Q-PARK CROYDON

SALE AND LEASEBACK LONG INCOME INVESTMENT THAT WILL BE LET TO Q-PARK LTD WITH ANNUAL RPI UPLIFTS

FOR A MINIMUM OF 35 YEARS

CROYDONSURREY STREET, CR0 1TR

Q-PARK

INVESTMENT CONSIDERATIONS

Prime multi-storey car park located in the very heart of one of London’s

largest boroughs

Sale and leaseback to the strong covenant of Q-Park Ltd for a minimum term of

35 years

Freehold

Total proposed rent of £518,000 pa subject to annual RPI linked rent reviews

with a 1% collar and 4% cap

Large strategic town centre site providing 679 parking spaces arranged over

8 levels with a site area of approximately 0.8 acres (0.32 hectares)

The A232 is less than a minute’s drive south, providing access to the M25 via

Junction 4

Based on a purchase at asking terms the property has a very low capital value

of only £60 psf

Offers sought in excess of £10,790,000 (Ten Million Seven Hundred and Ninety

Thousand Pounds) subject to contract and exclusive of VAT. This reflects a

net initial yield of 4.50%, after allowing for purchaser’s costs of 6.70%.

Q-PARKCROYDONSURREY STREET, CR0 1TR

SALE AND LEASEBACK LONG INCOME INVESTMENT THAT WILL BE LET TO Q-PARK LTD WITH ANNUAL RPI UPLIFTS FOR A MINIMUM OF 35 YEARS

LOCATION

Croydon is located 10.1 miles (16.3 km) south of Central London, and is the largest London Borough in terms of Population with a catchment of c. 363,378 (2011 Census).

Croydon benefits from excellent transport communications located along the A212 and within close proximity to the A213, A236 and A232. The A23 is located c. 1.0 miles (1.6 km) to the west and provides direct access to Central London.

Croydon has excellent rail connections served by West Croydon, East Croydon and South Croydon Rail Stations, operating London Overground and Tramlink services. Direct services run to destinations including Brighton, London Gatwick and Central London, with average journey times to London Bridge in c. 15 minutes and London Victoria in c. 17 minutes.

Gatwick and Heathrow Airport are located 18.2 miles (29.3 km) south of Croydon and 22.2 miles (35.7 km) north west of Croydon respectively, providing domestic and international flight services.

LONDONHeathrow

LondonCity

Gatwick

StanstedLuton

J27J25J23

J21

J20

J19

J16

J15

J12

J10

J7J8

J9

J6

J5

J3

J2

J29

J28

A5

A505

A418

A602A131A130

A138

A130

A127

A217

A331

A322

A339

A316

A309

A232

A264

A264

A229

A120

A404

A355

A404

A413

A4142

A4010

A414

A414

A414

A1

A2

A3

A3

A41

A34

A40

A31

A24

A22

A21

A20

A10

A10

A12

A12

A13

A26

A21

A23

A23

A420

A303

A34

A34

A44

A40

M1

M4

M4

M2

M3

M3

M10

M40

A404(M)

A329(M)

M25

M25

M25

M25

M25

M25

M23

M26

M20

M20

M11

M11

A1(M)

M1

CROYDON

GEORGE ST

CroydonPark Hotel

LatitudeServiced

Apartments

Jurys InnHotel

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Holiday InnExpress

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SITUATION

The property is situated on the western side of Surrey Street and is accessed via Charles Street, close to its intersection with Overtons Yard. The property is located 0.1 miles (0.2 km) north of the A323, a main arterial road that runs west from South London into Surrey.

The car park is centrally located within the Town Centre, fronting Surrey Street, the pedestrianised retail thoroughfare that runs parallel to the High Street, with nearby occupiers including Nando’s, Sainsburys Local and Argos.

The immediate surrounding area provides a popular mix of retail and leisure facilities including Vue Cinema, Surrey Street Market and The Museum of Croydon, attracting an annual footfall of c. 1 million people. Additionally, Q-Park is located only 0.4 miles (0.6 km) south of Croydon’s Centrale Shopping Centre and adjacent to the Croydon Conference Centre which hosts up to 500 guests at any one time.

DESCRIPTION

The property is arranged as a standalone multi-storey car park over lower ground, ground and 5 upper floors, including one level of rooftop parking. Levels 1 to 6 comprise Q-Park branded parking providing 679 spaces, with car wash facilities to level 1 and pay stations at levels 1 and 4. There are two stairwells to the east and west of the property with the primary stairwell to the east, incorporating two customer lifts serving levels 1 to 6. The Q-Park is accessed via level 1, with additional facilities including a customer lobby, service area and staff office located along the eastern side of the level 1.

The lower ground floor provides a residential car park of 51 spaces which forms part of the freehold demise. This has been sold off by way of a long leasehold to King Charles Court Management Limited. Additional space at lower ground level has been sub-let to Croydon Council which is used as a loading area for Croydon Market – the council are currently holding over. A further 60 spaces have been sold off on long leases inside the car park – further information is provided within the data room. The property provides a site area of 0.84 acres (0.34 Hectares).



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

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West Croydon

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PROPOSED LEASE TERMS

TENANT GUARANTORACCOMMODATION

PROPOSED TERM

PROPOSED RENT

RENT REVIEWS OPTION TO EXTEND LEASELEVELS** SQ FT SQ M SPACES

Q-Park LimitedQ-Park Holding B.V. (KvK number: 68805934)

1-6 179,602 16,685 67935 years from completion

£518,000 pa (£763 per space)

Annual retail price index linked rent reviews with a collar of 1% and cap of 4%.

Option to renew the tenancy for two further periods of 10 years on identical terms at the passing rent.

179,602 16,685 679 £518,000 pa

*Measurements are approximate and for indication only – not to be fully relied upon. Any interested party should carry out their own measured survey. Note: The lease will be outside the security of tenure in Part II of the 1954 Landlord and Tenant Act. **The lower ground floor level has been sublet and is not included in the measurements



881,465 parking spacesacross 10 northwest European Counties

Prominent UK locationsincluding London, Reading, Gatwick, Glasgow, Manchester and Dublin

Over 15 million customersin the UK and Ireland

Over 2,500 peopleemployed globally

Unique distinct brandserving 15 million customer across the UK and Ireland

TENANT COVENANT INFORMATION

Q-Park is a leading car park operator, with c. 900,000 spaces operating from over 6,500 parking facilities across the UK and Europe.

Since its establishment in 1998, Q-Park has grown to become Number 2 in the European parking market, active in 10 countries including Germany, Netherlands, Sweden, Finland, Norway and the UK.

Over its lifetime, Q-Park has undergone a number of growth strategies including acquiring Universal Parking, BCP, Epolia and the purchase of 285,000 spaces in 270 car parks from Bridgepoint. Most recently, the Dutch car park operator was acquired for €3 billion in May 2017 by KKR, a leading global investment firm.

Q-Park Limited has a D&B rating of 3A1 and an Experian Credit Rating of 80 reflecting ‘Below Average Risk’.

Q-Park Limited produced the following financial records over a three year period:

31/12/2015 31/12/2016 31/12/2017

Turnover £64,049,631 £68,701,295 £71,930,492

Pre-Tax Profit £835,734 -£2,670,274 £8,883,470

Shareholders Funds £2,506,495 -£460,570 £7,660,887

GUARANTOR COVENANT INFORMATIONQ-Park Limited is guaranteed by Q-Park Holding B.V., a limited private company. Formed under Dutch law, the company was established in May 2017 for the purchase of the Q-Park Group, acquiring 100% of the Group’s shares in October 2017.

Previously trading as Byzantium Acquisition MidCo 2 B.V., Q-Park Holding B.V. and its affiliated Group, hold their Headquaters in Amsterdam and are primarily involved with providing off and on-street parking services within strategic locations across Europe and the UK.

Q-Park Holding B.V. displays the following financial information:

31/12/2017 31/12/2018

Total Assets £4,630,300,000 £4,505,000,000

Group Equity £1,210,500,000 £1,113,300,000

Net Revenue £231,600,000 £877,900,000

6,579parking facilities



CROYDON REGENERATION

Croydon is currently the largest growth centre in London, with a £5.2 billion regeneration programme for the development of 10,500 new homes, 28 million sq ft of new Grade A office space, 7 new hotels and 2m sq ft of retail and leisure space. The development forms part of the Croydon Opportunity Area scheme, an initiative targeted at repositioning the Town towards a cultural and tech hub. The scheme includes major developments such as Croydon Boxpark and Ruskin Square, a mixed use development actioned under the Croydon Vision 2020 and the imminent construction of Westfield Croydon. The new Westfield shopping centre scheme is due to start works in Q1 2020 and represents one of the largest regeneration projects within Europe, with £1.5 billion invested into the Unibail-Rodamco-Westfield and Hammerson development.



CENTRE OF CROYDONConveniently located in Croydon Town Centre adjacent to the Croydon Conference Centre, Croydon’s Shopping Centre and main retailing pitch.

CROYDON REGENERATIONCroydon is one of Europe’s largest regeneration projects at an estimated cost of £5.25 billion.

GRANT CENTRE’S PARKINGThe car park is connected by way of a walkway to the Grant Centre, offering a 20% discount to customers using Nuffield Health Centre and Vue Cinema.

CROYDON MARKETThe car park is directly linked with Croydon’s historic seven days a week market, with part of the basement used for loading.

WELL CONNECTEDThe A232 is less than a minute’s drive south, providing direct access to the M25 via Junction 4.

WESTFIELD CROYDONWestfield’s £1.5 billion Croydon development is located less than 500 m from Q-Park, providing over 500,000 sq ft of new retailing space.

DRIVER DEMAND



CAR PARK INVESTMENT MARKET

The recent sales of long dated RPI linked Car Park Investments have proved particularly popular to investors as they provide an attractive secured income stream with excellent rental growth and strong underlying fundamentals. The supply of car parks in general has contracted of late as they have been redeveloped to other more valuable residential/commercial uses. Local Authorities have also attempted to restrict supply to town and city centre car parking in the backdrop of an anticipated decrease in car ownership.

Investment in the car park sector has been strong as demonstrated by the recent highlighted sales below:

ADDRESS TOWN DATE TENANT NO. OF SPACE RENT RENT PER SPACE UNEXPIRED LEASE TERM PRICE NIY (%)

Sovereign Square Leeds Jun-19 Q-Park 500 £900,000 £1,800.00 35 years £19,840,000 4.25%

Mount Street Nottingham Aug-18 NCP 514 £931,366 £1,812.00 19 years £22,450,000 4.20%

Montgomery Street Belfast Jul-18 NCP 472 £821,568 £1,740.61 19 years £18,393,915 4.18%

Dublin Road Belfast Jul-18 NCP 547 £514,272 £940.17 19 years £9,895,078 4.87%

Vernon Street, Moorfields Liverpool May-18 NCP 702 £798,149 £1,136.96 29 years £14,500,000 3.50%

1-21 The Martlets Crawley Apr-18 NCP 60 £80,000 £1,333.33 19 years £1,675,000 4.50%

New Southgate Bradford May-17 NCP 430 £260,000 £604.65 21 years £5,000,000 4.88%

Mitchell Street Glasgow Mar-17 NCP 220 £482,566 £2,193.48 20 years £10,600,00 4.40%



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. Design CommandD www.commandHQ.co.uk 06.19

Jeremy Hodgson020 7543 [email protected]

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

Liam Stray020 7543 [email protected]

PROPOSALOffers sought in excess of £10,790,000 (Ten Million Seven Hundred and Ninety Thousand Pounds) subject to contract and exclusive of VAT. This reflects a net initial yield of 4.50%, after allowing for purchaser’s costs of 6.70%.

allsop.co.uk

TENURE

Freehold.

VAT

The property has been elected for VAT.

DATAROOM

For access to the Allsop dataroom please use the following link: https://datarooms.allsop.co.uk/register/Q-ParkCroydon

Year Rent NIY2020 £533,540 4.63%

2021 £549,546 4.77%

2022 £566,033 4.92%

2023 £583,014 5.06%

2024 £600,504 5.22%

Year Rent NIY2025 £618,519 5.37%

2026 £637,075 5.53%

2027 £656,187 5.70%

2028 £675,873 5.87%

2029 £696,149 6.05%

RUNNING YIELD ASSUMING AN ANNUAL AVERAGE RPI LINKED UPLIFT OF 3%, COMPLETION IN 2019 AND A PURCHASE AT 4.5% NIY.

allsop.co.uk

Documents

Q-PARK CROYDON