Brochure - Capita Symonds

Gallions&FurzeneyWexham SpringSBuckinghamshirePrestigious THAMES VALLEY Office Investment

Investment Summary• High quality, multi-let Thames Valley office investment.• Excellent road and rail connectivity.• Two buildings totalling 36,727 sq ft with 1:193 sq ftcar parking ratio.• Let to Sun Chemical Ltd and Otsuka Pharmaceutical Europe Ltd.• Total rent of £805,855.50 per annum.• Freehold.• Weighted unexpired term of 7.8 years to expiry and 5.6 years toearliest termination.• Average rent of £21.94 per sq ft, following new letting.• Strong letting history.• Part of a low density office campus development,set within a 39 acre site.• Shared Freehold ownership of extensive grounds.• Seeking offers in excess of £9,250,000.• A purchase at this level reflects a Net Initial Yield of 8.23%assuming usual purchaser's costs of 5.80%.

A41HatfieldA10LOCATIONWexham is a highly affluent area situated between the M4 and M40, close tothe M25.The interchange for the M25/M40 is approximately one mile away and accessto Junctions 5 & 6 of the M4 is five miles to the south.Wexham Springs is five miles west of Uxbridge, nine miles north west ofHeathrow Airport and three miles north of Slough town centre. The park islocated on Framewood Road which links the A4 and the A40.Wexham Springs Office Park is situated in the heart of the Thames Valley,surrounded by protected woodland and golf courses and close to thepicturesque village of Fulmer. Despite the idyllic rural nature of the location,connectivity and local amenities are excellent. The journey time to the closesttwo major railway stations is comparable to one from the western end ofSlough Trading Estate, Bath Road to Slough Station.By RailAccess to the National Rail Network is from Gerrards Cross or Slough, bothoffering regular services to Central London and other key centres.From To Fastest Journey TimeLondon Paddington17 minsSlough Reading 13 minsOxford41 minsLondon Marylebone22 minsGerrards Cross High Wycombe 10 minsBirmingham1hr 57 minsSource: National Rail EnquiriesIn 2018 Crossrail will provide direct access to the West End and City from bothSlough and Langley Station. This will provide journey times to Bond Street of 30minutes and 27 minutes respectively.To BristolA4ReadingHigh Wycombe8M40M4BeaconsfieldMaidenheadA4A322FarnboroughAmersham7Windsor6GerrardsCrossM3WokingGuildfordM25WatfordWexham WEXHAM UxbridgeSlough54M4HeathrowA4StainesUpon ThamesA3EghamM1A40EalingA24A1A4M25A41RichmondSuttonM25LONDONA12By Road DorkingWexham Springs is situated in between the M40 M23and M4, just to thewest of the M25, in the heart ofReigatethe Thames Valley.Destination Driving Distance Approx Journey TimeIlfordA20BrentwoodDagenhamDartfordM25SevenoaATaplowMaidenhead BurnhamSloughLangleyIverWestDraytonHayes &HarlingtonPiccadillySouthallHeathrow AirportHanwellDistrictCentralEalingBroadwayWestEaling30 minutesActonMain LineJubileeCentralBondStreetPaddingtonCircleBakerlooDistrictHammersmith& City*TottenhamCourt RoadNorthernCentralLutonGatwickThameslinkMetropolitanHammersmith& CityCircleFarringdon*Hammersmith& CityDistrictOvergroundWhitechapelLiverpoolStreetCircleMetropolitanNorthernCentralHammersmith& CityStanstedEurostarDLRJubileeCentralStratfordMaryland1 stop DLRForestGateCanary Wharf CustomJubilee HouseCanary Wharf 200m DLRDLRWest India 100mManorParkWoolwichIlfordGoodmayes RomfordSevenKingsAbbeyWoodChadwellHeathGideaParkHaroldWoodBrentwoodShenfieldA4 3.6 miles 9 minsM40 (Junction 1) 4.5 miles 11 minsM40 (Junction 2) 5.4 miles 11 minsM25 (Junction 16) 6.9 miles 12 minsM4 (Junctions 5&6) 5.6 miles 14 minsHeathrow (Terminal 1) 11.7 miles 23 minsHeathrow (Terminal 5) 10.6 miles 22 minsLondon (Charing Cross) 23.2 miles 44 minsSlough Rail Station 3.4 miles 9 minsGerrards Cross Rail Station 3.4 miles 8 minsSource: Google Maps.Gallions & Furzeney, Wexham Springs

STOKECOLLINSWOOD ROADWexham SpringsOFFICE PARKFARNHAMFARNHAMROYALBEACONSFIELD ROADEDINBURGH AVEBUCKINGHAM AVEBATH ROADCIPPENHAM LANEREADINGM4J6FARNHAM ROADPARISH LANELN PARKA332J2A355A355FARNHAMPARKETON WICK ROADLANETEMPLEWOODNORTHERN RDSHEFFIELD ROAD SHAGGYETONRIV E RM40FARNHAM PARKGOLF COURSESTOKE POGES LANECHALVEY RD MERE RDSLOUGH ROADBATH ROADPOCOROADSTOKE PARKGOLF COURSECHALVEY DITCHSTOKE PARKCOUNTRY CLUBA4CKS LANETHE HOMEPARKWexham SpringsOFFICE PARKWexham SpringsSTOKEPOGESROADOFFICE COMMON PARKGERRARDS CROSS ROADCALF LANEDATCHET ROADKING EDWARD VII AVENUEWINDSORWINDSOR & ETON CENTRALTHA MESTHE PHEASANTSLOUGHTESCOEXTRASLOUGHBULSTRODEPARKSTOKE COMMON ROADSTOKEHOLLY BUSH H ILLSEFTONPARKTHESTAGTHEPLOUGH INNNUFFIELDHEALTHCLUBSTOKEGREENA412B416WEXHAM ROADWEXHAM ROADROADWEXHAM STREETUXBRIDGE ROADLONDON ROADWINDSORFRAMEWOOD ROADWEXHA M PARK LANECHURCH LANEUPPER COURT ROADUPTONPARKBIRMINGHAM& OXFORDM4ROADGERRARDSCROSSM40WEXHAMPARK GOLFCOURSEGERRARDSCROSSWEXHAM SPRINGSOFFICE PARKVILLAGEWexham SpringsUXBRIDGE ROADMIDDLE GREENLANGLEY ROADROADFULMER COMMONOXFORD ROADFULMERTHE BLACKHORSE FULMERTEIKYOJAPENESESCHOOLA4DITTONPARKWAITROSEM&SA40A412SLOUGHLONDON ROADOFFICE PARKROADAMERSHAM ROADWATFORDBLACK PARKNATURERESERVEHIGH ST LA NGLEYJ1AJ5THE QUEEN MOTHERRESERVOIRM25J16PINEWOODSTUDIOSWEXHAM SPRINGSWexham SpringsOFFICE PARKPINEWOOD ROADLANGLEY PARK ROADLANGLEYA413DENHAMGOLF CLUBWOOD LANEIVORGOLFCLUBMARKET LANE MANSION LANEOLD RECTORY LANETHECO-OPERATIVEFOODOXFORD ROADSOUTHLANDS ROADHIGH STWEXHAM SPRINGSOFFICE PARKWexham SpringsOFFICE PARKBANGERS RD SOUTHTHORNEY LANEDENHAM RDPARLAUNT RD NORTH PARK RICHINGS WAYSUTTON LANEFROM JUNCTION 1LONDONJ1AM40J16M4SLOUGHCOLNBROOK BY-PASSDENHAMGOLFCOURSERICHINGSPARKROADIVERRICHINGSPARKGOLFCOURSEA412Wexham SpringsOFFICE PARKWexham SpringsOFFICE PARKCOLNEVALLEYPARKIVERJ4BA40B470HEATHROW AIRPORTA4DENHAMUXBRIDGEM25M25J1WEXHAM SPRINGSOFFICE PARKWexham SpringsOFFICE PARKJ15J15Local AreaGiven the protected nature of the local area, businessdevelopment has been limited. There are a numberof commercial developments which have a highoccupancy rate and single let HQ buildings. Pioneerhave their HQ close by and the fully let Sefton Park ishome to Hitachi, Siemens and Urenco.As well as the extensive shopping and largesupermarkets of Slough town centre, the shoppingcentre of Gerrards Cross is within an 8 minute drive.Along with boutique shops and restaurants the townboasts a 25,000 sq ft Waitrose, developed in 2012 aswell as a Tesco and M&S food store. The closest localfacilities include a Co-Op food store and health centrewhich are within 3 minutes drive in Stoke Poges.The Nuffield Health Stoke Poges Fitness & WellbeingCentre is less than a mile away. The purpose builtcentre has extensive gym facilities as well as exerciserooms, a swimming pool and crèche.The property is surrounded by golf courses, the mostnotable of which is Stoke Park which also has a 5 starhotel with award winning Spa and Three AA Rosetterestaurant. There are numerous country pubs in thelocal area along with several private schools and theworld renowned Pinewood Studios.gva.co.uk/590201895 619890www.swcpc.co.ukGallions & Furzeney, Wexham SpringsCOMMERCIAL PROPERTY CONSULTANTS

Wexham SpringsWexham Springs is an office campus arranged in a stunning landscaped environment. Itcomprises four elegant pavilion buildings of similar age and specification. The buildings,which were completed in 1996, are set within a 39 acre park and are centred around alandscaped pond.On-site amenities include a cricket and football pitch, tennis court and a croquet lawn aswell as numerous paths through the many ancient and well preserved specimen trees,providing a highly attractive working environment.The site benefits from on-site security with CCTV and a manned gatehouse at the entrance.Other occupiers on the park are Timberland and Servier who both use the site as theirEuropean HQ as well as Danwood, who all enjoy the unique nature of the environment.The original manor house to which the grounds formed part, is now utilised as an exclusiveprivate Japanese school.OCCUPATIONAL HISTORYWexham Springs is an attractive and very popular office environment, equidistant fromthe major office locations of Slough and Uxbridge. The occupancy of the park however isnot particularly influenced by these large centres and the park has been very successful insecuring multi-national companies ever since development.Any available space at Wexham Springs has historically let very well with limited void periodsand consistently strong occupational demand attracted by the quality of the buildings andthe environment.The refurbishment of Gallions was completed in March 2012 with the property undercontract in April 2013, demonstrating the lettability of the property, even in a more subduedletting market. The letting to Otsuka of the whole of Gallions was agreed on the basis of a 10year term with a sixth year break at a headline rental of £22.50 per sq ft.Tenant retention on the park has always been strong, with Servier occupying space since2002 and consolidating into the Rowley building in late 2011 at a headline rental of £22.50per sq ft.Timberland took their original lease for a term of 10 years from 2003 and subsequentlyextended their term by way of a reversionary lease until June 2019 at an overall rental levelof £24.50 per sq ft.Gallions & Furzeney, Wexham Springs

Gallions New letting to Otsuka Pharmaceutical Europe LtdGallions, Wexham Springs, Bucks, SL3 6PJ

GALLIONSThe Gallions building was comprehensively refurbished in 2012following the consolidation by Servier into the larger and adjacentRowley building.The specification within the building includes:• Double height reception area with glass canopy andfeature lighting• Fully refurbished 8 person passenger lift• Fully accessible raised floors• Metal tiled suspended ceilings• PIR controlled LG7 lighting• Fully updated VAV air conditioning including new chiller• ShowerExternally, the building benefits from large terrace areas at first floor level.There is cycle parking in addition to 114 car parking spaces giving anexcellent parking ratio of 1:193 sq ft.ACCOMMODATIONFloor Use Area (sq ft)Ground Reception 567Ground Office 11,080First Office 10,318Total 21,965TenancyThe property is let on a full repairing and insuring lease to OtsukaPharmaceutical Europe Ltd for a term of 10 years from 4th June 2013,expiring 3rd June 2023.There is a tenant only break option on 4th June 2019. There is anine month notice period on the break which is subject to a penaltypayment equivalent to six months rent. Should the tenant not breakthe lease they will be entitled to a nine month rent free period.The rent is £494,212.50 which equates to £22.50 per sq ft on anoverall basis. The tenant received an initial rent free period of 21months which will be topped-up by the vendor. There is an upwardonly open market rent review after five years.The lease is contracted outside the security of tenure provisions ofthe Landlord and Tenant Act 1954.CovenantOtsuka Pharmaceutical Europe Ltd is part of the Otsuka PharmaceuticalGroup, a conglomerate of 156 businesses established in 1921. Otsuka'sEuropean operation was established in 1979 and they currently havesales and marketing operations in France, Germany, Italy, the Nordicregion, Spain and the UK, employing over 400 people.Otsuka Pharmaceutical Europe Ltd is a Japanese based, globalcomprehensive healthcare company dedicated to two core businesses:pharmaceuticals and nutraceuticals. In the fiscal year 2011, the globalcompany achieved net sales of $6 billion (consolidated net sales ofover $11 billion) and operating income exceeding $1 billion.Otsuka Pharmaceutical Europe Ltd have a D&B rating of 4A2representing a lower than average risk of business failure.The last three years published accounts are summarised below:Date of Accounts 31/12/2011(£000's)31/12/2010(£000's)31/12/2009(£000's)Sales Turnover 360,502 291,909 220,195Profit / (Loss) Before Taxes 5,959 3,754 6,331Tangible Net Worth 30,980 26,517 25,035Net Current Assets(Liabilities)34,270 30,729 23,720Gallions, Wexham Springs, Bucks, SL3 6PJ

Furzeney European Headquarters of Sun Chemical LTDFurzeney, Wexham Springs, Bucks, SL3 6PJ

FurzeneyThe Furzeney building is the smaller of the two buildings and was letto Sun Chemical Ltd in 2005. The building was refurbished in 2006 andprovides the following specification:• Double height reception area• 8 person passenger lift• Fully accessible raised floors• Metal tiled suspended ceilings• LG3/Cat II lighting• VAV air conditioning• ShowerExternally, the building benefits from large terrace areas at first floor level.There are 76 car parking spaces giving an excellent parking ratio of1:194 sq ft.ACCOMMODATIONFloor Use Area (sq ft)Ground Reception 439Ground Office 7,559First Office 6,764Total 14,762TenancyThe property is let on a full repairing and insuring lease to SunChemical Limited for a term of 12 years from 26th September 2005,expiring 25th September 2017.The current rent is £311,643 p.a. which equates to £21.11 per sq ft onan overall basis. There is an upward only open market rent review on26th September 2015.CovenantSun Chemical Ltd, a member of the DIC group, is the world's largestproducer of printing inks and pigments and a leading provider ofmaterials to packaging, publication, coatings, plastics, cosmetics, andother industrial markets including electronic materials, functionaland specialty coatings, brand protection and product authenticationtechnologies.The company has annual sales over $3.5 billion and over 8,000employees in a network of more than 250 locations in 56 countries.The DIC Group is a Japanese based, multinational company with netsales (2011) of Yen 734.3 billion and total assets of Yen 675.1 billion.In addition a rent deposit of £311,642.50 + VAT is currently held, subjectto a typical profits test release.Sun Chemical Ltd have a D&B Rating of 2A1 representing a minimalrisk of business failure.The last three years published accounts are summarised below:Furzeney, Wexham Springs, Bucks, SL3 6PJDate of Accounts 31/12/2011(£000's)31/12/2010(£000's)31/12/2009(£000's)Sales Turnover 276,985 282,395 271,369Profit / (Loss) BeforeTaxes1,610 5,511 (23,074)Tangible Net Worth 4,235 36 (22,390)Net Current Assets(Liabilities)16,510 19,583 26,896

2112Furzeney and Gallions, Wexham Springs, Wexham, SL3 6PJTENUREFramewood NurseryWard Bdy75.4m12Wexham SpringCottagesPondThe property is held Freehold and the extent of the title is outlined in redon the OS Extract for identification only.Hill HouseOldHillHouseTheOldPotteryTennisCourtPlaying FieldThe site has an area of approximately 2.94 acres.TheClockhouseStable CottageTennisCourtsAll the separate owners on the park have a share in Wexham SpringsManagement Company Ltd which owns and manages the common areasof the estate. The total acreage of the business park is approximately 39acres and shown outlined in blue.Fairfield Lodge62.0mHOLLYBUSH HILL66.9mCR73.3mEl Sub StaFurzeneyGallionsRowleyPathT a r ckUpThe vendor’s share in the Management Company totals 36%, reflecting a14.5% share for Furzeney and 21.5% for Gallions.Holly BushFarmWexham SpringsFramewood OrchardIssuesWymersESTATE CHARGE69.9mPathPondPondThe estate charge covers the security and landscaping of the park, both ofwhich are maintained to a high standard.PathThe current years budget is £394,977 which equates to £3.99 persq ft for the subject buildings.The estate charge is fully recoverable from the tenants.HINGGREENLANEGPOrchardVillas61.7mTheGablesLakePond61.3mChatsworthPattroyanLevingtonLB0m 50m 100m 150mTheElGardenOrdnance Survey © Crown Copyright 2010. All rights reserved. Licence number 100020449.HouseSubGetmapping plc 2010. Plotted Scale - 1:2442StaOrdnance Survey © Crown Copyright 2013. All rights reserved. Licence number 100022432.Getmapping plc 2013. Plotted Scale - 1:2442HOME FARMRose HeadStagEndThe Bungalow22The Stag(PH)WinterHouseFramewoodThe FarthingsShelterDunottaHillbrowWest ViewByramHighburyTheRamblersCloverdaleThe OldBakeryOxney CottageOakwoodCottageHamstedLyncottPrimroseCottageCastleViewLong AcreTaraDormersCalviTwinTreesBartonCottageBurners CottageDogkennel FieldDrainTrackTENANCY SUMMARYBuilding Tenant D&B Rating Floor Area(sq ft)Car ParkingLeaseCommencementLease Expiry Rent Review Break Rent(£ per annum)Rent(£ per sq ft)Gallions Otsuka Pharmaceutical Europe Ltd 4A2 21,965 114 04/06/2013 03/06/2023 04/06/2018 04/06/2019 £494,212.50 £22.50 Tenant is fitting outFurzeney Sun Chemical Ltd 2A1 14,762 76 26/09/2005 25/09/2017 26/09/2015 - £311,643.00 £21.11 12 month rentdepositTotal 36,727 190 AWULT 7.8 years AWULT 5.6 years* £805,855.50*Assumes 6 months break penalty received as rent.CommentsGallions & Furzeney, Wexham Springs

Gallions & Furzeney, Wexham Springs

MARKET COMMENTARYThe south east occupational market, and the western M25 sector in particular has seen a resurgence of activity during the last 6 months as occupier confidence has returned and tenants seek to move before rental incentives fall further.In the nearby centre of Uxbridge for example prime rents are now estimated at c. £30 per sq ft. Whilst the subject park has enjoyed a resilience from the wider letting market, it is also well placed to benefit from the wider improvement inmarket conditions and offers excellent potential for rental growth.High quality, south east office investments continue to be highly sought after and pricing continues to harden. We summarise some recent comparable transactions below:Address Size (sq ft) Rent(£ per sq ft)Ranger HouseGuildfordConsort HouseWeybridgeBishops WharfGuildfordOne Bell StreetMaidenheadLucidusClarendon RoadWatfordForum HouseStainesMain Tenants Lease Terms Price Net InitialYieldCapital Value(£ per sq ft)41,096 £25.37 Barclays, Ubisoft, Cubiks AWULT 5.4 years £13,700,000 6.40% £333 Apr-13Date Vendor PurchaserMountgrange /Patron16,035 £20.80 Glass's Information Services Ltd 10 years unexpired £3,850,000 7.73% £240 Mar-13 Private Investor15,600 £28.25Smith & Williamson withsub-lettings to Clydesdale Bank,Penningtons and Robert WaltersOperations Ltd.Surrey County CouncilElmbridge BoroughCouncil5.8 years unexpired £4,900,000 8.50% £314 Dec-12 Private Investor CBRE Global Investors20,005 £28.14 Regus, Ektron AWULT 8.5 years £6,725,000 7.86% £336 Nov-12 Rockspring Cordea Savills51,000 £21.67EFunds, Taylor Woodrow(sub-let to TJX UK & Total UK Ltd)AWULT 5.5 years £13,875,000 7.44% £272 Aug-12 DTZ IM17,659 £22.31 First Secretary of State (HMR&C) 9 years unexpired £5,160,000 7.22% £292 Jun-12Irish LifeAssurance PlcBritish Steel PensionFundDrapers LiveryCompanyVATThe property is currently elected for VAT and therefore VAT will be chargeableon the purchase price. It is envisaged that the sale will be dealt with as aTransfer of a Going Concern.CAPITAL ALLOWANCESThe vendor will retain any available Capital Allowances and any purchaserwill be required to enter into a nominal S198 election.ENERGY PERFORMANCE CERTIFICATEGallions E (102)Furzeney E (109)Copies of the Certificates are available on the marketing website and also onrequest.Gallions & Furzeney, Wexham Springs

INVESTMENT RATIONALE• High quality, multi-let Thames Valley office investment.• Unique low density environment.• High quality buildings with excellent parking ratio (1:193 sq ft).• Average rent of £21.94 per sq ft, following new letting.• Strong letting history.• European Headquarters for both occupiers.• Share of ownership of 39 acre wider estate.PROPOSALWe are instructed to seek offers in excess of £9,250,000, subject tocontract and exclusive of VAT.A purchase at this level reflects a Net Initial Yield of 8.23% assumingusual purchaser's costs of 5.80% and a capital value of £252 per sq ft.

Further InformationRobert Cassrobert.cass@capita.co.uk020 7544 2256James Dunnejames.dunne@capita.co.uk020 7544 2093Belinda Harrisbelinda.harris@capita.co.uk020 7544 2108www.csrealestate.co.ukCapita Symonds125 Shaftesbury AvenueLondonWC2H 8ADTel: +44 (0)20 7544 2000Fax: +44 (0)20 7544 2222Further information is available to view at thewebsite: red.capitasymonds.co.uk/wexhamspringsNote: Capita Symonds Ltd (“CSL”), trading as Capita Symonds, part of The Capita Group Plc, for itself and as agent for the vendors or lessors (the “Seller”) of this property, gives notice that (1) These particulars do not constitute any part of an offer or a contract (2) Whilst every attempt has been made to ensure accuracy, this cannot be guaranteed and, therefore (save as set out at (6) below), (a) all statements and descriptionsin these particulars as to this property are made without responsibility or liability on the part of CSL or the Seller, (b) no such statements or descriptions are to be relied on as statements or representations of fact (c) all measurements are approximate and no responsibility is taken for any error, omission or misstatement and (d) any intending purchasers or lessees must satisfy themselves by inspection or otherwise as tothe correctness of each of the statements, particulars and representative photographs contained herein. (3) The Seller does not make or give, and neither CSL nor any of its employees or agents makes or gives nor has any authority to make or give, any representation or warranty whatsoever in relation to this property. (4) Unless otherwise stated, all prices and rents are quoted exclusive of VAT and no statement is madeas to the incidence of VAT. (5) No liability is accepted and no representation is made by either CSL or the Seller in respect of the presence, condition, adequacy or usability of any telecommunications or computer systems or equipment at the property, any software loaded thereon, or any related cabling or infrastructure. (6) Nothing herein shall exclude any liability which either the Seller or CSL would otherwise have forany fraudulent concealment or for any statements made fraudulently by it, its employees or agents. JUNE 2013Adrian Gates Photography & Brochures 07710 316 991.