RBS HEMEL HEMPSTEAD 89 THE MARLOWES, HP1 1XY

ON BEHALF OF

RBS HEMEL HEMPSTEAD 89 THE MARLOWES, HP1 1XYFREEHOLD BANK & OFFICE INVESTMENT WITH DEVELOPMENT POTENTIAL

Site outline for indicative purposes only

Investment Summary

Freehold investment in an affluent London commuter town

Flagship banking premises with large car park to the rear

9,782 sq ft (908.8 sq m)

Site area of 0.38 acres (0.13 ha) with a low site coverage of 30%

Let entirely to the strong covenant of The Royal Bank of Scotland plc for a further 4 years

Recent lease renewal demonstrating the tenant’s commitment to the property

Well specified accommodation providing ground floor banking hall and two upper floors of office accommodation

Current passing rent of £145,000 pa (£14.82 per sq ft)

The property offers a number of asset management opportunities including converting the upper parts to residential (via permitted development) and developing the site to the rear (subject to planning)

Offers are sought in excess of £1,820,000 (One Million Eight Hundred and Twenty Thousand Pounds), subject to contract and exclusive of VAT.

A purchase at this level reflects a net initial yield of 7.5% assuming purchaser’s costs of 6.22% and a low capital value of £186 psf.

RBS 89 THE MARLOWES, HEMEL HEMPSTEAD, HP1 1XY FREEHOLD BANK & OFFICE INVESTMENT WITH DEVELOPMENT POTENTIAL

Heathrow

Gatwick

StanstedLuton

J27J25J23

J21

J20

J19

J16

J15

J12

J10

J7J8

J9

J6

J5

J3

J2

J29

J28

A127

A505

A418

A602

A120

A131A130

A138

A130

A130

A130

A243

A217

A232

A331

A322

A316

A309

A264

A229

A404

A355

A404

A413

A4010

A414

A414

A414

A5

A1

A3

A2

A41

A40

A31

A24

A24

A24

A23

A21

A20

A20

A12

A10

A10

A10

A12

A13

A21

A26

A26A21

A22

A22

A23

A23

M1

M4

M3M2

M25

M10

M40

M25

M25

M23

M26

M25 M20

M20

M25

M11

M11

M25

A1(M)

Harlow

Potters Bar

Luton

Aylesbury

Stevenage

LONDON

Hatfield

Dartford

Bromley

Gravesend

Croydon

Biggin Hill

Romford

Sevenoaks

RoyalTunbridge

Wells

Maidstone

Snodland

East GrinsteadCrawley

Horley

Horsham

HaywardsHeath

RedhillOxted

DorkingGuildford

Staines

Slough

St Albans

HighWycombe

Watford

WembleyUxbridge

RuislipHarrow

HollowayStratford

Enfield

Barnet

Windsor

Woking

Sutton

Clapham

Weybridge

Richmond

Benfleet

Brentwood

Chelmsford

Basildon

HEMEL HEMPSTEAD

HEMEL HEMPSTEAD

LAWN

LANE

A41

4 TW

O W

ATER

S RD

A4146 STATION RO A D

A414 ST ALBANS ROAD

A4146

LE

IGH

TO

N B

UZ

ZR

D R

OA

D

A4251 LONDON ROAD

B487

ST JOHN’S ROAD

WARNERS END ROAD

PARK LANE

MARLOW

ES

WOLSEY ROAD

MARL O WES

WATERHOUSE ST

DACORUM W

AY

ALEXANDRA RD

MIDLA N D ROAD ADEYFIELD ROAD

ALEXANDRA RD

MAY

FLOWER AVE

HILLFIELD ROAD

Hemel Hempstead

Keen Fields

Adeyfield Adventure Playground

Heath Park

HEMEL HEMPSTEAD

HOSPITALTHE MARLOWES SHOPPING

CENTRE

Location

Hemel Hempstead is an affluent London commuter town located in the Chiltern Hills. The town is located within close proximity to the North West quadrant of the M25 approximately 5.0 miles (8 km) north west of St Albans, 7.5 miles (12 km) north of Watford and 9.0 miles (14.5 km) south of Luton. Central London is located approximately 22.3 miles (36 km) to the South East.

The area benefits from excellent communications with Hemel Hempstead being located on the London Midland train line which provides regular services into Central London.

Road communications are good with the town being located 1.5 miles (2 km) from junction 1 of the M1 Motorway and 2.5 miles (4 km) from junctions 20/21 of the M25 Motorway.

London Luton Airport (currently ranked as the fifth busiest airport in the UK) is situated approximately 11.6 miles (19 km) to the north providing flights to over 100 destinations with over 12.2 million people passing through the airport in 2015.

Demographics

Hemel Hempstead is a thriving town benefiting from its location within a commutable distance of London. The town has an estimated shopping population of 107,000 with 181,000 living within the primary catchment area.

Hemel Hempstead has one of the most affluent catchment populations in the UK, ranked 24th of the PROMIS centres. The Census in 2011 showed that the Hemel Hempstead area contained a significantly above average proportion of adults of working age categorised within the most affluent AB social group and the per capita retail spending levels are above the PROMIS average.

Hemel Hempstead Travel Times

BY TRAIN

Watford Junction 7 minutes

London Euston 26 minutes

Milton Keynes 33 minutes

Clapham Junction 49 minutes

BY CAR

Luton 17 minutes

Milton Keynes 39 minutes

London 55 minutes

Oxford 72 minutes

AIRPORT DRIVE TIMES

London Luton 19 minutes

London Heathrow 33 minutes

London Stansted 49 minutes

London Gatwick 70 minutes


RBS 89 THE MARLOWES, HEMEL HEMPSTEAD, HP1 1XY

Situation

The property is situated on the eastern side of The Marlowes close to its junction with Hillfield Road. The Marlowes is Hemel Hempstead’s principal retailing thoroughfare.

The property is adjacent to a multi-storey NCP car park and there is a Asda superstore behind. ‘The Forum’ development is currently under construction directly opposite the property.

Description

The property comprises a ground floor banking hall with offices on the first and second floors. RBS are in occupation of the ground floor and have limited occupation of the offices on the first floor. The accommodation on the second floor is currently not used by the tenant.

There is a separate access to the first and second floor office accommodation potentially allowing for multiple occupiers within the building. There is further access to the first and second floor via a fire escape to the rear of the property.

Site Area

The property has a total site area of 0.38 acres (0.13 ha).

Covenant

The Royal Bank of Scotland plc is rated 5A1 by Dun and Bradstreet. The business produced the following headline accounts over the last 3 years:

28

33

27

35 37

PH

to30

34

TCBs

Tank

SquareThe

KIN

MAR

LOW

ES

Sta

El Sub Sta

Shops(below

)

NCPMultistorey Car Park

‘The Forum’Development

ASDA

Shelter

15040 41

45

4246

24 21

111

2

5

12

15

616

717

818

130

138

146

148

148

107

5759

6365

6769

71b71a71

73

85

13

152

140

142

3

136

132

134

7 7a

Shelters

AtlanticBusinessCentre

97 to 99

105

93

HILLFIELD ROAD

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

Tenure

Freehold

Tenancy

The property is let to the Royal Bank of Scotland plc for a term of 5 years from 15 June 2015 with a current passing rent of £145,000 pa (£14.82 per sq ft).

Accommodation

The property has been measured in accordance with the RICS Code of Measuring Practice (6th Edition) and International Property Measurement Standards, (1st Edition) and provides the following floor areas:

Net Internal Area IPMS 3

Floor Use Sq Ft Sq M Sq Ft Sq M

Ground Banking Hall 2,039 189.4 2,039 189.4

1st Office 3,727 346.3 3,804 353.4

2nd Office 4,016 373.1 4,073 378.4

Total 9,782 908.8 9,916 921.2

31/12/2012 (000’s)

31/12/2013 (000’s)

31/12/2014 (000’s)

Turnover £26,375,000 £26,495,000 £18,315,000

Pre-Tax Profit -£3,412,000 -£6,761,000 £2,403,000

Total Net Worth £46,885,000 £36,434,000 £62,332,700

FREEHOLD BANK & OFFICE INVESTMENT WITH DEVELOPMENT POTENTIAL

Site outline for indicative purposes only

Office Market in Hemel Hempstead

Hemel Hempstead has a built stock of approximately 3.1 million sq ft. Total availability currently stands at 7.1% which is in line with similar office markets across the South East. Hemel Hempstead suffers from a severe lack of Grade A accommodation, mainly due to a shortage of recent developments resulting in no new office space. Take up in 2015 was estimated to be 102,000 sq ft.

Headline Grade A rents are currently at £20.50 psf which is on par with the record rents recorded pre 2007. Grade B office accommodation rents are now approximately £15 per sq ft .

Hemel Hempstead – An Evolution

Branded as “Hemel Evolution” over £30 million is being invested into the regeneration of the town centre. Work has already started including significant improvements to the pedestrianised shopping areas and a new bus interchange has been implemented. The original Marlowes zone, within which the subject property is located, is subject to redevelopment with The Forum development currently under construction. This development is a joint venture between the council, Endurance Estates and R G Carter and will house the Dacorum Borough Council and include a new county library. ‘The Forum’ will be surrounded by more than 200 new homes.


Retailing in Hemel Hempstead

Hemel Hempstead town centre has a strong offering of national multiples and independent retailers with town centre retail floor space estimated at 0.76 million sq ft. The town’s main retail offer runs north to south along the pedestrianised section of The Marlowes which is where the two purpose-built managed shopping centres – The Marlowes Shopping Centre and Riverside Shopping Centre are located.

This pitch is directly south of the subject property, which is located on the non-pedestrianised stretch of the Marlowes. Nearby traders are typically secondary in nature however the council’s development of ‘The Forum’ to the north of the property will improve the immediate surroundings.

DEVELOPMENT POTENTIAL

The location and the layout of the property offers potential for alternative uses including care home and residential. The multiple access points to the property make the property viable for permitted development. The site at the rear could also be further developed subject to planning.

Comparable flats in the nearby area have been achieving £450 psf.

On behalf of

EPC

The property has been rated Grade C (71). The EPC is available on request.

VAT

The property is elected for VAT and it is anticipated that the transaction will be treated as transfer of a going concern (TOGC).

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

www.allsop.co.uk

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 06.16

Dale Johnstone020 7543 [email protected]

Jonathan Butcher020 7543 [email protected]

Roseanna Eden020 7543 [email protected]

Proposal

Offers are sought in excess of £1,820,000 (One Million Eight Hundred and Twenty Thousand Pounds), subject to contract and exclusive of VAT. A purchase at this level reflects a net initial yield of 7.5% assuming purchaser’s costs of 6.22% and a low capital value of £186 psf.

Documents

RBS HEMEL HEMPSTEAD 89 THE MARLOWES, HP1 1XY