Presentation example - The Design Workshop

Park Gate, 2000 Aztec West, Bristol, BS32 4UA Presentation to

April 2016

Presentation to Aprirose April 2016

Contents Executive Summary.......................................................................................................... 1 Core Team............................................................................................................................3 The Asset..............................................................................................................................6 Market Context..................................................................................................................9 Disposal Strategy.............................................................................................................13 Why Knight Frank?.......................................................................................................... 17 Appendices........................................................................................................................19

CONFIDENTIALITY STATEMENT The information contained in this document is confidential and not to be disclosed without the prior written consent of Knight Frank, to any third party other than our respective professional advisers or as may be required by law, or any rule of any regulatory authority or professional body by whose rules such party may from time to time be bound.

Presentation to Aprirose April 2016

Executive Summary Thank you for inviting us to present our views on providing market and investment advice on this asset. In this proposal we present our thoughts on an achievable price today, timing options for disposal and also the method by which we would achieve a sale if instructed.

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Presentation to Aprirose April 2016

Executive Summary Property overview • Headquarters office investment located on Aztec West Business Park, Bristol’s premier commercial office park.

We are truly excited by this opportunity and are confident that the investment would attract considerable interest from both UK and Overseas purchasers.

• Currently let to Everything Everywhere Ltd, for a term of 15 years from 24 June 2012 and expiring in June 2027.

Knight Frank are driven to achieve the best possible pricing on your behalf.

• Current Passing Rent - £1,314,425 per annum per sq. ft.

• The property extends to a total of 67,993 sq. ft.

(6,316 sq. m) over ground and two upper floors.

• The lease is on FRI terms with 5 yearly upwards only rent reviews. The next review is in June 2017.

• Excellent car parking ratio of 1:211 sq. ft.

• Freehold.

In summary, we would recommend quoting:

£20,700,000 / 6.00% NIY / £304 per sq ft and be driven to achieve:

£21,600,000 / 5.75% NIY / £318 per sq ft

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Presentation to Aprirose April 2016

Core Team “We have worked with the Knight Frank team to identify high quality real estate opportunities. We value the team’s insight into these specialist markets and have been impressed by their proactive attitude towards and involvement in the transaction process.”

Andrew Johnston Fund Manager, Royal London Asset Management

PREMIER INN LONDON WATERLOO, LONDON Client

Royal London Asset Management

Activity Acquisition of the freehold interest in a 234-bed Premier Inn hotel on York Road, Waterloo. 19.5 years unexpired and five yearly fixed rental increases, compounded at 2.5% per annum.

Value

£48 million

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Presentation to Aprirose April 2016

Core Team Shaun Roy

Steve Oades

Partner, Capital Markets

Partner, Capital Markets

Client Liaison & Project Leader

Project Implementation (Bristol)

Shaun has 11 years’ experience in the UK investment agency market. He set up and runs the specialist property investment team and has considerable transactional experience across the sectors.

Steve heads Knight Frank’s Bristol office and leads the South West Investment team assisted by a Partner and an associate.

Shaun advises a number of major UK funds, REITs and syndicates active in this area of the market, including Aprirose, Land Securities, Royal London Asset Management, AXA, CBRE Global Investors and Legal & General.

Recent transactions include: • Purchase and subsequent sale of Crickhowell House, Cardiff for £31.2m and £40.5m respectively • Disposal of Premier Inn, Waterloo for £48.0m • Disposal of Bermondsey Square, Bermondsey for £37.0m.

E: shaun.roy@knightfrank.com

With over 15 years experience, Steve is one of the most active and well known investment agents in the region and specialises in the office and industrial sectors. Clients include many of the UK’s largest institutional investors including M&G, Legal and General, LaSalle Investment Management, Blackrock and Mayfair Capital.

Recent transactions include: • Sale of Spectrum, Bristol for £14.0m • Acquisition of 66 Queen Square, Bristol for £32.7m • Acquisition of 101 Victoria Street, Bristol for £31.75m.

E: steve.oades@knightfrank.com T: +44 (0)11 7917 4548

T: +44 (0)20 7861 1222

The Spectrum Building, Bristol

Freddie Owen Associate, Capital Markets Project Implementation Freddie is an Associate within the office investment team and has six years experience in the property industry.

Freddie advises a number of UK property companies and mandated funds on acquisition and sales across the UK. Clients include Aviva, M&G, Brydel Partners and Legal & General.

Recent transactions include: • Purchase of Apex Plaza, Reading for £91.55m • Sale of Santander House, Redhill for £19.1m • Sale of Rackspace City, Hayes for £128m • Sale of 69 Park Lane, Croydon for £13.1m.

E: freddie.owen@knightfrank.com T: +44 (0)20 7861 1225

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Value

£14.0m

Presentation to Aprirose April 2016

Highlights Knight Frank Highlights • Top performers in our market.

• 45% market share in Q2 2015.

• Excellent track record in the National Office Investment market; market share in 2014 stood at 30%, more than any other agent.

• Involved in £1.35bn of transactions in the South East over the last 3 years, approximately 25% market share during that time.

• Transacted in excess of £170m in Bristol over the last 12 month.

• We consistently exceed clients’ expectations and have an unsurpassed conversion rate on all instructions.

• Seamless integration with our agency and professional teams and the wider Knight Frank network. Our South East Leasing team is also considered the best in class and provide strong backup when selling.

• The core team has a combined experience of over 45 years in the Investment market and would personally deal with all aspects of the strategic advice and disposal.

• Highly motivated team that only a Partnership structure can truly create – we are incentivised to meet and exceed your expectations.

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Presentation to Aprirose April 2016

The Asset PARK GATE, BRISTOL Park Gate, 2000 Aztec West, Bristol, BS32 4UA

• Built in 1991, Park Gate is a headquarters office located on Aztec West Business Park, Bristol’s premier commercial park.

• The building is arranged in a ‘H’ shape configuration and extends to a total of 67,993 sq. ft. (6,316 sq. m) over ground and two upper floors.

• The property benefits from 322 car parking spaces providing an excellent car parking ratio of 1:211 sq ft (1:19.61 sq. m).

• Refurbished by the tenant in July 2013 which included a completely new air conditioning system, a new generator, removal of existing chillers, new suspended ceilings and lighting.

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• The property is let to Everything Everywhere Ltd who formed in April 2010 following the merger of T-Mobile and Orange for a term of 15 years from 24 June 2012 and expiring in June 2027.

• Current Passing Rent - £1,314,425 per annum per sq.ft.

• The lease is on FRI terms with 5 yearly upwards only rent reviews. The next review is in June 2017.

Presentation to Aprirose April 2016

Location Analysis Location Bristol is a City located in the South West of England and is connected on an east-west axis from London to Wales by the M4 motorway and on a north-south axis from Birmingham to Exeter on the M5 motorway. It lies approximately 120 miles west of London, 50 miles east of Cardiff, 90 miles south of Birmingham and 80 miles north of Exeter.

Bristol City Centre is situated just off the M32 and is approximately 4 miles from the M4/M5 junction. The city hosts two-principle railway stations, Bristol Temple Meads and Bristol Parkway. Rail services provide access to London, Wales, Birmingham and the south west with journey times of approximately 1 hour 40 minutes to London Paddington, 50 minutes to Cardiff and 1 hour 20 minutes to Birmingham. Bristol airport is situated 7 miles southwest of the City Centre with Heathrow International Airport approximately 1 hour 50 minutes to the east.

Bristol has a population of circa 442,500 people, the largest in the South West. The City is one of Great Britain's ten ‘Core Cities’ and has become one of the largest employment bases for banking, finance, an insurance sectors outside of London. Major companies in the area include Imperial Tobacco, Lloyds TSB Group, AXA, Ministry of Defence, Rolls Royce and Hewlett Packard.

Aztec West Business Park The Aztec West Business Park, originally opened in 1989, is strategically located within Bristol's premier out of town business park and is situated approximately 8 miles north of the city centre.

The park extends to circa 64 hectares (158 acres) and provides over 2.1m sq ft of business space, predominantly office accommodation.

Occupiers benefit from the Park’s on site amenities including a 4 star hotel with leisure club and spa, banking / retail facilities and is home to over 100 companies. Recent incoming tenants include Broadcom, NVIDIA and Lucent / Alcatel.

Tenancy Schedule The property is let to Everything Everywhere Ltd for a term of 15 years from 24 June 2012 and expiring 23 June 2027 (approximately 11 years unexpired). The lease is drawn on effective full repairing and insuring terms.

The contracted rent is £1,314,425 per annum which equates to £19.33 per sq. ft. (£208.11 per sq. m.) on an overall basis.

The rent is subject to 5 yearly upwards only rent reviews, the next being 24 June 2017.

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Presentation to Aprirose April 2016

Covenant Information

Pricing Range

Tenant

Given the asset’s characteristics and current demand for quality, well located offices, we are confident that Park Gate will generate significant interest after a thorough marketing campaign.

31 Dec 2014 31 Dec 2013 31 Dec 2012

EE Ltd

£000’s

£000’s

£000’s

Sales Turnover

6,327,000

6,482,000

6,657,000

Pre Tax Profit

(255,000)

(101,000)

(249,000)

Tangible Net Worth

1,626,000

1,850,000

Shareholders Funds

8,921,000

9,733,000

NIY

Price Price (per sq ft)

2,365,000

5.75%

£ 21,600,000

£ 318

10,317,000

6.00%

£ 20,700,000

£ 305

6.25%

£ 19,900,000

£ 292

D&B Rating: N1, reporting a minimum risk of business failure.

According to FAME EE Ltd has a credit score of 41 and is of a normal status.

SWOT Analysis Strengths • High quality office building situated on Bristol’s premier business park.

• Excellent road connections located adjacent to Junction 16 of the M5.

• Strong covenant of EE Ltd with a D&B rating of N1

All prices assume purchasers costs of 5.80%.

We recommend quoting 6.00% and be driven to achieve closer to (or beyond) 5.75% through generating a competitive bidding scenario

Weaknesses • Whilst the rent is reversionary in the open market, it may be

difficult to achieve an uplift via rent reviews as evidence will be limited until more Grade A space is made available.

• Some investors may not like out of town locations and consequent lack of alternative use value.

• Excellent car parking ratio of 1:211 sq.ft.

• Recently refurbished accommodation including new air conditioning system.

• The lot size will appeal to a wide range of investors.

Threats • Tenant demand is currently outstripping supply for high quality

Opportunities • The property has recently been refurbished by the tenant which demonstrates their commitment to the building.

• The tenant is committed to the property which provides an opportunity for re gear discussions in the medium term.

• An opportunity to increase the income via rent reviews.

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out of town offices however this could change in the future.

Presentation to Aprirose April 2016

Market Context

Strata, Staines Activity Strata is to be extended and comprehensively refurbished to deliver a stunning new town centre building of 89,893q ft. arranged in 3 large floor plates of 29,000 sq ft each.

Value

Rent: ÂŁ36 Per sq ft

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Presentation to Aprirose April 2016

Occupational Commentary Bristol Take-up

Rents

• Following on from the exceptional take up of 2014, the Bristol

• Quoting rents are being reviewed in many cases as landlords

office market has continued its recovery, with demand levels at a healthy, but reduced, level.

• Q2 2015 take-up of 159,839 sq ft was above the ten year quarterly average and (with the exception of 2014) the highest on record since Q1 2010.

• North Bristol’s office stock totals approximately 5.5m sq. ft. and availability in the prime area around the Northern fringe is c 532,000 sq. ft. representing a vacancy rate of 9.67%.

seek to take advantage of improved market confidence.

• Tenant incentives are reducing as landlords’ confidence continues to improve.

• We expect to see rental growth later in the year with prime headline rents moving form £28.50 per sq ft to £29.50 per sq ft by the end of 2015.

Supply

Demand

• At the end of H1 2015 total availability stood at 1.05m sq ft.

• Demand was driven mainly by TMT (26%) and Professional

The availability of accommodation is being eroded across all qualities of space.

Services (24%), while Construction & Engineering (14%), followed in third place.

• This trend will continue through 2015 and 2016 as there are no

on-going new developments and there is continued removal of office space for alternative uses (residential and student accommodation).

Annual Take-up Bristol 500k 400k 300k 200k 100k 0 2010

10

2011

2012

2013

2014

Presentation to Aprirose April 2016

Occupational Commentary Aztec Park Aztec Park – Market Overview • Companies on site include, Atkins, AXA, IBM, GE and EE. • Whilst the city centre is an important commercial location, the out of town market

saw significant growth over the 1980s and 1990s to become a significant driver of Bristol’s economy.

• Excellent communications, the historic provision of development land and the restricted opportunities in central Bristol have all been key factors in the economic growth of Aztec Park

Park Gate Headline Refurbished ERV £22.00 sq.ft.

• Investment Transactions Knight Frank have been involved with at Aztec Park:

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Presentation to Aprirose April 2016

Investment Market Regional Office

Bristol

Investment Commentary

Commentary

• Despite strong occupier demand, the investment market in Q2

• Investment activity in Bristol during the first six months has

was relatively subdued with the total volume of transactions down to £0.6bn.

• However, this follows a strong Q1, taking the total volume for H1 2015 to £2.09bn, which is the strongest first half since 2007.

• Bristol, Manchester and Birmingham were the clear focus of investment activity, accounting for over half of total investment turnover.

• Prime yields have hardened at the beginning of 2015 in core regions and cities such as Bristol and Leeds have retained their premium over the UKs other core markets at 5.25%.

already exceeded the total achieved over the whole of 2014.

• Although Investment volumes have increased, there is a shortage of good quality stock.

• Activity in the out-of-town office market has been restrictive due to the lack of investment opportunities.

• The sale of 440 Bristol Business Park, let to Motability

Operations Ltd for a further 11 years sold for £6.8m, reflecting a NIY of 5.75%.

Comparable Deals Transaction Address Purchaser Date

August 2015 440 Bristol

Business Park, Bristol

NIY (psf)

Capital Value

Private Individual

Motability Operations Ltd

11.25 years

£6,800,000

5.75%

£324

April 2015

1 City Park, Brighton

Kames Capital

Legal and General Assurance Society

8.8 years

£22,800,000

6.10%

£292

March 2015

3 City Park, Brighton

Claymore Group LLP

Legal and General Assurance Society

8.8 years

£16,500,000

6.14%

£303

March 2015

Natwest Court, Bristol

Direct Line Group

DL Insurances Service Limited

18.5 years

£17,000,000

5.50%

£145

February 2015

RAC Control Centre

BlackRock Investment Management (UK) Ltd

RAC Motoring Services Limited

27.5 years

£24,220,000

5.05%

£380

December 2014

2620 Aztec West

Aviva Investors

Everything Everywhere Ltd

12.5 years

£23,100,000

6.25%

£300

Knight Frank acted in all of the above transactions.

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Tenant Term Certain Price (years)

Presentation to Aprirose April 2016

Disposal Strategy

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Presentation to Aprirose April 2016

Disposal Process Preparation / Due Diligence

Offers

Property Audit – a full review of title, leases and property data. We would obtain an EPC and recommend commissioning building, environmental and measured surveys which can be assigned to the purchaser.

Knight Frank will analyse the offers and make a recommendation on the party to be selected for detailed due diligence. The focus of Knight Frank’s decision making and recommendation process will be a combination of pricing and deliverability in the context of the financing and approval process.

The Sales Pack We would recommend the preparation of a high quality 12 page professional brochure to present the asset in its best light.

Implementation The marketing campaign will last for approximately four weeks in order to generate sufficient interest. Knight Frank will maintain a strong message of exclusivity by way of personal presentations to both of our domestic and international target investors. This approach ensures that the sales message is primarily delivered to the decision makers.

Bids date When we feel we have generated sufficient interest and that each party has had the opportunity to undertake thorough due diligence, we will request offers to be received by a certain date. This will create a competitive bidding environment.

Press & Public Relations It is important to prepare a structured press release to help manage the PR related to the sale. Friendly liaison between Knight Frank and the press will be carefully co-ordinated.

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Exclusivity The party will be given an exclusivity period, after agreeing Heads of Terms, to review the legal material and clear due diligence.

Online Data Room An online data room should be prepared by your professional advisors, with full legal and technical documentation in advance of an investor entering exclusivity. If prepared early, limited information and data room access could be made available to investors to assist with the preparation of their offers.

Client Reporting Knight Frank will liaise with you on a daily basis and crucial updates will be provided beyond normal reporting procedure. The team will be contactable at all times. Knight Frank will ensure all hurdles are cleared as efficiently as possible once the property is under offer.

Presentation to Aprirose April 2016

Achieving Best Value

1.

Comprehensive, global marketing campaign. Knight Frank have a team in all the key global hubs, that will be involved in this instruction.

What is the sales pitch?

In summary the asset provides the following:

• 67,993 sq ft of good quality office accommodation.

• The property is located on Aztec West Business Park, one of

We would produce outstanding marketing material for the campaign. We will conduct all guided inspections.

3.

the key business parks in Bristol and the South West.

• Current passing rent of £1,314,425 per annum (£19.33 psf)

Where possible, face-to-face presentations direct to identified parties.

• An opportunity to acquire an office on Bristol’s pre-eminent business park, that is well let to a strong covenant.

• Reversionary potential of the building.

2.

4.

Exceptional market intelligence allows us to target the ‘hot’ money.

Timing Action

Week 1

2

3

4

5

6

7

8

9

10

Pre-marketing due diligence Pre-marketing approach Full global marketing campaign and inspections Offers & agreement of heads of terms Purchaser’s due diligence Exchange to completion Sale completion Marketing

Under Offer

Exchange

We believe that this timetable strikes a balance between allowing sufficient time to assemble the required pre-sale due diligence, maintaining the momentum of the sale and allowing enough time for international purchasers to fully assess the opportunity.

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Presentation to Aprirose April 2016

Likely Purchasers We continue to see good levels of investor demand for opportunities such as this from both the UK and Overseas.

• The buyer for the asset is most likely to be an Institutional UK Fund or an Overseas Private Investor, they have been the most competitive bidders over the last 24 months’ for long income institutional grade assets.

• Knight Frank know the Principals at each of these investment

houses well, and would present direct to them as well as their agency representative.

• The table below highlights the types of buyers who we believe will demonstrate strong interest for an asset of such quality.

UK Funds

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Overseas Investors Contact: Phil Sturdy

Contact: Preenal Gondhea

Contact: Rob Cass

Contact: John Dunkerly

Contact: Hugo Henkes

Contact: Rafi Winush

Contact: Matt Wheeldon

Contact: Guy Hodgson

Contact: Matt Jarvis

Contact: Kanoo Family

Contact: Martin Lamb

Contact: Tobias Evans

Contact: Marcus Langlands Pearse

Contact: Tim Bowring

Contact: Nicholas Jenkins

Contact: Al-Ghazzawi Group

Contact: Chris Lewis

Contact: Aerium

Contact: Nigel Chapman

Contact: The Wazzan Family

Contact: Ed Clow-Wilson

Contact: Abdulrahman Sami Al-Delaigan

Presentation to Aprirose April 2016

Why Knight Frank?

Knight Frank is the leading independent, global real estate consultancy providing an integrated prime commercial and residential offering, operating in key hubs across the globe.

The Shard, London Activity The Shard is the tallest building in Western Europe standing at 310 metres. Knight Frank's offering comprises approximately 590,000 sq ft of high quality office accommodation, spread over the 4th to 28th floors and ranging in size from 14,500 to 31,000 sq ft.

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Presentation to Aprirose April 2016

Why Knight Frank?

Knight Frank advised on

£170m

of transactions in the South West in the last 12 months.

The Knight Frank Team • Market leading National Investment Team with approximately 25% share since 2012.

• Your sales team has over 30 years experience in UK Capital Markets and an outstanding track record.

• Exceptional high level contacts at all UK Institutions, which will facilitate high level decision making.

• Excellent track record of a ‘joined up’ sales approach between

Bristol and London offices. Recent successes include the sale of Spectrum, Bristol and Crickhowell House, Cardiff. This two pronged approach allows us to attract a wide range of potential buyers.

• Knight Frank know the building and Aztec Park extremely well and have extensive track record in Bristol.

• First class Bristol Leasing team will provide occupational back

up, with excellent working knowledge of Aztec West Business Park.

• Trusted advisors – we act in your best interest.

Track Record Knight Frank specialise in advising on the headline deals in the Bristol Market.

Spectrum, Bristol

66 Queen Square, Bristol

Sold: May 2015

Sold: June 2015

141,191 sq ft

61,497 sq ft

Multi-let with an AWULT of 2 years to breaks

Mulit-let - 15 years to KPMG and 10 years to Handelsbanken

£14,100,000

£32,780,0000

4.35 % NIY

4.94% NIY

Vendor: West Register

Vendor: Skanska UK Plc

Purchaser: Maddox Property Partners LLP

Purchaser: Aviva Investors

Comments: 60% vacant and sold without rent guarantees.

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Comments: Forward commitment. PC due in October 2015. 10% vacant with guarantees. Underbidders included Standard Life, L&G, Henderson & 2 German Funds.

RAC Control Centre, Bristol Sold: May 2015 141,191 sq ft Multi-let with an AWULT of 2 years to breaks £14,100,000 4.35 % NIY Vendor: West Register Purchaser: Maddox Property Partners LLP Comments: 60% vacant and sold without rent guarantees.

2620 Aztec West, Bristol Sold: December 2014 77,086 sq ft MultiLease expiry June 2027 £23,100,000 6.25% NIY Vendor: Dimah Capital / Yorktown Partners Purchaser: Aviva Investors Comments: Strong interest from various UK Funds.

Presentation to Aprirose April 2016

Appendices

APEX PLAZA, READING Activity Purchase of Apex Plaza, Reading Value

£91.55m

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Presentation to Aprirose April 2016

Knight Frank Overview Knight Frank stands for the highest standards of quality and integrity in global property transactional, management and advisory services. Our reputation for uncompromising professionalism in everything we do is earned day in and day out serving our clients and earning their trust.

Knight Frank has grown to become the world’s largest privately owned global property agency and consultancy. Today it is widely regarded throughout the world as the firm of choice for high quality commercial and residential property.

In the 1960s the firm expanded into Europe, and in the decades that followed, acquired offices in Asia-Pacific and Middle East, Australia, Africa and the Caribbean. Its global network, including US based Newmark Grubb Knight Frank, encompasses 370 offices globally.

We take it personally Our clients enjoy working with us as individuals. Their objectives are our objectives and we’ll stop at nothing to achieve them.

We go the extra mile because we want to, not because we feel we have to.

Our greatest property; trust

Operating as a Limited Liability Partnership, the firm’s Proprietary Partners are free to run the business in such a way that has led to sustained success and a corporate culture that helps it recruit and retain the best people who are the essence of the firm.

We display transparency, honesty and clarity in everything we do, turning transactions into valuable long-term relationships.

Knight Frank remains wedded to its core objectives of progressing global growth and capitalising on market share opportunities in both the residential and commercial property sectors. It continues to preserve and attract excellent talent in order to provide exceptional service to its clients.

As individuals we have amazing knowledge and experience. As a global organisation the breadth of our expertise is unrivalled.

We make sure our clients benefit from it by understanding their goals and bringing in the right people at the right time.

We’re passionate about property. We aim to be progressive in our thinking. And above all, we are consummately professional in everything we do.

Knight Frank LLP is the leading independent global residential and commercial property consultancy.

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Client Service Principles

Join up the dots

Reputation is everything The way we meet our clients’ needs today earns us their trust in the future. By making sure day-to-day transactions are brilliantly executed, and clients become genuine business partners relationships flourish.

Presentation to Aprirose April 2016

Accessing Global Capital The key is to understand the dynamic and capital drivers of each nationality, e.g. wealth preservation, income distribution, Sharia compliance. Knight Frank has a unique ability to access global capital through simple direct links with a network of key overseas offices, coordinated from London.

Historically Knight Frank has always had very strong contacts with Super High Net Worth Individuals from its luxury global residential business.

Knight Frank is the number one ‘go-to’ firm for accessing International Capital.

We have a dedicated Global Wealth Desk which works alongside out residential ‘Business Intelligence Unit’ to identify and target High Net Worth Individuals, wealth managers, private banks and family offices.

Recent examples include:

Knight Frank has very strong relationships with the private banks including a JV with National Bank of Abu Dhabi and our market-leading “Wealth Report”. Through the annual publication of this report, we have been able to track equity from the most aggressive emerging markets and would seek to target potential buyers from these countries.

Mapletree (Singapore) – sold the Diageo Building, Park Royal to Mapletree, a new entry to the South East market introduced

by KF’s international investment team.

PNB Malaysia - acquired Linklaters HQ and sold KanAm London portfolio.

EPF Malaysia - advised on the Central London acquisition at 11 St James’ Square.

Chinese Estates - acquired Goldman Sachs HQ. Wilmar International – sale of Aviva Tower.

NPS Korea (Rockspring) - retained mandate in Central London.

China Investment Corporation – sold Winchester House on behalf of KanAm. COLI – sold 1 Finsbury Circus on behalf of Invesco.

New entrants are appearing every month and the best prices invariably are achieved by selling to “new” international equity.

If the eventual purchaser is domestic, international targeting will provide healthy competition.

European

Investment (London)

Investment

Americas

International Desk

Asia Pacific

(New York)

(London)

(Singapore)

Investment

Middle East & Africa Investment (Abu Dhabi)

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Presentation to Aprirose April 2016

Accessing Global Capital Knight Frank Global Wealth has unique access to Super High Net Worth Individuals, Sovereigns and family offices due to an unparalleled track record of selling trophy residential assets, these include: • The majority of the ruling Royal families in the Middle East

Private Global Investors

• Over 90% of all Russian billionaires.

Knight Frank Global Wealth Database - over 1,200 individuals each with a net worth of over £100m.

and Asia (Malaysia and Brunei).

• 575 past clients who are billionaires and property investors • Detailed research on the ‘new’ billionaires who have a track

Knight Frank have London located overseas desks dedicated to maximising cross border capital flows - these involve Indian, Chinese, Russian, Middle East and Far East desks.

• Direct 1:1 placement – we have the ability to “place” assets

Marketing directly to these investors will generate maximum global attention and command a premium price.

with whom we have direct personal relationships. record of property investment.

directly via the wider Knight Frank partnership.

• A select group of “Ambassadors” including senior politicians / diplomats.

• No other firm has this structure and high level of access.

Global Representation

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Wider Target Market

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Knight Frank Working Examples Crickhowell House, Cardiff The team provided advice to Aprirose on this Government let asset in Cardiff Bay. • Aprirose instructed Knight Frank’s Cardiff and London’s offices to formally market the property in September 2013.

• Knight Frank created a high quality marketing brochure that

presented the property as a prime long income asset in the regional office market.

• Knight Frank presented directly to each party on our ‘A-list’ (Phase 1, targeted marketing campaign) and then to any other interested parties.

• All viewings at the property were accompanied.

• After two rounds of competitive bidding we concluded the sale, achieving a sale to a new entrant to the market the Wazzan Family from Kuwait at a premium to quoting:

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£41,500,000 / 5.25% NIY

Reasons for an excellent result: • Correct reading of market sentiment, quoting ‘soft’ to command strong interest.

• Quality marketing material.

• Personalised presentations demonstrating the rationale for investing.

• International reach enabled us to uncover new entrant buyer.

• Quantum of other similar sales gave us excellent market knowledge and under bidders lists.

Knight Frank Working Examples Spectrum, Bristol The team provided advice to West Register on this multi-let asset in Bristol town centre: • West Register instructed Knight Frank’s Bristol and London offices to formally market the property in April 2015.

• Knight Frank created a high quality marketing brochure that

presented the property as a prime multi-let asset in Bristol town centre.

• Knight Frank presented directly to each party on our ‘A-list’ (Phase 1, targeted marketing campaign) and then to any other interested parties.

Reasons for an excellent result: • Correct reading of market sentiment, quoting ‘soft’ to command strong interest.

• Quality marketing material.

• Personalised presentations demonstrating the rationale for investing.

• Knew purchaser well which allowed for a smooth transaction process.

• Accompanied inspections at all times.

• All viewings at the property were accompanied.

• After two rounds of competitive bidding we concluded the sale, achieving a sale to Maddox Property Partners at a considerable premium to quoting:

£14,100,000 / 4.35% NIY

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+44 20 7629 8171

The Knight Frank network consists of Knight Frank LLP and its direct subsidiaries which provide services in the UK and an international network of separate and independent entities or practices providing services internationally.

Presentation Brochure Design • The Design Workshop • designworkshop.co.uk

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