Future for Industrial Development in Park Royal

Mike Cummings, Regional Director, Park Royal and London

12th May 2015

SEGRO: Europe’s leading industrial REIT

2 * including joint ventures at Group share 31 Dec 2014

1250+ customers 5.8 million sq. m of lettable space £4.8 billion* property portfolio

500+ hectares of development land

£266m annual rental income

London & South East England

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Heathrow

Park Royal

Enfield & North London

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Other business

space (10%)

A diverse customer base

Industrial development – Critical to London’s infrastructure

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The Importance of Park Royal

•  2,000 businesses, fragmented ownership, surrounded by chimney pots

•  Employing 31,000 direct jobs (circa 24,500 indirect)

•  Employment pattern – 17% micro, 23% small, 18% medium 42% large

•  51% employed locally

•  18.7m sq. ft. of industrial floor area

•  6% vacancy rate*

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*December 2014 (Focus)

Park Royal – Prime location for urban logistics and local service industries

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TV, film and media Manufacturing & processing

Urban logistics Local commercial services

Challenges and opportunities

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HS2

Infrastructure Perception

Regeneration of Old Oak Common

Contributing to a world class industrial location

•  From 2013 – 2016, SEGRO will have delivered c. 500,000 sq. ft. of new industrial space

•  4 new schemes coming forward

•  Flagship Origin Business Park completes in December 2016

•  65% let already let (237,000 sq. ft.)

•  JLP, Ocado and Mash Purveyors

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Tudor Gate – Completed in August 2013

Origin Business Park

Looking ahead: Park Royal is well positioned for growth?

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Structural drivers of demand for new space in Park Royal !  London’s growing population

!  Trend towards outsourcing, local distribution and growth in support services

!  Great road access to the West End

!  Changing operational requirements from occupiers is driving demand for new

modern industrial space !  On line and convenience shopping – The Centre for Retail Research predicts

online retail sales will rise from 12.7% (2013) to 21.5% by 2018

!  The regeneration of London will drive the demand for new industrial floor space

….but Park Royal infrastructure needs enhancing

Shaping Park Royal’s industrial future

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Thank you

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