THORPE WOOD, PETERBOROUGH, PE3 6WT

LONG INCOME OFFICE INVESTMENT OPPORTUNITY WITH GUARANTEED UPLIFTS

THORPE WOOD HOUSE

INVESTMENT SUMMARY• Peterborough is an established office location in

Cambridgeshire and one of the fastest growing cities in the UK.

• Thorpe Wood House is strategically located within close proximity of the city’s ring road system and A1(M) north-south trunk road.

• 65,405 sq ft of headquarters office accommodation arranged over 4 floors.

• 346 car parking spaces providing an excellent ratio of 1:190 sq ft.

• Freehold.

• Entirely let to Anglian Water Services Ltd (D&B Rating 5A 1).

• Long unexpired lease term of circa 11.3 years.

• Income of £1,057,995 per annum (£16.18 per sq ft) with a guaranteed increase to £1,226,507 per annum (£18.75 per sq ft) in December 2023.

• The 2023 rent review is to the higher of the Open Market Rent or 3% per annum increases compounded 5 yearly.

Offers are sought in excess of £13,250,000 (Thirteen Million Two Hundred and Fifty Thousand Pounds) subject to contract and exclusive of VAT.

A purchase at this level would reflect a Net Initial Yield of 7.5% on the topped up income and a capital value of £203 per sq ft assuming purchaser’s costs of 6.72%.

Assuming the minimum guaranteed uplift in December 2023, the running yield will increase to 8.7%.

2THORPEWOODHOUSE

11.3 YEARS UNEXPIRED WITH GUARANTEED UPLIFTS LET TO A UK UTILITY COMPANY WITH A D&B RATING OF 5A 1

LOCATIONPeterborough is a cathedral city in Cambridgeshire, situated in the heart of East England. The city is strategically located approximately 80 miles north of London, 77 miles east of Birmingham and 32 miles north of Cambridge.

Peterborough has become established as an important regional centre for commerce, industry, shopping, health, education and leisure and benefits from a diverse economy, ranging from innovative small businesses to large global headquarters. The city has been recognised as one of the fastest growing cities in the UK by population and has outpaced the rest of the country in housing stock growth (Cities Outlook 2017).

Peterborough is rising in prominence following continued investment, underpinned by the city’s ambitions and new initiatives to support economic growth. The Council’s emerging Local Plan makes provision for 27,625 new homes and 22,024 new jobs by 2036. Redevelopment plans include the £120 million regeneration of 20 acres of derelict land at Fletton Quay’s on Peterborough’s South Bank, delivering new office, residential, restaurant, leisure and cultural opportunities. Bath

Bristol

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A4Cardi�

SwanseaNewport

Cwmbran

Merthyr Tydfil

Brecon CheltenhamGloucester

Hereford

Swindon

Weston-super-Mare

TorquayPlymouth

Oxford

Milton Keynes

Reading

Maidenhead

Aylesbury

HighWycombe

Basingstoke

Heathrow

Guildford

London

Crawley

Maidstone

RoyalTunbridge Wells

Chelmsford

Colchester

IpswichNorthampton Bedford

Cambridge

Norwich

Lowestoft

King’s Lynn

PETERBOROUGH

Newmarket

Bury St Edmunds

Thetford

StevenageStansted

Luton

Leicester

CoventryBirmingham

Worcester

Telford

Stoke-on-TrentWrexham

Colwyn Bay

Derby

Nottingham

Manchester

She�eld

LeedsBradford

York

Liverpool

Preston

BlackburnBurnley

Exeter PortsmouthBournemouth Brighton

Eastbourne

Southend-on-Sea

DoverFolkestone

Kingston upon Hull

Grantham

Skegness

Doncaster Grimsby

ScunthorpeBarnsley

SalisburyWinchester

Taunton

BLACKWOODCaperphilly

Newport

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A47

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A1(M)

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Chester

Southport

Blackpool

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M27Southampton

ROAD

Peterborough benefits from its close proximity to the A1(M) motorway to the west of the city centre, which provides direct access to the national motorway network and the M25. The A1(M) serves as the principal connection between the south-east and the north-east of England. The A47 runs to the north of Peterborough which links west to the M1.

RAIL

Peterborough serves as a major interchange on the East Coast Main Line, which provides high-speed inter-city train services between London, Yorkshire, the North East and Scotland. The fastest journey time to London King’s Cross is 45 minutes, while Edinburgh Waverley can be reached in 3 hours 30 minutes.

Peterborough railway station also offers mainline rail links to Birmingham, Manchester, Leeds, Cambridge and Glasgow.

AIR

Luton Airport is 60 miles to the south and Stansted Airport is 65 miles to the south east, with a direct train service to Stansted with an approximate journey time of 85 minutes.

Map not to scale. For indicative purposes only.

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SITUATIONThorpe Wood House is situated on Thorpe Wood Road, providing excellent access to the city’s ring road system (A1260) which connects to junction 17 of the A1(M) motorway via the A1260 and A1139. The property is also a short distance from Junction 15 of the A47 dual carriageway which provides direct access to the A1(M) and M1 to the west.

Thorpe Wood is an established and highly accessible out of town office location, situated approximately 3 miles to the west of Peterborough city centre and the train station. Nearby occupiers include Travelex, Churchill Insurance and Haines Watts Accountants, among others. The area also benefits from a Virgin Active Health Club and Nene Park, a 2,535 acre country park offering a range of recreation facilities including two golf courses.

A15

A15

A16

A47

A47

A47

A1139

A1260

A1139

A1139

A1

A1(M)

J17

PETERBOROUGHSTATION

PETERBOROUGH

NEWBOROUGH

MARHOLM

LONDONMap not to scale. For indicative purposes only.

THORPEWOODHOUSE

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DESCRIPTIONThorpe Wood House is a self-contained L-shaped headquarters office building constructed in the 1980s. The property totals 65,405 sq ft of office accommodation arranged over ground and three upper floors. The building is of concrete frame construction with cavity brick elevations incorporating steel framed glazing along the length of each floor beneath a flat roof.

There are 346 car parking spaces set amongst landscaped surroundings with an independent access drive. This equates to a car parking ratio of 1:190 sq ft.

The building was extensively refurbished in 1998 and the specification now includes:

• Four pipe fan coil air conditioning• Suspended ceilings• Recessed lighting• Floor to ceiling height of approximately 2.7 metres• 150mm raised floors• Two third height glazing to exterior walls• Three 12 person passenger lifts serving all floors and a 250kg goods lift

SITE AREAThe site area extends to approximately 4.65 acres.

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

Floor Description Sq Ft Sq MThird Offices 14,495 1,346.6Second Offices 16,532 1,535.8First Offices 16,822 1,562.8Ground Offices 15,653 1,454.2Ground Stores 654 60.8Ground Reception 1,249 116.0Total 65,405 6,076.1

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TENUREFreehold.

TENANCYThe property is let in its entirety to Anglian Water Services Ltd on a reversionary lease from 24th June 2014 expiring on 23rd June 2028 providing an unexpired term of approximately 11.3 years.

The lease contains upward only rent reviews on the 25 December 2018 and 25 December 2023 to the higher of the Open Market Rent or the rent prior to review increased by 3% per annum compounded.

The current passing rent is £912,636 per annum which is guaranteed to rise to £1,057,995 per annum (£16.18 per sq ft) at review on 25 December 2018 and

£1,226,507 per annum (£18.75 per sq ft) at review on 25 December 2023, assuming a minimum 3% per annum compounded increase.

The vendor will top up the passing rent to the minimum increase in passing rent of £1,057,995 per annum at review in December 2018.

The tenant has been in occupation of the building for nearly 20 years having first occupied in 1998 and then signing a reversionary lease in 2008. They have invested considerably during their occupation to maintain the property to an excellent standard.

COVENANT

Anglian Water Services Limited supply water and water recycling services to approximately six million domestic and business customers in the east of England and Hartlepool. The company supplies and transports water across an area of 27,500 sq km, making it the largest water and water recycling company in England and Wales by geographic area.

Anglian Water Services Ltd is the regulated entity that trades as Anglian Water and is the principal business of Anglian Water Group Limited.

Anglian Water Services Limited – D&B: 5A 1

Anglian Water Services Limited have a D&B rating of 5A 1 which represents a minimum risk of business failure. Their accounts for the last three years are as follows:

31 Mar 2016 31 Mar 2015 31 Mar 2014Sales Turnover £1,185,400,000 £1,244,300,000 £1,214,000,000Profit / (Loss) Before Taxes £192,200,000 £160,700,000 £352,400,000Tangible Net Worth £2,885,000,000 £3,318,500,000 £1,085,900,000Net Current Assets (Liabilities) (£143,600,000) £343,200,000 £515,500,000

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Key Investment Transactions:

Date Property Address Town Sale Price Yield (NIY)

Term Certain Rent (per sq ft)

Cap Val (per sq ft)

Tenant (Guarantor)

Purchaser

Available Sutherland House, Russell Way

Crawley £16,500,000 (quoting)

6.25% (quoting)

14.50 £11.82 £177 Paymaster (1836) Ltd (Equiniti Group Plc)

-

Available Trinity House Ashford £5,550,000 (quoting)

6.50% (quoting)

12.00 £18.50 £266 Kent Community Health Nhs Trust

-

Available Henderson House Huntingdon £4,690,000 (quoting)

6.50% (quoting)

11.50 £15.23 £220 Anglian Water Services Ltd -

Under Offer One Emperor Way, Exeter Business Park

Exeter £4,740,000 (quoting)

6.50% (quoting)

10.50 £15.84 £229 Exeter Business Park Centre Limited (Regus)

Confidential

Jan-17 Westpoint Peterborough £25,100,000 7.29% 12.10 £11.62 £149 Multi-Let Atlantic Leaf

Sep-16 Elmbrook House Sunbury £7,160,000 6.25% 9.80 £24.50 £368 The A & A Group Limited Spelthorne Borough Council

Sep-16 Earlswood Court Solihull £10,500,000 6.66% 9.90 £17.70 £249 Paragon Financial Plc Nottingham City Council

May-16 800 The Boulevard, Capability Green

Luton £15,000,000 6.07% 13.70 £18.43 £304 Mpellam Holdings Ltd (Blue Arrow Ltd)

Tritax

Investor appetite for UK offices remains strong, encouraged by improving occupier markets and a shortage of good quality stock. This has been further exacerbated by the removal of stock for conversion to residential under ‘permitted development’ rights.

Demand is particularly strong for long, 10+ year income which offers a relatively high yield compared to other asset classes. Thorpe Wood House offers this opportunity, let to a strong covenant with long term income and a very attractive income yield.

SOUTH EAST INVESTMENT MARKET

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CONTACT DETAILSFor further information, or to arrange an inspection, please contact:

Bidwells LLP and Savills PLC act for themselves and for the vendors of this property, whose agents they are, give notice that:These particulars do not form part of any offer or contract and should not be relied upon as statements or representatives of fact. Bidwells LLP and Savills PLC have no authority to make or give in writing or verbally any representation or warranties in relation to the property. Any areas of measurements or distances are approximate. The text, photographs and plans are for guidance only and are not necessarily comprehensive. No assumptions should be made that the property has all necessary planning, building regulation or other consents. Bidwells LLP and Savills PLC have not carried out a survey, nor tested the services, appliances or facilities. Purchasers must satisfy themselves by inspection or otherwise. In the interest of Health & Safety, please ensure that you take due care when inspecting the property.Bidwells LLP is a limited liability partnership registered in England & Wales (registered number OC344553). Registered head office is Bidwell House, Trumpington Road, Cambridge CB2 9LD, where a list of members is available for inspection.Designed and Produced by Savills Commercial Marketing: 020 7499 8644 | March 2017

Bidwells25 Old Burlington Street, London W15 3AN

Andrew Groves 020 7297 6274 andrew.groves@bidwells.co.uk

Lucy Young 020 7297 6278 lucy.young@bidwells.co.uk

Savills33 Margaret Street, London W1G 0JD

James Emans 020 7409 8132 jemans@savills.com

Tory Richardson 020 7075 2853 trichardson@savills.com

EPCThe property has an EPC rating of F (146). Certificate available upon request.An EPC Rating Improvement Report states that if tenant works in the order of £130,000 are carried out to the lighting, the EPC rating will improve to D (100). A full copy of this report is available upon request.

VATThe property is elected for VAT.

PROPOSALWe are instructed to seek offers in excess of £13,250,000 (Thirteen Million Two Hundred and Fifty Thousand Pounds) subject to contract and exclusive of VAT.A purchase at this level would reflect a Net Initial Yield of 7.5% on the topped up income and a capital value of £203 per sq ft assuming purchaser’s costs of 6.72%. Assuming the minimum guaranteed uplift in December 2023, the running yield will increase to 8.7%.

9THORPEWOODHOUSE

A SALE ON BEHALF OF: