Imperial Place: Maxwell Road: : WD6 1JN Imperial Place: Maxwell Road: Borehamwood

Investment Summary:

• Imperial Place is a dominant urban office campus • Total current rental income of £4,266,707 pa, located within Borehamwood town centre. equating to a low average of £19.35 psf, approximately 25% below the proven reversion of £25.00 psf on • The property benefits fromoutstanding multi- un-refurbished space. Proposal: modal connectivity being within 1 mile of & A unique opportunity Borehamwood station, 3 miles from the M25, M1 and •  One of the lowest office rents inside the M25 with 76% A1(M) and only 10 miles from Central . of the current contracted income below £20.00 psf. • We are instructed to seek offers in • Surrounded by regeneration with The Elstree Way • The campus is highly reversionary to at least to acquire one excess of £60,000,000 (Sixty Million Corridor allocated to provide 1,500 new homes £5,200,000 pa, equating to £23.58 psf. with 592 units currently under construction across Pounds) subject to contract and • Several asset management opportunities to drive rents of ’s 4 large sites. exclusive of VAT for our client’s freehold forward with £1,450,000 of contracted income up for • Borehamwood has one of the highest office to review in the next 2 years. interest. This equates to a low capital residential conversion rates in the UK with 27% of total most dominant value of only £272 psf. • The asset is not subject to any Article 4 restrictions and office stock lost to residential uses since 2013. therefore has medium term potential for conversion to • A purchase at this level reflects a6.99% • Imperial Place comprises 4 highly prominent grade A residential uses. town centre office net initial yield and a reversionary yield offices with an on-site café totalling 220,541 sq ft. • Unique reversionary position where vacant possession of 8.51% assuming sale of the special •  Highly secure income from 18 tenants with 92% of the value exceeds the current investment value. campuses purchase vehicle. annual income derived from companies considered at • Large 6.58 acre (2.66 hectares) freehold site. minimum risk of business failure. • 884 car parking spaces provide an excellent town • Average unexpired lease term of 3.4 years to break centre car parking ratio of 1:249 sq ft. options and 6.2 years to expiries. • Tenants include: Just East, Signet Trading, Pizza Hut, Buyagift, Taylor Wimpey, Alstrom Transport, JBS Global, Dorel and Regus. Imperial Place: Maxwell Road: Borehamwood

Imperial Place Campus: Imperial Place: Maxwell Road: Borehamwood

Campus Summary:

DOMINANT OFFICE EXCEPTIONAL CONNECTIVITY SURROUNDED BY EXCELLENT OCCUPATIONAL SCHEME REGENERATION HISTORY 3 miles from the M25, M1 and A1(M), Equivalent to 19% of 10 miles from Central London and Elstree Way is the subject of a 10 leasing deals in the last 2 years Borehamwood’s total regular rail services from Elstree & residential led redevelopment totalling c.60,000 sq ft. office stock. Borehamwood Station. including the provision of 1,500 new homes. £

£25 per sq ft 4.5 years

SECURE INCOME REVERSION UNDERWRITTEN BY RESIDENTIAL 92% of the contracted income Epoq Legal under offer to take is derived from tenants 3,939 sq ft of un-refurbished Vacant possession values in the considered at minimum risk of space at £25.00 psf. surrounding area higher than the business failure. 27% £ £ current investment value. £

3.4 yrs

CAPTURING GROWTH ATTRACTIVE PROFILE OUTSTANDING AMENITY DIMINISHING LOCAL OFFICE SUPPLY £1,450,000 of contracted income up for Guaranteed income for a minimum A large on-site café complements surrounding review in the next 2 years. term of 3.4 years to break and 6.2 years amenity including Ibis Hotel, The Venue Health Over 27% of Borehamwood’s total office supply is to expiry. Club, , a large Extra and subject to conversion to residential. Borehamwood Shopping Park. A diverse and well serviced business environment with excellent connectivity, secure income profile and significant potential for further rental growth Imperial Place: Maxwell Road: Borehamwood

Income Analysis: Capturing the Reversion:

Permitted development rights have displaced tenants Imperial Place is uniquely positioned to exploit recent from all around North London. Many of these tenants growth with over £1,450,000 of the contracted income historically occupied older buildings with lower up for review or renewal in the next 2 years at an average LOWER THAN AVERAGE RISK GREATER THAN AVERAGE RISK occupational costs. current passing rent of £18.62 psf.

• The quality of tenants Imperial Place offers some of the lowest occupational in occupation at costs within the M25 and has benefitted from the Imperial Place is migration of tenants displaced by Permitted Development. exceptional with However, with the Council now actively encouraging 92% of the annual Permitted Development within the town, availability is now HIGHLY SECURE income derived from at 3% and starting to run out. This combination means that INCOME STREAMS MINIMUM RISK tenants considered the Borehamwood office market has ideal characteristics at minimum risk of for strong, sustained rental growth. business failure (Dun & Bradstreet).

• 76% of the current contracted income is below £20.00 psf.

• 34% of the current contracted income is up for review over the next 2 years.

• 78% of the current contracted income is up for review over the next 5 years.

9% OTHER • The passing rents and leasing profile offer exceptional potential to capture existing and future rental growth. 18% JUST EAT 2% ARTSANA UK

4% DOREL UK • Imperial Place has a highly diverse and 5% TAYLOR WIMPEY UK well balanced income profile with only 2 INCOME FOR REVIEW AND RENEWAL 5% SIMARC 16% SIGNET TRADING tenants paying more DIVERSIFIED RISK than 10% of total 6% U/O BUYAGIFT PROFILE income. £1,800,000 • The top 9 tenants 6% PIZZA HUT UK account for 81% of the £1,600,000 9% PARTNERSHIPS IN CARE total income. 6% REGUS £1,400,000

7% AFFINITY SUTTON HOMES 7% ALSTOM TRANSPORT £1,200,000

£1,000,000

£800,000 10+ YEARS £600,000 • Only 22% of the contracted income has £400,000 3-5 YEARS expiries within 5 years. £200,000 • The majority of INCOME TO lease expiries (66%) £0 EXPIRY occur between 5 and < 1 year 1-2 years 2-3 years 3-5 years < 5-10 years 10 years. 5-10 YEARS • 12% of expiries are over Passing Rent Current ERV 10 years away. Imperial Place: Maxwell Road: Borehamwood

Location: Demographics: Situation:

Borehamwood is located in the London Borough of has an urban population of approximately Imperial Place occupies a highly prominent site fronting Borehamwood Shopping Park is a 10 minute walk and Hertsmere and occupies a strategic inner M25 location 103,500. Elstree Way in the heart of Borehamwood town centre. includes national brands such as M&S, Debenhams, 11 miles north west of Central London. The town The location means that as well as the on-site café, , WH Smiths and Next as well as restaurants The borough is affluent, with gross average earnings benefits from exceptional connectivity and is located occupiers benefit from a wealth of amenities. The Venue including Prezzo, Frankie & Benny’s and MOD Pizza. 6% above the national average and a high percentage within 3 miles of the A1(M), M1 and M25, providing Health Club and Ibis Hotel are within a 5 minute walk Road also features a number of familiar national of workers occupying skilled professional roles. exceptional access to Central London and the wider and provide access to a large fitness club with dance retailers such as Santander, Halifax, Nando’s, Café Nero, national motorway network. The quality of the local labour pool in Hertsmere studio and 25 metre pool, as well as 122 guest rooms Subway and McDonalds. Other town centre amenities and breadth of professionals across all industries and conferencing facilities. A large 24 hour Tesco Extra within easy walking distance include The Ark Theatre Borehamwood is situated in close proximity to major has attracted an established base of global and is also located within a 5 minute walk, providing a local and The Reel, a 4 screen cinema. international airports including (21 miles) national occupiers. pharmacy, opticians and petrol station. and Heathrow (33 miles) offering national and international flights.

LOCAL AMENITIES

1 Virgin Active 2 Reel Cinema 3 The Ark Theatre 4 Tesco (24 Hr) 5 Costa Coffee

The Venue 6 Ibis Hotel 7 8 Premier Inn 9 Travelodge 10 Holiday Inn (health & fitness)

A421 A10

SUDBURY MILTON A505 Brook Road 7 KEYNES 6 To A1(M) & M25 A421 M11 Eldon Avenue A 5135 Els tre M1 e W A10 ay 9 Maxwell Road 8 A120 8 A1(M) A130 1 A418 A12 9 A1 7 3 Car Park 4 5 Borehamwood 2 Car Park 10 M11 A414 Shopping Park 4 A414 3 Car Par A414 8 23 4 A1 king A41 21 A130 27 A5378 Shenley Road1 2 ROWLEY A10 LA M40 N A413 E M1 A406 A404 16 To M1 & London A40 Elstree & A13 Borehamwood Station M4 15 M4 M25 A2

A406 M2 ROAD RAIL AIR A33 A3 A23 M25 M20 Imperial Place boasts one of the Elstree & Borehamwood Railway Luton Airport is located 21 miles M3 A24 A22 best car parking ratios in North Station is situated within a 10 north of the subject property and M26 London at 1:249 sq ft and is minute walk and provides direct is serviced by flights to major

conveniently located 1 mile from the access to Central London via City European destinations under low 7 A1(M) and 3 miles from Junction with a fastest journey cost operators such as Ryanair, 4 of the M1 and Junction 23 of the time of 24 minutes into London EasyJet and Wizz Air. Heathrow A31 M23 A21 M25 respectively, providing access St Pancras and 27 minutes to is 22 miles south west offering an A229 to Central London and the UK’s Farringdon with an average of 96 even wider range of national and wider national motorway network. journeys per day. international flights. A26 A3 A24 11 A22 A1(M) 1 mile St Pancras International 23 mins Luton Airport 24 miles M25 (Junction 23) 3 miles Luton Airport 27 mins Heathrow Airport 32 miles

A272 M1 3 miles City Thameslink 31 mins Stansted Airport 36 miles St Pancras International 13 miles Circus 38 mins

Source: www.theaa.com Source: www.nationalrail.co.uk Source: www.theaa.com

Maps not to scale, indicative only M1

M1 To M25 Junction 21

To Central London

Borehamwood Shopping Park Marks & Spencer, Debenhams, Frankie & Benny’s, Prezzo & Boots

Elstree & Borehamwood

Lidl

Reel Cinema BBC Elstree Studios SHENLEY ROAD

Borehamwood F.C.

Tesco Extra

Elstree Film Studios SHENLEY ROAD

Hotel Ibis London

The Venue Leisure Centre

ELSTREE WAY

ELSTREE WAY

To A1(M) & M25 Junction 23 Imperial Place: Maxwell Road: Borehamwood

Campus Overview:

SITE

The site extends to approximately 6.58 acres (2.66 hectares). IP 3: IP 1: 38,576 sq ft TENURE 36,091 sq ft Pizza Hut, JBS Global, The property is held Freehold under title number Borehamwood BakerSignet Court Trading Alstrom Transport, Artsana and Police Station HD440136. UK Addiction Treatment

ESTATE CHARGE A5135 Elstree Way

Estate and Service Charges are fully recoverable on all occupational leases and not subject to any caps. The Estate Charge for the year ending 31 December 2017 is £344,471 pa which reflects £1.56 psf. Fire & Ambulance Station

SERVICE CHARGE

The schedule below provides details of service charge budgets for each building for the year ending CAR PARK 2 31 December 2017:

Scheme Size SC (£psf) Total (pa)

IP 1: 38,576 £6.44 £248,600

IP 2: 50,305 £5.52 £277,803

IP 3:* FRI (Lease) Elstree CAR PARK 1 Studios IP 4: 95,569 £6.22 £594,000 Shenley Road

Total 184,450 £6.07 £1,120,403

* IP 3 is single let on full repairing and insuring terms. Further details are available upon request. The Maxwell Building

IP 2: IP 4: 50,305 sq ft 95,569 sq ft Large 6.58 acre Evolve Analytics, Pierre Fabre, Regus, Just Eat.co.uk, Dorel, Alternative Bridging Company, Buyagift, Affinity Sutton Taylor Wimpey, Just Eat.co.uk and Homes, Simarc Property (2.66 hectares) Partnerships In Care. Freehold site

Site plan not to scale, indicative only Imperial Place: Maxwell Road: Borehamwood

Tenancy Schedule:

NIA Rent Rent ERV ERV Building Part Tenant Start Review Break Expiry Comments (sq ft) (pa) (psf) (pa) (psf)

Ground Pizza Hut (UK) Ltd 10,369 24/06/1993 24/06/2018 - 23/06/2023 £186,192 £17.96 £259,225 £25.00

Part First UK Addiction Treatment Ltd 1,375 15/05/2017 - - 05/10/2021 £32,500 £23.64 £34,375 £25.00

Part First Alstom Transport UK Ltd 4,636 06/10/2016 06/10/2021 05/10/2021 05/10/2026 £98,800 £21.31 £115,900 £25.00

Imperial Part First Pizza Hut (UK) Ltd 3,274 24/06/2013 24/06/2018 24/06/2020 23/06/2023 £57,924 £17.69 £81,850 £25.00

Place 1: Part Second JBS Global (UK) Ltd 3,682 18/07/2015 18/07/2020 18/07/2020 17/07/2025 £80,146 £21.77 £92,050 £25.00

Part Second Artsana UK Ltd 5,612 22/08/2014 22/08/2020 22/08/2019 21/08/2024 £105,691 £18.83 £140,300 £25.00

Third Alstom Transport UK Ltd 9,628 06/10/2016 06/10/2021 05/10/2021 05/10/2026 £215,200 £22.35 £240,700 £25.00

Part Ground Evolve Analytics Ltd 2,457 20/12/2013 20/12/2018 20/12/2018 19/12/2023 £36,405 £14.82 £61,425 £25.00

Part Ground Pierre Fabre Ltd 3,555 07/01/2014 07/01/2019 07/01/2019 06/01/2024 £64,880 £18.25 £88,875 £25.00

Part Ground Alternative Bridging Corporation Ltd 3,173 23/10/2015 23/10/2020 23/10/2020 22/10/2025 £68,500 £21.59 £79,325 £25.00

First Taylor Wimpey UK Ltd 10,666 23/11/2006 - - 22/11/2021 £199,800 £18.73 £266,650 £25.00 Imperial Epoq Legal are under offer to sublet Second Partnerships in Care Ltd 10,655 01/07/2015 30/09/2020 - 31/12/2022 £214,000 £20.08 £266,375 £25.00 3,939sq ft at £25.00psf with a 5 month Place 2: rent free period given. Part Third Just Eat.co.uk Ltd 6,643 26/02/2014 26/02/2019 26/02/2019 25/02/2024 £121,989 £18.36 £166,075 £25.00

Part Third Elysium Healthcare 3,507 13/07/2017 - - 31/12/2022 £81,000 £23.10 £87,675 £25.00

Fully sublet to Elysium Healthcare at the Fourth Partnerships in Care Ltd 9,649 13/07/2007 30/09/2020 - 31/12/2022 £188,156 £19.50 £241,225 £25.00 passing rent on a co-terminus lease.

Imperial Whole Signet Trading Ltd 36,091 07/10/2005 06/02/2021 £689,350 £19.10 £812,048 £22.50 Place 3:

Borehamwood Maxwell Road Centre Ltd Part Ground 15,719 01/01/2018 01/01/2023 - 31/12/2027 £270,000 £17.18 £275,083 £17.50 18 month rent free period to be topped up (t/a Regus) by the vendor.

6 month rent free period to be topped up Part Ground u/o Buyagift Plc 1,800 01/01/2018 01/01/2023 01/01/2023 31/12/2028 £40,000 £22.22 £40,500 £22.50 by the vendor.

First Just Eat.co.uk Ltd 17,507 26/02/2014 26/02/2019 26/02/2019 26/02/2024 £325,415 £18.59 £402,661 £23.00

Imperial Part Second Dorel (UK) Ltd 8,221 06/11/2013 06/11/2018 06/11/2018 05/11/2023 £153,587 £18.68 £189,083 £23.00

Part Second u/o Buyagift Plc 9,080 01/01/2018 01/01/2023 01/01/2023 31/12/2028 £210,000 £23.13 £208,840 £23.00 6 month rent free period to be topped up Place 4: by the vendor.

Third Just Eat.co.uk Ltd 15,884 26/02/2014 26/02/2019 26/02/2019 25/02/2024 £302,660 £19.05 £365,332 £23.00

Fourth Affinity Sutton Homes Ltd 15,454 22/08/2013 22/08/2018 22/08/2018 21/08/2023 £294,076 £19.03 £386,350 £25.00

Simarc have indicated they do not intend Fifth Simarc Property Management Ltd 11,904 26/04/2013 26/04/2018 26/04/2018 25/04/2023 £230,436 £19.36 £297,600 £25.00 to exercise their break option.

Totals 220,541 3.4 years 6.2 years £4,266,707 £19.35 £5,199,521 £23.58 Contact:

If you require any further information please contact one of the following:

Charles Boyes Jason Nearchou Guy Freeman Ross Cuthbert John Rodgers

T: 020 3486 3472 T: 020 3486 3475 T: 020 3486 3471 T: 020 3486 3479 T: 020 3486 3467 E: [email protected] E: [email protected] E: [email protected] E: [email protected] E: [email protected]

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