two roUndwood avenUe Stockley Park HeatHrow UB11...

Stockley Park HeatHrow UB11 1aFtwo roUndwood avenUe

Prime HeatHrow offic e investment oPPor tuni t y

On behalf of:

execUtive SUmmary

- The UK’s premier business park

- Fantastic communications to be further enhanced by Crossrail and probable Heathrow expansion

- Stockley Park is home to a Who’s Who of global corporates

- Attractive and mature business park environment with excellent amenities

- Two self-contained HQ office buildings totalling 93,570 sq ft with flexibility for future amalgamation

- 328 car spaces with excellent ratio of 1 car space per 285 sq ft

- Let to two investment grade global corporates - Hasbro (lease expiry 9/2013) and Gilead Sciences (lease expiry 4/2017)

- Total current income of £2,545,506 per annum

- Opportunity to refurbish North Building (Hasbro) on lease expiry to Grade A specification

- South Building (Gilead) refurbished to Grade A specification - opportunity to regear existing lease

- Offers in excess of £20,000,000 (Twenty Million Pounds), reflecting a net initial yield of 12.03% and a capital value of only £214 per sq ft

location

Stockley Park heads the league of the UK’s leading business parks, providing over 1.74 million sq ft of Grade A office accommodation strategically located only 2 miles north of Heathrow Airport and 15 miles West of Central London. The park’s high standard of accommodation and excellent location have consistently attracted a broad range of national and global corporations.

Stockley Park offers a range of amenities including cafes, bars, shops and restaurants.

Stockley Park’s communication links are unrivalled, with the park benefiting from the following:

road

Stockley Park is located on the A408 (Stockley Road) providing immediate access to Junction 4 of the M4 motorway circa 1 mile away, which in turn provides direct access to Central London, Slough, Reading and the South West. The A408 also links Stockley Park to the M40 and M25 motorways which enable easy access to the national motorway network.

air

Stockley Park is only 2 miles from London Heathrow Airport, the world’s busiest international airport, which is currently used by over 90 airlines flying to 170 destinations worldwide and in 2011 served 69 million passengers.

In 2008 Heathrow Terminal 5 became fully operational, increasing capacity by some 35 million passengers per year. The airport’s owners, BAA Ltd, continue to invest in its development with plans underway to replace Terminals 1 & 2 by 2019.

Due to its strategic location Stockley Park also has easy access to other major UK airports via the national motorway airport - London Gatwick Airport (40 miles), London Stansted Airport (70 miles) and London Luton Airport (40 miles).

Public transPort

Stockley Park benefits from excellent public transport links via, bus, national rail and London Underground networks.

A direct train service is available from London Paddington to Hayes & Harlington with a typical journey time of 17 minutes. Alternative services are available, also from London Paddington, to West Drayton with a typical journey time of 22 minutes. Both stations are within 2 miles of Stockley Park and dedicated bus services provided regular connections.

In 2018 Stockley Park will benefit significantly from the delivery of Crossrail, Europe’s largest engineering project, which will connect 37 stations from Heathrow Airport and Maidenhead in the West to Abbey Wood and Shenfield in the East. This new heavy-duty suburban rail service will link the City, Canary Wharf, the West End and Heathrow Airport with significantly reduced journey times on at least 24 trains every hour accommodating up 1,500 passengers each. Stockley Park Occupiers will be able to access Crossrail at Hayes & Harlington station.

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two roUndwood avenUe

SitUation

Stockley Park, originally the product of a joint venture between Kajima, PRUPIM and Aldersgate, has been recognised as one of Europe’s best business park locations since its phased development began in the mid 1980s. It is set in 400 acres of mature landscaping, providing 1.74 million sq ft of headquarters style accommodation and numerous associated amenities.

Indicative of the quality of Stockley Park is its current tenant mix, including global corporate brands such as GlaxoSmithKline, BP, Apple, Sharp Electronics, Canon, Marks & Spencer and IMG.

The range of investors that have acquired holdings within the park over the past 25 years is further testament to its quality.

Amenities at the park are provided at The Arena and include a Virgin Active Health Club, Alexanders Wine Bar, Costa, WH Smith and Wetherspoons Bar. Adjacent is an 18 hole golf course and a nursery providing childcare throughout the working day.

Further information is available at the Stockley Park website - www.stockleypark.co.uk

The Square

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oundwood Avenue

The Grand Union Canal

Longwalk Road

Bennetsfield Road

A408 Stockley Road

A408 Stockley Road

The Arena

tenant

1, 2 & 3 Ironbridge Rd GlaxoSmithKline1 Longwalk Road Celgene Corporation2 Longwalk Road Vacant3 Longwalk Road Marks & Spencer4 Longwalk Road BP Properties1 Roundwood Avenue NetApp World Vision3 Roundwood Avenue Activision Adobe5 Roundwood Avenue Pipex7 Roundwood Avenue Fiserv Europestar5 Longwalk Road IMG6 Roundwood Avenue Canon Europe Ltd1 Furzeground Way Regus2 Furzeground Way Apple2 Roundwood Avenue Hasbro (UK) Ltd Gilead Sciences Ltd4 Roundwood Avenue HP Enterprise Service (UK) Limited4 Furzeground Way Sharp Electronics3 Furzeground Way Havi Global Solutions Otsuka Pharmaceuticals Toshiba IBM Canadian High Commission Nobel Biocare2 The Square Aspect Communications1 The Square Coats Holdings Almirall Grass Valley3 The Square Canon6/9 The Square KPMG HQ Global Workspace5 The Square BP4 The Square Perot Systems Almirall Cisco Rocket Software

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deScriPtion

Two Roundwood Avenue is a modern HQ office building completed in 1988, arranged over two floors and extending to circa 93,570 sq ft (8,692.8 sq m). Originally designed as a single building, the property was separated in 2000 to form two self-contained buildings, the North Building and the South Building.

The original tenant of the whole, Hasbro, downsized from 93,570 sq ft to 51,132 sq ft to occupy the North Building, whilst the South Building was refurbished and re-let.

The base specification includes the following:

- VAV air-conditioning

- Full access raised floors

- Male and female WCs on both floors

The North Building is in an original condition, not having benefited from significant refurbishment since it was built.

The landlord will have a substantial dilapidations claim against the tenant at lease expiry in 2013. Detailed refurbishment plans for the north building have been worked up by the vendor. Further details are available on request.

The South Building comprises Grade A office space, refurbished by the landlord in 2001/2, and extensively fitted out by the tenant in 2004 and 2007, with associated upgrade and replacement of M&E including:

- Replacement of boilers

- Replacement of chiller

- LG7 compliant lighting

- Shower facilities and disabled toilets

- Lift

- Car parking ratio of 1:285 sq ft

- BMS upgrade

- 4 pipe fan coil air-conditioning

- Suspended metal tile ceiling

accommodation

The property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) and comprises a total net internal floor area of 93,570 sq ft (8,692.8 sq m).

The breakdown of the floor areas is as below:

nortH buildinGFLOOR SQ M SQ FT

Reception 98.0 1,055

Ground offices 2,375.2 25,567

First offices 2,277.0 24,510

TOTaL 4,750.2 51,132

soutH buildinGFLOOR SQ M SQ FT

Reception 84.4 909

Ground 1,937.6 20,856

First 1,920.6 20,673

TOTaL 3,942.6 42,438

Externally there are a total of 328 car spaces split between North and South Buildings as follows:

North Building 178 car spaces South Building 150 car spaces

Site

The site area extends 1.857 hectares (4.589 acres).

tyPical Floor Plan

For indicative purpose only and not to scale.

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Freehold.

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Ordnance Survey © Crown Copyright 2012. All rights reserved. Licence number 100020449. Plotted Scale - 1:1392

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tenancieS

The property is let to 2 tenants on full repairing and insuring terms and currently produces a total income of £2,545,506 per annum in accordance with the tenancy schedule below.

Tenant Demise Size (sq ft) Lease Start Lease Expiry Next Rent Review Rent (£) Rent (£psf)

Hasbro UK Ltd North Building 51,132 11/06/2002 28/09/2013 24/06/2013 £1,518,135 £30.00*

Gilead Sciences Europe Ltd South Building 42,438 01/05/2007 30/04/2017 n/a £1,027,371 £24.50*

The Hasbro lease expires in September 2013. Hasbro Inc. stand as surety to Hasbro UK Ltd.

Gilead Sciences Inc. stand as guarantor to Gilead Sciences Europe Ltd.

tenant BackGroUnd/FinancialS

Hasbro

Founded in 1923, Hasbro is a global company providing entertainment products from a range of world class brands. Hasbro’s products include toys and games, television programming, motion pictures and video games. The company looks to service its target market through leveraging its range of well-known brands, of which there are more than 1,500 in number and include Transformers, Littlest Pet Shop, Nerf, Playskool, My Little Pony, GI Joe, Magic: The Gathering and Monopoly. Hasbro products are sold by over 500,000 stores worldwide, and the company produces circa 2,000 new products each year.

Hasbro UK Limited has a Dun & Bradstreet rating of 5A1 with a “minimum risk of business failure”. A financial summary of Hasbro UK Limited to December 2010 can be found in the table below.

HaSBRO UK LIMITED Fiscal Consolidated GBP 26 Dec 2010

(000’s)

Fiscal Consolidated GBP 27 Dec 2009

(000’s)


(000’s)

Sales Turnover 132,435 133,072 136,315

Profit / (Loss) before taxes 6,311 5,652 9,755

Tangible Net Worth 40,244 36,387 32,324

Net Current Assets (Liabilities) 37,045 34,446 29,740

Hasbro Inc., the parent company and guarantor to the lease, is an investment grade entity with a Fitch rating of BBB+.

Further information can be found at www.hasbro.com.

Gilead sciences

Gilead Sciences is a biopharmaceutical company focusing on the research, development and commercialisation of innovative therapeutics in new areas of medical need. More specifically the company targets the advance of treatments for patients suffering from life-threatening diseases.

Gilead was founded in 1987 in Foster City, California. The company has expanded rapidly over the past twenty-five years, with annual total revenues now anticipated to exceed $9.0 billion, operations spanning three continents (North America, Europe and Asia Pacific) with approximately 4,600 employees.

Gilead has its European HQ at Stockley Park. The office provides central support services for the majority of Gilead’s operations outside of the United States and Canada with the following functions based at the property: General Management, Finance, Human Resources, Regulatory, Safety, Information Technology, Legal, Medical Affairs and EU Commercial Compliance.

Gilead Sciences Europe Limited has a Dun & Bradstreet credit rating of 2A1 indicating a minimum risk of business failure.

A financial summary of Gilead Sciences Europe Limited to December 2010 can be found in the table below.

GILEaD SCIENCES EUROPE LIMITED Fiscal Consolidated GBP 31 Dec 2010

(000’s)


(000’s)


(000’s)

Sales Turnover 39,505 36,996 37,309

Profit / (Loss) before taxes 24 959 752

Tangible Net Worth 4,249 7,422 6,821

Net Current Assets (Liabilities) 977 1,726 1,468

Gilead Sciences Inc, the parent company, and guarantor to the lease, is an investment grade company with a Standard & Poors rating of A-.

Further information can be found at www.gilead.com.

*Assuming 50% rate on receptions.

tHe Stockley market

suPPly

In total, Stockley Park comprises approximately 1.74 million sq ft of office space.

Assuming deals currently under offer go through we estimate the park’s current vacancy rate is approximately 161,500 sq ft or 9.3% of the park total, a historically low figure.

Of this approximately 59,000 sq ft is landlord space and 102,500 sq ft is tenant space. Grade A vacancy is only 42% of available space.

demand

There is currently demand for 400,000 sq ft through named enquiries seeking office accommodation in Heathrow, including BP, Gartner, Centrica, Enterprise, Merck and Network Appliance.

taKe uP

Average take up per annum on Stockley Park in the last 10 years has been approximately 95,000 sq ft per year. Taking this into account Stockley Park has only 18 months of available supply.

The past 12 months has seen take up of 141,177 sq ft, with a further 61,000 sq ft currently under offer. A schedule of recent deals is outlined below.

PROPERTY DaTE TENaNT TERM RENT aREa (sq ft NIa)

4 The Square Nov-12 Hasbro 10 years Under offer at £28.50

61,000

5 Longwalk Road Sep-12 IMG 15 years £26.75 107,459

1 The Square Jun-12 Almirall 10 years (5 year break)

£25.00 9,193

1 Roundwood Avenue Jan-12 World Vision 10 years (5 year break)

£24.50 7,725

1 The Square Dec-11 Grass Valley 10 years (5 year break)

£24.50 9,983

1 The Square Dec-11 Coats 8 years (3 year break)

£26.00 3,685

3 Furzeground Way Nov-11 Toshiba 10 years (5 year break)

£25.00 13,276

rents

Prime rents at Stockley Park peaked in 2000 at £35 per sq ft and troughed at £25 in 2006. The recent letting of 5 Longwalk to IMG indicates that rents at the park are currently in the region of £26.75/£28.50 per sq ft for Grade A refurbished space. This compares to £30 in Maidenhead, £45 in Chiswick and £30 in Uxbridge.

tHe outlooK

A lack of supply means prospects for rental growth at Stockley Park are excellent in the short to medium term. The development vacuum of recent years has led to a lack of true Grade A office availability. Speculative refurbishments at Stockley Park will prove a catalyst for driving rental levels forward.

In light of strong property fundamentals, existing tenant mix, strategic location and a high quality employee catchment area, there continues to be a significant demand for office space at Stockley Park.

Over the last 18 months employment in the ICT sector has risen by twice the national average, the M4 corridor containing a particularly high ICT concentration.

The combination of these characteristics will ensure that the park remains a key UK business location.

tHe Stockley Park inveStment market

Since the start of 2011 investment transactions at Stockley Park have totalled circa £100m at an average lot size of £20.7m. From these transactions it is clear that traditional institutional, overseas and opportunity fund investors continue to be attracted to Stockley Park, as demonstrated by CarVal, LaSalle Investment Management, RREEF, Aberdeen and IM Properties. The deals highlighted below range from a refurbished 10-year deal to short income and speculative refurbishments.

Those investors that have purchased vacant possession and asset management opportunities have been encouraged by low rental levels, a lack of prime Grade A stock on the park and the reputation of Stockley Park as a location. The opportunity to reposition assets to deliver Grade A stock to a market benefitting from significant occupier demand is both rare and attractive, having the potential to deliver both rental growth and prime exit yields. We have included a current opportunity, 5 Longwalk, in our schedule below as an example of a sale of a Grade A refurbished building, recently let on a 15 year term to IMG, demonstrating the scope of opportunity that exists to generate a similar product and enhanced value from assets such as Two Roundwood Avenue.

stocKley ParK investment transactions

PROPERTY DaTE VENDOR PURCHaSER TENaNT UNEXPIRED TERM

PRICE (£) PRICE (£psf) NIY

5 Longwalk Nov-12 Schroders *Currently on market IMG Worldwide Inc 15 years £41.26m £360 6.50%

1,3 & 5 Roundwood Jul-12 USS CarVal Multi-let 3 years £24m £196 12.02%

2 Longwalk Road Feb-12 IVG CarVal Vacant - £7.10m £146 -

3 Furzeground Way Nov-11 Invista LaSalle IM Multi-let 4 years £21.81m £277 9.00%

1 Longwalk Road May-11 CBREGI RREEF Celgene Ltd 10 years £26.40m £352 7.20%

4 Longwalk Jan-10 USS Aberdeen Canon Europe 9.5 years £14.90m £326 7.95%

otHer soutH east investment transactions

PROPERTY DaTE VENDOR PURCHaSER TENaNT UNEXPIRED TERM

PRICE (£) PRICE (£psf) NIY

Chiswick Green Nov-12 BAM Prupim (under offer) Viasat 15 years £48.067m £617 6.25%

Network House, Maidenhead Nov-12 Castlemore Private Investor Volvo 15 years £9.04m £396 6.35%

Lucidus, Watford Sep-12 DTZIM British Steel PF Multi-let 5.7 years £13.90m £271 7.44%

Market House, Maidenhead Sep-12 Shepherd Developments Gatehouse Adobe 10.4 years £34.25m £454 6.00%

Marlow International Jul-12 Avestus London & Stamford Multi-let 6.9 years £50.15m £217 8.88%

220 & 230 Cambridge Science Park Jul-12 Schroders L&G Multi-let 10.6 years £22.20m £295 7.21%

Unilever House, Leatherhead Jun-12 SWIP & Orchard Street London & Stamford Unilever 11.2 years £61.15m £341 6.85%

1 Forbury Square, Reading May-12 Aviva Canada Life Multi-let 6.1 years £11.56m £306 7.00%

Costain House, Maidenhead Apr-12 Aviva Private Investor Costain Ltd 12.3 years £14.70m £398 7.00%

Stockley Park HeatHrow UB11 1aFtwo roUndwood avenUe

caPital allowanceS

Further information available on request.

vat

We understand that the sale will be treated as a Transfer of a Going Concern for VAT purposes.

ProPoSal

Offers are sought in excess of £20,000,000 (Twenty Million Pounds).

A purchase at this price would reflect an attractive net initial yield of 12.03%, after allowing for usual purchaser’s costs of 5.8%, and a capital value of only £214 per sq ft.

SUBJECT TO CONTRACT AND EXCLUSIVE OF VAT.

FUrtHer inFormation

For further information or to arrange an inspection, please contact the following:

Richard Talbot-WilliamsE: [email protected]: 020 7338 4244

Paul GriffithsE: [email protected]: 020 7338 4266

enerGy PerFormance certiFicateS

Two EPCs are shown. The first relates to the whole property and reflects the unrefurbished nature of the north building. The second relates solely to the south building.

This certificate shows the energy rating of this building. It indicates the energy efficiency of the building fabric and the heating, ventilation, cooling and lighting systems. The rating is compared to two benchmarks for this type of building: one appropriate for new buildings and one appropriate for existing buildings. There is more advice on how to interpret this information on the Governments website www.communities.gov.uk/epbd.

Energy Performance CertificateNon-Domestic Building

Gilead Sciences Europe Ltd2 Stockley Park, Roundwood AvenueUXBRIDGE UB11 1AZ

Certificate Reference Number:0473-3052-0918-0790-8095

Energy Performance Asset Rating

Technical Information

Less energy efficient

More energy efficient

Net zero CO2 emissions

Benchmarks

Main heating fuel: Natural Gas

Building environment: Air Conditioning

Total useful floor area (m2): 4248

Building complexity (NOS level): 4

100 This is how energy efficient the building is.

If newly built

Buildings similar to this one could have ratings as follows:

63149 Is typical of the

existing stock

Green Deal Information

The Green Deal will be available from later this year. To find out about how the Green Deal can make your property cheaper to run, please call 0300 123 1234.

ABCDEF

G

0-25

26-50

51-75

76-100

101-125

126-150

Over 150

This certificate shows the energy rating of this building. It indicates the energy efficiency of the building fabric and the heating, ventilation, cooling and lighting systems. The rating is compared to two benchmarks for this type of building: one appropriate for new buildings and one appropriate for existing buildings. There is more advice on how to interpret this information on the Governments website www.communities.gov.uk/epbd.

Energy Performance CertificateNon-Domestic Building

2 Roundwood AvenueStockley ParkUXBRIDGE UB11 1AZ

Certificate Reference Number:9139-3085-0009-0800-4725

Energy Performance Asset Rating

Technical Information

Less energy efficient

More energy efficient

Net zero CO2 emissions

Benchmarks

Main heating fuel: Natural Gas

Building environment: Air Conditioning

Total useful floor area (m2): 9306

Building complexity (NOS level): 4

Building emission rate (kgCO2/m2: 85.58

127 This is how energy efficient the building is.

If newly built

Buildings similar to this one could have ratings as follows:

62142 Is typical of the

existing stock

Green Deal Information

The Green Deal will be available from later this year. To find out about how the Green Deal can make your property cheaper to run, please call 0300 123 1234.

ABCDEF

G

0-25

26-50

51-75

76-100

101-125

126-150

Over 150

Tayler Reid Design no.04192 | 020 7355 2500 | www.taylerreid.co.uk

Misrepresentation Act 1967: BNP Paribas Real Estate Advisory for themselves and for the vendor(s) or lessor(s) of this property whose agents they are, give notice that: 1. These particulars do not constitute, nor constitute any part of, an offer or contract. 2. None of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact. 3. Any intending purchaser or lessee must satisfy himself by inspection or otherwise as to the correctness of each of the statements contained in these particulars. 4. The vendor(s) or lessor(s) do not make or give and neither BNP Paribas Real Estate Advisory nor any person in their employment has any authority to make or give, any representation or warranty whatever in relation to this property. Finance Act 1989: Unless otherwise stated all prices and rents are quote exclusive of VAT. Property Misdescriptions Act 1991: These details are believed to be correct at the time of compilation but may be subject to subsequent amendment. All maps and plans are published for the convenience of identification only and although believed to be correct is not guaranteed and it does not form any part of any contract. November 2012.

Charlie InghamE: [email protected]: 020 7338 4336

On behalf of:

two roUndwood avenUe Stockley Park HeatHrow UB11...

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