SINGLE LET CITY CENTRE OFFICE INVESTMENTCHEQUERS HOUSE, 77-81 NEWMARKET ROAD, CAMBRIDGE, CB5 8EU

2

Investment SummaryNewly refurbished office building in

Cambridge city centre

The property provides 817.62 sq m

(8,801 sq ft) on a total site of 0.24

acres (0.098 hectares)

New FRI lease for an unbroken

15 year term

Income of £229,000 per annum

equating to £26.00 psf

Compelling growth prospects for

Cambridge city centre offices

Offers are sought in excess of

£3,908,000 (three million, nine

hundred and eight thousand

pounds), subject to contract and

exclusive of VAT. A purchase

at this level would reflect a net

initial yield of 5.50% allowing

for standard purchaser’s costs

of 6.53%.

Leicester

Milton Keynes

Stansted

Ipswich

Norwich

King’s Lynn

Luton

PeterboroughPeterboroughPeterborough

Newmarket

Felixstowe

Harlow

A14

A14

A14A12

A11Northampton

Bury St. Edmunds

HuntingdonHuntingdonHuntingdon

A12Harwich

LONDONM4

Heathrow Airport

M25

A1

A1

A1M

CambridgeCambridgeCambridge

M11

M6

M25

M1

J19M6

Location Cambridge is a city renowned worldwide for its history, ancient architecture

and huge cultural appeal. It is one of the UK’s principle tourist locations,

for both domestic and overseas visitors and is also an important location

for the UK’s research and development sector. This is reinforced by

AstraZeneca’s decision to build its new £330m headquarters in Cambridge,

due to be completed in 2017 which will bring 2,000 staff to the city.

Situation Chequers House is situated on the northern side of Newmarket Road,

close to its junction with the A603/A1134 inner ring road. The city centre

is approximately half a mile to the west of the property and the revitalised

Grafton Shopping Centre is directly opposite. The property sits just to

the south of the River Cam and is a short walk to the open spaces of

Midsummer Common.

Cambridge mainline train station is a 20-minute walk and the property is

easily accessible by car via the A1134 and A603 which link to the M11 to

the west and A14 to the east.

ECONOMY

In the Centre for Cities, Cities Outlook 2015 report, Cambridge is ranked in the UK:

• 1st for Innovation with 65.6 patents granted in 2013 per 100,000 residents -

this was more than 3.5 times the next most innovative city.

• 1st in terms of the highest proportion of highly skilled workers with just over 65%

of its population with high level skills.

• 2nd for the largest increase in affordability ratios at 5.6% between 2004 and 2014.

• 3rd for employment growth of 15.7% between 2004 and 2013.

TRANSPORT

• Road: 62 miles north of central London. At the junction of the M11 and the A14

... which links the Port of Felixstowe to the east with the M1 and M6 to the west.

• The Government has committed up to £1.5bn to improve the A14 between ..

Cambridge and Huntingdon. (Source: www.highways.gov.uk)

• Rail: Fastest journey time of approximately 45 minutes to London King’s Cross station.

• Air: Stansted Airport is located approximately 28 miles south at Junction 8 of the M11

(with rail connection).

• Bike: New ‘state of the art’ 3,000 space cycle park for station.

TRAVEL TIMES VIA RAIL

• King’s Cross Station:

45 minutes

• Liverpool Street Station:

1 hour 10 minutes

• Stansted Airport:

31 minutes

• Heathrow Airport:

1 hour 55 minutes

DISTANCE VIA ROAD

• Cambridge city centre:

0.5 miles

• (Junction 11): M11

3 miles

• Stansted Airport:

28 miles

• M25/M11 (J27): 39 miles

• Central London: 62 miles

M11

M11

A14

A1307

A1303

A1134

A1309

A1134

A1134

B1047

A1303

A603

A603

A14

A14

A14

MADINGLEY ROAD

B1049

HILLS ROAD CambridgeCambridgeCambridge

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DescriptionChequers House comprises a modern three storey office building constructed during

the late 1980s with 30 on-site car parking spaces, including 1 disabled bay (1:293 sq ft).

There are two bike racks on site, each with capacity for 11 bikes (22 in total).

The premises are brick built with a pitched tiled roof providing accommodation on

ground, first and second floors.

The internal specification is currently undergoing a full refurbishment to include new

raised access floors and coverings, modern LED office lighting in suspended ceilings,

a full electrical rewire inclusive of floor boxes and distribution and VRF air-conditioning

system and renewal of WC facilities.

The tenant is also undertaking its own improvements to include new shower provision,

new staff canteen and breakout spaces, cellular offices, meeting room and quiet space.

The building has one eight-person passenger lift and male and female WC facilities on

each floor. The building also benefits from a full height atrium which creates an

impressive entrance area. It is anticipated the refurbishment will be completed in early

December 2016.

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Tenure Freehold.

Tenancy The property is occupied in its entirety by Ashtons Legal (also known

as Ashton KCJ). The new lease is vested in four individual partners:

Edward O’Rourke, Alan Brown, Michael Frape and Magnus McManus.

The property is to be let on a new 15 year FRI lease from completion of

the Landlord and Tenant works. Completion is currently due in early

December 2016. The agreed rent is £229,000 per annum exclusive and

subject to 5 yearly upwards only market rent reviews. The rent equates to

£26.00 psf overall.

An 18 month rent free period has been granted from the commencement

of the lease (to be topped up from the date of completion by the Vendor).

Ashtons operate throughout East Anglia, with offices in Bury St Edmunds,

Cambridge, Felixstowe, Ipswich, Norwich and Thetford. The firm provides

a full range of legal services for individuals and businesses. Ashtons is

ranked 122nd out of the top 200 UK law firms, has 37 partners and a

reported revenue of £16.54m. The company has occupied Chequers

House for 26 years, since the building was constructed.

5

Accommodation The property has been measured in

line with the RICS Code of Measuring

Practice (6th Edition) and will provide

the following proposed Net Internal

Area (NIA) following refurbishment:

N.B. The above are assignable measured areas.

sq m sq ft

Entrance Lobby 18.63 201

Ground 107.215 1,154

First 347.96 3,745

Second 343.81 3,701

TOTAL 817.615 8,801

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PROPOSED FIRST FLOOR PLAN PROPOSED SECOND FLOOR PLAN

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N.B. Plans include tenant fit out.

Market Commentary The Cambridgeshire office and lab market comprises around

8 million sq ft of accommodation. Prime office rents in the city centre

have now achieved £36.50 per sq ft. With limited supply of Grade A

accommodation, quality second hand space is achieving rents of £32.50

per sq ft and lesser quality second hand space has reached rents of

£24.00 per sq ft.

Annual growth over the past 10 years has averaged 4.5% for prime

rents and 5.8% for good secondary rents.

Office take-up for 2015 was recorded at 1.2 million sq ft compared to an

annual average of circa 600,000 sq ft since 2005. Supply of good quality

accommodation continues to fall with very limited availability. Occupier

demand remains robust with over 1.4 million sq ft of active requirements

for the market.

2015 was a particularly

strong year with 'take up'

increasing by a

considerable margin.

Across the commercial

sector in Cambridge,

demand has been rising

taking rents in an upwards

direction as availability has

significantly decreased.

Grade A availability sits at

1% of the total availability

of 700,000 sq ft.

This demand pressure is only anticipated to increase when older

existing office stock is redeveloped for residential or student uses.

It is predicted there will be further “bounce” demand when ARM and

AstraZeneca get closer to practical completion of their new HQs.

These companies attract support industries and service industry

expansion.

Year Annual Office & Lab Take up ...... (sq ft)

2008 335,700

2009 313,700

2010 361,000

2011 468,100

2012 363,800

2013 600,200

2014 713,000

2015 1.2 million

8 9

City Centre Market Cambridge is a relatively small

historic university city that has

expanded substantially in the last

40 years. The nature of the original

city has prevented a definable

central office core. However, the

CB1 development at Station Road

together with Hills Road provides

the largest agglomeration of office

accommodation, with further

headquarters style buildings

located along the main highways

such as Newmarket Road and

Trumpington Road.

Assuming the growth forecast

with the development of CB1

and AstraZeneca’s offices, there

are considerable prospects for

rental growth at Chequers House

as the tone of city centre offices

increases. Bidwells office rental

statistics show the following

year on year growth, with good

secondary rents rising at a

faster rate than prime rents in

recent years:

. Annualised Prime Good

.. ... Growth rents secondary

... (£p.a.) rents

.. 3 Year 2.4% 5.1%

. 5 year 3.7% 11.5%

.. 10 year 4.5% 5.8%

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Date Building Town Tenant Term Certain Price NIY Purchaser ...... ... .... (Years)

Under Offer 8 Bedford Park Croydon Superdrug Plc 10 c.26m c.5.08% Undisclosed

Sep 16 3 Ely Road, Milton Cambridge Nokia 9 £6.125m 6.21% Confidential

Aug 16 Wey House Guildford Stevens & Bolton 10.8 £22.65m 5.10% Guildford Borough Council

Jun 16 Kier Construction HQ Loughton Kier Ltd 15 £6.5m 5.44% Salaft Properties

May 16 Abbvie House Maidenhead Abbvie Ltd 9.8 £24.6m 5.43% Rasmala Plc

March 16 Horizon Building Gloucester Horizon 15 £16.4m 5.44% Private Investor

Nov 2015 Kett House Cambridge Eversheds 4 £20.35m 4.69% Kames Capital

Investment Market There is continued high demand for single-let offices with long term, secure income situated in strong locations.

Properties that benefit from defensive fundamentals are in short supply and therefore pricing remains competitive.

Cambridge in particular, with such strong rental growth in this sector, is a sought after location for investment.

EPC Rating The property has been

given a current EPC

Rating of C67. This is likely

to improve on completion

of the works.

VAT The property is elected for VAT and

as such VAT will be payable on the

purchase price. It is anticipated that

the sale will be treated as a Transfer

of a Going Concern (TOGC).

Proposal Offers are sought in excess of £3,908,000 (three

million, nine hundred and eight thousand pounds),

subject to contract and exclusive of VAT. A purchase

at this level would reflect a net initial yield of 5.50%

allowing for standard purchaser’s costs of 6.53%.

Please contact Bidwells for access to the data room or should you wish to make an inspection:

Andrew Groves

DDI: 020 7297 6274

andrew.groves@bidwells.co.uk

Katherine Ilett

DDI: 020 3761 3633

katherine.ilett@bidwells.co.uk

Bidwells

25 Old Burlington Street

London W1S 3AN

Tel: 020 7493 3043

October 2016

Further Information

10

Bidwells

25 Old Burlington Street

London W1S 3AN

Tel: 020 7493 3043

bidwells.co.uk

IMPORTANT NOTICE RELATING TO THE MISREPRESENTATION ACT 1967

Bidwells LLP act for themselves and for the vendors of this property, whose

agents they are, give notice that: These particulars do not form part of any offer or contract and should not

be relied upon as statements or representatives of fact. Bidwells LLP have

no authority to make or give in writing or verbally any representation or

warranties in relation to the property. Any areas of measurements or

distances are approximate. The text, photographs and plans are for

guidance only and are not necessarily comprehensive. No assumptions

should be made that the property has all necessary planning, building

regulation or other consents. Bidwells LLP have not carried out a survey,

nor tested the services, appliances or facilities. Purchasers must satisfy

themselves by inspection or otherwise. In the interest of Health & Safety,

please ensure that you take due care when inspecting the property. Bidwells LLP is a limited liability partnership registered in England & Wales

(registered number OC344553). Registered head office is Bidwell House,

Trumpington Road, Cambridge CB2 9LD, where a list of members is

available for inspection.