FREEHOLD OFFICE INVESTMENT FOR SALE

Multi-let, Active Management Opportunity Investment Summary

• Peregrine Business Park is a six building office campus close to town centre and the motorway network overlooking the countryside.

• The Park totals a combined 46,374sq ft (4,308 sq m) of net lettable office accommodation over Ground and First Floors over a site area of approximately 2.01 hectares (4.98 acres).

• The property is multi-let to 6 tenant on 7 occupational leases.

• 81% of the income is secured against tenants with a D&B rating of 2A1 or better.

• The passing rent is £775,516 per annum which reflects a low average rent of £18.69 per sq ft on the office accommodation.

• The tenancies produce a WAULT of 5.02 years to expiries and 3.14 years to breaks.

• There are 209 car parking spaces providing an excellent car parking ratio of 1:220 sq ft.

• The property is held freehold.

• Peregrine Business Park offers a purchaser immediate asset management opportunities via refurbishment, settlement of the outstanding regears, renewals and reletting of the vacancy.

• Our client is seeking offers in excess of £10,200,000 (Ten Million, Two Hundred Thousand Pounds) subject to contract and exclusive of VAT.

• This reflects a net initial yield of 7.13% and a low capital value of £220 psf, assuming purchaser’s costs of 6.7%. Location

High Wycombe is the dominant commercial centre in south Buckinghamshire with a primary catchment population of 214,000 (2011 Census). The town is located 33 miles north west of Central and is home to a large number of national and international occupiers including Johnson & Johnson, GE Healthcare, Hyundai and GMAC.

High Wycombe is an attractive office location with an educated workforce, improved local amenities and excellent transport links. High Wycombe train station provides excellent services to London Marylebone with up to seven trains an hour and a fastest journey time of 28 mins.

High Wycombe town centre was subject to a major, multi-million pound regeneration programme which completed in 2008 and transformed the town into a regional shopping destination. The regeneration included the development of the Eden Shopping Centre, which opened in March 2008 and provides 107 shops, a 22-lane bowling alley and a 12-screen cinema across 850,000 sq ft of accommodation. Other elements included a new bus station and library as well as substantial residential provision.

SITUATION

Peregrine Business Park is a six building campus located at the end of Gomm Road close to its junction with London Road. Junction 3 of the M40 is 1.3 miles away and High Wycombe town centre with its abundance of amenities, is only 2 miles away as is High Wycombe train station with its fast service (22 minutes) into London Marylebone.

Wycombe Retail Park is a 10 minute walk and occupiers include - M&S The Handy Cross Hub development at junction 4 M40 has provided a new state of the art leisure centre, a Waitrose, purpose- Simply Food, Fitness First, Pizza Hut, KFC, Subway, Ryemead Pharmacy, built coachway park and ride, a 150 bed, 3 star hotel and a day nursery. Wickes, Argos, PC World and Pets at Home.

In 2015 High Wycombe railway station underwent a substantial programme of improvement works as part of a £4m Tesco, (24 hour) with travel, pharmacy, café & ATM facilities and a Premier refurbishment programme set for completion in 2019. Inn are adjacent to j3 M40 a short drive away.

The attractive town of Beaconsfield is just 4 miles away and provides a number of high quality amenities such as The Crazy Bear Hotel, Prime and Brasserie Blanc restaurants. Communications

High Wycombe benefits from excellent road communications, being situated on The UK’s largest airport, Heathrow, is located 15 miles to the east of High Junctions 3, 4 and 5 of the . Wycombe.

M40 1.3 Miles Alternative airports accessible from High Wycombe include Gatwick, Luton, M4 13 Miles Southampton and Birmingham International Airports. M25 12 Miles Slough 12 Miles Heathrow 15 Miles Reading 26 Miles Luton 33 Miles Central London 26 Miles Gatwick 57 Miles Oxford 33 Miles Southampton 70 Miles Birmingham 98 Miles Birmingham 85 Miles Bristol 102 Miles

High Wycombe benefits from a variety of both local and national bus services, many of which are The town is served by High Wycombe Railway station, which provides Chiltern serviced by the bus station located within the Eden Shopping Centre. Regular Railways services to the following key destinations. services run along London Road, High Wycombe’s main thoroughfare, a short walk from the Park. London Marylebone 27 Mins Destinations include: Oxford Parkway 34 Mins Birmingham Snow Hill 96 Mins Local towns and villages London Oxford Slough Reading Heathrow Airport Maidenhead Uxbridge Description

The Park comprises 6 two-storey office buildings constructed in 1989 and set within a landscaped environment. The Park benefits from an excellent parking ratio of 1:220 sq ft.

The buildings are all of similar design and specification being of steel framed construction with cavity block and Eagle House – 54 Spaces brick elevations beneath pitched, clay tiled roofs and double glazing, some of which have undergone refurbishment to provide: Swan House – 32 Spaces

3 pipe VRF air conditioning Swift House – 21 Spaces Full accessed raised floor Suspended ceiling with integral LG7 lighting Hawk House – 36 Spaces Improved reception areas Mallard House – 22 Spaces Lifts to 4 buildings Star House – 42 Spaces All of the buildings benefit from lift access to the upper floor, with the exception of Swift House and Mallard House.

TENURE

Freehold.

CGI CGI

Interior designer’s CGI designs for enhancing the buildings. SITE

We estimate the site area to be approximately 2.01 hectares (4.98 acres) providing a site cover in the order of 22%.

The title includes a small area of land fronting London Road, used to display the business park signboard. Tenancy Schedule

Area Months of Demise Tenant Lease Start Lease Expiry Break Option Rent Review Current rent Rent psf 1954 Act D&B Rating Comments (sq ft) Notice

Hawk - Ground 3,873 Zenopa Ltd 31/08/2014 30/08/2024 31/08/2019 6 mths 31/08/2019 £69,732 £18.00 Outside N3 Tenant have exercised 2019 break option. Available with full VP.

*Reversionary 5 year lease agreed at £95,297 per annum (£19.50 Hawk - First 4,122 Sky Medical Technology Ltd 21/08/2014 20/08/2019 £61,830* £15.00 Inside 3A1 per sq ft). Solicitors instructed. Current passing rent of £61,830 per sq ft (£15.00 per sq ft).

Swift 4,887 Vacant

Mallard 5,125 Sambro International Ltd 07/09/2017 06/09/2027 07/09/2022 9 mths 07/09/2022 £94,240 £18.39 Inside 3A2 Lease subject to photographic schedule of condition.

Star 9,581 Star Micronics Europe Ltd 24/06/2014 23/06/2019 £172,674 £18.02 Inside 3A1 Tenant Holding Over. Lease renewal in negotiation.

Swan - Ground 3,284 Tetra Pak Processing UK Ltd 01/11/2018 31/10/2028 03/09/2025 12 mths 01/11/2023 £72,262 £22.00 Outside N3

06/10/2022 06/10/2022 Guarantee from Evatic AS. Swan - First 3,711 Cranbox Ltd 06/10/2017 05/10/2032 9 mths £76,100 £20.50 Outside 2A1 06/10/2027 06/10/2027 Company trading as Asolvi Ltd

Eagle 11,791 Tetra Pak Processing UK Ltd 04/09/2015 03/09/2025 04/09/2020 £228,678 £19.39 Outside 2A1

TOTAL 46,374 £775,516 £18.69 Occupational Market Key Letting Transactions

STOCK Date Building Tenant Area Rent Sq ft Per sq ft High Wycombe is one of the largest office markets in Buckinghamshire and boasts a diverse range of tenants. June-2019 Eclipse Intel 19,000 £27.00 Total office stock is estimated at 4.6 million sq ft. Globe Park Marlow RENTS Dec-2018 Voyager House UKPC Ltd 10,355 £28.50 Mercury Park Wooburn Green Prime rents stand at £39.50 per sq ft in the Thames Valley, whilst in High Wycombe, they stand at £28.50 per sq ft. With continuing office demand, continued tightening of supply, regeneration of the town centre and the Nov-2018 Ground floor Tetra Pak Processing 3,284 £22.00 effects of PDR, we expect High Wycombe to show further rental growth. Swan House UK Ltd Peregrine Business Park High Wycombe

Nov-2018 Globeside 2 Kyowa Kirin 21,548 £28.00 Globe Park International Plc Marlow

Nov-2018 3rd floor Sagittarius LLP 6,738 £26.50 Marlow International Marlow

Oct-2018 Solar House Stock Spirits 3,056 £28.50 Mercury Park Wooburn Green

June-2018 Globeside 1 Amicus 38,188 £28.00 Globe Park Marlow

May-2018 St John’s Place Frontierpay Limited 3,856 £28.50 Easton Street High Wycombe

Aug-2017 St John’s Place Sabre Retail Fashions 16,543 £25.00 Easton Street Limited High Wycombe

Dec-2016 Lunar House Comland Commercial 2,918 £27.50 Mercury Park Limited Wooburn Green CGI Supply

Availability of Grade A and B office availability in the town totals less than 60,000 sq ft. PRIME RENTS IN NEIGHBOURING TOWNS

Supply constraints have been compounded by permitted development rights converting offices to residential, The highest town centre rent in High Wycombe is which has reduced the town centre office stock by over 20%. £28.50 per sq ft in the recently refurbished St John’s Place while office park rents outside of the town centre are encouragingly moving upwards as supply KEY AVAILABILITY tightens even further. Grade A & B availability in High Wycombe itself is limited to just 4 locations, 2 town centre and 2 out of town, High Wycombe reflects favourably compared to and only Peregrine Business Park offers a whole building rather than floors or part floors in a larger building. nearby towns providing value for money and opportunities for rental growth. BUILDING SPACE AVAILABLE QUOTING COMMENT SQ FT RENT • Uxbridge £36.00 per sq ft* £/SQ FT • Marlow £28.00 per sq ft** Swift House Whole building 4,887 £22.50 To undergo refurbishment. • Maidenhead £39.50 per sq ft* Peregrine Business Park High Wycombe Interest in the whole. • Slough £37.00 per sq ft* • Watford £35.00 per sq ft* Mallard House Whole building 5,125 £18.39 Tenant assignment or sub-let. Peregrine Business Park passing * new, ** secondhand High Wycombe

St Johns Place Part 2nd floor 5,203 £28.50 Refurbished. Easton St High Wycombe

Kingsmead Business Park Buckingham Court (2nd) 11,795 £25.00 Refurbished. High Wycombe Oakley Court (Part 1st) 4,712 £25.00 Refurbished. Hampden Court (Part Gnd) 3,926 £25.00 Refurbished. Oakingham House (Gnd) 6,460 £22.50 Refurbished.

Rapid House 1st 7,929 £27.50 Refurbished. 40 Oxford Rd Part Gnd 7,905 High Wycombe

Mercury Park Explorer House 8,155 £29.50 Refurbished. Wooburn Green Jupiter House 4,309 Refurbished. Endeavour House 7,655 To undergo refurbishment. CGI Asset Management & Value Add Initiatives

There are numerous opportunities to regear or renew leases and take rents forward on the Park:

• Asolvi are seeking to expand their floorspace and discussions are in hand to relocate them into Swift House.

• Tetra Pak are also seeking to expand and discussions are in hand to grant a lease of 1st floor Swan House if Asolvi relocate to Swift House.

• Zenopa has exercised its break option and therefore an opportunity to drive rents forward through reletting the ground floor of Hawk House either with a cosmetic refurbishment or retain the tenant fit out.

• Sky Medical Technology is in the process of renewing its lease of 1st floor Hawk House.

• Star Micronics are holding over and is seeking to renew its lease of Star House.

• Sambro International is seeking to assign or sub-let its space in Mallard House and therefore CGI an opportunity to negotiate a surrender and relet at a higher rent.

Plans have been drawn up to transform the gatehouse into a small café and utilise the central grassed area for further occupier amenity.

The Park is in a residential area and overlooks open countryside so future residential potential can be investigated. USE FURTHER INFORMATION & CONTACT DETAILS The property has a B1(a) planning consent. INVESTMENT TENURE James Archibald Freehold T: 020 3362 4357 EPC M: 07979 746 791 EPCs for individual buildings available on request. E: [email protected]

VAT Rob Bray We understand the property has not been elected for VAT purposes. It is anticipated that the T: 020 7629 5574 sale of this property will be treated as a Transfer of a Going Concern (TOGC). M: 07768 800 280 PROPOSAL E: [email protected] Our client is seeking offers in excess of £10,200,000 ( Ten Million, Two Hundred Thousand Pounds) subject to contract and exclusive of VAT. This reflects an attractive net initial yield of 7.13% and a low capital value of £220 OCCUPATIONAL psf, assuming purchaser’s costs of 6.7%. Paul Smith T: 020 7629 5572 RATEABLE VALUE M: 07730 816 995 Individual building information on request. E: [email protected] SERVICE & ESTATE CHARGE The estate charge is running at £1.81 psf.

Hawk House service charge is running at £8.38 psf and includes ALL electricity.

Swan House service charge is running at £6.11 psf but also includes electricity and is an estimate based on first year assumptions.

Misrepresentation Act. These brief particulars have been prepared as agent for our client and are intended as a convenient guide to supplement an inspection or survey. Their accuracy is not guaranteed. They contain statements of opinion and in some instances we have relied on information provided by others, you should verify the particulars on your visit to the property and the particulars do not obviate the need for a full survey and all the appropriate enquiries. Accordingly, there shall be no liability as a result of any error or omission in the particulars or any other information given. Compiled June 2019.