800 the Boulevard Capability Green Lu1 3Ba

800 THE BOULEVARD CAPABILITY GREEN LU1 3BA

THE PREMIER M1 BUSINESS PARK

HEADQUARTERS OFFICE INVESTMENT WITH 13.7 YEARS TERM CERTAIN HEADQUARTERS OFFICE INVESTMENT WITH 13.7 YEARS TERM CERTAIN

800 THE BOULEVARD | CAPABILITY GREEN | LU1 3BA 02/03

INVESTMENT SUMMARY

• 800 The Boulevard offers a rare opportunity to acquire a headquarters office investment with long term, secure income in theUK’s best connected town for business.

• Located within the ‘Golden Triangle’ of Cambridge, Oxford and London.

• Capability Green is the premier M1 business park and is home to the UK headquarters of a number of multi-national companies due to its exceptional communications.

• Strategically positioned 1 mile from the M1, 1 mile from Luton Airport Parkway station and 2 miles from Luton Airport.

• Luton Airport Parkway station has eight trains per hour to Central London with a fastest journey time of 24 minutes.

• Luton Airport is the fastest growing major London airport and is undergoing a £110 million upgrade.

• 800 The Boulevard comprises a self-contained Grade A headquarters office building totalling 52,752 sq ft.

• 268 car parking spaces providing an excellent ratio of 1:185 sq ft.

• Freehold.

• Let to Impellam Holdings Ltd with a guarantee from Blue Arrow Ltd for 13.7 years term certain.

• Passing rent of £972,000 per annum equating to a low rate of £18.43 per sq ft overall.

• Luton’s out of town Grade A vacancy rate is currently just 1% with prime rents now at £22.00 per sq ft highlighting the reversionary potential.

• Impellam Holdings Ltd and Blue Arrow Ltd both have a D&B rating of 5A1.

• Offers are sought in excess of£15,200,000 (Fifteen Million, Two Hundred Thousand Pounds), subject to contact and exclusive of VAT.

• A purchase at this level reflects a net initial yield of 6.00% exclusive of purchaser’s costs of 6.73% and a capital value of £288 per sq ft.

THE PREMIER M1 BUSINESS PARK LUTON AIRPORT LONDON 24 mins

LUTON AIRPORT PARKWAY

800 THE BOULEVARD

19 18 13 17

16 14 15 11

12 1 4 3 2

800 THE BOULEVARD | CAPABILITY GREEN | LU1 3BA 04/05

OCCUPIERS

1. David Lloyd Leisure Centre 11. AB InBev 2. Keepmoat 12. Ernst & Young / Oracle 3. Rudolph Wild 13. AstraZeneca 4. Technicon Design 14. Kids II 5. Regus 15. Ardent / Gategroup 6. Selex ES 16. Screen 7. Handelsbanken 17. PRGX 8. Anritsu 18. Marriott M1 1 mile 9. Rexam 19. Chargemaster / Wates 10. Barclays / OAG Aviation

10 9

7 8

THE PREMIER M1 BUSINESS PARK 800 THE BOULEVARD | CAPABILITY GREEN | LU1 3BA 06/07

LUTON

Luton is the UK’s best connected town for business, located 34 • 23 million people within 2 hours reach. miles north of Central London, 42 miles south west of Cambridge • One of the largest towns in South East England with a and 58 miles east of Oxford. population of approximately 258,000.

Luton’s strategic location and exceptional communications have • One of the most successful towns in England to attract made the town a successful and established office market. A business start-ups and one of the highest national rates for number of multi-national companies have established their UK sustainable small start-up businesses. headquarters in the area including Vauxhall Motors, EasyJet and • Major improvements to local road networks include the £30 TUI Travel, whilst other high profile occupiers include AstraZeneca, million funded improvement of Junction 10 of the M1 vastly Selex ES, Oracle, Ernst & Young and Whitbread. improving traffic flow to the airport and Capability Green.

Luton has a resident population of approximately 258,000 (2011 • Located within the ‘Golden Triangle’ of Cambridge, Oxford Census) and provides retail, service and manufacturing services to and London. a wide catchment population. The town’s population is forecast to • Premier indoor shopping centre The Mall Luton attracts increase by 12% through to 2031. 21 million visitors a year.

• Home of the University of Bedfordshire, one of the largest higher education institutions in the country with over 24,000 students.

STOKE-ON-TRENT NOTTINGHAM DERBY

M6 KING’S LYNN M1 A1

Luton LEICESTER NORWICH PETERBOROUGH A6 A505 Luton M6 BIRMINGHAM Town Centre Luton Airport NORTHAMPTON CAMBRIDGE A505 IPSWICH M1 A1(M) B653 FELIXSTOWE Luton M40 MILTON Airport M11 Parkway KEYNES LUTON M5 Stansted HARWICH B4540 A1081 OXFORD M1

M25

TILBURY 800 THE BOULEVARD LONDON READING M4 City M4 CARDIFF Heathrow Stockwood Park BRISTOL Golf Centre M2 M25 M3 DOVER B653 Gatwick M20 J10

M23 B4540 M5 FOLKESTONE

HASTINGS BRIGHTON SOUTHAMPTON EASTBOURNE A1081 PORTSMOUTH M1

EXETER THE PREMIER M1 BUSINESS PARK COMMUNICATIONS

ROAD

Capability Green has excellent road links with the M1 (Junction 10) being just 1 mile to the south west. The M1 connects Luton to the M25 London orbital motorway, in turn providing access to the rest of the regional and national motorway network.

Birmingham Blackfriars RAIL 88 miles 44 mins Capability Green is well connected by rail, benefiting from proximity to two mainline stations; Luton in the town centre (2 miles north) Oxford City Thameslink and Luton Airport Parkway (1 mile north east). Both stations provide 58 miles 40 mins frequent, direct services to four Central London destinations; St Cambridge Pancras International, Farringdon, Blackfriars and City Thameslink. Farringdon 42 miles 38 mins

As part of Luton Airport’s transformation plan, rail services from Central London St Pancras International Luton Airport Parkway have significantly improved with up to eight 34 miles 24 mins trains now running to Central London every hour. These additional

services coupled with the planned new fleet of 1,100 carriages M25 (J21) Luton being rolled out this year will increase passenger capacity by 50%. 11 miles 2 mins Furthermore, plans have been put forward to extend the rail line to connect Luton Airport Parkway to the airport terminal, a journey M1 (J10) currently served by a shuttle bus. The extension would reduce 1 mile journey times to St Pancras International to just 19 minutes.

FROM LUTON AIRPORT PARKWAY

800 THE BOULEVARD | CAPABILITY GREEN | LU1 3BA 08/09

CAPABILITY GREEN

800 The Boulevard is located on Capability Green, the M1’s premier As a result of its strong transport connections, attractive working business park and one of the UK’s best connected business parks environment and globally accessible destination, Capability being 1 mile from the M1, 1 mile from Luton Airport Parkway Green has attracted a range of high profile occupiers including station and 2 miles from Luton Airport. AstraZeneca, Oracle, Ernst & Young, Regus and Selex ES who have a large 200,000 sq ft research and development facility on the park. Capability Green comprises a number of high quality headquarters buildings set in an attractive business environment with mature Capability Green is just 2 miles south of Luton town centre which landscaped areas and 24-hour security. The park extends to boasts a wealth of leisure and retail amenities including The Mall 85 acres and provides approximately 1 million sq ft of high Luton shopping centre which attracts 21 million visitors a year. The specification offices with on-site amenities including a David Lloyd park is well-served by the number 30 bus route, providing regular fitness centre, Café Satis and a Jigsaw day nursery. connections to Luton Airport Parkway and the town centre.

THE PREMIER M1 BUSINESS PARK 800 THE BOULEVARD | CAPABILITY GREEN | LU1 3BA 10/11

LUTON AIRPORT

OVERVIEW

Capability Green is only 2 miles south west of Luton Airport, the UK’s 5th largest airport. In 2015, 12.3 million passengers travelled through Luton Airport making it the busiest year in the airport’s 77 year history and the fastest growing major London airport. 20 new routes were launched from Luton Airport in 2015 and with a further 11 already planned for 2016, the airport will fly to over 100 destinations in Europe, North America, the Middle East and Africa.

Luton Airport has been hailed as an example of the UK’s ‘world class aviation infrastructure’ and is a major economic driver for London and the UK being one of Luton’s largest employers, generating around 9,400 jobs and a further 7,700 jobs through related activities.

TRANSFORMATION PLAN

Luton Airport is investing £110 million in upgrading its facilities as part of a large scale transformation plan. When complete in 2020, Luton Airport’s capacity will have increased by 50% from 12 million passengers per year to 18 million. The transformation will create an additional 10,500 jobs for the economy.

KEY FACTS

• 12 million passengers a year

• 9,400 on-airport jobs

• 7,700 jobs through related activities

• Over 100 destinations

• £110 million upgrade

THE PREMIER M1 BUSINESS PARK 800 THE BOULEVARD | CAPABILITY GREEN | LU1 3BA 12/13

THE PREMIER M1 BUSINESS PARK DESCRIPTION ACCOMMODATION

800 The Boulevard comprises a modern, self-contained Grade A The property has been measured by Pure Real Estate Services Ltd in headquarters office building constructed in 1998. The property accordance with the RICS Code of Measuring Practice (6th Edition). totals 52,752 sq ft and is arranged over ground and two upper The survey, which is assignable to the purchaser, provides the floors with a striking full height central atrium. following net internal floor areas:

Internally, the property benefits from the following high Floor Use Area (sq m) Area (sq ft) quality specification:

Basement Building Management 22.38 241 • Fully carpeted, accessible raised floors

• Suspended ceilings with recessed category II lighting Basement Storage 110.31 1,188

• 4 pipe fan coil air conditioning Ground Reception 149.78 1,612 • 2 x 10 person (800kg) passenger lifts and 1 x goods lift Ground Office 1,159.71 12,483 • Male, female and disabled WCs on each floor

• Shower facilities First Office 1,728.80 18,608 • Kitchenettes/breakout areas on each floor Second Office 1,729.81 18,620 • Brand new security control entry system (tenant improvement) Total 4,900.79 52,752

The property has also been measured in accordance with the new International Property measurement Standards (1st Edition, May 2015). A breakdown of these areas is available on request.

CAR PARKING Shower WC Atrium Lift Lift External There are a total of 268 on-site car parking spaces, the majority Lift WC of which are around the building with some undercroft spaces. WC This provides an excellent ratio of 1:185 sq ft on the office accommodation.

FIRST FLOOR

800 THE BOULEVARD | CAPABILITY GREEN | LU1 3BA 14/15

THE PREMIER M1 BUSINESS PARK SITE TENURE

The large site extends to approximately 0.99 hectares (2.44 acres). The property is held freehold.

TENANCY For illustrative purposes only The property is let in its entirety to Impellam Holdings Ltd, with 0 91 a guarantee from Blue Arrow Ltd, on a full repairing and insuring

0 lease for a term of 20 years from 1 January 2000 and expiring 95

7 72 31 December 2019.

El Sub Sta 6 72 The tenant has entered into a reversionary lease for a term 4 Pond 72

3 of 10 years commencing on 1 January 2020 and expiring on 72

0 90 30 December 2029 (13.7 years term certain). El Sub Sta

5 1 90 72

2 72 The passing rent is £972,000 per annum which equates to a low 5 72

rate of £18.43 per sq ft overall. The annual rent is subject to 800 upwards only open market rent reviews on 1 January 2020 and 1 January 2025.

The tenant has been granted a 12 month rent free period from 25 March 2016 followed by a reduced rent of £324,000 per annum from 25 March 2017 to 23 June 2017.

Pond 600 OCCUPANCY

0 45 800 The Boulevard is Impellam’s headquarters and they fully

400 occupy the building with a number of the group’s specialist

Pond businesses operating from the property.

475

Impellam have been in occupation since the property was built in 1998 and the recent completion of a reversionary lease further 0m 25m 50m 75m demonstrates their long term commitment to 800 The Boulevard.

This plan is published for the convenience of identification only and although believed to be correct is not guaranteed and it does not form any part of any contract. © Crown Copyright. All rights reserved. Licence Number LIG0074.

800 THE BOULEVARD | CAPABILITY GREEN | LU1 3BA 16/17

COVENANT PROFILE

IMPELLAM HOLDINGS LTD – TENANT BLUE ARROW LTD – GUARANTOR Company Number 00490212 Company Number 00641659

Impellam Holdings Ltd is a group company of Impellam Group Plc, Blue Arrow Ltd is an employment and recruitment agency, the second largest staffing business in the UK and sixth largest providing bespoke staffing solutions to clients across the managed service provider worldwide. Impellam provide managed hospitality, manufacturing, public service, retail, support services services and specialist staff across the UK, North America, Asia Pacific and transport sectors. Founded in 1959, Blue Arrow employ over and mainland Europe. They have over 3,100 employees across a 650 people. network of 21 market-leading brands in 220 locations worldwide. Blue Arrow are accredited with ‘Investors in People’ Gold status and Founded in 2008, Impellam provides candidates with jobs across hold a position on the Sunday Times ‘Top 100 Best Companies To all business sectors including doctors, lawyers and accountants as Work For’ in 2016. well as cleaners, security guards, manufacturing and warehouse operatives. Blue Arrow Ltd has a Dun & Bradstreet rating of 5A1 representing a minimum risk of business failure. Their most recent financial Impellam Holdings Ltd has a Dun & Bradstreet rating of 5A1 results are summarised below: representing a minimum risk of business failure. Their most recent financial results are summarised below: 2 Jan 2015 27 Dec 2013 28 Dec 2012

2 Jan 2015 27 Dec 2013 28 Dec 2012 Sales Turnover £382,276,000 £376,784,000 £397,290,000

Profit Before Taxes £363,000 £11,000 £9,744,000 Profit Before Taxes £10,677,000 £13,013,000 £10,623,000

Tangible Net Worth £65,649,000 £65,620,000 £65,661,000 Tangible Net Worth £48,260,000 £39,583,000 £30,355,000

Net Current Assets (£102,969,000) (£47,961,000) (£47,905,000) Net Current Assets £47,249,000 £39,787,000 £30,862,000 (Liabilities)

Further information can be found at www.impellam.com Further information can be found at www.bluearrow.co.uk

THE PREMIER M1 BUSINESS PARK MARKET COMMENTARY

OVERVIEW TAKE-UP & AVAILABILITY

The proximity of Luton Airport and the excellent road and rail links Total stock in the Luton office market extends to 3.3 million sq ft to Central London have made Capability Green a highly desirable with approximately 800,000 sq ft being located out of town. Take location for multi-national occupiers. up in 2015 was 32% higher than in 2014, with the out of town market dominating the figures. The majority of Luton’s high quality office stock is located out of town. The town centre has a small provision of office stock which is Out of town availability in Luton stands at 102,000 sq ft of which principally occupied by public sector bodies, notably Luton Borough circa 38,000 sq ft is under offer. Grade A availability is 46,200 sq ft Council. The out of town market is focussed around Junction 10 which reflects a vacancy rate of just 1% of the total stock. of the M1, Capability Green and to the north east of the town at Butterfield Business Park. There is only 9,200 sq ft of new build availability and no development planned in the town which will further compound A number of the town’s key office employers have links to the supply constraints and place upward pressure on rental values. aviation and travel industries including Selex ES, EasyJet, Monarch Airlines and TUI Travel. In addition, Luton has attracted a number RENTAL VALUES of major corporates including Vauxhall Motors, AstraZeneca, Headline rents on Capability Green reached £22.00 per sq ft Oracle, Ernst & Young and Whitbread. in 2015 when OAG Aviation Group took 9,000 sq ft at 1 Capability Green. This was a significant increase on previous prime rents of £19.00 per sq ft when Oracle took 11,000 sq ft at 400 Capability Green earlier in 2015. This demonstrates the upward trend in rental values and accordingly, the reversionary potential of 800 The Boulevard at £18.43 per sq ft overall. 800 THE BOULEVARD | CAPABILITY GREEN | LU1 3BA 18/19

INVESTMENT MARKET

The South East office investment market remained buoyant 800 The Boulevard offers a rare opportunity to acquire a throughout 2015 and continues to experience unprecedented headquarters office investment with 13.7 years term certain in investor appetite most notably for long term, secure income which the UK’s best connected town for business being strategically offers very attractive cash on cash returns as investors look to positioned 1 mile from the M1, 1 mile from Luton Airport Parkway capitalise on a highly liquid and competitive UK debt market. station and 2 miles from Luton Airport.

The table below highlights the key recent comparable investment transactions:

Area WAULT CV Date Address Tenant Price Yield (sq ft) (years) (psf)

Quoting 800 The Boulevard, Capability Green 52,752 Impellam Holidings Ltd 13.70 £15.2m 6.00% £288

Mar-16 GMAC House, High Wycombe 19,678 GMAC UK Plc 9.50 £6.175m 5.73% £314

Mar-16 AbbVie House, Maidenhead 55,958 AbbVie Ltd 11.50 £24.53m 5.45% £438

Feb-16 Weir House, East Molesey 9,423 Octagon Developments Ltd 15.00 £5.00m 5.48% £531

Dec-15 Horizon Building, Gloucester 51,787 Horizon Nuclear Power Services Ltd 15.00 £16.9m 5.44% £326

Dec-15 Paragon, Brentford 106,553 University of West London 9.00 £48.5m 5.50% £455

Nov-15 3 Longwalk Road, Stockley Park 108,788 Marks & Spencer Plc 11.00 £47.75m 4.29% £439

Aug-15 Velocity, Weybridge 106,400 Multi Let 12.20 £56.1m 5.70% £527

Aug-15 Leonardo, Crawley 110,454 Virgin Atlantic Ltd 16.50 £45.3m 5.30% £410

Mar-15 Flow, Staines 63,799 VMware UK Ltd 9.80 £38.15m 5.17% £598

Jan-15 2 Roundwood Avenue, Stockley Park 97,720 Gilead Sciences Europe Ltd 10.00 £46.0m 6.02% £471

THE PREMIER M1 BUSINESS PARK HEADQUARTERS OFFICE INVESTMENT WITH 13.7 YEARS TERM CERTAIN

800 THE BOULEVARD | CAPABILITY GREEN | LU1 3BA 20/21

INVESTMENT RATIONALE

• Capability Green is the premier M1 business park.

• Headline rents on Capability Green are now £22.00 per sq ft which demonstrates the reversionary potential of 800 The Boulevard at £18.43 per sq ft overall.

• Luton’s out of town Grade A vacancy rate is currently just 1% which will place upward pressure on rental values.

• Capability Green is one of the UK’s best connected parks for business being strategically positioned 1 mile from the M1, 1 mile from Luton Airport Parkway station and 2 miles from Luton Airport.

• Located within the ‘Golden Triangle’ of Cambridge, Oxford and London.

• Luton Airport is investing £110 million in upgrading its facilities as part of a large scale transformation plan.

• Impellam have demonstrated their long term commitment to 800 The Boulevard by signing a 10 year reversionary lease.

• Fully let for 13.7 years term certain – a comparatively rare product in today’s market.

• Impellam Holdings Ltd and Blue Arrow Ltd both have a D&B rating of 5A1 thereby providing a long term, secure income profile.

• Very attractive cash on cash returns.

• Headquarters office with a high quality specification and a striking full height central atrium.

• Excellent car parking ratio of 1:185 sq ft.

THE PREMIER M1 BUSINESS PARK 800 THE BOULEVARD | CAPABILITY GREEN | LU1 3BA 22/23

CAPITAL ALLOWANCES DEBT

The benefit of any unclaimed capital allowances could be made JLL DEBT ADVISORY available to a purchaser. Further information is available on request. JLL Debt Advisory provides market leading debt solutions for real estate investors. We have wide ranging expertise in senior debt and EPC mezzanine arrangement for investment and development projects. In the current highly liquid and competitive UK debt market, 800 The property has an EPC rating of C (74). The Boulevard will attract considerable interest when marketed correctly to potential lenders. Our unrivalled knowledge of over 170 active senior, mezzanine and Islamic lenders ensures we can VAT achieve the best debt terms.

The property is elected for VAT. It is intended that the transaction Even at the conservative debt terms highlighted in the table below, will be treated as a transfer of a going concern (TOGC). 800 The Boulevard can provide cash on cash returns to an investor in excess of 8.50% per annum. Margin pricing and LTV assumptions may vary depending on the sponsor, their track record and debt PROPOSAL aspirations, all of which could drive even higher cash on cash returns.

CASH ON CASH RETURNS We are instructed to seek offers in excess of£15,200,000 (Fifteen Million, Two Hundred Thousand Pounds), subject to contract and Based on the passing rent and quoting price, this investment has exclusive of VAT, for our client’s freehold interest. the potential to generate the following cash on cash returns:

A purchase at this level reflects anet initial yield of 6.00% LTV exclusive of purchaser’s costs of 6.73% and a capital value of £288 per sq ft. 50% 55% 60% Interest Interest Interest Only Only Only

DATA ROOM 3.25% 8.42% 8.92% 9.53% All in Interest Costs Access to the data room is available on request. (assuming margin 3.50% 8.20% 8.66% 9.21% over 5 year swap) 3.75% 7.98% 8.39% 8.89%

THE PREMIER M1 BUSINESS PARK 800 THE BOULEVARD CAPABILITY GREEN LU1 3BA

CONTACTS

To arrange a viewing, or to To discuss funding options obtain access to the data with the JLL Debt Advisory room, please contact: team, please contact:

Noel Lander Tim Wilmer 020 7087 5336 020 7087 5392 07931 371 825 07817 103 806 [email protected] [email protected]

Laura Houghton 020 7852 4959 07738 625 165 [email protected]

Disclaimer Jones Lang LaSalle Limited (JLL) for themselves and for the vendors or lessors of this property whose agents they are, give notice that:- a. the particulars are a general outline only for guidance and do not constitute, nor constitute part of, an offer or contract; b. all descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are believed to be correct, but any intending purchasers, tenants or third parties should not rely on them as statements or representations of fact but satisfy themselves that they are correct by inspection or otherwise; c. no person in the employment of JLL has any authority to make or give any representation or warranty whatever in relation to the property; d. the photographs show only parts of the property as they appeared when taken; e. unless otherwise stated, all prices are quoted exclusive of VAT, if applicable; f. reference to any mechanical or electrical equipment or other facilities at the property shall not constitute a representation (unless otherwise stated) as to its state or condition or that it is capable of fulfilling its intended function; © 2016 Jones Lang LaSalle IP, Inc. All rights reserved.