BARNWOOD CLOSE, LONDON, W9 SECURE REVERSIONARY GROUND LEASE INVESTMENT OPPORTUNITY

BARNWOOD CLOSE, LONDON, W9 SECURE REVERSIONARY GROUND LEASE INVESTMENT OPPORTUNITY

2 I AMBERLEY WHARF, BARNWOOD CLOSE, LONDON, W9 Secure ground rent investment providing over 73 years of income from Westminster City Council INVESTMENT SUMMARY > Rare opportunity to purchase a new lease of over 73 years secured against Westminster City Council > 2.75 acre site comprising seven blocks of flats and a Public House > Situated on the northern side of the iconic Grand Union Canal in the picturesque neighbourhood of Little Venice in the heart of West London > Excellent transport links from Warwick Avenue, Royal Oak and Paddington, providing fast and easy access across London, to Heathrow and the rest of the UK > The purchaser will receive the current rent passing of 307,500 per annum until June 2091, with additionally the opportunity to share with Canal & River Trust in the upside at the next rent review in December 2041 > The next rent review is favourably linked to industrial land values > Highly reversionary with a current ERV of 550,000 per annum with significant rental growth prospects Offers in excess of 7,200,000 (Seven Million Two Hundred Thousand Pounds) are invited, subject to contract and exclusive of VAT, which reflects a net initial yield of 4.00%.

AMBERLEY WHARF, BARNWOOD CLOSE, LONDON, W9 THE CITY CANARY WHARF THE SHARD BT TOWER OXFORD CIRCUS MAYFAIR REGENTS PARK HYDE PARK MARYLEBONE MERCHANT SQUARE PADDINGTON STATION PADDINGTON CENTRAL LITTLE VENICE WARWICK AVENUE ROYAL OAK AMBERLEY WHARF BARNWOOD CLOSE, LONDON, W9 I 3

AMBERLEY WHARF, BARNWOOD CLOSE, LONDON, W9 I 4 LOCATION Amberley Wharf is situated in West London, within the London Borough of Westminster and in the picturesque waterside village of Little Venice, where the Grand Union and Regent s Canal meet. It is home to a number of water fronted cafés, pubs and restaurants within a high end historic residential district. The area is characterised by leafy avenues, attractive garden squares, stunning period architecture and boutique retail and leisure amenities. The property is located in one of London s most exciting districts, between the world renowned mixed use campus of Paddington, the chic and fashionable villages of Maida Vale and Notting Hill, and the cutting-edge areas of Portobello Road and Westbourne Grove. The immediate locality encompasses some of West London s most desirable cosmopolitan urban villages, which are popular with residents, retailers, tourists, occupiers and investors. WEST KILBURN AMBERLEY WHARF BARNWOOD CLOSE, LONDON, W9 PORTOBELLO MARKET A40 KENSINGTON WESTWAY PALACE GREEN HALLFIELD ESTATE BAYSWATER LORD S CRICKET GROUND A5 KENSINGTON GARDENS ST JOHN S WOOD RD. LITTLE VENICE PADDINGTON LISSON GROVE PAR K RD. EDGWARE RD. A5 EDGWARE RD. HYDE PARK A40 WESTWAY A4202 PARL LN. KNIGHTBRIDGE MARYLEBONE MAYFAIR GREEN PARK A501 EUSTON RD. FITZROVIA COVENT GARDEN LONDON RIVER THAMES

5 I AMBERLEY WHARF, BARNWOOD CLOSE, LONDON, W9 Heathrow Airport 15 minutes Journey Time London City Airport 46 minutes Journey Time The Elizabeth line This line will significantly improve links between Heathrow and a number of Central London destinations, including the West End, the City and Canary Wharf. The Great Western line London Paddington Station links the capital with a number of other major towns and cities, with trains to Reading, Swindon, Bath, Cardiff and more. SITUATION 2.75 acre water fronted site comprising seven blocks of low rise housing association flats and a Public House, situated between Aldsworth Close / Barnwood Close and the Grand Union Canal. The site is on the northern bank of the Grand Union Canal between the crossings of Harrow Road (A404) and Warwick Avenue. COMMUNICATIONS Amberley Wharf benefits from excellent transport communications with a number of London Underground stations in close proximity including the following: Warwick Avenue Royal Oak 300m 400m ELG IN AVE. WARWICK AVE. WARRI NGTON SUTHERLAND AVE. SUTHERLAND AVE. CRES WARWICK AVENUE A5 MAIDA VALE ST JOHNS WOOD RD. A5 Warwick Avenue station (300m east), Westbourne Grove (1000m west) and Royal Oak station (400m south) are accessible on foot, with Paddington Station located a short walk (1000m) to the south east. The surrounding location to the north of the canal is dominated by residential accommodation, with a high street retail offering along Harrow Road to the west. Paddington 1000m PADDINGTON STATION Paddington Station is one of Central London s largest train terminals providing Underground, Mainline services and Elizabeth Line (Crossrail) services from 2018. The station also benefits from having access to Heathrow Airport via the Heathrow Express, the fastest way to connect the world s busiest airport from Central London within 15 minutes. Journey times from Paddington (Elizabeth Line): Bond Street Farringdon Canary Wharf Stratford 3 mins 8 mins 17 mins 19 mins A404 HA RROW RD. A40 WESTWAY AMBERLEY WHARF BARNWOOD CLOSE, LONDON, W9 ROYAL OAK A 404 HARRO W RD. A40 WESTWAY WARWICK AVE ROAD LINKS Access by road to and from Paddington is provided by the A40 Westway which connects directly to the M40 and M25, providing access to the national motorway network. The M4 is 7.4 miles south west of the site which is strategically placed for the industrial sector. PORCHESTER RD. A4206 BISHOP S BRIDGE RD. PADDINGTON STATION

AMBERLEY WHARF, BARNWOOD CLOSE, LONDON, W9 I 6 EXISTING TENURE & TENANCY The freehold is held by Lord Mayor and Citizens of the City of Westminster (Westminster City Council) who in turn have granted a long lease for a term of 2000 years (less 2 days) from 22nd May 1895 to Grand Junction Company and Grand Union Canal Company (now Canal & River Trust) at a fixed rent of 150 per annum. British Waterways Board (now Canal & River Trust) have subsequently entered into a sublease for a term 1,927 years commencing 25 December 1968 (approximately 1,878 years unexpired) at a current passing rent of 307,500 per annum to Westminster City Council. The next rent review is 2041 and will be based on the ground rental value of the demised premises as if available for development for commercial / industrial purposes and as if clear of all buildings. PROPOSED STRUCTURE Canal & River Trust intend to retain their existing long leasehold interest and create a new underlease at a peppercorn rent. A New Sublessor will obtain the right to receive the income from Westminster City Council until 30 June 2091. In addition there is an opportunity to share with Canal & River Trust in any additional income received through any uplift at the next rent review on 31 December 2041. The Existing and Proposed Tenure and Tenancy structure is set out below: FREEHOLDER - LORD MAYOR AND CITIZENS OF THE CITY OF WESTMINSTER 2000 years (less 2 days) from 22 May 1895 at a fixed rent of 150 pa LEASEHOLDER - CANAL & RIVER TRUST New lease for a term expiring on 30 June 2091 at a peppercorn NEW SUBLESSOR 1927 years from 25 December 1968 at a current rent of 307,500 EXISTING SUBLESSOR - LORD MAYOR AND CITIZENS OF THE CITY OF WESTMINSTER Various occupational leases generally for 125 year terms 37 RESIDENTIAL AND A LEISURE OCCUPATIONAL TENANT

7 I AMBERLEY WHARF, BARNWOOD CLOSE, LONDON, W9 RENT REVIEW The next rent review is based on the higher of 13,000 per annum or the ground rental value of the cleared site area as if available for development for commercial / industrial purposes. The last rent review was based on 1/15 of the capital value for the cleared site, with a history of the most recent rent review and devaluation of our opinion of ERV, set out as follows: Date Pre RR rent ( pa) Site area (acres) 2 Land value (per acre) Gross land value 1/15th CV ( pa) 31st Dec 2011 13,000 pa 1 2.472 acres 1.87 million 4.62 million 307,500 pa 31st Dec 2041 307,500 pa 2.748 acres 3.00 million 8.24 million 550,000 pa 1 *Initial commencement rent 2 * 2011 rent review excluded 7 Amberley Wharf and was calculated off an agreed site area of 2.472 acres. The 2041 rent review includes 7 Amberly Wharf with an estimated total site area of 2.748 acres MARKET COMMENTARY London has witnessed a significant reduction in available industrial land with a reported 260 acres per annum lost to alternative uses, such as residential, between 2010 and 2015. Coupled with high demand, particularly within the e-commerce sector, this has resulted in significant growth in rental values and land values over this period. RENTAL VALUE Based on the market position, we consider the current industrial land value for the subject property is at least 3,000,000 per acre with the prospect of significant future growth. As such we consider the current estimated rental value, under the terms of the rent review provisions in the lease, to be at least 550,000 per annum. Since December 2011 to mid 2017 London Industrial Capital Value growth, according to IPD, was over 60% which applied to the last rent review would support over 3,000,000 per acre. GVA Research are forecasting further London Industrial Capital Value growth of over 5.00% per annum over the next 5 years. The growth in land values is also supported by the growth in rental values with prime rental levels of 15.00 per sq ft plus in Park Royal and 12.50 per sq ft plus in Enfield, with rental levels within Inner London achieving over 20.00 per sq ft.

AMBERLEY WHARF, BARNWOOD CLOSE, LONDON, W9 I 8 COVENANT Westminster City Council is one of 33 London boroughs providing a full range of local government services which include the provision of education, housing, planning, waste collection and disposal, council tax billing and social services. Westminster City Council is responsible for managing cash flows and assets exceeding 7 billion with financial headlines including: > Collects 1.9 billion in business rates, but only retains 4% to spend on services > Manages the 1.3 billion City of Westminster Pension Fund > Holds 2.5 billion of assets for services delivery and investment > Generates 1 billion of income in fees, charges and grants to help deliver services and keep council tax down PROPOSAL Offers are invited for the new leasehold interest at the rent passing and additionally a specified share with Canal & River Trust of any rent review uplift in 2041. Offers in excess of 7,200,000 (Seven Million Two Hundred Thousand Pounds) are invited, subject to contract and exclusive of VAT. This reflects a net initial yield of 4.00% after deducting purchaser s costs of 6.65% (excluding any additional VAT liability.) VAT Our clients have elected to charge VAT on the property. We do not consider the new interest will be treated as a Transfer of a Going Concern (TOGC) and VAT will be payable on the purchase price. FURTHER INFORMATION Further information is available including a copy of the existing lease. CONTACT DETAILS Neil Dovey T: +44 (0)20 7911 2168 neil.dovey@gva.co.uk Rachael Foster T: +44 (0)20 7911 2251 rachael.foster@gva.co.uk www.gva.co.uk/12374 Avi Orenstein T: +44 (0)20 7911 2632 avi.orenstein@gva.co.uk Christopher Strong T: +44 (0)20 7911 2080 christopher.strong@gva.co.uk The Council maintains a strong balance sheet with reported Net Assets in the order of 1.883 billion for the year ending in March 2017. For further information see www.westminster.gov.uk GVA is the trading name of GVA Grimley Limited, conditions under which Particulars are issued GVA Grimley Limited for themselves, for any joint agents and for the vendors or lessors of this property whose agents they are, give notice that: i.) The particulars are set out as a general outline only for the guidance of intending purchases or lessors and do not constitute, nor constitute part of, an offer or contract. ii.) All descriptions, dimensions, references to condition and necessary permission for use and occupation, and other details, are given in good faith and are believed to be correct but any intending purchasers or tenants should not rely on them as statements or representations of fact but satisfy themselves by inspection or otherwise as to the correctness of each of them. iii.) No person in the employment of GVA Grimley Limited or any joint agents has any authority to make or give any representation or warranty whatever in relation to this property. iv.) All rentals and prices are quoted exclusive of VAT. GVA: October 2017 Produced by Barbican Studio T: 020 7634 9573