Chichester Fields Business Park, Po20 2Fr

CHICHESTER FIELDS BUSINESS PARK, PO20 2FR

MODERN MULTI-LET SOUTH COAST OFFICE INVESTMENT CHICHESTER FIELDS BUSINESS PARK, PO20 2FR

INVESTMENT SUMMARY

• OPPORTUNITY TO ACQUIRE A WELL LOCATED SOUTH COAST MULTI-LET OFFICE • LOW AVERAGE RENT OF £14.40 PSF INVESTMENT • AVERAGE WEIGHTED UNEXPIRED LEASE TERM OF 4.53 YEARS (3.08 YEARS • LOCATED ON A MODERN BUSINESS PARK LESS THAN 10 MINUTES FROM CHICHESTER TERM CERTAIN) CITY CENTRE • CAR PARKING PROVISON OF 70 SPACES (EXCELLENT RATIO OF 1:200 SQ FT) • THE PROPERTY COMPRISES TWO DETACHED OFFICE BUILDINGS PROVIDING A NET INTERNAL AREA OF 14,244 SQ FT (1,323.3 SQ M) • OFFERS ARE SOUGHT IN EXCESS OF £2,400,000 (TWO MILLION, FOUR HUNDRED THOUSAND POUNDS) FOR THE FREEHOLD INTEREST. A PURCHASE AT THIS LEVEL • LET TO 8 TENANTS ON 9 LEASES, PRODUCING A TOTAL GROSS RENTAL INCOME OF REFLECTS A NET INITIAL YIELD OF 8.36%, AND A LOW CAPITAL VALUE OF £168 PSF, £241,546 PA WITH A NET OPERATING INCOME OF £213,521 PA ASSUMING PURCHASERS COSTS OF 6.36%

MODERN MULTI-LET SOUTH COAST OFFICE INVESTMENT 2 CHICHESTER FIELDS BUSINESS PARK, PO20 2FR

A232 LOCATION A346 A33 A3 A240 A34 A339 A322 M25 M3M3 Chichester is located in the County of West Sussex and lies approximatelyA342 A3 21 miles east of Portsmouth, 30 miles west of Brighton and 65 miles Basingstoke A287 Guildford south of London. A338 Andover A31 A24 M23M2 A303 A303 Farnham Chichester has a district population of around 119,000 persons with A3 A281 A343 A31 Crawley 81.4% of the working age population classed as ‘economically active’. A34 M3M3 Current unemployment is notably low, standing at 2.3% against a national Winchester A264 Salisbury A3 M6M6 A1(M)A1(M) rate of 4.4%. A286 Horsham A272 A36 Petersﬁeld A272 A272 A338 A24 A23 ROAD A286 M27M27 A29 A1(M)A1(M) A3 ((M)M) • Chichester Fields Business Park has excellent road A31 Southampton A24 M27 A27 communications being situated on the A27 trunk road, A27 a major South Coast arterial route which links Brighton, Brighton Worthing M6M622 Worthing, Portsmouth and Southampton. Portsmouth Chichester M6M611 M1M1 • The A27 connects to the A3 which in turn provides access to the M25 and London.

RAIL M6M6 M1M1

• Subject property is located within close proximity to M5M544 M42M42 two train stations; Barnham and Chichester. Midhurst & London M6 • Fastest journey times to key destinations include: Worthing & Brighton FROM CHICHESTER STATION EST TRAVEL TIME M1M1 Petersﬁeld A27 London Waterloo 116 minutes M5M50 M4M400 A1(M)A1(M) M111 Portsmouth & Southsea 40 minutes B2178 A286 City Fields Way M4M4 Southampton Central / Airport Parkway 60 minutes / 59 minutes A27 M4M4 M25 M25

B2144

AIR M5M5 M3M3 M2M233 M2M200

M27 AIRPORT DISTANCE EST TRAVEL TIME Chichester Station Chichester Gatwick 40 Miles 60 Minutes A259 A27 Heathrow 55 miles 80 Minutes Bognor Regis A286 Portsmouth & Southampton International 42 Miles 40 Minutes Southampton

MODERN MULTI-LET SOUTH COAST OFFICE INVESTMENT 3 CHICHESTER FIELDS BUSINESS PARK, PO20 2FR

SITUATION DESCRIPTION

The subject property is prominently situated on City Fields Way, approximately 3 miles to The subject property comprises two modern office buildings of brick construction the north east of Chichester City centre. arranged over two floors. The buildings offer flexible working space and benefit from the following specification: Chichester Fields Business Park is well connected, benefiting from its close proximity to the A27 South Coast trunk road, a major arterial route linking Brighton, Worthing, • Adjustable trunking system Portsmouth and Southampton. • Suspended ceilings Opposite the property, Persimmon Homes are developing Dukes Meadow, a 63 unit residential scheme of two, three, four and five bedroom homes. Immediately adjacent the • Combination of LED and CAT 5 lighting property is the extensively refurbished Salisbury House, owner-occupied by Sage House. • Fibre Optic Connectivity Chichester Business Park, which lies to the east, is home to tenants including Philips The property benefits from 70 car parking spaces equating to an excellent ratio Respironics, The South East Coast Ambulance Service and the worldwide headquarters of 1:200 sq ft. of Carte Blanche.

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MODERN MULTI-LET SOUTH COAST OFFICE INVESTMENT 4 CHICHESTER FIELDS BUSINESS PARK, PO20 2FR

ACCOMMODATION TENURE

The building has been measured in accordance with the RICS Property Measurement Freehold 1st Edition (incorporating IPMS 3). Reliance upon a Lane & Frankham measured survey will be provided to the purchaser.

The schedule of areas for the subject properties are as follows:

IPMS NIA BUILDING SQ FT SQ M SQ FT SQ M Lincoln House Ground Floor 2,743 254.8 2,635 244.8

First Floor 2,962 275.2 2,827 262.6

Exeter & York House Ground Floor 4,385 407.4 4,261 395.9

First Floor 4,767 442.9 4,521 420.0

Overall total 14,857 1,380.3 14,244 1,323.3

MODERN MULTI-LET SOUTH COAST OFFICE INVESTMENT 5 CHICHESTER FIELDS BUSINESS PARK, PO20 2FR

FLOORPLANS

Exeter & York House Ground Floor

Tenant A Partition NIA IPMS 3 125.6 sq m 129.7 sq m 1352 sq ft 1396 sq ft

Tenant B NIA IPMS 3 270.3 sq m 277.7 sq m 2909 sq ft 2989 sq ft

Structure (Typical )

Adovation Limited Eclipse Financial Systems Limited EXETER YORK

Exeter & York House First Floor

Partition Tenancy B Tenancy C NIA NIA IPMS 3 IPMS 3 192.7 sq m 118.8 sq m 125.0 sq m 203.3 sq m Tenancy A 2074 sq ft 1279 sq ft 1345 sq ft 2188 sq ft NIA IPMS 3 108.5 sq m 114.6 sq m 1168 sq ft 1234 sq ft Partition

Structure (Typical )

Eclipse Financial Systems Limited PrismTech Limited Secretary of State for Communities EXETER YORK and Local Government

Lincoln House Lincoln House Ground Floor First Floor

Structure (Typical ) Structure (Typical ) Partition Tenancy C

NIA IPMS 3 121.8 sq m 126.8 sq m Tenancy A 1311 sq ft 1365 sq ft NIA 86.9 sq m 935 sq ft Tenancy B NIA Partition IPMS 3 36.1 sq m 90.2 sq m 389 sq ft 971 sq ft IPMS 3 37.8 sq m 407 sq ft Riser

B4 Bookeeping Compass Contract Kingsbridge Estates LINCON LINCON Southampton Assessment and Study

MODERN MULTI-LET SOUTH COAST OFFICE INVESTMENT 6 CHICHESTER FIELDS BUSINESS PARK, PO20 2FR

TENANCIES

The property is let to 8 tenants with an average weighted unexpired lease term of 4.53 years and 3.08 years to lease breaks. The total gross rental income is £241,546 per annum with the majority of leases including a fixed service charge rent. The Net Operating Income is £213,521 per annum.

UNIT TENANT NAME TOTAL AREA LEASE EXPIRY BREAK RENT RENT FIXED SERVICE GROSS COMMENTS (SQ FT) START DATE DATE (PA) (PSF) CHARGE (PSF) INCOME (PA)

Exeter House Rent deposit £5,432.25 + VAT. Rent inclusive of Service PrismTech Limited 1,279 08/04/2016 07/04/2021 NA £21,729 £16.99 £0.00 £21,729 First Floor Charge. No rent free period. Outside 1954 Act.

Exeter House Rent deposit £5,000. Outside 1954 Act. Adovation Limited 1,352 08/09/2015 07/09/2020 07/12/2018 £16,700 £12.35 £0.00 £16,700 Ground Floor Tenant has exercised their option to determine.

Exeter & Eclipse Financial York House 2,909 20/11/2015 19/11/2020 NA £38,918 £13.38 £3.36 £48,692 3 months rent-ree period. Outside 1954 Act. Systems Limited Ground Floor Secretary of State for Communities and Lease is due to complete imminently. Inside the York House Local Government acting 2,074 03/11/2018 02/11/2028 02/11/2023 £31,000 £14.95 £3.16 £37,554 1954 Act. Rent commencement date 03/11/2018. First Floor by the Driver Agency 5 yearly OMRR’s. and Vehicle Standards

Exeter House Eclipse Financial Outside of the 1954 Act. 5 months rent free period. 1,168 23/09/2016 19/11/2020 NA £15,037 £12.87 £3.36 £18,961 First Floor Systems Limited Terms co-terminus wth existing lease.

Lincoln House Rent deposit £3,284 + VAT. Outside the 1954 Act. 6 B4 Bookkeeping 935 07/08/2017 06/08/2022 NA £13,136 £14.05 £2.95 £15,894 Unit 1 months rent-free period. Rent linked to RPI.

Inside 1954 Act. 6 months rent-free period. Annual Lincoln House Compass Contract 1,311 07/10/2016 06/10/2026 31/07/2021 £18,793 £14.33 £2.95 £22,660 tenant break option from 31/07/2022. 6 months Unit 2 Services (UK) Limited notice on tenant break.

Southampton Rent deposit £1,367 + VAT. Outside the 1954 Act. No Lincoln House Assessment and 389 16/09/2017 15/09/2022 16/09/2019 £5,468 £14.06 £2.95 £6,616 rent-free period. Rent and servcie charge reviewed to Unit 3 Study Services Limited RPI. Mutual break with 6 months notice.

Lincoln House Kingsbridge Inside the 1954 Act. 3 months rent-free period. 2,827 11/07/2018 10/07/2023 NA £44,400 £15.71 £2.95 £52,740 Units 4 & 5 Estates Limited Servcie charge subject to RPI-linked uplift in year 5.

TOTALS 14,244 £205,181 £14.40 £241,546

SERVICE CHARGE COSTS (2018/19 BUDGET) -£28,025

NET OPERATING INCOME £213,521

MODERN MULTI-LET SOUTH COAST OFFICE INVESTMENT 7 CHICHESTER FIELDS BUSINESS PARK, PO20 2FR

SERVICE CHARGE

The budget for 2018/2019 stands at £36,025 equating to £2.53 per sq ft. A number of the current tenants are paying a ‘fixed contribution’ charge totalling £41,738 per annum.

Further information is available on request.

COVENANTS

21.83% of GROSS INCOME 28.01% of GROSS INCOME 15.55% of GROSS INCOME 9.38% of GROSS INCOME Founded in 2004, Kingsbridge Estates is Eclipse Financial Systems are UK based The Drivers and Vehicle Standards Agency Compass Contract is a Hospitality and Facilities a privately owned South East focussed providers of applications and software systems is a Government department. They are Services company. They employ 60,000 real estate investment and development used by financial services. Their clients include responsible for carrying out driving tests, people, and their clients include the National company. The company manages its own major reinsurers, insurance companies and approving driving instructors and MOT Grid, River Island, Chelsea FC and B&Q. portfolio which currently comprises offices, aggregators across the world. Their expertise testers, roadside checks on drivers and In 2016, they had a turnover of £1,709,191. industrial, horticultural packing stations lies in software development an digital vehicles and monitor vehicle recalls. and serviced apartments. marketing / Guarantor company of the above.

6.91% of GROSS INCOME 9.00% of GROSS INCOME 6.58% of GROSS INCOME 2.74% of GROSS INCOME Adovation are an award winning company, Adlink (formerly PrismTech) are suppliers B4 Bookkeeping offers accounting and Southampton Assessment and Study delivering innovative and impactful brand of data connectivity and Internet of Things bookkeeping services for companies across Services Limited provide needs solutions, campaigns, digital media and first platform solutions, tools and professional the UK. They specialise in helping start-ups, assessments for students eligible for class marketing tools for some of the most services. Their clients are active in a range of sole traders and small Limited companies. the Disabled Students Allowance. repescted brands across all markets. market sectors includes industrial automation, energy, healthcare transportation, smart cities, financial service, aerospace and defence.

MODERN MULTI-LET SOUTH COAST OFFICE INVESTMENT 8 CHICHESTER FIELDS BUSINESS PARK, PO20 2FR

OCCUPATIONAL MARKET COMMENTARY

The subject property is centrally located between two recognized commercial centres; Brighton and Southampton. As the South East office market continues to strengthen, positive occupier sentiment has lead to a steady take up across this market. This has been further accentuated by a lack of Grade A accommodation. Brighton is one of the key office location on the South Coast with record rents expected to be set in excess of £28 per sq ft on grade A buildings in 2018. Vacancies have come down in recent years and Brighton now stands as one of the tightest office markets in the country. Average rents have increased markedly over the past few years and Brighton remained among the UK’s strongest performers in the past year, with a growth level around 4%. The M27 Corridor has witnessed an increase in headline rents over the last 12 months. Prime Southampton town centre rents have now reached £22.00 per sq ft. Out of town rents also reached £21.50 per sq ft in 2017.This is reflective of a robust performance and is set to perform well given the gulf in correlation to performance indicators across similar office centres in the South East. Rental levels in Chichester are at a notable discount to these neighbouring centres. Recent comparable lettings on the South Coast include:

ADDRESS LOCATION SIZE (SQ FT) TENANT ACHIEVED RENT (PSF) White Building, Southampton In Town 6,489 Foot Anstey LLP £22.00 Building 4000, Lakeside North Harbour, Portsmouth Out of Town 5,312 Astute £20.05 Jelico House, Hedge End Out of Town 3,000 Currie & Brown £20.00 The Quay, Southampton Out of Town 3,372 Petrofac £20.00 Kings Park House, Southampton In Town 3,150 The Works Staffing Solution £19.50 Enterprise House, Southampton In Town 2,700 Lambert Smith Hampton £19.00 Forum 5, Solent Business Park Out of Town 12,500 Shoosmiths £18.50 Tollbar House, Hedge End Out of Town 8,526 Jewson £18.50 1 Grosvenor Square, Southampton Town Centre 13,380 Prestige Cruise Services £18.50 3000 Lakeside Business Park, Portsmouth Out of Town 8,000 Lead Forensics £18.00 Director General’s House, Southampton In Town 8,722 The Workstation £18.00 One Port Way, Portsmouth Out of Town 3,968 Victory Communications £16.50

MODERN MULTI-LET SOUTH COAST OFFICE INVESTMENT 9 CHICHESTER FIELDS BUSINESS PARK, PO20 2FR

OFFICE INVESTMENT MARKET

Relative to trend, South East offices is among the most actively traded sectors in the UK property market. Some £5.4bn of assets have changed hands over the last 12 months, up 46% on the previous year and 77% above the annual average. Since the start of 2018, investment into South Coast offices has reached c. £120m as a number of major out of town opportunities successfully traded. Well situated assets in strong micro locations such as City Fields offers an investor the opportunity to add value and push returns through a number of realistic asset management initiatives. With a severe shortage of quality stock coupled with notable yield compression in the other sectors such as Industrial, the office sector is well placed for robust performance over the course of 2018.

Key investment deals on the South Coast include:

DATE PROPERTY TENANT PRICE NIY CAPITAL VALUE (PSF)

March 2018 Dukes Meadow, Bourne End Multi £13,850,000 6.90% £334

November 2017 E1 & E2 The Chase, Hertford Multi £3,700,000 6.74% £295

November 2017 1 Dorset Street, Southampton Multi (70% vacant) £5,200,000 N/A £212

August 2017 Anglo Office Park, Amersham Multi £5.300,000 6.94% £217

July 2017 One Market Avenue, Chichester Multi £2,200,000 5.88% £286

March 2017 23 Cumberland Place Multi £4,000,000 7.62% £228

January 2017 Grosvenor House, Southampton Vacant £4,900,000 N/A £145

June 2016 3-7 Town Quay, Southampton Multi £7,588,000 7.26% £157

March 2016 Linea House, Fleet Multi £3,750,000 7.62% £170

MODERN MULTI-LET SOUTH COAST OFFICE INVESTMENT 10 CHICHESTER FIELDS BUSINESS PARK, PO20 2FR

EPC

Lincoln House has an EPC rating of C and a score of 55. York House & Exeter House have an EPC rating of C and a score of 54.

Copies of the EPC are available upon request.

VAT

The property is elected for VAT and it is anticipated that the sale will be treated by way of a Transfer of a Going Concern (TOGC).

FURTHER INFORMATION

PROPOSAL For further information or to arrange an inspection, please contact:

Charlie Lake Jack Baker Offers are sought in excess of£2,400,000 (Two Million, Four Matthew Barker Hundred Thousand Pounds) for the freehold interest. 020 7198 2777 023 8024 9181 020 7198 2169 [email protected] [email protected] [email protected] A purchase at this level reflects anet initial yield of 8.36%, Lambert Smith Hampton and a low capital value of £168 psf, assuming purchasers UK House, costs of 6.36% 180 Oxford Street, London, W1D 1NN

Subject to Contract and Exclusive of VAT © Lambert Smith Hampton November 2018 Disclaimer: Lambert Smith Hampton Group Limited and its subsidiaries and their joint agents if any (“LSH”) for themselves and for the seller or landlord of the property whose agents they are give notice that: (i) These particulars are given and any statement about the property is made without responsibility on the part of LSH or the seller or landlord and do not constitute the whole or any part of an offer or contract. (ii) Any description, dimension, distance or area given or any reference made to condition, working order or availability of services or facilities, fixtures or fittings, any guarantee or warrantee or statutory or any other permission, approval or reference to suitability for use or occupation, photograph, plan, drawing, aspect or financial or investment information or tenancy and title details or any other information set out in these particulars or otherwise provided shall not be relied on as statements or representations of fact or at all and any prospective buyer or tenant must satisfy themselves by inspection or otherwise as to the accuracy of all information or suitability of the property. (iii) No employee of LSH has any authority to make or give any representation or warranty arising from these particulars or otherwise or enter into any contract whatsoever in relation to the property in respect of any prospective purchase or letting including in respect of any re-sale potential or value or at all. (iv) Price or rent may be subject to VAT and any prospective buyer or tenant must satisfy themselves concerning the correct VAT position. (v) Except in respect of death or personal injury caused by the negligence of LSH or its employees or agents, LSH will not be liable, whether in negligence or otherwise howsoever, for any loss arising from the use of these particulars or any information provided in respect of the property save to the extent that any statement or information has been made or given fraudulently by LSH. (vi) In the case of new development or refurbishment prospective buyers or tenants should not rely on any artists’ impressions or architects’ drawings or specification or scope of works or amenities, infrastructure or services or information concerning views, character or appearance and timing concerning availability or occupation and prospective buyers or tenants must take legal advice to ensure that any expectations they may have are provided for direct with the seller or landlord and LSH shall have no liability whatsoever concerning any variation or discrepancy in connection with such matters.

MODERN MULTI-LET SOUTH COAST OFFICE INVESTMENT 11