PRIME SOUTH EAST INDUSTRIAL ESTATE INVESTMENT CHARLWOOD ROAD, CRAWLEY RH11 0TG INVESTMENT SUMMARY LOCATION & SITUATION GATWICK AIRPORT DESCRIPTION

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1 PRIME SOUTH EAST INDUSTRIAL ESTATE INVESTMENT INVESTMENT SUMMARY LOCATION & SITUATION GATWICK AIRPORT DESCRIPTION ACCOMMODATION SITE, TENURE & TENANCIES SERVICE CHARGE, EPC & INVESTMENT EVIDENCE CHARLWOOD ROAD, CRAWLEY RH11 0TG FURTHER INFORMATION

2 INVESTMENT SUMMARY - Multi-let industrial Estate in Crawley; the leading commercial centre in West Sussex with excellent connections to the M23 and M units totalling approximately 13,350 sq m (143,700 sq ft). - Fully let to four tenants with a weighted average unexpired lease term of 3.0 years to expiry and 2.5 years to break options. - Freehold. - Current passing rent of 1,102,447 pa ( 7.70 per sq ft). - We are instructed to seek offers in excess of 13,500,000 (Thirteen Million Five Hundred Thousand Pounds) for the freehold interest, subject to contract and exclusive of VAT. - A purchase at this level reflects a net initial yield of 7.72% and a low capital value of per sq ft, after normal purchaser s costs of 5.80%. INVESTMENT SUMMARY

3 LONDON RD BALCOMBE RD LOCATION Crawley is the leading commercial centre in West Sussex and an important sub regional centre. The town is located approximately 48 km (30 miles) south of Central London, 34 km (20 miles) north of Brighton and 11 km (7 miles) north west of Horsham. Communications to the town are excellent with Crawley being located immediately to the west of the M23 (between Junctions 9 and 10) and 26 km (16 miles) south of Junction 7 of the M25. The town is served by three mainline rail stations, Crawley, Three Bridges and Gatwick Airport with a fastest journey time to London of 30 minutes. M3 10 A3 A309 M25 9 DORKING A3 A217 A217 A23 7 CROYDON A22 6 A232 M25 Crawley is at the heart of the Gatwick Diamond, one of the most dynamic economic regions in the country and home to approximately 100,000 people. Gatwick Airport, employing approximately 23,000 people, is a major economic driver for the town and is located only 8 km (5 miles) from the centre of Crawley. SITUATION The property is situated immediately to the north of the Manor Royal Estate which is Crawley s principal commercial location. The Manor Royal area was identified as a major industrial zone following Crawley s New Town Designation in The Gatwick Gate Estate is located fronting Charlwood Road, immediately adjacent to Gatwick Airport. The A23 dual carriageway is within a few hundred metres and Junctions 9 and 10 of the M23 are approximately 6 km (4 miles) from the premises giving access to the M25 and wider motorway network. A272 A24 A23 GATWICK CRAWLEY A264 HORSHAM A24 A23 A272 M23 A22 9 A EDENBRIDGE A22 A26 LOCATION & SITUATION The Manor Royal Estate and surrounding area has attracted a number of significant occupiers including Virgin Atlantic, BAA, Civil Aviation Authority, First Choice Holidays and Thales. In addition to airport related industries, a number of national and international companies are located in Crawley including Unilever, Nestle, BT and KPMG. GATWICK AIRPORT M23 GATWICK A23 BALCOMBE RD PERIMETER RD S CHARLWOOD RD LONDON RD RADFORD RD A23 GATWICK RD FLEMING WAY

4 MANOR ROYAL ESTATE LOCATION & SITUATION LONDON ROAD LONDON ROAD OLD BRIGHTON ROAD CHARLWOOD ROAD PERIMETER ROAD SOUTH

5 GATWICK AIRPORT Gatwick is the world s busiest single-runway airport and the second largest UK airport after Heathrow serving approximately 34 million passengers each year and flying to over 200 destinations. In order to maximise business originating from the European Union a second runway has been proposed as part of plans to increase the UK s airport capacity by The second runway is one of three options shortlisted by the Airports Commission. Alternative options include a third runway at Heathrow and lengthening the existing Heathrow runway. The commission is carrying out a detailed analysis of the shortlisted options before a public consultation in the autumn. Its final report is expected after the general election in summer Gatwick is prohibited by an agreement reached with its local council from beginning the construction of a second runway prior to 2019, however airport chiefs state that the new runway could be opened by Gatwick Borough Council has recently voted to oppose the expansion plans. PERIMETER RD S GATWICK AIRPORT OLD BRIGHTON ROAD CHARLWOOD ROAD LONDON ROAD LONDON ROAD

6 DESCRIPTION The Gatwick Gate Estate provides a 1980s development of 9 units comprising 13,350 sq m (143,700 sq ft) of accommodation. The Estate consists of two terraces of 4 units (Block 2) and 5 units (Block 3) ranging in size from circa 950 sq m (10,280 sq ft) to 2,100 sq m (22,700 sq ft). The units are ideally configured for medium to large operators with generous loading and parking facilities to the front of each unit. The Estate comprises a series of linked steel portal frame units which are clad to approximately 3 metres above ground level with brickwork and profiled sheeting above. Internally the accommodation provides the following specification: - Minimum eaves height of approximately 6m (19 ft) DESCRIPTION - 1 x level access loading door per unit measuring circa 5m x 5m - Gas heating - Sodium lighting with 20% roof lights - Ancillary offices with suspended ceilings, recessed lighting and perimeter trunking - Male and female WCs Within Block 2 the office accommodation is housed at the front of the units in a two storey building of brick built construction with a flat felt roof. A substantial tenant mezzanine of circa 8,500 sq ft has been installed within unit 2A.

7 ACCOMMODATION A summary of the measured areas are presented in the table below. All measurements have been taken on a Gross Internal Area (GIA) basis: UNIT SQ M SQ FT 2A 2,104 22,647 2B 2,094 22,540 2C 2,111 22,720 2D 2,098 22,583 3A 1,047 11,268 3B ,284 3C 1,006 10,831 3D ,396 3E ,428 TOTAL 13, ,697 ACCOMMODATION

8 3E 3a B583C B583B 1a SITE The property occupies a site of approximately 5.80 acres (2.35 hectares) providing a site cover of 54%. TENURE The property is held Freehold. TENANCIES B583D 1d 1c 1b The Estate is multi-let to 4 tenants on 9 separate leases. The Estate produces a current rental income of 1,102,447 per annum equating to 7.67 per sq ft. 2a 2b 2c 2d Gatwick Gate A summary of the individual tenancies is presented in the table below. El Sub S Drain 59.3m CHARLWOOD ROAD 10m 20m 30m UNIT TENANT SQ FT LEASE START LEASE EXPIRY RENT REVIEW RENT /PA RENT /PSF COMMENTS 2A 2B 2C 2D Signet Group Signet Group Signet Group Signet Group 22, Jun Jun Jun , Unit occupied by Airbase Interiors. 22, Jun Jun Jun , Unit occupied by Airbase Interiors. 22, Jun Jun Jun , The unit has been sublet to International Logistics Group for a term expiring 23-Mar-17. Break date 01-Mar , Jun Jun Jun , The unit has been sublet to International Logistics Group for a term expiring 23-Mar-17. Break date 01-Mar-15. 3A TSL Lighting 11, Aug Aug Aug-19 78, Tenant break option on the 3rd, 5th and 7th anniversary on 6 months notice. Penalty of 19,719 payable if tenant breaks on 3rd anniversary. Half rent payable during the 2nd year of the term. 3B 3C 3D 3E Cooper Callas Cooper Callas Cooper Callas Smiths News Trading 10, Jun Jun Jun-13 75, The unit has been sublet to Glasseco for a term expiring 22-Jun , Jun Jun Jun-13 75, The unit has been sublet to Glasseco for a term expiring 22-Jun , Jun Jun Jun-13 75, Unit occupied by Capital Scenery. 10, Mar Mar-16-76, Tenant rolling break on 3 months notice. SITE, TENURE & TENANCIES TOTAL 143,697 1,102,

9 COVENANT INFORMATION Signet Group Signet Jewellers is the largest speciality jewellery retailer in the US, UK and Canada. Signet s Sterling division operates over 1,400 stores within the US primarily under the name brands of Kay Jewellers and Jared The Galleria Of Jewellery. Signet s UK division operates approximately 500 stores primarily under the brand names of H.Samuel and Ernest Jones. H.Samuel is the No. 1 speciality jewellery brand in the UK operating from over 300 stores and accounting for 9% of Signet s sales in 2014 with sales of circa 233 million. Ernest Jones is the leading upper-middle market jeweller operating from 189 stores and accounting for 8% of Signet s sales in 2014 with sales of circa 200 million. A summary of the tenant s latest financial accounts is presented in the table below: UNITS 2A, 2B, 2C & 2D - SIGNET GROUP LTD CO. NO /01/12 02/02/13 01/02/14 Turnover Pre-Tax Profit 257,280, ,463, ,366,658 Net Worth 967,405, ,347, ,742,428 Cooper Callas Cooper Callas is one of the UK s largest independent national distributors of kitchen and bathroom brands, employing over 100 people. Headquartered in Bicester, Oxon, the company serves a national client base through its depots in Leeds, Glasgow and Newton Abbot, Devon. Established in 1875, the family owned company has a long heritage in homeware, supplying builders, plumbers merchants and leading national high street retailers such as John Lewis. Cooper Callas was recently acquired by Philip Carr, an industry veteran in the Bathroom sector, via a Management Buy-In. Philip Carr has an extensive track record in developing and growing businesses within the UK Bathroom sector. A summary of their latest financial accounts is presented in the table below: UNITS 3B, 3C & 3D - COOPER CALLAS LTD CO. NO /01/ /01/ /01/2014 Turnover 26,117,830 24,240,931 27,448,229 Pre-Tax Profit 11, ,250-1,040,397 Net Worth 7,921,441 7,562,191 6,521,794 SITE, TENURE & TENANCIES

10 COVENANT INFORMATION CONTINUED Smiths News Trading Smiths News is the UK s leading newspaper and magazine wholesaler, serving 30,000 customers from 43 distribution centres across the UK. Customers include supermarkets, high street chains, independent retailers, petrol forecourts and home delivery networks. Smiths News is the largest company in Connect Group PLC which has combined revenues of 1.8bn, employing 6,700 staff and operating internationally. A summary of their latest financial accounts is presented in the table below: TSL Lighting Newly incorporated in September 2014, TSL Lighting provide a diverse range of lighting and rigging equipment for a wide range of live events, from single hire items to a complete arena touring system. TSL also provide the technical crew to install, program and operate these systems. TSL run a state of the art warehouse operation with a full IT infrastructure managing customer s orders, logistics, crew and inventory control from their unit on the Estate. TSL s projects team are further supported by a number of specifically qualified sub-contractors and specialists. UNIT 3E - SMITHS NEWS TRADING LTD CO. NO /08/11 31/08/12 31/08/13 Turnover 1,600,700,000 1,570,700,000 1,529,300,000 Pre-Tax Profit 38,300,000 41,200,000 40,000,000 Net Worth 497,500, ,300, ,900,000 SITE, TENURE & TENANCIES

11 SERVICE CHARGE The Service Charge budget for the year ending 31 December 2015 is 36,779 per annum ( 0.26 per sq ft). EPC The units have the following EPC ratings: UNIT TENANT EPC RATING 2A-2B Signet Group D (81) 2C Signet Group E (118) 2D Signet Group C (72) 3A TSL Lighting D (98) 3B Cooper Callas D (98) 3C-3D Cooper Callas D (81) 3E Smiths News Trading D (98) Copies of the Energy Performance Certificates are available on request. INVESTMENT EVIDENCE The property provides an excellent opportunity to acquire a prime south east multi-let industrial Estate. Set out below are some recent transactions providing evidence of current pricing levels. FURTHER INFORMATION DATE OF TRANSACTION ADDRESS SQ FT UNITS (TENANTS) WAULT TO EXPIRY (TO BREAK) PURCHASE PRICE PASSING RENT INITIAL YIELD (%) PURCHASE PRICE ( /PSF) Feb-15 Scimitar Park, Basildon 129,991 7 units (4 tenants) 6.5 (4.3) 10,720, , Jan-15 Trinity Trading Estate, Sittingbourne 410, units (38 tenants) 6.0 (4.5) 29,250,000 2,112, Dec-14 Mount Road Industrial Estate, Feltham 84, units (12 tenants) 5.8 (3.6) 9,400, , Dec-14 Tannery Road Industrial Estate, Tonbridge 59, units (12 tenants) 5.3 (3.4) 6,180, , Nov-14 West Ham Industrial Estate, Basingstoke 480, Units (29 tenants) 6.8 (6.0) 40,350,000 2,668, Sep-14 Medway Valley Park, Rochester 117, units (9 tenants) 4.6 (3.0) 9,250, ,

12 VAT The property has been elected for VAT purposes. It is the intention of the vendor to treat this transaction as a Transfer of a Going Concern (TOGC). PROPOSAL We are instructed to seek offers in excess of 13,500,000 (Thirteen Million Five Hundred Thousand Pounds) for the freehold interest, subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 7.72% and a low capital value of per sq ft, after normal purchaser s costs of 5.80%. FURTHER INFORMATION Further information can be downloaded from the property dataroom. Please contact GVA to arrange access. If you require any further information or wish to arrange an inspection please contact:- MARK BEAUMONT mark.beaumont@gva.co.uk TOM GOLD thomas.gold@gva.co.uk gva.co.uk/ FURTHER INFORMATION GVA is the trading name of GVA Grimley limited, conditions under which particulars are issued by GVA Grimley Limited for themselves, for any joint agents and for the vendors or lessors of this property whose agents they are, give notice that: (i) the particulars are set out as a general outline only for the guidance of intending purchases or lessors and do not constitute, nor constitute part of, an offer or contract. (ii) all descriptions, dimensions, references to condition and necessary permission for use and occupation, and other details, are given in good faith and are believed to be correct but any intending purchasers or tenants should not rely on them as statements or representations of fact but satisfy themselves by inspection or otherwise as to the correctness of each of them. (iii) no person in the employment of GVA Grimley Limited or any joint agents has any authority to make or give any representation or warranty whatever in relation to this property. (iv) all rentals and prices are quoted exclusive of VAT Reproduced by courtesy of the Controller of HMSO Crown Copyright reserved. Licence No If applicable, with consent of Chas E Goad, Cartographers, Old Hatfield, Geographers A-Z Map Co and/or The Automobile Association. For identification purposes only. March Designed & produced by Cre8te