REVERSIONARY SOUTH EAST MULTI-LET OFFICE INVESTMENT OPPORTUNITY

GRIFFIN HOUSE, 135-143 HIGH STREET, , RH10 1DQ GRIFFIN HOUSE, 135-143 HIGH STREET, CRAWLEY, RH10 1DQ

INVESTMENT SUMMARY

Reversionary South East multi-let office investment

Situated in a prominent town centre location

Freehold

The property is constructed over ground and four upper floors and provides approximately 32,399 sq ft of well configured, flexible office accommodation

Excellent parking ratio of 1:272 sq ft

Total rental income of £539,463 pa, reflecting a low average rent of £16.99 per sq ft

ERV of £22.50 per sq ft

The property is fully let to 5 tenants on 6 leases

Building serves as a headquarter premises for four of the five tenants and one of the subtenants

Significant asset management opportunities to re-gear with the existing tenants and take advantage of reversionary rents

AWULT of 4.47 years to break options and 5.90 years to lease expiries

Offers are invited in excess of £6,740,000 (Six Million, Seven Hundred and Forty Thousand Pounds), based on acqusition costs of 6.65%, this reflects the following:

Initial Yield 7.50% Reversionary Yield 9.78% Capital Value £208 psf

2 A6 A1 A14 NEWMARKET A14 NORTHAMPTON CAMBRIDGE BEDFORD A11 M11 M1 IPSWICH A5 SUDBURY A1 A505 MILTON KEYNES A6 FELIXSTOWE HARWICH STEVENAGE A5 LUTON Stansted A120 Luton COLCHESTER DUNSTABLE A1(M) A10 BISHOP’S A41 A12 HERTFORD WARE STORTFORD HEMEL ST CLACTON-ON-SEA AYLESBURY HEMPSTEAD ALBANS A414 HARLOW CHELMSFORD GRIFFIN HOUSE, 135-143 HIGH STREET, CRAWLEY, RH10 1DQ HATFIELD A414 AMERSHAM A12 M40 HIGH M1 M25 WYCOMBE M25 WATFORD SOUTHEND-ON-SEA BEACONSFIELD BASILDON LOCATION MAIDENHEAD SLOUGH A13

M4 TILBURY SHEERNESS READING Crawley is one of the principal commercial centres in West Heathrow LONDON MARGATE A2 Sussex. The town is strategically located approximately STAINES M4 RAMSGATE 32 miles south of Central London, 23 miles north of BRACKNELL M3 ESHER M20 Brighton and 27 miles south east of Guildford. A33 CROYDON M2 CANTERBURY

A3 M25 Continuous economic growth and investment have SEVENOAKS DORKING MAIDSTONE developed Crawley into the main centre of industry, FARNHAM REIGATE A22 M20 GUILDFORD A24 M23 commerce and employment between London and the A31 Gatwick ROYAL ASHFORD DOVER South Coast. Due to its close proximity to Gatwick TUNBRIDGE ALTON CRAWLEY EAST A3 WELLS FOLKESTONE Airport, Crawley is a key South East office market with a GRINSTEAD A26 number of large aviation companies choosing to locate in the town, including Virgin Atlantic, British Airways and A23 UCKFIELD the Civil Aviation Authority. Other occupiers attracted to PETERSFIELD the town include Deloitte, KPMG, PwC, Grant Thornton, LEWES Thales and notibly Nestlé, who relocated the group A3(M) headquarters to Crawley from Croydon. There has been CHICHESTER WORTHING HASTINGS considerable residential development in the town in NEWHAVEN PORTSMOUTH BRIGHTON recent years and there is further expansion planned. EASTBOURNE Additionally, there are on-going proposals to redevelop a large part of the town centre for a mixed retail and leisure scheme.

The town has a resident population of 106,597 (2011 By Car: St Edmund’s can be easily accessed from the A10 (from London or Cambridge) or the A120 (from Bishop’s Stortford). Census) and provides retail, service and administrative These roads provide easy access to all airports, railway stations and central London, which is only 25 miles to the south. facilities to a wide catchment population. From the A10 South: If you are approaching via the M25, exit at Junction 25 to join the A10 north. Travel for approximately 15 miles until you come to the roundabout which links the A120 and take the rst exit left, signposted to Old Hall Green. SITUATION Take the second turning right which is our Main Entrance. The property is situated in Crawley town centre in a From the A10 North: On by-passing Buntingford travel for approximately 4 miles and at the roundabout, which links the prominent position to the northern end of Crawley High A120, take the third exit, signposted to Old Hall Green. Take the second turning right which is our Main Entrance. Street, located 0.25 miles from the A23. The amenities of the town centre are within a short walking distance. There From the A120: Remain on the A120 until you reach the roundabout at its end and take the second exit. Take the second is an extensive retail offering in the town centre which is turning right which is our Main Entrance. concentrated in two main locations, the pedestrianised By Train: The nearest main line stations are Ware and Bishop’s Stortford, both of which are approximately a 15 minute High Street and the County Mall, which is a covered modern shopping centre. taxi ride away and have regular service connections to central London. By Air: All four of London’s International Airports are within easy reach of the St Edmund's via the UK motorway network. Opposite the property is the well established and Stansted - 20 minutes, Luton - 30 minutes, Heathrow - 1 hour 30 minutes and Gatwick - 2 hours, all have regular scheduled popular Crawley Leisure Park which contains a multi- ights around the United Kingdom, Europe and International destinations. screen cinema operated by Cineworld, a health club, a bowling alley and several restaurants including Chiquito, SUBJECT PROPERTY Frankie and Benny’s, McDonald’s, Nando’s and TGI Fridays. Griffin House is also situated opposite the newly developed Origin One and Two office buildings.

Crawley railway station is situated approximately 0.5 miles to the south of the property. There is also a Morrisons supermarket, which opened in 2014, and Travelodge which is located less than 100m away to the south.

3 GRIFFIN HOUSE, 135-143 HIGH STREET, CRAWLEY, RH10 1DQ

COMMUNICATIONS

ROAD "

Crawley has excellent road communications being strategically located within 2 miles of the M23 (Junctions 9 to 11), at it’s intersection with the A23 and A264. This provides direct access to , Brighton and the south coast, as well as Central London and the M25 (Junctions 7 & 8) to the north.

Destination Distance

Central London 32 Miles

Gatwick Airport 4 Miles A CHANGING CRAWLEY Crawley Town Centre 2 Miles Crawley is only 4 miles south of Gatwick Airport, one of the World’s busiest airports Redhill 9 Miles and the second largest in the UK. The airport is one of the town’s largest employers, generating around 23,500 jobs and a further 20,000 jobs through related activities. Brighton 23 Miles Following a change of ownership in 2009, Gatwick has invested over £900 million in M23 (Junction 10) 2 Miles upgrading its facilities with a total planned spend of £1.2 billion. The new owners have joined the well-documented UK air capacity debate and are proposing a second runway M23/M25 interchange 12 Miles be developed at the airport to help cater for the UK’s runway capacity needs.

AIR a Gatwick Airport acts as a long term economic driver for the Crawley office market and Gatwick Airport is the UK’s second largest and the sixth busiest international airport in the potential expansion from a second runway would boost the economic benefit and the world and is pivotal to Crawley’s economy. It has the busiest and most efficient single increase occupier demand significantly. runway airport in the world, and handles 34 million passengers per year, flying to 200 destinations and 90 countries worldwide. Crawley Borough Council and various partners, including PwC, County RAIL > Council and Crawley Town Centre Partnership are embarking on a programme to regenerate the town centre, which is building on the strengths of the town’s economy Crawley benefits from extensive rail services being served by three mainline stations; to help develop retail, employment, business and residential opportunities. Crawley in the town centre, to the east and Gatwick Airport to the north. All three stations provide frequent and direct services to London Victoria and London Bridge. Gatwick Airport is reached in just 10 minutes via the fastway Bus Service where A large new development to the northwest of the retail centre opened in early 2014 and the train service runs a direct non-stop route every 15 minutes to and comprises a large Morrisons supermarket as well as a Turtle Bay restaurant. In addition, from London Victoria. £3.2m of improvement work to Queens Square, the heart of the town centre, will be complete in early 2017 and will greatly enhance the public realm. The Queens Square Destination Journey Time (From Crawley) development is being jointly funded by Crawley Borough Council and West Sussex County Council. An additional £18m of capital has also been secured from the Local London Victoria 41 mins Enterprise Partnership for transport and infrastructure improvements. This will unlock London Bridge 52 mins new jobs and homes and better connect the town centre with key Crawley locations including Gatwick Airport, and Three Bridges. Redhill 23 mins Brighton 41 mins East Croydon 23 mins

4 GRIFFIN HOUSE, 135-143 HIGH STREET, CRAWLEY, RH10 1DQ

DESCRIPTION

The property is a prominent office building of brick construction and is arranged over ground and four upper floors beneath a flat roof. The property was built in the mid 1980’s and provides the following summary specification:

Heating via a boiler system, which has been replaced in the past two years 2 x 10 person, 800kg passenger lifts Accessible raised floors Suspended ceilings with recessed lighting WC’s on all floors Comfort cooled via individual cassette units The reception and common areas have recently been refurbished to a high standard

There is parking for 119 cars, providing an excellent in town parking ratio of 1:272 per sq ft, these are split as follows;

77 basement car spaces 42 spaces on the upper level

The vendor has commissioned an M&E Survey which was carried out by Malcolm Hollis in April 2016. Further information is available upon request.

ACCOMMODATION

The building has been measured by Malcolm Hollis in April 2016 in accordance with the RICS Professional Statement: Office Measurement 1st Edition (May 2015) and provides the following IPMS 3 areas:

Floor/Description Area (sq ft) Area (sq m) Reception 583 54.2 Ground 3,481 323.5 First 7,085 658.2 Second 7,085 658.2 Third* 7,082 658.1 Fourth 7,083 658.0 Total 32,399 3,010.2

The measured survey is available for assignment.

* This differs from the total of the tenanted areas detailed in the tenancy schedule as this includes a shared lobby area.

TENURE

Freehold.

5 GRIFFIN HOUSE, 135-143 HIGH STREET, CRAWLEY, RH10 1DQ

TENANCY

The property is let to five tenants on six leases in accordance with the following tenancy schedule.

The property provides a weighted average unexpired lease term of 4.47 years to break options and 5.90 years to lease expiries.

IPMS 3 Lease Next Rent Next Rent Rent ERV Address Area Tenant Lease Start Comments Expiry Review Break (£ pa) (psf) (psf) (Sq Ft) Reception 583 n/a - - n/a - - - - - Lease Renewal (previous lease expired August 2011). 9 car parking spaces. S/c cap £31,183pa (annual RPI increases) + £50k combined (with first floor lease) cap on car park Ground Rawlison 3,481 08/07/2015 07/07/2 0 2 5 08/07/2020 n/a £57,140 £16.41 £22.50 works. Tenant carried out air- Floor Butler LLP conditioning works which are not subject to reinstatement provisions. Landlord paid contribution towards works which can be rentalised. Inside L&T 1954 Act. Lease Renewal (previous lease expired September 2012). 26 car parking spaces. S/c cap £62,367pa (annual RPI increases) + £50k combined (with ground floor lease) cap on First Rawlison 7,085 08/07/2015 07/07/2 0 2 5 08/07/2020 n/a £122,049 £17.22 £22.50 car park works. Tenant carried Floor Butler LLP out air-conditioning works which are not subject to reinstatement provisions. Landlord paid contribution towards works which can be rentalised. Inside L&T 1954 Act. Hellermann Second 24 car parking spaces 7,085 Tyton Group 25/12/2013 24/12/2018 n/a n/a £103,260 £14.57 £22.50 Floor Outside L&T 1954 Act. Plc Rock Third Insurance 15 car parking spaces Floor 3,974 06/01/2014 05/01/2019 n/a n/a £58,000 £14.59 £22.50 Services Outside L&T 1954 Act. Suite A Limited Third Floor Mainstream 10 car parking spaces. 3,049 27/09/2013 26/09/2018 n/a n/a £44,385 £14.56 £22.50 Suite B Data Limited Outside L&T 1954 Act. Tenant option to break on 20th August 2017. Inside L&T 1954 Act. Fourth Plumbase 7,083 20/08/2007 19/08/2022 20/08/2017 20/08/2017 £154,629 £21.83 £22.50 Sub-leases to Mountain High & Floor Limited Reeves & Co set to expire 1 April 2017, both sub-leases outside L&T 1954 Act. Total 32,340 £539,463 £16.99 £703,688

6 GRIFFIN HOUSE, 135-143 HIGH STREET, CRAWLEY, RH10 1DQ

COVENANT INFORMATION COVENANT/INCOME ANALYSIS

The building serves as headquarter premises for four of the five tenants and one of Rock Insurance the sub tenants on the fourth floor, demonstrating strong tenant commitment to the Services Ltd 11% property. Mainstream Rawlison Butler LLP (OC318343) Data Ltd 8% Hellerman Tyton Rawlison Butler LLP are a leading law firm specialising in corporate, business and Group Plc 19% private client law with offices in London, Crawley and Horsham. Rawlison Butler LLP Plumbase Ltd has a CreditSafe rating of A (75/100), representing very low risk of business failure. 29% Rawlinson Butler LLP 33% HellermannTyton Group PLC (08409650)

HellermannTyton Group PLC is a British registered company with affiliated companies in 36 countries manufacturing and supplying products for fastening, fixing, identifying and protecting cables and their connecting components. HellermannTyton Group PLC has a CreditSafe rating of A (75/100), representing very low risk of business failure. COVENANT/RISK RATING Rock Insurance Services Limited (04255878)

Rock Insurance Services Limited is an insurance firm with a focus on travel, gadget and Credit Safe financial failure insurance. Rock Insurance Services Limited has a CreditSafe rating of B Rating A (very (56/100), representing low risk of business failure. low risk) 60% Not Rated 29% Mainstream Data Limited (04301161) Credit Safe Mainstream Data Limited are a technology firm dealing with global digital asset Rating B (very management and content distribution solutions for agency, marketing, brand and low risk) 11% creative teams for digital media and brand management. Mainstream Data Limited has a CreditSafe rating of A (87/100), representing very low risk of business failure.

Plumbase Limited (00181691)

Plumbase Limited have not submitted accounts and have no CreditSafe risk scoring. Plumbase are currently not in occupation.

Mountain High and Kreston Reeves are both sub tenants of Plumbase and are currently in occupation. Mountain High has a CreditSafe rating of A (91/100), representing very low risk of business failure, whilst Kreston Reeves also has a CreditSafe rating of A (94/100), representing very low risk of business failure.

7 GRIFFIN HOUSE, 135-143 HIGH STREET, CRAWLEY, RH10 1DQ

CRAWLEY OFFICE MARKET OVERVIEW

We are aware of the following recent south east, multi-let office investment transactions:

Area WAULT Date Property Price NIY Purchaser (Sq Ft) (Years)

Copthall House, Feb-16 40,136 3.0 £5.90m 6.22% Undisclosed Sutton

Beasley Court, Dec-15 19,390 3.7 £7.00m 6.38% Undisclosed Uxbridge

Mallards Reach, Kames Nov-15 5.7 £16.85m 6.25% Maidenhead 37,544 Capital

London 4 Forest Park, Aug-15 25,627 7.0 £6.83m 7.10% Borough of Crawley Bromley

Premier House & Aug-15 Point Central, 9,346 2.4 £1.70m 7.17% Undisclosed Croydon

ESTIMATED RENTAL VALUE

We are of the opinion that the ERV of the property is £703,688 per annum, which equates to £22.50 per sq.ft.

The average rent of the property is £16.99 per sq.ft on an overall basis, we therefore believe that the property presents a purchaser with the opportunity to dramatically drive rents forward. We are aware of the following recent letting transactions in the town:

Area Term Price p.a. Price Date Property Tenant (Sq Ft) Certain (£) (£psf)

St Johns House, Apr-15 Broadsoft 10,988 5 years £247,230 £22.50 Haslett Avenue

Leonardo Building, Virgin 16.5 May-15 110,545 £2,542,535 £23.00 Manor Royal Atlantic years

Origin Two, High RBW Mar-14 5,000 5 years £115,000 £23.00 Street Consulting

Origin Two, High Mar-14 ASB Law 11,000 5 years £247,500 £22.50 Street

Pegasus Two, Palmer & Feb-14 12,700 10 years £273,050 £21.50 Gatwick Road Harvey

8 GRIFFIN HOUSE, 135-143 HIGH STREET, CRAWLEY, RH10 1DQ

ASSET MANAGEMENT OPPORTUNITIES VAT

Griffin House is prominently positioned to the northern end of Crawley High Street in The property has been elected for VAT purposes. the heart of the town centre Top headline rents of £24.00 per sq ft in the town centre being achieved together with CAPITAL ALLOWANCES a reduction in incentives being paid Capital allowances may be available and further information can be provided on request. Griffin House remained fully let throughout the recession with occupiers drawn to the location, well configured floor plates and strong parking ratio Opportunity to refurbish upper floors of the office building to help drive rents forward PROPOSAL

Seek to take advantage of all reversionary leases which are outside of the 1954 Act Offers are invited in excess of £6,740,000 (Six Million, Seven Hundred and Forty Opportunity to improve the overall WAULT through engaging with existing tenants and Thousand Pounds), based on acqusition costs of 6.65%, this reflects the following: pursuing re-gears where possible Initial Yield 7.50% Reversionary Yield 9.78% EPC Capital Value £208 psf The property has an EPC rating of D(79). A copy of EPC is available upon request.

CONTACT 1 Portland Place London W1B 1PN Strictly via sole agents. Tel: 020 7631 1202 For further information please contact: Fax: 020 7637 1203

www.finnandcompany.co.uk Ali Rana [email protected]

Mathew Finn [email protected]

Tom Kerins [email protected]

Misrepresentation Act: Finn & Company for themselves and for the vendors of these properties whose agent they are give notice that:1. These particulars do not constitute, nor constitute any part of the offer for sale or contract for sale. 2. All statements contained in these particulars as to these properties are made without responsibility on the part of Finn & Co or the vendors or lessors. 3. None of the statements contained in these particulars as to these properties are to be relied on as statements or representations of fact. 4. Any intending purchasers must satisfy themselves by inspection or otherwise as to the correctness of each of the statements contained in these particulars. 5. Any plans or photographs or drawings shown in these particulars are to enable prospective purchasers or tenants to locate the properties. The plans are photographically reproduces and therefore not to scale except where expressly stated. The plans or photographs or drawings are not intended to depict the interest to be disposed of. Where location plans are based on Ordnance Survey maps this is with the consent of HM Stationery Office, Crown Copyright Reserved. 6. No warranty or undertaking is given in respect of the repair or condition of the properties or any items expressed to be included in the sale. 7. Any properties or drawings of the relevant properties or part thereof or the neighbouring areas may not depict the properties or the neighbouring areas at the date a prospective purchaser or tenant inspects the brochure. Prospective purchasers or tenants are strongly advised to inspect the properties and neighbouring areas. 8. Finn & Company have not measured the properties and have relied upon clients information. Therefore Finn & Co give no warranty as to their correctness or otherwise and the purchasers must rely on their own measurements.9. All terms quoted are exclusive of value added tax unless otherwise stated. 10. The vendors do not give and neither Finn & Co nor any person in their employment has any warranty whatsoever in relation to these properties. 11. These details are believed to be correct at the time of compilation but may be subject to subsequent amendment. 12. These details were prepared as of MAY 2016