PRIME SOUTH EAST REFURBISHED MULTI LET OFFICE INVESTMENT FIRST First Point, Buckingham Gate POINT , Gatwick, RH6 0PP » Prime South East multi-let office investment located adjacent to Gatwick Airport, within INVESTMENT walking distance of the terminal buildings. » Highly specified Grade A building totalling SUMMARY 62,028 sq ft which has recently been significantly refurbished at a cost of £3.1m.

» Excellent proximity to Gatwick Airport, the M23 and M25 motorways and access via train to central within 30 minutes.

» 92% let to 5 tenants on 6 leases providing and attractive WAULT of 7.2 years to expiry 4.2 years to break.

» Currently producing £1,423,451 per annum reflecting an average rent on let space of £22.55 psf. Latest deals reflect up to £24.60 psf with £26.00 psf being promoted on the vacant element.

» Strong tenant profile from a good balance of airport related users and large corporates. Major tenants include HSBC, Close Asset Management, Norwegian and Amadeus.

» Outstanding parking provision of 270 spaces reflecting a ratio of 1:230 sq ft.

» Freehold.

» Offers are sought in excess of £17,210,000 (seventeen million two hundred and ten thousand pounds) subject to contract and exclusive of VAT reflecting a net initial yield of 7.75% assuming standard purchasers costs.

Prime South East refurbished multi let office investment First Point, Buckingham GateGate, ,Gatwick Airport, Gatwick, RH6 0PP M25 LOCATION/SITUATION 14 LONDON M4 First Point is located within immediate proximity to M25 Gatwick Airport within the eastern perimeter of the A2 airport boundary, and adjacent to junction 9A of the BROMLEY . The main terminal building is within 12 a few minutes walk. M20 The property is highly accessible by road serviced M2 by the M23 motorway, and by rail serviced by WOKING 10 EPSOM mainline Gatwick Express and Southern Services M26 M3 9 5 to the Airport. The highways authority has recently M25 announced up to £211 million in funding to transform 7 6 T the M23 motorway into a “” between DORKING T A26 S

Junctions 10 (East Grinstead andFARNHAM ) and 8 GUILDFORD I R POI N (M25). As part of the investment the M23 is set to A24 F 9A become a four lane motorway in both directions. AIRPO RT WAY M23 TO J9 AIRPORT WAY 9 The M23 Smart Motorway scheme is already

A B A229 A3 GATWICK U  C committed for completion by 2020, increasing K

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H RT G A31 U U M23 O EC R T H FO ROYAL O R E S A capacity by around 30%. P R R MG P I HA U N M ING

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O W Gatwick benefits from fast, efficient and frequent A N W E S R E S T O R T W A W A D F connections to central London. Gatwick Express Y O A

HILTON FIRST Y A23 A26R POINT E SOUTH LONDON C TERMINAL GATWICK services run nonstop between London Victoria and O COACH U AIRPORT R STATION TH GATWICK T U A272 GATWICK O

AIRPORT S  Gatwick Airport every 15 minutes with a journey time STATION D 

SOUTH R 

NG I B TERMINAL R of 30 minutes. Southern services are also frequent

to London Victoria (30 minutes) via East Croydon A272 H

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(14 minutes) and Clapham Junction (24 minutes) E T E R

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A27 FIRST POINT IS LOCATED WITHIN ROAD A27 RAIL Central London 28 miles London Victoria (Gatwick Express) 30 minutesHASTINGS A FEW MINUTES WALK OF M23/M25 interchange 8.5 miles London Bridge 31 minutes GATWICK TERMINAL BUILDING 38 miles East Croydon 14 minutes EASTBOURNE

Prime South East refurbished multi let office investment First Point, Buckingham Gate, Gatwick Airport, Gatwick, RH6 0PP TEN REASONS TO INVEST IN CRAWLEY/GATWICK

» Located right by UK’s second largest international » Access to Heathrow Airport, 45 minutes »  Business District, the biggest airport, London Gatwick Airport. via M23 and M25. business park in the South East.

» Quick access to London, 30 minutes direct by » Strong sector presence and home to numerous » Prime property availability and development train every 10-15 minutes. global blue-chip companies and headquarters. opportunities offer excellent growth prospects.

» Easy access to the national road network, » Independent research studies have confirmed » Access to talent, a skilled and educated workforce. connected by the M23 and 10 minutes to the M25. the area as a first class location for business. » A vibrant and active local business community.

Prime South East refurbished multi let office investment First Point, Buckingham Gate, Gatwick Airport, Gatwick, RH6 0PP DESCRIPTION

First Point was developed in 1997 and forms a well configured office building totalling 62,028 sq ft over ground and 3 upper floors on a large 1.45 hectare (3.58 acre) site. The floor plates are well configured, around a central atrium/ light well and offer excellent flexibility with numerous options for divisibility.

The ground, first, part second, part third floors alongside the common areas have recently benefited from a substantial refurbishment costing in excess of £3,100,000 and now provide newly refurbished Grade A office specification as follows: » Refurbished entrance reception area » Full height glazed atrium » 2 x 13 person passenger lifts (recently refurbished) » Male and female WC’s on each floor » Disabled WC facilities on 1st and 3rd floors » Shower facilities on 2nd floor » New under floor AET Hiross air conditioning system and chillers » New fire alarm system » Full access raised floors » LED energy efficient lighting with metal suspended ceilings

A total of 270 car parking spaces are provided offering an excellent ratio of 1:230 sq ft, with demised parking at the front and visitor parking at the rear.

RECENTLY REFURBISHED TO A GRADE A SPECIFICATION AT A COST OF £3.1M

Prime South East refurbished multi let office investment First Point, Buckingham Gate, Gatwick Airport, Gatwick, RH6 0PP  GROUND FLOOR EXCELLENT FLEXIBILITY OF NOREGIAN TENURE

ACCOMMODATION AROUND The property is held freehold. A copy of the registered

WC WC WC title is available on request. The site area totals 1.45 CENTRAL ATRIUM OFFERING ha/3.6 acres. POTENTIAL TO SUB DIVIDE OR LET AS A WHOLE

FIRST FLOOR

in a HSBC ACANT r D ACCOMMODATION

WC WC WC The property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) H El Sub Sta T

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R SECOND FLOOR Ground Reception/Atrium First Point Ground Office 1,426.1 15,350 CLOSE ASSET First Office 1,424.9 15,337 MANAGEMENT

SHOWER Second Office 1,418.3 15,266 WC WC 58.2m Third Office 1,493.4 16,075 LINKWAY FASTJET TOTAL 5,762.7 62,028

PLANNING THIRD FLOOR

The vendor where necessary has achieved AMADEUS U/O a release of the Airport related user clause TO AMADEUS

SHOWER on the building. WC WC

E AT G Further information is available on request. For indication purposes only AM GH IN 0m 10m 20m 30m CK BU

Prime South East refurbished multi let office investment First Point, Buckingham Gate, Gatwick Airport, Gatwick, RH6 0PP TENANCIES

First point is 92% let to 5 tenants with an attractive WAULT of 7.2 years to expiry/4.2 years to break.

Lease Area Car Rent Rent % Lease Break Lease Next Floor Tenant Sq Ft Spaces £ pa £ psf Rent Start (Notice) Expiry RR Comments

Ground Norwegian Air UK 15,350 57 £377,472 £24.59 27% 19/04/2016 19/04/2021 18/04/2026 19/04/2021 Vendor to top up 9 months initial rent free. 3 Limited (12 months) months rent free if tenant does not exercise break.

1st (part) HSBC Bank PLC 8,132 33 £199,711 £24.56 14% 24/06/2016 23/06/2021 23/06/2026 24/06/2021 Vendor to top up 12 months rent free + further (6 months) 241 days rent free in respect of the capital contribution. 3 months rent free if tenant does not exercise break. Service charge cap £44,181.13 + RPI no shortfall.

1st (part) Rental Guarantee 7,205 – £187,330 £26.00 13% –––– The vendor will provide a rent, rates and service charge guarantee for a period of up to 24 months or until this element becomes income producing.

2nd (part) Close Asset 12,008 51 £265,320 £22.10 19% 20/11/2015 20/11/2020 19/11/2025 20/11/2020 Vendor to top up 12 months rent free. SC Management Ltd (6 months) cap £65,365.20 + RPI no shortfall. 3m months rent free if tenant does not exercise break. The landlord is to procure an extension of the temporary planning consent prior to 6/8/2024. If this is not achieved the tenant may break on 6/8/2025 on 6 months notice.

2nd (part) Fastjet Plc 3,258 13 £71,573 £21.97 5% 31/08/2012 – 30/08/2017 – Outside Act.

3rd Amadeus Marketing 11,105 48 £212,705 £19.15 15% 14/03/2013 – 22/05/2023 14/03/2018 SC cap £81,163.75 + RPI no shortfall. (UK) Ltd

3rd Under offer to Amadeus 4,970 20 £109,340 £22.00 8% TBC – 22/05/2023 14/03/2018 Under offer. Vendor to top up the initial 12 months Marketing (UK) Ltd rent free. Service charge cap TBC but no shortfall.

TOTAL 62,028 £1,423,451

Prime South East refurbished multi let office investment First Point, Buckingham Gate, Gatwick Airport, Gatwick, RH6 0PP MARKET COMMENTARY

Crawley and Gatwick have a current built total office stock of approximately 4.8 million sq ft. As of Q2 2016 current office supply is reported at 405,000 sq ft with a vacancy rate of 9.8%, which is lower than the South East average vacancy of approximately 10%.

In terms of comparable supply in the vicinity, the focus for larger office developments is concentrated out of town, primarily at Manor Royal, where a number of former industrial sites have been redeveloped to office uses.

2015 saw annual demand levels reach a new peak for the market following good take up in the smaller size bands alongside the agreement of two exceptional deals. In Q2 2015, Virgin Atlantic agreed to let the entirety of the Leonardo Building in the Crawley Business District, which started speculatively in 2014. The terms reflected £23.00 psf with 18 months’ rent free over the 16.5 year lease. The move sees the firm relocate out of their existing, slightly larger HQ on an adjacent site. Alongside this, Q4 saw Swedish human care firm Elekta agreed terms for an 110,000 sq ft pre-let at Manor Royal, constituting the first phase of a new headquarters for the firm. The Elekta deal reflected £23.95 psf. The year also saw the Grade A St John’s House receive its first occupier interest with BroadSoft agreeing terms for the first floor. The 30,200 sq ft building was refurbished in 2012.

RENT AREA DATE BUILDING TENANT £ PSF SQ FT First Point, Q3 16 Buckingham Gate HSBC £24.50 8,150 sq ft First Point, Q2 16 Buckingham Gate Norwegian Air £24.50 15,400 sq ft CRAWLEY AND GATWICK ARE Q4 15 Ph1, Manor Royal Elekta £23.95 110,000 sq ft HOME TO NUMEROUS BLUE CHIP Leonardo Building, Q2 15 Crawley BP Virgin £23.00 110,000 sq ft COMPANIES INCLUDING THALES, Q1 15 City Place, Gatwick Nespresso £24.50 8,600 sq ft VIRGIN, EDF, NESTLÉ AND ELEKTA

Prime South East refurbished multi let office investment First Point, Buckingham Gate, Gatwick Airport, Gatwick, RH6 0PP TENANT FINANCIAL INFORMATION

Close Asset Management Ltd (19% of total income) Fastjet PLC (5% of total income) Close Asset Management Ltd is a wholly owned subsidiary of Close Fastjet are Africa’s first pan-continental airline. Since launching in 2012, Brothers Group Plc and operates as part of CBG’s Asset Management they have flown nearly 2,000,000 passengers with customers benefiting from division. The company’s principal activity is the provision of financial advice, fares as low as $10 one way. Fastjet currently operate three aircraft from their investment management, and self-directed services to private clients and Tanzania base with plans to growth to a fleet of thirty four aircraft by 2018 small institutions. operating from bases across the region. In April 2015 Fastjet raised £50m in equity funding by way of a share issue. We detail below a snapshot of the latest financial figures for Close Asset Management Ltd. We detail below a snapshot of the latest financial figures for Fastjet PLC.

31/07/2015 31/07/2014 31/07/2013 31/12/2015 31/12/2014 31/12/2013 Turnover £84,373,000 £79,138,000 £60,152,000 Turnover £48,106,929 £40,998,299 £16,938,193 Pre-tax Profit £14,971,000 £11,378,000 £6,443,000 Pre-tax Loss -£30,288,398 -£42,757,524 -£21,033,141 Net Worth £26,668,000 £22,991,000 £14,042,000 Net Worth £17,297,937 -£12,254,677 £2,219,340

Prime South East refurbished multi let office investment First Point, Buckingham Gate, Gatwick Airport, Gatwick, RH6 0PP Amadeus Marketing (UK) Ltd (23% of total income) HSBC Bank Plc (14% of total income) Amadeus was created in 1987 as an independent and neutral global distribution HSBC Bank plc is one of the largest banking and financial services organisations system (GDS). Iberia, Air France, Lufthansa and SAS needed to connect with in the world. HSBC’s international network comprises around 7,500 offices in travel agents in real-time to make airline booking quick and convenient all over 80 countries and territories in Europe, the Asia-Pacific region, the Americas, over the world. the Middle East and Africa. In 2013 their GDS facilitated more than half a billion travel agency bookings HSBC Bank plc is one of the four major clearing banks in the and processed 1.6 billion transactions every day. The company is a wholly and is a wholly owned subsidiary of HSBC Holdings. The business ranges from owned subsidiary of Amadeus IT Group S.A incorporated in Spain. the traditional High Street roles of personal finance and commercial banking, to private banking, consumer finance as well as corporate and investment banking. We detail below a snapshot of the latest financial figures for Amadeus Across all brands the bank operates some 1800 sites in the UK. Marketing (UK) Ltd. We detail below a snapshot of the latest financial figures for HSBC Bank plc.

31/12/2015 31/12/2014 31/12/2013 31/12/2015 31/12/2014 31/12/2013 Turnover £30,616,491 £52,701,531 £48,809,549 Turnover £18,630,000,000 £18,313,000,000 £20,302,000,000 Pre-tax Profit £1,027,121 £1,7 73,172 £1,716,147 Pre-tax Profit £2,971,000,000 £1,953,000,000 £3,294,000,000 Net Worth £2,045,765 £7,065,283 £5,574,404 Net Worth £30,486,000,000 £28,784,000,000 £24,436,000,000

Prime South East refurbished multi let office investment First Point, Buckingham Gate, Gatwick Airport, Gatwick, RH6 0PP Norwegian Air UK Limited (27% of total income) Norwegian Air International is an Irish airline owned by Norwegian Air Shuttle, flying scheduled services within Europe and North America. The airline operates Boeing 737-800 aircraft with bases at London Gatwick (LGW) in the United Kingdom, Helsinki (HEL) in Finland, Barcelona El Prat (BCN), Las Palmas (LPA), Madrid (MAD), Tenerife South (TFS), Alicante (ALC), Málaga (AGP) and Palma de Mallorca (PMI) in Spain. as well as Rome Fiumicino (FCO) in Italy. Its registration within Ireland and outside Norway allows the company to take advantage of European Union airline freedoms and agreements. There are no reported accounts for Norwegian Air UK Ltd since its incorporation in 2015. Norwegian Air Shuttle own 100% of Norwegian Air UK Ltd who have a market capitalisation of approximately 10bn NOK and employ over 4,500 people.

Prime South East refurbished multi let office investment First Point, Buckingham Gate, Gatwick Airport, Gatwick, RH6 0PP VAT INVESTMENT The property is elected for VAT and it’s anticipated CONSIDERATIONS the transaction will be treated as a TOGC. » Located right by UK’s second largest international airport, London Gatwick Airport. CAPITAL ALLOWANCES » Excellent accessibility to M23 and M25. The vendor is to retain the benefit of all capital allowances on this transaction. » Access to central London by train within 30 minutes. EPC » Comprehensively refurbished building. » Exceptional flexibility given configuration The property has an EPC rating of C73. of floor plates around central atrium. Full information is available on request. » Strong tenant occupier profile. » Crawley/Gatwick has a strong sector presence and home to numerous global blue-chip PROPOSAL companies and headquarters. Our client is seeing offers in excess of £17,210,000 (seventeen million two hundred » Re-based rental base of £22.55 psf with and ten thousand pounds), subject to contract strong growth potential given lack of good and exclusive of VAT. A purchase at this level quality space in the vicinity. will provide an attractive net initial yield of » Attractive yield profile. 7.75% after standard purchaser’s costs.

FURTHER INFORMATION

Peter Flanders [email protected] John Blackwell [email protected] Simon Martin [email protected]

Telephone: 020 7409 7828 Fax: 020 7491 9121

Disclaimer Notice Messrs Joiner Cummings for themselves and (and their joint agents where applicable) for the vendors or lessors of this property whose agents they are give notice that; (i) the particulars are set out as a general outline for the guidance of the intending purchasers and do not constitute part of an offer or contract; (ii) all descriptions, dimension references to condition and necessary permissions for use and occupation and other details are given in good faith and are believed to be correct, but are given without responsibility and any intending purchasers or tenant 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; (iii) all plant, machinery, equipment, services and fixtures and fittings referred to in these particulars were present at the date of preparing these particulars, they have not however been tested and therefore we give absolutely no warranty as to their condition, operation or fitness for the purpose of an intending occupier or purchaser; (iv) no investigations have been undertaken by Joiner Cummings in respect of asbestos, issues concerning pollution and potential land, building, air or water contamination and any intending purchasers or tenant must satisfy themselves by inspection; (v) unless otherwise stated, all prices rents and other charges are quoted exclusive of Value Added Tax (VAT) and any intending purchaser or tenant must satisfy themselves as to the incidence of VAT in respect of any transaction; (vi) no person in the employment of Joiner Cummings has any authority to make or give any representations or warranty whatever in relation to this property; (vii) no responsibility can be accepted for any expenses incurred by intending purchasers in inspecting properties which have been sold, let or withdrawn. The date of this publication is November 2016. 01622 833880 | createwithimpact.com (E5063/WH)