MULTI LET SOUTH EAST OFFICE INVESTMENT Units 3 & 4, Brittingham House, Orchard Street, Crawley, West Sussex, RH11 7AE INVESTMENT SUMMARY LOCATION • A large prosperous and growing south-east town; Crawley is one of the largest conurbations in West Crawley has a diverse and growing population of • Prominently situated on Orchard Street in the heart of the Sussex, situated adjacent to London Gatwick Airport approximately 106,600 (Census 2011) and an extensive town centre and immediately adjacent to a new retail led and approximately 30 miles south of Central London. primary catchment population of 477,000 benefitting from re-generation site; Communications are excellent and the town benefits from its lack of proximity to competing centres. The strength of comprehensive transport communication with Junctions 9 the town is demonstrated in its low unemployment rate with • A semi-detached office/A2 building extending to a Net jobseekers currently accounting for 2.3% of the working age Internal Area of 6,801 sq ft; and 10 of the M23 located immediately to the east. These junctions provide direct access to Junction 7 of the M25 population, considerably below the national average. • Let to a diverse range of four tenants with an weighted 11 miles to the north which in turn provides access to the average unexpired lease term of 4.95 years; Approximate distances from the subject property: remainder of the national motorway network. • A total rent passing of £69,070 per annum; • M23 (Junction 10) 2 Miles The town is served by three mainline railway stations, Gatwick, • M25 (Junction 7) 12 Miles • A number of recent lettings/renewals demonstrating Three Bridges and Crawley with a fastest journey time to • London Gatwick Airport 2 Miles strength of demand; London Victoria of 30 minutes and to London Bridge of 28 • Brighton 26 Miles • Freehold; minutes. The airport is located immediately to the north of the town and provides comprehensive short and long haul air • Central London 36 Miles £720,000 • Offers are invited in excess of subject to contract travel, being the second largest passenger airport in the UK. • Crawley Railway Station 0.25 Miles and exclusive of VAT. A purchase at this level would reflect Heathrow is conveniently located 40 miles to the north west • Croydon 10 Miles a NIY of 9.0% after purchasers costs of 5.80%. via the M25. MULTI LET SOUTH EAST OFFICE INVESTMENT SITUATION The property is located in a prominent position on Orchard Adjacent to the property is the Land Securities re-generation These schemes will transform the area around the subject Street adjacent to Crawley town centres inner ring road and project that completes in December 2013 comprising a 75,000 property and re-vitalise the northern section of the town within walking distance of all town centre amenities and sq ft Morrisons supermarket, three A3 units and a 110 bed centre. The aim is to improve the town’s retail offer to tap railway station. Travelodge. This scheme forms a major part of the town centre into the extensive and wealthy catchment population and re-generation along with the area directly to the east which complement the towns existing facilities. The Town Centre There is a large NCP car park opposite the property on Peglar will involve Stanhope creating a comprehensive range of North scheme is targetted for completion in 2013. Way and a further surface level car park directly to the south of additional retail space in conjunction with Crawley council on the property. The Boulevard. Key Brittingham House Land Securities Stanhope Town Centre North Land Securities - Morrisons/Travelodge MULTI LET SOUTH EAST OFFICE INVESTMENT DESCRIPTION The property comprises a semi-detached two storey office and showroom property with an extensive frontage to Orchard Street divided into two ground floor A2 units and two first floor office suites. Each suite benefits from self contained access from the Orchard Street frontage. The property is brick built under a mansard flat roof. Each unit provides a basic specification including carpets, perimeter trunking and suspended ceilings with recessed stripped lights. ACCOMMODATION The property has been measured in accordance with the RICS Code of Measuring Practice (6th edition) and extends to 6,801 TENANCY DETAILS sq ft (631.83 sq m) as per the Schedule of Accommodation The property is multi-let to 4 tenants on effective Full The property has an excellent letting history with 1 letting and Tenancies. Repairing and Insuring terms as per the Schedule of and 2 renewals in the last 8 months demonstrating strong The site is rectangular in shape and extents to 0.03 hectares Accommodation and Tenancies. occupational demand. The current passing rent totals £69, 070 per annum and there is no vacant accommodation. (0.8 acres). The current weighted average unexpired lease term is 4.95 years and 3.15 years when accounting for break options. SCHEDULE OF ACCOMMODATION AND TENANCIES *All leases are held outside the security of tenure provisions Landlord and Tenant 1954 Act. Unit Tenant Area sq.ft Area sq.m Repair Lease Start Review Date Break Date Lease Expiry Passing Rent £pa Rent £psf Comments Redhill Unit 3 October 2013 break not exercised. Property 1,168 108.51 IRI 28 Oct 2008 28 Oct 2013 N/A 27 Oct 2018 £19.900 £17.04 Ground Floor Rent deposit of £11,752.17. Services Ltd Unit 3 Huntress 1,430 132.85 FRI 11 Apr 2013 N/A 11 Apr 2016 10 Apr 2018 £14,300 £10.00 First Floor Search Ltd Tenant has Schedule of Condition but is bound to Unit 4 redecorate and recarpet at expiry.Stepped rent Zoom995 Ltd 1,913 177.72 FRI 22 May 2013 22 May 2018 22 May 2018 21 May 2023 £19,030 £9.95 Ground Floor of £9,515 until 21/02/14 being topped up by the vendor. Rent deposit of £5,709.94. McLaren Unit 4 Construction 2,290 212.75 FRI 19 Nov 2012 N/A N/A 18 Dec 2013 £15,840 £6.92 Rent deposit of £3,960.00. First Floor Ltd TOTALS 6,801 631.83 £69,070 MULTI LET SOUTH EAST OFFICE INVESTMENT TENANT FINANCIAL INFORMATION TENURE Units 3&4 Brittingham House are let to four professional services companies as follows: Freehold. VAT The property has been elected for VAT and VAT will be Redhill Property Services Ltd. McLaren chargeable on the purchase price. It is therefore anticipated Redhill Property Services Ltd are a local franchise of McLaren are a national construction firm with an extensive that the acquisition will be treated as a Transfer of a Going Martin & Co, the countrywide estate agency with offices ongoing development pipeline. For the year ended 31st Concern (TOGC). throughout the UK. Redhill are a small company and exempt July 2012, the company reported a turnover of £375.53 from publishing detailed accounts. million, pre-tax profits of £6.01 million and net assets of EPC’s £21.26 million. Energy Performance Certificate’s have been prepared and can be viewed in the data room that has been set up to assist the disposal. Huntress Search Huntress Search are a national firm of recruitment consultants PROPOSAL with offices throughout the UK. For the year ended 31st Zoom995 Limited We are inviting offers in excess of £720,000, subject to con- December 2012, the company reported a turnover of £53.08 Zoom995 Limited are a local firm of estate agents and tract and exclusive of VAT. million pre-tax profits of £820,532 and net assets of £3.03 million. conveyancers and were incorporated earlier this year. A purchase at this level would reflect a net initial yield of 9.0% assuming purchasers costs of 5.80%. A purchase at this level would also reflect a reversionary yield of 10.19% based on our opinion of ERV of the 1st floor of Unit 3 once cosmetically refurbished. CONTACT For further information or to arrange an inspection of the property please contact: Chris Dickin [email protected] Nick Harrison [email protected] Rob Atkins [email protected] Telephone: 020 7935 2831 IMPORTANT INFORMATION 1. No description or information given by Clay Street Ltd whether or not in these Particulars and whether written or verbal (“information”) about the property or its condition or its value may be relied upon as a statement or representation of fact. Neither Clay Street Ltd (nor any joint agents) have any authority to make any representations and accordingly any information given is entirely without responsibility on the part of the agents or the seller. 2.These particulars do not constitute, nor constitute part of, an offer or contract, nor shall they merge in any offer or contract which may hereafter be made between the sellers or lessors and the recipient of the information. 3.The photographs show only certain parts of the property at the time they were taken. Any areas measurements or distances given are approximate only. 4. Any reference to alterations to or use of any part of the property is not a statement that any necessary planning, building regulations or other consent has been obtained.These matters must be verified by any intending buyer. 5. Any buyer must satisfy himself by inspection or otherwise as to the correctness of any information given. Designed and produced by Diablo: www.diablodesign.co.uk November 2013 .