PRIME CAR DEALERSHIP INVESTMENT

115 Power RoadChiswick, London W4 5PY

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1 115 Power Road, Chiswick, London W4 5PY

PO

WER

RO

AD

A406 NORTH CIRCULAR ROAD

M4

A4

B&Q

CHISWICK PARK

CHISWICK ROUNDABOUT

CHISWICK HIGH ROAD

Gunnersbury Station

Chiswick Park Station Chiswick Park Station Chiswick Park Station

2

• Volvo UK’s flagship showroom in a prominent location adjacent to the A406 North CircularRoad, the Chiswick Roundabout and the M4 Motorway.

• An established showroom location close to many similar occupiers including Honda, Peugeot,Volkswagen, Mercedes and Audi.

• Purpose built in 2007 providing showroom and service facilities of 15,949 sq ft and parkingfor some 100 cars.

• Entirely let to the substantial covenant of Volvo Car (UK) Limited for 15 years from 7th January2008 and expiring in January 2023 and providing an initial income of £554,386 per annumexclusive with a fixed increase to £627,232.32 per annum exclusive on 7th January 2018.

• 10.25 years unexpired lease without break.

• Offers are invited in excess of £8,450,000 subject to contract reflecting an initial yield of6.2% rising to 7.0% in January 2018 after deduction of normal purchaser’s costs of 5.8%.

Investment Summary

115 Power Road, Chiswick, London W4 5PY

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Chiswick is a popular and successful business location located 5 miles due west of Central London. Communications by air, road and rail are excellent and many substantial national and international companies are located in the area.

From the subject property Heathrow Airport can be reached in 18 minutes. The M4 is 1 minute from the building and the M25 London ring road is only 10 minutes drive. The North Circular Road is immediately adjacent to the property providing direct access to the M1 and M40. The South Circular Road is 2 minutes drive giving direct access to the A3 and M3.

Gunnersbury Station is 5 minutes walk from the building. The District Line and North London Line provide links to Hammersmith, Richmond, the West End, the City and Stratford.

The success of Chiswick as a business location is reflected in the location of Chiswick Park, one of London’s most successful business parks. Over 1.8 million square feet are occupied by some 40 companies including Global, European and UK headquarters buildings. Occupiers include Ericcson, Paramount Pictures, The Walt Disney Company, Singapore Airlines and CBS News. Other occupiers closeby include B & Q, Hinduja Global Solutions and The Royal Embassy of Saudi Arabia.

The site totals approximately 0.47 hectares (1.17 acres) providing a site cover of approximately 31%.

Site

3For indicative purposes only.

BURLINGTON RD

SUTTO

N C

OU

RT R

OA

D

GREAT C

HERTSEY RD

BURLI

NGTON

LAN

E

GO

LDHA

WK ROAD

GUNNERSBURY AVENUE A

406

A315 HIGH STREET KEW BRIDGE ROAD

LIONEL ROAD

DAWES ROAD

RO

CKS

LANE

CAST

LEN

AUA3

06

HAM

MER

SMIT

HBR

I

HOLLANDROAD

BEADON RDHAMMERSMITH

ROAD

SHEP

HER

D’S

BU

SHR

OA

D

LILLIE ROAD

CEDARS ROAD A4 HOGARTH LANE

A307

KEW

ROA

D

ACTO

N LANE

POWER RD

SOUTH EALING

BRENTFORD

CHISWICK

ACTON TOWN

SOUTH ACTON

JUNCTION 2HEATHROWM25

JUNCTION 1

GUNNERSBURY

CHISWICK PARK

BARONS COURTKEW

BRIDGE

KEWGARDENS

TURNHAM GREEN

HAMMERSMITH

KENSINGTONOLYMPIA

RAVENSCOURTPARK

POPES LANE GUNN

ERSB

URY

LAN

E

GREAT WEST ROAD A4 HAMMERSMITH FLYOVER TALGARTH ROAD

KEW

BR

I

MORTLAKE ROAD A

205

FULH

AMPALACE

ROAD

THE AVEN

UE

CHISWICK HIGH ROAD A315 KING STREET

WELLESLEY ROAD

CHISWICK

BARNES

KEW

FULHAM

HAMMERSMITH

EALING

GUNNERSBURY PARK

CHISWICK PARK

TURNHAMGREEN

DUKESMEADOIW

KEW GARDENS

SYON PARK

THE LONDONWETLAND

CENTRE

THE LONDONWETLAND

CENTRE

BARNESCOMMON

CENTRALLONDON

A40

GREATERLONDON

CAMBERLEY

BRACKNELL

UXBRIDGE

WATFORD

HEMELHEMPSTEAD

MAIDENHEAD

WOKING

EPSOM

GUILDFORD

DORKING REIGATE

READING A205

A404A423

A413

A4

A4

A329

A322

A40

A40

A24

A244

A24

A23

A3095

A31

A3

A3

A315

GATWICK

HEATHROW

STAINES

M23

M25

M3

M3

M1

M4

M4

3

12

12

15

18

21

8/9

16

9

1

1

1

5 7

A329(M)

10

A31610

65

WINDSOR

13

14

M40

SLOUGH

4

4

M25

2

A4010

A406

CHISWICK

A406

M25

1

Location Situation

The property is situated at the junction of Gunnersbury Avenue (A406 North Circular) and Power Road in a location that has established itself as a prime destination for flagship car showrooms. Occupiers in the immediate vicinity include Honda, Peugeot and Volkswagen. Mercedes, Audi and Porsche all have prime showrooms within 2 minutes drive.

Close to the property are a large number of office buildings including Chiswick Place, Chiswick Green and the substantial Chiswick Park. The Chiswick Roundabout immediately to the south of the site forms the junction between the A406 (North Circular Road) and the A205 (South Circular Road).

115 Power Road, Chiswick, London W4 5PY

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Description Accommodation

4

Ground Floor Showroom, 1,063.71 sq m (11,450 sq ft)service workshop andancillary areas

First Floor Showroom, 331.97 sq m (3,573 sq ft)Offices and ancillary areas

Valet and tyre bay 86.05 sq m (926 sq ft)

Total 1,481.73 sq m (15,949 sq ft)

The property provides the following approximate Gross Internal Areas (GIA).

Front Display Parking 16 spacesSide Parking 14 spacesRear Sales/Customer/Service Parking 70 spaces

The property was purpose built in 2007 and pre-let to Volvo.

The contemporary design and high specification provides a spacious ground floor showroom with a further sales area at first floor level, offices and staff accommodation.

The showroom is finished to a high standard with air conditioning, suspended ceilings, recessed lighting and double height windows overlooking the North Circular Road.

The adjacent service facility includes ancillary offices, staff accommodation and a hydraulic car lift servicing the first

floor showroom area. To the rear of the site is a purpose built valeting and tyre bay facility.

The ancillary offices have recessed lighting within suspended ceilings, air conditioning and a passenger lift providing access to the first floor showroom, office and staff areas.

The tenant parks some 70 cars at the rear of the site with a further 16 fronting Power Road and at least 14 on the North Circular Road elevation.

Volvo can exhibit their entire model range within the ground and first floor showroom.

115 Power Road, Chiswick, London W4 5PY

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5

Tenure

The property is held Freehold.

TenancyThe entire property was pre-let on a full repairing and insuring lease to Volvo Car (UK) Limited for a term of 15 years from 7th January 2008 expiring on 6th January 2023. The initial rent of £490,000 per annum exclusive is subject to a fixed uplift on 7th January 2013 to £554,386 per annum exclusive and a further uplift to £627,232.32 per annum exclusive on 7th January 2018.

The lease has approximately 10.25 years unexpired without break.

The initial rent on completion will be £554,386 per annum exclusive with the vendor providing a rent top-up to 7th January 2013.

Financial Information

115 Power Road, Chiswick, London W4 5PY

Volvo is a world renowned car manufacturer. The company was founded in 1927 and in 2011 global sales were 450,000 cars, an increase of 20.3% on 2010. Volvo was purchased in 2010 by Zhejiang Geely Holding Group of China, with a target of achieving annual sales of 800,000 cars by 2020. Sweden, Germany and Britain are Volvo’s largest European markets. www.volvocars.com

Volvo Car (UK) Limited provide the following latest financial information for the year ended 31st December 2010.

Turnover £736,680,000

Pre-tax Profit £4,901,000

Tangible Net Worth £30,618,000

Dun & Bradstreet have given Volvo Car (UK) Limited a 4A1 rating, reflecting Minimum Risk.

Volvo Cars London occupy the property and are the largest Volvo dealership in London and the South East. www.volvocarslondon.co.uk

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6115 Power Road, Chiswick, London W4 5PY

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The property has been elected for VAT therefore VAT will be payable on the purchase price although it is anticipated that the transaction will be treated as a Transfer of a Going Concern (TOGC).

• Chiswick is a popular area commanding high commercial and residential values.

• A prime 2007 purpose built car showroom.

• A prominent location on the North Circular Road and adjacent to the M4.

• Entirely let to the car manufacturer rather than the dealership.

• 10.25 years of unexpired income from the substantial covenant of Volvo Car (UK) Limited.

• An attractive initial yield and a guaranteed fixed rental increase in 2018.

• A secure investment with a substantial site value.

VAT

Investment Rationale

We are instructed to seek offers in excess of £8,450,000 (eight million, four hundred and fifty thousand pounds) subject to contract, to reflect an initial yield of 6.2% rising to 7.0% in 2018 after deduction of purchaser’s costs of 5.8%.

Pricing

A+A 0-25

B 26-50

C 51-75

D 76-100

E 101-125

F 126-150

GOver 150

This is how energy efficientthe building is.51

Net zero CO emissions2

More energy efficient

Less energy efficient

4074

Buildings similar to this one could have ratings as follows:

If newly built

If typical of theexisting stock

Energy Performance CertificateNon-Domestic Building

Energy Performance Asset Rating

Technical information Benchmarks

Certificate Reference Number:0240-6977-0340-2930-5064

Volvo Cars London115 Power RoadLONDONW4 5PY

Main heating fuel: Grid Supplied Electricity

Building environment: Air Conditioning

Total useful floor area (m ): 2 1403

Building complexity (NOS level): 4

Building emission rate (kgCO /m ): 22 100.79

This certificate shows the energy rating of this building. It indicates the energy efficiency of the building fabric and the heating, ventilation, cooling and lighting systems. The rating is compared to two benchmarks for this type of building: one appropriate for new buildings and one appropriate for existing buildings. There is more advice on how to interpret this information on the Government's website www.communities.gov.uk/epbd.

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