WANDSWORTH TOWN CENTRE Wandsworth, London

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1 Wandsworth, London

2 The Wandsworth Investment Case Minutes away from Central London High demand 33% of all London transactions by monetary value made in Wandsworth, Kensington, Westminster, Camden & Richmond (Savills Q1 2012) Wandsworth home prices up 350% since 1995 (Source: Land Registry) Low development delivery with strong transaction record (slide 4) Dramatically improved physical environment, anchored by: One of the largest, safest and greenest boroughs within inner London 1bn of private investment in Wandsworth Centre

3 Feb-07 May-07 Aug-07 Nov-07 Feb-08 May-08 Aug-08 Nov-08 Feb-09 May-09 Aug-09 Nov-09 Feb-10 May-10 Aug-10 Nov-10 Feb-11 May-11 Aug-11 Nov-11 Feb-12 Wandsworth 5 year Performance Comparison (Feb 07=100) Wandsworth 70% mortgage All London - 70% mortgage Wandsworth - Residential Prices All London - Unleveraged 56% 39% % % 75 Source: Land Registry

4 Wandsworth - Recovery in House Building and Market Activity Status - At -60% housing development level vs 05/08 & +55% transaction levels vs peak Conclusion Low delivery, stronger market Source: Savills residential property focus Q2 2012

5 Wandsworth Town Centre Investment Case Exclusivity: Off market launch exclusive to IPG clients Desirability: Regarded as one of the top 5 London Boroughs (Savills Q1 2012) Developer: Mount Anvil is an extremely well regarded central London developer, who create a high spec product Situation: Integrated in the major Wandsworth regeneration scheme Capital Growth Potential: Wandsworth regeneration expected to drive demand

6 Wandsworth Regeneration High quality investments all set to make Wandsworth a major retail and leisure destination Examples: Southside shopping centre Phase 1,2 & 3-48m refurbishment Ram Brewery site redevelopment Proposal for 450 apartments with 100,000 sqft of retail and commercial space Wandsworth Business Village 108,000 sqft business centre with retail and café/restaurants

7 Southside Shopping Centre refurb - 48m Regeneration Schemes Ram Brewery dev 22 acre site Sainsbury s refurb & hotel/retail space Ipsus Completed residential/commercial scheme WANDSWORTH TOWN CENTRE Jessica House 42,000 sqft office re-development Wandsworth Business Village development - 80m *Sites above included completed schemes along with approved schemes and pipeline schemes Un-numbered highlighted area South Thames Collage - 100m was invested in 2009 to new buildings & facilities

8 Wandsworth Town Centre: Block E Underwrite of 19 handpicked units in Block E All units have outside space & views towards King George s Park or internal gardens All units are 1 bedroom apartments from the 3 rd 7 th floor. No Affordable in Block E. Prices from 270, , sq ft Average price psf Completion date: August 2013 Yields of 5.20% %

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10 Block D Floorplans Block E IPG Selected units Highlighted in red

11 Wandsworth CGIs Internal Landscaped Gardens

12 Wandsworth CGIs Block D & E

13 Investor Cash-Flow Snapshot IPG Base Case assumes 70% mortgage, 5% pa rental growth E5-PF05 Purchase price GBP 280,000 (1 bed, 5 th Floor) Sale price in year 5 GBP 340,342 Base Case IRR 13% per annum (post tax). Maximum cash outlay over 5 year period GBP 105,732* Year One (GBP 41,650) Year Two (GBP 63,048) Year Three (GBP 789) Year Four (GBP 244) Year Five (sale) GBP 160,395 Purchase Price 280,000 Est. Sales Price 340,342 If rents increase by 10% per annum, IRR increases to 26.7% per annum. *Based on anticipated rent of GBP 1,300 mth for Wandsworth unit E5-PF05, cash outlay may vary by unit

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