VANTAGE POINT 23 MARK ROAD HEMEL HEMPSTEAD HP2 7DN WELL LET SOUTH EAST OFFICE INVESTMENT

VANTAGE POINT 23 MARK ROAD HEMEL HEMPSTEAD HP2 7DN WELL LET SOUTH EAST OFFICE INVESTMENT

INVESTMENT SUMMARY Situated on the established Maylands Business Area in Hemel Hempstead Modern office accommodation following a recent refurbishment programme The property comprises a net internal area of 18,513 sq ft and a car parking ratio of 1:257 sq ft Let to 2 tenants providing a WAULT of 9.4 years to expiry and 5 years to break Fully let producing a total rent of 193,722 per annum, reflecting a low average rent of 10.85 per sq ft Freehold Offers are sought in excess of 2,035,000 (Two Million and Thirty Five Thousand Pounds), subject to contract, which reflects an attractive net initial yield of 9% after purchaser s costs of 5.80% and a low capital value per sq ft of 114.

LOCATION Hemel Hempstead is an established South East centre, located approximately 23 miles (37 km) north west of Central London. The town is located adjacent to J8 of the M1 and lies between Luton, 9.5 miles (15 km) to the north, Watford, 6.5 miles (10 km) to the south, and St Albans, 6 miles (9 km) to the east. Hemel Hempstead benefits from excellent connectivity, with the M1 intersecting with the M25 at Junction 21, approximately 4 miles (6km) to the south east. 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 Airport is located approximately 9.5 miles (15 km) to the north and Heathrow Airport lies approximately 20 miles (32 km) to the south. Major employers in the town include Epson, ASOS, Britvic, Bourne Leisure, BAM Construction and HSBC. Birmingham Swindon High Street Green Rugby Banbury Didcot Oxford Milton Keynes M40 M1 Aylesbury Kettering Northampton Reading Bedford Luton Hemel Hempstead M20 M4 M1 High Wycombe Maylands Business Park Maylands Avenue Heathrow Luton A1(M) A1(M) Watford Cambridge Stevenage M25 London Boundary Way M11 M25 Stanstead Bishop's Stortford SITUATION Vantage Point is situated on the west side of Mark Road, just off Maylands Avenue and within the well established Maylands Business Area, approximately 1 mile east of the town centre. Maylands is a popular mixed use estate for occupiers from international businesses due to its excellent accessibility, skilled labour force and proximity to Central London. Maylands Business Park is the largest in the East of England and employs some 16,000 people. Local occupiers within Maylands include Amazon, Next and Asos. High Street Green Mark Road Wood Lane End Maylands Avenue Travelodge Virgin Active Wood Lane End To Junction 8 of the M1 Holiday Inn

J8 M1 16 A414 19 17 21 20 14 13 3 2 Town Centre Key 4 5 6 7 VANTAGE POINT 1. Subject Property 2. Parker Hannifin UK 22 1 3. Hightown Praetorian and Churches Housing Association Maylands Avenue Mark Road 4. Autorama 5. The Original Bowling Company 6. Opro 7. Drager Medical 8. The Dispute Service 9. UTC Aerospace Systems 12 9 8 10. FFEI 11. Atlas Copco 10 12. Sir Robert McAlpine 13. ASOS and Capita 14. Henkel 15. Thermofisher 16. Britvic, Bam Construction and Boston Scientific 17. Amazon Swallowdale Lane 18. Amazon 19. Majestic Wine 18 20. Martin Brower 21. GIST 22 Royal Mail 11

23 3 1 DESCRIPTION The property comprises a two detached storey office building divided into three suites and arranged around a central courtyard. Internally the offices benefit from raised floors, suspended ceilings with LG3compliant lighting, comfort cooling, 1 passenger lift, together with male, female & disabled facilities to each floor. In addition the full height glass reception has been recently refurbished. The property benefits from 72 dedicated car parking spaces providing an excellent ratio of 1:257 sq ft. A capital expenditure programme for the refurbishment of the common parts including the reception and the toilets costing 240,000 has been carried out over recent years. A full break down of this can be provided upon request. ACCOMMODATION The property has been measured in accordance with the RICS Code of Measuring Practice (6th edition) and provides the following areas: Demise Sq M Sq Ft Reception 51.14 550 Ground Floor 551.86 5,940 First Floor 1,116.97 12,023 Total 1,719.97 18,513 SITE The site extends to 0.67 acres (0.27 hectares). See plan right. Forsyth House 4 El Sub 27 LB Focus 31

SERVICE CHARGE The Service Charge budget for the year ending December 2015 is 52,988, equating to an overall cost across the accommodation of 2.97 per sq ft. Further details are available upon request. TENANCY The property is let to 2 tenants providing a WAULT of 9.4 years to expiry and 5 years to break and producing a total rent of 193,722 per annum, in accordance with the tenancy schedule below. TENURE Freehold. Tenant Name Demise Floor Area (Sq Ft) Floor Area (Sq M) Lease Start (Review) Expiry Date (Break Date) Rent (pa) Rent (psf) Comments Shaw Spencer Hometrading Ltd Grd Flr Front 2,330 216.46 20/04/2015 19/04/2020 24,465 10.50 5 month rent free period from lease commencement to be topped up by vendor. 3 month rent deposit held. Outside of 1954 Act. 8 car parking spaces. Trinity Property Group Ltd + Trinity Land & Investments Ltd + Trinity (Estates) Property Management Ltd Grd Flr Rear 3,504 325.53 03/06/2015 (03/06/2020) 02/06/2025 (03/06/2020) 38,544 11.00 12 month rent free period from lease commencement to be topped up by vendor. Outside of 1954 Act. 12 car parking spaces. Trinity Property Group 1st Flr 12,023 1,116.97 31/10/2008 (03/06/2020) 02/06/2025 (03/06/2020) 130,713 10.87 Reversionary lease expiry co terminus with new ground floor lease. 3 month rent deposit held. Outside of 1954 Act. 50 Car parking spaces. Totals 17,857 1,658.96 193,722 10.85

COVENANTS Shaw Spencer Hometrading Ltd supplies furniture and houseware products to leading retailers in the UK and Europe. The company has been in operation for more than 30 years, designing products in the UK and manufacturing them in China. Demise Year Ending Turnover ( 000s) Shaw Spencer Hometrading Ltd 31/12/2013 31/12/2012 31/12/2011 Pretax Profit ( 000s) Net Worth 710 676 597 Trinity Property Group Ltd and their subsidiary companies listed in the tenancy schedule is a property management company providing services for residential and mixed use developments. Their Head Office is at Vantage Point. Trinity Property Group Ltd 31/12/2013 31/12/2012 31/12/2011 6,594 1,137 718 (996) (972) RENTAL MARKET COMMENTARY Hemel Hempstead has a built stock of approximately 3.9 million sq ft. Total availability currently stands at 10%, with 312,000 sq ft of this being out of town and 84,000 sq ft within the town centre. Hemel Hempstead suffers from a severe lack of Grade A accommodation, chiefly due to a shortage of recent developments resulting in no new office space. In regards to take up, in 2014, 119,367 sq ft was transacted across 22 separate lettings, equating to an average requirement of 5,450 sq ft. In 2013 this was 99,883 sq ft in 20 deals equating to an average of 5,000 sq ft, and in 2012, 129,081 sq ft in 19 deals an average of 6,800 sq ft. Q1 2015 has started positively with approximately 25,000 sq ft of takeup indicating a continuing reduction in available, good quality accommodation. Recent lettings in the town include the 3rd and 4th floors of High Trees was let on 10 year leases at a rent of 12.50 per sq ft with 6 months rent free and a break at the expiry of the 7th year. At One Park Lane, Arqiva expanded within the building at a rent of circa 15.50 per sq ft, handing back a suite of 6,300 sq ft to the landlord, which is now being marketed at 17.50 per sq ft. This is the only available Grade A space within the town centre. Given the lack of Grade A office space, headline rents for new or refurbished space are under significant pressure and are therefore seeing growth and a likely return to their historic peak of 21.00 per sq ft. MPL home Ltd have taken a refurbished suite of 6,400 sq ft at IMEX on Maxed Road in April 2015. MPL signed a 10 year lease with a break at year 5 at 10.75 psf per annum. Beck Optronic Solutions Ltd have signed 10 year coterminus leases at ground floor Focus 31 West Wing (office accommodation) comprising 5,516 sq ft at 9.50 ps00ft and ground floor west wing (unfitted accommodation) comprising 3,299 sq ft at 8 per sq ft. The supply of office accommodation on Maylands Business Park benefitting from similar sized floorplates to Vantage Point and with good car parking ratios has greatly reduced as demonstrated by the take up at IMEX where occupancy is now at over 90%. INVESTMENT MARKET COMMENTARY In terms of the investment market, sustained demand has been seen for high quality South East offices. The value of office investments sold in the South East during 2014 exceeded 1.45bn, with Q1 2015 exceeding 480m. The trend is set to continue for the rest of 2015, whilst good quality office stock remains in short supply and a weight of money continues to flow into the UK market. Recent comparable transactions offering similar characteristics to Vantage Point can be seen below: Date Address Tenant Exchanged Under Offer Mar15 Mar15 Mar15 High Trees Hemel Hempstead Unit 2 & 3 The Willows, Mark Road, Hemel Hempstead Unit 3, Dukes Meadows, Bourne End 1100 Arlington Business Park, Theale Globe House, Bracknell Term Certain Price ( m) Yield (%) Cap Value ( psf) Multi 5.25 2.25 7.50 165 Multi 4.5 Q. 4.35 Q. 8.49 Q. 120 Zebra Technologies 4.5 5.4 8.3 198 KPMG LLP 5.25 8.86 8.35 271 Fujitsu Services Ltd 4 11.7 8.53 220

VAT The property is elected for VAT and it is the intention that the sale would be treated as a Transfer of a Going Concern. EPC The property has an Energy Performance rating of D with a score of 78. A certificate is available upon request. PROPOSAL We are seeking offers in excess of 2,035,000 (Two Million and Thirty Five Thousand Pounds), subject to contract, which reflects an attractive net initial yield of 9% after purchaser s costs of 5.80% and a low capital value per sq ft of 114. FURTHER INFORMATION For further information or to arrange a viewing, please contact: United Kingdom House 180 Oxford Street London, W1D 1NN t: +44 (0)20 7198 2000 f: +44 (0)20 7198 2001 www.lshinvestmentsales.co.uk Charlie Lake + 44 (0)20 7198 2227 clake@lsh.co.uk Laura Sweet + 44 (0)20 7198 2393 lsweet@lsh.co.uk Oliver Mayes + 44 (0)20 7198 2267 omayes@lsh.co.uk Claire Madden + 44 (0)1727 896 232 cmadden@lsh.co.uk Subject to Contract and Exclusive of VAT Lambert Smith Hampton December 2013. Disclaimer: 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 resale 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. Lambert Smith Hampton: June 2015 Designed by: Barbican Studio +44(0) 207 634 9574