Procter & Gamble. FOR SALE ON BEHALF OF THE JOINT LPA RECEIVERS NEW HEDLEY HOUSE COBALT OFFICE PARK NEWCASTLE NW27 0QW

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1 Procter & Gamble. Modern office investment yielding 18.3% FOR SALE ON BEHALF OF THE JOINT LPA RECEIVERS

2 Investment Summary. Situated on Cobalt Office Park, Newcastle and currently comprises circa 1.79m sq ft over 28 buildings. The subject site comprises circa 2.39 acres and is located towards the southern end of the Park, fronting Silver Fox Way. Constructed in 2002 and providing 55,755 sq ft of office accommodation over ground and three upper floors. Internally the offices are open plan with suspended ceilings incorporating Cat II lighting, solid carpet floors and comfort cooling. 225 car parking spaces (1:219 sq ft). Single let to Procter & Gamble Technical Centres Limited (hereafter P&G) from 27 January 2002, expiring 18 April 2017 (approximately 4.5 years unexpired). Current passing rent of 793,725 per annum ( psf). Long leasehold for 125 years less 6 days from 29 March 1996 at a peppercorn rent. The unexpired term is therefore approximately 109 years. We are seeking offers of 4,100,000, reflecting a net initial yield of 18.30% after the deduction of purchaser s costs of 5.8% which reflects a capital value of psf.

3 Location. Newcastle is the regional capital of the North East. The city is 98 miles north of Leeds, 104 miles south of Edinburgh and 277 miles north of London. It has a resident population of approximately 190,000 and around 1.4m people live within 12 miles of the city centre. By road, Newcastle has excellent access via the A1 south to Leeds and north to Edinburgh. By rail, Newcastle is on the East Coast Mainline with the fastest journey time to Kings Cross of 3 hours, and 1 hour 30 minutes to Edinburgh. Newcastle International Airport, located to the north west of the city has daily flights to Stansted, Heathrow and Gatwick with journey times of less than an hour. Other domestic destinations include Belfast, Bristol, Exeter, Jersey and Southampton. In 2000 the airport completed a 27m redevelopment of Terminal 1, increasing capacity to 4.8m passengers per year. A1056 A19 A186 A696 A1 A189 A186 A69 A167 A191 A188 A1058 A194 A19 A183 A6985 A186 A1114 A1 A184 B1426 A185 A194 A694 A692 A167 B1296 A194(M) A184 A19 A1018 A694 A692 A6076 B1296 A1 B1288 A195 A1290 A1 A1231 B6310 A182 A1(M) A195 A183 A690 B1405

4 Newcastle Economy Overview. The city has experienced a significant recent investment. Projects include the Quayside Regeneration, the new Baltic Centre for Contemporary Arts, the Angel of the North, the Grainger Towns Project and the Gateshead Millennium Bridge. Most recently Barratt Homes have been chosen as the development partner to bring forward a 450m regeneration of Newcastle s Scotswood Estate. The commercial focus for the city is shifted towards the service sector with companies such as BA and Orange setting up significant call centre operations. The city has experienced a high level of foreign investment with Japanese companies being significant investors into the region. Major companies that have a significant presence in the city include Citel, Santander, Scottish & Newcastle Breweries, PriceWaterhouseCoopers, Sage Group, Northern Rock, Barclays and Lloyds Banking Group.

5 Cobalt Office Park. In just 10 years, Cobalt Park has become one of the most successful office schemes in the UK. More than 1.2m sq ft of offices have been constructed at Cobalt to date which will create 2.25m sq ft with the Park becoming fully developed with workforce of approximately 17,000 people. This will make it the largest business park in the UK. AccuRead The Metering Service Network Amenities include conference suites, Cobalt NHS Treatment Centre, a 127-bedroom DeVere Village Hotel and Leisure Club, a children s nursery and a Tesco s Supermarket. The Park has established itself as a premier destination for major occupiers, these include: Cobalt NHS Treatment Centre Orange Fujitsu Formica Procter & Gamble Northumbria Healthcare NHS Trust North Tyneside Council Newcastle Building Society Santander 1 These organisations are attracted to the modern high quality working environment, first class commun-ications and access to a strong labour force. CobaltBusinessExchange

6 A19 A ) The Subject Property (P&G) 2) Orange 3) Orange 4) Northumbria Health & Care Trust 5) P&G 6) HP Enterprise Services 7) HP Enterprise Services 8) North Tyneside Primary Care Trust 9) Trillium (DWP) 10) Fujitsu 11) Just Learning Nursery 12) Vacant 13) Formica (now built) 14) AccuRead (now built) 15) Vacant 16) Santander 17) North Tyneside Council 18) Job Centre Plus

7 Situation. The Park benefits from good road links via the major urban areas in the north east via the A19 which passes adjacent to the south western boundary of the Park. The A19 via the A194 provides access to the A1M and the national motorway network beyond to the south of Newcastle. Newcastle city centre is approximately 6.5 miles to the south west via the A1058 coast road. Route 19 bus service passes through Cobalt Office Park continuing to Palmersville Metro Station to the north and Percy Main and North Shields Metro Stations to the south. Plot 12A enjoys a central position within Cobalt Office Park with the office building fronting Silver Fox Way. There is a large area to the rear of the property which provides the car parking. Description. The property was constructed in 2002 and comprises a four storey building. The building is of steel portal frame construction with solid concrete floors. It has a full height atrium and a central lift and stair core. There are male and female WC facilities on each floor. The accommodation is currently open plan with the benefit of suspended ceilings, concrete floors and comfort cooling. There are 225 car parking spaces on site providing an excellent car parking ratio of 1:219 sq ft. Accommodation. We have measured the property in accordance with the RICS Code of Measuring Practice to provide the following areas: Accommodation NIA Sq Ft NIA Sq M Ground 13,939 1,294.9 First Floor 13,939 1,294.9 Second Floor 13,939 1,294.9 Third Floor 13,939 1,294.9 Total 55,755 5,197.8 Tenancy. The property is single let to Procter & Gamble Technical Centres Limited on a lease starting 27 January 2002 and expiring on 18 April 2017 (approximately 4.50 years unexpired). There is an outstanding review from 19 January The passing rent is 793,725 per annum which equates to per sq ft. This was increased at the January 2006 review from 765,875 ( psf). As part of an IT out-sourcing agreement with P&G, Hewlett Packard have a co-terminus sublease on the third floor of the property which has recently been renewed. The passing rent is 146, per annum. ( psf). Both tenants are in occupation of their accommodation.

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9 Covenant Information. Procter & Gamble is a global company that provides consumer products in segments such as beauty and grooming, health and wellbeing, household care, snacks and pet care. The company is a Fortune 500 American multinational corporation and made net sales of $78.9bn in The company has $23bn brands such as Gillette, Ariel, Pampers, Bounty, Oral B, Braun, Duracell, Head & Shoulders, Pringles, and Olay. The company has 18 more brands between $500m and $1bn. The P&G community consists of over 138,000 employees working in over 80 countries worldwide. Procter & Gamble Technical Centres Limited is a subsidiary of the Procter & Gamble company. The last four years financial results for P&G Technical Centres Limited are shown to the right. The loss in 2010 was due to exceptional charges of 7.8m Turnover 240,378, ,354, ,742, ,713,000 Pre-Tax Profit 14,195,000 ( 751,000) 12,005,000 22,872,000 Shareholders Fund 123,334,000 50,502, ,069, ,934,000

10 Tenure. Long leasehold for a term of 125 years less 6 days from 29 March 1996 at a peppercorn rent. The unexpired term is therefore approximately 109 years. VAT. The property has been elected for VAT however it is anticipated that the transaction will be structured as a TOGC. Proposal. We are seeking offers of 4,100,000 subject to contract and exclusive of VAT for the long leasehold interest in the property. A purchase at this price would equate to a net initial yield of 18.30% allowing for purchaser s costs of 5.8% and a capital value of per sq ft.

11 Procter & Gamble. Further Information & Contacts. Dickon Wood E: T: M: Jones Lang LaSalle 51 Grey Street Newcastle Upon Tyne NE1 6EE Subject to Contract. Important Notice: This property is being marketed on behalf of the Joint LPA Receivers and therefore no warranties or guarantees in any respect, including but not limited to VAT, can be given. The LPA Receivers are not bound to accept the highest or any offer and are acting without personal liability. Design & photography by