Investment

G4S, 12 HERON VIEW, AIRPORT ROAD WEST, SYDENHAM BUSINESS PARK, BELFAST, BT3 9LN

WELL SECURED INVESTMENT

G4S, 12 HERON VIEW, SYDENHAM BUSINESS PARKBelfast, BT3 9LN

Investment Summary

• Well located offi ce building situated on Heron View within Sydenham Business Park.

• The offi ce accommodation is set over two fl oors and extends to 11,995 Sq Ft (net internal area) and benefi ts from 47 surface car parking spaces.

• The building has been fi tted to a high grade A offi ce specifi cation and was constructed in 2008.

• Let in its entirety to G4S Secure Solutions (UK) Limited (company registration number: 01046019) on Full Repairing & Insuring terms.

• Unexpired Lease Term of 9 years.

• Let at a gross rent of £164,425 per annum excluding VAT and a net rent of £116,835.88 per annum after ground rent.

• The investment is held long leasehold for 125 years commencing the 1st May 2008 from Belfast Harbour Commissioners at a rent of £47,589.12 excluding VAT.

• Set on a rectangular site measuring approximately 1.20 acres (0.49 hectares).

• The property is elected for VAT and it is envisaged the transaction will be treated as a TOGC.

• An excellent EPC Rating of C52.

• Offers in the region of £1,200,000 refl ecting an attractive NIY of 9.20% after purchaser’s costs of 5.80%.

• Producing an attractive capital value of £100 per Sq Ft on the net internal area.

GROUND FLOOR - INTERIOR

FIRST FLOOR - INTERIOR

G4S, 12 HERON VIEW, SYDENHAM BUSINESS PARKBelfast, BT3 9LN

Location

Belfast is the capital of Northern Ireland and is ranked the 14th largest city in the United Kingdom and the 10th largest conurbation. The city is located approximately 103 miles north of Dublin and 70 miles south east of Londonderry.

Belfast has an excellent communications network. The M2 motorway provides access to the north towards Antrim and Londonderry and the M1 motorway provides access to the south and west of the province towards Lisburn and Dublin.

The city benefits from four railway stations and the Belfast to Dublin train route has a journey time of approximately 1 hour 50 minutes. The two airports, George Best Belfast City and Belfast International, provide access to all major UK and international locations including America and mainland Europe.

Sydenham Business Park is located 3 miles east of Belfast city centre and is within close proximity to George Best Belfast City Airport, Port of Belfast and Holywood Exchange.

G4S, 12 HERON VIEW, SYDENHAM BUSINESS PARKBelfast, BT3 9LN

Local Economy

Belfast has a resident population of c. 281,000 which represents 15.5% of Northern Ireland’s total population of 1.81 million. The wider Belfast metropolitan area has a population extending to c. 650,000.

Over 60% of Belfast’s total population is of working age. Belfast is a young city, with 18.6% of the population under 16 years old (2011 census). As of January 2014 the unemployment rate stands at 7.4%.

As the largest commercial centre in Northern Ireland, Belfast has developed into one of Ireland’s premier business cities and has the largest employed population in the region. In the last few years Belfast has been extremely successful in attracting Foreign Direct Investment driven primarily by a highly skilled and educated employment base, competitive operating costs and advanced telecoms infrastructure.

Businesses that have chosen to locate in Northern Ireland include Microsoft, HCL Technologies, Seagate Technology, DuPont, Bombardier Aerospace, Caterpillar, Allstate Northern Ireland, Liberty IT, Abbey, Citi, Chicago Mercantile Exchange, Herbert Smith and Allen & Overy to name but a few.

For further information on the local economy please visit www.investni.com

Situation

The subject property is situated within Sydenham Business Park and is accessed via Airport Road West and Heron View. The property is easily accessible to the A2 Holywood/ Sydenham Bypass giving excellent access to the regional motorway network.

Nearby occupiers include Fannin, Tyco, CEM Systems, American Dynamics, Phoenix, Emo Oil and SHS Group to name but a few.

Site

The property sits on a flat rectangular site measuring approximately 1.20 acres (0.49 hectares).

For indicative purposes only. This plan is published for convenience of identification only and although believed to be correct, its accuracy is not guaranteed and does not form any part of a contract. Not to scale.

G4S, 12 HERON VIEW, SYDENHAM BUSINESS PARKBelfast, BT3 9LN

Description

The property was constructed in 2008 and comprises a substantial two storey building arranged to provide offi ce accommodation at ground and fi rst fl oor levels.

The building has been constructed using modern construction techniques incorporating a solid ground fl oor slab with piled foundations, a steel superstructure frame and pre-cast concrete fi rst fl oors with cavity masonry enclosing walls with a self-rendered fi nish. There are powder coated aluminum windows below a fl at inverted roof and separate roof top plant area.

Internally the unit has been fi tted out to a high corporate specifi cation with high quality internal fi nishes. There is a comprehensive air conditioning and ventilation system which has been bespokely constructed to the tenant’s confi guration.

The internal specifi cation includes:

• Raised access computer fl ooring.

• Suspended ceilings incorporating indirect recessed lighting.

• A full heating and cooling air conditioning and ventilation system.

• 8 person passenger lift.

• Disabled ladies and gents toilets and welfare areas.

• Very high security CCTV and control system.

Surface car parking for 47 is provided on site and is entered via a security traffi c light system with automatic rising bollards and intercom link to the main building.

RECEPTION

Acommodation

The lease states that the property provides 11,955 sq ft net internal area as defi ned in the RICS Code of Measuring Practice (5th Edition) and we believe the area is split as follows:

Ground 6,486 602.5

First 5,469 508

Total 11,955 1,110.5

The property benefi ts from 47 surface car parking spaces.

Floor NIA (Sq Ft) NIA (Sq M)

G4S, 12 HERON VIEW, SYDENHAM BUSINESS PARKBelfast, BT3 9LN

Tenancy

The property is let in its entirety to G4S Secure Solutions (UK) Limited (company registration number: 01046019) on a full repairing and insuring lease for a term of 15 years from the 9th May 2008 expiring on the 8th May 2023.

The investment therefore provides an unexpired lease term of 9 years.

The lease provides a gross rent of £164,425 per annum and is reviewed on an upward only basis every 5 years, the next rent review is due on the 8th May 2018. A ground rent of £47,589.12 per annum is paid to the Harbour Commission; therefore the investment provides a net rent of £116,835.88 per annum.

Covenant Information

G4S Group

It is the world’s largest security company measured by revenues and has operations in around 125 countries. With over 620,000 employees, it is the world’s third-largest private sector employer. G4S was founded in 2004 by the merger of the UK-based Securicor plc with the Denmark-based Group 4 Falck. G4S has a primary listing on the London Stock Exchange and is a constituent of the FTSE 100 Index. It has a secondary listing on the Copenhagen Stock Exchange.

G4S Secure Solutions

G4S Secure Solutions business provides a broad range of solutions to both commercial and government customers. They use their risk management, security and sector expertise to encourage greater outsourcing of the security needs of commercial and government facilities in markets such as ports, airports, retail, fi nancial institutions and the oil and gas sector, and for government departments such as justice, police, health, foreign affairs and border control.

G4S Secure Solutions (UK) Limited (company registration number: 01046019) has an Experian Credit rating of 15/100. Full Experian Credit Report is available on request. The last three years of reported accounts may be summarised as follows:

Total Turnover £193,630,000 £239,476,000 £437,078,000

Net Worth £7,881,000 (£19,231,000) (£84,197,000)

Pre-tax Profi ts £7,271,000 £1,875,000 (£85,549,000)

For further information on G4S visit: www.g4s.com

G4S Secure Solutions 31 Dec 2010 31 Dec 2011 31 Dec 2012(UK) Ltd (No. 01046019)

FIRST FLOOR – INTERIOR

G4S, 12 HERON VIEW, SYDENHAM BUSINESS PARKBelfast, BT3 9LN

Title

The property is held on a 125 year ground lease commencing the 1st May 2008 from The Belfast Harbour Commissioners at a rent of £47,589.12 excluding VAT. The ground lease is reviewed every fi ve years in line with the Retail Price Index (RPI) with the next review due on the 4th July 2017.

An estate service charge of £260.00 per annum excluding VAT is paid to The Belfast Harbour Commissioners. The estate service charge is recovered from the tenant.

EPC

The property has been given an Energy Performance Certifi cate Rating of C52.

Full EPC Report is available on request.

CAR PARK

G4S, 12 HERON VIEW, SYDENHAM BUSINESS PARKBelfast, BT3 9LN

Belfast Occupational Market

Office take-up of 401,484 sq ft was achieved in the Belfast market in 2013, which was up 46% compared to the previous year. We expect improving economic conditions to bolster demand for new office accommodation in the Northern Ireland market in 2014 with demand expected to emanate from the expansion of existing occupiers as well as from new entrants.

Although there are a number of new office developments planned, which will ultimately ease the shortage of Grade A office accommodation in the city, it will be some time before these schemes come on stream. We therefore expect to see rental growth emerging in the office sector in Northern Ireland over the course of the next 12 months.

We expect prime office rents in Belfast to increase by 20% to reach £15.00 per sq ft by year-end. This anticipated rental growth will in turn boost demand for office investment properties in core locations.

(Source: CBRE Research)

Investment Market

There was a notable improvement in transactional activity in the investment sector in Northern Ireland in the second half of 2013 in particular, with several high-profile retail properties changing hands and a discernible improvement in investor sentiment.

In total, approximately £160 million was invested in income-producing investments in the Northern Ireland market during 2013 in 17 individual transactions compared to more than £92 million invested in 8 individual transactions in the previous year.

We are aware of the following office investment transactions:

Address Tenants Sq Ft Date Sold Purchaser Capital Value NIY AWULT

James House, Gasworks, Belfast

74-76 Dublin Road, Belfast

Law Society, 100 Victoria Street, Belfast

Killeaton House, 41 Mosside Road, Dunmurry

The Warehouse, 7 James Street Belfast

Government

EU Commission

Various

Danske Bank

Various

111,488

13,590

46,913

23,500

12,450

Dec 2013

Dec 2013

Dec 2013

Aug 2013

Jan 2013

Threadneedle

Private Local Investor

Private Local Investor

Private Local Investor

Private Local Investor

£10,050,000

£1,300,000

£4,250,000

£2,330,000

£815,000

12.98%

7.97%

10.96%

7.60%

10.13%

To expiry: 5.9 yrs To break: N/A

To expiry: 10.25 yrs To break: N/A

To expiry: 8.32 yrs To break: 4.67 yrs

To expiry: 11.67 yrs To break: 6.67 yrs

To expiry: 1.72 yrs To break: 1.64 yrs

(Source: CBRE Research)

G4S, 12 HERON VIEW, SYDENHAM BUSINESS PARKBelfast, BT3 9LN

VAT

We understand the property has been elected for VAT and it is anticipated that the sale will be structured as a Transfer of a Going Concern (TOGC).

DISCLAIMER: CBRE

These particulars are issued by CBRE on the understanding that any negotiations relating to the property are conducted through them. Whilst every care is taken in preparing them, CBRE for themselves and for the vendor/lessor whose agents they are, give notice that:- (i) the particulars are set out as a general outline for guiding potential purchasers/tenants and do not constitute any part of an offer or contract, (ii) any representation including descriptions, dimensions, references to condition, permissions or licenses for uses or occupation, access or any other details are given in good faith and are believed to be correct, but any intending purchaser or tenant should not rely on them as statements or representations of fact but must satisfy themselves (at their own expense) as to their correctness, (iii) neither CBRE, nor any of their employees have any authority to make any or give any representation or warranty in relation to the property. Note: All plans and photographs are for identification purposes only. Subject to contract. MAY 2014.

Contacts

Tim Reid

E: tim.reid@cbre.com

T: 028 90436752

M: 07803 264410

Gavin Elliott

E: gavin.elliott@cbre.com

T: 028 90436750

M: 0779 6262382

CBRE

Imperial House

Donegall Square East

Belfast BT1 5HD

T: 028 90438555

F: 028 90439444

www.cbre.com

Proposal

We are instructed to seek offers in the region of £1,200,000 (exclusive of VAT) for our client’s interest.

A purchase at this level would reflect an attractive net initial yield of 9.20%, after allowing for normal purchaser’s costs at 5.8% and a low capital value of £100 per Sq Ft based on the net internal area.