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VALUATION REPORT

RELATING TO

LAND AND BUILDING KNOWN AS NEW

OXFORD HOUSE, BARKERS POOL,

SHEFFIELD, S1 1EQ

TITLE

Figure 1: Property listing on EGi Figure 2: Property location

Figure 3: Subject property frontage

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Table of Contents
1. Basis of Valuation.......................................................................................................................2
1.1. Market Value.........................................................................................................................2
1.2. Market Rent..........................................................................................................................2
1.3. Insurance Reinstatement Cost Valuation..............................................................................3
2. Extent of Inspection and Investigation.....................................................................................3
3. Assumptions............................................................................................................................5
4. Liability exclusion......................................................................................................................6
4.1. Liability Limitation............................................................................................................6
4.2. Publication...........................................................................................................................7
4.3. Complaints Handling Procedure.......................................................................................7
5.1. Description..............................................................................................................................7
5.2. Construction..............................................................................................................................7
5.3. Accommodation......................................................................................................................7
5.4. Services....................................................................................................................................8
5.5. External...................................................................................................................................8
5.6. Location....................................................................................................................................8
5. Condition.....................................................................................................................................9
5.1. Tenure And Tenancies..........................................................................................................9
6. Report on The Title..................................................................................................................12
6.1. Town Planning & Development and EPC..........................................................................12
6.2. Contamination, Flood Risk, & Past Mining Activity...........................................................13
6.3. Valuation.............................................................................................................................14
6.4. Qualifications......................................................................................................................15
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1. Basis of Valuation
1.1. Market Value
The Market Value is the amount that the property sold. This happens on the valuation date

between a willing seller and a willing buyer in an ordinary arm's length transaction after proper

and sufficient marketing is done and the parties have acted with complete knowledge, without

force and have prudently used their resources.

1.2. Market Rent

Market rent is the amount a property or its space is supposed to be let or leased o during the

valuation between a willing lessor and a willing lessee. It relies on the best lease terms available

during an arms-length transaction and after proper and robust marketing has been done where the

interested parties acted with solid knowledge and with a lot of prudence without being coerced or

forced to work
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1.3. Insurance Reinstatement Cost Valuation

The BCIS guides this cost valuation. This valuation process is in tandem with the royal

institution of chartered surveyors. This includes the professional standards commonly known as

the RICS Red Book valuation. This global standard incorporates the international valuation

standards (Abbreviated as IVS), which is effective from the 31st day of January 2020 and was

then preceded by the United Kingdom supplement that was affected as from the 14th day of

January 2019.

An inspection of the property in question was done on 15th September 2022, which was our

valuation date, and the review by the independent valuers as required by the RICS valuation

practice statement and the IVSC. A team of three valuers did the property valuation and was

accredited by the RICS Valuers registration scheme.

The valuers are knowledgeable in property valuation and are therefore well versant with

property valuation and are likely to follow proper instructions.

2. Extent of Inspection and Investigation

The investigations and inspections were done, and they were all appropriate and possible

in certain circumstances based on the valuer's professional judgement.

The inspections, building survey, inaccessible property parts and property service testing

weren't done thoroughly since such claims were presumed to be in the proper condition.

This provides a good reason why there is no opinion relating to the state of the parts that

didn't inspect.

Also, there were never many arrangements that were commissioned for any investigation

relating to the determination of whether or not the high alumina cement concrete, calcium

chloride additive, or other risky or harmful materials that have been used in the property

development process and construction or since its inception.

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Therefore, no statement in this report explains that the property is free from risk in this case. This

is due to valuers assumed that such investigations are supposed to confirm and give a proper

conclusion about the availability or absence of such risks and hazards in its entirety.

Also, no formal inquiries were made to the local planning authority during the preparation of the

valuation process. We could use only a few online inquiries related to the local authorities, which

were possible in relation to the recent planning applications.

Also, there were neither geographical surveys nor investigations commissioned. Therefore, the

report does not provide opinion or assurance that the ground contains enough load-bearing ability

to support the present construction or any other construction that is likely to be erected on it

shortly

There was no assurance or opinion to suggest presence of minerals underneath or other workings

beneath the site or in its vicinity. Thus, it is never a guarantee that there is a disability or fault

underneath that is likely to affect the property or any construction that is thereon

Also, no research was done to determine if the site or the adjoining sites had been contaminated in

the past or if they were affected by the infamous Japanese knotweed.

Subfloors or roof voids were also not inspected; therefore, an inspection in the specific areas

indicated no opinion on other defects.

The valuer's team also assumed that the property complied with the offices, shops, and railways

premises act of 1963, the building and defensive premises act of 1972, and the health and safety at

work act of 1974 related to regulations and legislations made after that.

Finally, the valuers also assumed that property complied with the equality act 2010. the control of

the asbestos regulations act of 2005 and the fire and safety order 2005, among other relevant

statutory regulations, in all respects and that there were not so many outstanding notices against

the property in question.

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3. Assumptions
4.0 The valuation is usually based on some assumptions concerning planning and title

issues. Unless it is stated otherwise, we are not subjected to a duty of verification

and thus, the assumptions made are as stated below:

a) The tenancy details do not include goodwill, fixtures, fittings and non-

fixed properties.

b) No hazardous and risky materials or methods were used during the process of

property construction or have since been incorporated.

c) That valid title exists, and the property is not subject to unusual or

Moreso onerous restrictions, outgoings or encumbrances.

d) The property's value is not impacted by matters that can be unmasked by local

research, from the replies and local search to the usual inquiries or by any

statutory notice. Neither the property nor its current condition nor its use or

intended use is likely to be unlawful.

e) Those parts inspected can neither show the material defects nor make the

value alter the materiality of the valuations.

f) There are no contaminative uses that have been carried out on the property.

Therefore there is no potential for the contamination of the subject property or

rather from any neighbouring property.

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g) The property has been developed and constructed strictly following the valid

town planning consents and building regulations approvals. It complies with all

the relevant statutory or other notices about the property or its current use.

h) No recorded account for deferred taxation is likely to arise when property

disposal has been done.

i) The entire direction given in report assumes that the property is looked at by

facing the building's front elevation

j) There are a lot of adequate rights of how all the adjoining land, driveways,

roads, and passageways for reasons of accessing the property and there shall be

no onerous liabilities concerning their maintenance.

4. Liability exclusion
The valuation process, in this case, is very confidential to the client and the client's professional

advisers. Thus it is provided for the purposes stated and the main reason for the use of the

indicated client. The valuer is expected to accept responsibility to the client only and shall prepare

the report with the required skill, care and due diligence with a lot of reasonability that is desired

of a very skillful and competent surveyor.

4.1. Liability Limitation

The business liability that shall emanate from either breaching of contract or negligence or any

other cause will in no event be beyond ten times the fee agreed and documented in our

engagement terms. Therefore, this doesn’t limit or exclude our professional liability for actual

fraud relating to the death or personal injury that arises from our negligence.

Therefore, none of our employees, business partners, directors, or professional consultants shall

have or owe the client a duty of care or personal liability.

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Any claims must be brought no later than two years after the date the claimant should have been

aware of the potential claim and, in any event, no later than four years after any alleged

breach.This report shall not accept liability to the moment that the payments that are under these

terms are fully paid and catered for.

4.2. Publication
Without the written consent of the valuer, no part or whole of this report or reference can be

included in any of the published documents, circular, or statement.

4.3. Complaints Handling Procedure

The property consultant company is supposed to operate a complaint handling procedure

following the rules set by RICS, which is always present when needed

5. The Property

5.1. Description
The property is a seven-storey building located on Barker’s Pool, with its EGi listing.

5.2. Construction
The property was built in the 1960s. On the ground floor are two retail units and, above, there are

six floors of office accommodation. Nationwide Building Society owns the entire property, and

since the Heart of the City II plans was confirmed, the renewed interest in the area has resulted in

the freehold interest in the property being put on the market.

5.3. Accommodation
The property offers the following accommodation measured on a Net Internal Area basis by

"RICS Property Measurement 2nd Edition May 2018."

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Unit 1 M2 Ft2

Owner, Nationwide 28 644

Building Society

Unit 2

Frontage NIA 7 150

Basement for storage 7 140

5.4. Services
This valuation did not look at the services offered and therefore assumes that all services within

the property are in the best possible condition and functioning perfectly. The available services

include connecting a mains drainage, gas, electricity, and water from public supplies.

5.5. External
Both the left and right sides of the property have been observed to have been properly covered to

create a good parking space that is likely to have several cars parked, a sufficient room for

customers who visit the business premise. On the other hand, the front observations indicate

certain greeneries, all made of concrete, which makes the property attractive and all lead to the

road. The back side of the property is all made of concrete yard that connects to the road and also

serves as the bay for loading for the business that are already using the property

5.6. Location
The building is located on Barker’s Pool. Nationwide Building Society owns the entire property.
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5. Condition
There was a limited internal inspection of the occupiers of the property, the stored items,

furniture and fittings, and floor coverings.

As observed, the property is affectionately maintained to the best possible standards, both

externally and internally, with no items needing quick disrepair noted during the inspection

process.

Seen that not so many items needed faster repair, which was likely to impact the value or

marketability of the property to a significant level weren't seen hence making the building

condition top qualify and said to be in excellent condition.

There was no sufficient indication of the use of supernormal construction methods that were

likely to give the building abnormal features nor former structural movements that are likely

to affect the quality of the structure. The building's age is not expected to cause suspicion of

the availability of any material that is hazardous or is likely to result in structural challenges

and defects.

5.1. Tenure And Tenancies

The tenancy of the property was not well seen, but instead, it was assumed that it was not likely

to contain any supernormal agreements or restrictions that would likely impact the value. The

buildings tenancy details are as indicated below:

Industrial Tenant Lease Rent pa Notes

Unit 1 Nationwide Frontage 28m N/A Owner

Building Gross internal area

society 644sq.m.

No rent review
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Unit 2 Holland & Frontage 7m, £78,825 IRI terms

Barrett Ground floor retail

area sq.m

Basement for

storage 140 sq.m.

NIA

5 yearly

upwards only

rent reviews

For a term of

25 years

6 renewed at

expiry seven

years ago

Rent was

seen to be

below the

market rent

Office floors 1-2 Nationwide Nil Nil Owner

Building

society

Office floor 3 Let to - Took £36,500 IRI terms

properties occupation

R Us.' two years

ago

- The
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tenancy is

on a 15-

year lease

- Five yearly

rent

reviews

- Rent

reviews

negotiated

to be

upwards

and

downwards

by the

tenant

Office floors 5-6 Vacant Nil Nil Nil

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Notably, any solicitors are advised to look for the tenancy information and guidelines as

this will likely impact the valuation figures. Each office floor is 340 sq.m. IPMS3. All

office floors have two parking spaces to the rear, included in the rent. It costs the current

owner £750 p.a. per space to provide the parking, and external repairs and maintenance for

all office floors together cost a total of £6,000 p.a

6. Report on The Title

It is essential to observe that the report title is yet to be provided. Since it is a must to be

delivered, the valuers have the accurate figures wherever the report is expected to be

availed to the necessary persons.

6.1. Town Planning & Development and EPC

It is important to note that the building and regulations and the consent for planning were not all

inspected during this stage. Thus, no fire risk assessment or asbestos management plan has been

reported. Therefore, the valuers are recommending that solicitors verify the existence of the

appropriate approvals and certificates as demanded by the requisite authorities.

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Moreover, valuation of property was done based on the assurance that the planning possesses

consent or has established to use, which falls within the precincts of Class E of the town and

country planning order number 1987 in line with the amendment.

The energy performance certificate is present for the building that provides the structure with a

strong rating of B in terms of its performance and efficiency, hence likely to increase the facility's

values and marketability.

6.2. Contamination, Flood Risk, & Past Mining Activity

During the examination, we could not find any contaminants that were likely to affect the property

or the nearby areas. It is anticipated that it will affect the valuation process. The area's location is

not near the site where mining operations once occurred. There is little chance of flooding because

state highways border the area with rainwater drainage systems.

6.1.VALUATION COMMENTARY

The building would profit from the growing demand for leasehold offices brought on by recent

increases in lease and cap gains. Due to the building's exaggerated manner, it will only take a brief

marketing period until a sale is made at the value price recommended in this report. If more were

required, a protracted marketing time would be required. Otherwise, the property's value would

suffer. Given the agreed-upon rent and the length of the tenant lease terms, the renters currently

renting the property can have a reasonably robust covenant strength, making them low-risk tenants.

There is no rolling break provision in the current leases, which will expire in January 2024, June

2028, and April 2026, respectively. The value and marketability of the property will be constrained

as a result
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Given that more firms are moving toward remote work from home, the COVID-19 epidemic and

the Brexit situation are indeed likely to affect just the real estate market and, consequently, the

valuation and commercial viability of the properties. Although the real estate market has begun to

stabilize, it is anticipated that lease earnings, particularly from office spaces, will increase more

slowly compared to other sectors.

Due to the impact of these factors, market activity in all industries has been affected, making it

impossible for the valuation process to rely primarily on prior market prices for comparison or to

inform opinions of worth. Thus, the valuation will be based on "material valuation uncertainty"

by RICS Red Book Global VPS 3 and VPGA 10. Our valuation should be taken with much

caution and less certainty than it usually would.

The quantity surveyors are unaware of any unique or burdensome restrictions, outstanding debts,

or cash outflows that pertain to the site.

6.3. Valuation
The British Sterling Pound (GBP)is used for all valuation figures in this report
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The quantity surveyors depended on our familiarity with the neighbourhood's real estate

market. They have considered information on comparable properties and leases of similar

homes, as well as the asking prices and rentals of houses on the market. To reach the

assessment of value shown here, they also used the market and income strategy to analyze this

data.

We believe that the present value of the building is £400,000, considering all of the assumptions stated

and the current leases. Additionally, we believe that given the assumptions and the medium-term renters,

the property's current market rent is: £ 510,000. According to our estimation, the market rent for the

property under the current lease terms is £ 28,000 per year. It is advised that a valuation for

£2,000,000 be performed for insurance and reinstatement purposes (encompassing expert

expenses but omitting VAT, cost of rent, and the price of alternative building for the

rehabilitation term).

6.4. Qualifications
External RICS produced this report registered valuer, Michael Smith FRICS IRRV, who

behaved honestly, objectively, and independently. She performed it on behalf of Honor-based

Property Consulting Ltd, which provides advisory services, including surveys and valuations,

and the views represented on its. The claims and opinions in the report are solely the

responsibility of the consulting firm. Since the claims and opinions in this report are the total

obligation of the senior consultant, the firm head and the assessor will not be personally liable

for them.

Chartered Valuation Surveyor Honor-based

Property Consulting Ltd,

Date: 15th September 2022