NCP KINGSGATE Crawley RH10 1EN Freehold Town Centre Car Park investment with Annual Rent Increases

NCP KINGSGATE Crawley RH10 1EN Freehold Town Centre Car Park investment with Annual Rent Increases

Investment Summary 496 space modern multi-storey car park. Positioned in a central retail location within Crawley. The car park is let to NCP Limited (D&B: 5A2) for a term of 25 years from 29th June 2002 on FRI terms. Unexpired lease term of approximately 10.75 years. The current rent is 287,535.06 per annum, equating to 580 per space. 50% of the rent is reviewed annually to RPI, capped and collared at 1.5% and 5% respectively. 50% of the rent is subject to 3% annual increases. Freehold. Offers in excess of 4,000,000 reflecting a net initial yield of 6.75% after allowance of purchasers costs of 6.54%. Page 2

Location The property is located in Crawley town centre, the leading commercial centre in West Sussex. Crawley is situated approximately 35 miles south of Central London and 20 miles north of Brighton. Crawley s wider catchment area includes Horley, Gatwick, Redhill, Dorking, Horsham and East Grinstead. The M23, accessed at junction 10 via the A2220, runs just to the East of Crawley and provides access to the M25 to the north and Brighton to the south. Crawley is served by three rail stations. The Town Centre station is within 500m of the property and provides regular services into London and to the South Coast. Gatwick Airport is located just to the north of the town and is the UK s second busiest airport. The presence of Gatwick is hugely important to Crawley, contributing to the commercial and industrial success of the town. Situation NCP Kingsgate Crawley is situated at the corner of Queensway and College Road on the east side of Crawley town centre, just to the north of Memorial Gardens. The property is at the eastern end of the Queensway retail pitch adjacent to TK Maxx, Argos, Sainsbury and Marks & Spencer. Other retailers in close proximity include Superdrug and Decathlon, which has just opened. County Mall Shopping Centre and Queens Square are within a three minute walk. On the opposite side of College Road is Central Sussex College. To the north of the property are the offices of Crawley Borough Council. Crawley Demography & Economy Crawley is a growing commuter town, with a population of 111,599 within a 3 mile radius and a wider catchment population of 510,000. Crawley is estimated to have a shopping population of 214,000. By 2019 the town is projected to see above average population growth with the population with a 3 mile radius rising to 117,630. There is significant residential development planned in the town centre, with 372 residential units in the pipeline currently. The retail catchment is also expected to grow as 5,000 additional homes are planned across the borough over the next 15 years. M3 Woking Guildford A281 Petworth HEATHROW AIRPORT A3 Cranleigh Billingshurst Arundel Epsom M25 Banstead Leatherhead Sutton LONDON Dorking Reigate Redhill Horley A24 GATWICK AIRPORT Horsham Stormington Henfield Steyning Worthing A27 CRAWLEY A272 GATWICK EXPRESS 11 Croydon Catterham 7/8 10 A23 Cuckfield English Channel Burgess Hill Hassocks Brighton Oxted Lingfield A22 East Grinstead Haywards Heath M25 A26 Lewes A264 Uckfield Newhaven M26 Sevenoaks A21 Tonbridge Royal Tunbridge Wells 94,200 people work in the borough with Crawley having an employment rate of 76.3%, the eighth highest rate in the UK in 2015. Crawley is at the centre of the Gatwick Diamond, one of the strongest local economies in the country and an area of significant growth. With Gatwick Airport being at its heart and Heathrow Airport less than an hour away the Gatwick Diamond has excellent inter connected infrastructure of air, road and rail and sea transport that connects it to London and the UK, Mainland Europe and the rest of the world. A second run way at Gatwick Airport would bring significant additional benefits to Crawley and the local area including an estimated 28,000 new jobs. Page 3

Crawley Borough Council Offices The Boulevard NCP Car Park Central Sussex College Queensway Queens Square Memorial Gardens The Martlets County Mall Crawley Station Page 4

Description The property comprises a multi storey car park of steel framed construction on 10 levels. Vehicular access and egress is gained from Queensway. There are 8 levels of covered parking and two open levels, 9 and 10. Each parking level comprises pre-cast concrete floors and roof slabs connected by way of intermediary vehicular ramps. At levels 1 and 2, a brick and block enclosure provides staff office and customer care offices. A brick and block work enclosed concrete stairwell is located at the northern and southern ends of the property, each incorporating two lifts. Accommodation Level Spaces 1 48 2 35 3 54 4 50 5 54 6 50 7 53 8 50 9 52 10 50 Total 496 Included within the total 496 spaces are 20 disabled spaces, 6 family spaces, 3 staff spaces and 3 taxi spaces. Tenure Freehold Tenant Information National Car Parks is the United Kingdom s largest and longest standing private car park operator, with over 150,000 spaces across more than 500 car parks. National Car Parks Limited is a Dun and Bradstreet 5A2 rated company. A copy of the D&B report is available on request. Financial highlights from the last three years accounts is set out below: 2015 2014 2013 Turnover 198,736,000 199,933,000 197,411,000 Profit/(Loss) 14,859,000 9,435,000 (12,871,000) Tangible Net Worth 156,973,000 141,754,000 131,137,000 Net Current Assets (Liabilities) 157,852,000 144,122,000 133,762,000 Tenancy The property is let to National Car Parks Limited for a term of 25 years from the 29th June 2002 on full repairing and insuring terms. There are approximately 10.75 years unexpired. The current rent is 287,535.06 per annum. On the 29th June every year, 50% of the passing rent is subject to a 3% increase and the remaining 50% is subject to an increase reflecting the RPI movement between February of the previous year and February of the review year subject to a minimum increase of 1.5% per annum and a maximum increase of 5% per annum. A second lease exists with Gala, the adjacent Bingo operator. This lease, which expires in 2021, gives Gala the the right to use car spaces on levels 7, 8, 9 and 10 between 6pm and 12am. There is no rent payable under this lease and the tenant does not benefit from security of tenure. Page 5

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VAT The property is elected for VAT purposes and it is envisaged the sale of the property will be treated as a TOGC (Transfer of a going concern). Proposal Offers invited in excess of 4,000,000, subject to contract and exclusive of VAT. A purchase at this level provides an initial yield of 6.75%, net of purchaser s costs of 6.54%. A table of comparible evidence is available upon request. Investment Considerations Long term income stream with guaranteed annual rental increases Let to the UK s largest and best known car parking operator Modern car park popular with both shoppers and workers Crawley town centre is set to benefit from substantial regeneration over the coming years The existence of Gatwick Airport just to the north of the town is hugely positive for the local economy and benefits of construction of a 2nd run way will be substantial The yield will rise annually as shown below: Year Yield at RPI collar of 1.5% June 2017 6.90% 6.96% June 2018 7.06% 7.18% June 2019 7.21% 7.40% June 2020 7.38% 7.63% June 2021 7.55% 7.87% June 2022 7.72% 8.12% June 2023 7.89% 8.38% June 2024 8.07% 8.64% June 2025 8.26% 8.91% June 2026 8.45% 9.19% *BNP Paribas /Oxford Economics forecast. Yield at forecast RPI average of 3.27%* If, as is forecast, RPI exceeds 1.5% pa over the next decade, the investor will enjoy significantly higher returns. Oxford Economics and BNP Paribas combined forecast is for RPI to grow at an average rate of 3.27%pa over the next decade. BNP Paribas Real Estate 5 Aldermanbury Square London EC2V 7BP www.realestate.bnpparibas.co.uk Further Information For further information or to arrange a viewing, please contact: Richard Talbot-Williams Tel : +44 (0) 20 7338 4244 Mob: +44 (0) 7795 114684 richard.talbot-williams@bnpparibas.com Oliver Judd Tel : +44 (0) 20 7338 4188 Mob: +44 (0) 7468 471193 oliver.judd@bnpparibas.com Misrepresentation Act 1967: BNP Paribas Real Estate Advisory & Property Management UK Limited for themselves and for the vendor(s) or lessor(s) of this property whose agents they are, give notice that: 1. these particulars do not constitute, nor constitute any part of, an offer or contract. 2. None of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact. 3. Any intending purchaser or lessee must satisfy himself by inspection or otherwise as to the correctness of each of the statements contained in these particulars. 4. The vendor(s) or lessor(s) do not make or give and neither BNP Paribas Real Estate Advisory & Property Management UK Limited nor any person in their employment has any authority to make or give any representation or warranty whatever in relation to this property. Finance Act 2013: Unless otherwise stated all prices and rents are quote exclusive of VAT. The Business Protection from Misleading Marketing Regulations 2008: These details are believed to be correct at the time of compilation but may be subject to subsequent amendment. October 2016 Produced by Barbican Studio: +44(0) 20 7634 9574