For Sale Freehold - Office & Industrial Investment with Development Potential

For Sale Freehold - Office & Industrial Investment with Development Potential Yarmouth Business Park, Thamesfield Way, Great Yarmouth, Norfolk, NR31 0DW November 2015

Contents Investment Summary... 2 Location... 2 Description... 2 Tenancies... 2 Tenure... 2 Proposal... 2 VAT... 2 1. Location... 3 2. Situation... 3 3. Description... 3 4. Accommodation... 4 5. Tenure... 4 6. Tenancies... 4 7. Tenants Profile... 6 8. Development Potential... 6 9. Proposal... 6 10. Further Information... 7

Investment Summary Location The property is located to the west of Great Yarmouth Town Centre opposite Gapton Hall Retail Park and has a prominent frontage to the A47. Description Site A comprises a two storey office building and link building totalling 10,940 sq ft (1,017 sq m) and a two bay warehouse of 15,500 sq ft (1,440 sq m) on a 5 acre site (2.02 hectares). Site B is a self-contained storage yard extending to approximately 1.85 acres (0.75 hectares). The site cover is therefore 8%. The total built area is therefore 26,440 sq ft (2,457 sq m) and site area 6.85 acres (2.77 hectares). Tenancies Site A is let in its entirety to Perenco UK Ltd for a term of 15 years from the 3 rd November 2008 (8 years unexpired) at a current rent of 309,068 pa subject to annual upwards only indexed increases on the 3 rd November 2015 and annually thereafter at 2.5% pa compound. Site B is let to ATI Tank Hire on a lease expiring the 2 nd March 2016 at a current rent of 31,000 pa. In addition there is a 5 year reversionary lease commencing the 3 rd March 2016 subject to mutual breaks at an initial rent of 42,500 pa. The total rent passing is therefore 340,068 pa exclusive. The total rent receivable increases to 359,294 pa by the 3 rd March 2016 and annually thereafter. Our clients will top up the rent to the March 2016 level. Tenure Freehold Proposal We are instructed to seek offers in excess of 4,530,000 (Four Million Five Hundred & Thirty Thousand Pounds) subject to contract for the freehold interest reflecting a net initial yield of 7.5%, a reversionary yield of 8.94% by November 2023 and an equivalent yield of 8.51% having allowed for purchasers costs of 5.8%. VAT As the property is elected for VAT purposes it is intended to treat the transaction as a transfer of a going concern (TOGC).

1. Location Great Yarmouth with a primary catchment population of some 130,000 people is located on the Norfolk coast approximately 135 miles north east of London and 20 miles east of Norwich (Source: PROMIS). The A47 provides access to Norwich and the A11/M11 to the west and the A12 via Ipswich and Colchester links with the M25 at Junction 28 to the south. In addition to the traditional tourist industry, Great Yarmouth has become a major supply base for the southern basin of the North Sea gas industry which has been established in the town for over 35 years. The port also forms an important part of the local economy handling some two million tons of cargo annually. (Source: Great Yarmouth Borough Council & Port Authority). More recently the development of renewable energy sources especially off shore wind power has created further opportunities for support services in the town. 2. Situation The property is situated on Yarmouth Business Park fronting a roundabout at the junction of the A47 Western By-Pass and Gapton Road which provides access to the town s main industrial estates and Pasteur Road which leads to the town centre approximately ¾ of a mile to the east. Gapton Hall Retail Park (130,000 sq ft) is directly opposite the property where tenants include Boots, Next, M&S Simply Food, Halfords, Matalan, TK Maxx, Sports Direct, Poundland, Brantano, Carpetright and Currys. Other occupiers in the area include Norfolk County Council, Lidl, Topps Tiles, Plumb Center, Norfolk Police and Great Yarmouth College. A recently constructed 100,000 sq ft Tesco Extra Superstore is situated directly opposite the property and and on the western side of Pasteur Road is Pasteur Retail Park (122,000 sq ft) which comprises an 85,000 sq ft B&Q together with Argos, Home Bargains and Pets at Home. 3. Description Site A comprises a two-storey office building and a separate two bay warehouse, both constructed in 1986 to the tenant s specification. Access to the site is off Thamesfield Way. The office specification includes double glazing throughout, air handling system and partial air conditioning, oil fired central heating, three compartment under floor trunking, suspended ceilings with recessed lighting, fitted kitchen and male and female toilets on each floor, partitioning and carpets and fitted reception area. The office building has been designed to allow for the construction of a second wing. The warehouse is of steel frame construction with double skin steel clad roof and walls and an eaves height of approximately 23 ft (7 metres). The warehouse specification includes a sprinkler system, hot air oil fired heating system, two electronically operated roller shutter doors, integral offices and fitted kitchen and shower room. The single storey link block has been installed by the tenant to house computer systems to manage offshore rigs. The majority of the yard area has been adapted for use as pipe storage and car parking. There are an additional 50 marked car spaces to the front of the office building. A security fence encloses the entire site and there is a brick built gatehouse with two electronically operated barriers.

Site B comprises a self-contained tank storage yard also accessed off Thamesfield Way via a separate dedicated entrance. 4. Accommodation The property provides the following approximate floor areas. Site A Area Metric Sq M Imperial Sq Ft Reception 45 480 Ground Floor (Offices) 381 4,100 (Net Internal) First Floor (Offices) 381 4,100 (Net Internal) Sub Total 807 8,680 Link Building 210 2,260 Warehouse 1,440 15,500 (Gross Internal) TOTAL 2,457 26,440 Site area approximately 5.0 acres (2.02 hectares). Site B Site area approximately 1.85 acres (0.75 hectares). Total site area therefore is 6.85 acres (2.77 hectares). 5. Tenure Freehold 6. Tenancies Site A is let in its entirety to Perenco UK Ltd for a term of 15 years from 3 rd November 2008 (8 years unexpired) at a current rent of 309,068 pa exclusive, subject to upward only increases on 3 rd November 2015 and annually thereafter to 2.5% pa compound as follows:-

From Rent ( ) Per Annum 3 rd November 2015 316,794 3 rd November 2016 324,714 3 rd November 2017 332,832 3 rd November 2018 341,153 3 rd November 2019 349,682 3 rd November 2020 358,424 3 rd November 2021 367,384 3 rd November 2022 376,569 The rent is paid in three instalments from the 1 st January, 1 st May and 1 st September in each year of the term. The lease is drawn on a full repairing and insuring basis although the tenant is not liable for any repairs resulting from a latent or inherent defect or any defect arising as a consequence of pile settlement. The tenant has an option to extend the lease for a term of 5 years from the 3 rd November 2023 at an initial rental of 385,983 pa subject to annual upwards only index increases at 2.5% pa compound as follows:- From Rent ( ) Per Annum 3 rd November 2023 385,983 3 rd November 2024 395,633 3 rd November 2025 405,523 3 rd November 2026 415,661 3 rd November 2027 426,053 Site B is let to ATI Tank Hire Ltd on a lease expiring the 2 nd March 2016 at a current rent of 31,000 pa exclusive. The tenant has entered into a 5 year reversionary lease commencing the 3 rd March 2016 at an initial rent of 42,500 pa subject to mutual rolling breaks on no less than 12 months notice. The rent is paid in quarterly instalments in advance on the usual quarter days. The total rent passing is therefore 340,068 pa exclusive rising to 359,294 pa by the 3 rd March 2016 and annually thereafter.

7. Tenants Profile Company Period Ended Turnover Pre-Tax Profit Shareholders Funds Perenco UK Ltd 31/12/2012 585.50m 164.43m 139.24m (Company No. 04653066) 31/12/2013 1,951.23m 387.72m 224.47m 31/12/2014 702.56m 19.40m 241.03m ATI Tank Hire Ltd 31/07/2012 1,512,233 540,716 1,013,446 (Company No. 01766265) 31/07/2013 1,751,486 386,903 1,104,206 31/07/2014 1,445,611 743,626 1,046,613 Perenco UK Ltd is an independent oil and gas company with operations in 13 countries across the globe ranging from northern Europe to Africa and from South America to South East Asia. Perenco is involved in both onshore and offshore operations. Perenco currently produces approximately 450,000 barrels of oil equivalent per day worldwide. The company was established in 1975. ATI Tank Hire Ltd is involved in the hire, service and maintenance of storage and transportation tanks and ancillary equipment. The Company was established in 1983 in Great Yarmouth to service the offshore oil and gas industry. 8. Development Potential We understand from Great Yarmouth County Council Planning Department that the current uses of the site concur with the existing planning permissions and that the area is zoned for general employment. The site has potential for an intensification of the existing uses or development for alternative uses including retail, trade park, hotel and motor trade. Prospective purchasers should make their own enquiries with Great Yarmouth County Council Planning Department on 01493 856 100. 9. Proposal We are instructed to seek offers in excess of 4,530,000 (Five Million, Five Hundred and Thirty Thousand Pounds) subject to contract for our client s freehold interest. A purchase at this level reflects a net initial yield of 7.5%, a reversionary yield by November 2023 of 8.94% and an equivalent yield of 8.51% having allowed for acquisition costs of 5.8%.

10. Further Information To request further information or to arrange an inspection of the property please contact:- Jonathan M Gilbert BSc MRICS ACIArb Hartnell Taylor Cook LLP 7-10 Chandos Street London W1G 9DQ T: 020 7788 3817 F: 020 7491 3032 E: jonathan.gilbert@htc.uk.com Hartnell Taylor Cook LLP for themselves and for the vendor or lessor of this property, whose agent they are, give notice that: These particulars are set out as a general outline only for the guidance of intending purchasers or lessees and do not constitute part or whole of an offer or contract; All descriptions, dimensions, photographs, 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 intending purchasers or lessees should not rely on them as statements or representations of fact and must satisfy themselves as to their correctness; No person in the employment of Hartnell Taylor Cook LLP has any authority to make or give any representation or warranty whatsoever in relation to this property or these particulars nor enter into any contract on behalf of the vendor or lessor; Unless otherwise stated, all prices, rents and other charges are quoted exclusive of VAT. Any intending purchasers or lessees must satisfy themselves independently as to the incidence of VAT in respect of any transaction; All plant, machinery, equipment, services and fixtures and fittings referred to in these particulars were present at the date of publication. They have not been tested and we give no warranty as to their condition or operation; No responsibility can be accepted for any expenses incurred by intending purchasers or lessees in inspecting properties that have been sold or withdrawn.

Drain FB Drain THAMESFIELD WAY Drain Site A El Sub Sta Yarmouth Business Park Drain Site B Drain Yarmouth Business Park Thamesfield Way Great Yarmouth Police Investigation Centre 0m 10m 20m 30m Pump House Ordnance Survey Crown Copyright 2015. All rights reserved. Licence number 100022432. Getmapping plc 2015. Plotted Scale - 1:1250

Ordnance Survey Crown Copyright 2015. All rights reserved. Licence number 100022432. Plotted Scale - 1:7500 Yarmouth Business Park Thamesfield Way Great Yarmouth

MAIN CONTACT: 7-10 Chandos Street Cavendish Square London W1G 9DQ Jonathan Gilbert T: 020 7491 7323 F: 020 7491 3032 E: jonathan.gilbert@htc.uk.com Hartnell Taylor Cook LLP is a Limited Liability Partnership registered in England and Wales OC 313211 Offices in London, Bristol, Plymouth / Hartnell Taylor Cook LLP is Regulated by RICS LONDON 7-10 Chandos Street Cavendish Square London W1G 9DQ T: 020 7491 7323 F: 020 7491 3032 BRISTOL Somerset House 18 Canynge Road Clifton Bristol BS8 3JX T: 0117 923 9234 F: 0117 923 9237 PLYMOUTH No. 1 The Crescent Plymouth PL1 3AB T: 01752 671167 F: 01752 671856