LANCASTER HOUSE, NORTHUMBERLAND CLOSESTANWELL, HEATHROW AIRPORT, SURREY TW19 7LN

ATTRACTIVE OFFICE INVESTMENT ADJACENT TO LONDON’S HEATHROW AIRPORT

• Heathrow Airport is one of the world’s busiest airports handling over 72.3 million passengers and 1.42 million metric tonnes of cargo in 2013.

• Well-located office building located less than a mile from Heathrow Airport facing the Cargo Terminal and Terminal 4. M25 orbital 2½ miles to the west.

• Situated just off the Southern Perimeter Road adjacent to Virgin Atlantic, Turkish and other major airlines cargo facilities.

• Modern 3,000 sq ft office building arranged over ground and first floor.

• Excellent public transport including London Underground (Piccadilly Line) Heathrow Express (to London’s Paddington).

• Entirely let to Watson Petroleum Ltd for an unexpired term of 6½ years at the current passing rent of £69,500 per annum with a minimum uplift at the 2016 rent review to £80,569 per annum.

• Watson Petroleum Ltd reported accounts for 2013 of £1.24 billion (turnover), £12.8 million (pre tax profits) £25.1 million (net worth).

• Offers sought in excess of £1,175,000 subject to contract.

Investment Summary

Location

Lancaster House is located in Stanwell in Spelthorne Borough Council in West London, approximately 18 miles from Central London to the east.

The property looks out towards the Cargo Terminal and Terminal 4 of Heathrow Airport, one of the world’s busiest, serving 82 airlines to 180 destinations and handling over 72.3 million passengers and 1.42 million metric tonnes of cargo in 2013.

Lancaster House is situated at the junction of Northumberland Close and Bedfont Road. Bedfont Road runs parallel and next to the Airport’s Southern Perimeter Road, which extends to the M25 (Junction 14) 2.5 miles to the west and via the A30 London Road/Great South West Road to the A4 Great West Road and Central London to the east.

All Heathrow Airport Terminals are easily accessible and recently opened Terminal 5 is only 1½ miles to the north-west.

Public transport is excellent. Lancaster House is equidistant between Terminal 4’s Underground Station (Piccadilly Line) and Bus Station to the east and Terminal 5’s Underground Station (Piccadilly Line) and Heathrow Express link to London’s Paddington to the north-west. There are also numerous bus routes serving the local area and the airport itself.

The immediate area is predominantly commercial and occupied by companies associated with the aviation industry. Opposite the property, along Heathrow Airport’s Southern Perimeter Road, is British Airways Cargo and a Hilton Hotel (adjacent to Terminal 4). Adjoining occupiers to Lancaster House include Virgin Atalntic Cargo, Turkish Cargo, JCIS and DNATA, whilst along the Bedfont Road is Esso’s West London Terminal, Swissport Cargo Services and the Heathrow Animal Reception Centre.

Further hotels and airport amenities are located off the A4 Bath Road accessed via Stanwell Moor Road (A3044).

Site

The property forms part of a regular and flat site of approximately 0.39 hectare (0.17 acre) reflecting a low site coverage of approximately 41%.

Description

The property comprises a modern self-contained two-storey office building with brick and window elevations, built in the 1990’s with a self-contained car park to the side

The property is arranged over the ground and first floor providing 281.94 sq m (3,034 sq ft) of office accommodation comprising a ground floor reception, boardroom and predominantly open plan accommodation with some cellular offices on both floors.

The specification includes:

- Air conditioning- Suspended ceilings- Part raised floors and part underfloor trunking- Part perimeter trunking- Recessed strip lighting- Excellent natural light with windows to three elevations- Central heating- Double glazing- Kitchenette facilities on ground and first floors- WCs on ground and first floors- Shower

To the side of the property is a surface car park with 15 marked bays but the ability to park at least 20 cars providing an excellent ratio of 1:152 sq ft.

Accommodation

The schedule of accommodation below has been measured off plans in accordance with the RICS Code of Measuring Practice (6th Edition) and provides the following net internal floor areas.

Floor Use Sq m Sq ft

First Office 144.13 1,551

Ground Office 137.81 1,483

281.94 3,034

Covenant

Watson Petroleum Limited is a leading distributor of gasoline, diesel, heating oil, lubricants and other products and related services to homes, farms and industry across England and Wales. The Company headquarters are in Brinkworth, Wiltshire and operating a workforce of approximately 670 employees.

Watson Petroleum originally started as a Regent Oil distributor in 1957 and the expansion of the company in the 1960s led to depots in Swindon, Oxford, Theale and Bletchley. When Regent Oil was taken over by Texaco, Watson Petroleum became Texaco’s largest authorised distributor in the UK.

In the 1980s the Company expanded further developing important strongholds around the rural areas of England. Watson Petroleum enhanced its business with the development of new systems and technology and by the end of the first decade of the 21st Century had acquired Hall Fuels, Minster Fuels, Hardy Craske, Shelford Energy and Keltic Fuels. The new decade saw further expansion into Wales and both northern and southern England.

In September 2013, Watson Petroleum was acquired by World Fuel Services Corporation, a global leader in the supply of fuel, specialising in distribution, aviation, land and marine as well as related fuel service.

Watson Petroleum Ltd reported the following financial accounts for the years ended April 2011 to 2013:

Tenure

The property is held freehold.

Tenancy

The property is entirely let to Watson Petroleum Limited for a term of 10 years from 25th March 2011, expiring on 24rd March 2021, effectively 6½ years unexpired.

The current passing rent is £69,500 per annum and subject to a rent review on 25th March 2016 calculated to the higher of open market value or 3% per annum compounded. The minimum uplift shall be £80,569 per annum.

The vendor shall top-up the current passing rent to £80,569 from the date of completion to the rent review date of 25th March 2016.

A three month rent deposit totalling £20,850 inclusive of VAT is held for the duration of the term.

Y/E 30 Apr 2013 GBP

Y/E 30 Apr 2012 GBP

Y/E 30 Apr 2011 GBP

Turnover £1,246,989,000 £1,041,364,000 £834,140,000

Pre-Tax Profit

£12,804,000 £441,000 £8,129,000

Net Worth £25,124,000 £16,211,000 £16,862,000

Pricing

Offers sought in excess of £1,175,000 (One Million One Hundred and Seventy Five Thousand Pounds) subject to contract for the unconditional purchase of the freehold interest.

A purchase at this level shows a net initial yield of 6.48% applying the topped-up rent of £80,569 and a capital value of only £387 per sq. ft.

Further Information

For further information or to arrange an inspection contact:

Paul Hanison020 7297 6458

paulhanison@ianscott.com

15 Bolton Street, Mayfair,London, W1J 8BGwww.ianscott.com

Misrepresentation Notice – October 2014 – Subject To ContractIan Scott International for themselves and for the vendors or lessors of this property for whom they act give notice that (1.) These particulars are only intended as a general outline for the guidance of the intending lessees or purchasers. (2.) All descriptions, dimensions, references to condition, necessary permissions for use and occupation and other details are given in good faith and are believed to be correct but any intending lessee or purchaser 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. (3.) If for any reason any party wishes to rely on any aspect of the particulars or statements at any particular date without further investigation such interested party should seek written confirmation from Ian Scott International who reserve the right to charge a fee for this service. (4.) The particulars do not constitute any part of an offer or a contract. (5.) Whilst every effort has been made to check the floor areas provided, complete accuracy cannot be guaranteed and intending lessees or purchasers must satisfy themselves with regard to this information. (6.) Any quoting terms have been summarised for the purposes of presentation. Intending lessees or purchasers must satisfy themselves as to the accuracy of this information by reference to the legal documentation, which is available from the vendor’s solicitors. (7.) The vendor does not make or give any representation or warranty whatsoever by these particulars, neither does Ian Scott International nor any employee of theirs have any authority to do so. (8.) The information provided is believed to be correct as at the date below but may be subject to variation thereafter.

Planning

The property is not listed and nor is it situated within a conservation area.

Energy Performance Certificates

VAT

The property is elected for VAT however it is anticipated the transaction will proceed as a TOGC.