FOR SALE RARE HQ OFFICE REPOSITIONING OPPORTUNITY

24,038 SQ FT ON 0.57 ACRES SUPERB

47 CLARENDON ROAD • • WD17 1HP OPPORTUNITY #2 ESTABLISHED

The existing building provides 1970s built office accommodation over ground and 2 upper floors with basement parking.

The property has been measured in accordance with the RICS Code of Measuring Practice and provides the following approximate areas:

FLOOR NET INTERNAL AREA GROSS INTERNAL AREA

SQ M SQ FT SQ M SQ FT

Basement - - 2,104.62 22,654

Ground 942.61 10,146 1,037.28 11,165

First 646.48 6,959 746.82 8,039

Second 644.12 6,933 746.82 8,039

Third - - 262.88 2,830

TOTAL 2,233.21 24,038 4,635.54 49,897

PARKING SITE AREA 85 car spaces at grade and basement level. 0.57 acres (0.23 ha). PROPERTY

47 CLARENDON ROAD • WATFORD • WD17 1HP #3 First

EXISTING FLOOR PLANS

Basement Second

Ground Third

47 CLARENDON ROAD • WATFORD • WD17 1HP #4 A1(M) Cheshunt M25

Enfield M1 Watford A10 M11 Edgware FLAGSHIP Harrow M40 A1 • Situated on the edge of North London and the Romford commuter belt of and South Wembley Bucks, Watford is ideally placed for continued A40 A406 A41 growth and to become even more dominant as Hayes an office location going forward Slough London A13 • Watford town centre has three mainline train M4 stations, Watford Junction, Watford High Street and , providing regular and direct access to Central London, with a fastest journey time of 16 minutes to London Euston, and numerous Greater London destinations Watford is the principal commercial

Watford Junction centre in the north Station and Car Park M25 benefiting from LOCATION exceptional rail and road connections.

Clarendon Road

St Albans Road Additional direct rail connections to West Herts • College Birmingham, Central Milton Keynes, Hemel A412 Hempstead and Abbey from Watford P Radlett Road Playing Fields Junction and , Amersham, Park CitiPark Sutton CitiPark Gade Car Park Chesham, Harrow-on-the-Hill from Watford Car Park P A411 Upton Road • The town lies 15 miles north west of Central Rickmansworth Road West Hertfordshire intu London, 6 miles south east of Hemel Exchange Road Sports Ground Watford Hempstead and 8 miles south west of St Albans

A4178 • Junction 20 of the M25, 4 miles north west Watford provides quick access to the national motorway High Street network, and junction 5 of the M1, 2 miles to the Station north east, provides a direct route southbound into Central London

47 CLARENDON ROAD • WATFORD • WD17 1HP #5 Direct access to Central London, with a fastest journey time of 16 minutes to WELL London Euston CONNECTED

M1 (J5) M25 (J20) Hemel Hempstead St Albans Central London 2 miles 4 miles 6 miles 8 miles 15 miles

London Euston Milton Keynes Clapham Junction St Albans Birmingham New Street 16 mins 22 mins 41 mins 16 mins 69 mins

Luton Heathrow Stansted Gatwick 18 miles 22 miles 45 miles 57 miles

47 CLARENDON ROAD • WATFORD • WD17 1HP #6 42-44 40 Edward Hyde Building Hyde Edward 34 36

Clarendon Road 51 45 House Hannay 41-43 37 Victoria House Victoria Cambridge House Cambridge

Beechen Grove #7 WD17 1HP • WATFORD WATFORD • in Watford The building is on The building is on prime office district prime office district Clarendon Road, the Road, Clarendon

47 CLARENDON ROAD CLARENDON47 ROAD

SITUATED

PERFECTLY PERFECTLY LOCAL OCCUPIERS

1 TJX 7 ACI 2 KPMG 8 Veale Wasbrough Vizards 3 PwC 9 HYDE – L&G refurbishment 4 Ralph Lauren 10 Wickes head office 5 Wunderman Thompson Commerce 11 Hilton Hotels Europe head office IN GOOD 6 Employment Tribunal Service 12 JD Wetherspoons head office 10 COMPANY

11 Intu Watford 12

Cineworld Watford Junction Station Holiday Inn 2 1 4 3 9 5 Jury’s Inn Watford Palace Theatre 7 6 8 NRG Gym TJK Europe New HQ 53CR site Sainsbury’s

A412 St Albans Road Iceland

CitiPark Gade High Street A411 Beechen Grove PLANNING has been supportive of major development projects in recent years, particularly on Clarendon Road where the retention of employment space has been at the forefront and high rise buildings have been permitted.

Clarendon Road is subject to an Article 4 Direction restricting the conversion of the building to residential under Permitted Development.

PRE-APPLICATION

A pre-application has been undertaken with Watford Borough Council for the following:

• Refurbishment and extension of existing building for office use, Class B1 (a) • Two storey roof extension to provide additional 1,020 sq m of office accommodation, NIA increasing from 2,294 sq m to 3,314 sq m (44% uplift), plus commercial amenity space on first and fifth roof levels • Facade enhancements to existing building, improvements to the ground floor entrance and public realm • Car parking provision retained within basement and cycle parking provided

The response from the council is overwhelmingly positive for a design led redevelopment as proposed. AND POTENTIAL

47 CLARENDON ROAD • WATFORD • WD17 1HP #9 47 CLARENDON ROAD • WATFORD • WD17 1HP #10 OPPORTUNITY TO REPOSITION THE BUILDING IN A CONTEMPORARY STYLE AS HAS BEEN DONE RECENTLY ON CLARENDON ROAD WITH EXCELLENT RESULTS.

GNR8 - formerly Victoria House

40 Clarendon Road Hyde

47 CLARENDON ROAD • WATFORD • WD17 1HP #11 Ground

PROPOSED FLOOR PLANS

Basement

First

8 Cycles 8 9 Cycles 9

POTENTIAL PRE-APP SCHEME (NET INTERNAL AREA)

Floor Office Terrace Typical Second / Third / Fourth Fifth 420 sq m 4,517 sq ft

Fourth 539 sq m 5,800 sq ft

Third 539 sq m 5,800 sq ft

Second 641 sq m 6,900 sq ft

First 641 sq m 6,900 sq ft 439 sq m 4,723 sq ft

Ground 725 sq m 7,803 sq ft

Reception 229 sq m 2,469 sq ft

Total 3,314 sq m 35,672 sq ft 859 sq m 9,240 sq ft

47 CLARENDON ROAD • WATFORD • WD17 1HP #12 WATFORD MARKET OVERVIEW • The total office stock for Watford is approximately 4.6 million sq ft and this includes both the town centre and out of town markets. • These statistics do not include the fact that • Rents in the town have hit a new high of £36.50 psf at Columbia TJX Europe (TK Maxx) will start to occupy Threadneedle’s 40 Clarendon Road, which is refurbished Grade A as its newly constructed 200,000 sq ft HQ on opposed to brand new Grade A. Record rent Clarendon Road during 2021 while retaining • Rents approaching £40.00 per sq ft might be expected in the next 24-36 achieved in 2020 a proportion of its current estate. months for the very best space. and sustained in • Key supply of c.370,000 sq ft comprising • Since June 2020, take-up of 100,000 sq ft and further space under subsequent letting. 170,000 sq ft in the town centre, 60,000 offer despite the Covid pandemic, other business headwinds, and a sq ft on Croxley Park and 134,330 sq ft diminished choice of space for occupiers. elsewhere out of town, most notably 97,748 sq ft tenant space at Leavesden on behalf of ASOS. • A notable lack of Grade A office readily available, only L&G’s 68,000 sq ft HYDE refurbishment and the 10,000 sq ft floor • Take-up shows a 5 year average of over 200,000 sq ft per at Columbia Threadneedle’s 40 Clarendon annum in Watford. Watford is the largest Road provide high quality Landlord space. • The total take-up for whole of the NW M25 in the past 5 years • A new building of 80,000 sq ft is under and most dominant equates to 2,500,000 sq ft meaning that Watford is responsible Less than 2 years construction at Croxley Park, known office market in the for 45% of all take-up. supply based on as Building 1, following the successful north London and • An interesting highlight of 2020 is that none of the tenants were typical take-up. development of the fully let Building 2. North M25 sector. originally from Watford but attracted from Harrow, Southall, Uxbridge, St Albans, Radlett and Denham. This suggests there is still outstanding churn to come from indigenous Watford occupiers as would be typical in other years.

47 CLARENDON ROAD • WATFORD • WD17 1HP #13 KEY TAKE-UP IN WATFORD

Date Address Size (sq ft) Tenant Lease Details Rent (psf) Landlord

U/O Royalty House, 10 King Street 23,379 Magistrates Court TBC TBC Aviva

Department of Work & Jan 21 Egale 2, St Albans Road 17,076 5 year lease, 3 year break, 5 months’ rent free £32.00 Columbia Threadneedle Pensions

Jan 21 GNR8, 49 Clarendon Road 1,907 Parasol Homes Ltd 5 year lease £34.75 RO Real Estate

Oct 20 1 Blackmoor Lane, Croxley Park 10,147 Clinisupplies 11 year lease, 6 year break , 12 months’ rent free £19.71 Watford Borough Council

Oct 20 Ground Floor, 40 Clarendon Road 8,696 15 Marketing 10 year lease, 5 year break, 12 months’ rent free £36.50 Columbia Threadneedle

St Andrews House, Belfry Business Park, SpaMedica Oct 20 c.8,000 10 year lease, 5 year break and 6 months’ rent free £25.00 Columbia Threadneedle Colonial Way (Medical Use)

10 year lease, 5 year break, 18 months’ rent free Aug 20 Part Ground Floor, B3, Croxley Park 14,230 Vibrant Foods £27.60 av. Watford Borough Council (6 month rf or pen on break)

Aug 20 Part 2nd Floor, B4, Croxley Park 10,045 CSL DualCom 10 year lease, 6 year break, 19 months’ rent free £28.50 Watford Borough Council

June 20 2nd, 3rd & 4th, 40 Clarendon Road 28,211 PwC 15 year lease, 10 year break, 22 months’ rent free £36.50 Watford Borough Council

20 year lease, no breaks, 5 yearly rent review, Oct 19 Egale 2, 78 St Albans Road 17,071 Finest Dental £31.00 Columbia Threadneedle 31 months’ rent free

May 19 2 Century Court, Tolpits Lane 9,500 Direct Save Telecom Freehold sale £1.7m £179 F/H Private vendor

Oct 18 Building 2, Croxley Park 20,712 Regus 10 year lease, 28 months’ rent free £32.00 Columbia Threadneedle

Oct 18 Building 6, Leavesden Park 9,548 Mane Contract Services 10 year lease, 5 year break, 9 months’ rent free £21.50 Warner Bros

Sept 18 Hercules Way, Leavesden Park 123,796 ASOS 15 year lease £26.00 Kennedy Wilson

June 18 Building 4, Croxley Park 7,375 Yopa 10 year lease, 5 year break, 6 months’ rent free £28.50 Columbia Threadneedle

May 18 36 Clarendon Road 28,000 Salmon 15 year lease, 18 months’ rent free £31.50 Boultbee Brooks

April 18 Building 7, Croxley Park 6,222 Starleaf 10 year lease, 5 year break, 7 months’ rent free £28.00 Columbia Threadneedle

2nd Floor, Sunningdale, 10 year lease, 5 year break 18 months’ rent free Feb 18 6,106 Data Locater £25.50 Columbia Threadneedle The Belfry, Colonial Way (6 month break penalty)

47 CLARENDON ROAD • WATFORD • WD17 1HP #14 SUPPLY Building Size sq ft Rent per sq ft Spec Landlord Town Centre The redevelopment of 47 Clarendon 40 Clarendon Road 1st - 10,233 £36.50 Grade A refurb Columbia Threadneedle Road would provide much needed new office space in a very undersupplied market. While there is seemingly 1st - 10,795 £30.00 FIS Global - tenant space Tenant (expiry May 2023) a healthy pipeline of potential Lucidus House, 2nd – 10,705 £28.50 passing TJX – tenant space Tenant (expiry Feb 2023) 41-43 Clarendon Road 3rd – 10,709 £28.50 passing TJX – tenant space Tenant (expiry Feb 2023) developments, with a 5 year average of 4th – 9,307 £28.50 passing TJX – tenant space Tenant (expiry Feb 2023) take-up over 200,000 sq ft pa, the space under construction /refurbishment could be swiftly soaked up. HYDE, 38 Clarendon Road 68,587 £37.00 Grade A refurb L&G

Other schemes are hampered by Gnd - 16,788 £24.58 passing Europcar space Tenant (break in Aug 26) their size and complexity, may not be Oak House, Reeds Crescent Pt 1st - 8,920 £30.00 Grade B+ FI REM (for administrator) developed in the short term and may Pt 2nd - 6,663 £30.00 Grade B+ FI REM (for administrator) never get out of the ground in their current guise. Egale 1, Station Road 3rd - 5,886 £32.50 Grade A Columbia Threadneedle

A scheme of the size proposed for 47 6th - 6,732 The Junction, Station Road Dentons – tenant space Tenant (break in Aug 21) Clarendon Road is a manageable and 7th – 6,728 fundable size and could be relatively quickly brought to market to deliver in to Out of Town a very under-supplied 2023 market. B1, Croxley Park 80,000 TBA New build p.c. Q1 2021 Watford Borough Council

1st floor refurbished and B3, Croxley Park 15,046 £30.00 Watford Borough Council 2nd floor to follow

2nd floor refurbished and B4, Croxley Park 19,682 £30.00 Watford Borough Council 1st floor to follow

B6 Croxley Studios, 8 suites from 1,499 - 6,819 sq ft £28.50 Mostly due refurbishment Watford Borough Council Croxley Park totalling 27,735 sq ft

Gleneagles, 13 Colonial Way 5,411 £26.50 Grade B+ Columbia Threadneedle

Building 2 – 4,247 Building 3 – 4,620 Axis, Rhodes Way £25.00 Grade B+ REIM Building 4 – 7,131 Building 5 – 5,173

6 Hercules Way, Leavesden Park c. 10,000 £23.50 Grade B+ Warner Bros

Headquarter building leased by ASOS potentially ASOS, 100 Hercules Way, 97,748 £26.00 Grade A tenant space available but suits larger 20,000 sq ft+ requirements Leavesden Park better due to size and configuration.

47 CLARENDON ROAD • WATFORD • WD17 1HP #15 DEVELOPMENT PIPELINE Medium-term 53 Clarendon Road

Area: 104,260 sq ft NIA consented with 166 car spaces (1:628 sq ft) Immediate Owner: Seven Capital Comment: Cleared site but no firm plans to start construction. Previously had consent 54 Clarendon Road for c.55,000 sq ft office and 59 residential units that was considered unbuildable / unviable. Area: 29,830 sq ft NIA with planning permitted to extend to c.50,000 sq ft Owner: Canada Life Comments: Addition of 4th floor and rear extension due to Medium-term commence in early 2021. Parking reduced from 88 spaces to 66 spaces providing a ratio of 1:757 sq ft. 48-50 Clarendon Road

Area: 59,620 sq ft NIA existing. Planning consent for 67,900 sq ft NIA with 61 car spaces (1:1,113 sq ft) plus 100 residential units Owner: Verdose Comments: Occupied by TK Maxx short term, holding over under L&T Act as accommodates critical IT. Current design requires both the residential and office scheme to be built simultaneously with shared basement. Agents been marketing the scheme for sale but unviable at the level sought.

Medium-term Medium-term Milbuck House & Hannay House, , 11-19 Station Road 37-39 Clarendon Road

Area: 36,179 sq ft NIA office with Area: 50,208 sq ft NIA existing. Planning planning application to consent for 111,902 sq ft NIA offices redevelop to a 168 bed hotel with 150 car spaces (1:746 sq ft) and and c.40,000 sq ft office with 154 residential units over 23 levels 70 car spaces (1:571 sq ft) Owner: Clarendon Road Developments Limited Owner: Tellon Capital Comments: Current design requires both the Comment: Multi-let with latest expiries residential and office scheme to be in late-2021. Scheme requires built simultaneously with a new, shared both elements be built basement on 3 levels. simultaneously with shared basement.

47 CLARENDON ROAD • WATFORD • WD17 1HP #16

INVESTMENT COMPARABLES Horizon, 28-38 Upper High St, Epsom EXECUTIVE SUMMARY Area: 21,819 sq ft Fully refurbished in 2017 Tenancy: Single let to the NHS on new 10 year lease Continued appetite for well located, town Rent: Rent of £425,000 pa (£20.00 psf) centre assets and value add opportunities. Vendor: Kennedy Wilson • Existing building of 24,038 sq ft NIA with Owner: Sold to CIFCO Capital Ltd (Babergh D.C.) (December 2020) Comments: £7.97m / 5.00% / £365.28 psf 85 car spaces at basement and grade Radius House, 51 Clarendon Road, Watford

Area: 35,977 sq ft • Positive pre-app to extend the building Tenancy: Multi-let to 3 tenants to 35,672 sq ft NIA 8.1 years WAULT Rent: Reversionary rent of £754,800 pa (£20.98 psf) Vendor: M&G • Potential for more comprehensive Owner: Sold to CLS Holdings (December 2020) redevelopment or massing Comments: £16.9m / 5.60% / £469.74 psf

• Located on the north M25’s pre-eminent office pitch

• Record rents recorded on Clarendon Road in 2020 and expected growth

• Limited Grade-A office space and development pipeline

• Watford has seen sustained take-up in H2 2020 and Q1 2021

Honeywell House, Bracknell 10 Bricket Road, St Albans • Further notable office deals in detailed negotiations Area: 72,379 sq ft Area: 26,436 sq ft Recent in-situ refurbishment £9.05m / £342 psf Tenancy: Single let to Honeywell UK Ltd Vendor: Columbia 10.5 years to expiry Threadneedle Rent: Rent of £1,870,401 pa (£26.00 psf) Owner: Sold to Canmoor and Vendor: Legal & General Legal & General with Owner: Sold to Runnymede B.C. (March sub-1 year income in 2020) late 2019 for major Comments: £32.8m / 5.37% / £453.17 psf repositioning

47 CLARENDON ROAD • WATFORD • WD17 1HP #17 TENURE FURTHER INFORMATION / DATA ROOM

Freehold held under Title number HD375698. Further planning, technical, Title and scheme information can be found in the Data Room. TENANCY Please request further information or Data Room access from one of the agents.

Mapeley will take a 12 month lease of the 2nd floor at £69,330 per annum (£10 per sq ft). PROPOSAL

Mapeley will have the option to extend this occupation for a further Offers are invited for the freehold interest. 3 months with 3 months prior notice. VIEWINGS VAT Viewings are strictly by appointment only. Please contact the sales agents to The property is elected for VAT purposes. arrange an inspection.

It is the intention of the vendor to treat this transaction as a Transfer of a Going Concern (TOGC).

EPC

The property has an EPC rating of C-60 and the documents are available in the Data Room.

AML Peter Brown Rob Bray In accordance with Anti-Money Laundering (AML) Regulations, the T: 01923 205 521 T: 07768 800 280 purchaser will, at Heads of Terms stage, be required to satisfy the M: 07740 170 458 E: [email protected] vendor on the source of the funds used to complete the transaction. E: [email protected] James Shillabeer Tim Howlings TECHNICAL M: 07824 663 594 T: 01923 205 524 E: [email protected] A number of technical items are available and are downloadable via M: 07702 884 402 the Data Room. E: [email protected]

Disclaimer: The agents for themselves and for the vendors or lessors of this property whose agents they are give notice that: (i) the particulars are set as a general outline only for the guidance of intending purchasers or lessees and do not constitute the whole or any part of an offer or contract: (ii) all descriptions, dimensions, references to condition and necessary permissions for use and occupation, and other details are given in good faith but without any responsibility whatsoever and any intending purchasers or tenants should not rely on them as statements or representations of fact, but must satisfy themselves by inspection or otherwise as to the correctness of each of them; (iii) neither the agents nor their employees has any authority to make or give any representation or warranties whatsoever in relation to this property; (iv) unless otherwise stated all prices and rents are quoted exclusive of VAT, and intending purchasers or lessees must satisfy themselves independently as to the applicable VAT position. (v) All the plans and maps provided within the particulars are for identification purposes only. February 2021.