29-35 NORTH ACTON ROAD PARK ROYAL LONDON NW10 6PE. MULTI-LET INDUSTRIAL ESTATE investment opportunity

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1 MULTI-LET INDUSTRIAL ESTATE investment opportunity

2 INVESTMENT Summary Located in Park Royal, the largest industrial area in Europe. Strategically situated on North Acton Road with direct access to Central London via the nearby A40 and A404 dual carriageways. Four unit industrial estate. Totalling 3, sq m (34,920 sq ft). Producing 322,656 per annum, equating to a low average rent of only 9.24 per sq ft. Reversionary. Excellent opportunities for active management including re-gearing, rent reviews and potential to establish trade counter use. Freehold. We are instructed to seek offers in excess of 3,935,000 (Three Million, Nine Hundred and Thirty Five Thousand Pounds), subject to contract, for the freehold interest in this property, which reflects the following yield profile after allowing for usual purchaser s costs of 5.75%: Net Initial Yield: 7.75% Equivalent Yield: 9.07% True Equivalent Yield: 9.60% Reversionary Yield: 9.23%

3 LOCATION Park Royal is Europe s largest industrial estate, extending to approximately 728 hectares (1,800 acres) and is home to over 2,000 businesses, employing in excess of 40,000 people. Park Royal is located in the London Borough of Ealing, 4 miles west of Central London, 6 miles east of Heathrow Airport and 1.5 miles south of Wembley station. Park Royal benefits from excellent road communications due to its close proximity to two of London s major arterial roads, the A40 Western Avenue and the A406 North Circular Road, both of which are less than 1 mile from the subject estate. The A40 provides direct access to the M40 Motorway (Junction 1), approximately 12 miles to the west, whilst the A406 provides direct access to the M4 Motorway (Junction 1) 3.5 miles to the south and to the M1 Motorway (Junction 1) 4 miles to the north. In addition Park Royal is served by 8 different underground stations on the Piccadilly, Bakerloo and Central lines. Further connectivity is provided by way of the mainline station at Willesden Junction, providing direct links to London and other north-west London locations, whilst international communications are provided at Heathrow airport 6 miles to the south west. SITUATION The property is situated on North Acton Road, with links to the A40 at Gypsy Corner via the A4000, approximately 1 mile to the south. The North Circular (A406) is accessed via the A404 to the north west of the property. Harlesden Underground station (Bakerloo line) and North Acton Underground station (Central line) are within 1 mile of the subject property. Surrounding land uses are dominated by industrial property, with local occupiers including Heinz, McVities UK, Iron Mountain, Boden, Colt Telecommunications and Panalux. To the rear of the property lies a 1.3 acre development site owned by Chancerygate. Local amenities within walking distance of the property include Central Middlesex Hospital and the Asda Supermarket (24 hour) on Park Royal Road. PARK ROYAL Park Royal has been identified by the Mayor of London as an opportunity area set to benefit from an increase in employment and housing over the next decade. The Estate will also benefit from Crossrail, which will improve access times to both Heathrow and Central London, with a proposed connection at Acton Mainline station, immediately to the south. Park Royal s excellent location is highlighted by populations of 25.4m and 49.9m within 2.25 and 4.5 hours drive times respectively. The proximity to London and excellent connectivity appeals to a broad range of international occupiers including John Lewis, Carphone Warehouse, Excel, Diageo, Royal Mail, Bestway, Brake Brothers, Kuehne & Nagel and DHL. M40 M4 M3 M1 A1(M) 7 23/1 21/6A /1A 1 1 M25 15/4B 4 3 M HEATHROW 13 1 M3 12/2 11 M25 10 A40 A406 Park Royal H A N G E R A 4 0 LA N E Hanger Lane (Central Line) N O RT H CIRCULA R R OAD A 40 6 S O U TH CIRCULAR T W Y F O R D A B B E Y R OA D Park Royal (Piccadilly Line) A406 A B BE Y R O A D C O R O N A T I O N R O A D WEST E R N A V E N U E P A R K R O Y A L R A O AD Harlesden N O R T H A CTO N R O A D VICTORIA RD A C TON LAN WALES FARM RD E V I C T O R I A R O North Acton (Central Line) O A K LAN E L D A D O /8 M23 RD Acton A A40

4 ASDA Cadogan Tate Diageo Central Middlesex Hospital Anglo Pacific Geopost Excel Origin A406 A40 Acton Lane North Acton Lane Telecity UK Power Gate Colt Telecommunications Sainsbury s Moves/Ward Thomas Chancerygate

5 DESCRIPTION The subject property comprises a terrace of five industrial warehouses of steel frame construction built in the 1980 s. The units are constructed with brick and block work elevations under a pitched corrugated sheet clad roof and benefit from a minimum eaves height of 6.95 m. Internally the warehouse units provide concrete screed floors, a mix of strip and sodium spot lighting, gas fired warm air blowers in part and approximately 10% translucent roof lights. To the front of each unit is a two storey office block comprising solid floors with central heating, a mix of strip and cat II lighting, WCs and a kitchenette. In addition, each unit benefits from an up and over roller shutter loading door together with a covered loading canopy to the front. The tenants have undertaken a number of alternations including the installation of mezzanine levels and additional office accommodation. Externally each unit has parking and yard access to the front. Unit 3 benefits from an extension to the covered loading area. Unit 5 is vacant and is currently in the process of being refurbished to include new roof lights, repainted walls and floor in the warehouse and updated office accommodation. SITE The site is rectangular in shape, generally level and extends to an area of approximately hectares (1.577 acres). ACCOMMODATION The subject property has been measured in accordance with the RICS code of Measuring Practice (6th edition) and provides a Gross Internal Area of 3, sq m (34,920 sq ft), as detailed in the tenancy schedule.

6 Royal London Industrial Est TENURE The property is held freehold. Unit 4 has been sold off freehold to Partspanel Limited. Barratts Green Road Acton Lane Royal London Industrial Estate Transformer Canal Transformer TENANCIES The property is multi-let by way of three separate leases, with an Average Weighted Unexpired Term of 5.7 years to lease expiries, in accordance with the tenancy schedule. Royal London Industrial Estate Modern Props Ltd Merc H P H Print Ltd Parts Atlantis Depot Brooks Packaging Ltd 0m 10m 20m 30m TENANCY SCHEDULE Playground Unit Tenant Area sq m Area sq ft Lease Start (Rent Review) Lease Expiry (Break) Rent pa Rent psf Erv pa Erv psf Comments Unit 1 Modern Props Ltd ,269 4-Aug-06 (4-Aug-11) 3-Aug-16 (4-Aug-11) 86, , Break on 6 months notice. Guaranteed by Trading Post Limited. Schedule of Condition. Unit 2 J Alavi & S Alavi T/A Merc Clothing , Oct Oct-11 64, , Unit 3 Designers Guild Ltd , Sep-08 (29-Sep-13) 29-Sep-18 (29-Mar-11) (29-Mar-12) (29-Sep-13) 93, , Break on 29-Mar-2011 subject to tenant penalty of 15,591, on 6 months notice. Break on 29-Mar-2012 subject to tenant penalty of 7,796, on 6 months notice. If not exercised, tenant recieves 5 months rent free. Break on 29-Sep-2013 on 6 months notice. Schedule of Condition. Unit 4 Partspanel Ltd N/A N/A N/A N/A N/A N/A N/A N/A Unit was sold off freehold in September 2009 at 130 per sq ft. Unit 5 U/O Carlo Manzi Ltd ,119 5 years (no break) 78, , Currently under offer. 3 months rent free on lease start. Substation EDF Energy Ltd N/A N/A 25-Dec Dec Total 3, , , ,120

7 COVENANTS Modern Props Limited (Company Number: ) Modern Props Limited specialises in providing the latest designer furniture, lighting and small props to the film, TV and photographic industries. The company has operated from this unit since 2006 and has committed significantly to the property following an extensive fit out including the installation of a large mezzanine. Trading Post Limited (Company Number: ) Trading Post Limited provides a guarantee for Modern Props Limited. The firm has traded in the West Midlands since 1994 and services an established base of customers, including local authorities, with a range of electrical appliances. For the year ending 31st March 2009, the company reported a net worth of 709,611. J Alavi and S Alavi T/A Merc Clothing The tenant has operated from this unit since 1981 acting as the distribution centre for Merc Clothing s operations. Merc is a high quality fashion brand that was established in 1959 and continues to trade from its flagship store on Carnaby Street, London. Designers Guild Limited (Company Number: ) Designers Guild Limited was established in 1970 and designs exclusive wholesale furnishing fabrics, wall coverings, upholstery and bed and bath collections throughout Europe and world. The business employs over 260 people between the UK, Munich and Paris. In 2008, the company was awarded 22nd place in the PricewaterhouseCoopers Profit Track 100, a listing for the fastest, privately owned profit growth firms in Britain. Year Ending Year Ending Year Ending Turnover 50,695,000 43,191,000 37,339,000 Pre-Tax Profit 4,054,000 2,968,000 1,850,000 Net Worth 3,842,000 2,981,000 2,520,000 Carlo Manzi Ltd (Company Number: ) Carlo Manzi Ltd specialises as a theatrical costume supplier to the television and theatre industries. The business has been operating from premises in West Hampstead for over 12 years. For the year ending 31st March 2009 the company reported a net worth of 126,605. PLANNING The property benefits from B2 and B8 use classes and is covered by the Ealing Council Unitary Development Plan which was adopted in This is supplemented by a Direction issued in 2007 by The Department of Commnities and Local Government (DCLG). The land is zoned as a major Employment Location. MARKET COMMENTARY Demand for industrial units in Park Royal remains high with take-up in 2009 estimated at 306,000 sq ft. The majority of activity is seen within smaller production/warehouse units, with 49% of the five year average take-up focussed on units up to 50,000 sq ft. Industrial stock within Park Royal comprises approximately 15.7 million sq ft, with 72% of this defined as warehouses. The current level of new stock (space built in the last 5 years) is lower than the London average, with average completions over the last 5 years of 201,000 sq ft per annum, reflecting the limited development opportunities in the area. We are of the opinion the rental value for the subject property is 378,719 per annum, reflecting per sq ft, which is further supported by the interest in unit 5. We highlight below a number of comparable transactions recently completed:- Address Date Tenant Area sq ft Unit 13, Victoria Road Industrial Estate, Victoria Road Unit 730, Tudor Estate, Abbey Road Rent psf Comment Dec-09 Toku Restaurants 4, year term. Break at year s unit. Jul-09 National Electrical Wholesale 5, year term. Refurbished accommodation. Unit 3, Gorst Road Apr-09 TV Prop Ltd 6, year term. Break at year s unit. Units 7&8, Townsend Industrial Estate, Waxlow Road Acton Business Centre, School Road (& Bethune Road) Unit 1, Townsend Industrial Estate, Waxlow Road Sep-08 Fletchers Bakeries Ltd 5, year term. Break at years 3, 5 and s unit. Sep-08 Brandon Tool Hire 5, Rent review. 1970s unit. Apr-08 IST Power Products Ltd 6, year term. 1980s unit. Note: Whilst the information is believed to be correct, some is derived from third parties, hence prospective purchasers should satisfy themselves as to its accuracy.

8 ACTIVE MANAGEMENT The property provides various asset management opportunities: Regear the current leases. Undertake reversionary rent reviews. Establish trade counter use subject to planning. VAT The property is elected for VAT. PROPOSAL We are instructed to seek offers in excess of 3,935,000 (Three Million, Nine Hundred and Thirty Five Thousand Pounds), subject to contract, for the freehold interest in this property, which reflects the following yield profile after allowing for usual purchaser s costs of 5.75%: Net Initial Yield: 7.75% Equivalent Yield: 9.07% True Equivalent Yield: 9.60% Reversionary Yield: 9.23% For further information or to arrange an inspection please contact:- Hugh White Rob Jackson Tel: Tel: hwhite@lsh.co.uk rejackson@lsh.co.uk Additional information is provided at: Misrepresentation Act The accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein is not guaranteed and is for general guidance only and prospective purchasers or tenants must not rely on them as statements of fact or representations and must satisfy themselves as to their accuracy. Lambert Smith Hampton nor any of its employees or representatives has any authority to make or give any representation or warranty or enter into any contract whatever in relation to the Property. Rents quoted in these particulars may be subject to VAT in addition. The reference to any mechanical or electrical equipment or other facilities at the Property shall not constitute a representation (unless otherwise stated) as to its state or condition or that it is capable of fulfilling its intended function. Prospective tenants/purchasers should satisfy themselves as to the fitness of such equipment for their requirements. March 2010