GUILDFORD | GU2 7YL

A unique opportunity to invest in one of the South East’s premier business locations providing both stabilised income and the opportunity to significantly drive value through active asset management Buildings 1000 & 2000 and Building 3000 CATHEDRAL SQUARE | | GU2 7YL

Contents

INVESTMENT SUMMARY 05

INVESTMENT RATIONALE 08

ESTATE PLAN 10

LOCATION & CONNECTIVITY 12

SITUATION 14

GUILDFORD – DESTINED FOR GROWTH 16

PULSE – AT THE HEART OF THE SQUARE 20

DESCRIPTION 22

SPECIFICATION 24

ACCOMMODATION 26

FLOOR PLANS 28

TENANCIES 30

COVENANT INFORMATION 32

OCCUPATIONAL MARKET 34

INVESTMENT MARKET 35

DRIVING PERFORMANCE 36

DEBT 38

SERVICE CHARGE 38

TENURE 38

FURTHER INFORMATION 39

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Investment Summary

BUILDINGS 1000 & 2000

• Grade A, fully and recently refurbished office comprising two inter-linked buildings totalling 118,194 sq ft with an exceptional parking ratio of 1:266 sq ft. • The property is located on the edge of Guildford town centre which is considered one of the most affluent and pleasant environments in the South East and has established itself as one of the UK’s top tech-hubs. • Guildford has long been recognised as ‘The Hollywood of gaming’, and is home to some of the worlds leading gaming companies, such as EA and Ubisoft. • The University of , located 0.6 miles from the asset is consistently ranked within the top 25% of Universities in the UK. Certain subjects, such as Food Science, are recognised as being the best in their field, due to the Universities leading research as well as its links with industry through the Surrey Research Park. • Extremely prominent building with easy access to the A3 and city centre. • Excellent green credentials with BREEAM Very Good rating. • Let to 10 tenants with a marketing rent of £3,587,445 per annum which equates to £32.59 per sq ft providing excellent income diversity. • Attractive WAULT of 4.24 years to break and 5.33 years to expiry. • 100% rent and service charge collection during Covid-19 restrictions.

BUILDINGS 1000 & 2000 PROPOSAL

Offers are invited in excess of£52,200,000 (Fifty Two Million Two Hundred Thousand Pounds) subject to contract and exclusive of VAT, for 100% of the shares in the Luxembourg LLC (SARL) that owns the freehold interest in the property. This reflects an attractiveNet Initial Yield of 6.75% and a low capital value of £442 per sq ft, assuming purchasers costs of 1.80%.

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Investment Summary

BUILDING 3000

• Offered with full vacant possession, Building 3000 provides an opportunity to comprehensively refurbish the existing office accommodation to deliver workspace that meets the demands of the office environment in a post Covid-19 pandemic world. • Building 3000 will provide intelligently designed work spaces and dedicated communal areas that create opportunities for collaborative working. • Building 3000 will provide 46,867 sq ft of flexible office accommodation arranged over ground and two upper floors. The office space will wrap around a buzzing central hub on the ground floor. • The wider Cathedral Square estate has had significant capital invested in recent years, with a particular focus on amenity and well-being, once complete Building 3000 will benefit from all that the estate has to offer such as the lifestyle service, Pulse and the onsite café. • Car parking ratio of 1:219 sq ft.

BUILDING 3000 PROPOSAL

Offers are invited in excess of£9,370,000 (Nine Million Three Hundred and Seventy Thousand Pounds) subject to contract and exclusive of VAT, for 100% of the shares in the Luxembourg LLC (SARL) that owns the freehold interest in the property. This reflects alow capital value of £200 per sq ft.

COMBINED PROPOSAL

Offers for the combined are invited in excess of£61,570,000 (Sixty One Million Five Hundred and Seventy Thousand Pounds) subject to contract and exclusive of VAT, for 100% of the shares in the Luxembourg LLC (SARL) that owns the freehold interest in the property. This reflects a Net Initial Yield of 5.72% and a low capital value of £373 per sq ft, assuming purchasers costs of 1.80%.

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Investment Rationale

• A best in class asset in one of the most • Buildings 1000 & 2000 offer stabilised income • The estate has been meticulously • Cathedral Square is extremely well established office markets in the South East. with medium term reversionary potential. designed with the health and well- positioned to benefit from the growth of being of the occupier at its heart. The the technology sector in the immediate • Situated in an urban business park location, • Buildings 1000 & 2000 have large floor plates, environment, amenity offering and market and be flexible to capitalise on the property benefits from easy access to the are low rise and the recent refurbishment has lifestyle service Pulse will lend to its Life Sciences requirements in the future. A3 connecting to London and the south east been finished to a high quality. These features, success in the post Covid-19 workplace. while being in close proximity to Guildford combined with that of the large public spaces, • In isolation, Buildings 1000 & 2000 offer town centre. both internally and externally, will appeal • Building 3000 is set to benefit from the an attractive opening Cash on Cash return to occupiers following on from the Covid-19 investment already made in the existing in excess of 10%, assuming 55% LTV and • Over £10 million has been invested in pandemic. environment and will add a new element an all in rate of 370bps. comprehensively refurbishing the office of flexible workspace that has been space of Building 1000 & 2000, amenity and • Immediate opportunity to outperform on the designed to create opportunities for environment. The result is a future proofed guaranteed vacant space of Building 1000 & collaborative working. asset with strong ESG credentials in part, with 2000 which is fully refurbished and ready for the ability to capitalise and significantly drive occupation, capitalising on the success of the returns with the refurbishment of Building most recent letting to Lanes Group in Jan 2021. 3000.

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Estate Plan

A3 (NORTH)

A3 (SOUTH)

BASEMENT CAR PARK

BUILDING BUILDING 2000 1000

MAIN ENTRANCE

BASEMENT CAR PARK BUILDING 3000 MAIN ENTRANCE CATHEDRAL SUARE

SITE ENTRANCE N CATHEDRAL SUARE

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Location & Connectivity

LOCATION Join the many blue-chip ENTERPRISE M3 – LOCAL ENTERPRISE PARTNERSHIP Stratford The property is located in Guildford, an upon Avon Bedfocompaniesrd that already benefit Central London 30 miles M1 affluent and thriving employment centre M11 The EM3 LEP area is globally competitive with a M25 Junction 10 10 miles Newport from beingBiggleswade in Guildford. Haverhill Ipswich Banbury knowledge, digital and design-based economy that offers a strong commuter base, and Evesham Pagnell Sudbury Milton Royston Saffron including high value sectors such as; aerospace and provides an excellent array of shopping Keynes Walden defence; digital and cyber security; life sciences and Heathrow 23 miles and leisure amenities. Letchworth med-tech; and crea-tech. Felixstowe Harwich Gatwick 30 miles Hitchin M5 Leighton Located approximately 30 miles south west of Central Buzzard M1 Guildford is one of the four key towns in the EM3 LEP M40 A1(M) Braintree Luton Stevenage STANSTED London and 10 miles from Junction 10 of the M25, Cheltenham Bicester Dunstable area, which inColchester total includes a population of 1.52m London Waterloo 36 minutes Bishop's the town is situated just off the A3 dual carriageway. LUTON Welwyn Stortford people, 89,700 businesses, 2 county councils and Guildford Mainline Railway Station provides an Garden 15 district authorities generating £49bn GVA for the Aylesbury City Witham Gatwick Airport Kidlington39 minutes Ware Clacton-on-Sea excellent service to London Waterloo with a journey Witney Tring Hemel Hertford UK economy. Guildford combines a high level of St Harlow Reading 35 minutes Hempstead Hatfield time of approximately 32 minutes. Albans Chelmsford affluence,Maldon low levels of unemployment and a high Stroud Berkhamsted Hoddesdon Thame status of education offering with 44% of employees Cirencester M11 Heathrow International Airport is only 23 miles to Amersham M25 in Guildford having a degree or higher educational the north, easily accessible via the A3 and M25. Abingdon Watford qualification making Guildford the 6th most highly High Barnet Enfield It is the UK and Europe’s busiest airport with 90 Wycombe M1 Chigwell educated city in the UK. Rayleigh airlines serving approximately 241 destinations in Didcot M40 Beaconsfield Brentwood Southend-on-Sea 86 countries. The airport handles approximately 80 Marlow Harrow Swindon Uxbridge M25 million passengers a year. Gatwick International Henley-on-Thames Maidenhead Canvey Island Airport, the UK’s second busiest is 30 miles to the LONDON Woolwich CONNECTIVITY east. Windsor Richmond Sheerness Reading HEATHROW Dartford Chippenham M4 Margate RochesterGuildford is the principalHerne administrative Guildford is set to further establish itself as the Bracknell Staines Kingston upon Thames Swanley Bay Newbury Gillingham premier town in Surrey, having obtained planningMelksham Croydon Chathamand commercial centreWhitstable for Surrey and Sutton M20 Sittingbourne Ramsgate permission for a major town centre regeneration. Faversham Camberley M25 Epsom M25 benefits from excellent transport links. M2 Canterbury Network Rail and Kier Property are instructed Tronowbridge a M26 £150m scheme which will deliver a brand new train M3 Leatherhead Strong road communications with dual carriageway Basingstoke A3 Maidstone Oxted Deal station, radically enhanced station environment, Aldershot access via the A3 to the M25 motorway providing Dorking Redhill M20 a new multi-storey car park and a vibrant station Reigate Tonbridge easy access to Central London and the South East. Warminster Andover Farnham A24 Godalming M23 CHANNEL quarter with new shops and restaurants. The scheme GUILDFORD The M3 lies to the north westTUNNEL of Guildford which joins EM3 LEP ONE Ashford TERMINAL Dover is to be funded through the development of a new GATWICK Tunbridge Wells the M27 outside . Alton SURREY East Grinstead residential quarter in Guildford town centre of 438 M20 Folkestone Hythe new apartments and further commercial space. The A3 Haslemere The town benefits from frequent and direct rail Horsham Crowborough project is anticipated to be completed by 2025 with Salisbury Winchester A31 services into London Waterloo, Gatwick Airport and the first residents moving in in 2022. The new multi- M3 Reading with a fastest journey time of approximately Petersfield Haywards Heath storey car park is due to complete this year. Romsey A272 Uckfield 36 minutes, 39 minutes and 35 minutes respectively. Eastleigh A3 A24 A23 London Heathrow Airport is located approximately A3(M) 23 miles north of the town and London Gatwick is SOUTHAMPTON M27 Ringwood Havant located 30 miles to the south east, providing easy Fareham Bexhill- Chichester Brighton on-Sea access to a wide range of regular domestic and international flights. Bognor Regis

Bournemouth

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Situation TOWN CENTRE GUILDFORD STATION

The property is prominently situated adjacent to the and north west of the City Centre accessed via Cathedral Hill. The landmark site benefits from a high profile position fronting the A3 with its junction to Middleton Road (A25). The A3 provides direct access to the property, whilst the main Guildford railway station is within five minutes’ drive. Guildford Business Park is adjacent to the site and is home to high profile occupiers including Philips, Wargaming.Net, Colgate-Palmolive, DJO Global and Linden Homes.

LEATHERHEAD

Proposed footbridge linking Guildford Business Park and the University of Surrey

READING

A3 NORTH

Building 3000

A3

LONDON WATERLOO

A3 SOUTH

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Guildford – Destined for Growth

UK GAMING INDUSTRY GUILDFORD GAMING INDUSTRY

In 2020, games overtook video to become the UK’s biggest entertainment sector by revenue. At £4.2bn the Guildford has been home to market leading gaming Guildford is home to a number of leading gaming industry is on par with the music and video markets combined in the UK. 2020 was the first time the developers for over two decades and hence, has been organisations, some of which have been located in games industry reported revenues above £4bn, increasing 14.5% from 2019 revenues. dubbed ‘The Hollywood of gaming’. There are around the town since their creation in the 1980/90’s. 70 studios (developers / publishers) in the Guildford In December 2019 the UK gaming market was valued at £5.35bn. borough who have released more than 4,000 games, ranking Guildford consistently in the top 5 Towns by The UK video games industry is the biggest in Europe, and the fifth biggest in the world, behind the gaming Company Count in the UK. juggernauts Japan, South Korea, China and the US. Regional initiatives, such as Guildford Games – A The UK’s Video Games Tax Relief, a rebate against production spend, has been paramount to the industry’s Guildford Games industry initiative delivered by growth. Since the tax relief was introduced in 2014, approximately £3.7bn has been spent making 1,375 video Enterprise M3 LEP and supported by the University of games that made relief claims. Surrey have been set up to promote and support the local gaming development economy. UKIE / ERA UK Consumer Spending on Entertainment 2019/20

£5.00bn

£4.50bn 14.5%

£4.00bn

£3.50bn 25.6%

£3.00bn Digital £2.50bn £3.62bn Physical £3.12bn £2.00bn 6.8% £2.91bn £1.50bn £2.11bn Initiatives, some of which are supported by local £1.00bn £1.14bn £1.28bn government, allow the gaming community to come £0.50bn together, collaborate and foster talent. Such as £0.57bn £0.60bn £0.32bn £0.50bn £0.37bn £0.00bn £0.27bn 2019 2020 2019 2020 2019 2020 • G3 Futures (Partnership between trade body Music Video Games UKIE, the University of Surrey and Charles Russell Speechlys) • Guildford Games • Guildford Games Festival Games development headcount is at an all-time high of 18,279 in the UK, increasing from 16,532 in 2019. • Guildford Games Awards The UK Games market could be worth £10bn by 2023, with the potential to generate 80,000 jobs within the industry, triple what it is now. Since the Covid-19 outbreak, demand for game programmers has increased by 154%, project management by 140% and developers by 91%. There has also been a 25% increase in marketing vacancies compared to 2019 as gaming companies seek to better monetise their products.

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Guildford – Destined for Growth

UNIVERSITY OF SURREY THE SURREY RESEARCH PARK

The University of Surrey is a research-intensive In the academic year 2018/19, the University of Guildford has a vibrant life science and enterprise The Surrey Research Park plays a fundamental role institution and has established itself as one of the Surrey generated: ecosystem that stems from the University, at its core in providing a full ecosystem of support to start and leading technological universities in the UK. The is The Surrey Research Park, a founding member of grow new, innovative businesses thus supporting teaching and research emphasis is focused towards the UK Science Park Association (UKSPA) in 1984. spin-outs from the University. In 2018/19 there were science, engineering, technology, social science and • £1.0BN GVA & 12,230 JOBS 13 active staff start-ups, 47 active graduate start-ups business. The University is organised into a number The Park has been planned, funded and owned by and the University had a financial interest in 15 spin- of academic faculties that include: IN THE BOROUGH OF GUILDFORD The University of Surrey as a University Enterprise out companies. It is estimated that in the 2018/19 unit since its inception. The park is recognised as a academic year, the University of Surrey spin-outs • Faculty of Arts and Social Sciences • £1.2BN GVA & 14,490 JOBS major centre of excellence in technology, science, generated £60.3m GVA and supported 671 jobs in • Faculty of Engineering and Physical Sciences health and engineering for all sizes of business from Guildford and £103m GVA and 1,369 jobs across the start-ups to multinationals. UK. • Faculty of Health and Medical Sciences IN THE COUNTY OF SURREY The latest project to complete on the park is a Health The University is home to the world’s first 5G Tech Accelerator, opening in 2021 at a cost of £3.8m. Innovation Centre (5GIC), leading the way in • £1.8BN GVA & 19,430 JOBS developing revolutionary new technology. Since ACROSS THE UK 44% of companies located on the park work in its inception in 2015 the 5GIC has been the home to professional, scientific and technical services. 5G research and innovation in the UK, membership The quantifiable economic impact of the University has grown to more than 26 leading international of Surrey has grown 6% since the 2016/17 academic companies, such as Vodafone, EE, BT and Samsung, year. and more than 55 UK SMEs. The largest economic contribution made by the University comes from its Innovation and Enterprise Impacts which generated £510.7m GVA and 5,202 jobs in Guildford and £574.1m GVA and 6,375 jobs across the UK in the 2018/19 academic year. Enterprises include Business Incubators, Surrey 100 Club and the Surrey Research Park.

It is one of only two Universities in the UK to be classed as a Top 55 Tech Challenger by The Times.

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Other amenities at Cathedral Square include:

Double Height Reception Communal Work Areas Onsite Café, the Social Hub and Collab Spaces of Cathedral Square

Landscaped Terrace Onsite Parking with Complimentary Shuttle Bus to Direct Building Access Guildford Station and Town Centre

Pulse – At the Heart of The Square

Pulse is a lifestyle and wellness service which offers a range of classes, events and other services to occupiers. Pulse provides initiatives including: Bicycle Storage with Dedicated 20 Electric-Assisted Bikes High Quality Shower Facilities Maintenance Station plus a Drop In Bike Clinic

Sports and Fitness Social Events ‘Lunch and Learn’ Drop-In Sessions Special Express Programme Talks from Well-Known Offers Manicures Retail Brands

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Description

The buildings were originally constructed in 2000 to provide headquarters offices.

BUILDINGS 1000 & 2000 BUILDING 3000

Since ownership in 2015, the property has undergone The building is currently in a stripped out state and a rolling refurbishment programme and has been requires comprehensive refurbishment to deliver repositioned to provide a high quality multi-let Grade A office space. building in an urban business park location. Key features include a double height reception at the All three buildings benefit from basement car parking centre of the two buildings along with central that is accessible via the central cores, as well as atria and business lounge. Buildings 1000 & 2000 surface car parking to the front of the buildings. The are interlinked via offices at second floor and a estate provides 659 spaces in total, which equates to footbridge at first floor suspended over the expansive an excellent car parking ratio of 1:250 sq ft. reception.

Computer Generated Image

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Specification

BUILDINGS 1000 & 2000 BUILDING 3000 (PROPOSED)

BREEAM Very Good BREEAM Very Good

2.75m floor to ceiling height 2.75m floor to ceiling height

150mm raised floor 150mm raised floor

Metal tile suspended ceilings Metal tile suspended ceilings

New VR HCU fresh air supply 4-pipe fan coil units ventilation and heating

High efficiency LED lighting High efficiency LED lighting Computer Generated Image

4 x 13 person passenger lifts 2 x 13 person passenger lifts

Dedicated male and female Dedicated male and female changing rooms & shower facilities changing rooms & shower facilities

52 lockers and dedicated 24 lockers and dedicated drying room drying room Computer Generated Image

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Accommodation

The property has been measured by Plowman and Craven in Accordance with both the Code of Measurement Practice 6th Edition and the International Property Measurement Standards (IPMS).

Code of Measurement Practice 6th Edition (Net Internal Area)

Floor Building 1000 Building 2000 Sq M Sq Ft Sq M Sq Ft Second 1,513 16,287 1,539 16,564

First 1,500 16,146 1,786 19,228 Computer Generated Image Ground 1,855 19,965 2,082 22,414 Sub Total 4,868 52,398 5,407 58,206 Second (Link Offices) 320 sq m 3,444 sq ft Café 97 sq m 1,044 sq ft Reception 288 sq m 3,102 sq ft Grand Total 10,980 sq m 118,194 sq ft

Floor Building 3000 Sq M Sq Ft Second 1,385 14,908 First 1,407 15,145 Ground (Office) 1,301 14,004 Ground (Atrium & Reception) 261 2,810 Grand Total 1,301 46,867

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Floor Plans

AAILABLE AAILABLE

ATRIUM LIFT / LOBBY SECOND FLOOR

2000 1000 3000

AAILABLE

LINK ATRIUM LIFT / LOBBY FIRST FLOOR

AAILABLE

2000 1000 3000

Indicative floor area split.

SPACE 2 SPACE 1 CAFÉ AAILABLE

ATRIUM RECEPTION MAIN ENTRANCE RECEPTION GROUND FLOOR

MAIN ENTRANCE SPACE 3 SPACE 4 2000 1000 3000

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Tenancies

Area (Sq ft) Passing Passing WAULT to WAULT to Building Floor Tenant Lease Start Lease Break Rent Review Lease End Comments NIA Rent (pa) Rent (psf) breaks (years) expiries (years) Part 2nd Tilney Group 2,881 £94,545 £32.82 06/02/2019 06/02/2024 06/02/2024 05/02/2029 2.80 7.80 11 car parking spaces. 6 months notice on break option. 30 car parking spaces held on Part 2nd Infovista Limited 5,824 £194,836 £33.45 21/01/2019 21/01/2024 21/01/2024 20/01/2029 2.76 7.76 short term licences (£7,500 pa). Landlord fitted space, base rent of £34.00 psf with a fit-out rent Knight Frank of £3.27 psf payable to break. Open market rent review in relation Part 2nd 1,432 £53,368 £37.27 08/11/2019 08/11/2024 08/11/2024 07/11/2029 3.56 8.56 Finance to £34.00 psf in Year 5. 10 car parking spaces held on short term licences (£5,000 pa). Vacant - Rental 24 month rent, 12 month rates & s/c guarantee. Can be split once Part 2nd 3,017 £102,578 £34.00 2.00 2.00 Guarantee more to provide c.1,500 sq ft suites. Rent increases from £84,925 to £112,101 on 30/09/2021. Vendor to Part 2nd Royalton 3,410 £112,101 £32.87 06/01/2020 06/01/2023 29/09/2021 05/01/2025 1.72 3.72 top rent up to £112,101. 10 car parking spaces. Building 29 months rent free from lease completion. Vendor to top up 2000 1st Gateley PLC 19,228 £615,296 £32.00 08/11/2019 08/11/2024 07/11/2029 8.56 8.56 outstanding rent free to 08/04/2022 rent commencement date. 81 car parking spaces. AFL exchanged Dec 2020 - lease to complete on PC of separation works with back dated lease start of 02/01/2021, rent Part Ground (south) Lanes Group Plc 9,139 £310,726 £34.00 02/01/2021 01/01/2026 02/01/2026 01/01/2031 4.70 9.71 commencement date 02/01/2022. Initial rent of £25.00 psf rising to £34.00 psf in years 3&4 and then £35.00 psf in year 5. Vendor to top-up rent to £34.00 psf. Vacant - Rental Part Ground (north) 8,923 £303,382 £34.00 2.00 2.00 24 month rent, 12 month rates & s/c guarantee. Guarantee Potential for tenant to incorporate into demise of north suite or Ground - Atrium Vacant 3,158 alternatively can be used as an additional common area for the building. Sub Total 57,012 £1,786,832 22/11/2021 break not activated - 3 month rent free incentive (topped up). Reversionary lease agreed from 21/11/2023 for a 2nd Kier Construction 3,444 £118,818 £34.50 22/11/2018 21/11/2023 2.59 2.59 Link term of 3 years at £36.00 psf, 4 months rent free. 21 car parking spaces. Sub Total 3,444 £118,818 Reversionary lease in negotiations on 8,000 sf at £31.00 psf, 2nd RBS PLC 16,287 £513,577 £31.53 25/08/2016 24/08/2021 0.35 0.35 6 month rent free. Service charge cap currently at £7.75 psf (increases annually with RPI). 80 car parking spaces. Part 1st Rosan Helmsley Ltd 2,462 £80,000 £32.49 01/09/2018 01/09/2023 01/09/2023 31/08/2028 2.37 7.37 9 months notice on break option. 8 car parking spaces. Vacant - Rental 24 month rent, 12 month rates & s/c guarantee. Terms agreed on Building Part 1st 5,006 £172,707 £34.50 2.00 2.00 1000 Guarantee new 10 year lease, break at year 5. £34.50 psf, 10 months rent free. Service charge cap currently at £7.75 psf (increases annually with Ground & Part 1st Avaya UK 28,643 £903,011 £31.53 17/04/2017 17/04/2022 16/04/2027 5.99 5.99 RPI). 118 car parking spaces. Reception & Café Common Parts 4,146 Sub Total 56,544 £1,669,295 Car Parking Licences £12,500 Licences to Infovista and Knight Frank Finance. TOTAL INCOME 1000&2000 109,696 £3,587,445 £32.59 WAULT 4.24 5.33 BUILDING TOTAL 1000&2000 117,000 Building Sub Total 46,867 3000 COMBINED TOTAL 163,867

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Covenant Information NATWEST GROUP PLC (14.4% OF INCOME) Natwest Group plc (formerly The Royal Bank of Scotland plc) is one of the UK’s largest clearing banks by value with a market cap of £21.9 billion (April 2021). The group is majority owned by the UK Government and provides a full range The following 5 tenants make up 70% of the contracted income and all pose a minimum to low risk of business failure. of banking and insuring services to personal, business and commercial customers.

Coutts, a Natwest brand, has a world renowned reputation for providing a personal approach to private banking and AVAYA UK LIMITED (25% OF INCOME) wealth management. The Guildford branch was first established in 1998.

Avaya is a leading global provider of next-generation business collaboration and communications solutions, providing Natwest Group PLC have a Dun & Bradstreet rating of 5A 1. unified communications, real-time video collaboration, contact centre, networking and related services to over 100,000 companies in 190 countries. Date 31st Dec 2019 31st Dec 2018 31st Dec 2017 (in Thousands) (in Thousands) (in Thousands) Avaya employs over 7,900 people around the world with offices in 151 countries. Avaya’s global headquarters are located in Durham, North Carolina. Avaya UK is headquarted at Cathedral Square, its other UK locations are London Tangible Net Worth £36,925,000 £49,655,000 £41,787,000 and Glasgow. Sales / Turnover £15,666,000 £15,774,000 £16,070,000 Profit / (Loss) Before Taxes £4,232,000 £3,359,000 £2,239,000 Avaya UK Ltd have a Dun & Bradstreet rating of 5A 1.

Date 30th Sep 2019 30th Sep 2018 31st Mar 2017 LANES GROUP PLC (8.7% OF INCOME) (in Single Units) (in Single Units) (in Single Units) Tangible Net Worth £47,928,944 £43,109,433 £39,492,406 Lanes, a British civil engineering group formed in Leeds in 1992, is the leading wastewater utility solutions provider Sales / Turnover £103,902,569 £168,053,054 £170,590,598 and largest independent drainage specialist in the UK, employing 2,200 people in the UK and Ireland. Lanes Group Profit / (Loss) Before Taxes £5,713,674 £3,344,354 £122,947,326 operate five businesses that offer drainage services to all markets and sectors, including but not limited to; domestic, rail, highways, nuclear and manufacturing.

Since 2014, Lanes Group has been the sole Wastewater Network Service partner for Thames Water plc, winning a GATELEY PLC (17% OF INCOME) £750m contract that services 15 million customers. Lanes Group also has contracts with the London Underground, where they have completed work for the Crossrail project. Gateley plc is a leading legal and professional services group headquartered in Birmingham, where it was founded in the 19th Century. Since then, it has grown to a company that employs 1,000 people across nine businesses in the UK Lanes Group PLC have a Dun & Bradstreet rating of 4A 2. and Dubai. In 2015 they took the opportunity to become one of the first UK law firms to adopt an Alternative Business Structure (ABS) and listed on the London Stock Exchange’s growth market, AIM. Date 31st Jul 2019 31st Jul 2018 31st Jul 2017

(in Single Units) (in Single Units) (in Single Units) Over the last 30 years Gateley have grown consistently with an unbroken record of increased profit delivery year on year. Gateley have a market cap of £208 million (April 2021). Tangible Net Worth £33,416,596 £29,305,446 £22,974 Sales / Turnover £210,407,534 £201,952,622 £197,938 Gateley PLC have a Dun & Bradstreet rating of 4A 1. Profit / (Loss) Before Taxes £5,939,078 £8,107,462 £5,341

Date 30th Mar 2020 30th Mar 2019 30th Mar 2018 (in Thousands) (in Thousands) (in Thousands) INFOVISTA LTD (5.4% OF INCOME) Tangible Net Worth £22,283 £13,357 £10,374 Sales / Turnover £98,150 £95,900 £81,508 Infovista are network performance and application control experts. Among other services, Infovista have been Profit / (Loss) Before Taxes £13,949 £14,291 £13,729 actively planning and testing 5G networks around the world since 2018. They work with the largest mobile operators and network vendors worldwide, allowing them to achieve unprecedented excellence in their 5G rollout. Infovista’s 5G deployments extends to over 300 customers in 73 countries with over 4500 users.

Infovista Ltd have a Dun & Bradstreet rating of 2A 1.

Date 30th Jun 2019 30th Jun 2018 30th Jun 2017 (in Single Units) (in Single Units) (in Single Units) Tangible Net Worth £2,986,556 £2,364,404 £2,822,364 Sales / Turnover £16,400,795 £12,696,702 n/a* Profit / (Loss) Before Taxes £520,498 £471,837 n/a*

*Accounts for a small company, sales / turnover and profit / (loss) before taxes not publicly available.

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Occupational Market Investment Market

South East take-up in the final quarter of 2020 was 551,300 sq ft. This total represents a 25% increase when In 2020 investment volumes transacted in the South East office market totalled £1.8bn, 25% below the 10 year compared to Q3 and was the highest quarterly total of 2020. As at Q1 2021, the Knight Frank National Offices team average as investors paused for breath in Q2. However, as restrictions were lifted in the third quarter, and green are tracking 4.5M sq ft of Named Demand which is up from a low of 3.5M sq ft at the height of the pandemic in 2020. shoots were seen in the occupational markets, clear trends started to appear when it came to investor rationale towards offices. Guildford is a key office location in the SW Quadrant of Games) acquired space at Guildford Business Park, the M25. It’s a premium office location and one of few K2 acquired at 255 High Street with both at record There has been a shift to the best quality stock Thus far in 2021, this trend has continued, with £482m which registered rental growth during the pandemic rents for the town demonstrating the obvious “flight to in locations with good transport links, allowing transacted in the first quarter. Activity continues to with a new headline rent of £36.50 psf achieved at quality” where occupiers are prepared to pay healthy occupiers flexibility in their working patterns. Those focus on core markets with good quality buildings that 255 High Street, an increase from previous levels of headline rents for the space which will most benefit buildings that are located in markets with strong can be flexible to changing occupational demands £36.00 psf. their staff recruitment and retention. It’s also worth occupational fundamentals, with an established and adapt to provide offices of the future. Cathedral noting that virtually all take-up in Guildford over the skilled labour force and benefit from excellent Square is poised to benefit from such trends due to its There is just over 200,000 sq ft of availability in the past 5 years has been of Grade A space. connectivity have proven resilient to the negative build quality, connectivity and location at the centre town (2.7 years worth of take-up based on the 5 onsets of Covid-19. of one of the South East’s leading tech markets with a year average) with a limited development pipeline. Further afield, the SW Quadrant proved resilient in leading research institute at its core. Cathedral Square is one of the key schemes in terms of new lettings during the pandemic including Guildford that has secured transactions during the below key transactions from a variety of business the pandemic, this is testament to the quality of sectors. Term Capital specification and amenity provision at the building Date Address Tenant Purchaser Certain Price NIY Value which is becoming ever more important to occupiers. Knight Frank National Offices Agency team are (Years) (psf) tracking just under 1M sq ft of requirements in the Mar-21 The Pearce Building, Multi-let Confidential 3.10 £29,850,000 6.00% £572 Despite the pandemic, Guildford recorded over M3 / SWM25 markets seeking space over the next 12 (under offer) Maidenhead 40,000 sq ft of lettings in 2020 (against the 5 year months, to include: Apr-20 average of c.74,000 sq ft). Notably, War Gaming (DPS Ealing Cross, Ealing Multi-let Oval 3.8 £70,250,000 5.97% £533 (Exchanged) Unit 214-240, Cambridge Brockton Feb-21 Multi-let 6.50 £98,770,000 4.21% £617 Science Park Everlast Inc. Dec-20 The Point, Maidenhead Multi-let Corum 5.00 £38,850,000 6.25% £496 Dec-20 Radius House, Watford Multi-let CLS Holdings 6.85 £17,130,000 5.70% £416 Completion Lease Term Rent per Building Name Tenant Size (sq ft) Breaks Date (years) sq ft Florey & John Eccles House, Dec-20 Multi-let Clearbell 4.50 £16,700,000 6.09% £375 Oxford Science Park Mar-21 255 High Street, Guildford Investec 8,250 10.00 £35.50 Mar-28 Spires House, Oxford Dec-20 Multi-let Arlington / TPG 4.60 £17,150,000 6.06% £347 Buildings 1000 & 2000, Business Park Jan-21 Lanes Group Plc 9,139 10.00 £34.00 Jan-25 Cathedral Square The Birchwood Building, Epping Forest Dec-20 Multi-let 7.00 £13,760,000 6.45% £395 Nov-20 255 High Street, Guildford K2 7,464 10.00 £36.50* - Leatherhead District Council

One Springfield Drive, Oct-20 Onslow House, Guildford Multi-let Corum 3.00 £38,500,000 6.85% £407 Oct-20 RINA S.p.A 19,154 25.00 £27.00 Apr-23/28 Leatherhead Bourne Business Park, ARA / Straits Sep-20 Multi-let 6.10 £76,700,000 6.75% £416 Weybridge Real Estate Building 2, Guildford War Gaming UK Sep-20 9,310 9.08 £36.00 Oct-24 Business Park (DPS Games)

Ascent 1, Farnborough Jul-20 Philips 37,000 10.00 £29.00 Dec-25 Aerospace Centre

Building 2, Guildford War Gaming UK Apr-20 13,800 9.42 £36.00 Oct-24 Business Park (DPS Games)

Feb-20 Brook House, Woking Asahi 36,000 10.00 £36.00 Aug-2027

*Set a new record Prime Grade A rent for Guildford

34 35 Buildings 1000 & 2000 and Building 3000 CATHEDRAL SQUARE | GUILDFORD | GU2 7YL

Driving Performance

RESILIENT MARKET DYNAMICS

Guildford has historically been a market with tight supply, this dynamic has lent itself to the success of the town through the Covid-19 pandemic as shown by the record headline rent achieved at 255 High Street in the town centre and the letting to Lanes Group Plc at Buildings 1000 & 2000 Cathedral Square. Cathedral Square is in an ideal position to capitalise on Guildford’s ongoing tight supply coupled with an expected increase in demand for space as Technology companies, in particular gaming developers, look to increase their headcount to meet the surge in demand for their products online.

TARGETING FUTURE DEMAND

Building 1000 & 2000 pose an opportunity to increase the WAULT through targeted re-gears and letting of the vacant accommodation. Building 3000 has the potential to target a deeper pool of occupiers, for example the burgeoning Life Science sector in the UK which has been fuelled by record level of venture capital investment over the past 12 months. Demand for space has been driven by companies in this sphere wanting to cluster around AN ESTABLISHED URBAN BUSINESS PARK LOCATION established research institutes such as The University of Surrey which provide a wealth of knowledge and Cathedral Square is positioned as an edge of town, The location will further benefit from the addition of guidance to new ventures. In the academic year 2018- urban business park benefiting from an excellent the proposed link bridge between the University of 19 The University, through initiatives such as the S100 car parking ratio and access to the road network Surrey and Guildford Business Park. The potential Club reported: but is also within walking & cycling distance to the impact of the foot bridge is: 13 active staff start-ups town centre and train station. This is unique in the South East office market and we are seeing occupiers a faster more pleasant route to the train station and 47 active graduate start-ups increasingly attracted to these types of environment. town centre share ownership in 15 spin-out companies create a physical link between the University There is further opportunity to enhance the of Surrey and the Guildford business / science Building 3000 is positioned to deliver flexible, environment and amenity offering at Cathedral Square community collaborative space in an amenity rich environment with the addition of either a fitness suite, business hub a close alignment between the University of Surrey within a well-established ecosystem in the South or further breakout space in the ground floor atrium of and the growth in Life Sciences and Technology East. Building 2000.

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Debt Further Information Cathedral Square provides an exciting opportunity for lenders to finance the acquisition of the estate and 55% subsequent opportunity to provide an additional capex LOAN TO VALUE CAPITAL ALLOWANCES DATA ROOM facility to fund the redevelopment works of Building Total equity requirement £24,717,000 (1) 3000. (£) Further information is available on request. A data room has been set up with relevant Loan amount (£) £28,710,000 documentation; access is available on request. INDICATIVE TERMS Margin 3.50% All in rate (2) 3.70% VAT In looking at Buildings 1000 & 2000 in isolation, Knight Term 3 year VIDEO Frank Debt Advisory would be confident in achieving Repayment Interest only We understand that the property will be treated as a Transfer of Going Concern for VAT purposes. Available on request. the indicative finance terms outlined here: Arrangement fee 1.00% Opening Cash on Cash 10.22% return EPC (1) Assuming a purchase price of £52,200,000. Includes 1.8% SPV purchaser costs and 1% lender arrangement fee Available on request. (2) Assuming 3Yr SONIA swap rate as at 19/04/2021

Service Charge COMBINED PROPOSAL CONTACTS Offers for the combined are invited in excess of For further information or to arrange an inspection The service charge budget for the year ending 31 December 2021 is £994,150 which equates to £9.05 per sq ft. £61,570,000 (Sixty One Million Five Hundred and please contact the following: Seventy Thousand Pounds) subject to contract and exclusive of VAT, for 100% of the shares in the Freddie Owen Luxembourg LLC (SARL) that owns the freehold T: 020 7861 1225 interest in the property. This reflects aNet Initial M: 07436 109 666 E: [email protected] Tenure Yield of 5.72% and a low capital value of £373 per sq ft, assuming purchasers costs of 1.80%. The property is held freehold and the site totals 7.23 acres. Simon Rickards Title plan not to scale, for identification purposes only. T: 020 7861 1158 Subject to Contract and Exclusive of VAT. M: 07787 844 384 E: [email protected]

Huw Gordon T: 020 7861 1245 M: 07412 669 494 E: [email protected]

IMPORTANT NOTICE (1) Particulars: These particulars are not an offer or contract, nor part of one. You should not rely on statements by Knight Frank LLP in the particulars or by word of mouth or in writing (“information”) as being factually accurate about the property, its condition or its value. Knight Frank LLP has no authority to make any representations about the property, and accordingly any information given is entirely without responsibility on the part of the agents, seller(s) or lessor(s). (2) Photos etc: The photographs show only certain parts of the property as they appeared at the time they were taken. Areas, measurements and distances given are approximate only. (3) Regulations etc: Any reference to alterations to, or use of, any part of the property does not mean that any necessary planning, building regulations or other consent has been obtained. A buyer or lessee must find out by inspection or in other ways that these matters have been properly dealt with and that all information is correct. (4) VAT: The VAT position relating to the property may change without notice. Knight Frank LLP is a limited liability partnership registered in with registered number OC305934. Knight Frank LLP registered office is 55 Baker Street, London, W1U 8AN, where you may look at a list of members’ names. April 2021. Designed and produced by Creativeworld. T 01282 858200.

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