Multi-let Business Park InvestmentAsset Management Opportunities with Strong Underlying Income Profile

Surtees Business ParkStockton on Tees TS18 3HR

On the instructions of the Joint Administrators of Surtees Business Park Ltd (formerly, Rokeby Developments Northern Ltd) (in Administration)

Investment Summary• Surtees Business Park comprises a mix

of modern (2006/2007 built) officeaccommodation totalling 77,940 sq ft ofoffice accommodation, and an additional 0.73 hectares (1.80 acres) of development land.

• A current net receivable income of£942,799 per annum, with an estimatedpotential net receivable income of£1,056,914 per annum.

• 88.8% of the current income received isfrom Jacobs E&C Ltd, part of one of theworld’s largest providers of professional andtechnical services. Dun and BradstreetRated 4A1.

• Surtees Business Centre and 2A are let to anumber of tenants on flexible short termlease agreements.

• The average weighted unexpired termis 3.85 years to break.

• The properties are offered on a freeholdbasis.

• Offers are invited in excess of £5,100,000(Five Million, One Hundred ThousandPounds) subject to contract and exclusiveof VAT.

• This reflects an attractive net initial yieldof 17.5% after allowing for purchaser’sacquisition costs of 5.8% and a potentialreversionary yield of 19.4% when fullylet.

• Attractive capital value of £65 psf.

LocationStockton on Tees is located within the Tees Valleyapproximately 36 miles to the south of Newcastleupon Tyne, 58 miles north of Leeds, 110 miles to thenorth-east of Manchester and 250 miles north ofLondon.

The town is a strategically located commercial centrewithin both the immediate urban conurbation and thewider region of North-East England. It has an urbanarea population of circa 85,000 people and a widerdistrict population of circa 190,000 people, with anestimated 350,000 people living within six miles of thetown centre.

This plan is published for convenience of identification. Any boundaries shown are indicative only and should be checked against the Title Deeds. The plan is based upon Ordnance Survey Map with the permission of the Controller of H M Stationery © Crown Copyright.

CommunicationsBy Road

• The town sits at the intersection of the A19 andA66 trunk roads and is within approximately 12 miles of the A1(M) allowing access to bothregional and national road networks. Stockton isideally situated to serve the densely populatedTeesside conurbation.

• The area has an extensive bus network, with theroute No 17 running directly past the propertiesand connecting the southern districts of Clevelandwith both Stockton and Middlesbrough towncentres.

By Rail

• Stockton on Tees benefits from excellent rail links.Thornaby Rail Station lies adjacent to TeesdaleBusiness Park and provides regular local servicesto Darlington and Middlesbrough.The nearest mainline service is from Darlingtonwhich is approximately 15 miles away. The serviceruns from London King’s Cross (2.5 hour journeytime) to Edinburgh (2 hour journey time).

By Air

• Durham Tees Valley Airport is locatedapproximately 6 miles to the west and providesdomestic and international scheduled flights,principally on budget carriers and airfreightservices.

SituationThe area has attracted a number of national andinternational occupiers such as:

• Virgin Media

• Barclaycard

• Archers Law

• BHP Law

• BMW

• Mercedes

• Audi

• Lexus

• Land Rover

The subject properties form part of Surtees BusinessPark which is situated to the south of Stockton towncentre, and immediately south-east of the intersectionof the A66 and Bowesfield Lane. Surtees Business Parksits within the north of the Bowesfield Business Parkarea, one of the superior commercial locations in thearea comprising a number of offices, industrial unitsand prestige car showroom premises.

Surtees Business Park benefits from easy access to arange of retail and leisure amenities including a numberof gym operators in the area including Fitness First andDavid Lloyd Leisure Club. Also in proximity is TeessideShopping Park, one of the UK’s largest out of townretail destinations, as well as a UCI cinema nearby.

DescriptionSurtees Business Park is a complex of four officebuildings and an area of development/expansion land(partly unmade ground and partly a temporary carparking area). We have been instructed to marketthree of these buildings, known as Surtees BusinessCentre, Building 2A/2B and Phoenix House, furtherexpansion land and a purpose built football pitch andpavilion.

The three buildings offer an approximate Net InternalArea of 7,240.90 sq m (77,940 sq ft) of high qualityoffice accommodation which fronts on the A66 andthe River Tees, set within an attractive landscapedenvironment.

There are approximately 426 car parking spaces onsite. The premises has an excellent parking space: floorarea ratio of approximately 1 to 183 sq ft.

Building 2A, 2B & Phoenix House

These buildings were constructed between 2006 and2007 providing high quality modern open plan officeaccommodation. The buildings are of steel frameconstruction, metal and glazed cladding beneathpitched metal panel clad roofs. Buildings 2A and 2B aresemi-detached and Phoenix House is a self-containedheadquarters building.

The buildings are all arranged over three floors andare similarly specified to include:

• Lifts

• Comfort cooling

• Raised access floors

• Modern high specification lighting

• Double glazed tinted windows

To the rear of Phoenix House there is a detachedpavilion building providing access to astroturf which isleased to Jacobs E&C Ltd.

Surtees Business Centre

Surtees Business Centre sits at the entrance toSurtees Business Park at Bowesfield Lane, with greatprominence to Queen Elizabeth Way. The buildingdates from the 1970s. The office accommodation issplit over ground and first floors, with storage in thebasement. It is arranged to provide office spaceranging from 100 sq ft to 977 sq ft.

The building is a traditional brick built two storeybuilding with a painted stone facade and dedicated on-site parking. The property has the following internalspecification:• Broadband• Meeting rooms• 71 telephone lines• 24 hour security and CCTV• Manned Reception• Fully Furnished Offices (subject to requirements)• Communal lounge, kitchen and break out space on

each floor

Development Land

There is an area of further development land locatedadjacent to Phoenix House amounting to 0.73 Hectares (1.8 Acres). Planning consent wasgranted for the construction of 3,530 sq m (38,000 sq ft) of office accommodation arranged inthree buildings. The consent has subsequently lapsed.Interested parties should make their own enquirieswith the local planning department.

Floor AreasThe property has been measured on a Net InternalArea basis in accordance with the RICS Code ofMeasuring Practice (6th Edition) and from this wecalculate the approximate areas to be as follows:

Site AreasThe total area amounts to approximately 3.35 hectares (8.26 acres).

TenureThe properties are available on a freehold basis.The area hatched green is not included as part of the sale.

TenancyPhoenix House

Phoenix House is leased to Jacobs E&C Ltd with aguarantee from Jacobs Engineering Group Inc andJacobs Engineering UK Limited. Phoenix House is oneof Jacobs 3 main UK headquarters buildings, the othersare located in Winnersh and Glasgow. The premises islet on 7 co-terminus FRI leases, with open marketvalue rent reviews 5 yearly on an upwards only basis.The leases are for: Ground Floor, 1st Floor, 2nd Floor(Suite A), 2nd Floor (Suite B), 2nd Floor (Suite C),Pavilion & Football Pitch and 65 Car Parking Spaces.

This leasing structure was put in place for the originalleasee Aker Kvaerner Business Partner Limited.The original leases included break options personal toAker Kvaerner Business Partner Ltd at the expiry ofyears 5, 6, 7, 8 & 9. When Jacobs Engineering GroupInc purchased various companies within the AkerGroup the lease was assigned to Jacobs E&C Ltd. Thebreak options are now void.

Unit 2A/2B

Unit 2A is part let to Highground Design with theremainder of the unit being vacant. Unit 2B is let toJacobs E&C Ltd in its entirety.

Surtees Business Centre

The suites are occupied by standardised tenancyagreements outside of the security provisions of theLandlord and Tenant Act 1954. The flexible terms ofthe lease allow for the Landlord or Tenant toterminate the agreement on between one and threemonths’ notice. The tenants are responsible forkeeping their suites in good repair. The costs ofmaintenance, services and utilities (excluding telephonelines) are included within the gross rent.

The business centre has successfully continued toattract occupiers over other competing properties.The current vacancy offers an excellent opportunityfor an opportunistic investor to add value throughactive asset management strategies.

Development Land

A portion of the development land is currently leasedto Vianet for the purpose of temporary car parking.

Expenditure

Over the last 3 years the monthly expenditure forSurtees Business Centre and 2A has averaged out at£9,510, providing a yearly average of £114,115.Further details can be provided upon request.Assuming the property is fully let the annual incomewould be £243,871. There is a potential net income of£129,756 per annum from the Surtees BusinessCentre and 2A.

Description Use Sq m Sq ftSurtees BusinessCentre

Multi-Let Office & Ancillary 765.7 8,242

Unit 2A Office & Ancillary 869.9 9,364

Unit 2B Office & Ancillary 867.2 9,334

Phoenix House Office & Ancillary 4,738.1 51,000

7,240.9 77,940

Tenancy Schedule

Tenant Name Property Unit Size Description Contracted out ofthe 1954 Act Least Start Expiry Date Next Review Rent psf Rent pa

Jacobs E & C Limited Phoenix House 51,000 Whole Building, CPK & Pavilion No 31/01/2008 30/01/2018 31/01/2013 £15.57 £794,000

Jacobs E & C Limited Unit 2B 9,334 Whole Building No 03/07/2008 02/07/2013 – £15.49 £144,553

VACANT Unit 2A 3,128 Ground Floor N/A – – –

VACANT Unit 2A 3,128 First Floor N/A – – –

Highground Design Unit 2A 581 Part Second Floor Yes 30/09/2012 29/09/2015 – £14.50 £8,425

VACANT Unit 2A 2,228 Part Second Floor N/A – – –

Cognition Media Surtees Business Centre 254 Suite 1 Yes 30/09/2011 15/03/2013 – £21.00 £5,332

Cognition Media Surtees Business Centre 211 Suite 2 N/A – £0.00 £0

Roseworth Groudworkers Limited Surtees Business Centre 361 Suite 3 Yes 30/09/2011 15/03/2013 – £15.97 £5,760

1st Choice Energy Surtees Business Centre 285 Suite 4 N/A – £18.92 £5,400

Dickinson Media Surtees Business Centre 304 Suite 5a Yes 30/09/2011 15/03/2013 – £18.75 £5,700

Call 4 Credit Ltd Surtees Business Centre 241 Suite 5b Yes 30/09/2011 15/03/2013 – £14.94 £3,600

VACANT Surtees Business Centre 182 Suite 6 N/A – – –

VACANT Surtees Business Centre 184 Suite 7 N/A – – –

VACANT Surtees Business Centre 188 Suite 8 N/A – – –

Cognition Media Surtees Business Centre 185 Suite 9 Yes 30/09/2011 15/03/2013 – £21.23 £3,936

Andrea Rowntree Surtees Business Centre 111 Suite 10 Yes 30/09/2011 15/03/2013 – £19.45 £2,160

Cognition Media Surtees Business Centre 551 Suite A1 Yes 30/09/2011 15/03/2013 – £20.99 £11,571

Primetech Global Limited Surtees Business Centre 245 Suite 11 Yes 30/09/2011 15/03/2013 – £21.00 £5,137

Dyslexia Action Surtees Business Centre 149 Suite 12 Yes 30/09/2011 15/03/2013 – £20.86 £3,117

VACANT Surtees Business Centre 148 Suite 13 Yes – – –

Skanska Surtees Business Centre 274 Suite 14 Yes 30/09/2011 30/04/2013 – £15.78 £4,320

Skanska Surtees Business Centre 977 Suite 15 Yes 30/09/2011 15/03/2013 – £21.00 £20,523

Comprex Limited Surtees Business Centre 187 Suite 16 Yes 30/09/2011 15/03/2013 – £29.87 £5,592

Graham Moore Surtees Business Centre 184 Suite 17 Yes – £15.65 £2,880

Robertson Simpson Chadwick Surtees Business Centre 186 Suite 18 Yes – £16.65 £3,091

North East Financial Limited Surtees Business Centre 406 Suite 19 & 20 Yes – £14.02 £5,688

DBA HR Solutions Surtees Business Centre 229 Suite 21 Yes 30/09/2011 15/03/2013 – £18.00 £4,128

Vianet Expansion Land - Car Parking No 14/04/2012 13/04/2015 – – £12,000

Total £1,056,914

Average Annual Expenditure £114,115 Net Income £942,799

* Interested parties should request the most up to date tenancy schedule.

Tenant InformationJacobs E&C Ltd

Jacobs E&C Ltd has a D&B credit risk rating of 4A1.Jacobs E&C Ltd forms part of Jacobs EngineeringGroup Inc which employs over 60,000 employeesworldwide and with annual revenues in excess of $10 billion is a Fortune 500 company. JacobsEngineering Group Inc is one of the world’s largest andmost diverse providers of technical, professional andconstruction service, including all aspects ofarchitecture, engineering and construction, operationsand maintenance, as well as scientific and specialityconsulting. They have a broad client base includingindustrial, commercial and government clients acrossmultiple markets and geographies.

Jacobs E&C Ltd acquired part of the Aker group whichserves the international oil, gas, energy and processindustries. The Process and Construction operationstransferred to Jacobs in 2010 which includedapproximately 4,500 employees globally. Jacobs hassince moved other group companies into the buildingsuch as Mouchel which is a leading infrastructure andbusiness services group which provides a variety ofservices across the highways and transportation, localgovernment and utilities markets. The tenant willshortly be incorporating its Northallerton officeswithin Phoenix House further cementing theircommitment to this location.

Jacobs E&C Limted’s financial results are as follows(Company Registration No. 4967961):

All of the leases are subject to a guarantee fromJacobs Engineering Group Inc whose financial resultsare as follows (registered in Delaware D-U-N-Snumber 074103508).

All the leases are subject to a second guarantee fromJacobs UK Limited (previously Jacobs Engineering UKLtd, Company Registration No. 2594504) whosefinancial results are as follows:

30thSeptember

2011£ (000s)

31stDecember

2010£ (000s)

31stDecember

2009£ (000s)

Turnover 100,494 91,862 71,315

Pre-Tax Profit 8,498 6,288 3,158

Net Worth 32,183 28,092 21,327

30thSeptember

2012$ (000s)

30thSeptember

2011$ (000s)

30thSeptember

2010$ (000s)

Turnover 10,893,778 10,381,664 9,915,517

Pre-Tax Profit 593,336 516,661 391,934

Stockholders’ Equity 3,722,473 3,312,988 2,859,048

30thSeptember

2011£ (000s)

30thSeptember

2010£ (000s)

30thSeptember

2009£ (000s)

Turnover 609,953 561,399 704,377

Pre-Tax Profit 4,523 6,128 21,849

Net Worth (77,922) (83,831) (61,534)

Investment RationaleWe believe this opportunity is an attractive investmentfor the following reasons:

• Attractive High Yielding Investment NIY

• Significant Asset Management Opportunities

• Modern Units

• Strong Underlying Income Profile

Capital AllowancesWe understand that there are no transferable capitalallowances available.

Tenancy NegotiationsThe landlord is currently in negotiations with Jacobsto extend their lease on 2B by 5 years from July 2013,with 6 monthly break options from July 2016.The landlord is also in negotiations with a potentialnew tenant for 2A. More details can be provided onrequest.

Plant & MachineryNone of the systems or equipment have been testedby Cushman & Wakefield and purchasers may wish tomake their own investigations to check that they arein working order.

VATWe understand this property has been elected for VATwhich will therefore be chargeable on the sale priceunless the transaction can be treated as a Transfer of aGoing Concern (TOGC).

ProposalWe are instructed to seek offers in excess of£5,100,000 (Five Million, One HundredThousand Pounds) subject to contract andexclusive of VAT for a freehold interest. A purchase atthis level would reflect a net initial yield of 17.5%after allowing for purchaser’s costs of 5.8%.

INVESTMENT SALESGROUP CONTACTS

Surtees Business ParkStockton on TeesTS18 3HRFor further information or to arrangean inspection please contact:

MIKE BURDENTel: 020 7152 5086Fax: 020 7152 5190Email: mike.burden@eur.cushwake.com

ADAM MCMILLANTel: 020 7152 5332Fax: 020 7152 5190Email: adam.mcmillan@eur.cushwake.com

TOM HESPTel: 020 7152 5132Fax: 020 7152 5190Email: tom.hesp@eur.cushwake.com

Cushman & Wakefield LLP43/45 Portman Square, London W1A 3BGwww.cushmanwakefield.comFebruary 2013

The Energy Performance Certificates for thesebuildings are available to download from the propertywebsiteMISREPRESENTATION ACT 1967 and PROPERTY MISDESCRIPTIONS ACT 1991 Cushman & Wakefield LLP (and their joint agents if appointed) for themselves and for vendors orlessors of this property whose agents they are, give notice that: (1) The particulars are producedin good faith, are set out as a general guide only and do not constitute any part of a contract. (2) No person in the employment of the agent(s) has any authority to make or give anyrepresentation or warranty whatever in relation to this property. (3) This property is offeredsubject to contract and, unless otherwise stated, all rents are quoted exclusive of VAT. (4) Nothing in these particulars should be deemed to be a statement that the property is in goodcondition or that any services or facilities are in working order. (5) Unless otherwise stated, noinvestigations have been made regarding pollution or potential land, air or water contamination.Interested parties are advised to carry out their own investigations if required.

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www.cushmanwakefieldinvestmentsales.co.uk/cw/surteesbusinesspark

Unit 2ASurtees Business Centre Unit 2B Pavilion Phoenix House

Energy Performance Certificates