Wembley Park 15 April 2014

Quintain Estates and Development PLC

Agenda
Wembley Park Strategy Destination Wembley Development Milestones London Designer Outlet Next Residential Phase

Quintain Estates and Development PLC

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Components of Urban Regeneration Success

1. Location and infrastructure

Proximity to existing neighbourhoods Transport links / accessibility (public) Parks, river, attractions Branding / market positioning Activity / footfall Association and loyalty

Creation of virtuous circle

2. Identity and vitality

3. Entertainment, recreation and living

A great place to visit A great place to shop A great place to live

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Investment Rationale
M1
Sub-urban

M11

M40

Wembley

Urban

M25 Kings Cross

Prime

M4

Western value corridor Earls Court Nine Elms

Super Prime Prime

Stratford Eastern value corridor Greenwich Peninsula

Urban

M3 M25
Sub-urban

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Wembley Park
Market Outlook in Wider London Context 50,000 new London homes required per annum to support net immigration
24,000 built in 2013: shortfall of 26,000 per annum Demand Highest in the lower-mainstream and mid-mainstream brackets
Lower-Mainstream Demand: 2,500 p.a. owner-occupied 10,500 p.a. PRS Shortfall: 7,500 homes p.a. Mid-Mainstream Demand: 2,500 p.a. owneroccupied 10,500 p.a. PRS Shortfall: 3,500 homes p.a.

Supply Focused on wealthy, equity-rich buyers in upper-mainstream and prime brackets

Upper Mainstream Demand: 3,500 p.a. owner-occupied 2,500 p.a. PRS Shortfall: 3,000 homes p.a. New Prime Demand: 2,500 p.a. owneroccupied 500 p.a. PRS No shortfall

Satisfying demand at this price point corresponds to TfL Zones 3-6 PRS at this price point is viable:
Wembley Park appeals to PRS tenants at this rental level yield attractive to PRS investors 6

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Wembley Masterplan
Consented

Million sq ft

53%
4.52m sq ft

Completed

17%
1.45m sq ft

16%
1.36m sq ft

14%
1.18m sq ft

520 Homes

Arena, hotels & LDO

Student

Residential

Retail / leisure Completed

Other Consented

Offices

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Excellent Infrastructure

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Development Phasing

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2005: Redundant Industrial Land

2006: Renovated Wembley Arena

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2007: New Wembley Stadium and Arena Square

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2007: Redevelopment Site

2008-2010: Forum House & Quadrant Court (residential)

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2012: Apt Student Living

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2012: London Wembley Hilton

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2012: London Designer Outlet Construction Site

2013: Brent Civic Centre

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2013: London Designer Outlet

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London Designer Outlet

Major new retail and leisure centre Planning permission secured in 2008 Anchors secured in 2011 Opened 24 October 2013 87% let* 1 million visitors in first 11 weeks Easter London-wide launch

*1st year base rent exchanged or in solicitors hands

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London Designer Outlet

9 screen Cineworld

Cinema

20 restaurant units

Restaurants & Bars

80 retail units over two levels

Upper Retail Level

350,000 sq ft development (GEA)

Lower Retail Level

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London Designer Outlet: Destination Shopping

A day out destination for some great bargain hunting and good food in a fun, exciting yet relaxed atmosphere and environment
Easy to get to: unparalleled access by road, rail and Underground Londons only designer outlet centre

An exciting, cosmopolitan, mixed-use lifestyle destination

Only 20 minutes from Londons West End

Located in a vibrant, affluent, urban and cosmopolitan catchment

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Leasing Strategy
Phase 1: Put wish list anchors in place as magnet for local footfall Phase 2: Assemble mainstream F&B brands to create rounded experience Phase 3: Attract fashion and lifestyle labels using footfall from anchors and location
Phase 1: anchors in place Phase 2: F&B brands secured Phase 3: fashion & lifestyle

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Outlet Centre Rent Review Mechanics

Cinema and restaurants predominantly on standard institutional leases Retail leases typically comprise base and turnover elements Base rent on the retail units is increased annually (upwards only) to 80% of the previous years combined rent Mechanism allows for rapid rental growth when the centre performs well

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Outlet Leasing Patterns

500%

17 years

350% 400% 360% 225%

17 years 14 years 11 years

psf

19 years

Opened 1993 Mainstream

Opened 1995 Premium

Increase in rent since opening

Sources: Realm and CBRE

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London Designer Outlet: Target Customers

International London Tourists: 15 million people peoe)

Consumers within one hour: 10.4 million people

Wembley event goers: 4 million people

Local consumers: 0.7 million people

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Hello Wembley: an International Icon

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Developing a Brand and Product Hierarchy

Who are we targeting?

Young-minded urban aspirational

What are we creating?

Destination Wembley

How will we achieve this?

Londons newest and most exciting neighbourhood

Place Architecture Public realm Art Landscape

Product Price & package Apartment design Product mix Presentation After-sales Value

People Art & culture Community Events Markets Retail mix

Service Customers Residents Tenants

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Wembley Partners

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Transforming Footfall

4 million event-goers

8-12 million people attending events, shopping and spending leisure time at Wembley

2007
Operating Income / Investment Income

2014
Investment Income / Operating Income

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Transforming Wembley Park

The Home of Footfall

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Wembley Park Positioning

Big experience + human scale

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2014: Wembley Park Boulevard

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Revitalised Wembley Park

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2014: Next Residential Phase

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Residential Quarter

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Residential Quarter
1,300 homes next to Wembley Park Station Detailed planning permission for 475 homes
seven buildings around an acre of green space 5-16 storeys 90% private homes

Marketing staring in Q2 2014 Construction starting Summer 2014

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Neighbourhood Square

Wedding Gardens

Wembley Stadium

Hilton Hotel

Wembley Arena

70 shops at LDO

15 cafes & restaurants

9-screen cinema

All just 20 minutes from Bond Street, 30 minutes from Heathrow

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Destination Wembley

Stadium

Arena

4* Hotel

Brent Civic Centre

Vibrant entertainment

London Designer Outlet

Exceptional footfall
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Wembley Park residential

New green space

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