Stratford, London E154 Cam Road

Freehold Multi Let Office Investment

the shard

the city

Olympic stadium

westfield

4 cam road

Stratford is one of London’s most accessible locations and has undergone significant redevelopment.

The most important stimulus for regeneration was the Olympic Park development which helped put Stratford in the spotlight. The transformation of the Olympic Park has already begun, capitalising on its prestige and profile. The Park will reopen in 2013 as ‘Queen Elizabeth Olympic Park,’ with world-renowned sports facilities, attractions, event spaces and parkland. With an urban entertainment plaza in the South of the Park, anchored by the Stadium and Aquatics Centre,

the area will be animated with fountains and art installations. The North of the Park, will feature a river valley centred around waterways, parklands and green space.

At the centre of the regeneration is the upgrade of Stratford International station and installation of Crossrail. In August 2011 an extension of the Docklands Light Railway was opened to connect the station directly to the wider London public transport network and Stratford Regional station slightly to the south. Stratford is served by the HS1 rail route which provides services to Europe.

Westfield Stratford City opened in 2011 and houses 1.9 million sq. ft. of retail and leisure accommodation with 300 shops and over 50 food and beverage outlets. The centre represents a complete package of retail, dining and entertainment situated over a 700 acre £1.45 billion development. It features major retail anchors including John Lewis, Waitrose and Marks & Spencer as part of a 300 strong tenant line-up of the world’s most innovative and recognisable brands. Westfield extends over three levels with an elaborate ‘lifestyle street’ linking Stratford International and Stratford stations.

stratfOrd regeneratiOn

4 cam rOad, stratfOrd, lOndOn, e15 2sy

investment summary• Well located east London office investment situated

in an area that has experienced significant inward investment.

• Large scale regeneration projects in Stratford include the Olympic Park, Westfield, Crossrail, and Stratford International station.

• Outstanding road, rail and air communications.

• Modern specification office building completed in 2010 with limited capital expenditure required in the short term.

• Freehold

• Specification includes raised access floors, VRF air cooling system, 2 x 10 person passenger lifts and is DDA compliant.

• 83% of the 38,596 sq. ft. is currently let with the vacant accommodation providing the opportunity for reversionary income.

• The property has attracted strong covenants in the form of the NHS and Bank of Tokyo-Mitsubishi which account for 89% of the current income.

• Current passing rent of £568,250.50 per annum equating to an average rent of only £17.80 psf.

• Benefit of an additional ‘fit out’ rent from Bank of Tokyo Mitsubishi of £214,880 per annum until April 2020.

• Total rent equates to £783,130.50 per annum

• We are instructed to seek offers in the region of £7,500,000 (Seven million five hundred thousand pounds) subject to contract and exclusive of VAT. A purchase at this level reflects the following yield profile after allowing for purchaser’s costs of 5.8%:-

- Net initial yield of 9.86% - Reversionary yield of 10.88% assuming a

conservative ERV of £17.00 p.s.f. and a fit out cost of £300,000 (£45 p.s.f.) on the vacant floor

- Capital value of £194 p.s.f.

lOcatiOnStratford is situated within the London Borough of Newham which has a resident population of 310,500. Of that number, 229,000 residents are in employment, with only 5,650 of residents long term unemployed.

Due to its accessibility, Stratford is establishing itself as a major employment centre within London. Major office occupiers include Westfield, Coral Bookmakers, London Legacy Development Corporation and the University of East London. BT has recently taken 75,349 sq. ft. of accommodation at iCity. Prime rents of £25 per sq. ft. have been achieved at the new Stratford City development. Amazon are currently canvassing London for a new headquarters campus of 750,000 sq. ft. and Stratford is rumoured to be on the destination shortlist.

There has been an encouraging volume of inward investment into Stratford recently. Alongside the major regeneration projects taking place, University College London are building a 23 acre £1 billion campus. M&G Investments have just completed the purchase of 401 new build flats from Genesis Housing Association for £125m. A private overseas investor purchased two Intercontinental Hotels at Westfield Stratford in December 2012 for £58m, reflecting a net initial yield of 6.9%.

Stratford is an important and thriving commercial centre located in east London. It lies approximately 9.7 km (6 miles) from the West End and 6.4 km (4 miles) from the City of London.

A406 N C

ircular Rd

A12

A13

A13

A11

A1

A503

RedbridgeWANSTEAD

M11

VictoriaPark

Millenium Park

HackneyMarshHighbury Square

St Pancras

London Zoo

Barbican

Stratford

Camden

Limehouse

Canary Wharf

West End

Cityof London

WaterlooLondon Bridge

Tower BridgeMillenium

Wheel

Regent’s Park

Parliament Hill

OLYMPICSITE

KingsCross

Burford Rd

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Rick Roberts Wa

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B lackhorse Rd

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A104 Lea Brid

ge Rd A104

Eastway

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Ruckholt Rd

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Oliver Rd

Church L n

Cambridge Park

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lake H

all Rd A

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oodgrange Rd

Romford Rd A118

Cranbrook Rd A

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A116 Aldersbrook Rd A116

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A12 Eastern Ave

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StratfordInternational

StratfordHigh Street

Abbey Road

WoodgrangePark

WansteadPark

LeytonstoneHigh Rd

LeytonMidland Rd

WalthamstowQueens Rd

HackneyWick

Snaresbrook

Redbridge Gants Hill

Wanstead

Leytonstone

Leyton

East Ham

WalthamstowCentral

St James Street

Stratford

Maryland

Forest Gate

Manor Park

Ilford

EppingForest

BushWood

ManorPark

WansteadPark

VictoriaPark

HackneyMarsh

ValleyGreen

OlympicStadium

Stratford Shopping

Centre

OlympicSite

West Ham Lane Recreation Ground

134-161

House

Woodgrove

Car Park

Retail

Retail

Industry

Retail

High S

treet

etOffices

Car Park

3626

1-20

48

21-107

108-133

6050

Victoria Mills Studios

Olympic Delivery AuthorityBurford Road

Channel Sea Road

Cam Road

38

0m 10m 20m 30m

Cam RoadStratford

London E15 2SY

© UKMap Copyright The GeoInformation Group 2013 Licence No. LANDMLON100003121118. Plotted Scale - 1:1035

Occupying a large prominent site adjacent to the busy A11, the property is situated within an area of modern residential and office developments. The property is accessed from the east side of Cam Road approximately 100 metres from its junction with High Street (A11). Cam Road is situated approximately 400 metres to the south of central Stratford and Stratford International station. Significant nearby office developments include Stratford Place, The Square, First Avenue and the University of East London Stratford Campus. Notable local occupiers include London Borough of Newham, Barclays, NatWest, The Metropolitan Police Service, Barratt and Unison.

0.20 acres (0.08 hectars)

situatiOn site area

© Crown Copyright, ES 100004106. For identification purposes only.

For identification purposes only.

Paddington

ShenfieldRomford

Brentwood

HaroldWood

GideaPark

CustomHouse

ChadwellHeath

Goodmayes

SevenKings

ManorPark

IlfordForest

London Overground

DLR

London Underground

National Rail

GateStratford

WhitechapelFarringdonIverSloughTaplowBondStreet

ActonMain Line

WestEaling

TottenhamCourt Road

CanaryWharf

Liverpool Street

Langley WestDrayton

HeathrowAirport

EalingBroadwayHanwell

Southall

Hayes &Harlington

AbbeyWood

Maryland

Woolwich

BurnhamMaidenhead

Surface line

Tunnel

Portal (tunnel entrance and exit)

cOmmunicatiOns

Road

• Stratford benefits from excellent road communications into and out of central London.

• Stratford High Street (A11) provides access into central London and the A112 to the north which links with the A12 and the M25 approximately 12 miles to the north east at Junction 27. The M11 is less than 5 miles to the north of Stratford Town Centre.

Rail

• Stratford Station is 0.5km north of the subject property where DLR, London Underground (Central and Jubilee lines) and London Overground Services are available.

• Stratford International station is approximately 1km North West of the subject property and provides DLR services as well as Eurostar and HS1 services.

• Stratford High Street Station (DLR) is within a minute’s walk to the north of the subject property.

• Crossrail is the biggest engineering project in Europe. Once completed in 2017 Crossrail will connect 37 stations across a horizontal axis through London. Below is a list of expected journey times from Stratford upon Crossrail’s completion:

Air

• Stratford has 3 International and 2 Regional airports within an hour’s drive, the closest being London City Airport located approximately 8 km (5 miles) south east of the subject property.

• London City Airport already serves 3.03 million passengers per year with plans in place to accommodate 8 million passengers per year by 2030. London City Airport will continue to play an increasingly key role in London’s economy.

• London City Airport serves 40 destinations across the UK, Europe and the USA, with connections to the rest of the world through the major European hubs.

heathrow 42 mins <<<< paddington 18 mins <<<< bond Street 16 mins <<<< tottenham court road 14 mins <<<< LiverpooL Street 8 mins <<<< Stratford >>>> canary wharf 9 mins

Crossrail

The property was completed in 2010 and comprises 3,585.6 sq. m. (38,596 sq. ft.) of modern office accommodation over part ground and six upper floors. The property is of steel frame and concrete construction with striking glazed curtain walling and timber clad elevations. This gives the property a unique modern profile. There are 9 car parking spaces within the rear of the ground floor housed within a secure lock up garage. The property also benefits from a large modern open plan manned reception area. There are two roof terraces accessed from the 6th floor offices.

The property benefits from a modern specification. Typical floors comprise the following specification:

• 1.5m planning grid

• 2750 mm floor to ceiling height

• DDA compliant

• VRF air cooling system

• Raised access floors

• 2 x 10 person passenger lifts

• Carpet tile flooring

• Acoustic metal tile suspended ceilings

• Integral LG3 compliant lighting

• Male and female and disabled access WC’s on each floor.

descriptiOn

tenancies

Floor Tenant Name Area (Sq M)

Area (Sq Ft)

Current Rent (£ p.a)

(£ psf)

Lease Start (Review)

Lease Expiry(Break)

Comments

5 & 6 NHS Shared Business Services Ltd 1,038.3 11,177 £208,872.00(£18.69)

23/12/2010 31/05/2015 Outside the Act. Three car parking spaces.

4 Vacant 620.0 6,674 - - -

Part 3rd Careers Development Group 301.7 3,247 £50,328.50(£15.50)

26/09/2011(26/09/2016)

25/09/2021(26/09/2016)(26/09/2018)

Rent commences 26/09/2013. Vendor to top up. Service charged capped at £16,235 pa. Reviewed annually to RPI. 3 months notice on tenant’s break options. 6 months rent free from 26/09/2016 if break option not exercised.

2nd & Part 3rd Bank of Tokyo-Mitsubishi UFJ Ltd 905.3 9,745 £164,866.00(£16.92)

19/04/2010(19/04/2015)

18/04/2020

1 Bank of Tokyo-Mitsubishi UFJ Ltd 576.2 6,202 £105,434.00(£17.00)

19/04/2010(19/04/2015)

18/04/2020

Ground Seetec Business Technology Centre Ltd 144.1 1,551 £38,750.00(£24.98)

01/06/2010 31/05/2013 Outside the Act. Schedule of condition attached to lease. Service Charge capped at £9,300 per annum.

Fit out rent Bank of Tokyo-Mitsubishi UFJ Ltd - - £214,880.00 19/04/2010 18/04/2020

Total 3,585.6 38,596 £783,130.50

tenureFreehold

Core Core

typical flOOrplan

2nd floor

The 4th floor is currently only fitted out to shell and core.

asset management 4 Cam Road offers the following asset management opportunities to include:

• Regear existing leases with tenants to increase income length.

• Remove breaks.

• Let vacant 4th floor accommodation.

rental incOme

stratfOrd Office market

The local occupational market has been dominated by smaller deals in 2012. 33 of 42 transactions in the City and Fringe markets in Q3 were of less than 10,000 sq. ft. This proportion of smaller transactions has not been seen since 2000. There is currently 1,364,000 sq. ft. of office accommodation within Stratford and a vacancy rate of 7.1%, compared to the City and West End of 7.9% and 4.1% respectively. During 2012, there was 434,000 sq. ft. of take up within the Docklands/East London market in comparison to 496,000 sq. ft. in 2011.

Positive activity in the area means demand for office accommodation has been focussed on developments in Stratford as opposed to other competing locations.

Prime rents within Stratford stand at £25.00 per sq. ft. with prime capital values remaining stable at £220 per sq. ft. since June 2009. The recent letting of 42,000 sq ft to Network Rail at One Stratford Place for 10 years was reportedly agreed at £35 per sq. ft, One Stratford Place is now 85% let. 23% of active demand is focussed on accommodation between 0-5,000 sq. ft. and 14% of availability is of this size. Similarly 35% of demand is focussed on

accommodation between 10,000-25,000 sq. ft. and current availability in this bracket comprises 21% of overall availability. Rents are forecast to grow in the City Fringe and East London as occupational requirements grow. It is widely predicted that rapid TMT expansion within London should positively impact areas like Stratford as occupiers seek affordable rents while remaining close to central areas.

The biggest infrastructure change within the London office market will be facilitated by Crossrail. This will likely produce a big gravitational pull along the Heathrow-Central London-Stratford axis, significantly improving these locations and further establishing them as commercial centres. This will boost long term rental growth as hubs like Stratford become financially and logistically viable for a new generation of occupiers. Any significant office development activity will likely occur in the most viable outlying locations along this cross-rail ribbon. Crossrail will open up and enable new opportunity in areas like Stratford. It will facilitate rapid and convenient movement across London linking with two major airports as well as HS1 and the proposed HS2.

NHS - 27%

CAREERS DEVELOPMENT

GROUP - 6% SEETEC - 5%

BANK OF TOKYO MITSUBISHI - 62%

Bank of Tokyo-Mitsubishi UFJ LtdMitsubishi UFJ Financial Group (MUFG) is one of the world’s largest and most diversified financial groups with total assets of JPY218.9 trillion as of March 2012. MUFG’s services include commercial banking, trust banking, securities, credit cards, consumer finance, asset management, leasing and many more fields of financial services. The group has the largest overseas network of any Japanese bank, comprising offices and subsidiaries, in more than 40 countries and 500 offices around the world.

Careers Development GroupThe Careers Development Group (CDG) is a leading back to work charity with 30 years’ experience of helping people find and stay in work. Their team was supported by more than 30,000 people in 2011 from centres across London and the South East, delivering a wide range of back-to-work initiatives. CDG started delivering the coalition government’s flagship Work Programme as a prime contractor in east London in June 2011 and merged with the ‘Shaw Trust’ in September 2012.

31st March 2010

31st March 2011

31st March 2012

Turnover - - -

Profit £1,599,300 £733,200 -£326,600

Total Net Worth £4,805,500 £5,578,700 £5,252,100

NHS Shared Business Services LtdNHS SBS is a unique joint venture between the Department of Health and Steria offering a wide range of innovative back office services to more than 40% of the NHS. They deliver operational efficiency, real cash savings and added value services. Their range of business support services are projected to save the NHS more than £3 billion over the next five years. Every year NHS SBS makes over £43 billion-worth of payments, process 2.5 million payroll transactions and recover £13 billion of NHS debt.

31st December 2009

31st December 2010

31st December 2011

Turnover £47,377,000 £53,265,000 £62,447,000

Profit £564,000 £1,926,000 £3,278,000

Total Net Worth -£8,243,000 -£5,124,000 -£136,000

Seetec Business Technology Centre LtdSeetec is one of the UK’s largest and most experienced providers of Government funded employment and skills training programmes, helping thousands of individuals find employment or gain qualifications every year. Seetec employs hundreds of dedicated and experienced staff across a national network of training centres. Through a UK wide range of employment programmes, delivered on behalf of the Department for Work and Pensions and Jobcentre Plus, they work closely with thousands of jobseekers, employers and partner providers every year to support unemployed individuals back to work.

31st March 2009

31st March 2010

31st March 2011

Turnover £21,203,872 £37,594,182 £53,457,888

Profit £2,112,133 £5,160,257 £14,641,639

Total Net Worth £5,330,215 £7,081,033 £15,985,222

tenants' cOvenant

service charge The service charge is currently running at £3.23 per sq. ft.

prOpOsal

We are instructed to seek offers in the region of £7,500,000 (Seven million five hundred thousand pounds) subject to contract and exclusive of VAT. A purchase at this level reflects the following yield profile after allowing for purchaser’s costs of 5.8%:-

- Net initial yield of 9.86%- Reversionary yield of 10.88% assuming a conservative ERV of £17.00 p.s.f. and a fit out cost of £300,000 (£45 p.s.f.) on the vacant floor- Capital value of £194 p.s.f.

energy rating The property has been rated C on the EPC scale (55). EPC certificate available upon request.

vat The property is elected for VAT purposes and therefore VAT will be payable by the purchaser, unless the sale is structured as TOGC.capital allOwances

Further information can be provided upon request.

Misrepresentation Act: 1. Allsop LLP on its own behalf and on behalf of the vendor/lessor of this property whose agent Allsop LLP is, gives notice that: (a) these particulars do not constitute in whole or in part an offer or contract for sale or lease; (b) none of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact; and (c) the vendor/lessor does not make or give, and neither Allsop LLP nor any of its members or any person in its employment has any authority to make or give, any representation or warranty whatsoever in relation to the property. The only representations, warranties, undertakings and contractual obligations to be given or undertaken by the vendor/lessor are those contained and expressly referred to in the written contract for sale or agreement for lease between the vendor/lessor and a purchaser or tenant. 2. Prospective purchasers or tenants are strongly advised to: (a) satisfy themselves as to the correctness of each statement contained in these particulars; (b) inspect the property and the neighbouring area; (c) ensure that any items expressed to be included are available and in working order; (d) arrange a full structural (and where appropriate environmental) survey of the property; and (e) carry out all necessary searches and enquiries. Allsop is the trading name of Allsop LLP. 01.13

Scott Tyler020 7543 6719scott.tyler@allsop.co.uk

Joe Raitt020 7543 6890joe.raitt@allsop.co.uk www.allsop.co.uk

For further information or to make arrangements for viewing please contact:

Guy Scott Plummer 020 7543 6726guy.scott-plummer@allsop.co.uk