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HIGH STREET RH10 1DL

UNIQUE TOWN CENTRE OPPORTUNITY HIGH STREET • CRAWLEY RH10 1DL

9

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10 7 3 4

6 10 minute walk to 2 Crawley Station

Crawley High Street 1

5 1 Crawley Train Station 6 Morrison’s

2 County Mall 7 Crawley Retail & Leisure Park

3 The Boulevard 8

4 The Pavillion 9

5 ASDA 10 Train Station

UNIQUE TOWN CENTRE OPPORTUNITY 2 HIGH STREET • CRAWLEY RH10 1DL

PROPOSAL Offers are invited in excess of INVESTMENT SUMMARY £5,250,000 (Five Million Two • Town Centre South East office building extending to2,159 sq m (23,241 sq ft) NIA Hundred and Fifty Thousand • Freehold Pounds) for the freehold interest, • Low site cover of 30% over a large 0.26 hectare (0.65 acre) site subject to contract and exclusive of • Let in its entirety on an FRI lease to Deloitte LLP, expiring on 2nd January 2020 VAT. A purchase at this price reflects • Contracted out of The Landlord and Tenant Act 1954 a net initial yield of 9.64%, allowing • Presents an exciting opportunity to undertake numerous asset management initiatives including a re-gear with the current tenant, an office refurbishment and re-let, conversion to residential or a full scale for purchaser’s costs of 6.61%. redevelopment (STPP) • Current passing rent of £539,600 per annum, equating to a low overall rent of £23.50 per sq ft • Significant growth potential with prime rents in the town centre forecast to reach£29.00 per sq ft in 2021

UNIQUE TOWN CENTRE OPPORTUNITY 3 HIGH STREET • CRAWLEY RH10 1DL

M4 READING M25 HEATHROW M4 M3 LOCATION A322 A33 M26 Crawley is an affluent town in West and an established South East office location, situated 30 miles south of M3 A322 A3 M25 Central London and 23 miles north of . Crawley M1 A21 M23 is considered to be one of the largest commercial centres

NATIONAL TRUST WINKWORTH A24 between London and the South Coast, with an office stock ARBORETUM ROYAL A31 A3 GATWICK TUNBRIDGE of circa 4.8m sq ft, and major corporate occupiers including DUNSFOLD WELLS AERODROME PwC, Boeing (Jeppersen/Alteon), Virgin Holidays, Irwin A264 CRAWLEY A22 A26 Mitchell, Chubb and KPMG. A272 A3 The town has a population of around 107,000 (2011

A24 A23 A22 Census) and has benefitted from considerable residential NATIONAL PARK NORTHAMPTON development over recent years. The local authority is in the CAMBRIDGE BEDFORD A27 A27 process of significantly improving the public realm, with BRIGHTON recent completions around Queens Square and the adjacent MILTON memorial gardens. Further infrastructure improvements KEYNES are planned, with the redevelopment of the Town Hall and A1(M) M11 Crawley train station. M40 STANSTED 3 Crawley benefits from excellent transport connections, being 2 AWLEY AVE A CR

1 located approximately three miles from Junctions 10 & 11 A201 IF IE L D of the M23, which provides easy links to Central London A 3 V A2 E M25 and Junction 7 of the M25 to the north. In addition, Crawley E LONDON AV Y D E D R L W R benefits from a regular, direct railway service linking the town M4 RA D C N L BA E O R I HEATHROW N F D F to London Victoria, London Blackfriars and Gatwick Airport. IE D E N LD O 4 0 V O A RD O L 0 M2 Y W LE 2 W A A IFIELD R A M3 V C E

Crawley is in the of the ‘’, which M23

3 E GATWICK 2 K V M20 A IL A stretches from London to Brighton and is an internationally N E M T E A A D D G H recognised, high performance regional business district. It is R GLOBAL T R N HOUSE O O N home to over 500 international businesses, with approximately D Y CRAWLEY A N

W O THE BOU 350,000 employees and is home to a number of international L LEVARD

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4 G company head quarters including Canon, Nestle and Virgin BRIGHTON 0 E

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2 A Atlantic. reason for this is Gatwick Airport being

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R HASLETTE AVE D A R located approximately five miles to the north of Crawley town W

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Y H S centre. The airport is the UK’s second busiest airport, servicing S

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UNIQUE TOWN CENTRE OPPORTUNITY 4 HIGH STREET • CRAWLEY RH10 1DL

Road Connectivity (from Global House, Crawley)

Destination Distance M23 (Junction 10) 2.5 miles M23 (Junction 11) 3.5 miles M25 (Junction 7) 11.7 miles Gatwick Airport 5 miles Brighton 23 miles London 31 miles

Rail Connectivity (from )

Destination Time Gatwick Airport 9 minutes London Victoria 41 minutes London Blackfriars 57 minutes Central 1 hour 44 minutes Crawley railway station is a four minute drive or a ten minute walk from the property. Rail Connectivity (from Three Bridges railway station)

Destination Time Gatwick Airport 4 minutes SITUATION London Victoria 36 minutes Global House is prominently located at the northern end of Crawley town centre. The extensive London Blackfriars 41 minutes retail offer in the town centre is concentrated in two main locations, the pedestrianised Queens Square and the County Mall, a modern, covered shopping centre. Both are located 650 metres Portsmouth Harbour 1 hour 21 minutes to the south. Three Bridges railway station is a five minute drive or a twenty-five minute walk from the property. The property is situated at the northern end of the High Street at its Junction with the A2219 London Road and Kilnmead Road.

Air Links (from Global House, Crawley) It is situated adjacent to a number of office buildings such as Origin One and Griffin House, additionally it overlooks Crawley Retail and Leisure Park with Nuffield Health Gym, Cineworld Destination Distance and restaurants including Bella Italia, Nando’s, Pizza Hut and TGI Fridays. Gatwick Airport 5 miles There are around 4,000 parking spaces in Crawley town centre, including four multi-storey Brighton City Airport 27 miles public car parks. 37 miles There is a regular local bus service, operated by Metrobus, which links Crawley‘s surrounding Farnborough Airport 47 miles wards, in addition to providing direct bus routes to , Tunbridge Wells and Brighton. They also operate a self steering bus system called FastWay which connects Crawley, Gatwick and London City Airport 52 miles areas.

UNIQUE TOWN CENTRE OPPORTUNITY 5 HIGH STREET • CRAWLEY RH10 1DL

DESCRIPTION Global House comprises a modern self-contained office building developed in 2000, totalling approximately 2,159 sq m (23,241 sq ft) of largely open plan office accommodation, arranged over ground and three upper floors.

Internally the office accommodation is arranged in an L-shape configuration and benefits from the following specification:

• Glazed entrance canopy and manned reception • Four pipe fan coil air-conditioning • Suspended ceiling and LG5 lighting • Fully accessible raised floors • Two passenger lifts serving all floors • Male and female WC‘s on each floor

The building benefits from 65 car parking spaces, providing an excellent town centre ratio of 1:359 sq ft. Photo was taken out of office hours as per tenant request

UNIQUE TOWN CENTRE OPPORTUNITY 6 HIGH STREET • CRAWLEY RH10 1DL

ACCOMMODATION The property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) and comprises the following Net Internal Areas:

Area (Sq M) Area (Sq Ft) Reception 53.14 572 Ground 323.21 3,479 First 586.77 6,316 Second 616.60 6,637 Third 579.44 6,237 Total 2,159.16 23,241

SITE The property benefits from a low site cover of approximately 30% of a 0.26 hectare (0.65 acre) site.

TENURE The property is held freehold.

TENANCY The property is let in its entirety on an FRI lease to Deloitte LLP from 2nd January 2001, expiring on 2nd January 2020, providing approximately six months unexpired. The lease is contracted outside of sections 24-28 of The Landlord and Tenant Act 1954. The current rental income is £539,600 per annum, equating to £23.50 per sq ft assuming a half rate on the reception area. Photo was taken out of office hours as per tenant request

UNIQUE TOWN CENTRE OPPORTUNITY 7 HIGH STREET • CRAWLEY RH10 1DL

COVENANT DEVELOPMENT OPTIONS Deloitte LLP (Company Number: OC 303675) is one of the ‘Big Four’ professional services firms. The short unexpired lease term, which is outside of the security of tenure provisions of The Landlord and Tenant Act 1954, presents an exciting opportunity to undertake numerous asset The company provides audit, tax, consulting, enterprise risk and financial advisory services with management initiatives including a re-gear with the current tenant, an office refurbishment and more than 200,000 professionals in over 150 countries. Further information can be found at re-let, conversion to residential or a full scale redevelopment (STPP). www.deloitte.com. The Crawley town centre office market has traditionally benefitted from stable demand. The current lack of Grade A stock in the town centre provides an opportunity to reposition and refurbish this Deloitte LLP Year Ending Year Ending Year Ending asset in order to achieve a rental premium. (OC303675) 31/05/2018 31/05/2017 31/05/2016 Planning permission has already been secured to infill the undercroft parking to increase the office Turnover £2,201,000,000 £3,503,000,000 £3,140,000,000 space without significant redevelopment (ref. CR/2016/0954/FUL). Moreover, additional space could be achieved with floors added on the existing building and an extension into the car park (STPP).

Pre Tax Profits £612,000,000 £416,000,000 £571,000,000 The site does not lie within the Crawley Borough Council Article 4 Zone which means the property is applicable for conversion to residential via Permitted Development Rights or could lend itself to Tangible Net Worth (£1,141,000,000) (£1,192,000,000) (£1,002,000,000) demolition and redevelopment for a new residential scheme, exploiting greater density gains (STPP).

UNIQUE TOWN CENTRE OPPORTUNITY 8 Global house Feasibility study OptionGlobal 2 house Feasibility study ProposedOverview Floor Plans & Accomodation schedule proposed options

HIGH STREET • CRAWLEY RH10 1DL

Global House Feasibility study Option 2 - Planning application for a new Option 1 - Permitted development First Floor Plan Second Floor Plan - high density 4th storey Overview - FEASIBILITY STUDY New inset 4th Storey The Vendor has commissioned a feasibility study from LOM to look into the prospects Option 1 – Permitted development - high density subject to planning for a residential conversion. This includes a high density scheme of 41 units under Area schedule permission Permitted Development Rights (option 1), as well as the potential to undertake a 4th storey extension which could provide up to a further 7 units - subject to gaining the necessary consents. Global house Feasibility study Full details available on request. Overview Option 1 OptionOption 2 proposed2 – Indicative schedule of optionsaccommodation (STPP)

*All areas calculated in the schedule include internal partitions but exclude structural elements, external walls and partitions between apartments Third Floor Plan Fourth Floor Plan Option 1 - Permitted development Option 2 - Planning application for a new LOM architecture and design | Presentation Proposed Third Floor0 Plan4 10 20 40 6 - high density 4th storeyOption 2 – Planning application for a new 4th Storey Metres New inset 4th Storey subjectNew inset to 4th planning Srorey subject to planning permission permission

LOM architecture and design | Presentation 2

UNIQUE TOWN CENTRE OPPORTUNITY 9

LOM architecture and design | Global House feasibility study 7

LOM architecture and design | Presentation 2 HIGH STREET • CRAWLEY RH10 1DL

OCCUPATIONAL MARKET The Crawley office market is principally divided into the town centre, traditionally home to a Crawley has a total office stock of approximately 4.8 million sq ft. Take up has been strong and number of professional services businesses; Manor Royal, which has attracted larger employers stable over recent years with 313,000 sq ft let or sold over 2017 and 2018. and airport related businesses; and a third category, generally known as the out-of-town market, largely centred around junction 11 of the M23 at and Three Bridges. Headline rents in the area have hit an all-time record level of £27.00 per sq ft at 3 City Place, Gatwick. This illustrates that the best quality products in the market can still generate improving Whilst the town’s proximity to Gatwick Airport has naturally made it a base for airport related rents. In comparison to the remainder of the South East Office Market, this rental level still occupiers, it is the area’s connectivity via road and rail links to the rest of the South East and represents extremely good value given the proximity to London Gatwick Airport and road and London, combined with comparatively lower rents, which has proved attractive to occupiers. rail connectivity.

Headline Rent Date Property Location Tenant Area (sq ft) (per sq ft)

Apr-19 Origin One GF, 108 High Street, Crawley Town Centre SHW 2,758 £26.00

Dec-18 Explorer 1, Fleming Way, Crawley Out of Town Trade Skills 4U Limited 4,606 £26.00

Dec-18 Origin One, 108 High Street, Crawley Town Centre DMH Stallard 8,006 £25.00

Nov-18 4 Gatwick Road, Nexus, Crawley Out of Town Torrent Pharma 5,200 £27.00

Sep-18 The Manhattan Building, Crawley Out of Town B&CE 19,000 £24.00 (IPMS 3)

Jul-18 CC3, Churchill Court, Crawley Out of Town Regus 27,908 £25.50

Aug-18 Explorer 1, Fleming Way, Crawley Out of Town AAR International 5,005 £26.50

Dec-17 3 City Place, Crawley Out of Town Keysource 7,228 £27.00

Photo was taken out of office hours as per tenant request

UNIQUE TOWN CENTRE OPPORTUNITY 10 HIGH STREET • CRAWLEY RH10 1DL

INVESTMENT MARKET Key Investment Comparables South East offices was among the most actively traded property sectors in 2018, with total volume of £4.1bn, 24% above its annual average. The sector has proven to be a magnet for Date Address Town Tenant Tenure Size (sq ft) WAULT Price NIY both domestic and international capital alike. If anything, the depth of demand is such that arguably the main challenge is finding suitable stock. Portland Building, May- 19 25 High Street Crawley Multi (3) Freehold 41,690 3.6 £12.00m 7.35% The prime end of the South East market still continues to offer value relative to other sectors, Secretary of such as Central London offices and South East industrials. Arguably, as a result of this, South Mar-19 Gresham House Crawley State Freehold 16,404 8 £4.60m 6.25% East offices were the only key segment of the property market to witness a hardening of prime yields in Q1 2019. This was confirmed by the recent purchase of the Brinell Building, Brighton, Mar-19 Brinell Building Brighton Multi (3) Freehold 65,253 10 £39.00m 4.75% which indicated that prime yields hardened by 25bps to 4.75%, the first inward movement in over four years. Mar-19 Victory House Brighton Multi (2) Freehold 87,652 7.7 £36.50m 4.83%

There has been a strong demand in the South East for town centre redevelopment opportunities Osborne as investors are attracted to the growth in Grade A town centre rents in addition to Permitted Mar-19 Fonteyn House Construction Freehold 17,615 9.5 £8.50m 5.68% Development opportunities. Rents have been partially driven by companies looking for leading offices but want relative affordability through being outside of Central London. There remains a Nov-18 Churchill Court Crawley Regus Freehold 27,908 10 £11.25m 5.68% lack of newly built offices in town centre locations, therefore existing stock is being upgraded to feed the Grade A demand.

Key Short let/ VP Comparables

CRAWLEY RESIDENTIAL MARKET Cap Val Date Address Town Tenant Tenure Size (sq ft) WAULT Price (£psf) Development land in Crawley is constrained by the airport in the north of the borough. The town’s recent history as a twentieth century new town means the area was comprehensively Under offer Opus One VP Freehold 23,342 0 £5.00m+ – planned and built out on a neighbourhood basis.

The Crawley Local Plan makes provision for the delivery of a minimum of 5,100 net additional Exchanged Quadrant House Redhill VP Freehold 29,500 0 £6.25m £212 dwellings in the borough between 2015 and 2030. Mar-19 Cooper House Kingston VP Freehold 12,588 0 £4.00m £318 On a Micro level, the average price for property in Crawley stood at £329,735 in May 2019 (Zoopla) with 1,460 sales in the last 12 months of which 314 were flats. This is a rise of 0.21% Jan-19 Phoenix House Brighton Multi (10) Freehold 21,381 1.7 £6.78m £317 in the last three months and a rise of 1.17% since 12 months ago. In terms of property types, flats in Crawley sold for an average of £220,560 and terraced houses for £292,270. Sept-18 Cleave Road Leatherhead VP Freehold 20,588 0 £5.55m £267 In similar town centre locations, flats have been guided at circa £350 psf. Furthermore, rents Secretary Sep-18 Forum House Staines Freehold 17,398 1.9 £5.50m £316 have been achieving £818 per calendar month for one beds and £1,018 pcm for two beds. of State

Energy & Pacific EDF Energy May-18 Crawley & UK Power Freehold 39,638 1.9 £8.60m £217 House Networks

UNIQUE TOWN CENTRE OPPORTUNITY 11 HIGH STREET • CRAWLEY RH10 1DL

EPC The property has a rating of E(119). Certificate available upon request.

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

PROPOSAL Offers are invited in excess of £5,250,000 (Five Million Two Hundred and Fifty Thousand Pounds) for the freehold interest, subject to contract and exclusive of VAT. A purchase at this price reflects FURTHER INFORMATION a net initial yield of 9.64%, allowing For further information including arrangement for inspection, please contact the sole agents:

for purchaser’s costs of 6.61%. Will Waterhouse Charlie Lake 020 7198 2280 020 7198 2227 Lambert Smith Hampton [email protected] [email protected] UK House 180 Street Mark Cooper Matthew Green London W1D 1NN 020 7198 2208 020 7198 2081 www.lsh.co.uk [email protected] [email protected]

Subject to Contract and Exclusive of VAT © Lambert Smith Hampton June 2019 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.

UNIQUE TOWN CENTRE OPPORTUNITY 12