Linea HouseHarvest Crescent, Ancells Business Park, Fleet GU51 2UZ

Reversionary South East Multi-Let OfficeInvestment Opportunity

Linea House

CENTRAL LONDON

M3

• Offers are invited in excess of £3,450,000(Three Million, Four Hundred and FiftyThousand Pounds) for the freehold interest,subject to contract and exclusive of VAT

• A purchase at this level would reflect a netinitial yield of 8.31% after allowing forpurchaser’s costs of 5.80%, reflecting a lowcapital value of £156 per sq ft

• Attractive guaranteed reversionary yield of8.42% via the stepped rent in 2019. Potential forearlier reversion via the open market rentreviews to bring rents in line with ERV

Proposal

• Reversionary, high-quality multi-let officeinvestment in the south east, 38 miles fromCentral London

• Comprehensively refurbished in 2010, providing22,062 sq ft (2,049.52 sq m) of Grade A officeaccommodation arranged over ground and twoupper floors

• ERV in Ancells Business Park of £18.00 per sq ftwith good prospects for further rental growth asFleet sits at a discount to adjoining towns,including Farnborough (£27.50 psf) andCamberley (£22.00 psf)

• Excellent car parking ratio of 1:182

• Situated in the heart of Ancells Business Park,one of Fleet’s premier office locations

• Strategically located in close proximity to J4A ofthe M3 and Fleet Railway Station

• One of the foremost office buildings withinAncells Business Park

• 25% reduction in office stock in Fleet across2014-2015, owing to residential developmentconversions and lettings tightening office supply

• Freehold

• Fully let to 4 tenants: Verisk Analytics Ltd, AniteTelecoms Ltd, Grass Roots Meetings & Events Ltdand PRMA Consulting Ltd

• Total rent passing of £303,339 per annum,equating to a low £14.05 per sq ft

• Attractive WAULT of 6.37 years to expiries and2.21 years to breaks

• Guaranteed reversion in 2019 via a stepped rent

Investment Summary

Tenure & Tenancy

INVESTMENT SUMMARY

A5

M6

NOCK

RUGELEY

ROAD

M3

M4

M25

M23

A312

A308

A102

A

A232

A22

A217A243

A24

A3

A31

A331

A322

A33

A339

A

A3

A34

A303

9

HEATHROWAIRPORTATATRRPRRPRRP

HHHHHHEEEAAHHEEAAAAAIIRRRAAIRRRAIRR

678

910

122

3

4

11

10

8

6

13

14

5 4B

15

1

4A

MAIDENHEADMAIDENHEAD

BRACKNELLBRACKNELL

GUILDFORDGUILDFORD

KINGSTON-UPON-THAMES

KINGSTON-UPON-THAMES

STAINES-UPON-THAMES

STAINES-UPON-THAMES

HAMMERSMITHHAMMERSMITH

READINGREADING

FLEETFLEET

WEYBRIDGEWEYBRIDGE

FARNBOROUGHFARNBOROUGH

ALDERSHOTALDERSHOT

HOOKHOOK

MARLBOROUGHMARLBOROUGH

NEWBURYNEWBURY

WOKINGWOKING

BASINGSTOKEBASINGSTOKE

FARNHAMFARNHAMLOCATION

M3

AVONSDALE ROAD

KINGS ROADFL

EET

RO

AD

ELVETHAM ROAD

A30

13

ANCELLS ROAD

BLACKBUSHES ROAD

WO

OD L

ANE

G

UIL

DFO

RD R

OA

D

A32

7

BRA

MSH

OT

LAN

E

BRAMSHOTCOTTAGES

MIN

LEY

RO

A

D

A327

FLEET ROAD

BR

AM

SH

OT

LA

NE KENNELS

LANE

4A

NORTH HANTSGOLF CLUB

FLEET POND

3 21

4

Linea House

FLEET RAILSTATION

Fleet is situated in close proximity to the M3, with excellentconnectivity to Central London via road and rail. It ispositioned 38 miles south west of Central London, 16 milessouth east of Reading and 16 miles west of Guildford.

The town is located in the heart of the Blackwater Valley,which is a key commercial location in the south east ofEngland. The area is extremely affluent and is highlysought after to both live and work. Fleet has been votedthe best place to live in the UK for the past 5 years by theHalifax Quality of Life study. It is also popular with anumber of occupiers due to its proximity to CentralLondon, together with its skilled workforce, high-gradehousing stock, strong connectivity and good qualityschools.

A number of international corporates operate theirheadquarters from the area including: BAE Systems, Nokia,Virgin Media, Sun Micro Systems, Anite Telecoms, Siemensand BMW.

SituationLinea House is located in the heart of Ancells Business Parkwhich is one of Fleet’s principal office locations. The Park isstrategically positioned 1.5 miles north of the town centreand 1 mile north of the mainline railway station, andbenefits from a range of retail and leisure amenities withinclose proximity.

Ancells Business Park is accessed from Ancells Road offMinley Road, which is the main arterial route into the towncentre. Junction 4A of the M3 is situated approximately 2 miles to the east, providing direct access into London.The Park comprises a number of high-quality self-contained office buildings arranged in a secure landscapedenvironment, which is home to occupiers including Anite’sUK Headquarters, Regus and Rohde & Schwarz.

CommunicationCentral London – 38 milesGuildford – 17 milesWoking – 16 milesBasingstoke – 16 milesReading – 16 miles

London Waterloo – 37 minutesReading – 41 minutesSouthampton - 54 minutes

Heathrow – 22 milesGatwick – 48 milesSouthampton – 43 miles

FLEET TOWNCENTRE

1 Tesco Express

2 The Falkners Arms

3 Caffe Lusso

4 Premier Inn

121 car parking spaces,providing an excellentratio of 1:182 sq ft

Linea House is a self-contained multi-let office buildingproviding approximately 22,062 sq ft of Grade A officeaccommodation arranged in an ‘L’ shape over threefloors. The building is of steel frame construction,externally clad with brickwork under a slate roof. In2010, the building was comprehensively refurbished toprovide one of the best buildings on Ancells BusinessPark.

The internal specification includes the followingfeatures:

• Double height reception

• Air conditioning

• Fully accessible raised floors

• Metal tiled suspended ceilings with LG7 lighting

• 2 x 8 passenger lifts

• Male and Female WCs on all floors

• Disabled WC facilities on ground and second floors

• Landscaped approach

The property benefits from 121 car parking spaces,providing an excellent ratio of 1:182 sq ft.

SiteThe property is situated on a site with an area ofapproximately 1.31 acres (0.53 hectares).

DESCRIPTION

First Floor (Typical Floor)

The plan is for indicative purposes only

The building has been measured in accordance with the RICS Code of Measuring Practice(6th Edition) and provides the following net internal floor areas:

Tenancy

DemiseNIA (sq ft)

TenantCurrent Rent

(pa)Rent(psf)

Lease Start Lease ExpiryNextReview

Break Clause Comments

Ground Floor 7,276 Grass Roots Meetings & Events Ltd £90,263 £12.41 12/07/2012 08/07/2022 09/07/2018 09/07/2017 Tenant only break option (6 months’ notice)

First Floor 7,328 Anite Telecoms Ltd £109,635 £14.96 08/08/2012 07/08/2022 08/08/2017 08/08/2017 Tenant only break option (6 months’ notice)

Second Floor(Suite A)

2,885 Verisk Analytics Ltd £45,291 £15.70 12/04/2013 11/04/2023 12/04/2018 12/04/2018 Tenant only break option (6 months’ notice)

Second Floor(Suite B)

4,095 PRMA Consulting Ltd £58,150 £14.20 08/12/2015 07/12/2020 - -The vendor proposes to top up the rent to the Year 3 stepped rent of £58,150 pa. There is a further fixed uplift in Year 5 to £62,250 pa.

Total 21,584 £303,339 £14.056.37

(to expiry)WAULT

2.21 (to break)WAULT

Demise Area (sq m) Area (sq ft)

Ground Floor 675.96 7,276

First Floor 680.76 7,328

Second Floor 648.44 6,980

Total 2,005.16 21,584

Reception 22.00 237

Second Floor Corridor 22.36 241

Overall Total 2,049.52 22,062

ACCOMMODATION

TenureThe property is held freehold.

Grass Roots Meetings & Events Ltd (1092681)

Grass Roots Group PLC was founded in 1980 and is regarded as theworld’s leading provider of employee and customer engagementsolutions. It specialises in employee solutions, customer engagement,promotions and incentives, meetings and events. The company isheadquartered in Tring, Hertfordshire with a network of offices in 10countries with over 1,000 employees. It has featured in the Sunday TimesTop 100 Companies to work for in 2010, 2012 and 2014.

D&B Rating: 2A1

Anite Telecoms Ltd (1721900)

Anite Telecoms Ltd is a leading supplier of test and measurement solutionsto the international wireless market. The company was originally founded in1973 as Cray Electronics and changed its name in 1996 to Anite Group PLC.In August 2015, the company was acquired by US electronics test andmeasurement company, Keysight Technologies, in a deal worth £388million. Its 500 staff work from offices in 15 countries across Europe, theAmericas, Asia and the Middle East.

D&B Rating: 5A1

PRMA Consulting Ltd (05893400)

PMRA Consulting Ltd provide innovative and integrated solutions formarket access strategy, evidence generation, and value communication.The company was founded in 2006 and is headquartered in the UK andhas two other offices in the US and Greece respectively.

D&B Rating: C2

Description31 Dec 2014(£000s)

31 Dec 2013(£000s)

31 Dec 2012(£000s)

Sales Turnover 26,261 17,825 15,329

Profit / (Loss) Before Taxes 2,162 (1,499) (438)

Tangible Net Worth 3,781 925 2,487

Description30 Apr 2014(£000s)

30 Apr 2013(£000s)

30 Apr 2012(£000s)

Sales Turnover 64,982 76,366 70,382

Profit / (Loss) Before Taxes 8,813 23,517 17,427

Tangible Net Worth 62,523 65,575 47,680

Description31 Dec 2014(£000s)

31 Dec 2013(£000s)

31 Dec 2012(£000s)

Sales Turnover 6,287 5,695 4,835

Profit / (Loss) Before Taxes 1,911 1,413 906

Tangible Net Worth 20,954 352 (723)

Description31 Aug 2014(£000s)

31 Aug 2013(£000s)

30 Apr 2012(£000s)

Sales Turnover n/a 6,338 4,573

Profit / (Loss) Before Taxes n/a 179 167

Tangible Net Worth n/a 794 752

Verisk Analytics Ltd (1924205)

Verisk Analytics is a leading data analytics and risk assessmentcompany serving customers in insurance, energy, healthcare, financialservices, government and risk management. The company’s parentcompany, Verisk Analytics, Inc, is based in Jersey City, New Jersey andis traded on the NASDAQ 100, with a network of over 40 offices acrossthe globe. In 2014, it generated revenues in excess of $1.7 billion.

D&B Rating: 4A1

TENANT COVENANTS

Fleet is one of the principal office locations in the Blackwater Valleyregion, which comprises a number of established office centres suchas Farnborough, Camberley, Frimley, Hook and Aldershot. The areabenefits from an affluent and highly skilled catchment population, aswell as rental growth driven by occupiers priced out of CentralLondon. It is home to a number of major national and internationaloccupiers, including IBM, CSC, Fluor, Serco, Novartis, AON, MerrillLynch and QinetiQ.

Over the past two years, the Fleet office market has experienced asignificant reduction in the total level of stock and vacant supply.During 2014 - 2015 alone there has been a 25% loss of the office stockfrom alternative use development, including residentialdevelopment/PD. This squeeze on supply, combined with strongeroccupier demand, is having a positive effect on rental tones andincentives being achieved.

Headline quoting rents for grade A space on Ancells Business Park arecurrently at £18.00 per sq ft. These headline rent levels remain at asignificant competitive level against neighbouring Blackwater Valleytowns such as Farnborough (currently £27.50 per sq ft) andCamberley (currently £22.00 per sq ft).

The current passing rents in Ancells Business Park are at historicallylow levels with £26.50 per sq ft being achieved in 2001. As a result ofthe increased letting activity in Fleet during 2015 and rent differentialcompared with neighbouring towns, we fully expect there to beopportunities for rental growth at the subject property.

Date Property TenantArea (sq ft)

Lease Term(years)

Rent(psf)

Comments

Nov-15 Pinehurst II, Farnborough Business Park, Farnborough Time Inc 30,000 10 £26.50

July-15 Fleet One, Ancells Business Park, Fleet Bedrock Healthcare 4,500 10 £18.00 Break in year 5

July-15 Fleet One, Ancells Business Park, Fleet Murata 4,600 10 £18.00 Break in year 5

May-15 Flagship house, Fleet Adept Ltd 4,275 5 £16.25 Break in year 3

July-14 93 Fleet Road Nexus 4,300 5 £16.00

FLEET OCCUPATIONAL MARKET

The following represent some of the more notable leasing transactions in 2014/2015 in the Blackwater Valley:

The South East investment market has gone from strength tostrength over the past 18 months, and is currently experiencingstrong investor appetite. The market has continued to thrive and isdriven by increased occupier demand, reduced vacant rates andrental growth. The improvement in the occupational market is nowallowing investors to positively appraise assets based on evidenceand not just sentiment.

There is forecast for further rental growth and yield compressionin the South East markets, due to strengthening fundamentals,while well-located, good quality property in secondary markets areexpected to have the best prospects for capital growth over themedium term. In particular, investor demand is particularly strongfor high-quality multi-let properties, which offer assetmanagement initiatives and limited capital expenditure.

Date PropertyArea (sq ft)

PurchasePrice

CapitalValue (psf)

NIYWAULT(to break)

Purchaser

Sep-15 Omron House, Milton Keynes 23,062 £4,000,000 £173 7.68% 5.00 RBC Royal Bank

Aug-15 4 Tilgate Forest Business Park, Crawley 25,627 £6,830,000 £267 7.10% 7.00 Bromley Borough Council

Jul-15 4500 Parkway, Solent Business Park, Fareham 56,003 £10,000,000 £179 7.43% 5.80 Threadneedle

May-15 Lakeview West, Dartford 26,759 £7,450,000 £278 7.50% 2.83 CCLA

Nov-14 Newplan House, Epsom 23,100 £6,900,000 £299 6.25% 4.25 Cornerstone

Close proximity to London

InvestmentRationale

Affluent, established office location

in the Blackwater Valley

One of the best office buildings

in Ancells Business Park

22,062 sq ft (2,049.54 sq m) of

Grade A office accommodation

Guaranteed reversion in 2019

through the stepped rents

Fully income producing with zero

vacancy, underpinning the asset

being ‘best in class’

Passing off a low rent of

£14.05 per sq ft

Highly reversionary with an ERV

of £18.00 per sq ft

Improving office market, with

evidence of rental growth, shortening

incentives and reducing vacant levels

Potential to convert for residential

in the medium to long term

SOUTH EAST INVESTMENT MARKET

The following represent some of the more notable investment transactions in the South East:

EPC RatingThe property has an EPC rating of C and a score of 63. A copy of theEPC and recommendation report is available on the website below.

VATThe property has been elected for VAT which will therefore bechargeable on the sale price unless the transaction can be treated as aTransfer of a Going Concern.

PlanningThe property has planning consent for B1(a).

Web Accesswww.cushmanwakefieldinvestmentsales.co.uk/cw/lineahouse

PROPOSAL

We are seeking offers in excess of £3,450,000 (Three Million, Four Hundredand Fifty Thousand Pounds) for the freehold interest, subject to contract andexclusive of purchaser’s costs at 5.8%. A purchase at this level would reflect anattractive net initial yield of 8.31% and a guaranteed reversionary yield of 8.42% following the stepped rent in 2019. This reflects a low capital value of £156 psf.

January 2016

MISREPRESENTATION ACT 1967

Cushman & Wakefield LLP (and their joint agents if appointed) for themselves and for vendors or lessors of this property whose agents they are, give notice that: (1) The particulars are produced in good faith, are set out as ageneral guide only and do not constitute any part of a contract. (2) No person in the employment of the agent(s) has any authority to make or give any representation or warranty whatever in relation to this property. (3) Thisproperty is offered subject to contract and, unless otherwise stated, all rents are quoted exclusive of VAT. (4) Nothing in these particulars should be deemed to be a statement that the property is in good condition or that anyservices or facilities are in working order. (5) Unless otherwise stated, no investigations have been made regarding pollution or potential land, air or water contamination. Interested parties are advised to carry out their owninvestigations if required.

Production by PlusArt 0115 972 4000

Cushman & Wakefield LLP43/45 Portman SquareLondon W1A 3BG

Hurst WarneVictoria House, 18-22 Albert StreetFleet, Hampshire GU51 3PD

Rory TurnerE: rory.turner@cushwake.comT: +44 (0) 207 152 5205

Peter RichardsE: peter.richards@hurstwarne.co.uk T: +44 (0) 7803 078011

Max ClynesE: max.clynes@cushwake.comT: +44 (0) 207 152 5710

Chris LewisE: chris.lewis@cushwake.comT: +44 (0) 207 152 5554

OUR TEAM