Elstead, Surrey Gu8 6Lb

ELSTEAD, SURREY GU8 6LB

OUTSTANDING SURREY FREEHOLD OFFICE INVESTMENT WITH EXCEPTIONAL TENANT HISTORY EXECUTIVE SUMMARY A rare Surrey Freehold multi let office investment Gross office rent income of £865,463.57 per annum (£22.04 per sq ft) Beautifully maintained modern office complex situated in mature Net rent after limited shortfall is £861,328 per annum picturesque grounds providing a stunning working environment in an All office leases contracted outside the Landlord & Tenant Act 1954 affluent Surrey location Imminent lease events to grow income and drive rents up from £22.00 per Exceptional tenant letting history and performance sq ft with recent rental evidence of £24.50 per sq ft Total NIA of 39,264 sq ft across three interconnecting Potential to add another standalone office building and (or) change the Grade A office buildings. use to residential subject to planning permission (further information is On site amenities including a Pavilion Café with external seating and available on request) bookable meeting rooms. Seeking offers in excess of £10,750,000 which reflects anet initial yield of Excellent on site car parking provision with 279 spaces reflecting an 7.50% assuming purchaser’s costs of 6.70%,and reflecting a capital value outstanding ratio of 1: 134sq ft on office areas. of £274 per sq ft for the NIA Situated in c.3.69 acres (1.49 hectares) reflecting a low site coverage of approximately 13.8%.

SHACKLEFORD ROAD, ELSTEAD, SURREY GU8 6LB 1 19 M25 AMERSHAM

WATFORD Loughton M25 HIGH M1 M11 WYCOMBE

Brentwood M40

Basildon 1 WEMBLEY 16 1

1 SLOUGH

14 LONDON M4 CITY READING CENTRAL M4 LONDON LOCATION M4 HEATHROW 13 AIRPORT CROYDON DARTFORD Elstead is located within the county of Surrey just outside the M25 and12 WATERLOO 10 STAINES BRACKNELL M25 approximately 7 miles south west ofNEWBURY Guildford. Neighbouring towns 1 11 BROMLEY include Haslemere, Godalming and Farnham. Rochester Mainline rail services to London Waterloo are available at Guildford, Gillingham M3 M25 Godalming and Farnham with a fastest journey time of 36 minutes from Chatham Guildford station. Heathrow and Gatwick airports are both located CROYDON 3 within 45 minutes of the property. A3 CAMBERLEY WOKING 10 EPSOM 4 BANSTEAD SITUATION M25 9 FARNBOROUGH A3 LEATHERHEAD Tanshire Park is situated ½ mile East of Elstead Village on the M3 Sevenoaks Shackleford Road, and only 1.5 miles from the A3. The A3 provides fast Maidstone BASINGSTOKE M25 8 and easy access to Guildford (8 miles), the M25 J10 (15 miles) and the6 national motorway network to the north and Portsmouth to the south. GUILDFORD Adjacent to Tanshire Park is a consented residential scheme comprising REIGATE FARNHAM ELSTEAD SURREY 69 new homes to be developed by Clarion Housing. Part of this site tonbridge includes a planning consent for a small care home. GATWICK The immediate and surrounding locations provide an array of private GODALMING AIRPORT schools such as Charterhouse in Godalming. Local golf courses in FRENSHAM Puttenham, Hurtmore and Milford and private leisure clubs. Surrey has A3 more £1M homes than any other county in the UK outside London. MEDSTEAD CRAWLEY BY CAR HASLEMERE GODALMING 10 mins GUILDFORD 17 mins M25 21 mins BY RAIL London Waterloo - Guildford 36 mins London Waterloo - Godalming 45 mins London Waterloo - Haslemere 58 mins AIRPORT Guildford to Heathrow 33 mins Guildford to Gatwick 45 mins

SHACKLEFORD ROAD, ELSTEAD, SURREY GU8 6LB 2 DESCRIPTION Tanshire Park is a thriving business park in Surrey that comprises three attractive interconnecting office buildings; Oak, Ash and Elm Houses. Elm House was part of the original development and the park saw further expansion due to growing demand, initially of Ash and then Oak house in a similar style. The whole park OAK HOUSE ASH HOUSE ELM HOUSE is arranged around a beautiful landscaped courtyard that was home to the Elstead Bowling Club. On-site amenities include a Pavilion Café and bookable meeting rooms creating a stunning office complex and working environment with exceptional parking provision offering 279 parking spaces (1:134 sq ft) on office areas. The main buildings are arranged over three storeys and comprise of brick construction beneath a pitched tiled roof. The site underwent extensive refurbishment in 2010. The landlord has comprehensively refurbished all of the common parts in order to provide a Grade A specification as follows:

Double Height atria Suspended ceiling with recessed LG7 variable lighting Auto sensing lights to each floor Dedicated Fibre Broadband with 100MBS Raised floors PAVILION CAFÉ Air conditioning through comfort cooling units throughout Double Glazing DDA compliant passenger lift Refurbished WC’s on each floor

SHACKLEFORD ROAD, ELSTEAD, SURREY GU8 6LB 3 ACCOMMODATION

The approximate net internal floor areas of the property comprises the following:

OAK HOUSE ASH HOUSE ELM HOUSE PAVIION CAFÉ SQ FT SQ FT SQ FT SQ FT 2nd Floor 4,676 4,442 1st Floor 4,825 6,197 4,029 Ground Floor 3,541 6,129 3,725 1,700 Sub-total 13,042 16,768 7,754 1,700

Total 39,264

SHACKLEFORD ROAD, ELSTEAD, SURREY GU8 6LB 4 TENANCY OVERVIEW

Oak and Ash House are multi-let on a floor by floor basis with 8 tenants occupying 29,810 sq ft. The leases are on conventional FRI lease terms with services recovered through a service charge. Oak and Ash House provide 79% of the net income.

Elm House provides a more modern ‘serviced style office’ environment for 13 local businesses and provides 11% of the net income.

The Pavilion Café is the fourth building on the site, providing a successful amenity for the park.

Further revenue is received from surplus car parking spaces on the site and the onsite meeting room.

SHACKLEFORD ROAD, ELSTEAD, SURREY GU8 6LB 5 TENANCY SCHEDULE SQ FT RENT DEMISE TENANT LEASE LEASE BREAK RENT REVIEW TENANT NOTES PSQ FT START DATE END (PA) SINCE OAK HOUSE Hilding Anders International AB 8 months rent free. The Vendor will top 3,541 £23.50 2nd Floor 01-May-18 30-Apr-28 30-Apr-23 £83,213.50 01/05/23 01-May-18 Ltd T/A Feather & Black this up.

8 months rent free by way of half rent 4,825 £23.50 First floor Brairs Group Ltd 02-Jan-18 01-Jan-28 1st January 2023 £113,387.50 1st January 2023 02-Jan-18 for 16mths. The Vendor will top this up.

2,405 £23.28 Ground Floor N Health & Aesthetics 01-Dec-17 30-Nov-27 30-Nov-24 £56,000.00 1st Dec 2022 01-Dec-17 McMichen Brooks Dental Care "19-Jun-21 2,271 £22.24 Ground Floor S 20-Jun-11 19-Jun-31 £50,500.00 20-Jun-21 20-Jun-11 Ltd 19-Jun-26 “ 13,042 £23.24 £303,101.00 ASH HOUSE 4,442 £23.50 2nd Floor Bond Events Ltd 01-Mar-18 28-Feb-23 28-Feb-21 £101,896.00 01-Mar-18

5,684 £21.75 First floor The Pelican Buying Company Ltd 11-Mar-11 10-Mar-21 £123,627.00 11-Mar-11

513 £24.50 First Floor, Suite 1 Fine Homecare Ltd 05-Jan-18 04-Jan-21 Annually £12,568.50 05-Mar-18

1,435 £21.50 Part Ground Floor Info Vista Ltd 27-Dec-13 26-Dec-18 £30,852.50 01-Oct-08

4,337 £21.50 Ground floor Info Vista Ltd 04-May-10 24-Dec-18 £93,245.50 01-Oct-08

357 £24.00 Management Office Tanshire Management Office 01-Apr-17 31-Mar-22 £8,568.00 01-Apr-17

16,768 £22.11 £370,757.50

ELM HOUSE 487 £22.50 Suite A AHPMA 01-Feb-18 31-Jan-22 Annually £10,957.50 01-Feb-18 570 £22.50 Suite H1 Quantum Consulting Ltd 01-Jun-18 31-May-21 £12,825.00 01-Jun-18 807 £20.50 Suite H2 Dixon Searle Partnership 01-Mar-18 01-Mar-23 28/2/20 & 28/2/22 £16,543.50 01-Mar-18 202 £25.00 Suite J Meeting Room £5,050.00 N/A Average annual income 458 £23.00 Suite B Brockington Carroll 02-Jan-18 01-Jan-21 £10,534.00 01-Jan-99 31/7/18 & then 195 £27.00 Suite C Oil and Gas London 01-May-17 30-Apr-20 £5,265.00 01-May-17 Annual on Anniversary 135 £31.11 Suite D Supertrust Limited 26-May-15 16-Aug-18 Annually £4,200.00 01-Apr-05 362 £35.20 Suite E Info Vista Ltd 23-Jun-16 24-Dec-18 £12,742.00 01-Oct-08 509 £23.00 Suite F and G Paul Chamberlain 01-Oct-17 30-Sep-20 £11,707.00 01-Oct-07 288 £31.08 Suite L Dance News Limited 11-Sep-15 10-Sep-18 £8,950.00 11-Sep-12 308 £31.66 Suite M Meirion Edwards (t/a UTI) 01-Nov-16 01-Nov-19 Annually £9,750.00 01-Nov every year 01-Oct-13 2,061 £22.80 Suite N ODB Group Ltd 09-Oct-17 08-Oct-22 £47,000.00 16-Jan-00 If break operated 1 month penalty for 1,110 £22.50 Suite O Innovation Visual Ltd 01-Jul-17 30-Jun-20 Annually £24,975.00 01-Jul-17 each year remaining on lease 167 £23.50 Suite P Tony Brown Accountancy Ltd 01-Mar-18 28-Feb-21 Annually £3,924.50 01-Mar-15 95 £31.05 Suite Q GlobalCAD 18-Jul-16 17-Jul-19 Annually £2,950.00 17-Oct-10 7,754 £24.16 £187,373.50

PAVILION CAFÉ 1,700 £4.23 Pavilion Chameleon Cuisine 01-Jun-14 31-May-19 £4,231.57 01-Jun every year 01-Mar-11 1,700 £4.23 £4,231.57 Total Sq Ft 39,264 £22.44 £865,463.57

Car Park Revenue £7,500.00 Less S/C Shortfall -£11,636.00 Total Net Income £861,327.57

SHACKLEFORD ROAD, ELSTEAD, SURREY GU8 6LB 6 EXCEPTIONAL TENANT HISTORY & LETTING PERFORMANCE There is currently no vacancy at Tanshire Park. Over the last 12 months, units ranging from 500 sq ft to 4,800 sq ft became available. These have all been refurbished and re-let setting new rental evidence currently at £24.50 per sq ft.

The popularity of the park is demonstrated by the length of time some of the tenants have been in occupation. In particular 7 of the 13 tenants in Elm House have been at the park for over 6 years.

Below is a schedule of the recent lettings on the park:

RENT PROPERTY SQ FT DEMISE TENANT COMPETED TERM PER SQ FT

3,541 £23.50 Second Floor Feather & Black MAY-18 10 yrs/5th yr break OAK HOUSE

4,825 £23.50 First Floor Briars JAN-18 10 yrs/5th yr break

2,405 £23.28 Ground Floor Health & Aesthetics DEC-17 10 yrs/7th yr break

4,442 £23.50 Second Floor Bond Events MAR-18 5 yrs/3rd yr break ASH HOUSE

521 £24.50 First Floor Part Fine Homecare Ltd JAN-18 3 yrs/Annual break

OCCUPATIONAL MARKET Tanshire Park provides good quality flexible office accommodation away from the primary town centre adjacent office markets of Guildford, Godalming & Haslemere.

As a consequence of the continued erosion of office stock in Godalming, Farnham and Haslemere driven by Permitted development, Tanshire Park has benefitted from the local absorption from local occupiers that do not want to pay prime town centre rents. This applies especially to those tenants who prefer an attractive “Surrey Location” work environment with no traffic queues that benefit from their own dedicated parking spaces.

Prime rents in nearby Guildford stand at £33 per sq ft and Woking at £32 per sq ft, demonstrating significant headroom for rental growth, going forward.

SHACKLEFORD ROAD, ELSTEAD, SURREY GU8 6LB 7 INVESTMENT MARKET South east office investment volumes reached £3.6BN in 2017, marginally below the 2015 peak and held back only by a lack of available product. Q1 2018 saw approximately £650M transactions as investors to continue to favour the sectors risk / return profile.

Prime yields stand at 5.00% and are predicted to harden by the end of the year, driven by a chronic shortage of stock on the market and continued buoyant levels of investor demand. This is particularly true for reversionary assets in affluent locations where alternative uses provided a viable alternative strategy, such as Tanshire Park.

FUTURE ASSET MANAGEMENT 1. Ongoing Asset Management There are imminent lease expiries in Ash and Elm House creating an opportunity to drive rents forward. Recent letting evidence on the Park has been set at £23.50- £24.50 per sq ft.

2. Creation of Additional office space Our clients have conducted a pre-planning application with Waverley Borough Council to add a further two storey office wing by redeveloping the Pavilion Café with an additional triple height office building around the central lawn. Further information is available on request.

3. Change of Use Tanshire Park is adjacent to a consented residential scheme comprising of 69 new residential homes. There is scope to change the planning use of Tanshire Park under Permitted Development Rights. The site coverage is also only 13.8% and offers potential for full scale redevelopment subject to planning permission.

Residential Values Residential values in Elstead are in the region of £475 to £500 per sq ft. The village is one of the most desirable locations to live in the South East, forming part of the Surrey Hills that is an Area of Outstanding Natural Beaty being close to the historic and affluent towns of Godalming and Guildford and within close proximity to Central London and the A3 and M25 motorway.

SHACKLEFORD ROAD, ELSTEAD, SURREY GU8 6LB 8 VAT The property has been elected for VAT. Accordingly VAT will be payable upon purchase of the purchase price. It is intended that this sale will be treated as a TOGC. EPC’s A copy of the Energy Performance Certificates are available in the legal data room. DATA-ROOM A legal data-room is available online. Full title, leasing, management and planning information can be accessed using a login and password. Access will be provided by the joint agents. PROPOSAL Offers are sought in excess of£10,750,000 (Ten Million Seven Hundred and Fifty Thousand Pounds) subject to contract, and exclusive of VAT. A purchase at the asking terms reflects a net initial yield of 7.50% assuming purchaser’s costs of 6.70%. The price reflects a capital value of£274 per sq ft for the NIA.

SHACKLEFORD ROAD, ELSTEAD, SURREY GU8 6LB 9 CONTACT DETAILS

For further information and to discuss in more detail, access the data-room or to make arrangements for viewing please contact:

ADAM SHERLING

T: +44 20 3875 9279

M: +44 7958 361 557

E: [email protected]

SIMON RICKARDS T: +44 20 7861 1158 M: +44 7787 844 384 E: [email protected]

DAVID JONES ALASDAIR COLLINS T: +44 1483 617 937 T: +44 203 826 0608 M: +44 7785 715 548 M: +44 7532 380 285 E: [email protected] E: [email protected]

NOTICES RELATING TO PROPERTY MISREPRESENTATION AND PROPERTY MISDESCRIPTION ACT Sherling & Partners / Knight Frank for themselves and for the Vendors of this property whose Agents they are, given notice that:- The particulars are set out as a general outline only for the guidance of intending purchases and do not constitute part of an offer or contract; All descriptions, dimensions, references to condition and necessary permissions for use and occupation and their details are given in good faith and are believed to be correct, but any intending purchasers should not rely on them as statements or representations of fact, but must satisfy themselves by inspection or otherwise as to the correctness of them; Unless otherwise stated, all prices, rents and other charges are quoted exclusive of Value Added Tax (VAT). Any intending purchasers or tenants must satisfy themselves independently as to the incidence of VAT in respect of any transaction; All plant, machinery, equipment, services and fixtures & fittings referred to in these particulars were present at the date of publication. They have not, however, been tested and therefore, we give absolutely no warranty as to their condition or operation; No person in the employment of Sherling & Partners / Knight Frank has any authority to make or give any representations or warranty whatsoever in relation to this property or these particulars, nor enter into any contract on behalf of the Vendors; No responsibility can be accepted for any expenses incurred by intending purchasers in inspecting properties which have been sold or withdrawn; The date of this publication is May 2018.

SHACKLEFORD ROAD, ELSTEAD, SURREY GU8 6LB 10