hazelwick avenue, three bridges, CRAWLEY, rh10 1ex fully let office investment with potential for conversion to residential.

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1 Energy House & Pacific House hazelwick avenue, three bridges, CRAWLEY, rh10 1ex fully let office investment with potential for conversion to residential.

Investment Summary > Two Prime South East office buildings totalling 39,638 sq ft > Well located in Three Bridges, a major suburb of Crawley within 5 miles of Gatwick Airport > Situated within 500m

2 Investment Summary > Two Prime South East office buildings totalling 39,638 sq ft > Well located in Three Bridges, a major suburb of Crawley within 5 miles of Gatwick Airport > Situated within 500m of Three Bridges Station, with frequent fast train services to Central London, Gatwick Airport and the South Coast > Excellent local amenities including a 24 hour Tesco supermarket, Lidl and Iceland and nearby Town Centre > Fully let to EDF Energy and UK Power Networks with a WAULT of 3.61 years to expiry and 1.95 years to break > Tenants are committed to location, EDF also occupy an adjoining building > Current rent of 679,000 per annum equating to a low average rent of per sq ft > 151 car park spaces providing an excellent ratio of 1:263 per sq ft > Potential to re-gear leases or convert to residential to provide 60 apartments under permitted development > Large site affording the potential for future extension > Offers are sought in excess of 7,500,000 (Seven Million Five Hundred Thousand Pounds) subject to contract and exclusive of VAT reflecting a net initial yield of 8.50% assuming standard purchasers costs. Pacific House EDF Energy plc 13,373 sq ft Break 25/3/2019 Expiry 25/3/2024 Energy House UK Power Networks 26,265 sq ft Expiry 21/8/2020 fully let office investment with potential for conversion to residential.

Location/Situation Mill Rd Balcombe Rd Crawley is a key office location in the South West M25 region being the closest significant commercial centre to Gatwick Airport (3 miles away).

Three Bridges is a major suburb of Crawley and an important business location within the town lying 1.5 miles east of the town centre.

Energy and Pacific House are situated on the eastern side of Hazelwick Avenue in an established office location.

3 Location/Situation Mill Rd Balcombe Rd Crawley is a key office location in the South West M25 region being the closest significant commercial centre to Gatwick Airport (3 miles away). Located 32 miles south of London and 23 miles north of Brighton, the town lies adjacent to the M23 (between Junctions 10 and 11), providing excellent road access to the M25 and the south coast. Three Bridges is a major suburb of Crawley and an important business location within the town lying 1.5 miles east of the town centre. Three Bridges train station (located 500M to the South) is on the London to Brighton mainline, providing direct access to Gatwick Airport, London Victoria, London Bridge and the South Coast. Energy and Pacific House are situated on the eastern side of Hazelwick Avenue in an established office location. The location is enhanced by the proximity of many local retail and leisure amenities, including a 24-hour Tesco superstore and nearby retail facility housing Lidl and Iceland opposite the station. Reasons to invest in Three Bridges: > Affluent neighbourhood within Crawley > Unrivalled connectivity to Gatwick Airport > Excellent train links, being on the London/Brighton mainline > Fast and frequent journeys to London Victoria (36 min), London Bridge (39 min) and Croydon (23 min) > Highly affordable commercial rents > Strong demand for residential/pd conversions near to station > Respectable local amenity including Tesco Extra, Tennis Club, Football Club and town centre retail > Good accessibility to M23 and M25 by car > Frequent bus services to Crawley. Gatwick Rd To M25 10 A22 Warlingham Biggin Hill 9 Leatherhead Tadworth M23 A22 M25 M25 A217 Westerham 7 8 M25 6 Oxted Dorking Reigate Redhill A24 Wotton Salfords Norwood Hill Beare Green Horley Gatwick Airport Ockley Nutley A24 A264 A Three Bridges Crawley 10a Turners Hill Faygate A23 Warnham M23 11 Pease Pottage Godstone South Godstone A22 Edenbridge M23 Lingfield 9 East Grinstead Ashurst Wood Forest Row A22 5 To Crawley A2004 Crossways To Crawley Gatwick Rd Three Bridges Rd North Rd Chaucer Rd TESCO EXTRA CRAWLEY LAWN TENNIS CLUB THREE BRIDGES Haslett Ave E The Birches Hazelwick Ave Bycroft Way LIDL/ICELAND A2011 Grattons Dr Worth Park Ave Worth Rd Milton Mount Ave Energy & Pacific House B2036 B2036 Haywards POUND HILL Heathfield A2220 The Ridings M23 Turners Hill Rd Energy & Pacific House are located 500 meters from Three Bridges train station.

Description Energy House and Pacific House comprise two well configured office buildings situated on a 0.63 hectare/ 1.55-acre site.

Energy House totals 26,265 sq ft over ground and three upper floors and Pacific House totals 13,373 sq ft over ground and three upper floors.

accessed raised floors > LED or fluorescent lighting > Suspended ceilings > Double glazing > Air conditioning > Male and female WCs on each floor and Disabled WC on ground floor.

4 Description Energy House and Pacific House comprise two well configured office buildings situated on a 0.63 hectare/ 1.55-acre site. The buildings were developed in the late 1980 s under planning consent CR/595/85. Energy House totals 26,265 sq ft over ground and three upper floors and Pacific House totals 13,373 sq ft over ground and three upper floors. The buildings both benefit from recent upgrades and provide well specified office accommodation as follows: > Dedicated reception area > 800k lift to all levels (Energy House 2 x lifts) > Fully accessed raised floors > LED or fluorescent lighting > Suspended ceilings > Double glazing > Air conditioning > Male and female WCs on each floor and Disabled WC on ground floor. The tenant of Pacific House has recently completed an internal redecoration, including new ceilings in some areas and kitchen areas as well as re-painting/decoration. The buildings share a large car park located to the front and rear of the properties, a total of 151 parking spaces are provided (Energy House 100 spaces and Pacific House 51 spaces) providing a ratio of 1:263 per sq ft. Comprises two well configured office buildings on a 0.63 hectare/1.55 acre site.

Accommodation: The property has been measured in

Edition and provides the following Net Internal Area:

3 Ground 6,080 564.8 First 6,188 574.8 Second 6,774 629.

1 Sq ft Sq m Reception 366 34 Ground 3,201 297.

5 Accommodation: The property has been measured in accordance with the RICS Code of Measuring Practice 6th Edition and provides the following Net Internal Area: ENERGY HOUSE PACIFIC HOUSE Sq ft Sq m Reception Ground 6, First 6, Second 6, Third 6, Total 26,265 2,440.1 Sq ft Sq m Reception Ground 3, First 3, Second 3, Third 3, Total 13,373 1,242.4 Total 39,638 3,682

Tenancy: Energy and Pacific are fully let to two tenants UK Power Networks (67% of income) and EDF Energy PLC (33% of income) producing a rental income of 679,000 per annum equating to an average

Building Tenant Area Car Spaces Rent Passing Rent Passing Lease Start Lease Break Lease Expiry Next RR Comments (sq ft) ( pa) overall ( psf) Energy House UK Power Networks Services (South East)

6 Tenancy: Energy and Pacific are fully let to two tenants UK Power Networks (67% of income) and EDF Energy PLC (33% of income) producing a rental income of 679,000 per annum equating to an average rental of per sq ft. The property has an weighted average unexpired term of 3.61 years to expiry and 1.95 years to break. Building Tenant Area Car Spaces Rent Passing Rent Passing Lease Start Lease Break Lease Expiry Next RR Comments (sq ft) ( pa) overall ( psf) Energy House UK Power Networks Services (South East) Guarantor UK Power Networks Holdings Ltd 26, , /08/ /08/2020 Tenant not required to replace roof covering or Air Conditioning system on expiry Pacific House EDF Energy PLC 13, , /03/ /03/ /03/ /3/2019 T break on 9m notice - 6m rent free if not exercised Total 39, , Tenure: Shelter Pacific House The properties are held freehold, a copy of the registered title is available on request. Energy House Gatwick Stream 68.2m El Sub Sta For indicative purposes only. 63 Energy and Pacific House are fully let to UK Power Networks and EDF Energy.

7 Covenant: UK Power Networks Services (South East) Tenant of Energy House UK Power Networks is a distribution network operator for electricity covering South East England, the East of England and London. It manages three licensed distribution networks (Eastern Power Networks PLC, South Eastern Power Networks PLC and London Power Networks PLC) which together cover an area of square kilometres and approximately eight million customers. UK Power Networks Services (South East) - Tenant 12 months to 31/03/ months to 31/03/2016 Turnover 1,300,000 2,000,000 Pre-Tax Profit 700,000 6,200,000 Net profit (loss) ( 300,000) 4,500,000 Shareholders Funds 239,300, ,600,000 UK Power Networks Holdings Ltd Guarantor UK Power Networks Services (South East) immediate parent company is UK Power Networks Services Holdings Ltd, and the ultimate parent (and guarantor to the lease) being UK Power Networks Holdings Ltd. UK Power Networks Holdings Ltd - Guarantor 12 months to1/04/ months to 1/04/2016 Turnover 1,702,300,000 2,041,900,000 Pre-Tax Profit 542,300, ,100,000 Net profit (loss) 447,000, ,600,000 Shareholders Funds 1,466,400,000 1,382,300,000 EDF Energy PLC Tenant of Pacific House EDF Energy is an integrated energy company in the United Kingdom, with operations spanning electricity generation and the sale of gas and electricity to homes and businesses throughout the United Kingdom. It employs 14,908 people and handles 5.7 million customer accounts. EDF Energy PLC - Tenant 31/12/ /12/2015 Turnover 6,191,900,000 7,600,800,000 Pre-Tax Profit ( 59,800,000) ( 353,300,000) Net profit (loss) ( 28,100,000) ( 363,900,000) Shareholders Funds 2,697,300,000 2,971,300,000 EDF Energy Customers (trading as EDF Energy) is wholly owned by the French state-owned EDF (Électricité de France) and was formed in 2002 following the acquisition and mergers of SEEBOARD Plc (formerly the South Eastern Electricity Board), London Electricity Plc (formerly the London Electricity Board or LEB), SWEB Energy Plc (formerly the South Western Electricity Board) and two coal-fired power stations and a combined cycle gas turbine power station. In 2009, EDF Energy took control of the UK nuclear generator, British Energy, buying share capital from the government. This made EDF Energy one of the UK s largest generators, as well as the largest distribution network operator. Excellent security of income from major corporates UK Power Networks and EDF Energy.

8 Residential Market Commentary: Energy and Pacific House offer the potential for change of use to 60 residential apartments providing a combination of 1 bedroom and 2 bedroom apartments. > Permitted development consent has been granted under application reference CR/2018/0110/PA3 and CR/2018/0107/PA3 > Outstanding links to Central London, Croydon, Gatwick and the South Coast > Excellent local amenities including a 24 hour Tesco supermarket, Lidl, Iceland and nearby Town Centre of Three Bridges and Crawley > Nearby office conversions including Ocean House have achieved excellent sales rates reflecting between 350 per sq ft to 490 per sq ft depending on size, with strong demand and 50% being reserved on launch. > Potential for higher density or entire redevelopment of the site. Commercial Market Commentary: Crawley is home to several professional firms including PWC, Irwin Mitchell, RSM and Grant Thornton. In the outer Crawley market tenants are more diverse including engineering, mineral exploration, travel companies, aeronautics and defence and medical technology companies, including Thales, EDF, UK Power, Elekta, Virgin, Amey, Rockwell Collins and Varian. A key driver for these tenants is the proximity to Gatwick Airport. The wider Crawley and Gatwick market has a current built total office stock of approximately 4.8 million sq ft. Along with the wider South East occupational market, Crawley/Gatwick has witnessed a consistent level of take-up and diminishing supply which is likely to continue to drive increasing rental values moving forward. The ten year take-up average in Crawley/ Gatwick is approximately 120,000 sq ft, peaking in 2015 which saw almost 350,000 sq ft of take-up, dominated by the pre-lets to Virgin and Elekta. The dominant deal unit size nevertheless is within the 5,000 to 15,000 sq ft bracket, save for these large pre-lets. Current prime rents in the area are circa per sq ft, below is some example letting transactions: Property Date Area (sq ft) Tenant Term (Break) Headline Rent Astral Towers, Crawley Jun 17 1,372 sq ft IAGO Solutions 5 years (3 year break option) psf St Johns House, Crawley Mar 17 9,789 sq ft Grant Thornton 10 years (5 year break options) psf Origin 1, Crawley Jan 17 8,034 sq ft TUI Travel 10 years (5 year break option) psf First Point, Gatwick Jun16 8,152 sq ft HSBC 10 years (5 year break option) psf

Change of use to Residential Energy House ENERGY HOUSE - 40 Residential Units Second/Third Floor 1 bed - 2 person No of Units Total Area sq ft Average area sq ft 2 bed - 3 person Ground 10 5,630 563

9 Change of use to Residential Energy House ENERGY HOUSE - 40 Residential Units Second/Third Floor 1 bed - 2 person No of Units Total Area sq ft Average area sq ft 2 bed - 3 person Ground 10 5, bed/2 persons 5 2, bed/3 persons 3 1, bed/4 persons 2 1, FLAT 15 First Floor FLAT 13 FLAT 11 FLAT 16 [61m2] FLAT 18 [46m2] FLAT 20 2 bed - 4 person First Floor 10 5, bed/2 persons 5 2, FLAT 15 FLAT 13 FLAT 11 FLAT 16 [61m2] FLAT 18 [46m2] FLAT 20 2 bed/3 persons 3 1, bed/4 persons 2 1, Second Floor 10 6, bed/2 persons 5 2, FLAT 14 FLAT 14 FLAT 12 FLAT 12 Void FLAT 17 FLAT 17 FLAT 19 FLAT 19 2 bed/3 persons bed/4 persons 4 2, Ground Floor Third Floor 10 6, bed/2 persons 5 2, FLAT 5 FLAT 3 FLAT 1 FLAT 6 [61m2] FLAT 8 [46m2] FLAT 10 2 bed/3 persons bed/4 persons 4 2, Grand Total 40 23,293 FLAT 4 FLAT 5 FLAT 3 FLAT 1 FLAT 2 FLAT 6 [61m2] FLAT 7 FLAT 8 [46m2] FLAT 10 FLAT 9 FLAT 4 FLAT 2 Entrance FLAT 7 FLAT 9

Change of use to Residential Pacific House First, Second & Third Floor PACIFIC HOUSE - 20 Residential Units No of Units Total Area sq ft Average area sq ft FLAT 9 [62m2] FLAT 6 [66m2] 1 bed - 2

10 Change of use to Residential Pacific House First, Second & Third Floor PACIFIC HOUSE - 20 Residential Units No of Units Total Area sq ft Average area sq ft FLAT 9 [62m2] FLAT 6 [66m2] 1 bed - 2 person FLAT 19 [62m2] Ground 5 3, bed/4 persons 2 1, bed - 4 person 1 bed/2 persons 3 1, FLAT 8 FLAT 18 First Floor 5 3, FLAT 10 FLAT 7 [56m2] FLAT 20 2 bed/4 persons 2 1, bed/2 persons 3 1, Second Floor 5 3, bed/4 persons 2 1, bed/2 persons 3 1, Ground Floor Third Floor 5 3, bed/4 persons 2 1, bed/2 persons 3 1, FLAT 4 [62m2] FLAT 1 [62m2] Entrance FLAT 14 [62m2] Grand Total 20 12,185 FLAT 3 FLAT 13 FLAT 5 FLAT 2 [56m2] FLAT 15

EPC: Energy House = E122 VAT: Data Room: Proposal: Pacific House = D76 The property is elected for VAT, it is envisaged the transaction will be treated as a TOGC.

Permitted Development information Offers in excess of 7,500,000 (Seven Million Five Hundred Thousand Pounds) subject to contract and exclusive of VAT.

11 EPC: Energy House = E122 VAT: Data Room: Proposal: Pacific House = D76 The property is elected for VAT, it is envisaged the transaction will be treated as a TOGC. Access to a data room is available for interested parties, the contents include: > Title information > Lease information > Service Charge > Existing Plans > Residential Plans > Permitted Development information Offers in excess of 7,500,000 (Seven Million Five Hundred Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 8.50% and a capital value of 190 per sq ft after deducting full purchaser s costs. fully let office investment with potential lease re-gear or conversion to residential

Investment Considerations: Further information > Excellent accessibility to the national motorway network via the M23 and Gatwick Airport 5 miles away.

12 Investment Considerations: Further information > Excellent accessibility to the national motorway network via the M23 and Gatwick Airport 5 miles away. > 500 metres from Three Bridges Station providing frequent fast journey times to London of approximately 35 minutes. > Diverse local amenities including 24-hour Tesco, Lidl and Iceland. > Two well configured buildings, suitable for single let or multi let occupation as well as conversion to residential. > Both buildings are fully occupied, thus good potential for future occupation beyond current lease break and expiry dates as well as opportunities to re-gear leases. > Low rental base of per sq ft offering potential for growth. > Strong tenant covenant profiles. > Prior approval consent granted for 60 apartments. > Attractive yield profile. > Crawley is a well established and bouyant office market. Peter Flanders peter.flanders@joinercummings.co.uk John Blackwell john.blackwell@joinercummings.co.uk Tel: Disclaimer Notice Messrs Joiner Cummings for themselves and (and their joint agents where applicable) 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 for the guidance of the intending purchasers and do not constitute part of an offer or contract; (ii) all descriptions, dimension references to condition and necessary permissions for use and occupation and other details are given in good faith and are believed to be correct, but are given without responsibility and any intending purchasers or tenant should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the correctness of them; (iii) all plant, machinery, equipment, services and fixtures and fittings referred to in these particulars were present at the date of preparing these particulars, they have not however been tested and therefore we give absolutely no warranty as to their condition, operation or fitness for the purpose of an intending occupier or purchaser; (iv) no investigations have been undertaken by Joiner Cummings in respect of asbestos, issues concerning pollution and potential land, building, air or water contamination and any intending purchasers or tenant must satisfy themselves by inspection; (v) unless otherwise stated, all prices rents and other charges are quoted exclusive of Value Added Tax (VAT) and any intending purchaser or tenant must satisfy themselves as to the incidence of VAT in respect of any transaction; (vi) no person in the employment of Joiner Cummings has any authority to make or give any representations or warranty whatever in relation to this property; (vii) no responsibility can be accepted for any expenses incurred by intending purchasers in inspecting properties which have been sold, let or withdrawn. The date of this publication is April createwithimpact.com (E5810/WH)

SOUTH EAST FREEHOLD OFFICE INVESTMENT LET TO EDF ENERGY PLC ATLANTIC HOUSE HAZELWICK AVENUE CRAWLEY RH10 1QQ

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