RBS HEMEL HEMPSTEAD 89 THE MARLOWES, HP1 1XY FREEHOLD BANK & OFFICE INVESTMENT WITH DEVELOPMENT POTENTIAL ON BEHALF OF RBS 89 THE MARLOWES, HEMEL HEMPSTEAD, HP1 1XY FREEHOLD BANK & OFFICE INVESTMENT WITH DEVELOPMENT POTENTIAL

Investment Summary

Freehold investment in an affluent commuter town Flagship banking premises with large car park to the rear 9,782 sq ft (908.8 sq m) Site area of 0.38 acres (0.13 ha) with a low site coverage of 30% Let entirely to the strong covenant of The Royal Bank of Scotland plc for a further 4 years Recent lease renewal demonstrating the tenant’s commitment to the property Well specified accommodation providing ground floor banking hall and two upper floors of office accommodation Current passing rent of £145,000 pa (£14.82 per sq ft) The property offers a number of asset management opportunities including converting the upper parts to residential (via permitted development) and developing the site to the rear (subject to planning)

Offers are sought in excess of £1,820,000 (One Million Eight Hundred and Twenty Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 7.5% assuming purchaser’s costs of 6.22% and a low capital value of £186 psf.

Site outline for indicative purposes only RBS 89 THE MARLOWES, HEMEL HEMPSTEAD, HP1 1XY FREEHOLD BANK & OFFICE INVESTMENT WITH DEVELOPMENT POTENTIAL

A L E X B487 A N M D M11 A R D R A A505 A D RO L R WARNERS EN Stansted O D Keen Fields Luton W A120 D

Location E A418 A M1 S ADE A5 C YF AD A10 M IELD RO O D

A A A602 R O R Y U Hemel Hempstead is an affluent London commuter town located in the Chiltern D A A131 M N L F HEMEL LA E L

D A130 MI O W X Hills. The town is located within close proximity to the North West quadrant of A W A

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M11 R A the M25 approximately 5.0 miles (8 km) north west of , 7.5 miles (12 km) 4

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A41 4 north of and 9.0 miles (14.5 km) south of Luton. Central London is located A D

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St Albans Hatfield E R

A4010 L approximately 22.3 miles (36 km) to the South East. H ILLFIELD ROAD M10 A138 H

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A414 M U

A10 A414 I S A J21 G The area benefits from excellent communications with Hemel Hempstead being M25 E R

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J23 T W located on the London Midland train line which provides regular services into E

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Central London. K

R Enfield HEMEL Watford A1 L B O M25 A A12 A N High U HEMPSTEAD Road communications are good with the town being located 1.5 miles (2 km) from Barnet D A355 A130 E Wycombe A413 Z THE HOSPITAL

Brentwood Z junction 1 of the and 2.5 miles (4 km) from junctions 20/21 of the J28 MARLOWES M40 R AD . Harrow D SHOPPING RO

A10 A127 CENTRE S

R N Ruislip Romford J29 Basildon A130 A A404 J16 O B London Luton Airport (currently ranked as the fifth busiest airport in the UK) is Wembley Holloway A12 AL A Stratford Benfleet ST situated approximately 11.6 miles (19 km) to the north providing flights to over A40 D 4 M25 41 100 destinations with over 12.2 million people passing through the airport in 2015. A M4 A13 J15 LONDON Windsor Heathrow Clapham A20 Richmond S Dartford Demographics A316 T JOHN’S RO L Staines A Gravesend D D A

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A23 A20 S Hemel Hempstead is a thriving town benefiting from its location within a A309 Heath Park N A2 R J12 Bromley E D L commutable distance of London. The town has an estimated shopping Hemel Hempstead Travel Times J3 A T A322 O A Croydon ATION R A T N M3 Weybridge A24 46 S A232 41 W population of 107,000 with 181,000 living within the primary catchment area. A M2 E Sutton A21 M25 M20 O A243 BY TRAIN BY CAR W AIRPORT DRIVE TIMES A4251 LONDON T Hemel Hempstead has one of the most affluent catchment populations in the UK, ROAD Snodland J10 4

Woking 1 A217 A23 HemelBiggin Hempstead Hill ranked 24th of the PROMIS centres. The Census in 2011 showed that the Hemel M20 4 J9 M26 Watford Junction 7 minutes Luton J5 17 minutes LondonA Luton 19 minutes Hempstead area contained a significantly above average proportion of adults of A331 M25 working age categorised within the most affluent AB social group and the per London Euston 26 minutesJ8 J7 J6Milton Keynes A21 39 Maidstoneminutes London Heathrow 33 minutes Oxted A3 Guildford capita retail spending levels are above the PROMIS average. Milton Keynes 33 minutes London 55 minutes London Stansted 49 minutes Redhill A26 A31 Clapham Junction A24 49 minutes Oxford 72 minutes London Gatwick 70 minutes M23 A22 Horley Royal Gatwick Tunbridge Wells A229 East Grinstead A21 A264 A26

Horsham

A22 A24 A23 Haywards Heath Sta

RBS 89 THE MARLOWES, HEMEL HEMPSTEAD, HP1 1XY 5 FREEHOLD BANK & OFFICE INVESTMENT WITH DEVELOPMENT POTENTIAL

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7 The property is situated on the eastern side of The 3 The Royal Bank of Scotland plc is rated 5A1 by Dun and Bradstreet. The business Marlowes close to its junction with Hillfield Road. produced the following headline accounts over the last 3 years: The Marlowes is Hemel Hempstead’s principal retailing ASDA

7 thoroughfare. 7 a 31/12/2012 31/12/2013 31/12/2014 The property is adjacent to a multi-storey NCP car park (000’s) (000’s) (000’s) and there is a Asda superstore behind. ‘The Forum’

development is currently under construction directly PH Turnover £26,375,000 £26,495,000 £18,315,000 S opposite the property. E

W Pre-Tax Profit -£3,412,000 -£6,761,000 £2,403,000 O L

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8 2 e Total Net Worth £46,885,000 £36,434,000 £62,332,700

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The property comprises a ground floor banking hall 7 6 3

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with offices on the first and second floors. RBS are 3 1

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1 Multistorey Car Park There is a separate access to the first and second floor 12 1 8

28 4 1 1 to 21 1 office accommodation potentially allowing for multiple 24 30 27 occupiers within the building. There is further access to

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5 the first and second floor via a fire escape to the rear of TCBs the property.

HILLFIELD ROAD The Site Area Square

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The property has a total site area of 0.38 acres (0.13 ha). 0

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© Crown Copyright, ES 100004106. For identification purposes only.

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The property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) Freehold and International Property Measurement Standards, (1st Edition) and provides the following floor areas: Tenancy

The property is let to the Royal Bank of Net Internal Area IPMS 3 Scotland plc for a term of 5 years from Floor Use Sq Ft Sq M Sq Ft Sq M 15 June 2015 with a current passing rent of £145,000 pa (£14.82 per sq ft). Ground Banking Hall 2,039 189.4 2,039 189.4

1st Office 3,727 346.3 3,804 353.4

2nd Office 4,016 373.1 4,073 378.4

Total 9,782 908.8 9,916 921.2

Site outline for indicative purposes only RBS 89 THE MARLOWES, HEMEL HEMPSTEAD, HP1 1XY FREEHOLD BANK & OFFICE INVESTMENT WITH DEVELOPMENT POTENTIAL

Retailing in Hemel Hempstead

Hemel Hempstead town centre has a strong offering of national multiples This pitch is directly south of the subject property, which is located on the and independent retailers with town centre retail floor space estimated at non-pedestrianised stretch of the Marlowes. Nearby traders are typically 0.76 million sq ft. The town’s main retail offer runs north to south along the secondary in nature however the council’s development of ‘The Forum’ pedestrianised section of The Marlowes which is where the two purpose- to the north of the property will improve the immediate surroundings. built managed shopping centres – The Marlowes Shopping Centre and Riverside Shopping Centre are located.

DEVELOPMENT POTENTIAL Office Market in Hemel Hempstead Hemel Hempstead – An Evolution The location and the layout of the property offers potential Hemel Hempstead has a built stock of approximately 3.1 million sq ft. Branded as “Hemel Evolution” over £30 million is being invested into the for alternative uses including care home and residential. Total availability currently stands at 7.1% which is in line with similar office regeneration of the town centre. Work has already started including The multiple access points to the property make the markets across the South East. Hemel Hempstead suffers from a severe significant improvements to the pedestrianised shopping areas and a new lack of Grade A accommodation, mainly due to a shortage of recent bus interchange has been implemented. The original Marlowes zone, within property viable for permitted development. The site at the developments resulting in no new office space. Take up in 2015 was which the subject property is located, is subject to redevelopment with The rear could also be further developed subject to planning. estimated to be 102,000 sq ft. Forum development currently under construction. This development is a Comparable flats in the nearby area have been achieving Headline Grade A rents are currently at £20.50 psf which is on par with the joint venture between the council, Endurance Estates and R G Carter and £450 psf. record rents recorded pre 2007. Grade B office accommodation rents are will the Council and include a new county library. now approximately £15 per sq ft . ‘The Forum’ will be surrounded by more than 200 new homes. EPC

The property has been rated Grade C (71). The EPC is available on request.

VAT

The property is elected for VAT and it is anticipated that the transaction will be treated as transfer of a going concern (TOGC).

Proposal Offers are sought in excess of £1,820,000 (One Million Eight Hundred and Twenty Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 7.5% assuming purchaser’s costs of 6.22% and a low capital value of £186 psf.

For further information or to make arrangements for viewing please contact:

Dale Johnstone Jonathan Butcher Roseanna Eden 020 7543 6796 020 7543 6755 020 7543 6740 [email protected] [email protected] [email protected] www.allsop.co.uk On behalf of

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 06.16