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Home , JVCKenwood, North Circular Road, Staples Corner, Wembley Park

JVCKENWOOD PRIESTLEY WAY, NW2 7BA

JVC European Headquarters, Priestley Way, Staples Corner, London NW2 7BA Strategically Located Prime Industrial and Office Investment

PRIME INDUSTRIAL AND OFFICE INVESTMENT PROMINENT NORTH CIRCULAR LOCATION COMPRISING 250,910 SQ FT ON 9.26 ACRES

2 INVESTMENT SUMMARY

• Rare opportunity to purchase a prime, well-let industrial and office investment situated in a core Greater London location on the M1- North Circular intersection • Located at the landmark Staples Corner – access via Junction 1 of the , the A406 North Circular and the A5 Road • The Property comprises JVCKENWOOD UK LIMITED'S Headquarters facility, extending to 23,310 sq m (250,910 sq ft) on 3.75 Hectares (9.26 acres) • The facilities on site include a modern Distribution Warehouse together with a high specification 'flagship' Administration Office building and two warehouses • Fully let to JVCKENWOOD UK LIMITED on three separate FRI leases at a total current passing rent of £3,395,873 per annum • A weighted average unexpired lease term of 9.33 years with two of the leases expiring in 2025 and the third in 2020 • Two of the leases, accounting for 90% of the income, are subject to a fixed five yearly rental increase in 2020 equivalent to 2.75% per annum • JVCKENWOOD UK LIMITED have sublet various parts of the Property accounting for approximately 58% of the total current rental income • Freehold • The opportunity provides investors and occupiers with 305m (1,000 ft) frontage to the North Circular, a dominant orbital route for Greater London • Staples Corner will benefit from the ongoing £4.5 billion regeneration of 1 mile to the north-east We are instructed to seek offers in excess of £53,495,000 (Fifty Three Million, Four Hundred and Ninety Five Thousand Pounds), subject to contract and exclusive of VAT which equates to a Capital Value of £213 psf. A purchase at this level reflects a Net Initial Yield of 6.00% assuming standard purchaser's costs of 5.80%.

3 10 14 Bedford A1 13 A505 LOCATION MiltonMilton KeynesKeynes The North 9 A5 M11 Staples Corner is a landmark road junction in North West London. It is located at the start of A6 A1(M) the M1 motorway and sits at the junction of the A406 (), and A5, leading LondonLondon Stanstead Stansted Airport Airport A602 8 into . As such, it is one of the most prominent and accessible commercial A418 M1 A12 London Luton locations in North London and continues to develop as an established commercial centre Felixstowe/Harwich and retail location due to its excellent transport links and diverse consumer catchment. 9 Airport Birmingham/ A414 The North West A41 St Albans 3 The M1 motorway is ’s primary North-South motorway stretching over 190 miles, 7 connecting London with Leeds and further north via the A1 (M). The A406 is London’s A10 A4010 4 A414 A413 1 primary extending from in the west to in the east and the A5 6 runs from Edgware in North London directly into Central London at Marble M25 En eld Arch to the south. All of these major routes converge at Staples Corner. M40 M1 4 A406 28 4 16 1 29 Immediately east of Staples Corner, the A406 North Circular connects with the A41 1 A41 Way. The A41 leads onto the A501, a major arterial route 10km to the south of the Slough A406 A5 A501 Property. The A501 provides direct access to Euston and King's Cross St Pancras stations ReadingReading CentralCentral 31 A13 8 4 1 (two of London’s primary rail stations) immediately to the east, and the A5 Edgware Road, London M4 Dartford and (the closest rail line to the Property) to the west. 10 1 A20 2 A2 1 Cricklewood Railway Station (1.6 miles to the south-east) forms part of the Brighton 1 3 Swindon/Bristol M3 2 M2 to Bedford Line, linking to St Pancras International in 12 minutes. Hendon 4 A22 3 5 Railway Station (1.5 miles to the north-west) provides direct access to London, Wimbledon 4 9 M26 4 6 7 and Sutton southbound as well as St Albans and Luton northbound. Staples Corner also 8 5 7 benefits from regular tube services from Brent Cross Underground (Northern Line) located 8 7 M25 Dover 8 approximately 1.4 miles north-east of the site. A28

Not to scale Gatwick Tonbridge A229 , 1 mile to the north-east of the Property, is undergoing a Gatwick 9a 9 9 significant £4.5bn regeneration project, spanning a 20 year period to develop the area into 10 Folkestone a ‘world class destination’. This will see the building of 7,500 news homes, 4 million sq ft of M23 A22 Ashford office space, improved transport links and an extension of the Brent Cross Shopping Centre. 11 A21 A26 Crawley

Distance By Road Km Miles

Central London 9.65 6

M25 / M1 Motorway Junction 24.14 15

London Heathrow Airport 25.75 16

London 43.45 27

London Stansted Airport 61.10 38

4 City of London

Paddington

Cricklewood

Brent Cross/Cricklewood Regeneration

A406 Brent Cross Shopping Centre A5 Staples Corner Retail Park Oxgate Centre

M1 JUNCTION 1 A406 North Circular Road

Staples Corner Business Park

The North/ Birmingham M1

A5 Edgware Road

A406

Wembley/ JVCKENWOOD UK

A5

Hendon Waterside

5 SITUATION

Staples Corner benefits from a large catchment area due to the immediately surrounding residential Rail/London Distance from areas in the London Boroughs of Brent, Barnet, Harrow and Camden and the wider Greater London and Comments Underground Services Property North M25 location as a result of the exceptional transport links.

Brent Cross Underground The Property sits approximately 400m to the west of Staples Corner Junction, in a prominent position 1.4 miles 17 minutes to London St Pancras (Northern Line) with a 305m (1,000 ft) frontage to the A406 North Circular Road. Junction 1 of the M1 motorway and the A5 are located immediately to the east, both within half a kilometre. Hendon Central 16 minutes to London St Pancras 1.5 miles Rail Station 5 trains per hour The site extends to approximately 3.75 Hectares (9.26 acres) and is bounded by the A406 to the south and (Welsh Harp) to the north. Access is provided off the A5 Edgware Road via Priestley Way Cricklewood 12 minutes to London St Pancras to the north of Staples Corner junction. There is an additional point of egress directly onto the A406 North 1.6 miles Circular close to the junction with the A5. Rail Station 5 trains per hour

London Paddington Regular services to West London, Thames The immediate surrounding area is recognised as an important commercial location, as evidenced by the 5.1 miles numerous and diverse commercial operators nearby, including those from the industrial, office and retail Rail Station Valley, South West England and South Wales warehousing sectors.

A406 M25/The North M11/En eld/Stansted Watford/M25/ A406 The North En eld/M11/ Brent Cross Stansted

JVCKENWOOD UK E D G W A North Circular R E A5 R O A A406 Hendon D Brent Cross Waterside Shopping Wembley A41 Centre

Priestley Way

Staples Corner JVCKENWOOD UK Retail Park A5 King’s Cross Park Royal Staples Corner Euston BP & Oxgate Centre A501 M40/ Birmingham Euston/King’s Cross Marylebone A501/West End/ Paddington City of London Wembley/Park City of London West End Royal/A40/M4/ Paddington/Marylebone/ West End/ London Heathrow M4/Heathrow/ Bristol

Not to scale Not to scale

6 STAPLES CORNER £4.5BN REGENERATION OF BRENT CROSS Staples Corner is an historic and major landmark road junction The A5 is home to a wide and diverse range of commercial CRICKLEWOOD CURRENTLY UNDERWAY TO at the start of the M1 motorway, England’s primary North-South occupiers located at various intervals, including a Hyundai car motorway stretching over 190 miles, connecting London with Leeds showroom to the north of the site and a car dealership to CREATE ‘WORLD CLASS DESTINATION’ and further north via the A1 (M). the south.

The iconic junction has two linked roundabouts and flyovers, which Staples Corner also benefits from an excellent retail provision, connect the A406 North Circular (the primary ring road around owing in large to the Brent Cross Shopping Centre (set for Central London) with the A5 Edgware Road (providing direct access refurbishment and extension this year under the Brent Cross Brent Cross/Riverside Park into Central London) and the start of the M1 motorway. Cricklewood plans) and the Staples Corner Retail Park, both of Transformed Brent Cross which are immediately east of the Property across the A5. Shopping Centre As a result, the junction is considered an important location, providing unrivalled access across and into Central London as well Under the Brent Cross Cricklewood regeneration plans (discussed Future Housing as to the north of England. A wide and diverse occupier mix has below), there is provision for a £200m investment in the local road consequently been attracted to the immediate area. network, including a larger Staples Corner junction. This will significantly improve traffic flow and the appeal of the area. A406 Brent Cross/Riverside Park Industrial occupiers include Harrison Varma Joinery Ltd and Magnet Ltd at the Oxgate Centre, a modern industrial estate located The Thameslink railway line (stopping at Cricklewood Railway Planned Office Living Bridge a short distance south of the Property with frontage to the A5. Trade Station 1.6 miles to the south-east of the Property) runs from development (Phase 2) counter operators include Howdens Joinery and Toolstation at the Bedford to Brighton (through London) and serves both London 1000 North Circular Road Industrial Estate immediately south of the and London Luton Airport. Under the Brent Cross Property across the A5, and HSS Hire directly east of the Property at Cricklewood redevelopment plans a Thameslink station at Brent Planned Office Development (Phase 1) the adjacent Aquarius Business Park. Cross is proposed.

Retail warehouse occupiers in the vicinity include Maplin at the Staples Corner Retail Park immediately east of the Property and Claremont Park B&Q a short distance south along the A5 at Cricklewood. Planned Brent Cross Thameslink Station A41

BRENT CROSS CRICKLEWOOD

The profile of Staples Corner is set to benefit further from the Brent The first phases of the regeneration project are now underway, Cross Cricklewood regeneration plans, which covers an impressive having begun in March 2015. They include: the creation of two area of approximately 350 acres immediately north-east of the community parks as well as creating the first phase of Brent Cross Property. Riverside Park; improvements to local roads and junctions; along £5m Community Project with works to prepare for a new town centre on either side of the (Clitterhouse Playing Fields) Planning permission for the regeneration project was secured North Circular. The latter will be linked by a landmark new ‘Living in 2014, for investment partners Hammerson and Standard Life Bridge’. Investors to undertake a £4.5bn development. This is expected to Further information available at brentcrosscricklewood.com cover six phases of development, spanning a 20 year period and will transform the Brent Cross area into a ‘world class destination’. In 2016, the regeneration is expected to focus on the refurbishment Argent Related has been selected to work with Barnet Council to to and extension of Brent Cross Shopping Centre, as well as develop the Brent Cross South site. doubling the size of the existing bus station. Already in 2016, three new international brands, including Tesla Motors and stationery On completion, the development will see the building of 7,500 new shop Smiggle, have agreed deals to take space in the centre. homes, 4 million sq ft of office space (in turn creating an estimated 27,000 full time jobs), improved transport links (including the Moving forwards, such impressive large scale investment and creation of a larger Staples Corner junction) and an extension of the regeneration plans are set to further improve the appeal of the area Brent Cross Shopping Centre. to a diverse range of occupiers.

Brent Cross Cricklewood Indicative Masterplan

7 DESCRIPTION

The Property comprises four buildings situated on a regular shaped The four buildings are let in their entirety to JVCKENWOOD UK The buildings sit within a secure site which benefits from 24 site. The buildings include a modern well specified Distribution LIMITED as the company’s UK headquarters and approximately hour security and provides ample parking provision to the south Warehouse and ‘flagship’ Administration Office, both built in 2005, 84% of the accommodation is also sub-let to a diverse range of west corner, adjacent to the Administration Office building and along with two additional detached warehouses, ‘Warehouse occupiers, equally attracted by the high profile Staples Corner Distribution Warehouse. Additional overspill parking areas are 3’ and ‘Warehouse 4’, which were subject to a comprehensive location. situated to the south-east corner of the site by Warehouse 3. refurbishment in 2005.

8 9 DISTRIBUTION WAREHOUSE

This impressive modern facility provides a prime well specified distribution unit with ancillary offices capable of single or multiple occupation, as evidenced by the recent sublettings. The ancillary office accommodation at first and second floor level is linked, via a bridge, to the main Administration Office building.

The warehouse benefits from the following key features:

• Steel portal frame construction with profile sheet clad elevations • Eaves height ranging from 11-12.5m • 12 dock level loading bays, 2 level loading doors and a 40 kn/sq m floor loading • Solid concrete floor mezzanine structure with a clear height underneath of 5.5m • Extensive yard area

The first and second floor office accommodation is of modern specification and includes fully accessible raised, carpeted floors, suspended ceilings and four pipe fan coil air-conditioning.

ADMINISTRATION OFFICE

This flagship office building is arranged over ground and four upper floors on a rectangular floorplate. The floorplates provide open-plan accommodation and are capable of single or multiple occupation. To the north elevation, the Property has a clear double glazed curtain wall providing attractive views across Brent Reservoir and the Welsh Harp.

The building is fitted out to a high specification which includes:

• Fully accessible raised, carpeted floors • Four pipe fan coil air-conditioning • Suspended ceilings and double glazed windows • Floor to ceiling height of 2.7m • Male and female WCs • Three 10-person 800kg Kone passenger lifts

At ground floor level is a modern canteen facility known as the ‘Boathouse Café', which is available for use by all occupiers on site.

Access between the Administration Office and the ancillary offices within the Distribution Warehouse is provided by a link bridge at second floor level, which is visible upon entering the Property via Priestley Way.

10 WAREHOUSE 3

Located at the south-east corner of the site, this unit is of concrete frame construction with part brick, part blockwork elevations and solid concrete floor. The unit connects with the adjacent Warehouse 4 via two roller shutter doors .

Having been refurbished in 2005, the specification includes:

• Clear eaves height of approximately 5m • 2 level access loading doors to the west of the building • WC facilities • Partitioned office accommodation • CCTV and surveillance monitoring systems

Immediately to the south of the unit along the southern boundary of the Property is an overspill parking area, which compliments the already extensive parking provision.

WAREHOUSE 4

This unit is of concrete frame construction with part brick, part blockwork elevations and solid concrete floor.

Also subject to refurbishment in 2005, the specification includes:

• Clear eaves height of approximately 4m • 5 electric operated dock level loading doors • Partitioned offices within single storey office block to the front of the warehouse • CCTV and surveillance monitoring equipment

11 SITE AREA

The Property is situated on an extremely prominent and regular shaped site with a total site area of 3.75 Hectares (9.26 acres).

ACCOMMODATION

The Property has been measured by Plowman Craven in accordance with both the International Property Measurement Standards (IPMS 3) (Administration Office building) and the RICS Code of Measuring Practice (Sixth Edition) (Distribution Warehouse, Warehouse 3 and Warehouse 4).

The Property provides the following areas:

Building Sq m Sq ft

Administration Offices 5,163.4 55,579 (IPMS 3)* Distribution Warehouse 12,496.8 134,516 (GIA)

Warehouse 3 (GIA) 2,721.9 29,299

Warehouse 4 (GIA) 2,927.9 31,516

TOTAL 23,310 250,910

In addition there is a further 4,396 sq ft of mezzanine accommodation in the Distribution Warehouse.

*The Administration Office provides a NIA of 5,054.5 sq m [54,407 sq ft].

The Plowman Craven measured survey dated February 2016 is contained in the data room and is intended to be assignable to the Purchaser, if required.

12 ADMINISTRATION OFFICE 1ST FLOOR PLAN

STAIRWELL LIFTS AND ACCESS STAIRWELL

PRIESTLEY WAY

PRIESTLEY WAY

For indicative purposes only

DISTRIBUTION WAREHOUSE GROUND FLOOR PLAN PRIESTLEY WAY

DOCK LEVEL AND LEVEL LOADING BAY FIRST AND SECOND FLOOR OFFICES

MEZZANINE

NORTHA406 NORTH CIRCULAR CIRCULAR ROAD

For indicative purposes only 13 TENANCY INFORMATION

The entire Property is let to JVCKENWOOD UK LIMITED Demise Tenant Area (sq ft) Lease Start Lease Expiry Rent (pa) Rent (psf) Comments on three separate leases at a total rent passing of £3,395,873 per annum. Rent increases to Distribution Warehouse / JVCKENWOOD £3,152,225 on 25 190,095 29/09/2003 24/12/2025 £2,752,377 £14.48 The leases are subject to fixed rental increases equal Administration Office UK LIMITED December 2020. Outside to 2.75% per annum, compounded every five years. the L&T 1954 Act. The next rent review in the Distribution Warehouse / Rent increases JVCKENWOOD to £352,861 on 25 Administration Office and Warehouse 3 leases is on 25 Warehouse 3 29,299 29/09/2003 24/12/2025 £308,102 £10.52 December 2020. The lease on Warehouse 4 is not subject UK LIMITED December 2020. Outside to further review. the L&T 1954 Act. Rent not subject to JVCKENWOOD The Property has a weighted average unexpired lease Warehouse 4 31,516 29/09/2003 24/12/2020 £335,394 £10.64 further review. Outside UK LIMITED term of 9.33 years to expiries. the L&T 1954 Act.

TOTAL 250,910 £3,395,873 Under the terms of each lease the Tenant has an option

D r FB to renew, for either 10, 15 or 20 years (Distribution a in Warehouse/Administration Office, Warehouse 3) and for Both a Transformer Chamber adjacent to the Distribution Warehouse and a substation adjoining Warehouse 4 are held on leases. Further information held on the data room. 5,10, 15 or 20 years (Warehouse 4).

1

THE LINK

TENURE 3

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2. Distribution Warehouse W

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3. Warehouse 3

45.7m

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6 L North Circular

6 E 5 4 S Road Ordnance Survey © Crown Copyright 2016. All rights reserved. Licence number 100022432. Plotted Scale - 1:1778 SUB-TENANCY INFORMATION

A number of parts of the Property have been sub-let, as per the sub-tenancy schedule below.

Area* Schedule of Outside the Demise Tenant Start date Expiry Date Rent Review Break Dates Rent Comment (sq ft) Condition L&T 1954 Act

Administration Office

04/02/2018 04/02/2019 At review rent increases to higher of 4th Floor IIAA 10,433 04/02/2013 24/11/2025 £177,702 Yes Yes 04/02/2023 04/02/2022 £194,369 or open market rent

At review rent is greater of £172,640 Quality 24/06/2019 23/12/2018 3rd Floor 10,760 24/06/2014 24/11/2025 £172,640 Yes Yes or the passing rent multiplied by RPI Surfacing Limited 24/06/2024 23/06/2021 Multiplier

23/06/2019 2nd Floor 10,200 23/06/2014 24/11/2025 23/06/2021 £153,000 Yes Yes 23/06/2024

23/06/2019 1st Floor Casio 10,609 23/06/2014 24/11/2025 23/06/2021 £159,135 Yes Yes 23/06/2024

23/06/2019 23/06/2019 Ground Floor Casio 5,488 23/06/2014 24/11/2025 £54,885 Yes Yes 23/06/2024 23/06/2021

Distribution Warehouse

07/03/2018 review: Rent increases to 07/03/2015 GF Warehouse Vitabiotics 94,479 07/03/2012 06/03/2019 07/03/2018 £865,000 Yes Yes higher of £994,750 or open market 07/03/2017 value

04/02/2018 04/02/2019 GF Workshop IIAA 6,901 04/02/2013 24/11/2025 Included under £177,702 IIAA rent above 04/02/2023 04/02/2022

Warehouse 3

C.S. Lounge Suites Unit 3 29,225 09/07/2012 08/07/2017 N/A 09/07/2015 £182,656 Yes Yes Limited

Warehouse 4

C.S. Lounge Suites Unit 4 31,963 09/07/2012 08/07/2017 N/A 09/07/2015 £191,800 Yes Yes Limited

210,058 £1,956,818

*The areas above have been provided by the Vendor.

15 OCCUPATIONAL MARKET

Staples Corner provides a well-established commercial location which is home to a wide range of local, regional, In addition to the examples above, 50,000 sq ft at Navigation Park, Enfield is currently under offer to Camden Brewery national and global occupiers attracted by the close proximity to Central London and the excellent transport links at a rent in the region of £10-10.25 psf as well as 81,000 sq ft at 1 Western Avenue Business Park, at a rent considered across the Regions and the rest of the UK. The Property provides accommodation suitable to a diverse occupier to be £12.50 psf on the warehouse element. base, most of whom use this as their National Headquarters. The follow map demonstrates prime industrial rents for surrounding locations: Industrial Market M1(M)

Staples Corner offers occupiers a Greater London location with excellent, quick access into and across Central £9.75 psf £12.50 psf London (via the A5 and A41) and across the South East and the rest of the UK via the M1 and M25. M1 BOREHAMWOOD ENFIELD The occupier market for logistics remains strong, driven primarily by the fast growing e-commerce and third party £10.25 psf logistics businesses in an economy where occupier confidence remains positive. Much of the demand remains EDMONTON £9.00 psf focused on the big box requirements but healthy demand exists for mid-range and cross dock facilities as occupiers M1 WATFORD seek to improve distribution networks across the UK. A406 M25 M11 JVCKENWOOD UK The continued fall in the availability of Grade A space and improving headline rents in 2015 saw a notable increase M40 £13.50 psf in Build to Suit opportunities and Speculative Development particularly across the South East. Supply for industrial WEMBLEY A5 is particularly limited in the Greater London market, and for the London, South East (and East) markets availability has consistently fallen since 2013, with 2015 levels down approximately 23% on 2013 and down 3% on 2014. £14.00 psf PARK ROYAL Prime Greater London rents are generally achieved in Park Royal and Heathrow where the demand and supply £12.00 psf dynamics are most prevalent and recent lettings in Park Royal have proven headline rents of £14-14.50 psf SLOUGH M4 LONDON (+20,000 sq ft). M4 £13.75 psf LOCATION Supply constraints are expected to continue across Greater London and the South East and with a forecast of HEATHROW economic stability throughout 2016 occupier growth is expected to lead to further rental growth in the short to medium term. Staples Corner is a landmark road junction in North West London. It is located at the start of The table below demonstrates recent rental transactions in and around the Greater London area: Office MarketM3 the M1 motorway and sits at the junction of the A406 (North Circular Road), and A5, leading M25 Transaction As JVCKENWOOD UK LIMITED’s operations at the Property have transferred to Europe, recent sublettings have Address Tenant Lease Term Area (sq ft) Rent (£/psf) £12.75 psf into central London. As such, it is one of the most prominent and accessible commercial Date highlighted the strong occupational demand from high profile, international brands seeking Headquarters grade STAINES premises outside of the core London locations. Under offer - locations in North London and continues to develop as an established commercial centre Phase 2 Origin, Park Royal (Completion Wasabi 15 Years 65,000 c. £14.25 Across the Northern M25 office market 2015 showed an increase in take up with figures primarily driven by March-16) and retail location, due to its excellent transport links and diverse consumer catchment. Pharmaceutical demandA3 generally but more specifically Astrazenica's acquisition of 850,000 sq ft in . G Park Enfield (IDI Gazeley) Dec-15 Yodel 10 Years 97,952 £9.25 Outside of this, take up levels were below 5 year averages due to limited availability and options for occupiers across Classic Fine the region. Units 18 and 20, , Acton (SEGRO) Dec-15 15 Years 24,908 £14.75 Foods The M1 motorway is England’s primary north-south motorway stretching over 190 miles, In light of the above the region has experienced positive rental growth. In particular, prime rents in Watford continue Units B & C - Mowlem Trading Estate, UK Power Oct-15 15 Years 21,420 £9.50 to improve with Smith & Nephew recently acquiring 60,000 sq ftM23 on Croxley Green paying £23.25 psf. In addition, Haringey Industrial Estate, Edmonton Network connecting London with Leeds and further north via the A1 (M). The A406 is the primary ring limited supply of accommodation and ever increasing rental levels in the traditionally core office markets in the West 15 Years GATWICK Unit 1, Brompton End, Hammersmith and Chiswick, is generating improved demand across the region including Quintains, Wembley Aug-15 (Break in 85,999 £12.25 around Central London and the A5 Edgware Road provides direct access into Central Park Bike Park scheme which is seeking pre let opportunities of up to 750,000 sq ft. Year 10) London. All of these major routes converge at Staples Corner. Unit 32, Horsenden Lane Deluxe Media Availability of space is expected to decline in the South M25 markets as occupier demand continues to improve and in Jun-15 15 Years 53,958 £11.95 A24 Greenford UB6 7RL Europe Ltd the North M25 markets as a result of conversions to alternative uses. This is expected to continue as a result of the Suite DC6A/B, Stockley Road, Adelie Foods extension to Permitted Development Rights (PDR). Mar-15 15 Years 102,900 £13.00 Heathrow UB7 9BN Group Ltd Immediately east of Staples Corner, the A406 North Circular connects with the A41 Hendon Way. The A41 leads into the A501, a major arterial route 10km to the south of the Property, 16 which provides direct access to Euston and London Kings Cross St Pancras stations (two of London’s primary rail stations) immediately to the east and connects with the A5 Edgware Road, Marylebone and Paddington (the closest national rail line to the Property) to the west.

Cricklewood Railway Station (1.6 miles to the southeast) forms part of the Brighton to Bedford Thameslink Line, linking to London St Pancras International in 12 minutes. Hendon Railway Station (1.5 miles to the northwest) provides direct access to London, Wimbledon and Sutton southbound as well as St Albans and Luton northbound. Staples Corner also benefits from regular tube services from Brent Cross Underground (northern line) located approximately 1.4 miles northeast of the site.

Brent Cross Cricklewood, 1 mile to the North East of the Property, is undergoing a significant £4.5bn regeneration project, spanning a 20 year period to develop the area into a ‘world class destination’. This will see the building of 7,500 news homes, 4 million sq ft of office space, improved transport links and an extension of the Brent Cross shopping centre.

Distance By RoadKm Miles

Central London 9.65 6

M25 / M1 Motorway Junction 24.14 15

London Heathrow Airport 25.75 16

London Luton Airport 43.4527

London Stansted Airport 61.10 38

Leeds 303 188

Manchester 310 193

Birmingham 180 111 INVESTMENT MARKET

The graph below demonstrates some of the current prime office rental levels in nearby locations: Despite the UK rate of economic growth slowing over 2015, economic activity is expected to remain firm in the long term with average growth of 2.5% per year forecast over the decade to 2025. Prime Office Rents / psf The market faced continued downward pressure on initial yields in 2015 as improved occupier markets demonstrated positive rental growth, driving investor returns. £80.00 The investment market is set for continued stability through 2016 driven by the continued traditional demand for prime assets from the £70.00 UK Institutions and increased appetite from overseas investors.

£60.00 The greatest demand for office and industrial investment opportunities remains in the Greater London and South East markets but £50.00 investor demand remains for core regional geographies.

£40.00 Industrial Investment Commentary

£30.00 Greater London logistics opportunities have been, and are currently, extremely rare and as such benchmark yields exist in the core £20.00 locations such as Park Royal and Heathrow with land constraints, greatest occupier demand and strongest rental growth prospects.

£10.00 UK institutions, overseas investors and property companies looking to grow logistics platforms have been the most active in these sectors with prime yields of circa 4% achieved. £0.00 Cambridge Chiswick Hammersmith London London (Paddington) (King’s Cross) In September 2015 Eyre Estate paid £17.14m for the GeoPost, asset which was let on a new 25 year lease reflecting 4.17% and CBREGI recently acquired the Rygor Commercials unit in Bedfont, with a lease term of 14.8 years remaining, paying 4.78%. Retail Warehouse Market A number of recent transactions are set out below: Proximity of Staples Corner to the North Circular, M1, A41 and Brent Cross has attracted household retail warehouse operators including Maplin at Staples Corner and B&Q along the A5 Unexpired Cap Val Property Date Size (sq ft) Price NIY (%) Purchaser at Cricklewood. Prime rents for good quality, prominent retail warehouse space have recently Lease Term (£ per sq ft) achieved in excess of £30 psf. Allport Cargo Services, Hayes Dec-15 11 years 105,000 £21,900,000 4.90% £209 SEGRO CBRE Global Residential Market XPO Logistics, Maidstone Dec-15 5 years 77,841 £6,930,000 6.09% £89 Investors A number of residential schemes are underway in the vicinity of Staples Corner, the most relevant CBRE Global Rygor Commercials, Bedfont Oct-15 14.8 years 22,312 £6,180,000 4.78% £277 being the residential phase of Brent Cross Cricklewood, which will see the development of 7,500 Investors new homes. Within this scheme, capital values are expected to achieve in the region of £700 psf. Geopost, Dagenham Sep-15 25 years 65,746 £17,140,000 4.17% £261 Eyre Estate

Barratt Homes are in the process of developing Hendon Waterside in , approximately Office Investment Commentary 0.75 miles to the north of the Property, where thirty acres of land are being developed to provide 2,171 new homes. The latest phase, ‘Vista’, is set for completion in May 2016 and already 204 of For the office investment market, investor sentiment has remained strong throughout 2015 across the South East with the Thames the 216 plots have been sold, where sales values have achieved up to £790 psf. Valley, South M25 and West London markets all recording high investment transactions volumes. Most notable transactions include AEW Europe’s £325m purchase of Bath Road, Slough and M&Gs £167m purchase of Bedfont Lakes, Heathrow. Other nearby pipeline developments include St George’s scheme at Beauford Park, Collindale (approximately 2.5 miles due north of the Property), where sales values have reached in excess of Transactions volumes for 2015 across the South East have increased by 31% on the previous year. The North M25 region recorded the £700 psf. highest 2015 increase with £266m transacted, an increase of 81% on 2014. Of note includes the £33.50m purchase of Skanska UK’s Headquarters at Maple Cross by a Private Middle Eastern Investor in November.

With demand continuing for office stock from an increasingly diverse investor base and continued downward pressure on prime yields, (West London yields of 4.40% and Thames Valley yields of 5.10%) investors are looking beyond core locations where occupational demand exists, along with positive market dynamics which support rental growth in the medium to long term.

17 COVENANT INFORMATION SUB-TENANCY COVENANT INFORMATION

The Property benefits from attractive income diversification with sub tenancy income accounting for approximately 58% of the annual rent. A brief summary of the sub tenants is set out below:

JVCKENWOOD UK LIMITED (company registration number 03537298)

JVCKENWOOD UK LIMITED is the UK arm of a multinational Vitabiotics Limited - established in 1971, Vitabiotics has Stanmore Quality Surfacing Limited - established in 1995 and electronics company headquarters in Yokohama, manufactured innovative healthcare products for over 40 years and Headquartered at The Property, Stanmore Quality Surfacing Limited and was formed as a result of the 2008 merger of JVC and in 2013 became the UK’s No.1 vitamin supplement company (source: provides reinstatement and highway maintenance services to a wide . IRI value sales 52 w/e 20 April 2013). Headquartered a short distance range of clients including the three main utilities, local authorities, from the Property on the A406 North Circular, the company has highways agencies and the private sector. Key clients include UK Both businesses have well established, successful created a large portfolio of products at the forefront of scientific Power Networks, Amey, Skanska and Thames Water. global brands with JVC dating back to 1927 and Kenwood developments with well-known brands such as Wellman, Wellwoman, originating from 1946. JVCKENWOOD UK LIMITED now Jointace and Immunace. The company has a Dun & Bradstreet rating of 2A1, which represents promotes itself under one brand and with three specific a minimum risk of business failure. The sublease to Stanmore divisions of Automotive, Public Services and Media Services The Property is utilised as Vitabiotics global distribution unit, which accounts for 5% of the total rent pa. focusing on car and home electronics, wireless systems, also utilises the Amazon SARL supply chain. CCTV and Radio Equipment. Further information can be found at www.sqsltd.co.uk The company has a Dun & Bradstreet rating of 5A1 which represents JVCKENWOOD UK LIMITED products are seen in many a minimum risk of business failure. The sublease to Vitabiotics everyday automotive and home devices and it has also accounts for 25% of the total rent pa. recently extended its contract with McLaren Mercedes to IIAA Limited - International Institute for Anti-Ageing was established provide the F1 Team with Digital Radio systems, a contract Further information can be found at www.vitabiotics.com in 1994 and is Headquartered at The Property. IIAA is a leading they have held since 1991. The company has also recently provider of education, services and products to the professional celebrated a successful 10 year relationship with Garmin beauty industry and supplies thousands of salons around the UK and which began combining navigation systems into integrated Ireland with three major brands: Environ®; Jane Iredale®; and the car mounted AV systems. This working relationship will Casio Electronics Co Limited - established in 1957 and Advanced Nutrition Programme®. be further enhanced by the release, later this year, of a Headquartered at the Property, Casio is the UK subsidiary of new model which supports Apple and Android products to Tokyo based Casio Computers Co Ltd, a multinational electronics The company, has a Dun & Bradstreet rating of 2A3. The sublease to improve Digital Cockpit Systems for a global marketplace. manufacturing company. Casio is one of the leading consumer IIAA accounts for 5% of the total rent pa. electronics companies in the world. It's activities comprise the JVCKENWOOD UK LIMITED is Headquartered at the importing, sale and distribution of a wide range of products including Further information can be found at www.iiaa.eu Property and distributes consumer electronic products calculators, mobile phones, cameras, musical instruments and throughout the UK, Channel Islands, Isle of Man and watches. Republic of Ireland. The company has a Dun and Bradstreet rating of 3A1, which CSL Limited - Trading as Sofology since the beginning of 2016, the The company has a Dun & Bradstreet rating of 2A1, which represents a minimum risk of business failure. The sublease to Casio business was established in 1983 and is a family owned retailer of represents a minimum risk of business failure. Electronics Co Limited accounts for 11% of the total rent. furniture and lighting. Headquartered in Golborne, Warrington, the company operates through 31 retail stores and 6 distribution centres Further information can be found at www.jvckenwood.com Further information can be found at www.casio.co.uk across the UK. The nearest showroom is located at Brent Cross Retail Park to the east of the Property.

OVER 40% OF THE INCOME IS SECURED AGAINST SUB The company has a Dun & Bradstreet rating of O 4. The sublease to TENANTS THAT HAVE BEEN ASCRIBED A MINIMUM RISK CSL accounts for 11% of the total rent pa. OF BUSINESS FAILURE Further information can be found at www.sofology.co.uk

18 EPCs PROPOSAL

Energy Performance Certificates are available for each building and provide EPC ratings ranging We are instructed to seek offers in excess of £53,495,000 (Fifty Three Million, Four Hundred and Ninety Five from C (61) to D (99). Further information including recommendation reports are contained in the Thousand Pounds), subject to contract and exclusive of VAT which equates to a Capital Value of £213 psf. data room. A purchase at this level reflects a Net Initial Yield of 6.00% assuming standard purchaser's costs of 5.80%.

ENVIRONMENTAL INVESTMENT RATIONALE WSP have undertaken a Phase 1 Environmental Survey dated February 2016 which is capable of being assignable to the Purchaser. • Prominently located landmark Greater London location • Unrivalled situation adjacent to major UK transport links Further information is available on request. • Modern well specified industrial and office buildings • Fully let and benefits from a WAULT of 9.33 years to expiries • Income risk diversified as a result of sub lettings accounting for 58% of the total income VAT • Ongoing £4.5bn regeneration project adjacent to the Property at Brent Cross Cricklewood

• High diversity of income across the four buildings The Property is elected for VAT purposes and therefore is capable of being treated as a Transfer of Going Concern (TOGC). • Range of surrounding uses with potential to add value through change of use, subject to the usual planning consents

CAPITAL ALLOWANCES CONTACT Capital Allowances can be made available as part of the purchase. Further information available on request. For further information, to arrange an inspection, or for access to the data room, please contact one of the following:

Jason Winfield Charles Howard James Clarke DATA ROOM [email protected] [email protected] [email protected] 020 7152 5920 020 7152 5364 020 7152 5356 An electronic data room has been created containing relevant Title, Lease, Sublease and Pre 07768 695 126 07810 631 409 07860 593 670 Marketing Due Diligence information. Please contact Cushman and Wakefield to arrange access.

43/45 Portman Square, London, W1H 6LY

MISREPRESENTATION CLAUSE Cushman & Wakefield gives notice to anyone who may read these particulars as follows: 1. These particulars are prepared for the guidance only of prospective purchasers. They are intended to give a fair overall description of the property but are not intended to constitute part of an offer or contract. 2. Any information contained herein (whether in the text, plans or photographs) is given in good faith but should not be relied upon as being a statement or representation of fact. 3. Nothing in these particulars shall be deemed to be a statement that the property is in good condition or otherwise nor that any services or facilities are in good working order. 4. The photographs appearing in this brochure show only certain parts and aspects of the property at the time when the photographs were taken. Certain aspects may have changed since the photographs were taken and it should not be assumed that the property remains precisely as displayed in the photographs. Furthermore no assumptions should be made in respect of parts of the property which are not shown in the photographs. 5. Any areas, measurements or distances referred to herein are approximate only. 6. Where there is reference in these particulars to the fact that alterations have been carried out or that a particular use is made of any part of the property this is not intended to be a statement that any necessary planning, building regulations or other consents have been obtained and these matters must be verified by any intending purchaser. 7. Descriptions of a property are inevitably subjective and the descriptions contained herein are used in good faith as an opinion and not by way of statement of fact. The particulars were prepared in March 2016.

04671 / 020 7355 2500 / taylerreid.co.uk

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