High Yielding Office InvestmentFutures Homescape Ltd, Asher Lane Business Park, Asher Lane,Ripley DE5 3SW

INVESTMENT SUMMARY

n Located on an established business park in Ripley adjacent to the A38 dual carriageway

n Two storey HQ office building totalling 2,386.98 sq.m (25,693 sq.ft)

n Majority let to the strong covenant of Futures Homescape Ltd for a further 4.75 years (tenant has been in occupation since 2004)

n Rent £228,400 per annum

n Offers sought in excess of £1,600,000

n Net initial yield 13.50%, assuming costs of purchase of 5.80%

n Capital value of £62.27 per sq.ft

LOCATION

Ripley is a town located in the Amber Valley Borough of Derbyshire 11 miles to the north east of Derby, 13 miles to the north west of Nottingham and 13 miles to the south west of Mansfield.

The town has excellent road communications with the A38 dual carriageway and the A610 providing direct access to J27 and J26 of the M1 7 miles to the north east and 9 miles to the south east respectively.

SITUATIONThe property is prominently located on Asher Lane Business Park fronting onto Asher Lane and over-looking the A38 dual carriageway. Ripley town centre is half a mile to the south.

Commercial occupiers in the vicinity include AB Gee Ltd who owner occupy a distribution warehouse to the rear of the subject property.

Adjacent to the property to the north is a two storey manufacturing warehouse on a site of six acres which is shortly to be demolished for residential development. The site immediately to the south has been sold conditionally to Persimmon Homes for residential development. Both site are identified within the Strategic Housing land Assessment for residential development in Amber Valley’s Core Strategy.

DESCRIPTION

The property comprises a two storey office building constructed in the early 1990s. The building is arranged in two wings either side of a double height reception area. The internal specification includes the following:

n Suspended ceilingn Recessed lightingn Ceiling mounted air conditioning cassettesn Floor boxesn Male, female and disabled toilets and a kitchenette on each floor

There is a vacant wing on the second floor which is unrefurbished. The remainder of the property is occupied by Futures Homescape Ltd who are to shortly untake a complete refurbishment of the reception and common areas at their cost.

There is a 99 space car park to the front of the property (ratio of 1:260 sq.ft). The access road off Asher Lane (shaded red), which is within the property’s demise, contains a right for the occupier to the rear of the property to use the road subject to a contribution towards the repairing liability.

SITE AREA

The site area is 0.60 hectares (1.48 acres).

ACCOMMODATION

The property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) and extends to the following net internal areas.

COVENANT

Futures Homescape Ltd (formerly Amber Valley Housing Ltd) is a registered social landlord providing more than 5,700 homes in the East Midlands to rent or shared ownership. The company operates primarily within the Amber Valley and the subject property is he company’s Head Office. The company is a subsidiary of the Futures Housing Group which also includes Daventry & District Housing. The company has charitable status.

TENURE

The property is held freehold.

TENANCY SCHEDULE

AREA SQ.M AREA SQ.FT

Shared Reception 80.02 861

Ground floor 1,149.79 12,376

First Floor 1,157.16 12,456

Total 2,386.97 25,693

TENANT AREA SQ.FT LEASE START

LEASEEXPIRY

RENT(£ per sq.ft)

COMMENTS

FuturesHomescape Ltd

Ground

PartFirst

12,376

6,723

01/12/2004 30/11/2019 £228,400(£11.95)

The lease is held on full repairing and insuring terms, subject to a schedule of condition. The reception is outside of the tenant’s demise.

Vacant PartFirst

5,733 Void rates liability of £7,953 per annum.

Futures Homescape have occupied the property as its HQ since 2004 and employ over 200 people on site undertaking the administrative functions of both Futures Homescape and Futures Housing Group. The company is shortly to undertake a refurbishment of the reception and common areas.

A summary of the company’s accounts is set out below.

CONTACTSFor further information or if you wish to arrange a viewing, please contact :-

BEN BLACKWALL 0121 513 0893ben.blackwall@fspproperty.co.uk

ANDREW PRICE 0121 513 0892andrew.price@fspproperty.co.uk

Misrepresentation Clause : The accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein are not guaranteed and are for general guidance only and prospective purchasers or tenants must not rely on them as statements of fact or representations and must satisfy themselves of their accuracy. Neither Franck-Steier Price Ltd, nor any of their employees or representatives has any authority to make or give any representation or warranty or enter into any contract whatever in relation to the property. Prices and rents quoted in these particulars may be subject to VAT in addition. The reference to any mechanical or electrical equipment or other facilities at the property shall not constitute a representation (unless otherwise stated) as to its state or condition or that it is capable of fulfilling its intended function. Prospective tenants/purchasers should satisfy themselves as to the condition of such equipment for their requirements.

Franck Steier Price Ltd

Third Floor, Victoria House

114-116 Colmore Row, Birmingham, B3 3BD

EPCThe property has an EPC rating of C51.

VATThe property is elected for VAT and therefore VAT will be payable on the purchase price. It is anticipated that the sale will be dealt with as a TOGC.

PROPOSALWe are instructed to seek offers in excess of £1,600,000 (One Million Six Hundred Thousand Pounds) subject to contract and exclusive of VAT.

A purchase at this level would reflect a net initial yield of 13.50%, assuming usual costs of purchase of 5.80%. The capital value is £62.27 per sq.ft.

Future Homescape Ltd(Company No. 4380728)

31/03/2014£,000s

31/03/2013£,000s

31/03/2012£,000s

Turnover 26,879 25,255 23,040

Pre-tax Profit 4,557 4,575 3,116

Net Assets 77,719 72,736 68,299