GUILDFORD RIVERSIDE BUSINESS PARK, WALNUT TREE CLOSE GUILDFORD, GU1 4UG

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1 PRIME FREEHOLD TOWN CENTRE MULTI-LET INDUSTRIAL AND TRADE COUNTER INVESTMENT GUILDFORD RIVERSIDE BUSINESS PARK, WALNUT TREE CLOSE GUILDFORD, GU1 4UG

2 INVESTMENT SUMMARY Guildford is a highly affluent commuter town and the principal commercial and administrative centre in Surrey. Riverside Business Park is prominently located in Guildford town centre just 0.4 miles (0.64 km) north of Guildford Railway Station. The estate comprises 7 industrial and trade counter units totalling 47,814 sq ft (4,442.1 sq m), with unit sizes ranging from 3,659 sq ft to 15,329 sq ft. Let to 8 tenants providing a WAULT of 4.3 years to expiry and 2.2 years to breaks. Total rental income of 460,495 per annum, reflecting a low average passing rent of 9.63 per sq ft. Highly reversionary rental income with top headline rents in excess of per sq ft in Guildford. Opportunity to obtain vacant possession by August 2019 allowing redevelopment of the site for a higher use value (subject to planning). Total site area of 2.33 acres which reflects a site density of 38%. The redevelopment potential underpins the site for alternative higher value uses. We are instructed to seek offers in excess of 8,633,000 (Eight Million Six Hundred and Thirty Three Thousand Pounds) for the freehold interest, subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 5.00%, an attractive reversionary yield of 5.71% and equivalent yield of 5.39% after assuming purchasers costs of 6.68%. Low capital value of 181 psf. GUILDFORD RIVERSIDE BUSINESS CENTRE, WALNUT TREE CLOSE, GUILDFORD, GU1 4UG

LOCATION Guildford is the principal commercial and administrative centre in Surrey and benefits from a highly affluent catchment population.

The town is well connected by road, being situated adjacent to the which provides direct access to Junction 10 of the M25 9 miles (14 km) to the north east.

Heathrow and Gatwick airports are located 21 miles (34 km) to the north and 25 miles (40 km) to the south east respectively.

M4 Basingstoke 3 3 M3 1 Reading Alton 1 M4 Maidenhead A404(M) M4 Bracknell Wokingham 22 M3 Farnborough 31 Aldershot Farnham Camberley Haslemere M3 Slough Windsor Egham Woking M25 0 GUILDFORD

3 LOCATION Guildford is the principal commercial and administrative centre in Surrey and benefits from a highly affluent catchment population. The town is located approximately 31 miles (50 km) south west of central London, 27 miles (43 km) north west of Crawley and 26 miles (41 km) east of Basingstoke. The town is well connected by road, being situated adjacent to the which provides direct access to Junction 10 of the M25 9 miles (14 km) to the north east. Guildford is served by regular rail services to London Waterloo with a fastest journey time of 37 minutes. Heathrow and Gatwick airports are located 21 miles (34 km) to the north and 25 miles (40 km) to the south east respectively. SITUATION Riverside Business Park is situated on a prominent site in Guildford town centre with substantial frontage onto Walnut Tree Close. M4 Basingstoke 3 3 M3 1 Reading Alton 1 M4 Maidenhead A404(M) M4 Bracknell Wokingham 22 M3 Farnborough 31 Aldershot Farnham Camberley Haslemere M3 Slough Windsor Egham Woking M25 0 GUILDFORD Cranleigh Hayes A4 Heathrow Airport Twickenham Weybridge M25 Kingston upon Thames A243 Leatherhead Dorking A24 A24 A240 A264 Epsom M25 A203 A40 A24 A217 Gatwick Airport A214 Crawley LONDON A23 Redhill A23 M23 A264 A22 A13 A22 A232 A10 Bromle East Grinstead A22 The property is one of the most centrally located industrial estates within Guildford, being 0.4 miles (0.64 km) north of Guildford Railway Station and 0.7 miles (1.12 km) south of the. The University of Surrey campus is 0.6 miles (0.96 km) to the west and Guildford s prime retail pitch is 0.5 miles (0.80 km) south east. The surrounding area comprises a mix of industrial, trade counter, office, residential and student accommodation uses. SOUTHWAY SOUTHWAY 23 GUILDFORD AND GOLDALMING BYPASS 23 University of Surrey GUILDFORD CATHEDRAL WORPLESDON ROAD ALRESFORD ROAD RIDGEMOUNT MANOR ROAD A25 A25 WOODBRIDGE MEADOWS WALNUT TREE CLOSE WOODBRIDGE ROAD LADYMEAD WOODBRIDGE ROAD STOCTON ROAD 20 STOKE ROAD SUBJECT PROPERTY A PARKWAY LONDON ROAD YORK ROAD A25 LONDON ROAD ST JOHN S RD THE CHASE WATERD ELMSIDE HEDGEWAY CURLING VALE OLD PALACE ROAD MADRID RD AGRARIA ROAD GUILDFORD PK RD 1 FARNHAM ROAD WODELAND ROAD GUILDFORD WALNUT TREE C LOSE 22 ONSLOW STREET TOWN CENTRE NORTH STREET HIGH ST HIGH ST MILLBROOK CHERTSEY ST SYDENHAM ROAD 100 PEWLEY HILL HIGH ST BRIGHT HILL EPSOM ROAD PRIME FREEHOLD TOWN CENTRE MULTI-LET INDUSTRIAL AND TRADE COUNTER INVESTMENT

Guildford Cathedral University of Surrey Guildford Industrial Estate Cathedral Hill Industrial Estate Guildford Business Park Scape 141 Student Accommodation Units.

4 Guildford Cathedral University of Surrey Guildford Industrial Estate Cathedral Hill Industrial Estate Guildford Business Park Scape 141 Student Accommodation Units. Completed Station View Residential Development of 177 Units. Completed Walnut Tree Park Planning for c. 35,000 sq ft of Grade A Office Accommodation. WALNUT TREE CLOSE Wey Corner Residential Development of 56 Units. Under Construction. SUBJECT PROPERTY Guildford Station Crown Court Guildford Pembroke House Planning for c. 30,000 sq ft Speculative Grade A Office Building. FARNHAM ROAD GUILDFORD RIVERSIDE BUSINESS CENTRE, WALNUT TREE CLOSE, GUILDFORD, GU1 4UG

DESCRIPTION The property was constructed in the late 1980s and comprises 7 industrial units arranged across two terraces and one stand alone unit on a self-contained site.

4 Unit 1 has been subdivided into an industrial unit of 6,792 sq ft (631.0 sq m) and an office unit of 8,537 sq ft (793.1 sq m).

The units benefit from a clear eaves height of approximately 5.2m, single up-and-over loading doors and integral office accommodation.

5 DESCRIPTION The property was constructed in the late 1980s and comprises 7 industrial units arranged across two terraces and one stand alone unit on a self-contained site The estate provides a total gross internal area of 47,814 sq ft (4,442.1 sq m), with individual unit sizes ranging from 3,659 sq ft (339.9 sq m) to 6,792 sq ft (631.0 sq m). 4 Unit 1 has been subdivided into an industrial unit of 6,792 sq ft (631.0 sq m) and an office unit of 8,537 sq ft (793.1 sq m). Units are of steel frame construction with part glazed/part profile metal clad walls, under pitched profile metal clad roofs, incorporating translucent roof panels. The units benefit from a clear eaves height of approximately 5.2m, single up-and-over loading doors and integral office accommodation. Servicing and parking is to the front of each unit. The total site area is 2.33 acres (0.94 hectares), which reflects a low site density of approximately 38%. There are approximately 109 marked on site car parking spaces PRIME FREEHOLD TOWN CENTRE MULTI-LET INDUSTRIAL AND TRADE COUNTER INVESTMENT

TENANCY The property is let to eight tenants on effective full repairing and insurance terms in accordance with the tenancy schedule below providing a total rental income of 460,495 per annum ( 9.

Unit Tenant Area Rent Lease Start Lease Expiry Sq Ft Sq M p.

6,792 631.0 66,320 9.76 10/10/15 01/08/23 01/08/19 01/08/19 D78 Outside Mutual break option.

6 TENANCY The property is let to eight tenants on effective full repairing and insurance terms in accordance with the tenancy schedule below providing a total rental income of 460,495 per annum ( 9.63 per sq ft overall). The WAULT to expiry is 4.3 years and to break 2.2 years. Vacant possession of the whole estate can be obtained in August 2019 when all breaks can be terminated by the landlord. Unit Tenant Area Rent Lease Start Lease Expiry Sq Ft Sq M p.a psf Unit 1, Warehouse and Part Ground Floor Unit 1, Part Ground Floor & 1st Floor Offices European Tyre Enterprise Ltd t/a Kwik Fit Next Rent Review Break Option EPC Inside L&T 1954 Act Comments 6, , /10/15 01/08/23 01/08/19 01/08/19 D78 Outside Mutual break option. If the break is not exercised by the tenant, the Landlord must pay a capital contribution of 39,500 + VAT to the Tenant. The landlord can only break for redevelopment with a penalty payment of 75,000 + VAT to tenant. Wieland Electric Ltd 8, , /10/15 01/08/23 01/08/19 01/08/19 D78 Outside Mutual break option. Unit 2 Manbat Ltd 3, , /04/17* 11/08/ D82 Outside Photographic schedule of condition. *New lease with engrossments out. Unit 3 Figment Productions Ltd 5, , /09/13 01/08/19 26/09/18 - D82 Outside Photographic schedule of condition. Unit 4 Caltest Instruments Ltd 5, , /07/14 30/06/ D82 Outside Rent deposit held of 25,006 inc. VAT. Photographic schedule of condition. Unit 5 Louise Emma Pieri t/a Performance Preparation Academy 6, , /08/13 11/08/23 12/08/18 11/08/19 D78 Outside Mutual break option. The landlord can only break for redevelopment with a penalty payment of 60,000 to the tenant. Unit 6 Euro Services Ltd 5, , /03/14 01/08/ D78 Outside Photographic schedule of condition. Unit 7 Hydronix Ltd 6, , /04/12 14/04/22 15/08/19 14/08/19 D78 Inside Mutual break option. The landlord can only break for redevelopment. Electricity Substation South Eastern Electricity Plc /11/86 12/11/ Inside Totals 47,814 4, , GUILDFORD RIVERSIDE BUSINESS CENTRE, WALNUT TREE CLOSE, GUILDFORD, GU1 4UG

COVENANT INFORMATION The property is let to a diverse mix of national multiple, regional and local occupiers.

Unit Unit 1, Warehouse and Part Ground Floor Tenant European Tyre Enterprise Ltd t/a Kwik Fit Latest Reported Financial Year Turnover Net Worth Dun & Bradstreet Rating Percentage of Income Company

com Unit 2 Manbat Ltd 2015 49,894,000 12,350,000 3A1 8% www.manbat.co.uk Unit 3 Figment Productions Ltd 2015-448,484 A2 10% www.figmentproductions.co.uk Unit 4 Caltest Instruments Ltd 2015 2,102,215 101,696 C2 11% www.

7 COVENANT INFORMATION The property is let to a diverse mix of national multiple, regional and local occupiers. Approximately 65% of the income is secured to tenants with a minimum risk of business failure and a further 21% is secured against tenants with a lower than average risk of business failure. Unit Unit 1, Warehouse and Part Ground Floor Tenant European Tyre Enterprise Ltd t/a Kwik Fit Latest Reported Financial Year Turnover Net Worth Dun & Bradstreet Rating Percentage of Income Company Website ,000,000 5A1 14% Unit 1, Part Ground Floor & 1st Floor Offices Wieland Electric Ltd ,257,418 1A1 17% Unit 2 Manbat Ltd ,894,000 12,350,000 3A1 8% Unit 3 Figment Productions Ltd ,484 A2 10% Unit 4 Caltest Instruments Ltd ,102, ,696 C2 11% Unit 5 Louise Emma Pieri t/a Performance Preparation Academy Unit 6 Euro Services Ltd ,738,358 2,911,457 2A1 12% Unit 7 Hydronix Ltd ,212,226 1A1 14% TENURE Freehold. SERVICE CHARGE There is a service charge which relates to the upkeep of the estate. The budget for the year ending 31st March 2018 is 34,952 representing 0.74 per sq ft. PRIME FREEHOLD TOWN CENTRE MULTI-LET INDUSTRIAL AND TRADE COUNTER INVESTMENT

REDEVELOPMENT POTENTIAL The property sits on a prime well configured site that lends itself to future redevelopment.

The most notable developments, both proposed and completed, are as follows: Wey Corner Residential Development Bellway Homes are currently developing 56 residential apartments on a site adjacent to

Scape Living, Surrey Scape Living has recently developed 141 student accommodation units on Walnut Tree Close.

8 REDEVELOPMENT POTENTIAL The property sits on a prime well configured site that lends itself to future redevelopment. A number of sites along Walnut Tree Close and the immediate surrounding area are being redeveloped into residential, student accommodation and office uses. The most notable developments, both proposed and completed, are as follows: Wey Corner Residential Development Bellway Homes are currently developing 56 residential apartments on a site adjacent to Riverside Business Park. Walnut Tree Park Peveril Securities have achieved planning consent to develop two Grade A offices on Walnut Tree Close totalling 35,000 sq ft. Scape Living, Surrey Scape Living has recently developed 141 student accommodation units on Walnut Tree Close. Pembroke House, Mary Road Investra are undertaking a 30,000 sq ft Grade A speculative office development on Mary Road. They acquired the site in 2016 for 3.45m ( 5.4m per acre). Station View, Guildford Taylor Wimpey has recently developed 177 residential units adjacent to Guildford Station. The redevelopment potential underpins the site for alternative higher value uses. OCCUPATIONAL MARKET The industrial and trade counter market in the South East and specifically Guildford has seen significant rental growth over the last 12 months. This has been driven by an increase in occupational demand and a reduction in available supply due to the redevelopment of older industrial units in urban areas for higher value uses. Total industrial stock is currently around 3.93m sq ft in Guildford. Current availability for unit sizes of 3,000 sq ft 10,000 sq ft is only 47,000 sq ft, across 7 industrial units. This represents just 1.2% of total industrial stock in Guildford. The table below outlines the most recent letting comparables and demonstrates how the acute shortage of available stock has pushed rents in excess of per sq ft for the best units. As a result, we believe the property is currently reversionary: Property Size Date Tenant Rent (psf) Term Incentives/Comments Unit 9 Guildford Industrial Estate 7,356 Dec-16 Surrey Hills Removals months rent free. Rent review and break in year 5. Unit 7 Guildford Industrial Estate 9,085 Nov-16 CCP Supplies No incentives. Rent review and break in year 5. Unit 7 Slyfield Industrial Estate 19,489 Aug-16 Anderton Music Retailing months rent free. Rent review and break in year 5. GUILDFORD RIVERSIDE BUSINESS PARK, WALNUT TREE CLOSE, GUILDFORD, GU1 4UG

INVESTMENT MARKET The multi-let South East industrial investment market has proved incredibly resilient since the European Referendum vote with continued strong investor demand for prime stock.

2016 and 2017 have seen a number of South East industrial investments launched to the market that were received very well, with competitive bidding.

Recent comparable transactions include: Building Town/City Date Area (sq ft) AWULT (break) Price NIY CV (psf) Phase 300 Centennial Park Elstree U/O 112,214 2.9 c. 28.50m c. 4.70% c.

9 INVESTMENT MARKET The multi-let South East industrial investment market has proved incredibly resilient since the European Referendum vote with continued strong investor demand for prime stock. Assets located within the South East remain the preference as investor confidence towards location, occupational demand and vacancy risk improves and 2017 have seen a number of South East industrial investments launched to the market that were received very well, with competitive bidding. A number of prime assets have traded at net initial yields below 5% driven by pent up demand for well-located estates. Recent comparable transactions include: Building Town/City Date Area (sq ft) AWULT (break) Price NIY CV (psf) Phase 300 Centennial Park Elstree U/O 112, c m c. 4.70% c. 255 Orchard Business Park Woking U/O 75, c m c. 4.75% c. 280 Egham Business Park (spec funding) Egham Jan ,000 N/A 30.50m 4.60% 277 Reading Approach Reading Jan-17 81, m 4.85% 159 Elstree Trade Park Borehamwood Dec-16 61, m 4.43% 275 Chessington Park Chessington Sep-16 95, m 4.96% 189 Clayton Business Centre Hayes Sep-16 35, m 4.60% 212 Puma Trade Park Mitcham Aug-16 47, m 4.89% 226 VAT The property is elected for VAT and it is proposed that the sale will be treated as a Transfer of Going Concern (TOGC). DATA ROOM There is a legal data room for the property which contains an environmental report, flood risk surveys, key tenancy and service charge information, title documents and EPC s. Access to it can be obtained on request. PRIME FREEHOLD TOWN CENTRE MULTI-LET INDUSTRIAL AND TRADE COUNTER INVESTMENT

PROPOSAL We are instructed to seek offers in excess of 8,633,000 (Eight Million Six Hundred and Thirty Three Thousand Pounds) for the freehold interest, subject to contract and exclusive of VAT.

10 PROPOSAL We are instructed to seek offers in excess of 8,633,000 (Eight Million Six Hundred and Thirty Three Thousand Pounds) for the freehold interest, subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 5.00%, an attractive reversionary yield of 5.71%, an equivalent yield of 5.39%, and a low capital value of 181 per sq ft, after assuming purchasers costs of 6.68%. FURTHER INFORMATION Should you require further information or wish to view the property, please contact either: Julian Gallagher Tel: Mob: jgallagher@lewisellis.co.uk John Ellison Tel: Mob: jellison@lewisellis.co.uk James Elkington Tel: Mob: jelkington@lewisellis.co.uk GUILDFORD RIVERSIDE BUSINESS PARK, WALNUT TREE CLOSE, GUILDFORD, GU1 4UG Lewis Ellis LLP for themselves or nominees or lessors of this property whose agents they give notice that: (1) the particulars are set out as a general outline only for the guidance of the intending purchasers or lessees, and do not constitute part of an offer or contract; (2) all descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are given in good faith and are believed to be correct, but any intending purchasers or tenants should not rely on them as statements or representations of fact but satisfy themselves by inspection or otherwise as to the correctness of each of them; (3) no person in the employment of Lewis Ellis LLP has any authority to make or give any representation or warranty whatever in relation to the property. Designed and Produced by Creativeworld. Tel: March 2017.

Units1-3. Slough INTERCHANGE WHITTENHAM CLOSE, SLOUGH SL2 5EP PRIME THAMES VALLEY REVERSIONARY INDUSTRIAL INVESTMENT OPPORTUNITY

Units1-3. Slough INTERCHANGE WHITTENHAM CLOSE, SLOUGH SL2 5EP PRIME THAMES VALLEY REVERSIONARY INDUSTRIAL INVESTMENT OPPORTUNITY Slough Units1-3 INTERCHANGE WHITTENHAM CLOSE, SLOUGH SL2 5EP PRIME THAMES VALLEY REVERSIONARY INDUSTRIAL INVESTMENT OPPORTUNITY Investment Summary Forms part of a well established, multi-let industrial