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Ashdown House 125 High Street, , West RH10 1DQ

South East Office Investment Opportunity INVESTMENT SUMMARY

Investment Summary Proposal

• High quality, South East office investment • Rent passing at £633,650 per annum , which • Offers are invited in excess of £7,260,000 totalling 34,235 sq ft equates to £19.39 per sq ft (Seven Million Two Hundred and Sixty Thousand Pounds) for the freehold interest, • Situated in an established office location in the • Low base rent £19.39 psf with prime rents now at subject to contract and exclusive of VAT . A of Crawley town centre, 0.5 miles north of £24.00 psf. purchase at this level would reflect a net initial Crawley Train Station • Let to one of the world’s largest global insurance yield of 8.25% after allowing for purchaser’s • Excellent micro location at the northern end of companies following the acquisition of The costs of 5.80%, reflecting a low capital value of the High Street, near to the town’s retail Chubb Corp. £211 per sq ft provision and opposite Crawley Leisure Park • Excellent car parking ratio of 1:274 sq ft • Let in its entirety by way of a reversionary lease • Freehold to ACE INA Services UK Limited with 5.4 years unexpired

BRENTWOOD 4 M40 A34 1 A127 A404 1 UXBRIIDGE MAIIDENHEAD A13 8 HAMMERSMIITH 46 1A READING 1 READING M4 13 HEATHROW AAIIRPORT BROMLEY 10 12 11 1 A20 BRACKNELL 2 2 A33 WEYBRIIDGE A232 M20 M2 10 5 A339 4 WOKIING A22 7 9 5 M3 FARNBOROUGH 7 A34 M25 6 A21 A228 MAIDSTONE BASIINGSTOKE GUIILDFORD 8 A229 A24 MM223 TONBRIIDGE A31 A3 GATWICK 10 AIRPORT 10 CCRRAAWWLLEEYY A22 LOCATION 13 11 A21

Crawley Situation Crawley is an established office location in the south east Ashdown House is prominently positioned to the northern M23 of England. The town is located 30 miles south of Central end of Crawley High Street, in the heart of the town centre. Ashdown (J10)

London, 23 miles north of and 27 miles south east The retail offer is quite extensive in the town centre and i s House of . concentrated in two main locations, the pedestrianised

1 A201 H

High Street and the County Mall, a modern, covered A Z The town benefits from excellent transport E L W shopping centre, are both located 0.6 miles to the south I IC communications being within 2.6 miles of the M23, which KK AA E VV east of the subject property. U EE EN NN EXTRA AV D UU links directly to the M25. is 4 miles away Y A EE LE O W A NORTHGATE R R D C D and is one of the town’s largest employers, generating The well-established Crawley Leisure Park is located A L E O I F R D around 23,500 jobs and a further 20,000 jobs through directly opposite, alongside the newly developed Origin N O 1 O O 4 0 D W IL 0 FIEL N 2 related activities. Occupiers from the aerospace sector One and Two office buildings. Crawley train station is D A V A EN O UE L

include , , Thales and The Civil situated approximately 0.5 miles to the south of the Aviation Authority. There is also a wide range of national property and the new Town Centre store and and international occupiers includi ng Deloitte, KPMG, PwC, Travelodge are located less than 100m away. T

E

E 2 R Grant Thornton and Nestlé. T THREE BRIDGES S

3 H G RAIL STATION I Crawley has now developed into a main centre of industry, Communicatio n H THE MARTLETTS commerce and employment between London and the Central London – 30 miles COUNTY MALL HASLETT AVENUE EAST South Coast due to continuous economic growth and SHOPPING CENTRE Brighton – 23 miles 4 considerable residential development. Guildford – 27 miles – 57 miles M23 – 2.6 miles M25 – 18 miles CRAWLEY RAIL STATION E London Victoria – 42 minutes U N 1 Crawley Leisure Park E V London Bridge – 52 minutes A CRAWLEY H T W Brighton – 41 minutes A 2Travelodge Crawley H

Gatwick Airport – 8 minutes M23 3 Morrisons (J11) Gatwick – 4 miles 4 Asda Superstore Heathrow – 45 miles DESCRIPTION

Ashdown House comprises a self-contained, L-shaped office building arranged over ground and three upper floors. The office has a glazed atrium entrance leading onto a reception area, which provides access to the lifts and service core. The office accommodation is predominantly open plan with some partitioned offices. The tenant has recently upgraded part of the property to operate as a data centre for their global emergency back-up servers and are also undertaking a rolling refurbishment of the office accommodation. This commitment to the building was also evidenced by the newly agreed 5 year reversionary lease . The plan is for indicative purposes only The internal specification includes the following features: • Suspended ceilings • Two passenger lifts • Air conditioning throughout the building • Inset box lighting • WC facilities on each floor The property benefits from 125 car parking spaces providing an excellent ratio of 1:274 sq ft.

Site The property is situated on a site with an area of approximately 1.24 acres (0.50 hectares).

Tenant has recently upgraded the accommodation to include their global Data Centre Accommodation Covenant Information

The building has been measured in accordance with the RICS ACE INA Services UK Limited (01509033) Property Measurement 2015 and provides the following areas: ACE INA Services UK Limited was incorporated in 1980 and Description Area (sq m) Area (sq ft) provides tailored insurance solutions to a range of customers. They provide local knowledge and expertise, with dedicated Ground Floor 898 9,671 teams of professionals specialising in underwriting, survey risk assessment and claims settlement to meet their customers’ First Floor 916 9,857 specific needs.

Second Floor 922 9,927 ACE INA Services UK Limited have a Dun & Bradstreet rating of 4A 2. They have a tangible net worth of £29,833,000 as at 31 Third Floor 444 4,781 December 2014 and a lower than average risk of business failure.

Total 3,181 34,235 31 Dec 2012 31 Dec 2013 31 Dec 2014 Description (£000s) (£000s) (£000s) Tenure Sales Turnover 184,614 209,223 186,168 The property is held freehold. Pre-Tax Profit 4,957 (476) (3,377) Net Worth 6,345 33,113 29,833

Tenancy ACE Limited/The Chubb Corporation The property is let in its entirety to ACE INA Services UK Limited ACE Limited (Parent Company) completed their acquisition of and extended by way of a reversionary lease expiring 23 June The Chubb Corporation on 14th January 2016 for approximately 2021. The vendor will top up the rent to approximately £633,650 $29.5 billion in aggregate, in cash and stock. ACE are adopting the pa (£19.39 psf). The tenant has an option of a new lease for the Chubb name and this merger has created one of the largest global period starting 24th June 2021 and ending 23rd June 2024. insurance companies. They are now a market leader in commercial and personal property and the casualty insurance business with operations in over 54 countries. The company will continue to target and offer their services to large corporate clients, mid- market companies and to private individuals. OFFICE MARKET OVERVIEW

Crawley Occupational Market Top headline rents in Crawley currently stand at £24.00 per sq ft in the town centre. This progression has been in conjunction with a reduction in incentives, meaning that Crawley is also seeing rental growth on a net effective basis. Key occupational transactions are set out below:-

Area Term Date Property Tenant Price Price ( psf) (sq ft) Certain Apr-15 St Johns House, Haslett Avenue Broadsoft 10,988 5 years £247,230 £22.50 Jun-14 Portland Building, High Street Rawlinson Butler 11,096 – £266,304 £24.00 Mar-14 Origin Two, High Street RBW Consulting 5,000 5 years £115,000 £23.00 Mar-14 Origin Two, High Street ASB Law 11,000 5 years £247,500 £22.50 Feb-14 Pegasus Two, Gatwick Road Palmer & Harvey 12,700 10 years £273,050 £21.50

South East Office Investment Market The following represent some of the more comparable investment transactions in the South East:

Area Date Property WAULT Price NIY Purchaser (sq ft) Nov-15 Connaught House, Guildford 27,921 - £7,520,000 - Baltane Asset Management Nov-15 Mallards Reach, 37,544 5.70 £16,850,000 6.25% Kames Capital Aug-15 4 Forest Park, Crawley 25,627 7.00 £6,830,000 7.10% London Borough of Bromley Aug-15 Central Court, Orpington 67,007 3.50 £10,300,000 8.19% Brydell Jul-15 Leonardo Building, Crawley 110,545 16.50 £45,300,000 5.30% F&C REIT Jul-15 Gateway House, Guildford 16,781 3.00 £6,900,000 5.90% F&C REIT Mar-15 Lakeview West, Dartford 26,759 2.83 £7,450,000 7.50% CCLA Mar-15 Warwick House, Redhill 20,434 6.60 £5,180,000 7.90% MJP Nominees Mar-15 Tubs Hill House, Sevenoaks 64,800 - £11,000,000 - Prime Place Sep-14 Newplan House, Epsom 23,100 4.25 £6,890,000 6.25% Cornerstone Real Estate Investment Rationale PROPOSAL South East office investment offering an attractive Net Initial Yield

Fully income producing and let to one of the world’s largest global insurance companies following the acquisition of The Chubb Corp

Low base rent £19.39 psf with prime rents now at £24.00 psf

Tenant committed to the building through the newly agreed reversionary lease providing 5.4 years unexpired and have recently been upgrading Ashdown House to include their global Data Centre

Strategically located in the heart of Crawley town centre at the northern end of the High Street near to the town’s retail provision and directly opposite Crawley Leisure Park

Excellent communication links and within close proximity to Gatwick Airport

Offers are invited in excess of £7,260,000 (Seven Million Two Hundred and Sixty Thousand Pounds) reflecting a net initial yield of 8.25% , having allowed for purchaser’s costs of 5.80%, reflecting a low capital value of £211 per sq ft.

VAT EPC Rating Web Access The property has been elected for VAT. The property has an EPC rating of 120. www. cushwakesales.com/cw/ ashdownhouse OUR TEAM

Cushman & Wakefield LLP Chris Lewis Josh Beebee Lyndsay Barnes 43/45 Portman Square E: chris.lewis @cushwake.com E: jos h.beebe e@ cushwake.com E: lyndsay. bar nes@ cushwake.com London W1A 3BG T: +44 (0) 207 152 5554 T: +44 (0) 207 152 5266 T: +44 (0) 207 152 5295

February 2016 MISREPRESENTATION ACT 1967 Cushman & Wakefield LLP (and their joint agents if appointed) for themselves and for vendors or lessors of this property whose agents they are, give notice that: (1) The particulars are produced in good faith, are set out as a general guide only and do not constitute any part of a contract. (2) No person in the employment of the agent(s) has any authority to make or give any representation or warranty whatever in relation to this property. (3) This property is offered subject to contract and, unless otherwise stated, all rents are quoted exclusive of VAT. (4) Nothing in these particulars should be deemed to be a statement that the property is in good condition or that any services or facilities are in working order. (5) Unless otherwise stated, no investigations have been made regarding pollution or potential land, air or water contamination. Interested parties are advised to carry out their own investigations if required. Production by PlusArt Limited 0115 972 4000