Marlow International - The Opportunity

Summary

Marlow International offers a unique opportunity to acquire one of the largest and most prestigious office buildings in the Thames Valley
Located in the heart of the Thames Valley within close proximity to the M25, M4 and M40 motorways, as well as Heathrow Airport
The property comprises 230,767 sq ft of high quality Grade A office space arranged over ground and three upper floors within attractive landscaped grounds
Multi-let to six tenants including the global brands of Allergan Ltd and Dun & Bradstreet Ltd
The annual passing rent is £5,514,462 per annum (£23.90 psf)
The tenancies show a WAULT of 5.95 years to expiry and 5.74 years to breaks
Grade A specification with 854 car parking spaces, providing an excellent car parking ratio of 1:259 sq ft

Video

Location

Connectivity

Road

Marlow is conveniently situated off the A404 dual carriageway which connects the M40 Motorway at Junction 4 (6 minute drive) with the M4 Motorway at Junction 8/9 (10 minute drive). Junction 15 of the M25 is located approximately 20 miles (32km) to the south east of the town.

Drive Times

Marlow Train Station	1 mile	5 mins
M40 (Jct 4)	2 miles	6 mins
M4 (Jct 8/9)	8 miles	10 mins
Maidenhead Station (Crossrail)	9.5 miles	13 mins
Reading	15 miles	30 mins
Heathrow International Airport	20 miles	25 mins
Oxford	32 miles	45 mins
Central London	33 miles	1hr 10mins

Rail

Marlow International benefits from close proximity to three stations, Marlow, Maidenhead and High Wycombe.

Marlow railway station provides a service to London Paddington, with a fastest journey time of approximately 50 minutes via Maidenhead as well as frequent services to the South West.

Marlow	Paddington	50mins
Maidenhead	Paddington	40mins
High Wycombe	Marylebone	30mins

Crossrail (Elizabeth Line)

A new Crossrail station will open in Maidenhead in 2019 with six trains an hour at peak times linking to Heathrow Central (23 minutes), London’s West End (39 minutes), the City of London (46 minutes) and Canary Wharf (55 minutes).

Air

London Heathrow Airport is located 21 miles to the south east of Marlow and is the world’s second busiest airport handling 78 million passengers in 2017. Heathrow has 81 airlines serving approximately 204 destinations in 85 countries.

London Heathrow Airport recently confirmed that it will commence construction on a third runway which is to be built by 2030 at a cost of £14.3bn. This will increase take off / landing capacity by 56% giving Heathrow the 3rd highest capacity in the world after Atlanta and Chicago. The runway is set to have a significant economic impact with GDP forecast to increase by 0.75% by 2050. The third runway will create up to 77,000 additional jobs.

THE BUILDING

Marlow International was originally built by Arlington Securities in 1987 for Rank Xerox who occupied the building as their UK headquarters. In 2001 it was extended and upgraded at a reported cost of £24 million to an ‘Excellent’ BREEAM rating. Since 2001 the building has benefitted from further capital expenditure with the refurbishment of the reception and restaurant area and replacement of the fan coil chillers.

The property comprises a major landmark headquarters office building providing 230,767 sq ft of Grade A offices and restaurant space arranged over ground and three upper floors around a central, full height atrium.

The property benefits from the following specification;

Four pipe fan coil air conditioning system
Fully accessible raised floors with 150 mm void throughout the building
2.6m floor to ceiling height
Suspended ceilings with recessed lighting
Central full height atrium/street with a fully glazed roof
7 x 13 person lifts
Fully fitted and equipped 500 cover restaurant
Digital building management system to control the mechanical services

There are a total of 854 underground and ground level car parking spaces, providing an excellent car parking ratio of 1:259 sq ft.

SERVICE CHARGE

The annual service charge for the building is currently passing of £8.71 psf. This breaks back to £6.39 psf on office space and £2.32 psf relating to the restaurant and coffee pod. Dun & Bradstreet have a service charge cap in their lease albeit the service charge is running below the cap at present.

TENANCY SCHEDULE

FLOORPLANS
/ AREAS

TENANT FINANCIALS

Areas (NIA)

Floor	sq m	sq ft
Third Floor	2,522	27,149
Second Floor	4,773	51,381
First Floor	6,747	72,626
Ground Floor	7,396	79,611
Total	21,439	230,767
Reception	513	5,523

Floor Plans

Tenancy Schedule

Floor	Tenant	Area (sq ft)	Rent (£pa)	Rent (£psf)	Start	Expiry	Review	Break	Comments
Third Floor	Aptos Solutions UK Ltd	9,085	£240,753	£26.50	12/12/2016	11/12/2026	12/12/2021	12/12/2021	6 month rent deposit of £144,451.50. Lease guaranteed by Aptos UK Holdings Limited.
Third Floor	Icon Clinical Research (UK) Ltd	11,326	£283,150	£25.00	20/06/2017	19/06/2022	-	-	-
Third Floor	U/O	6,738	£178,557	£26.50	*01/11/2018	31/10/2028	01/11/2023	31/10/2024	U/O on a 10 year lease with a tenant break option at year 6 at £26.50 psf. *Anticipated lease commencement date.
Second Floor	Dun & Bradstreet Ltd	51,381	£1,269,345	£24.70	08/05/2006	07/05/2021	-	-	-
First Floor (North Wing)	Allergan Ltd	15,517	£368,677	£23.76	30/07/2014	31/12/2025	25/03/2019 25/03/2024	-	On the first 2019 review date, the annual rent is reviewed to the higher of a 2.50% compound annual increase to the initial rent (£368,677) or the open market rent, subject to a cap of £387,016 p.a. The rent is to be topped up to the March 2019 rent review assuming 2.50% per annum compounded. The March 2024 rent review is to open market rental value. Lease guaranteed by Allergan Inc.
First Floor (East, South & West Wings)	Allergan Ltd	57,109	£1,356,885	£23.76	30/07/2014	31/12/2025	25/03/2019 25/03/2024	-	On the first 2019 review date, the annual rent is reviewed to the higher of a 2.50% compound annual increase to the initial rent (£1,356,885) or the open market rent, subject to a cap of £1,424,379 p.a. The rent is to be topped up to the March 2019 rent review assuming 2.50% per annum compounded. The March 2024 rent review is to open market rental value. Lease guaranteed by Allergan Inc.
Ground Floor (North Wing)	Allergan Ltd	14,586	£346,557	£23.76	30/07/2014	31/12/2025	25/03/2019 25/03/2024	-	On the first 2019 review date, the annual rent is reviewed to the higher of a 2.50% compound annual increase to the initial rent (£346,557) or the open market rent, subject to a cap of £363,795 p.a. The rent is to be topped up to the March 2019 rent review assuming 2.50% per annum compounded. The March 2024 rent review is to open market rental value. Lease guaranteed by Allergan Inc.
Ground Floor (East & Part North Wings)	Allergan Ltd	26,352	£626,112	£23.76	30/07/2014	31/12/2025	25/03/2019 25/03/2024	-	On the first 2019 review date, the annual rent is reviewed to the higher of a 2.50% compound annual increase to the initial rent (£626,122) or the open market rent, subject to a cap of £657,256 p.a. The rent is to be topped up to the March 2019 rent review assuming 2.50% per annum compounded. The March 2024 rent review is to open market rental value. Lease guaranteed by Allergan Inc.
Ground Floor (South & West Wings)	Allergan Ltd	29,122	£691,926	£23.76	30/07/2014	31/12/2025	25/03/2019 25/03/2024	-	On the first 2019 review date, the annual rent is reviewed to the higher of a 2.50% compound annual increase to the initial rent (£691,926) or the open market rent, subject to a cap of £726,344 p.a. The rent is to be topped up to the March 2019 rent review assuming 2.50% per annum compounded. The March 2024 rent review is to open market rental value. Lease guaranteed by Allergan Inc.
Ground Floor (Part West Wing)	Lexington Catering Ltd	9,551	£120,000	£12.56	13/03/2012	10/03/2023	-	-	Operator of the Restaurant and Coffee Pod facility. Their costs are subsidised via the S/C.
Car Parking	Aptos Solutions UK Ltd	-	£20,000	-	-	-	-	-	16 car parking spaces at £1,250 p.a. Either party may terminate the licence giving one month’s written notice.
Car Parking	Icon Clinical Research (UK) Ltd	-	£12,500	-	20/06/2017	19/06/2022	-	-	10 car parking spaces at £1,250 p.a.
Total		230,767	£5,514,462	£23.90

Allergan Limited (Company number: 01049760)

Allergan Limited is a leading pharmaceutical company that focuses on developing and manufacturing pharmaceutical products/medicines for patients around the world. Allergan markets a portfolio of leading brands which covers best-in-class products for the central nervous system, eye care, medical aesthetics and dermatology, gastroenterology, women's health, urology and anti-infective therapeutic categories. Allergan was founded in 1972 and has two UK offices. The company employs circa 17,000 people across the globe.

Allergan Limited has been rated by Dun & Bradstreet with a credit rating of 4A1 which indicates a minimum risk of business failure. A summary of the company’s financial performance over the past three years is shown in the table below:

Allergan Limited	Dec – 2016	Dec – 2015	Dec - 2014
Turnover	£ 206,406,000	£ 117,351,000	£ 119,880,000
Pre Tax Profit	£ 7,797,000	£ 11,956,000	£ 18,573,000
Net Worth	£ 25,577,000	£ 16,474,000	£ 16,958,000

Dun & Bradstreet Limited (Company number: 00160043)

Dun & Bradstreet Limited is a company that provides commercial data, analytics and insights for businesses. The company offers a wide range of products and services for risk and finance, operations and supply and sales and marketing professionals. Dun & Bradstreet provide research global business issues, serving customers across a range of industries such as communications, technology and financial services. Dun & Bradstreet is listed on the New York Stock Exchange and has a presence in over 220 countries employing 4,900 people worldwide.

Dun & Bradstreet Limited has been rated by Dun & Bradstreet with a credit rating of 5A1 which indicates a minimum risk of business failure. This is the highest credit rating score Dun & Bradstreet offer and indicates a minimum risk of business failure. A summary of the company’s financial performance over the past three years is shown in the table below:

Dun & Bradstreet Limited	Nov – 2016	Nov – 2015	Nov - 2014
Turnover	£ 71,914,000	£ 79,689,000	£ 77,701,000
Pre Tax Profit	£ 14,544,000	£ 4,803,000	£ 8,439,000
Net Worth	£ 114,338,000	£ 117,037,000	£ 111,931,000

Icon Clinical Research (U.K.) Limited (Company number: 02541764)

Icon Clinical Research (U.K.) Limited are a leading provider of outsourced development services to the pharmaceutical, biotechnology and medical device industries. Icon was established in 1990 and offers a range of consulting, development and commercialisation services from a global network of 97 offices in 38 countries. Icon employs circa 13,100 people.

Icon Clinical Research (U.K.) Limited has been rated by Dun & Bradstreet with a credit rating of 4A1 which indicates a minimum risk of business failure. A summary of the company’s financial performance over the past three years is shown in the table below:

Icon Clinical Research (U.K.) Limited	Dec – 2016	Dec – 2015	Dec - 2014
Turnover	£ 51,194,657	£ 53,272,413	£ 53,426,666
Pre Tax Profit	£ 3,399,177	£ 4,849,603	(£7,595,805)
Net Worth	£ 19,317,416	£ 15,252,762	£ 10,868,716

Lexington Catering Limited (Company number: 03428444)

Lexington Catering Limited are an award winning contract caterer who deliver food and provide hospitality services with a focus on sustainability and local produce. The company prepares and delivers food and provides services for corporate events. Lexington Catering was founded in 1997 and is a private limited company with offices throughout the UK.

Lexington Catering Limited has been rated by Dun & Bradstreet with a credit rating of 2A1 which indicates a minimum risk of business failure. A summary of the company’s financial performance over the past three years is shown in the table below:

Lexington Catering Limited	Sep – 2016	Sep – 2015	Sep - 2014
Turnover	£ 38,524,365	£ 27,282,727	£ 36,965,210
Pre Tax Profit	£ 2,532,644	£ 1,077,231	£ 1,094,881
Net Worth	£ 5,802,255	£ 3,823,861	£ 2,909,124

Aptos Solutions UK Ltd (Company number: 06768655)

Aptos Solutions UK Ltd offers a range of business consulting and finance management services covering both the public and private sector. The company was founded in 2008, and comprises two directors who are joint owners of the company.

Aptos Solutions UK Ltd has been rated by Dun & Bradstreet with a credit rating of B1 which indicates a minimum risk of business failure. A summary of the company’s financial performance over the past three years is shown in the table below:

Aptos Solutions UK Ltd	Dec – 2016	Dec – 2015	Dec - 2014
Turnover	-	-	-
Pre Tax Profit	-	-	-
Net Worth	£ 322,212	£ 305,509	£ 319,087

The Office Market

MARLOW AVAILABILITY

SOUTH EAST OFFICE RENT MAP

KEY INVESTMENT COMPARABLES

Asset Management Opportunities

Potential to extend lease with Dun & Bradstreet
There is longer term potential to regear Allergan’s lease beyond 2025
Allergan are currently commiting significant investment into the building
Take advantage of the undersupplied Marlow office market with scope to push the prime rental tone beyond £28.00 psf
Remove the Aptos Solutions UK Ltd December 2021 break option

VAT

The property is elected for VAT.

EPC

The property benefits from and EPC Rating of C51.

Tenure

The property is held freehold.

Marlow Availabilty

Marlow has approximately 91,270 sq ft of Grade A availability. When accounting for the under offer space this reflects 56,727 sq ft or 5.67% of the total Marlow office stock. As a key Thames Valley office location, Marlow competes with the nearby office centres of High Wycombe (1% Grade A availability) and Maidenhead Town Centre (1.50% Grade A availability).

Property	Size (sq ft)	Specification	Rent (£psf)	Landlord
Globeside 2 Globe Park Marlow	10,543 24,000 (U/O)	Refurbishment - Grade A	£28.50	Columbia Threadneedle
Eclipse Globe Park Marlow	27,000	New Grade A	£28.50	Maven Capital Partners UK LLP
Medina Globe Park Marlow	22,989	Refurbishment - Grade A	£28.50	APIA Nominee Ltd
Marlow International	6,738 (U/O)	Refurbishment - Grade A	£27.50 psf	Kildare Partners UK LLP

KEY INVESTMENT COMPARABLES

Date	Property	Area (Sq ft)	Tenants	Term Certain (Breaks)	Price (£m)	NIY (%)	Capital Value (£psf)	Purchaser
U/O	Compass Centre, Heathrow	203,000	Heathrow Airport Ltd.	5 years	Q£100m	Q5.53%	Q£386	-
U/O	Westside, Hemel Hempstead	189,849	7x tenants	10 years 6.2 years	Q£63.3m	Q6.50%	Q£333	-
Oct-18	Microsoft Campus Reading	246,136	Microsoft	8 years	£100m	6.31%	£406	Valesco/AIP
Aug-18	Tor, Maidenhead	68,066	3x tenants	9.3 years 8.8 years	Q£35.02m	5.75%	£515	M & G
Jul-18	Strata, Staines-upon-Thames	89,080	2x tenants	8.2 years 7 years	£46.5m	6.00%	£522	M & G
Mar-18	Harman House, Uxbridge	129,060	10x tenants	7.93 years 5.38 years	£51.0m	6.68% (SPV)	£395	CLS Holdings
Jan-18	The Aircraft Factory, Hammersmith	77,505	16x tenants	4.25 years	£63.0m	6.50%	£813	Legal & General
Dec-17	Imperial Place, Borehamwood	223,000	18x tenants	5.6 years 3.1 years	£62.5m	6.40%	£278	Fprop
Nov-17	Dukes Court, Woking	224,431		5 years	£72.3m	5.76%	£322	Woking Borough Council
Aug-17	Interchange, Croydon	181,221	6x tenants	8 years 4 years	£71.5m	6.25%	£389	Tristan Capital
Jan-17	Reading Bridge House, Reading	114,853	10x tenants	7.4 years 6.4 years	£35.0m	6.42% (Net)	£305	Topland Group

Further Information

For further information please contact:

Rob Cregeen

Director | National Capital Markets
+44 20 7344 6579
Mobile: +44 7787 157731
rob.cregeen@colliers.com

Tom Farkas

Associate Director | National Capital Markets
+44 20 7487 1609
Mobile: +44 7771 375542
thomas.farkas@colliers.com

Andrew Thomas

Head of International Capital Markets
+44 20 7487 1649
Mobile: +44 7793 808181
andrew.thomas@colliers.com

Colliers International

50 George Street
London
W1U 7GA

Tel: +44 20 7935 4499

Fax: +44 20 7487 1894

http://www.colliers.com/en-gb/uk

Property Misrepresentation Act

Colliers International gives notice that these particulars are set out as a general outline only for the guidance of intending Purchasers or Lessees and do not constitute any part of an offer or contract. Details are given without any responsibility and any intending Purchasers, Lessees or Third Party should not rely on them as statements or representations of fact, but must satisfy themselves by inspection or otherwise as to the correctness of each of them. No person in the employment of Colliers International has any authority to make any representation or warranty whatsoever in relation to this property. Colliers International is the licensed trading name of Colliers International Property Consultants Limited. Company registered in England & Wales no. 7996509. Registered office: 50 George Street, London W1U 7GA. September 2024.

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Summary

Video

Location

Connectivity

Road

Drive Times

Rail

Crossrail (Elizabeth Line)

Air

THE BUILDING

SERVICE CHARGE

TENANCY SCHEDULE

FLOORPLANS / AREAS

TENANT FINANCIALS

The Office Market

MARLOW AVAILABILITY

SOUTH EAST OFFICE RENT MAP

KEY INVESTMENT COMPARABLES

Asset Management Opportunities

VAT

EPC

Tenure

Further Information

Property Misrepresentation Act

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FLOORPLANS
/ AREAS