Ashdown House125 High Street, Crawley, West Sussex RH10 1DQ

South East Office Investment Opportunity

• Offers are invited in excess of £7,260,000(Seven Million Two Hundred and SixtyThousand Pounds) for the freehold interest,subject to contract and exclusive of VAT. Apurchase at this level would reflect a net initialyield of 8.25% after allowing for purchaser’scosts of 5.80%, reflecting a low capital value of£211 per sq ft

Proposal

• High quality, South East office investmenttotalling 34,235 sq ft

• Situated in an established office location in theheart of Crawley town centre, 0.5 miles north ofCrawley Train Station

• Excellent micro location at the northern end ofthe High Street, near to the town’s retailprovision and opposite Crawley Leisure Park

• Let in its entirety by way of a reversionary leaseto ACE INA Services UK Limited with 5.4 yearsunexpired

• Rent passing at £633,650 per annum, whichequates to £19.39 per sq ft

• Low base rent £19.39 psf with prime rents now at£24.00 psf.

• Let to one of the world’s largest global insurancecompanies following the acquisition of TheChubb Corp.

• Excellent car parking ratio of 1:274 sq ft

• Freehold

Investment Summary

INVESTMENT SUMMARY

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THE MARTLETTS

CrawleyCrawley is an established office location in the south eastof England. The town is located 30 miles south of CentralLondon, 23 miles north of Brighton and 27 miles south eastof Guildford.

The town benefits from excellent transportcommunications being within 2.6 miles of the M23, whichlinks directly to the M25. Gatwick Airport is 4 miles awayand is one of the town’s largest employers, generatingaround 23,500 jobs and a further 20,000 jobs throughrelated activities. Occupiers from the aerospace sectorinclude Virgin Atlantic, British Airways, Thales and The CivilAviation Authority. There is also a wide range of nationaland international occupiers including Deloitte, KPMG, PwC,Grant Thornton and Nestlé.

Crawley has now developed into a main centre of industry,commerce and employment between London and theSouth Coast due to continuous economic growth andconsiderable residential development.

SituationAshdown House is prominently positioned to the northernend of Crawley High Street, in the heart of the town centre.The retail offer is quite extensive in the town centre and isconcentrated in two main locations, the pedestrianisedHigh Street and the County Mall, a modern, coveredshopping centre, are both located 0.6 miles to the southeast of the subject property.

The well-established Crawley Leisure Park is locateddirectly opposite, alongside the newly developed OriginOne and Two office buildings. Crawley train station issituated approximately 0.5 miles to the south of theproperty and the new Town Centre Morrisons store andTravelodge are located less than 100m away.

CommunicationCentral London – 30 milesBrighton – 23 milesGuildford – 27 milesPortsmouth – 57 milesM23 – 2.6 milesM25 – 18 miles

London Victoria – 42 minutesLondon Bridge – 52 minutesBrighton – 41 minutesGatwick Airport – 8 minutes

Gatwick – 4 milesHeathrow – 45 miles

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AshdownHouse

THREE BRIDGESRAIL STATION

CRAWLEY RAIL STATION 1 Crawley Leisure Park

2 Travelodge Crawley

3 Morrisons

4 Asda Superstore

LOCATION

M23(J10)

M23(J11)

Tenant has recentlyupgraded theaccommodation toinclude their globalData Centre

Ashdown House comprises a self-contained, L-shapedoffice building arranged over ground and three upperfloors.

The office has a glazed atrium entrance leading onto areception area, which provides access to the lifts andservice core. The office accommodation ispredominantly open plan with some partitioned offices.

The tenant has recently upgraded part of the propertyto operate as a data centre for their global emergencyback-up servers and are also undertaking a rollingrefurbishment of the office accommodation. Thiscommitment to the building was also evidenced by thenewly agreed 5 year reversionary lease.

The internal specification includes the followingfeatures:

• Suspended ceilings

• Two passenger lifts

• Air conditioning throughout the building

• Inset box lighting

• WC facilities on each floor

The property benefits from 125 car parking spacesproviding an excellent ratio of 1:274 sq ft.

SiteThe property is situated on a site with an area ofapproximately 1.24 acres (0.50 hectares).

DESCRIPTION

The plan is for indicative purposes only

AccommodationThe building has been measured in accordance with the RICSProperty Measurement 2015 and provides the following areas:

TenureThe property is held freehold.

TenancyThe property is let in its entirety to ACE INA Services UK Limitedand extended by way of a reversionary lease expiring 23 June2021. The vendor will top up the rent to approximately £633,650pa (£19.39 psf). The tenant has an option of a new lease for theperiod starting 24th June 2021 and ending 23rd June 2024.

Covenant Information ACE INA Services UK Limited (01509033)

ACE INA Services UK Limited was incorporated in 1980 andprovides tailored insurance solutions to a range of customers.They provide local knowledge and expertise, with dedicatedteams of professionals specialising in underwriting, survey riskassessment and claims settlement to meet their customers’specific needs.

ACE INA Services UK Limited have a Dun & Bradstreet rating of4A 2. They have a tangible net worth of £29,833,000 as at 31December 2014 and a lower than average risk of business failure.

ACE Limited/The Chubb Corporation

ACE Limited (Parent Company) completed their acquisition ofThe Chubb Corporation on 14th January 2016 for approximately$29.5 billion in aggregate, in cash and stock. ACE are adopting theChubb name and this merger has created one of the largest globalinsurance companies. They are now a market leader in commercialand personal property and the casualty insurance business withoperations in over 54 countries. The company will continue totarget and offer their services to large corporate clients, mid-market companies and to private individuals.

Description31 Dec 2012(£000s)

31 Dec 2013(£000s)

31 Dec 2014(£000s)

Sales Turnover 184,614 209,223 186,168

Pre-Tax Profit 4,957 (476) (3,377)

Net Worth 6,345 33,113 29,833

Description Area (sq m) Area (sq ft)

Ground Floor 898 9,671

First Floor 916 9,857

Second Floor 922 9,927

Third Floor 444 4,781

Total 3,181 34,235

Crawley Occupational MarketTop headline rents in Crawley currently stand at £24.00 per sq ftin the town centre. This progression has been in conjunction with areduction in incentives, meaning that Crawley is also seeing rentalgrowth on a net effective basis. Key occupational transactions areset out below:-

South East Office Investment Market

Date Property TenantArea (sq ft)

Term Certain

Price Price (psf)

Apr-15 St Johns House, Haslett Avenue Broadsoft 10,988 5 years £247,230 £22.50

Jun-14 Portland Building, High Street Rawlinson Butler 11,096 – £266,304 £24.00

Mar-14 Origin Two, High Street RBW Consulting 5,000 5 years £115,000 £23.00

Mar-14 Origin Two, High Street ASB Law 11,000 5 years £247,500 £22.50

Feb-14 Pegasus Two, Gatwick Road Palmer & Harvey 12,700 10 years £273,050 £21.50

OFFICE MARKET OVERVIEW

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

Date PropertyArea (sq ft)

WAULT Price NIY Purchaser

Nov-15 Connaught House, Guildford 27,921 - £7,520,000 - Baltane Asset Management

Nov-15 Mallards Reach, Maidenhead 37,544 5.70 £16,850,000 6.25% Kames Capital

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

Aug-15 Central Court, Orpington 67,007 3.50 £10,300,000 8.19% Brydell

Jul-15 Leonardo Building, Crawley 110,545 16.50 £45,300,000 5.30% F&C REIT

Jul-15 Gateway House, Guildford 16,781 3.00 £6,900,000 5.90% F&C REIT

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

Mar-15 Warwick House, Redhill 20,434 6.60 £5,180,000 7.90% MJP Nominees

Mar-15 Tubs Hill House, Sevenoaks 64,800 - £11,000,000 - Prime Place

Sep-14 Newplan House, Epsom 23,100 4.25 £6,890,000 6.25% Cornerstone Real Estate

VATThe property has been elected for VAT.

EPC RatingThe property has an EPC rating of 120.

Web Accesswww.cushwakesales.com/cw/ashdownhouse

PROPOSAL

Offers are invited in excess of £7,260,000 (Seven Million Two Hundred and Sixty Thousand Pounds) reflecting a net initial yield of 8.25%, having allowed for purchaser’s costs of 5.80%, reflecting a lowcapital value of £211 per sq ft.

South East office investment offering anattractive Net Initial Yield

InvestmentRationale

Fully income producing and let to one of theworld’s largest global insurance companiesfollowing the acquisition of The Chubb Corp

Low base rent £19.39 psf with prime rents nowat £24.00 psf

Tenant committed to the building through thenewly agreed reversionary lease providing 5.4years unexpired and have recently beenupgrading Ashdown House to include theirglobal Data Centre

Excellent communication links and within closeproximity to Gatwick Airport

Strategically located in the heart of Crawleytown centre at the northern end of the HighStreet near to the town’s retail provision anddirectly opposite Crawley Leisure Park

February 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 Limited 0115 972 4000

Cushman & Wakefield LLP43/45 Portman SquareLondon W1A 3BG

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

Josh BeebeeE: josh.beebee@cushwake.comT: +44 (0) 207 152 5266

Lyndsay BarnesE: lyndsay.barnes@cushwake.comT: +44 (0) 207 152 5295

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