunderland 2021

Source: Sunderland Software City

THE AVERAGE

HOUSE PRICEHAS INCREASED BY

BETWEEN JANUARY 1995 AND JUNE 2016

225%Source: Home.co.uk

25JOHN STREET, SUNDERLAND24

The average property price in Sunderland increased by 4.6% year-on-year in July 2016

LAND REGISTRY

PRIESTLEY CONSTRUCTION

PREVIOUS DEVELOPMENTS

THE GRAND MILL

QUEBEC STREET

SANTORINICOURT

BRADFORD

63 student studio apartments and pods in a mill conversion

19 self-contained student studio apartments in a mill

conversion

16 high specification two bedroom apartments

LEEDS

MANCHESTER

27

Priestley Construction specialise in conversions and have an excellent track record of delivering projects on time and to an exacting standard.

Priestley Construction have a growing portfolio of conversion schemes ranging from small, luxury developments such as Stableford Hall, Manchester and Boyds Mill, Leeds to large residential apartment schemes with projects in the pipeline which will deliver 400+ new homes over the next two years.

Other completed developments include Airedale House, The Grand Mill and Quebec Street in Bradford, Sartoria Court in Manchester and the Boat House in Liverpool.

Priestley Construction will be principal contractor on the project. In house expertise and a hands on approach ensures rigorous attention to detail throughout the build process.

THE CONSTRUCTION COMPANY

26 JOHN STREET, SUNDERLAND

29

8

9

JOHN STREET, SUNDERLAND

LOCATION

28

2

1

7

10

4

3

5

Sunderland, SR1 1HT18 JOHN STREET

4

12

3

5

7

8

9

6

0.07 milesLibrary & Arts Centre1

0.10 milesCentral Station2

0.12 miles

Sunderland MetroStation

3

0.14 miles

Sunderland SoftwareCity

4

0.70 milesStadium of Light8

0.85 milesSunderland Docks9

50.18 milesEmpire Cinema

0.27 miles

The Bridges Shopping Centre

6

7

0.48 miles

University of SunderlandCity Campus

31

RESERVATION

SOLICITORS INSTRUCTED

EXCHANGE OF CONTRACTS

LEGAL COMPLETION

Reservation form completed & £1,000 non-refundable fee paid and deducted from the

deposit on exchange

Solicitors instructed, legal pack sent out & anti-money laundering

process completed

100% of purchase price, less the reservation fee, paid to solicitors & contracts exchanged within

28 days reservation

The purchase is completed & Title Deeds registered with

the UK Land Registry

JOHN STREET, SUNDERLAND

PURCHASEPROCESS

30

JOHN STREET, SUNDERLAND32

DISCLAIMER

33

1. This information is and remains the property of the Master Agent is made available to the addressee subject to the terms and conditions of this Disclaimer. A copy of this information is made available to you for your personal use and must not be given, shared or communicated with any other person except for your own professional advisors for the sole purpose of obtaining their advice.

2. The Agent and the Master Agent endeavour to provide accurate, up to date and complete information but makes no warranties or representations as to the accuracy, reliability or completeness or otherwise of the information contained herein. The Master Agent assumes no responsibility or liability for any omissions or errors contained in the information.

3. The Agent acts as a sub-agent to the Master Agent; specifically, the Master Agent accepts no liability to the Purchaser for fraudulent misrepresentation made by the Agent.

4. The Master Agent acts as an agent for the Developer and as such accepts no liability to the Purchaser. Further and in any event, if notwithstanding this provision liability is established against the Master Agent, then it is agreed that the total maximum amount of such liability is limited to and shall not under any circumstances exceed the amount of the net Reservation Fee of any reservations made.

5. Purchasers are required to conduct their own due diligence and make their own judgement on the property being offered. Purchasers must verify the information and any speculative information offered by the Agent and the Master Agent. Purchasers are

strongly recommended to perform their own financial and legal assessment of any opportunity prior to making any commitment to participate.

6. Neither the Agent nor the Master Agent provides or offers an opinion as to whether a particular property is appropriate for a particular individual and owes no duty of care to the Purchaser.

7. The Agent and the Master Agent, respectively, each offer only an opinion on the opportunity in general terms and in relation to the market as a whole. Neither the Agent nor the Master Agent is able to comment on or give opinions on the strength or validity of any bond or insurance policy and Purchasers are strongly recommended to perform their own diligence and seek legal opinion.

8. Neither the Agent nor the Master Agent accepts any responsibility for amendments to or changes in rates of taxation, introduction of new taxes, changes to existing legislation or the introduction of new legislation or any matters relating to the final contractual arrangements for any purchase.

9. The Purchaser may be liable for property-related taxes in connection with property purchases and ownership in addition to any ongoing personal or corporate taxation which may apply; for the avoidance of doubt, neither the Agent nor the Master Agent shall have any liability for such taxes.

10. Where rental assurances or guarantees are offered as part of the purchase, the Developer will contract directly with the Purchaser to assure the rental income at the specified rate and for the specified duration, but this is not supported by an insurance policy, bond

or bank, unless specified, nor is this warranted or supported by the Agent or the Master Agent.

11. Descriptions of property, homes, buildings, locations or Development particulars, specifications and pictures and artists impressions of any property, home, building, location or Development are given in good faith and believed to be correct, but they do not form part of any offer or solicitation and are intended only as a general guide. Neither the Agent nor the Master Agent controls the building or development of any project.

12. All descriptions are intended only as a general guide and are not to be relied upon by the Purchaser or by any other interested parties as a statement or representation of fact and the Purchaser or any interested parties should satisfy themselves by inspection or otherwise.

13. The Purchaser acknowledges that Developers reserve the right to alter plans, designs and specifications at any time without prior notice. Therefore, neither the Agent nor the Master Agent will be responsible for such changes.

14. The Agent and the Master Agent have endeavoured to provide the highest quality information, backed up by substantial experience and proven evidence from the marketplace. However, individual interpretation of information may vary, and individual circumstances, skills, abilities, knowledge and attitude play an important part in achieving a particular outcome. In addition, the future behaviour of the property market may not follow past experience, either, internationally, nationally or locally. For this reason, Neither the Agent nor

the Master Agent warrants, guarantees or promises that Purchaser will make a profit from any property transaction entered into, whether as a result of acting on information contained within this document or otherwise. As with any purchase, this may result in a loss.

15. Where applicable, as in the case of a consumer and not a business customer (“Consumer”) the Consumer Protection from Unfair Trading Regulations 2008 and the Consumer Protection (Amendment) Regulations 2014 (singly or together the “CPR”) which prohibit unfair practices, shall apply. To satisfy the obligations under the CPR, the sales particulars have been prepared by the Master Agent upon the instruction of the Developer and in accordance with these Regulations. The sales particulars are produced in good faith and are not intended to form part of a contract. Where the CPR apply, the Consumer may, without giving reason, cancel this Agreement within 14 (fourteen) days from the day it was signed. Such cancellation must be in writing and may either be in the Consumer’s own words, or he / she may ask the Master Agent for a form of cancellation notice. For the avoidance of doubt, if the Consumer cancels, the Developer must re-pay the Reservation Fee to the Consumer

16. Neither the Agent nor the Master Agent is authorised or regulated by the Financial Conduct Authority (“FCA”) and as such neither is permitted to offer financial advice about investments, whether regulated or unregulated; accordingly, neither the Agent nor the Master Agent offers financial advice. In case of queries or doubt, Purchaser and any other interested parties should consult an FCA-regulated Independent Financial Advisor.