Copthall House 9 Grove Road

Sutton

Greater Office Investment with Residential Development Potential

• Modern, multi-let, town centre office building, with excellent residential potential. • Freehold. Investment Summary • Sutton is the principal town of the located 13 miles (21 km) south of . • Situated within 300 metres of Sutton train station and in close proximity to excellent local amenities. • Comprising 40,126 sq.ft well specified office building, split into two wings. • Let to the undoubted covenant of UK Government and Fresenius Medical Care Renal Services Ltd, (with guarantee from Fresenius Medical Care (Holdings) Ltd). • WAULT of 3.35 years to expiry. • Current passing rent £388,399 per annum (average of £12.91 per sq.ft on the let space). • Full vacant possession can be achieved by April 2021. • Exceptional development potential through a consented 32 unit residential redevelopment of the West Wing and a positive pre-application meeting with Sutton Council to redevelop the entire site creating a 128 unit residential scheme with 9,258 sq ft of ground floor retail. • We are instructed to seek unconditional offers in excess of £11,000,000 (Eleven Million Pounds), subject to contract and exclusive of VAT. • Capital value of £275 per sq.ft. ST NICHOLAS SHOPPING CENTRE

TIMES SQUARE SHOPPING CENTRE SEVENTEEN

SUTTON SUTTON COURT POINT CIVIC CENTRE HIGH STREET QUADRANT HOUSE

MORRISONS SUTTON RAILWAY STATION

4 Copthall House, 9 Grove Road, Sutton, SM1 1DA Copthall House, 9 Grove Road, Sutton, SM1 1DA 5 Location

Sutton is the principal town of the London Borough of Sutton, an affluent suburb located 13 miles (21 km) south of Central London, 6 miles (10 km) west of and 8 miles (13 km) south east of Kingston-Upon-Thames.

Sutton is a very popular commuter town. It higher than the London and national average. benefits from exceptional local amenity and Over 6,800 companies have chosen Sutton as connectivity to central London, which has their business base and since 2009, the number resulted in a high demand for residential of new business start-ups has almost doubled. housing from owner occupiers, ‘buy to let’ investors and the rental sector. Boasting some 1,500 acres of Parkland, the borough is one of London’s greenest. The Sutton has a highly-trained workforce with over Borough of Sutton also has some of the 40% of working age residents holding a degree best rated schools in the UK, including the level qualification. 80% of Sutton residents aged prestigious Sutton . between 16 and 64 are economically active –

A1M

M11 M1 CHESHUNT

WATFORD ENFIELD LOUGHTON BARNET

EDGWARE M40 HARROW STRATFORD M4 HEATHROW LONDON CITY AIRPORT M25 WIMBLEDON WEYBRIDGE M3 SUTTON CROYDON M20 WOKING

CATERHAM M26

GUILDFORD DORKING M23

GATWICK EAST GRINSTEAD

Not to scale. For indicative purposes only.

6 Copthall House, 9 Grove Road, Sutton, SM1 1DA Copthall House, 9 Grove Road, Sutton, SM1 1DA 7 Communications

Road LONDON Sutton’s road communications are excellent with the A23 and A24 to the east and west of the town centre respectively, both providing direct access to Central London. The town has direct links via the A217 to junction 8 of the M25, 7.5 miles (12 km) to the south providing access to the wider VICTORIA FARRINGDON CITY ST PANCRAS LONDON motorway network beyond. INTERNATIONAL BRIDGE

Rail Air Sutton station (Thameslink and Southern services) Sutton is well located for swift road access to benefits from frequent, direct trains running to three of London’s business airports (Heathrow, several mainline Central London stations including Gatwick and London City). London Victoria, Farringdon (Crossrail), City Thameslink and St. Pancras International.

NORTHERN LINE A3

THAMESLINK SOUTHERN RAIL Rail Journey Times DESTINATION JOURNEY TIME WIMBLEDON 17 minutes LONDON VICTORIA 26 minutes CITY THAMESLINK 38 minutes SUTTON FARRINGDON 41 minutes ST PANCRAS INTERNATIONAL 46 minutes SITUATION A23 Distance to Airports The subject property is situated in Sutton town centre, in close proximity to excellent local AIRPORT DISTANCE amenities. The high street is within a short walking distance, providing a substantial retail and A217 London 16 miles (26 km) leisure offer including both the St Nicholas and Times Square shopping centres, as well-known London 18 miles (29 km) restaurants and gym’s. Sutton Central library is in close proximity to the subject site. London City Airport 23 miles (37 km)

Sutton train station is situated on the High Street, approximately 300 metres from Copthall House and provides a variety of routes into central London and the rest of the home counties. J8 J7 M25

M23

GATWICK Not to scale. For indicative purposes only.

8 Copthall House, 9 Grove Road, Sutton, SM1 1DA Copthall House, 9 Grove Road, Sutton, SM1 1DA 9 Sutton Regeneration

Sutton is an expanding and developing town.

It has over 50 Sutton Point A landmark mixed-use apartments, a health & designated development currently fitness centre as well as under construction by retail and office space (with Sutton Court development sites in Ardmore and CMN Estates, basement parking), as in the heart of Sutton follows: 73 apartments developed its planning policy, town centre, offering a by Inspired Homes. The selection of one, two and 332 apartments. development completed in and approximately 150 three-bedroom apartments. 59 serviced apartments. Q2 2017 and to date they Practical completion is 80 bed hotel. are 93% sold out. scheduled for mid-2018. It 25,000 sq ft grade A office. in its draft Local Plan, will include a hotel, serviced 20,000 sq ft retail space. of which 47 are in the Town Centre.

Subsea 7, Brighton Road Subsea7, a world leading subsea Seventeen, Sutton Court Road engineering company, recently competed their new 150,000 sq ft project office On This project developed by L&Q Homes, Brighton Road for their London Global consists of 96 residential units and one Projects division. The £40m BREAM commercial kiosk unit, arranged over 14 ‘Excellent’ building, currently employing storeys. PC was in Spring 2017. The units over 500 staff, was officially opened in are a mix of high quality 1 and 2 bed shared February 2017. ownership and private rented apartments. 10

Copthall House, 9 Grove Road, Sutton, SM1 1DA Copthall House, 9 Grove Road, Sutton, SM1 1DA 11 Description

Copthall House was built in the early 1980’s. It is an L-shaped office building, providing two wings of office accommodation. The northern wing fronting Grove Road is arranged over ground and four upper floors whilst the western wing fronting Bridge Road is arranged over first and second floors.

The property benefits from the following specification:

• Comfort cooling. • Double glazing. • Suspended ceiling with integral lighting. • Two 10 person lifts (800 kg). • Raised floors. • Male & Female WC’s on every floor. • 2.4m floor to ceiling height. • Large reception area. • Gas fired boilers. • Undercroft car park with security barrier.

12 Copthall House, 9 Grove Road, Sutton, SM1 1DA Copthall House, 9 Grove Road, Sutton, SM1 1DA 13 Accommodation

We have been provided with the following Net Internal areas.

FLOOR USE AREA (sq.m) AREA (sq. ft) 4 FOURTH Office 545.8 5,875 Ancillary 4.8 51 Fourth Floor Total 550.6 5,926 THIRD Office 545.5 5,872 Ancillary 1.8 19 Third Floor Total 547.3 5,891 SECOND Office - North Wing 546.9 5,887 3 Office - West Wing 426.8 4,594 Ancillary 1.9 20 Second Floor Total 975.6 10,501 FIRST Office - North Wing 553.6 5,959 Office - West Wing 423.7 4,561 Ancillary 8.2 87 2 First Floor Total 985.5 10,607 GROUND Office 602.9 6,490 Reception 62.4 672 Ancillary 3.6 39 Ground Floor Total 668.9 7,201 1 GRAND TOTAL 3,727.9 40,126

The property is situated on a total site area of approximately 0.55 acres (0.22 hectares) providing a site cover of 57%.

G

Bridge Road

Grove Road

RECEPTION

Not to scale. For indicative purposes only.

14 Copthall House, 9 Grove Road, Sutton, SM1 1DA Copthall House, 9 Grove Road, Sutton, SM1 1DA 15 Tenancy SCHEDULE

FLOOR / SUITE Size (sq ft) Tenant Lease Rent Rent Term Certain Security of Use Class Comments Tenure Start Expiry Passing (per sq.ft) (Years) NORTH WING- GROVE ROAD

Ground & Part First 12,449 Fresenius Medical Care Renal Services 02/04/2011 31/12/2020 £155,000 £12.45 3.20 No D1 £650,000 surrender premium Ltd (Guaranteed by Fresenius Medical payable on expiry. Care (Holdings) Limited

Second, Third & Fourth 17,634 Secretary of State for Communities 18/04/2011 01/04/2021 £233,398 £13.24 3.45 No B1(a) New 3 year reversionary lease and Local Government from 02.04.2018. Rent reduced to £220,425 pa in lieu of rent free.

WEST WING- BRIDGE ROAD

Part First 4,561 Vacant B1(a) Rates payable: £30,255 per annum.

Part Second 4,594 Vacant B1(a) Rates payable: £30,255 per annum.

- 7 Sutton 29 32 Reception 672 34 Car Park 30 25 Ancillary / Storage 216 26 28 Substation The South Eastern Electricity Board 31/03/1982 30/03/2081 £1.00 23 21

TOTAL 40,126 £388,399 £12.9119

gton nnin 16 Do e ous S H o u t Tenancy Tenure Covenant Information h

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B r i 12 1 g 3 h t The property is let in accordance with the Tenancy The property is held freehold. The Secretary5 of State iso an undoubted covenant. n 10 7 D Schedule of tenancies and income and has a r i v e weighted unexpired lease term of 3.35 years to 8 Offices expiry. Fresenius Medical Care Renal Services6 Ltd Retail (Company no. 2768342) is the world’s largest provider of dialysis services and dialysis products. 4 All tenants have agreed to lease arrangements oad They have a D&B rating of 4A1. The lease is guaranteed by Fresenius Medical Care (Holdings) Ltd C ve R he Gro Retail am 2 outside the Landlord and Tenant Act 1954, therefore R who have a D&B rating of 5A1. oa full vacant possession can be achieved by Aprild 2021. FRESENIUS MEDICAL CARE RENAL SERVICES LIMITED

ion Stat 31/12/15tton 31/12/14 31/12/13 Fresenius Medical Care Renal Services Ltd have Su Retail Railway (000’s) (000’s) (000’s) agreed to a surrender of their lease. The surrender 1c 1 2 B Sales Turnover £45,423 £47,504 £45,197 3 4 r date is 31st December 2020. In consideration, a i d 5 6 g

7 e 8 9 Profit / (Loss) Before Taxes £2,518 £3,855 (£92) 1 £750,000 surrender premium was agreed,0 £100,000 R 1 1 1 o 2 a of which has already been paid. The balance of d Net Worth £19,692 £21,746 £18,814 3 £650,000 is due on the surrender date. Railway FRESENIUS MEDICAL CARE (HOLDINGS) LIMITED A terminal schedule of dilapidations has been 31/12/15 31/12/14 31/12/13 commissioned by the vendor for the 2nd, 3rd, (000’s) (000’s) (000’s) and 4th floors let to the Secretary of State (UK 10 Sales Turnover £119,461 £115,420 £112,464 Government). It has been calculated that a total sum 12 1 C M 14 T h u a h 2 Profit / (Loss) Before Taxes £16,171 £8,559 £5,336 m l g C e M r b claim for this is in the region of £225,000. h a 16 u e a v l r Q m e g s

r 3 b a u C e M v r Net Worth £53,730 £41,034 £36,023 h e a s 18 u a

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Planning policy Planning consent for redevelopment of the West Wing- Floor Plans West Wing (Bridge Road) Copthall House is identified for redevelopment within the Sutton Town Centre Masterplan 2031 On 27th February 2017, planning permission (adopted July 2016), which sets out an agenda (B2016/7563/FUL) was granted for the to enhance Sutton Town Centre through mixed- conversion of the West Wing (Bridge Road) use development. The property is identified as from 9,155 sq ft of office accommodation to being within the Sutton Town Centre Area, on 32 residential apartments. The consent includes a Secondary Shopping Frontage, and within the construction of 3 additional storeys to an Area of Taller Building Potential (suitable provide a total Net Sellable Area of 18,361 sq ft for 7 to 10 storeys). This massing allocation is (1,706 sq m). 5 supported by the Tall Buildings Study 2008 and by the ‘Changes to the Policies Map’ (Map 1.51a) Following a viability assessment, Sutton Council of the Draft Sutton Local Plan. offered the provision of either 16% affordable rent or 25% shared ownership units. An Together with Sutton Delivery Office and the agreement to provide 8 shared ownership units Telephone Exchange, Copthall House has also was formalised under a Section 106 agreement. been allocated (STC35) for redevelopment for C3 Residential and ground floor Retail uses 4 within the Draft Sutton Local Plan (currently out Type No. of Units Net Saleable Area for examination; adoption is expected during H1 (sq.m) (sq.ft) 2018). Studio 15 627.6 6,755 In 2014, Sutton Council 1 bed 11 599.7 6,455 introduced an Article 4 2 bed 6 478.5 5,151 Direction to remove Permitted Total 32 1,705.8 18,361 Development rights in the 3 Town Centre Area. The property sits within the Article 4 area and therefore does not benefit from the PD rights to change B1(a) Office floorspace to C3 Residential accommodation. 2 The property is neither Listed nor located within a Conservation Area. It does benefit from an excellent Public Transport Accessibility Level (PTAL) of 6a.

1 Copies of the full submission Studio

documents and Decision 1 bed Notice are included within the Bridge Road data-room. 2 bed Visualisation of West Wing.

Not to scale. For indicative purposes only.

18 Copthall House, 9 Grove Road, Sutton, SM1 1DA Copthall House, 9 Grove Road, Sutton, SM1 1DA 19 Development Potential

Full Residential Redevelopment (Copthall Type No. of Units Net Saleable Area 8-10 Phase 1- Floor Plans House) PHASE 1 (sq.m) (sq.ft)

Pre-application Support Retail 4 860.1 9,258 Commercial Sutton council have been consulted via a pre- Residential application meeting held on 24th August 2017 Studio 11 504.0 5,425 Studio on a larger residential led redevelopment of the 1 bed 59 2,990.5 32,832 site. The proposed 134,613 sq.ft (12,506 sq.m) 7 1 bed 2 bed 44 3,236.0 34,832 redevelopment would provide 128 residential units arranged over 7 to 11 storeys including 3 bed 14 1,469.0 15,812 2 bed and 9,258 sq.ft (806 sq.m) of A1-A3 retail Total Residential 128 8,199.5 88,259 accommodation. 3 bed

The redevelopment of Copthall House would be considered as Phase 1 of a larger scale 1-6 redevelopment, Phase 2 being the development of the adjacent Sutton Delivery Office. Visualisation of Phase 1.

G

Bridge Road Grove Road

Not to scale. For indicative purposes only.

Sutton Council Pre-Application Response

Sutton Council have provided a written response has many positive design features. The use of summarising their views on the two-phase materials would reflect the principles of good scheme presented at the pre-application urban design, and subject to the submission meeting. of materials, would appear to improve the appearance of the streetscene. In addition, They have confirmed that this proposal would the staggered height would allow for better Redevelopment Including Adjoining Site PHASE 1 & 2 most likely be supported if a full application integration of the taller elements of the proposal were to be made: with the lower elements of the parade to the Pre-application Support east. The proposed development is considered to be Working with the adjacent landowner, a scheme has been identified for the comprehensive acceptable in principle, would be in line with the Copies of all applications, proposals and Sutton redevelopment of Copthall House in conjunction with the adjoining property. The combined site site allocation and broadly acceptable in terms Council’s formal pre-application response letter would provide a broadly rectangular plot of approximately 1 acre (0.4 ha). This would provide a of its design, massing and bulk, and the proposal are included within the data-room. total of 195 residential units together with 9,791 sq.ft (910 sq.m) of A1-A3 retail accommodation.

20 Copthall House, 9 Grove Road, Sutton, SM1 1DA Copthall House, 9 Grove Road, Sutton, SM1 1DA 21 Market Commentary Further INformation

INVESTMENT COMPARABLES Service Charge

Address Date On Area WAULT Price Capital Value All leases are full repairing and insuring, with the building maintenance and services including main Market (sq.ft) (Years) (per sq.ft) plant, M & E, security and upkeep of common areas undertaken by the landlord and recovered through a service charge. The Service Charge budget currently equates to £6.98 per sq.ft. with no Ashley Park House, On 28,336 1.00 £10,000,000 £353 shortfall, other than that related to the vacant accommodation. Walton-on-Thames market (quoting)

Benwell House, Sunbury Sep-17 25,587 VP £9,250,000 £362 Data Room Beech House, Reigate Aug-17 16,170 2.60 £6,000,000 £371 Voyager House, Croydon Jul-17 29,135 4.80 £10,250,000 £352 There is a comprehensive data room which interested parties are encouraged to review. Access to this data room is available upon request. Chancery House, Sutton Oct-15 56,444 5.70 £11,600,000 £206

VAT OFFICE LETTING COMPARABLES The property has been elected for VAT, therefore VAT will be payable on the purchase price. However, it is anticipated that the sale of the property will be structured as a Transfer of a Going Address Date Area Rent Tenant Concern (TOGC). Sutton Point, Sutton On Market 20,000 £27.50 (quoting) Proposal Sutton Park House, Sutton On Market 1,000- 6656 £21.50 (quoting) We are instructed to seek unconditional offers in excess of £11,000,000 (Eleven Million Pounds), Quadrant House, Sutton On Market 6,000 - 66,800 £18.50 subject to contract and exclusive of VAT. This reflects a capital value of £275 per sq.ft. (quoting) Knolly House, Croydon Jul-17 6,600 £23.50 Liberta Chancery House, Sutton Jun-17 963 £21.00 Eagle House Group Donegal House, Bromley Apr-17 9,500 £20.00 Splash Damage CONTACTS Interchange, Croydon Feb-17 18,000 £28.00 Ramsay Health Interchange, Croydon Jan-17 10,875 £28.50 Towergate Andy Byrne Owain Jones

Tel: +44 (0)207 870 3566 Tel: +44 (0)207 870 3561 SUTTON RESIDENTIAL COMPARABLES Energy Performance Mobile: +44 (0)7779 611 765 Mobile: +44 (0)7767 422 169 Certificates (EPCs) Email: [email protected] Email: [email protected] Sutton town centre has seen substantial house price growth driven by new build developments. Residential capital values Energy Performance for the town centre are approx. £600 per sq.ft. Certificates can be viewed via the data room, access Property Capital Developer to which is available upon Value application. (per sq.ft)

Sutton Court - 9 Sutton Court Road £808 Inspired Homes The Quarter - High Street £609 Linden Homes Old Inn House - 1 Road £595 Highland Investments Seventeen - 17 Sutton Court Road £527 L&Q

MISREPRESENTATION ACT 1967 Conditions under which particulars are issued: Jones Realty for themselves and for the vendor of this property, whose agents they are give notice that: 1. These particulars do not constitute, nor constitute any part of, an offer or contract. 2. None of the statements contained in these particulars as to this property is to be relied on as a statement or representation of fact. 3. Any intending purchaser must satisfy himself by inspection or otherwise as to the correctness of each of the statements contained in these particulars. 4. The vendor does not make or give, and neither Jones Realty nor any person in their employment has any authority to make or give, any representation or warranty whatever in relation to this property. Finance Act 1989: Unless otherwise stated all prices and rents are quoted exclusive of VAT. Property Misdescription Act 1991: These details are believed to be correct at the time of compilation but may be subject to subsequent amendment. October 2017

22 Copthall House, 9 Grove Road, Sutton, SM1 1DA Copthall House, 9 Grove Road, Sutton, SM1 1DA 23