100212 Inspired Event Invista Presentation

University Challenge: An education in Student Accommodation Investment into the Private Rented Sector Robert Weaver : Invista Real Estate Investment Management 11 February 2010

Agenda Why invest in a Residential Fund? Why UK residential property? Invista; who we are

Who we are ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Source of data is Invista as at 30 November 2009 Established performance from a dedicated real estate manager

Why invest in a Residential Fund? Why UK residential property? Invista; who we are

Why UK residential? ,[object Object],[object Object],[object Object],Larger Market than all other Asset Classes Source: IPD, IPF, Land Registry, ONS, Thomson Datastream; end Dec 2009; * end Sept 2009 Better Diversification Benefits than Commercial Source: Savills IPD, FTA, Barclays Capital, Nationwide, Invista 1.00 Bonds 0.54 1.00 Equities 0.14 0.36 1.00 Commercial (0.04) 0.09 0.71 1.00 Residential Bonds Equities Commercial Residential 1974-2009 Correlation

Why UK residential? cont’d ,[object Object],[object Object],[object Object],Better Long Term Performance Lower Volatility than Other Asset Classes Source: Savills, CLG, IPD, FTA, Barclays Capital, Nationwide, Invista Source: Savills, CLG, IPD, FTA, Barclays Capital, Nationwide, Invista; Performance to end 2009 10.7% 5.7% 5.0% 6.9% -0.3% Bonds 13.3% 1.6% 5.9% -1.3% 30.1% Equities 9.8% 6.1% 1.6% -8.0% 3.4% Commercial 15.6% 10.6% 4.0% 1.0% 6.6% Residential Last 35 years Last 10 years Last 5 years Last 3 years Last 12 months Annualised Total Returns

Why UK residential? Cont’d ,[object Object],Low return, High risk High return, Low risk Source: Savills, CLG, IPD, FTA, Barclays Capital, Nationwide, Invista Jan 1974 – Dec 2009 Strong risk return profile 10 years 20 years 35 years Residential Commercial Equities Government Bonds

Why Not the Institutions ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Why invest in UK residential now? Long-term drivers of UK residential ,[object Object],[object Object],Supply: number of house starts in England Source: ONS Source: DCLG. National data for Q3 2009 is currently available only for England Demand: number of adults in UK Historical & Projected

Why invest in UK residential now? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],House prices begin to fall in Q3 2007 Prices have fallen faster than in early 1990s Source: Halifax Source: Halifax

Why invest in UK residential now? Alternative measures of affordability Source: Bank of England, Capital Economics, CML, Thomson Datastream Affordability is back

Why invest in a Residential Fund Why UK residential property? Invista who we are

Why invest in a residential fund? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],No?! This is the c.£200bn buy-to-let sector Yes of course! This is the residential fund sector

Why invest in a residential fund? Further fund considerations ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Why invest in a residential fund? Investment strategy ,[object Object],[object Object],[object Object],[object Object],[object Object],Source: Halifax, to end December 2009 Cyclical trends in house price growth

Not an Invista Fund - How not to do it Relative value growth for all assets For illustrative purposes only Source: Invista, Nationwide (index applied from beginning of quarter in which asset was purchased) From purchase to end September 2009 Investing can Seriously damage your Wealth

Potential acquisitions Period Conversion Modern Ground Rent Portfolio For illustrative purposes only

Potential investment I Well located development site Attractive size new build For illustrative purposes only

Residential opportunities Individual leasehold properties not attractive For illustrative purposes only

Summary ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Important information ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

100212 Inspired Event Invista Presentation

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