London Real Estate

Confidentiality and Disclaimer This presentation contains information confidential to Cornelian Capital Partners. Copyright in the materials is owned by Cornelian Capital Partners and any part of the materials should not be copied or disclosed to any other person without the express authorisation of Cornelian Capital Partners. No individual who is a member, partner, shareholder, employee or consultant of, in or to any constituent part of Cornelian Capital Partners (whether or not such individual is described as a “partner”) accepts or assumes responsibility, or has any liability, to any person in respect of the content of this presentation. Any reference to a partner means a member of Cornelian Capital Partners or a consultant or employee of Cornelian Capital Partners or one of its respective affiliates with equivalent standing and qualifications.

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Executive Summary

§  Property prices across developed economies have suffered significantly since the Global Financial Crisis. Central London real estate has remained exceptionally resilient throughout

§  As investor sentiment in markets such as the UK returns, we have seen increasing investment into property as the stability of such assets becomes valued

§  With strong current yields and increasing capital appreciation, London’s real estate market is one of the most exciting, yet secure, investments of today

§  Through Cornelian Capital’s global network of principles we are uniquely positioned to offer strategic property investments to our investors

§  An in-depth knowledge of these developed markets, combined with vast experience within the real estate sector means Cornelian are able to act quickly when opportunities arise

§  This book outlines a selection of current opportunities that Cornelian can offer and why now is the time to be reassessing these markets

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Why Invest In London?

§  Demand Continues to Outstrip Supply

-  Population growth in the capital is expected to increase by 40% in the next decade – housing supply is set to rise 18%

-  “People are keen to move into London to enhance their job opportunities.” Knight Frank – London Calling

-  The development of Crossrail will improve the capacity of London’s economy, creating further demand for housing

-  “As economies improve and supply shortages are exacerbated… you will see London price growth of 8% pa by 2017.” Jones Lang LaSalle

§  London Residential Outperforms

-  London residential property has a long-term outperformance history of the FTSE 100 and commercial property

-  Since 1969 house prices in the capital have doubled on average every 8 years

-  Prices are above pre-2008 levels

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Why Invest In London?

§  Huge Foreign Investment

-  The UK has a transparent and established property market in a politically stable country. Considered a safe-haven investment

-  Weaker Sterling offers attractive opportunities to investors. Those wishing to diversify from Euro denominated holdings are drawn to the independent currency

-  London offers world-class educational institutions, excellent shopping and is ideally positioned for business with both America and Asia

-  Overseas investment in new-build London property over 2012 was £2.2bn

§  Government Stimulus Maintains Availability of Finance

-  Intention to maintain low interest rates in UK to ensure a growing economy

-  According to Savills annual mortgage approvals are at their highest since July 2010

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Cornelian Advantage §  Propriety opportunities through

personal access to developers

§  Discounted prices resulting in improved yields or quick profits

§  Improved payment plans

§  Professional selection of best units within properties

§  A d v i c e o n i n v e s t m e n t opportunities

§  Assistance with execution process

§  Coordination or legal, tax and mortgage advice

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Completed Investment Opportunities

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West Hampstead §  A very popular residential neighborhood located in north London. The area has excellent direct transport links

to central London - Kilburn, Brondesbury and West Hampstead stations are all minutes away

§  There are excellent schools, colleges and universities in the vicinity making this area popular with investors, students, families as well as a number of well know celebrities

§  The near by area of Maida Vale and Regents Park provides top quality cafes and restaurants

§  A secure development of 56 interior designed, contemporary and luxury apartments set around a landscaped courtyard garden

§  This off-plan development also offers a dedicated concierge service

§  For recreational activities, both Hampstead Heath and Primrose Hill are within close proximity

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Commercial Road §  Located on the south-eastern edge of the City, Commercial Road has grown extensively in its popularity with

young professionals from the finance, IT, technology and media sectors

§  Situated perfectly for swift access to both Canary Wharf and the City it is a moments walk to Aldgate and Aldgate East stations as well as Whitechapel, Tower Hill and Wapping stations

§  The on going gentrification of the area has been accelerated with large schemes from nationwide homebuilders

§  All 7 apartments will be completed with state-of-the-art appliances and finishings including wood flooring, high gloss kitchens, under-floor heating, sensor lights and double-glazed period-style sash windows

§  There are two apartments on each of floors one to three, with a large penthouse on the fourth floor

§  Within minutes walk from the charming Narrow Street and its range of river-side cafes and restaurants

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Shoreditch Square §  Shoreditch is one of London’s most fashionable areas, popular with young professionals who come for the

extensive shopping, world-class restaurants and vibrant city life

§  On the north-eastern fringe of the city, this property is walking distance for the many professionals who work in London’s finance capital and only 200m from Hoxton station connecting directly to Canary Wharf

§  Against a trendy backdrop of independent shops, some of London’s best bars and restaurants, Shoreditch Square is also close to quiet green spaces such as Shoreditch Park , Hoxton Square and Finsbury Circus.

§  Ideal for city-living, these apartments offer beautiful designer styled interiors with open plan fitted kitchens and hard-wood floors. Some apartments have balconies or terraces

§  The development is set around a landscaped private garden

§  It is within minutes walk to the well known restaurants, fashion boutiques and art galleries that Hoxton, Shoreditch and Spitalfields have become world famous for

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De Laszlo House §  Situated on tree-lined Fitzjohn’s Avenue, in Hampstead, named by Harper’s magazine as ‘one of the noblest

streets in the world’ - very popular with both celebrities and royalty

§  Just eighteen magnificent two, three and four bedroom residences, set in beautiful and extensive landscaped gardens. Each apartment is unique in terms of layout, design and specifications

§  Part of the Fitzjohn’s Conservation Area, on the borders of Belsize Park and St John’s Wood. A popular and exclusive central London residential neighborhood

§  .

§  A few minutes walk away from both Finchley Road and Swiss Cottage underground stations offering direct access to London’s West End and Bond Street as well as the City of London and Canary Wharf

§  Apartments are equipped with state of the art living technology such as under floor heating, soundproofed floors, individual room temperature control and the potential for fully automated blinds and curtains

§  Many independently owned shops, bakeries, greengrocers, boutique fashion retailers and art galleries

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Case Study

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Case Study – Commercial Road Apartments

The Opportunity

§  Through its network of experienced partners Cornelian identified a potential residential development opportunity in prime central London

§  The building is located on the edge of the city, popular with young professionals due to its location between Canary Wharf, The City and Shoreditch

§  The ground floor is occupied by a retail unit and is retained by the seller. The freehold and all upper floors have been purchased

§  Planning consent had already been granted to convert the top three floors into six apartments, and to build an additional fourth floor penthouse

The Execution

§  Seven apartments were developed in total. Two apartments on each of floors one to three, with a large 3-bed apartment covering the entire fourth floor

§  Development was completed with state-of-the-art appliances and high-spec finishing. However the property was positioned in the market not to compete with near by more luxury developments

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Case Study – Commercial Road Apartments, London

The Returns

§  Cornelian Capital entered a joint venture with its development partners to fund the total costs of the project at £1.96m

§  The project has been completed in under 12 months as expected

§  The projected sale costs of all apartments was £2.41m but due to Cornelian’s accurate identification of an in-demand area the actual value at time of exit was £2.72m

§  This represented an actual Return on Investment to Investors of 46% vs the projected return to investors of 26%

The Cornelian Benefit

§  Cornelian Capital was also able to market the properties to suitable buyers, providing a secure and credible exit to investors

§  The apartments were sold at a 5% discount to market value giving purchasers a 6% yield in a high-growth area

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About Cornelian Capital Partners

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Cornelian: About Us

§  Cornelian Capital Partners is a London-Headquartered investment firm creating a developed markets real estate portfolio

§  Uniqueness of Cornelian:

1.  Real Estate & Hospitality: Leveraging principals’ expertise to generate proprietary deal flow

2.  UK and North America: Deep roots, strong partnerships, understanding and access

3.  Institutional structures and disciplines: Combined with detailed know-how of on-the-ground operating and execution challenges

4.  Network effect: Highly experienced advisory board with diverse skillset, experiences and access to capital

§  With principals based in North America, UK, the Middle East and Africa, Cornelian Capital Partners combines global presence, industry experience and local expertise to provide our network of Institutional and High Net Worth investors access to global property markets

RE, Hospitality, E+P services

E. African HNW + Family offices

Opportunities

Capital

Real Estate & PE

Institutional / HNW

Mature/developed markets East Africa

Exposure to proprietary opportunities in opaque and difficult to access markets

Direct access to high quality, institutional-type opportunities

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Cornelian: Executive Team

Abbas Kanji – Partner Abbas started his career as a management consultant at L.E.K. and then joined The Tabani Group, a real estate development and investment firm in Dallas, where he was responsible for evaluating, acquiring, and renovating properties across the US. He then joined Orion Residential, a Starwood Capital backed platform, participating in the acquisition and management of over $800 million of multifamily real estate before establishing an office in Chicago to head multifamily real estate acquisitions for Phoenix Realty Group, a NY-based real estate private equity firm. Prior to founding Cornelian Capital Partners, Abbas worked with Pritzker Realty Group (PRG), part of the family office of Penny Pritzker, coordinating the real estate development efforts of PRG and its partners.

Abbas received his undergraduate degree from Northwestern University (B.A. Economics) and his MBA from Harvard Business School. Abbas was born in Tanzania and is currently based in Chicago.

Hasnain Merali – Partner Hasnain began his career at Datamonitor Plc before joining UBS Warburg as a technology investment banker advising on IPOs, M&A transactions and capital raises. In 2002 he joined Marketpipe, a financial technology start-up in London where he was involved in raising early-stage funding and growing the business from the ground-up, creating a platform that currently accounts for 92% of debt new issuance globally, before being acquired by a US Private Equity firm to create IPREO. Prior to founding Cornelian Capital Partners, Hasnain has been working with Range Hospitality, building five star hotels and serviced residences in frontier markets such as Karbala (Iraq) and St Kitts in the Caribbean.

Hasnain holds a BEng. Hons in Information Systems Engineering from Imperial College London, grew up in Kenya and comes from a well-established business family in the region. He splits his time between London, Dubai and Nairobi.

Abbas Merali – Partner Abbas joined Ernst & Young out of University where he qualified as a Chartered Accountant whilst providing corporate finance advice to entrepreneurial growth companies. He then moved to HSBC, where he spent over 10 years as an M&A adviser and financier to some of the largest corporates and private equity firms on transactions across a wide spectrum of sectors and geographies. He has significant experience advising companies in emerging markets and in sectors including Oil & Gas, Oilfield Services and Real Estate. Abbas has extensive expertise and a successful track record of real estate development projects in the UK and East Africa. He is an investor in the UK healthcare market and serves as a Non-Exec Director of two start up companies.

Abbas holds a BSc in Economics from the London School of Economics. He grew up in Kenya and currently lives with his young family in London. He is a keen tennis player and sits on the Board of the LTA.

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Contact Details

Nairobi Purshottam Place, Chiromo Road, Westlands Nairobi | Kenya Tel: +254 20 360 1644 Fax: +254 20 360 1100

Dubai Emirates Towers Level 41, Sheikh Zayed Road Dubai | UAE Tel: +971 4 420 1461 Fax: +971 4 453 9698

London – Head Office 7-11 Grafton Street London | W1S 4EW United Kingdom Tel: +44 20 7183 8970 Fax: +44 20 7183 8946

e. info@corneliancapital.com w. www.corneliancapital.com

Toronto 74 Lytton Blvd ON LB4 3H4 Toronto| Canada Tel: +1 647 724 1751

Chicago 6726 N Keating Avenue Lincolnwood, IL60712 Chicago| USA Tel: +1 312 724 5770

www.cornel iancapital .com London | Dubai | Nairobi | Chicago | Toronto