Multi purpose project development

1. READING, UK
Prepared as of 12 July 2017
ROYAL ELM PARK RESIDENCE

2. Project Agenda
2
Location
• Situated in Reading at the Heart & Capital of Royal Berkshire County
Accessibility
• Adjacent to M-4 Exit 11 & the Main Artery into Reading Downtown
Local Context
• Gateway to Reading’s Silicon Valley, University & Area Business Parks
Royal Elm Park Master Plan
• Mixed-Use Development : Residential, Sports, Hospitality & M.I.C.E. well
designed on a 25 acres land
Residential Project
• Designed to Provide the Ultimate in Carefree Living & Life Style on a 15 acres
land
Time Line
• Planning Approvals Expected in September 2017 to Trigger Immediate Project
Execution

3. Royal Elm Park, Reading
3
The main elements of the development comprises :
• A world-class convention center
• Leisure facilities including cafes, bars & restaurants
• Ice rink
• New 633 residences, with dedicated car parking spaces
• 246 bed hotel & 102 serviced apartments
• New public space including public square and multi-storey car park
• A series of transport measures, parking and cycling/pedestrian
facilities, including;
- Promotion and provisions for substantial increase in public
transport
- Substantial increase in public transport, including local public
transport costs to be included in match-day ticket
- New high capacity bus hub/interchange on site
- 500 cycle parking spaces
- 930 shared spaces for stadium/ice rink/convention center use
• Creation of 1,000 construction jobs
• Creation of 1,000 FTE jobs post-construction
• The new unique mixed-use, multi-sports, multi-media, entertainment and residential
complex on 25 acres land that will boost up the South Reading area.
• This new combination will generate 24/7 activities providing new multiple revenue
streams and making the Madejski Stadium Complex a landmark in the region.

4. A Strategic Location in UK
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The Heart of Royal Berkshire County
• Direct connection between the City of London and Reading
• Connection to Heathrow Airport
• The new West London growth corridor

5. Convenient Accessibility
5
• Adjacent to M-4 Exit 11 & the main artery into Reading Downtown
A brand new station is proposed which will connect you to Reading and Crossrail. This will offer fast access in to London, the
South West and Midlands. With easy road access directly on to the A33 and with quick connections to the M3, M4, M25 and
Heathrow, Green Park Village is perfectly placed. Reading has an extensive bus network operated by a number of different
operators and also bene ts from its own ‘Ready Bike’ cycle hire scheme offering 200 bikes available for use throughout the
town at 29 docking stations, including at the Stadium.

6. The Magnetism of Reading
6
It is positioned to be a new hub of business, higher
education, technology, culture, sports and
entertainment. With the new high speed rail linking
Central London within 30 minutes, Reading will now
be the place of choice for new high-tech companies,
upscale individuals and families seeking an
alternative to London without sacrificing all the
amenities.
• 318,014 population (+12% growth)
• High Quality of Life, Growth
• Top Education
• History & Culture
• Jobs, High-tech Industry
• Transportation & Access
This urban subdivision is itself a component of
the Reading / Wokingham Urban Area with a
population of 318,014 (2011 census), and is the
most populous town in the United Kingdom not
to have city status.

7. Massive Traffic in Local Context
7
University of Reading
• 17,000+ Student Population
• Representing 141 Countries
• Leading Degree Programmes
• Ranked in top 1% of World Universities Amongst the
Most Beautiful Campuses in the UK
Reading FC & Madejski Stadium
• Sports Culture Phenomenon
• Club’s 125 Years Legacy
• Family Values
• Economic Engine for City
Reading and the nearby Thames Valley Science Park coupled
with the proximity to the University of Reading and regional
educated worksforce has positioned Reading to become the
Silicon Valley of the UK.
• Leading Companies
• IT Based Economy
• Link to Universities
• Transportation & Access
Reading High Tech Green Park Business Park
Green Park is a business park on the outskirts of the English
town of Reading. It covers 195 acres and comprises 19 office
buildings arranged around the Longwater, a central lake and
wildlife habitat. The buildings provide 1,500,000 sq.ft.
(140,000 m2) of office space, and in excess of 6,500 people
work on site.

8. Highest Employment & Economic Growth
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Ernst & Young Report 2016-2017
From E&Y report 2016-2017, Reading’s employment rate is
estimated to grow by +0.9% with GVA expected to raise by
+2.5% by year 2019, above UK average at 0% and 1.5%
respectively. This shows that Reading will lead other cities in
UK in term of economic expansion over the next 3 years.

9. Huge Residential Demand in Berkshire
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Almost 5,000 houses every year
for 20 years needed in Berkshire
19:00, 20 OCT 2015 BY LINDA FORT
A study on future housing need commissioned by all six
Berkshire councils says 4,900 houses need to be built
across the county every year
A technical study into the future of housing in
Berkshire over the next 20 years has found
nearly 4,900 households a year will be needed.
Local authorities are required to produce a
Strategic Housing Market Assessment to assess
future housing needs.
The assessments are a technical study and a
starting point for a wider planning discussion.
The publication of the Berkshire Strategic
Housing Market Assessment today, Tuesday,
October 20 has identified a need for 2,855
homes per year up to the year 2036 across the
western Berkshire - Wokingham, West Berkshire,
Reading and Bracknell Forest - and 2,015 homes
per year at the eastern end of the county -
Slough, Windsor and Maidenhead and also in
neighbouring South Bucks.
The six Berkshire councils will now work with
each other and their neighbours such as South
Bucks to identify whether the 4,900 homes per
year should be distributed in a different way.
This will feed into each council’s local plan
process and significant consultation and
engagement with people living in each area.
The study has also looked at affordable housing
and how much specialist housing is needed for
specific groups like older people and students.
The assessment was produced with the Thames
Valley Berkshire Local Enterprise Partnership and
the six Berkshire local authorities.
It aims to find the number of homes needed to
make sure an area remains economically
successful while providing a decent home to
those who need one.
The need will be taken as a starting point
for working out how many houses should
be provided in the next 20 years which
will feed into each council’s local plan
and the lengthy consultations that
follow.
Information on the Strategic Housing
Market Assessment can be found on
West Berkshire Council’s website at
www.westberks.gov.uk/shma
Source: getreading.co.uk

10. Well-off Residential Demand in Reading
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Reading is the leading regional centre within the
Thames Valley -one of the wealthiest parts of the
European Union, aided by a skilled workforce and
strong connectivity to London and Heathrow. The
Thames Valley is second only to Greater London in
output, with a GVA of £30bn per annum: alongside
London, it is the UK’s economic powerhouse - 2014
UK Competitiveness Index 2013 concluded that the
Thames Valley Berkshire is “by far the most
competitive LEParea in England.”
Royal Elm Park Residence is located in a prime
position in terms of the socio demographic profile of
the immediate locality and indeed the wider Reading
Urban Area: the proposed redevelopment of the area
surrounding the stadium would seemingly have no
shortage of patronage and would be sited in a
location which – particularly given its strong transport
links – has clear potential to draw upon an area
typified by a critical mass of ‘central pulse’ housing
and broadly younger demographic makeup.
Source: Mosiac Consumer Classification

11. Project Master Plan
11
Multi-purpose
Destination
Residential Area
Total 633 units

12. Project Master Perspective
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Block 7
Block 6
Block 5
Block 4
Block 1 Block 2 Block 3
Tesco
Warehouse
Stadium

13. Residence Phase 1 : Block 7 (Perspective)
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14. Residence Block 7 : Floor Plan
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• 16,816 m2 GIA
• 203 Total Units
• Unit Types : Studio, 1, 2, 3, 4 bed
• Average Unit Size 82.5 m2
• Retail Space (Use Class A1) 471.9 m2 GIA
• 178 Parking Spaces

15. Residence Block 7 : Features
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Contemporary Luxury Smart Living

16. Residence Phase 2 : Block 1-6
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• 45,496 m2 GIA
• 430 Total Units
• Unit Types : Studio, 1, 2, 3, 4 bed
• Average Unit Size 105 m2
• 10% Affordable Housing
• 562 Parking Spaces

17. Residence Block 1-6 : Amenities
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Fully Designed for Green, Community Living

18. Residential Summary
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19. Residence : GDV & Development Costs
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Note:
- Phase 1 includes Block 7 and Phase 2 includes Block 1-6
- Average selling price is £495 per sq.ft. for Private Residence and £250 per sq.ft. for Affordable Residence
Project Stack (£) Total Residence Phase 1 Phase 2
Private Residential 221,733,815 73,911,272 147,822,543
Affordable Residential 12,442,975 4,147,658 8,295,317
Commercial / Investment Revenue - -
Ground Rents 4,848,771 1,616,257 3,232,514
Car Parking - -
Total GDV 239,025,561 79,675,187 159,350,374
Land Value (67,000,000) (13,000,000) (54,000,000)
Land Acquisition Costs (837,500) (162,500) (675,000)
Construction (105,018,090) (44,674,260) (60,343,830)
Fees + Contingency (7,668,087) (2,840,581) (4,827,506)
Sales and Marketing (7,547,891) (2,515,430) (5,032,461)
Development Finance (8,746,338) (2,299,035) (6,447,303)
Total Development Costs (196,817,907) (65,491,806) (131,326,101)
• Total Residence Project shows Gross Development Value of £239 million, divided into £80 million for
Phase 1 (Block 7) and £159 million for Phase 2 (Block 1-6).
• It also requires Total Development Costs of £197 million with 65 million in Phase 1 and £131 million
in Phase 2 accordingly.

20. Residence : Capital Requirement
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• The capital stack shows costs to be financed for Residential project at £191 million with 60% debt
and 40% equity
• Total Residence Project will yield 14.2% IRR with 1.55 times equity multiple
Sources Total Residence Phase 1 Phase 2
Funded with upfront equity 77,302,707 25,721,904 51,580,803
Funded with "new" equity from deposits - - -
Equity Released from deposits (lower debt drawn) - - -
Funded with Debt 114,129,551 38,066,660 76,062,891
Total Sources 191,432,258 63,788,564 127,643,694
IRR 14.2% 18.8% 12.4%
Equity Multiple 1.55 1.55 1.54
Note: Phase 1 includes Block 7 and Phase 2 includes Block 1-6

21. Residence : Cash Flow Summary
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• The financial projection of Total Residence Project is expected to generate a positive cash flow in
Year 5 onward.
Cashflow Summary (£) Total Residence 2017 2018 2019 2020 2021 2022 2023
Private Sales Revenue 221,733,815 - - - 31,509,542 96,084,653 56,016,964 38,122,656
Affordable Sales Revenue 12,442,975 - - - 4,147,658 8,295,317 - -
Other Revenue 4,848,771 - - - - 1,616,257 - 3,232,514
Land (67,000,000) - (13,000,000) (54,000,000) - - - -
Land Acquisition Costs (837,500) - (130,000) (572,500) (135,000) - - -
Construction (105,018,090) - (2,857,909) (34,876,734) (47,051,270) (20,232,176) - -
Fees and Contingency (7,668,087) - (378,833) (2,582,248) (3,130,229) (1,576,777) - -
Sales and Marketing (7,547,891) - (33,454) (696,185) (1,599,016) (2,609,775) (1,510,279) (1,099,183)
Finance (Notional / Rolled Up) (8,746,338) - 0 (2,225,170) (2,861,414) (3,143,244) (516,511) -
Net Cashflow 42,207,654 - (16,400,196) (94,952,838) (19,119,728) 78,434,256 53,990,174 40,255,987
Cumulative Cashflow - (16,400,196) (111,353,034) (130,472,762) (52,038,507) 1,951,667 42,207,654

22. Project Timeline
February 2016
• Formal Planning Application Submitted
June 2016 - March 2017
• Revised Application review by Council, agencies, 3rd parties & public consultations
May 2017
• Successfully received resolution to grant planning permission for Phase 1’s detailed application
and Phase 2’s outline application
June-July 2017
• Completion of legal agreements & receipt of formal approval
Q4 2017
• Contractor bidding for Phase 1
2018
• Construction to commence on Phase 1
22