CHISWICK GATE598 - 608 CHISWICK HIGH ROAD, CHISWICKLONDON, W4 5RT

PRIME MULTI-LET GREATER LONDON FREEHOLD OFFICE INVESTMENT OPPORTUNITY

INVESTMENT SUMMARYn Chiswick Gate provides a rare opportunity to acquire a prime,

modern office building in an affluent West London location

n Located in a prominent position on Chiswick High Road, less than 100m from Chiswick Park

n Excellent communication links being situated diagonally opposite from Gunnersbury train/underground station (District line), and within 250m from Junction 1 of the M4

n Transport links in the area will be further improved with the opening of Crossrail in 2018, providing a high speed, high frequency train service

n Flexible refurbished office building, extending to 13,339 sq ft, arranged over ground, first, second and third floors

n 38 secure basement car parking spaces providing an excellent ratio of 1:351 per sq ft

n The Landlord has undertaken refurbishment works, including WC’s, common parts and reception

n The property is currently multi-let to Accent Marketing & Research Limited, Education & Media Services Ltd, Arena Wealth Ltd and Verisure Services (UK) Ltd on four separate FRI leases which combine to provide a WAULT of 2.1 years to breaks and 5.21 years to expiries

n Current passing rent of £375,695 per annum (reflecting £26.67 per sq ft overall on the office accommodation)

n Being let off an average rent of £26.67 per sq ft, the subject property is extremely well placed to benefit from rental growth as rents continue to rise throughout West London and through the Thames Valley. The latest letting at Chiswick Green, adjacent to the property, was at £43.00 psf

n IPD average rents for Hammersmith and Fulham are forecasted to grow on average by 8.8% per annum for the next three years

n Asset management opportunities to regear and remove the break options or to enable vacant possession

n Potential to increase the square footage subject to planning permission

n Subject to planning permission, the property has potential for conversion to residential

n Freehold

n Seeking offers in excess of £5,935,000 (Five Million, Nine Hundred and Thirty Five Thousand Pounds) reflecting an attractive net initial yield of 6%, and a low capital value of £445 per sq ft assuming purchasers’ costs of 5.80%

10

9

6

8

5

4

3

7

2

1

12

11

1. Gunersbury Underground and Overground Station

2. Chiswick Park Underground Station

3. Chiswick Green

4. Chiswick Tower

5. The Building

6. Chiswick Park www.enjoy-work.com

7. Chiswick Moran Hotel

8. Bond House

9. Hammersmith

10. Central London

11. River Thames

12. Chiswick Gate

LOCATION & COMMUNICATIONSChiswick is an affluent location within Greater London strategically situated between Central London and the M25 / Heathrow Airport. It has become an integral part of the London office market with the majority of occupiers having moved from central London locations, and is 6 miles (9.7 km) to the west of Central London and 2 miles (3.2 km) to the east of Hammersmith.

RoadChiswick benefits from excellent road links as it is positioned at the intersection of the South Circular (A205), the North Circular (A406) and Junction 1 of the M4 Motorway providing quick access to central London and the national motorway network.

Public TransportGunnersbury Station (District Line and Overground) is located opposite the property and provides regular services into Central London and surrounds. Nearby stations also include Chiswick Park (District Line), Kew Bridge (Mainline Rail Service) and Acton Town (Piccadilly, District) and Acton Mainline which is due to benefit from a Crossrail station in 2018. In addition there are excellent bus routes linking with Richmond, Hammersmith and White City and surrounds, and a boat service which runs along the River Thames from Kew Pier.

LutonAirport

WATFORD

ENFIELD

DOCKLANDSCITY

WEST ENDCHISWICK

CHISWICKGATE

SLOUGH

REDHILLGUILDFORD

CROYDON

DARTFORD

WIMBLEDON

WALTHAMABBEY

HeathrowAirport

GatwickAirport

StansteadAirport

London CityAirport

M25

M25

M3

M4

M40

A23

A22

A3

A2

A1

A4

A10

A12

A13

A205

A205

A40

A20

A12

A127

M1

M1

A1(M)

M23

M11

27

252321

16

15

12

10

28

29

30

1b

3

5

67

M20

M20

M26

M25

M25

StationDistance

(Minutes)*

Gunnersbury (Overground & District) 1

Kew Bridge (Mainline Rail Services) 10

Chiswick Park (District) 10

South Acton (Overground) 15

Acton Town (Piccadilly & District) 20

Location Distance

Chiswick Roundabout 0.2

M4 (Junction 1) 1 mile

M25 (Junction 15) 10.5 miles

Heathrow 13 miles

Central London 6 miles

Source: Google Maps.

SITUATIONChiswick Gate occupies an extremely prominent position on the north side of Chiswick High Road (A315) in an affluent location providing a mix of high value residential and office properties.

It is situated approximately 250m from the Chiswick Roundabout (Junction 1 of the M4) and opposite Gunnersbury mainline and underground station, both of which provide easy access to central London and Heathrow International Airport.

The property is less than 100 metres from Chiswick Park - the award winning and UK’s premier business park totalling (1.8 million sq ft of office space) and next door to Chiswick Green (82,307 sq ft) - a brand new headquarters office development.

Notable occupiers in Chiswick and West London include GlaxoSmithKline, BSkyB, Starbucks, Swarovski, CBS News, Tullow Oil, Walt Disney and Vue Entertainment.

M4 12

A316

KEW

RD

A4

A406

River T

hames

Royal BotanicGarden, Kew

DukesMeadowsGolf Club

KewBridge

KewGardens

ActonTown

ChiswickPark

SouthActon

Shepherd’sBush

Hammersmith

WestKensington

Gunnersbury

GunnersburyPark

River Thames

PUTNEY

HAMMERSMITH

KEW

CHISWICK

DESCRIPTION & SPECIFICATIONChiswick Gate comprises a stand alone office building constructed in the 1980’s and is of traditional brick construction beneath a mansard roof. The property is arranged over basement, ground and three upper floors. The building is mixed use comprising part office and part residential. The two parts have been split vertically. The nine flats in the residential element has been sold off on a 125 year lease and is accessed separately via the eastern elevation. The office element offers the flexibility to be let as a whole or on a floor-by-floor basis.

The specification includes:

n Raised floors with floor boxes

n Floor to ceiling height of 2.6 metres

n Suspended ceiling

n Air conditioning

n A terrace to the northern elevation

n 1 x 8 person (630 kg) passenger lift

n Refurbished male, female and disabled WC’s

n Video/fob access system

n 38 secure underground car parking spaces

The building has a total of 38 secure basement car parking spaces, providing an excellent ratio of 1:351 per sq ft.

FLOOR PLAN

Second Floor Plan

ACCOMMODATION & TENANCIESThe office accommodation is multi-let on four leases as per the tenancy schedule below and produces a total passing rent of £375,695 per annum.

The property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) and provides the following net internal floor area:

The property occupies a site of approximately 0.17 acres (0.07 hectares).

Accommodation Lease Details Rent Comments

Tenant Floor Sq m Sq ft Start Expiry Break Review £ pa £ per sq ft

Accent Marketing & Research

Ground 3,643 11/08/2013 30/09/2023 30/03/2016 30/09/2018 £94,770 £26.01

Current rent - £87,480 p.a. until fixed increase to £94,770 on 01/10/2015. Vendor to top up to break.

Verisure First 3,539 09/05/2014 08/05/2019 09/05/2016 £100,633 £28.44

Currently in a rent free period until 09.01.2015. Vendor to top up. Rent deposit of £30,190.60

Education & Media Services Second 3,477 24/06/2013 30/06/201830/06/2016 09/05/2017

£87,932 £25.29

Current rent - £81,168 p.a. until fixed increase to £87,932 on 01/07/2015. Vendor to top up to break.

Arena Wealth Third 2,680 11/01/2012 10/01/2018 11/01/2017 £72,360 £27.00 Rent deposit of £43,416

Car Parking Licences £20,000Licence to Viasat, subject to 3 months’ notice

13,339 £375,695 £26.67

TENUREThe property is held freehold. The residential element has been sold off on a long leasehold for 125 years from 23 March 1993 at a peppercorn rent.

DATA ROOMInterested parties should apply for access to the data room.

10 spaces let (out of 38 spaces)

COVENANT INFORMATIONDetailed covenant information is available on the Chiswick Gate dataroom, at www.chiswickgate.uk

Accent Marketing & Research Limited Company number: 2231083

Accent is a full service market research consultancy delivering innovative, tailored and targeted insight. Chiswick Gate is their HQ with further offices in Bristol and Edinburgh.

Further information can be found at www.accent-mr.com.

Education & Media Services Ltd Company number: 3506156

Education & Media Services Ltd, trading as ITEC has been awarding high quality and respected industry qualifications since 1947. It is now one of the world’s leading and most successful awarding bodies specialising in Beauty and Complementary Therapy, Sport, Fitness and Hairdressing sectors. In 2011 ITEC awarded over 38,000 Certifications in over 38 countries. Further information can be found on www.itecworld.co.uk

Arena Wealth Ltd Company number: 5590656

Arena Wealth is a wealth management company. Arena Wealth evolved from the in-house financial services team of IMG, the well-known international sports agency. Arena Wealth manage their client’s assets, liabilities, income and expenditure to ensure that they are properly protected and that their financial objectives can be met in both the short and longer term. Further information can be found on www.arenawealth.com

Verisure Services (UK) Ltd Guaranteed by Verisure Holding AB (Publ) Company number: 8840095

Verisure was founded as Securitas Direct in 1988 as part of the company Securitas in Sweden. Securitas Direct became a separate company in 2006. In 2014 Verisure established in the United Kingdom. Verisure is Europe’s leading supplier of home alarms and connected services. With more than 1.6 million customers and 6,500 employees in 14 countries, they are number one in Europe and growing fast in South America. Further information can be found on www.verisure.co.uk

TenantD&B

RatingRent

DepositLength of time in Occupation

Accent Marketing & Research Limited

A2 11 years

Education & Media Services Ltd

B2 9 years

Arena Wealth Ltd B2 £43,416 7 years

Verisure Services (UK) Ltd

03 £30,190.60 0.5 year

OCCUPATIONAL MARKETChiswick forms an important part of the West London office market and is strategically located between Heathrow airport and London’s West End. Chiswick’s location between these two areas means it appeals to both occupiers along the M4 corridor and in the South East who are looking to move closer to London, and occupiers in the West End who are looking to gain Grade A space at a discounted rent.

Current office rental values within Chiswick Gate are comparatively lower than neighbouring markets and properties, including Hammersmith (£50.00 psf), Chiswick (£52.50 psf) and Richmond (£43.50 psf). In addition, the latest lettings at Chiswick Green and Chiswick Tower have been at £43.00 psf and £35.00 psf respectively.

The limited availability of Grade A stock in the South East coupled with the significant depth of occupier requirements is projected to lead to further rental growth and IPD forecast average rents for Hammersmith and Fulham to grow by an average of 8.8% per annum. Recent examples are outlined below:

Date Town AddressArea

(Sq Ft) Landlord Tenant Term (Years) Rent (Psf) Status

Nov-14 ChiswickBuilding 7, Chiswick Business Park

330,550 CIC - - Q. £52.50Quoting - Floorplates of 24-28,000 sq ft

Sep-14 Hammersmith 10 Hammersmith Grove 34,240SWIP/Development Securities

Phillip Morris International

10 £50.00 Completed

Aug-14 Hammersmith 10 Hammersmith Grove 23,800SWIP/Development Securities

Fox TV 10 £49.00 Completed

Nov-14 Chiswick The Building 5,000 IVG - - Q. £41.00 Quoting

Nov-14 Chiswick Chiswick Green 5,600 M&G - - Q. £45.00Quoting – Part 2nd floor

Aug-14 Chiswick Chiswick Green 14,711 M&GViasat Broadcasting UK Ltd

13 £43.00 Completed

Nov-14 Chiswick Chiswick Tower £35.00 Quoting

Jun-14 Hammersmith 10 Hammersmith Grove 23,833SWIP/Development Securities

Accor UK Business & Leisure Hotels

10 £46.00 Completed

May-14 Richmond 63 Kew Rd 33,331 ThreadneedleNot on the High Street.com

10 (7 year break)

£43.50 Completed

Mar-14 Chiswick2nd & 3rd floors, Building 12

40,000 CIC Pernod Ricard 10 £47.00 Completed

Feb-14 Hammersmith 10 Hammersmith Grove 32,535SWIP Property Trust

UKTV 15 £48.50 Completed

INVESTMENT MARKETInvestor appetite continues to strengthen for prime assets let to institutional covenants in core South East locations, value add and redevelopment opportunities. The weight of money in the market chasing a limited supply of prime opportunities have continued to put further downward pressure on South East office yields, as is demonstrated by the following recent transactions:

RESIDENTIAL MARKETChiswick is an affluent and desirable London suburb with high quality housing, schools and attractive shopping as well as being in close proximity to the River Thames, which continues to retain and attract new families to the area.

Chiswick’s population is increasingly affluent and coupled with its amenities and communication links, the demand for high quality housing vastly outstrips supply. A selection of notable local residential developments are outlined below:

AddressTenant (Term Certain) Price NIY

Capital Value £psf Vendor/Purchaser

Sale Date/Status

Pier House, Chiswick

James Grant Media Limited (2.9 years)

£10m 4.50% £582 Quoting Available

43 Brook Green, Hammersmith

Halcrow Group Limited

£51.3m 5.25% £599 Quoting Available

Hunton House, Uxbridge

British Alcan Aluminium Plc (9.5 years)

£10.88m 5.60% £448Farmglade / UK Institution

Under Offer

Bond House, Chiswick

The DeccaRecord Company Ltd (0.5 years)

£15.5m 5.03% £631 IBV / EPIC Oct-14

Ealingcross, EalingMulti-let (4.88 years)

£43.735m 5.25% £344Benson Elliot & XLB / Aviva

Sep-14

Clarendon House, Watford

Anglian Water Group (4 years)

£25m 6.22% £395 IM Properties / M&G Sep-14

Chiswick Place, Chiswick

Multi let (5 years)

£11.45m 6.25% £400 Rockspring / Allianz Aug-14

80 Moorbridge Road, Maidenhead

Multi let (5 years)

£6.84m 5.66% £383 Aberdeen AM / L&G July-14

Meridien House, Watford

Multi let (4.9 years)

£19.011m 5.89% £335 IVG / M&G July-14

1 Eton Street, Richmond

Whole Foods and vacant offices (2 years)

£28.63m 5.80% £716 BAM Construction / Standard Life

Aug-13

Name Address Developer

Total Residential

UnitsCompletion

Date

Average Asking Prices

(£ per sq ft)

Chiswick Corner Haus

Chiswick High Road, London W4 4HH

Linden Homes 16 2014 £1,050

St Peter’s Place 405-409 King Street, London W6 9NJ

Crest Nicholson 41 Oct 2014 £985

Ashlar Court 32 Ravenscourt Gardens, London W6 0TU

Linden Homes 68 Nov 2014 £960

Chiswick PointColonial Drive, London W4 5NU

Bellway Homes 124 Apr 2015£825 (No car

parking spaces)

EPC & VATThe property has an EPC rating of D99. The property has been elected for VAT.

PROPOSALWe are instructed to seek offers in excess of £5,935,000 (Five Million, Nine Hundred and Thirty Five Thousand Pounds) reflecting an attractive net initial yield of 6%, and a low capital value of £445 per sq ft assuming purchasers’ costs of 5.80%.

CONTACTDavid Edwards

david.edwards@bnpparibas.comT: 020 7484 8127M: 079 2123 4025

Henry Chapman

henry.chapman@bnpparibas.comT: 020 7338 1015M: 078 2337 1583

Misrepresentation Act 1967: BNP Paribas Real Estate Advisory & Property Management UK Limited for themselves and for the vendor(s) or lessor(s) of this property whose agents they are, give notice that: 1. These particulars do not constitute, nor constitute any part of, an offer or contract. 2. None of the statements contained in these particulars as to the property are to be relied on as statements or representations of fact. 3. Any intending purchaser or lessee must satisfy himself by inspection or otherwise as to the correctness of each of the statements contained in these particulars. 4. The vendor(s) or lessor(s) do not make or give and neither BNP Paribas Real Estate Advisory & Property Management UK Limited nor any person in their employment has any authority to make or give, any representation or warranty whatever in relation to this property. Finance Act 2013: Unless otherwise stated all prices and rents are quote exclusive of VAT. The Business Protection from Misleading Marketing Regulations 2008: These details are believed to be correct at the time of compilation but may be subject to subsequent amendment. Nov 2014

For further information in relation to other investment sales from BNP Paribas Real Estate, please log on to www.realestate.bnpparibas.co.uk © Produced by Barbican Studio: +44(0) 207 634 9574

5 Aldermanbury SquareLondon EC2V 7BP

www.realestate.bnpparibas.co.uk

Oliver D’souza

oliver.dsouza@bnpparibas.comT: 020 7338 4865M: 077 1727 4648