Private and Confidential URBAN RE INVESTING IN URBAN INFILL IN LONDON AND SOUTH-EAST ENGLAND Need to add “Capital at risk etc” on every page

Private and Confidential 159 Acre Lane: Executive Summary Acre Lane is a 0.7 acre freehold site near to Clapham Common and Clapham North underground stations. The site is derelict and is part of an Industrial Estate with restrictions around what kind of property can be build on it. The current owner has sought, and failed to date, to get planning permission for any residential units. We have established a good and helpful dialogue with the local council planning case officer. We are purchasing the site for £5.75m as we believe the economics of a negotiated balanced planning application are compelling and the planning downside is limited. We seek a single investor to take 90% of the investment. The following pages provide some more details on: The Site, Relevant History, Opportunity and Economics.

Private and Confidential 159 Acre Lane: The Site 159 Acre Lane is a 0.7 acre, freehold development site with a footplate of 29,340 sqft (2,726 sq mtrs). It is situated on a main arterial road (A2217), and 700mtrs from Clapham Common and 600mtrs from Clapham North (12 minutes to Bank) underground station. It is located on the edge of (but within) the Ellerslie Industrial Estate (a designated KIBA) and adjacent to established residential areas. It has excellent road links in and out of Central London and excellent transport links for people who live and work in this area. 3

Private and Confidential 159 Acre Lane: Relevant History The site has lain derelict for the last 5 years, largely because previous owners have not been able to find buyers wanting to develop commercial only schemes that comply with the KIBA (Key Industrial and Business Area) requirements. The Council are supportive of the site being “brought back into use”. The current owner has spent the last 18mths progressing a scheme for a 6 th form college and 51 apartments that is not supported by the Lambeth Council, local Councillors, or local residents. There is a planning application outstanding that looks very likely to be declined. We have established open and constructive dialogue with the Council Planning case officer. This has given us a good understanding of the key points for the council. 4

Private and Confidential 159 Acre Lane: The Opportunity We are purchasing the site for £5.75m. Additional costs will increase the full purchase cost to not more than £6.5m. Our base case is for 75% commercial, with worst case at 100% and best case at 50%. The remainder will be a mix of affordable residential and private residential. On the basis of GIA of 25,000 sq ft per storey, with 6 storeys (4 above ground) as the base case, and 8 storeys (6 above ground) as the best case. This would yield a best case NIA between 150,000 and 175,000 and an expected NIA outcome between 100,000 and 125,000 Although the exit strategy for commercial is likely to be complex and longer than for residential, we strongly believe that a successful application will have commercial use as the cornerstone, with upper storeys of residential providing the potential for “icing on the cake”. Urban Re will take 10% of the investment. We seek a single investor to take the 90% of the investment. Urban Re will take a share of any investor profits over and above an agreed hurdle rate. 5

Private and Confidential 159 Acre Lane: The Economics The headline economics are shown to the right The main risks include: 1. Planning permission is not forthcoming. Mitigating actions: We will continue to maintain strong dialogue with the council and will make a pre-application in order to gain formal feedback from the council ahead of any planning application. 2. A downturn in commercial or residential property values. Mitigating actions: While we will seek to minimise the hold period for the investment, this is a risk that this venture takes while holding the site. The balancing factor is the upside from any increase in value. 3. Inability to sell the property, post planning or post build. Mitigating actions: [ tbc ]. There are also other risks that can impact the economics, albeit to a smaller degree. 6

Private and Confidential APPENDIX 7

Private and Confidential Appendix 1 – Aerial view of site 8

Private and Confidential Appendix 2 – Excellent road and rail links 9

Private and Confidential Appendix 2 – 10

Private and Confidential Appendix 2 – 11