& BRACKNELL BOULEVARD CAIN RD, BRACKNELL RG12 1WP

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1 PRIME THAMES VALLEY OFFICE INVESTMENT OPPORTUNITY

2 Prime Thames Valley Office Investment Opportunity BOULEVARD BOULEVARD INVESTMENT CONSIDERATIONS An opportunity to acquire two adjacent, well-located buildings in Bracknell, one of the major office locations in the Thames Valley. Excellent access to both the M and M as well as Heathrow Airport. Headquarters style office buildings of 2,25 sq ft and 50, sq ft, totalling, sq ft. Surrounded by high profile occupiers including Dell, Hewlett Packard, Vodafone and M. The offices offer attractive and versatile open plan accommodation constructed in 2000 and refurbished in 20. Large site with 5 car parking spaces providing an excellent ratio of :20 sq ft. Building One is let in its entirety to Wincor Nixdorf Ltd as their UK headquarters. Wincor Nixdorf relocated from Wokingham where they had been in occupation for over 0 years. They chose Bracknell from a short list of alternatives due to the quality of the building, the surrounding occupiers and ease of access. The ground floor of Building Two houses the UK headquarters for Technogym UK Ltd. AWULT of.0 years to expiry and. years to break on the let element of the property. Bracknell has followed the general South East office occupational market trend and has witnessed a significant recovery over the past months. Bracknell provides very favourable occupational costs relative to other Thames Valley locations. Furthermore, One Two Bracknell Boulevard offer competitively priced grade A office accommodation within Bracknell itself. Freehold. The current passing rent is 55,05 per annum reflecting a low average rent of. per sq ft. The vendor will also offer a guarantee package on the vacant accommodation taking the total rent to,2,0 per annum. Offers sought in excess of,25,000 (Fourteen million, two hundred and eighty five thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level equates to an attractive net initial yield of.50% and a low capital value of 200 per sq ft. 2

3 DONCASTER RD LOCATION COMMUNICATIONS Bracknell is one of the key towns within the Thames Valley and has grown to become an established office centre due to its proximity to Heathrow Airport and the M/M, a large skilled workforce and affordable rents. Bracknell has an affluent population of approximately,000. It also has a highly skilled workforce of which.% fall within the highest social grade of AB (Higher Intermediate Management/Admin/Professional), which is % above the UK average. This has attracted a number of national and international blue chip companies to base their offices in the town including M, Dell, Hewlett Packard, Wincor Nixdorf, Fujitsu, Waitrose, Panasonic, Honeywell, Vodafone and Johnson Johnson. The unemployment rate in the town is 2% lower than the national average and stands at.0%. The town benefits from excellent transport communications. It is located between the M (Junction 0) and the M (Junction ), with the (M) and A22 providing direct dual carriageway access to the town centre. Bracknell railway station provides a twice hourly direct service to London Waterloo. Reading station, close by, provides connections to London Paddington to the east, Cardiff/ Bristol to the west and Birmingham/Oxford to the north. Heathrow Airport, the world s second busiest airport, is easily accessed to the east via the M. Furthermore, both Gatwick and Luton airports are within an hour drive time, a contributing factor as to why Bracknell is popular with international companies. Amersham 5 High 5 Wycombe Watford M0 Beaconsfield 2 Harrow Marlow Uxbridge Maidenhead Henley Slough M Windsor Reading HEATHROW 0 Staines 5 0 Aldershot By Road from Bracknell Reading via (M) km 0 miles Heathrow Airport via /M 25 km 5 miles Central London via /M 5 km 2 miles Junction 0 of M km miles Junction of M 0 km miles By Rail from Bracknell Reading London Paddington (via Reading) London Waterloo (direct) Farnborough A M Woking 20 minutes 0 minutes 5 minutes 2 Brentford Airports from Bracknell Heathrow Airport 25 km 5 miles Gatwick Airport km miles Luton Airport km 5 miles A Weybridge M25 0 Leatherhead M Guildford Dorking A0 A2 2 Sutton 2 A Twickenham Kingston Epsom A0 A2 TO M VODAFONE HITACHI VODAFONE DELL CAIN ROAD (M) REFLEX (KNOWLEDGE ACADEMY, HONDA, NETGEAR) HEWLETT PACKARD M TO M TO TOWN CENTRE TO M > M [M] B0 THE COPPID BEECH HOTEL LONDON ROAD BEEHIVE RD B0 WOKINGHAM ROAD CAIN ROAD BERKSHIRE WAY WESTERN ROAD DOWNMILL RD OLDBURY RD DONCASTER RD A05 MILL LANE STONEY RD B0 THE PEEL CENTRE MARKET ST DOWNSHIRE WAY TOWN CENTRE REGENERATION THE RING BUS STATION M> THE RING CHURCH ROAD A22 A05 PARK ROAD M> SITUATION One and Two Bracknell Boulevard front Cain Road at the western end of the key office area in Bracknell. The town centre facilities and rail station are approximately. km (2. miles) to the east. Both offices are accessed via a secure barrier entry and form part of a site that includes Dell s European headquarters. Immediately opposite the property are the two well-known large campus offices for M and Hewlett Packard. The offices in this locality are low density offering more discrete occupation, have ample car parking and also give the quickest access to the M via John Nike Way / London Road, a key attraction for occupiers. The property is also close to a Vodafone campus (formally Cable Wireless headquarters), the Coppid Beech Hotel and the John Nike Leisure Centre. Bracknell is one of the key towns within the Thames Valley and benefits from excellent transport communications. TOWN CENTRE REGENERATION Bracknell town centre is undergoing a major redevelopment programme that is set to significantly enhance the town centre by providing 50,000 sq ft of new retail and leisure accommodation. The scheme is known as The Lexicon and is a joint venture between Legal General, Schroders and Bracknell Forest Council which is due to complete in Q2 20. The regeneration will improve the town centre and its amenities, significantly enhancing Bracknell s business and local community. More than 0% of the scheme is now pre let with anchor retailers in the scheme including: Fenwick 0,000 sq ft Waitrose,000 sq ft (now in occupation) Cineworld cinema Marks Spencer 0,000 sq ft River Island,200 sq ft HM 2,000 sq ft Primark 5,000 sq ft Various restaurants including Wagamama, GBK, Pizza Express, Carluccio s and Zizzi. 5

4 DESCRIPTION One and Two Bracknell Boulevard are grade A headquarters office buildings constructed in 2000 and refurbished in 20. Building One totals 2,25 sq ft (, sq m) over ground and first floor and Building Two totals 50, sq ft (, sq m) over ground and three upper floors. Both properties are of steel frame construction, below a pitched roof with slate covering and are clad with a combination of brick and glazed curtain walling. The floors in both properties are configured in L shapes with large, easily divisible floor plates and excellent levels of natural light. Both are headquarters style office buildings of 2,25 sq ft and 50, sq ft Building One (left) consists of an office building split over ground and first floor, which is fully occupied by Wincor Nixdorf Limited. The ground floor benefits from a large reception with a double height glazed entrance as well as an attractive staff restaurant. The tenant has also incorporated lab rooms within the ground floor office space where their products are tested. Building Two (below) consists of an office building split over ground and three upper floors. Technogym UK Limited occupy the ground floor office. The ground floor again benefits from a large reception with a double height glazed entrance. Technogym have fitted out part of their office space as a gym showroom where they give demonstrations of their products. The upper floors are vacant and benefit from divisible floor plates of up to 2,2 sq ft on each floor. SPECIFICATION Both buildings benefit from the following specification: Four pipe fan coil air conditioning system Raised floors with 0mm void LG PIR lighting Suspended ceilings Large refurbished reception areas person passenger Kone lifts (Building One x and Building Two x2) Male and Female WCs on each floor Disabled WCs Showers to each floor Bike racks Secure site with barrier There are a total of 5 car parking spaces providing an excellent ratio of :20 sq ft. Wincor Nixdorf have designated spaces stated within their lease and Technogym have 0 designated spaces within their lease. Wincor Nixdorf Restaurant Technogym Showroom Both buildings were refurbished in 20. Furthermore, the chiller in Building One has recently been replaced and upgrades to the air conditioning system in Building Two are due in the current service charge year. Wincor Nixdorf Reception

5 FLOOR PLANS First Floor Typical Floor SERVICE CHARGE The landlord runs an estate charge for the site and also an internal service charge for Building Two. For the year ending 0th September 20 it totalled 0,0. The budget for the year ending 0th September 20 is 0,2, representing.5 per sq ft for Building Two, excluding one off items of expenditure. Full details are available on the Lewis Ellis website. TENURE The property is held Freehold. ENERGY PERFORMANCE CERTIFICATE Both buildings have an EPC rating of (band C). A copy of these are available on the Lewis Ellis website. TENANCY ACCOMMODATION The property is currently let to two tenants as set out below and has an AWULT of.0 years to expiry and. years to break on the let accommodation. The floor areas have been measured on a NIA (Net Internal Area) basis in accordance with the RICS Code of Measuring Practice (th Edition). Building Demise Tenant Area sq ft (sq m) One Whole Wincor Nixdorf Ltd Two Ground First Technogym UK Limited 2,25 (,2.5) 2,0 (,.00) 2,2 (,.) Second 2, Vacant (,.) Third 2, (,.) TOTALS, (,.) Car Parking Spaces COVENANT INFORMATION Lease Start Lease End Break Date Rent Review Rent per annum (Rent per sq ft) /0/ 2/0/2 2/0/ 2/0/ 5,5 (.) 0 /0/ 2/0/2 2/0/ 2/0/ /0/ 20,5 (.00) 2,25 (.00) 5,2,0 Comments Half rent payable until 0/0/20 (vendor will top up). months rent free if break not exercised. The lease is excluded from the LT Act 5. Option to renew lease for 5 years from expiry. OMV rent review with collar of 2.5% and cap of %. months rent free if 20 break not exercised. months rent penalty if 2020 break exercised. Service charge cap of,20 pa (. psf) rising annually with RPI. months rent 2 months rates and service charge guarantee. Wincor Nixdorf Ltd is one of the world s leading providers of IT solutions and services to retail banks and the retail industry. They engage primarily in the sale, manufacture, installation and service of self-service tills and ATMs. The company has an established presence in around 0 countries around the globe and a total workforce of approximately,000 people. The company was founded in Germany in 52 and taken over by Siemans AG in 0. Wincor Nixdorf Ltd is a subsidiary company of Wincor Nixdorf AG and moved to Bracknell in 20 after relocation from Wokingham. Wincor Nixdorf Ltd is rated A by Dun Bradstreet, representing a minimum risk of business failure. Their most recent financial results are summarised below: Year Ending 0 September 20 0 September 20 0 September 202 Sales Turnover 0,005,000 5,25,000 0,,000 Profit / (Loss) Before Tax 5,2,000,,000 5,,000 Tangible Net Worth,05,000 0,5,000,2,000 SITE The property sits on a site of approximately.2 acres (. hectares) providing a low site cover of 2%. Technogym UK Ltd was founded in Italy in and has since launched various ranges of personal training gym equipment for strength training, cardiovascular training and home training. Over 5 million people regularly use Technogym equipment in over 00 countries around the world. Technogym was nominated official supplier for athletic training equipment at the Olympic Games in Sydney 2000, Athens 200, Beijing 200 and London 202 and has been announced as exclusive supplier for the 20 Olympics in Rio. Technogym UK Ltd is rated 2A by Dun Bradstreet, representing a minimum risk of business failure. Their most recent financial results are summarised below: Year Ending December 20 December 202 December 20 Sales Turnover 5,2,02 5,, 50,0,22 Profit / (Loss) Before Tax,0,00 5,5, 5,,0 Tangible Net Worth,0,5 5,,,2,

6 OFFICE MARKET Bracknell is a key M office centre and offers value in comparison to other Thames Valley locations. The lower occupational costs within Bracknell and excellent transport links have attracted major multi-national companies including Dell, Hewlett- Packard, Fujitsu, Waitrose, Panasonic, Vodafone, Johnson Johnson and Honda. The town has a total office stock of approximately 5.2 million sq ft and supply is currently at its lowest since 200 at approximately 0.m sq ft. Grade A space accounts for 50% of total supply and within this, office space falls within two categories; new/high quality space and refurbished space. M 2 5 Reading 5.00 M0 M 0 M25 2 Uxbridge Maidenhead.00 Slough 5.50 Bracknell Staines.00 Basingstoke.00 5 Guildford M Heathrow M25 Grade A Rents Date Property Tenant Headline Rent (psf) New grade A space in Bracknell is predominantly within Maxis 2, Capitol and Arlington Square. These buildings contain around 250,000 sq ft of available space and headline rents being achieved are currently in the region of 2.00 per sq ft. Headline rents on refurbished grade A office space are now in the region of.00 per sq ft -.50 per sq ft. Over the past three years there has been a significant reduction in availability of refurbished grade A space rather than new grade A space due to the competitive terms available. Occupiers recognise the appeal of having highly accessible grade A office buildings at a rental discount in comparison to other South East locations. Consequently comparable supply to One Two Bracknell Boulevard is diminishing and therefore, rents are now starting to increase and incentive packages shortening. No new office schemes are scheduled for development over the next 2- months within Bracknell and prime rents have been positively forecast to grow by 2.% per annum over the next five years. Term (break) Area (sq ft) Q 20 Inspired Sally Salon Services.50 5 (0) 25, INVESTMENT MARKET Bracknell has followed the general South East investment market trend and has witnessed a significant recovery over the past months. A marked improvement in the occupational market and the onset of rental growth has increased investor confidence within the town. Whilst both rents and yields in the most popular South East towns have significantly improved and the markets have become tight, Bracknell offers potential for higher returns via softer entry price yields with good prospects for rental growth. Bracknell prime investment yields have moved in over the last months to 5.5% -.00%. The below table highlights the most recent relevant investment transactions in Bracknell: Property Date Tenant AWULT Area (sq ft) Price Yield Price (psf) Purchaser Inspired On Market Multi-let (0% Vacant) 5. 5,.0m.0% 22 N/A The Arena Aug-5 JDA Software 2.,20 2.0m.% 2 CCLA 5 Arlington Square Jul-5 Paratus.,2.0m 5.% CCLA Reflex May-5 Multi-let.5 0,50 2.0m.2% CLS Holdings Viewpoint 2 Mar-5 Fujitsu. 5,00.0m.5% 220 Palm Capital One Thames Valley Feb-5 Multi-let 2.0 5,2.2m.% 0 Clearbell 2 The Arena Jan-5 IGE Energy 5.,2 5.m.00% 22 CCLA Q 205 Maxis Hi FX (5) 5,5 Q 205 Capitol Heat Software (5),00 Q 205 Capitol IHS (5) 2,5 Q2 205 Arlington Square Nokia 2.50 ( ),5 Q2 205 Capitol Kronos (5) 2,2 Q2 205 Maxis Morgan Lovell ,2 Q Arlington Square Lloyds Register (sub letting)..,22 Q 205 Reflex Knowledge Academy.50.5 (2.5),5 0

7 VAT The property is elected for VAT and it is proposed that the sale will be treated as a Transfer of a Going Concern. (TOGC). CAPITAL ALLOWANCES We understand that capital allowances may be available subject to negotiation. DATA ROOM There is a data room for the property with key tenancy information, title documents and EPC certificates. Access to it can be obtained via the Current Sales page on the Lewis Ellis website: FURTHER INFORMATION Should you require any additional information or wish to inspect the property please contact either: Matthew Brown Tel: Mob: mbrown@lewisellis.co.uk Jeff Ellis Tel: Mob: jellis@lewisellis.co.uk James Elkington Tel: Mob: jelkington@lewisellis.co.uk PROPOSAL We are instructed to seek offers in excess of,25,000 (Fourteen million, two hundred and eighty five thousand Pounds), subject to contract and exclusive of VAT for the freehold interest in the subject property. A purchase at this level equates to an attractive net initial yield of.5% and a low capital value of 200 per sq ft. Lewis Ellis LLP for themselves or nominees or lessors of this property whose agents they give notice that: () the particulars are set out as a general outline only for the guidance of the intending purchasers or lessees, and do not constitute part of an offer or contract; (2) all descriptions, dimensions, 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 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; () no person in the employment of Lewis Ellis LLP has any authority to make or give any representation or warranty whatever in relation to the property. February 20. Designed and Produced by Creativeworld. Tel: