GOVERNMENT LET OFFICE INVESTMENT OPPORTUNITY UNDERPINNED BY ALTERNATIVE USE VALUE

PRINCESS HOUSE QUEEN STREET EX32 8HD PRINCESS HOUSE QUEEN STREET BARNSTAPLE DEVON EX32 8HD

INVESTMENT SUMMARY

• Well secured, high yielding reversionary office investment opportunity under pinned by alternative use value. • Located in the affluent, tourist destination of Barnstaple in . • Single let to the undoubted government covenant of The First Secretary of State on a 10 year reversionary lease from 2nd April 2018 (expiring 1st April 2028), subject to a Tenant only break option at the 5th year. • Current rent passing of £190,000 pa which equates to £8.42 per sq ft overall. • Estimated rental value of £231,281 pa which equates to £10.25 per sq ft overall. • Freehold. • Total NlA floor area of 22,564 sq ft (2,096 sq m), total GIA area 25,427 (2,738 sq m). • Car parking for 25 vehicles. • Long term potential to convert the property to residential use, subject to obtaining the necessary planning consent. • The Vendor is seeking offers in excess of £2,235,000 subject to contract and exclusive of VAT, for the benefit of the freehold interest in the property. • After allowing for purchaser’s costs of 6.33%, this would reflect a Net Initial Yield of 8.00%, a Reversionary Yield of 9.68% (upon settlement of the April 2023 rent review and a low Capital Value of £99 per sq ft overall. WELL SECURED HIGH YIELDING

OFFICE INVESTMENT OPPORTUNITY RO 9 ANDRA ROAD 3 EX LLE AL S A TRE T DERBY ROAD DERBY R PRINCESS E E OAD T RE ST N B3 IO 149 T LOCATION NA RO HOUSE O C T B QUEEN STREET BO EE I C U Stratford R TO Derby 11 Barnstaple is an historical market town and 7 T ST N Bedford A487 AD P upon Avon A3400 A A4112 LL RO O E S BARNSTAPLE MI G T M1 A486 A4103 3 M11 R A A509 R

A470 A508 A1307 T AR 9 A46 A5E A475 C A422 A10 10 regional administrative centre for the North S A483 E A438 Great T VI Biggleswade HaverhillDEVON EX32 8HD A438 K T Newport A1071 Ipswich MalvernL A44 R Banbury A6 A482 A E Evesham Pagnell A505 9 Sudbury Devon area. The town benefits from being A438 W E 11 T 14 H A1 Royston A1017 A134 A14 T T A422 A43 Milton A421 Saffron Hereford R 8 A (A604) O U 1 A44 Keynes 13 A12 a significant tourist destination attracting N L L A505 Walden Y A422 10

BARNSTAPLE E A46 S A131 X Letchworth Felixstowe A485 A470 2T 9 A487 large numbers of visitors and holiday makers, R TOWN CENTRE A A507 A40 A479 E A421 A484 A465 N Harwich E Tewkesbury A43 12 9 A1124 A478 M50 T BEAR STREET HitchinT D E 10 LeightonA5 R STRE A120 especially during the summer months. A44 BEAR STRE BEA 8 A120 R ET A49 4 3 Buzzard M1 A Braintree A40 M40 A40 GLOUCESTERSHIRE S A1(M) Stevenage STANSTED Cheltenham O Luton R Colchester Carmarthen PRINCESS 7 A602 A133 Bicester DunstableW 11 8 A40 11 A4260 W O A487 The town lies approximately 68 miles north RO A41 Bishop's A120 C Gloucester S A361 D ER A44 9 A413

A483 H

A A

A48 TC HOUSE E 10 A10 S U

B T LUTON Stortford

T A34 Welwyn A130 A40 A4067 A40 D N A131 A40 L E

A4136 E A436 Garden of , 41 miles north of , 48 miles E 6 ST L 9 Witham A12

R R Aylesbury N City Ware Clacton-on-Sea E A40 A1060 E T A417 T Q Kidlington E NTER’S 5 A465 T S U Tring CHA HI M11 S Witney L Hertford Merthyr Hemel L A429 E A4076 west of Taunton.Ammanford 12 S E Fort St

Milford A477 S T A40 A41 4 Harlow Tydfil A40 N Hempstead O R A4042 A Oxford Hatfield Maldon A413 8 Albans Haven A467 R S Chelmsford O M10 3 49 13 C T 3 A40 Hoddesdon7 A141 A484 Hill Berkhamsted P R 9 7 A478 A465 A48 Stroud 1 2 A466 T E 8 A418 Thame A414

Barnstaple benefits from good A4010 48 A419 U E 7 22 A476 Aberdare A472 A449 TH Cirencester T A477 E O Amersham 20 M4 Pontypool M5 S B 24 M25 25 26 A12 A130 Pembroke Llanellicommunications47 45 via the A377 linking T ET 19 5 44 RA SILVE RE Abingdon High Watford Swansea 43 Neath N R ST 6 18 BarnetEnfield 5 Cwmbran A46 D Barnstaple to Exeter and the M5 motorway 5 Wycombe 4 Chigwell Chepstow 17 A10 A129 14 A419 A Didcot M40 M11 28 Rayleigh Pontypridd 2 312A3385 4 Beaconsfield A12 Brentwood A 3 M1 2 A406 4 A127 andA418 A361 linking40 with Taunton and theA470 M5. 26 24 M48 1 A433 3 Port 27 23 9 A4130 Marlow 2 29 A127 Basildon Southend-on-Sea Caerphilly 25 A40 1 A41 The A39 coastTalbo troad links the towns east and 28 M4 22 21 A31 1 Harrow Newport M25 A13 29 Swindon Uxbridge A406 CITY M4 30 Henley- Maidenhead A13 36 M49 16 A429 16 Canvey Island 32 17 E B on-Thames Slough west from Barnstaple.37 Rail services35 provide 15 A329 LONDON 34 33 19 17 G E A4074 7 30 M4 D A346 A4 6 4 1 Woolwich 18 A34 2 31 1 18 I T L 3 Tilbury Porthcawl A4361 L CARDIFF 19 R A easy access into London Paddington & Exeter 2 M32 B W E Windsor A4 Sheerness 3 A420 Reading M 14 Richmond A205 DartfordGravesend M5 G Chippenham V 13 M4 A329(M) A20 A 14 E 13 HEATHROW A2 2 Margate A46 N A350 12 A Herne airport is approximately 1 hour’s drive. Clevedon 20 O L D 10 Bracknell Kingston A2 Rochester L E A4 O Staines 1 RD Swanley 1 Bay Barry BRISTOL A4 11 W RIA upon Thames Gillingham A28 A4 Newbury R TO 2 A38 O IC A299 A37 V A232 Chatham Whitstable BRISTOL Melksham A 11 Sutton Sittingbourne A253 Ramsgate A361 D Croydon 4 4 A28 21 3 M20 3 5 A2 Faversham 5 BATH Devizes Camberley A227 Weston-super-Mare 2 A36 A34 M25 Epsom M25 1 A340 A257 3 A342 10 A22 2 4 A249 6 7 A A338 A33 4 Wokin9 g EA 9 3 5 6 M2 Canterbury A23 A2 A368 Trowbridge T A339 A3 ST A24 M26 7 A A343 E 9 5 W A331 R 7 M25 D LeatherheadN Sevenoaks 8 A V A A228 A2 A361 AL A3 V A25 Maidstone A20 A371 A362O Basingstoke 5 E 6 A21 R E 8 Deal A345 A227 A360 6 M3 Aldershot A323 N Dorking RedhillOxted A26 22 A339 Burnham-on-Sea O AD A25 Reigate M20 A28 A256 Minehead FromI e O Guildford A274 T 7 Tonbridge N A22 RFarnham A229 A39 E A31 A24 A361A AndoverW IA M23 A2 A39 BARNSTAPLE T Warminster CHANNEL R R A287 Godalming 9 S O TUNNEL A3057 OA T TRAIN STATION A36 D IC GATWICK Ashford TERMINAL Dover A303 A303 V 9 East 10 A39 Alton Grinstead Tunbridge Wells A20 A361 23 A361 A264 A262 A39 A371 A264 A39 A34 Crawley 10 A29 A21 13 A359 A338 A28 M20 11 Bridgwater A2070 A358 A33 12 A396 A372 M3 A345 Folkestone A264 A37 A31 Haslemere 11 Hythe 24 A3 A26 BARNSTAPLE 9 A32 A22 A267 Horsham A259 Salisbury Winchester A272 A281 Crowborough A303 A350 A283 A275 A28 A264 0 11 Haywards Bideford A36 9 A265 A268 Taunton 25 A30 30 Heath A272 A361 A (A31) A272 A358 A357 A30 A354 A272 A265

12 A23 A39 Petersfield Uckfield 26 A303 Eastleigh A29 A273 Yeovil A21 Lydd/Ashford A275 A3088 A338 4 M5 SITUATION 3 5 A286 ROYAL MAIL A24 A22 A377 A26 A28 A259 A386 27 7 1 A32 1 A388 A303 A334 A283 Tiverton SOUTHAMPTON8 A3(M) A27 A271 Hastings A30 The subject propertyA357 is situated Lewes A31 M27 9 3 Havant HailshamA259 Ringwood 10 A27 SHOREHAM A27 Hythe 11 Chichester A27 Brighton Bexhill- 28 A356 5 A3072 A30 on Hardaway Head which lies 12 A29 A259 A31 Fawley Fareham 12 Littlehampton Hove on-Sea A3072 Worthing NewhavenA22 A3072 directly off Queen Street at Gosport A35 A259 Eastbourne A30 Lymington Portsmouth Bognor Seaford its junction with the A3125A31 A35 QUEEN STREET Regis A388 29 A35 New Milton Cowes Ryde EXETER Poole Christchurch 30 A3052 Ring Road whichDorcheste is locatedr Bournemouth A395 A30 Newport 31 A376 approximately 200A352 yards east of A351 Sandown A382 A353 A3020 A39 HARDAWAY HEAD A380 the town centre. A3055 Shanklin

A388 Weymouth A30 A38 DEMOGRAPHICS A390 Bodmin A38 Torquay Newquay A386 The town has a population A392 A385 A30 Saltash of approximately 45,000

A391 A387 A3075 Plympton BUS STATION St Austell Torpoint people and a catchment of A379 approximately 145,000 people A390 Fowey A381 Truro A379 A30 living within a 12 mile radius. St Ives Redruth

A3078 Camborne A39 Penzance A394 Falmouth A30 Helston

A3083 WELL SECURED HIGH YIELDING PRINCESS OFFICE INVESTMENT OPPORTUNITY HOUSE QUEEN STREET BARNSTAPLE DEVON EX32 8HD

DESCRIPTION The property was constructed in the early 1970’s but was comprehensively refurbished in the 1990’s and comprises a two-storey office building over ground and two upper floors arranged around a central courtyard. Internally, the specification includes:

• Male, female and disabled WC’s on each floor • Air conditioning • Suspended ceilings

The site provides car parking for 25 vehicles. WELL SECURED HIGH YIELDING OFFICE INVESTMENT OPPORTUNITY PRINCESS HOUSE QUEEN STREET BARNSTAPLE DEVON EX32 8HD ACCOMMODATION The building provides a total NIA of 22,564 sq ft TENANCY & INCOME (2,096 sq m) arranged as follows: The entire property is let to The Secretary of State for Communities and Local Government t/a Job Centre Plus on a new 10 year reversionary lease with effect from 2 April 2018 (expiring 1st April 2028). Floor Office sq m sq ft The lease is held on Full Repairing & Insuring terms, subject to 5 yearly upward only rent reviews with the next rent review on 1st April Ground Office 750 8,082 2023. There is a tenant only break option at the 5th year, subject to 6 months prior written notice.

First Office 673 7,241 The current rent passing is £160,000 pa which rises £190,000 pa on 2nd April 2018, which equates to £8.42 per sq ft overall. The Vendor will top the rent up to £190,000 pa upon completion. Second Office 673 7,241 The Secretary of State for Communities and Local Government have been in occupation since the property was constructed in the early TOTAL 2,096 22,564 1970’s.

TENURE ESTIMATED RENTAL VALUE The property is held freehold. In our opinion, we believe the Estimated Rental Value of the property to be £231,281 pa ,which reflects a £10.25 per sq ft overall.

LETTING MARKET COMMENTARY

Area Address Date Rent (sq ft)

Artivia House, £30,800 pa 9 Queen Street, Mar 16 2,800 (£11 psf) Barnstaple

4 Bear Street, Oct 16/ £22,860 pa 2,023 Barnstaple Jan 17 (£11.30 psf)

3 Taw Vale, £6,000 pa Feb 16 500 Barnstaple (£12 psf) Post Post

4 E 0 WELL SECURED HIGH YIELDING

OFFICE INVESTMENT OPPORTUNITY

4 PRINCESS1

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2 1 T 13 EE Sub Sta R FUTURE DEVELOPMENT POTENTIALST PLANNING Garage

ER 1 V S L W • We believe that the property would provide potentialSI to convert the existing building to U M The property currently benefits from B1 office use and provideso the potential for alternative uses, r M k 8 residential either through change of use or through Permitted Development subject to E subject to obtaining the necessary planning consents. s R rd L edfo A B se obtaining the necessary planning consent N Hou 1 D The subject property does not fall in an area that is affected by an Article 4 election.1 REE B T• Residential capital values6 within Barnstaple range from between £320 - £390 per sq ft. S T E

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• We therefore believe that the investment value is underpinned by future residential E AD 7

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redevelopment.5.5m SILV ST R ER 1

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2 L 6 B S E T R R 1 T TCBs E E L 2 WELL SECURED HIGH YIELDING OFFICE INVESTMENT OPPORTUNITY PRINCESS HOUSE QUEEN STREET BARNSTAPLE DEVON EX32 8HD

Existing Ground Floor Plan Proposed Ground Floor Plan WELL SECURED HIGH YIELDING PRINCESS OFFICE INVESTMENT OPPORTUNITY HOUSE QUEEN STREET BARNSTAPLE DEVON EX32 8HD

VAT PROPOSAL FURTHER INFORMATION The property has been elected for VAT The Vendor is seeking offers in excess purposes and it is intended to treat the of £2,235,000 subject to contract and For further information please contact: transaction as TOGC so that VAT will not be exclusive of VAT, for the benefit of the payable upon the purchase price. freehold interest in the property. Jamie Baruch DD: 020 3903 7310 EPC A purchase at this level would reflect aNet M: 07889 085 112 Initial Yield of 8.00%, a Reversionary Yield E: [email protected] The property has an EPC score 82 of 9.68% (upon settlement of the April 2023 giving it a rating of D. Will Elphinstone rent review), and a low Capital Value of £99 DD: 020 3904 3573 per sq ft overall. M: 07876 131 436 E: [email protected]

Tydus Real Estate for themselves and for the vendors or lessors of the property whose agents they are give notice that: (i) these particulars are given without responsibility of Tydus Real Estate or the vendors or lessors as a general outline only for the guidance of prospec- tive purchasers or tenants, and do not constitute the whole or any part of an offer or contract; (ii) Tydus Real Estate cannot guarantee the accuracy of any descriptions, dimensions, references to condition, necessary permissions for use and occupation and other details con- tained herein and any prospective purchaser or tenant should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the accuracy of each of them; (iii) no employee of Tydus Real Estate (and their joint agents where applicable) has any authority to make or give any representation or warranty or enter into any contract whatsoever in relation to the property; (iv) VAT may be payable on purchase price and/or rent, all figures are quoted exclusive of VAT, intending purchasers or lessees must satisfy themselves as to the applicable VAT position, if necessary by taking appropriate professional advice; (v) except in respect of death or personal injury caused by the negligence of Tydus Real Estate, its employees or servants, Tydus Real Estate will not be liable, whether in negligence or otherwise howsoever, for any loss arising from the use of these particulars save to the extent that any statement made in these particulars has been made fraudulently. 06/2017. Designed and produced by Creativeworld Tel: 01282 858200.