SigmaHouseCHRISTOPHER MARTIN ROAD BASILDON SS14 3EL

A unique opportunity to acquire an office and research & development accommodation

SigmaHouse Christopher Martin Road, Basildon SS14 3EL 2

INVESTMENTSUMMARY

A unique opportunity to acquire the UK Headquarters of the global aeronautics and defence company; Leonardo MW Ltd.

Offices predominantly refurbished in 2001, the property consists of a mixture of office and research & development accommodation across four distinct blocks, extending to a total of 179,806 sq ft.

The property is let in its entirety to Leonardo MW Ltd until 28/10/2029 therefore providing over 9 years term certain.

Strong covenant with a turnover of £2.1bn, pre-tax profits of £267m and shareholders funds of £1.8bn.

Total passing rent of £2,227,000 per annum.

Freehold.

Site area of c. 2.6 hectares (6.4 acres).

The tenant has been in occupation for over 50 years.

Tenant has spent more than half a million pounds on improving the property recently and circa £1.4m in the last few years.

Further works are in for planning to block K in early 2021 to reclad the facade the same as the recent main entrance works, at a cost of circa £200,000

Offers are sought in excess of £33,000,000 (THIRTY THREE MILLION POUNDS) reflecting a net initial yield of 6.32%, after allowing for usual purchasers costs of 6.8%.

An SPV transaction could be available by way of separate transaction.

SigmaHouse Christopher Martin Road, Basildon SS14 3EL 3

A12

7 So

uth

end

Arteria

l Ro

ad

A127

A132

A132A132

SigmaHouse Christopher Martin Road, Basildon SS14 3EL 4

LOCATION

Basildon is located in Essex, 30 miles east of central London on the road to Southend-on-Sea, which is approximately 11 miles to the east. Chelmsford is located 22.5 km (14 miles) to the north, with junction 29 of the M25 only 8 miles to the west.

Basildon was one of the first New Towns, designated in 1949, with this status ending in 1986. Initially it was developed as an

industrial location, however, over time has grown to become a mature and established office market.

Basildon has a population of approximately 100,000 of which approximately 40% are skilled, semi-skilled or unskilled manual labourers. This compares favourably with a nationwide average of around 32%.

Basildon

Basildon Sports& Leisure Club

CCHHRRIISSTTOOPPHHEERR MMAARRTTIINN RRDD

HO

NYW

OO

D RD

HO

NYW

OO

D RD

PAYCOCKE RDPAYCOCKE RD

Basildon is located in Essex, 30 miles east of central London.

BASILDON

SigmaHouse Christopher Martin Road, Basildon SS14 3EL 5

SITUATION

Sigma House is situated to the north east of Basildon town centre, adjacent to the A127 Southend arterial road. This provides excellent access to the wider national motorway network, to include M25 (6.5 miles), the M11 (20 miles) and the M1 (36miles).

Basildon town centre and mainline railway station are (2.5 miles) to the south and boast frequent services to Fenchurch Street Station in Central London in 35 minutes.

Christopher Martin Road is home to a number of commercial and industrial occupiers. Other corporate occupiers located in Basildon include Konsberg. First Data, Barclays Bank, Thor (UK) Limited, Michelin, GAP, MK Electric, Argos and National Westminster Bank.

Costa Coffee and Amazon also have two large new industrial units on Christopher Martin Road.

Basildon

Basildon Sports& Leisure Club

CCHHRRIISSTTOOPPHHEERR MMAARRTTIINN RRDD

HO

NYW

OO

D RD

HO

NYW

OO

D RD

PAYCOCKE RDPAYCOCKE RD

Excellent access to the wider national

motorway network, to include M25,

M11 and M1.

SIGMAHOUSE

SigmaHouse Christopher Martin Road, Basildon SS14 3EL 6

DESCRIPTION

Block K

Block K, recently recladded and a new canopy erected, consists of two smaller office buildings constructed of steel portal frame with brickwork to rear and side elevations and glazing to the front. The two buildings are linked on either side of the reception lobby of Block L. Built over 1 and 2 storeys they benefit from:

• Air conditioning • Perimeter trunking • Suspended ceilings • Solid floors

Block L Block L, refurbished in 2001, comprises the main office accommodation of 105,808 sq ft arranged over three storeys. The building provides regular and flexible floor plates, which could be easily divided for multiple occupations in the future. The building is finished to a high specification which includes:

• 4 pipe fan coil comfort cooling system • Raised floors • Suspended ceilings • Double glazing with high performance solar reflective glass on south, east & west elevations • Landscaped and triple height central atrium • Regular open-plan floor plates

Block M Block M comprises highly specified industrial accommodation, which is linked to the rear of the main office at ground floor level. The unit is currently mainly utilised as a research and development facility, with a number of laboratories, specialist “clean rooms” providing carefully regulated dust free environments, and a storage facility. It is of steel portal frame construction, with profiled metal sheet cladding to the elevations and profiled asbestos sheet roof. Specification includes:

• Sprinkler system • Lighting • Heating • Regular floor plate

Block N Block N was a plant room, located to the rear of the main office comprising of a single storey building, now converted to a vehicle store.

There have been a number of recent improvements to include:-

Block L A phased LED upgrade has been completed.

Block K Circa £250,000 of capital expenditure has been spent to erect a new canopy and re-clad the entire facade. Further works are in for planning to block K in early 2021 to reclad the facade the same as the recent main entrance works, at a cost of circa £200,000

Block M A phased LED upgrade has been completed.

Block N This was a former disused plant room, which has now been re-purposed as a vehicle store. Circa £250,000 of capital expenditure has been spent on recladding the facade and upgrading the existing lighting to LED.

The building comprises 179,806 sq ft of office and industrial accommodation, arranged over four separate blocks:

M LN

K

Predominantly built in 2001, the property consists of four distinct blocks.

SigmaHouse Christopher Martin Road, Basildon SS14 3EL 7

SigmaHouse Christopher Martin Road, Basildon SS14 3EL 8

Site PlanThe site area extends to approximately 2.6 hectares (6.4 acres).

Car Parks There are approximately 579 car parking spaces on site (including 4 electric charging bays) providing a car parking ratio of 1:280 sq ft.

Tenure Freehold.

EPC Block K – C (74) Block L – D (94) Block M – D (80) Block N – C (54)

ACCOMMODATION

Tk

Tk

Lighting Column Lighting Column

SubEl

Sta

ESS

ESSs

El Sub Sta

CRANES

Heronsgate Trading Estate

25

21

91213 10 11

33

11

Olympic Business CentreThe Arnold Centre

32

17

29 30

Sigma House

24

El Sub Sta

16

16

27 to 29

15

22

Sinks

Issues

18.0m

19.2m

PostsCHRISTOPHER MARTIN ROAD

0m 10m 20m 30m

This plan is published for convenience of identification only and although believedto be correct its accuracy is not guaranteed and does not form any part of a contract.

Sigma House, Christopher Martin Road, Basildon

Ordnance Survey © Crown Copyright 2018. All rights reserved. Licence number 100022432. Plotted Scale - 1:1500 Block Floor Use NIA/GIA Area Sq Ft Area Sq M

L Second Office NIA 28,608 2,658

L First Office NIA 34,930 3,245L Ground Office NIA 36,921 3,430L Reception Office NIA 5,349 470TOTAL L 105,808 9,803

K First Office NIA 3,707 344K Ground Office NIA 6,036 561TOTAL K 9,743 905

M Mezzaine Manufacturing GIA 12,797 1,189M Ground Manufacturing GIA 47,214 4,386TOTAL M 60,011 5,575

N Ground Warehouse / Store GIA 4,244 394TOTAL N 4,244 394

SUB-TOTAL Offices (64%) 115,551 10,667

SUB-TOTAL Manufacturing / Stores (36%) 64,255 6,000TOTAL 179,806 16,677

SigmaHouse Christopher Martin Road, Basildon SS14 3EL 9

579 car parking spaces on site providing a car parking ratio of 1:280 sq ft.

SigmaHouse Christopher Martin Road, Basildon SS14 3EL 10

COVENANT

TENANCY

The building is single let to Leonardo MW Ltd on the following terms:

Leonardo MW Ltd - The provision in the production of electronic and information solutions for defence and aerospace markets, as well as high-integrity surveillance networks to provide management information for security and mission essential services.

The office space has been reviewed to £15.50 psf and the manufacturing space to £10psf. Further information on the breakdown of the rent review can be supplied upon request.

The previous rent prior to the recently agreed rent review was £1,975,000.

The lease is subject to a schedule of condition.

Floor Size (Sq ft) Tenant Start Expiry Rent Review Rent (pa)

Whole 179,806 Leonardo MW Ltd

29/10/2004 28/10/2029 01/01/2025 £2,227,000

31/12/2019 31/12/2018 31/12/2017

Turnover £2,139,436,000 £2,058,763,000 £1,838,421,000

Pre-Tax Profit £267,679,000 £255,722,000 £148,634,000

Shareholder’s Funds £1,876,236,000 £1,680,784,000 £1,650,742,000

Let in its entirety to Leonardo MW Ltd until 28/10/2029, providing over 9 years term certain.

SigmaHouse Christopher Martin Road, Basildon SS14 3EL 11

PROPOSAL We are seeking offers of £33M (THIRTY THREE MILLION POUNDS) for our client’s freehold interest in the above, subject to contract and exclusive of VAT.A purchase at this level will reflect a net initial yield of 6.32% after allowances for purchaser’s costs of 6.8%.

An SPV transaction may be available by way of separate negotiation.

CONTACT

Stephen Raingold stephenraingold@lewisandpartners.com

M: 07775 647 499

Steven Lewis stevenlewis@lewisandpartners.com

M: 07785 236 209

15/19 Cavendish Place, London

W1G 0QE

Tel: 0207 580 4333

LEWIS & PARTNERS LLP AND WALTON INTERNATIONAL UK LTD FOR THEMSELVES AND FOR THE VENDORS OF THIS PROPERTY WHOSE AGENT THEY ARE GIVE NOTICE THAT:-

1. These particulars do not constitute any part of the offer for sale or contract for sale.2. All statements contained in these particulars as to this property are made without responsibility on the part of Lewis & Partners LLP and Walton International UK Ltd. or the vendors or lessors.3. None of the statements contained in these particulars as to this property are to be relied on as statements or representations of fact.4. Any intending purchasers must satisfy themselves by inspection or otherwise as to the correctness of each of the statements contained in these particulars.5. Any plans or photographs or drawings shown in these particulars are to enable prospective purchasers or tenants to locate the property. The plans are photographically reproduced and therefore not to scale except where expressly stated. The plans, photographs or drawings are for identification purposes only.6. No warranty or undertaking is given in respect of the repair or condition of the properties or any items expressed to be included in the sale.

7. Any properties or drawings of the relevant property or part thereof or the neighbouring areas may not depict the property or the neighbouring areas at the date a prospective purchaser or tenant inspects the property. Prospective purchasers are strongly advised to inspect the property and neighbouring areas.8. Lewis & Partners LLP and Walton International UK Ltd. have not measured the property and have relied upon clients information. Therefore Lewis & Partners LLP and Walton International UK Ltd. give no warranty as to their correctness or otherwise and the purchasers must rely on their own measurements.9. All terms quoted are exclusive of value added tax unless otherwise stated.10. The vendors do not make nor do Lewis & Partners LLP and Walton International UK Ltd. any person(s) in their employment give any warranty whatsoever in relation to this property.11. These details are believed to be correct at the time of compilation but may be subject to subsequent amendment.12. These details were prepared as of SEPTEMBER 2020 Adrian Gates Photography & Design 07710 316 991

Toby D’Arcy toby@waltonint.co.uk M: 07502 599 885

Walton House, 20 Coleford Road, London

SW18 1AD

Tel: 0203 818 8868

For further information contact sale agents:

SUBJECT TO CONTRACT AND EXCLUSIVE OF VAT