1. UK residential property Nov 2009

2. Contents Long term trends The recession Recovery Our approach

3. The ethical, green, UK student fund 70%+ of the world’s bagpipes 70%+ of the world’s oil Edinburgh London

4. The worlds largest festival 1,000 Castles Europe’s 3 rd largest financial centre A bit about Scotland… 500 golf courses700 islands

5. UK property BristolGlasgowLiverpool Newcastle ManchesterDundeeEdinburgh Nottingham

6. Long term trends

7. Long term trends – ownership. Residential: The rental market remains small The Gov. aims to encourage its growth

8. Long term trends – size and ownership. Residential a very large asset class, with low UK Institutional participation

9. Above: Residential consistently outperforms other asset classes Below: Residential has been less volatile in a downturn Long term trends – residential performance UK asset performance to December 2008

10. Long term trends – price growth. Residential: London and UK move in the same way Source: Halifax and Government

11. Long term trends – price growth. Residential: Long term stable growth and low volatility Source: Halifax and Government

12. Recession

13. Recession – overall impact (peak to trough ) -40% Shares Commercial Property All Residential Property Gm Residential -15% -45% -11%

14. Recession – city by city performance Gm has outperformed the market by 30% Land RegistryGm FundsDiff. Edinburgh -10%-6% + 4% Glasgow -13%-7% + 6% Stirling -11%-7% + 4% Dundee -11%-4% + 7% Newcastle -13%-8% + 5% Nottingham -14%-15%-1% Birmingham -14%-12% + 2% Bristol -19%-13% + 6% Liverpool -13%-12% + 1% Salford -15%-14% + 1% Manchester -15%-18%-3% Grand total -15%-11%

15. Recession – recent international price trends

16. Recession – recent price trends Prices have risen for 7 consecutive months

17. Recession – a positive impact on the student rental market +10% Large / growing student market 175,000 students turned away! Shortage of student housing

18. Recovery – 4 stages ‘House prices have risen for the past 7 months’ – Nationwide

19. Headlines

20. Our approach

21. What we do Property funds We outperform the market by 30% Private Clients ‘One stop solution’ Source Renovate Furnish Let / manage

22. About Grant Management Worldwide client base 12 UK cities £500m / 1,850 prop. under man. Lloyds Banking Group own 20% ARLA members / code of practice

23. Traditional over new build? Shortage of supply Better locations Higher yields 2% Gross Yields 7% 4%

24. How we add value Buying well Price, location Investment model Renovations On time – 8 weeks On budget - fixed price Management Safety/ compliance Occupancy – 95%

25. BeforeAfterDiff. Value£215k£250k+ £35K Rent pcm £788£1,400+ £612 Yield4.4%7.6% + 72% Case Study – adding value 2 (MD) Summerhall Square, Newington, Edinburgh, EH9 1QD Bought: Mar 2009 Renovation Costs: £32,475

26. Our homes

27. The student market  Large university cities  Secure income (Joint leases/guarantors)  Universities “recession proof” Around 75% of our properties are let to students

28. Residential is a good asset class Gm offers a great solution for private clients and funds Student Market is large and growing Great time to buy Summary

29. 1.To help new clients to enter the market 2.To build partnerships 3.To partner fund managers and sovereign wealth funds CastlesBanksFunds Our aims

30. Long term trends The recession Recovery Our approach

31. 10 second tour of scotland Golf Monsters Castles