INVESTMENT OPPORTUNITY TITAN HOUSE EUSTON PARK TF3 4LY

MODERN MIDLANDS OFFICE INVESTMENT Investment summary • Telford is a large New Town in the county of and is one of the fastest growing towns in the UK, with excellent rail and road transport links. • Euston Park is a modern business park situated in a prominent town centre location, adjacent to Telford Central Station and Junction 5 of the M54. • The subject property comprises 33,166 sq ft (3,081 sq m) of modern office accommodation and 103 car parking spaces , providing a ratio of 1:319. • Fully let to HP Enterprise Service UK Ltd on a lease expiring 17th October 2020 (5.3 years unexpired). • Low total rental income of £388,973 per annum equating to £11.78 per sq ft . • Offers are sought in excess of £3,500,000 (Three Million, Five Hundred Thousand Pounds) for the freehold interest, subject to contract and exclusive of VAT which equates to a low capital value of £106 per sq ft . • A purchase at this level reflects an attractive net initial yield of 10.50% after allowing for standard purchaser’s costs of 5.80%. R HILL CHURCH ST TITAN HOUSE

M EUSTON PARK O B5 A5

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Telford is a large new COMMUNICATION S 1 A442 TELFORD

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d Telford has strong road communications being C town in the borough of R A

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located approximately 35 miles north-west of E S

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Telford and Wrekin and W and 22 miles south-west of .

r A is the largest town in Y Transport communications are further enhanced M54 by Telford Central Railway Station, located less Shropshire. It has B EE 5 SL AVE than a 5 minutes’ walk from the property, 06 R 1 o excellent communications O

providing regular rail services between Telford PR I Y

f TITAN being situated adjacent and Birmingham, with a journey time of 35 A

W minutes. Birmingham Airport is positioned l HOUSE

to Junction 4, 5 and 6 of K 5 approximately 43 miles to the south-east. R A the P D 2 5 L 7 A

e 0 which links to the M6 O 5 B ST AFF and wider motorway ORD PAR network. TELFORD K 1 T S D A442 TA A F

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Q 3 A U E Y EN E A53 LIZABET A464 ST H AVE I A52 RC H LEY AVE STOKE ON TRENT NU E A525 E

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M6 A R A49 A515 STAFFORD A53 NEWPORT A34 A38 A41 EUSTON PARK

A5 LICHFIELD Euston Park is located adjacent to Junction 5 of Major occupiers on the park include Towergate, M54 the M54 motorway and is conveniently located Telford & Wrekin Council (NHS), Freyssinet and W TELFORD within walking distance of Telford town centre Martin Kaye Solicitors. The property benefits from and Telford shopping centre, from an enhanced good prominence with Euston Way providing the A442 M6 pedestrian access. The park is an established main access to Telford Central Station. A458 TOLL A454 business location which comprises a number of A49 standalone office buildings and a Premier Inn hotel A449 BRIDGNORTH M6 and ancillary restaurant. A458 BIRMINGHAM M5 M42 CUSHMAN & WAKEFIELD 2 KIDDERMINSTER TITAN HOUSE WAS CONSTRUCTED IN 2005 AND COMPRISES 33,166 SQ FT OVER GROUND AND THREE UPPER FLOORS TITAN HOUSE EUSTON PARK TELFORD Titan House TF3 4LY The property was constructed in 2005 and is The property has the following specification: regarded as the newest and best in class office in • Open plan floor plates Telford. It comprises a steel frame detached office • Raised floors building, arranged over ground and three upper • Suspended ceiling floors totalling approximately 33,166 sq ft • Integrated lighting (3,081 sq m). • Air conditioning The property benefits from superb communal • Two lifts (10 person) facilities including a modern Starbucks branded • Male, female and disabled toilets GROUND FIRST staff canteen on the ground floor. The office has on every floor a glazed full height reception area which provides • Shower facilities access to the lift lobby and service core. The • On-site canteen (tenants fit out) three upper floors, designed in an L-shaped format, offer open plan accommodation with a number of meeting rooms. The property also offers great flexibility to create two buildings with a central core and office suites either side. Additionally, the property is registered as a ‘List X site’, providing it with approval to hold SECOND THIRD UK government protectively marked information marked as ‘confidential’ and above.

ACCOMMODATION The property has been measured on a Net Internal Area basis in accordance with the RICS Code of Measuring Practice (6th Edition). The approximate areas are as follows:

FLOOR USE SQ M (SQ FT)

Ground Floor Reception 25.46 sq m (274 sq ft)

Ground Floor Offices 740.25 sq m (7,968 sq ft)

First Floor Offices 776.11 sq m (8,354 sq ft)

Second Floor Offices 774.53 sq m (8,337 sq ft)

Third Floor Offices 764.87 sq m (8,233 sq ft)

Total Net Internal Area 3,081.22 sq m (33,166 sq ft)

TENURE Freehold.

CUSHMCAUNS &H MWAANK E&F WIELADK E F IE L D 4 4 Tenancy The property is fully let to HP Enterprise Services The lease was subject to a deed of variation in UK Ltd on a full repairing and insuring lease for a April 2015 which removed the October 2015 term of 15 years expiring 17th October 2020 tenant break option with a revised headline rent of (5.3 years remaining). £388,973 per annum. A rent free period was agreed The total rental income is £388,973 per annum on the first floor only for the remainder of the lease (£11.78 per sq ft). term which will be topped up by the Vendor.

COVENANT HP Enterprise Services UK Limited is a global The last 3 years accounts are summarised below: business and technology services firm. It is a 31ST 31ST 31ST wholly owned subsidiary of Hewlett Packard OCT 2014 OCT 2013 OCT 2012 Holdings Limited. It is one of the world’s largest (000’S) (000’S) (000’S) manufacturers of PC’s and has over 330,000 staff Turnover £2,373,225 £2,625,475 in more than 170 countries with its global Adjusted Due for imminent headquarters in California. £104,734 £212,256 Profit/EBITDA publication HP Enterprise Services UK Limited has a Dun & Net Worth £96,568 £86,436 Bradstreet credit rating of 5A1 representing the minimal risk of business failure. Market Commentary TELFORD OFFICE MARKET REGIONAL INVESTMENT MARKET Telford is part of the wider The regional office investment market is markets and is the largest town in Shropshire. performing strongly, with all regions now seeing It is one of the fastest growing new towns in the increased levels of investment activity. The UK with the manufacturing sector as its largest regional markets offer good value compared to employer. the heated and competitive London and South Euston Park is regarded as the prime office park East markets. in the area offering the most modern and well The prime regional cities have seen demand from located office accommodation. Occupiers have UK based and overseas investors with severe been attracted to the area due to the excellent compression of yields to 5.00%. Secondary assets transport links, proximity to Birmingham and are still offering investors a significant discount relative affordability of office accommodation. from the prime yields and therefore are There has been limited development since the attracting a wide range of UK and overseas building was constructed with Euston Park investors. remaining the prime development in the town.

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6 www.cushmanwakefieldinvestmentsales.co.uk R U O Team

Scott Rutherford Ben White E: [email protected] E: [email protected] T: +44 (0) 121 232 4909 T: +44 (0) 20 7152 5011

Chris Lewis Max Clynes E: [email protected] E: [email protected] T: +44 (0) 20 7152 5554 T: +44 (0) 20 7152 5710

Cushman & Wakefield LLP 43/45 Portman Square London W1A 3BG

June 2015

MISREPRESENTATION ACT 1967 Cushman & Wakefield LLP (and their joint agents if appointed) for themselves and for vendors or lessors of this property whose agents they are, give notice that: (1) The particulars are produced in good faith, are set out as a general guide only and do not constitute any part of a contract. (2) No person in the employment of the agent(s) has any authority to make or give any representation or warranty whatever in relation to this property. (3) This property is offered subject to contract and, unless otherwise stated, all rents are quoted exclusive of VAT. (4) Nothing in these particulars should be deemed to be a statement that the property is in good condition or that any services or facilities are in working order. (5) Unless otherwise stated, no investigations have been made regarding pollution or potential land, air or water contamination. Interested parties are advised to carry out their own investigations if required. Production by PlusArt 0115 972 4000.