MULTI LET SOUTH EAST OFFICE INVESTMENTUnits 3 & 4, Brittingham House, Orchard Street, Crawley, West Sussex, RH11 7AE

INVESTMENT SUMMARY• Alargeprosperousandgrowingsouth-easttown;

• ProminentlysituatedonOrchardStreetintheheartofthetowncentreandimmediatelyadjacenttoanewretailledre-generationsite;

• Asemi-detachedoffice/A2buildingextendingtoaNetInternalAreaof6,801sqft;

• Lettoadiverserangeoffourtenantswithanweightedaverageunexpiredleasetermof4.95years;

• Atotalrentpassingof£69,070perannum;

• Anumberofrecentlettings/renewalsdemonstratingstrengthofdemand;

• Freehold;

• Offersareinvitedinexcessof£720,000subjecttocontractandexclusiveofVAT.ApurchaseatthislevelwouldreflectaNIYof9.0%afterpurchaserscostsof5.80%.

LOCATIONCrawleyisoneofthelargestconurbationsinWestSussex,situatedadjacenttoLondonGatwickAirportandapproximately30milessouthofCentralLondon.CommunicationsareexcellentandthetownbenefitsfromcomprehensivetransportcommunicationwithJunctions9and10oftheM23locatedimmediatelytotheeast.ThesejunctionsprovidedirectaccesstoJunction7oftheM2511milestothenorthwhichinturnprovidesaccesstotheremainderofthenationalmotorwaynetwork.

Thetownisservedbythreemainlinerailwaystations,Gatwick,ThreeBridgesandCrawleywithafastestjourneytimetoLondonVictoriaof30minutesandtoLondonBridgeof28minutes.Theairportislocatedimmediatelytothenorthofthetownandprovidescomprehensiveshortandlonghaulairtravel,beingthesecondlargestpassengerairportintheUK.Heathrowisconvenientlylocated40milestothenorthwestviatheM25.

Crawleyhasadiverseandgrowingpopulationofapproximately106,600(Census2011)andanextensiveprimarycatchmentpopulationof477,000benefittingfromitslackofproximitytocompetingcentres.Thestrengthofthetownisdemonstratedinitslowunemploymentratewithjobseekerscurrentlyaccountingfor2.3%oftheworkingagepopulation,considerablybelowthenationalaverage.

Approximatedistancesfromthesubjectproperty:

• M23(Junction10) 2Miles• M25(Junction7) 12Miles• LondonGatwickAirport 2Miles• Brighton 26Miles• CentralLondon 36Miles• CrawleyRailwayStation 0.25Miles• Croydon 10Miles

MULTI LET SOUTH EAST OFFICE INVESTMENT

ThepropertyislocatedinaprominentpositiononOrchardStreetadjacenttoCrawleytowncentresinnerringroadandwithinwalkingdistanceofalltowncentreamenitiesandrailwaystation.

ThereisalargeNCPcarparkoppositethepropertyonPeglarWayandafurthersurfacelevelcarparkdirectlytothesouthoftheproperty.

AdjacenttothepropertyistheLandSecuritiesre-generationprojectthatcompletesinDecember2013comprisinga75,000sqftMorrisonssupermarket,threeA3unitsanda110bedTravelodge.Thisschemeformsamajorpartofthetowncentrere-generationalongwiththeareadirectlytotheeastwhichwillinvolveStanhopecreatingacomprehensiverangeofadditionalretailspaceinconjunctionwithCrawleycouncilonTheBoulevard.

Theseschemeswilltransformtheareaaroundthesubjectpropertyandre-vitalisethenorthernsectionofthetowncentre.Theaimistoimprovethetown’sretailoffertotapintotheextensiveandwealthycatchmentpopulationandcomplementthetownsexistingfacilities.TheTownCentreNorthschemeistargettedforcompletionin2013.

SITUATION

MULTI LET SOUTH EAST OFFICE INVESTMENT

LandSecurities-Morrisons/Travelodge

Key

Brittingham House

Land Securities

Stanhope Town Centre North

DESCRIPTIONThepropertycomprisesasemi-detachedtwostoreyofficeandshowroompropertywithanextensivefrontagetoOrchardStreetdividedintotwogroundfloorA2unitsandtwofirstfloorofficesuites.

EachsuitebenefitsfromselfcontainedaccessfromtheOrchardStreetfrontage.Thepropertyisbrickbuiltunderamansardflatroof.Eachunitprovidesabasicspecificationincludingcarpets,perimetertrunkingandsuspendedceilingswithrecessedstrippedlights.

ACCOMMODATIONThepropertyhasbeenmeasuredinaccordancewiththeRICSCodeofMeasuringPractice(6thedition)andextendsto6,801sqft(631.83sqm)aspertheScheduleofAccommodationandTenancies.

Thesiteisrectangularinshapeandextentsto0.03hectares(0.8acres).

TENANCY DETAILSThepropertyismulti-letto4tenantsoneffectiveFullRepairingandInsuringtermsaspertheScheduleofAccommodationandTenancies.

Thecurrentweightedaverageunexpiredleasetermis4.95yearsand3.15yearswhenaccountingforbreakoptions.

Thepropertyhasanexcellentlettinghistorywith1lettingand2renewalsinthelast8monthsdemonstratingstrongoccupationaldemand.Thecurrentpassingrenttotals£69,070perannumandthereisnovacantaccommodation.

MULTI LET SOUTH EAST OFFICE INVESTMENT

*All leases are held outside the security of tenure provisions Landlord and Tenant 1954 Act.

Unit Tenant Area sq.ft

6,801

Area sq.m

631.83

Repair Lease Start Review Date Break Date Lease Expiry Passing Rent £pa

£69,070

Rent £psf Comments

Unit3GroundFloor

Unit3FirstFloor

Unit4GroundFloor

Unit4FirstFloor

RedhillPropertyServicesLtd

HuntressSearchLtd

Zoom995Ltd

McLarenConstructionLtd

TOTALS

1,168

1,430

1,913

2,290

108.51

132.85

177.72

212.75

IRI

FRI

FRI

FRI

28Oct2008

11Apr2013

22May2013

19Nov2012

28Oct2013

N/A

22May2018

N/A

N/A

11Apr2016

22May2018

N/A

27Oct2018

10Apr2018

21May2023

18Dec2013

£19.900

£14,300

£19,030

£15,840

£17.04

£10.00

£9.95

£6.92

October2013breaknotexercised.Rentdepositof£11,752.17.

TenanthasScheduleofConditionbutisboundtoredecorateandrecarpetatexpiry.Steppedrentof£9,515until21/02/14beingtoppedupbythevendor.Rentdepositof£5,709.94.

Rentdepositof£3,960.00.

SCHEDULE OF ACCOMMODATION AND TENANCIES

Units3&4BrittinghamHousearelettofourprofessionalservicescompaniesasfollows:

TENANT FINANCIAL INFORMATION

Huntress SearchHuntressSearchareanationalfirmofrecruitmentconsultantswithofficesthroughouttheUK.Fortheyearended31stDecember2012,thecompanyreportedaturnoverof£53.08millionpre-taxprofitsof£820,532andnetassetsof£3.03million.

Zoom995 LimitedZoom995Limitedarealocalfirmofestateagentsandconveyancersandwereincorporatedearlierthisyear.

TENUREFreehold.

VATThepropertyhasbeenelectedforVATandVATwillbechargeableonthepurchaseprice.ItisthereforeanticipatedthattheacquisitionwillbetreatedasaTransferofaGoingConcern(TOGC).

EPC’sEnergyPerformanceCertificate’shavebeenpreparedandcanbeviewedinthedataroomthathasbeensetuptoassistthedisposal.

PROPOSALWeareinvitingoffersinexcessof£720,000,subjecttocon-tractandexclusiveofVAT.

Apurchaseatthislevelwouldreflectanetinitialyieldof9.0%assumingpurchaserscostsof5.80%.

Apurchaseatthislevelwouldalsoreflectareversionaryyieldof10.19%basedonouropinionofERVofthe1stfloorofUnit3oncecosmeticallyrefurbished.

CONTACTForfurtherinformationortoarrangeaninspectionofthepropertypleasecontact:

Chris Dickin chris.dickin@claystreet.co.ukNick Harrison nick.harrison@claystreet.co.ukRob Atkins rob.atkins@claystreet.co.uk

Telephone: 02079352831

IMPORTANT INFORMATION

1. No description or information given by Clay Street Ltd whether or not in these Particulars and whether written or verbal (“information”) about the property or its condition or its value may be relied upon as a statement or representation of fact. Neither Clay Street Ltd (nor any joint agents) have any authority to make any representations and accordingly any information given is entirely without responsibility on the part of the agents or the seller. 2.These particulars do not constitute, nor constitute part of, an offer or contract, nor shall they merge in any offer or contract which may hereafter be made between the sellers or lessors and the recipient of the information. 3.The photographs show only certain parts of the property at the time they were taken. Any areas measurements or distances given are approximate only. 4. Any reference to alterations to or use of any part of the property is not a statement that any necessary planning, building regulations or other consent has been obtained.These matters must be verified by any intending buyer. 5. Any buyer must satisfy himself by inspection or otherwise as to the correctness of any information given.

Designed and produced by Diablo: www.diablodesign.co.uk November 2013

Redhill Property Services Ltd.RedhillPropertyServicesLtdarealocalfranchiseofMartin&Co,thecountrywideestateagencywithofficesthroughouttheUK.Redhillareasmallcompanyandexemptfrompublishingdetailedaccounts.

McLarenMcLarenareanationalconstructionfirmwithanextensiveongoingdevelopmentpipeline.Fortheyearended31stJuly2012,thecompanyreportedaturnoverof£375.53million,pre-taxprofitsof£6.01millionandnetassetsof£21.26million.