MERIDIEN HOUSE Clarendon Road, Watford WD17 1DS PRIME MULTI-LET SOUTH EAST OFFICE INVESTMENT

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1 MERIDIEN HOUSE 69-7 Clarendon Road, Watford WD7 DS RIME MULTI-LET SOUTH EAST OFFICE INVESTMENT

INVESTMENT SUMMARY 2 Landmark office building on Clarendon Road, Watford s prime office pitch, located overlooking Watford Junction railway station Watford is the largest office

ground and five upper floors with 77 parking (:339 sq ft) Fully let to 8 tenants AWULT to expiry of 8.0 years and 4.9 years to break Low passing rent equating to only 9.

00 per sq ft Freehold Asset management opportunities to include the removal of existing break options and the regearing of leases to drive and capture future rental growth Offers

2 INVESTMENT SUMMARY 2 Landmark office building on Clarendon Road, Watford s prime office pitch, located overlooking Watford Junction railway station Watford is the largest office market in the northern M25 sector and home to a number of global occupiers High quality Grade A accommodation developed in 200 The building extends to 59,977 sq ft arranged over ground and five upper floors with 77 parking (:339 sq ft) Fully let to 8 tenants AWULT to expiry of 8.0 years and 4.9 years to break Low passing rent equating to only 9.9 per sq ft on the office accommodation rime rents in the Watford office market have reached per sq ft Freehold Asset management opportunities to include the removal of existing break options and the regearing of leases to drive and capture future rental growth Offers are sought in excess of 6,600,000 (Sixteen Million Six Hundred Thousand ounds) subject to contract and exclusive of VAT A purchase at this level reflects a Net Initial Yield of 6.75% after allowing for standard purchaser s costs of 5.80%. This equates to a capital value of only 277 per sq ft

EXCHANGE ROAD 32 LOCATION Watford is the major office centre in the north west sector of the M25. It is located 24km (5 miles) north west of Central London.

3 EXCHANGE ROAD 32 LOCATION Watford is the major office centre in the north west sector of the M25. It is located 24km (5 miles) north west of Central London. Hemel Hempstead is 0km (6 miles) to the north and St Albans is 3km (8 miles) to the north east of the town. Watford benefits from extensive transport communications as detailed below. Road The town has excellent motorway communications; Junction 9 of the M25 is 6km (4 miles) to the north west and this provides access to the rest of the national motorway network. Junction 5 of the M is 3km (2 miles) to the north east which provides a direct route southbound into Central London. The M northbound offers access to Luton, which is 25km (6 miles) away, and the North of England. To M25 Junctions 9 & 20 A42 CASSIO ROAD WIGGENHALL ROAD A478 A4 HEMSTEAD RD HIGH STREET KING ST Main retail area Watford High St A4 LWR HIGH ST BEECHEN ST. ALBANS ROAD A42 CLARENDON RD GROVE ESTCOURT RD Intu Watford Shopping Centre A4 WATERFIELDS WAY Watford Junction MERIDIEN HOUSE ORHANAGE RD A4008 STEHENSON RADLETT RD WAY A4008 ALDENHAM NORTH WESTERN AVE A4 NORTH ROAD WESTERN AVENUE JUNCTION 5 M SITUATION With its imposing frontage and design, Meridien House is one of the landmark office buildings in Watford. It is prominently located at the top of Clarendon Road, opposite Watford Junction Railway Station. Clarendon Road, Watford s prime office pitch, is home to a number of global occupiers, attracted by the transport links and amenities of the town. KMG, ACI Worldwide, TK Maxx, Ralph Lauren and the Inland Revenue all have offices on Clarendon Road. A short walk to the south of Meridien House is the town centre and the intu Watford Shopping Centre. The shopping centre is anchored by John Lewis, Marks & Spencer and BHS and offers over 40 stores with a wide range of fashion, clothing, homeware and restaurant operators represented. A5 Rail Watford enjoys excellent rail links, being served by three mainline stations; Watford Junction, North Watford and Watford High Street. At peak times, five trains per hour run from Watford Junction to London Euston, with a fastest journey time of 6 minutes. A48 LEIGHTON BUZZARD AYLESBURY A4 DUNSTABLE LUTON 0 9 M HEMEL HEMSTEAD 7 A(M) 4 STEVENAGE A502 WELWYN GARDEN CITY A406 A0 Stansted Airport BISHO S 8 STORTFORD HARLOW M London Overground services run from both Watford Junction and Watford High Street with London Underground services provided from Watford tube station on the Metropolitan line. These lines provide direct links to Euston, Kings Cross and Liverpool Street stations. Air Watford is located in close proximity to a number of international airports. London Luton Airport is 27km (7 miles) to the north, approximately a 25 minute drive from the town. Heathrow Airport, 35km (22 miles) to the south, representing a drive time of circa 30 minutes. Gatwick Airport is situated 96km (60 miles) to the south and can be accessed via the M25, with an approximate journey time of 70 minutes. Stansted Airport is circa 72km (45 miles) to the north east with a journey time of under an hour. STOKENCHURCH M40 M4 HIGH WYCOMBE 3 MAIDENHEAD AMERSHAM 8 2 CHESHAM WATFORD WATFORD JUNCTION 3 RICKMANSWORTH SLOUGH Metropolitan Line Metropolitan Line (Extension Opens 207) London Overground London Midland Southern Railways Chiltern Railways Virgin Trains UXBRIDGE 5 4 A40 HEATHROW M25 STAINES A36 M3 2 WEYBRIDGE 2 A BARNET M25 A406 ENFIELD EUSTON CITY ALDGATE MARYLEBONE LONDON CLAHAM JUNCTION A3 9 A24 ESOM A25 A24 7 A23 CROYDON a 9 GATWICK 0 A22 BROMLEY M25 ROMFORD DARTFORD A20 A3 5 A2 3 SEVENOAKS A2 2 M25 3 M20 M26 For indicative purposes only.

4 3 KEY Hotel Development 2 Watford Community Housing Trust 3 ACI 4 ESIIA 5 Inland Revenue 6 Money, Debt & Credit Ltd 7 TK Maxx 8 Michelin Travel ublications, Angel Business Communications and others 9 Jurys Inn Hotel 0 Sainsbury s NHS rofessionals, Scottish Equitable, Corona Energy 2 TK Maxx 3 TK Maxx and Ralph Lauren 4 TK Maxx 5 Regus 6 KMG 7 Gainsborough Morrison 8 Iveco 8 WATFORD JUNCTION (London Euston 6 mins) A42 7 A405 (North Circular) 2.6 miles 6 5 CLARENDON ROAD MERIDIEN HOUSE M25 (J5) - 2 miles INTU WATFORD SHOING CENTRE TOWN CENTRE A4 M25 (J9) - 4 miles

4 DESCRITION Meridien House was developed in 200 and comprises a high specification 6 storey office building with two levels of basement car parking.

The accommodation is provided in a rectangular floor plate around a central core with full height glazing to all elevations and tenant balconies to the rear elevation at st, 2nd, 3rd and 4th floor

The office was developed to Grade A specification and includes: Double height reception Full height central atrium 50 mm raised floors Suspended ceilings with recessed lighting Four pipe fan coil air

5 4 DESCRITION Meridien House was developed in 200 and comprises a high specification 6 storey office building with two levels of basement car parking. The total floor area of the building is approximately 5,572 sq m (59,977 sq ft). The accommodation is provided in a rectangular floor plate around a central core with full height glazing to all elevations and tenant balconies to the rear elevation at st, 2nd, 3rd and 4th floor levels. The office was developed to Grade A specification and includes: Double height reception Full height central atrium 50 mm raised floors Suspended ceilings with recessed lighting Four pipe fan coil air conditioning Tenant balconies Three x 0 person passenger lifts Separate goods lift Male, female and disabled toilets and shower facilities ACCOMMODATION The property provides the following approximate net internal areas: Floor Area Sq m Sq ft Ground floor,233 3,272 First floor,22 3,43 Second floor Suite 52 5,5 Second floor Suite ,65 Third floor 852 9,7 Fourth floor 658 7,083 Fifth floor Suite 296 3,86 Fifth floor Suite ,960 TOTAL 5,572 59,977 TENURE Freehold. Secure car parking is provided to the front of the building and on two undercroft levels providing space for 77 cars. This reflects an excellent town centre car parking ratio of :339 sq ft.

6 5 TENANCY Demise Area (sq ft) Tenant Lease Start Lease Expiry Break Option Months of Notice Rent Review Ground 3,272 i2 Office Ltd 0/0/204 3/2/2028 0/0/ /0/209 0/0/2024 First art Second art Second 3,43 Current rent 954 Act Car parking 289,90 Outside 37 car Galderma (UK) Ltd 7/0/20 6/0/202 6/0/ /0/ ,860 Inside 43 car 5,5 Engage artners Ltd 5,65 Bathstore.com Ltd (tenant) and Wolseley UK Ltd (guarantor) Third 9,7 Rontec Watford Ltd (tenant - Jersey company) Rontec Investments LL (guarantor) Fourth 7,083 Elavon Financial Services Ltd (Irish company) art Fifth art Fifth 27/03/202 26/03/ /03/ /03/207 68,493 Outside 6 car 29/08/ /08/206 3,40 Inside 8 car 06//202 05// // //207 83,000 Outside 25 car 09/0/ /0/209 48,743 Outside 20 car 3,86 James Hallam Ltd 0/03/ /02/207 Outstanding from 202 2,960 Modis International Ltd 22/03/2007 2/03/207 Outstanding from ,977,94,597 Service charge shortfall 9,864 Total net rent,84,733 67,053 Inside 8 car 62,8 Inside 0 car Service psf Charge Cap None per sq ft per annum subject to annual RI increases 6 per sq ft per annum subject to annual RI increase None Comments If the tenant does not exercise their break option they will be granted 6 months rent free Rent reviewed to the higher of OMV or 23,30 pa. The tenant (where the original tenant) will receive 2 months rent free commencing on the 4th anniversary of the term. None 9.95 Rent commencement date of July 204. The tenant will receive 2 months rent free commencing on 5th anniversary of the term. None 2.00 Rent deposit of 63,300. Break option removed via Deed of Variation and tenant in rent free. Rent commencement date 29/09/204. This will be topped up by the vendor. None 2.05 None In addition to the above, there is a Substation lease to Eastern ower Networks plc on a lease expiring 28 September 2062.

6 COVENANT i2 Office Ltd (company number 053744) is a serviced office provider.

7 6 COVENANT i2 Office Ltd (company number ) is a serviced office provider. Since launching in 2009 i2 has grown to occupy 25 buildings in the UK located in prime locations in major city centres with 7,500 workstations across approximately 300,000 sq ft. i2 Office Ltd has a Dunn & Bradstreet rating of 2A representing a minimum risk of business failure and account for 24% of the income. Further information can be found at and the company has reported the following accounts: i2 Office Ltd 3 Dec 200 (000 s) Tangible Net Worth 2,374 2,230,25 Engage artners Ltd (company number ) is provider of teacher recruitment solutions based in the UK, Ireland, Canada and Australia. Engage artners Ltd has a Dunn & Bradstreet rating of G2 representing a lower than average risk of business failure and account for 6% of the income. Further information can be found at and the company has reported the following accounts: Engage artners Ltd 3 Dec 200 (000 s) Tangible Net Worth 4,524 (46,352) (7,72) Net Current Assets (Liabilities) (49,98) (87,84) (99,26) Galderma (UK) Ltd (company number 7540) is the UK operating arm of the global dermatology company Galderma. The company has 33 wholly-owned affiliates and a worldwide network of distributors, approximately 5,000 employees and an extensive product portfolio available in 80 countries. Galderma (UK) Ltd has a Dunn & Bradstreet rating of N3 representing a greater than average risk of business failure and account for 22% of the income. Further information can be found at and the company has reported the following accounts: Galderma (UK) Ltd 3 Dec 200 (000 s) Sales Turnover 50,404 40,70 36,784 re-tax rofit (Loss) 309 (995) 3,825 Tangible Net Worth (850) 679 2,679 Bathstore.com Ltd (company number ) is the country s leading specialist bathroom retailer employing around 500 people with 72 stores across the UK. The lease is guranteed by Wolseley UK Ltd (company number ). Bathstore.com Ltd has a Dunn & Bradstreet rating of 2A3 representing a greater than average risk of business failure and account for 0% of the income. Wolseley UK Ltd has a Dunn & Bradstreet rating of 5A representing minimum risk of business failure. Further information can be found at and the company has reported the following accounts: Bathstore.com Ltd 3 Dec 200 (000 s) Sales Turnover 98,903 90,443 94,033 re-tax rofit (Loss) (765) (4,255) 2,99 Tangible Net Worth 4,22 5,30 8,482

7 COVENANT Rontec Watford Ltd (company number 08486) with guarantee from (Rontec Investments LL company number OC 36542) is part of the Rontec Group and is one of the leading players in the UK

8 7 COVENANT Rontec Watford Ltd (company number 08486) with guarantee from (Rontec Investments LL company number OC 36542) is part of the Rontec Group and is one of the leading players in the UK forecourt industry. Rontec Investments LL was formed in June 20, by a consortium made up of GMR Capital, Investec and Grovepoint Capital. The company was formed to acquire the assets of Total Oil UK. Rontec is led by Gerald Ronson. Rontec Investments LL has a Dunn & Bradstreet rating of 5A2 representing a lower than average risk of business failure and account for 5% of the income. Further information can be found at and the company has reported the following accounts: Rontec Investmets plc 30 Sep 203 (000 s) 30 Sep 202 (000 s) Sales Turnover 63,245 83,750 re-tax rofit (Loss) 2,53 2,28 James Hallam Ltd (company number ) is a leading privately owned, independent Insurance Broker and Risk Manager based in several locations across the UK. James Hallam Ltd has a Dunn & Bradstreet rating of 2A representing a minimum risk of business failure and account for 6% of the income. Further information can be found at and the company has reported the following accounts: James Hallam Ltd 3 Dec 200 (000 s) Sales Turnover 7,323 7,46 6,98 re-tax rofit (Loss) 674, Tangible Net Worth 2,649 2,88,650 Tangible Net Worth 67,970 52,42 Elavon Financial Services Ltd (Irish company number 48442) is a payment processing company. Based in Atlanta, Elavon is wholly owned by U.S. Bancorp (NYSE: USB). As at December 202 U.S. Bancorp has assets of $354bn, deposits of $249bn and loans of $223bn. Elavon Financial Services Ltd account for 2% of the income. Further information can be found at and the company has reported the following accounts: Elavon Financial Services Ltd Sales Turnover 68,650 33,89 re-tax rofit (Loss) 37,230 4,587 Tangible Net Worth 339, ,550 Modis International Ltd (company number ) is an IT recruitment agency specialising in finance, banking and insurance, retail and aerospace sectors. Modus International Ltd has a Dunn & Bradstreet rating of 3A2 representing a lower than average risk of business failure and account for 5% of the income. Further information can be found at and the company has reported the following accounts: Modis International Ltd 3 Dec 200 (000 s) Sales Turnover 77,8 85,298 66,772 re-tax rofit (Loss) (2,24) (2,20) 2,505 Tangible Net Worth 4,468 6,662 7,523

The prime office location in Watford is the Clarendon Road, which stretches north to south from Watford Junction railway station towards the High Street where Watford s main retail provision is

9 8 WATFORD OFFICE MARKET OFFICE MARKET OVERVIEW Watford is a major regional office centre in the North M25. It has the largest commercial base within the M/M25 region with excellent train links into Central London, the Midlands and North West. The prime office location in Watford is the Clarendon Road, which stretches north to south from Watford Junction railway station towards the High Street where Watford s main retail provision is located. As the prime office location in Watford, the area is home to a number of high profile occupiers including retailer TJK (TK Maxx), who have their headquarters here, alongside KMG, ACI Worldwide, Money Debt & Credit and Employment Tribunal Services. Watford has an office stock of circa 5 million sq ft, with 393,52 sq ft (vacancy rate of 7.87%) currently available. Of this 92,29 sq ft is available in the town centre and 20,383 sq ft in the out of town market. On Clarendon Road only 0,882 sq ft is currently available and only 34,097 sq ft of this is Grade A accommodation. There is evidence of an overall decline in the quality of space available in town, with a significant reduction in New or Refurbished Grade A space since The decline in quality space available stems from ongoing occupier desire to secure the best quality space in the market, together with the lack of available development sites in the town. 300, , ,000 50,000 00,000 50, Town Centre (sq ft) Watford Take-up and rime Rents Out of Town (sq ft) rime Rent (psf) The 5 year average take up for Watford stands at 48,652 sq ft, with 203 showing much improved occupier demand with take up of 260,63 sq ft. Clarendon Road take up for 203 was 8,59 sq ft, which represents 3% of all take up in the Watford market. Given the lack of supply on Clarendon Road, and assuming similar letting activity in 204, there is approximately 5 months supply currently in the market. Improving occupier demand, supported by early 204 lettings to i2 Offices in Meridien House (3,272 sq ft), TK Maxx (50,000 sq ft) on Clarendon Road and Kodak (20,000 sq ft) on Croxley Business park will continue to diminish existing supply and with a distinct lack of good refurbished or Grade A space in the market, rents for prime buildings on Clarendon Road should start to move towards historic prime rental levels in excess of 23 psf. Current availability on Clarendon Road: Address Sq ft Quoting Rent Grade 24 Clarendon Road 5, C 28 Clarendon Road 4, Refurbished 30 Clarendon Road 2, B 34 Clarendon Road 7, Refurbished Edward Hyde Building 5, B 38 Clarendon Road 39 Clarendon Road 4, C 45 Clarendon Road 6, B Victoria House 7, B 49 Clarendon Road 56 Clarendon Road 4, B 64 Clarendon Road 34, A Refurbished TOTAL 0,882

9 WATFORD OFFICE MARKET WATFORD AREA LETTING TRANSACTIONS 203-204 Date Address Size (sq ft) Rent (psf) Lease details Tenant Jan 4 40 Clarendon Road (Unrefurbished) Jan 4 Meridien House 69-7 Clarendon

00 0 year lease 5 year break 0 months rent free 20,000 23.00 5 year lease 30 months rent free Dec 3 28 Clarendon Road 4,92 9.

00 5 year lease 3 year break 0 months rent free Oct 3 5 Clarendon Road 8,200 20.00 3 year lease 9 months rent free Oct 3 34 Clarendon Road 2,837 2.

10 9 WATFORD OFFICE MARKET WATFORD AREA LETTING TRANSACTIONS Date Address Size (sq ft) Rent (psf) Lease details Tenant Jan 4 40 Clarendon Road (Unrefurbished) Jan 4 Meridien House 69-7 Clarendon Road Jan 4 Building 8, Croxley Green Business ark Dec 3 Building 8, Croxley Green Business ark 50, year lease 5 months rent free 3, year lease 0 year break 9, year lease 5 year break 0 months rent free 20, year lease 30 months rent free Dec 3 28 Clarendon Road 4, year lease 5 year break 2 months rent free Dec 3 Link House, Colonial Way (Unrefurbished) 27, year lease 0 year break 30 months rent free Nov 3 5 Clarendon Road 3, year lease 3 year break 0 months rent free Oct 3 5 Clarendon Road 8, year lease 9 months rent free Oct 3 34 Clarendon Road 2, year lease 6 months rent free Mar 3 Radius House, 5 Clarendon Road 8, year lease 3 months rent free Mar 3 4/43 Clarendon Road 0, Lease to February 208 with tenant breaks 6 months rent free Mar 3 46 Clarendon Road, Lease to December months rent free TK Maxx I2 Offices Kodak Howdens Joinery Mace Macro Wickes SIG JSA Sabien Technology Hillier Hopkins TK Maxx TK Maxx

0 WATFORD INVESTMENT MARKET KEY INVESTMENT TRANSACTIONS Date Address Size (sq ft) Tenant WAULT rice NIY CV per sq ft urchaser March 204 Hollywood House, Woking 43,440 Multi-let 5 years U/O at 4.95m 6.

50% 327 Tesco ension Fund December 203 Vision ark, Cambridge 89,945 Multi-let 7.5 years 28.50m 6.00% 37 RLAM December 203 Mount leasant House, Cambridge 4,64 Multi-let.8 years 0.5m 6.

11 0 WATFORD INVESTMENT MARKET KEY INVESTMENT TRANSACTIONS Date Address Size (sq ft) Tenant WAULT rice NIY CV per sq ft urchaser March 204 Hollywood House, Woking 43,440 Multi-let 5 years U/O at 4.95m 6.45% 344 Under Offer January 204 Richmond Riverside, Richmond 32,965 Multi-let 5.5 years 64.5m 5.9% 485 Orchard Street January 204 Beaufort House, Uxbridge 43,438 Multi-let 2.62 years 4.85m 6.50% 327 Tesco ension Fund December 203 Vision ark, Cambridge 89,945 Multi-let 7.5 years 28.50m 6.00% 37 RLAM December 203 Mount leasant House, Cambridge 4,64 Multi-let.8 years 0.5m 6.67% 252 Howard Group October 203 Braywick Gate, Maidenhead 36,609 Multi-let.7 years 7.25m 6.25% 436 B ension Fund December 203 Gloucester lace, Brighton 37,72 Multi-let 3.8 years.025m 6.66% 292 RLAM Sept 203 Oriel House, Richmond 24,574 Multi-let 5 years 9.00m 6.8% 366 AVIVA August 203 Capital Court, Uxbridge 58,853 Multi-let 8.8 years 2.20m 5.96% 360 Royal London

A copy of the EC is available on request. VAT The property has been elected for VAT purposes. It is anticipated that this will be a TOGC (Transfer of a Going Concern).

12 SERVICE CHARGE The service charge budget for the year ending 3st December 204 is 489,278. This equates to a rate of 8.5 per sq ft. Based on the service charge cap the anticipated rental shortfall for the year ending 3st December 204 will be 9,864. EC The property has an EC rating of E and a score of 9. A copy of the EC is available on request. VAT The property has been elected for VAT purposes. It is anticipated that this will be a TOGC (Transfer of a Going Concern). ROSAL Offers are sought in excess of 6,600,000 (Sixteen Million Six Hundred Thousand ounds) subject to contract and exclusive of VAT. A purchase at this level reflects a Net Initial Yield of 6.75% after allowing for standard purchaser s costs of 5.80%. This equates to a capital value of only 277 per sq ft. SUBJECT TO CONTRACT AND EXCLUSIVE OF VAT.

MERIDIEN HOUSE 69-7 Clarendon Road, Watford WD7 DS James Archibald T: 020 3362 4357 M: 07979 746 79 E: jamesarchibald@brayfoxsmith.

You should not rely on statements by Bray Fox Smith Ltd in the particulars or by word of mouth or in writing ( information ) as being factually accurate about the property, its condition or its value.

lessor(s). (2) hotos etc: The photographs show only certain parts of the property as they appeared at the time they were taken. Areas, measurements and distances given are approximate only.

13 MERIDIEN HOUSE 69-7 Clarendon Road, Watford WD7 DS James Archibald T: M: E: Sim Khatkar T: M: E: Consumer rotection Regulations () articulars: These particulars are not an offer or contract, nor part of one. You should not rely on statements by Bray Fox Smith Ltd in the particulars or by word of mouth or in writing ( information ) as being factually accurate about the property, its condition or its value. Bray Fox Smith Ltd has no authority to make any representations about the property, and accordingly any information given is entirely without responsibility on the part of the agents, seller(s) or lessor(s). (2) hotos etc: The photographs show only certain parts of the property as they appeared at the time they were taken. Areas, measurements and distances given are approximate only. (3) Regulations etc: Any reference to alterations to, or use of, any part of the property does not mean that any necessary planning, building regulations or other consent has been obtained. A buyer or lessee must find out by inspection or in other ways that these matters have been properly dealt with and that all information is correct. (4) VAT: The VAT position relating to the property may change without notice. April 204.

3 floors now let 28 CLARENDON ROAD WATFORD WD17 1JJ. 10,002 sq ft (929.1 sq m) To Let

3 floors now let 28 CLARENDON ROAD WATFORD WD17 1JJ. 10,002 sq ft (929.1 sq m) To Let 28 CLARENDON ROAD WATFORD WD17 1JJ A major refurbishment creating a highly specified and energy efficient headquarters office building 10,002 sq ft (929.1 sq m) To Let 28clarendonroad.co.uk 3 floors now