Parkside House

Ashley Road | Epsom | KT18 5BS

M25 Town Centre Freehold Oﬃ ce Investment Epsom & Ewell Epsom Train Station Borough Council

High Street

Ashley Shopping Centre

To the A3 Epsom Gateway

Global House

Parkside House

Roseberry Park To the M25

Parkside House | 2 Investment Summary

• Epsom is a major ofﬁ ce market in the south west M25 quadrant and beneﬁ ts from excellent road, rail and air communications. The town is located 16 miles south west of Central London and 3 miles north east of the M25 (Junction 9).

• Parkside House is situated in a prominent position in the town centre overlooking Rosebery Park and within easy reach of Epsom’s amenities and railway station.

• Modern offi ce building comprising approximately 3,201 sq m (34,454 sq ft) arranged over basement, ground and two upper fl oors with fl exible fl oorplates of approximately 1,115 sq m (12,000 sq ft).

• Parkside House has an excellent town centre car parking ratio and one of the best ratios in Epsom of 1:17 sq m (1:183 sq ft).

• Freehold.

• Fully let to Aon Benﬁ eld Ltd until 24 December 2016, producing a rental income of £1,047,000 per annum.

• Aon Benﬁ eld, the world’s leading reinsurance intermediary and full-service capital adviser, have a D&B rating of 5A1 representing a minimum risk of business failure.

• Offers are sought in the region of £9,900,000 (Nine Million, Nine Hundred Thousand Pounds), subject to contract and exclusive of VAT, which reﬂ ects an attractive net initial yield of 10% assuming purchaser’s costs of 5.8%.

Parkside House | 3 3 2 HARROW MARLOW 1 HAMPSTEAD WEMBLEY A404 (M) 1A 1 HENLEY- SLOUGH CENTRAL LONDON ON-THAMES UXBRIDGE Location MAIDENHEAD A40 M25 EALING 7 WESTMINSTER 6 SOUTHWARK 8/9 M4 4B 1 5 4 3 2 Epsom is an affl uent Surrey town located 16 miles south west of READING Central London. The town has proximity to other key south west 14 HEATHROW AIRPORT WANDSWORTH RICHMOND M25 offi ce centres including Reigate and Redhill some 10 miles 13 FELTHAM 12 BERKS to the south east and Leatherhead 4 miles to the south. 10 1 KINGSTON 11 TO BRISTOL 2 UPON THAMES BRACKNELL WALES & WOKINGHAM CROYDON Epsom has a residential population of approximately 75,102 SOUTH WEST A329 M3 11 people (2011 census) of which some 62.1% are considered WEYBRIDGE 3 ESHER “Affl uent Households”, well above the national average of 39.1%. WOKING M25 EPSOM The town also has a higher than average provision of professional A30 10 4 A33 and managerial workers at 54.4% when compared with the 9

FARNBOROUGH A3 national average of 37.3%. LEATHERHEAD M25 8 5 8 FLEET 6 Epsom is a popular and established commercial centre due to GUILDFORD REIGATE M23 TO SOUTHAMPTON the combination of its attractive working environment, skilled

A31 A24 labour force and excellent local facilities. Major commercial SURREY occupiers that have been attracted to the town include WS GATWICK Atkins, Taylor Nelson, Bunzl plc, Toyota, Mortgage Trust and A3 AIRPORT Royal Mail. Furthermore, Epsom has a rich heritage based around horse racing, playing host to the world famous, 200 year old Derby.

Epsom beneﬁ ts from a range of amenities including The Ashley Shopping Centre with over 50 shops including House of Fraser, M&S and Waitrose, the Playhouse Theatre, multiplex cinema and the Ebbisham Centre, which includes the County Library and Virgin Active Fitness Club. In addition, nearby recreational facilities include the RAC Country Club at Woodcote Park, including two championship golf courses, Horton Park Riding School and Epsom Downs Golf Club.

Parkside House | 4 Communications

Road communications are excellent, with the M25 (Junction 9) located 3 miles to the south west via the A24, which in turn connects with the national motorway network. The A3 is located 5 miles to the north which provides access to Central London and the M25 (Junction 10).

The town has strong rail communications with direct services to London Waterloo, London Victoria and London Bridge stations, with up to 11 trains per hour during peak times. In addition, frequent services are provided to Leatherhead, Dorking and Horsham (with connections to the South Coast) and to Guildford (with connections to Portsmouth and Southampton).

Road Central London 16 miles Leatherhead 4 miles Reigate 10 miles Guildford 18 miles Woking 20 miles

Rail London Waterloo 36 minutes London Victoria 39 minutes London Bridge 44 minutes

Air Gatwick Airport 20 miles Heathrow Airport 25 miles

Parkside House | 5 A3

TO A232 Situation CENTRAL LONDON A24 EPSOM The property is prominently situated on the western side of Ashley B280 Road at the southern entrance to Epsom town centre. The EPSOM A240 building beneﬁ ts from a unique aspect overlooking Rosebery Park. A244 A243 The property is a short walk from Epsom railway station which is Parkside House A2022 currently being redeveloped to include a number of new shops, A2022

ﬂ ats and a Travelodge hotel (below right). A24 B284 EPSOM DOWNS The Ashley Shopping Centre which comprises 290,000 sq ft of prime retailing lies approximately 50 metres north of Parkside House. The Centre has over 800 parking spaces. 9 M25

EPSOM DOWNS Ashley Road’s desirable location has resulted in this area becoming RACECOURSE TO M3, M4 AND TATTENHAM the focus of a number of high profi le offi ce developments with HEATHROW AIRPORT CORNER 9 occupiers attracted to its prominence, accessibility and close-by A245 A24 amenities for the benefi t of their workforce. LEATHERHEAD

A217 LEATHERHEAD A24 M25 TO M23 AND GATWICK AIRPORT

Parkside House | 6 Description

Parkside House was constructed in the early 1990’s and offers attractive, high specifi cation open plan offi ce accommodation totalling 3,201 sq m (34,454 sq ft) arranged over basement, ground and two upper fl oors. Car parking is located at lower ground and basement level with additional car parking located to the front elevation of the property around the perimeter.

The property is of reinforced concrete frame construction with external masonry walls fi nished with attractive brickwork and rendering. The roof is mono-pitched around the perimeter of the building with a slate fi nish. Two sections of the roof are of mansard construction and to the centre of the building there is a fl at roof over the plant rooms at third fl oor level. Window units are double glazed aluminium framed to all upper fl oors.

The building beneﬁ ts from excellent natural light and has the following speciﬁ cation:

• Four pipe fan-coil air-conditioning • Fully accessible raised fl oors • Suspended ceilings with recessed Category II lighting • Floor to ceiling height of circa 2.70m • Two x 13 person passenger lifts serving the basement and all upper fl oors • Male and female toilet facilities on each fl oor • Disabled toilet facilities on the ground and second fl oors with shower facilities on the fi rst fl oor • 188 car parking spaces providing a ratio of 1:17 sq m (1:183 sq ft)

Parkside House | 7 Car Parking Provision

The property beneﬁ ts from a total of 188 car parking spaces. 45 of these are provided at surface level with the remaining 143 located within the building’s two storey basement car park. This allocation provides the building with one of Epsom’s best car parking ratios at 1:17 sq m (1:183 sq ft).

We understand that new car parking consents in Epsom would be allocated at a ratio in excess of 1:46.45 sq m (1:500 sq ft) net.

We are therefore of the opinion that this could lead to the emergence of a two tier market where higher comparative rents will be achieved on those buildings beneﬁ ting from historical car parking provisions rather than new developments as occupiers price car parking over perceived proﬁ le.

Accommodation

The property has been measured in accordance with the RICS Code of Measuring Practice and provides the following approximate net internal ﬂ oor areas:

Floor Use sq m sq ft Ground Reception 67.17 723 Ground Offi ce 937.36 10,090 First Offi ce 1,106.72 11,913 Second Offi ce 1,089.53 11,728 Total 3,200.78 34,454

Parkside House | 8 Site Area

The site is accessed directly from Ashley Road. It comprises a level, rectangular shaped site extending to approximately 0.35 hectares (0.86 acres).

EPC

The property has an EPC rating of D.

Tenure

The property is held freehold.

Tenancy

The property was originally let in its entirety to Bacon & Woodrow Properties Company with a guarantee provided by the Partners of Bacon & Woodrow for a term of 25 years commencing 25 December 1991 and expiring 24 December 2016.

The lease has recently been assigned to Aon Benﬁ eld Ltd although privity of contract applies.

The current passing rent is £1,047,000 per annum which equates to £327.10 per sq m (£30.39 per sq ft) overall. There is one further upwards only rent review rent on 23 December 2016.

The lease is drawn on full repairing and insuring terms.

Parkside House | 9 Covenant Information

Aon Benfi eld Ltd, a division of Aon plc, is the world’s leading reinsurance intermediary and full-service capital advisor. Benfi eld Group Ltd was acquired by Aon in 2008 and now has 80 offi ces in 50 countries.

Aon plc is a leading global provider of risk management, insurance and reinsurance brokerage, and human resources solutions and outsourcing services. The company as a whole employs 65,000 people in 120 countries.

Date 31 Dec 2011 30 Dec 2010 30 Dec 2009 Sales Turnover - £1,121,867 £51,829,988 Proﬁ t (Loss) Before Taxes £6,777,585 (£2,567,781) (£752,394,611) Tangible Net Worth £1,049,840,748 £650,688,699 £649,797,246 Net Current Assets (Liabilities) (£1,063,977,397) (£817,806,818) (£722,711,395)

D&B rating of 5A1 representing a minimum risk of business failure.

Planning

The site falls within the Town Centre boundary which is governed by Plan E, part of the Council’s strategic policy document which provides a detailed vision for the future of Epsom town centre. We understand the property is not listed, nor is it in a conservation area or ﬂ ood zone.

The building style and location could be ﬁ tting to a change of use to residential. This change could potentially be supported by Government plans to enable a change of use from ofﬁ ces to residential without the requirement for planning permission in order to ‘kick start’ housing delivery in the UK.

Parkside House | 10 Epsom Oﬃ ce Market

Epsom is an established offi ce market in the south west quadrant of the M25. The town attracts high profi le occupiers due to its excellent road and rail links, access to Central London and the affl uent, educated workforce living in the surrounding areas. Occupiers include WS Atkins, Taylor Nelson Sofres, Premium Credit, EMB, Towers Watson and BDO Stoy Haywood.

The market has seen a recent increase in letting activity driven by the 40,000 sq ft pre-let at Epsom Gateway to WS Atkins. This development is located behind the subject property in the primary ofﬁ ce pitch within Epsom.

Jones Lang LaSalle estimates 295,000 sq ft of requirements in Epsom including the 50,000 sq ft Close Brothers requirement which has recently focussed on Epsom as a preferred location. Demand for Epsom is also improving due to the tight supply in other competing markets. Take up in the Western Corridor was 650,000 sq ft for Q1 2013 which is 30% up on the 5 year quarterly average illustrating an improving occupier market.

Epsom Residential Market

Epsom has an identifi ed housing shortage and the Council is seeking to ensure suffi cient housing is provided to meet the Borough’s housing requirement. Between 2007-2022, the Council aims to deliver 2,715 new homes, of which 635 with be located within the Town Centre boundary. Some of this development has been earmarked on specifi c sites, however the Council outlines that fl exibility can be exercised on individual opportunity sites.

Currently new build ﬂ ats are achieving capital values up to £500 per sq ft within the town centre with quoting prices on The Old Court House, off Ashley Road, equating to £570 per sq ft.

The requirement for housing in Epsom town centre, together with the attractive capital values, results in an excellent opportunity to explore potential future residential use on the site. This potential has been enhanced by recent changes to the planning system.

Parkside House | 11 Investment Market

The South East ofﬁ ce investment market has gone from strength to strength over the past 12 months which has resulted in an increased appetite from investors and a recent hardening in pricing. Demand is very strong for income opportunities together with well located properties with shorter unexpired terms and asset management potential such as Parkside House.

With very little stock in the current market, this investment provides an excellent opportunity to acquire a quality, well positioned ofﬁ ce building with an excellent car parking ratio in an afﬂ uent inner M25 location.

Date Address Size Tenant Rent pa WAULT Price NIY CV per sq ft sq ft

Available 1-7 Stoke Road, Guildford 37,360 Clyde & Co LLP £717,750 2.5 years £7.98m 8.50% £214

Available Ealing Cross, London W5 134,582 Multi-let £2,429,258 4.9 years £36.0m 6.25% £273

Available 39-51 High Street 34,944 Multi-let £716,651 5.3 years £9.68m 7.00% £277 & Berkshire House, Ascot

Under Offer York House, Maidenhead 10,602 Multi-let £219,695 3.0 years £2.44m 8.50% £230

Jan 2012 4 Cam Road, Stratford 38,596 Multi-let £783,131 5.5 years £7.5m 9.86% £194

Apr 2013 Ranger House, Guildford 42,098 CNR (International UK Ltd) £1,042,000 4.8 years £13.7m 7.00% £342

Mar 2013 45 Grosvenor Road, St Albans 62,361 Secretary of State for Communities £940,000 5.8 years £10.15m 8.75% £162 & Local Government

Nov 2012 Bishops Wharf, Guildford 15,600 Riding House Street Ltd £440,753 6.3 years £4.9m 8.50% £353

April 2012 Milton House, Leatherhead 34,461 Logica UK Ltd £868,020 5.5 years £8.5m 9.65% £247

Feb 2012 Hays House, Guildford 17,938 Multi-let £343,500 7.1 years £4.5m 7.20% £252

Jan 2012 SAB Miller House, Woking 64,398 SAB Miller £1,372,500 7.5 years £16.25m 7.98% £252

Parkside House | 12 VAT

The property is elected for VAT such that VAT will be payable on the purchase price. However, it is anticipated that sale of the property will be treated as a Transfer of a Going Concern (TOGC), assuming the purchaser is registered and will elect.

Investment Considerations

• Epsom is an affl uent town with good links to Central London and surrounding towns. • Parkside House is well located within Epsom town centre, close to the train station, main shopping centre and overlooks Rosebury Park. • The building offers the fl exibility to be let as a whole or on a fl oor by fl oor basis such that it can serve a wide range of occupational requirements. • Large open fl oor plates with a favourable fl oor to ceiling height of circa 2.70m. • Excellent car parking ratio of 1:17 sq m (1:183 sq ft), boasting one of the best ratios in Epsom. • Fully let to Aon Benfi eld Ltd producing a rental income of £1,047,000 per annum. • Asset management initiatives on expiry including entering into negotiations with the current tenant, refurbish and re-let the property or explore a change of use. • Strong occupational demand in the town for prime stock as illustrated by the WS Atkins pre-let.

Proposal

We are instructed to seek offers in the region of £9,900,000 (Nine Million, Nine Hundred Thousand Pounds), subject to contract and exclusive of VAT, for our client’s freehold interest.

A purchase at this level reﬂ ects an attractive net initial yield of 10% assuming purchaser’s costs of 5.8%.

Parkside House | 13 Contacts

If you require further information or would like to arrange an inspection, please contact:

Noel Lander 020 7083 5336 07931 371825 [email protected]

Simon Verrall 020 7083 5393 07815 940656 [email protected]

Ali Penford 020 7852 4936 07818 102339 [email protected]

© Crown Copyright 2013. All rights reserved. Promap licence number 100020449. Jones Lang LaSalle licence number 100017659. This plan is published for the convenience of identiﬁ cation only and although believed to be correct is not guaranteed and it does not form any part of any contract.

Misrepresentation Clause: The accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein is not guaranteed and is for general guidance only and prospective purchasers or tenants must not rely on them as statements of fact or representations and must satisfy themselves as to their accuracy. Neither Jones Lang LaSalle nor any of its employees or representatives has any authority to make or give any representation or warranty or enter into any contract whatever in relation to the property. Rents quoted in these particulars may be subject to VAT in addition. The reference to any mechanical or electrical equipment or other facilities at the property shall not constitute a representation (unless otherwise stated) as to its state or condition or that it is capable or fulﬁ lling its intended function. Prospective tenants/purchasers should satisfy themselves as to the ﬁ tness of such equipment for their requirements.

Subject to Contract • Exclusive of VAT • May 2013

Parkside House | 14