COUNTY OAK WAY, CRAWLEY RH11 7STTESLA MOTORS

SOUTH EAST CAR DEALERSHIP INVESTMENT OPPORTUNITY

• Crawley is an affluent commuter town,approximately 32 miles south ofCentral London

• Prominently situated on County Oak Wayin an established area of mixed usecommercial and retail warehousing, inclose proximity to County Oak Retail Park

• Newly refurbished car dealership facilityarranged over ground and first floors,totalling circa 16,737 sq ft (1,555 sq m) with50 forecourt display spaces and a further25 secure compound spaces

• The entire property is let on a 7 year lease from8 August 2014 to Tesla Motors Limited (a wholly owned subsidiary of Tesla Motors, Inc.)

• Initial rent of £170,000 per annum(£10.15 psf). The vendor will top up anyunexpired rent free period

• Uncapped RPI rental increases fromyear 3

• Tenant only break option at year 5

• Freehold

We are instructed to seek offers in excess of £2,000,000 (Two Million Pounds), subjectto contract and exclusive of VAT. A purchase at this level will reflect a Net Initial Yield of 8.03% after allowing for normal purchaserscosts of 5.8%.

INVESTMENT SUMMARY

2TESLA MOTORS, CRAWLEY

A24

A22

A21

A26

A21

A22

A22

A31

A246

A246

A24

A23

A24

A3

A3

A3

M23

M25

M3

M4M4

M3

M25

M25

M26

CATERHAM

ORPINGTON

SIDCUP

NEWADDINGTON

THORNTON HEATH

HAYWARDSHEATH

EDENBRIDGE

CROWBOROUGH

EAST GRINSTEAD

GODALMING

CRANLEIGH

SLOUGH

GREATBOOKHAM

TADWORTH

SUDBURY ON THAMES

STAINES ON THAMES

ASCOT

CHERTSEY WALTON ON THAMES

RICHMOND

TEDDINGTON

SURBITON

ESHER

NEW MALDENMORDEN

KINGSTON UPON THAMES

BRENTFORD

REIGATE

HORLEY

DORKING

LONDON GATWICK AIRPORT

SIDLOW

RUSPER

CHARLWOOD

NUTHURST

BALCOMBE

SHARPTHORNE

LINGFIELD

SHERE

RUDGWICKHARTFIELD

COWDEN

IDE HILL

KNOCKHOLT

TATSFIELD

DOWNE

CHESSINGTON

HANDCROSS

BOLNEY

LINDFIELD

PENSHURST

OXTED

SHOREHAM

LONGFIELD

ASH

BELVEDERE

OCKLEYEWHURST

PEASLAKE

LOXWOOD

DUNSFOLD

KIRDFORD

CRAWLEY

LONDONLONDON

CRAWLEY

LEATHERHEAD

GUILDFORD

HORSHAM

WOKING

WEYBRIDGE

SEVENOAKS

TONBRIDGE

ROYALTUNBRIDGE

WELLS

DARTFORDGRAVESEND

GRAYS

CROYDON

MITCHAM

SUTTON

EPSOM

TWICKENHAM

HOUNSLOW

BROMLEY

LOCATIONCrawley is an affluent commercial centre and the county town of West Sussex. It is located approximately 32 miles (56 km) south of Central London, 22 miles (35 km) north of Brighton, 8.5 miles (13.5 km) north east of Horsham and 20 miles (32 km) south east of Guildford. Crawley is one of the key economic centres in the East Sussex region.

The property benefits from excellent road communication links being situated approximately 2.2 miles (3.6 km) to the south west of junctions 9 and 10 of the M23 motorway, which links to junction 7 of the M25 and the wider national motorway network. Crawley is also well served by a number of ancillary roads including the A23 and A2011.

Located approximately 2.5 miles (4 km) to the north of Crawley is London Gatwick Airport, the UK’s second largest airport after London Heathrow which caters for around 35 million passengers a year. Crawley railway station provides regular services to Gatwick Airport (8 minutes), Brighton (27 minutes), London Bridge (40 minutes) and London Victoria (42 minutes).

Crawley is an established commercial centre and home to a significant number of multi-national companies including the Thales Group, Virgin Holidays, CGG, Nestlé, TUI Travel, Easyjet and many other airport related companies.

DEMOGRAPHICSCrawley benefits from an extensive, affluent primary catchment area population of 499,000, above the regional average and ranking the town 45 out of the PROMIS centres on the PMA Affluence Indicator.

The area is characterised by a high concentration of working adults categorised in the more affluent AB class groupings comprising those employed within higher and intermediate managerial, administrative and professional roles.

Crawley’s population has grown significantly since 2001 and is forecast to see significantly above average growth over the period 2013-2018. The age profile includes a high proportion of adults of working age and includes a low proportion of young adults in the 15-24 years old category. Further demographic and economic indicators which demonstrate the strength of the catchment population include levels of car ownership occupation above the national average.

SAT NAV: RH11 7ST

3TESLA MOTORS, CRAWLEY

DESCRIPTIONThe property, recently subject to a circa £1 million tenant refurbishment, comprises a car dealership facility with a modern car showroom and workshop accommodation together with associated customer meeting and office facilities and parts department.

The main dealership building comprises a double height showroom area, finished to a high specification. The workshop has a minimum of 5.54m to eaves and at first floor there is an additional office and store area.

Externally, there is a display forecourt and customer parking for approximately 50 cars together with a secure yard/compound area to the rear with a further 25 spaces.

SITUATIONThe property is situated approximately 2.4 miles (3.8 km) north of Crawley town centre at the western end of County Oak Way in a mixed use commercial, trade and retail area. County Oak Way is accessed from the A23 dual carriageway (London Road), which is the main arterial route connecting the town in the south to the M23 motorway in the north.

The property is located in close proximity to County Oak Retail Park and the Manor Royal Business District, benefitting from easy customer access and egress from County Oak Way.

County Oak Retail Park

Manor Royal Business District

A23

A23

Flem

ing

Way

Ibis HotelThales

Betts Way

Gatwick Airport, 2.5 miles

A23

A planning application has been submitted for Betts Way, a brownfield site located to the east of the property, for “three retail units and associated parking, landscaping and servicing areas.” We understand M&S, Aldi and Smyth’s Toys have signed prelets and the new development will be accessed off County Oak Way.

County

Oak

Way

4TESLA MOTORS, CRAWLEY

500mm[1'-8"]

MERCHANDISE WALL 12'

4330[14'-2 1/2"]

4328[14'-2 3/8"]

DS WALL 12'

ABL EU CHARGER

500m

m[1

'-8"]

500mm

[1'-8"]

wayfairZMN1127

wayfairZMN1127

wayfairZMN1127

wayfairZMN1127

wayfairZMN1127

wayfairZMN1127

CONFIGCOUNTER

CONFIGCOUNTER

6'x 4

' gra

phic

9' CONCIERGE DESK

6' CREZENZA

CONFERENCE

500mm[1'-8"]

ABL E

U CHA

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S . Cart

3658[12'-0"]

7315

[24'

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]

2P LIFT

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2P LIFT

S. C

art

3658[12'-0"]

7315

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2P LIFT

S. Cart

3658[12'-0"]

7315

[24'

-0"

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2P LIFT

500m

m[1

'-8"]

WASHBAY

BENCH

ALIGNMENT

4514[14'-9 3/4"]

8007

[26'

-3 1/

4"]

664m

m[2

'-2 1

/8"]

4P LIFT

BISHAMONLIFT TABLE

STACKER

RTA

RTA

RTA

S3S3S3S3 S3

BATTERY BOX

S3S3S3

7315[24'-0"]

3658

[12'

-0"]

OPE

N BAY

BATTERY BOX

LISTA WALL 552x4176

2440

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'-0"]

1830[6'-0"]

1220[4'-0"]

CAR K

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CAMERA EXTERIOR

HEIGHT 4000+

CAMERA INTERIOR

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HEIGHT TBD

6'x 4

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phic

6'x 4

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phic

6'x 4' graphic

6'x 4

' gra

phic

1577[5'-2"]

1577[5'-2"]

TV

7315[24'-0"]

3658

[12'

-0"]

OPE

N BA

Y

ABL E

U CHA

RGER

ABL EU CHARGER

CABINET CHEM. CABINET INFLAM.

BATTERY REPAIR ROOMm2sq. ft484

45

SERVICEm2sq. ft6895

641

CONFERENCEm2sq. ft140

13

LOCKERROOMm2sq. ft214

20

OFFICEm2sq. ft107

10

HALLWAYm2sq. ft95

9

TOILETm2sq. ft24

2

TOILETm2sq. ft33

3

STORAGEm2sq. ft56

5

DELIVERYm2sq. ft1420

132

STORAGEm2sq. ft103

10

TECHNICALm2sq. ft53

5

SERVICE ADVISORSm2sq. ft529

49

LOUNGEm2sq. ft591

55

RECEPTIONm2sq. ft478

44

SALESm2sq. ft1916

178

1 HOUR RATED WALL

STORAGEm2sq. ft1797

167

SPRINKLERED ROOM

PlantAssumed

2500[8'-2"]

dm=9

00

FENCE + ROLLING GATE

dm=9

00

dm=900

OFFICE

IT RACK

1220[4'-0"]

610

[2'-0

"]

CCTV

OFFICEm2sq. ft775

72OFFICE

m2sq. ft169

16BREAK

m2sq. ft288

27

OFFICEm2sq. ft255

24

ITm2sq. ft60

6

STORAGEm2sq. ft27

2.5

HALLWAYm2sq. ft105

10

TOILETm2sq. ft38

4TOILET

m2sq. ft38

4

BATTERY BOX BATTERY BOX

SITE FLOORPLAN

GROUND FLOOR

FIRST FLOOR

5TESLA MOTORS, CRAWLEY

ACCOMMODATIONThe property provides the following approximate gross internal floor areas:

sq m sq ft

Showroom, Offices & Reception Area 539.0 5,802

Workshop 550.0 5,920

Parts Store & Office 294.0 3,165

First Floor Office & Store 171.9 1,850

Total Accommodation 1,554.9 16,737

The site extends to approximately 1.08 acres (0.43 hectares) with a 90m frontage to County Oak Way.

Externally there are circa 50 forecourt display spaces and 25 secure compound spaces.

TENUREFreehold.

TENANCYThe property is let in its entirety to Tesla Motors Limited on a full repairing and insuring lease for a term of 7 years from 8 August 2014. There is a tenant only break option at year 5, subject to a 6 month rent penalty. The rent will be reviewed at year 3 to uncapped RPI.

The current passing rent is £170,000 per annum, which equates to £10.15 psf.

There is a rent deposit guarantee of £100,000.

The vendor will top up any unexpired rent free period.COUNTY OAK WAY

6TESLA MOTORS, CRAWLEY

OCCUPATIONAL MARKETCrawley is a strong dealership location with the majority of brands including BMW, Audi, Ford, Land Rover and VW represented in the town itself or nearby. The market has remained active with Mercedes taking a 2.76 acre site on Gatwick Road for a new purpose 44,000 sq ft dealership and Caterham Cars relocating from their historic home to new premises on the Manor Royal estate. Additionally, Vauxhall have reopened off Fleming Way, circa one mile to the east of the subject property following the previous operator going into liquidation in 2012.

As an affluent town with a large population that also draws on a wider area, demand for dealerships in the town will remain strong.

COVENANTTesla Motors Limited is the UK arm of Tesla Motors, Inc., the world biggest independent car manufacturer of electric vehicles. A fast growing brand in the UK, the principle activities of the parent company are designing and manufacturing electric cars together with electric vehicle powertrain components. Tesla Motors, Inc. with a current market capitalisation or $24.65bn is a public company that trades on the NASDAQ stock exchange under the symbol TSLA and as of January 2014, Tesla employs 6,000 full-time employees.

Tesla Motors first gained widespread attention following their production of the first fully electric sports car, the Tesla Roadster in 2008. The company’s second vehicle was the Model S which launched in 2012 comprising a fully electric luxury saloon. The Model X which will be classified as a ‘crossover utility vehicle’ is set to enter volume production in 2015. Tesla also markets electric powertrain components, including lithium-ion battery packs to major manufacturers including Daimler and Toyota.

Telsa is growing the manufacturing side of its business to keep up with the increasing demand. The most recent letter to shareholders identifies Europe & Asia to be key growth drivers. They have recently announced a new lithium ion battery ‘Gigafactory’, stated to be operational by 2020. Although speculation is that it will be US based, when

Year End 31 December 2013

31 December 2012

31 December 2011

Turnover £6,571,152 £11,271,319 £11,191,654

Profit £192,735 -£155,858 -£133,007

Net Worth £1,860,267 £925,123 £1,160,029

the new factory comes online, Tesla expects to achieve a minimum of 30% reduction in production cost for their car batteries. By 2020, the Gigafactory is projected to achieve a battery production capacity to supply the manufacture of 500,000 Tesla cars per year, with an employment of approximately 6,500 further employees. In July 2014, it was announced that Panasonic has reached a basic agreement with Tesla Motors to participate in the factory.

CEO, Elon Musk, was an early investor in SpaceX, PayPal, Inc., and Zip2 as well as Tesla Motors, and is widely considered a co-founder of each. His current personal net worth is estimated to be in excess of $12bn.

Tesla Motors Limited has a Dun & Bradstreet rating of 2A2. The last three years accounts are summarised below:

There are a number of smaller brands without representation in the town itself and a lack of suitable opportunities in the town had led to dealers operating from outside the town. As the market continues to improve we expect there will be more pressure on some of these brands to improve or relocate their existing facilities.

Tesla are forecast to increase their number of dealerships in the UK from 7 to 10 over the coming year.

7TESLA MOTORS, CRAWLEY

EPCEnergy Performance Certificate is available on request.

VAT / TOGCThe Property is subject to an option to tax and VAT will be applicable to the sale. The transaction is expected to be treated as a Transfer of a Going Concern (TOGC).

CONTACTS For further information or to arrange an inspection please contact:

JONNY DOULTON020 7255 8099 jdd@rapleys.co.uk

Rapleys LLP is registered as a Limited Liability Partnership in England and Wales. Registration No: OC308311. Registered Office at Falcon Road, Hinchingbrooke Business Park, HUNTINGDON PE29 6FG. A full list of Members is available on our website or at any of our offices during normal business hours. Rapleys LLP operates an Environmental Management System which complies with the requirements of ISO 14001:2004. Regulated by the RICS. Any maps are for identification purposes only and should not be relied upon for accuracy. Reproduced by permission of Geographers A-Z Map Co. Ltd. Licence No. A0203. This product includes mapping data licensed from Ordnance Survey - © Crown Copyright 2001. Licence No. 100017302 and © Crown Copyright, All rights reserved. Licence No. ES 100004619. Misrepresentation Act: These particulars are produced in good faith and believed to be correct. Neither Rapleys, their joint agents (where applicable) or their client guarantees their accuracy and they are not intended to form any part of a contract. No person in the employment of Rapleys or their joint agents has authority to give any representation or warranty in respect of this property. All prices or rents are quoted exclusive of VAT. February 2015

PROPOSALWE ARE INSTRUCTED TO SEEK OFFERS IN EXCESS OF £2,000,000 (TWO MILLION POUNDS), SUBJECT TO CONTRACT AND EXCLUSIVE OF VAT. A PURCHASE AT THIS LEVEL WILL REFLECT A NET INITIAL YIELD OF 8.03% AFTER ALLOWING FOR NORMAL PURCHASERS COSTS OF 5.8%.

Designed and produced by THE GROUP www.completelygroup.com

MARTIN CAREY020 7255 8085 mic@rapleys.co.uk

FEBRUARY 2015 JOB NO: 12700.001

REBECCA JAMES020 7255 8040 rcj@rapleys.co.uk

8TESLA MOTORS, CRAWLEY