SECURE 15 YR INCOME PARK ROYAL UNIT 1, SOVEREIGN PARK ESTATE, CORONATION ROAD, LONDON NW10 7QP

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1 SECURE 15 YR INCOME PARK ROYAL UNIT 1, SOVEREIGN PARK ESTATE, CORONATION ROAD, LONDON NW10 7QP PRIME INVESTMENT OPPORTUNITY REVERSIONARY FREEHOLD INDUSTRIAL WAREHOUSE INVESTMENT

3 Investment Summary Prime warehouse unit in Park Royal, the most significant industrial area in Inner London. Self-contained unit measuring approximately 38,698 sq ft (3,595.2 sq m) GIA. Site area of approximately 1.23 acres. Occupied by international auctioneering firm Bonhams. Entirely let to Bonhams 1793 Ltd on a 15 year lease from 23 December 2013 (14.5 years unexpired). Low passing rent of 300,000 per annum reflecting 7.60 psf, with 5 yearly open market rent reviews. Estimated Rental Value of approximately 387,000 per annum ( 10 psf). Lease contracted outside of the protection of the L&T 1954 Act. Freehold. Offers in excess of 6,400,000 (Six Million, Four Hundred Thousand Pounds). This reflects a net initial yield of 4.43% and a reversionary yield in 2018 of 5.72% based on the Cushman & Wakefield ERV. A low capital value of 165 psf.

LOCATION Located in Park Royal, approximately 6 miles west of Central London and near the junction of the A40 and A406 (North Circular), the area has excellent transport links.

The A40 provides links directly with the M40 (Junction 1) approximately 12 miles to the west.

4 LOCATION Located in Park Royal, approximately 6 miles west of Central London and near the junction of the A40 and A406 (North Circular), the area has excellent transport links. The A406 provides direct access to the M4 (Junction 1) approximately 3.5 miles to the south and the M1 (Junction 1) 4 miles to the north. The A40 provides links directly with the M40 (Junction 1) approximately 12 miles to the west. Park Royal has excellent public transport links with a number of London Underground stations within walking distance including Alperton (Piccadilly Line), Hanger Lane (Central Line) and Stonebridge Park (Bakerloo Line). The proposed HS2 and Crossrail schemes will greatly benefit the area in terms of its national connectivity. Old Oak Common, which is to lie on the eastern edge of Park Royal, will act as the only open line station between Euston and Birmingham via HS2. Access to London will be improved through the Crossrail Acton Main Line Station on the south edge of Park Royal, which will place the area within one stop of London Paddington. Heathrow Airport is approximately 11 miles to the south-west. SITUATION The property is situated on the corner of Sovereign Park and Coronation Road, with excellent road frontage to Britannia Way. The unit occupies a prominent position on the south side of the road, sitting directly opposite Matrix Park. Park Royal is the largest and most significant industrial and business park in London covering approximately 1,200 acres, with over 1,900 businesses employing approximately 40,000 people. Sovereign Park is on the west side of Park Royal with Western Avenue (A40) to the south. Nearby occupiers include Bakkavor Foods, Asda, DHL, CEVA, McVitie s and Renault Trucks. SITE The unit s demise extends to approximately 1.23 acres. Unit 1 Sovereign Park Estate Unit 1 Sovereign Park Estate These plans are published for convenience of identification. Any boundaries shown are indicative only and should be checked against the Title Deeds. The plans are based upon Ordnance Survey Map with the permission of the Controller of H M Stationery Crown Copyright.

16 13 15 9-12 20 6 17 19 1 7 Buildings/Sites Subject

Aura 40 18 Royal Leisure Park 19 Matrix Park 20 Premier

E) N AVENU R E T S E A40 (W Industrial Occupiers 1

Bakkavor 7 FedEx 8 Royal Mail 9 Fulton 10 DHL 11 Kuehne

5 Buildings/Sites Subject Property PARK ROYAL 15 Thunder & Lightning 16 Origin 17 Aura Royal Leisure Park 19 Matrix Park 20 Premier Park 21 Western Avenue Business Centre 22 Vue Cinemas E) N AVENU R E T S E A40 (W Industrial Occupiers 1 McVitie s 2 LH2 Studios 3 Red Box 4 Wasabi 5 Panalux 6 Bakkavor 7 FedEx 8 Royal Mail 9 Fulton 10 DHL 11 Kuehne + Nagel 12 Brakes 13 D-Link 14 John Lewis

The offices are located at ground and first floor levels. There is a permanent mezzanine within the warehouse and two temporary mezzanines.

6 DESCRIPTION The property is a modern, detached warehouse unit of steel frame construction with brick elevations and a part glazed frontage. The unit comprises approximately 38,698 sq ft GIA of warehouse and ancillary office accommodation, with the office component accounting for approximately 11.9%. The offices are located at ground and first floor levels. There is a permanent mezzanine within the warehouse and two temporary mezzanines. To the front of the property is a brick-paved parking area with space for 25 cars and there is a yard area to the rear for deliveries. The main warehouse area comprises a large single-apex frame with an eaves height of approximately The unit comprises approximately 38,698 sq ft GIA of warehouse and ancillary office accommodation, with the office component accounting for approximately 11.9% 6.1m, with concrete floors, corrugated roofing panels and roof lights. There are two roller shutter doors to the rear and one to the front providing access for deliveries. Bonhams use the premises as their main storage facility for auction lots both prior and post auction in their Knightsbridge and New Bond Street auction houses. The tenant also uses the unit for the purposes of catalogue photography prior to lots being auctioned. ACCOMMODATION The property has been measured on a Gross Internal Area basis in accordance with the RICS Code of Measuring Practice (6th Edition). From this we calculate the approximate gross internal areas as follows: FLOOR DESCRIPTION SIZE (SQ M) SIZE (SQ FT) Ground Floor Warehouse 2, ,192 Ground Floor Offices ,505 First Floor Office ,570 First Floor Warehouse (Permanent Mezzanine) ,431 Total 3, ,698 The above areas include the permanent mezzanine level, which has been stated separately from the main ground and first floor office space levels as the area it provides has a reduced eaves height. The areas do not include the two temporary mezzanines which are also in place.

BONHAMS PARK ROYAL OCCUPATIONAL MARKET The Park Royal area has seen sustained tenant demand and low vacancy rates over the past five years, defying the economic uncertainties of other industrial

Headline rents in Park Royal have recently been set at 13.75 per sq ft by the letting of Segro s 11,111 sq ft unit on Central Park to Headline rents are now at 13.75 per sq ft Kinetic Enterprises.

The lack of supply and strong tenant demand has resulted in a number of speculative developments being undertaken, including Segro s Premier Park and Canmoor s Vision Park.

In arriving at our ERV of 387,000 per annum, we have applied 10.75 psf to the warehouse and office spaces, 6.

DATE ADDRESS TENANT SIZE (SQ FT) RENT (PSF) LEASE Mar 2014 Unit 1, Central Park Acton Lane Kinetic Enterprises 11,111 13.75 10 years Dec 2013 Unit 7, Central Park Acton Lane Christies 32,968 13.

7 BONHAMS PARK ROYAL OCCUPATIONAL MARKET The Park Royal area has seen sustained tenant demand and low vacancy rates over the past five years, defying the economic uncertainties of other industrial markets. The largest share of a growing occupational take-up level over this period has been in the 25,000 50,000 sq ft bracket, accounting for almost a quarter of all space. Headline rents in Park Royal have recently been set at per sq ft by the letting of Segro s 11,111 sq ft unit on Central Park to Headline rents are now at per sq ft Kinetic Enterprises. There has also been a reduction in the level of incentives being offered to tenants for the more prime stock, which is indicative of the tight market supply. The lack of supply and strong tenant demand has resulted in a number of speculative developments being undertaken, including Segro s Premier Park and Canmoor s Vision Park. Summary of recent lettings: ESTIMATED RENTAL VALUE We are of the opinion that the Estimated Rental Value of the unit is in the region of psf. In arriving at our ERV of 387,000 per annum, we have applied psf to the warehouse and office spaces, 6.25 psf to the permanent mezzanine on the first floor and we have not rentalised the temporary mezzanine floor. DATE ADDRESS TENANT SIZE (SQ FT) RENT (PSF) LEASE Mar 2014 Unit 1, Central Park Acton Lane Kinetic Enterprises 11, years Dec 2013 Unit 7, Central Park Acton Lane Christies 32, years Break at Year 6 Oct 2013 Unit A Premier Park Road Ward Thomas Ltd 41, (asking) 10 years May 2013 Unit C Premier Park Road DHL Ltd 61, years Break at Year 5 Land Values in Park Royal: Land values in Park Royal have also held up well over the past few years. An example of this is the acquisition of the Former Carey Site by Goya Developments for a price of 1.75m per acre. The 6.5 acre site has since witnessed development into Central Park. This transaction was in 2011 and as such values will most certainly have risen since, given the growing occupier and tenant demand.

8 Investment Market Investor demand has focused on particular areas of Greater London such as Park Royal, due to the pressure on land supply and the loss of employment land to alternative uses. Park Royal has consistently attracted strong investor interest with premium yield levels being achieved. The industrial investment market has witnessed a significant market improvement over the past 18 months. Recent transactional evidence includes the following: DATE ADDRESS TENANT PRICE NIY Under Offer Mar 2014 Dec 2013 Dec 2012 Jul 2012 Oct 2011 Units 1-6, Stour Road, Bow E3 2NT Jewsons, 33 Manor Farm Way, Alperton, Wembley HA0 1AB The Royals, 55 Victoria Road, Park Royal NW10 6ND 40 Cumberland Avenue, Park Royal, London NW10 7RQ Units 1-4, Minerva Road NW10 6HJ Central Way, Park Royal NW10 7XN 6 Units, 4 Local Tenants CAP VAL (PSF) RENT (PSF) UNEXPIRED TERM (YEARS) 1.825m 4.94% Jewsons 4.114m 4.25% EE Ltd 4.359m 6% Bakkavor Foods Ltd 10.95m 5.9% Speedy Hire 5.69m 6.3% Matthew Clarke Wholesale Ltd 13.85m 5.65%

TENURE The property is held freehold. TENANCY The property is let to Bonhams 1793 Ltd (Co No: 04326560) on a 15 year lease from 23 December 2013.

The lease incorporates 5-yearly upwards only, open market rent reviews. The lease has been contracted outside of the protection of the L&T 1954 Act.

10 TENURE The property is held freehold. TENANCY The property is let to Bonhams 1793 Ltd (Co No: ) on a 15 year lease from 23 December The passing rent is 300,000 per annum reflecting Low passing rent of 7.60 psf a low rate of 7.60 psf (excluding the temporary mezzanine which has not been rentalised). The lease incorporates 5-yearly upwards only, open market rent reviews. The lease has been contracted outside of the protection of the L&T 1954 Act. TENANT COVENANT Bonhams is a privately owned British auction house and one of the world s oldest and largest auctioneers of fine art and antiques. It was formed by the merger in November 2001 of Bonhams & Brooks and Phillips Son & Neale. The Bonhams name is recognised worldwide throughout all sectors of the fine art, antiques and collectors market, with several of its departments established as world leaders within their specialist category. Today Bonhams offers more sales than any of its rivals. There are two large salerooms in London: the recently developed Bonhams founded in 1793 sale rooms at 101 New Bond Street and the long established Bonhams sale rooms at the Montpelier Galleries in Montpelier Street, Knightsbridge. There are also two regional sale rooms in Britain: Edinburgh and Oxford. Sales are also held in San Francisco, Los Angeles, New York and Boston in the USA; in France, Germany, Monaco, Hong Kong and Australia. The property is leased directly to Bonhams 1793 Ltd (Co No: ) who have published the following financial accounts: 31ST DEC 2013 ( ) 31ST DEC 2012 ( ) 31ST DEC 2011 ( ) Revenue 79,102,000 67,281,281 73,679,007 Pre-Tax Profit 19,366,000 12,341,324 16,015,595

CAPITAL ALLOWANCES There are no transferable plant and machinery capital allowances available to the purchaser as these are to be retained by the vendor.

11 BONHAMS PARK ROYAL INVESTMENT RATIONALE Highly reversionary lease with excellent growth potential. Prime industrial location of Park Royal. High profile tenant. Low capital value per sq ft of years unexpired to Bonhams. EPC RATING The EPC rating for the property is C. CAPITAL ALLOWANCES There are no transferable plant and machinery capital allowances available to the purchaser as these are to be retained by the vendor. VAT We understand this property has been elected for VAT which will therefore be chargeable on the sale price unless the transaction can be treated as a Transfer of a Going Concern (TOGC). PROPOSAL We are instructed to seek offers in excess of 6,400,000 (Six Million, Four Hundred Thousand Pounds). This reflects a net initial yield of 4.43% and a reversionary yield of 5.72% after allowing for purchaser s costs. A purchase at this price also reflects a low capital value of 165 psf. WEB ACCESS PLANT & MACHINERY None of the systems or equipment in the property have been tested by Cushman & Wakefield LLP and a prospective purchaser may wish to make their own investigations to check that they are in working order.

12 FURTHER INFORMATION: MIKE BURDEN Tel: CUSHMAN & WAKEFIELD LLP 43/45 Portman Square London W1A 3BG KYLE JOSS Tel: SAM HARPER Tel: March 2014 CUSHMAN & WAKEFIELD LLP 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. Photography, Print & Production by Plus Art Ltd

MODERN GREATER LONDON MULTI-LET INDUSTRIAL INVESTMENT OPPORTUNITY. PARK ROYAL INDUSTRIAL CENTRE Units A1-A12, Eldon Way, London NW10 7QQ

MODERN GREATER LONDON MULTI-LET INDUSTRIAL INVESTMENT OPPORTUNITY PARK ROYAL INDUSTRIAL CENTRE Units A1-A12, Eldon Way, London NW10 7QQ Investment Summary Greater London location Situated on the established