The story so far. Regent Street, St James s and beyond

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1 The story so far Regent Street, St James s and beyond

2 The Crown Estate Our Origins Since 1760, the annual surplus generated by The Crown Estate has been paid to the Treasury for the benefit of the nation Core values - commercialism, integrity and stewardship We have two high level financial objectives to meet pre-agreed revenue targets with the Treasury and to outperform our IPD benchmark A diverse portfolio 8 billion actively managed property portfolio 2 billion of revenue delivered to the Treasury over the past 10 years 240 million paid to the Treasury in 2011/12 Net revenue surplus (profit) growth of 40% over the past 10 years

3 Urban portfolio Valued at over 5.4 billion Annual revenue of over 225 million 20 million sq ft,of office, retail, residential, and industrial space throughout the UK Three principal portfolios: Regent Street, St James s and Regional 100% ownership of Regent Street s freehold and managed on behalf of the Regent Street partnership Ownership of circa 50% of freehold property in St James s A Regional portfolio including over 1 billion of prime retail assets Energy and Infrastructure portfolio Valued at over 726 million Generates nearly 55.6 million in revenue each year Includes virtually entire seabed out to 12 nautical miles By 2020 a significant proportion of the UK s electricity resources are expected to come from marine renewable energy resources on The Crown Estate seabed Rural and Coastal portfolio Valued at over 1.1 billion Generates an annual revenue of over 25.9 million Comprises 360, 000 acres of rural land and 55% of the foreshore Assets include agricultural, mineral, forestry, ports and harbours Provides strategic land opportunities Windsor Estate 7.3 million revenue in 2011/12 6,300 hectares 1.5 million visitors each year Award winning Savill Building Home to the world famous racecourses at Ascot The majority of the Great Park is designated as a site of special scientific interest (SSSI)

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5 Investment strategy Principal themes Core sectors Central London: centred on Regent Street and St James s development a key driver Regional portfolio - dominant retail focus Energy and Infrastructure portfolio driven by offshore renewable activities Rural and Coastal portfolio capital appreciation/realisation Three key themes Rebalance the portfolio to focus on our key sectors Provide adequate working capital for the business to reinvest in the portfolio Continue to develop our business model towards a modern asset management style

6 MAJOR PARTNERSHIPS We have entered into a number of major partnerships in recent years. These include: Norges Bank Investment Management (NBIM) - 25% stake in Regent Street The Healthcare of Ontario Pension Plan (HOOPP) - 50/50 partnership to develop the St James s Gateway project Land Securities - 50/50 partnerships covering shopping centres in Oxford and Exeter British Land - 50/50 partnership to own and manage a portfolio of major retail parks Aviva - 50/50 partnership to own and manage Crown Point Retail Park, Leeds

7 Core Central London 9 million sq ft Valued at 4 billion Regent Street and St James s 14 retail parks across the UK Nearly 3 million sq ft Valued at 1 billion Three shopping centres 900,000 sq ft Valued at 247 million Industrial and regional offices 2.8 million sq ft Valued at 295 million

8 Core London holdings Regent Street Regent Street Partnership - 75% The Crown Estate, 25% Norges Bank Investment Management (NBIM) Managed by The Crown Estate Revenue of 85 million and estimated Rental value of 125 million 1.5 million sq ft of prime retail and restaurant space 1.8 million sq ft of offices 700,000 sq ft of other uses

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10 Core London holdings St James s Circa 50% of the freehold property in St James s Valued at 1.1 billion Revenue of 43 million 500,000 sq ft of prime retail and restaurant space 3.2 million sq ft of offices St James s Gateway development - 50/50 Partnership with Healthcare of Ontario Pension Plan (HOOPP)

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12 The Crown Estate Development To safely deliver viable and sustainable development projects to enhance the total return within each portfolio, in line with The Crown Estate Investment Strategy. To become a Centre of Excellence within The Crown Estate for all development activities from feasibility through planning, delivery and on-going maintenance.

13 Quadrant 3 Direct development by The Crown Estate Mixed use building of 300,000 sq ft 175m Construction Cost - Construction Management with Not to Exceed Price (NTEP) Challenging location Innovative servicing solution - Central Energy Centre Delivered 4 months early and within budget

14 Quadrant 3

15 Quadrant 3 Place Making Integrated high quality architecture Maintained control over delivery of the public realm Removal of servicing traffic, cars and taxi s More Pedestrian friendly spaces Activated facades at ground floor Servicing tunnel between Q3 and Q1 Off street loading facility 230 bike bays & first class shower/changing facilities

16 St James s Gateway & 27 Regent Partnership with the Healthcare of Ontario Pension Plan (50/50) Mixed use building of 100,000 sq ft Construction Cost 50m Construction Management with NTEP Challenging location delivery logistics Olympic Route servicing restrictions Insolvency challenges

17 St James s Gateway & 27 Regent

18 St James s Gateway & 27 Regent

19 Blocks W4 and W5 (South), Regent Street Partnership with Norges Bank (75/25) 235,000 sq ft mixed use scheme 100m Construction Cost Fixed Price Design & Build 2 separate buildings phased delivery Strategic approach planning and delivery Challenging location logistics Ground Conditions listed vaults

20 Block W4, Regent Street Offices over 6 levels - 100,000 sq ft Retail over 3 levels - 40,000 sq ft Residential offsite provision agreed with WCC Start on site Q Practical Completion Q Construction Cost of 50m

21 New Burlington Street

22 Block W5 (South), Regent Street Offices over 6 levels - 75,000 sq ft Retail over 3 levels - 30,000 sq ft Residential offsite provision agreed with WCC Start on site Q Practical Completion Q Construction Cost of 50m

23 Regent Street Block 180,000 sq ft offices 40,000 sq ft retail 7 retail units 7 office floors 20,000 sq ft to 25,000 sq ft St James s Market Haymarket Block 80,000 sq ft offices 15,000 sq ft retail/restaurants 5 retail units 7 office floors 7,000 sq ft to 10,000 sq ft

24 St James s Market a new place for London

25 The bits between the buildings The Crown Estate has delivered eight major public realm improvements, including:- The internationally acclaimed Oxford Circus diagonal crossing The pedestrianisation of Swallow Street, New Burlington Place, Heddon Street and Glasshouse Street The reinstatement of two way traffic flows around Piccadilly and St James s Further five major schemes identified