South East Office Investment Opportunity RYDON HOUSE STATION ROAD FOREST ROW EAST GRINSTEAD RH18 5DW

South East Office Investment Opportunity RYDON HOUSE STATION ROAD FOREST ROW EAST GRINSTEAD RH18 5DW

INVESTMENT SUMMARY High quality well specified office investment totalling 22,216 sq ft* Single let office located in the South East providing good access to the M23 and M25 Let on a Full Repairing and Insuring lease for a term of 25 years from 25 April 1997 providing an unexpired lease term of 5.15 years Let as the headquarters premises of Rydon Group Ltd who are ascribed a strong D&B rating of 5A1 Current passing rent of 370,114 per annum equating to 16.66 per sq ft The lease benefits from a minimum uplift on 25 April 2017 to a rent of 408,635 per annum which the Vendor is to top up Freehold Site area of 1.53 acres (0.62 hectares) Attractive town centre car parking ratio of 1: 176 sq ft We are instructed to seek offers in excess of 4,350,000 (Four Million, Three Hundred and Fifty Thousand Pounds) for the freehold interest, subject to contract and exclusive of VAT. A purchase at this level reflects an attractive Net Initial Yield of 8.82% based on the topped up rent, assuming purchaser s costs of 6.56%, and a low capital value of 196 per sq ft. * In accordance with the new RICS Property Measurement (1st Edition) which incorporates the new International Property Measurement Standards (IPMS) 2 RYDON HOUSE STATION ROAD FOREST ROW EAST GRINSTEAD RH18 5DW

A1(M) LOCATION Forest Row is situated in East Sussex approximately 3.4 miles (5.6 km) south east of East Grinstead, 12.8 miles (20.6 km) east of Crawley and 33.4 miles (53.7 km) south of Central London. The town benefits from strong transport communications being situated on the A22 which provides direct access to East Grinstead and London to the north and Brighton and Eastbourne to the south. The M23 can be accessed via Junction 10, 9.7 miles (15.6 km) to the west and in turn provides direct access to the M25. East Grinstead has frequent rail links with London, providing regular services to London Victoria in an average journey time of 57 minutes. The station also provides services to Reading, London Gatwick, Southampton and Portsmouth. Forest Row is exceptionally well located for access to London Gatwick Airport which is situated only 12.2 miles (19.7 km) to LEEDS the west. London Gatwick Airport, the UK s second largest airport, served over 40 million passengers in 2016 handling flights to over 200 destinations across 74 countries. M62 MANCHESTER M6 STAFFORD NOTTINGHAM M1 BIRMINGHAM SITUATION M11 M40 OXFORD Rydon House is situated on Station Road approximately 200 metres to the east of Forest Row town centre. A footpath running parallel with the northern boundary of the site provides direct pedestrian access to the town centre. Station Road connects to the B2110 Hartfield Road which provides access to Forest Row town centre, the A22 and East Grinstead to the north providing access to the M23 and M25 and Royal Tunbridge Wells to the east M4 CARDIFF LONDON BRISTOL M25 M3 M5 EAST GRINSTEAD SOUTHAMPTON EXETER LONDON KINGSTON-UPON-THAMES WEYBRIDGE M3 CAMBERLEY CROYDON WOKING M20 M25 REIGATE Station Road is the established commercial location within Forest Row. Neighbouring office centres include Riverview Business Park and Forest Row Business Park while major industrial occupiers include Mid Sussex Timber. Forest Row additionally provides a wide range of retail and supermarket PETERSFIELD amenities for its commercial occupiers. GUILDFORD A3 M25 EPSOM GODSTONE REDHILL A21 DORKING FAREHAM M23 GODALMING A24 GATWICK J10 A264 HORSHAM A264 ROYAL TUNBRIDGE WELLS EAST GRINSTEAD J11 A22 BILLINGHURST SOUTH DOWNS NATIONAL PARK A24 HAYWARDS HEATH UCKFIELD 3 A23 M2 WATERLOOVILLE M23 A22 BOGNOR REGIS PORTSMOUTH TONBRIDGE BRIGHTON WORTHING A2 1 EASTBOURNE GATWICK AIRPORT J10 CRAWLEY ROYAL TUNBRIDGE WELLS EAST GRINSTEAD A22 FOREST ROW A2 6 J10a A 4 26 J11 RYDON HOUSE STATION ROAD FOREST ROW EAST GRINSTEAD RH18 5DW A2 A23 3 2 CROWBOROUGH

DESCRIPTION SITE AREA Rydon House comprises a purpose built 1980s office building providing 22,216 sq ft (2,064 sq m) of accommodation arranged over ground and two upper floors. The building was comprehensively refurbished in 2009 with an additional refurbishment of the first floor in 2013 and comprises well specified predominately open plan office accommodation. Rydon House is of brick construction around a concrete frame with a pitched slate roof and is raised above ground level on columns. Internally, the building has an impressive full height main entrance/reception area with ground, first and second floor office areas arranged over two wings around a centrally located core. The core provides an 8 person (630 kg) passenger lift, a central staircase with WC and kitchenette facilities on each floor. The specification includes: Suspended ceilings with recessed fluorescent strip lighting Solid floors with perimeter trunking Air conditioning The site comprises approximately 1.53 acres (0.62 ha). ACCOMMODATION The offices have been measured in accordance with the International Property Measurement Standards (IPMS 3) and provides the following floor areas: Description Area Area sq m sq ft Reception 40 431 Ground 713 7,676 First 757 8,147 Second 554 5,961 TOTAL 2,064 22,216 The property has also been measured in accordance with the RICS Code of Measuring Practice (6th Edition) confirming a Net Internal Area of 21,712 sq ft (2,017 sq m). 2 1 2 Mead ottage 1 ns Court Dale Cottages Sunny Vale 1 Medway Buildings 3 Path El Sub Sta STATION ROAD Double glazed steel framed windows Additional external covered fire escape stairwell Landscaped grounds 126 car parking spaces providing a generous car parking ratio of 1:176 sq ft The building offers the additional flexibility of subdivision, providing the potential for future multiple occupancy, as appropriate. TENURE Freehold. Interested parties should satisfy themselves with regards to Covenants on the title which refer to contributions to the council for future developments on the site as well as contributions for the upkeep of Station Road. Further information, including having sight of recent Counsel Opinion, is available on request. 16 AD 18 17 Car Park Cycle Hire Station (PH) Forester's Arms For indicative purposes only 4 RYDON HOUSE STATION ROAD FOREST ROW EAST GRINSTEAD RH18 5DW

TENANCY Rydon Group Ltd (1583757) The property is let in its entirety to Rydon Group Ltd on a Full Repairing and Insuring lease for a term of 25 years commencing 25 April 1997 expiring on 24 April 2022 providing approximately 5.15 years unexpired. The passing rent of 370,114 per annum, equates to 16.66 psf. The lease benefits from a rent review on 25 April 2017 to the higher of the open market rent or the passing rent increased annually at the rate of 2% per annum compounded. Therefore the minimum uplift will be to 408,635 per annum. The Vendor is proposing to top up the rent to this level until April 2017. The tenant is in full occupation. TENANT COVENANT Rydon Group Ltd has been based in Forest Row for almost 40 years where the property provides the companies purpose built Headquarter premises. Since its inception in 1978, Rydon has grown into a multi-faceted company employing over 600 people covering general contracting, refurbishment, regeneration, property maintenance and residential and commercial property development. Rydon Group Ltd has a Dun and Bradstreet rating of 5A1. Rydon Group Ltd have submitted the following financial accounts for the past three year period: 30 Sept 2015 30 Sept 2014 30 Sept 2013 ( 000 s) ( 000 s) ( 000 s) Turnover 228,755 165,951 128,486 Profit / (Loss) pre tax 11,854 1,532 4,210 Tangible Net worth 38,014 28,594 27,680 For additional information, please see www.rydon.co.uk. 5 RYDON HOUSE STATION ROAD FOREST ROW EAST GRINSTEAD RH18 5DW

MARKET OCCUPATIONAL COMMENTARY The South M25 office market has been characterised by very positive occupier confidence with take up for 2016, of circa 1.2 million sq ft. As a result availability of space across the region has fallen dramatically and limited speculative development in the pipeline is expected to generate strong rental growth over the next 5 years. As a result of the above, prime rental levels in the more established commercial areas of Redhill and Crawley are circa 31psf and 24.50psf respectively. Recent reductions in the supply of office accommodation as a result of the conversion of existing stock to residential has reduced the supply of office space to less than the 12 month average take up rate and as such some further rental growth is expected here in the short to medium term. Key regional occupational transactions are set out below: Building Area (sq ft) Tenant Rent ( psf) Lease term Date Salisbury House, Catteshall, Godalming 4 Tilgate Business Park, Brighton Road, Crawley RH11 9PT 182 High Street, Tonbridge, Kent TN9 1BE 12,748 25,627 6,432 The Book People OCS Group UK Ltd Charity Bank Limited 14.68 18.71 15.00 10 year lease 5 year break 15 year lease 7 year break 10 year lease 7 year break September 2016 August 2015 August 2015 MARKET INVESTMENT COMMENTARY The following represent the comparable investment transactions across the South East region: Building Tenants Rent pa Term Capital Value Capital Value Date (psf) (NIY) (per sq ft) Globe House, 618,000 7.31 to expiry 7.75m / IBM UK Limited 189 December 2016 Warwick Technology Park, Warwick ( 15.19) 3.92 to break 7.48% 240 Bristol Business Park 360,000 9.75 to expiry 4.626m / Qinetiq Limited 253 June 2016 Bristol ( 19.90) 4.75 to break 7.30% Ashdown House, 633,650 8.01m / ACE INA Services UK Limited 5.40 to expiry 234 April 2016 125 High Street, Crawley ( 19.39) 7.42% 31-33 Perrymount Road, 485,000 6.375m / Lloyds Bank plc 5.50 to expiry 212 April 2016 Haywards Heath ( 16.14) 7.13% 6 RYDON HOUSE STATION ROAD FOREST ROW EAST GRINSTEAD RH18 5DW

ENVIRONMENTAL Waterman Group have undertaken a Phase I Property Due Diligence Report dated March 2016. This Phase I survey provides a low to medium rating in relation to Environmental Risk. The report is capable of being assigned to the Purchaser. EPC The property has an EPC rating of D(78). A copy of the certificate is available upon request. VAT The Property is not elected for VAT purposes. PROPOSAL We are instructed to seek offers in excess of 4,350,000 (Four Million, Three Hundred and Fifty Thousand Pounds) for the freehold interest, subject to contract and exclusive of VAT. A purchase at this level reflects an attractive Net Initial Yield of 8.82% based on the topped up rent, assuming purchaser s costs of 6.56%, and a low capital value of 196 per sq ft. CONTACT For further information or to arrange an inspection of the property please contact: CHARLES HOWARD TOM COAKER LUKE BLYTHE charles.howard@cushwake.com tom.coaker@cushwake.com luke.blythe@cushwake.com 020 7152 5364 020 7152 5357 020 7152 5959 07810 631 409 07984 814 327 07793 808 510 43-45 Portman Square London W1H 6LY MISREPRESENTATION CLAUSE Cushman & Wakefield gives notice to anyone who may read these particulars as follows: 1. These particulars are prepared for the guidance only of prospective purchasers. They are intended to give a fair overall description of the property but are not intended to constitute part of an offer or contract. 2. Any information contained herein (whether in the text, plans or photographs) is given in good faith but should not be relied upon as being a statement or representation of fact. 3. Nothing in these particulars shall be deemed to be a statement that the property is in good condition or otherwise nor that any services or facilities are in good working order. 4. The photographs appearing in this brochure show only certain parts and aspects of the property at the time when the photographs were taken. Certain aspects may have changed since the photographs were taken and it should not be assumed that the property remains precisely as displayed in the photographs. Furthermore no assumptions should be made in respect of parts of the property which are not shown in the photographs. 5. Any areas, measurements or distances referred to herein are approximate only. 6. Where there is reference in these particulars to the fact that alterations have been carried out or that a particular use is made of any part of the property this is not intended to be a statement that any necessary planning, building regulations or other consents have been obtained and these matters must be verified by any intending purchaser. 7. Descriptions of a property are inevitably subjective and the descriptions contained herein are used in good faith as an opinion and not by way of statement of fact. The particulars were prepared in March 2016. Brochure by Mango 020 7060 4142