JVC European Headquarters, Priestley Way, Staples Corner, London NW2 7BAStrategically Located Prime Industrial and Office Investment

PRIME GREATER LONDON INDUSTRIAL AND OFFICE INVESTMENT

JVCKENWOODPRIESTLEY WAY, STAPLES CORNER

LONDON NW2 7BA

2

PROMINENT NORTH CIRCULAR LOCATION COMPRISING 250,910 SQ FT ON 9.26 ACRES

3

INVESTMENT SUMMARY

• Rareopportunitytopurchaseaprime,well-letindustrialandofficeinvestmentsituatedinacoreGreaterLondonlocationontheM1-NorthCircularintersection

• LocatedatthelandmarkStaplesCorner–accessviaJunction1oftheM1Motorway,theA406NorthCircularandtheA5EdgwareRoad

• ThePropertycomprisesJVCKENWOODUKLIMITED'SHeadquartersfacility,extendingto23,310sqm(250,910sqft)on3.75Hectares(9.26acres)

• ThefacilitiesonsiteincludeamodernDistributionWarehousetogetherwithahighspecification'flagship'AdministrationOfficebuildingandtwowarehouses

• FullylettoJVCKENWOODUKLIMITEDonthreeseparateFRIleasesatatotalcurrentpassingrentof£3,395,873perannum

• Aweightedaverageunexpiredleasetermof9.33yearswithtwooftheleasesexpiringin2025andthethirdin2020

• Twooftheleases,accountingfor90%oftheincome,aresubjecttoafixedfiveyearlyrentalincreasein2020equivalentto2.75%perannum

• JVCKENWOODUKLIMITEDhavesubletvariouspartsofthePropertyaccountingforapproximately58%ofthetotalcurrentrentalincome

• Freehold

• Theopportunityprovidesinvestorsandoccupierswith305m(1,000ft)frontagetotheNorthCircular,adominantorbitalrouteforGreaterLondon

• StaplesCornerwillbenefitfromtheongoing£4.5billionregenerationofBrentCrossCricklewood1miletothenorth-east

Weareinstructedtoseekoffersinexcessof£53,495,000 (Fifty ThreeMillion, Four Hundred and Ninety Five Thousand Pounds),subjecttocontractandexclusiveofVATwhichequatestoaCapitalValueof£213psf.

ApurchaseatthislevelreflectsaNet Initial Yield of 6.00%assumingstandardpurchaser'scostsof5.80%.

4

LOCATION

StaplesCornerisalandmarkroadjunctioninNorthWestLondon.ItislocatedatthestartoftheM1motorwayandsitsatthejunctionoftheA406(NorthCircularRoad),andA5,leadingintoCentralLondon.Assuch,itisoneofthemostprominentandaccessiblecommerciallocationsinNorthLondonandcontinuestodevelopasanestablishedcommercialcentreandretaillocationduetoitsexcellenttransportlinksanddiverseconsumercatchment.

TheM1motorwayisEngland’sprimaryNorth-Southmotorwaystretchingover190miles,connectingLondonwithLeedsandfurthernorthviatheA1(M).TheA406isLondon’sprimaryringroadextendingfromChiswickinthewesttoWoolwichintheeastandtheA5EdgwareRoadrunsfromEdgwareinNorthLondondirectlyintoCentralLondonatMarbleArchtothesouth.AllofthesemajorroutesconvergeatStaplesCorner.

ImmediatelyeastofStaplesCorner,theA406NorthCircularconnectswiththeA41HendonWay.TheA41leadsontotheA501,amajorarterialroute10kmtothesouthoftheProperty.TheA501providesdirectaccesstoEustonandKing'sCrossStPancrasstations(twoofLondon’sprimaryrailstations)immediatelytotheeast,andtheA5EdgwareRoad,MaryleboneandPaddington(theclosestnationalraillinetotheProperty)tothewest.

CricklewoodRailwayStation(1.6milestothesouth-east)formspartoftheBrightontoBedfordThameslinkLine,linkingtoStPancrasInternationalin12minutes.HendonRailwayStation(1.5milestothenorth-west)providesdirectaccesstoLondon,WimbledonandSuttonsouthboundaswellasStAlbansandLutonnorthbound.StaplesCorneralsobenefitsfromregulartubeservicesfromBrentCrossUnderground(NorthernLine)locatedapproximately1.4milesnorth-eastofthesite.

BrentCrossCricklewood,1miletothenorth-eastoftheProperty,isundergoingasignificant£4.5bnregenerationproject,spanninga20yearperiodtodeveloptheareaintoa‘worldclassdestination’.Thiswillseethebuildingof7,500newshomes,4millionsqftofofficespace,improvedtransportlinksandanextensionoftheBrentCrossShoppingCentre.

Distance By Road Km Miles

CentralLondon 9.65 6

M25/M1MotorwayJunction 24.14 15

LondonHeathrowAirport 25.75 16

LondonLutonAirport 43.45 27

LondonStanstedAirport 61.10 38

M25

M25

M23

M1A1(M)

M26

M2

M11

M40

M4

M3

M1

London Stanstead Airport

London Luton Airport

1

4

10

1

1

4

54 6

12

3 577

8

A21

A28

A13

A20 A2

A1

A26

A22

A22

A2299

10

7

9a 9

11

88

9

3

2

31

1

1

3

4

9

14

13

428

29

6

7

8

10

9

4

1

4

16

8 Central LondonCentral London

Gatwick

Ashford

Tonbridge

Folkestone

Crawley

Tonbridge

A413

A414

A406 A501A41

A5

A406

A418

A4010

A5A6

A41

A10

A12A602

A505

Milton KeynesMilton Keynes

Reading

St AlbansSt Albans

Watford

ChelmsfordChelmsford

Reading

Birmingham/The North West

Slough

Watford

Wembley

BedfordBedford

Slough

Heathrow AirportHeathrow Airport Dartford

En�eldEn�eld

Romford

The North

Gatwick

A414

London Stansted Airport

London Luton Airport

Swindon/Bristol

Felixstowe/Harwich

Dover

Nottoscale

5

JVCKENWOOD UK

Staples Corner Business Park

Cricklewood

Paddington

Staples Corner Retail Park

Oxgate Centre

Brent Cross/Cricklewood Regeneration

City of London

Hendon Waterside

Brent Cross Shopping Centre

M1 JUNCTION 1

M1

A5

A5

A406

A406 North Circular Road

A5 Edgware Road

A406

The North/Birmingham

Wembley/Park Royal

6

SITUATION

StaplesCornerbenefitsfromalargecatchmentareaduetotheimmediatelysurroundingresidentialareasintheLondonBoroughsofBrent,Barnet,HarrowandCamdenandthewiderGreaterLondonandNorthM25locationasaresultoftheexceptionaltransportlinks.

ThePropertysitsapproximately400mtothewestofStaplesCornerJunction,inaprominentpositionwitha305m(1,000ft)frontagetotheA406NorthCircularRoad.Junction1oftheM1motorwayandtheA5arelocatedimmediatelytotheeast,bothwithinhalfakilometre.

Thesiteextendstoapproximately3.75Hectares(9.26acres)andisboundedbytheA406tothesouthandBrentReservoir(WelshHarp)tothenorth.AccessisprovidedofftheA5EdgwareRoadviaPriestleyWaytothenorthofStaplesCornerjunction.ThereisanadditionalpointofegressdirectlyontotheA406NorthCircularclosetothejunctionwiththeA5.

Theimmediatesurroundingareaisrecognisedasanimportantcommerciallocation,asevidencedbythenumerousanddiversecommercialoperatorsnearby,includingthosefromtheindustrial,officeandretailwarehousingsectors.

M25/The North

Brent Cross

Wembley

Brent Cross

Park Royal

M11/En�eld/Stansted

North Circular

A5A406

A406

A406

A41

A501M40/Birmingham

M4/Heathrow/Bristol Hammersmith

West End

London

City of London

Marylebone

King’s Cross

Euston

Paddington

A5

Staples CornerRetail Park

Brent CrossShopping

Centre

Staples CornerBP & Oxgate Centre

HendonWaterside

Priestley Way

EDGWARE ROAD

Wembley/Park Royal/A40/M4/

Heathrow

Paddington/Marylebone/West End/Mayfair

Euston/King’s CrossA501/West End/City of London

En�eld/M11/Stansted

Watford/M25/The North

Rail/LondonUnderground Services

Distance from Property

Comments

BrentCrossUnderground(NorthernLine)

1.4miles 17minutestoLondonStPancras

HendonCentralRailStation

1.5miles16minutestoLondonStPancras

5trainsperhour

CricklewoodRailStation

1.6miles12minutestoLondonStPancras

5trainsperhour

LondonPaddingtonRailStation

5.1milesRegularservicestoWestLondon,Thames

Valley,SouthWestEnglandandSouthWales

NottoscaleNottoscale

JVCKENWOOD UK

JVCKENWOOD UK

7

BRENT CROSS CRICKLEWOOD

TheprofileofStaplesCornerissettobenefitfurtherfromtheBrentCrossCricklewoodregenerationplans,whichcoversanimpressiveareaofapproximately350acresimmediatelynorth-eastoftheProperty.

Planningpermissionfortheregenerationprojectwassecuredin2014,forinvestmentpartnersHammersonandStandardLifeInvestorstoundertakea£4.5bndevelopment.Thisisexpectedtocoversixphasesofdevelopment,spanninga20yearperiodandwilltransformtheBrentCrossareaintoa‘worldclassdestination’.ArgentRelatedhasbeenselectedtoworkwithBarnetCounciltodeveloptheBrentCrossSouthsite.

Oncompletion,thedevelopmentwillseethebuildingof7,500newhomes,4millionsqftofofficespace(inturncreatinganestimated27,000fulltimejobs),improvedtransportlinks(includingthecreationofalargerStaplesCornerjunction)andanextensionoftheBrentCrossShoppingCentre.

Thefirstphasesoftheregenerationprojectarenowunderway,havingbeguninMarch2015.Theyinclude:thecreationoftwocommunityparksaswellascreatingthefirstphaseofBrentCrossRiversidePark;improvementstolocalroadsandjunctions;alongwithworkstoprepareforanewtowncentreoneithersideoftheNorthCircular.Thelatterwillbelinkedbyalandmarknew‘LivingBridge’.Furtherinformationavailableatbrentcrosscricklewood.com

In2016,theregenerationisexpectedtofocusontherefurbishmenttoandextensionofBrentCrossShoppingCentre,aswellasdoublingthesizeoftheexistingbusstation.Alreadyin2016,threenewinternationalbrands,includingTeslaMotorsandstationeryshopSmiggle,haveagreeddealstotakespaceinthecentre.

Movingforwards,suchimpressivelargescaleinvestmentandregenerationplansaresettofurtherimprovetheappealoftheareatoadiverserangeofoccupiers.

STAPLES CORNER

StaplesCornerisanhistoricandmajorlandmarkroadjunctionatthestartoftheM1motorway,England’sprimaryNorth-Southmotorwaystretchingover190miles,connectingLondonwithLeedsandfurthernorthviatheA1(M).

Theiconicjunctionhastwolinkedroundaboutsandflyovers,whichconnecttheA406NorthCircular(theprimaryringroadaroundCentralLondon)withtheA5EdgwareRoad(providingdirectaccessintoCentralLondon)andthestartoftheM1motorway.

Asaresult,thejunctionisconsideredanimportantlocation,providingunrivalledaccessacrossandintoCentralLondonaswellastothenorthofEngland.Awideanddiverseoccupiermixhasconsequentlybeenattractedtotheimmediatearea.

IndustrialoccupiersincludeHarrisonVarmaJoineryLtdandMagnetLtdattheOxgateCentre,amodernindustrialestatelocatedashortdistancesouthofthePropertywithfrontagetotheA5.TradecounteroperatorsincludeHowdensJoineryandToolstationatthe1000NorthCircularRoadIndustrialEstateimmediatelysouthofthePropertyacrosstheA5,andHSSHiredirectlyeastofthePropertyattheadjacentAquariusBusinessPark.

RetailwarehouseoccupiersinthevicinityincludeMaplinattheStaplesCornerRetailParkimmediatelyeastofthePropertyandB&QashortdistancesouthalongtheA5atCricklewood.

TheA5ishometoawideanddiverserangeofcommercialoccupierslocatedatvariousintervals,includingaHyundaicarshowroomtothenorthofthesiteandaVauxhallcardealershiptothesouth.

StaplesCorneralsobenefitsfromanexcellentretailprovision,owinginlargetotheBrentCrossShoppingCentre(setforrefurbishmentandextensionthisyearundertheBrentCrossCricklewoodplans)andtheStaplesCornerRetailPark,bothofwhichareimmediatelyeastofthePropertyacrosstheA5.

UndertheBrentCrossCricklewoodregenerationplans(discussedbelow),thereisprovisionfora£200minvestmentinthelocalroadnetwork,includingalargerStaplesCornerjunction.Thiswillsignificantlyimprovetrafficflowandtheappealofthearea.

TheThameslinkrailwayline(stoppingatCricklewoodRailwayStation1.6milestothesouth-eastoftheProperty)runsfromBedfordtoBrighton(throughLondon)andservesbothLondonGatwickAirportandLondonLutonAirport.UndertheBrentCrossCricklewoodredevelopmentplansaThameslinkstationatBrentCrossisproposed.

£4.5BN REGENERATION OF BRENT CROSS CRICKLEWOOD CURRENTLY UNDERWAY TO

CREATE ‘WORLD CLASS DESTINATION’

BrentCrossCricklewoodIndicativeMasterplan

A406

TransformedBrentCrossShoppingCentre

A41

BrentCross/RiversidePark

BrentCross/RiversidePark

FutureHousing

ClaremontPark

PlannedOfficedevelopment(Phase2)

PlannedOfficeDevelopment(Phase1)

£5mCommunityProject(ClitterhousePlayingFields)

LivingBridge

PlannedBrentCrossThameslinkStation

8

DESCRIPTION

The Property comprises four buildings situated on a regular shaped site. The buildings include a modern well specified Distribution Warehouse and ‘flagship’ Administration Office, both built in 2005, along with two additional detached warehouses, ‘Warehouse 3’ and ‘Warehouse 4’, which were subject to a comprehensive refurbishment in 2005.

The four buildings are let in their entirety to JVCKENWOOD UK LIMITED as the company’s UK headquarters and approximately 84% of the accommodation is also sub-let to a diverse range of occupiers, equally attracted by the high profile Staples Corner location.

The buildings sit within a secure site which benefits from 24 hour security and provides ample parking provision to the south west corner, adjacent to the Administration Office building and Distribution Warehouse. Additional overspill parking areas are situated to the south-east corner of the site by Warehouse 3.

9

10

DISTRIBUTION WAREHOUSE

Thisimpressivemodernfacilityprovidesaprimewellspecifieddistributionunitwithancillaryofficescapableofsingleormultipleoccupation,asevidencedbytherecentsublettings.Theancillaryofficeaccommodationatfirstandsecondfloorlevelislinked,viaabridge,tothemainAdministrationOfficebuilding.

Thewarehousebenefitsfromthefollowingkeyfeatures:

• Steelportalframeconstructionwithprofilesheetcladelevations

• Eavesheightrangingfrom11-12.5m

• 12docklevelloadingbays,2levelloadingdoorsanda40kn/sqmfloorloading

• Solidconcretefloormezzaninestructurewithaclearheightunderneathof5.5m

• Extensiveyardarea

Thefirstandsecondfloorofficeaccommodationisofmodernspecificationandincludesfullyaccessibleraised,carpetedfloors,suspendedceilingsandfourpipefancoilair-conditioning.

ADMINISTRATION OFFICE

Thisflagshipofficebuildingisarrangedovergroundandfourupperfloorsonarectangularfloorplate.Thefloorplatesprovideopen-planaccommodationandarecapableofsingleormultipleoccupation.Tothenorthelevation,thePropertyhasacleardoubleglazedcurtainwallprovidingattractiveviewsacrossBrentReservoirandtheWelshHarp.

Thebuildingisfittedouttoahighspecificationwhichincludes:

• Fullyaccessibleraised,carpetedfloors

• Fourpipefancoilair-conditioning

• Suspendedceilingsanddoubleglazedwindows

• Floortoceilingheightof2.7m

• MaleandfemaleWCs

• Three10-person800kgKonepassengerlifts

Atgroundfloorlevelisamoderncanteenfacilityknownasthe‘BoathouseCafé',whichisavailableforusebyalloccupiersonsite.

AccessbetweentheAdministrationOfficeandtheancillaryofficeswithintheDistributionWarehouseisprovidedbyalinkbridgeatsecondfloorlevel,whichisvisibleuponenteringthePropertyviaPriestleyWay.

11

WAREHOUSE 3

Locatedatthesouth-eastcornerofthesite,thisunitisofconcreteframeconstructionwithpartbrick,partblockworkelevationsandsolidconcretefloor.TheunitconnectswiththeadjacentWarehouse4viatworollershutterdoors.

Havingbeenrefurbishedin2005,thespecificationincludes:

• Cleareavesheightofapproximately5m

• 2levelaccessloadingdoorstothewestofthebuilding

• WCfacilities

• Partitionedofficeaccommodation

• CCTVandsurveillancemonitoringsystems

ImmediatelytothesouthoftheunitalongthesouthernboundaryofthePropertyisanoverspillparkingarea,whichcomplimentsthealreadyextensiveparkingprovision.

WAREHOUSE 4

Thisunitisofconcreteframeconstructionwithpartbrick,partblockworkelevationsandsolidconcretefloor.

Alsosubjecttorefurbishmentin2005,thespecificationincludes:

• Cleareavesheightofapproximately4m

• 5electricoperateddocklevelloadingdoors

• Partitionedofficeswithinsinglestoreyofficeblocktothefrontofthewarehouse

• CCTVandsurveillancemonitoringequipment

12

SITE AREA

ThePropertyissituatedonanextremelyprominentandregularshapedsitewithatotalsiteareaof3.75Hectares(9.26acres).

ACCOMMODATION

ThePropertyhasbeenmeasuredbyPlowmanCraveninaccordancewithboththeInternationalPropertyMeasurementStandards(IPMS3)(AdministrationOfficebuilding)andtheRICSCodeofMeasuringPractice(SixthEdition)(DistributionWarehouse,Warehouse3andWarehouse4).

ThePropertyprovidesthefollowingareas:

Building Sq m Sq ft

AdministrationOffices(IPMS3)*

5,163.4 55,579

DistributionWarehouse(GIA)

12,496.8 134,516

Warehouse3(GIA) 2,721.9 29,299

Warehouse4(GIA) 2,927.9 31,516

TOTAL 23,310 250,910

Inadditionthereisafurther4,396sqftofmezzanineaccommodationintheDistributionWarehouse.

*TheAdministrationOfficeprovidesaNIAof5,054.5sqm[54,407sqft].

ThePlowmanCravenmeasuredsurveydatedFebruary2016iscontainedinthedataroomandisintendedtobeassignabletothePurchaser,ifrequired.

13

ADMINISTRATION OFFICE 1ST FLOOR PLAN

DISTRIBUTION WAREHOUSE GROUND FLOOR PLAN

Forindicativepurposesonly

Forindicativepurposesonly

LIFTS AND ACCESS STAIRWELLSTAIRWELL

PRIESTLEY WAY

NORTH CIRCULAR ROAD

FIRST AND SECOND FLOOR OFFICES

MEZZANINE

PRIESTLEY WAY

DOCK LEVEL AND LEVEL LOADING BAY

PRIESTLEYWAY

A406NORTHCIRCULAR

14

Drain

45.7m

45.6m

46.6m

43.5m

46.2m

FBShelterGantry

FB

COLES

THE LINK

NORTH CIRCULAR ROAD

JVC Business Park

1000

North Circular

Road

10

1

719

4

Works

162

3

160

El

Unit

3

Sub Sta

Unit

56

1

Works

Works

721a

7

Works

6 to 8

970

998Unit 6

9

Works

5

158

Works

Unit

1

968

Unit

2

JVC House

El Sub Sta

Works

11

721

966

Shelter

Ordnance Survey © Crown Copyright 2016. All rights reserved. Licence number 100022432. Plotted Scale - 1:1778

TENANCY INFORMATION

TheentirePropertyislettoJVCKENWOODUKLIMITEDonthreeseparateleasesatatotalrentpassingof£3,395,873perannum.

Theleasesaresubjecttofixedrentalincreasesequalto2.75%perannum,compoundedeveryfiveyears.ThenextrentreviewintheDistributionWarehouse/AdministrationOfficeandWarehouse3leasesison25December2020.TheleaseonWarehouse4isnotsubjecttofurtherreview.

ThePropertyhasaweightedaverageunexpiredleasetermof9.33yearstoexpiries.

UnderthetermsofeachleasetheTenanthasanoptiontorenew,foreither10,15or20years(DistributionWarehouse/AdministrationOffice,Warehouse3)andfor5,10,15or20years(Warehouse4).

Demise Tenant Area (sq ft) Lease Start Lease Expiry Rent (pa) Rent (psf) Comments

DistributionWarehouse/AdministrationOffice

JVCKENWOODUKLIMITED

190,095 29/09/2003 24/12/2025 £2,752,377 £14.48

Rentincreasesto

£3,152,225on25

December2020.Outside

theL&T1954Act.

Warehouse3JVCKENWOOD

UKLIMITED29,299 29/09/2003 24/12/2025 £308,102 £10.52

Rentincreases

to£352,861on25

December2020.Outside

theL&T1954Act.

Warehouse4JVCKENWOOD

UKLIMITED31,516 29/09/2003 24/12/2020 £335,394 £10.64

Rentnotsubjectto

furtherreview.Outside

theL&T1954Act.

TOTAL 250,910 £3,395,873

BothaTransformerChamberadjacenttotheDistributionWarehouseandasubstationadjoiningWarehouse4areheldonleases.Furtherinformationheldonthedataroom.

1

2

3

4

TENURE

Freehold.

1.AdministrationOffice

2.DistributionWarehouse

3.Warehouse3

4.Warehouse4

Key

15

SUB-TENANCY INFORMATION

AnumberofpartsofthePropertyhavebeensub-let,asperthesub-tenancyschedulebelow.

Demise TenantArea*

(sq ft)Start date Expiry Date Rent Review Break Dates Rent

Schedule of Condition

Outside the L&T 1954 Act

Comment

AdministrationOffice

4thFloor IIAA 10,433 04/02/2013 24/11/202504/02/201804/02/2023

04/02/201904/02/2022

£177,702 Yes YesAtreviewrentincreasestohigherof£194,369oropenmarketrent

3rdFloorStanmoreQualitySurfacingLimited

10,760 24/06/2014 24/11/202524/06/201924/06/2024

23/12/201823/06/2021

£172,640 Yes YesAtreviewrentisgreaterof£172,640orthepassingrentmultipliedbyRPIMultiplier

2ndFloor Casio 10,200 23/06/2014 24/11/202523/06/201923/06/2024

23/06/2021 £153,000 Yes Yes

1stFloor Casio 10,609 23/06/2014 24/11/202523/06/201923/06/2024

23/06/2021 £159,135 Yes Yes

GroundFloor Casio 5,488 23/06/2014 24/11/202523/06/201923/06/2024

23/06/201923/06/2021

£54,885 Yes Yes

DistributionWarehouse

GFWarehouse Vitabiotics 94,479 07/03/2012 06/03/2019 07/03/201807/03/201507/03/2017

£865,000 Yes Yes07/03/2018review:Rentincreasestohigherof£994,750oropenmarketvalue

GFWorkshop IIAA 6,901 04/02/2013 24/11/202504/02/201804/02/2023

04/02/201904/02/2022

Includedunder£177,702IIAArentabove

Warehouse3

Unit3C.S.LoungeSuitesLimited

29,225 09/07/2012 08/07/2017 N/A 09/07/2015 £182,656 Yes Yes

Warehouse4

Unit4C.S.LoungeSuitesLimited

31,963 09/07/2012 08/07/2017 N/A 09/07/2015 £191,800 Yes Yes

210,058 £1,956,818

*TheareasabovehavebeenprovidedbytheVendor.

16

Inadditiontotheexamplesabove,50,000sqftatNavigationPark,EnfieldiscurrentlyunderoffertoCamdenBreweryatarentintheregionof£10-10.25psfaswellas81,000sqftat1WesternAvenueBusinessPark,atarentconsideredtobe£12.50psfonthewarehouseelement.

Thefollowmapdemonstratesprimeindustrialrentsforsurroundinglocations:

Office Market

AsJVCKENWOODUKLIMITED’soperationsatthePropertyhavetransferredtoEurope,recentsublettingshavehighlightedthestrongoccupationaldemandfromhighprofile,internationalbrandsseekingHeadquartersgradepremisesoutsideofthecoreLondonlocations.

AcrosstheNorthernM25officemarket2015showedanincreaseintakeupwithfiguresprimarilydrivenbyPharmaceuticaldemandgenerallybutmorespecificallyAstrazenica'sacquisitionof850,000sqftinCambridge.Outsideofthis,takeuplevelswerebelow5yearaveragesduetolimitedavailabilityandoptionsforoccupiersacrosstheregion.

Inlightoftheabovetheregionhasexperiencedpositiverentalgrowth.Inparticular,primerentsinWatfordcontinuetoimprovewithSmith&Nephewrecentlyacquiring60,000sqftonCroxleyGreenpaying£23.25psf.Inaddition,limitedsupplyofaccommodationandeverincreasingrentallevelsinthetraditionallycoreofficemarketsintheWestEnd,HammersmithandChiswick,isgeneratingimproveddemandacrosstheregionincludingQuintains,WembleyParkschemewhichisseekingpreletopportunitiesofupto750,000sqft.

AvailabilityofspaceisexpectedtodeclineintheSouthM25marketsasoccupierdemandcontinuestoimproveandintheNorthM25marketsasaresultofconversionstoalternativeuses.ThisisexpectedtocontinueasaresultoftheextensiontoPermittedDevelopmentRights(PDR).

AddressTransaction

DateTenant Lease Term Area (sq ft) Rent (£/psf)

Phase2Origin,ParkRoyalUnderoffer-(CompletionMarch-16)

Wasabi 15Years 65,000 c.£14.25

GParkEnfield(IDIGazeley) Dec-15 Yodel 10Years 97,952 £9.25

Units18and20,Westway,Acton(SEGRO) Dec-15ClassicFineFoods

15Years 24,908 £14.75

UnitsB&C-MowlemTradingEstate,HaringeyIndustrialEstate,Edmonton

Oct-15UKPowerNetwork

15Years 21,420 £9.50

Unit1,GreenfordPark

Aug-15BromptonBike

15Years(BreakinYear10)

85,999 £12.25

Unit32,HorsendenLaneGreenfordUB67RL

Jun-15DeluxeMediaEuropeLtd

15Years 53,958 £11.95

SuiteDC6A/B,StockleyRoad,HeathrowUB79BN

Mar-15AdelieFoodsGroupLtd

15Years 102,900 £13.00

M25

M4

M4

A406

M1

M1(M)

M3

A3

A3

A24

M23

M40

M11

M25

A5

M1

£13.75 psf

£9.75 psf

£10.25 psf

£14.00 psf

£12.50 psf

£12.75 psf

£12.00 psf

£9.00 psf

£13.50 psf

LONDON

GATWICK

LOCATION

StaplesCornerisalandmarkroadjunctioninNorthWestLondon.ItislocatedatthestartoftheM1motorwayandsitsatthejunctionoftheA406(NorthCircularRoad),andA5,leadingintocentralLondon.Assuch,itisoneofthemostprominentandaccessiblecommerciallocationsinNorthLondonandcontinuestodevelopasanestablishedcommercialcentreandretaillocation,duetoitsexcellenttransportlinksanddiverseconsumercatchment.

TheM1motorwayisEngland’sprimarynorth-southmotorwaystretchingover190miles,connectingLondonwithLeedsandfurthernorthviatheA1(M).TheA406istheprimaryringroadaroundCentralLondonandtheA5EdgwareRoadprovidesdirectaccessintoCentralLondon.AllofthesemajorroutesconvergeatStaplesCorner.

ImmediatelyeastofStaplesCorner,theA406NorthCircularconnectswiththeA41HendonWay.TheA41leadsintotheA501,amajorarterialroute10kmtothesouthoftheProperty,whichprovidesdirectaccesstoEustonandLondonKingsCrossStPancrasstations(twoofLondon’sprimaryrailstations)immediatelytotheeastandconnectswiththeA5EdgwareRoad,MaryleboneandPaddington(theclosestnationalraillinetotheProperty)tothewest.

CricklewoodRailwayStation(1.6milestothesoutheast)formspartoftheBrightontoBedfordThameslinkLine,linkingtoLondonStPancrasInternationalin12minutes.HendonRailwayStation(1.5milestothenorthwest)providesdirectaccesstoLondon,WimbledonandSuttonsouthboundaswellasStAlbansandLutonnorthbound.StaplesCorneralsobenefitsfromregulartubeservicesfromBrentCrossUnderground(northernline)locatedapproximately1.4milesnortheastofthesite.

BrentCrossCricklewood,1miletotheNorthEastoftheProperty,isundergoingasignificant£4.5bnregenerationproject,spanninga20yearperiodtodeveloptheareaintoa‘worldclassdestination’.Thiswillseethebuildingof7,500newshomes,4millionsqftofofficespace,improvedtransportlinksandanextensionoftheBrentCrossshoppingcentre.

Distance By Road Km Miles

CentralLondon 9.65 6

M25/M1MotorwayJunction 24.14 15

LondonHeathrowAirport 25.75 16

LondonLutonAirport 43.45 27

LondonStanstedAirport 61.10 38

Leeds 303 188

Manchester 310 193

Birmingham 180 111

HEATHROW

BOREHAMWOOD

EDMONTON

PARK ROYAL

ENFIELD

STAINES

SLOUGH

WATFORD

WEMBLEY

JVCKENWOOD UK

OCCUPATIONAL MARKET

StaplesCornerprovidesawell-establishedcommerciallocationwhichishometoawiderangeoflocal,regional,nationalandglobaloccupiersattractedbythecloseproximitytoCentralLondonandtheexcellenttransportlinksacrosstheRegionsandtherestoftheUK.ThePropertyprovidesaccommodationsuitabletoadiverseoccupierbase,mostofwhomusethisastheirNationalHeadquarters.

Industrial Market

StaplesCorneroffersoccupiersaGreaterLondonlocationwithexcellent,quickaccessintoandacrossCentralLondon(viatheA5andA41)andacrosstheSouthEastandtherestoftheUKviatheM1andM25.

Theoccupiermarketforlogisticsremainsstrong,drivenprimarilybythefastgrowinge-commerceandthirdpartylogisticsbusinessesinaneconomywhereoccupierconfidenceremainspositive.Muchofthedemandremainsfocusedonthebigboxrequirementsbuthealthydemandexistsformid-rangeandcrossdockfacilitiesasoccupiersseektoimprovedistributionnetworksacrosstheUK.

ThecontinuedfallintheavailabilityofGradeAspaceandimprovingheadlinerentsin2015sawanotableincreaseinBuildtoSuitopportunitiesandSpeculativeDevelopmentparticularlyacrosstheSouthEast.SupplyforindustrialisparticularlylimitedintheGreaterLondonmarket,andfortheLondon,SouthEast(andEast)marketsavailabilityhasconsistentlyfallensince2013,with2015levelsdownapproximately23%on2013anddown3%on2014.

PrimeGreaterLondonrentsaregenerallyachievedinParkRoyalandHeathrowwherethedemandandsupplydynamicsaremostprevalentandrecentlettingsinParkRoyalhaveprovenheadlinerentsof£14-14.50psf(+20,000sqft).

SupplyconstraintsareexpectedtocontinueacrossGreaterLondonandtheSouthEastandwithaforecastofeconomicstabilitythroughout2016occupiergrowthisexpectedtoleadtofurtherrentalgrowthintheshorttomediumterm.

ThetablebelowdemonstratesrecentrentaltransactionsinandaroundtheGreaterLondonarea:

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Thegraphbelowdemonstratessomeofthecurrentprimeofficerentallevelsinnearbylocations:

Prime Office Rents / psf

Retail Warehouse Market

ProximityofStaplesCornertotheNorthCircular,M1,A41andBrentCrosshasattractedhouseholdretailwarehouseoperatorsincludingMaplinatStaplesCornerandB&QalongtheA5atCricklewood.Primerentsforgoodquality,prominentretailwarehousespacehaverecentlyachievedinexcessof£30psf.

Residential Market

AnumberofresidentialschemesareunderwayinthevicinityofStaplesCorner,themostrelevantbeingtheresidentialphaseofBrentCrossCricklewood,whichwillseethedevelopmentof7,500newhomes.Withinthisscheme,capitalvaluesareexpectedtoachieveintheregionof£700psf.

BarrattHomesareintheprocessofdevelopingHendonWatersideinWestHendon,approximately0.75milestothenorthoftheProperty,wherethirtyacresoflandarebeingdevelopedtoprovide2,171newhomes.Thelatestphase,‘Vista’,issetforcompletioninMay2016andalready204ofthe216plotshavebeensold,wheresalesvalueshaveachievedupto£790psf.

OthernearbypipelinedevelopmentsincludeStGeorge’sschemeatBeaufordPark,Collindale(approximately2.5milesduenorthoftheProperty),wheresalesvalueshavereachedinexcessof£700psf.

INVESTMENT MARKET

DespitetheUKrateofeconomicgrowthslowingover2015,economicactivityisexpectedtoremainfirminthelongtermwithaveragegrowthof2.5%peryearforecastoverthedecadeto2025.

Themarketfacedcontinueddownwardpressureoninitialyieldsin2015asimprovedoccupiermarketsdemonstratedpositiverentalgrowth,drivinginvestorreturns.

Theinvestmentmarketissetforcontinuedstabilitythrough2016drivenbythecontinuedtraditionaldemandforprimeassetsfromtheUKInstitutionsandincreasedappetitefromoverseasinvestors.

ThegreatestdemandforofficeandindustrialinvestmentopportunitiesremainsintheGreaterLondonandSouthEastmarketsbutinvestordemandremainsforcoreregionalgeographies.

Industrial Investment Commentary

GreaterLondonlogisticsopportunitieshavebeen,andarecurrently,extremelyrareandassuchbenchmarkyieldsexistinthecorelocationssuchasParkRoyalandHeathrowwithlandconstraints,greatestoccupierdemandandstrongestrentalgrowthprospects.

UKinstitutions,overseasinvestorsandpropertycompanieslookingtogrowlogisticsplatformshavebeenthemostactiveinthesesectorswithprimeyieldsofcirca4%achieved.

InSeptember2015EyreEstatepaid£17.14mfortheGeoPost,Dagenhamassetwhichwasletonanew25yearleasereflecting4.17%andCBREGIrecentlyacquiredtheRygorCommercialsunitinBedfont,withaleasetermof14.8yearsremaining,paying4.78%.

Anumberofrecenttransactionsaresetoutbelow:

Property DateUnexpired

Lease TermSize (sq ft) Price NIY (%)

Cap Val (£ per sq ft)

Purchaser

AllportCargoServices,Hayes Dec-15 11years 105,000 £21,900,000 4.90% £209 SEGRO

XPOLogistics,Maidstone Dec-15 5years 77,841 £6,930,000 6.09% £89CBREGlobal

Investors

RygorCommercials,Bedfont Oct-15 14.8years 22,312 £6,180,000 4.78% £277CBREGlobal

Investors

Geopost,Dagenham Sep-15 25years 65,746 £17,140,000 4.17% £261 EyreEstate

Office Investment Commentary

Fortheofficeinvestmentmarket,investorsentimenthasremainedstrongthroughout2015acrosstheSouthEastwiththeThamesValley,SouthM25andWestLondonmarketsallrecordinghighinvestmenttransactionsvolumes.MostnotabletransactionsincludeAEWEurope’s£325mpurchaseofBathRoad,SloughandM&Gs£167mpurchaseofBedfontLakes,Heathrow.

Transactionsvolumesfor2015acrosstheSouthEasthaveincreasedby31%onthepreviousyear.TheNorthM25regionrecordedthehighest2015increasewith£266mtransacted,anincreaseof81%on2014.Ofnoteincludesthe£33.50mpurchaseofSkanskaUK’sHeadquartersatMapleCrossbyaPrivateMiddleEasternInvestorinNovember.

Withdemandcontinuingforofficestockfromanincreasinglydiverseinvestorbaseandcontinueddownwardpressureonprimeyields,(WestLondonyieldsof4.40%andThamesValleyyieldsof5.10%)investorsarelookingbeyondcorelocationswhereoccupationaldemandexists,alongwithpositivemarketdynamicswhichsupportrentalgrowthinthemediumtolongterm.

£0.00

£80.00

£70.00

£60.00

£50.00

£40.00

£30.00

£20.00

£10.00

Cambridge Chiswick Hammersmith London(Paddington)

London(King’s Cross)

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COVENANT INFORMATION

JVCKENWOOD UK LIMITED(companyregistrationnumber03537298)

JVCKENWOODUKLIMITEDistheUKarmofamultinationalelectronicscompanyheadquartersinYokohama,Japanandwasformedasaresultofthe2008mergerofJVCandKenwoodCorporation.

Bothbusinesseshavewellestablished,successfulglobalbrandswithJVCdatingbackto1927andKenwoodoriginatingfrom1946.JVCKENWOODUKLIMITEDnowpromotesitselfunderonebrandandwiththreespecificdivisionsofAutomotive,PublicServicesandMediaServicesfocusingoncarandhomeelectronics,wirelesssystems,CCTVandRadioEquipment.

JVCKENWOODUKLIMITEDproductsareseeninmanyeverydayautomotiveandhomedevicesandithasalsorecentlyextendeditscontractwithMcLarenMercedestoprovidetheF1TeamwithDigitalRadiosystems,acontracttheyhaveheldsince1991.Thecompanyhasalsorecentlycelebratedasuccessful10yearrelationshipwithGarminwhichbegancombiningnavigationsystemsintointegratedcarmountedAVsystems.Thisworkingrelationshipwillbefurtherenhancedbytherelease,laterthisyear,ofanewmodelwhichsupportsAppleandAndroidproductstoimproveDigitalCockpitSystemsforaglobalmarketplace.

JVCKENWOODUKLIMITEDisHeadquarteredatthePropertyanddistributesconsumerelectronicproductsthroughouttheUK,ChannelIslands,IsleofManandRepublicofIreland.

ThecompanyhasaDun&Bradstreetratingof2A1,whichrepresentsaminimumriskofbusinessfailure.

Furtherinformationcanbefoundatwww.jvckenwood.com

SUB-TENANCY COVENANT INFORMATION

ThePropertybenefitsfromattractiveincomediversificationwithsubtenancyincomeaccountingforapproximately58%oftheannualrent.Abriefsummaryofthesubtenantsissetoutbelow:

Vitabiotics Limited-establishedin1971,Vitabioticshasmanufacturedinnovativehealthcareproductsforover40yearsandin2013becametheUK’sNo.1vitaminsupplementcompany(source:IRIvaluesales52w/e20April2013).HeadquarteredashortdistancefromthePropertyontheA406NorthCircular,thecompanyhascreatedalargeportfolioofproductsattheforefrontofscientificdevelopmentswithwell-knownbrandssuchasWellman,Wellwoman,JointaceandImmunace.

ThePropertyisutilisedasVitabioticsglobaldistributionunit,whichalsoutilisestheAmazonSARLsupplychain.

ThecompanyhasaDun&Bradstreetratingof5A1whichrepresentsaminimumriskofbusinessfailure.ThesubleasetoVitabioticsaccountsfor25%ofthetotalrentpa.

Furtherinformationcanbefoundatwww.vitabiotics.com

Casio Electronics Co Limited-establishedin1957andHeadquarteredattheProperty,CasioistheUKsubsidiaryofTokyobasedCasioComputersCoLtd,amultinationalelectronicsmanufacturingcompany.Casioisoneoftheleadingconsumerelectronicscompaniesintheworld.It'sactivitiescomprisetheimporting,saleanddistributionofawiderangeofproductsincludingcalculators,mobilephones,cameras,musicalinstrumentsandwatches.

ThecompanyhasaDunandBradstreetratingof3A1,whichrepresentsaminimumriskofbusinessfailure.ThesubleasetoCasioElectronicsCoLimitedaccountsfor11%ofthetotalrent.

Furtherinformationcanbefoundatwww.casio.co.uk

Stanmore Quality Surfacing Limited-establishedin1995andHeadquarteredatTheProperty,StanmoreQualitySurfacingLimitedprovidesreinstatementandhighwaymaintenanceservicestoawiderangeofclientsincludingthethreemainutilities,localauthorities,highwaysagenciesandtheprivatesector.KeyclientsincludeUKPowerNetworks,Amey,SkanskaandThamesWater.

ThecompanyhasaDun&Bradstreetratingof2A1,whichrepresentsaminimumriskofbusinessfailure.ThesubleasetoStanmoreaccountsfor5%ofthetotalrentpa.

Furtherinformationcanbefoundatwww.sqsltd.co.uk

IIAA Limited -InternationalInstituteforAnti-Ageingwasestablishedin1994andisHeadquarteredatTheProperty.IIAAisaleadingproviderofeducation,servicesandproductstotheprofessionalbeautyindustryandsuppliesthousandsofsalonsaroundtheUKandIrelandwiththreemajorbrands:Environ®;JaneIredale®;andtheAdvancedNutritionProgramme®.

Thecompany,hasaDun&Bradstreetratingof2A3.ThesubleasetoIIAAaccountsfor5%ofthetotalrentpa.

Furtherinformationcanbefoundatwww.iiaa.eu

CSL Limited-TradingasSofologysincethebeginningof2016,thebusinesswasestablishedin1983andisafamilyownedretaileroffurnitureandlighting.HeadquarteredinGolborne,Warrington,thecompanyoperatesthrough31retailstoresand6distributioncentresacrosstheUK.ThenearestshowroomislocatedatBrentCrossRetailParktotheeastoftheProperty.

ThecompanyhasaDun&BradstreetratingofO4.ThesubleasetoCSLaccountsfor11%ofthetotalrentpa.

Furtherinformationcanbefoundatwww.sofology.co.uk

OVER 40% OF THE INCOME IS SECURED AGAINST SUB TENANTS THAT HAVE BEEN ASCRIBED A MINIMUM RISK OF BUSINESS FAILURE

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EPCs

EnergyPerformanceCertificatesareavailableforeachbuildingandprovideEPCratingsrangingfromC(61)toD(99).Furtherinformationincludingrecommendationreportsarecontainedinthedataroom.

ENVIRONMENTAL

WSPhaveundertakenaPhase1EnvironmentalSurveydatedFebruary2016whichiscapableofbeingassignabletothePurchaser.Furtherinformationisavailableonrequest.

VATThePropertyiselectedforVATpurposesandthereforeiscapableofbeingtreatedasaTransferofGoingConcern(TOGC).

CAPITAL ALLOWANCES

CapitalAllowancescanbemadeavailableaspartofthepurchase.Furtherinformationavailableonrequest.

DATA ROOM

AnelectronicdataroomhasbeencreatedcontainingrelevantTitle,Lease,SubleaseandPreMarketingDueDiligenceinformation.PleasecontactCushmanandWakefieldtoarrangeaccess.

PROPOSAL

Weareinstructedtoseekoffersinexcessof£53,495,000 (Fifty Three Million, Four Hundred and Ninety Five Thousand Pounds),subjecttocontractandexclusiveofVATwhichequatestoaCapitalValueof£213psf.

ApurchaseatthislevelreflectsaNet Initial Yield of 6.00%assumingstandardpurchaser'scostsof5.80%.

INVESTMENT RATIONALE

• ProminentlylocatedlandmarkGreaterLondonlocation

• UnrivalledsituationadjacenttomajorUKtransportlinks

• Modernwellspecifiedindustrialandofficebuildings

• FullyletandbenefitsfromaWAULTof9.33yearstoexpiries

• Incomeriskdiversifiedasaresultofsublettingsaccountingfor58%ofthetotalincome

• Ongoing£4.5bnregenerationprojectadjacenttothePropertyatBrentCrossCricklewood

• Highdiversityofincomeacrossthefourbuildings

• Rangeofsurroundinguseswithpotentialtoaddvaluethroughchangeofuse,subjecttotheusualplanningconsents

CONTACT

Forfurtherinformation,toarrangeaninspection,orforaccesstothedataroom,pleasecontactoneofthefollowing:

MISREPRESENTATIONCLAUSECushman&Wakefieldgivesnoticetoanyonewhomayreadtheseparticularsasfollows:1.Theseparticularsarepreparedfortheguidanceonlyofprospectivepurchasers.Theyareintendedtogiveafairoveralldescriptionofthepropertybutarenotintendedtoconstitutepartofanofferorcontract.2.Anyinformationcontainedherein(whetherinthetext,plansorphotographs)isgiveningoodfaithbutshouldnotberelieduponasbeingastatementorrepresentationoffact.3.Nothingintheseparticularsshallbedeemedtobeastatementthatthepropertyisingoodconditionorotherwisenorthatanyservicesorfacilitiesareingoodworkingorder.4.Thephotographsappearinginthisbrochureshowonlycertainpartsandaspectsofthepropertyatthetimewhenthephotographsweretaken.Certainaspectsmayhavechangedsincethephotographsweretakenanditshouldnotbeassumedthatthepropertyremainspreciselyasdisplayedinthephotographs.Furthermorenoassumptionsshouldbemadeinrespectofpartsofthepropertywhicharenotshowninthephotographs.5.Anyareas,measurementsordistancesreferredtohereinareapproximateonly.6.Wherethereisreferenceintheseparticularstothefactthatalterationshavebeencarriedoutorthataparticularuseismadeofanypartofthepropertythisisnotintendedtobeastatementthatanynecessaryplanning,buildingregulationsorotherconsentshavebeenobtainedandthesemattersmustbeverifiedbyanyintendingpurchaser.7.Descriptionsofapropertyareinevitablysubjectiveandthedescriptionscontainedhereinareusedingoodfaithasanopinionandnotbywayofstatementoffact.TheparticularswerepreparedinMarch2016.

04671 / 020 7355 2500 / taylerreid.co.uk

Jason Winfieldjason.winfield@cushwake.com0207152592007768695126

43/45 Portman Square, London, W1H 6LY

Charles Howardcharles.howard@cushwake.com0207152536407810631409

James Clarkejames.clarke@cushwake.com0207152535607860593670