FREEHOLD MULTI LET OFFICE PARK INVESTMENT EASTPOINT BUSINESS PARK, SANDY LANE, OXFORD OX4 6LB

FREEHOLD MULTI LET OFFICE PARK INVESTMENT EASTPOINT BUSINESS PARK, SANDY LANE, OXFORD OX4 6LB

Investment Summary Freehold modern multi-let detached Grade A specification office park with an excellent car parking ratio of 1:286 sq ft. Located 2 miles south east of Oxford City Centre, within close proximity to Oxford Business Park. Excellent access to the M40 motorway located 2 miles to the east. The property comprises 5 detached buildings providing a total net internal area of 6,950.60 sq m (74,823 sq ft). Let to 5 tenants on FRI terms providing a WAULT to expiry of in excess of 8 years (6.25 years to breaks). The vendor will provide a 12 month rent, rates and service charge guarantee over the vacant accommodation. The rental income on sale (including rent guarantees) will be 813,318 per annum, reflecting a very low rent of 10.86 psf overall. There are profit linked top up provisions within the serviced office lease that are expected to provide further income. Active management opportunities including lease renewals or extensions with the existing tenants that are in full occupation, letting the vacant accommodation, continued growth of the serviced office business and potential use diversification. We are seeking offers in excess of 8,150,000 (Eight Million, One Hundred and Fifty Thousand Pounds) which reflects a low capital value of 109 psf and a net initial yield of 9.43% after allowing for standard purchase costs of 5.8%.

Location Oxford is a globally renowned University City and a major commercial centre, strategically positioned in the South East of England approximately 50 miles west of London, 68 miles south of Birmingham and 27 miles north of Reading. The city is well connected to the national motorway network with the A40 and the A39 providing access to Junctions 8 & 9 of the M40 respectively. In addition the A34 provides dual carriageway access to the M4 (Junction 13) to the South. By rail First Great Western and Virgin Trains operate frequent services to Reading and London Paddington with fastest journey times of approximately 10mins and 55mins respectively. Heathrow and Birmingham international airports are located approximately 47 miles to the south east and 66 miles to the north respectively. Major employers in Oxford include the Universities of Oxford and Oxford Brookes, BMW Mini, British Gas, Oxfam, Oxford University Press and the Unipart Group of Companies. d Bliston M50 M52 M5 Gloucester Cheltenham M6 M5 Worcester Stroud Lyneham M6 TOLL Chippenham Trowbridge Birmingham M6 Birmingham M42 Cheltenham East Midlands M42 Coventry Coventry M40 M4 M69 Oxford Basingstoke Banbury Reading Newbury Leicester Corby Kettering Northampton M1 Milton Keynes Maidenhead Aylesbury M40 M3 M4 Guildford Bedford M25 Sut Peterborou A1 (M) Heathrow Huntingd Luton M25 Gatwick Lond Londo Cro Situation OXFORD Eastpoint Business Park is situated approximately 2 miles south east of Oxford City Centre, prominently fronting and accessed from the A4142 Oxford ring road, at the entrance to Sandy Lane West and in-between the junctions for the A4158 into the City Centre and Oxford Business Park at the B480 intersection. The ring road or Eastern Bypass provides excellent access to the A40 and the A34. Grandpont A4144 B4495 A4158 B480 Temple Cowley Eastpoint Business Park occupies a highly prominent position, adjacent to A4142 by-pass, with its own easily accessed and visible entrance. A34 B4495 Nearby amenities include the Oxford Retail Centre, Templar s Square Shopping Centre and a large Sainsbury s supermarket. Leisure facilities can be found at the David Lloyd Tennis Centre at Oxford Business Park and Ozone at Minchery Farm. SOUTHERN-BY-PASS RD EASTERN BY-PASS RD A4142 EASTERN BY-PASS RD Littlemore Kennington A4074 A34

Description Eastpoint comprises a mature business park with 5 self contained two and three storey office buildings, with separate access and car parking for each property. Whilst currently owned and managed as a single business park, the self containment of each of the buildings would allow future flexibility if desired. The office buildings are of brick and stone elevations with double glazed windows and doors. Internally the general specification includes raised access floors (excluding the ground floor of Orion House), suspended ceilings, Cat II lighting and new comfort cooling / heating systems along with refurbished atrium entrances and toilet facilities. There is provision for 264 car parking spaces reflecting an excellent ratio of 1:286 sq ft (1:26.58 sq m). The properties were extensively refurbished in 2007 and there is consequently minimal requirement for capital expenditure in the short to medium term. Heritage Gate Sandford Gate Meridian House

Accommodation The property has been measured in accordance with the RICS Code of Measuring Practice (Sixth Edition) and comprises a net internal area (NIA) as shown below: Meridian House Orion House Beaumont House Sandford Gate Heritage Gate Building Floor Sq M Sq Ft Heritage Gate Reception 25.91 279 Chatsworth House Whole 253.90 2,733 Sandringham House Whole 401.06 4,317 Marlborough House Whole 404.13 4,350 Windsor House Whole 257.06 2,767 Sub - Total 1,342.08 14,446 Sandford Gate Reception 28.20 314 Ground Floor 477.80 5,144 First Floor 494.50 5,324 Second Floor 495.70 5,336 Sub - Total 1,497.00 16,118 Beaumont House Ground Floor 660.00 7,103 First Floor 651.00 7,016 Sub - Total 1,311.00 14,119 Meridian House Ground Floor 822.19 8,850 Indicative Title Boundary (OS Plan available upon request) First Floor 787.33 8,475 Sub - Total 1,609.52 17,325 Orion House Reception 22.00 236 Ground Floor 575.00 6,187 First Floor 594.00 6,392 Sub - Total 1,191.00 12,815 Total NIA 6,950.60 74,823 Site The site is broadly level and extends to an area of approximately 1.466 hectares (3.62 acres), with prominent frontage to the Oxford ring road extending to approximately 183m (600ft).

Tenancies The property is multi let to 5 tenants. The total net income received is 813,318 per annum as set out in the schedule below. Tenure Freehold. Property Tenant Name Description Sandford & Heritage Gate Clarendon Enterprise Centre Ltd Total Area (ft²) Lease Start Years Expiry Date (Break Date) Whole 30,564 1 TBC 10 TBC (5th Year) Next Review TBC (5th Year) Current Income (per annum) Sub-Total 30,564 242,000 Rent Rate (per ft²) Comments 242,000 8.00 Subject to a Top Up Rent to a maximum of 14.50 per sq ft ( 438,625 per annum). Rent deposit 181,500. See Note 2 below. Beaumont House Cancerpartnersuk Ltd Whole 14,119 24/07/2013 20 23/07/2033 24/07/2018 173,550 12.29 Rental steps through to 2018. Vendor to top-up incentive, further details available upon request. Rent deposit of 86,775. Sub-Total 14,119 173,550 Meridian House Carrier Refrigeration UK Ltd Innovista International Part Ground Flr 8,850 21/02/2014 5 20/02/2019 (21/02/2017) 124,348 14.42 TBO at end of 3rd year. Rent deposit of 74,608. Suite A, 1st Flr 3,000 21/05/2010 9 20/05/2019 21/05/2016 30,000 10.00 Rent deposit 4,530. Complete IT Ltd Suite B, 1st Flr 900 01/04/2012 5 31/03/2017 12,780 14.20 Current passing rent 8,775pa increases to 12,780pa from 1/4/2015 - Vendor to top-up rental step. Index linked s/c cap currently at 3.25 psf. Vacant (Rent Guarantee) Vacant (Rent Guarantee) Suite C, 1st Flr 1,745 24,430 14.00 12 months Rent, Rates and Service Charge guarantee to be provided by vendor Suite D, 1st Flr 2,830 39,620 14.00 12 months Rent, Rates and Service Charge guarantee to be provided by vendor Sub-Total 17,325 231,178 Orion House Vacant (Rent Guarantee) Whole 12,815 166,590 13.00 12 months Rent, Rates and Service Charge guarantee to be provided by vendor Sub-Total: 12,815 166,590 Sub-Total Beaumont, Meridian, & Orion House: 44,259 556,418 Total: 74,823 813,318 1. Rent calculated off an area of 30,250 sq ft (excludes Sandford Gate reception). 2. Lease provides for a headline rent of 8.00 per sq ft ( 242,000 pa). For any surplus generated over the equivalent of 10.00 psf, the excess shall be split equally between the Landlord and Tenant until the Landlord receives a Top Up equivalent to 6.50 psf ( 196,625 pa). Therefore, the summation of base rent and top up rent: 14.50 psf ( 438,625 pa). Base rent and surplus cap subject to a 3% compounded fixed increase at the 5th anniversary of the term to 9.27 psf ( 280,544.33 pa) and 7.54 psf ( 227,942.26 pa), therefore a maximum of 508,487 pa.

Clarendon Enterprise Centre Limited The service office operator, who trades as Clarendon Business Centres, has operated from the business park since April 2009 with rapid growth which enabled occupation rates of 87% at Sandford Gate and 80% at Heritage Gate to be achieved as at April 2014. For the 12 month accounting period through to their year end in March 2014 Clarendon Business Centres generated a gross income of 1,187,310 against a total expenditure of 717,575 producing a surplus of 469,735 per annum which reflects 15.37 per sq ft overall. For the preceding 12 months the surplus was 391,219, reflecting 12.80 per sq ft. Clarendon Enterprise Centre Limited have agreed to enter into a lease over Heritage and Sandford Gate as detailed in the tenancy schedule. At the end of January 2015 occupancy levels were 85% and 50% for Heritage Gate and Sandford Gate, respectively. Since one major tenant vacated Sandford Gate in Summer 2014, occupancy in Sandford Gate has been rising leading to excellent turnover rental growth potential in 2015 and beyond. In terms of the Top Up Rent, the table below shows what the landlord would have received over the last three years, had Clarendon been on a lease since then (annually to 12 months for the year ending March 2015). To Year End Top Up Rent to Landlord Total Rent to Landlord 31/03/2015* 2.86 10.68 31/03/2014 5.71 13.71 31/03/2013 4.22 12.22 * Annualised based on figures to date Covenants Of the total rent, 30% is secured against Clarendon Enterprise Centre Limited, as described overleaf. A further 21% of the income is from the strong covenant of Cancerpartnersuk Limited (www.cancerpartnersuk.org). Further financial information on all covenants is available upon request.

Market Commentary Oxford is the principal commercial centre of Oxfordshire with the University, motor industry, Bioscience, IT and R&D sectors all strengthening the local commercial economy. The city centre office market is highly under-supplied with an extremely low rate of available office accommodation, which is being exacerbated by the high value of residential accommodation and current permitted development rights reducing the current stock further. Due to these factors Oxford has a long established out of town office market, which is experiencing a resurgence as office occupiers are increasingly being forced to consider space in the out-of-town markets; of which Eastpoint Business Park is one of the main centres. Total office take-up in the wider Oxford market for 2014 equated to 300,669 sq ft (2013: 136,669 sq ft) against a current availability of just 260,000 sq ft. The greatest demand has been found in the sub- 10,000 sq ft size band and there is a genuine lack of good quality new or refurbished office accommodation in Oxford, with only 33,469 sq ft of the available space being considered Grade A. Prime headline rents have remained relatively unchanged in Oxford over recent years at 22.50 per sq ft as evidenced by the Centrica pre-let on Oxford Business Park. Recent activity has seen all remaining Grade A availability in the out of town market taken up. Eusapharma acquiring 14,000 sq ft at Oxford Business Park at a headline rent of 19.50 psf and Oxford Nanopore acquiring 7,500 sq ft on Oxford Science Park in November at 19.00 psf. Indicative Cancerpartnersuk fit out.

Investment Market Commentary The investment market in the South East has seen sustained demand for high quality offices, particularly for well located assets with asset management initiatives available. The value of investments transacted in the Thames Valley during Q4 2014 totalled over 452.9m. Furthermore, the value of Thames Valley office investments sold during 2014 exceeded 1.225bn, maginally ahead of 2013 ( 1.16m). Oxford is considered a highly desirable location with a finite supply and little Grade A availability. As such opportunities for investors to gain exposure to the University City of Oxford are extremely rare. Eastpoint Business Park, comprising refurbished Grade A accommodation, offers a good example of self contained office accommodation on the outskirts of the City centre. As a multi let office investment with low recessionary passing rents and significant growth potential, we believe Eastpoint offers a rare opportunity for a purchaser to undertake a number of asset management initiatives in a market with a supply and demand imbalance, providing excellent opportunities to deliver rental and capital growth. Date Jan 15 Jan 15 June 14 Address 3-11 West Way, Minns Business Park, Oxford Lumen House, Harwell Business Park, Oxford Cancer Partners UK, Linford Wood Medical Centre, Milton Keynes Term Certain Price ( m) Yield (%) Cap Val PSF ( ) 7.94 4.6 6.15 322 8.75 3.41 8.30 195 18.75 3.29 5.75 182 June 14 Inspired, Bracknell 5.6 13.2 4.98 162 May 14 Anglo Office Park, Amersham 3 5.02 8.66 215 Dec 13 Charter Court, Slough 3.75 9.81 8.10 208 Nov 13 100 Berkshire Place, Winnersh 4.75 12.1 7.27 238 Jul 13 Buxton Court, Oxford 4.25 4.20 9.09 229 Aug 12 Jordan Hill Business Park, Oxford 6 9.425 9.17 146 Nov 11 Parkway Court, Oxford 3 5.26 10.90 162

EPC Each property has individual EPC s which are available upon request. The certificate scores range from 87-99, which equates to a D rating. VAT The property is elected for VAT and therefore VAT will be payable on the purchase price. Proposal We are seeking offers in excess of 8,150,000 (Eight Million One Hundred and Fifty Thousand Pounds) which reflects a low capital value of 109 psf and a net initial yield of 9.43% after allowing for standard purchase costs of 5.8%. Viewing & Further Information For further information or to arrange a viewing please contact the sole agents. Nick Lloyd Tel: +44 (0) 20 7198 2221 nlloyd@lsh.co.uk Kevin Wood Tel: +44 (0) 1865 200 244 kwood@lsh.co.uk Charlie Lake Tel: +44 (0) 20 7198 2227 clake@lsh.co.uk Laura Sweet Tel: +44 (0) 20 7198 2393 lsweet@lsh.co.uk Details also available on www.lshinvestmentsales.co.uk Misrepresentation Act 1967: 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 ena 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. Lambert Smith Hampton: March 2015 Produced By: Barbican Studio 020 7634 9574 United Kingdom House 180 Oxford Street London, W1D 1NN T: +44 (0)20 7198 2000 F: +44 (0)20 7198 2001 www.lsh.co.uk