prime stockley park office investment 4 longwalk road, stockley park, heathrow

DTZ, 48 Warwick Street, London, W1B 5NL

Prime Stockley Park Office Investment Let to BP Properties Limited

4 Longwalk Road, Stockley Park, Heathrow

November 2009

Private and Confidential Subject to Contract


Investment Considerations

Modern office building built on Stockley Park, one of the UK’s and Europe’s premier office parks.

High specification offices comprehensively refurbished in 2007, including air conditioning,

suspended ceilings, recessed lighting and fully accessible raised floors.

Deck car park constructed in 1995 contributing to a total of 353 car parking spaces, providing an excellent car parking ratio of 1:19 per sq m (1:203 per sq ft).

Total accommodation of 6,648 sq m (71,558 sq ft) arranged over three floors.

Let to BP Properties Limited assigned from B.P. Exploration Operating Company Limited.

Twenty-five year lease expiring 24 December 2014 with a rent review on 25

th December

2009.

Current rent passing of £2.013 million per annum, reflecting £292.29 per sq m (£28.26 per sq ft) overall, assuming half rate on the reception area.

Freehold interest.

Offers are sought in excess of £19,050,000 (Nineteen Million, Fifty Thousand Pounds)

subject to contract and exclusive of VAT. A purchase at this level reflects a Net Initial Yield of 10% after allowing for standard Purchaser’s costs of 5.725%. This equates to a capital value of £266 per sq ft.

For further information please contact: David Haynes DTZ 48 Warwick Street London W1B 5NL Tel: +44 (0)20 3296 2097 Fax: +44 (0)20 3296 3300 [email protected]

Charles Howard DTZ 48 Warwick Street London W1B 5NL Tel: +44 (0)20 3296 2098 Fax: +44 (0)20 3296 3300 [email protected]

Simeon Cohen DTZ 48 Warwick Street London W1B 5NL Tel: +44 (0)20 3296 2118 Fax: +44 (0)20 3296 3300 [email protected]

mailto:[email protected]




Location Stockley Park benefits from an unrivalled location being 3.4 km (2 miles) north of Heathrow Airport and 24 km (15 miles) west of Central London. The Park’s proximity to both Central London and Heathrow Airport, and its ease of access to the rest of the UK has attracted a diverse range of major national and international corporations such as Adobe, Apple, Canon, Marks and Spencer and Sharp Electronics among others. The Park benefits from the following extensive transport communications: Road Stockley Park is located 1.6 km (1 mile) from Junction 4 of the M4 Motorway and 3.2 km (2 miles) from Junction 15 of the M25 Motorway at the M4/M25 interchange. Access to Central London is via either the A4 or M4, which also leads to the South West. The M25 provides links to the national motorway network. Air Stockley Park is a five minute drive from Heathrow Airport, considered the aviation hub of the world. The airport handles 68 million passengers per year with over 90 airlines flying to over 180 destinations. Heathrow has recently benefitted from the new Terminal 5 which has capacity for 35 million passengers per year. Plans are underway for the provision of a third runway to which the government lent its support at the beginning of the year. Public Transport Stockley Park can be accessed from Central London in approximately 25 minutes with regular services running from Paddington Station to Hayes & Harlington and West Drayton rail stations, in addition to Heathrow Airport. The H50 and U1 Stockley Park link buses offer regular services from Hayes & Harlington and West Drayton stations, with the A10 serving Heathrow Airport. An express link bus additionally serves the Park via Uxbridge Underground Station and Heathrow Airport. Stockley Park Stockley Park is a joint venture between Kajima, PRUPIM and Aldersgate, and has been constructed over a number of phases since 1986. The Park has become well established as one of Europe’s premier business parks, extending to over 162 hectares (400 acres), of which the Business Park itself comprises 57 hectares (148 acres). The Arena provides onsite retail facilities including: Subway JD Wetherspoon Public House Virgin Active Gym Hair Salon Greggs Alexander’s Wine Bar Wellness Centre Newsagent The above are in addition to a Nursery and 18 hole golf course. The Park currently provides approximately 185,800 sq m (2 million sq ft) of headquarter style commercial accommodation. Outline planning application has been submitted for additional facilities which include:

25,000 sq m (269,000 sq ft) of offices 18,135 sq m (195,200 sq ft) data centre 450 room hotel Leisure facilities 3,500 sq m (37,675 sq ft) mixed use building for retail, catering facilities, and

other uses


4 Longwalk Road occupies a prominent position close to the main entrance opposite one of the Park’s numerous lakes. The Arena is a short walk away. Further information is available from the Park’s website www.stockleypark.co.uk. Description The property comprises a modern 1990 built three storey office building which was comprehensively refurbished by the tenant in 2007. Internally the building provides flexible office accommodation over regular floorplates, arranged in two wings set around a central atrium. The building benefits from a triple height entrance area and feature glass frontage to the central stair core in addition to the following high base specification:

VAV air conditioning Fully accessible raised floors with minimum 115mm void Suspended ceilings Recessed modular lighting 2 x 16 person, 1,250 kg passenger lifts 1 x 3,875 kg goods lift

The tenant has infilled the first floor atrium which comprises 102.25 sq m (1,101 sq ft) to provide a restaurant and seating area which is to be disregarded on review. The landlord can require its removal at lease expiry. There is a minimum finished floor to ceiling height of 2.65 metres. All floors benefit from male and female toilet facilities. The refurbishment works undertaken by the tenant in 2007 included the following:

Works to the roof, atrium, external surfacing and car park Facade brise soleil structure cleaned Chiller unit replaced

New floor surfaces and replacement ceilings and lighting where necessary Offices, common parts and reception area refurbished and redecorated Toilets replaced and shower rooms created DDA compliant lift refurbishment Tenant kitchen and server facilities part replaced and part refurbished

The building benefits from 353 car parking spaces, equating to 1:19 per sq m (1:203 per sq ft) arranged over surface level and a deck to the rear. This is better than the car parking ratios of the vast majority of other buildings on the Park.

http://www.stockleypark.co.uk/


Accommodation DTZ measured the property in accordance with the RICS Code of Measuring Practice (6

th Edition)

which provides the following Net Internal Areas:

Floor Sq M Sq Ft

Reception 59.76 643

Ground 2,252.19 24,242

First 2,168.55 23,342

Second 2,167.48 23,331

Total 6,647.98 71,558

The above areas include storage accommodation of 11.10 sq m (119 sq ft) on the first floor and 11.22 sq m (121 sq ft) on the second floor. These areas in addition to those comprising office accommodation have been calculated on the basis of the lease plans relating to the areas to be included at rent review.

Site Area The property occupies a site area of approximately 1.25 hectares (3.10 acres). Tenure The property is held freehold. Estate Rentcharge An estate rentcharge is payable to Stockley Park Management Company Ltd which is recovered from the tenant. The rentcharge covers the upkeep of landscaping, common facilities and roadways, and the provision of Park security. The property’s estate rentcharge budget for the year ending May 2010 is £109,677. This equates to £16.50 per sq m (£1.53 per sq ft). The property accounts for 6.996% of the total estate rentcharge. Tenancy The property is let in its entirety to BP Properties Limited on a 25 year lease expiring 24 December 2014. BP Properties Limited took assignment of the lease in August 1995 from B.P. Exploration Operating Company Limited, who remain liable for the lease under privity of contract. The current rent passing of £2,013,000 per annum exclusive, which equates to £292.29 per sq m (£28.26 per sq ft) assuming half rate on the reception area, is subject to the final 5 yearly upward only rent review of the term on 25 December 2009. The rent is to be reviewed to the full yearly rack rental value on the basis of a 15 year hypothetical lease term and assuming the provision of 353 car parking spaces. Licences for Alterations are in place for the extensive refurbishment and tenant works which have been undertaken at the property, the majority of which are not to be rentalised at review. A copy of the Licences are available on request. Car Parking The building originally provided 257 car parking spaces. The landlord provided a capital contribution to the tenant in 1995 for the provision of a multi storey car park and extension to the surface car parking provision increasing the number of spaces to 353.


The additional car parking is to be included at the forthcoming review. The landlord can require the tenant to remove the multi storey car park upon lease expiry pursuant to certain conditions. Further information is available upon request. Covenants BP Properties Limited and B.P. Exploration Operating Company Limited both ultimately comprise part of BP Plc. BP are one of the World’s biggest companies, whose principal activities include the sourcing and extraction of oil and gas, the manufacture and sale of fuels and products through oil refinement, and a low carbon energy provider and investor. BP has active exploration and production in 29 countries, with 22,600 service stations worldwide, in addition to holding interests in 17 refineries. Now in its centenary year, BP employs a workforce of approximately 92,000 staff and operates six brands in total being BP, Castrol, Arco, Aral, am/pm and Wild Bean Cafe. The company’s products and services are available in over 100 countries. Further information is available at their website www.bp.com. BP recently released their Quarter 3 2009 Group results which were ahead of the City’s expectations. Total revenues and other income for the Group totalled $67,856 million, an increase of 20% on Quarter 2 results, resulting in profit before tax of $7,590 million a 12% increase. Dun & Bradstreet have ascribed BP Properties Limited a rating of 5A2 reflecting a lower than

average risk of business failure.

Three years financial information is set out below:

31 Dec 08 (000’s)

31 Dec 07 (000’s)

31 Dec 06 (000’s)

Sales Turnover £10,678 £8,421 £8,567

Profit / (Loss) before taxes (£3,313) £2,164 (£38,794)

Tangible Net Worth £35,310 £38,623 £36,459

Net Current Assets (Liabilities) £26,619 £26,978 £31,030

Dun & Bradstreet have ascribed B.P. Exploration Operating Company Limited a rating of 5A1 reflecting a minimum risk of business failure. Three years financial information is set out below:

31 Dec 08 (000’s)

31 Dec 07 (000’s)

31 Dec 06 (000’s)

Sales Turnover £6,463,163 £4,899,849 £5,621,639

Profit / (Loss) before taxes £5,531,643 £2,819,908 £5,739,461

Tangible Net Worth £9,027,365 £9,044,980 £10,932,507

Net Current Assets (Liabilities) (£8,861,912) (£7,678,258) (£5,270,933)

Market Commentary Stockley Park has benefited from consistent increases in takeup levels over the past four years steadily reducing availability on the Park. Current availability stands at approximately 17% and there are only two buildings in excess of 50,000 sq ft available, being 1 Longwalk totalling 6,405 sq m (68,944 sq ft) and 5 Longwalk totalling 10,639 sq m (114,518 sq ft). The remainder of available accommodation comprises space current tenants are seeking to sublet, and is in the main unrefurbished. Approximately 105,000 sq ft has transacted on the Park for the year to date, for which the subletting by Centrica to Canon comprised the majority. Key recent lettings are as follows:

http://www.bp.com/


Building Area Sq M

(Sq Ft) Tenant

Rent £ Per Sq Ft

Lease Term Date

3 The Square 8,645

(93,055) Canon £29.00 5 Years May 2009

3 Furzeground 511

(5,449) Otsuka £24.00 10 Years April 2009

4 The Square 557

(6,000) Almirall £29.45 6 Years January 2009

3 Roundwood 518

(5,579) Activision £27.00 7 Years August 2008

4 The Square 2,011

(21,651) Rackspace £29.45 6 Years April 2008

VAT

The property has been elected for VAT purposes and VAT will therefore be applicable to the sale. It is intended that the transaction is treated as a Transfer of a Going Concern (TOGC). Proposal Offers are sought in excess of £19,050,000 (Nineteen Million, Fifty Thousand Pounds) subject to contract and exclusive of VAT. A purchase at this level reflects a Net Initial Yield of 10% after allowing for standard Purchaser’s costs of 5.725%. This equates to a capital value of £266 per sq ft. Further Information For further information or to arrange a viewing please contact: David Haynes DTZ 48 Warwick Street London W1B 5NL Tel: +44 (0)20 3296 2097 Fax: +44 (0)20 3296 3300 [email protected]

Charles Howard DTZ 48 Warwick Street London W1B 5NL Tel: +44 (0)20 3296 2098 Fax: +44 (0)20 3296 3300 [email protected]

Simeon Cohen DTZ 48 Warwick Street London W1B 5NL Tel: +44 (0)20 3296 2118 Fax: +44 (0)20 3296 3300 [email protected]

Misrepresentation Clause DTZ for themselves and for the vendors of this property for whom they act, give notice that:

i. These particulars are a general outline only, for the guidance of prospective purchasers, and do not constitute the whole or any part of an offer or contract;

ii. DTZ cannot guarantee the accuracy of any description, dimensions, references to condition, necessary permissions for use and occupation and other details contained herein and prospective purchasers must not rely on them as statements of fact or representations and must satisfy themselves as to their accuracy.

iii. Rents quoted in these particulars may be subject to VAT in addition. iv. DTZ will not be liable, in negligence or otherwise, for any loss arising from the use of these

particulars; and v. The reference to any plant, machinery, equipment, services, fixtures or fittings 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 condition. Prospective purchasers should satisfy themselves as to the fitness of such items for their requirements.

vi. No employee of DTZ has any authority to make or give any representation or warranty or entire into any contract whatever in relation to the Property.

November 2009




Post

El Sub Sta

Ramp

Stockley Park

Pond

FB

El SubSta

Car Park

4

3

0m 25m 50m 75m

4 Longwalk RoadStockley Park

Heathrow

For Indication Purposes Only

© Crown Copyright 2009. All rights reserved. Licence number 100020449. Plotted Scale - 1:1250

prime stockley park office investment 4 longwalk road, stockley park, heathrow

Documents