19 Colonial Way I Watford I WD24 4JL

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Conrad Booker
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1 19 Colonial Way I Watford I WD24 4JL 1 Long Let South East Office Investment

Investment Summary Prime South East office investment with reversionary potential Watford benefits from excellent connectivity to Central London with a fastest journey time of 15 minutes Freehold

accommodation 186 surface level parking spaces provide an excellent ratio of 1:231 per sq ft 2 The adjoining properties are let to Wickes Building Supplies Limited on coterminous FRI lease

2 Investment Summary Prime South East office investment with reversionary potential Watford benefits from excellent connectivity to Central London with a fastest journey time of 15 minutes Freehold Link House was comprehensively refurbished in 2015 following the refurbishment of Vision House in 2014 to Grade A specification The properties provide 43,105 sq ft (4,004 sq m) of office accommodation 186 surface level parking spaces provide an excellent ratio of 1:231 per sq ft 2 The adjoining properties are let to Wickes Building Supplies Limited on coterminous FRI lease agreements, providing an unexpired term of 12.4 years to expiry The current combined passing rent is 775,460 per annum, which reflects an average of per sq ft overall on let accommodation, providing an opportunity for reversion at rent reviews in 2019 and 2020 We are seeking offers in excess of 12,110,000 (Twelve Million One Hundred and Ten Thousand Pounds) subject to contract and exclusive of VAT, for the freehold interest A purchase at this level provides a net initial yield of 6.00%, after allowing for purchasers costs at 6.71%, and reflects a low capital value of 281 per sq ft.

CLARENDON RD. Location Watford is the principal town of Hertfordshire and a substantial commercial centre.

Road M1 Motorway M25 Motorway M40 Motorway 2 miles 4 miles 13 miles A418 A4010 Maidenhead A4 M4 A322 A411 Hemel Hempstead Amersham M40 Slough Heathrow M3 M1 20 Luton Watford M4 5 Uxbridge M1 A1(M)

8 miles from the property and provides access to regular National Rail and London Overground Services.

Metropolitan Line providing a direct link to Baker Street, Kings Cross, Farringdon and Liverpool Street. M25 A411 ST. ALBANS ROAD ST. JOHN S RD.

3 CLARENDON RD. Location Watford is the principal town of Hertfordshire and a substantial commercial centre. The town is located approximately 15 miles north west of Central London, within the M25 motorway and benefits from excellent road, rail and air communications. Road M1 Motorway M25 Motorway M40 Motorway 2 miles 4 miles 13 miles A418 A4010 Maidenhead A4 M4 A322 A411 Hemel Hempstead Amersham M40 Slough Heathrow M3 M1 20 Luton Watford M4 5 Uxbridge M1 A1(M) A602 M25 Euston A10 London A232 A120 London City A20 M11 A2 Stansted A414 A127 M25 M20 A12 A3 3 Rail Watford Junction Station is located approximately 0.8 miles from the property and provides access to regular National Rail and London Overground Services. A31 A331 Guildford BUSHEY MILL LANE M25 A24 Gatwick To M23 A22 Not to scale London Euston Birmingham New Street Manchester Piccadilly 15 minutes 1 hour 2hrs 25 minutes The town is served by the Metropolitan Line providing a direct link to Baker Street, Kings Cross, Farringdon and Liverpool Street. M25 A411 ST. ALBANS ROAD ST. JOHN S RD. A411 IMPERIAL W A Y Watford Junction BALMORAL ROAD COLONIAL WAY STEPHENSON WAY A4008 NORTH WESTERN AVE. OTTERSPOOL WAY Link&Vision House PARK AVENUE M1 J5 HARTSPRING LANE A41 Situation The property is situated on a prominent corner site at the junction of Colonial Way and Radlett Road, to the north east of the town centre. Road connectivity is good; the Colonial Way roundabout in front of the building leads directly to Stephenson Way (A4008) which links Watford Town centre to junction 5 of the M1 motorway. Airports Heathrow Airport Luton Aiport London City 15 miles 18 miles 30 miles A412 CASSIO ROAD EXCH ANGE ROAD BEECHEN GROVE INTU SHOPPING CENTRE HIGH ST. LO WER HIGH STREET Watford High Street ALDENHAM ROAD Not to scale Excellent transport links and Watford s proximity to Central London have attracted a number of high profile corporate occupiers to the town including KPMG, TK Maxx, Hilton Hotels, BT, Imagination Technologies, Cable & Wireless and Costco. The nearby Intu Watford Shopping Centre is currently undergoing a 100m refurbishment to further improve the excellent retail and leisure amenity.

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Description The property comprises two adjoining modern office buildings, Link and Vision House, arranged over 3 floors providing 43,105 sq ft of office accommodation.

Link House Link House has been occupied by Wickes since July 2015 having been comprehensively refurbished at the beginning of 2015 to the following A-Grade specification: 5 New VRF air-conditioning

5 Description The property comprises two adjoining modern office buildings, Link and Vision House, arranged over 3 floors providing 43,105 sq ft of office accommodation. The buildings are of concrete frame construction with a combination of brick and glazed elevations beneath a pitched roof. Link House Link House has been occupied by Wickes since July 2015 having been comprehensively refurbished at the beginning of 2015 to the following A-Grade specification: 5 New VRF air-conditioning New suspended ceilings New LG7 compliant lighting New male and female WC facilities New disabled WC on the ground floor New shower facilities One 8-person passenger lift Impressive glazed reception On site bicycle racks Vision House Vision House has been occupied by Wickes since January 2014 who have fitted out the premises to a modern A-Grade standard and benefits from the following specification: VRF air-conditioning Suspended ceilings Kingspan raised floor system Male/female bathrooms and shower facilities. One 10-person passenger lift Second floor roof terrace Large Costa Coffee branded staff break-out area Gym facility The property provides 186 car parking spaces at surface level, providing an excellent town centre ratio of 1:231 sq ft.

7 63 Accommodation 78 The property has been measured in accordance with the RICS Property Measurement 1st Edition and provides the following IPMS 3-Office areas. Net internal areas are also provided for reference Vision House IPMS 3 NIA sq m sq ft sq m sq ft Reception Ground Floor , ,207 First Floor , ,856 Second Floor , ,301 Total 2, ,312 2, ,818 7 Link House IPMS 3 NIA sq m sq ft sq m sq ft Reception Link House Vision House Radlett Road Ground Floor , , First Floor , ,893 Second Floor , ,486 Total 1, ,938 1, ,287 Colonial Way Combined Total 4, ,250 4, ,105 Watford University Technical College 18 Site The site extends to 0.94 hectares (2.32 acres), with a low site coverage of 19%. Ordnance Survey Crown Copyright All rights reserved. Licence number Plotted Scale - 1:980

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Tenancies The adjoining buildings are occupied by Wickes Building Supplies Ltd as their UK Head Office on coterminous FRI lease agreements, for an unbroken term of 12.4 years to expiry.

9 Tenancies The adjoining buildings are occupied by Wickes Building Supplies Ltd as their UK Head Office on coterminous FRI lease agreements, for an unbroken term of 12.4 years to expiry. The current combined passing rent is 775,460 per annum, which reflects an average of per sq ft overall on let accommodation. There is an initial rent free period on Link House to the 24th June 2017, which will be topped up by the vendor. Building Tenant Name Area (NIA) Lease Start Lease Expiry Rent Review Term (Years) Rent (pa) Rent (psf) Link House Wickes Building Supplies Ltd 15,287 01/07/ /01/ /07/ , Vision House Wickes Building Supplies Ltd 27,818 02/01/ /01/ /01/ , Total 43, , Tenure The property is held Freehold. Covenant Wickes is owned by Travis Perkins plc and is one of the UK s largest home improvement retailers, with more than 200 stores and 5,000 staff throughout the country. They occupy Link and Vision House as their UK Head Office. We have summarised the last three year s accounts for Wickes Building Supplies Ltd below and consider them to offer an excellent covenant strength with a D&B Rating of 5A1. 26/12/ s 27/12/ s 28/12/ s Turnover 1,104,950 1,039, ,038 Pre-Tax Profit 60,133 68,731 49,441 Net Worth 413, , ,079

Take-up Average annual take-up over the last 5 years has been over 200,000 sq ft which has served to significantly diminish supply.

10 10 Watford Office Market Watford is among the most established office centres in the South East with an estimated stock of 5 million sq ft. The town and surrounding areas are home to a number of high profile occupiers. Take-up Average annual take-up over the last 5 years has been over 200,000 sq ft which has served to significantly diminish supply. Occupier demand has been robust since the start of 2016 with 107,383 sq ft of take-up and a further 95,000 sq ft estimated to be under offer. Typical requirements are focussed on the 5,000-20,000 sq ft bracket and there is currently over 200,000 sq ft of named occupier demand considering Watford as a location. Supply Sustained levels of demand and conversion of office buildings to residential use through Permitted Development has diminished available supply to just 281,000 sq ft. Notably, total Grade A availability is only 74,000 sq ft which reflects a genuine shortage of suitable accommodation and is driving real rental growth. Headline rents in the town centre have increased from to per sq ft in the last two years while incentives have decreased to 6 months rent free on a 5 year term. Significant comparable evidence to support reversion at review Date Address Tenant Floor Area Rent ( psf) Lease Term Under Offer The Junction, Station Road Bio-Rad 27, Undisclosed Under Offer The Junction, Station Road Dentons 14, Undisclosed Under Offer The Junction, Station Road Ricoh 6, Undisclosed Apr Clarendon Road Veale Wasbrough Vizards LLP 9, years 5 year break Feb Croxley Green Business Park Smith & Nephew 60, Years Sept 2015 Egale 1, St Albans Road Myers Clark 5, years 5 year break Mar Clarendon Road, Watford TK Maxx 66, Years Grade A Grade B/C Availability (000 s) Q2

South East Office Investment Market There is continued high demand for single-let offices with long term, secure income, situated in strong micro locations.

Below is a table of recent comparable transactions: Date Building Name Town Tenant Term Certain (Years) Price NIY Purchaser Under Offer 8 Bedford Park Croydon Superdrug Plc 10 c. 26,000,000 c. 5.

11 South East Office Investment Market There is continued high demand for single-let offices with long term, secure income, situated in strong micro locations. Properties that benefit from defensive fundamentals are in scarce supply and therefore pricing remains competitive in this sector of the market. Below is a table of recent comparable transactions: Date Building Name Town Tenant Term Certain (Years) Price NIY Purchaser Under Offer 8 Bedford Park Croydon Superdrug Plc 10 c. 26,000,000 c. 5.08% Undisclosed Aug 16 Wey House Guildford Stevens & Bolton ,650, % Guildford Borough Council Jun 16 Kier Construction HQ Loughton Kier Ltd 15 6,500, % Salaft Properties May 16 Abbvie House Maidenhead Abbvie Ltd ,600, % Rasmala Plc Mar 16 Horizon Building Gloucester Horizon 15 16,400, % Private Investor Mar 16 GMAC House High Wycombe GMAC UK Plc 9.5 6,175, % Drapers Livery Company Jan 16 Beta Building Reading Prudential 10 9,725, % Mayfair Capital Dec 15 Key Point Bristol TSB Bank 14 16,750, % Private Investor 11

12 VAT We understand the property is elected for VAT. EPC Link House has a current EPC rating of B-46 and Vision House a rating of C-67. Proposal We are seeking offers in excess of 12,110,000 (Twelve Million One Hundred and Ten Thousand Pounds) subject to contract and exclusive of VAT, for the freehold interest. A purchase at this level provides a net initial yield of 6.00%, after allowing for purchasers costs at 6.71%, and reflects a low capital value of 281 per sq ft. 12 Contact For further information or to arrange a viewing, please contact: Charlie Lake e clake@lsh.co.uk t Matt Jones e mhjones@lsh.co.uk t James Shaw e jashaw@lsh.co.uk t Misrepresentation Act 1967: 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 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) 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. August 2016.

Prime Single Let Retail Warehouse HUGHES ELECTRICAL, GROVE STREET, REDDITCH, B98 8DX

Prime Single Let Retail Warehouse HUGHES ELECTRICAL, GROVE STREET, REDDITCH, B98 8DX INVESTMENT SUMMARY n Prominent location in town centre. n Modern detached retail warehouse unit with unrestricted Open