FREEHOLD OFFICE INVESTMENT LET TO NEWS CORP UK & IRELAND LTD (D&B 5A1) FLEET HOUSE, CYGNET ROAD, CYGNET PARK, PETERBOROUGH PE7 8FD

FREEHOLD OFFICE INVESTMENT LET TO NEWS CORP UK & IRELAND LTD (D&B 5A1) FLEET HOUSE, CYGNET ROAD, CYGNET PARK, PETERBOROUGH PE7 8FD

Investment Summary Peterborough, the largest city in Cambridgeshire is one of the fastest growing cities in the UK Cygnet Park is located in close proximity to the A1139 which in turn provides access to Junction 17 of the A1(M) The property is situated on Cygnet Park opposite a Tesco Extra Superstore, Serpentine Green Shopping Centre and within close proximity to local amenities and the city centre Fleet House offers modern office accommodation centred around a generous double height reception Freehold The property is let to News Corp UK & Ireland Ltd (D&B rating 5A1) producing 530,350 per annum, with an unexpired term of over 6 years to break and 10 years to expiry Offers are sought in excess of 6,417,000 subject to contract and exclusive of VAT. A purchase at this level would reflect a net initial yield of 7.75% after purchaser s costs of 6.64%, and a capital value of approximately 144 psf. 2

M1 M69 East Midlands Leicester M1 A43 A14 A1 A47 A605 Northampton M1 A14 A1(M) A1(M) Luton A47 PETERBOROUGH Cambridge M11 King's Lynn Stansted A47 A12 A11 A14 Ipswich Norwich A140 Felixstowe A43 A41 M40 M25 M25 London Heathrow M25 Not to scale. For indicative purposes only. Location Peterborough is the largest city in Cambridgeshire, situated in the heart of East Anglia. It is strategically located approximately 80 miles north of London, 77 miles east of Birmingham and 32 miles north of Cambridge. Peterborough has become established as an important regional centre for commerce, industry, shopping, health, education and leisure and benefits from a diverse economy, ranging from innovative small businesses to large global headquarters. Peterborough is rated 1st for UK city housing stock growth between 2014-2015. The city has a population of 194,000 (2015). and is ranked the 4th highest growing city in the UK between 2014-2015. (Source: Centre for Cities 2017 report). Peterborough is rising in prominence following continued investment, underpinned by the city s ambitions and new initiatives to support economic growth. Redevelopment plans include the 120 million regeneration of 20 acres of derelict land at Fletton Quays on Peterborough s South Bank, delivering new office, residential, restaurant, leisure and cultural opportunities. ROAD Peterborough benefits from its close proximity to the A1(M) motorway to the west of the city centre, which provides direct access to the national motorway network and the M25. The A1(M) serves as the principal connection between the south-east and the north-east of England. The A47 runs to the north of Peterborough which links west to the M1 and east to Norwich. RAIL Peterborough serves as a major interchange on the East Coast Main Line, which provides high-speed train services between London, Yorkshire, the north east and Scotland. The fastest journey time to London King s Cross is 45 minutes, while Edinburgh Waverley can be reached in 3 hours 30 minutes. Peterborough railway station also offers mainline rail links to Birmingham, Manchester, Leeds, Cambridge and Glasgow. AIR Luton Airport is 60 miles to the south west and Stansted Airport is 65 miles to the south east, with a direct train service to Stansted with an approximate journey time of 85 minutes. 3

LONDON ROAD N A47 Peterborough PETERBOROUGH A15 CITY CENTRE A47 A1260 OUNDLE ROAD OUNDLE ROAD OAD R D R D ROA A605 A605 PETERBOROUGH A1260 A1139 A605 A1 A1139 F F LETTON FLETTON ARKWAY P Y P Y PARKWA THE SERPENTINE CYGNET ROAD Cygnet Park The Hamptons A15 To A14 A605 A1(M) To London A15 LONDON ROAD Not to scale. For indicative purposes only. Situation Fleet House is situated in The Hamptons development immediately adjacent to the A15 which provides access to the A1139 dual carriageway 0.5 miles to the north. The A1(M) (Junction 17) is approximately 3 miles to the west of the subject property via the A1139. The Hamptons development covers more than 2,500 acres to the south west of Peterborough city centre. There has been approximately 5,200 new homes built, with plans to build up to a further 8,500 new homes over the next few years. Housing values have 'outperformed the local market over the last decade, achieving an annual average premium in the region of 34%' (RICS research 2015). A leisure facility is planned for the lake to the south of the subject property. Surrounding uses include a mixture of offices, restaurant, leisure, light industrial and retail. A Tesco Extra store anchors the Serpentine Green Shopping Centre that attracts more than 5.5 million visitors per annum and is situated immediately west of the subject property. Office occupiers in the immediate area include Barclaycard (Access PrePaid), Kelway (CDW), Mencap, Clydesdale Bank plc, and soon Associated British Foods in a 50,000 sq ft proposed new HQ. Hampton is also home to a Tesco Extra, Next, Mothercare, Top Shop, H&M, Boots and Costa. Close by the property is a Premier Inn Hotel, Harvester, Frankie & Benny's, Chiquitos, Bella Italia, Toby Carvery, KFC, Vivacity Premier Fitness, McDonalds and Dobbies Garden Centre. 4

THE PROPERTY Tesco/Boots/H&M/Topshop/Costa Serpentine Green Shopping Centre Dobbies Garden Centres Bella Italia Mercedes-Benz Kiddicare Associated British Foods (ABF) proposed HQ Vivacity Premier Fitness KFC Toby Carvery Chiquitos Harvester Mastercard For indicative purposes only. Krispy Creme Brewers Fayre Premier Inn McDonalds Frankie & Benny's Deafblind Kelway (CDW) 5

THE PROPERTY El Sub Sta THE SERPENTINE The Hampton Fleet House A 15 5 For indicative purposes only. Description The property was built in approximately 2001 and comprises an office with two wings over ground and first floors, linked by a generous central double height reception/mezzanine. The office accommodation has the benefit of air conditioning, suspended ceilings with inset lighting, aluminium double glazed windows and fully raised carpeted floors. The property has one 8 person 630 kg passenger lift with male, female, disabled WCs, kitchens and showers on both ground and first floors. The property occupies a site of 1.46 ha (3.60 acres). To the front of the building there are approximately 180 on-site car parking spaces which provide a ratio of 1:250 sq ft. Accommodation The property provides the following Net Internal Areas:.. Use Sq m Sq ft Ground Floor Reception (in link block) 77.96 839... Link block 167.50 1,802... Office 1,859.50 20,016 First Floor Link block/mezzanine 156.54 1,685... Office 1,859.50 20,016 TOTAL 4,122.34 44,372 Tenure Freehold 6

Tenancy The property is let by way of a full repairing and insuring reversionary lease to News Corp UK & Ireland Limited for a 10 year term from 24 June 2017 expiring on 23 June 2027. There is a tenant only break option on 23 June 2023 (with at least 6 months prior notice) giving over 6 years unexpired term remaining. The current lease expires on 23 June 2017. The passing rent is 530,350 per annum. However half rent is payable for the first year. The vendor will top up the rent from completion. There is a further 3 months rent free if the break is not exercised. The rent has been rebased from 571,500 per annum to 530,350 per annum in the revisionary lease, and is now set at 12.57 (assuming half rate on ground reception, ground and first link block). Tenant Covenant News Corp UK & Ireland Limited is a wholly owned subsidiary of News Corporation. Its main UK newspapers include; The Times, The Sunday Times and The Sun. News Corporation is a global leading publisher of English language newspapers with operations in the UK, US, Australia, Fiji, Papua New Guinea and across Europe and Asia. Other major newspapers in its holding company include new New York Post, The Wall Street Journal and the Dow Jones. News Corp have had representation in Peterborough since 1987, This building was pre let to them in 2002. Fleet House serves as the worldwide IT help desk, HR, Credit Control and Accounts office to News International. News Corp UK & Ireland Limited has a D&B rating of 5A1 and has published the following accounts: Year to Year to Year to... 28 June 2015 29 June 2014 30 June 2013... ( 000s) ( 000s) ( 000s) Sales Turnover 1,172,223 1,205,200 1,244,900 Profit / (Loss) Before Tax (34,022) (75,500) (75,300) Tangible Net Worth 623,991 628,300 492,600 Occupational Market Peterborough has an estimated office stock of circa 4.5 million sq ft. Office accommodation has fallen significantly as a result of Permitted Development Rights (PDR) which has seen the removal of many of the lower quality buildings from the market for conversion to residential. In the region of 600,000 sq ft (15% of Peterborough s total office stock) has been converted to residential since PDR were introduced. This has led to a sharp reduction in supply and an upward pressure on rents. There is approximately 300,000 sq ft of vacant space (a 6.5% vacancy rate) in Peterborough, with a limited supply of Grade A accommodation. Headline rents of 13.00 per sq ft are being regularly achieved on good quality Grade A / refurbished secondhand space. This is only set to continue and quoting rents are likely to increase to in excess of 14.00 per sq ft. Furthermore, rents required for design and build schemes are now in excess of 20 per sq ft due to rising build costs. 7

Investment Market Investor appetite for UK offices remains strong, encouraged by improving occupier markets and a shortage of good quality stock. This has been further exacerbated by the removal of stock for conversion to residential under permitted development rights. Date Property Address Size (sq ft) Sale Price Yield (NIY) Term Rent Cap Val Tenant Purchaser... Certain (per sq ft) (per sq ft) (Guarantor) Under Offer Carlyle House, Carlyle Road, 10,623 5,218,000 5.00% 3.50 26.23 419 Multi-let Believed to be under offer at... Cambridge (quoting) (quoting) better than asking Under Offer Sutherland House, Russell Way, 93,086 16,500,000 6.25% 14.50 11.82 177 Paymaster (1836) Ltd -... Crawley (quoting) (quoting) (Equiniti Group Plc) Under Offer One Emperor Way, Exeter Business Park, 20,748 4,740,000 6.50% 10.50 15.84 229 Exeter Business Park Confidential... Exeter (quoting) (quoting) Centre Limited (Regus) April 2017 4 Cyrus Way, Cygnet Park, 11,045 2,000,000 6.98% 5.50 13.45 181 Partners of Bulley Davey Cambridge City Council... Peterborough February 2017 Parkside House, Epsom 34,454 15,000,000 6.25% 5.00 24.75 435 Aon Benfield Epsom & Ewell Borough Council February 2017 West Point, Peterborough 177,621 25,100,000 7.25% 12.10 11.62 149 Thomas Cook Atlantic Leaf Properties January 2017 Globe House, Warwick Technology Park, 41,089 7,750,000 7.50% 7.00 15.19 188 IBM UK Ltd Local Authorities... Warwick Pension Fund November 2016 Oxfam HQ, Oxford Business Park 87,000 30,640,000 5.15% 8.50 19.75 350 Oxfam September 2016 3 Ely Road, Milton, 16,920 6,125,000 6.21% 9.00 23.64 362 Alcatel-Lucent Southampton Council... Cambridge Telecom Limited September 2016 Earlswood Court, Solihull 42,154 10,500,000 6.66% 9.9 17.70 250 Paragon Finance Plc Kent Community Health... NHS Foundation Trust 8

Asset Management Initatives Remove tenant only break Ability to split and re-let as multi-let offices should the tenant vacate Long term potential for conversion to residential/hotel, subject to necessary consents Possible intensification of site density through development EPC Rating The property has a rating of D97. VAT The property is elected to VAT. It is anticipated that the sale will be structured as a Transfer of a Going Concern. Proposal Offers are sought in excess of 6,417,000 (six million, four hundred and seventeen thousand pounds) subject to contract and exclusive of VAT. A purchase at this level would reflect a net initial yield of 7.75% after purchaser s costs of 6.64% and a capital value of approximately 144 psf. Further Information Should you have any queries or wish to make an inspection, please contact: Lucy Young DDI: 020 7297 6278 lucy.young@bidwells.co.uk Saul Western DDI: 020 7297 6275 saul.western@bidwells.co.uk Bidwells 25 Old Burlington Street London W1S 3AN Tel: 020 7493 3043 May 2017 9

Bidwells 25 Old Burlington Street London W1S 3AN Tel: 020 7493 3043 bidwells.co.uk IMPORTANT NOTICE RELATING TO THE MISREPRESENTATION ACT 1967 Bidwells LLP act for themselves and for the vendors of this property, whose agents they are, give notice that: These particulars do not form part of any offer or contract and should not be relied upon as statements or representatives of fact. Bidwells LLP have no authority to make or give in writing or verbally any representation or warranties in relation to the property. Any areas of measurements or distances are approximate. The text, photographs and plans are for guidance only and are not necessarily comprehensive. No assumptions should be made that the property has all necessary planning, building regulation or other consents. Bidwells LLP have not carried out a survey, nor tested the services, appliances or facilities. Purchasers must satisfy themselves by inspection or otherwise. In the interest of Health & Safety, please ensure that you take due care when inspecting the property. Bidwells LLP is a limited liability partnership registered in England & Wales (registered number OC344553). Registered head office is Bidwell House, Trumpington Road, Cambridge CB2 9LD, where a list of members is available for inspection.