AI assistant
GOODMAN GROUP — Investor Presentation 2006
Apr 5, 2006
64998_rns_2006-04-05_d8e843b8-466a-4c15-8b29-559e8b925486.pdf
Investor Presentation
Open in viewerOpens in your device viewer
Macquarie Goodman

6 April 2006
The Manager Company Notices Section Australian Stock Exchange Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2000
Dear Sir
Macquarie Goodman Group ("MGQ")
We wish to announce the contents of a presentation to be provided to investors who are currently on an MGQ roadshow in the United Kingdom.
Please do not hesitate to contact the undersigned if you require further information.
Yours faithfully
Carolyn Scobie Company Secretary
Level 10, 60 Castlereagh Street Sydney NSW 2000 GPQ Box 4703 Sydney NSW 2001
+61 2 9230 7400 Telephone Facsimile +61 2 9230 7444 [email protected] www.macquariegoodman.com
Arlington
UK Investor Tour
April 2006
Adeeper underständing intongn teitenhe

Contents
Ž
Page
| Section 1 – Itinerary | 3 | |
|---|---|---|
| Section 2 – Management Presentations | 6 | |
| UK/Europe Property Market Overview ₩ Arlington Overview 垂 The European Logistics Market |
Andrew Smith Jeff Pulsford Bob Reidsma Nazih Chentouf Peter Davies |
7 36 53 57 67 |
| Investment Services Overview ● Property Services Overview ● Arlington Growth Strategy ₩ Arlington European Business Parks Fund Arlington Development Services (UK) |
Jon Austen Charles Shaw Rob Wilkinson Nick Murray Jim Johnston |
72 78 89 96 105 |
| Section 3 – Property Tour Presentations | 115 | |
| Arlington Business Park (Reading) ● Uxbridge Business Park Hatfield Business Park Oxford Business Park |
117 119 121 123. |
|
| Section 4 – Arlington European Logistics Snapshot | 125. |

Section 1
linerary
Adeeper miderstanding mangh Isleman

Section 2
Management Presentations
Adependings and residence

UK/Europe Property Market
Overview
Andrew Smith Head of Investment Strategy

Agenda
- Arlington's research capability ●
- Property market characteristics ●
- Prospects ●

Strong research capability
Sources
- Economic consultancies
- Statistical agencies
- Einancial market databases
- On-line property data ¢. convices
- Agency and broker network .
- Market intelligence ÷.
- Technical and trade press Ħ
- Property consultancies .
- Bespoke research projects ×.
- Occupier research
×
O
Academic research

Research activities
- Economic house views
- Market analysis ₩
- National/sector forecasts
- Local area forecasts
- Portfolio analysis Investment strategy æ
- Asset specific analysis $\hat{\mathbf{w}}$
- Analysis of trading potential
Applications
- Asset allocation advice
- Benchmarking
- Portfolio structuring
- Stock selection decisions
.
- Hold / sell analysis
- Asset enhancement ×
- Investor support
Why our research is different
| investment considerations | X | |||
|---|---|---|---|---|
| Standard lease. Yes | Lease terms | Transfer lax: 6% | Putchase costs | - 187 |
| Typical lease lesgin 5 to 10 years. | Reviewshindexation: Ahmual indexation to coal of living index. | Agent's fees, 1:25% to 2% | à | |
| Rent psyable: Quarterly | Candiord's fiabhities: Structural repairs: insurance | Legal fees: 0.25% to 0.6%. | سي الله عليه المستوفي |
| Total return | 2004 ,,,,,,,,,,,, |
2005 | 2006 | 2007 | 2003 | 2009 | 3 years | Assualised 5 years |
2064 | Yield 2609 |
Yierd still |
Rolling pricing 3 years lions September 2005 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Setai: eartic All property Europe |
19.0 5.9 7.2 . ra sili |
9.2 32.7 2.9 19.8 |
7.6 6.D 8.8 63 |
1999 7.5 .86 $\cdots$ 9.0 9,4 |
., ٠. 7.9 ×. 71 Y.S. 8.8 27 |
8.9 Ê.S 9.5 75 |
8.2 20.1 8.8 9.2 |
6.3 ×. $\cdots$ 8.9 8.7 8.5 |
6.1 7.0 6.9 5.6 |
6.3 7.G 5.0 S 4 |
$-0.1$ 0.0 $-0.9$ $-0.2$ |
Overpriced Overpliced Past value |
| Rental prowth | 2004 | 2005 | 2006 | 2007 | 2003 | 2809 | 3 years | beellepan 5 years |
Net: gross income ratios | |||
| Setai: eento All property Earope |
12 $0$ $t$ -12.2 0.3 |
4.5 $-1.9$ 1.7 12 |
$\overline{\phantom{a}}$ 1.3 0.2 1.6. 2.7 |
1.2 1.2 b.e 2.2 |
0.6 2.1 2.2 26 |
0.5 3.5 1.5 2.6 |
2.3 $-0.5$ 1.3 1.7 |
٠. 1.6 0.9 1.3 2.1 |
Retail Office |
99% 86% |
For falscriptions, manites modellaring the European average by more than 1% annit etc. and the state price engineering by 1% stort are to him individues in serie Yout need of were void 25 for anti-stoker in boxt, exist bludights, your falls of more than 25to, and presidentially stable visits, we shown in values Massets with lettin growth more than 190 bp accus for Burnpear and onget to park. Bown artic programment in the Due of the plane of the more than Office markets are station in yable
| Total return i% pa) |
Yield (%) | Rentst values | Rental cycle Indicator | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 3 years. | 5 years | Current | Five yenzé |
Charigé | Cerreix A6 pare pa) |
6 years (6 pont pn; |
3 year grooth (26.78) |
5 year azowih (% pn) |
Peaking Stowing ® |
Troughing | Improving, | |
| Office | ||||||||||||
| Amsterdam | 6.2 | 5.7 | 6.5 | 6.3 | $-0.2$ | 325 | 330 | $-0.2$ | 0.3 | $\ddot{\phantom{0}}$ | ||
| Eindhoven | 6.6 | 7.6 | 7.3 | 7.1 | $-6.2$ | 140 | 143 | $-0.4$ | 6.5 | ٠ | ||
| Rotterdam | 7.0 | 7.8 | 7.0 | 6.8 | $-0.2$ | \$75 | 183 | 0.3 | 0.9 | k. | ||
| The Hagoe | 7.9 | 12 | 6.7 | 6.5 | $-6.2$ | 180 | 200 | 85 | 1.0 | ٠ | ||
| Ofreent | 7.5 | 81 | 70 | 6.8 | $-0.2$ | \$78 | 189 | 08 | 1 2 | $\ddot{\phantom{0}}$ | ||
| Retail | ||||||||||||
| Amsterdam | 6.6 | 5.6 | 5.9 | 4.8 | $-0.2$ | \$,540 | 1,538 | 15 | 1.2 | |||
| Eindhoven | 6.6 | 5.6 | 5.8 | 5.7 | $-0.3$ | 1.220 | 1.291 | 1.5 | 1.5 | |||
| Rotterdam | 7.4 | 5.7 | 5.5 | 5.3 | $-0.2$ | \$,296 | 1.349 | 13 | 0.9 | ٠ | ||
| The Hague | 7.7 | 6.7 | 5.9 | 5.7 | $-0.2$ | 1 200 | 1.248 | 1.4 | 6.8 | |||
| Ofrecht | 7.0 | 6 S | 5.5 | 5.2 | $-0.3$ | \$,190 | 1,207 | 8 | 0.3 | |||
| Industrial | ||||||||||||
| Amsterdam | 8.7 | $-3.6$ | 6.9 | 6.3 | $-0.5$ | 72 | 78 | 1.6 | 1.5 | |||
| Athhere-Nimedon | 7.9 | 7.9 | 8.1 | 6.8 | $-1.3$ | 52 | 63 | 0.3 | 6.6 | ٠ | ||
| Eindhoven | 8.5 | 86 | 7.3 | 6.8 | $-0.5$ | 57 | 69 | 0.9 | 1.3 | |||
| Rotterdam | 8.4 | 8.9 | 7.2 | 6.4 | $-6.8$ | 61 | 64 | 0.9 | 1.2 | ٠ | ||
| Schibhot | \$.5 | 94 | 5.9 | 6.4 | $-0.4$ | 86 | \$6 | 2.2 | 1.9 | |||
| The Hague | 8.2 | $-3.4$ | 7.3 | 6.7 | $-6.5$ | 60 | 62 | 85 | Ĝ.B | ٠ | ||
| Strecht | 79 | 86 | 73 | 6.6 | $-0.7$ | 56 | 67 | O7 | 10 | $\cdot$ |
- Breadth and depth of coverage
- Strong 'applied' emphasis
- Understands both occupier and investor perspective
- Blend of technical and commercial expertise
- Unparalleled support for asset appraisals
- Direct and indirect property
Source: Arlington Note: Example only

n
European markets: relative sizes
Invested stock as % of European total 2004

Source: DTZ, Arlington

European property market transparency

12

Source: LaSalle, Arlington

Market characteristics

Source: Arlington

Structure of investment portfolios

Source: IPD, Arlington
Artington
K
Expanding private equity market for property

I.
Source: DTZ, Arlington
Growth in non-listed property funds



% of private equity invested in pooled vehicles

Source: DTZ; Arlington

Composition of funds by investment style

E.
Source: INREV Note: Excludes German open ended funds
The changing marketplace

18
Market convergence: prime office yields

20
Source: Arlington
Market convergence: prime industrial yields


Source: Arlington
Past performance: five years to 2005

Source: Arlington Note: Returns in local currency, unleveraged

European markets: risk and return

European property: major capital flows

- Increasing cross-border investment
- UK to continental Europe
- Continental Europeans going cross-border / global
- US, Middle Eastern and Australian money into Europe
Source: Arlington
European economic prospects

GDP growth 2006

Source: Experian, IMF, Arlington

24
Three year 'all property' returns 2006-8

26
Strongest (max. 12.1) Weakest (min 5.2) No data
Source: Arlington Note: Returns in local currency, unleveraged

Property market returns league 2006-8

Note: Returns in local currency, unleveraged

Office market issues
- Steady pick-up in office demand: availability generally falling
- New development now picking up after a lull
- Patchy market: shortages and surpluses
- Rental growth selective
28
Outsourcing remains an issue


Office performance prospects
Forecast five year performance 2006-10

Source: Arlington Note: Local currency

Property market issues: industrial / logistics
- Continued decline of western European manufacturing
- Restructuring of logistics networks
- International retailing
- EU expansion
- Asian imports
60
- Regional hubs and local distribution
- Continental European logistics will benefit from consumer pick-up
- Persistent oversupply of older industrial space



Regional attractiveness for logistics operators

61
Source: DTZ
Industrial performance prospects
Forecast five year performance 2006-10

Source: Arlington Note: Local currency

32
Retail market issues
- Improving consumer confidence in eurozone
- Retailer margins squeezed by price deflation
- Rise of multi-channel retailing
- Cross-border retailing
-6
- Southern and eastern markets playing catch-up
- Increasing investor interest

Retail performance prospects
Forecast five year performance 2006-10
B

European property's coming of age
- Pricing increasingly driven by cross-border investors
- Market transparency increasing
- Indirect property ownership is growing
- Growing range of non-listed specialist vehicles
- Spread of REITS
-53
Derivatives, swaps and other financial instruments
Gartington
Arlington
Overview
Jeff Pulsford Finance Director

Overview
E7
- Leading independent property investment management and property services business in Europe
- Full life cycle of investment management and property services
- £8.2 billion of funds under management
- Focused funds £2.3 billion
- Direct and balanced funds £5.0 billion
- Allocations to invest £0.9 billion
- Forecast (CY06) EBITDA of £19.1 million
-
Over 270 employees based in UK, France, the Netherlands and Spain
-
Customer focused partnering approach to business
- Acknowledged market leader in logistics and business parks ●
History
Delivering value for 25 years ●


Vision and Values
BC

Working, together and with our partners, to become The Benchmark' for our industry, setting the standard for customer satisfaction, quality, innovation and financial performance


Overview of the Business

Z0
Investment Services
- Focused Funds
- Balanced Funds
- Direct/Indirect $\bullet$
Development Services
- Development Management
- Project Management $\pmb{\phi}$
Property Services
- Business Services
- Net Services
Investment Services

Z.
Customers
- Corporate pension funds ۰
- Government entities 4
- International investors 0
- Charities 0
- Private funds 4
- Retail investors ●
Growth in FUM

Note: FUM decreased in Sept 05 due to asset sales
22
Source: Arlington

Development Services
Sérvices
- Site acquisition
- Town planning and masterplanning
- Development Management
- Project management
- Marketing
- Sales and leasings
Oustomers
- Arlington funds
- Third party funds
- Investors
- Corporate occupiers
- Government entities
Séclors
- Business Parks
- Science Parks
- Logistics
- Academic
- Health Service
- $Of$ $f$
- Retail
- Leisure
Hatfield Business Park
- 900 acre site
- 350 acres of development ●
- 4.2m sqft of mixed use business space
- 2000 houses and University of Herts
- Total asset value of more than £1bn


Paris Business Park
- Total site area of 185 hectares ₩
- Outline planning for 660,000 m2 ●
- Mixed uses of offices, light industrial, logistics and amenities
- Development agreement with Euro ● Disney



Z.
Shanghai Business Park
- First campus styled masterplanned ● business park
- Three phases over 60 hectares with ₩ 500,000 m2 total build area
- Major hub for R&D and Hi Tech ₩ businesses
- Partnership with Caohejing ●



Property Services
Z.
Sérvices Property management Business services Total Workplace Solutions ∰ Service desk ● IT services Broadband services
Oustomers
- Arlington funds
- Third party funds
- Corporate occupiers
- Government entities
National Air Traffic Services

- New corporate & technical centre
- 260,000 sqft
- Interim offices and timetable to dovetail with relocation programme
- Specialist fit out
Z.
"Arlington has responded to our needs and delivered on their promises. Working with their teams is achieving an excellent outcome for our Organisation
John Wallace, NATS' Group Property Manager
Future Prospects
- A global independent property investment business
- Target of £10 billion of FUM ●
- Strong organic growth in UK business ●
- European expansion ●
- Growth of focused funds
- REITS ●

The European Logistics Market
Market Fundamentals
Bob Reidsma Director; Investment Services Europe
Nazih Chentouf Director; Investment Services France
Peter Davies Director; Business Development
SI

Contents
- European Industrial/Logistics Overview
- European Industrial/Logistics Flows and Markets (to be presented by Bob Reidsma) ₩
Artington
- Logistics Flows and Key Markets
- Arlington Managed Investments
- Property Markets and Metrics (to be presented by Nazih Chentouf) ₩
- Port and Trade Volumes
- Supply and Demand Drivers ٠
- Stock Levels
- Rents and Yields
- European Logistics Fund Strategy (to be presented by Peter Davies)
- Overview of existing European Logistics Fund ₩
- Proposed New European Logistics Fund \$
- Overview $\mathbf{a}$
52
- Proposed acquisition strategy and pipeline
- Proposed European Logistics Fund characteristics
European Industrial/Logistics Flows and Markets ● (to be presented by Bob Reidsma)

European logistics flows

Arlington
SAL
Key Markets - The 'European Banana'
33

Arlington Managed Investments

Property Markets and Metrics ● (to be presented by Nazih Chentouf)

China: Europe's Industrial Plant?

Source:Eurostat

Port Volumes - Entry Gates to Europe (2005)


30
Supply – stock levels
- Strong increase in grade A stock over the last 5 years 4
- Stock of warehouses over 10,000 sqm has doubled in France, Spain and Italy
- Constrained supply
- Limited availability ●

Change in total stock of large logistics warehouses from 2000 to 2005
Source: DTZ, Arlington

Demand - Key Points
- Close to 5 million sq m of logistics warehouses have been taken up in 2005 in Europe, of which 2.5 million in France, Spain and Italy. Demand is increasingly targeting large and modern platforms enabling operators to optimize their processes
- This demand is fuelled by structural factors ●
- Increasing outsourcing of the logistics business from industrial or retailers to ∰ logisticians
- business is more European which means that the location of the platforms have to take into account the new areas of growth
Artington
...and economic factors
▓▓
- Consumer spending' growth
- Need to reduce costs for the property cost ∰
Demand - Changing Employment Trends

Source: Expirian Dec 2005

Demand - Demographic Changes
- Two main population movements ●
- 'Quality of life' favouring more friendly towns (e.g. Atlantic and Mediterranean Coasts), ∰
- 'Retiring baby boomers' There has been a strong search for properties in the South of ₩ Europe
- Most of these locations suffer from a lack of grade A logistics warehouses
- Increasing need for new buildings, especially in previously secondary ● locations

Logistics Rents - by region

Source: Arlington, Q4-2005

K.
Yield Compression
63

Source: Arlington
Logistics Markets: return forecasts
Portfolio return forecasts 2006-08


European Logistics Fund - Strategy ● (to be presented by Peter Davies)

Overview of existing European Logistics Fund CELOGIX
- A pan-European closed ended logistics property investment vehicle
- Launched in October 2000 with an initial term of 7 years
- $\in$ 397m Gross Asset Value, $\in$ 186m of equity fully committed on behalf of 13 institutional shareholders from 3 different nationalities
- Fully invested portfolio consisting of 23 properties with over 30 tenants
- Assets are based in France, Germany, Spain, Belgium and the Netherlands
- Cash returns: 3 yr annualised return to December 2005 6.8%
74.
Structured as a Dutch N.V, and as a Dutch FBI for tax purposes
Overview of proposed European Logistics Fund
- Value added investment style
- Geographic diversification -10 countries
- Launching portfolio target E300m
- Sourcing assets ●


Proposed Acquisition Strategy and Pipeline Projecte
- Two pronged acquisition strategy
- On market acquisition of logistic assets ●
- Partner with local developers to provide acquisition take out ●
- Significant pipeline being sourced through European platform
- Detailed due diligence currently underway on approximately €240 million worth of properties
- Assets to be acquired and held short term on Group balance sheet prior to fund launch

Proposed European Logistics Fund Characteristics
- Single sector focused fund: pan-European Logistics
- Diversified across continental Europe, including an allocation to central Europe
Adington
- Target leveraged IRR (net) of 11%
- Maximum gearing at fund level of 60%
- Minimum target size: €500m Gross Asset Value
- Tax efficient fund structure aimed at maximising income
- Target launch date end CY2006
74
Investment Services
Overview
Jon Austen Chief Operating Officer Investment Services

Investment Services
74


Focused Funds
- Total AUM £2.3 billion, across 9 funds
- Aim to return in excess of client specific benchmark ●
- Index based
74
- Absolute return
- Intend to launch European Logistics Fund in CY06 ●
Artington
International and domestic appetite ●
Direct Mandates
- Total AUM £4.7 billion, across 16 funds
- Aim to return in excess of client specific benchmarks ●
- Index based
78
- Absolute return
- Currently approximately £500 million outstanding to invest
Artington
Continued appetite for property investment ●
Indirect Investment
- Total AUM £300 million, across 11 funds
- Aim to return in excess of client specific benchmarks ●
- Index based
74
- Absolute return
- £200 million outstanding to invest
- Intend to launch Fund of Funds later this month ●
Adington
International and domestic appetite ●
New Developments
- Property Derivatives
- REITS
- Government committed to the introduction in January 2007 ₩
- Relaxation of constraints
- 2% GAV conversion charge
- 90% of net profits to be distributed
- Interest cover test set at 1.25
- Expectations
- Property companies transform into REITS
- Possible creation of new REITS
- Opportunities for Arlington and Macquarie Goodman

Property Services
Overview
Charles Shaw Managing Director; Arlington Property Services

APS Objectives
To maximise asset value by providing property, IT and facilities management to Arlington's landlords and occupiers (customers)



Z
History and Culture of Arlington Property Services
- Property and Business services an Arlington cornerstone since inception
- 1997 the establishment of APS
- Strategic objective to manage all assets in-house
- "Integrated property solution enhances asset value"
- Customer services ethic

Summary of APS Services
Professional
- Collecting Rent
- Rent Reviews ₩
- Lease compliance ₩
- Licenses ●
- Project ●
- $\bullet$ Fit Out
- Refurbishment
- $\bullet$ Churn
- Maintenance
H
- Service Charge (landlord) ●
- FM (customers) ₩


United Kingdom
Arlington manned sites

| ۴ | Azter (Bristol) |
|---|---|
| 2 | Blemingham |
| 4 | Elrackmell |
| $\mathbf{d}$ | Capability Green (Luton) |
| $^{\circ}$ 5 | Ginucester |
| ĉ | Hartfeld |
| 7 | Manchester |
| Newcastle | |
| 9 | Oxford |
| ŤΟ | Reading/Thasis |
| $-11$ | The Walnuts (Orpington) |
| 12 | Lionyard (Camunoge) |
| 13 | Two Rivers (Staines) |
| 14 | Riverade (Memai Mangalead) |
| 15 | Chades House (London) |
| 16 | Clasgow |

E.
Europe
European offices

| UK manned sites (15) |
|---|
| Pans |
| Lyon |
| Madrid |
| Earcelona |
| Arrestordam |
Some Facts and Figures
- Arlington Securities

- 23 million sqft of assets under management;
- 593 properties UK and Europe:
- Offices
- Industrial
- Retail ●●
- 2730 occupiers

Some Facts and Figures
- Arlington Property Services

- APS manages:
- 14 million sqft
- 366 properties
- Offices
- Industrial
- Retail ₩

3.9
- 155 multi let properties
- 1220 customers
- An international team of nearly 50 staff
Artington
International supplier network
Working with the Asset Managers
- Proactive management of the buildings
- Customer retention
- Property action plans ●


Benefits to the Funds
- Dedicated in-house property and customer services team ●
- Integrated "one stop shop" solution to landlords and occupiers 4
- National and international capability ●
- Global clients ●

Summary
- Property Services as a Major Differentiator ●
- Customer Focus ●
- European Expansion ●

Growth Strategy
Overview
Rob Wilkinson Managing Director; Business Development

Growth Objectives
- Maximise value for investors and occupiers
- Create sustainable long term revenue streams
- Exploit synergies between investment, development and property services
- Focus on core sectors
- Targeted growth of balanced mandates
- Expand European coverage and meet in the middle

Maximise Value for Investors and Occupiers
Annualised Return

Note: House performance calculated as a weighted average
Customer Satisfaction (All Park Averages)


Long Term Synergies
- Integrated model provides long term revenue stream through property cycle 4
- Cradle to grave provision maximises longevity of revenues
- Development projects provide in-built growth over long term ●
- ABPP 446,000 m2 of development with an estimated end value of £1.1bn
- AEBPF $-348,000$ m2 of development with an estimated end value of $\epsilon$ 500mn
- Targeting development projects for new funds
- UK logistics/industrial
- Urban office parks
- Ability to accelerate Fund creation through short term utilisation of Group balance sheet

Focus On Core Sectors
Business parks - Build out development pipeline
- Targeted development site acquisitions in UK
-
Achieve scale and pan-Euro portfolio
-
Acquire seed portfolio
-
Enhance development and property management
-
Launch European logistics fund
Science parks - Acquire further sites
Logistics
BE
- Complete detailed research analysis

Targeted Growth of Balanced Mandates
Balanced Funds
Sirong investor Enosine DIVERSITED CONCER commercial property Exposure Yield profile attractive Sont The Solose Arlington naciketing UKEE E NGA 1 Property Fund
Fund of Funds
Growing market Popular in Europe Limited competitions Arington aunching Fund of Funds Thiovailve Stutotte TPIOK ETTO WIX"
Direct Mandates
THE EXISTENTIAL PROPERTY Tender process TAVERS IN CARL consultants key role Selective eppreach to profilable mandates Growing appetite for Ethone

E
European Coverage
- Expand European office network
- People or assets first?
- Recruitment and potential smaller acquisitions in all three ● business units
- Leverage off Macquarie Goodman investor and occupier ● relationships
Artington
REITS
B
Arlington European Business Parks Fund
Overview
Nick Murray Managing Director; Investment Services Europe

Fund Strategy
- Pan-european fund focussed on prime business parks
- Research driven targeted locations
- Diversified portfolio of assets
- Total Return investment focus
- Mix of investments and development 80/20 rule
- Development agreements/options over land ●
- Long term management structure
- Customer focussed approval to maximise retention

Fund Overview
- Key Facts ●
- 4 assets totalling € 269 million 幽
- Target size $\epsilon$ 1+billion ₩
- Net assets of € 528 million 中国
- Gearing limited to 60% LTV ₩
- Target return European offices ex CBD +2% ₩
- Development pipeline of €500 million 働

Target Locations

Arlington Business Park, Paris Val d'Europe

Park Facts
| 185 hectares |
|---|
| 14,260 sq m |
| 54% |
| $(7,695$ sq m) |
| €190 |
| $7.50\% - 8.75\%$ |
| 4 |
| 6,684 sq m |

100
Arlington Business Park, Barcelona

10
Park Facts
| Total Park Area | 8.6 hectares |
|---|---|
| Phase 1 (Manzana B) | 3.3 hectares |
| Phase 2 (Manzana A) | 2.75 hectares |
| Phase 3 (Manzana C) | 2.55 hectares |
Planning for up to 89,680 sq m (NIA) of offices and associated retail
Equivalent Yield 6.25%

Arlington Business Park, Barcelona (cont'd)


| Bidg No. | Area | Completion |
|---|---|---|
| Bldg 1 | 12,153 sq m | February 2007 |
| Bldg 2 | 9,528 sq m | 17 October 2006 |
| Bldg 3 | 4,548 sq m | 27 October 2006 |
| Bldg 4 | 6,676 sq m | February 2007 |

102
Arlington Business Park, Madrid

Park Facts
| Total Area | 73,034 sq m |
|---|---|
| Vacancy Rate (approx.) | 10.4% |
| $(7,506$ sq m) | |
| Average Rent | €124 |
| Equivalent Yield | 6.23% |
| Park Population | 4,000 |
| No. of Park Tenants | 107 |

10£)
Parc Mail, Lyon

Park Facts
| Total Area | 4.8 hectares |
|---|---|
| Vacancy Rate | 27% |
| $(3,261$ sq m) | |
| Average Rent | €140 |
| Equivalent Yield | 7.07% |
| No. of Park Tenants | 10 |
| Park Population | c.725 |
| Principle established to purchase | |
| additional 1.2 hectares accommodating | |
| approximately 4,000 sq m | |

Arlington Development Services (UK)
Overview
Jim Johnston Managing Director; Development Services

Fund Strategy
- Large scale, long term branded developments
- Parks underpinned by strong masterplan and management structure/development standards
- Evolved from single use Greenfield sites to mixed use Brownfield development (now 75%)
- Early commitment to create the environment and deliver speculative product
- Expanding activity into other complimentary sectors science, urban and logistics parks

Fund Overview
- Acknowledged market leader in UK 2 million sqm developed to date
- Specialist Business Park fund (ABPP) established in 2003
- GAV growth £770m to £1.02b ( $+$ £150m disposals)
- 88% investment property 12% land
- Geared returns 2004 20% and 2005 39%
- 11 Active Park developments, plus 3 at planning stage
- 260 acres of consented land with potential for 5m sqft
- 140 acres of unconsented land within portfolio

UK Locations
- 13 Completed Business Parks
- 11 Active Business Parks
- 3 Future Business Parks


National Air Traffic Services takes off at Solent Business Park
- Customer : National Air Traffic Services
- Requirements: New Corporate & Technical Centre
- Consolidation from 3 locations - fully integrated solution
- Temporary office 20,000 sq ft, Phase One 130,000 sq.ft. & Phase Two 127,500 sq.ft.

John Wallace, NATS' Group Property Manager
"Arlington has responded to our needs and delivered on their promises. Working with their professional teams is achieving an excellent outcome for our organisation"

ne
Oxfam - Ethical Standards Shape Design and Build Solution for Oxfam
- Customer: Oxfam 'Global Hub' offices
- Requirements: 85,000 sq.ft. office building
- Consolidation from 7 buildings - fully met sustainable agenda and ethical purchasing
TH.

CArtheron
Gordon Ludlow, Oxfam's relocation project manager
"It's good to be working with a company that has responded so readily to our requirements and is prepared to go the extra mile with us. Oxfam values fairness, accountability and collaboration and it's important that anything the charity does with other people embraces those ideals"
The University of Hertfordshire - Hatfield Business Park
- Customer: University of Hertfordshire
- Requirements : 48 acre De Havilland campus to accommodate academic. residential and sports facilities
- 225,000 sq ft turnkey at fixed price
T

CArtheron
Professor Tim Wilson, Vice Chancellor
"We are delighted with this location and the part that Arlington and all the professional teams played in its creation."
"Arlington's unique development management process delivered a complex project on time and contributed to the academic facilities costing 8.3% below the industry benchmark"
Birmingham - Regeneration
- 44 acre Green Belt adjoining Birmingham Business Park
- Strategic Planning project, linked to North Solihull Regeneration $7$ one
- Mixed used to include retail. leisure, enterprise hub and training initiatives

Artington
Objectives:
12
The business park is an established Regional Investment Site. The next challenge is to integrate the park into the North Solihull Regeneration Zone, thereby localising the benefits and ensuring that jobs are made available in line with the public sector's community improvement initiatives.
Colworth Park – Joint Venture with Unilever
- Colworth Park has been Unilever's foremost science base for over 50 years
- Lies in the Cambridge Science cluster and adjacent to the Hertfordshire Pharmaceutical sector
- Arlington selected as partner
- Capable of sustaining a 750,000 sq.ft. Science and Research Park campus

Artington
Objective:
T K
To develop Colworth Park into a diverse and vibrant science cluster that brings together business leaders, scientists and entrepreneurs in a well managed park and business environment.
Future Activity
17
- Build out consented land bank 5m sq ft
- Conclude acquisition of 3 contracted sites est. 2m sq ft
- Expand range of development activity into complementary schemes, and develop new 'focus funds'
- Add value through Strategic Planning projects
- Use development activity as a catalyst to cross sell other services within the Group
Section 3
Property Tour Presentations
Adependings and residence

UK Business Park Location Map


Arlington Business Park, Reading
Description
- 19 hectare campus providing high quality office space
in a well established environment. - Close to major infrastructure (M4 and A4) and Reading town centre
Current Lettable Area
325,000 sq ft
Development Area
Close to completion with only one small area remaining to develop
Market Value
£98.5m
Market Cap Rate
Units vary from 6%to 7.25%
Occupancy
Fully let
T
Major Customers
Vodafone, Regus, KPMG and Wolseley


Arlington Business Park, Reading

Artington
n
Uxbridge Business Park
Description
- Office space and development land
- Close to town centre
Current Lettable Area
236,000 sq ft
Development Area
11% of original land still available for development ●
Market Value
£103m
Market Cap Rate
Units vary from 5.35% to 5.75% ●
Occupancy
Fully let
1 le
Major Customers
Amgen and Bristol Myers Squibb
Note: Information as at 31.12.2005 (unfinalised)


Uxbridge Business Park



Hatfield Business Park
Description
- Integrated business park offering commercial, residential, leisure and a university campus
- Close to road infrastructure including A1(M) and M25
Current Lettable Area
581,000 sq ft ●
Development Area
12% of original land still available for development
Market Value
£173.5m ₩
Market Cap Rate
Units vary from 6.23% to 7.15% ₩
Occupancy
12
3% vacant ₩
Major Customers
T-Mobile and Ocado


Note: Information as at 31.12.2005 (unfinalised)
Hatfield Business Park


Oxford Business Park
Description
- Office and associated development land
- Close to main Oxford ring road
Current Lettable Area
556,000 sq ft ₩
Development Area
10% of original land still available for development ₩
Market Value
£156.7m
Market Cap Rate
Units vary from 5.25% to 7.15% ₩
Occupancy
124
Over 90% let
Major Customers
Harley-Davidson Europe Ltd, Cancer Research UK, British Telecom, Oxfam

Note: Information as at 31.12.2005 (unfinalised)

Oxford Business Park


Section 4
European Logistics Snapshot
Adensitische Stadium

Disclaimer
This Document does not constitute an offer or solicitation to deal, whether directly or indirectly, in property.
Any offering described in this Document will only be made to entities or persons who may receive such an offer or who are able to make an offer under applicable laws.
Nothing in this Document should be taken as an expressed or implied indication of performance. Neither Arlington Property Investors or its affiliates makes any representation or warranty, express or implied, in this Document or otherwise with regards future performance. No guarantees as to investment performance, in respect of income or capital growth, are expressed or implied by Arlington Property Investors.
The value of investments and any income derived there from can go down as well us up. Investors may not get back the full amount invested. Past performance is not necessarily a guide to future performance.
No warranty or representation is given as to the accuracy or completeness of this Document and no liability is accepted for any errors or omissions that the Document may contain.
© 2006 Arlington Property Investors. All rights reserved. No part of this publication may be reproduced by any means, whether graphically, electronically, mechanically or otherwise howsoever, including without limitation photocopying and recording on magnetic tape, or included in any information store and/or retrieval system without the prior written permission of Arlington Property Investors.