Q-PARK SURREY STREET, CR0 1TR

SALE AND LEASEBACK LONG INCOME INVESTMENT THAT WILL BE LET TO Q-PARK LTD WITH ANNUAL RPI UPLIFTS FOR A MINIMUM OF 35 YEARS Q-PARK CROYDON SALE AND LEASEBACK LONG INCOME INVESTMENT THAT WILL BE LET TO SURREY STREET, CR0 1TR Q-PARK LTD WITH ANNUAL RPI UPLIFTS FOR A MINIMUM OF 35 YEARS

INVESTMENT CONSIDERATIONS

Prime multi-storey car park located in the very heart of one of London’s largest boroughs

Sale and leaseback to the strong covenant of Q-Park Ltd for a minimum term of 35 years

Freehold

Total proposed rent of £518,000 pa subject to annual RPI linked rent reviews with a 1% collar and 4% cap

Large strategic town centre site providing 679 parking spaces arranged over 8 levels with a site area of approximately 0.8 acres (0.32 hectares)

The A232 is less than a minute’s drive south, providing access to the M25 via Junction 4

Based on a purchase at asking terms the property has a very low capital value of only £60 psf

Offers sought in excess of £10,790,000 (Ten Million Seven Hundred and Ninety Thousand Pounds) subject to contract and exclusive of VAT. This reflects a net initial yield of 4.50%, after allowing for purchaser’s costs of 6.70%. Q-PARK CROYDON SALE AND LEASEBACK LONG INCOME INVESTMENT THAT WILL BE LET TO SURREY STREET, CR0 1TR Q-PARK LTD WITH ANNUAL RPI UPLIFTS FOR A MINIMUM OF 35 YEARS

LOCATION Croydon is located 10.1 miles (16.3 km) south of Central London, and is the largest London Borough in terms of A505 Stansted Population with a catchment of c. 363,378 (2011 Census). Luton A 120 A418 A5 A10 Croydon benefits from excellent transport communications A1(M) A602 A44 M1 A 131 located along the A212 and within close proximity to the A34 A130 A213, A236 and A232. The A23 is located c. 1.0 miles A40 A414 M11 (1.6 km) to the west and provides direct access to Central A41 A 12 A4142 London. M10 A414 A138 A420 J21 A414 Croydon has excellent rail connections served by West A404 A4010 J20 J23 Croydon, East Croydon and Rail Stations, J19 J25 J27 TO CENTRAL LONDON M25 AND UNDERGROUND operating London Overground and Tramlink services. Direct M25 A1 M1 M11 A130 services run to destinations including Brighton, London A355 A 413 WINDMILL ROAD J28 Gatwick and Central London, with average journey times D M40 A

O R A10 A 12 A 127 to London Bridge in c. 15 minutes and London Victoria in c. N J29

UCESTERROAD D ENHAM RD O J16 S A404 L SY ID 17 minutes. O LO WER ROAD GLO V A40

N A D D A34 D A O O Gatwick and Heathrow Airport are located 18.2 miles N R A 13 M25 D A404(M) London R L O E J15 I (29.3 km) south of Croydon and 22.2 miles (35.7 km) A F M4 LONDONCity D K A A2 A O TAVISTOCKRD 2 Heathrow north west of Croydon respectively, providing domestic 3 M4 5 SYDENHAM RD A 316 PAR A329(M) and international flight services. RD K J2 O L NSDOWNE ROAD A20 R D L A BEDF A RD ROAD D A23 WEST M L W A A A CROYDON H W H J12

N G E O C A309

D R DERBY ROAD REL OS ELY A D Y N M3 A3

S I R CROYDON J3 D A322

O

NORT END H Y A232 A 21 R M2

Whitgift DINGWALL RD R M25 M20

E M25

Shopping Jurys Inn H

Centre C Hotel J10

(pedestrianised) A 217 A339Travelodge EAST ADDISCOMBE R D Croydon CROYDON A22 Centrale J9 J5 M26 M20 Central M3 Shopping 2 ST 3 M25 Centre E 2 ORG A 331 A3 GE A J7 J8 J6 Holiday Inn A34 Express D Croydon R Park Hotel A26 IHS E R ST GI H H T OW TR AM L INK Latitude CHEPS D RD Serviced RFIEL A 21 Apartments FAI O A24

L RCLAY RD M23 D A303 BA

ET

T O 2 WN VER A23 Gatwick N FL Y O Y DO A264 RO A229 C E A 31 H T A264

A23 Q-PARK CROYDON SALE AND LEASEBACK LONG INCOME INVESTMENT THAT WILL BE LET TO SURREY STREET, CR0 1TR Q-PARK LTD WITH ANNUAL RPI UPLIFTS FOR A MINIMUM OF 35 YEARS

SITUATION The property is situated on the western side of Surrey Street and is accessed via Charles Street, close to its intersection with Overtons Yard. The property is located 0.1 miles (0.2 km) north of the A323, a main arterial road that runs west from South London into Surrey. The car park is centrally located within the Town Centre, fronting Surrey Street, the pedestrianised retail thoroughfare that runs parallel to the High Street, with nearby occupiers including Nando’s, Sainsburys Local and Argos. The immediate surrounding area provides a popular mix of retail and leisure facilities including Vue Cinema, Surrey Street Market and The , attracting an annual footfall of c. 1 million people. Additionally, Q-Park is located only 0.4 miles (0.6 km) south of Croydon’s Centrale Shopping Centre and adjacent to the Croydon Conference Centre which hosts up to 500 guests at any one time.

DESCRIPTION The property is arranged as a standalone multi-storey car park over lower ground, ground and 5 upper floors, including one level of rooftop parking. Levels 1 to 6 comprise Q-Park branded parking providing 679 spaces, with car wash facilities to level 1 and pay stations at levels 1 and 4. There are two stairwells to the east and west of the property with the primary stairwell to the east, incorporating two customer lifts serving levels 1 to 6. The Q-Park is accessed via level 1, with additional facilities including a customer lobby, service area and staff office located along the eastern side of the level 1. The lower ground floor provides a residential car park of 51 spaces which forms part of the freehold demise. This has been sold off by way of a long leasehold to King Charles Court Management Limited. Additional space at lower ground level has been sub-let to Croydon Council which is used as a loading area for Croydon Market – the council are currently holding over. A further 60 spaces have been sold off on long leases inside the car park – further information is provided within the data room. The property provides a site area of 0.84 acres (0.34 Hectares). Croydon

Q-PARK CROYDON SALE AND LEASEBACK LONG INCOME INVESTMENT THAT WILL BE LET TO SURREY STREET, CR0 1TR Q-PARK LTD WITH ANNUAL RPI UPLIFTS FOR A MINIMUM OF 35 YEARS

West Croydon0.2 miles Station

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RESIDENTIAL ACCOMMODATION

© Crown Copyright, ES 100004106. For identification purposes only. Q-PARK CROYDON SALE AND LEASEBACK LONG INCOME INVESTMENT THAT WILL BE LET TO SURREY STREET, CR0 1TR Q-PARK LTD WITH ANNUAL RPI UPLIFTS FOR A MINIMUM OF 35 YEARS

PROPOSED LEASE TERMS

ACCOMMODATION PROPOSED PROPOSED TENANT GUARANTOR RENT REVIEWS OPTION TO EXTEND LEASE TERM RENT LEVELS** SQ FT SQ M SPACES

Annual retail price index Option to renew the tenancy for Q-Park Holding B.V. 35 years £518,000 pa linked rent reviews with two further periods of 10 years Q-Park Limited (KvK number: 1-6 179,602 16,685 679 from completion (£763 per space) a collar of 1% and cap on identical terms at the passing 68805934) of 4%. rent.

179,602 16,685 679 £518,000 pa *Measurements are approximate and for indication only – not to be fully relied upon. Any interested party should carry out their own measured survey. Note: The lease will be outside the security of tenure in Part II of the 1954 Landlord and Tenant Act. **The lower ground floor level has been sublet and is not included in the measurements Q-PARK CROYDON SALE AND LEASEBACK LONG INCOME INVESTMENT THAT WILL BE LET TO SURREY STREET, CR0 1TR Q-PARK LTD WITH ANNUAL RPI UPLIFTS FOR A MINIMUM OF 35 YEARS

TENANT COVENANT INFORMATION Q-Park is a leading car park operator, with c. 900,000 spaces operating from Q-Park Limited has a D&B rating of 3A1 and an Experian Credit Rating of 80 over 6,500 parking facilities across the UK and Europe. reflecting ‘Below Average Risk’. Since its establishment in 1998, Q-Park has grown to become Number 2 Q-Park Limited produced the following financial records over a three year period: in the European parking market, active in 10 countries including Germany, Netherlands, Sweden, Finland, Norway and the UK. 31/12/2015 31/12/2016 31/12/2017 Over its lifetime, Q-Park has undergone a number of growth strategies Turnover £64,049,631 £68,701,295 £71,930,492 including acquiring Universal Parking, BCP, Epolia and the purchase of Pre-Tax Profit £835,734 -£2,670,274 £8,883,470 285,000 spaces in 270 car parks from Bridgepoint. Most recently, the Dutch car park operator was acquired for €3 billion in May 2017 by KKR, a leading Shareholders Funds £2,506,495 -£460,570 £7,660,887 global investment firm.

GUARANTOR COVENANT INFORMATION Q-Park Limited is guaranteed by Q-Park Holding B.V., a limited private company. Formed under Dutch law, the company was established in May 2017 for the purchase of the Q-Park Group, acquiring 100% of the Group’s shares in October 2017. Previously trading as Byzantium Acquisition MidCo 2 B.V., Q-Park Holding B.V. and its affiliated Group, hold their Headquaters in Amsterdam and are primarily involved with providing off and on-street parking services within strategic locations across Europe and the UK. Q-Park Holding B.V. displays the following financial information:

31/12/2017 31/12/2018 Total Assets £4,630,300,000 £4,505,000,000 Group Equity £1,210,500,000 £1,113,300,000 Net Revenue £231,600,000 £877,900,000

881,465 Prominent Over parking spaces UK locations 15 million customers across 10 northwest European Counties including London, Reading, Gatwick, in the UK and Ireland Glasgow, Manchester and Dublin

Unique distinct brand Over 2,500 people 6,579 serving 15 million customer across employed globally parking facilities the UK and Ireland Q-PARK CROYDON SALE AND LEASEBACK LONG INCOME INVESTMENT THAT WILL BE LET TO SURREY STREET, CR0 1TR Q-PARK LTD WITH ANNUAL RPI UPLIFTS FOR A MINIMUM OF 35 YEARS

CROYDON REGENERATION Croydon is currently the largest growth centre in London, with a £5.2 billion regeneration programme for the development of 10,500 new homes, 28 million sq ft of new Grade A office space, 7 new hotels and 2m sq ft of retail and leisure space. The development forms part of the Croydon Opportunity Area scheme, an initiative targeted at repositioning the Town towards a cultural and tech hub. The scheme includes major developments such as Croydon Boxpark and Ruskin Square, a mixed use development actioned under the Croydon Vision 2020 and the imminent construction of Westfield Croydon. The new Westfield shopping centre scheme is due to start works in Q1 2020 and represents one of the largest regeneration projects within Europe, with £1.5 billion invested into the Unibail-Rodamco-Westfield and Hammerson development. Q-PARK CROYDON SALE AND LEASEBACK LONG INCOME INVESTMENT THAT WILL BE LET TO SURREY STREET, CR0 1TR Q-PARK LTD WITH ANNUAL RPI UPLIFTS FOR A MINIMUM OF 35 YEARS

DRIVER DEMAND

CENTRE OF CROYDON CROYDON MARKET Conveniently located in Croydon The car park is directly linked with Town Centre adjacent to the Croydon Croydon’s historic seven days a week Conference Centre, Croydon’s Shopping market, with part of the basement used Centre and main retailing pitch. for loading.

CROYDON REGENERATION WELL CONNECTED Croydon is one of Europe’s largest The A232 is less than a minute’s drive regeneration projects at an estimated cost south, providing direct access to the M25 of £5.25 billion. via Junction 4.

GRANT CENTRE’S PARKING WESTFIELD CROYDON The car park is connected by way of a Westfield’s £1.5 billion Croydon walkway to the Grant Centre, offering a development is located less than 20% discount to customers using Nuffield 500 m from Q-Park, providing over Health Centre and Vue Cinema. 500,000 sq ft of new retailing space. Q-PARK CROYDON SALE AND LEASEBACK LONG INCOME INVESTMENT THAT WILL BE LET TO SURREY STREET, CR0 1TR Q-PARK LTD WITH ANNUAL RPI UPLIFTS FOR A MINIMUM OF 35 YEARS

CAR PARK INVESTMENT MARKET The recent sales of long dated RPI linked Car Park Investments have proved particularly popular to investors as they provide an attractive secured income stream with excellent rental growth and strong underlying fundamentals. The supply of car parks in general has contracted of late as they have been redeveloped to other more valuable residential/commercial uses. Local Authorities have also attempted to restrict supply to town and city centre car parking in the backdrop of an anticipated decrease in car ownership. Investment in the car park sector has been strong as demonstrated by the recent highlighted sales below:

ADDRESS TOWN DATE TENANT NO. OF SPACE RENT RENT PER SPACE UNEXPIRED LEASE TERM PRICE NIY (%)

Sovereign Square Leeds Jun-19 Q-Park 500 £900,000 £1,800.00 35 years £19,840,000 4.25%

Mount Street Nottingham Aug-18 NCP 514 £931,366 £1,812.00 19 years £22,450,000 4.20%

Montgomery Street Belfast Jul-18 NCP 472 £821,568 £1,740.61 19 years £18,393,915 4.18%

Dublin Road Belfast Jul-18 NCP 547 £514,272 £940.17 19 years £9,895,078 4.87%

Vernon Street, Moorfields Liverpool May-18 NCP 702 £798,149 £1,136.96 29 years £14,500,000 3.50%

1-21 The Martlets Crawley Apr-18 NCP 60 £80,000 £1,333.33 19 years £1,675,000 4.50%

New Southgate Bradford May-17 NCP 430 £260,000 £604.65 21 years £5,000,000 4.88%

Mitchell Street Glasgow Mar-17 NCP 220 £482,566 £2,193.48 20 years £10,600,00 4.40% RUNNING YIELD ASSUMING AN ANNUAL Year Rent NIY Year Rent NIY AVERAGE RPI LINKED UPLIFT OF 3%, COMPLETION 2020 £533,540 4.63% 2025 £618,519 5.37% IN 2019 AND A PURCHASE AT 4.5% NIY. 20 21 £549,546 4.77% 2026 £637,075 5.53% 2022 £566,033 4.92% 2027 £656,187 5.70% 2023 £583,014 5.06% 2028 £675,873 5.87% 2024 £600,504 5.22% 2029 £696,149 6.05%

PROPOSAL TENURE Offers sought in excess of £10,790,000 (Ten Million Seven Hundred and Freehold. Ninety Thousand Pounds) subject to contract and exclusive of VAT. This reflects VAT a net initial yield of 4.50%, after allowing for purchaser’s costs of 6.70%. The property has been elected for VAT.

DATAROOM For access to the Allsop dataroom please use the following link: https://datarooms.allsop.co.uk/register/Q-ParkCroydon For further information or to make arrangements for viewing please contact:

Jeremy Hodgson Liam Stray 020 7543 6709 020 7543 6769 [email protected] [email protected] allsop.co.uk

Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. Design CommandD www.commandHQ.co.uk 06.19 allsop.co.uk