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Freehold Landmark Investment

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					101-105 VICTORIA STREET LONDON SW1




Freehold Landmark Investment
INVESTMENT SUMMARY

   Prime Victoria location in the heart of the West End
   of London


   Significant island site of 1.19 acres with a substantial
   frontage of 80m to Victoria Street, the area’s
   principal shopping street


   Mixed use building providing high quality Grade
   A offices, with substantial but flexible floor plates,
   together with a flagship department store and a
   single retail unit


   Approximately 300,000 sq ft (27,870 sq m)


   Freehold


   Multi-let offices with an average weighted unexpired
   term of approximately 8 years to lease expiries.
   Average office rent reflecting £47.56 per sq ft, with
   potential to capture strong rental growth


   Department store let to House of Fraser for a
   further 41.5 years at a low rent equating to only
   £9.94 per sq ft


   Office income secured to strong covenants


   Ability to drive returns and performance through
   active asset management opportunities, including
   rent reviews, lease re-gears, retail re-positioning and
   residential potential


   Total rent passing of £8,731,973 per annum
   exclusive


   Offers sought in excess of £150,000,000 (One
   Hundred and Fifty Million Pounds) subject to
   contract, reflecting a net initial yield of 5.50%
   after allowing for full purchaser’s costs of 5.80%
   which shows a low capital value of £495 per sq ft.

   The property is held in a JPUT and therefore there
   is an opportunity for an investor to acquire all the
   units in the Trust.
                                 The City of London                                    The Shard   Docklands




                                                                    Waterloo Station




                                                               Houses of Parliament

Horse Guards Parade


                                                           Westminster Abbey




    St James’s Park




                                                Westminster Cathedral
                Cardinal Place
LOCATION
Southside is situated in the heart of Victoria, an established West End office location accounting for almost a quarter of the total office stock in the
West End. Strategically located, Victoria is bounded by Mayfair and St James’s to the north, Belgravia to the west and the River Thames to the south
and east.

Victoria has historically been synonymous with Government occupiers, due to its proximity to Westminster as well as large multi-national corporations
who require large floor plates. More recently however, the area has attracted a more diverse tenant base, predominately as a result of new high profile
developments such as Cardinal Place. Local office occupiers in the area include Google, American Express, EDF Energy, Chevron,The Telegraph Group,
Channel 4 Television, John Lewis, Microsoft as well as the Government and Westminster City Council.

Victoria also offers excellent retail facilities and today is very much a ‘destination location’, whilst also being located near some of London’s most
prestigious residential addresses in Belgravia and Knightsbridge.



SITUATION
The property occupies an island site on the south side of Victoria Street, a major thoroughfare extending from Victoria Station towards Parliament
Square and Westminster Abbey. The property is bounded by Howick Place, Artillery Row and Wilcox Place, whilst also benefiting from a substantial
retail frontage to Victoria Street of approximately 80m (240 ft). The total site area is 1.19 acres (0.48 hectares).


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                                                                                                                                                                                                                                          Westminster
                                                                                                                                                                                                                                          Millenium Pier
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COMMUNICATIONS
                                           CHELSEA BRIDGE
The property benefits from excellent transport communications, with three London underground stations being located nearby at Victoria (Victoria,
District and Circle Lines), St James’s Park (District and Circle Lines) and Westminster (Jubilee, District and Circle Lines).

Victoria Station is one of London’s major mainline railway stations serving over 115 million passengers each year. The station is the principal rail link
to the South and South-East of England, as well as providing access to Gatwick Airport via the Gatwick Express.

National bus coverage is provided by buses leaving from Victoria Coach Station whilst nearby bus routes on Victoria Street provide access across
London.

In addition, boat services along the River Thames operate from Westminster Millennium Pier adjacent to Westminster Bridge.
                                                                                                                                                                                                                                       4      VT12


                                                                                                                                                                                      6   Victoria Station




                                                                                                                                                                                      5     Kingsgate House




                                                                                                                                         1      123 Victoria Street




                                                                                   2     1-7 Howick Place




                                                                                                                                                     3     62 Buckingham Gate                                                                                                             7        Wellington House




    VICTORIA REGENERATION

Victoria is currently undergoing a major regeneration, led primarily          1    123 Victoria Street                                                                                      4    VTI2                                                                                                     Not shown on aerial -
by Land Securities. Over the next 5-10 years a large number of out-           Land Securities has commenced a comprehensive refurbishment which is scheduled for completion in              Land Securities has secured planning permission for Victoria Transport Interchange 2 plan (VTI2). The
dated buildings around the station and along Victoria Street have been        June 2012. The building totals 177,520 sq ft of Grade A offices and 45,370 sq ft of retail.                   development will result in a mixed use scheme in six new buildings totalling 910,000 sq ft comprising         39 Victoria Street
identified for development, with the intention to create a thriving mixed                                                                                                                   589,340 sq ft of new offices, 105,750 sq ft of retail and 185,400 sq ft of residential space.                 British Land will undertake a refurbishment of the building on obtaining
use environment. The aerial photograph above illustrates the key              2    1-7 Howick Place                                                                                                                                                                                                       vacant possession in July 2012. The building totals 76,000 sq ft
schemes earmarked over the short to medium term.                                                                                                                                            5    Kingsgate House, 66-74 Victoria Street
                                                                              Doughty Hanson & Terrace Hill has commenced construction on this 227,000 sq ft mixed use
More recently, Westminster has adopted a more receptive planning              scheme. The building will provide 139,000 sq ft of Grade A office space over 8 floors with 23 private         Owned by Land Securities, the existing building totals 155,500 sq ft of offices and 30,700 sq ft of retail    1a Page Street
approach when considering change of use from vacant office buildings          residential apartments. Completion is scheduled for Q3 2012.                                                  space. The building is earmarked for redevelopment in the next 5 years.                                       Derwent London are undertaking a comprehensive refurbishment which
to more valuable residential. This has resulted in a significantly higher                                                                                                                                                                                                                                 is scheduled for completion in Q3 2012. The building totals 118,000 sq ft
number of conversions, which will create a more diverse occupier              3    62 Buckingham Gate                                                                                       6    Victoria Station                                                                                         arranged over 10 floors.
landscape and should also naturally assist office rental growth, as overall   Land Securities has commenced construction on this 13-storey prism-like structure designed by Pelli           Network Rail and Hammerson are proposing a major mixed use development of 800,000 sq ft.
stock levels deplete.                                                         Clarke Pelli and Swanke Hayden & Connell. The building will provide 252,400 sq ft of Grade A office                                                                                                                         40 Broadway
                                                                              space and 16,750 sq ft of retail and is scheduled for completion in Q2 2013.                                  7    Wellington House                                                                                         Great Portland Estates and Liverpool Victoria have secured planning
                                                                                                                                                                                            A striking new residential development by Land Securities arranged over ten storeys, comprising 59            consent for a new eight storey office building totalling 117,000 sq ft as well
                                                                                                                                                                                            spacious apartments , due for completion during the end of 2012. Circa 90% of the apartments have             as seven residential flats and a “garden house” fronting Carteret Street.
                                                                                                                                                                                            been sold “off plan” reflecting an average sale price of £1,400 sq ft.
DESCRIPTION
Southside is a landmark mixed-use building totalling approximately 28,138 sq m (302,872 sq ft)
constructed in the late 1970s on an island site. It comprises a House of Fraser department store,
together with highly specified self-contained Grade A offices above.


Offices
The office accommodation comprises approximately 14,048.7 sq m (151,220 sq ft) of high quality
multi-let offices arranged over part ground floor, mezzanine and nine upper floors accessed from
Victoria Street via a contemporary ground floor reception. A secondary access from Artillery Row
serves the ground to sixth floors only.

Constructed around two lightwells, the office accommodation benefits from excellent natural
light. Recent refurbishment works have included infilling the lightwells on the third floor providing
additional floor area.

The entire office accommodation has been subject to a staggered comprehensive refurbishment.
The fifth and ninth floors were refurbished between 2000-2004, the sixth, seventh and eighth floors
in 2005, followed by the first and mezzanine through to fourth floors in 2006. All floors were
refurbished to a Grade A specification. The reception area and common parts were refurbished in
2001.

The office floors vary in size through out, predominately due to the stepped design of the building
and are highly flexible allowing for multi-occupancy on each floor.

The internal specification includes:


•   Fully accessible raised floors
•   2.58m finished floor to ceiling height
•   Predominantly metal tiled suspended ceilings
•   Four pipe fan coil air-conditioning
•   LG3 and LG7 compatible lighting
•   Four high speed 20-person passenger lifts and an 8-person fireman’s lift, providing access to all
    floors in the west core
•   Two 12-person passenger lifts located in the east core serving ground floor to sixth floor levels
•   Floor loading of 4 KN/m2
•   Male, female, disabled WCs and shower facilities on each floor
•   Standby generator is provided in the basement to provide essential services to 25% of lighting
    and 10% power for each floor



Retail
The department store is arranged over sub-basement, sub-basement mezzanine, lower ground,
ground, part first and part second floors and totals 14,017 sq m (150,870 sq ft) on a gross internal
basis. It provides sales areas on the lower ground, ground, part first and part second floors, with
storage at sub-basement level and staff facilities at sub-basement mezzanine level.

We understand the store is equipped with a water sprinkler system, 2 passenger lifts, two goods lifts
and a series of escalators which interlink the retail areas.

In addition there is a retail unit on ground floor level fronting Wilcox Street totalling approximately
68.76 sq m (740 sq ft) which is currently used as a coffee shop.
  STACKING PLAN                                                                                                                                                           FLOOR PLANS

                                                                                                                                                                          Seventh Floor



                                                                                                                                         9th Floor                                                                     Ramp up




                                                                                                                                         8th Floor




                                                                                                                                                                                                                                              Ramp 3010
                                                                                                                                                                                                                                 Ramp up
                                                                                                                                                                                                                                                           Ramp up




                                                                                                                                         7th Floor




                                                                                                                                                                                                                                               Ramp 3010
                                                                                                                                         6th Floor
                                                                                                                                         5th Floor
                                                                                                                                         4th Floor

                                                                                                                                                                                                                                                                     Not to scale
                                                                                                                                         3rd Floor

                                                                                                                                         2nd Floor which
                                                                                                                                         includes mezzanine
                                                                                                                                         1st Floor

                                                                                                                                         Ground Floor
ARTILLERY ROW




                                                                                                                                         Lower Ground Floor which
                                                                                                                                         includes sub-basement and
                                                                                                                                         sub-basement mezzanine           Fourth Floor




                                                                                                                                                Office
                                                                                              ET
                                                                                       STRE
                                                                         VICT     ORIA                                                          Retail




  ACCOMMODATION
  The property has been measured by Plowman Craven Associates in accordance with the RICS Code of Measuring Practice 6th Edition and provides the following net and
  gross internal areas.

  A duty of care letter can be provided to a purchaser if required.



  Offices                                                                                          Retail/Department Store                                                Ground Floor


        Floor              Use                 Sq m NIA               Sq ft NIA                    Floor              Use                Sq m GIA             Sq ft GIA
        9th                Office                   544.7                5,863                     Part 2nd           Sales                3,088.3              33,242
        8th                Office                   709.1                7,633                     Part 1st           Sales                3,070.5              33,051
        7th                Office                 1,239.5               13,346                     Part Ground        Sales                2,600.4              27,990




                                                                                                                                                                                  ROW
        6th                Office                 2,029.5               21,845                     Lower Ground       Sales                3,274.8              35,250




                                                                                                                                                                              RY
        5th                Office                 2,305.5               24,816                     Sub-Basement       Staff Facilities       630.0               6,778
                                                                                                   Mezzanine




                                                                                                                                                                             ILLE
        4th                Office                 2,393.4               25,762
        3rd                Office                 2,947.4               31,726                     Sub-basement       Storage              1,352.6              14,559




                                                                                                                                                                            ART
        Part 2nd           Office                   550.7                5,928                     Department                             14,016.6             150,870
                                                                                                   Store Sub-Total
        Mezzanine          Office                   547.5                5,894
        Part 1st           Office                   543.1                5,846                     Floor              Use                Sq m NIA             Sq ft NIA

        Part Ground        Reception                237.9                2,561                     Part Ground   *
                                                                                                                      Retail                  68.7                 740

        Office Sub-Total                         14,048.7              151,220                     Retail Sub-Total                       14,089.3             151,652




        OVERALL GRAND TOTAL                                                                                                              28,138.0             302,872
                                                                                                                                                                                          V I C TO R I A S T R E E T
                                                                                                                                                                                                                                           All plans are indicative only and not to scale.
  *
     Not included in Plowman & Craven Measured Survey.
TENURE                                                                                                                                                                   TENANCIES
Freehold.                                                                                                                                                                The property is multi-let in accordance with the tenancy           ASSET ENHANCEMENT
                                                                                                                                                                         schedule as set out.                                               OPPORTUNITIES
                                                                                                                                                    e
                                                                                                                                               Palmer Stre
                                                             CE




                                                                                                                                                                         Offices
                                                          PLA




                                                                                                                                        42
                                                           H
                                                        RT




                                                                                                                                                                                                                                            House Of Fraser
                                                 5

                                                        AFO




                                                                                                                                                                         The offices are fully let to six tenants on ten institutional
                                                     SE




                                                                                                                                                              33
                                                                                                            65
                                             3




                                                                                             60




                                                                                                                                                                         leases, having always let well through all stages of a property    The 150,870 sq ft department store is currently let at an exceptionally
                                                                                                                        7

                                                                                                                                          Butle
                                                                                                                                               r             Place       cycle, with an average weighted unexpired term to expiry           low rent of only £9.94 per sq ft for a further 41.5 years.The passing rent
                                                                    SPEN
                                                                         SER
                                                                             STRE
                                                                                 ET
                                                                                                                                                                         of approximately 8 years. The income from the offices              is considered to be highly reversionary and a substantial uplift could be
                                                                                                                                                                         totals £7,070,848 per annum exclusive reflecting £47.56            achieved at the next rent review in September 2012.
                                                                                                                  63




                                                                                                                               The
                                                                                                                                                                         per sq ft overall. This assumes the outstanding rent free for
                                                                                                                              Albert                                     the seventh floor lease and the stepped rent on the sixth          Subject to planning, servicing arrangements and achieving vacant
                                                                                       t of                                      (PH)
                                                                                  tmen
                                                                            Depar tional Affa
                                                                            Const
                                                                                 itu
                                                                                                irs
                                                                                            54 to
                                                                                                  60                                                                     floor lease is topped up by the vendor.                            possession, the current store could support a split into smaller, higher
                  Westminster
                                                                                                                                                                                                                                            value stores, which could be let to fashion retailers on a zoned basis
                   City Hall
                                                                                                                                                                         Retail                                                             or indeed a single department store at a significantly higher rent
                                                                                                                                                                         House of Fraser (Stores) Ltd occupy the department store           thereby creating substantially more value.
                                62
              1      64                                                                                                                              95                  in its entirety for a further 41 years and 5 months at a
                                                                                                                                                                         current passing rent of £1,500,000 per annum, equating to
                                                                                                                                                                         £9.94 per sq ft overall. It is subject to 5 yearly rent reviews,   Office Management
                                                                                     103
                                                                                           97 to                                                                         the next being on 5 September 2012.This income accounts            The offices are currently at 100% occupancy. Some of the tenants
                                                                                                                                              1




                                                                                                                                                                         for approximately 17% of the total income and we consider          have an on-going requirement to take more space within the
                                                                                                                                             3




                                                                                                                                                                         the current rental level to be highly reversionary. In addition,   building, which may present an opportunity to re-structure
                                                                                                                        ARTILLERY ROW



                                                                                                                                             5




                                                                                                                                                                         part of the ground floor is let to Aroma Ltd until June 2011       the leases through surrender premiums and lease
                                                                           Southside
                                                              105
                                                                                                                                           7




            111
                   109
                          107
                                                                                                                                                                         at a current passing rent of £45,000 per annum.                    renewals at higher rents.
      113
                                 Wilc




115


                                                                                                                                                                         Telecoms
                                     ox
                                     Plac




                                                                                                                                                                                                                                            Residential Potential
                                                                                                                                         11 to 19




                                                                                                                                                                         There are five telecom masts on the roof let to Vodafone,
                                         e




                                                                                                                                                             Artillery
                                                                                                                                                             House

                                                                                                                                                                         Orange, Hutchison 3G, T Mobile and Telefonica O2 which             Subject to the necessary consents, there may be scope to
                                                                       3
                                                                                     1
                                                                                                                                                                         produce £116,116 per annum.                                        create a residential element on the roof.
                                     E
                     HOWICK     PLAC
                                                                                                                                                                         Sub-station
                                                                                                                                        21




      TCBs
                                                                                                                                        23




                                                                                                                                                15
                                                                                                                                                               14
                                                                                                                                                                         A sub-station located in the basement is let to London
                                                                                                                NCE
                                                                                                                    R
                                                                                                                                                                         Electricity Board expiring on 23 June 2075 at an annual
                                                                                                            SPE CE
                                                                                                              PLA                                               Wa
                                                                                                                                                                  rd     rent of £5 per annum, with a landlord’s redevelopent break
                                                                     Francis House                                                                                  CR   option, effective after 24 June 2016.
                                                                                                       PH                               Tow
       Sorting Office                                                                                                                         nse
                                                                                                                                                 nd
                                                                                                                                                                         The property therefore produces a total rent of £8,731,973
                                                                                                       2




                                                                                                                                                    H           ous
                                                                                                                                                                    e

                                                                                                                                                                         per annum exclusive, including the topped up rents being
  0m         10m          20m   30m
                                                                                                                                                                         provided by the vendor.
TENANCY SCHEDULE
Floor                  Area Sq ft   Tenant                                  Rent PA       Rent PSF     Lease Length & Start          Expiry       Tenant Break            Review Pattern            Comments
                                                                                                              Date                                                        (Next Review)

9th                      5,863      The First Secretary of State            £273,882       £46.71    15 years from 25 March 2004   24 Mar 2019           -                     5 yearly             S/C cap at £7.50psf increased annually by RPI. No shortfall for current year ending March 2012. Not contracted out.
                                                                                                                                                                            (25 Mar 2014)           Application for licence to underlet to NHS Westminster received and progressing.

8th                      7,633      Chime Communications plc                £343,080       £44.94     10 years from 12 Sep 2005    11 Sep 2015           -                         -                Lease assigned to Chime Communications plc on 28 January 2011. AGA provided by Ranstad Middle East Limited.

7th                      13,346     The Association of the British          £513,051       £38.44      10 yrs from 4 Feb 2011      3 Feb 2021            -                     5 yearly             Rent commencement 4 Oct 2012. Vendor to top up rent free period. 6 months’ rent deposit (£307,830.06). Deposit is to be paid by 6 equal monthly instalments on
                                    Pharmaceutical Industry                                                                                                                 (4 Feb 2016)            4 February, March, April, May, June and July 2011. Part underlet to Bio Industry Association. Service charge cap at £199,890 for first year increasing with RPI thereafter.

6th                      21,845     Chime Communications plc                £830,110       £38.00       10 yrs from 1 Jan 2011     31 Dec 2020      1 Jan 2016                 5 yearly             Rent start 1 April 2011. Paying £655,320 pa (£30.00 per sq ft) for first 30 months then on 1 October 2013 the rent rises to £830,110 pa (£38.00 per sq ft). TOB on
                                                                                                                                                                             (1 Jan 2016)           1 January 2016 giving 6 months prior written notice. If the lease is not broken then there is a rent free period from 1 Jan 2016 - 30 April 2016. S/C cap at £262,140
                                                                                                                                                                                                    increased annually by RPI. The minimum S/C cap is increased from £262,140 to £327,675 for the financial year commencing 24 March 2016. No shortfall for current
                                                                                                                                                                                                    year ending March 2012. Vendor to top up rent to £830,110 per annum until October 2013.

5th                      24,816     The First Secretary of State           £1,137,659      £45.84    15 years from 15 March 2004   24 Mar 2019           -                     5 yearly             S/C cap at £7.50psf increased annually by RPI. No shortfall for current year ending March 2012. Not contracted out.
                                                                                                                                                                            (25 Mar 2014)           Application for licence to assign to G4S Regional Management (UK & I) Limited received and progressing. The First Secretary of State can be required to enter an
                                                                                                                                                                                                    authorised guarantee agreement.

4th                      25,762     The Strategic London Health            £1,328,597      £51.57    10 years from 24 Nov 2006     23 Nov 2016           -                    5 yearly
                                    Authority                                                                                                                              (24 Nov 2011)

3rd                      31,726     Daniel J Edelman Ltd                  £1,698,464.50    £53.53      15 yrs from 24 Oct 2007     23 Oct 2022     24 Oct 2017                 5 yearly             Guarantor Daniel J Edelman Inc. TOB on 12 months prior written notice. Not contracted out.
                                                                                                                                                                            (24 Oct 2012)

Part 2nd                 5,928      The Strategic London Health             £318,004       £53.64      10 yrs from 17 Oct 2006     16 Oct 2016           -                     5 yearly             Reversionary lease in place for period from 17 Oct 2016 to 23 Nov 2016 to be co-terminus with 4th floor.
                                    Authority                                                                                                                               (17 Oct 2011)

Mezzanine                5,894      The Strategic London Health             £325,000       £55.14      10 yrs from 26 Feb 2007     25 Feb 2017   Any time after 26             5 yearly             Rolling Tenant option to break after 26 February 2012 on 6 months notice.
                                    Authority                                                                                                       Feb 2012                (26 Feb 2012)

Part 1st                 5,846      Dainippon Sumitomo Pharma               £303,000       £51.83      10 yrs from 24 Jan 2007     23 Jan 2017   Any time after 24             5 yearly             Rolling TOB from 24 January 2012 on 6 months prior written notice. 6 months’ rent deposit held. Not contracted out.
                                    Europe Ltd                                                                                                       Jan 2012               (24 Jan 2012)

Office Sub-total        148,659                                           £7,070,847.50    £47.56


Sub Bmt, Sub Bmt        150,870     House of Fraser (Stores) Ltd           £1,500,000      £9.94       75 yrs from 5 Sep 1977      4 Sep 2052            -            5 yearly (5 Sep 2012) until   External demise. No service charge payable.
Mezz, L G, Pt Grd Pt                                                                                                                                                  5 Sep 2037 and thereafter     Original tenant was House of Fraser plc.
1st & Pt 2nd                                                                                                                                                                    3 yearly

Part Ground               782       Aroma Ltd                                £45,000       £57.74      10 yrs from 24 Jun 2001     23 Jun 2011           -                         -                Section 25 notice served to terminate lease on 1 July 2011. Terms of new lease being negotiated by agents.

Retail Sub-total        151,652                                            £1,545,000


Aerial                              Vodafone Ltd                             £16,035                                                                                                                Lease expired on 24 December 2008 but tenant remains in occupation.

Aerial                              Orange Personal Communications         £26,615.55                       16 Oct 2003            31 Dec 2021      At any time                3 yearly             3 yearly RR based on higher of open market or RPI. TOB if apparatus can no longer be operated (e.g. destruction of existing building, erection of new buildings,
                                    Services Ltd                                                                                                   (conditional)            (16 Oct 2012)           environmental changes or other material technical reasons) at any time on 12 months’ notice. Rolling LOB for redevelopment on or after 29 Sept 2008 on 12 months’
                                                                                                                                                                                                    notice.

Aerial                              Hutchison 3G UK Ltd.                   £26,563.88                       23 Sep 2003            31 Dec 2021   23 Sep 2013 and/              3 yearly             TOB (i) on 23 Sept 2013, and (ii) if the tenant loses its operating licence, each on 6 months prior written notice. Rolling LOB for redevelopment on or after 30 June
                                                                                                                                                   or at any time           (23 Sep 2012)           2008 on 12 months’ notice. 3 yearly RR based on higher of open market or RPI
                                                                                                                                                    (conditional)

Aerial                              T-Mobile (UK) Ltd                        £22,500                   20 yrs from 16 Jun 2006     15 Jun 2026     16 Jun 2011 or              5 yearly             5 yearly RR based on higher of open market rent or RPI. TOB: (i) on 16 June 2011, or at any time after 16 June 2016; and (ii) if apparatus can no longer be operated
                                                                                                                                                 after 16 June 2016         (16 Jun 2011)           due to tenant losing its operating licence or for any other material technical reason, each on 12 months prior written notice. Landlord’s rolling redevelopment break on
                                                                                                                                                 and/or at any time                                 or after 16 June 2011 on 12 months prior written notice.
                                                                                                                                                    (conditional)

Aerial                              Telefonica O2(UK) Ltd                  £24,406.04                       27 Apr 2007            26 Apr 2022   Anytime after 27              3 yearly             TOB: (i) at any time after 27 Apr 2012; and (ii) if the apparatus can no longer be operated due to tenant losing its operating licence or premises no longer suitable at
                                                                                                                                                  Apr 2012 and/             (27 Apr 2013)           any time on 6 months prior written notice. 3 yearly RR based on higher of open market or RPI
                                                                                                                                                  or at any time
                                                                                                                                                   (conditional)

Sub-station                         London Power Networks plc                  £5                            99 yrs from           23 Jun 2075
                                    (formerly London Electricity Board)                                      24 Jun 1976

Aerial/sub-station                                                        £116,125.47
sub-total


TOTAL                   300,311                                            £8,731,973
TENANT’S FINANCIAL INFORMATION                                                                                                                                MARKET COMMENTARY
The First Secretary of State                                                                                                                                  Office Occupational Market
The tenant is the Department for Transport, a government department working to provide a transport system which balances the needs of the                     Victoria forms almost a quarter of the total stock of London’s West End office market and continues to evolve as an international centre for
economy along with the environment and society.                                                                                                               commerce, with its enviable transport links and strategic position in London’s West End.

                                                                                                                                                              Throughout 2010 and the early part of 2011 the market has experienced a dramatic upturn in occupier demand, mainly from international and
Chime Communications Plc                                                                                                                                      corporate occupiers who have been attracted to larger than average floor plates at more economical rents rather than competing for buildings with
The Chime Group is a Global PR company helping clients create and market their businesses, brands and reputation both in the UK and Internationally.          higher rents in the City and West End.
Chime is made up of four divisions, 50 agencies and over 1,200 people with offices throughout the UK, Europe, USA, Africa, Asia and Australia.
Chime is the holding company for the international public relations group, Bell Pottinger, one of the fastest growing advertising groups which includes       Availability at the end of 2010 stood at around 780,000 sq ft, representing a vacancy rate of approximately 5.5%. This figure is expected to remain low
VCCP, Teamspirit, Fast Track and Essentially, and a market leading research and engagement group including Opinion Leader Research and Facts                  owing to a severely restricted short to medium term development pipeline. In fact the only newly completed development available for occupation
International.                                                                                                                                                in Victoria today is 68,000 sq ft at The Peak, 15 Wilton Road. This shortage is widely expected to have a positive effect on rental growth throughout
                                                                                                                                                              2011/2012 with recent prime lettings having achieved in excess of £60.00 per sq ft as seen at the Peak on Wilton Road.
Chime is listed on the London All-Share stock exchange with a Market Capitalisation of £217 million and for the year ending 31 December 2010
reported a turnover of £299,800,000, a pre-tax profit of £21,240,000 and net assets of £135,336,000. Further information can be found at www.                 Retail Occupational Market
chime.plc.uk.                                                                                                                                                 Victoria as a retail market is constantly evolving and today can be characterised by a lack of quality units and a high level of demand. Since the
                                                                                                                                                              development of Land Securities’ Cardinal Place in 2005 the area has experienced a major change in the retail mix progressing towards a more fashion
Chime took assignment of the lease from Randstad Middle East Ltd who has provided an Authorised Guarantee Agreement (AGA). Randstad is the                    based line up, including retailers such as Topshop, Zara, Jones, Monsoon and Accessorize. Today the prime pitch stretches along Victoria Street between
world’s largest specialist recruitment provider employing over 28,000 members of staff around the world. For the year ending 31 December 2009                 Victoria Station/Cardinal Place to the west and Buckingham Gate to the east and includes retailers such as Next, Moss Bros, Books etc and House
the company reported a turnover of £81,074,000, a pre-tax profit of £2,962,000 and net assets of £32,561,000.                                                 of Fraser.

                                                                                                                                                              Land Securities’ commitment to the development of Victoria Street is expected to assist future demand predominantly from high street fashion
The Association of British Pharmaceutical Industry (ABPI)                                                                                                     occupiers seeking large stores, as well as other retailers relocating to this new shopping destination.There are currently several outstanding requirements
The ABPI is the trade association for companies in the UK producing prescription medicines for humans. Originally formed in 1891 the body today               for large stores from retailers including H&M, TK Maxx, New Look and Waitrose.
has 150 members including the majority of research-based pharmaceutical companies operating in the UK, both large and small. These member
companies research, develop, manufacture and supply more than 80% of the medicines prescribed through the NHS.                                                Prime retail rents on Victoria Street have now returned to their 2009 Peak levels of around £260 Zone A. Many large retailers are now analysing
Further information can be found at www.london.nhs.uk                                                                                                         these rents on an overall department store basis and for the right unit rents closer to £300 Zone A or £40 per sq ft overall could be achieved, as
                                                                                                                                                              evidenced in Oxford Street.

The Strategic London Health Authority                                                                                                                         In addition, the former Royal Mail sorting office, to the rear of Southside in Howick Place, has been converted into an iconic mixed use scheme
                                                                                                                                                              attracting top international “lifestyle” names, to Victoria for the first time, such as Tom Ford and Phillips De Pury.
NHS London forms part of the National Health Service (NHS) and is the Strategic Health Authority (SHA) for the whole of the Greater London
area. The company provides a strategic leadership for the capital’s healthcare and controls the £13 billion of annual investment in staff and key services.

The SHA is government funded and has overall responsibility for London’s healthcare. It controls the performance of 31 primary core trusts, 21 acute          INVESTMENT MARKET
trusts, three mental health trusts and the London Ambulance Service.
Further information can be found at www.london.nhs.uk                                                                                                         The Central London investment market strengthened considerably over the course of 2010 and is expected to remain particularly robust over the
                                                                                                                                                              coming months. Over £5 billion of stock was traded in 2010, up by approximately 60% on 2009.

Daniel J Edelman Ltd                                                                                                                                          Demand remains exceptionally strong as global investors continue to target London as a market offering economic stability, liquidity, transparency
Edelman is the world’s leading independent PR firm having been established for over 50 years. Today the company is privately owned with over 3.600            and future rental and capital growth prospects. Recent global uncertainties whether they be economic, political or environmental has led to a flurry
employees across 53 offices worldwide and was named PR Week’s and Adweek’s UK Consultancy of the year in 2009 as well as Advertising Age’s                    of activity into the relative safety of the London market, and this, coupled with a still favourable exchange rate has made London remain the number
‘Top Ranked PR Firm of the Decade’.                                                                                                                           one destination for global capital.

The company specialises in consumer financial services, health, technology and industrial sectors and for the year ending 30 June 2009 reported a             2011 has seen a limited supply of quality opportunities, particularly within the core markets, which has resulted in a continued sharpening of income
turnover of £45,936,953, a pre-tax profit of £2,523,910 and net assets of £3,090,447.                                                                         yields. Prime office yields currently stand at around 4.0% in the Prime West End and 5.50% in Victoria. Evidence of these transactions are set out below.
Further information can be found at www.edelman.com
                                                                                                                                                               Date          Address                                                  Price (million)       Yield (%)    Capital Value        Size           Tenure
                                                                                                                                                                                                                                                                         (£ per sq ft)       (Sq ft)
Dainippon Sumitomo Pharma Europe Ltd
DSP Europe Ltd was established in 1997 and today forms part of Dainippon Sumitomo Pharma Co Ltd (DSP), a multi-billion dollar, top-ten listed                  Q2, 2011      Jubilee House, 197-213 Oxford Street, W1                 u/o £163.0m            4.40%          £1,345          121,144         Freehold
pharmaceutical company in Japan with a diverse portfolio of pharmaceutical, animal health and food, and speciality products. DSP was formed in 2005
                                                                                                                                                               Q2, 2011      The Adelphi, 1-11 John Adam Street, WC2                 Quoting £295m           5.50%           £922           319,881         Freehold
through a merger between Dainippon Pharmaceutical Co Ltd and Sumitomo Pharmaceuticals Co Ltd. Today, DSP has more than 7,000 employees
worldwide.                                                                                                                                                     Q1, 2011      33 Grosvenor Place, SW1                                    £160.3m              5.90%           £808           191,161        Leasehold

For the year ending 31 December 2010 the company reported a turnover at £3,730,111, a pre-tax profit of £177,624 and net assets of £1,791,624                  Q1, 2011      Telstar House, 2 Eastbourne Terrace, W2                    £96.75m              5.10%           £891           108,576         Freehold
and has been awarded a Dun & Bradstreet rating of 2A1 which represents minimum risk.
                                                                                                                                                               Q1, 2011      5 Strand, SW1                                                £55m               5.60%           £742            72,104         Freehold
Further information can be found at www.dsp-e.com.
                                                                                                                                                               Q1, 2011      Belgrave House, Buckingham Palace Road, SW1          £108.0m (50% share)        5.97%           £777           277,676        Leasehold

House of Fraser (Stores) Ltd                                                                                                                                   Q4, 2010      129 Wilton Road, SW1                                        £53.5m              5.78%           £790            67,692         Freehold
House of Fraser has been one of the UK’s premier department store groups for more than 150 years, with 61 prime locations across the UK and                    Q3, 2010      3-4 Abbey Orchard Street, SW1                               £24.0m              5.22%           £696            34,468         Freehold
Ireland. As one of the best known names on the high street the company was acquired by the Highland consortium in 2006 and today is renowned
for its designer brands and exclusive collections at affordable prices.

The company currently operates from approximately 5 million sq ft of trading space with 1 million account card customers and employees 6,500 staff            PLANNING
and 10,000 concession staff. For the year ending 30 January 2010 the company reported a turnover of £581,400,000, a pre-tax profit of £16,700,000
and net assets of £8,200,000.                                                                                                                                 The property lies within the London Borough of Westminster. We understand the property is not listed nor does it fall within a conservation area.
Further information can be found at www.houseoffraser.co.uk


Aroma Ltd                                                                                                                                                     SERVICE CHARGE
Aroma is now part of Caffe Nero having being acquired into the Group in 2002. Caffe Nero was founded in 1997 and today is the largest independent             The current service charge budget for the year ending 24 March 2012 is £1,409,300 per annum, which can be broken down as follows:
coffee retailer in the UK with over 400 stores in the UK, together with a more recent expansion into Turkey and the Middle East.
Under the Caffe Nero brand, Aroma currently trades from 15 stores in 5 UK cities.                                                                             Office      £9.44 per sq ft
For the year ending 31 May 2010, Aroma reported a turnover of £7,955,000, a pre-tax profit of £1,481,000 and net assets of £9,803,000.
                                                                                                                                                              Retail      £0.32 per sq ft
Further information can be found at www.caffenero.com
                                                                                                                                                              Service charge caps are in place on the First Secretary of State demises on the fifth and ninth floors, as well as the Chime Communications demise
                                                                                                                                                              on the sixth floor and the seventh floor. We understand there are no shortfalls on the First Secretary of State demises, however, there is a shortfall
                                                                                                                                                              payable by the landlord of £8,104 on the Chime Communications sixth floor demise. For the year ending 03/2012 there will be a small service charge
                                                                                                                                                              shortfall of £8,104.81. Further information is available upon request.
VAT
We are advised the purchase may be structured on the basis of a Transfer of a Going Concern (TOGC), so that no
VAT will be payable on the purchase price.



CAPITAL ALLOWANCES
Any unclaimed capital allowances may be available to a purchaser. Further details can be provided upon request.



PROPOSAL
Offers sought in excess of £150,000,000 (One Hundred and Fifty Million Pounds) subject to contract, reflecting a net
initial yield of 5.5% after allowing for full purchaser’s costs of 5.8% which shows a low capital value of £495 per sq ft.

The property is held in a Jersey Unit Trust, Southside Unit Trust. The Unit Trust was established in 2005, specifically to
acquire the property. There is an opportunity for a purchaser to acquire all the units in the Southside Unit Trust from
the vendor rather than a direct property acquisition for Southside Unit Trust and offers are invited on either basis.

If a purchase is pursued through the Jersey Unit Trust there will be no VAT payable on the purchase price.

Copies of the Trust documents are available on request.




FURTHER INFORMATION
For further information or to arrange an inspection please contact the following:




Mark Shipman                                                              Damian Cronk
Tel: 0207 529 5708                                                        Tel: 0207 318 5065
Email: markshipman@michaelelliott.co.uk                                   Email: damian.cronk@struttandparker.com


Dominic Rowe                                                              Antony Thesiger
Tel: 0207 529 5706                                                        Tel: 0207 318 5024
Email: dominicrowe@michaelelliott.co.uk                                   Email: antony.thesiger@struttandparker.com


Toby Larman                                                               Richard Divall
Tel: 0207 529 5715                                                        Tel: 0207 318 5029
Email: tobylarman@michaelelliott.co.uk                                    Email: richard.divall@struttandparker.com




On the instructions of Welput, Schroders and Grafton Advisors.




                                                                        GRAFTON ADVISORS




Notices relating to Property Misrepresentation and Property Misdescription Act
Strutt & Parker and Michael Elliott for themselves and for the Vendors of this property whose Agents they are, given notice that:-
•		The	particulars	are	set	out	as	a	general	outline	only	for	the	guidance	of	intending	purchases	and	do	not	constitute	part	of	an	offer	or	contract;

•		All	descriptions,	dimensions,	references	to	condition	and	necessary	permissions	for	use	and	occupation	and	their	details	are	given	in	good	faith	
  and are believed to be correct, but any intending purchasers should not rely on them as statements or representations of fact, but must satisfy
  themselves by inspection or otherwise as to the correctness of them;

•		Unless	otherwise	stated,	all	prices,	rents	and	other	charges	are	quoted	exclusive	of	Value	Added	Tax	(VAT).	Any	intending	purchasers	or	tenants	
  must satisfy themselves independently as to the incidence of VAT in respect of any transaction;

•		All	plant,	machinery,	equipment,	services	and	fixtures	&	fittings	referred	to	in	these	particulars	were	present	at	the	date	of	publication.	They	have	
  not, however, been tested and therefore, we give absolutely no warranty as to their condition or operation;

•		No	person	in	the	employment	of	Strutt	&	Parker	or	Michael	Elliott	has	any	authority	to	make	or	give	any	representations	or	warranty	whatsoever	
  in relation to this property or these particulars, nor enter into any contract on behalf of the Vendors;

•		No	responsibility	can	be	accepted	for	any	expenses	incurred	by	intending	purchasers	in	inspecting	properties	which	have	been	sold	or	withdrawn;

•		The	date	of	this	publication	is	May	2011.

				
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