VANTAGE POINT23 MARK ROAD

HEMEL HEMPSTEADHP2 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.

LOCATIONHemel 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.

SITUATIONVantage 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.

M4 M5

M4

M27

A37

A303

A21

A354

A31

A565

A19

A170

A66

A1M

A1

M62

M6

M6

M6

M65

M56

M58

M62

A1(M)

M60M1

M18

M6

M6

M1

M5

M3

M8

M90

M74

A74(M)

M876

M9

M4

A9

A90

A90

A96

A95

A9

A90

A386

A38

Bishop'sStortford

Oxford

WatfordHigh

Wycombe

Kettering

Luton

Birmingham

Rugby

Banbury

Didcot

StevenageAylesbury

Cambridge

Reading

Milton Keynes

Northampton

Swindon

LondonHeathrow

Luton

Stanstead

Bedford

Hemel Hempstead

A1(M)

M1

M40

M20

M20

M25

M25

M25

M4

M1

M1

M3 M2

A1(M) M11

High S

treet Green

High Street G

reen

Maylands Avenue

Maylands Avenue

Mark

Road

Boun

dary W

ay

Wood Lane E

nd

Wood Lane End

MaylandsBusiness Park

Holiday Inn

To Junction 8of the M1

Travelodge

Virgin Active

Hemel Hempstead FC

Key1. Subject Property

2. Parker Hannifin UK

3. Hightown Praetorian and Churches Housing Association

4. Autorama

5. The Original Bowling Company

6. Opro

7. Drager Medical

8. The Dispute Service

9. UTC Aerospace Systems

10. FFEI

11. Atlas Copco

12. Sir Robert McAlpine

13. ASOS and Capita

14. Henkel

15. Thermofisher

16. Britvic, Bam Construction and Boston Scientific

17. Amazon

18. Amazon

19. Majestic Wine

20. Martin Brower

21. GIST

22 Royal Mail

VANTAGE POINT

2

10

5

98

11

12

6 7

3

4

13

1

1417

19

18

22

21

20

16M1

Mark RoadMaylands Avenue

Swallowdale Lane

J8

A414

Town Centre

DESCRIPTIONThe 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 LG3-compliant 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.

ACCOMMODATIONThe property has been measured in accordance with the RICS Code of Measuring Practice (6th edition) and provides the following areas:

SITEThe site extends to 0.67 acres (0.27 hectares). See plan right.

Hemel Hempstead

Industrial Estate

39

Forsyth House

LB

MAR

K R

OAD

HA

LL R

OA

D

El Sub S

ta

Sub Sta

1

El

3

4

9

27

23

31

Focus

0m 25m 50m 75m

Vantage Point23 Mark Road

Hemel Hempstead

Ordnance Survey © Crown Copyright 2015. All rights reserved. Licence number 100022432. Plotted Scale - 1:1250

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

Tenant Name DemiseFloor 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 £10.505 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 3,504 325.5303/06/2015

(03/06/2020)02/06/2025(03/06/2020)

£38,544 £11.0012 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 1,116.9731/10/2008

(03/06/2020)02/06/2025(03/06/2020)

£130,713 £10.87Reversionary 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

TENANCYThe 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.

TENUREFreehold.

SERVICE CHARGEThe 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.

COVENANTSShaw 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.

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.

RENTAL MARKET COMMENTARYHemel 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 take-up 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 co-terminus 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 COMMENTARYIn 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:

Demise Year Ending Turnover (£000s)

Pre-tax Profit (£000s)

Net Worth

Shaw Spencer Hometrading Ltd

31/12/2013 31/12/2012 31/12/2011

- - -

- - -

710676597

Trinity Property Group Ltd

31/12/2013 31/12/2012 31/12/2011

6,594--

1,137--

718(996)(972)

Date Address TenantTerm

CertainPrice (£m)

Yield (%)

Cap Value (£psf)

ExchangedHigh Trees Hemel Hempstead

Multi 5.25 2.25 7.50 165

Under OfferUnit 2 & 3 The Willows, Mark Road, Hemel Hempstead

Multi 4.5 Q. 4.35 Q. 8.49 Q. 120

Mar-15Unit 3, Dukes Meadows, Bourne End

Zebra Technologies 4.5 5.4 8.3 198

Mar-151100 Arlington Business Park, Theale

KPMG LLP 5.25 8.86 8.35 271

Mar-15Globe House, Bracknell

Fujitsu Services Ltd 4 11.7 8.53 220

VATThe property is elected for VAT and it is the intention that the sale would be treated as a Transfer of a Going Concern.

EPCThe 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 INFORMATIONFor further information or to arrange a viewing, please contact:

Charlie Lake

+ 44 (0)20 7198 2227clake@lsh.co.uk

Laura Sweet

+ 44 (0)20 7198 2393lsweet@lsh.co.uk

Oliver Mayes

+ 44 (0)20 7198 2267omayes@lsh.co.uk

Claire Madden

+ 44 (0)1727 896 232cmadden@lsh.co.uk

United Kingdom House180 Oxford Street London, W1D 1NN

t: +44 (0)20 7198 2000 f: +44 (0)20 7198 2001

www.lshinvestmentsales.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 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.

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