Centennial Park Elstree Wd6 3Tj Prime Greater London Investment Opportunity M25 Phase 400 5 Min Phase 200 Phase 500

PHASE 300 CENTENNIAL PARK ELSTREE WD6 3TJ PRIME GREATER LONDON INVESTMENT OPPORTUNITY M25 PHASE 400 5 MIN PHASE 200 PHASE 500

PHASE 100

PHASE 600/700

BOREHAMWOOD 2 MIN M1 A41

NORTH CIRCULAR 1O MIN CENTRAL LONDON 30 MIN A5

J4 A41 CENTRAL LONDON 30 MIN • A rare opportunity to acquire a strategically • Fully let to 9 tenants with an AWULT of 4.20 years INVESTMENT located prime multi let industrial investment to expiry and 2.90 years to break with strong in a core London location. occupancy history.

SUMMARY • One of the most accessible industrial parks to the • Passing rent of £1,432,845 per annum, reflecting motorway network, adjacent to the M1 Motorway only £12.77 psf with a number of active management (Junction 4) and within a 5 minute drive time of the M25 initiatives to drive the rental tone and improve the (Junction 21). unexpired term.

• The estate adjoins the A41 / A5 providing direct access into • The tenants have invested significant capital Central London 12 miles to the south. expenditure demonstrating strong commitment synonymous with R&D, bio-tech and IT occupiers. • Centennial Park, constructed in 6 phases, comprises a total of 535,000 sq ft built stock in 67 buildings and a 120 bed • Since 2009 the estate has had 20 leasing events with De Vere Hotel with superb amenities. a retention rate of close to 100%. The property has been fully let since 2014 and is now optimally positioned to • Phase 300, one of the most modern phases, was capture record prime rents over upcoming lease events. constructed in 2002 and provides versatile production, storage and business space. • 97% occupancy (by area) on the industrial core across the wider park with only 1 available unit. • 12 high quality high-office content warehouse units totalling 112,214 sq ft with unit sizes ranging from 4,780 sq ft to 16,115 sq ft.

• A 6.85 acre site, providing a low site density of 37% set in a safe, secure and high quality landscaped environment. Attractive car parking ratio of 1:402 sq ft with separate yard / loading areas and overall excellent site circulation.

We are instructed to seek offers in excess of £22,400,000 (Twenty Two Million Four Hundred Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level would reflect a Net Initial Yield of 6.00% and a capital value of £200 psf assuming normal purchaser’s costs of 6.75%.

3 The park occupies one of the strongest Luton connected locations in Greater London.

M1 A1(M)

IN LESS THAN 30 MINS 21 22

20 6 Borhamwood 23 M25 CENTENNIAL PARK 19 ADJACENT TO A411 Barnet 5 Elstree & Watford Borehamwood 4 M1 M25 Stanmore A406 0.5 MILES OF DIRECT M1 FRONTAGE Edgware A5 Harrow M40 A1 Wembley A41 TO THE M25 (J21) A40 A406

A40 M4 A4 Paddington

M4 A4 WITHIN 2 MILES Heathrow

TO LONDON HEATHROW AND LONDON LUTON AIRPORTS

4 J21A J6A

G 5 R AD E RO T E T N E L T S D H T A E R R O E

B E O T L D

S W T NUE NO R VE A A E A R LD T E RK T E L T A N I P H N A1S HA W M G S A E R L S O S P A - I T T T D Y E R T R B L D E N E LSTREE E W T A B A E AY U T E O S V E N R H N E R Y U H M LA E A N IL A E B H L London Elstree N F E IE D L Aerodrome AL D

L A Borehamwood N E A5 FU R AD Z RO EH L A41 Elstree & I I M L T LU Borehamwood L T R AL O L A COMMUNICATIONS E D

B U LONDO S N RO H AD E HIG Y H S L M1 T A N

Bushey E S P Country A BY ROAD BY RUNDERGROUND  Club R To A41 O Junction 21 W A1 2.5 miles Two UndergroundS stations are situated HE M25 M1 (Junction 5) 4 miles within 2 miles ofR theNE property. Fastest

M25 (Junction 21) 6 miles journey times are: H 4

A406 North Circular 6.5 miles IG Y

Stanmore to Green Park H 33 mins A M25 (Junction 23) 12 miles R O CENTENNIAL PARK W Edgware to Leicester Square 34A mins Central London 12 miles D Mill Hill T

Edgware to Bank 49 mins E

Golf Club N

B S TA NM Hartsbourne O RE Country Club Stanmore & Edgwarebury H Edgware BY RAIL BY AIR IL Park L Golf Centre A5 Elstree & Borehamwood mainline railway Heathrow International Airport and Bentley Priory A41 station is situated within 1.5 miles of the London Luton Airport can both be Open Space Stanmore E ROAD A D WAR Country Park RO E DG property. reached within a 30 minute drive time. DON LON London Kings Cross 38 mins S T Edgware O Stanmore N ALE LAN Stanmore E H E G R O M1 VE

5 CENTENNIAL PARK

ACRES

CENTENNIAL AVENUE

Centennial Court

BUILDINGS A41

M1 Not to scale O ce Industrial Retail & Amenity OCCUPANCY

6 THE PARK

• Centennial Park is one of London’s leading • Availability on the park is at its lowest level on flexible warehouse, storage, production and office record with 97% occupancy (by area) with only parks comprising circa 65 acres attracting an one unit at Phase 400 available for sale or to let. established business community of International • Take up has been constrained due to the lack of and London based occupiers. available stock with the most recent letting at the • Four main phases of high office content industrial park in 2015. Average standard industrial rents in development have been completed since 1998 with London have increased circa 15% over the same approximately 420,000 sq ft of built stock across time period. The Park is now optimally positioned 49 buildings. to capture record prime rents over upcoming leases events. • 21 of these buildings (circa 78,000 sq ft) have been sold off to owner occupiers with Phase 400 built as a freehold-for-sale scheme.

• There is excellent diversity of unit sizes across the park which can accommodate all occupational requirements below 35,000 sq ft. INDUSTRIAL BUILDINGS 3% 21% 16% PARK PERKS

• Superb amenities including a 120 bed DeVere FLOOR SPACE 4 star hotel with restaurant, bar, gym and spa BY UNIT SIZE SQ FT INDUSTRIAL STOCK facilities with 25-metre pool, a Starbucks and 19% medical centre. 22% • 24/7 on-site security, a key attribute for tenant retention. 19% • High fibre connectivity. <2,500 2,500 –5,000 5,000 – 10,000 10,000 – 15,000 15,000– 20,000 > 20,000 ON SITE SECURITY

7 DESCRIPTION SITE

The property was constructed in 2002 and provides high quality The total site area extends to 6.85 acres (2.77 hectares), providing versatile production, storage and business space. The 12 units are a very low site density of 37% set in a safe, secure and high quality arranged in 3 semi-detached blocks and 2 terraces totalling 112,214 sq landscaped environment. ft with unit sizes ranging from 4,780 sq ft to 16,115 sq ft. Phase 300 benefits from an attractive car parking ratio of 1:402 sq ft • Steel frame construction with profiled metal clad (279 car parking spaces) with separate yard / loading areas and overall and brick elevations. excellent site circulation.

• 6.0m minimum eaves height.

• Full lighting installation, including 10% translucent roof lights.

All the units benefit from a high specification office content. 330 320 315 310

• Fully height glazing 340 solar protection

• Full access raised floors WAREHOUSE • Suspended ceilings 350 • Category 2 lighting N

• VRV comfort cooling 360 to units 310 - 380

• Gas-fired central heating to units 385 - 395 OFFICE

• Showers and kitchenette 395 390 385 380 370

Plan not to scale, for identification purposes only. 8 TENANCIES ACCOMMODATION

• Let to 9 tenants on 14 effective FRI leases. The estate provides the following accomodation

• Passing rent of £1,432,845 pa, reflecting a modest £12.77 psf. UNIT GIA WAREHOUSE ANCILLARY OFFICE CAR PARKING (SQ FT) ACCOMMODATION ACCOMMODATION ACCOMMODATION SPACES • AWULT of 4.20 years to expiry and 2.90 years to break. (SQ FT) (SQ FT) (SQ FT) • 5 lease re-gears / reversionary leases since 2011. 310 6,911 3,145 814 2,951 19 315 6,868 3,262 581 3,025 16 • Since 2009 the estate has had 14 break options with a 100% retention rate. 320 6,911 3,145 814 2,951 19 330 12,090 6,652 1,002 4,436 29 • A number of active management initiatives to drive the rental tone 340 12,089 6,652 1,001 4,436 29 and improve the unexpired term. 350 16,083 8,921 1,210 5,952 41 360 16,115 8,953 1,210 5,952 41 370 10,291 4,852 1,004 4,436 25 380 10,388 4,852 1,004 4,532 24 TENURE 385 4,844 2,358 0 2,486 12 390 4,780 2,358 0 2,422 12 395 4,844 2,358 0 2,486 12 The property is held Long Leasehold (on a 999 year lease at £100 pa) TOTAL 112,214 57,509 8,640 46,065 279 expiring Dec 3004 with a share in the estate management company.

The estate management company has the right to purchase the freehold of the estate.

9 TENANCY SCHEDULE

UNIT TENANT GIA PASSING RENT LEASE NEXT LEASE EFFECTIVE BREAK INSIDE COMMENTS (SQ FT) RENT (PSF) START REVIEW EXPIRY BREAK TYPE ACT

RMS Innovations T - 6 months Unit 310 6,911 £96,620 £13.98 20/8/2008 20/08/2018 19/08/2023 08/20/2018 Y £53,871.01 rent deposit held. August 2013 break not exercised. (UK) Ltd notice

Unit 315 FF Entel UK Ltd 1,840 £20,000 £10.87 22/7/2010 20/07/2019 N July 2014 break not exercised.

Unit 315 GF Entel UK Ltd 5,028 £68,048 £13.53 21/07/2009 20/07/2019 Y July 2014 break not exercised.

Unit 320 Entel UK Ltd 6,911 £88,452 £12.80 21/07/2009 20/07/2019 Y July 2014 break not exercised.

Fujitsu General Tenant has been in occupation since 2008. Lease regear from Unit 330 FF 2,719 £36,000 £13.24 04/01/2013 03/01/2018 N (UK) Ltd Co 04/01/2013 with 6 months rent free.

Tenant has been in occupation since 2006. February 2011 break not T - 6 months exercised. Lease regear from 02/02/2016 with 3 months rent free, Unit 330 GF Secomak Ltd 9,371 £115,000 £12.27 06/02/2016 06/02/2021 05/02/2026 02/06/2021 Y notice rent increased from £107,200 pa (£11.43 psf) to £115,000 pa (£12.27 psf).

£79,763.49 rent deposit held. February 2011 break not exercised. T - 6 months Unit 340 Sensornet Ltd 12,089 £168,550 £13.94 02/02/2006 01/02/2026 02/02/2021 Y Lease regear from 02/02/2016 with no rent free, rent increased notice from £156,740 pa (£12.97 psf) to £168,550 pa (£13.94 psf).

Unit 350 Apatech Ltd 16,083 £195,000 £12.12 30/05/2008 07/05/2018 13/12/2019 Y December 2014 break not exercised.

Unit 360 Apatech Ltd 16,115 £195,000 £12.10 07/05/2008 07/05/2018 13/12/2019 Y December 2014 break not exercised.

Unit 370 Apatech Ltd 10,291 £133,325 £12.95 13/12/2004 12/12/2019 Y £70,929.60 rent deposit held. December 2014 break not exercised.

Masters August 2010 break not exercised. Reversionary lease from Unit 380 10,388 £130,650 £12.50 24/08/2005 24/08/2015 23/08/2020 Y Pharmaceuticals Ltd 24/08/2015 - 23/08/2020.

Unit 385 Hasselblad (UK) Ltd 4,844 £68,500 £14.14 08/07/2003 07/07/2018 Y

Licensed Carriage £32,398.56 rent deposit held. Reversionary lease from 25/07/2016 Unit 390 4,780 £58,850 £12.31 25/07/2006 23/07/2019 Y Hire ltd - 23/07/2019.

Licensed Carriage Unit 395 4,844 £58,850 £12.09 24/07/2014 23/07/2019 N Hire ltd

112,214 £1,432,845 £12.77 COVENANT INFORMATION 12%

OF THE SECURED INCOME IS DERIVED FROM TENANTS RATED BY CREDITSAFE % SECURED INCOME BY RISK AS REPRESENTING “VERY LOW” OR 32% OF BUSINESS “LOW” RISK OF BUSINESS FAILURE. FAILURE 56%

UNIT TENANT CREDITSAFE RATING % INCOME BY COMMENT TENANT

310 RMS Innovations Very Low 74 7% Regenerative medicine manufacturers to aid damaged tissue or Very Low Low Moderate UK Ltd organs to repair itself. 71 – 100 51 – 70 30 – 50 315 - 320 Entel UK Ltd Low 65 12% Telecommunications company. 330 FF Fujitsu General Low 68 3% Manufacture of electrical equipment. UK Ltd Co 330 GF Secomak Ltd Low 62 8% Producers of gas boosters to provide sufficient gas pressure to operate industrial burners. 340 Sensornet Ltd Moderate 32 12% Manufacturers of fibre optics. 350 - 370 Apatech Ltd Very Low 79 36% Manufacturers of chemical products. 380 Masters Low 69 9% Manufacture of pharmaceutical preparations. Pharmaceuticals Ltd 385 Hasselblad UK Ltd Very Low 87 5% Manufacturer of cameras, photographic equipment and image scanners. 390 - 395 Licensed Carriage Very Low 89 8% Car hire. Hire Ltd

EXCELLENT RENTAL PAID ON OR PAYMENT HISTORY. WITHIN 7 DAYS OVER THE LAST OF THE RENT TWO YEARS… QUARTER DATE

11 ASSET MANAGEMENT INITIATIVES

There are a number of active management initiatives to drive the rental tone and improve the unexpired term:

UNIT 310 (7% of the income) – Tenant looking to assign, potential to secure new lease, remove break and increase rent with new occupier. Passing rent is 6% discount to ERV.

UNITS 315/320 (12% of the income) – In discussions for a new 5 year lease from July 2019. Passing rent is 9% discount to ERV.

UNIT 330 FF (3% of the income) {Insert graph} - In discussions for a new 5 year lease from Jan 2018.

UNIT 370 (11% of the income) – Tenant looking to vacate having expanded and then consolidated within Units 350/360. Once lease extension agreed at 350/360, agree surrender, refurbish and re-let at new rental tone for the estate. Passing rent is 13% discount to ERV.

UNIT 380 (9% of the income) – Tenant needs more space and potential to expand into Unit 370. Passing rent is 14% discount to ERV.

UNIT 385 (5% of the income) – Tenant looking to vacate as the unit is too big. The lease expires in July 2018 so option to consider a joint marketing campaign and re-let at new rental tone for the estate. Passing rent is 4% discount to ERV.

UNITS 390/395 (8% of the income) – In discussions for a new 5 year lease from July 2019. Passing rent is 17% discount to ERV.

Based on an ERV of £15.00 psf

12 OCCUPATIONAL MARKET

The modern technology and healthcare markets The M4 and M3 corridor is also witnessing significant CENTENNIAL PARK are continually evolving with less demand for take up in this market with very little available warehouses to function as traditional storage competing stock. facilities. Occupiers are seeking a cost-effective solution with the ability to incorporate maximum Winnersh Triangle, Reading, a SEGRO development, CROXLEY GREEN, WATFORD flexibility between industrial, office, R&D and storage provides a similar business environment to functions. Occupiers are increasingly contracting out Centennial Park. The industrial core, predominantly their distribution arm to a third party provider. built in the early 1990’s, provides 28 units totalling 705,000 sq ft with typical office contents ranging WINNERSH TRIANGLE, READING Centennial Park is ideally suited to meet the needs between 40 – 60%. The occupancy level is 96% (by and expectations of any modern technology company area) with only 2 vacant units. Terms are reportedly being in close proximity to skilled labour pool out on one of the units with quoting rents of £13 psf. (and universities), excellent communications and connectivity and sitting within an environment of It is clear with the low void rate at Centennial Park HITECH FRIMLEY like-minded occupiers where there is an element and Croxley Green and along the M3/M4 corridor of cross fertilisation. this type of high office content product is continually in demand. Developers have been embracing Despite these favourable market dynamics in the this evolution and for example, we have seen the North West quadrant of London, there are very few speculative development of HiTECH at Frimley high office content schemes in the wider area and this Business Park. The development provides 6 units lack of competition has resulted in excellent retention with unit sizes ranging from 6,900 sq ft to 12,850 rates at Centennial Park. Similarly, there are no voids sq ft. One unit has already been pre-let at £14 psf at Croxley Green in Watford which comprises 25 high with a further 2 units under offer. office content units (circa 189,000 sq ft) providing further proof of the strength of the market.

13 KEY LEASING TRANSACTIONS

DATE ADDRESS TENANT SIZE (SQ FT) TERM RENT COMMENT (BREAK) (PER SQ FT) Watford Nov-16 4.8 HiTech, Frimley Business Deepwater 6,721 sq ft 10 years £14.00 psf Speculatively £15.00 Park, Frimley, GU16 7SG (50%) (5 years) developed M25 M40 PHASE 300 Aug-16 Winnersh Triangle, Reading, City Sprint 7,885 sq ft 6 years £12.50 psf 1990s build CENTENNIAL PARK RG41 5TS (50%) (3 years) £12.77 16 Mar-16 Southwood Business Park, Aquability 12,700 sq ft 5 years £13.46 psf 5 year Farnborough, GU14 0NR (UK) Ltd (42%) reversionary lease. 1980s build Slough Wapping Jun-16 Unit 54 Eskdale Rd, City Sprint 7,626 sq ft 5 years £12.50 psf Modern £14.25 £14.25 Wokingham, RG41 5TU (45%) hybrid unit M4 15  Heathrow INVESTMENT MARKET Reading The UK industrial investment market continues to remain in favour £15.00 amongst investors particularly for estates within the Greater London Wokingham Bromley 10 region. Investors are drawn towards the compelling fundamentals of a £12.50 12 Chessington £15.85 strong occupational market with very low availability rates, good levels £12.50 of demand, rental growth and relatively low speculative development. M3 Recent comparable transactions include: 3 M25

Frimley DATE ADDRESS AREA AWULT (YRS) PRICE NIY CV (PER SQ FT) £14.00 Jan-17 Units A-F, Reading Approach, Reading, 81,584 13.7 £13.1m 4.85% £161 Farnborough RG2 0EE £14.00 Jan-17 Perth Trading Estate, Slough, SL1 4XX 131,946 4.7 £19.05m 5.04% £144

Dec-16 Elstree Trade Park, Borehamwood 84,285 11.4 £23.15m 4.43% £275

Dec-16 Egham Business Park, Egham, TW20 8RJ 108,892 13.8 £30.55m 4.66% £281 (50% pre-let)

Sept-16 Clayton Business Centre, Hayes, UB3 1RT 35,667 12.2 £7.5m 4.65% £210

14 SERVICE CHARGE FURTHER INFORMATION

There are 2 elements which comprise the total service charge, an estate Should you require further information, access to the charge and a phase charge both of which are apportioned by area. data room or wish to view the property, please contact: Estate service charge of £0.64 per sq ft. Phase service charge of £0.36 per sq ft. SAM FAIRBAIRN T +44 (0)207 087 5382 PLANNING M +44 (0)7971 691492 E [email protected] The units have planning for uses falling within B1 (Business), B2 (General Industrial) and B8 (Warehousing & Storage). WILLIAM HUGHES T +44 (0)207 087 5380 VAT M +44 (0)7703 234294 E [email protected] The property is elected for VAT.

RICHARD GALE DATA ROOM T +44 (0)207 087 5572 Access to the data room can be provided on request. M +44 (0)7527 388024 E [email protected] PROPOSAL

EPC

EPCs are available on the data room.

© Crown Copyright 2017. All rights reserved. Promap licence number 100020449. Jones Lang LaSalle licence number 100017659. 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.

Disclaimer - JLL for themselves and for the vendors or lessors of this property whose agents they are, give notice that:- a. the particulars are set out as 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. Any images may be computer generated. Any photographs show only certain parts of the property as they appeared at the time they were taken. For properties in Scotland: e. This correspondence is expressly subject to completion of formal legal missives in accordance with Scots Law. Designed and produced by Inhabit Agency February 2017. www.inhabitagency.com