Tanshire ParkELSTEAD, SURREY GU8 6LB

MULTI-LET SOUTH EAST OFFICE INVESTMENT

Tanshire ParkELSTEAD, SURREY GU8 6LBTanshire Park

ELSTEAD, SURREY GU8 6LB

2

OAK HOUSE

CAFE PAVILION

ASH HOUSE ELM HOUSE

Tanshire ParkELSTEAD, SURREY GU8 6LB

AN ESTABLISHED OFFICE PARK IN ELSTEAD, SURREY,

SITUATED IN STUNNING COUNTRYSIDE, WITH QUICK

ACCESS TO GUILDFORD, THE A3 MOTORWAY AND THE

HINDHEAD TUNNEL.

3

INVESTMENT SUMMARY

• SoutheastbusinessparkwithstrongcommunicationlinksviatheA3andM25.

• Threemoderninterconnectingofficebuildingsandcafépaviliontotalling3,556.98sqm(38,287sqft).

• Freehold.

• Potentialchangeofusetoresidential,subjecttonecessaryplanningconsents.

• 262carparkingspacesprovidinganexcellentratioof1:146sqft.

• Thetotalgrossallinclusiverentis£1,084,143.41

• Thecurrentnetpassingrentis£688,738.25perannumhavingdeductedratesandservicechargecosts(equatingtoalowaveragerentof£17.98psf).

• Weareinstructedtoseekoffersinexcessof£7,700,000reflectinganattractivenetinitialyieldof8.45%,subjecttocontract.

• Reversionaryyieldof10%.

• Lowcapitalvalueofonly£201psf.

Tanshire ParkELSTEAD, SURREY GU8 6LB

Reading

Basingstoke

Bracknell

Guildford

ELSTEAD

A33

A322

A320

M4

M4

A329(M)

A3

M3

M3

A31

A31

A331

A323A325

A3390

M25

M3

Godalming

Milford

Haslemere

Farnham

Woking

Camberley

Wokingham

Farnborough

J2/J12

J10

J11

J3

J10

J11

J4

J6

J5

J4a

ELSTEAD

Milford

Eashing

HurtmoreShackleford

Peper Harow A3

MILFORD RO A D ELST EAD ROAD B3001

SH

ACKLEFORD ROAD

ELST EAD ROAD

LOM BARD STREET

RIVER WEY

Tanshire Park

LOCATIONElsteadislocatedwithinthecountyofSurreyapproximately8km(5miles)eastofFarnham,11.2km(7miles)southwestofGuildfordand64km(40miles)southwestofCentralLondon.

TanshireParkhasexcellentroadcommunicationlinks,beingonly1.5milesfromtheA3trunkroad,accessedviatheB3001.TheA3providesfastandeasyaccesstoGuildford(9minutes),theM25(J10)andthenationalmotorwaynetworktothenorthandPortsmouthtothesouth.

MainlinerailservicestoLondonWaterlooareavailableatGuildford,GodalmingandFarnhamwithafastestjourneytimeof39minutesfromGuildfordstation.Heathrowairportislocatedapproximately29milesnorthoftheproperty.

SITUATIONThepropertyissituatedonthewestsideofShacklefordRoad,closetothejunctionwithMilfordRoad(B3001)andimmediatelytotheeastofElsteadvillage.

COMMUNICATIONS

DESTINATION DISTANCE DURATION

A3 1.5 miles 5 mins

Guildford Station 7 miles 9 mins

M25 (J10) 15 miles 20 mins

Heathrow Airport 29 miles 33 mins

Note:Allmapsareprovidedforidentificationpurposesonly

TO GUILDFORD/M25

TO PORTSMOUTH4

Tanshire ParkELSTEAD, SURREY GU8 6LB

EXIT

TO MILFORD ROAD (B

3001)

& A3

OAKHOUSE

ASHHOUSE

ELMHOUSE

PAV

ILIO

N

SHACKLEFORD ROADEN

TR

AN

CE

FLOOR SQ M SQ FT

OA

K

HO

USE

Ground 434.41 4,676

First 433.96 4,671

Second 312.34 3,362

SUBTOTAL 1,180.71 12,709

ASH

H

OU

SE

Ground 606.85 6,532

First 575.72 6,197

Second 364.37 3,922

SUBTOTAL 1,546.93 16,651

ELM

H

OU

SE

Ground 362.14 3,898

First 374.30 4,029

SUBTOTAL 736.44 7,927

PAVILION Ground 92.9 1,000

TOTAL 3,556.98 38,287

DESCRIPTIONTanshireParkisacomprehensivelyrefurbishedbusinessparkcomprisingthreeselfcontainedinterconnectingofficebuildingsandacafépavilionwithinasiteofapproximately3.69acres.TheParkhasatotalof262allocatedcarparkingspacesprovidinganexcellentratioof1:146sqft.

ACCOMMODATIONVailWilliamshavenotmeasuredtheproperty;thefollowingnetinternalfloorareashavebeensuppliedbythevendor.

5

Tanshire ParkELSTEAD, SURREY GU8 6LB

CAFÉ PAVILION

Thebuildingcomprisesasinglestoreystructureofbrickelevationsbeneathapitchedtiledroof.Theaccommodationincludesafunctionroom,barandkitchen,partitionedmeetingroom,office,WCs,showerandchangingrooms.Thecaféoverlooksabowlinggreenwithaterraceandhas6allocatedcarparkingspaces.

OAK & ASH HOUSE

Thebuildingsarearrangedoverthreestoreysandcomprisebrickandtilehungelevations,beneathpitchedtiledroofs.

ThelandlordhasundertakenacomprehensiverefurbishmentofbothOakandAshHousethatincludedtheM&E.Thesepropertiesnowbenefitfromthefollowing:

• GradeAspecification• Impressivedoubleheightatria• SuspendedceilingwithrecessedLG7lighting• Raisedfloors• Airconditioningbasedonthelatestvariablerefrigerantflowsystem

• Doubleglazing• PassengerliftwithinOakHouse(DDAcompliant)• Autosensinglightstoeachfloor• Fibrebroadbandconnectivity• WCsoneachfloor• AshHousehas117allocatedparkingspaces• OakHousehas87allocatedparkingspaces

SPECIFICATION

ELM HOUSE

Thebuildingwasoriginallyadetachedcottagewhichhasbeenextendedovergroundandfirstfloors.Theexternalelevationstotheoriginalpartarebargatestonebeneathapitchedtiledroofandthelatterextensionisofbrickandtilehungelevations.

• SuspendedceilingwithrecessedLG7lighting• Partraisedfloorsandperimetertrunking• Airconditioning• Doubleglazing• Fibrebroadbandconnectivity• WCsoneachfloor• 52allocatedparkingspaces

6

7

TENANCY SCHEDULEThepropertyisletto19tenantsonaninternalrepairingbasisatagrossrentof£1,084,143.41.Thevendorprovideswater,heatingandelectricitytothebuilding,alongwithbusinessrates,repairstotheexteriorandstructureandcleaningtocommercialareas.Thecurrentnetpassingrentis£688,738.25aftertheseservicecosts.

FLOOR/SUITE SQ M SQ FT TENANT LEASE

STARTLEASE END BREAK REVIEW RENT

PSF NET RENT CAR SPACES COMMENTS

OA

K H

OU

SE

Ground floor 223.43 2,405 Goodyear Blackie Herrington LLP 01/09/11 31/08/16 (T) 01/09/14 None 17.50 £42,087.50 14 Deposit of £12,859.20. Break not exercised. #

Ground floor 210.98 2,271 McMichen Brooks Dental Care Limited* 20/06/11 19/06/31

(T) 20/06/16, 20/06/21, 20/06/26

20/06/16, 20/06/21, 20/06/26

17.00 £38,607.00 15 RPI linked service charge reviewed annually. Deposit of £10,219. #

First floor A 324.98 3,498 Deepwater EU Limited* 19/12/11 18/12/21 (T) 19/12/16 19/12/14 - 19/12/16 14.00 £48,972.00 17 Fixed uplift to a net rent of £55,988 on 19/12/14. RPI linked service charge determined at

the fifth and every subsequent anniversary. Deposit of £11,197.60. #

First floor B 108.98 1,173 Oliver Bell & King LLP 25/09/13 28/02/16 (T) 28/02/16 None 19.25 £22,580.25 7 RPI linked to gross rent reviewed annually. Deposit of £7,038. #

Second floor 312.34 3,362 Boss Projects LLP 01/03/10 28/02/20 (T) 01/03/18 None 21.00 £70,602.00 34 RPI linked to gross rent reviewed annually. Deposit of £26,822.83. Boss Corporate Ltd have a lease from 01/03/15 at a rent of £21 psf. #

SUBTOTAL 1,180.71 12,709 87

AS

H H

OU

SE

Ground floor 133.32 1,435 Ascom Network Testing Limited*

25/12/13 24/12/18 None 29.00 £41,615.00 6 RPI linked to service charge reviewed annually. Deposit of £2,400. #

Ground floor 402.92 4,337 04/05/10 24/12/18 25/12/13 21.50 £93,245.50 30 Deposit of 27,864.54. #

Ground floor 70.61 760 Tanshire Holdings 5

First floor 528.06 5,684 The Pelican Buying Company Limited* 11/03/11 10/03/21 (T) 11/03/16 11/03/15 -

11/03/16 16.00 £90,944.00 50 Fixed uplift to a net rent of £96,628 on 11/03/15. RPI linked service charge reviewed annually. Deposit of £25,578. #

First floor 47.66 513 Baker & Co Solicitors 23/01/12 22/01/15 None 18.50 £9,490.50 4 Deposit of £3,078. #

Second floor area 1, 2, 3 364.37 3,922 Oliver Bell & King LLP 28/02/13 27/02/18 (T) 28/02/16 01/01/17 18.00 £70,596.00 22 Fixed uplift to a gross rent of £113,738 on 01/01/17. The net rent will be circa £74,518.

Deposit of £21,179. #

SUBTOTAL 1,546.93 16,651 117

EL

M H

OU

SE

Suite B2 23.69 255 Vacant 2 Currently in detailed discussions with a potential tenant at a net rent of £5,100.

Suite C 18.12 195 Meeting room 1

Suite D 12.54 135 Supertrust Limited 16/08/12 15/08/15 None 21.00 £2,835.00 1 Deposit of £890. #

Suite E 33.63 362 Nicholas John Lahey-Bean 08/09/14 07/09/17 (T) 08/02/15 None 17.00 £6,154.00 3 Deposit of £2,027. Rolling break up to 08/02/15 giving not less than 3 months’ notice; thereafter on any anniversary of the lease. #

Suite F, G 47.29 509 Chamberlains 01/10/14 30/09/17 (T) 01/10/15 - 01/10/16 None 18.00 £9,162.00 5 Deposit of £2,850. Chamberlains have an agreement for a lease from 01/10/14 at a net rent

of £18 psf until 30/09/17. RPI linked to gross rent reviewed annually. #

Suite A, B1, H, J 226.87 2,442 Proactive Prosthetics Limited 16/07/12 15/07/17 (T) 16/07/15 16/07/15 16.00 £39,072.00 13 Fixed uplift to a gross rent of £61,000 on 16/07/15. The net rent will be circa £40,293.

Deposit of £7,500. #

Suite L 26.76 288 Dance News Limited 11/09/12 10/09/15 None 18.00 £5,184.00 3 Deposit of £1,612.80. #

Suite M 28.61 308 (UTI) Meirion Edwards 01/11/13 31/10/16 (T) 01/11/15 None 20.00 £6,160.00 3 RPI linked to gross rent reviewed annually. Deposit of £10,450. #

Suite N 191.47 2,061 ODB Group Limited 09/10/12 09/10/17 (T) 09/10/15 None 19.00 £39,159.00 11 Tenant contributes to business rates. #

Suite O 103.12 1,110 Delia Joan Orme 01/09/12 31/08/20 (T) 29/09/17 29/09/15 - 29/09/17 16.00 £17,760.00 7 RPI linked rent reviews. Deposit of £5,200.#

Suite P 15.51 167 Elizabeth Anne Carroll t/a Brockington Car 07/03/13 06/03/16 (T) 07/03/15 None 21.50 £3,590.50 2 Deposit of £979.18. #

Suite Q 8.83 95 Globalcad 22/07/13 21/07/16 (T) 22/07/15 None 18.00 £1,710.00 1 Deposit of £100. #

SUBTOTAL 736.44 7,927 52

PAVILION 92.90 1,000 Chameleon 01/06/14 31/05/19 (T) 01/06/17 None 4.00 £4,000.00 6 Deposit of £500. Chameleon contributes to 50% of the rates and electrical costs. #

Short term car park income £25,212.00 The income reduces per year as follows: 2015: £12,879 2016: £7,667 2017: £4,667.

This does not run into perpetuity.

TOTAL 3,556.98 38,287 £688,738.25 262* Contribute to a service charge and business rates separately which are reviewed annually. # Outside the Landlord and Tenant 1954 Act.

Tanshire ParkELSTEAD, SURREY GU8 6LB

COVENANT STRENGTHTanshireParkisletto19tenantson21separateleases.Anumberofthetenantshavebeeninoccupationpriortocommencementoftheircurrentleases.AscomNetworkTestingLtdandODBGroupLtdhavebeeninoccupationsince2000.

ThePelicanBuyingCompany(02367432)andBossProjectsLLP(OC325628)represent23%ofthecurrentnetpassingrent.Asummarydetailingbothcovenantsissetoutbelow.

COMPANY EQUIFAX RATING 2014

TURNOVER (GBP 000)

PRE-TAX PROFIT (GBP 000)

NET WORTH (GBP 000)

COMMENTS

Boss Projects LLP

B Very Good 55,602 7,712 1,406 Accounts dated 31/03/13

Pelican Buying Company

B Very Good 6,261 534 1,895 Accounts dates 31/12/12

The Pelican Buying Company(PelicanProcurementServices)ThePelicanBuyingCompanyprovidesprocurementservicestoorganisationsinordertodelivercostsavings,operationalefficienciesandpurchasingcontrol.PelicanhaverecentlysignedapartnershipwithMiddlesboroughFootballClub.

Boss Projects LLP

BossProjectsLLPwasincorporatedin2005withaviewtoprovidingspecialistsub-contractingservicestooperativesfromconstruction,social,healthcareandotherspecialistindustries.

PLANNINGThepropertyisadministeredbyWaverleyBoroughCouncil.Thepropertymaypotentiallybeconvertedtoresidential,subjecttonecessaryplanningconsents.Thecounciliscurrentlyreviewingthedeliveryofhousingwithintheareainordertofacilitateafurther8,460homesby2031.Elsteadisoneoffourvillagesrecommendedtoberemovedfromthegreenbeltwithinthenewlocalplan.Existingplansforaresidentialconversionofthesiteareavailablewithinourdataroom.

SITE MANAGEMENT/ SERVICE CHARGEThetotalgrossallinclusiverentpaidbythetenantsis£1,084,143.41.Thelandlordisliableforthebusinessratesinrelationtothemajorityoftheleases.In2014thelandlord’sliabilitytotals£191,961.75.

Thelandlordisalsoresponsibleforrepairstotheexteriorandstructureofthebuilding,alongwiththepaymentoftheservicechargeinrelationtothemajorityoftheleases.Thetotalcurrentservicechargeshortfallis£206,248.40pa.Copiesofthelastthreeyears’detailedservicechargeaccountsareavailableinourdataroom.

BrooksDentalCareLtd,DeepwaterEULtd,AscomNetworkTestingLtdandthePelicanBuyingCompanyLtdallpayabaserent,plustwoadditionalrents,whichistheircontributiontowardstheservicechargeandratesliability.Theothertenants’leasesarestructuredasasinglegrossrentalpayment.

8

Tanshire ParkELSTEAD, SURREY GU8 6LB

INVESTMENT MARKETThesoutheastofficemarketcontinuestoshowsignsofstronginvestorconfidence,drivenbytheweightofmoneyandthelimitedamountofprimestockonthemarket.Investordemandremainsfocussedforwelllet,secureassetsandinvestmentswithassetmanagementopportunitiesexhibitingshorterincomeprofiles.

Ascheduleofrecentmarkettransactionsarelistedbelow:

DATE ADDRESS SQ FT TENANT TERM CERTAIN

PRICE YIELD CAPITAL VALUE PSF

Under Offer Newplan House, Surrey 23,100 Multi-let 4.25 £6.6 m 6.53% £285

July 20147 Roundwood Avenue, Stockley Park

38,840 Fiserv Ltd 3.75 15.75 m 7.73% £405

April 2014Hollywood House, Woking

43,440 Multi-let 4.8 £15.28 m 6.44% £346

March 2014Ashcombe House, Leatherhead

17,340 Multi-let 3.8 £4.36 m 7.40% £251

OCCUPATIONAL MARKETElsteadprovidesflexiblealternativeaccommodationtoadjacentofficemarketsofGuildfordandWoking,foroccupierswishingtobenefitfromstrongcommunicationlinksviatheA3andM25.ThemostrecentlettingsontheBusinessParkhaveachieved£21psf,whichsuggestssignificantvaluerelativetoGuildford(£26psf)andWoking(£27psf).

ThecurrentshortageofGradeAaccommodationhasmadeTanshireParkadesirableandcompetitiveofficelocation.Ascheduleofrecentmarkettransactionsarelistedbelow:

DATE ADDRESS SQ FT TENANT RENT PSF

December 2013 Tanshire Park 1,435 Ascom £29.00

December 2013 Tanshire Park 4,337 Ascom £21.50

October 2013 Orion Gate, Woking 33,000 Yum Brands £27.00

March 2013 Ranger House, Guildford 10,494 Ubisoft £26.00

9

Tanshire ParkELSTEAD, SURREY GU8 6LB

INVESTMENT RATIONALE• GradeAmulti-letsoutheastofficeinvestment.

• Strongreversionarypotentialwithcurrentnetrentalincomeachieving£21psf;thecurrentaveragerentis£17.98psf.

• Opportunityforachangeofusetoresidential,oralternativelyadevelopmentofafourthofficebuildingoverthecafépavilion/bowlinggreen,subjecttonecessaryplanningconsents.

• Potentialtomigratealltheleasestofullyrepairingandinsuring.

• Additionalcarparkingspacesarerentalisedtoprovidethefollowingincomeprofile;2014:£25,212,2015:£12,879,2016:£7,667,2017:£4,667.Thisincomedoesnotrunintoperpetuity.

• Opportunitytoincreasetherunningyieldbylettingthevacantunit.

TENUREFreehold.

VATThepropertyisregisteredforVAT,weanticipatethetransactionqualifyingasaTOGC.

EPCOakHouse:B-50

AshHouse,groundfloor:B-43

AshHouse,firstandsecondfloors:B-50

ElmHouse:C-74

CaféPavilion:D-81

PROPOSALWeareinstructedtoseekoffersinexcessof£7,700,000(sevenmillion,sevenhundredthousandpounds),subjecttocontractandexclusiveofVAT.Apurchaseatthislevelreflectsanattractivenetinitialyieldof8.45%andalowcapitalvalueof£201psf,assumingpurchaser’scostsof5.8%.

MISREPRESENTATION ACT 1967 VailWilliamsasforthevendorsthemselvesgivenoticethat:1)Theseparticularsdonotconstituteanoffer,orcontractoranypartthereof.2)ThestatementscontainedintheparticularsaremadeingoodfaithbutareissuedwithoutresponsibilityonthepartofVailWilliamsorvendorsandarenottoberelieduponasstatementsorrepresentationsoffact.3)Intendingpurchasersorlesseesmustsatisfythemselvesbyinspectionorotherwiseastothecorrectnessofeachofthestatementsmadeherein.4)Thevendordoesnotmakeorgive,norisVailWilliamsoritsstaffauthorisedtogive,anyrepresentationorwarrantyinrespectoftheproperty.5)AllnegotiationsaresubjecttocontractandexclusiveofVATunlessotherwisespecificallystated.September2014

MARK SHERWOOD msherwood@vailwilliams.com0203589005707771984262

TOBY YATES tyates@vailwilliams.com0203589008907881500995

VailWilliamsLLP7-10ChandosStreetCavendishSquareLondonW1G9AJ

VIEWING AND FURTHER INFORMATIONStrictlybyappointmentthroughthesoleagents:

ForaccesstothedataroompleaseemailChloeMoran:cmoran@vailwilliams.com

10