Manchester Projects and Green Quarter Case Study Crosby Lend Lease

Andrew Brady CEO, Crosby Lend Lease

Investor Roadshow UK / US – May 2006 Agenda

Crosby Senior Management Team Manchester and Crosby’s Role Case study – Green Quarter, Manchester Site acquisition Marketing strategy Progress to date Scheme financial performance Purchaser profile

52 Senior management team

Andrew Brady Chief Executive Senior management team Officer has over 80 years experience in property development Richard Starkey Chief Financial Officer Senior management team has on average 8 years service within Crosby

David Teague Phil Darcy Andy Jinks TBA Managing Director Managing Director UK Development Managing Director North West Yorkshire Director Midlands

53 Manchester Planning Authority approvals

Management team has delivered the following planning consents in Manchester: 22 schemes 2,817 residential units 242,000m2 Capital value of £0.6 bn

54 Value in design capability

No 1 Deansgate, Manchester 86 units (8,000m2) Capital value £37m Landmark building forming part of the regeneration of the retail heart of Manchester city centre, following the IRA bomb in the late 1980’s

55 Value in design capability

Quay Street, Manchester 157 residential units (10,100m2) Two offices (10,000m2), developed in joint venture with ASK Developments Capital value £62m In Manchester’s commercial district Separate building sold to a hotel developer at an early stage

56 Value in design capability

Smithfield Market, Manchester Developed in joint venture with AMEC and in partnership with Manchester City Council Seven phases 336 residential units, retail and hotel Capital Value £55m Regeneration of the former Smithfield fish markets close to the retail heart of Manchester

57 Green Quarter – pre-acquisition

Derelict site acquired in 1999 with an existing planning consent for 413 units Adjacent to Manchester city centre Site historically occupied by mills and worker accommodation Vision to create a new quarter for the city

58 Master plan overview

A new Quarter for Manchester Latest master plan – 1,360 units (circa 2,500 residents) Delivery of new urban parkland as part of public realm works. First urban park to be developed for 50 years 150 bedroom hotel 14,000m2 of office space 475 car parking spaces in multi storey car park

59 Marketing strategy

Marketing the schemes key selling points The central location of the development The creation of a new environment and community The creation of a new central park and water features Delivery of a premium Crosby product at a very competitive price made possible through careful land acquisition Establish the location, Green Quarter Evolving product through development cycle 60 Marketing suite

Bespoke marketing suite central to marketing strategy Incorporates two fully fitted show apartments Show apartments currently being re-fitted to demonstrate specification on latest phases (evolving product design)

61 Demonstration unit

Demonstration unit for phases 2 and 3 Currently being refitted to demonstrate latest specification Specifications evolved using on-site research and development facility

62 Green Quarter – site plan

Phase 1,2 and 3 -100% sold Phase 4 - 92% sold Phases 5 to 7 (609 units) - not released to market Phase 6 to be released in June 2006 Site completion August 2009

63 Quote from Sir Howard Bernstein, Chief Executive, Manchester City Council

“Green Quarter is an excellent example of an innovative and sustainable development.

The vision portrayed by Crosby in the creation of a new quarter in the city, with the development of the first urban park for 50 years, will contribute greatly to the Manchester economy and the environment we are looking to achieve in the city.”

64 Site optimisation

£m Initial Current Percentage master plan forecast improvement Units 413 1,360 329% Square feet 271,568 881,594 325% Revenue 48 240 500% Land cost (6) (8) 35% Build expenditure (27) (158) 586% Marketing expenditure (3) (9) 300% Total Costs (36) (175) 487%

Gross Margin £12m £65m 542%

65 Purchaser profile

80% of sales to Investors, varying from personal investors buying 1 to 2 units to professional investor buying larger portfolio 44% of sales from local market 88% of sales from United Kingdom 67% of sales to individuals in the 30-50 age range