THORPE WOOD HOUSE THORPE WOOD, PETERBOROUGH, PE3 6WT LONG INCOME OFFICE INVESTMENT OPPORTUNITY WITH GUARANTEED UPLIFTS

THORPE WOOD HOUSE THORPE WOOD, PETERBOROUGH, PE3 6WT LONG INCOME OFFICE INVESTMENT OPPORTUNITY WITH GUARANTEED UPLIFTS

2 11.3 YEARS UNEXPIRED WITH GUARANTEED UPLIFTS LET TO A UK UTILITY COMPANY WITH A D&B RATING OF 5A 1 INVESTMENT SUMMARY Peterborough is an established office location in Cambridgeshire and one of the fastest growing cities in the UK. Thorpe Wood House is strategically located within close proximity of the city s ring road system and A1(M) north-south trunk road. 65,405 sq ft of headquarters office accommodation arranged over 4 floors. 346 car parking spaces providing an excellent ratio of 1:190 sq ft. Freehold. Entirely let to Anglian Water Services Ltd (D&B Rating 5A 1). Long unexpired lease term of circa 11.3 years. Income of 1,057,995 per annum ( 16.18 per sq ft) with a guaranteed increase to 1,226,507 per annum ( 18.75 per sq ft) in December 2023. The 2023 rent review is to the higher of the Open Market Rent or 3% per annum increases compounded 5 yearly. Offers are sought in excess of 13,250,000 (Thirteen Million Two Hundred and Fifty Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level would reflect a Net Initial Yield of 7.5% on the topped up income and a capital value of 203 per sq ft assuming purchaser s costs of 6.72%. Assuming the minimum guaranteed uplift in December 2023, the running yield will increase to 8.7%.

a Liverpool M57 M18 M62 M56 Sheffield M53 Colwyn Bay THORPEWOODHOUSE Chester Wrexham Skegness M1 M6 Nottingham Stoke-on-Trent Grantham Derby LOCATION A15 M1 A141 A1(M) M6 Coventry Northampton Bury St Edmunds Cambridge Bedford Newmarket Ipswich Milton Keynes M40 Colchester M1 Luton Oxford Aylesbury High Wycombe Swindon Maidenhead M4 Reading Map not to scale. For indicative purposes only. Basingstoke A37 Stevenage A1(M) M11 M25 Salisbury Taunton 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 thebournemouth principal Exeter between the south-east and the north-east of England. connection The A47 runs to the north of Peterborough which links west to the M1. Chelmsford London M25 Southend-on-Sea Heathrow M3 Guildford Winchester Stansted M1 M23 M3 M5 Torquay Lowestoft Thetford A10 A14 M1 Cheltenham Weston-super-Mare Norwich PETERBOROUGH A47 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 smallworcester businesses to large global headquarters. The city has been recognised as one of the fastest growing cities in the UK by population and has outpaced the rest of the country Hereford in housing stock growth (Cities Outlook 2017). Peterborough is rising in prominencegloucester following continued investment, underpinned by the city s Merthyr Tydfil ambitions and new initiatives to support economic growth. The Council s emerging Local PlanM5makes BLACKWOOD Cwmbran provision for 27,625 new homes and 22,024 new jobs Caperphilly by 2036. Redevelopment plans include the 120 M4 million regenerationnewport of 20 acres of derelict land M4 at Fletton Quay s on Peterborough s South Bank, M5 Bristol delivering Cardiff new office, residential, restaurant, leisure A4 and cultural opportunities. Bath A47 Leicester Birmingham Brecon King s Lynn A1 Telford Peterborough is a cathedral city in Cambridgeshire, situated in the heart of East England. The city is strategically located approximately 80 miles north of London, 77 miles east of Birmingham and 32 miles north of Cambridge. ROAD 3 M56 Crawley Maidstone M20 Royal Tunbridge Wells RAIL Southampton M27 Peterborough serves as a major interchange on the East Coast Main Line, which provides high-speed inter-city trainbrighton services between London, Yorkshire, the North East and Scotland. The fastest journey time to LondonEastbourne King s Cross Portsmouth is 45 minutes, while Edinburgh Waverley can be reached in 3 hours 30 minutes. Newport Peterborough railway station also offers mainline rail links to Birmingham, Manchester, Leeds, Cambridge and Glasgow. Dover Folkestone AIR Luton Airport is 60 miles to the south 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.

4 SITUATION Thorpe Wood House is situated on Thorpe Wood Road, providing excellent access to the city s ring road system (A1260) which connects to junction 17 of the A1(M) motorway via the A1260 and A1139. The property is also a short distance from Junction 15 of the A47 dual carriageway which provides direct access to the A1(M) and M1 to the west. Thorpe Wood is an established and highly accessible out of town office location, situated approximately 3 miles to the west of Peterborough city centre and the train station. Nearby occupiers include Travelex, Churchill Insurance and Haines Watts Accountants, among others. The area also benefits from a Virgin Active Health Club and Nene Park, a 2,535 acre country park offering a range of recreation facilities including two golf courses. A16 MARHOLM A47 A15 THORPEWOODHOUSE A47 PETERBOROUGH STATION PETERBOROUGH A1139 A47 A1139 A1260 A1 J17 A1139 A1(M) Map not to scale. For indicative purposes only. LONDON

5 DESCRIPTION Thorpe Wood House is a self-contained L-shaped headquarters office building constructed in the 1980s. The property totals 65,405 sq ft of office accommodation arranged over ground and three upper floors. The building is of concrete frame construction with cavity brick elevations incorporating steel framed glazing along the length of each floor beneath a flat roof. There are 346 car parking spaces set amongst landscaped surroundings with an independent access drive. This equates to a car parking ratio of 1:190 sq ft. The building was extensively refurbished in 1998 and the specification now includes: Four pipe fan coil air conditioning Suspended ceilings Recessed lighting Floor to ceiling height of approximately 2.7 metres 150mm raised floors Two third height glazing to exterior walls Three 12 person passenger lifts serving all floors and a 250kg goods lift SITE AREA The site area extends to approximately 4.65 acres. ACCOMMODATION The property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) and provides the following net internal areas: Floor Description Sq Ft Sq M Third Offices 14,495 1,346.6 Second Offices 16,532 1,535.8 First Offices 16,822 1,562.8 Ground Offices 15,653 1,454.2 Ground Stores 654 60.8 Ground Reception 1,249 116.0 Total 65,405 6,076.1

7 TENURE Freehold. TENANCY The property is let in its entirety to Anglian Water Services Ltd on a reversionary lease from 24th June 2014 expiring on 23rd June 2028 providing an unexpired term of approximately 11.3 years. The lease contains upward only rent reviews on the 25 December 2018 and 25 December 2023 to the higher of the Open Market Rent or the rent prior to review increased by 3% per annum compounded. The current passing rent is 912,636 per annum which is guaranteed to rise to 1,057,995 per annum ( 16.18 per sq ft) at review on 25 December 2018 and COVENANT 1,226,507 per annum ( 18.75 per sq ft) at review on 25 December 2023, assuming a minimum 3% per annum compounded increase. The vendor will top up the passing rent to the minimum increase in passing rent of 1,057,995 per annum at review in December 2018. The tenant has been in occupation of the building for nearly 20 years having first occupied in 1998 and then signing a reversionary lease in 2008. They have invested considerably during their occupation to maintain the property to an excellent standard. Anglian Water Services Limited supply water and water recycling services to approximately six million domestic and business customers in the east of England and Hartlepool. The company supplies and transports water across an area of 27,500 sq km, making it the largest water and water recycling company in England and Wales by geographic area. Anglian Water Services Ltd is the regulated entity that trades as Anglian Water and is the principal business of Anglian Water Group Limited. Anglian Water Services Limited D&B: 5A 1 Anglian Water Services Limited have a D&B rating of 5A 1 which represents a minimum risk of business failure. Their accounts for the last three years are as follows: 31 Mar 2016 31 Mar 2015 31 Mar 2014 Sales Turnover 1,185,400,000 1,244,300,000 1,214,000,000 Profit / (Loss) Before Taxes 192,200,000 160,700,000 352,400,000 Tangible Net Worth 2,885,000,000 3,318,500,000 1,085,900,000 Net Current Assets (Liabilities) ( 143,600,000) 343,200,000 515,500,000

8 SOUTH EAST 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. Demand is particularly strong for long, 10+ year income which offers a relatively high yield compared to other asset classes. Thorpe Wood House offers this opportunity, let to a strong covenant with long term income and a very attractive income yield. Key Investment Transactions: Date Property Address Town Sale Price Yield (NIY) Term Certain Rent (per sq ft) Cap Val (per sq ft) Tenant (Guarantor) Purchaser Available Sutherland House, Russell Way Crawley 16,500,000 6.25% 14.50 11.82 177 Paymaster (1836) Ltd (Equiniti Group Plc) - Available Trinity House Ashford 5,550,000 6.50% 12.00 18.50 266 Kent Community Health Nhs Trust - Available Henderson House Huntingdon 4,690,000 6.50% 11.50 15.23 220 Anglian Water Services Ltd - Under Offer One Emperor Way, Exeter Business Park Exeter 4,740,000 6.50% 10.50 15.84 229 Exeter Business Park Centre Limited (Regus) Confidential Jan-17 Westpoint Peterborough 25,100,000 7.29% 12.10 11.62 149 Multi-Let Atlantic Leaf Sep-16 Elmbrook House Sunbury 7,160,000 6.25% 9.80 24.50 368 The A & A Group Limited Spelthorne Borough Council Sep-16 Earlswood Court Solihull 10,500,000 6.66% 9.90 17.70 249 Paragon Financial Plc Nottingham City Council May-16 800 The Boulevard, Capability Green Luton 15,000,000 6.07% 13.70 18.43 304 Mpellam Holdings Ltd (Blue Arrow Ltd) Tritax

9 EPC The property has an EPC rating of F (146). Certificate available upon request. An EPC Rating Improvement Report states that if tenant works in the order of 130,000 are carried out to the lighting, the EPC rating will improve to D (100). A full copy of this report is available upon request. VAT The property is elected for VAT. PROPOSAL We are instructed to seek offers in excess of 13,250,000 (Thirteen Million Two Hundred and Fifty Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level would reflect a Net Initial Yield of 7.5% on the topped up income and a capital value of 203 per sq ft assuming purchaser s costs of 6.72%. Assuming the minimum guaranteed uplift in December 2023, the running yield will increase to 8.7%. CONTACT DETAILS For further information, or to arrange an inspection, please contact: Savills 33 Margaret Street, London W1G 0JD James Emans 020 7409 8132 jemans@savills.com Tory Richardson 020 7075 2853 trichardson@savills.com Bidwells 25 Old Burlington Street, London W15 3AN Andrew Groves 020 7297 6274 andrew.groves@bidwells.co.uk Lucy Young 020 7297 6278 lucy.young@bidwells.co.uk Bidwells LLP and Savills PLC 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 and Savills PLC 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 and Savills PLC 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. Designed and Produced by Savills Commercial Marketing: 020 7499 8644 March 2017

A SALE ON BEHALF OF: