SLOUGH CENTRAL

The Future Takes Flight

Table of Contents

Introduction 3

Location 4

The Site 5

Local Amenities 6

Transport 9

Local Area Analysis 11

The Heart of Slough Project 13

The Terminal 5 Project 15

Sales Strategy 16

Local Property Price Comparisons- One-Bedroom Apartments 20- Two-Bedroom Apartments 21

Sources 24

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Introduction

Slough is an area that is currently experiencing an exciting new stage in its development. After years of being overlooked and under invested both in terms of its potential and also in terms of property prices it is now undergoing something of a rediscovery.

The merits of this centrally-located town were quick to be discovered particularly in the 1970s and 1980s when many companies set up business in the area due to its excellent communication links and proximity to London. Particularly during these latter years the increase in air travel saw the already large Heathrow airport swell in size and employ many more people in the vicinity either directly or through service industries such as the catering companies. Since the 1980s, with the emergence of high-tech industries, particularly along the “M4 Corridor”, the area saw a shift in the type of companies setting up in the area with a demographic change in the skill-base from a largely low-skilled and low-paid work-force to a more highly-skilled work-force with a higher disposable income.

The area has recently been discovered by those seeking more affordable properties than central London but with easy and swift access to all that the city offers. Paddington station is less than twenty minutes away and the affordable nature of the properties in Slough in comparison to the surrounding areas means the number of investors in the future looks set to increase.

The greatest drawback to Slough is that it is not the most aesthetically-pleasing town, having had its largest period of expansion during the 1960s and 1970s. However, in the last couple of years investment by developers in Slough, and in the town centre particularly, has started to improve its appearance dramatically. This regeneration looks set to continue at an increased rate with dramatic new ventures planned for the immediate area. One of the most exciting is a mixed-use development encompassing the town centre near to Slough Central called “The Heart of Slough”.

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Location

Few towns can boast such an ideal location as Slough. Placed just a couple of miles from the historic and beautiful towns of Eton and Windsor with its Castle and high quality shopping, Slough also has excellent links to London, the West Country, and the national road and rail networks. It is also within half an hour of Oxford and Reading and is located at the London end of the thriving high-tech-dominated area of the “M4 Corridor”.

Its close proximity to many sites of research and development and its enviable transport links, including easy reach of all of London’s 5 main airports, has led to many international companies setting up their headquarters in the area. Notable companies include O2, Coca Cola and Amazon. In addition to this Slough is surrounded by very beautiful natural countryside and is close to the Windsor Great Park with all of its attractions.

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The Site

|---------------------------------------------|Scale: Approx. 1km

This centrally-located development boasts perhaps one of the very best sites in the area in terms of communication links. It is located opposite the main Slough train station (with direct links to London, Reading and Oxford). The Brunel Bus Station is approximately 500m away. Road Links are also convenient as Junction 6 of the M4 is minutes from the development and allows fast and direct access to Heathrow, Reading, Oxford and London.

The location also has a number of educational establishments nearby including the Thames Valley University which has over 45,000 enrolments (making it one of the largest universities in Europe) and the main single source of skilled and qualified people for employers in the Thames Valley and West London. This provides a large number of potential tenants for rental properties in the area.

Employment prospects in the area are extremely good with 79,000 jobs within Slough alone (which exceeds its workforce) and looks set to increase with the opening of the nearby Heathrow Airport’s Terminal 5 and the creation of a further 30,000 jobs. The Slough Trading Estate is another major employer in the area and an increasing number of people are choosing to relocate to the area to avoid the relatively high cost of property in the surrounding towns and London. The Office of National Statistics

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Thames Valley University

Tesco Hypermarket

Slough Bus Station

Shopping Centre

Shopping Centre

Library

Cinema

Slough Railway Station

Playing Fields

stated that “the borough has many more people in work than the national average with more than 65% of residents employed”. Local Amenities

Open Spaces

Slough boasts a wealth of open spaces ranging from outdoor sports pitches (football, hockey, cricket, bowls, tennis, netball) as well as 34 children’s play areas in the parks alone.

Aside from the acres of open space, the nearby Upton Park (approximately 2km) offers a range of speciality facilities including the Slough Rugby club, a jogging track with exercise equipment, a motorcycle scrambling club, BMX track and model car and flying clubs. Each year the council run special events in the park including the “Slough Bonfire” in November and the Slough Show in June, both popular community events.

Shopping

The development is centrally located within the town and is close to all local shops, with the high street being only a few minutes walk away. Also in the immediate vicinity are the Queensmere and Observatory shopping centres with a wealth of outlets varying in type. Windsor, Eton and other nearby picturesque towns and villages offer a different shopping experience with their “old-world” charm or the lights of Regents Street are only 37 minutes away by train.

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A view of the nearby Salt Hill Park

The Social Scene

Due to the proximity of the town centre, many of the best bars and pubs in Slough are conveniently located within a few minutes walk of Slough Central. Venues range from old-fashioned pubs to trendy new bars and a nightclub on the High Street. Restaurants in Slough range from convenient take-aways to fine dining. For a change of scene Windsor and Eton are only a couple of miles away and offer pretty river venues and a wealth of fine eateries.

The nearest cinema is just minutes away in the Queensmere Centre and it shows a large array of the latest films and also some more lesser-known art-house films. There are also a couple of popular theatres with some active theatre companies, professional and amateur.

Situated on the Eastern end of the high street is the Slough Museum, which offers an interesting look into the history of the area and information about the community projects and arts. The Slough library, on the High Street, also hosts exhibitions.

Sport

The town has a large diversity of sports and leisure facilities to suit all tastes. There are a number of dedicated running tracks or open spaces (the Salt Hill and Upton Court parks are a short distance from the development as too is the Grand Union Canal) or a host of gyms (7 run by the local community and many more independent ones). The local Rugby club’s grounds are also not far from the development and also within a mile are tennis courts, a major sports centre, a bowling green and an ice arena.

Health

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The Slough Primary Care Trust operate a number of health clinics in the area including Upton Hospital which has a walk-in centre (only 1.5 km away from the development), the Langley Health Centre and the Britwell Clinic, both of which specialise in community nursing.

The Office of National Statistics state that “The health of the town is better than average as well with the percentage of people with ‘long term illness’ or with ‘general health not good’ being below the national figures”.

Education

Slough has a wide range of schools and educational establishments to choose from at all levels. The town has over 23 schools at infant and primary level and over 11 secondary schools spanning the state and independent sectors. It also has a couple of Grammar Schools which have very strong exam results and score highly on the Ofsted league tables. In addition there are also sixth-form colleges, specialist colleges (such as Arbor Vale Sports College) and higher educational establishments, including The Thames Valley University which is close to the development.

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Transport

Slough provides easy access to Heathrow Airport as well as a busy commuter National Rail station with direct access to Paddington Main Line and Tube Stations. The local bus station has links to the neighbouring area, central London and throughout the country. Slough also boasts fantastic direct road links via the M4 to the centre of London, Oxford and Birmingham.

Road

Slough Central is located close to the M4, only 22 miles from the centre of London and 7 miles from Heathrow Airport. Direct access to the M25 allows good transport links to the entire country or down to the continent (the Channel Tunnel is within easy reach at little more then an hour and a half).

Air

The development is within 1.5 hours of all of the 5 major London airports:

Airport Time by Car (minutes)

Time by Public Transport (minutes)

Heathrow 10 17 RailLuton 46 94 Rail / BusGatwick 52 92 Rail / TubeStansted 78 106 Rail / TubeCity 90 80 Rail / Tube

Rail

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Slough is located only 16 minutes from Paddington Station on the Great Western Rail Service, providing convenient access to the centre of London and the tube and bus network. The trains run throughout the day with a train on the hour through the night and a train approximately every 10 minutes during the day. In addition, Reading station is from only 14 minutes away and Oxford less than half an hour.

Tube

Via Ealing Broadway station the train allows direct access to the District and Central lines and on to Victoria train and tube station. From Paddington station there is direct access to the Bakerloo, Circle and District lines, making busy London nightspots in the West End convenient.

Bus

Brunel Bus Station in Wellington Street is just a few minutes walk from Slough Central. Routes include Heathrow Airport as well as the whole of the region, London Underground stations and central London. Regular National Express coaches provide services either directly or indirectly to the whole country.

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Local Area Analysis

Despite Slough’s close proximity to London, Oxford and Reading, not to mention much sought-after local towns such as Eton and Windsor, the property prices in the immediate area have always been low by comparison.

The area has long been regarded as being a “grey” area, dominated by images of outdated architecture and popularised by comedy shows such as “The Office”. However, this image does appear to have driven a redevelopment and re-branding of the area (assisted by the increased influx of migrant workers) and in many areas of Slough real differences can already be seen in terms of redevelopment and gentrification. Speaking recently at a South East Regional Assembly meeting to discuss the regeneration of Slough, the Conference Chair and Regional Chair of the CBI, Gordon Storey, said that his company - Mars Confectionery (based in the town) - was "actively involved in urban renewal in Slough. We have a very real commitment to helping to raise the quality of life in the town." Regeneration projects there were being taken forward thanks to the successful partnership between Slough Borough Council, local companies and community groups. In addition funding has been granted from external bodies, such as English Partnerships, the national regeneration agency, which will provide £17.52m for the Heart of Slough project alone.

In recent years the property prices have climbed steadily above the national average and even when prices have dipped nationally, the local prices have continued to climb. This climb is driven by the increasing demand for housing from employment in the immediate vicinity but also by the increasing numbers of people being driven out of the cities by the extremely high cost of property.

The potential for investment can be seen when observing the average prices for flats. Whereas average prices have increased in line with average property prices year on year, their values are well below that of national values. This might be due to the fact that the local market for flats in the area has until lately been dominated by those built in the 1960s and 1970s along with a few house conversions but increasingly, with the regeneration of the area, new apartment complexes and exciting urban mixed-use schemes are changing the perception of flats. 2 Bedroom flats in a neighbouring development which has just been completed, Quadrivium Point, have been selling for between £224,950 - £349,950. Similar prices are also being seen for other local developments including Aspect, Centrika, Mosaic and Burlington Mews.

To illustrate further the background of those likely to invest in the area, Quadrivion Point has so far seen 40% of its sales going to existing employees of Heathrow, 20% to local workers from the trading estate and the majority of the remaining 40% going to purchasers in London looking to either commute from Slough or as a second home for investment purposes. Average rental (as quoted by Matthew Brazier of the Slough office of Campsie Estate Agents on 12th June 06) on a 2 bed flat is currently between £850 - £900 per month and this looks set to rise. The market for new build flats had been extremely good. Mr Brazier also stated that other developments in the area have

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sold very quickly and several new sites have been planned by Bovis, KingsOak and Lindon Homes.

The future employment potential in the area looks extremely positive. Neighbouring one of the world’s largest airports, being the home of Europe’s largest trading estate, possessing excellent communication links and boasting a location that strides London and the “M4 Corridor”, Slough is the natural choice for many large companies that have based their headquarters in the town. The area is also the home for many large international companies including AT&T, Barclays Bank Plc, Corus, Ferrari Maserati Ltd, Masterfoods, Sara Lee, Gate Gourmet, Yellow Pages, O2, Amazon, Black and Decker, Leaseplan and Computer Sciences to name but a few. The trading estate employs a further 20,000 people and looks set to grow in the future with the arrival of other new firms.

However, the backbone of employment in the area is undoubtedly Heathrow airport. Already Heathrow is the world's busiest international airport. Regarded as the hub of the aviation world, around 90 airlines have made Heathrow their base. The airport has four terminals (with the fifth under construction) and serves over 180 destinations in over 90 countries. This is set to increase with the development of Terminal 5 due to open on 30 March 2008 creating a further 30,000 jobs. This says nothing for the increasing number of migrant workers who travel from Slough to Reading, Oxford and London amongst other locations.

There are a number of regeneration projects underway in the area from the relatively small gentrification projects to the exciting “Heart of Slough”.

These factors will undoubtedly increase interest in the area as a place for investing in property and with the inevitable inflation in local property prices the financial gain should be substantial both in terms of rental possibilities and resale.

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The Heart of Slough

“The Heart of Slough” is without doubt one of the most exciting developments being planned for the region. It will deliver 29 acres of inner urban brownfield site development right at the centre of Slough. The ambitious project will ultimately provide more than 1,300 new homes (68,000 sqm), 68,000 sqm commercial space (of which at least 22,564 sqm will be high quality office space), and 17,000 sqm creative and civic space. Also planned are a new bus station, a revised road layout and new public recreation space, as well as a new library and community facilities. Along with English Partnerships, Slough Borough Council will be working with development partners Berkeley Homes and Development Securities to deliver the scheme, which will lead to a total investment of over £200million. This will account for almost half of the total amount planned to be spent on the redevelopment of the Slough area (£450m) and will form the most vibrant and integral part of the cultural centre of the town.

The development is currently envisaged to take the form of a star, with an elevated central piazza rising from the two main sites across the current central roundabout to create an open-air amphitheatre for siting public art, and cultural festivals, opening into a covered multifunctional space for performance, exhibition and film production at the bottom of a flagship building, the Creative Hub.

A second flagship building will rise from the other side of the piazza entirely dedicated to housing with some retail facilities at the bottom of the building. The central piazza will then descend through external landscaped staircases and slopes

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into three distinct areas – a South West residential quadrant; a North East commercial and office quadrant; and a North West educational quadrant – to include the university and possible international conferencing facilities.English Partnerships, the national regeneration agency, has announced a funding package of £17.52 million for Slough Borough Council’s Heart of Slough project which will now help the council to conclude the development agreement with partners Development Securities and Berkeley Homes, and clears the way for detailed work to start on buildings, highways design and public consultation.

Cllr Colin Dextor stated that “The Heart of Slough scheme will really help transform the gateway to Slough’s town centre and radically improve the town’s image. Good management of our town’s assets is vital and pulling in extra funding to update and improve the town infrastructure and environment is part of our strategy to improve the quality of life in the town. The project has already brought many benefits to the town over past few years, such as arts funding and a creative industries hub, and it is hoped we can now start making real inroads into the physical regeneration.”

David Warburton, area director for English Partnerships added, “We are delighted to confirm our commitment to this project which is key to the revival and future prosperity of Slough.  The plans for the project tick all the right boxes for us in terms of helping to create a community where people will want to live and work.  The delivery of affordable homes, regenerating the town centre and the re-use of brownfield land are key elements of the project and chime exceptionally well with our remit.”

To date, external funding brought in by the Heart of Slough scheme includes: - A new “Creative Industries Enterprise Hub” funded by SEEDA at Thames Valley University.  The hub is currently full with 15 businesses in place and could be expanded to include further new ones with the creation of new jobs; - £3m European Equal funding for work on creative initiatives with disadvantaged communities. To date more than 4,000 people have been through programmes and eight new businesses have been created; - Funding from South East Arts for the Centre.

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Heathrow Airport, Terminal 5

The new Terminal 5 at London’s Heathrow Airport will be one of the most exciting and aesthetically-arresting airport terminals in the world.

Due to open from the end of March 2008, the expansion will allow for an increase of 30 million passengers annually, ensuring that Heathrow remains the planet’s busiest airport. The project will cost over £4.2 billion and along with the billions of pounds of investment due to be spread through the existing four terminals, the project will ensure Heathrow is also the most well-equipped and modern. The sheer scale of the development makes this one of Europe’s largest construction projects and in addition to the main building Terminal 5 will also consisit of two satellite buildings (the second of which will be completed by 2011) and will also include a new direct linkroad to the M25 – whch will assist surrounding areas. Communications to the

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Thames Valley University

Wellington Street

High Street

Brunel Way

Slough Railway Station

Slough Central

Wellington Street

Proposed Site of the “Heart of Slough”

Educational Quadrant

Residential Quadrant

Commercial Quadrant

area will also be improved by the extension of the Heathrow Express and the Picadilly Line services.

The enormity of the venture will also have a direct affect on the surrounding area. With the creation of new transport links, any current congestion will undoubtedly be improved and access to the centre of London will be made much faster and easier from the immediate vicinity. In addition to these improvements the creation of an estimated 30,000 jobs will improve an already buoyant economy and will inevitably bring more people from outside to live in the area, further increasing the prosperity of towns such as Slough – already an important site for service companies and an increasingly popular location to live for those working at Heathrow.

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Sales Strategy

Key Positive Attributes

Landmark mixed used development, which will add to the town sky line. First class transport links via road and rail to London and the South East. Proximity to town centre with a plethora of shopping and leisure facilities Directly adjacent to proposed regeneration project (Heart of Slough). Very strong local economy with a young and high earning workforce The adjacent hotel scheme will raise the profile of the immediate area resulting in

the establishment of an upmarket leisure destination preceding the completion of Slough Central.

Affordable capital values of units Expanding workforce due to Heathrow Terminal 5 project, together with the

expansion of Slough Industrial estate.

Concerns / Potential Negative Attributes

Large number of units within the development. This risk is inherent in any large scheme. What Slough Central has to its advantage is that the scheme is located directly adjacent to the station, yet still slightly removed from the congested town centre, making it a desirable location for many buyers. Selling in phases will also help reduce sales risk and protect prices by not having to sell a large number of units within a short space of time on completion of construction. By selling the majority of the units off plan, we will significantly reduce the development risk.

Noise Levels. The proximity to the station may result in increased noise pollution. The solution will be to install high quality glazing to counter the noise similar to those used in previous London green developments.

The Building. In order to create huge interest for another landmark scheme in Slough the buildings need to be inspiring and aesthetically and visually stunning. For a scheme of this magnitude buyers have come to expect this as standard especially with the future projects in the pipeline for Slough. Investors want reassurance that tenants will want to rent there over and above the other alternatives, and the same applies to owner-occupiers wanting to buy and live there rather than other developments.

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The report has addressed a number of issues which are currently prevalent in the Slough market.

- The Strength of the local economy- The Employment and expected future employment prospects and the

conditions affecting growth.- The perceived oversupply and purchaser dynamics in the current market.- Town Centre living conditions and expectations.- Affordability

Mycitypad are of the opinion that Slough is very much a buoyant market but is also a very exciting town with phenomenal potential and enthusiasm. There are a number of significant factors which give us real confidence in the success of Slough Central. It is with these factors in mind that we propose the following strategy.

The sales for such a large residential scheme will be split into 2 main phases. The first phase will target the off-plan investor market, in the UK and abroad. The second phase will directly target the owner-occupier market (particularly London commuter and Heathrow and first time buyer market.

Phase 1:We intend to release the first phase off-plan to our investor networks. Having assessed the appetite of each broker in advance, we have had a very positive response. We would be confident of selling 60% of the units immediately, with the prospect of another 30% over the next 6 months, effectively completing the sales of all 2 beds, representing sales in excess of £45m (95% of the development).

We are in a good position for an imminent launch as several of our key brokers have already visited the site and are at an advanced stage in their research of the development. We have specifically identified brokers throughout the country that have performed well for us on previous developments.

We have earmarked approximately 25% of the units for Cork investors, whilst we will use 3 brokers to sell smaller amounts (approx 10 to 15 units each) in Dublin and the West of Ireland. The maturing of SSIA funds should also be a factor in relation to Irish purchasers.

We plan to give smaller allocations to a number of other brokers throughout the UK. Several of these brokers have been keen to enter the South East market but have been deterred by prices above the 3% SDLT threshold. These firms have a very good track record with developments in provincial cities and towns and should find considerable interest amongst their investors for Slough.

Phase 2:

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We recommend that we hold the 1 bed units for sale 6-12 months prior to completion. Given the projected increased demand from young professionals in the area, we believe that the demand for 1 bed units will be very high towards mid 2008. We propose a marketing suite in one of units for the sale of all of the remaining units to the owner-occupier market. .

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One bed comparisons in Slough:

The prices of comparable one bed apartments in the area range from £155,000 – £185,000. The following is a list of one bed comparables in the Slough town centre.

Mosaic Apartments, 26-40, High Street, Slough

1 bed apartment in the centre of Slough; situated just minutes from Slough’s mainline station and high street, as well as the impressive Queensmere and Observatory shopping centres. First Floor. 486 sqft.

£169,995

Knight Frank 01483 564660

1 bed / 1 bath apartment in the centre of Slough; situated just minutes from Slough’s train station and high street, as well as the impressive range of local amenities. Fifth Floor. 490 sqft.

£184,995

Knight Frank 01483 564660

One-bedroom apartment in the centre of Slough; situated just minutes from Slough’s train station and high street, as well as the impressive range of local amenities including two shopping centres. Fifth Floor. 570 sqft.

£194,995

Knight Frank 01483 564660

Quadrivium Point, Bath Road, Slough

Brand new second floor 1 bedroom apartment in new landmark gateway development located close to the town centre and Junction 6 of the M4. Luxury fully fitted kitchens with oven/hob, fridge/freezer and washer dryer. 559 sqft

£168,950

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A2 Housing Group 0808 144 9192

Windmill Road, Slough

This modern contemporary 1 bed penthouse apartment built within the last two years comprises of lounge area, kitchen area, bedroom, en-suite bathroom, guest cloakroom, private balcony, gated underground parking, communal grassed areas and double glazing.

£185,000

Haart 0845 338 8234

Two bed comparisons in Slough:

Prices of comparable two bed apartments in the area range from £224,950 – 349,950 with exclusive penthouses selling for £400,000. The following is a list of two bed comparables in Slough town centre.

Mosaic Apartments, 26-40 High Street, Slough

2 bed apartment in the centre of Slough; situated just minutes from Slough’s mainline station and high street, as well as the impressive Queensmere and Observatory shopping centres. Third Floor. 696 sqft.

£219,995

Knight Frank 01483 564660

2 bed / 2 bath apartment in the centre of Slough; situated just minutes from Slough’s train station and high street, as well as the impressive range of local amenities. Fourth Floor. 696 sqft.

£227,995

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Knight Frank 01483 564660

Two-bedroom apartment in the centre of Slough; situated just minutes from Slough’s train station and high street, as well as the impressive range of local amenities including two shopping centres. Fifth Floor. 656 sqft.

£239,995

Knight Frank 01483 564660

Contemporary two bed apartment close to centre

with all local amenities close to hand.

£179,995 to £194,995

KingsOak 01628 629 111

Burlington Mews, Burlington Avenue, Slough

Contemporary two bedroom apartment with en-suite

shower room at the very heart of Slough! Featuring

just fifteen apartments and two penthouses,

Burlington Mews puts you in the perfect location to

enjoy all of Slough town centre's facilities and travel

links.

£179,995 to £194,995

KingsOak 01628 629 111

Quadrivium Point, Bath Road, Slough

Brand new ground floor 2 bedroom apartment in new landmark gateway development located close to the town centre and Junction 6 of the M4. Luxury be-spoke kitchen and fitted carpets. 742 sqft Available Spring 2006.

£224,950

Campsie 01753 521111

Centrika, Bath Road, Slough

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2 double bedrooms, 2 bathroom apartments in town

centre. Spacious homes maximizing light and space

with high level of specification. Open plan living

areas, en-suite to the master bed plus designer fitted

kitchen with oven, hob and hood. All reserved.

£219,995 to £252,995

KingsOak 01628 629 111

242, Rutlan Avenue, Slough

Private gated development of only 24 apartments

with a small friendly feel. Modern and convenient in

style with designer fitted kitchens with oven, hob and

hood, en-suites to master bedrooms, spacious

lounges, double glazing.

£195,000 to £210,000

Barratt Homes 01628 823495

Aspects, Throwley Way, Slough

Contemporary 2 bed apartment in new landmark

development with modern, light interiors that boast

designer fitted kitchens, white bathroom suite,

landscaped communal grounds, audio-entry system

and private allocated parking.

£139,995 to £277,995

Barratt Homes 01628 823495

Quadrivium PointPlot 67, Quadrivium Point. Brand new 2 bed, 2 bath

duplex in new landmark gateway development

located close to the town centre and Junction 6 of the

M4. Luxury fully fitted kitchens with oven/hob,

fridge/freezer and washer dryer. 803 sqft.

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£249,950

Airways New Homes 0808 144 9192

Notes: All distances and times are as accurate as possible at the time of writing but should be used as

an approximation only. Any specific locations or facilities mentioned in the report were correct at the time of writing

but are subject to change. Any planned developments mentioned in this report are described as per the best details at the

time of writing the report but are always subject to change.

Sources

Transport for LondonThe Automobile AssociationThe Land RegistrySlough Borough CouncilOfstedSlough Primary Care TrustThames Valley UniversityThe Office of National StatisticsBAASlough Trading EstateSouth East Regional AssemblyEra Ltd

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