Bezier, London EC2

October 2010

Why London?

Why London?

– One of the Worlds great cities

– World financial centre

– Sophisticated, dynamic and safe

– Gateway to Europe and the World

– Easy to buy, sell and let

– Welcomes international buyers

Why London?

University City

– Highest concentration of

universities in the world

– 40 Universities / institutes

of higher education

– Over 400,000 students

– Worlds top colleges

University College London (4)

Imperial College (5)

London School of Economics (6)

Kings College (23)

Why London?

One of the World’s

great medical centre’s– Over 50 hospitals

– Harley Street consultants

– Worlds top hospitals

Great Ormond Street

Royal London Infirmary

Guys Hospital

Moorfield Eye Hospital

– Top Global financial centre

– 320,000 people employed

– Largest concentration of

‘high earners’

– Centre of the legal profession

Why London?

‘The Square Mile’

Why London now?

– Safe haven status

– Lack of good quality stock

Why London now?

Why London now?

Prices have stabilised

UK house price forecastSource: Knight Frank Residential Research

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

2007 2008 2009 2010 (f) 2011 (f) 2012 (f) 2013 (f) 2014 (f)

UK

Greater London

Prime central London

Why London now?

Strong rental demand

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,00019

90

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

New households

Completions

New households (forecast)

Completions (forecast)

Cumulative households and completions, LondonSource: Communities & Local Government (CLG)

Why London now?

Strong rental demand

YieldsSource: Knight Frank Residential Research

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

Mar

-95

Sep

-95

Mar

-96

Sep

-96

Mar

-97

Sep

-97

Mar

-98

Sep

-98

Mar

-99

Sep

-99

Mar

-00

Sep

-00

Mar

-01

Sep

-01

Mar

-02

Sep

-02

Mar

-03

Sep

-03

Mar

-04

Sep

-04

Mar

-05

Sep

-05

Mar

-06

Sep

-06

Mar

-07

Sep

-07

Mar

-08

Sep

-08

Mar

-09

Sep

-09

Mar

-10

Prime Central London Residential

City Offices

West End offices

Why London now?

Solid investment opportunity

Historic total returns by assetSource: Investment Property Databank & Knight Frank Residential Research

-10%

-5%

0%

5%

10%

15%

20%

All Property Retailproperty

Officeproperty

Industrialproperty

Equities Gilts Inflation UKresidential

PrimeCentralLondon

residential

Annualised over 3 years Annualised over 5 years Annualised over 10 years Annualised over 20 years

Source: Knight Frank Residential Research, IPD

Why London now?

Solid investment opportunity

Historic patterns of total returns (national level)Source: Investment Property Databank

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%19

81

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Retail Office Industrial Residential

Why London now?

Olympic effect

Potential impact of the Olympics on house price growthSource: NSW Department of Housing, the Real Estate Institute of Australia, the Bank of Greece, the US Office of Federal Housing Enterprise Oversight, the Bank of Spain, the Centre d'Estudis Olympic

0%

20%

40%

60%

80%

100%

120%

140%

1992 Barcelona 1996 Atlanta 2000 Sydney 2004 Athens Average

5 yr % increase host city 5 yr % increase host nation

Bezier London, EC2

Thank you