ONE ELMFIELD PARK. Bromley, BR1 1LU

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1 ONE ELMFIELD PARK Bromley, BR1 1LU 1 SOUTH EASt LONDON OFFICE REFURBISHMENT OPPORTUNITY

2 Executive Summary Well located town centre office building, with the majority of the accommodation vacant by 4th July Excellent opportunity to undertake a refurbishment and re-let in to a rapidly improving and under-supplied occupational market, where rents have reached per sq ft. Low site cover of 28%, providing potential to extend, subject to planning. Bromley is an affluent Greater London suburb, 11 miles south east of central London. Excellent communications, with a journey time to Victoria of 16 minutes. Situated within the commercial centre of Bromley, within a 2 minute walk of Bromley South Railway Station. Self-contained town centre office building extending to approximately 24,092 sq ft (2,238.1 sq m). 12 on site car spaces. Freehold. Ground to third floors let to MTA Solicitors and Solex Legal Services under 4 leases expiring on 4th July All leases contain tenant options to break on 4th July Fourth floor vacant (vendor to provide rent guarantee until 4th July 2016). The tenant has served notice to exercise their break options on the ground to second floors, therefore the majority of the building will be fully vacant by 4th July 2016 Total current income of 350,313 ( per sq ft). Offers are sought in excess of 4,000,000 for the freehold interest in 1 Elmfield Park, Bromley, subject to contract and exclusive of VAT. A purchase at this level would reflect a net initial yield of 8.28% after allowing for standard acquisition costs of 5.8%, and a capital value of 166 per sq ft. 2

3 Location Bromley is an affluent Greater London suburb located approximately 11 miles south east of Central London and 7 miles north east of Croydon. It benefits from excellent communications, being located off the A21 which provides quick access to junction 4 of the M25, approximately 7 miles to the south east. The town has excellent public transport connections with two railway stations: Bromley South and Bromley North which provide direct services to London Victoria, Blackfriars and Charing Cross with a fastest journey time of only 16 minutes. London Gatwick International Airport is located around 25 miles southwest. The London Borough of Bromley is the largest of the London Boroughs with a resident population of approximately 310,000 and the town is categorised by CACI as a Major District Centre. Some 1,800,000 people live within 6 miles of Bromley town centre. NOT TO SCALE The town s resident population is affluent compared to national averages and has an unemployment rate of 3.6% compared to a national average of 5.3% at the last Census. 3

4 Situation NOT TO SCALE The subject property is situated to the northern end of Elmfield Park, at its junction with Elmfield Road,which is within the commercial centre of Bromley, and lies within a 2 minute walk of Bromley South Railway station. The property also benefits from easy access to the High Street as well as the Intu and The Mall shopping centres. Office occupiers close by include Bank of America, Royal Bank of Scotland, Churchill and Direct Line Group Insurance, Capita and Baker Tilly. Close by to the subject property Cathedral Group are developing a 90m mixed-use scheme (St Mark s Square) which will significantly enhance the southern end of Bromley Town Centre. It will comprise 200 apartments with a landscaped public square surrounded by a nine screen multiplex VUE cinema, 25,000 sq ft of cafés and restaurants, a 130 bedroom Premier Inn hotel and a new 400 space secure underground car park. Completion is scheduled for late SUBJECT PROPERTY Key 1. Bank of America 2. Royal Bank of Scotland 3. Churchill Insurance and Direct Line Group 4. Capita 5. Baker Tilly 6. St Marks Square

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6 Description 1 Elmfield Park comprises a self-contained office building arranged over ground and four upper floors, extending to approximately 24,092 sq ft (2,238.2 sq m). The property was originally constructed in 1980 and the cladding was refurbished in There is on site parking for 12 cars. The building is of cast in-situ reinforced concrete framed construction with flat roofs largely weathered with asphalt. Aluminium framed curtain walling encloses the elevations to the office areas. Opening windows are of the horizontally pivoting type and all windows have sealed double glazed units. The property comprises a rectangular-shaped configuration and is accessed at the south western corner via a reception leading to two eight-person passenger lifts serving all floors. The offices provide clear open-plan office accommodation which benefit from excellent levels of natural light. The property is finished to the following specification- Suspended ceilings with recessed fluorescent lighting Gas fired central heating Comfort cooling to first, second and third floor offices. Two Kone 8-person passenger lifts serving all floors. Double-glazed windows. WC s on first to fourth floors 12 on-site car spaces Accommodation The building has been measured by Lane and Frankham in 2015 in accordance with the RICS Code of Measuring Practice (6th Edition) and provides the following approximate net internal floor areas: Ground Floor Floor Description (sq ft) (sq m) Ground Office Ground Office 4, First Office 4, Second Office 4, Third Office 4, Fourth Office 4, Total 24,

7 Site TenANCY The freehold title extends to approximately 0.48 acres (0.194 hectares). TenURE The property is held freehold Elizabethunder Title number SGL Wheeler House Car Park Wells House The property is let in accordance with the tenancy schedule below, details of which can be summerised as follows: The first, second and third floors are let to MTA Solicitors LLP under three separate leases from 5th July 2013 until 4th July 2018, with tenant breaks on 4th July The total rent payable by MTA Solicitors is 210,189 per annum reflecting approximately per sq ft. 15 to 17 ESS The ground floor is let to Solex Legal Services Limited from 5th July 2013 until 4th July 2018, with a tenant break on 4th July ELMFIELD ROAD 59 The total rent payable by Solex Legal Services Limited is 70,063 per annum reflecting approximately per sq ft c Prospects House The fourth floor is currently vacant, and a rent cover of 70,063 per annum ( per sq ft) will be provided until 4th July The tenant has served notice to exercise their break options on the ground to second floors. Therefore the majority of the building will be fully vacant by 4th July York House ELMFIELD PARK Coach House Mews 3 2 Kingfisher House The leases are drawn on full repairing and insuring terms with the tenant contributing to a service charge. HIGH STREET 21 to All of the leases are drawn outside the security provisions of the Landlord and Tenant Act TenANCY SCHEDULE Club 1a The total rent from the entire property is 350,313 per annum ( per sq ft) including the rent cover with regard to the fourth floor. 0m 10m 20m 30m 25 Tenant Floor Use Area (sq ft) Solex Legal Services Limited MTA Solicitors LLP Ordnance Survey Crown Copyright All rights reserved. Licence number Plotted Scale - 1:947 Passing Rent (pa) Passing Rent (psf) Ground Floor Office 4,767 70, First Floor Office 4,739 70, Second Floor Office 4,742 70, Term (Break) 05/07/ /07/2018 (04/07/2016) 05/07/ /07/2018 (04/07/2016) 05/07/ /07/2018 (04/07/2016) Comments Tenant has served notice to excercise break on 04/07/2016; Lease outside Landlord and Tenant Act Tenant has served notice to excercise break on 04/07/2016; Lease outside Landlord and Tenant Act Tenant has served notice to excercise break on 04/07/2016; Lease outside Landlord and Tenant Act Third Floor Office 4,767 70, /07/ /07/2018 (04/07/2016) Lease outside Landlord and Tenant Act Vacant Fourth Floor Office 4,793 70, Vacant Vendor to provide rent cover until 04/07/2016. Total 23, ,

8 Covenant InformatioN MTA Solicitors LLP is a multi-practice law firm with offices in London, Bromley and Manchester. The firm offers a broad range of legal services including: personal injury claims, employment law, wills and probate, commercial litigation, civil Litigation, business law, debt recovery for businesses and individuals, medical negligence and family law. The company s website is Solex Legal Services Limited are specialist property lawyers that offer legal services in all areas of residential and commercial property law, focusing on conveyancing, remortgaging services and general litigation. They represent banks, building societies, property management companies, finance companies and Government agencies. The company s website is PLANNING The property is not listed and is not located within a conservation area. Office Market Commentary Bromley is a well-established and popular office location which has attracted a range of professional service organisations over the years, in the main due to the rapid journey time to Central London and its ability to offer space which is at a discount to the neighbouring markets of Croydon, Redhill, Reigate and Epsom. Bromley s main office pitch lies along Elmfield Road (where the subject property is located) adjacent to the High Street and directly north of Bromley South Station, and also along Tweedy Road/Kentish Way to the north of the town centre, in close proximity to Bromley North station. For a number of years Bromley has suffered from a lack of Grade A office space in the town centre. Permitted Development rights have also impacted on office supply with buildings such as Title House (26,500 sq ft) on Elmfield Road being sold for residential conversion. Consequently there has been significant upward pressure on rents for what limited refurbished space has become available. Since early 2014 rents for refurbished space have increased from c per sq ft (achieved on Royal Court on Tweedy Road which was subsequently acquired by Threadneedle) to a current level of per sq ft. This level was recently achieved on a letting of 10,000 sq ft (10 year lease, no break and 6 months rent free) at Northside House (owned by Hermes). Consequently we consider a refurbishment of the subject property will be well timed to take advantage of the severe shortage of good quality space in Bromley. EPC Full details of EPC available upon request. VAT The property is registered for VAT and therefore VAT will be payable on the purchase price unless the property is sold by way of a transfer of a going concern (TOGC). Proposal Offers are sought in excess of 4,000,000 for the freehold interest in 1 Elmfield Park, Bromley, subject to contract and exclusive of VAT. A purchase at this level would reflect a net initial yield of 8.28% after allowing for standard acquisition costs of 5.8%, and a capital value of 166 per sq ft. Contact Richard Pope E: rp@nightingalepartners.com M: Will Collis E: wc@nightingalepartners.com M: A data room has been set up and access can be supplied upon request. Information includes- Occupational Leases Floor Plans Title Information EPC 38 Berkeley Square, London W1J 5AE T: +44 (0) Misrepresentation Act 1967 & Declaration Nightingale Partners Ltd for themselves and for the vendors or lessors of this property whose agents they are give notice that: (i) The particulars are set out as a general outline only for the guidance of intending purchasers or lessees, and do not constitute, nor constitute part of, an offer or contract. (ii) All descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are given in good faith and are believed to be correct but any intending purchasers or tenants should not rely on them as statements or representations of fact but must satisfy themselves by inspection or otherwise as to the correctness of each of them. (iii) No person in the employment of Nightingale Partners Ltd have any authority to make or give any representation or warranty whatever in relation to this property. All rentals and prices are quoted exclusive of VAT. All plans and maps provided with the particulars are for identification purposes only. Market information has been provided by Third Parties and should be verified. NOVEMBER