PROJECT BLUE. Office Investment Opportunity. Windsor Court, Simpson House & Windsor House, Harrogate HG1 2PW. savillsprojectblue.

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1 PROJECT BLUE Windsor Court, Simpson House & Windsor House, Harrogate HG1 2PW savillsprojectblue.com Office Investment Opportunity

2 PROJECT BLUE Investment Considerations XXXXXXXXXXXXXXXXXXXXXXX n Attractive multi let period office building and courtyard office development in popular spa town n Rare opportunity to purchase a substantial town centre freehold asset with a strong residual land value n Immediate asset management opportunities including letting the vacant accommodation and reconfiguring space n Excellent spread of income and tenant risk n Total net internal floor area of 10, sq m (112,902 sq ft) n A generous car parking provision of 368 surface level car spaces providing a ratio of approx. 1:28.50 sq m (1:307 sq ft) n Low capital value of 105 per sq ft. n Price: 11,850,000 Net Initial Yield: 8.59% Reversionary Yield: 13.81% n The above price assumes a vacant rates and service charge top up for a period of two years. Location The attractive spa town of Harrogate is located 16 miles north of Leeds and 21 miles west of York. The town has excellent road communications being located on the A61. The A59 provides a direct route to the A1(M) to the east of the town. Harrogate is well served by the rail network being on the Leeds/ York commuter line with regular services to both destinations and connections to London King s Cross and Edinburgh with a fastest journey time to London of approximately 2 hours 25 minutes. Situation The property is situated at the junction of Cornwall Road and Clarence Drive in a prominent location within Harrogate overlooking the Valley Gardens, approximately half a mile to the west of the town centre. The surrounding area is characterised by mostly large residential properties and the former Royal Bath Hospital on Cornwall Road. The town s closest airport is Leeds Bradford International which serves approximately 2 million passenger per year. There is a district population of approximately 166,000 people and the town attracts a further 1.5 million tourists each year and another 500,000 conference visitors to the Harrogate International Conference Centre. Crown Copyright 2010 Based on Ordnance Survey. Not to Scale - For Identification Purposes Only. Crown Copyright 2010 Based on Ordnance Survey. Not to Scale - For Identification Purposes Only.

3 PROJECT BLUE Description Windsor House comprises an attractive period building providing approximately 77,167 sq ft of net office space on basement, ground and five upper floors. The building was originally constructed in circa 1900 as a hotel but was converted to office use in the early 1970 s. The property is of stone construction with a part slate mansard/part flat roof and is built around a central light well. The building is set in attractive landscaped surroundings and overlooks The Valley Gardens. Internally the offices are split into various suites ranging from circa 100 sq ft to 15,000 sq ft and are fitted out to a good specification incorporating suspended ceilings, integral lighting and some comfort cooling in parts (fitted as tenant s improvements). The property benefits from 273 surface level car spaces at a ratio of 1:26.24 sq m (1:282 sq ft). Windsor Court comprises a modern development of 11 three storey office buildings within a courtyard setting providing approximately 35,784 sq ft of net internal office accommodation. Built in 1991 adjacent to Windsor House the self contained offices vary in size and have suspended ceilings with recessed lighting, perimeter trunking, central heating, double glazing and small self contained kitchen facilities. Simpson House was built in 2004 to a more modern specification having full access raised floors, suspended ceilings with recessed lighting and a passenger lift. The property benefits from 95 surface level car spaces at a ratio of 1:35 sq m (1:377 sq ft). Accommodation The property provides the following net internal areas; Windsor House Level Use Net Internal Floor Area One Offices 7,231 sq ft Two Offices 7,229 sq ft Three Offices 12,596 sq ft Four Offices 12,877 sq ft Five Offices 12,908 sq ft Six Offices 13,086 sq ft Seven Offices 11,191 sq ft Total 77,118 sq ft Windsor Court Unit Use Net Internal Floor Area Grand Total One Offices 3,940 sq ft Two Offices 2,071 sq ft Three & Four Offices 5,017 sq ft Five Offices 2,581 sq ft Six Offices 3,879 sq ft Seven Offices 1,998 sq ft Eight Offices 2,017 sq ft Nine & Ten Offices 4,033 sq ft Simpson House Offices 10,248 sq ft Total 35,784 sq ft 112,902 sq ft Crown Copyright 2010 Based on Ordnance Survey. Not to Scale - For Identification Purposes Only.

4 PROJECT BLUE Tenure Freehold. Site Area The site extends to a total area of approximately 2.02 Hectares (4.99 Acres) Tenancies Windsor House The property is heavily multi-let on 47 leases to 43 tenants, who represent a mixture of covenant strengths from Kinetic Worldwide Limited and Neoss Ltd down to several local companies and small businesses. The majority of the leases expire between 2010 and 2013, and there are a number of longer term expiries between 2014 and 2017 which have tenant break options within the next 2 years. The current total rent passing is 633,333 per annum which reflects an average rent of per sq ft excluding car parking. We believe the market rent for the property is 1,180,000 per annum reflecting per sq ft on the external facing space, per sq ft on the inward facing space and 600 per car parking space. The vendor will provide a vacant rates and service charge guarantee for a period of 2 years. There are a number of office suites available to let throughout the building of varying sizes totalling approximately 35,000 sq ft. Windsor Court The property is let in accordance with the attached tenancy schedule and in summary is let to seven tenants on leases expiring between 2013 and The leases also incorporate a number of tenant break options. The current total rent passing is 442,621per annum, which reflects an average rent of per sq ft excluding car parking. We believe the market rent for the property is 550,350 per annum reflecting per sq ft for Simpson House, per sq ft on the courtyard units and 600 per car parking space. There are currently two vacant units totalling 5,820 sq ft. The vendor will provide a vacant rates and service charge guarantee for a period of 2 years. Combined Rental Income The total current income is therefore 1,075,954 per annum and we believe that the current combined rental value is in the order of 1,730,350 per annum. Tenant Covenants Windsor House Kinetic Worldwide Limited have a D&B rating of 2A1 which represents a minimum risk of business failure. At 31st Dec 2009 the company had a turnover of m, pre tax profit of 5.145m and a tangible net worth of 3.239m. The Nostrum Group Limited have a D&B rating of 2A1 which represents a minimum risk of business failure. At 31st Dec 2008 the company had a turnover of 528,389, a pre tax profit of 13,612 and a tangible net worth of 1,744,711. Neoss Limited have a D&B rating of 2A2 which represents a lower than average risk of business failure. At 30th Nov 2009 the company had a turnover of m, pre tax loss of ( 3.931m) and a tangible net worth of 5.119m. Salzgitter Mannesmann (UK) Limited have a D&B rating of 2A2 which represents a lower than average risk of business failure. At 31st Dec 2008 the company had a turnover of m,a pre tax profit of 33,354 and a tangible net worth of 2.280m. Windsor Court Baker Tilly Management Limited have a D&B rating of 2A1 which represents a minimum risk of business failure. At 31st Mar 2009 the company had a turnover of m, pre tax profit of 821,998 and a tangible net worth of 2.593m. JSC International Limited have a D&B rating of 2A1 which represents a minimum risk of business failure. At 31st Oct 2009 the company had a tangible net worth of 1,855m. PFP Group Limited have a D&B rating of B2 which represents a lower than average risk of business failure. At 31st Dec 2008 the company had a turnover of 6.034m, a pre tax profit of 1.054m and a tangible net worth of 237,294. Weider Publishing Limited have a D&B rating of A1 which represents a minimum risk of business failure. At 31st March 2010 the company hada turnover of 5.95m, a pre tax profit of 1.614m and a tangible net worth of 631,997.

5 1 to PROJECT BLUE Planning The revised Harrogate District Local Plan was adopted in 2001 and was last updated in June The District Local Plan will gradually be replaced by the Local Development Framework, a new system of Development Plans introduced by the Planning and Compulsory Purchase Act We have made enquiries of the local planning authority and we understand that the property lies just outside the Town Centre Area and is within a conservation area. We are not aware of any outstanding planning applications which would have a negative effect on value. Contact For further information or to arrange an inspection, please contact either: Simon Lister slister@savills.com Peter Mallinder pmallinder@savills.com Or visit VAT We understand the property is elected for VAT. Proposal We are instructed to seek offers in excess of 11,850,000 (eleven million, eight hundred and fifty thousand pounds) subject to contract and exclusive of VAT for our client s freehold interest. A purchase at this level will show a Net Initial Yield of 8.59% and a Reversionary Yield of 13.81% after allowing for acquisition costs of %. The above price assumes a vacant rates and service charge top up for a period of two years CLARENCE DRIVE Grayston Court 11 Windsor Court Windsor House El Sub Sta Tanks 10 El Sub Sta Simpson House CORNWALL ROAD Sun Colonnade Pond ED & Ward Bdy 13 Crown Copyright 2010 Based on Ordnance Survey. Not to Scale - For Identification Purposes Only.

6 Windsor Court, Simpson House, Harrogate - Tenancy Schedule Tenant Use Area () Rent pa. Rent per Lease Expiry Next Review Break Comments 1 Windsor Court Vacant Office 3,940 2 Windsor Court Plus 6 Car 6 PFP Group LLP Office 2,071 30, Jul Sep-17 1-Oct-11 3 & 4 Windsor Court Plus 17 Car 17 PFP Group LLP Office 5,017 78, Jul Sep-17 1-Oct-11 5 Windsor Court Plus 8 Car 8 Baker Tilly Management Ltd Office 2,581 36, Oct Sep-16 1-Oct-10 Not in occupation 6 Windsor Court 12 Lane, Sykes, Fox & Elliot Office 3,879 49, Sep Sep Sep-12 7 Windsor Court Plus 6 Car 6 P I Europe Ltd Office 1,998 33, Dec-08 3-Dec-13 4-Dec-11 8 Windsor Court Vacant Office 2,017 9&10 Windsor Court Plus 12 Car 12 Weider Publishing Ltd Office 4,033 52, Mar-08 4-Mar-18 5-Mar-11 5-Mar-11 Simpson House, Ground Floor Plus 12 Car 12 JSC International Ltd Office 3,378 55, Jun Jun Sep-09 Simpson House, 1st Floor Plus 2 Car 2 The Nostrum Group Ltd Office 3,436 53, Jun Jun Jun Jun-13 Simpson House, 2nd Floor Plus 3 Car 3 Arc Property Solicitors LLP Office 3,434 52, Nov Nov Nov Nov-10 Tenant served break notice. Car allocated within Windsor House 18 Available Car 17 TOTAL 95 35, ,621

7 Windsor House, Harrogate - Tenancy Schedule Tenant Use Area (Sq ft) Rent pa. Rent Per Lease Expiry Outside 1954 Act Next Review Break Comments Rooms A C Nielsen Company Ltd Offices 2,150 33, Apr Apr-16 Y 19-Apr-13 4 months rent free if break not served psf cap on service charge. 6 months notice for the break so notice must be received by 19 October Rooms 1.4 & 1.5 Vacant Offices 5, Rooms & Kinetic Worldwide Ltd Offices 1,884 29, May Jun-17 N 1-Jan Jun-12 Lease start date under investigation, but expiry, review and break dates fixed. Rooms Vacant Offices 318 Room Alchemy Media Limited Offices 238 3, Jan Dec-13 Y 1-Jan-12 Break dates on 1 Jan 2012 giving 6 months notice. First notice must be received by 1 July Room Kinetic Worldwide Ltd Offices 4,233 57, Jul Jun-17 N 1-Jul Jun-12 Store room 1 - Level 2 (Service Bay) Neoss Limited Offices May May-13 Y 12-May-11 Break notice must be served giving 6 months notice. Store Room 2-Level 2 (Service Bay) Weider Publishing Ltd Offices 201 1, Feb-09 4-Mar-18 Y 4-Mar-11 Can terminate giving not less than 4 weeks notice in writing. Review dates 4 March 2011, 2014 & 2017 Store room 3 - Level 2 (Service Bay) Weider Publishing Ltd Offices 181 1, Feb-09 4-Mar-18 Y 4-Mar-11 Can terminate giving not less than 4 weeks notice in writing. Review dates 4 March 2011,2014 & Room 3.01 Vacant Offices 192 Rooms Meikle, Hawker, Evans & Jones Offices 2,546 32, Aug Aug-15 N 15-Aug-10 t/a Donald, Smith, Seymour & Rooley or DSSR. Review triggered and ongoing.

8 Windsor House, Harrogate - Tenancy Schedule Continued Tenant Use Area (Sq ft) Rent pa. Rent Per Lease Expiry Outside 1954 Act Next Review Break Comments Rooms 3.11 The Nostrum Group Offices 1,355 27, Apr Apr-12 Y 12-Jul-10 Rolling break after 12 July 2010 giving one months notice. All inclusive rent. Room 3.12 Vacant Offices 220 Under offer to Nostrum Group co-terminous with room 3.11 at 2711 per annum. Rooms S I Recruitment Ltd Offices , Mar Mar-11 N S25 Notice served at a rent of 14,064. Rooms 3.16, 3.17 & Neoss Ltd Offices 4,394 59, May May-13 N 12-May May-11 Rent of 63,825 from 12/05/2011. Break notice must be received by 12 Nov Break penalty to pay. Room GPA Recruitment and Development Ltd Offices 1,258 18, Feb Feb-11 N Rooms 3.20 & 3.21 Jacobs UK Ltd Offices 1,805 24, Oct Oct-11 N Rooms 3.22 & 3.23 Vacant Offices Poor condition space behind reception. Rooms 4.01, 4.03 & Mercer Richardson & Partners Ltd Offices , Mar-07 4-Mar-12 N Rooms 4.02, (4.02 innner room) 2 Salzgitter Mannesman (UK) Ltd Offices 1,875 26, Sep May-12 N Rooms 4.05 Vacant Offices 227 Rooms Plan Limited Offices 1,101 17, Oct Oct-12 Y 22-Apr-11 Tenant break is not more than 9 but not less then 6 months notice. Rooms 4.16 & 4.17 Vacant Offices 1,577 Rooms C Vacant Offices 7,429 N Room Dales & Shires Ltd Offices 141 2, Mar Mar-11 N S25 Notice served at a rent of 2,911. Rooms 5.02, 5.33 & 5.34 Vacant Offices 594 Rooms David Anthony Rook t/a Easy Let UK Offices 220 4, Jul-08 2-Jul-11 Y Rooms 5.04 Vacant Offices 158 Rooms 5.05 & D Thaddeus, SJ Meaney & APS Crawford, t/a Matthews & Son Offices 397 6, Feb Feb-11 N Capped S/C at 6.50 psf + RPI. S25 Notice served. Room 5.07 Vacant Offices 1,142 Rooms 5.08, , 5.14A & North Yorkshire Police Authority Offices 1,641 25, Aug-06 1-Aug-11 N

9 Windsor House, Harrogate - Tenancy Schedule Continued Tenant Use Area (Sq ft) Rent pa. Rent Per Lease Expiry Outside 1954 Act Next Review Break Comments Room 5.09 Vacant Offices 108 Rooms 5.16 & 5.17 Vacant Offices 1,623 Agreed terms with Andrew Thirkell for a 5 year lease from 1 Nov 14.50psf. TOB after 2 years subject to not less than 6 months notice. 3 months rent free. Room 5.18 Vacant Offices 151 Rooms Vacant Offices 653 Rooms Vacant Offices 3,496 Rooms 5.25, 5.26, 5.28, 5.29, 5.32 & 5.32A 1 Saxton Partners Ltd Offices , Apr-08 3-Apr-11 N Room Foods Standards Agency Offices 210 5, Oct Oct-10 N Tenant vacating at lease expiry. Room 5.30 Vacant Offices 161 Room 5.31 Vacant Offices 228 Rooms C Card Geotechnics Ltd Offices 1,049 13, Nov-08 3-Nov-13 Y 4-Nov-11 4-Nov-11 SC cap at 7.20 psf for 1st 3 years only. Rooms 6.01 & H2K Ltd Offices 360 6, Jun Jun-11 Y Rooms 6.02 Vacant Offices 192 Rooms c 1 Aims Direct Creative Services Offices 1,054 11, Apr Apr-12 Y 21-Apr-11 1 month rent free. Rent rising to 14,877 per annum on 21/11/2012. Car parking at nil rent Rooms 6.04 Vacant Offices Sep Aug-10 N Room 6.05 Michael Ross Offices 161 2, Jan Jan-13 Y Room CTH Ltd t/a Headway Offices 235 3, Jan Jan-13 N Room Ripon and Leeds Diocesan Board of Finance Offices 1,159 17, Aug Aug-13 N 12-Aug Aug-11 Room Sense 2 Invest Ltd Offices 268 5, Nov Oct-10 N Tenant vacating at lease expiry. Rooms 6.09 & 6.10 My Fallback Company Ltd Offices 205 1, Mar Mar-13 Y 24-Mar-11 S/C cap at 6.50 plus RPI. Room Sharpe Topping Offices 272 4, Feb Jan-11 N S25 Notice served at a rent of 4,915. Rooms 6.12, 6.14 & BA Hale & NH Smyth t/ awhite Knight VAT Accounting Offices , May May-13 N

10 Windsor House, Harrogate - Tenancy Schedule Continued Tenant Use Area (Sq ft) Rent pa. Rent Per Lease Expiry Outside 1954 Act Next Review Break Comments Rooms 6.13 & Dene Support Services Ltd Offices 253 6, Mar Mar-13 Y 24-Mar-11 S/C cap at 6.50 plus RPI. Rooms 6.17 Vacant Offices 1,408 Rooms Reef Business Systems Ltd Offices , Oct Oct-10 N Section 25 served.tenant vacating at the end of the lease. Room Reef Business Systems Ltd Offices 269 3, Jun Oct-10 N Tenant vacating at the end of the lease. Rooms Vacant Offices 3,762 Rooms 6.27 & 6.30 Vacant Offices 378 Room 6.28 Vacant Offices Rooms 6.29 & Alliance Valuers (Sales) Ltd Offices 389 6, Aug-08 3-Aug-13 N Rooms 6.32 & 6.32A Vacant Offices 408 Rooms 6.33 & 6.34 Vacant Offices Room 6.34 under offer to Red Zebra Design Ltd, 3 years at PSF contracted out, annual breaks, 1 month rent free plus 2 car spaces under seperate licence. Rooms 7.01, & 705A Vacant Offices 763 Room 7.02 Vacant Offices 192 Room Translate4me Ltd Offices 1,056 17, Oct Oct-10 N Rooms Vertex Systems Oy Offices 1,383 21, Oct-08 2-Oct-14 N 3-Oct-11 Room 7.15 Set Square (Harrogate) Ltd Offices 266 3, Jul Jun-12 Y 1-Jul-11 Yearly break date 6 months notice required. Service charge cap 7.00psf based on 366sqft (tenant measured 366sqft)First notice must be recieved by 1 Jan Room 7.16 Vacant Offices 1, Room 7.17 & Adam Lloyd t/a Turn Design Offices 472 6, Aug Aug-12 N 11-Aug-10 Rooms 7.19 & Stonehouse Projects Ltd Offices 346 4, Nov Nov-10 N Tenant vacating at lease expiry. Room 7.21 Vacant Offices 130 Rooms Phillip John Snowball Offices 1,847 26, Sep Sep-14 Y 25-Sep-12 S/C Cap 6.00psf plus RPI Tenant s only break giving not less than 6 months notice.

11 Windsor House, Harrogate - Tenancy Schedule Continued Tenant Use Area (Sq ft) Rent pa. Rent Per Lease Expiry Outside 1954 Act Next Review Break Comments Room 7.24 Vacant Offices 989 Rooms 7.26 & 7.27 Vacant Offices 220 Rooms 7.28, 7.30, J P Coyne & M Kenney t/a Clear Accounting Offices 467 6, Jul Jul-11 Y 11-Jul-09 Invalid break notice served but tenant agreed terms to relocate to rooms years contracted out 9,628 pa to include 2 car park spaces. Room 7.29 Vacant Offices 171 Rooms 7.31 & 7.31A 2 Red Zebra Design Ltd Offices 418 6, Nov Oct-12 Y 1-Nov-10 Tenant cap on service charge 7.00 plus CPI increase. Break notice served but tenant taking room 6.34 on terms stated. Rooms Kitz Corporation Offices 1,222 17, Feb Jan-11 N 1 Car Space 1 Stonehouse Projects Ltd Parking 1, Nov Nov-10 Y Rolling Mutual break with 4 weeks notice. Sub Station Northern Electric plc Jan-92 1-Jan-02 Holding Over. Available 174 TOTAL , ,333 Important Notice Savills, their clients and any joint agents give notice that: 1. They are not authorised to make or give any representations or warranties in relation to the property either here or elsewhere, either on their own behalf or on behalf of their client or otherwise. They assume no responsibility for any statement that may be made in these particulars. These particulars do not form part of any offer or contract and must not be relied upon as statements or representations of fact. 2. Any areas, measurements or distances are approximate. The text, photographs and plans are for guidance only and are not necessarily comprehensive. It should not be assumed that the property has all necessary planning, building regulation or other consents and Savills have not tested any services, equipment or facilities. Purchasers must satisfy themselves by inspection or otherwise. 3. MISREPRESENTATION ACT 1967: These particulars do not constitute an offer of any contract. Neither Savills nor any of its Directors, employees or agents is authorised to give or make any warranty or representation on behalf of any party. Whilst information and particulars are given in good faith, intending purchasers or tenants must satisfy themselves independently as to the accuracy of all matters on which they intend to rely. All negotiations are subject to contract. Designed and Produced by Savills Marketing: October 2010