This document summarizes a presentation on development finance in Manchester. It discusses Lloyds Bank's support for housing development through a commission on affordable housing. It then provides details on Lloyds Bank's lending in northwest England, including £100-£492 million in debt facilities. Case studies are presented on projects supported by Lloyds Bank loans. The document also summarizes Greater Manchester's investment funds, including over £297 million invested or approved across various regional funds. It outlines the process for projects over £500,000 seeking funding. Key benefits of the funds are noted as flexibility, collaboration, experience, and competitive financing. A case study is presented on a £15 million loan from Evergreen and Growing Places funds for a £

1. Development Finance
Manchester | Tuesday 16 June 2015

2. Welcome
Paul Unger
Place North West

3. BACKING YOUR AMBITION
Glen Wilson
UK Head of Property

4. LLOYDS BANK - HELPING BRITAIN PROPSER
Creation of LBG Commission on Housing in January 2015. “No one single solution to
what is a complex and multi-layered series of challenges. Nor is our country’s housing crisis
susceptible to simplistic short-term ‘fixes’. What is required, is a sustained programme which
will generate a much expanded supply of good quality homes available both to buy and to
rent from a range of sources, at costs that reflect the varying means of all sections of society.”
Lloyds Banking Group has a profound interest in the UK housing
market

5. HELPING BRITAIN PROSPER - NW PROPERTY
2015 Lending
balance growth
NW debt book
New May term
facilities drawn
2015 Agreed
facilities
Debt
facilities of
up to
£12.5m
Sole focus on
investment and
development
Committed
facilities of up to
25 Years
Client centric
team of
accredited
managers
operating across
the NW
£100m£19m £0.492bn 17%

6. HELPING BRITAIN PROSPER - CASE STUDIES
“Having worked with Lloyds Bank
Commercial Banking for more than
14 years now, we knew that they
would be keen to support us with
this project.”
Eian Bailey, Managing Director,
Keyworker Homes Macclesfield

7. HELPING BRITAIN PROSPER - CASE STUDIES
“This new funding will be a huge
boost to us this year, and beyond, as
we look at new ways to expand the
range of housing we offer.”
Graeme Foster, Chief Executive,
Alpha Homes

8. Greater Manchester Investment Fund

9. Background – GMCA and Core Investment Team
 The GMCA is a statutory body with functions including economic development and regeneration that
cover the Greater Manchester area.
 It is comprised of the 10 Greater Manchester local authorities:
- Manchester
- Salford
- Trafford
- Stockport
- Tameside
- Oldham
- Rochdale
- Bury
- Bolton
- Wigan
 The Core Investment team is a GMCA team and is responsible for a number of investment
programmes aimed at encouraging business growth and investment in property and infrastructure.

10. Funding Position
 The table below summarises the status of the active funds as at 31st March 2015.
 Funds are currently in the process of being established for the 2014-20 ERDF allocation. £97m will be
directed into successor funds to the existing Evergreen and North West Fund, and a dedicated Low
Carbon Fund.
£’m RGF2 RGF3
GM Loan
Fund
Growing
places
NW
Evergreen
Fund
2014-20
ERDF
Total
Invested 13.1 34.7 3.4 8.8 13.9 -
Board
Approved
36.2 34.7 5.3 33.6 55.3 -
Remainder - - 14.7 21.0 5.2 97.0
Total 30.0 35.0 20.0 54.6 60.5 97.0 297.1
Business funds Property & infrastructure

11. Our Process – projects > £500,000
Expression of interest submitted to
the Core Investment team –
response provided within 48 hours
Project is submitted to the Local
Enterprise Partnership (LEP) for
endorsement
Business plan is assessed by the
Core Investment team
Project is submitted to the
Combined Authorities (CA) for
approval (the CA meet once a
month)
Applicant submits a business plan
in a standardised format
Draft offer letter issued
Applicant commissions due
diligence
Once satisfactory due diligence has
been received along with any other
conditions specifically noted in the
offer letter, a loan agreement is
issued
Project is submitted to the Chief
Executive’s appraisal sub group
for approval and consideration of
lending terms
Business plan is reviewed by an
Independent Advisory Panel
Average2monthprocess

12. Why use Evergreen/Growing Places?
Collaboration
• Funding where
traditional finance
cannot be obtained.
• Works in tandem with
other forms of funding.
• Welcomes schemes with
grants.
• Quick decision making .
Flexibility
• Competitive costs of
debt.
• Flexible terms;
• Various methods of
funding:
– Senior debt
– Clubs &
syndication
– mezzanine.
• Flexibility around cash
flow timings.
Experience
• Experienced teams
originating and
managing debt
investments.
• Finance and real estate
expertise.
• Experienced legal
advisors.
• Clearly defined
processes.
• Market standard loan
documents.
• Eligibility assessment.
Benefits for Developers

13. 13
CBRE | EVERGREEN | FUND BACKGROUND & UPDATE
CASE STUDY
The Cotton Building (iplus), Manchester
The Cotton Building
 Speculative Development
 £15m loan from Evergreen and Growing Places
 Total development costs of £40m
 Mezzanine funding by Pramerica
 Due to commence March 2014 and complete March 2016
 Match funding - £10million Private Sector Investment
 13,660 sq/m commercial floorspace
 BREEAM Excellent
 22,000 sq ft of existing brownfield land will be re-used
 The scheme will deliver in the region of 910 jobsBorrower Allied London
Nature of loan Senior Debt
Size of Loan £10,000,000 Evergreen and
£5,000,000 Growing Places
Location Spinningfields, Manchester

14. Future
• To build upon the success of the existing funds and maintain momentum.
• Fund will be enhanced by the proposed Evergreen II (£50m) and Low
Carbon (£15m) subject to UK Government / EU discussion.
• New funds expected to be operational from 2016.

15. Q&A
• Glen Wilson Lloyds Bank
• Bill Enevoldson Greater Manchester Combined Authority
• Eian Bailey Keyworker Homes
• Nick Lee NJL Consulting
• William Church CBRE, NW Evergreen Fund

16. Development Finance
Lunch
Manchester | Tuesday 16 June 2015