Investment Sale Enterprise House, Isambard Brunel Road, Portsmouth, PO1 2RX. High Yielding Multilet City Centre Office Investment

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1 Investment Sale Enterprise House, Isambard Brunel Road, Portsmouth, PO1 2RX High Yielding Multilet City Centre Office Investment

2 Investment Summary Multi let South Coast Office investment opportunity. The property is prominently located in Portsmouth City Centre. Prominent location in an area targeted for redevelopment by City of Portsmouth Council thus providing a future potential development opportunity. The vendor owns the freehold and a long leasehold interest in the Property. On completion, the vendor will surrender its leasehold interest and transfer the freehold to the buyer. The property provides 52,352 sq ft (4, sq m) of office accommodation arranged in a ten storey office building. The property is fully let to 6 tenants with additional income provided by leases for rooftop aerials and car parking spaces, providing a total rent of 555,558 per annum which reflects an average rate of per sq ft. The core income is derived from the strong covenants of Serco, The First Secretary of State and Rossborough which together account for over 80% of the total income. We are seeking offers in excess of 4,380,000 (Four Million, Three Hundred and Eighty Thousand Pounds), subject to contract, for the benefit of the freehold interest. This reflects a Net Initial Yield of 12.00% after allowing for purchasers costs of 5.80% and a low capital value of only per sq ft.

Crown Copyright 2012. All rights reserved. Not to scale. Location Portsmouth is the second largest city in the county of Hampshire on the south coast of England.

3 Crown Copyright All rights reserved. Not to scale. Location Portsmouth is the second largest city in the county of Hampshire on the south coast of England. Portsmouth is notable for being the UK s only island city; it is located mainly on Portsea Island. Portsmouth is situated 64 miles (103 km) south west of London and 19 miles (31 km) south east from Southampton. The city is served by the M27 motorway, which connects the city with Fareham and Southampton to the west, whilst the A27 provides access to Chichester and Worthing to the east. The A3 connects Portsmouth with the M25 motorway and London to the north-east, the A34 provides direct access to the M4 and the west. There are regular train services from Portsmouth to London Waterloo, with a fastest journey time of 90 minutes. Portsmouth is also a busy ferry terminal and Southampton International Airport is 25 miles to the north-west. The City of Portsmouth has a population of 207,100 and is the only city in England with a greater population density (12,010 per sq mile) than London (11,820 per sq mile). The wider Portsmouth district is the 14th largest urban area in the United Kingdom with an estimated 442,252 residents Situation Enterprise House occupies a prominent and accessible location on Isambard Brunel Road in central Portsmouth. The premises are adjacent to Portsmouth and Southsea Railway Station and are in close proximity to the Guildhall Square, Civic Offices, Portsmouth University faculty buildings and the Magistrates Court. Portsmouth and Southsea Railway Station has a direct line to London Waterloo with a journey time of just 90 minutes. The property is accessible from the M27 motorway via the M275 direct into Portsmouth, via the A3 (Commercial Road), which leads into Isambard Brunel Road. The approximate drive time is 15 minutes from the M27 motorway. Portsmouth University is located directly south of the property and therefore may provide opportunities for conversion of the property for student accommodation, subject to the necessary planning consents. Commercial Road which is Portsmouth s central retail pitch is located 5 minutes walk to the north of the property. Description Enterprise House is a mid 1970 s built multi-let high rise office building arranged over ground and nine upper floors, together with a three storey annex and on site designated car parking. The upper floors provide panoramic views over Portsmouth City Centre, Gunwharf Quays and the surrounding districts, to Portsdown Hill to the north and the Isle of Wight to the south. The premises benefit from the following facilities/specifications: Open plan floor plates Gas centralised heating system Comfort cooling to some floors Two 8 person passenger lifts Recessed CAT II lighting Manned security desk on ground floor Perimeter trunking To the rear of the property is a secure car park with parking for up to 40 vehicles. The common parts, including the toilet facilities on each floor, together with the ground floor reception and security system have recently been comprehensively refurbished with the vendor investing approximately 500,000 updating theses facilities to a very high standard. This has resulted in a reduction in the service charge budget. The current service charge budget for the year 2012 is 6.62 per sq ft.

4 Enterprise House, Isambard Brunel Road, Portsmouth, PO1 2RX Gunwarf Quay Outlet Shopping Portsmouth Harbour Station Portsmouth Ferry Terminal University of Portsmouth Portsmouth City Council Portsmouth & Southsea Station Commercial Road Unite Student Accommodation

Accommodation We have measured the property in accordance with the RICS Code of Measuring Practice (6th Edition) and calculate that the property provides 52,352 sq ft (4,863.

On completion, the vendor will surrender its leasehold interest and transfer the freehold to the buyer.

5 Accommodation We have measured the property in accordance with the RICS Code of Measuring Practice (6th Edition) and calculate that the property provides 52,352 sq ft (4, sq m) on a net internal basis. Tenure The vendor owns the freehold and a long leasehold interest in the Property. On completion, the vendor will surrender its leasehold interest and transfer the freehold to the buyer. Tenancies The property is let to 6 tenants on Full Repairing and Insuring terms and additional income provided by leases for rooftop aerials and car parking spaces, producing a total rent of 555,558 per annum which reflects an average rate of per sq ft. The average weighted unexpired term of income is 3.32 years to a break and 3.50 years to expiry. Unit Description Ground Annex Tenant Messrs Guest Sandlands & Others Area (sq ft) Lease Start (Rent Review) Lease Expiry (Break Option) 2,283 17/08/ /08/2012 The lease to Serco contains a service charge cap of 7.50 per sq ft to be reviewed annually in line with RPI. The lease to Mapeley contains a service charge cap of 6.75 per sq ft to be reviewed annually in line with RPI. Rent pa (psf) 30,000 (13.14) Comment Practicing as Churchers Solicitors Ground Floor Serco Limited 2,684 24/06/ /06/ Floor Annexe Serco Limited 2,969 24/06/ /06/ Floor Serco Limited 4,577 24/06/ /06/ Floor Suite A Prometric Limited 1,410 29/03/ /04/ Floor Annexe Serco Limited 2,969 24/06/ /06/ Floor Suite B Serco Limited 3,339 24/06/ /06/ Floor Serco Limited 4,577 24/06/ /06/ Floor Serco Limited 4,598 24/06/ /06/ ,182 31,175 48,058 17,632 ( 12.50) 31,175 35,059 48,058 48,279 Service Charge capped at 7.50 psf in line with RPI 5 & 6 Floor The First Secretary of State 9,184 09/09/ /09/ ,000 ( 10.89) 7 Floor Rossborough Insurance Services Ltd 4,593 04/12/ /12/ ,850 ( 11.07) 8 Floor Mapeley ABI Provider Ltd 4,593 01/10/2011 (01/11/2016) 30/09/2018 (01/10/2014) 25,000 ( 5.44) Next agreed rent on 01/10/2012 at 30,000 Service charge capped at 6.75 psf in line with RPI 9 Floor Serco Limited 4,576 24/06/ /06/ ,048 1 car parking space Rooftop Aerial Rossborough Financial Services Hutchison 3G & Everything Eve 02/03/ /12/ /07/ /07/ ,842 Outside 1954 act 2 car spaces Messrs Guest Sandlands & Others 02/09/ /08/2012 (01/09/2010 rolling) 1,600 Mutual rolling break car space Rossborough Services Ltd 01/10/ /09/ Total 52, ,558

6 Covenant The property is fully let to a good range of tenants, with strong covenant strength. The core income is derived from the strong covenants of Serco which accounts for 57% of the income, 18% is secured against The First Secretary of State and 9.44% Rossborough Insurance Services. Percentage of Income 3% 2% 5% 6% Serco Limited The First Seretary of State 9% Mapeley Abi Provider Messrs Guest Sandlands Rossborough Prometric Limited Hutchinson 3G Rooftop Aerial 18% 57% Serco Limited (Company number ) Serco Limited forms part of the Serco Group plc, a government services company based in Hook, North Hampshire and is listed on the London Stock Exchange and constituent of the FTSE 100 Index. The accommodation is occupied by The Listening Company who are a customer contact outsourcer. The Listening Company was purchased by Serco for 55,000,000 in March Serco has a credit rating of 95/100 which represents a stable credit worthy company. Serco Limited s turnover for year ending 31/12/10 was 1,189,500,000, pre-tax profits of approximately 100,400,000 and shareholder funds of approximately 523,500,000. Year Ending Year Ending Year Ending 31/12/ /12/ /12/2008 Turnover 1,189,500,000 3,970,000,000 1,569,700,000 Pre-tax Profit 100,400, ,100,000 56,800,000 Shareholder Funds 523,500, ,000, ,500,000 Mapeley Abi Provider Limited (Company Number ) Mapeley Abi Provider Limited provides serviced accommodation and real estate management services to clients. The accommodation is occupied by The Identity & Passport Office. Mapeley has a credit rating of 96/100 which represents a stable credit worthy company. Mapeley s turnover for year ending 31/12/10 was 8,513,000, pre-tax profits of approximately 1,876,000 and shareholder funds of approximately 4,294,000. Year Ending Year Ending Year Ending 31/12/ /12/ /12/2008 Turnover 8,513,000 9,244,000 9,088,000 Pre-tax Profit 1,876,000 ( 53,000) 2,836,000 Shareholder Funds 4,294,000 4,512,000 4,560,000 The First Secretary of State is a publicly funded government quality covenant. The office accommodation is occupied by Hampshire Probation Trust Portsmouth. Rossborough Insurance Services Limited (Company Number - FC023456) Rossborough Insurance Services Limited is part of the Rossborough Group which was established in Rossborough is a substantial group of insurance brokers operating in the Channel Islands and the Isle of Man. The Group employs over 150 staff and has exclusive facilities for personal and business insurance as well as substantial expertise in the field of health and dental care insurance. Year Ending Year Ending Year Ending 31/12/ /12/ /12/2008 Turnover 1,334,860 1,321,241 1,288,210 Pre-tax Profit 64,728 65,532 59,219 Shareholder Funds 175, , ,427 The Ground floor annex is let to Churchers Solicitors, the lease is in the name of Messrs Guest Sandlands & Others who are partners in the firm.

7 Market Commentary The Portsmouth office market has remained resilient through the economic turmoil of the last few years with an overall increase in office take up during During the past 18 months Enterprise House has experienced the strongest letting activity in the City Centre, with virtually no competing space available now or in the foreseeable future. It also should be noted than Serco have first option to occupy any further space that may become available in Enterprise House. A notable capital transaction conducted last Autumn was the sale of St Andrews Court some 70,560 sq ft by the Land Registry to the University of Portsmouth for 7,350,000. Future Asset Management The property provides an opportunity to implement asset management initiatives to potentially enhance the quality and value of the property. The property is currently fully let with the majority of tenants having been in occupation for many years.there may be an opportunity to re gear the leases with the tenants, thus providing a longer secure income. The building has historically let extremely well, evidence by the fact that despite the tough market conditions the property remains fully let. Within the city there are ambitious and innovative schemes to regenerate key sites which have the support and funding of public and private partnerships, such as the recently secured 21m Regional Growth Fund success and the forthcoming LBV initiative to extract best value out of the City Council s significant property portfolio. Enterprise House sits amidst much of this City Centre activity and being adjacent to the main transport hub, Civic Offices and University Quarter, will become an important landmark site. To read more about Portsmouth s strategic approach we recommend you click on to this web link: media/cab r6app1.pdf As a result the property may provide further opportunities to enhance value, through the redevelopment for student accommodation or for a hotel subject to achieving the necessary consents. The property benefits from its desirable location in the heart of Portsmouth City Centre directly adjacent to the central train station and nearby the University of Portsmouth. The Council is keen to see more hotels in Portsmouth to help serve its long established tourism market, support its conference offer, attract more major events and provide supporting facilities for its businesses. The area around Portsmouth and Southsea station has been identified as a target area to encourage hotel developments, thus providing a strong re-development case for Enterprise House. VAT We understand that the property is elected for VAT. Proposal We are seeking offers in excess of 4,380,000 (Four Million, Three Hundred and Eighty Thousand Pounds), subject to contract, for the benefit of the freehold interest. This reflects a Net Initial Yield of 12.00% after allowing for purchasers costs of 5.80% and a low capital value of only per sq ft. Contacts Lambert Smith Hampton United Kingdom House Lambert Smith Hampton 5 Town Quay 180 Oxford Street Southampton London W1D 1NN SO14 2HJ Scott Helyer Jerry Vigus shelyer@lsh.co.uk jvigus@lsh.co.uk Rob Ingram Robin Dickens ringram@lsh.co.uk rdickens@lsh.co.uk Further information on the property can be obtained from: Subject to Contract and Exclusive of VAT Lambert Smith Hampton March 2012 Disclaimer: Lambert Smith Hampton Group Limited and its subsidiaries and their joint agents if any ( LSH ) for themselves and for the seller or landlord of the property whose agents they are give notice that: (i) These particulars are given and any statement about the property is made without responsibility on the part of LSH or the seller or landlord and do not constitute the whole or any part of an offer or contract. (ii) Any description, dimension, distance or area given or any reference made to condition, working order or availability of services or facilities, fixtures or fittings, any guarantee or warrantee or statutory or any other permission, approval or reference to suitability for use or occupation, photograph, plan, drawing, aspect or financial or investment information or tenancy and title details or any other information set out in these particulars or otherwise provided shall not be relied on as statements or representations of fact or at all and any prospective buyer or tenant must satisfy themselves by inspection or otherwise as to the accuracy of all information or suitability of the property. (iii) No employee of LSH has any authority to make or give any representation or warranty arising from these particulars or otherwise or enter into any contract whatsoever in relation to the property in respect of any prospective purchase or letting including in respect of any re-sale potential or value or at all. (iv) Price or rent may be subject to VAT and any prospective buyer or tenant must satisfy themselves concerning the correct VAT position. (v) Except in respect of death or personal injury caused by the negligence of LSH or its employees or agents, LSH will not be liable, whether in negligence or otherwise howsoever, for any loss arising from the use of these particulars or any information provided in respect of the property save to the extent that any statement or information has been made or given fraudulently by LSH. (vi) In the case of new development or refurbishment prospective buyers or tenants should not rely on any artists impressions or architects drawings or specification or scope of works or amenities, infrastructure or services or information concerning views, character or appearance and timing concerning availability or occupation and prospective buyers or tenants must take legal advice to ensure that any expectations they may have are provided for direct with the seller or landlord and LSH shall have no liability whatsoever concerning any variation or discrepancy in connection with such matters.

Investment Sale. Modern Freehold Industrial Warehouse Investment. Aspect House Spencer Road Church Hill Industrial Estate Lancing West Sussex BN15 8UA

Investment Sale. Modern Freehold Industrial Warehouse Investment. Aspect House Spencer Road Church Hill Industrial Estate Lancing West Sussex BN15 8UA Investment Sale Modern Freehold Industrial Warehouse Investment Aspect House Spencer Road Church Hill Industrial Estate Lancing West Sussex BN15 8UA Executive Summary Located on the South Coast between