SOUTH WEST WATER LTD - Cloudinary

SOUTH WEST WATER LTD DOWRGLANN, STENNACK ROAD ST AUSTELL, CORNWALL, PL25 3SW SECURE 15 YEAR OFFICE INVESTMENT WITH CPI INDEXATION

INVESTMENT SUMMARY Situated within an established mixed commercial location in St Undoubted covenant of South West Water Ltd (D&B rating 5A1) Austell Rent of 150,000 per annum reflecting a low base rent of 8.14 Detached building totalling 18,434 sq ft (1,712.6 sq m) NIA per sq ft overall 94 car parking spaces (1:196 sq ft) 5 yearly CPI rent reviews (2-4% cap and collar) Freehold Seeking offers in excess of 2,236,000 (Two Million Two Hundred and Thirty Six Thousand Pounds) reflecting a net initial yield of 6.25% assuming purchasers’ costs of 7.33% Let on a 15 year unbroken lease from completion FRI terms subject to a schedule of condition DOWRGLANN, STENNACK ROAD, ST AUSTELL, CORNWALL, PL25 3SW Low capital value of only 121 per sq ft

Barry Weston-super-Mare 22 Ilfracombe 23 A39 LOCATION A396 Barnstaple St Austell is the principal town in Cornwall and provides a wide range of amenities, services and industry along with a large permanent population of circa 34,700. 24 A358 Taunton Tiverton A361 Honiton SITUATION St Ives Dowrglann is located on Holmbush Industrial Estate and close to Lidl and Tesco. There is no defined area for office accommodation in St Austell. However, the town centre itself has limited good quality stock and occupiers are increasingly looking for modern edge of town accommodation with good access and car parking. Redruth A30 A38 St Austell Plymouth Pershore Ross-on-Wye Buckingham Newport Cheltenham Northleach 22 23 A39 A396 Barnstaple Taunton Bath Tiverton A361 Bude Okehampton Bodmin Truro St Austell Exeter A38 A30 Saltash A303 31 Somerton Sherborne Crewkerne Chard A35 Basingstoke M3 Romsey Southampton Fordingbridge M27 Ringwood Bridport Bournemouth Sidmouth Alton Salisbury Shaftesbury Weymouth NewtonAbbot Tavistock A38 Yeovil 27 Honiton A30 A372 He Tadley Trowbridge A37 A378 Du Reading Frome Wells M5 25 Aylesbury Thame Chippenham Glastonbury 24 A358 M4 Bristol Weston-super-Mare Ilfracombe Oxford Didcot Swindon M32 Avonmouth Barry Kidlington Witney M5 M49 Cardiff Milton Keynes Bicester Burford M4 Redruth Towcester Silverstone Tewkesbury M48 St Ives Stratfordupon-Avon Ledbury Gloucester A30 Bridport A38 Penzance Newquay A35 Sidmouth 31 Torquay Saltash Falmouth Padstow Crewkerne Chard NewtonAbbot Tavistock Bodmin Truro So A38 A30 Padstow Newquay Exeter A372 A378 25 Yeovil A303 Okehampton A30 M5 27 Bude Transport links in St Austell are excellent being located just off the A390 which provides access to Truro to the West and Plymouth to the East, via the A38. The A30 is also within close proximity just 7 miles to the north, via the A391. St Austell has a main line railway station in the town centre and Newquay International Airport, with daily flights to London and other UK and EU destinations, is located 20 minutes to the west. Wells Glastonbury Torquay A38 Plymouth Falmouth Penzance DOWRGLANN, STENNACK ROAD, ST AUSTELL, CORNWALL, PL25 3SW Portsmouth B

DOWRGLANN, STENNACK ROAD, ST AUSTELL, CORNWALL, PL25 3SW

DESCRIPTION ACCOMMODATION The property comprises a circa 1990 purpose-built detached office building. It provides two floors of office accommodation, arranged in two wings at right angles to one another with a central entrance/reception area with atrium and ancillary toilet accommodation on both floors. There is car parking at front and rear with 94 marked spaces, providing an excellent parking ratio of 1:196 sq ft. We have measured the property and calculated the following approximate Net Internal floor areas. The building is of steel frame construction with facing brick walls with powder coated aluminium windows and doors. The roof is finished with fibre cement slates. The space is of good quality including suspended ceilings with air conditioning, strip fluorescent lighting, raised carpeted floors, wall mounted radiators, gas fired central heating (two boilers), double glazed windows and an 8-person passenger lift. South West Water plc, Dowrglann Stennack Road, St. Austell, PL25 3SW Area Sq ft Sq m Ground Floor including reception 9,485 881.2 First Floor 8,949 831.4 18,434 1,712.6 Total DOWRGLANN, STENNACK ROAD, ST AUSTELL, CORNWALL, PL25 3SW

TENURE TENANCY Freehold. The property will be let on a new 15 year unbroken lease to South West Water Limited from completion of the sale. EPC The building has an EPC rating of C64. A copy of the certificate is available in the data room. DOWRGLANN, STENNACK ROAD, ST AUSTELL, CORNWALL, PL25 3SW The commencing rent will be 150,000 per annum reflecting a low rent of 8.14 per sq ft. There will be five yearly CPI linked rent reviews with a cap and collar of 2% and 4%. The lease will be fully repairing and insuring and subject to a photographic schedule of condition. South West Water Ltd are in occupation of approximately half the building and sublet the balance to Kier Integrated Services Ltd, St Johns Ambulance and Unite the Union. A copy of the sub-tenancy schedule is available in the data room.

COVENANT To year end 31/12/2021 000’s To year end 31/12/2020 000’s To year end 31/12/2019 000’s Turnover 543,800 571,600 582,400 Pre-Tax Profit (loss) 141,800 171,100 178,600 Shareholder’s Funds 527,100 493,600 640,100 South West Water Ltd South West Water Limited has a D&B rating of 5A1 and is the main water and wastewater service provider for a population of circa 1.7 million in Cornwall, Devon, and parts of Somerset and Dorset. South West Water Limited is owned by Pennon Group Plc, an environmental utility infrastructure company based in the South West. Pennon is at the top end of the FTSE 250 and also has a D&B rating of 5A1. Dowrglann is a long established and key site office for South West Water providing the only suitable venue in Cornwall to meet with third parties and stakeholders. The building provides access to South West Water’s corporate data systems and has network access of sufficient bandwidth for data transactions. More information on the company can be found here: www.southwestwater.co.uk We have summarised the company’s last 3 years accounts. INVESTMENT MARKET The following table illustrates the most recent comparable investment evidence: Date Area (sq ft) Term Certain (years) Tenant Purchase Price NIY Capital Value ( psf) 135 Aztec West, Bristol Q3 2021 12,540 15 year/11 year break Fertility Bristol Ltd 3,960,000 6.39% 315 RAC Control Centre, Bristol Q3 2021 63,598 21 years with annual RPI RAC 26,780,000 5.25% 421 40 Wilson way, Pool Industrial Estate, Cornwall Q2 2021 20,000 12 years with annual RPI Royal Cornwall Hospitals NHS Trust 6,700,000 6.75% 335 28-29 Central Park Avenue, Plymouth Q3 2019 53,652 5 years University of Plymouth 4,000,000 7.86% 75 Malvern House, Matford Business Park, Exeter Q1 2019 6,638 4 years Gro Group Ltd 1,050,000 7.20% 158 Property DOWRGLANN, STENNACK ROAD, ST AUSTELL, CORNWALL, PL25 3SW

DOWRGLANN, STENNACK ROAD, ST AUSTELL, CORNWALL, PL25 3SW

DATA ROOM VAT Access to the data room is available upon request. The property is elected for VAT. AML PROPOSAL A successful bidder will be required to provide relevant information to satisfy the AML requirements when Heads of Terms are agreed. Seeking offers in excess of 2,236,000 (Two Million Two Hundred and Thirty Six Thousand Pounds) reflecting a net initial yield of 6.25% assuming purchasers’ costs of 7.33%. This reflects a low capital value of only 121 per sq ft. FURTHER INFORMATION For further information or to arrange an inspection, please contact the joint agents – JLL and Alder King Simon Bennett M: 07808 290 869 E: Simon.j.bennett@eu.jll.com Shannon Johns M: 07849 636 665 E: Shannon.Johns@eu.jll.com MISREPRESENTATION ACT COPYRIGHT DISCLAIMER COPYRIGHT JONES LANG LASALLE IP, INC. 2021. All rights reserved. No part of this document may be reproduced or transmitted in any form or by any means without prior written consent of Jones Lang LaSalle. It is based on material that we believe to be reliable. Whilst every effort has been made to ensure its accuracy, we cannot offer any warranty that it contains no factual errors. We would like to be told of any such errors in order to correct them. Oliver Stretton M: 07990 891 024 E: ostretton@alderking.com Lucy Costain M: 07990 891 019 E: lcostain@alderking.com Ian Simpson M: 07990 891 028 E: isimpson@alderking.com MISREPRESENTATION ACT COPYRIGHT DISCLAIMER Subject to Contract Alder King LLP is a Limited Liability Partnership registered in England and Wales. No OC306796. Registered Office: Pembroke House, 15 Pembroke Road, Clifton, Bristol BS8 3BA. A list of all Members is available at the Registered Office. 1. Money Laundering Regulations 2017: As part of our obligations under the UK Money Laundering Regulations, Alder King LLP requires any purchaser or tenant to provide information and documentation to satisfy our legal obligations. 2. Misrepresentation Act 1967: This marketing brochure is for guidance only and does not form part of any offer or contract and must not be relied upon as statements or representations of fact. 3. Control of Asbestos Regulations 2012 (CAR 2012): It is the responsibility of the owner or tenant of the property, and anyone else who has control over it and/or responsibility for maintaining it, to comply with the regulations. The detection of asbestos and asbestos-related compounds is beyond the scope of Alder King and accordingly we recommend you obtain advice from a specialist source.

Undoubted covenant of South West Water Ltd (D&B rating 5A1) Rent of 150,000 per annum reflecting a low base rent of 8.14 per sq ft overall 5 yearly CPI rent reviews (2-4% cap and collar) Seeking offers in excess of 2,236,000 (Two Million Two Hundred and Thirty Six Thousand Pounds) reflecting a net initial yield