XL VIDEO LTD 2 EASTMAN WAY, HEMEL HEMPSTEAD HP2 7DU MODERN SELF-CONTAINED SOUTH EAST WAREHOUSE/DISTRIBUTION INVESTMENT

XL VIDEO LTD 2 EASTMAN WAY, HEMEL HEMPSTEAD HP2 7DU MODERN SELF-CONTAINED SOUTH EAST WAREHOUSE/DISTRIBUTION INVESTMENT

Investment Summary Modern well-specified industrial/ distribution unit Situated on the established Maylands Business Park, close to J8 of the Self-contained site with secure yard Let to XL Video Ltd until 7 December 2018, providing 5.25 years unexpired Currently producing 345,000 per annum, reflecting 8.35 per sq ft ( 89.93 per sq m) Freehold The property comprises a gross internal area of 41,292 sq ft (3,836.1 sq m) Seeking offers of 3,525,000 (Three Million Five Hundred and Twenty Five Thousand Pounds), subject to contract, which reflects an attractive net initial yield of 9.25% after purchaser s costs of 5.80%, and a gross capital value of 90.32 per sq ft.

1 1 Birmingham Rugby A4146 LEIGHTON BUZZARD ROAD Swindon LIN K ROAD Banbury Didcot A34 M40 Oxford Northampton Milton Keynes Aylesbury Reading M40 XL VIDEO LTD QUEEN SWAY A41 47 B487 M4 Kettering A6 Luton High Wycombe Bedford Hemel Hampstead REDBOU RN ROAD REDBOURN ROAD SWALLO W Property DALE LN Heathrow BOUNDARY WAY B487 A1 A1 A1(M) A1(M) A12 Watford Stevenage M25 London Cambridge 1 Bishop's Stortford M25 A12 A127 Location Hemel Hempstead is an established South East centre, located approximately 37km (23 miles) north west of Central London. The town is strategically located adjacent to J8 of the and lies between Luton, 15km (9.5 miles) to the north, Watford, 10km (6.5 miles) to the south, and St Albans, 9km (6 miles) to the east. The town has a district population of 137,799, with a total catchment of 211,586 within 10km (6.5 miles). The socioeconomic profile puts Hemel Hempstead ahead of the national average in terms of ABC1 composition, with 59.8% in these groupings against 51.1% nationally. Hemel Hempstead benefits from excellent connectivity, with the intersecting with the M25 at J21, approximately 6km (4 miles) to the south-east of the town centre. The A41 runs to the west of the town, providing direct access to the M25 at J20 to the south east and to Aylesbury and the M40 to the north west. Hemel Hempstead railway station offers direct services to London Euston with a fastest journey time of 26 minutes. For air travel, Luton International Airport is located approximately 15km (9.5 miles) to the north and Heathrow International Airport lies approximately 32km (20 miles) to the south. Major employers in the town include Epson, Dixons Retail, ASOS, Britvic, BP and HSBC. Directly to the east of the site are a number of residential dwellings running along the B487, which forms the northern border of the site, with further residential developments located on the northern side of the road. Local occupiers on Eastman Way include Next, Balfour Beatty, Microlin Cooper, Euro Car Parts, Cadogan Tate and Atlas Copco. A 414 ST ALBANS ROAD Maylands Luton Milton Keynes & The North RN ROAD Business ntre h View Gas Valve Compound 2 129.2m Ward Bdy Hemel Hempstead Town Centre BREAKSPEAR WAY A4147 HEMEL HEMPSTEAD ROAD BEDMOND ROAD London & M25 J21 J8 Situation The subject property is situated on the established Maylands Business Park, one of the largest business parks in the UK. The park extends to approximately 250 acres and is home to over 700 businesses, attracted by the proximity to J8 of the and J21 of the M25. Hemel Hempstead railway station is located approximately 5km (3 miles) to the south west. Maylands Business Industrial Centre 10 to 18 12 Hemel Hempstead Industrial Estate The Nickey Line (Path) 9 2 The property is accessed via Eastman Way, which leads north from the A4147 Swallowdale Lane. Eastman Way is an established industrial location with a mixture of detached, self-contained units and terraced units of varying sizes. The property is located at the end of Eastman Way and is surrounded by further industrial units to the west and south. 0m 10m 20m 30m El Sub Sta 6 8 Heron Business Park 12 Gas Govn 10 Ordnance Survey Crown Copyright 2013. All rights reserved.

Description The property comprises a self-contained modern detached warehouse unit with a secure yard. The property is of steel portal frame construction with a mixture of brick and profiled metal sheet clad elevations. Internally the property benefits from a minimum eaves height of 6.45m rising to 7.1m at the pitch, concrete screed floor and 15% roof lights. The internal offices are arranged over ground and first floors and benefit from a dedicated reception area, male & female WCs, staff canteen and meeting rooms to the ground floor, with open plan and partitioned offices to the first floor. The tenant has installed two mezzanines to the warehouse to create additional offices and storage which are covered by a Licence to Alter and are to be reinstated on expiry. Externally the property benefits from a secure yard to the front of the property together with a dedicated car parking area with marked spaces for 60 cars. Loading is by way of three 5m loading doors together with three 2.5m dock levellers, all of which are equipped with roller shutters. Accommodation The property has been measured in accordance with the RICS Code of Measuring Practice (6th edition) and provides the following gross internal floor area: Floor - Use Sq M Sq Ft Ground Warehouse 3,151.8 33,926 Ground Offices 344.7 3,710 First Offices 339.6 3,656 Total 3,836.1 41,292 Site The site extends to an area of 2.508 acres (1.015 hectares), providing a low site cover ratio of 38%.

Planning We understand that the property benefits from B1 & B8 consent and is zoned as a general employment site under the Dacorum Borough Council Local Plan adopted April 2004. Tenure Freehold. Covenant XL Video Ltd (Company Registration No. 03905302) is an award-winning provider of video equipment and services to concert touring, theatre, indoor/outdoor events and television productions throughout the UK and Europe. The company is part of XL Holding which offers the same wide range of services and equipment to productions across the globe. XL Video Ltd last 3 years audited accounts are as follows: Tenancy The property is let to XL Video Ltd on full repairing and insuring terms from 8 December 2006 until 7 December 2018 at a rent of 345,000 per annum, reflecting 8.35 per sq ft ( 89.94 sq m). The lease is subject to three-yearly upwards-only rent reviews, with the next review due in December 2015. XL Video Ltd Year Ending Turnover Pre-tax Profit Shareholder Funds 31/10/2012 21,593,000 944,000 4,351,000 31/10/2011 25,991,000 1,551,000 3,894,000 31/10/2010 24,963,000 268,000 2,880,000

Market Commentary The Hemel Hempstead industrial market remains active with take up during the first six months of 2013 of over 107,500 sq ft, compared with 151,000 sq ft in 2012. This figure is driven predominantly by demand for well-specified units on Maylands due to its position close to Junction 8 of the, offering good access to the national motorway network and Greater London. Maylands is the dominant industrial/distribution location within the Hemel Hempstead catchment and continues to attract new occupiers, with Majestic Wine having recently relocated from Otterspool Way, Watford, to take a 63,175 sq ft unit at Hemel Gateway at a rent reflecting 7.50 per sq ft. The most recent letting on Eastman Way saw NBM take 10,000 sq ft at Unit 1, signing a 10 year lease at a rent reflecting 7.75 per sq ft. There remains a shortage of good quality units in the 20,000 sq ft to 60,000 sq ft size bracket, and there are currently no speculative schemes under construction which would satisfy demand. As such the market is well-positioned to offer prime rental growth in the short term as the industrial and distribution sectors of the economy continue to recover and develop. The subject property currently produces a net rent of 345,000 per annum, reflecting a rent of 8.35 per sq ft ( 89.94 per sq m). EPC The property has an EPC rating of 59 (C). VAT The property has been elected for VAT.

Proposal We are seeking offers of 3,525,000 (Three Million Five Hundred and Twenty Five Thousand Pounds), subject to contract, which reflects an attractive net initial yield of 9.25% after purchaser s costs of 5.80%, and a gross capital value of 90.32 per sq ft. Contact For further information and appointment to inspect please contact:- Stephen Parry-Jones T: 020 7198 2233 M: 07771 388262 sparryjones@lsh.co.uk Nathan Ball T: 020 7198 2129 M: 07720 084869 nball@lsh.co.uk Claire Madden T: 01727 896 232 M: 07803 245 013 cmadden@lsh.co.uk Additional information on the property can be obtained from: www.lshinvestmentsales.co.uk United Kingdom House 180 Oxford Street London W1D 1NN MISREPRESENTATION CLAUSE Lambert Smith Hampton Group Limited and its subsidiaries and their joint agents if any ( LSH ) for themselves and for the seller or landlord of the property whose agents they are give notice that: (i) These particulars are given and any statement about the property is made without responsibility on the part of LSH or the seller or landlord and do not constitute the whole or any part of an offer or contract. (ii) Any description, dimension, distance or area given or any reference made to condition, working order or availability of services or facilities, fixtures or fittings, any guarantee or warrantee or statutory or any other permission, approval or reference to suitability for use or occupation, photograph, plan, drawing, aspect or financial or investment information or tenancy and title details or any other information set out in these particulars or otherwise provided shall not be relied on as statements or representations of fact or at all and any prospective buyer or tenant must satisfy themselves by inspection or otherwise as to the accuracy of all information or suitability of the property. (iii) No employee of LSH has any authority to make or give any representation or warranty arising from these particulars or otherwise or enter into any contract whatsoever in relation to the property in respect of any prospective purchase or letting including in respect of any re-sale potential or value or at all. (iv) Price or rent may be subject to VAT and any prospective buyer or tenant must satisfy themselves concerning the correct VAT position. (v) Except in respect of death or personal injury caused by the negligence of LSH or its employees or agents, LSH will not be liable, whether in negligence or otherwise howsoever, for any loss arising from the use of these particulars or any information provided in respect of the property save to the extent that any statement or information has been made or given fraudulently by LSH. (vi) In the case of new development or refurbishment prospective buyers or tenants should not rely on any artists impressions or architects drawings or specification or scope of works or amenities, infrastructure or services or information concerning views, character or appearance and timing concerning availability or occupation and prospective buyers or tenants must take legal advice to ensure that any expectations they may have are provided for direct with the seller or landlord and LSH shall have no liability whatsoever concerning any variation or discrepancy in connection with such matters. September 2013. Produced By: Barbican Studio 020 7634 9574