!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! www.upsidelondon.com!!

Upside!London!Limited!(no.!8111607)!is!registered!in!England!and!Wales!at!1,!West!Street,!Lewes,!East!Sussex,!BN7!2NZ!!

1!

PO!Box!3137!Whyteleafe!CR3!4BF!!www.upsidelondon.com!!!!

26!Monck!Street,!London!SW1P!2AP!!www.ullproperty.com!!!!

!!!!! !!17!September!2015!!Dear!Marc,!!!WESTMORELAND,HOUSE,/,CARRIAGEWORKS,–,APPRAISAL,UPDATE,,Further! to!our! conversation,!we!attach! the!updated!Schedule!of!Accommodation! (Appendix!1)!and! the!updated!the!Argus!Appraisal,!a!summary!of!which!is!attached!(Appendix!2).!!

The!Residualised!Price!is!shown!as!£1,353,953,!compared!with!£1,426,820!in!the!November!2014!Report.!!

The!reasons!for!the!lower!figure!can!be!attributed!to!the!overall!reduction!in!the!number!of!residential!units,!the!increased!provision!of!community!accommodation!and!the!increased!percentage!in!affordable!housing,!both!of!which!are!worth!less!on!a!capital!value!basis!than!private!residential!units.!!

The!profit!assumption!has!been!amended!from!19.35%!on!GDV!(November!2014)!to!17%!on!GDV.!

Limitations,and,Confidentiality,

This!report!does!not!constitute!a!valuation!and!should!not!be!relied!upon!for!valuation!purposes.!!

It!is!provided!for!the!sole!use!of!the!party!to!whom!it!is!addressed.!!It!is!confidential!to!the!addressee!and!their! professional! advisors.! ! U.L.L.! accepts! no! responsibility! whatsoever! to! any! person! other! than! the!client!themselves.!!

!Neither!the!whole!nor!any!part!of!the!report!nor!any!reference!thereto!may!be!included!in!any!published!document,!circular,!or!statement,!or!published!in!any!way,!without!the!prior!written!approval!of!U.L.L.!!I! trust! the! above! is! satisfactory.! Please! contact! me! should! you! require! anything! further! from! U.L.L.!pertaining!to!the!Site.!!Yours!sincerely,!,,,U.L.L.,Property,26!Monck!Street!!London!!SW1P!2AP!!Enc.!Appendix!1!and!Appendix!2!

Mr!Marc!Pennick!Fifth!Capital!London!!By,Email,Only,!

Your!ref:!`!Our!ref:!!RA/AE!!

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! www.upsidelondon.com!!

Upside!London!Limited!(no.!8111607)!is!registered!in!England!and!Wales!at!1,!West!Street,!Lewes,!East!Sussex,!BN7!2NZ!!

2!

PO!Box!3137!Whyteleafe!CR3!4BF!!www.upsidelondon.com!!!!

26!Monck!Street,!London!SW1P!2AP!!www.ullproperty.com!!!!

Appendix,1,–,Schedule,of,Accommodation,(25th,July,2015), !

REV DATER25 Planning Application Amendums 25.07.15

CLIENT

Fifth Capital London Ltd

PROJECT TITLE

Westmoreland House and Carriageworks

DRAWING TITLE

PROPOSED Area ScheduleDRAWING NO REVISION

A2493 700 R25

BLOCK AHR

Building Floor Unit No Studio 1 bed 2 bed 3 bed 4 bed Hab Room NIA (sq.m) NIA (sq.ft)

A0-1 1 2 49 527

A0-2 1 4 85 915

A0-3 1 3 66 710

A0-4 1 2 55 592

A0-5 1 2 55 592

A0-6 1 2 55 592

A1-1 1 2 49 527

A1-2 1 2 47 506

A1-3 1 2 46 495

A1-4 1 2 46 495

A1-5 1 1 39 420

A1-6 1 1 35 377

A1-7 1 2 53 570

A1-8 1 2 52 560

A1-9 1 2 54 581

A1-10 1 2 53 570

A1-11 1 2 49 527

A1-12 1 4 85 915

A1-13 1 3 64 689

A1-14 1 2 55 592

A1-15 1 2 55 592

A1-16 1 2 55 592

A1-17 1 2 55 592

A2-1 1 2 49 527

A2-2 1 2 47 506

A2-3 1 2 46 495

A2-4 1 2 46 495

A2-5 1 1 39 420

A2-6 1 1 35 377

A2-7 1 2 53 570

A2-8 1 2 52 560

A2-9 1 2 53 570

A2-10 1 2 53 570

A2-11 1 2 49 527

A2-12 1 4 85 915

A2-13 1 3 64 689

A2-14 1 2 55 592

A2-15 1 2 55 592

A2-16 1 2 55 592

A2-17 1 2 55 592

A3-1 1 2 49 527

A3-2 1 2 47 506

A3-3 1 2 46 495

A3-4 1 2 46 495

A3-5 1 1 39 420

A3-6 1 1 35 377

A3-7 1 2 53 570

A3-8 1 2 52 560

A3-9 1 2 53 570

A3-10 1 2 53 570

A3-11 1 2 49 527

A3-12 1 4 85 915

A3-13 1 3 64 689

A3-14 1 2 55 592

A3-15 1 2 55 592

A3-16 1 2 55 592

A3-17 1 2 55 592

A4-1 1 2 53 570

A4-2 1 2 52 560

A4-3 1 2 53 570

A4-4 1 2 53 570

A4-5 1 3 63 678

A4-6 1 4 81 872

A4-7 1 2 55 592

A4-8 1 2 55 592

A4-9 1 2 55 592

A4-10 1 2 55 592

A5-1 1 2 50 538

A5-2 1 2 52 560

A5-3 1 2 52 560

A5-4 1 4 85 915

A5-5 1 2 53 570

A5-6 1 4 89 958

A5-7 1 4 82 883

6 55 5 8 0 163 4,077 43,885

8% 74% 7% 11% 0%

BLOCK BHR

Building Floor Unit No Studio 1 bed 2 bed 3 bed 4 bed Hab Room NIA (sq.m) NIA (sq.ft)

B1-1 1 3 73 786

B1-2 1 2 50 538

B1-3 1 4 75 807

B2-1 1 3 73 786

B2-2 1 2 50 538

B2-3 1 4 75 829

B3-1 1 3 73 786

B3-2 1 2 50 538

B3-3 1 4 75 829

B4-1 1 3 57 614

B4-2 1 2 46 495

B4-3 1 4 71 764

0 4 4 4 0 36 768 8,310

0% 33% 33% 33% 0%

MIX AREAS

BLOCK B

FIRST

SECOND

FOURTH

THIRD

GROUND

BLOCK A

FIFTH

THIRD

74

12

FOURTH

UNITS

UNITS MIX AREAS

FIRST

SECOND

RESIDENTIAL

BLOCK C - Carriageworks buildingHR

Building Floor Unit No Studio 1 bed 2 bed 3 bed 4 bed Hab Room NIA (sq.m) NIA (sq.ft)

C1-1 1 3 73 786

C1-2 1 3 61 657

C1-3 1 4 91 980

C2-1 1 3 72 775

C2-2 DUPLEX 1 3 74 797

C2-3 DUPLEX 1 3 70 753

C2-4 DUPLEX 1 3 89 958

C2-5 1 2 48 517

0 1 6 1 0 24 578 6,222

0% 13% 75% 13% 0%

BLOCK DHR

Building Floor Unit No Studio 1 bed 2 bed 3 bed 4 bed Hab Room NIA (sq.m) NIA (sq.ft)

D0-1 1 2 47 506

D0-2 1 3 68 732

D1-1 1 3 68 732

D1-2 1 2 47 506

D1-3 1 2 47 506

D1-4 1 3 68 732

D2-1 1 3 68 732

D2-2 1 2 47 506

D2-3 1 2 47 506

D2-4 1 3 68 732

0 5 5 0 0 25 575 6,189

0% 50% 50% 0% 0%

BLOCK EHR

Building Floor Unit No Studio 1 bed 2 bed 3 bed 4 bed Hab Room NIA (sq.m) NIA (sq.ft)

E0-1 1 5 102 1,098

E0-2 1 5 102 1,098

E0-3 1 5 102 1,098

0 0 0 0 3 15 306 3,294

0% 0% 0% 0% 100%

BLOCK FHR

Building Floor Unit No Studio 1 bed 2 bed 3 bed 4 bed Hab Room NIA (sq.m) NIA (sq.ft)

F0-1 1 4 102 1,098

F0-2 1 4 102 1,098

F0-3 1 4 102 1,098

F0-4 1 4 102 1,098

F0-5 1 4 102 1,098

0 0 0 5 0 20 510 5,490

0% 0% 0% 100% 0%

UNITS HR

Units Studio 1 bed 2 bed 3 bed 4 bed Hab Room NIA (sq.m) NIA (sq.ft)

BLOCK A 74 6 55 5 8 0 163 4,077 43,885

BLOCK B 12 0 4 4 4 0 36 768 8,310

BLOCK C 8 0 1 6 1 0 24 578 6,222

BLOCK D 10 0 5 5 0 0 25 575 6,189

BLOCK E 3 0 0 0 0 3 15 306 3,294

BLOCK E 5 0 0 0 5 0 20 510 5,490

TOTAL 112 6 65 20 18 3 283 6,814 73,389

5% 58% 18% 16% 3%

GROUND

FIRST

SECOND

THIRD

FOURTH

FIFTH

TOTAL

TOTAL

* PLEASE NOTE: the Non-Residential area includes the public route through the Carriageworks and the covered terrace at the rear

PLANT

45 484 47 506

RESIDENTIAL

RESIDENTIAL ANCILLARY (eg. bikes/bins)

NON-RESIDENTIAL

NON-RESIDENTIAL ANCILLARY (eg. bikes/bins)

287

BLOCK E GROUND, FIRST, SECOND, THIRD

10

UNITS MIX

FIRST

SECOND

10,083 108,533 11,119 119,685

1,010 10,872 1,106 11,905

253 2,723 3,089

8,550 92,032 9,432 101,526

225 2,422 247 2,659

8,550 92,032 9,432 101,526

TOTAL AREAS

AREA GIA (sq.m) AREA GIA (sq.ft) AREA GEA (sq.m) AREA GEA (sq.ft)

921 9,914 998 10,742

567 6,103 611 6,577

2,225 23,950 2,468 26,566

1,561 16,803 1,714 18,449

1,056 11,367 1,173 12,626

2,220 23,896 2,468 26,566

5

RESIDENTIAL SUMMARYMIX AREAS

RESIDENTIAL AREAS BY FLOORRESI GIA (sq.m) RESI GIA (sq.ft) RESI GEA (sq.m) RESI GEA (sq.ft)

3

UNITS MIX AREAS

BLOCK F GROUND, FIRST AND SECOND

AREAS

8

UNITS MIX AREAS

BLOCK D

GROUND

UNITS MIX AREAS

BLOCK C

FIRST

SECOND AND THIRD

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! ! www.upsidelondon.com!!

Upside!London!Limited!(no.!8111607)!is!registered!in!England!and!Wales!at!1,!West!Street,!Lewes,!East!Sussex,!BN7!2NZ!!

3!

PO!Box!3137!Whyteleafe!CR3!4BF!!www.upsidelondon.com!!!!

26!Monck!Street,!London!SW1P!2AP!!www.ullproperty.com!!!!

Appendix,2,–,Argus,Appraisal,Summary,(112,Unit,Scheme),

Marc Pennick Fifth Capital London September 2015 Proposed Scheme (112 Residential Units)

Westmoreland House / Carriageworks Bristol BS1

Development Appraisal ULL Property

17 September 2015

APPRAISAL SUMMARY ULL PROPERTY Marc Pennick Fifth Capital London

Summary Appraisal for Phase 1

Currency in £

REVENUE Sales Valuation Units ft² Rate ft² Unit Price Gross Sales

Resi Private Sales 102 67,145 375.88 247,438 25,238,659 Resi Shared Ownership 10 6,189 170.00 105,213 1,052,130 Totals 112 73,334 26,290,789

Rental Area Summary Initial Net Rent Initial Units ft² Rate ft² MRV/Unit at Sale MRV

Private Ground Rents 94 300 28,200 28,200 Commercial Units 1 10,872 10.00 108,720 108,720 108,720 Totals 95 10,872 136,920 136,920

Investment Valuation Private Ground Rents Market Rent 28,200 YP @ 6.0000% 16.6667

PV 0yrs 3mths @ 6.0000% 0.9855 463,203 Commercial Units Market Rent 108,720 YP @ 8.0000% 12.5000 (0yrs 6mths Rent Free) PV 0yrs 6mths @ 8.0000% 0.9623 1,307,698

1,770,901

GROSS DEVELOPMENT VALUE 28,061,690

NET REALISATION 28,061,690

OUTLAY

ACQUISITION COSTS Residualised Price 1,353,953

1,353,953 Stamp Duty 4.00% 54,158 Agent Fee 1.20% 16,247 Legal Fee 0.60% 8,124

78,529 CONSTRUCTION COSTS Construction ft² Rate ft² Cost

Commercial Units 13,688 ft² 163.25 pf² 2,234,426 Resi Private Sales 84,336 ft² 163.63 pf² 13,799,718 Resi Shared Ownership 7,774 ft² 163.62 pf² 1,271,970 Totals 105,797 ft² 17,306,114 17,306,114

Resi CIL 475,000 S106 and s278 payment 112,000

587,000

PROFESSIONAL FEES Professional Fees 10.00% 1,730,611

1,730,611 MARKETING & LETTING

Commercial Marketing 15,000 Residential Marketing 385,000 Letting Agent Fee 10.00% 13,692 Letting Legal Fee 5.00% 5,436

419,128 DISPOSAL FEES

Sales Agent Fee 1.00% 280,617 Sales Legal Fee 0.50% 140,308

420,925

APPRAISAL SUMMARY ULL PROPERTY Marc Pennick Fifth Capital London FINANCE

Debit Rate 7.000%, Credit Rate 0.000% (Nominal) Land 260,741 Construction 1,102,063 Other 32,138 Total Finance Cost 1,394,942

TOTAL COSTS 23,291,203

PROFIT 4,770,487

Performance Measures Profit on Cost% 20.48% Profit on GDV% 17.00% Profit on NDV% 17.00% Development Yield% (on Rent) 0.59% Equivalent Yield% (Nominal) 7.49% Equivalent Yield% (True) 7.85%

IRR 26.17%

Rent Cover 34 yrs 10 mths Profit Erosion (finance rate 7.000%) 2 yrs 8 mths