Thames Valley Park, Reading

Exceptional redevelopment opportunity on one of the premier business parks in the South East

INVESTMENTSUMMARY

32

• Two vacant headquarter office buildings totalling 155,565 sq ft (NIA) with a further circa 4 acre site offering exciting development potential.

• Thames Valley Park is internationally recognised as one of Reading’s best-located and most mature business parks.

• Opportunity to refurbish buildings 4 & 5 and develop out plot 6 to create a market leading office campus to provide high quality space to the Reading market that has very favourable supply/ demand dynamics.

• Attractive underlying residual alternative use value (subject to planning).

• Thames Valley Park is home to a broad range of global and domestic occupiers.

• Reading is the commercial business capital of the Thames Valley and the largest town in the south east outside of Central London.

• The University of Reading is in the world’s top 1%. Over 42% of the local population have been educated to degree level or above, one of the UK’s highest figures, and most graduates stay locally to pursue careers.

• Freehold.

• Vacant Possession will be provided on completion of the sale.

• Quoting in excess of £26,500,000 (Twenty Six Million Five Hundred Thousand Pounds) for the freehold interest reflecting an attractive low capital value of £144 per sq ft on the offices and £1m per acre for Plot 6.

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CREATE ANINSPIRING

ENVIRONMENT

Exciting opportunity to refurbish buildings 4, 5 and build out Plot 6 to create a market leading office campus providing outstanding office space to the Reading market that currently has very favourable supply/demand dynamics.

Building 4, 5 & Plot 6, Thames Valley Park, Reading, RG6 1WG 54

Computer generated image showing enhancement to the Building 4 Pavilion café.

Thames Valley Park, Reading

29

MAKE ALASTING

IMPRESSION

76

Enhance Buildings 4 & 5 to create inspiring public realm, seamlessly linking the office buildings with the surrounding park landscape, with the opportunity of promoting a new green agenda. Computer generated image of Building 4 atrium.

32

Computer generated image of Building 5 Atrium.

RELAXAND

UNWIND

Opportunity for Plot 6 to be developed as a ‘Market Square’ to host food markets, sports activities and outdoor events.

Reinforcing the green tech style and biophilic architecture, links between the building entrance and existing parkland are enhanced with the creation of direct routeways and improved public realm. The local ‘village green’ provides external seating, outdoor gym and views of the lake.

98

MARKETSQUARE

VILLAGEGREEN

PAVILIONCAFÉ

GREENLINK

GREENLINK

PLOT 6

BUILDING 5

BUILDING 4

1110

Building 4

1312

Building 5

Reading town centre is easily accessible with a free TVP bus service for occupiers, linking Reading station directly to the Park

MAIDENHEAD BURNHAM LANGLEY SOUTHALL WEST EALINGWESTDRAYTON

ACTONMAINLINE

HEATHROWAIRPORT

BOND STREET FARRINGDON WHITECHAPEL

HAYES &HARLINGTON

EALING BROADWAY

TOTTENHAM COURT ROAD

LIVERPOOLSTREET

TAPLOW SLOUGH IVER HANWELL

PADDINGTON

STRATFORD

CANARYWHARFDLR

READING

ELIZABETH LINE (DUE 2021)

TRAVEL TIME (MINS) FROMREADING

HEATHROW CONNECT

12 16

TWYFORD

5 18 22 25 27 29

6

10

10

36

3

39

6

41

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42

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47 50 54 55 59 61 64

69

68

21

38 10

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WRAtH (Western Rail Access to Heathrow) A proposed new direct rail link from the West to London Heathrow that will improve journeys to Britain’s busiest airport and help increase economic productivity in the Thames Valley. Once complete in 2022, the journey, to Heathrow will be approximately 26 minutes.

Maidenhead 12 minutes

Bond Street 54 minutes

Farringdon 59 minutes

Road

M4 Junction 10 10.5 miles

M4 Junction 11 5.5 miles

Maidenhead 14.5 miles

Central London 40 miles

Air

London Heathrow 26.8 miles

Gatwick 55.2 miles

Bristol 93 miles

MAIDENHEAD BURNHAM LANGLEY SOUTHALL WEST EALINGWESTDRAYTON

ACTONMAINLINE

HEATHROWAIRPORT

BOND STREET FARRINGDON WHITECHAPEL

HAYES &HARLINGTON

EALING BROADWAY

TOTTENHAM COURT ROAD

LIVERPOOLSTREET

TAPLOW SLOUGH IVER HANWELL

PADDINGTON

STRATFORD

CANARYWHARFDLR

READING

ELIZABETH LINE (DUE 2021)

TRAVEL TIME (MINS) FROMREADING

HEATHROW CONNECT

12 16

TWYFORD

5 18 22 25 27 29

6

10

10

36

3

39

6

41

8

42

11

47 50 54 55 59 61 64

69

68

21

38 10

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Elizabeth Line (From 2021)The Elizabeth Line – A multi billion pound infrastructure project covering 73 miles that links Reading, Berkshire to Shenfield, Essex and will be able to reach London Paddington, Bond Street, Tottenham Court Road, Farringdon, Liverpool Street and Canary Wharf without changing lines. The Elizabeth Line programme will add an estimated £42bn to the economy of the UK, dramatically improving transport links in the South East and London

This premier business campus is prominently positioned on Thames Valley Park, adjacent to the River Thames and on the eastern edge of Reading in the affluent surrounding area of Berkshire. Thames Valley Park is 1.6 miles East of Reading town centre and accessed via the A3290/A329(M) that connects to Junction 10 of the M4 Motorway.

The Campus has excellent road and rail connectivity and a new Park & Ride service, running from Q4 2019 from the entrance of the Park to Reading town centre and train station.

Reading train station offers fast connections, with rail travel to London’s Paddington station in 25 minutes. Connections are set to improve with the completion of the Elizabeth Line in 2021, which will access Central London directly.

Train (From Reading Station)

Slough 13 minutes

London Paddington 26 minutes

Bristol Temple Meads 75 minutes

BAT

H R

D

A4

A329

THAMES

DRIVE

LONDON ROAD A4

CH

UR

CH R

OA

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PITT

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VALLEYPK

NATURERESERVE

READING TOWN CENTRE

M4JUNCTION

10

COUNTRYPARK

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T

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ME

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NATURERESERVE

THAMES VALLEY PARKBG CAMPUS

VASTERN RD

BERKELEY AVENUE A4 PELL STREET

LONDON ROAD A

4

GEO

RGE

STR

EET

BROAD STREET KING'S ROAD

OXFORD ROAD A329

RD

FORBURY

LON

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CAVERSHAM

A3

29

QUEEN'S RD

READINGWEST

M4JUNCTION 12

ROAD WOKINGHAM ROAD A329

KING'S

ORACLECAMPUS

M4JUNCTION

11

READING

Reading is the commercial business capital of the Thames Valley and the largest town in the south east outside of Central London. The town has easy access to the M4 motorway at Junctions 10, 11 and 12 that provides connections to the rest of the UK and Heathrow Airport, the busiest airport in Europe and the world’s third busiest airport with over 475,000 flights a year.

Reading is home to a thriving business community and has an affluent, educated and skilled local workforce. Reading University is ranked in the top 1% of Universities in the world with c. 19,000 students from over 150 different countries.

1514

The campus has unrivaled accessibility by road, rail and air.

10

11

6

9

7

12

15

14

16

89/

M40

M4

M4

4

4a

M3

8

M25

M23

A3

7

6

3

MAIDENHEAD

CAMBERLEY

WINDSOR

STAINES

HARROW

CRAWLEY

EPSOM

SLOUGH

WEYBRIDGE

WOKING

FARNBOROUGH

GUILDFORD REIGATE

READING

WIMBLEDON

RICHMOND

KINGSTON

A3

A316

A23

A24

A24

A2310

1

HIGH WYCOMBE

4

GATWICK

12

5

M25

HAMMERSMITHCHISWICKHAYES

A40

A4

9

BRACKNELL

CENTRALLONDON

1

13

11

A30

A331

A322

HEATHROW

4

1

A408

UXBRIDGE

THAMES VALLEY PARK

Source: Transport for London / Elizabeth Line

Source: Google

IMPRESSIVECONNECTIONS

REGUS

ORACLE CAMPUS

SANOFI

OPEN TEXT

DAVID LLOYDFITNESS

CRECHECOMPUTER CENTRE

WOKINGHAMWATERSIDE

CENTRE

BENUGOCAFE

1716

80 acres of park, water meadows and nature

reserve along the River Thames

22 acre commercial business park comprising

19 office buildings and approximately

1.8 million sq ft of space

World renowned and diverse occupier line up

highlighting the attractions of TVP

Existing amenity includes David Lloyd Leisure

Centre, Benugo’s, Nursery and Creche, a weekly

street food market and Wokingham Waterside

Centre

Thames Valley Park is home to a tenant mix comprising an array of international brands attracting a truly global investor audience.

THAMESVALLEY

PARK

Thames Valley Park is a high-tech business park totalling 1.8 million sq ft that was originally developed by Argent in the late 1990’s in phases and is home to a number of key global businesses, namely Oracle, Sanofi, Hewlett Packard, Jelf, Computacentre, Forcepoint and Open Text.

Current availability on Thames Valley Park stands at 324,367 sq ft (over 10,000 sq t) of which the majority is across 5 buildings, namely Mistral, The BG Campus (Faraday, Murdoch and Hutton) and TVP1. TVP1 is currently being refurbished but the remaining is lower quality space.

Take up in the last 12 months’ stands at 100,605 sq ft which has reinvigorated activity on Thames Valley Park. Sanofi recently leased the whole of the newly refurbished, 410 Thames Valley Park owned by RLAM at £31.50 psf on a 10 year lease with 24 months’ rent free. Spear Street Capital acquired TVP 1&2 from BMO and they let 28,000 sq ft to Hewlett Packard at £30.00 psf on a 10 year lease, with a 5th year break with 18 months’ rent free.

HEWLETT PACKARD

MICROSOFT

Buildings 4 & 5 were developed in 2003 and 2007 respectively, and combined with Plot 6 they occupy a prominent location within the eastern part of Thames Valley Park.

The two office buildings comprise a total of 155,565 sq ft NIA. Plot 6 is an undeveloped c.4 acre site with substantial development potential (Subject to Planning).

They are designed with a large central atrium, with a U shaped floor plate, and basement grade + car park to the rear.

Both buildings will be offered with the benefit of vacant possession upon sale.

Car Parking

Building 4 benefits from 270 car parking spaces, providing a ratio of 1:257 sq ft on NIA office accommodation.

Building 5 benefits from 272 car parking spaces, providing a ratio of 1:269 sq ft on NIA office accommodation.

Plot 6 currently has a temporary car park providing an additional 98 car parking spaces.

This provides a total of 640 car parking spaces.

The properties have been measured by Plowman Craven in accordance with the RICS Code of Measuring Practice (Sixth Edition) and provides the following approximate Net Internal Areas;

Floor NIA (Sq Ft) NIA (Sq M)

3rd 15,462 1,436.50

2nd 16,986 1,578.10

1st 16,964 1,576.00

Ground Office 16,048 1,490.90

Café 1,355 124.00

Atrium 2,345 217.90

Basement Storage 210 19.50

Total 69,370 6,442.90

3rd 18,059 1,677.70

2nd 19,139 1,778.10

1st 19,283 1,791.50

Ground 16,773 1,558.30

Reception 3,239 300.90

Atrium 2,477 230.10

Ancillary 332 30.80

Basement 2,371 220.30

Gym 4,542 422.00

Total 86,215 8,009.70

Title Number: BK262386. We understand the whole site area provides: 11.47 acres, 4.64 hectares.

Source: Promap. Not to Scale. For identification purposes only.

N

Building 4

Building 5

Located to the north of Building 5, this circa 4 acre site remains undeveloped except for a temporary car park. The Local Plan has this site currently designated for employment uses.

Plot 6

BUILDING 4, 5& PLOT 6

1918

Building 4

Building 5

image to be updated

RISER

Indicative ground floor plans.

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2322

THE EVOLUTIONOF BUSINESS

PARKS

Crucially, the main industries highlighted for future growth in

the UK and the South East typically derive from a technology or

research background. This means that the ‘clustering’ tendency supporting business parks will

amplify moving forward.

An amenity rich environment is recreating the business park

environment which is now capable of supporting and

retaining talent.

In the South East, business parks have typically accounted

for 60% of occupier activity over the longer term.

Business Parks are evolving to become amenity rich, service

focused, well-connected places where business eco systems

are formed.

Chiswick Park- an exemplar of an amenity rich, occupier focused business campus.

The work environment enables social and creative interactions, emanate vibrancy and is a place

to meet and exchange ideas, rather than simply a tool of

production.

25

TOP FIVE STRATEGIC AGENDA ITEMS BEST SUPPORTED BY REAL ESTATE

Talent management (attraction & retention)

Corporate brand & image

Cost reduction

Increased collaboration

Employee wellness

1

2

3

4

5

OFFICE ENVIRONMENTS HAVE NEVER BEEN MORE IMPORTANT

• 87% of global corporate leaders surveyed by Knight Frank*, identify real estate as a strategic device for their businesses in order to gain a competitive advantage.

• They use effective real estate solutions in order to:

- Enhance productivity

- Attract and retain talent

- Improve their brand and image

- Reduce costs

- Increase collaboration

- Improve employee wellness

• Business leaders have a growing appreciation of the role of real estate and therefore have a different attitude towards the cost and the complexity of these decisions.

SPACE-AS-A-SERVICE

• The digital age places greater emphasis on understanding and engaging with customers through the analysis and application of data.

• Customer-centric services and flexible solutions are all the more important in order to provide a superior customer service.

• Commercial real estate is not much different, as the space-as-a-service model continues to become the new reality.

• The recent co-working boom of 2017 best exemplifies this.

• Unlike traditional office space, space-as-a-service models have a clear understanding of the requirements of a customer A.K.A the occupier.

• Thames Valley Park offers a flexible environment with the opportunity to provide a mix of conventional and more flexible space and a tailored service and amenity provision.

TAPPING INTO TALENT

• We are seeing more and more tech and creative talent move towards affordable, well-connected and amenity rich locations.

• Occupiers are pro-actively identifying where this talent concentrates and settling there rather than in locations that simply provide financial incentives or a historical connection.

• Reading’s success has been built on its scientific and technological expertise and 42% of the local population has been educated to degree level or above.

• As a result, Reading has three times the number of tech companies than average and this figure is rising, making it the number one tech cluster in the UK.

READING - ONE OF THE UK’S MOST EXCITING AND DYNAMIC COMMERCIAL CENTRES

THE WORLDOF THE

OCCUPIER

24

Reading talent pool of

7 million highly skilled workers

11 of the world’s top 15 tech

companies are located in Reading

Home to 13 of the world’s top 30 brands

No. 1 - Fastest growing UK city

*Knight Frank Research Y(our) Space magazine 2019.

Take-Up/Demand

Reading has the highest average annual take-up of any South East town and continues to have very favourable supply/demand dynamics with a lack of available new and Grade A space. Take-up over the last 12 months’ was 620,277 sq ft which is 24% up on the 5-year average of 476,000 sq ft. H1 2019 take up has been more subdued reaching 188,140 sq ft, 60% of this take up was in the out of town market. Due to the diminishing supply of good quality space, we anticipate H2 2019 to see take up improvements in line with the 5-year average.

Supply

Reading Grade A current supply stands at 991,000 sq ft. The reducing level of Grade A office space in the Reading market is due to consistent high levels of tenant demand and further supply erosion through permitted development with over 1.26m sq ft of office space converted to residential. With over 1.5 million sq ft of office space subject to a lease event between now and the end of 2021, we expect this available space to be absorbed further compressing the current vacancy rate of 10.9%.

Speculative Development

In 2017, office development in the South East reached its peak of the latest cycle. Development completions exceeded 3.3 million sq ft, of which 2.4 million was speculative. This represented the highest development total for more than 15 years. Since then, development activity has reduced significantly. In 2018, just 840,000 sq ft of speculative space was developed.

In Reading, there is only 270,000 sq ft under construction and we anticipate 44,000 sq ft to be delivered in 2019. The remaining 225,000 sq ft is due to be delivered in 2021.

Active Demand

Knight Frank are tracking 5.15m sq ft of active demand (10,000 sq ft+) across the wider South East market, with 2.8m sq ft active in the Thames Valley, of which, approximately 50% are considering Reading as a key location for their business relocation.

Rents

Prime headline rents for the best quality space in Reading town centre is currently £38.00 per sq ft, achieved in Thames Tower to Ericsson (Q1 2018). Within the out of town market, rents range from £36.00 per sq ft on Green Park and £31.50 per sq ft on Thames Valley Park. Knight Frank predict rents on Thames Valley Park to rise up to £35.00 per sq ft by 2022.

Recent relevant occupational comparable transactions below:

South East investment volumes reached £357 million in Q2 2019, c. 40% below the average for the second quarter, and bringing first half volumes to £885M, in part due to the geopolitical uncertainty. There remains significant equity looking to be deployed in the region, attracted by attractive yields relative to other sectors and an increasingly tight occupational market. As we have seen in previous quarters, recent acquisitions have been made by parties from a wide variety of backgrounds, including Councils, US Private Equity and Private Investors, as well as some UK Funds.

Genuine value add opportunities in core South East markets are rare. Recent comparable transactions in the South East include the following:

READINGOCCUPATIONAL

MARKET

INVESTMENTMARKET

Reading is the principal commercial centre and business heart of the Thames Valley and has a total office stock of 10.8 million sq ft, continually outperforming the other major South East centres. The Elizabeth Line connectivity continues to be a lure for a diverse range of occupiers, but the ongoing evolution of Reading as a technology cluster remains the mainstay of activity. The attraction of a diverse graduate population, transport connections, excellent retail and leisure amenities, plus a broad range of residential accommodation is key to the success of the office sector.

Property Tenant Size (Sq Ft)

Rent (£psf)

Lease Term

RPlusMoore Stephens International

19,584 £35.75 10 yrs

3 Forbury Place Iqvia Ltd 56,399 £31.00 10 yrs

2 Forbury Place KPMG 43,864 £37.50 15 yrs

Thames Tower Ericsson Ltd 30,032 £38.0010 yr, 5 yr break

500 Brook DriveVirgin Media (Sub Tenant)

121,350 £28.75 10 yrs

Space, Reading International

Symantec Ltd 25,349 £33.5010 yr, 5 yr break

TVP2 Hewlett Packard 28,929 £30.0010 yr, 5 yr break

410 Thames Valley Park

Sanofi 71,676 £31.50 10 yrs

250 Longwater Ave, Green Park

Extreme Networks

16,370 £36.50 10 yrs

2726

Date Property Town Size Price Cap Val Purchaser Vendor

Jul 19 Atlantic House Reading 38,577 £8,250,000 £214 The Police & Crime Commissioner

Clearbell

Jul 19Sutton Park House

Sutton 72,994 £9,600,000 £132 Paradigm Asset Management Group Ltd

Private

Jan 19Sovereign House

Richmond 21,667 £9,400,000 £434 Planehouse LimitedMetropolitan Police

Jan 19 Hive 3 Theale 58,042 £16,000,000 £276 Bottomline Technologies Ltd

Praxis Real Estate

Dec 18 TVP1 Reading 73,920 £9,609,000 £130 Spear Street BMO

Dec 18 TVP2 Reading 54,330 £14,790,000 £272 Spear Street BMO

Nov 18Worldwide House

Bracknell 50,440 £11,000,000 £218 Audatex CBREGi

Nov 18Building B, Watchmoor Park

Camberley 32,461 £5,100,000 £157 Arena Business CentreBMO Capital Markets Ltd

Sep 18 AbInBev Woking 64,698 £16,900,000 £261 Mayfair Capital Investment Management

M&G Real Estate

Estate ChargeInformation available upon request.

SurveysAssignable Building, M&E and Measured Surveys available in the dataroom.

VATWe understand that the property will be treated as a Transfer of a Going Concern for VAT purposes.

TenureFreehold.

Data RoomAccess available upon request.

Energy Performance CertificateThe EPCs for each building are held on the data room.

ProposalOffers are sought in excess of £26,500,000 (Twenty Six Million Five Hundred Thousand Pounds). A purchase at this price would reflect a low capital value of £144 per sq ft on the office accommodation and £1m per acre on Plot 6.

Subject to Contract and exclusive of VAT

For further information or to arrange an inspection please contact any of the following: Henry Wyld 020 7861 152007768 833 478henry.wyld@knightfrank.com

Emma Goodford020 7861 114407831 581 258emma.goodford@knightfrank.com

Roddy Abram020 7861 128007899 001 028roddy.abram@knightfrank.com

Alasdair Collins020 3826 060807532 380 285alasdair.collins@knightfrank.com

IMPORTANT NOTICE (1) Particulars: These particulars are for information purposes only and are not an offer or contract, nor part of one. You should not rely on statements by Knight Frank LLP in the particulars or by word of mouth or in writing (“information”) as being factually accurate about the proper-ty, its condition or its value. Knight Frank LLP has no authority to make any representations about the property, and accordingly any information given is entirely without responsibility on the part of the agents, seller(s) or lessor(s). (2) Photos etc: The photographs show only certain parts of the property as they appeared at the time they were taken. Areas, measurements and distances given are approximate only. (3) Regulations etc: Any reference to alterations to, or use of, any part of the property does not mean that any necessary planning, building regulations or other consent has been obtained. A buyer or lessee must find out by inspection or in other ways that these matters have been properly dealt with and that all information is correct. (4) VAT: The VAT position relating to the property may change without notice. Knight Frank LLP is a limited liability partnership registered in England with registered number OC305934. Knight Frank LLP registered office is 55 Baker Street, London, W1U 8AN, where you may look at a list of members’ names. Live Photographs taken August 2019. CGi’s created by TB Bennett and are indicative. September 2019.

Knight Frank LLP55 Baker StreetLondon W1U 8AN

2928

FURTHERINFORMATION

INVESTMENTRATIONALE

• Reading is the premier league Thames Valley town.

• Occupier endorsements – Sanofi, HP, Ericsson and Virgin Media all recently relocated to TVP and Reading from surrounding markets.

• TVP is well placed to capitalise on the growth in the Next Wave Technology sector – positioned as the best tech campus in the UK.

• TVP has a mature and established environment.

• Recent investor activity in TVP supports the future vision for the park and demonstrates commitment.

• With the right amenity and service provision, there remains significant rental growth potential.

• Building 4 & 5 (and Plot 6) can become a self-contained campus on TVP, and positioned as the heartbeat of the whole park.

• Underlying long term alternative use potential (STP).

Thames Valley Park, Reading