HOTEL INVESTMENT TRAVELODGE LONDON UXBRIDGE, COLHAM HOUSE, BAKERS ROAD, UXBRIDGE, MIDDLESEX UB8 1RG

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1 HOTEL INVESTMENT TRAVELODGE LONDON UXBRIDGE, COLHAM HOUSE, BAKERS ROAD, UXBRIDGE, MIDDLESEX UB8 RG 28 YEAR UNEXPIRED UPWARDS ONLY UNCAPPED RPI REVIEWS

2 Uxbridge Bus and Underground Stations UXBRIDGE

3 Investment Summary A recently developed (2008), 2 bedroom, town centre hotel located in the centre of Uxbridge directly opposite the main London Underground station. Strategically located in Uxbridge town centre, a well-established commercial area situated 7 miles west of Central London and within 6 miles of Heathrow Airport. Let to Travelodge Hotels Ltd from 25th September 2008 with effectively 28.7 years unexpired amounting to 90% of the total income. Upwards only uncapped Retail Price Index (RPI) linked rent reviews every 5 years. Low passing rent equating to 4,956 per annum per room. High average occupancy figures of over 77% year to date. Ground floor units let to the Metropolitan Police and a Restaurant on leases with upwards only uncapped RPI rent reviews. The average weighted unexpired lease term is approximately 27.3 years to expiries. Total rent of 674,39 per annum. Freehold. We are seeking offers in excess of 2,4,000 reflecting a net initial yield of 5.25%, having allowed for purchaser s costs of 5.8%. Anticipated Reversionary Yield in February 209 of 5.5%.

4 LOCATION Uxbridge is a town in west London and is the administrative headquarters of the London Borough of Hillingdon. Uxbridge and Hillingdon have a population of 26,027 and 273,936 people respectively (Census 20). Located 5 miles (24. km) west-northwest of Charing Cross, it is one of the major metropolitan centres identified in the London Plan. It is a significant retail and commercial centre, and is the location of Brunel University and the Uxbridge campus of Buckinghamshire New University. Uxbridge has two shopping centres, The Pavilions and Intu Uxbridge (formerly The Chimes). Much of the town centre is pedestrianised. The town centre comprises retail outlets and a number of office buildings, including the main European offices of several international companies including Canon, PricewaterhouseCoopers and Apple. Other employers in the area include General Mills, Coca-Cola and F Hinds. 0 M3 A404 9B 8 M4 A322 4 A33 3 M4 M3 M40 WOKING /2 3 4 A3 M3 A40 UXBRIDGE 0 M4 HEATHROW AIRPORT A3 A4 A307 A309 LEATHERHEAD 9 A24 2 A243 9 A406 A24 A40 A240 A3 A205 A27 A4 8 A5 A232 8 A23 A23 7 A23 A0 LONDON A2 A22 A3 A232 6 A205 4 A3 A02 A205 A2 A20 A232 A2 A3 A A M20 2 M26 A25 A27 A2 A20 A228 A3 4 A A M2 M20 A27 SOUTHEND ON SEA MAIDSTONE GILLINGHAM 5 A229 A3 A26 A3 A3 A24 A22 A2 A228 GATWICK AIRPORT 9 A264 ROYAL TUNBRIDGE WELLS A2 A229

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6 Heathrow Airport 2 Harman House 3 Coca Cola Enterprises 4 Intu Uxbridge 5 Charter Place 6 Prezzo 7 The Pavilions M4 4 5 WEST DRAYTON STATION A437 UXBRIDGE ROAD A408 A4020 Subject Property D OA R RK PA E PICCADILLY LIN OX FO CH IPP EN DA LE WA YE UXBRIDGE N LINE POLITA METRO RD RO AD

7 70 RD ROAD TRAVELODGE LONDON UXBRIDGE HOTEL BAKERS ROAD, UB8 RG A40 M40 SOUT HLANDS ROAD SITUATION The property is in an unrivalled location in the centre of Uxbridge. Colham House is located on Bakers Road, directly opposite Uxbridge Underground Station in the centre of Uxbridge Town Centre. Oxford Road (A4020) connects directly to Junction of the M40 to the North which connects directly to the at Junction 6. OXFORD ROAD UXBRIDGE B467 PARK ROAD OXFORD ROAD B467 HIGH STREET WINDSOR ST BREAKSPEAR ROAD A40 B467 BELMONT ROAD BAKERS RD LANE LONG Travelodge London Uxbridge Hotel CHIPPENDALE WAYE Pavilions Shopping Centre Intu Shopping Centre MONT A40 COMMUNICATIONS ROAD The town has excellent road connections being equidistant from the M40 motorway (J) and the (J6) and the A40 Western Avenue. The main roads serving Uxbridge include the A40 providing direct access to Central London to the east and the M40 to the north. RAIL Uxbridge tube station is the western terminus for the Metropolitan and Piccadilly lines of the London Underground providing direct access into central London via London's Kings Cross and Liverpool Street stations with a fastest journey time of 47 and 54 minutes respectively. Denham, South Ruislip and West Drayton Overground rail stations are located approximately 4 miles from Uxbridge and can be reached in circa 0 minutes. These stations provide direct access into London Marylebone (23 minutes), London Paddington (29 minutes) and Reading (39 minutes). West Drayton will form one of the Crossrail Stations set to open in 208. This will result in journey times to Tottenham Court Road of circa 24 minutes. AIR The town centre is 5 minutes from London Heathrow Airport by road and Gatwick Airport can be reached in approximately 50 minutes. Both airports offer excellent connectivity to domestic and international terminals. Uxbridge is also well served by buses and provides direct access to Heathrow Airport within 8 minutes via the 724 and A0 bus routes. S T JOHNS R OAD COWLEY ROAD A4020 A437 KINGSTON LN Uxbridge Station A437 UXBRIDGE RO

8 DESCRIPTION The property was built in 2008 and comprises a purpose built 2 bedroom budget hotel with ancillary office and restaurant units on the ground floor. It is arranged over 9 floors, providing a total GIA of 43,050 sq ft (4,000 sq m) and has been constructed using an innovative prefabricated modular construction system which has since been replicated in a number of other locations in the UK. The property has a mixture of brick cladding and rendered elevations interspersed with powder coated aluminium fenestration. The property has recently benefited from a full Travelodge refurbishment programme which Travelodge are rolling out across their portfolio following the CVA. The ground floor houses the main entrance to the Travelodge hotel, as well as a Brazilian style restaurant let to Nabrasa and an office let to the Metropolitan Police who operate the building as a community police station. SITE The property is on a site of approximately 0.25 acres (0. hectares). TRAVELODGE UXBRIDGE TRADING HISTORY The hotel has experienced an improved performance compared with 203 with the revenue per annum per room up by.7 to The rack rate per room is up 7.88 to 5.85 year to date. In effect the hotel is selling each room at a higher rate than last year. The hotel has a high occupancy rate of 77.4% in the year to date. NEW DEVELOPMENT The neighbouring property on Bakers Road, currently known as Norwich Union House has full planning permission to erect a 9 storey building comprising retail floorspace at ground floor level and 8 storeys of residential units (37 units) with associated gym, access and parking arrangements. The planning reference is 828/APP/20/853. The image below provides an indicative elevation of the proposed development. South West Elevation North West Elevation

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11 TRAVELODGE LONDON UXBRIDGE HOTEL BAKERS ROAD, UB8 RG TENANCIES The property is fully let on three leases in accordance with the tenancy schedule. The total rental income is currently 674,39 per annum and provides a weighted unexpired lease term of 27.3 years to lease expiries. The hotel element is let to Travelodge Hotels Ltd on full repairing and insuring terms for 35 years expiring July 2043 and incorporates 5 yearly uncapped, upward only rent reviews linked to the Retail Price Index (RPI). The rent passing is currently 599,74 pa which reflects a low room rate of 4,956 per bedroom. The hotel accounts for 90% of the total income for the property. The ground floor office is let to the Mayor s Office, occupying the space as a community police office, on full repairing and insuring terms until December 209 at a passing rent of 34,650 pa, equating to 9.63 psf. The tenant has not exercised their 204 break option. The ground floor restaurant is let to Nabrasa on full repairing and insuring terms until February 2039 at a passing rent of 40,000 pa equating to 9 psf. The rent is reviewed 5 yearly, on an upwards only basis linked to the RPI index with no caps on the upper limit. TENANT DESCRIPTION UNIT SIZE LEASE EXPIRY UNEXPIRED TERM PASSING RENT RENT PSF/PK RENT REVIEWS Travelodge Hotels Ltd Hotel 37,350 (2 rooms) 3/07/ ,74 4,956 5 yearly U/O RPI reviews Mayor s Office Office 3,600 3/2/ , yearly U/O RPI reviews Nabrasa Restaurant 2,00 09/02/ , yearly U/O RPI reviews Totals 43, ,39 The current 5 year RPI Swap rate is 3.02%. Applying the actual RPI rates to date and the 5 year RPI Swap rate of 3.02% until the next review the Travelodge rent is forecast to rise to 620,283 in 208. Based on the above the total rent after the next rent reviews for all three tenants in 209 is forecast to be 707,666 pa.

12 BUDGET HOTEL OCCUPATIONAL MARKET The subject property is let at an annual room rate of 4,956. The comparable evidence below highlights that the current passing rent of the subject property is considerably below market rental value for a property of this nature in this location. ADDRESS Charles Street, Off Crossways Boulevard, Dartford The Beehive, Beehive Ln, Gants Hill, Ilford, Essex 2/23 Old London Road, Kingston Upon Thames, London, Surrey TENANT DATE OPENED EXPIRY ROOMS RENT PA RENT PER ROOM COMMENTS Travelodge Hotels Ltd Aug-0 08/05/ rooms 47,207 6,49 5 yearly RPI linked uncapped reviews. Travelodge Hotels Ltd Sep-94 08/08/ rooms 250,000 7,83 5 yearly RPI linked uncapped reviews. Travelodge Hotels Ltd Sep-02 08/08/ rooms 59,729 7, % annually compounded. Uncapped 5 yearly thereafter. A40 Western Avenue, Acton Travelodge Hotels Ltd Apr-99 08/05/ rooms 408,427 6,382 5 yearly RPI linked uncapped reviews. BUDGET HOTEL INVESTMENT MARKET The hospitality market continues to attract investor demand for well let Greater London hotels. The development pipeline over the next 2-3 years is expected to support and underpin this value enhancement with the Greater London sub-market having become increasingly attractive to investors. Outlined below are some relevant investment transactions. INVESTMENT COMPARABLES ADDRESS 9-3 Piccadilly Gardens, Manchester DATE PRICE ACHIEVED ( ) NIY ROOMS TOTAL RENT PASSING ROOM RENT PA WAULT u/o 23.m 4.84% 75 rooms,83,650 pa 3, years High Street, Stratford, London Oct-4 8.2m 5% 88 rooms 963,500 pa 5,25 23 years Lumina Park, Great Cambridge Road, Enfield, London COMMENTS Multi-let to Morrisons, Nando s, ASK and Travelodge (60% of the income). RPI linked RR. Includes Bar Café. 5 yearly uncapped RPI RR. Jun-4 0m 5.5% 32 rooms 59,849 pa 3, years 5 yearly uncapped RPI RR

13 TRAVELODGE LONDON UXBRIDGE HOTEL BAKERS ROAD, UB8 RG TENANT COVENANTS TRAVELODGE HOTELS LIMITED (076970) Travelodge opened their first hotel in 985 and are now the second largest hotel brand in the UK, with over 500 hotels, 36,722 rooms and over 6,000 employees in the UK, Ireland and Spain. More than 6.5 million people stayed with Travelodge last year and 85% of reservations are currently made online at which is one of the UK's top five most visited travel websites, attracting over. million visits each week. On 2 October 202, ownership of Travelodge transferred from Dubai International Capital to three of the company s key investors; Golden Tree Asset Management, Avenue Capital and Goldman Sachs. Under the terms of the financial restructuring, Travelodge s net debt was reduced from,m to 33m. In addition, 75m of new equity has been injected into the business, allowing for a major refurbishment and upgrade of the estate. More than 55m of this equity is being invested in a major refurbishment of the portfolio and at the end of 203, a further 20m of funds was allocated to increase the speed of the rollout with over 80% of bedrooms to be refurbished by the end of 204. The Travelodge business has improved significantly since completion of the CVA. This has resulted in a significant overhaul of the estate with the majority of the hotels being refurbished. Occupancy is currently circa 80.3% which is a 4.70% increase from 202. Turnover up until December 203 was million which is an increase of 9% from the previous year. 3 DEC 20 ( ) 3 DEC 202 ( ) 3 DEC 203 ( ) Turnover 369,500,000 39,400, ,400,000 Profit before tax (26,900,000) (7,00,000) 37,300,000 Net Worth 735,600,000 66,400, ,800,000 TENURE Freehold. PLANNING The subject units benefit from Use Classes C. EPC The property benefits from an EPC rating of B CAPITAL ALLOWANCES The vendor will seek to retain all available capital allowances and as such none will be available to the purchaser. VAT We understand the property has been elected for VAT which will therefore be chargeable on the sale price unless the transaction can be treated as a Transfer of a Going Concern (TOGC). PROPOSAL We are seeking offers in excess of 2,4,000 for our client s freehold interest in the property subject to contract. A purchase at this price reflects a net initial yield of 5.25% having allowed for purchaser s costs of 5.8%. WEB ACCESS

14 FURTHER INFORMATION: MIKE BURDEN Tel: NICK DUFEU Tel: ZAC BARNETT Tel: CUSHMAN & WAKEFIELD LLP 43/45 Portman Square London WA 3BG November 204 CUSHMAN & WAKEFIELD LLP MISREPRESENTATION ACT 967 Cushman & Wakefield LLP (and their joint agents if appointed) for themselves and for vendors or lessors of this property whose agents they are, give notice that: () The particulars are produced in good faith, are set out as a general guide only and do not constitute any part of a contract. (2) No person in the employment of the agent(s) has any authority to make or give any representation or warranty whatever in relation to this property. (3) This property is offered subject to contract and, unless otherwise stated, all rents are quoted exclusive of VAT. (4) Nothing in these particulars should be deemed to be a statement that the property is in good condition or that any services or facilities are in working order. (5) Unless otherwise stated, no investigations have been made regarding pollution or potential land, air or water contamination. Interested parties are advised to carry out their own investigations if required. Photography, Print & Production by Plus Art Ltd