Strictly Confidential For Addressee Only

Project Roost Upsize

Report and Valuation for

Bank of America Merrill Lynch International DAC

Valuation Date

12th July 2019

Ref: RNHD/…/6/9 Project Roost Upsize property valuation as at July 2019 Bank of America Merrill Lynch International DAC Cushman & Wakefield

Project Roost Upsize as at 12th July 2019

Contents

A Valuation Report...... 2 1 Instructions ...... 2 2 Background to the Valuation ...... 2 3 The Properties ...... 2 4 Bases of Valuation ...... 3 5 Assumptions, Departures and Reservations ...... 4 6 Inspection ...... 4 7 Sources of Information ...... 4 8 General Comment ...... 5 9 Valuations ...... 6 10 Confidentiality ...... 8 11 Certification ...... 8 12 Disclosure and Publication ...... 9

Value Summary Additional valuation commentary The U.K. Student Accommodation market overview

B Individual Property Reports and Market Overviews

• “Hollis Croft”: Hollis Croft, Sheffield S1 4BG • “Great Patrick Street”: 28-30 Great Patrick St, Belfast BT1 2LT • “Swanston House”: 41-45 Queen St, Belfast BT1 6ET • “Pittodrie Street”: Pittodrie St, Aberdeen AB24 5AD

Appendix 1 Instructions (Correspondence) ......

Strictly Confidential – For Addressees Only

C & W (U.K.) LLP 43-45 Portman Square London W1A 3BG Tel +44 (0)20 7935 5000 www.cushmanwakefield.com

A Valuation Report

To: Bank of America Merrill Lynch International DAC 2 King Edward Street London EC1A 1HQ UK

Attention: Wayne R. Miller, FRICS, MAI, AI-GRS, Senior Vice President

Portfolio: Project Roost Upsize Report Date: 26th July 2019 Valuation Date: 12th July 2019

1 Instructions

Appointment We are pleased to submit our valuation report, which has been prepared for loan security purposes. Each property and interest valued is detailed in Part B.

Each valuation has been carried out in accordance with your Award Letter dated 19th June 2019, as appended at Appendix 1 of this report and the General Services Light Agreement. The extent of our professional liability to you is also outlined within these instructions. We confirm that we have sufficient knowledge, skills and understanding to undertake each valuation competently.

2 Background to the Valuation Each valuation is required to enable Bank of America Merrill Lynch International DAC to determine whether each property will provide suitable and adequate security for the loan.

3 The Properties There are 4 properties, each being a purpose built student residential scheme, located in England or Scotland. Each property is operational except for Hollis Croft, Sheffield which is expected to begin trading by September 2019. A list identifying each property is attached.

C & W (U.K.) LLP is a limited liability partnership registered in England & Wales with registration number OC328588. The term partner is used to refer to a member of C & W (U.K.) LLP or an employee or consultant with equivalent standing and qualifications. A list of members of the LLP is open to inspection at our registered office at 43/45 Portman Square, London, W1A 3BG. Regulated by RICS. Bank of America Merrill Lynch International DAC Cushman & Wakefield

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4 Bases of Valuation Each valuation and this report has been prepared in accordance with the RICS Valuation – Global Standards 2017 and the UK national supplement (the “RICS Red Book") by a valuer acting as an External Valuer, as defined within the RICS Red Book. We confirm that the valuer conforms to the stipulated requirements.

The effective date of each valuation is 12th July 2019.

We have valued each 100% interest identified to us as the tenure to be valued.

Bases Each property has been valued on the basis of Market Value.

Definitions The definition of Market Value (MV) is that settled by the International Valuation Standards Committee (International Valuation Standards IVS Standard 1, Market Value Basis of Valuation) as well as the Royal Institution of Chartered Surveyors, London (Valuation Standards VS 3.2). Accordingly, the Market Value is:

“The estimated amount for which an asset should exchange on the date of valuation between a willing buyer and a willing seller in an arm’s length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion.”

The Uniform Standards of Professional Appraisal Practice (USPAP) defines Market Value as follows:

“Market Value means the most probable price which a property should bring in competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition are the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:

1. Buyer and seller are typically motivated; 2. Both parties are well informed or well advised, and acting in what they consider their own best interest; 3. A reasonable time is allowed for exposure in the open market; 4. Payment is made in terms of cash in U.S. dollars or in terms of financial arrangements comparable thereto; and 5. The price represents the normal consideration for the property sold unaffected by special or creative financing or sale concessions granted by someone associated with the sale.”

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Overall, the general USPAP understanding of the Market Value is virtually congruent with the Market Value definitions of the IVS and RICS.

5 Assumptions, Departures and Reservations We have prepared each valuation on the basis of the assumptions within our instructions detailed in Appendix 1 of this report. Additionally, we have adopted the following valuation bases:

Special Assumption of Vacant Possession Value You have asked us to provide an opinion of ‘Vacant Possession Value’ for each property. For this purpose, this basis is defined as Market Value, subject to the Special Assumption of full vacant possession.

The Glossary within the RICS Red Book defines a Special Assumption as “an assumption that assumes facts that differ from the actual facts existing at the valuation date”. You should note that if each Special Assumption above was not adopted there could be a material difference in value.

We have made no Departures from the RICS Red Book. Each valuation is not subject to a Reservation.

6 Inspection We inspected each property during July 2019, as referenced in each Individual Property Report. Each Property was inspected externally from ground level and internally. We have not undertaken a measured survey of each Property. We have been provided with floor area information on which we have relied.

7 Sources of Information In addition to information established by us, we have relied on the information provided by 3rd parties and Student Roost which in particular includes:

• Rent rolls provided as at 12 July and 19 July 2019 for each property; • Operational cost and capital works schedules for each property as at 12 July 2019; • Phase I Environmental Site Assessment dates July 2019 prepared by Delta Simons; • A nomination agreement with the University of Ulster; • Draft Certificate of Title prepared by Tughans in relation to Great Patrick Street and Swanston House, Belfast; • Draft Certificate of Title prepared by Mishcon de Reya LLP in relation to Hollis Croft, Sheffield; and • Draft Certificate of Title prepared by Brodies LLP in relation to Pittodrie St, Aberdeen.

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We have made the assumption that the information provided is both full and correct and that details of all matters relevant to value such as rental rates, lettings, rent reviews, outstanding requirements under legislation and planning decisions, have been made available to us, and that such information is up to date.

8 General Comment Each opinion of value is based on an analysis of recent market transactions, supported by market knowledge derived from our agency experience. Each valuation is supported by this market evidence.

Where there are outstanding or forthcoming reviews, rental value has been assessed in accordance with the terms of the occupational lease review provisions. Otherwise, rental value has been assessed on the basis of Market Rent, assuming a new lease drawn on terms appropriate to current practice in the relevant market.

All valuations are professional opinions on a stated basis, coupled with any appropriate assumptions or Special Assumptions. A valuation is not a fact, it is an estimate. The degree of subjectivity involved will inevitably vary from case to case, as will the degree of certainty, or probability, that the valuer’s opinion of market value would exactly coincide with the price achieved were there an actual sale at the valuation date.

The purpose of the valuation does not alter the approach to the valuation.

Property values can change substantially, even over short periods of time, and so our opinion of value could differ significantly if the date of valuation was to change. If you wish to rely on our valuation as being valid on any other date you should consult us first.

Should you contemplate a sale, we strongly recommend that the property is given proper exposure to the market.

You should not rely on this report unless any reference to tenure, tenancies and legal title has been verified as correct by your legal advisers.

Bank of America Merrill Lynch International DAC makes no warranties or representations regarding this document or the conclusions contained herein.

Valuation having regard to trading potential as a fully equipped operational entity

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Each property has been valued having regard to trading potential. Valuations made on this basis assume that:

• The business will at all times be effectively and competently managed, operated and promoted; and • The business will be properly staffed, stocked and capitalized.

In accordance with your instructions, each property has been valued as fully equipped operational entity having regard to all trade fixtures, fittings, furniture and furnishings and equipment necessary to sustain the business carried out. We have assumed unless otherwise advised that all plant, machinery, fixtures and fittings are owned outright and are not subject to finance leases or charges or are owned by third parties.

Cashflow Analysis Each valuation opinion has been supported by a 10-year cashflow, incorporating projections of future income and expenditure. These are not predictions, but our best estimate of current market thinking on likely future cashflow. These estimates constitute our judgment today and may be subject to change in the future. We make no warranty or representation that these projections of cashflow will materialise.

Capital Allowances There may be capital allowances available to a purchaser of the property. We have not considered the benefits of these in our valuation. Should these be available, this may assist the marketing of the property.

Currency Each property has been valued in Pounds. We have not reflected any local realisation taxes.

9 Valuations These are aggregated figures of the individual values for each property. If the properties were to be sold as a single lot or in groups of properties, the total value could differ significantly.

Market Value Our opinion of the aggregate Market Value of the interest in each property, as a fully equipped operational entity, having regard to trading potential, is:

£199,165,000 One hundred and ninety-nine million one hundred and sixty-five thousand Pounds

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Indication of Fixtures, Fittings and Equipment Value (FF&E) Included in each opinion of Market Value is the contributing value of the personal property at each property, or the furnishings, fixtures, and equipment (“FF&E”). FF&E is generally considered to be part of the property and is typically sold with the property. It is therefore considered to be a part of the property's total value. FF&E includes the private room and public area furnishings, kitchen equipment, service / maintenance equipment and other machinery.

The allocated value is detailed in the Summary Value Schedule. Each allocation provided is a hypothetical apportionment of the value of each whole item, prepared solely for your calculation input. The figures should not be relied upon for any other purpose. They do not represent the Market Value of each allocated element in isolation.

Special Assumption of Vacant Possession Our opinion of the aggregate Market Value on the Special Assumption of full vacant possession of the interest in each property, as a fully equipped operational entity, having regard to future trading potential is:

£171,585,000 One hundred and seventy-one million five hundred and eighty-five thousand Pounds

“Portfolio premium” In certain circumstances, the opportunity to purchase a particular group of properties as a single lot might cause competitive bidders to offer bids in excess of the aggregate value of each property considered in isolation (a “portfolio premium”). In other words, the value of the whole could exceed the sum of the individual parts. For the avoidance of doubt, each property has been valued individually and in isolation of the others, and each of our opinions of Market Value does not include any element of Portfolio Premium.

Indication of Reinstatement Cost Our opinion is provided as a guide. This guide has not been prepared by a building surveyor or qualified building cost estimator and is based on costs obtained from generic building cost tables. It envisages reinstatement using modern methods and materials, which may not necessarily be appropriate or permitted. You should not rely on this guide for any purpose before it has been confirmed by a formal assessment carried out by a building surveyor or other person with sufficient current experience of replacement costs.

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10 Confidentiality This report may be relied upon by Bank of America Merrill Lynch International DAC, and its affiliates, successors and/or assigns; the selected Facility Agent, its successors and/or assigns; and the selected Security Agent, its successors and/or assigns, in connection with their respective consideration of the extension of credit related to the property and/or the beneficial ownership thereof (the "Loan Financing"). This information also may be relied upon by any actual or prospective purchaser, co- lender, participant, investor, transferee, assignee and servicer of the Loan Financing, any arranger of the Loan Financing and their assigns, any actual or prospective investor (including agents and advisors) in any securities evidencing a beneficial interest in, or backed by, the Loan Financing, any rating agencies actually or prospectively rating any such securities, any indenture trustee and any institutional provider(s) from time to time of any liquidity facility or credit support for such Loan Financing (together the "Beneficiaries").

A Beneficiary shall be permitted to rely on the report only on the condition that it acknowledges that Cushman & Wakefield shall not be liable to the Beneficiary for any special, indirect or consequential damages and that Cushman & Wakefield’s total aggregate liability to you, all lenders, agents, the Beneficiaries and any other third party who seeks to rely on the report (the “Aggregate Cap”) shall be limited to a sum not to exceed the lesser of 25% of the Market Value or forty-five million pounds (45,000,000 GBP). Reliance by the Beneficiaries and any other third parties on the report shall constitute deemed acceptance of the above provisions in this paragraph 10 and that any matters or disputes arising as a result shall be governed by English law and subject to the exclusive jurisdiction of the English courts. This report may be disclosed, without reliance, to any rating agency in connection with a Securitisation.

Otherwise, our valuation is confidential to you, for your sole use and for the specific purpose stated. This report has no other purpose and should not be relied upon by any other person or entity. We will not accept responsibility to any other third party in respect of its contents.

11 Certification We certify that, to the best of our knowledge and belief:

• The statements of fact contained in this report are true and correct. • The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions and are our personal, impartial, and unbiased professional analyses, opinions, and conclusions. • We have no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved.

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• We have performed no services, as a valuer (appraiser) or in any other capacity, regarding the property that is the subject of this report within the three year period immediately preceding acceptance of this assignment. • We have no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. • Our engagement in this assignment was not contingent upon developing or reporting predetermined results. • Our compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favours the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. • Our analyses, opinions, and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice, only insofar as this is also in conformity with the RICS Valuation Professional Standards (the “RICS Red Book"). • We have made a personal inspection of the property that is the subject of this report. • The following individuals provided real property valuation assistance to the person signing this certification:

Stuart Logan; Oliver Close; Jagruti Joshi; James Lockwood; Jack Smart; Charlie Armour; and Michael McCombe, all of Cushman & Wakefield.

12 Disclosure and Publication You must not disclose the contents of this valuation report to a third party in any way without first obtaining our written approval to the form and context of the proposed disclosure. You must obtain our consent, even if we are not referred to by name or our valuation report is to be combined with others. We will not approve any disclosure that does not refer sufficiently to any Special Assumptions or Departures that we have made.

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Signed for and on behalf of C & W (U.K.) LLP

Rupert Dodson FRICS Executive Partner RICS Registered Valuer +44 (0)20 7152 5042 [email protected]

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Value Summary

Informal of which is Vacant Property name Address City Tenure valued Market Value Reinstatement FF&E Possession Value Assessment Hollis Croft Hollis Croft, Sheffield, S1 4BG Sheffield Freehold £ 91,230,000 £ 3,628,664 £ 80,730,000 £ 67,192,000 Great Patrick Street 28-30 Great Patrick Street, Belfast, BT1 2LT Belfast Freehold £ 34,270,000 £ 1,223,350 £ 27,690,000 £ 24,473,000 Swanston House 41-45 Queen Street, Belfast, BT1 6ET Belfast Freehold £ 25,565,000 £ 784,206 £ 21,495,000 £ 19,791,000 Pittodrie Street 3-10 Pittodrie Street, Aberdeen AB24 5AD Aberdeen Heritable £ 48,100,000 £ 1,438,396 £ 41,670,000 £ 35,702,000

TOTALS £ 199,165,000 £ 7,074,616 £ 171,585,000 £ 147,158,000

Additional valuation commentary

Valuation Approach Each property has been valued having regard to trading potential from the Septemebr 2019 academic year. Each property is integral to the operation of the business and therefore the underlying value of the property can fluctuate to a greater degree when that trading potential is altered, either up or down, than is normally the case with most other types of commercial property. Consequently, if the net operating income (NOI) were to fall substantially short of estimated levels, then this would have a detrimental effect on future value. Conversely if the NOI were to rise substantially this would have a positive effect.

We have prepared a cash flow projection for each property reflecting estimated rental / room rates, occupancy, other income and operational costs together with revenue growth and expense inflation. We have arrived at each opinion of Market Value by adopting the discounted cash flow method of valuation based on the results of our cashflow projections.

Unless we have said otherwise: 1. the valuation is made on the basis that the property will be sold as a whole including all fixtures, fittings, furnishings, equipment, stock and goodwill required to continue trading; 2. we have assumed that the new owner will engage the existing staff and the new management will have the benefit of existing and future bookings or occupational agreements, all existing statutory consents, operational permits and licences; 3. we have assumed that all assets and equipment are fully owned by the operator and are not subject to separate finance leases or charges; 4. we have excluded any consumable items, stock in trade and working capital; and 5. we have assumed that all goodwill for the property is tied to the land and buildings and does not represent personal goodwill to the operator.

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OpCo / PropCo Structure Where there is a OpCo / PropCo structure in place, we have not reflected these internal arrangements in our valuation and we have assumed that a purchaser could choose to extinguish or replace the existing structure at the point of purchase with all cashflow effectively flowing directly to the owner of each property interest.

We have assumed that there are no special arrangements restricting a disposal related to any VAT clawback provisions.

Personal Property Allocation In arriving at our opinion of FF&E value we have used the following methodology. We have taken an average price per fit-out for a typical en-suite cluster or studio bedroom. We have also taken an average price for a typical amenity, including laundry, common room or cinema. Once we have arrived at the total FF&E value for each property we then applied an 10% adjustment to reflect a contingency and discounted the figure on a cycle of 8 years. This assumes that, typically, FFE will be updated or replaced on average every 8 years.

Therefore due to depreciation, in our figures supplied to you, those properties that are at the beginning of their 8 year cycle (the cycle is taken from each property’s build completion) date, will have a higher FF&E value at the Date of Valuation and those towards the end of the 8 year cycle will have a lower FF&E value at the Date of Valuation.

Purchaser’s Costs In some property markets, taxes, stamp duty and similar costs borne by the purchaser (“purchaser’s costs”) in a direct property transaction, are relatively high in comparison to the level of purchaser’s costs in a transaction of a tax efficient holding vehicle (a “SPV”). Therefore, in the interest of tax planning, and in expectation of maximizing the realizable value from a property upon disposition, it has become widespread in certain property market segments to hold a property, or only higher value property, within a SPV structure.

Upon disposition, the vendor’s expectation is that by offering the SPV for sale, rather than the property directly, the market would offer higher bids, commensurate with the relative reduction in purchaser’s costs. In the U.K. the practice of holding Student Accommodation properties in SPVs has become widespread and is the established market norm.

The RICS definition of Market Value relates to a transaction of an “asset”, where that asset is taken as being a legal interest in direct property, rather than an interest in a SPV. Adopting the RICS definition in the context of the market circumstances described above may produce a value opinion which is low, as it takes full account of purchaser’s costs relating to a purchase of property, directly. We have nevertheless reported Market Value, as instructed, and according to the RICS definition.

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A value opinion which more precisely reflects the most likely circumstances of a transaction (being that of a SPV), would require reporting Market Value subject to a “Special Assumption” that purchaser’s costs reflect those of a transaction of a SPV, rather than of a property directly.

Operator’s letting strategy As all of the Properties have been recently developed into a competitive local market, the operator, Student Roost, has adopted the strategy of capturing the maximum number of students as early as possible in the letting cycle by discounting weekly rents from market levels. We believe this is prudent strategy in the markets that these properties are located in whereby the property gains valuable traction and establishes a brand presence. The operator will increase the rents to catch up to market levels over a period of two to five years. The alternative strategy is to offer rooms at market rents which may result in lower occupancy for two to three years until the property reaches a stabilised position. Whichever route is taken, the intention is to increase the NOI and maximise returns by adopting prudent strategies suited to the local market.

We are aware of transactions that have taken place in the market where occupancy is low, and a rental top up is agreed so that the purchaser is able to acquire the property offering the yield that is required.

In our appraisal of each property, we have adopted the rents that have been advertised and provided to us which has resulted in high levels of occupancy for the 2019/20 academic year. Many of the the rents for various room types are, however, lower than market levels for comparable PBSA rooms. We have, therefore, applied relatively high rental growth rates over a four to five year period before stabilising at 2.5% per annum from year 6 of our cashflow. In assessing our opinion of value, we recognise that the running yields are low but our Going In Cap Rate (GICR) is at the level we believe is sensible and this drives exit value. We then considered the long term implied growth rate which we believe is prudent and sense checked each valuation on a market value per room basis.

Market Conditions – High Rise Cladding / Grenfell Tower On 14 June 2017, a fire at the Grenfell Tower apartment block in London became out of control resulting in significant loss of life and which destroyed the building. A public inquiry has been established to investigate the circumstances. This is planned to continue in the second half of 2019.

The Independent Review of Building Regulations and Fire Safety led by Dame Judith Hackitt was published in May 2018. One of the key recommendations of the Hackitt Review was for a new Building Regulations regime for residential buildings of 10 storeys (18m) or higher. The Government has not yet stated which measures recommended in the Hackitt Review will be implemented or the timing of any such regulatory changes. However, it has announced that Building Regulations will be amended from 21 December 2018 to ban the use of combustible materials on the external walls of new buildings over 18m containing flats, as well as, inter alia,

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buildings such as new hospitals, residential care homes and student accommodation. The ban also affects existing buildings undergoing major works or undergoing a change of use. Whilst a ban affecting lower rise buildings falling within these categories is not currently anticipated there remains uncertainty as the potential fire prevention measures that the Government might implement. Indeed, the Government made a series of further announcements on 18 December 2018 including how it proposes to implement a tougher and more effective regulatory framework to improve building safety. More specifically, it published a Hackitt Review Implementation Plan for consultation until 12 February 2019 and with a further consultation planned for Spring 2019 that will consider what type of both existing and new buildings the new Regulatory regime will apply to.

We are aware that market participants that are affected by the same or similar issues continue to review details of construction, health and safety, and particularly fire prevention, mitigation and means of escape from buildings where people sleep, albeit with the focus on tall residential buildings. However, in view of the continued lack of clarity on any regulatory changes, it remains too early to fully assess any valuation impact. Since the fire occurred, there has been limited evidence of market activity involving tall residential investments. In the light of these circumstances, this valuation has been undertaken in the context of an unclear regulatory environment and we would therefore recommend that it is kept under regular review. Similarly, in the short-term, it is also likely that potential investors and occupiers will be more cautious, and the liquidity and pricing of some properties may be impacted.

We note that each property has been developed post Grenfell and as such we would expect all materials used in construction to comply with the most recent quidelines on cladding. As all these properties are high rise blocks, it will be prudent to ensure compliancw with all fire and building regulations.

Stamp Duty Land Tax (“SDLT”) and Multiple Dwelling Relief (MDR) The relief from SDLT (LBTT in Scotland) was introduced with the intention of reducing barriers to investment in residential property. Where the relevant conditions are met, the relief operates to reduce the rate of SDLT payable on the acquisition of multiple residential properties. Transfer of student accommodation properties can benefit from the relief although eligibility will depend, among other things, on the design of the units, whether the property is subject to a long lease when sold and whether the residents are all limited to studying at a specific college.

The relief is calculated by averaging the total price for the whole asset to arrive at an average price for each individual unit and then determining the SDLT rate applicable to residential transactions at the average unit price. However, there is a minimum payable amount of 1% of total value. MDR applies to sales of multiple dwellings where each dwelling for these purposes is defined as a building used or suitable for use as a single dwelling. Generally, the relief should apply to modern or purpose built ‘cluster’ flats and studios. MDR is not available to student

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accommodation where it is limited or affiliated to only one institution (e.g. halls of residence) or where there is a lease for 21 years or more.

The Borrower has provided their opinion as to the number of dwellings that exist at each property on which we have relied in our assessment of MDR.

As is common market practice, we have assumed that MDR is available for all the properties (unless stated in each Individual Property Report) but as we are not tax experts, you may wish to seek professional advice in this regard to clarify the various tax issues outlined above and confirm that our approach is the correct one.

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B Individual Property Reports and Market Overviews

• “Hollis Croft”: Hollis Croft, Sheffield S1 4BG • “Great Patrick Street”: 28-30 Great Patrick St, Belfast BT1 2LT • “Swanston House”: 41-45 Queen St, Belfast BT1 6ET • “Pittodrie Street”: Pittodrie St, Aberdeen AB24 5AD

The UK Student Accommodation Occupational Market

UK Demand Analysis

• It should be noted that due to the release dates of different sets of data the UCAS information regarding applications is for the 2018/2019 academic cycle, whereas the most current data from the Higher Education Statistical Agency (HESA) reflects acceptances for the 2017/2018 academic year.

Applications

• As of January 2019, applications for most 2019 medicine, dentistry and veterinary science/medicine courses have been up 7%, a record year.

• There was an overall decrease of 0.6% in total applications for the 2018/2019 academic year down to 695,565 applicants. Compared with the previous academic year, the application figures are as follows:

• From the UK: 1.9% decrease (561,615 students)

• From the EU: 2.8% increase (52,620 students)

• Non-EU: 6.5% increase (81,325 students)

• Applications from domestic students (from the UK) fell for the second consecutive year. In contrast, the number of EU students increased from last year, and International (non-EU) students had the highest number of applications since records began.

• The rise in numbers could be due to a low value of the pound in contrast to other currencies. This has made the UK a more cost-effective option for international students.

• The rise in EU applications may be unexpected due to the on-going Brexit negotiations, however the government confirmed in April 2017 that EU students applying for university places in the 2018/2019 academic year will remain eligible for financial support. Despite these promising figures it is too early to assess the full impact of Brexit and what effect it will have on applications from EU students in 2019/2020 and in the longer term.

• Overall there has been a decline in the total number of applicants, year-on-year for the second year running. To understand how student application numbers are changing, we can look at the percentage difference from last year, split by location of application as seen below:

Source: UCAS • Up to the January deadline, there were 228,000 English 18-year-old applications to higher education, a decrease of 1% (2,870) from last year at the same point. English 18-year olds make up almost 40% of the total number of applications to UK higher education.

• This trend coincides with the demographic dip of 18 years in the UK.

• From 2020 to 2030, the number of 18 year olds in the UK is expected to increase by 25%.

Enrolments (Acceptances)

• Enrolments for the 2017/2018 academic year totalled 2,343,095, a 1.1% increase on the previous year. Despite shorter term fluctuations, student numbers are still below the 2011/12 record of 2.5million, when there was a surge in applications as English students were conscious of the upcoming tuition fee increases. Of all full-time degree programmes, first-degree enrolments accounted for 79% of total higher education enrolments – in line with previous years.

First Year HE Student Enrolments by Level of Study 2008/09 – 201718

Source: HESA

• HESA reported that non-EU first year student numbers grew between 2016/17 to 2017/18, increasing by 13,140 students. In contrast, since the European Union referendum (Brexit) result in June 2016, there has been a slight drop in the number of first year students from other European Union countries. However, the number of first year students for 2017/18 is still higher than they were in 2013/14 reflecting 125,125 students.

• Interestingly, and contrary to some expectations, increases in the cost of higher education (HE) has not drastically increased the number of students choosing to live within their parent’s or guardian’s home. The two most popular accommodation choices for students are “living in provider-maintained properties” and “other rented properties”, which includes accommodation such as house shares. These two groups comprise 885,410 full time students for the 2016/2017 academic year. Full-time and Sandwich Students by Type of Accommodation

Source: HESA

Higher Education Student Enrolment in the UK by level of study, mode of study and domicile (2017/2018)

Source: HESA

• The proportion of students from country of origin stayed relatively consistent from last year. In 2017/18 academic year UK domiciled students accounted for 80.4% of all UK HE enrolments, a 0.5% decrease from 2016/17. The proportion of EU students (5.9%) was fairly consistent with a 0.1% increase, and the remaining 13.7% came from countries outside the EU (a increase of 0.4% on 2016/2017)

Top Ten European Union countries of Domicile

Source: HESA

• Italy has seen a notable rise to become the top European Union country sending students to the UK, overtaking five other countries in the last five years, a percentage increase of 47%. In contrast, Ireland saw the largest percentage decrease of 17% over the same time period.

Top Ten Non EU countries of Domicile

Source: HESA • China sent more students to the UK than any other overseas country. In 2017/18, one third of all non-EU students were from China. The number of students from China was also 21% higher in 2017/18 than in 2013/14. Nigeria has seen a 42% decline in student numbers coming to the UK over the five year period, dropping behind the United States, Hong Kong and Malaysia.

Trends in Higher Education • As of the 2017/18 academic year the government has increased the maximum tuition fees from £9,000 to £9,250. In October 2017 Theresa May pledged to freeze tuition fees at £9,250 and has announced plans to raise the income level that triggers student loan repayments from £21,000 to £25,000 per annum • The Augar Review in tuition fees is due to be published this year with recommendations that could range from reducing fees in some HEI’s to a system that pegs fees on earning potential.

• The government is running a consultation into accelerated degrees, which would offer students two- year degrees. Universities would be allowed to charge £2,000 a year more in fees (a 20% premium). This could be seen as appealing for many applicants, as it would reduce the overall costs of Higher Education.

• The non-EU international market is vital for universities as they can charge above the current limit of £9,250 for tuition fees. For the 2017/18 academic cycle, HESA reported that this group represents 16.1% of the total full time student population.

• In funding terms these students have a much greater impact on the income profile of UK universities. In 2018, International Students paid between £10,000 and £35,00 per annum though there is no upper limit on the fees for international students applying to postgraduate courses.

• Universities are lobbying to ensure that any future immigration policy changes do not apply a broad- brush approach that restricts the mobility of students. The government has confirmed that EU students on courses starting in 2018 will still be able to obtain funding for the duration of their course.

• The impact of Brexit may be subdued by domestic students’ continuing desire to study away from their home regions and a potential increase in non-EU students.

University Competitiveness

• Universities are operating in an increasingly competitive market. With the shift in financial sources towards tuition fee income and away from public funding, student recruitment has become an even more important strategic focus of university activity. With the cessation of student number controls in 2015, there are predicted to be approximately 100,000 additional university places by 2035. The UCAS undergraduate entry system has also been amended, with students now able to “trade up” and move within the entry system with greater ease. This means that university recruitment – a world that used to be stable and quota driven – is now becoming far less predictable.

• With students looking to get in to the best possible institution, and with more choice than ever, successful and fleet-of-foot universities are able to fulfil their strategic ambitions. However, this inevitably means that some institutions will be left behind. This has implications for the universities themselves, but also for those who invest in and around them.

• In this new world, the universities who are likely to do best can bring together a range of positive attributes that can be demonstrated to students and to their partners and stakeholders.

• The demands on universities are greater than they have ever been. The quality and age of their academic and residential facilities, and a definable distinctive vision and ability to convert and please their students are all key in recruitment and securing outcomes. This has led to huge capital investment into academic and residential facilities on campus.

• In general, long term demand for a highly qualified and skilled workforce as well as demonstrably better long-term career outcomes and earnings potential for university graduates, will continue to be main drivers of demand for H.E.

UK Supply Analysis

• We estimate the number of purpose-built student accommodation (PBSA) beds in 2018 has reached 627,000, reflecting an increase of 4.2% on the previous year. There have been exceptionally strong development plans in major cities such as Glasgow and Newcastle, both of which have pipelines of over 6,000 bed spaces.

• Growth has predominately come from the private sector delivering over 80% of the new supply. Stock development continues to be driven by studios, which is again the room type showing the fastest growth in the private PBSA market, comprising over 55% of all new stock.

• It is likely that many of these bed spaces have been driven by a focus on land cost, rather than student demand for these stock types. In many cases, adequate research does not appear to have been conducted into local demand conditions, meaning that some stock types and operators are experiencing difficulties – despite demand continuing to outstrip supply at a national level.

• These difficulties mean that tactics such as flash sales and significant discounts have been employed in a small number of markets to drive occupancy. Growing competition within the university sector requires a greater focus on resources and the improvement of teaching, academic and campus infrastructure. As such, student accommodation is not always a core priority within some institutions.

• In addition, at some universities there is limited scope for improvement in the residences due to budgetary constraints. University stock types are more likely to be outdated contrasting with the granular innovation and improvement in the purpose-built private sector. These trends mean that an increasing number of universities see the benefit of working with the private sector. The graph below illustrates the quality of university owned PBSA as compared with privately owned PBSA where a score near 1 is considered very poor and a score near 5 is regarded as exceptional:

Cushman & Wakefield Student Accommodation Tracker, rating the quality and specification of every purpose-built development in the UK with a score of 1-5.

• Over the last five years there has been a consolidation of operators leading to a structural change in the operating market. Unite still lead the way with over 50,000 bed spaces under management. Liberty Living has returned to its second-place position in the table last year following the acquisition of two portfolios. Following its rapid expansion, Empiric’s Hello brand had reached the top 10 rankings of operators but has since faced crisis at corporate level. IQ continue to expand having acquired the Regent Portfolio in 2017 and is now third place behind Unite and UPP.

The UK Student Accommodation Investment Market

UK Overview • Student accommodation in the UK is a sector worth in excess of £50 billion and over the past decade has become a key investment market. It is attracting growing interest from investors, developers and private operators. Over the period from 2009-2017, the student housing market in the UK has outperformed many of the more traditional asset classes, demonstrating strong capital returns and year on year rental growth.

• Given the recent high levels of investment in the sector with circa £4.8 billion traded in 2017 and up to £4.0 billion expected to be traded in 2018, PBSA has become a recognised and established asset class with a range of investors and institutions. Much of the activity is dominated by international investor funds and owner-operators acquiring portfolios continuing the trend towards consolidation and the desire to acquire additional scale.

• The main attractions of investing in the student housing market are:

o The sector offers portfolio diversification

o Often counter cyclical characteristics to the wider real estate market

o Stable long-term income streams and rental growth

o Higher performance and returns during the downturn post Lehman crisis in 2008

o Favourable supply & demand dynamics, with a stable source of students in UK

o Often low vacancy and low tenant defaults

o The UK offers world class education and remains in the top three most popular destination for international students. In recent years, Australia has become an attractive option for the global student population and is now in equal position to the UK as can be seen from the graph:

OECD 2016 Global market share of internationally mobile students for leading study destinations

• A continuing trend over the last three to four years has been the inflow of capital from international sources into the PBSA sector which accounted for over 50 to 70% of investment from 2013 to 2018. • There have been high-profile acquisitions particularly from North American private equity companies such as Hines, Starwood and CPPIB. Other major transactional activity in the market includes:

• Brookfield, headquartered in Canada acquired the Enigma Portfolio in January 2018 for £520 million. The transaction equates to £96,172 per bed and reflecting a reported blended yield 5.35%. The portfolio comprised of 5,407 beds in 15 properties across the UK.

• In December 2017, IQ acquired the Pure Student Living portfolio for £869 million. The portfolio comprised 11 properties, 3,644 beds, across five cities in the UK but with a London bias. We provide further commentary below.

• Other portfolios such as The Mayflower, Fusion and Rengen among others have traded in the last 12 months.

• In addition to existing investors and operators there are still several overseas investors with unfulfilled requirements circling the market looking to acquire scale and to partner with well-known operators. Between 2013 and 2015 prime yields compressed between 50 and 100 basis points across all London and prime regional centres.

• During 2016 and 2017, direct let PBSA property yields had not moved significantly across most regional cities except those located in super prime regional cities and London where yield compression of 25bps to 50bps was evident.

• The PBSA market further strengthened in 2018 as the effects of the impending London Plan led to investors targeting PBSA properties in London. This interest has spread to super prime (such as Cambridge, Brighton and Edinburgh) and prime regional cities (such as Birmingham, Nottingham and Sheffield) causing yields for well located and good quality PBSA properties to sharpen. • Some properties in secondary locations have seen yields move out as the increased supply of PBSA properties in some cities puts pressure on those buildings located in less than prime spots.

• Prime yields for university leased accommodation have arguably hardened during 2017 and 2018 as these assets become rarer given the growing reluctance from universities to sign up to long leases. Forward funding has become an increasingly popular route to enter the market or increase exposure.

• Below is a table depicting our opinion of the range of yields for direct let PBSA:

Direct Let Proposition £20-50m Yields

Prime London (Zones 1 & 2) 3.75/4.25%

Prime London (Zones 3 & 4) 4.25/4.75%

Super Prime Regions 4.75/5.00%

Prime Regions 5.25/5.75%

Secondary 5.75/6.50%

Tertiary 7.0% Plus

• It is important to note that there are much wider yield differentials across various locations outside of London. While prime regional markets are either stable or trending towards further yield compression, some secondary regional markets are displaying some signs of yield decompression although this can be very asset specific. The primary reason for this differential is an expectation of rental growth in the direct let market. • Portfolio premiums are also having an impact on pricing, and can range between 25 – 50 basis points, on a net initial basis. The influence of portfolio deals is skewing how transactions are analysed and it is difficult to distinguish and measure the influence of transaction scale to pricing.

• Average UK rental growth in 2018 has been 2.8% compared to 2.9% in 2017 across all purpose- built accommodation.

• Evidence suggests that students are making complex buying decisions and are price conscious. This highlights the need for developers and operators to fully explore the dynamics of individual markets in order to properly meet student need and expectations in pricing and quality.

Threats Threats to the PBSA investment market: • It is arguable that the vote to leave the European Union has gained the UK a reputation for being unwelcoming to migrants and therefore potential students. As mentioned previously, however, the Government has confirmed that EU students applying for university places in the 2018/2019 academic year will remain eligible for financial support. Data from UK Border Control suggests that visas were only restricted to students enrolled in institutions that run courses other than for higher education.

• The longer-term impact of Brexit is certainly a threat, though it is too soon to know what impacts it will have on the market. The Government and local councils understand that higher education is an important and growing contributor to the UK economy with £95 billion contributed to GDP in 2015 (Oxford Economics 2017), representing an increase of 15% from 2012.

• It is thought by many universities that BREXIT will adversely impact research funding and the mobility of staff from the EU. The full effects of BREXIT as it evolves will become apparent over the coming months but in the meantime, universities are exploring and putting in place strategies to mitigate the negative impact of the UK leaving the EU.

• The recently published Auger Review has recommended that tuition fees should be reduced. It is thought that a number of universities will be affected by such a funding cut if implemented without being compensated from another source.

• Higher education has been undergoing a raft of changes over the last decade with the introduction of tuition fees, student loans and the subsequent influence on University funding. The impact of all these and other changes are yet to fully filtered through.

• Students are now considered consumers for both the university and private housing. There is pressure to provide a high-quality product and service to the students. Maintaining facilities and updating décor is integral to keeping up with rapidly changing trends.

• Latest estimates of average student debt is £50,800, an increase of over 65% from the period when tuition fees were £3,275 to the current £9,250 per year. The higher cost of living, tuition fees and inflation may influence students’ decision making in relation to higher education and their accommodation. Recent trends suggest, however, that apart from currency fluctuations, international students are not affected by the fee structure and when compared to the global education market, the UK is still considered relatively good value.

• Investment activity from the USA will be influenced by their economic outlook and corresponding currency fluctuations. We understand that universities across the USA have reported a decline in applications from international students following the election of Donald Trump as President.

• Many commercial operators have seen the viability of proposed development schemes dented by property and site related issues, such as planning issues. The introduction of the Community Infrastructure Levy (CIL), and its interaction with Section 106 agreements, will also impact the viability of student accommodation schemes.

• Pressure on the private rented sector and the growth in students across the UK have inevitably led to pressures on the private rented market and an increase in Houses in Multiple Occupation (HMOs) – in some cases leading to concerns around the “studentification” of certain areas. Consequently, a number of councils have sought to restrict the number of HMOs through Article 4 powers – legislation that allows the restriction of such accommodation. Coupled with growing pressures on the UK housing market, this is likely to encourage councils to approve dedicated student accommodation developments to alleviate these issues.

• Increases in land prices due to more valuable competing uses such as residential.

• Construction cost inflation reducing margins and thus affecting the viability of new developments.

• Restrictions imposed by some local authorities reducing the viability of schemes with an obligation to provide affordable housing and CIL payments, particularly in London

• While the availability of online courses such as those on MOOCs does not pose a significant threat at present, it is a trend that may develop as more high-profile universities take part. The student experience of learning on campus is an important one and will influence the choices they make which will limit use of online courses in the medium term.

Future Sustainability and Key Risks • Opportunities require detailed risk analysis to assure investors that schemes are sustainable, given the complex dynamics underpinning demand. Some of the factors and complexities are referred to below:

• Understanding the big picture: including demographics; labour markets; short and longer-term effects of recession upon education; government policy effects on funding and tuition fees and perceptions of affordability of HE.

• Appreciating the institutional perspective: including national and international competition in student recruitment; attitude to partnerships; quality residential estates and their relationship to the student experience.

• Understanding the student perspective: including the patterns of study away from home; debt, fees and finance; the perception of education as an investment; willingness and ability to pay for accommodation under the new tuition fee regime; preferences and culture of on/off campus living; alternatives and competition.

• Alternative funding routes: The strength of universities covenants and their (comparatively) easier access to finance has seen some universities returning to conventional procurement with options of disposal/partnership on alternative assets either at the time or in the future.

• The student accommodation market is changing and as a result, new opportunities are emerging, coupled with increasing risks. Developers and investors need to be selective and carefully assess risk by choosing appropriate cities and sites. Product development for an increasingly segmented market will be important as students become more aware of the options available to them. For all investors, understanding the universities’ requirements and policy landscape will be ever more important.

• Competitive advantage will be a deciding factor in the continued sustainability of both the institution and its residential market (strong and strategic universities, with fit-for-purpose attractive residences, proactive marketing systems, significant planned investment in facilities, learning and research, and attractive locations).

Student Investment Transactions • We provide details of recent direct let student accommodation investment transactions below. The yield will reflect the perception of risk and growth of the property and among other things these will depend on the macro and micro location, quality of the buildings, level of rents, occupancy levels and prospects of rental growth.

• In view of its more unique nature as student accommodation, a greater degree of judgement was applied in valuing the property than usual, due to the lack of relevant market evidence.

Cushman & Wakefield | Bank of America Merrill Lynch Individual Property Record Valuation Date: 12 July 2019 Hollis Croft, Sheffield, S1 4BG

INDIVIDUAL PROPERTY RECORD

HOLLIS CROFT, SHEFFIELD, S1 4BG

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Cushman & Wakefield | Bank of America Merrill Lynch Table of Contents Valuation Date: 12 July 2019 Hollis Croft, Sheffield, S1 4BG

TABLE OF CONTENTS

Executive Summary

1. Location and Description

2. Structural Condition and Repair

3. Site

4. Environmental Considerations

5. Statutory Matters

6. Taxation

7. Tenure and Occupational Interests

8. Student Market Considerations

9. Valuation Approach and Opinions of Value

10. Market Value

11. Market Value Based on Special Assumptions

12. Security of the Loan

Appendices

A. Maps and Plans

B. Valuation Calculations

C. Rent Comparables and Map

D. Sheffield Market Commentary

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Cushman & Wakefield | Bank of America Merrill Lynch Executive Summary Valuation Date: 12 July 2019 Hollis Croft, Sheffield, S1 4BG

EXECUTIVE SUMMARY

This summary is strictly confidential to you as the Addressee. It must not be copied, distributed or considered in isolation from the full report.

Property Summary

Location The Property is located within the heart of Sheffield city centre fronting Hollis Croft. The Property is well located in terms of accessibility with Broad Lane (B6539) to the immediate south providing an arterial route across the north of the city centre, and Netherthorpe Road to the north west forming part of Sheffield’s city ring road. Sheffield’s railway station is located approximately c.1km (0.65 miles) to the south east of the Property and accessed within a 15 minute walking time. The City’s main retail area along Fargate is located c.450m to the south east of the Property. The nearest University of Sheffield campus buildings are located approximately 250m south west of the Property (approx. 5 minutes’ walk) with the University’s main campus located c.800m to the west of the Property (approx. 10 minutes’ walk). Sheffield Hallam University’s main city campus is located c.850m to the south east of the Property and accessed within a 15 minute walking time. The University’s Collegiate Crescent Campus is located approximately 1.60 km (1 mile) south west of the Property and an approximate 25 minutes walking time. The Property is considered well located for both Universities as well as city centre amenities.

Description The Property comprises a new-build purpose-built student accommodation scheme comprising 3 block elements separated by Hollis Croft. The scheme is to achieve practical completion for the commencement of the 2019/20 academic year. The Property will provide a total of 972 student bedspaces comprising 611 en suite bedspaces, 349 studios, 6 1-bed apartments and 6 2-bed apartments. Upon practical completion all accommodation will be finished to a good quality standard and specification for the student accommodation market. The Property provides a high level of onsite communal facilities throughout including a reception area and management office, a number of common areas, private study rooms, gym, cinema room, karaoke booths, courtyard areas, laundries and cycle storage.

Approximate year of New-build - 2019 construction

Specification The individual en suite bedspaces, studios and apartment units are all finished to a good standard and specification for the student accommodation market. The Property provides a high level of onsite communal facilities for students.

Condition The Property is to provide a new-build purpose-built student residential scheme.

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Cushman & Wakefield | Bank of America Merrill Lynch Executive Summary Valuation Date: 12 July 2019 Hollis Croft, Sheffield, S1 4BG

As at the date of our inspection the Property was nearing practical completion to provide a new-build purpose-built student residential scheme. We are advised that practical completion of Blocks 1 and 2 is scheduled for 1st August 2019, with Block 3 achieving completion on the 31st August 2019. There were however a significant number of final works to be completed to achieve practical completion, predominantly comprising final finishes to communal hallways and staircases, communal areas, and external landscaping works. The Bank should therefore satisfy themselves that all final works are completed as per the expected practical completion dates and any final snagging required following practical completion is undertaken by the Contractor without delay. As instructed, our valuations are provided on the assumption that the Property is a fully completed student accommodation scheme, with no outstanding works of construction remaining. The internally inspected accommodation was finished to a good quality specification throughout and provides a good condition given its new construction. Our internal inspection of the Property was limited to a select number of accommodation units. We have therefore made the assumption that the accommodation which was not will be finished to a similar condition to that inspected.

EPC Blocks C & D - B 26 (5 July 2019) We have not identified any EPC assessments for the remaining blocks or the individual cluster flats, studios and apartments within the subject property. The current assessment of Blocks C and D is currently compliant with the minimum requirements of the Regulations. We recommend your legal advisors ensure EPC assessments are completed for the remaining blocks following practical completion.

Environmental Issues None of which we are aware. We have been provided with a copy of a Phase I Environmental Site Assessment (ESA) dated July 2019) prepared by Delta Simons (Ref 19- 1146.01) which we have reviewed.

Tenure Freehold under Title Numbers SYK526656, SYK526655, YWE41803, YWE34903 & SYK354069.

University Agreements None.

Tenancies We have been provided with cashflows by the Borrower with forecast income projections for the 2018/19 and 2019/20 academic years. The Property is operated on a mainly direct-let basis. We are advised that the Property has achieved c.90.5% occupancy by room number for the 2019/20 academic year which the first year of trading. The advertised weekly rents for en-suite bed spaces ranges from £129 to £139 from 44 weeks for the 2019/20 academic year and up to £179 for studio rooms from 44 weeks.

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Cushman & Wakefield | Bank of America Merrill Lynch Executive Summary Valuation Date: 12 July 2019 Hollis Croft, Sheffield, S1 4BG

For the 2019/20 academic year we have assumed total revenue of £6,539,147 (95% occupancy) which compares against the Borrower’s estimate of £6,818,977 (100% occupancy). Please note that if any delay in practical completion of the building works affects occupancy then this may impact the NOI and the value reported. The commercial units are vacant at the Valuation Date.

Income, Yield and Market Value Summary

Valuation Date 12th July 2019

Year 1 Net Operating £4,936,068 Income (PBSA Element

Market Value £91,230,000

Of which Market Value £580,000 Commercial Element

Yield Profile (PBSA Year 1 5.30% Element) Year 2 5.71% Year 3 5.93%

Loan Security In our opinion, subject to the comments and Assumptions contained below and elsewhere in this Valuation Report, the Freehold interest in the Property provides reasonable security for the purposes of a loan.

Liquidity Good

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Hollis Croft, Sheffield, S1 4BG

PROPERTY RECORD

SHEFFIELD - Hollis Croft, Sheffield, S1 4BG

Inspection The Property was subject to an external inspection, from ground level and an internal inspection of a selection of accommodation types and communal areas, by James Lockwood MRICS on the 2nd July 2019.

1. Location and Description

1.1. Location

General • The city of Sheffield is located to the north of England and is the Metropolitan Borough in South Yorkshire. The City is located approximately 10 km (6 miles) to the south west of Rotherham, 48 km (30 miles) south of Leeds, 55 km (34 miles) east of Manchester and 201 km (125 miles) north of London. • Sheffield is situated within close proximity to the region’s motorway network, being located to the west of the M1 that links Leeds to the north and London to the south with access to the cities of Nottingham, Leicester and other towns.

Further maps and plans are attached in Appendix A. • Sheffield has a mainline railway station with regular direct services to Manchester Piccadilly and London St Pancras with journey times of approximately 51 minutes and 2 hours respectively. • Robin Hood Airport Doncaster and Sheffield is located approximately 29 kilometres (18 miles) to the east of the city centre.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Hollis Croft, Sheffield, S1 4BG

• The city is home to two universities, each having city centre campuses. The University of Sheffield’s campus is located on the western fringe of Sheffield city centre along Brook Hill (A57). • Sheffield Hallam University has two campuses. The University’s main city campus is located in the heart of Sheffield city centre, in close proximity to the railway station whilst the University’s Collegiate Crescent Campus is situated off Eccleshall Road to the south west of the city centre. • Sheffield city centre has wide appeal to the student population, with a range of chain and independent bars, restaurants and eateries, as well as an extensive shopping environment.

Situation • The Property is located within the heart of Sheffield city centre fronting Hollis Croft. • The Property is well located in terms of accessibility with Broad Lane (B6539) to the immediate south providing an arterial route across the north of the city centre, and Netherthorpe Road to the north west forming part of Sheffield’s city ring road.

• Sheffield’s railway station is located approximately c.1km (0.65 miles) to the south east of the Property and accessed within a 15 minute walking time or via the Super Tram network (City Hall or Cathedral stations situated within a 5 minute walk). • The City’s main retail area along Fargate is located c.450m to the south east of the Property. • The surrounding area provides a mixed-use location comprising of residential, student accommodation and commercial uses. • The nearest University of Sheffield campus buildings are located approximately 250m south west of the Property (approx. 5 minutes’ walk) with the University’s main campus located c.800m to the west of the Property (approx. 10 minutes’ walk).

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Hollis Croft, Sheffield, S1 4BG

• Sheffield Hallam University’s main city campus is located c.850m to the south east of the Property and accessed within a 15 minute walking time. The University’s Collegiate Crescent Campus is located approximately 1.60 km (1 mile) south west of the Property and an approximate 25 minutes walking time. • The Property is considered well located for both Universities as well as city centre amenities. • The main university campuses are located as follows:

1.2. Description

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Hollis Croft, Sheffield, S1 4BG

Summary • New-build purpose-built student accommodation scheme comprising 3 block elements separated by Hollis Croft, to achieve practical completion for the commencement of the 2019/20 academic year. • Property provides a total of 972 student bedspaces comprising 611 en suite bedspaces, 349 studios, 6 1-bed apartments and 6 2-bed apartments. • Upon practical completion all accommodation will be finished to a good quality standard and specification for the student accommodation market. • The Property provides a high level of onsite communal facilities throughout the scheme elements to include reception area and management office, a number of common areas, private study rooms, gym, cinema room, karaoke booths, courtyard areas, laundries and cycle storage.

Construction • The Property comprises a new-build purpose-built student accommodation scheme comprising 3 block elements separated by Hollis Croft. • The scheme is to achieve practical completion for the commencement of the 2019/20 academic year. • We are advised that Blocks 1 and 2 are to achieve practical completion on the 1st August 2019, with Block 3 achieving completion on the 31st August 2019. • As at the date of inspection there a significant number of final works to be completed to achieve practical completion, predominantly comprising final finishes to units (installation of appliances and white goods), finishes to communal hallways and staircases, fitting out communal areas, and external landscaping works. • Our opinions of value are provided on the Assumption that the Property achieves practical completion as advised. Block 1

• Block 1 is situated fronting the southern side of Hollis Croft, to the western element of the site and extends over 5 to 7 levels given the sloping nature of the site. • External elevations are a mix of brick types below flat roofs with some green roof elements. Apartment units to the top most floor benefit from roof terrace areas. • Windows throughout the block are double glazed in metal casements.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Hollis Croft, Sheffield, S1 4BG

• A pedestrian access leads between Block 1 and neighbouring Block 3 through the scheme from Hollis Croft to Garden Street. • Public open space is provided between Block 1 and Block 3, together with landscaped courtyard areas to the rear of Block 1. • The Block is accessed from the Hollis Croft frontage and provides a large ground floor communal accommodation, including karaoke booths, accessed from the area of public open space.

Block 2

• Block 2 is situated to the northern side of Hollis Croft and extends over part 3, part 7 and part 8 levels. • The block construction is as per Block 1 above. • The Block is accessed via 2 entrances from the Hollis Croft frontage, each leading to foyer areas with full height atrium, from which the upper floors are accessed, as well as ground floor communal accommodation. The Block additionally provides a cinema room, laundry and bike storage.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Hollis Croft, Sheffield, S1 4BG

Block 3

• Block 3 is situated neighbouring Block 1 to the southern side of Hollis Croft and to the eastern site element. • The Block comprises of a horse-shoe element extending over part 5, part 7 and part 9 levels together with a tower element extending over 17 levels. • The horse-shoe element is constructed as per Block 1 and Block 2 above. • The tower element similarly has a mix of brick elevations incorporating double glazed window units as above. • Two pedestrian links lead through the horse-shoe element from Hollis Croft though to Garden Street, from which areas of public open space are provided between Block 1 and Block 3 and around the foot of the tower element. • The accommodation is accessed from the lower pedestrian link, and provides the scheme’s main reception and management office, together with gym, cycle storage, and 3 commercial units.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Hollis Croft, Sheffield, S1 4BG

Cluster Flat Accommodation

• The Property provides a total of 611 en suite bedspaces across a range of cluster flat sizes. • The rooms are offered as ‘Bronze’, ‘Silver’ and ‘Gold’ room types, varying dependent on room size and number of bedspaces sharing a cluster flat. • All bedspaces throughout the blocks are finished to an identical, good quality standard of fixtures and fittings, comprising the following: » Plastered and painted walls and ceilings throughout incorporating recessed lighting. » Timber effect vinyl flooring to bedspaces and living/kitchen areas with hard-wearing carpet floors to hallways. » Heating via electric wall-mounted heaters and time controlled ‘boost’ buttons.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Hollis Croft, Sheffield, S1 4BG

» WiFi internet hub within each cluster flat. » Hard-wired smoke detectors. » ¾ size bed with underbed storage. » Built-in desk with drawers, notice board, wall mounted shelving and desk chair. » Double wardrobe with drawers. » Shower pod comprising ceramic sanitary-wear with stainless steel fittings, wall mounted mirror, bathroom cabinet, recessed LED strip lighting, thermostatic shower fitting and glazed shower door.

• The kitchen / lounge area serving each cluster flat are also decorated to a similar specification and are furnished as follows: » Modern fitted kitchen with base and wall units. » Laminate work surfaces with matching upstands. » Sink and drainer with modern mixer tap. » Integrated appliances to include 4-ring ceramic hob, extractor hood and electric oven together with combination microwave and free-standing fridge/freezer (2 of each appliance to 6+-bed cluster flats). » Fabric sofas with coffee table. » Dining table and chairs.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Hollis Croft, Sheffield, S1 4BG

Studios • The scheme provides a total of 349 studios, offered as ‘Bronze’, ‘Silver’, ‘Gold’ and ‘Platinum’ room types, varying dependent on room size. • The studios throughout the blocks are again identically finished and similarly appointed to the en suite bedspaces in terms of fixtures, fittings and shower pods. • Each studio provides kitchenette area similarly appointed to cluster flat kitchens but including the following differences: » Integrated appliances to include 2-ring ceramic hob, extractor hood and combination microwave oven with free-standing under-counter fridge/freezer. » Dining table and 2 chairs.

1 and 2-Bed Apartments • The scheme provides a total of 6 1-bed and 6 2-bed apartments. • As at the date of inspection we were not permitted access to either apartment type. • We are advised that the bedspaces, en suite shower pods and kitchen areas are finished and appointed as detailed above. • The individual unit rents and values we are reporting are on the Assumption that the internal specification of the en suite bedspaces and studios which were not internally inspected are of a similar standard to those inspected and as detailed above. Should it be found that the units which were not internally inspected provide a lower quality specification, we should be informed immediately and allowed to reconsider our valuations. • Our opinions of rents and values are provided on the basis of the quality and specification of the inspected accommodation.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Hollis Croft, Sheffield, S1 4BG

• Should it be found that the accommodation provides a different specification or mix of accommodation types to that as advised, we should be requested to revisit our valuations. Commercial Accommodation • The commercial accommodation to the ground floor of Block 3 are finished to a shell specification, with glazed external windows and access doors. • One unit appeared to be being fitted out by the Borrower as a demonstration kitchen/private kitchen for student use. We recommend your legal advisors confirm this position.

1.3. Accommodation Student Accommodation • The Property provides a total of 972 student bedspaces arranged across 3 blocks providing a mix of en suite cluster beds; studios; 1-bed and 2-bed apartments, together with onsite communal accommodation. • We have been provided with a breakdown of accommodation by the Borrower on which we have relied. • We have not undertaken a measured survey of the Property. As is consistent with the student accommodation sector, rents are based upon weekly rents per room and not on a price per square metre or square foot. • We detail below a breakdown of the advised accommodation:

Room Type No. Units

En Suite Bronze 271

En Suite Silver 298

En Suite Gold 42

Studio Bronze 114

Studio Silver 107

Studio Gold 93

Studio Platinum 35

1-Bed Apartment 6

2-Bed Apartment 6

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Hollis Croft, Sheffield, S1 4BG

Room Type No. Units

Total / Average 972

• Our valuation is based on the above accommodation mix as advised. Should it be found that the breakdown of accommodation is different to that as advised, we should be requested to revisit our valuations. Commercial Accommodation • In addition to the above, the Block 3 element of the scheme will provide the following commercial accommodation:

Unit Description Unit Size Unit Size Sq M (GIA) Sq Ft (GIA)

Unit 1 Ground Floor Commercial 65.3 703

Unit 2 Ground Floor Commercial 161.6 1,739

Unit 3 Upper Ground Floor Commercial 142.5 1,534

Commercial Total 369.4 3,976

Parking Provision • No parking provision.

2. Structural Condition and Repair • The Property is to provide a new-build purpose-built student residential scheme. • As at the date of our inspection the Property was nearing practical completion to provide a new-build purpose-built student residential scheme. • We are advised that practical completion of Blocks 1 and 2 is scheduled for 1st August 2019, with Block 3 achieving completion on the 31st August 2019. • There were however a significant number of final works to be completed to achieve practical completion, predominantly comprising final finishes to communal hallways and staircases, communal areas, and external landscaping works. • The Bank should therefore satisfy themselves that all final works are completed as per the expected practical completion dates and any final snagging required following practical completion is undertaken by the Contractor without delay. • As instructed, our valuations are provided on the assumption that the Property is a fully completed student accommodation scheme, with no outstanding works of construction remaining. • We have not carried out a building or condition survey. • We have not been provided with a copy of a Building or Condition Survey or a Mechanical and Electrical Systems Report, Lift Report or Fire Systems Report. • Our inspection of the external parts of the Property was from ground floor level only and as such we have not inspected the roofs. Our internal inspection comprised of a mix of cluster flat bedspaces, studios and apartment types together with the scheme’s communal accommodation.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Hollis Croft, Sheffield, S1 4BG

• The internally inspected accommodation was finished to a good quality specification throughout and provides a good condition given its new construction. • Our internal inspection of the Property was limited to a select number of accommodation units. We have therefore made the assumption that the accommodation which was not will be finished to a similar condition to that inspected. • Upon practical completion we have assumed that all works of construction will have been satisfactorily carried out in accordance with current British Standards and any relevant codes of practice. We have further assumed that all building works are covered by warranties/guarantees in the event of any future defects due to workmanship/materials which may need addressing. • We recommend that your legal advisors confirm that where warranties and guarantees are provided in relation to the building works, these are assignable to the Bank and any future financial lending institutions and/or purchasers as required. • The nature of student accommodation is such that in order to maintain the appearance of the Property and student demand, and to protect the Bank’s security, the Borrower will have to ensure they are proactive in the management, maintenance and repair of the building, undertaking a planned preventative maintenance programme to prevent any deterioration in items which need repair, ensuring operating costs are minimised.

Services • We have assumed that the Property is connected to mains water, electricity and sewerage services.

Remaining Useful Economic Life • We consider the building has a remaining useful economic life, provided it is properly maintained, of 30 years.

Estimated Reinstatement Cost Assessment • Our indicative guide to the Day One Cost is in the order of £67,192,000 (exclusive of VAT). C&W has not carried out a formal reinstatement cost assessment. • This guide figure envisages reconstructing the Property at the Valuation Date with clearance and reinstatement using modern methods and materials, which may not necessarily be appropriate or permitted. It does not reflect any additional costs attributable to conservation area status or listed building status (or similar – for example proximity to listed buildings) • The provision of this guide figure is strictly in accordance with the terms of the Engagement and you should not rely on this guide for any purpose before it has been confirmed by a formal assessment carried out by a building surveyor or other person with sufficient current experience of replacement costs.

3. Site • • The Property comprises of 3 site elements with the site to the south of Hollis Croft divided into two as shown below.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Hollis Croft, Sheffield, S1 4BG

Boundary

Area • Based on Ordnance Survey plans we calculate the approximate site area to be:

Site 1 0.44 acres 0.18 hectares

Site 2 0.97 acres 0.39 hectares

Site 3 1.08 acres 0.44 hectares

Ground Conditions • We have not been provided with any information that indicates there are adverse ground conditions affecting the Property.

Archaeology • We have made an assumption that the site has no archaeological significance.

Flooding Risk • Plans reviewed by us on the Environment Agency website indicate that the Property is not in, or near to, a sea or river floodplain and that the site is considered to have a low likelihood of flooding. • The Environment Agency plan is shown below with the approximate position of the subject Property is shown by a crosshair:

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Hollis Croft, Sheffield, S1 4BG

Source: Environmental Agency Website • The Environment Agency map distinguishes between the different levels of flooding risk as follows:

High: High risk means that each year this area has a chance of flooding from rivers or the sea is greater than 1 in 30 (3.3%).

Medium: Medium risk means that each year this area has a chance of flooding from rivers or the sea of between 1 in 30 and 1 in 100 and (1% - 3.3%).

Low: Low risk means that each year this area has a chance of flooding from rivers or the sea of between 1 in 100 and 1 in 1,000 (0.1% - 1%).

No Very Low: Very low risk means that each year this area has a chance of flooding from shading rivers or the sea of less than 1 in 1,000 (0.1%).

• The EA map indicates that the site is considered to have a ‘Very Low’ likelihood of flooding. • On 4 April 2016, a new scheme was introduced, called Flood Re, to enable owners of residential properties in flood risk areas to obtain insurance on more affordable terms. Designed by the Government and the insurance industry, Flood Re will collect a sum from every home insurer in the UK and then take responsibility for the flood risk part of the policy and manage a central fund. In the event that a householder has to make a claim on their insurance policy Flood Re would reimburse the insurer from the central Flood Re fund.

4. Environmental Considerations and Environmental Performance

4.1. Environmental Considerations • We have made the enquiries referred to in the terms of the Engagement. • We have been provided with a copy of a Phase I Environmental Site Assessment (ESA) dated July 2019) prepared by Delta Simons (Ref 19-1146.01) which we have reviewed. • We note that the Report provides a desk-based environmental assessment of the Property and does not include any intrusive site investigations.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Hollis Croft, Sheffield, S1 4BG

• The Report details the following findings:

• The Report considers both perceived and actual risks using the pollutant linkage concept, with the principal measure of risk being whether significant harm (to people, animals, property, or statutory ecological receptors) or pollution of controlled waters (surface water bodies, aquifers, coastal waters, or territorial waters) is being caused, or whether there is a significant possibility of such harm being caused. • The Report provides the following ‘Land Contamination Risk & Liability Assessment’:

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Hollis Croft, Sheffield, S1 4BG

• The Report states the following recommendations:

• Save for the above, our enquiries have provided no evidence that there is a significant risk of contamination or other adverse environmental issues in respect of the Property. • Other than as referred to above, we have made no investigations to establish if there is existing or potential contamination or other adverse environmental issues and, in practice, a purchaser may undertake further investigations. • If it is subsequently established that contamination or other adverse environmental issues exist at the Property or on neighbouring land, or that the premises have been or are being put to a contaminative use, this might reduce the value now reported. You are advised to ensure your legal adviser takes up the usual enquiries on your behalf in respect of possible contamination or other adverse environmental issues before entering a financial commitment regarding the Property.

4.2. Environmental Performance • Energy Performance Certificates (EPCs) must be produced for all properties before being marketed for sale or lease.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Hollis Croft, Sheffield, S1 4BG

• The Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 establish a minimum level of energy efficiency for privately rented property in England and Wales. The Minimum Energy Efficiency Standards (MEES) Regulations are effective from 1 April 2018. The regulations prohibit the granting of a new tenancy or lease renewal of privately rented residential or business premises which do not have an Energy Performance Certificate (EPC) rating of 'E' or above. • From April 2020, all privately rented residential property will be affected, followed in April 2023 by all privately rented commercial property even where there has been no change in tenancy arrangements. In both cases, properties will be affected even where a lease is already in place and a property is occupied by a tenant. • We are not able to comment on the quality or accuracy of a specific EPC and we would advise undertaking your own quality assurance measures. We are not qualified to make an assessment of costs associated with improving non-compliant properties.

Energy Performance Certificate • We have checked the Domestic and Non-Domestic Energy Performance Certificate (EPC) Registers. • We have identified the following EPC assessment for the Property:

Address Rating Date Certificate Number

Blocks C & D, B 26 5 July 2019 0030-7921-0301-6751-6050 6-8 Hollis Croft, Sheffield, S1 4NP

• We have not identified any EPC assessments for the remaining blocks or the individual cluster flats, studios and apartments within the subject property. • The current assessment of Blocks C and D is currently compliant with the minimum requirements of the Regulations. • We recommend your legal advisors ensure EPC assessments are completed for the remaining blocks following practical completion.

5. Statutory Matters • We have made the enquiries referred to in the terms of the Engagement.

Town Planning

Overview

a. Local planning authority Sheffield City Council

b. Current planning use Student Residential

c. Listed Building status? No

d. Conservation Area? No

e. Outstanding applications? Yes

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Hollis Croft, Sheffield, S1 4BG

Planning History • Planning permission for the Property’s construction was approved by the Local Authority as follows:

Date Status Details

2 Nov 2016 Approved Planning Ref: 16/02910/FUL Demolition of existing buildings and erection of a mixed use development incorporating student accommodation, comprising 346 studio apartments, 6 x 1 bed apartments, 3 x 2 bed apartments and 102 cluster flats providing at total of 972 bed spaces, commercial units and Hub Space (Use Class A1) [with no more than 250 sqm of sales area], A2, A3, A4, A5, B1 and D1), with associated works, access, landscaping and ancillary features

5 Oct 2017 Approved Planning Ref: 17/02800/FUL Application to allow amendments to floor to ceiling heights and block heights to all sites and reconfiguration of site 2 building floorplans (Application under section 73 to vary condition no. 2. Approved Plans relating to planning permission 16/02910/FUL)

17 Nov 2017 Approved Planning Ref: 17/03594/FUL Amendments to Site 3 - Removal of the Hub Space and replace with landscaping (Application under Section 73 to vary condition No. 2 (Approved Plans) as imposed by 17/02117/FUL

1 Feb 2018 Approved Planning Ref: 17/04539/FUL Application to allow amendments to site 1 including internal reconfiguration and corresponding external alterations (Application under section 73 to vary condition no. 2. Approved Plans relating to planning permission 17/02800/FUL

20 March 2019 Approved Planning Ref: 19/00664/NMA Application to allow alterations to approved plans (amendment to planning approval 17/04539/FUL)

• We confirm that the proposed development approved under the above planning permission is the scheme to which this valuation relates. • We are aware of 23 separate subsequent planning permissions in relation to the discharging of conditions under the above permissions. • We understand that as at the date of valuation a further planning permission is pending a decision in relation to further discharge of conditions. • Upon reaching practical completion, and if required under the planning permissions prior to occupation of the Property, we recommend your legal advisors ensure all outstanding Conditions are appropriately discharged. Community Infrastructure Levy (CIL) • The planning permissions are subject to a Community Infrastructure Levy (CIL) charge. • We understand from the provided Draft Certificate of Title prepared by Mishcon de Reya LLP (Ref HS/SN/50373.8) that the original planning permission (Ref 16/02910/FUL) was subject to a CIL charge of £1,144,537.56.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Hollis Croft, Sheffield, S1 4BG

• The original permission has been superseded by planning permission Ref 17/003594/FUL under which the Certificate of Title states the total CIL payable is £1,132,866.49. • The Certificate of Title further details that the demand notice states that the last payment was made on 14 May 2019 and the balance of the charge outstanding is -£112.84. • No further CIL liability notice has been issued to date in relation to planning permission Ref 17/04539/FUL, although the Certificate states that this did not permit any increase in floorspace. • On the basis of the above we have not allowed for any CIL payments within our valuations.

Policies Affecting the Property • Planning policy for the area is contained within the Aberdeen City Council Local Development Plan, which was adopted on 20 January 2017. • The element of the Property to the south of Hollis Croft is located in an area zoned as a ‘Business Area’, whilst the element to the north of Hollis Croft is zoned as ‘Central Housing Area’.

Other Statutory Matters • The Property is not listed or situated within a conservation area. We note however the boundary of the Well Meadow Conservation Area runs along the Property’s eastern boundaries. • We are not aware of any road scheme or compulsory purchase order that could affect the Property. • The Property has frontages onto Hollis Croft, Garden Street and Whitecroft which we understand have each been adopted by the Local Highway Authority and maintained at the public’s expense.

6. Taxation

Business Rates • We have checked the Valuation Office Agency (VOA) website (www.voa.gov.uk). • We have not identified any current Business Rates Assessments for the Property within the VOA’s 2017 Rating List:

Address Description Rateable Value Source

Contractors Cabins, Contractors Cabins £1,875 VOA Website Hollis Croft, Sheffield, S1 4BG

• Upon practical completion of the Property, we would expect the above ‘Contractors Cabins’ assessment to be removed from the Rating List. • We would further expect the commercial units to each be assessed and given an appropriate Rateable Value. • In England, the Non-Domestic Rating Multiplier for the fiscal year 2019/2020 has been set at 50.4 pence. There is a surcharge for the City of London of 0.6 pence in the pound.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Hollis Croft, Sheffield, S1 4BG

• Properties with rateable values below £51,000 are eligible for the Small Business Non- Domestic Rating Multiplier, which for the fiscal year 2019/2020 has been set at 49.1 pence (49.7 in City of London). • Eligible businesses with rateable values below £12,000 are eligible for 100% rate relief on their liability, with a tapering relief from 100% to 0% for properties up to £15,000 in rateable value.

Council Tax • We have not identified any council tax assessments at the Property. • Upon practical completion we would expect the individual cluster flats, studios and apartments to each be assessed and given an appropriate Council Tax banding.. • We note however that the Property will provide student accommodation and will therefore be occupied by students who are exempt from Council Tax. • We do however note that should any accommodation not be let, the owner/operator could be responsible for the payment of Council Tax for the respective unit.

Value Added Tax • We have not been advised as to whether an election has been made to waive exemption to VAT in respect of the Property. • The capital valuations and rentals included in this Report are net of Value Added Tax at the prevailing rate.

Capital Allowances • There may be capital allowances available to a purchaser of the Property. We have not considered the benefits of these in our valuation. Should these be available, this may assist the marketing of the Property.

7. Tenure and Occupational Interests

7.1. Title

Overview

Title no(s) SYK526656, SYK526655, YWE41803, YWE34903 & SYK354069

Type of Tenure Freehold

Any material encumbrances or unduly onerous / unusual None of which we are aware easements, restrictions, outgoings or conditions?

Any title characteristics likely to have an adverse impact on None of which we are aware value, either now or over the proposed loan term?

• We have made the enquiries referred to in the terms of the Engagement. • We have been provided with a Draft Certificate of Title prepared by Mishcon de Reya LLP (Ref HS/SN/50373.8) which we have reviewed. • We can confirm that the Property as detailed within the Draft Certificate of Title is the Property which we have valued and to which this Valuation Report relates. • We further confirm that we have considered all content within the provided Draft Certificate of Title in undertaking our valuations.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Hollis Croft, Sheffield, S1 4BG

• We understand that the Property is held Freehold under Title Numbers SYK526656, SYK526655, YWE41803, YWE34903 and SYK354069. • The extent of the Freehold titles is shown below:

Title No. SYK526656 Title No. SYK526655 Title No. YWE41803

Title No. YWE34903 Title No. SYK354069

• Save as disclosed in the Certificate of Title, we understand that the Freehold titles are free from restriction as to use, title or occupation and free from any other restriction which may affect value. • The Certificate of Title details that the individual Titles are subject to a number of benefits and rights. • We detail below the salient points within the Titles: Title Number YWE41803 • This element of the Property is subject to an Agreement dated 1 July 1938 made between (1) William Hastings and others and (2) W Fearnehough Limited relating to the laying of drains. • There is an obligation to pay £1 per annum for the benefit of this right and half of the costs of repairing and maintaining the drain from the manhole to the public sewer under the land of the Trustees/adjoining land.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Hollis Croft, Sheffield, S1 4BG

Title Number SYK353414 • The element of the Property under Title Number SYK353414 lease dated 26 December 1726 made between (1) Thomas Hollis and others (2) Jonathan Moore and (3) John Hollis for a term of 800 years from 25 December 1726. • The Title Register contains the following notes in respect of this lease: » The lease formerly comprised of the land to the west, including 28 Hollis Croft but has merged as to that other land. The rent has been apportioned and the sum of £4.13.9d (£4.69p) is now payable in respect of the land in this title affected by the lease; » The lease is not a new tenancy for the purposes of Section 1 of the Landlord and Tenant (Covenants) Act 1995. » The lease provides a right to pass and repass to and from the Premises to and from the West Barr through the Way or thoroughfare in the middle of Creswick Close set out for that purpose with horses, carts, waines or other carriages. • It is unclear as to whether the development of the Property has obstructed any rights of way or there is a breach of the lease. • A Title Insurance Policy has been obtained in respect to the Rights granted under the lease. Title Insurance Policies Title Number SYK353414 - Rights under 1726 Lease • There is a Title Indemnity Policy dated 9 October 2013 with Countrywide Legal Indemnities. • The insured risks in respect of rights granted under the above lease dated 26 December 1726. • The limit of indemnity is £700,000.00 and the policy covers the registered proprietor of the Property, successors in title, lessees and any bank, building society or other similar lending institution holding a mortgage or charge on the Property. The policy term is in perpetuity. • The insured use is as continued use as commercial or mixed commercial and/or residential premises as in existence on the policy commencement date. • It does not cover the redevelopment of the Property and therefore will have been invalidated by the development works. • This policy is in the process of being formally cancelled by the Company's insurance broker. The Company has advised that the premium has been paid in full. The policy contains the provisions whereby the Insurer agrees that the interest in the policy of any Insured will not be invalidated by a breach of the policy terms or conditions by any other party, unless: » Such party acted on the Insured’s behalf or with the Insured’s knowledge and consent » Where the Insured is a successor in title, they had knowledge of a breach of the policy terms or conditions or of previous non-disclosure or misrepresentation to the Underwriters. • There is also a title indemnity policy dated 28 April 2016 with Fidelis Underwriting Limited in respect of the same as above – namely the rights granted under a lease dated 26 December 1726. • The limit of indemnity is £10,000,000.00 and the policy covers the registered proprietor of the Property, successors in title and any mortgage lenders or tenants who have an interest in the Property. The policy term is in perpetuity. • The insured use is as continued use as commercial and/or mixed commercial and/or residential premises as in existence on the policy commencement date, AND/OR the re-

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Hollis Croft, Sheffield, S1 4BG

development of the existing buildings (including demolition of the existing buildings) at the Property and/or the redevelopment of the Property for use as student accommodation together with ancillary uses. This covers the Existing Use. • The policy contains a provision stating that any behaviour of the Insured named under certificate of insurance which invalidates or vitiates the cover provided by the policy shall not prejudice the interest of any mortgage lender, lessee or other successor in title in the policy or invalidate a claim by it. Rights of Light • There is a Rights of Light Policy with ERGO Versicherung AG, UK Branch (via CLS Risk Solutions Limited) dated 31 May 2017 for the benefit of the Property. • This policy was amended by an endorsement dated 29 August 2017. • The insured risk is a Right of Light attached to or claimed by the owner or owners and/or any other person or persons having a proprietary or occupational interest in any of the following properties or any part thereof: » Sytner BMW garage » 79-83 Hollis Croft » 9 Garden Street » The Pennine Centre – Block 2 » 69 Broad Lane » 29-65 Garden Street – Block C » 32 Garden Street » 34 and 36 Garden Street » 38 Garden Street » 44 Garden Street » Croft House Community Centre » 7-7A Garden Street • The limit of indemnity is £25,000,000 and the policy covers the Company and Superscheme Limited (the "Insured"). It also covers any successor in title to the originally Insured, and their respective mortgagees, funders, chargees and lessees and their sub-lessees and their mortgagees, for as long as each of these continues to own an interest in the title to the Property. The policy term is in perpetuity. • The Insured and the Insurer have agreed that with effect from 29/08/2017 that pursuant to a Development Agreement dated 29 August 2017, GL Europe RE2 Holdings S.A.R.L. (being the Company) shall be first loss payee until such time as Superscheme Limited and the Insured jointly notify the Administrator in writing that GL Europe RE2 Holdings S.A.R.L (being the Company) are no longer first loss payee. The Development Agreement includes an obligation on the Company not to make any claim or claims pursuant to the Rights to Light Insurance Policy which exceed the sum of £19,500,000 in the aggregate. This means the Superscheme Limited could claim up to £5,500,000 in respect of its losses related to the Development under the policy. • The insured use is the development and use of the Property pursuant to planning consent 16/02910/FUL and in accordance with drawings 014, 015 and 016 dated 17/10/2016 referred to in a GL Hearn Limited Rights of Light Survey Report dated 16 November 2016 ("the Consented Scheme") or any alteration, modification, amendment, variation or alternative

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Hollis Croft, Sheffield, S1 4BG

scheme provided that it does not result in materially greater interference with any right to light to any surrounding buildings to that caused by the Consented Scheme. The Insurer has confirmed to the Company that the insured use is for the Consented Scheme as varied by the Non-Material Amendment which was granted on 17 November 2017 (ref: 17/03594/FUL). Overage Agreement • The Certificate details that the Property is subject to development and overage provisions pursuant to a contract for sale and purchase dated 18 December 2007 made between (1) Footprint Tools Limited (2) OGSC Limited ("the Buyer") and (3) Opal Property Group Limited ("the 2007 Contract"). • By way of a Deed of Assignment dated 31 March 2009 made between (1) Footprint Tools Limited and (2) Christopher Jewitt, Penny Jewitt, Richard Jewitt and Timothy Jewitt ("the Assignees"), the benefit of the 2007 Contract was assigned by Footprint Tools Limited to the Assignees. • The Buyer is required to abide by the overage provisions under the contract for sale and purchase dated 18 December 2007. • The Property is currently under development to provide a new, purpose-built student accommodation scheme totalling 972 bedspaces to achieve practical completion for September 2019. • The specifics of the Overage Provision are summarised below. • The Overage is payable on the earliest of: » The date of completion of the development, » The date after practical completion of a separate and distinct phase of the Development where further development of the Development Site has not occurred for a six month period thereafter, or » The date 10 years after the "Completion Date" of the sale and purchase pursuant to the Agreement, being 14 February 2018; (each being the Overage Date). • Having regard to the date of anticipated practical completion of the Property, the Overage Date is therefore considered to be the 14th February 2018. • Overage payable 10 years after the sale completion is calculated by reference to the Market Value at that time (14 February 2018) whereby the Overage Sum is calculated as: 50% x (Market Value of the Property - 115% of the Development Costs) • Development Costs include all items, costs, fees and expenditure incurred expended or to be incurred by the Buyer (now the Borrower) in carrying out its obligations to purchase and develop the Development Site in accordance with the 2007 Contract including (but without prejudice to the generality of the foregoing): a. The consideration and all associated costs including any overage or additional consideration of any type paid or to be paid to the owners of the Additional Land and costs of purchasing the Development Site including the Property; b. The costs of obtaining and complying with planning permission building regulations and other necessary consents in respect of the Development (including the fees of architects, surveyors or consultants relating thereto) together with planning and building regulation fees payable to statutory undertakers and other fees reasonably and properly necessary to secure all required consents and any costs incurred in entering into and complying with any agreement under the Town and Country Planning Act 1990 or other legislation;

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Hollis Croft, Sheffield, S1 4BG

c. All sums payable to the contractor pursuant to the building contract for the Development and all sums payable to architects, surveyors, engineers, quantity surveyors or other engaged or to be engaged in respect of the Development; d. The costs of investigations, surveys and tests incurred in respect of soil drains structure and rights of light; e. The provision and the altering upsizing and rerouting of sewers and drains water supply and other public utilities and services or any of them (and whether they be within the Development Site or not) when necessary in connection with the Development; f. The fees and disbursements of the Buyer's solicitors and surveyor (including searches stamp duty land tax and land registry fees) in connection with the 2007 Contract ,the building contract, the consultants appointments in respect of the Development the funding letting and sale of each and any part of the Development and any documents ancillary thereto; g. The cost of any indemnity policy paid for by the buyer in relation to the Development Site; h. The cost of entering into and complying with the provisions of any agreements under Section 106 of the Town and County Planning Act 1990 and sections 38 and 278 of the Highways Act 1980 relating to the Development Site or any other statutory agreement and any agreement relating to grants for remediation of the Development Site or any part of it or for any form of gap funding; i. The costs, fees, expenses of marketing, letting and selling the Development including any reasonable and proper advertising, promotion, research and other marketing costs and those or any letting or sales agents reasonably and properly appointed by the buyer; j. Rent, service charge and rate deficit payments payable under any sale agreement; k. All sums from time to time paid or allowed to the buyer, tenant or prospective buyer and prospective tenant of the Development by way of reverse premium rent free period or otherwise as an inducement to enter into an agreement for purchase agreement for lease or lease of any part or parts of the Development; l. Any insurance premiums relating to the Development and Development Site including insurance against risk of delay in building resulting from the discovery of any article or thing of historic or antiquarian or archaeological interest; m. Rates, duties, charges, outgoings and disbursements whatsoever whether parliamentary, local or otherwise which now are or are at time before the Overage Date assessed charged or impose upon or payable in respect of the Development Site the Development or any part thereof or on the owner or occupier thereof (other than any attributable to any part of the Development Site the subject of a lease to an occupier the term of which has commenced which places the liability for such payment on such occupier); n. All rates, water rates or other outgoings or impositions lawfully assessed in respect of the Development Site or on the owner or occupier of it in respect of the Development and the cost of repair maintenance upkeep and management and the provision of services in so far as these are not recoverable from any occupier or purchaser or under any warranty guarantee or certificate; o. The fees of any accountant, surveyor or auditor in connection with the Development or the calculation of the monies included in this schedule; p. All costs paid by the Buyer in connection with the performance of its obligations under the terms of this agreement and/or completing the Development; q. Value added tax charged in connection with any of the foregoing and which is not recoverable by the buyer pursuant to the input/output system;

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Hollis Croft, Sheffield, S1 4BG

r. Interest at 2% above the prevailing base rate from time to time of Barclays Bank plc on the "Net Development Costs" (being the Development Costs less the Development Receipts) from time to time compounded at quarterly rests whilst the Development Costs exceed Development Receipts; s. Treating or removing hazardous substance in or from the Development Site; t. Constructing foundations to a specification in excess of NHBC Standard strip foundations; u. Treating underground tanks cellars or other voids in or under the Development Site; v. Providing or constructing surface water retention works or flow/discharge attenuation works; w. Providing or procuring off site service improvements or upgrading; x. Geophysical, topographical and mineral surveys and investigations of the Development Site (which shall include soil sub-soil ground conditions and former mineral working investigations); y. Surveys, investigations and tests as to the existence or otherwise of methane gas and/or carbon dioxide or other gases or contamination present in the Development Site or emanating from adjoining land to the Development Site; z. Surveys, investigations and tests in connection with environmental legislation affecting or relating to the Development Site; aa. Demolition; bb. Any other item of expenditure incurred relating to the Development Site or the Development or the acquisition funding letting or sale of the Development Site not specifically mentioned in this schedule and which is not recoverable by the Buyer; • Provided that: a. No item of expenditure shall be counted more than once; b. Reference to costs and reference to fees in each case include incidental costs and disbursements; • The Certificate of Title states that the Property was acquired for £700,000 on the 4th October 2013. • We understand from the Land Registry that he Property was originally acquired by OGSC Limited for £4,250,000 on 14th February 2008. • Development Receipts are defined as including all capital payments and receipts paid to or received by the Buyer or by others on its behalf in respect of the disposal of the Development Site or the Development or any part or parts thereof including (but not limiting the generality of the foregoing): a. All capital payments, premiums or other such capital sum received by the Buyer from any licensee or occupier or proposed licensee or occupier; b. Proceeds of sale of any part of the Development Site (including any premium received for the grant of a long lease); c. Any compensation, damages, interest or other payment or sum of whatsoever nature not otherwise provided for in this definition received by or on behalf of the Buyer for whatever purpose in respect of the Development Site; d. Interest at 2% above the prevailing base rate from time to time of Barclays Bank plc on the excess of Development Receipts over Development Costs from time to time compounded with quarterly rests whilst the Development Receipts exceed the Development Costs;

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Hollis Croft, Sheffield, S1 4BG

• Provided that if at the Overage Date the whole or any part of the Development Site has been leased to the Buyer or retained by the Buyer but has not been sold by the Buyer the Development Receipts shall be deemed to be a sum equal to the Market Value of the whole or any part. • The Overage Payment is due on the later of i) the date 1 year after each Overage Date, and ii) the date falling 10 Working Days after agreement or determination of the amount thereof. The Buyer shall also pay interest on the Overage at the date of 2% below the prevailing base rate on such sum for the period from the Overage Date until actual payment. • The Borrower has advised that the expected Overage payment is to be nil. • For the purposes of our valuations we have not included any allowances for overage. Substation Lease • Lease of an Electrical Substation for a term of 60 years with effect from the 12 April 2018. • The lease is subject to an annual rent of Peppercorn per annum (if demanded). • We recommend your legal advisors confirm our understanding of the above tenure and Overage Agreement is correct.

7.2. University Agreements • The Property does not benefit from any formal agreements with any universities or education providers.

7.3. Occupational Interests • We have been provided with tenancy information and forecast revenues for the current 2019/20 academic year by the Borrower on which we have relied. • The Property provides a total of 972 student bedspaces arranged within 349 studios and 611 en suite bedspaces. There are also 6 each of one and two bed apartments. • Accommodation is let to students on Assured Shorthold Tenancies (ASTs). We have assumed that the Borrower or their Managing Agents are accredited to a Tenant Deposit Scheme (TDS). We recommend that your legal advisors confirm this position. • We are advised that the Property has achieved c.90.5% occupancy by room number for the 2019/20 academic year which is, in our opinion, a positive result in the first year of trading in a market that has plentiful supply of PBSA properties. • The advertised weekly rents for en-suite bed spaces is from £129 to £139 from 44 weeks for the 2019/20 academic year and up to £179 for studio rooms from 44 weeks. We note however, that the average tenancy length achieved thus far equates to 48.3 weeks for 880 rooms. • As at the date of valuation, the aggregate achieved rent for the 2019/20 academic year totals £6,027,176 based on the lettings to date. In our appraisal, we have assumed that the total income achieved will be £6,539,147 including an element of summer occupancy. • Student residents study at both the universities present in the city. The operator, Student Roost are anticipating and have experienced keen interest from both UK and international students. • The property has already achieved a very high occupancy rate which will be due in part to the low rental levels which we discuss below. • Please note that if there are any delays to the practical completion of the building works which may affect occupancy then this may impact the NOI and the value reported.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Hollis Croft, Sheffield, S1 4BG

8. Student Market Considerations

8.1. Student Occupational Market

National Market Commentary Please refer to our National Student Market Commentary in Part A

Sheffield Market Commentary • We provide a detailed overview and assessment of the Sheffield Student market within the Appendices of this report. • This includes an analysis of university performance within the city, student demand characteristics, level of competition and accommodation supply for purpose-built student accommodation schemes and analysis of the pipeline of development of accommodation and its likely impact on the future lettings market. • The Cushman & Wakefield Student Accommodation Tracker records 26,595 purpose-built student accommodation bedspaces in Sheffield for 2019/20. • The reflects an increase of c,3,000 beds from the 2018/19 supply position. • The University of Sheffield provides a total of 5,732 bedspaces, 1,411 of which are owned and operated by the University, with the remaining 4,321 beds provided through nomination agreements or joint ventures. • Sheffield Hallam University does not own any of its own accommodation and instead secures accommodation for students via nominations agreements with a variety of different private operators (4,985 beds). • The universities in Sheffield provide 42% (11,235 beds) of the total supply, comprising of both university-owned beds as well as beds let through nomination agreements with private operators. • The direct-let sector in Sheffield accounts for 58% (15,360 beds) of the total stock. • The private sector in Sheffield has expanded dramatically in recent years, with c.60% of all direct-let beds having been built since 2015, equating to in excess of 7,500 beds. As a result, there has been a marked increase in competition in the market, with lower quality schemes and those on the periphery of the city beginning to suffer occupancy issues. • Students at both institutions in Sheffield benefit from a large number of beds in close proximity to the main campuses in comparison to other markets, in part due to the size of the campuses and the scale of private sector development over recent years. • The demand pool of students within the city, taking into account the University and private sector supply of accommodation, and latest HESA student number data (2017/18) (excluding students who are unlikely to demand accommodation in the City) suggests a student:bed ratio for the city of 1.5:1. • By way of comparison C&W’s calculation of the nationally observed average student:bed ratio is 2.0:1. We note however that the SBR is based on the latest available 2017/18 HESA data and bedspace numbers as at the same date and may not reflect current demand levels. • The SBR in Sheffield is lower than most other major cities below what Cushman & Wakefield would consider a healthy demand/supply ratio for a major student accommodation market. The low ratio will create some occupancy issues as the market “digests” the new to market bedspaces, with the schemes that are priced out of kilter with the rest of the market and the

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Hollis Croft, Sheffield, S1 4BG

poorer quality beds traditionally potentially suffering in saturated markets. Discounting is evident for several schemes already, but well located and well-priced stock has let very well • Circa 63% of private bed spaces in the City are en-suite (direct let and nominated). Studio rooms make up 26% with standard rooms comprising 8% of the total private stock in the City. • Total university accommodation comprises 22% standard rooms with en-suite rooms comprising 73% of accommodation. The remaining 5% of accommodation comprising of studios and apartments. • In terms of rents in the direct let sector, C&W has calculated an average 2019/20 rent for an en-suite bed spaces in Sheffield to be £131 per week. Studios are on average £173 per week. Let lengths for en-suite rooms range between 39 and 51 weeks whilst studios are predominantly let for 51 weeks with shorter term lets available. • En-suite beds at Hollis Croft are offered at £129 to £139 per week, placing them in line with the market, however having regard to the quality of the scheme the rents are highly competitive. • Studio rooms are offered at between £145 and £175 per week, with the lowest studio pricing near to the bottom of the market rental range, with no rooms nearing the top of the market price-wise. The accommodation is again highly competitively priced given its specification.

• We refer you to the detailed Sheffield student market analysis within the appendices of this report. Sheffield Retail Market

• Sheffield has an estimated city centre retail floorspace of 1.67 million sq. ft. The city’s prime retail pitch is the pedestrianised Fargate, which runs in a linear pitch from High Street to the north east down to Pinstone Street to the south.

• The High Street benefits from excellent communication links being situated adjacent to the busy Castle Square tram stop and a number of bus stops serving the city centre.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Hollis Croft, Sheffield, S1 4BG

• To the immediate south of Fargate is the 1980s built Orchard Square. This is a managed scheme totalling c120,000 sq. ft. and centred around a courtyard.

• Further to the south of Fargate is The Moor, which was subject to a refurbishment programme over the past 5 years.

• The retail units at the subject Property are not directly comparable to the prime pitches of Sheffield and serve a ‘micro-market’.

Competing Student Schemes

Bailey Fields

Operator: Fresh Student Living No. Beds: 550

Specification Good quality

Room Type Let Length 2019/20 Rent P/Wk

Ensuite 44 £142 up to £162

Ensuite 51 £137 up to £157

Studio 51 £172 up to £186

1 Bedroom Apartment 51 £235 up to £245

Comments: • Recently constructed purpose-built student accommodation with commercial element to ground floor. Scheme is situated within a 5 minute walk from Property. Relatively high specification with amenities including common room, study area, outdoor terrace. • Located a 8-10-minute walk to University of Sheffield Campus. • Located a 12-15 minute walk to Sheffield Hallam City Campus.

Sharman Court

Operator: Fresh Student Living No. Beds: 397

Specification Good quality

Room Type Let Length 2019/20 Rent P/Wk

Ensuite 44 or 50 £138 up to £160

Studio 51 £178 up to £183

1 Bedroom Apartment 51 £210 up to £220

2 Bedroom Apartment 51 £156

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Hollis Croft, Sheffield, S1 4BG

Sharman Court

Comments: • Recently constructed purpose-built student accommodation. Scheme is situated within a 5 minute walk from Property. Relatively high specification with amenities including common room and study room. • Located a 10-12-minute walk to University of Sheffield Campus. • Located a 12-15 minute walk to Sheffield Hallam City Campus.

Steel City

Operator: Future Generation No. Beds: 346

Specification Good quality

Room Type Let Length 2019/20 Rent P/Wk

Standard 51 £139

Ensuite 44 £139 up to £145

Ensuite 51 £135 up to £155

Studio 51 £155 up to £210

1 Bedroom Apartment 51 £210

Comments: • Recently completed and new to market from September 2019. Scheme is situated on the adjacent street to the Property. Good to high specification with amenities including fitness centre, roof terrace, common room and study room. Some of the en-suite accommodation within a new concept ‘town house’ style of accommodation. • Located a 10-12-minute walk to University of Sheffield Campus. • Located a 12-15 minute walk to Sheffield Hallam City Campus.

Century Square

Operator: iQ No. Beds: 305

Specification Good quality

Room Type Let Length 2019/20 Rent P/Wk

Ensuite 44 £133 up to £151

Ensuite 51 £126 up to £142

Studio 44 £165

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Hollis Croft, Sheffield, S1 4BG

Century Square

Studio 51 £152 up to £178

2 Bedroom Apartment 51 £165

Comments: • Recently refurbished to a good specification. Scheme is situated close to Sheffield University. Amenities including fitness centre, cinema room, common room and study room. • Located a 10-minute walk to University of Sheffield Campus. • Located a c20 minute walk to Sheffield Hallam City Campus.

• Studio rents in Sheffield range from £100/week to £250/week on 40-51 week tenancy lengths. En-suite rents range from £89/week to £175/week of a mixture of tenancy lengths. There is a significant supply of PBSA stock throughout the city centre, with an emerging high density area surrounding the Property. • From the properties listed above we note that competing PBSA rents are higher than those set at the Property. All the comparable properties are good modern PBSA schemes offering a range of facilities and would offer students a credible choice. • In our judgement, the rents at the Property have been set between 3.0% to 13% discount to the market. We believe this strategy has been adopted to boost occupancy, gain valuable traction and establish the Property’s presence in the market. • As the Sheffield market has recently been through a period of rent rebasing in some properties with lower than expected occupancy, we believe this strategy to capture the market at an early stage will reinforce the property’s presence in the market. • We refer you to the detailed Sheffield student market analysis within the appendices of this report.

8.2. Student Investment Market • We provide a detailed comparable analysis of investment transactions and achieved yields in the market place within the front section this report. • We set out below recent comparable investment transactions to the Property:

Address Date Price Price Per Yield Comment/Comparison (£) Bed (£) (%) The Refinery, Under Offer £33,650,000 £82,678 5.68% Forward Fund Opportunity which Leeds (Asking) (Asking) we understand is to be under offer above asking price. Development of a prime student accommodation opportunity providing 407 bed spaces (368 cluster rooms, 29 studios and 10 accessible rooms).

Redvers, Under Offer £22,000,000 £96,916 6.10% Recent office to student Furnival Gate, (Asking) (Asking) conversion providing 227 studios Sheffield situated in a prime position in central Sheffield. Understood to be under offer at c.6.25% NIY.

St Mark's Under Offer £8,975,000 £77,370 6.00% Purpose-built scheme completed Apartments, in 2013 and refurbished in 2016. Lincoln Comprises 116 beds across a mix of large studios, premium studios, twodios and en suite

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Hollis Croft, Sheffield, S1 4BG

cluster flats situated in a strong location close to the University of Lincoln and the station.

Castlegate Haus, October £10,200,000 £76,692 5.75% Castlegate Haus is a FH property Nottingham 2018 located in the city centre 300 metres from The market Square and 750 metres to the Newton Building within the centre of the Nottingham Trent University city campus. The property comprises 133 beds of which 69 are studios. It was acquired by Centurion.

Ernest Place, September £34,000,000 £93,925 6.05% Recently completed PBSA Durham 2018 development to the fringe of Durham city centre. Scheme provides high quality accommodation of 362 student bedspaces over a mix of 5 and 6- bed apartments and studios.

Furnival Gate, August £32,000,000 £70,330 6.00% Forward Fund Opportunity for a Sheffield 2018 development of 455 student beds with a mix of clusters and studios, all within a 22 storey purpose built student accommodation scheme.

800 Bristol Road, August £14,620,000 £141,950 5.50% Acquired by Malaysian pension Selly Oak, 2018 fund Kumpulan Wang Persaraan Birmingham Diperbadankan (KWAP) and 90 North Real Estate Partners. Scheme provides 103 studios completed for 2017 academic year located within walking distance to the University of Birmingham.

City Residence, April £7,550,000 £60,890 6.11% Acquired by St Brides Haxby Road, 2018 Partnership. The Property is fully York let to York St John University until September 2026 producing a current rental income of £491,969 per annum. The Property comprises 124 en-suite bedrooms.

Tyne Student Living, June £19,500,000 £50,518 6.25% The property comprises 386 bed Newcastle-Upon- 2018 spaces in a mixture on en-suite Tyne clusters, studios and one bedroom apartments.

Albert Place, April £10,400,000 £77,615 6.75% Albert Place has been sold by Newcastle 2018 Crosslane Student Developments to real estate specialists Kout Advisory, on behalf of a Middle Eastern investment group. Albert Place provides 134 student bed spaces over a mix of cluster and studio rooms.

Hydrogen Building, March £18,000,000 £109,756 5.60% Hydrogen is a converted 1980s Nottingham 2018 office building providing 164 studios of a good specification. It is well located in the town centre

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Hollis Croft, Sheffield, S1 4BG

within close proximity to Nottingham Trent University. It was acquired by Brookfield Asset Management in is operated under their Student Roost brand.

Wellgate House, March £6,200,000 £96,875 6.20% Wellgate House is a former 8 200 Cowgate, 2018 storey office building that has Edinburgh been converted to student accommodation. The scheme is well located in the city centre and offers good quality accommodation in a mixture of en-suite clusters, studios and one bedroom apartments.

Fairchild House, February £4,100,000 £91,111 6.10% This property was part of a 3 Southampton 2018 property portfolio. It comprises a former office building converted to provide 45 studio bedrooms. The rooms are finished to a good standard and are of a good size. It was acquired by Property Partner.

Bromsgrove House, January £15,000,000 £107,143 6.42% Birmingham Properties Group Bromsgrove St, 2018 sale to Singaporean investor Birmingham Perfection Point. New build completed in September 2017 with 140 beds and ground floor unit. Long Leasehold interest.

Brassfounders, November £35,500,000 £81,235 5.70% UNITE Students has purchased Sheffield 2017 Brass Founders from Crosslane Student Developments for a reported £35.5m. The scheme comprises of 3 residential blocks forming a U-shape around a landscaped courtyard providing a total of 437 bedspaces across a mix of en-suite cluster bedspaces and studios. The scheme opened for the 2017/18 academic year and has achieved full occupancy. Queens Court, October £49,200,000 £124,557 6.20% Converted offices by WP Carey, Reading 2017 the property comprises 395 bedrooms with a significant weighting to cluster en-suite bedrooms. Hines Global REIT II acquired the investment. Exeter One, Exeter October £18,575,000 £84,817 5.85% The scheme is located adjacent 2017 to the University of Exeter’s main campus and provides a total of 219 bedspaces within a mix of en- suite clusters and studios. The Property benefits from a 1-year lease with the University of Exeter for the 2017/18 academic year in relation to 56 en-suite bedspaces (25% of accommodation).

Investment Considerations

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Hollis Croft, Sheffield, S1 4BG

• We consider Sheffield to be a good regional university city. • Sheffield is one of the largest student markets with a student population of approximately 51,000 students. There is a high supply of PBSA beds (c.26,500 beds) in the city with a large pipeline of 4,240 beds, of which c.3,000 are due to be completed and introduced into the market for September 2019 (2019/20 academic year). • The Sheffield market therefore has been characterised in recent years by significant development of high-quality products within the city centre, which has led to increased competition between operators. This is evident due to discounting in the city for 2018/19. Operators such as UNITE, iQ and Hello Student have reduced their rent per week in Q3 of 2018 in order to obtain high occupancy levels after university clearing rounds. • It is likely that as the Sheffield market adjusts to the increased supply of PBSA beds, yields for prime stock may soften. • We further note that due to the pressures on the Sheffield market through oversupply, more peripheral locations to outside the City’s ring road are beginning to evidence more immediate signs of voids and the requirement for rent discounts to attract students. • Prime yields in Sheffield are evidenced by the sale of Brassfounders in late 2017, which sold for 5.70%. Currently available is Redvers, a prime located PBSA scheme totalling 227 beds, converted from offices. This investment came to the market late last year at 6.10% and is understood to be under offer at c.6.25%. We are of the view yields in Sheffield are starting to drift outwards due to supply levels. As stated above, we consider prime yields in Sheffield currently stand at 5.75% trending outwards. • The above identified investment comparables show a range of yields predominantly between c.5.75% and 6.75%, reflective of each comparable scheme’s individual size, location and specification as well as investor demand for the respective university city. • Having regard to the Property’s location, the Sheffield development pipeline and current investor demand for student investments in Sheffield, we would expect the Property to achieve a yield towards the mid-point of the range of the comparables.

Consideration Period • We consider that the Property would have been marketed for a period of 6 to 12 months prior to the Valuation Date in order to achieve our opinion of Market Value.

Marketing Period / Saleability • We consider it would take approximately 6 to 12 months to achieve a sale of the Property in the open market starting at the Valuation Date. • The purchaser type is likely to be a mix of national student operators as well as funds. • We consider market conditions are likely to remain stable over the Marketing Period.

9. Valuation Approach and Opinions of Value

Background • It is our opinion that a trading property of this nature, requiring specialist operational expertise, is most likely to be sold to a purchaser who would employ the services of a reputable student accommodation operator, retained under a formal management agreement or to a purchaser who already has their operational platform.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Hollis Croft, Sheffield, S1 4BG

• Where possible our opinions of value are based on analysis of recent relevant market transactions supported by market knowledge derived from our agency experience. Due to the nature of the Property being within the ‘alternative’ sector, there is limited evidence particularly for solo investment transactions. As such a greater than usual degree of professional judgement was applied in arriving at our opinion of value. • In arriving at our opinion of Market Value we have considered the likely rent, cost and yield profile in the current market of the Property. • Our valuation calculations are included at the rear of this report in Appendix B.

10. Market Value

10.1. Market Value Our opinion of the Market Value of the Property has been primarily derived by adopting the following assumptions for the academic year commencing 2019:

Valuation Metrics:

Blended occupancy assumption Year 1 after 1% accounted for bad 95.00% debts and discounts Blended occupancy assumption Year 2 after 1% accounted for bad 97.00% debts and discounts Blended occupancy assumption Year 3 after 1% accounted for bad 97.00% debts and discounts Assumed Year for Stabilised Occupancy 2 Given the lettings achieved to date and the operator’s strategy to discount rents, we believe that occupancy levels should be high for the 2019/20 year. Sheffield has experienced considerable development of PBSA properties and continues to have a healthy pipeline of schemes, For this reason, the ability to capture students early on in the letting cycle provides this Property with a strong base from which to grow the NOI.

Rental growth assumption Year 1 4.50% Rental growth assumption Year 2 3.50% Rental growth assumption Year 3 3.00% The rental growth rate that we have adopted is expected to increase the rents to a market level over the next four to five years.

Summer income Year 1 £95,556 Ancillary income Year 1 £95,178 Total operating cost per room (per annum including management fees £1,649 and any rent) n.b. we have assumed a management fee of 4.5% of effective gross revenue Total operating cost leakage from effective gross revenue 24.52% We have adopted operating costs which equate to circa £1,650 pa per room which reflects a leakage of 24.5%.The Borrower provided operating costs at £1,550 per room which we believe is a little low and a hypothetical operator is unlikely to match the sheer economies of scale that the Borrower enjoys in Sheffield.

Capital expenditure deducted at entry/Day 1 £0 Total capital expenditure deducted in the cashflow (before discounting) £0

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Hollis Croft, Sheffield, S1 4BG

Total transaction costs on Entry 2.800% Discount rate (for the PBSA element) 8.150% Exit capitalisation rate and GICR (for the PBSA element) 5.500%

Adopting the assumptions stated above, our valuations reflect the following resultant rents, NOI and yields:

Net operating income - Year 1 £4,936,068 Net initial yield - Year 1 5.297% We consider prime stabilised yields in Sheffield to be 5.25% to 5.5%. Our adopted GICR reflects the quality of the location and building but also the fact that the property offer a significant number of rooms in an already well supplied market.

The low NIY reflects the low rental base which we have assumed will increase to achieve a reversionary yield of 5.9% in the third year.

We also consider that the capital value per room between £85,000 to £95,000 per room is within the range we would expect for a PBSA property of this type and location. Market Value (PBSA element only) £90,650,000 Market Value per room £93,261

Conclusions – PBSA Element • In conclusion, we would expect the property to attract pricing in the order of a 6.0% net yield when rents climb towards a market level which we expect will be in the third year of the cashflow. • When PBSA properties are traded, often the operating platform changes to another management company that the purchaser may prefer. Sometimes this transition causes disruption in the letting process which may impact the NOI and therefore the Market Value. It is therefore prudent to manage such transitions very carefully to mitigate the impact on occupancy, costs and value. • Please note that if there are any delays to the practical completion of the building works which may affect occupancy then this may impact the NOI and the value reported. Conclusions – Retail Element

Description Three vacant ground floor lock up units (open user clause).

Tenant N/A – Expected Chinese retail / restaurant operator.

Lease Length N/A – All vacant and in early stages of marketing however we understand from the agent dealing with the lettings that the units will be available of 10 years with a break option at year 5 and 3-6 months’ rent free for the fit out as they are all shell.

Remaining Term N/A.

Market Rent Unit 1 - £10,750

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Hollis Croft, Sheffield, S1 4BG

Unit 2 – £22,900 Unit 3 – £20,250

Size (NIA) Unit 1 – 598 Unit 2 – 1,478 Unit 3 – 1,304

Rent per sq. ft. Unit 1 – £18.00 Unit 2 - £15.50 Unit 3 - £15.50

Key Rental Comparable Panda Box, 76 Broad Ln, Sheffield S1 4BT (modern unit beneath PBSA development on next street) Let to an independent business on a ten-year lease with effect October 2017 at a passing rent of £8,500 per annum. This is an overall rent per sq. ft. of £18.59. This will be somewhat distorted by the small size of the unit at 457 sq. ft. NIA including the store room. Co-Op, 71 Broad Ln, Sheffield S1 4BT (modern unit beneath PBSA development on next street) Let to Co-Operative Group Food Limited on a Fifteen-year lease from October 2017. Net effective rent over the five-year term of £49,500 per annum reflecting an overall rent per sq. ft. of £13.25. This will be somewhat distorted by the large area at 3,735 sq. ft. NIA.

Key Yield Comparable Unit 8, Ingram Street, Lanarkshire G1: Limited recent evidence of independent new build off pitch retail units sold in Sheffield. We have, therefore, used a cap rate build up from established prime yields in regional UK. Prime regional city retail yield – 5.50% - June 2019. Monthly change -0.25%. Retail market Sheffield –0.50%. Location, secondary – 1% deduction. Units all fall within acceptable size parameters for their target tenant pool, no adjustment. Specification – all new build, no adjustment. • 7%. • Move 1% - Vacant. • Adopt 8% throughout.

Methodology We have considered the overall size, quality and location of the units in the context of the marketplace.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Hollis Croft, Sheffield, S1 4BG

The units form part of the new Hollis Court mixed use development in Sheffield city centre. Hollis Croft will include 972 student beds. The scheme is located between Garden Street and Hollis Croft close to Broad Lane. This is a busy route between West Bar and Brook Hill, close to the University of Sheffield’s main campus. The scheme is within easy walking distance of the City Centre. There is a significant amount of PBSA around the area as well as some new build apartment blocks. Although that ‘Solly Street’ zone of the city is still a bit downtrodden in parts, with a large amount of secondary warehouse / light industrial, the retail units cater strongly to the student micro-market. As a general overview, the commercial elements are reasonably strong. Three typical modern high quality ground floor commercial units. The premises have the benefit of a variety of planning uses, including A1(retail), A2(financial & professional services, A3(restaurant/café), A4(bar), B1(offices) and D1(non-residential institutions). We have given further consideration to the likely type of purchaser operating within the marketplace for properties of this type and in our opinion the properties would appeal to investors and owner occupiers, given the assumption of vacant possession throughout. The valuation has been assessed on the basis of an investment appraisal, taking into account the prevailing investment market for retail accommodation and taking into account the specific attributes of the subject premises. This has been benchmarked using a capital rate analysis. Given the properties are vacant and the prevailing retail market we have adopted a 12 month void period for each unit which we feel will be required to complete this letting. Finally we have adopted void costs reflects 50% of Market Rent per annum. We have applied a NIY of 8% and after the necessary discounts are made for void periods and costs, results in a total rounded Market Value of £580,000.

Yield / Cap Rate 8%.

Market Value (rounded) £580,000.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Hollis Croft, Sheffield, S1 4BG

Market Value assuming Residential SDLT with MDR Our opinion of the Market Value of the interest in the Property, having regard to trading potential, assuming a fully equipped operational purpose-built student accommodation as outlined in the Property Record with Scottish LBTT is:

(Ninety One Million, Two Hundred and Thirty Thousand £91,230,000 Pounds)

11. Market Value Based on Special Assumptions

11.1. Vacant Possession Value

Approach • This basis requires us to make a Special Assumption that the Property is available with full vacant possession. There are no other Special Assumptions to be made (such as an outstanding dilapidations claim, or that the buildings are in a different state of condition). • As the start of the academic year is September/October 2019 and there are only six months left in the current cycle as at the valuation date, we would anticipate that a purchaser on vacant possession would adopt the following assumptions:

Market Value on the Special Assumption of Vacant Possession:

Blended occupancy assumption Year 1 30.00% Blended occupancy assumption Year 2 60.00% Blended occupancy assumption Year 3 90.00% Assumed Year for Stabilised Occupancy 4

Summer income Year 1 £133,779 Ancillary income Year 1 £29,743 Total operating cost per room (per annum including management fees £1,177 and any rent) n.b. we have assumed a management fee of 4.5% of effective gross revenue Total operating cost leakage from effective gross revenue 53.26% Capital expenditure deducted at entry/Day 1 £0 Total transaction costs on Entry 2.800% Discount rate (for the PBSA element) 8.750% Exit capitalisation rate (for the PBSA element) 5.500% Net operating income - Year 1 £1,100,347 Net initial yield - Year 1 1.218% Net equivalent yield Not Calculated Market Value (PBSA element only) £80,150,000 Market Value per room £82,459 Summer income can be expected to be relatively high but then reducing to a more stabilised position of 10% by year 3. We assumed rental growth to be at a lower level than that adopted for our opinion of Market Value. The lower overall occupancy should lead to lower operating costs which we have assumed rises as letting velocity increases.

45

Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Hollis Croft, Sheffield, S1 4BG

• We have assumed all other assumptions remain unchanged to those adopted for our opinion of Market Value above. • It should be noted that there are no comparable transactions in the market for properties traded with vacant possession. We have therefore taken a view when adopting the assumptions made above to arrive at a value that in our opinion reflects a reasonable discount to the Market Value. • As at the date of valuation the commercial units are vacant. The approach taken above, therefore remains unchanged. • Special Assumption – Vacant Possession Residential SDLT with MDR • Subject to the contents of this report and based on values current as at the valuation date, we are of the opinion that the Market Value as a fully equipped operational entity, having regard to future trading potential, of the interest in the Property detailed in the Property Record, with the Special Assumption as defined above is:

(Eighty Million, Seven Hundred and Thirty Thousand £80,730,000 Pounds)

12. Suitability for Loan Security

Suitability for Loan Security In our opinion, subject to the comments and assumptions contained below and elsewhere in this Valuation Report, the Freehold interests in the Property provides reasonable security for the purposes of a loan over a period of 5 years (subject to the adequacy of capital and income cover). This is without opinion as to the commercial decision to lend, which remains with the Bank.

46

Cushman & Wakefield | Bank of America Merrill Lynch Appendix A: Maps and Plans Valuation Date: 12 July 2019 Hollis Croft, Sheffield, S1 4BG

APPENDIX A: MAPS AND PLANS

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Ordnance Survey © Crown Copyright 2019. All rights reserved. Licence number 100022432. Plotted Scale - 1:7500 Hollis Croft, Sheffield, S1 4BG Ordnance Survey © Crown Copyright 2019. All rights reserved. Licence number 100022432. Plotted Scale - 1:175000 Hollis Croft, Sheffield, S1 4BG t ur Co lly So El Sub Sta

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54 1 to t o 6 3 4 1 3 0 o t Ordnance Survey © Crown Copyright 2019. All rights reserved. Licence number 100022432. Plotted Scale - 1:1558 1 3

Hollis Croft, Sheffield, S1 4BG Cushman & Wakefield | Bank of America Merrill Lynch Appendix B: Valuation Calculations Valuation Date: 12 July 2019 Hollis Croft, Sheffield, S1 4BG

APPENDIX B: VALUATION CALCULATIONS

48

BAML PROPERTY VALUATION AS AT 12 JULY 2019 Hollis Croft House, Sheffield Executive Summary - Inputs, Assumptions and Value Results

A. GENERAL INPUTS D. VALUATION RESULTS 1 Property Hollis Croft House, Sheffield 1 Market Value : Commercial Element 580,000 2 Client BAML 2 Market Value : Student Accommodation 90,650,000 3 Property reference number HCH 3 Market Value : Total 91,230,000 4 Tenure Freehold 5 Property owner 6 Operator Student Roost Student Accommodation Only: 7 Property type Direct Let & NOM's 4 Total number of units 972 8 Valuation date 12 Jul 2019 5 Value per unit 93,261 9 Opening date 01 Sep 2019 6 Value per Sq Ft (on the Gross Internal Area) #DIV/0! 10 Years since opening -0.14 11 Site area (hectares) 0.000 12 Site area (acres) 0.000 Running Yields (gross of capital reserves and costs in the cashflow, but unadjusted for capex): Adj for capex: 13 measurement units Sq Ft 7 Net yield (reflecting income for the next 12 months) - Year 1 4,936,068 5.297% 5.297% 14 Currency GBP 8 Net yield (reflecting income for the next 12 months) - Year 2 5,323,025 5.712% 5.712% 15 Valuation Rounding 10,000 9 Net yield (reflecting income for the next 12 months) - Year 3 5,528,405 5.933% 5.933% 16 DFC Period (in years) 10 10 Net yield (reflecting income for the next 12 months) - Year 4 5,707,386 6.125% 6.125% 11 Net yield (reflecting income for the next 12 months) - Year 5 5,857,016 6.285% 6.285% B. OTHER PRINCIPAL INPUTS 12 True net initial yield (reflecting income for the next 12 months after 4,936,068 5.297% all capital expenditure in the cashflow) – Year 1 1 Occupancy - term: Year 1 96.00% 13 Net yield - reflecting "in place" income 4,936,068 5.297% 5.297% 2 Occupancy - term: Year 2 98.00% 14 Net yield - reflecting estimated income for the next academic year 5,260,873 5.645% 5.645% 3 Occupancy - term: Year 3 98.00% 4 Occupancy - out of term: Year 1 25.00% No Growth Reversionary Yield & Estimated Net Equivalent Yield : 5 Occupancy - out of term: Year 2 25.00% 15 Net reversionary yield (gross of capital reserves and costs in the 5,064,268 5.434% 5.434% cashflow, but unadjusted for capex) on a no growth basis 6 Occupancy - out of term: Year 3 25.00% 16 Estimated Net Equivalent Yield (cashflow gross of capital reserves Not Calculated and costs, but unadjusted for capex. Annually in arrears basis) 7 Student related income - GICR for valuation 5.500% 8 Student related income - Adj for exit yield 0.000% i) Weighted average revenue data for year 1: 9 Student related income - Exit Yield 5.500% 17 Revenue - term time unit income only (incl noms, excl other adjmts) 6,348,413 p.a. 10 Student related income - Discount Rate for DCF 8.150% 18 Revenue - all income (incl noms and other adjmts) 6,539,147 p.a. 11 Student related income - Rental growth rate - Year 1 4.500% 19 Operating costs & Leakage % (excluding management fees and rent) 1,308,818 p.a. 20.02% 12 Ancillary income - Growth rate - Year 1 2.500% 20 Operating costs & Leakage % (including management fees and rent) 1,603,079 p.a. 24.52% 13 Commercial income - Rental growth rate - Year 1 2.500% 21 Net cashflow before capital reserves and capital costs 4,936,068 p.a. 14 Operating costs - Cost inflation rate - Year 1 2.000% 22 Net cashflow after capital reserves and capital costs 4,936,068 p.a. 15 Head rent - rent inflation rate - Year 1 2.500% 16 Student purchaser's costs (on entry) 2.800% Ii) Weighted average revenue data for year 1 - per unit: 17 Student purchaser's costs (on exit) 2.984% 23 Revenue - term time unit income only 6,531 p.a. per unit 18 Commercial purchaser's costs 4.990% 24 Revenue - all income 6,728 p.a. per unit 19 Disposal costs for the exit calculation 1.250% 25 Operating costs (excluding management fees and rent) 1,347 p.a. per unit 20 Management fee : a % of gross income 4.500% 26 Operating costs (including management fees and rent) 1,649 p.a. per unit 21 Capital reserves : a % of gross income 0.000% 27 Net cashflow before capital reserves and capital costs 5,078 p.a. per unit 28 Net cashflow after capital reserves and capital costs 5,078 p.a. per unit C. VALUATION ASSUMPTIONS All figures in GBP iii) Weighted average revenue data for year 1 - per unit per term week: The cashflow is on a calendar year basis 29 Weighted average number of term weeks 48.3 weeks Income growth above applied after year 1 30 Revenue - term time unit income only 135.25 per unit per term week Expense inflation applied after year 1 31 Revenue - all income 139.31 per unit per term week Exit price based on the forward looking 12 month income at the exit point. 32 Operating costs (excluding management fees and rent) 27.88 per unit per term week Cashflow is discounted as per the DCF analysis 33 Operating costs (including management fees and rent) 34.15 per unit per term week Commercial income (if receivable) is separately valued 34 Net cashflow before capital reserves and capital costs 105.16 per unit per term week Ancillary income (related to student occupation) has been added to our cashflow projections 35 Net cashflow after capital reserves and capital costs 105.16 per unit per term week It is assumed that the management agreement is in place and the costs associated are historic Capital costs in the cashflow are not inflated from day 1 and are assumed to arise in the first month of the year Commercial Element Only: 0 36 Revenue - Year 1 53,885 p.a. 0 37 Revenue - Year 1 per Sq Ft 15.94 0 38 Net initial yield 8.85% 0 0 0

Lease expiry date (for leased assets) n/a

T:\PSQ\Shared\Valuation\Clients\Bank of America\Project Rose II & III\6. Val Calcs\VP Vals\[PBSA FH Model_PDS.xlsx]Inputs © Cushman & Wakefield LLP 2019 BAML PROPERTY VALUATION AS AT 12 JULY 2019 Hollis Croft House, Sheffield Income Analysis

SCHEME INCOME For cashflow purposes (for the next 12 months): (in GBP) % of current income adopted for year 1 of the cashflow projection: 100.00% % of income from next academic year adopted for year 1 of the cashflow projection: 0.00% n.b. applies to term time and summer income only, not commercial or ancillary income 100.00% Income data for next acdmc yr (assumes year 1 occ rate): Student Accommodation - Term Time Income n.b. discounts and doubtful debts reflected Unit type Number of Average Size Weekly rate Lettable weeks Annual income Occupancy rate Adjustment to Adjustment to Annual income Income £ per Weekly rate Annual income Occupancy rate Annual income Increase (%) units per Unit (Gross (current) (potential) (YR1) term time term time (actual) Sq Ft pa (next academic (potential) (next (YR1) (actual) (next Internal Area) income for income for year) academic year) academic year) discounts doubtful debts Ensuite Bronze - NOM 8 - 129.00 51.00 52,632.00 96.0% 0.5% 0.5% 50,021.45 n/a 134.81 55,000.44 96.0% 52,272.42 4.50% Ensuite Silver - NOM 11 - 135.00 51.00 75,735.00 96.0% 0.5% 0.5% 71,978.54 n/a 141.08 79,143.08 96.0% 75,217.58 4.50% Ensuite Gold - NOM 1 - 139.00 51.00 7,089.00 96.0% 0.5% 0.5% 6,737.39 n/a 145.26 7,408.01 96.0% 7,040.57 4.50% Ensuite Bronze 263 - 129.00 48.17 1,634,150.50 96.0% 0.5% 0.5% 1,553,096.64 n/a 134.81 1,707,687.27 96.0% 1,622,985.98 4.50% Ensuite Silver 287 - 135.00 47.74 1,849,841.28 96.0% 0.5% 0.5% 1,758,089.15 n/a 141.08 1,933,084.14 96.0% 1,837,203.16 4.50% Ensuite Gold 41 - 139.00 45.95 261,869.05 96.0% 0.5% 0.5% 248,880.35 n/a 145.26 273,653.16 96.0% 260,079.96 4.50% Studio Bronze 114 - 145.00 48.08 794,745.00 96.0% 0.5% 0.5% 755,325.65 n/a 151.53 830,508.53 96.0% 789,315.30 4.50% Studio Silver 107 - 155.00 47.19 782,595.00 96.0% 0.5% 0.5% 743,778.29 n/a 161.98 817,811.78 96.0% 777,248.31 4.50% Studio Gold 93 - 169.00 50.92 800,371.14 96.0% 0.5% 0.5% 760,672.73 n/a 176.61 836,387.84 96.0% 794,903.01 4.50% Studio Platinum 35 - 175.00 51.00 312,375.00 96.0% 0.5% 0.5% 296,881.20 n/a 182.88 326,431.88 96.0% 310,240.85 4.50% One Bed Apartment 6 - 179.00 51.00 54,774.00 96.0% 0.5% 0.5% 52,057.21 n/a 187.06 57,238.83 96.0% 54,399.78 4.50% Two Bed Apartment 6 - 175.00 51.00 53,550.00 96.0% 0.5% 0.5% 50,893.92 n/a 182.88 55,959.75 96.0% 53,184.15 4.50% 0 - - - - - 96.0% 0.5% 0.5% - n/a - - 96.0% - 0 - - - - - 96.0% 0.5% 0.5% - n/a - - 96.0% - 0 - - - - - 96.0% 0.5% 0.5% - n/a - - 96.0% - 0 - - - - - 96.0% 0.5% 0.5% - n/a - - 96.0% - 0 - - - - - 96.0% 0.5% 0.5% - n/a - - 96.0% - 0 - - - - - 96.0% 0.5% 0.5% - n/a - - 96.0% - 0 - - - - - 96.0% 0.5% 0.5% - n/a - - 96.0% - 0 - - - - - 96.0% 0.5% 0.5% - n/a - - 96.0% - 0 - - - - - 96.0% 0.5% 0.5% - n/a - - 96.0% - 0 - - - - - 96.0% 0.5% 0.5% - n/a - - 96.0% - 0 - - - - - 96.0% 0.5% 0.5% - n/a - - 96.0% - 0 - - - - - 96.0% 0.5% 0.5% - n/a - - 96.0% - 0 - - - - - 96.0% 0.5% 0.5% - n/a - - 96.0% - Total / Wghtd Av 972 - 142.09 48.29 6,679,726.97 6,348,412.51 n/a 6,980,314.69 6,634,091.08 4.50%

Student Accommodation - Summer Income Unit type Number of Average Size Weekly rate Lettable weeks Annual income Occupancy rate Annual income Income £ per Weekly rate Annual income Occupancy rate Annual income Increase (%) units per Unit (Gross (current) (potential) (YR1) (actual) Sq Ft pa (next academic (potential) (next (YR1) (actual) (next Internal Area) year) academic year) academic year)

Ensuite Bronze 263 - 136.00 2.83 101,342.67 25.0% 25,335.67 n/a 141.81 105,668.36 25.0% 26,417.09 4.27% Ensuite Silver 287 - 142.00 3.26 132,695.02 25.0% 33,173.76 n/a 148.08 138,371.94 25.0% 34,592.99 4.28% Ensuite Gold 41 - 146.00 5.05 30,229.30 25.0% 7,557.33 n/a 152.26 31,524.40 25.0% 7,881.10 4.28% Studio Bronze 114 - 152.00 2.92 50,616.00 25.0% 12,654.00 n/a 141.81 47,221.07 25.0% 11,805.27 -6.71% Studio Silver 107 - 162.00 3.81 66,096.00 25.0% 16,524.00 n/a 148.08 60,414.60 25.0% 15,103.65 -8.60% Studio Gold 93 - 176.00 0.08 1,245.39 25.0% 311.35 n/a 152.26 1,077.37 25.0% 269.34 -13.49% Studio Platinum - - - - - 25.0% - n/a - - 25.0% - One Bed Apartment - - - - - 25.0% - n/a - - 25.0% - Two Bed Apartment - - - - - 25.0% - n/a - - 25.0% - 0 - - - - - 25.0% - n/a - - 25.0% - Total / Wghtd Av 905 147.56 2.91 382,224.38 95,556.10 n/a 384,277.73 96,069.43 0.54%

Commercial Income Term time & summer time income summary: 100.00000% 0.00000% Unit type Number of Average Size Annual rental Annual rental Total potential Source Current income Next academic Pro rata Adopted for units per Unit (Net rate (per Sq Ft) per unit annual income year spreads next 12 m Internal Area) Unit 1 1 598.00 18.00 10,764.00 10,764.00 Potential: Unit 2 1 1,478.00 15.50 22,909.00 22,909.00 Term Time 6,679,727 6,980,315 1 / 0 6,679,727 Unit 3 1 1,304.00 15.50 20,212.00 20,212.00 Summer Income 382,224 384,278 1 / 0 382,224 n/a - - - - - Total 7,061,951 7,364,592 7,061,951 n/a - - - - - 4.29% 0.00% Totals 3 53,885.00 Actual (based on the year 1 occupancy assumption): Term Time 6,348,413 6,634,091 1 / 0 6,348,413 Ancillary income (potential before any occupancy adjustment) Summer Income 95,556 96,069 1 / 0 95,556 Source Amount pa Comment Total 6,443,969 6,730,161 6,443,969 General other income 99,144 Ancillary Income: based on £2.00 per week per room 4.44% 0.00% n/a - n/a - n/a - Totals 99,144

© Cushman & Wakefield LLP 2019 BAML PROPERTY VALUATION AS AT 12 JULY 2019 Hollis Croft House, Sheffield Analysis of Operating Costs

Based on the operating cosst adopted for year 1 of the cashflow projection Total units 972 Term weeks 48.3

Operating Cost Annual amount (in Cost per unit pa (972 Cost per unit per term % of total operating GBP) units) week (48.29 weeks) costs

Site Staff Costs 262,577.20 270.14 5.59 20.06% Office Costs 20,257.18 20.84 0.43 1.55% Security 87,005.75 89.51 1.85 6.65% Regular Cleaning 68,434.75 70.41 1.46 5.23% Annual Cleaning 74,416.19 76.56 1.59 5.69% Refuse and Waste 1,038.35 1.07 0.02 0.08% Maintenance and Repairs 86,041.11 88.52 1.83 6.57% Utilities 470,136.96 483.68 10.02 35.92% Council Tax - - - 0.00% Internet and Student Services 63,120.00 64.94 1.34 4.82% Marketing 129,338.43 133.06 2.76 9.88% Other 46,451.71 47.79 0.99 3.55% Operating Expense Adjustments - - - 0.00% Total Operating Expenses: 1,308,817.62 1,346.52 27.88 100.00% Leakage % (excluding management fees and rent) 20.02%

Head Rent - - -

Management fee (a % of effective revenue) 294,261.61 302.74 6.27 Management fee as a % of effective revenue 4.50% Management fee as a % of operating expenses 22.48% Management fee per unit (pa) 302.74

Total of all expenses: 1,603,079.23 1,649.26 34.15 Leakage % (including management fees and rent) 24.52%

Apportionment of all expenses: Operating expenses 81.64% Head Rent 0.00% Management fee 18.36% Total 100.00%

© Cushman & Wakefield LLP 2019 BAML PROPERTY VALUATION AS AT 12 JULY 2019 Estimated Hollis Croft House, Sheffield CAGR "in place" income Cashflow from Student Accommodation 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 from Stabilised income For next Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Day 1 CAGR at Day 1 academic Sep-20 Sep-21 Sep-22 Sep-23 Sep-24 Sep-25 Sep-26 Sep-27 Sep-28 Sep-29 Sep-30 Sep-31 Sep-32 Sep-33 Sep-34 Sep-35 Sep-36 Sep-37 Sep-38 Sep-39 Sep-40 Sep-41 Yr1 to Yr10 Yr5 to Yr10 year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 16 16 16 16 16 16

ASSUMPTIONS Rental growth - unit income 4.50% 4.50% 3.50% 3.00% 2.50% 2.50% 2.50% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% #VALUE! #VALUE! Rental growth - ancillary income 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% #VALUE! #VALUE! Expense inflation rate 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% #VALUE! #VALUE! Head rent inflation rate 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% #VALUE! #VALUE! Occupancy - term time income 96.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 96.00% Adjustment to term time income for discounts (%) 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% Adjustment to term time income for doubtful debts (%) 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% Occupancy - summer income 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% 25.00% Management fee : a % of gross income 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% Capital reserves : a % of gross income 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Direct let - % of revenue 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% Nominations revenue - % of revenue 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Total student units 972

REVENUES Term time income - potential 6,679,727 6,980,315 7,224,626 7,441,364 7,627,399 7,818,084 8,013,536 8,173,806 8,337,282 8,504,028 8,674,109 8,847,591 9,024,543 9,205,034 9,389,134 9,576,917 9,768,455 9,963,824 10,163,101 10,366,363 10,573,690 10,785,164 2.72% 2.20% 6,679,727 6,980,315 Summer income - potential 382,224 399,424 413,404 425,806 436,452 447,363 458,547 467,718 477,072 486,614 496,346 506,273 516,398 526,726 537,261 548,006 558,966 570,146 581,548 593,179 605,043 617,144 2.72% 2.20% 382,224 399,424 Ancillary income - potential 99,144 101,623 104,163 106,767 109,436 112,172 114,977 117,851 120,797 123,817 126,913 130,086 133,338 136,671 140,088 143,590 147,180 150,859 154,631 158,497 162,459 166,520 2.50% 2.50% 99,144 102,824

Vacancy allowance - term time income -267,189 -139,606 -144,493 -148,827 -152,548 -156,362 -160,271 -163,476 -166,746 -170,081 -173,482 -176,952 -180,491 -184,101 -187,783 -191,538 -195,369 -199,276 -203,262 -207,327 -211,474 -215,703 -267,189 -188,468 Adj to term time income for discounts (post vacancy adj) -32,063 -34,204 -35,401 -36,463 -37,374 -38,309 -39,266 -40,052 -40,853 -41,670 -42,503 -43,353 -44,220 -45,105 -46,007 -46,927 -47,865 -48,823 -49,799 -50,795 -51,811 -52,847 -32,063 -33,959 Adj to term time income for doubtful debts (post vacancy adj) -32,063 -34,204 -35,401 -36,463 -37,374 -38,309 -39,266 -40,052 -40,853 -41,670 -42,503 -43,353 -44,220 -45,105 -46,007 -46,927 -47,865 -48,823 -49,799 -50,795 -51,811 -52,847 -32,063 -33,959 Vacancy allowance - summer income -286,668 -299,568 -310,053 -319,355 -327,339 -335,522 -343,910 -350,788 -357,804 -364,960 -372,260 -379,705 -387,299 -395,045 -402,946 -411,005 -419,225 -427,609 -436,161 -444,885 -453,782 -462,858 -286,668 -299,568 Vacancy allowance - ancillary income -3,966 -2,032 -2,083 -2,135 -2,189 -2,243 -2,300 -2,357 -2,416 -2,476 -2,538 -2,602 -2,667 -2,733 -2,802 -2,872 -2,944 -3,017 -3,093 -3,170 -3,249 -3,330 -3,966 -2,226

Direct let - % of revenue 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Term time income - actual 6,348,413 6,772,301 7,009,332 7,219,612 7,400,102 7,585,105 7,774,732 7,930,227 8,088,831 8,250,608 8,415,620 8,583,933 8,755,611 8,930,724 9,109,338 9,291,525 9,477,355 9,666,902 9,860,240 10,057,445 10,258,594 10,463,766 2.95% 2.20% 6,348,413 6,723,928 Summer income - actual 95,556 99,856 103,351 106,452 109,113 111,841 114,637 116,929 119,268 121,653 124,087 126,568 129,100 131,682 134,315 137,002 139,742 142,536 145,387 148,295 151,261 154,286 2.72% 2.20% 95,556 99,856 Ancillary income - actual 95,178 99,590 102,080 104,632 107,248 109,929 112,677 115,494 118,381 121,341 124,374 127,484 130,671 133,938 137,286 140,718 144,236 147,842 151,538 155,327 159,210 163,190 2.74% 2.50% 95,178 100,598

Revenue adjustment (DL % of revenue not applied) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Nominations revenue - potential 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Nominations revenue - % of revenue 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Nominations revenue - actual 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Effective revenue (excluding additional income) 6,539,147 6,971,748 7,214,763 7,430,695 7,616,463 7,806,874 8,002,046 8,162,650 8,326,481 8,493,602 8,664,081 8,837,985 9,015,382 9,196,343 9,380,939 9,569,245 9,761,333 9,957,281 10,157,166 10,361,067 10,569,065 10,781,242 2.95% 2.20% 6,539,147 6,924,382 Effective revenue per unit (pa) 6,728 7,173 7,423 7,645 7,836 8,032 8,233 8,398 8,566 8,738 8,914 9,093 9,275 9,461 9,651 9,845 10,043 10,244 10,450 10,660 10,874 11,092 6,728 7,124 Effective revenue per unit (per week) 129.38 137.93 142.74 147.01 150.69 154.46 158.32 161.50 164.74 168.04 171.42 174.86 178.37 181.95 185.60 189.33 193.13 197.00 200.96 204.99 209.11 213.30 129.38 137.00

OPERATING EXPENSES Site Staff Costs -262,577 -267,829 -273,185 -278,649 -284,222 -289,906 -295,705 -301,619 -307,651 -313,804 -320,080 -326,482 -333,011 -339,672 -346,465 -353,394 -360,462 -367,671 -375,025 -382,525 -390,176 -397,979 2.00% 2.00% -262,577 -270,346 Office Costs -20,257 -20,662 -21,076 -21,497 -21,927 -22,366 -22,813 -23,269 -23,735 -24,209 -24,693 -25,187 -25,691 -26,205 -26,729 -27,263 -27,809 -28,365 -28,932 -29,511 -30,101 -30,703 2.00% 2.00% -20,257 -20,857 Security -87,006 -88,746 -90,521 -92,331 -94,178 -96,061 -97,983 -99,942 -101,941 -103,980 -106,060 -108,181 -110,344 -112,551 -114,802 -117,098 -119,440 -121,829 -124,266 -126,751 -129,286 -131,872 2.00% 2.00% -87,006 -89,580 Regular Cleaning -68,435 -69,803 -71,200 -72,623 -74,076 -75,557 -77,069 -78,610 -80,182 -81,786 -83,422 -85,090 -86,792 -88,528 -90,298 -92,104 -93,946 -95,825 -97,742 -99,697 -101,690 -103,724 2.00% 2.00% -68,435 -70,460 Annual Cleaning -74,416 -75,905 -77,423 -78,971 -80,550 -82,161 -83,805 -85,481 -87,190 -88,934 -90,713 -92,527 -94,378 -96,265 -98,191 -100,154 -102,157 -104,201 -106,285 -108,410 -110,579 -112,790 2.00% 2.00% -74,416 -76,618 Refuse and Waste -1,038 -1,059 -1,080 -1,102 -1,124 -1,146 -1,169 -1,193 -1,217 -1,241 -1,266 -1,291 -1,317 -1,343 -1,370 -1,397 -1,425 -1,454 -1,483 -1,513 -1,543 -1,574 2.00% 2.00% -1,038 -1,069 Maintenance and Repairs -86,041 -87,762 -89,517 -91,308 -93,134 -94,996 -96,896 -98,834 -100,811 -102,827 -104,884 -106,981 -109,121 -111,303 -113,529 -115,800 -118,116 -120,478 -122,888 -125,346 -127,853 -130,410 2.00% 2.00% -86,041 -88,587 Utilities -470,137 -479,540 -489,130 -498,913 -508,891 -519,069 -529,451 -540,040 -550,840 -561,857 -573,094 -584,556 -596,247 -608,172 -620,336 -632,742 -645,397 -658,305 -671,471 -684,901 -698,599 -712,571 2.00% 2.00% -470,137 -484,047 Council Tax 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Internet and Student Services -63,120 -64,382 -65,670 -66,983 -68,323 -69,690 -71,083 -72,505 -73,955 -75,434 -76,943 -78,482 -80,051 -81,652 -83,285 -84,951 -86,650 -88,383 -90,151 -91,954 -93,793 -95,669 2.00% 2.00% -63,120 -64,988 Marketing -129,338 -131,925 -134,564 -137,255 -140,000 -142,800 -145,656 -148,569 -151,541 -154,571 -157,663 -160,816 -164,032 -167,313 -170,659 -174,072 -177,554 -181,105 -184,727 -188,422 -192,190 -196,034 2.00% 2.00% -129,338 -133,165 Other -46,452 -47,381 -48,328 -49,295 -50,281 -51,286 -52,312 -53,358 -54,426 -55,514 -56,624 -57,757 -58,912 -60,090 -61,292 -62,518 -63,768 -65,044 -66,344 -67,671 -69,025 -70,405 2.00% 2.00% -46,452 -47,826 Operating Expense Adjustments 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total Operating Expenses: -1,308,818 -1,334,994 -1,361,694 -1,388,928 -1,416,706 -1,445,040 -1,473,941 -1,503,420 -1,533,488 -1,564,158 -1,595,441 -1,627,350 -1,659,897 -1,693,095 -1,726,957 -1,761,496 -1,796,726 -1,832,661 -1,869,314 -1,906,700 -1,944,834 -1,983,731 2.00% 2.00% -1,308,818 -1,347,543 Operating expense per unit (pa) 1,347 1,373 1,401 1,429 1,458 1,487 1,516 1,547 1,578 1,609 1,641 1,674 1,708 1,742 1,777 1,812 1,848 1,885 1,923 1,962 2,001 2,041 1,347 1,386 Operating expense ratio: 20.0% 19.1% 18.9% 18.7% 18.6% 18.5% 18.4% 18.4% 18.4% 18.4% 18.4% 18.4% 18.4% 18.4% 18.4% 18.4% 18.4% 18.4% 18.4% 18.4% 18.4% 18.4% 20.0% 19.5%

NET OPERATING INCOME 5,230,329 5,636,754 5,853,069 6,041,768 6,199,756 6,361,834 6,528,105 6,659,230 6,792,992 6,929,444 7,068,640 7,210,634 7,355,485 7,503,248 7,653,982 7,807,748 7,964,607 8,124,620 8,287,852 8,454,367 8,624,231 8,797,511 3.17% 2.25% 5,230,329 5,576,839 Other expenses: Head Rent 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Management fee (a % of effective revenue) -294,262 -313,729 -324,664 -334,381 -342,741 -351,309 -360,092 -367,319 -374,692 -382,212 -389,884 -397,709 -405,692 -413,835 -422,142 -430,616 -439,260 -448,078 -457,072 -466,248 -475,608 -485,156 2.95% 2.20% -294,262 -315,966 Subtotal - other expenses: -294,262 -313,729 -324,664 -334,381 -342,741 -351,309 -360,092 -367,319 -374,692 -382,212 -389,884 -397,709 -405,692 -413,835 -422,142 -430,616 -439,260 -448,078 -457,072 -466,248 -475,608 -485,156 2.95% 2.20% -294,262 -315,966 Management fee as a % of operating expenses 22.5% 23.5% 23.8% 24.1% 24.2% 24.3% 24.4% 24.4% 24.4% 24.4% 24.4% 24.4% 24.4% 24.4% 24.4% 24.4% 24.4% 24.4% 24.5% 24.5% 24.5% 24.5% 22.5% 23.4% Management fee per unit (pa) 302.74 322.77 334.02 344.01 352.61 361.43 370.47 377.90 385.49 393.22 401.11 409.17 417.38 425.76 434.30 443.02 451.91 460.99 470.24 479.68 489.31 499.13 302.74 325.07

Total of all expenses: -1,603,079 -1,648,723 -1,686,358 -1,723,309 -1,759,447 -1,796,350 -1,834,033 -1,870,739 -1,908,180 -1,946,370 -1,985,325 -2,025,060 -2,065,589 -2,106,931 -2,149,099 -2,192,112 -2,235,986 -2,280,738 -2,326,386 -2,372,948 -2,420,442 -2,468,887 2.18% 2.04% -1,603,079 -1,663,509 Total expenses per unit (pa) 1,649.26 1,696.22 1,734.94 1,772.95 1,810.13 1,848.10 1,886.87 1,924.63 1,963.15 2,002.44 2,042.52 2,083.39 2,125.09 2,167.62 2,211.01 2,255.26 2,300.40 2,346.44 2,393.40 2,441.30 2,490.17 2,540.01 1,649.26 1,711.43 Total expenses as a % of effective revenue 24.5% 23.6% 23.4% 23.2% 23.1% 23.0% 22.9% 22.9% 22.9% 22.9% 22.9% 22.9% 22.9% 22.9% 22.9% 22.9% 22.9% 22.9% 22.9% 22.9% 22.9% 22.9% 24.5% 24.0% Less: Capital reserves (a % of effective revenue) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Capital costs 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

NET CASHFLOW 4,936,068 5,323,025 5,528,405 5,707,386 5,857,016 6,010,525 6,168,013 6,291,911 6,418,301 6,547,232 6,678,756 6,812,925 6,949,792 7,089,412 7,231,840 7,377,132 7,525,347 7,676,543 7,830,779 7,988,119 8,148,623 8,312,355 3.19% 2.25% 4,936,068 5,260,873 Gearing : net cashflow to effective revenue 75.5% 76.4% 76.6% 76.8% 76.9% 77.0% 77.1% 77.1% 77.1% 77.1% 77.1% 77.1% 77.1% 77.1% 77.1% 77.1% 77.1% 77.1% 77.1% 77.1% 77.1% 77.1% 75.5% 76.0% Gearing : net cashflow to Operating Expenses 377.1% 398.7% 406.0% 410.9% 413.4% 415.9% 418.5% 418.5% 418.5% 418.6% 418.6% 418.7% 418.7% 418.7% 418.8% 418.8% 418.8% 418.9% 418.9% 418.9% 419.0% 419.0% 377.1% 390.4% Gearing : net cashflow to All Expenses 307.9% 322.9% 327.8% 331.2% 332.9% 334.6% 336.3% 336.3% 336.4% 336.4% 336.4% 336.4% 336.5% 336.5% 336.5% 336.5% 336.6% 336.6% 336.6% 336.6% 336.7% 336.7% 307.9% 316.3% net cashflow per unit (pa) 5,078.26 5,476.36 5,687.66 5,871.80 6,025.74 6,183.67 6,345.69 6,473.16 6,603.19 6,735.84 6,871.15 7,009.18 7,149.99 7,293.63 7,440.16 7,589.64 7,742.13 7,897.68 8,056.36 8,218.23 8,383.36 8,551.81 5,078.26 5,412.42

T:\PSQ\Shared\Valuation\Clients\Bank of America\Project Rose II & III\6. Val Calcs\VP Vals\[PBSA FH Model_PDS.xlsx]Inputs © Cushman & Wakefield LLP 2019

Unless this information is provided in conjunction with a Valuation Report, it is for guidance purposes only and does not constitute a formal valuation. The information is confidential to the party to whom it is addressed and no liability is accepted to any other party. BAML PROPERTY VALUATION AS AT 12 JULY 2019 Hollis Croft House, Sheffield Discounted Cashflow Analysis

Year Discount Year Net Cash Discount Factor Present Value Proportion Net Running Period Ending Flow 8.15% of Cashflows of Value Yields

1 0.5 Sep-20 4,936,068 x 0.9615829 = 4,746,438 5.09% 5.30% 2 1.5 Sep-21 5,323,025 x 0.8891197 = 4,732,806 5.08% 5.71% 3 2.5 Sep-22 5,528,405 x 0.8221171 = 4,544,996 4.88% 5.93% 4 3.5 Sep-23 5,707,386 x 0.7601638 = 4,338,548 4.66% 6.12% 5 4.5 Sep-24 5,857,016 x 0.7028791 = 4,116,774 4.42% 6.29% 6 5.5 Sep-25 6,010,525 x 0.6499113 = 3,906,308 4.19% 6.45% 7 6.5 Sep-26 6,168,013 x 0.6009351 = 3,706,575 3.98% 6.62% 8 7.5 Sep-27 6,291,911 x 0.5556497 = 3,496,099 3.75% 6.75% 9 8.5 Sep-28 6,418,301 x 0.5137769 = 3,297,575 3.54% 6.89% 10 9.5 Sep-29 6,547,232 x 0.4750595 = 3,110,325 3.34% 7.03%

Total Present Value of Cashflows: 39,996,444 42.92% 6.31% Total Average

Reversion Year NOI/Income / Exit Cap Rate = Reversion 11 10 Sep-30 6,678,756 / 5.500% = 121,431,930 Less: Purchaser's Costs 2.984% 3,518,536 Less: Cost of Sale 1.250% 1,473,917

Net Reversion 116,439,477 x Discount Factor 0.4568091 Total Present Value of Reversion 53,190,613 57.08%

Total Present Value of Cashflows & Reversion: 93,187,057 100.00% Plus any capital additions 0 Less any capital deductions 0 Total Gross Present Value: 93,187,057 Less: Purchaser's Costs 2.800% 2,538,169 Total Net Present Value: 90,648,888

ROUNDED VALUE via DISCOUNTED CASHFLOW: 90,650,000

Total units 972 Value per unit 93,261 First year net cashflow per unit 5,078 n.b. "in place" net cashflow 4,936,068 "in place" net initial yield 5.30% "in place" net cashflow per unit 5,078 n.b. net cashflow - next academic year 5,260,873 net initial yield - next academic year 5.65% net cashflow per unit - next academic year 5,412

© Cushman & Wakefield LLP 2019

Unless this information is provided in conjunction with a Valuation Report, it is for guidance purposes only and does not constitute a formal valuation. The information is confidential to the party to whom it is addressed and no liability is accepted to any other party. BAML PROPERTY VALUATION AS AT 12 JULY 2019 Hollis Croft House, Sheffield Total Value Summary

A. Commercial Element

Commercial Accommodation - Size and Income Description Number of Total Size Av size per Annual Annual rental Total Units (Net Internal unit Rental Rate per unit potential Area) (per Sq Ft) annual income Unit 1 1 598.00 598.00 18.00 10,764.00 10,764.00 Unit 2 1 1,478.00 1,478.00 15.50 22,909.00 22,909.00 Unit 3 1 1,304.00 1,304.00 15.50 20,212.00 20,212.00 n/a ------n/a ------Totals 3 3,380.00 1,126.67 47.83 53,885.00 53,885.00

Commercial Accommodation - Valuation Description Number of Total Size Total % of income Income for Void Yield Years PV factor Gross Value Purchaser's Net Value Units (Net Internal potential for valuation Valuation Assumption Purchase (in Costs after Area) annual (yrs) perp) Purchaser's income Costs Unit 1 1 598.00 10,764.00 100% 10,764.00 - 9.00% 11.11 1.00 119,600 4.99% 113,916 Unit 2 1 1,478.00 22,909.00 100% 22,909.00 - 8.65% 11.56 1.00 264,844 4.99% 252,256 Unit 3 1 1,304.00 20,212.00 100% 20,212.00 - 9.00% 11.11 1.00 224,578 4.99% 213,904 n/a - - - 100% - - 8.00% 12.50 1.00 - 4.99% - n/a - - - 100% - - 8.00% 12.50 1.00 - 4.99% - Totals 3 3,380.00 53,885.00 53,885.00 0.43 609,022 580,076

Total Gross Value before Capex 609,022 Plus any capital additions 0 Less any capital deductions 0 Total Gross Value after Capex 609,022 Adjustment for Purchaser's Costs 28,946 4.99% Net Value 580,076 Rounding 5,000 Rounded Value 580,000

B. Student Accommodation

Total Unrounded Value 90,648,888 Rounding 10,000 Rounded Value 90,650,000

C. Total Value

Rounded Value 91,230,000

D. Running Yield Analysis (net of capital reserves and capital costs in the cashflow, but unadjusted for capex)

1. Student Housing: Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 "In Place" Next Academic Gross Value (on rounded) 93,188,200 net cashflow (AFTER capital reserves and capital costs) 4,936,068 5,323,025 5,528,405 5,707,386 5,857,016 6,010,525 6,168,013 6,291,911 6,418,301 6,547,232 4,936,068 5,260,873 Running Yields (net) 5.30% 5.71% 5.93% 6.12% 6.29% 6.45% 6.62% 6.75% 6.89% 7.03% 5.30% 5.65%

2. Commercial: (revenue growth at 2.5%) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 1 Year 1 Gross Value (on rounded) 608,942 net cashflow 53,885 55,232 56,613 58,028 59,479 60,966 62,490 64,052 65,654 67,295 53,885 53,885 Running Yields (net) 8.85% 9.07% 9.30% 9.53% 9.77% 10.01% 10.26% 10.52% 10.78% 11.05% 8.85% 8.85%

3. Combined Cashflow Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 "In Place" Next Academic Gross Value (on rounded) 93,797,142 (+ Yr 1) (+ Yr 1) net cashflow (AFTER capital reserves and capital costs) 4,989,953 5,378,257 5,585,018 5,765,415 5,916,495 6,071,490 6,230,503 6,355,963 6,483,954 6,614,527 4,989,953 5,314,758 Running Yields (net) 5.32% 5.73% 5.95% 6.15% 6.31% 6.47% 6.64% 6.78% 6.91% 7.05% 5.32% 5.67%

E. Running Yield Analysis (gross of capital reserves and capital costs, but unadjusted for capex)

1. Student Housing: Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 "In Place" Next Academic Gross Value (on rounded) 93,188,200 net cashflow (BEFORE capital reserves and capital costs) 4,936,068 5,323,025 5,528,405 5,707,386 5,857,016 6,010,525 6,168,013 6,291,911 6,418,301 6,547,232 4,936,068 5,260,873 Running Yields (net) 5.30% 5.71% 5.93% 6.12% 6.29% 6.45% 6.62% 6.75% 6.89% 7.03% 5.30% 5.65%

2. Commercial: (revenue growth at 2.5%) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 1 Year 1 Gross Value (on rounded) 608,942 net cashflow 53,885 55,232 56,613 58,028 59,479 60,966 62,490 64,052 65,654 67,295 53,885 53,885 Running Yields (net) 8.85% 9.07% 9.30% 9.53% 9.77% 10.01% 10.26% 10.52% 10.78% 11.05% 8.85% 8.85%

3. Combined Cashflow Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 "In Place" Next Academic Gross Value (on rounded) 93,797,142 (+ Yr 1) (+ Yr 1) net cashflow (BEFORE capital reserves and capital costs) 4,989,953 5,378,257 5,585,018 5,765,415 5,916,495 6,071,490 6,230,503 6,355,963 6,483,954 6,614,527 4,989,953 5,314,758 Running Yields (net) 5.32% 5.73% 5.95% 6.15% 6.31% 6.47% 6.64% 6.78% 6.91% 7.05% 5.32% 5.67%

© Cushman & Wakefield LLP 2019

Unless this information is provided in conjunction with a Valuation Report, it is for guidance purposes only and does not constitute a formal valuation. The information is confidential to the party to whom it is addressed and no liability is accepted to any other party. BAML BAML PROPERTY VALUATION AS AT 12 JULY 2019 PROPERTY VALUATION AS AT 12 JULY 2019 Hollis Croft House, Sheffield Hollis Croft House, Sheffield Sensitivity Analysis (Two Independent Trials) (Student Housing Element Only) Sensitivity Analysis (Two Independent Trials) (Student Housing Element Only) ACTUAL VALUES PERCENTAGE FIGURES

Factor 1 : Weekly Room Rate Factor 1 : Weekly Room Rate Factor 2 : Discount Rate and Exit Cap Rate Factor 2 : Discount Rate and Exit Cap Rate

Factor 1 Vertex : 0.00 Factor 1 Vertex : 0.00 Factor 2 Vertex : 0% Factor 2 Vertex : 0%

Rate Discount Rate & ECR Rate Discount Rate & ECR ######## -0.50% -0.25% 0.00% 0.25% 0.50% 3,250,000 -0.50% -0.25% 0.00% 0.25% 0.50% 20.00 116,570,000 111,210,000 106,340,000 101,900,000 97,820,000 20.00 28.47% 22.56% 17.19% 12.30% 7.80% 15.00 112,300,000 107,140,000 102,440,000 98,160,000 94,230,000 15.00 23.76% 18.07% 12.89% 8.18% 3.85% 10.00 108,020,000 103,060,000 98,540,000 94,420,000 90,640,000 10.00 19.04% 13.58% 8.60% 4.06% -0.11% 5.00 103,750,000 98,980,000 94,640,000 90,680,000 87,060,000 5.00 14.34% 9.08% 4.30% -0.07% -4.06% 0.00 99,470,000 94,900,000 90,740,000 86,950,000 83,470,000 0.00 9.62% 4.58% 0.00% -4.18% -8.01% -5.00 95,200,000 90,820,000 86,840,000 83,210,000 79,880,000 -5.00 4.92% 0.09% -4.30% -8.30% -11.97% -10.00 90,920,000 86,740,000 82,940,000 79,470,000 76,290,000 -10.00 0.20% -4.41% -8.60% -12.42% -15.92% -15.00 86,650,000 82,660,000 79,040,000 75,730,000 72,700,000 -15.00 -4.51% -8.90% -12.89% -16.54% -19.88% -20.00 82,370,000 78,580,000 75,140,000 71,990,000 69,110,000 -20.00 -9.22% -13.40% -17.19% -20.66% -23.84%

Factor 1 : % Adjustment to Operating Costs (excl the opex adj line) Factor 1 : % Adjustment to Operating Costs (excl the opex adj line) Factor 2 : Discount Rate and Exit Cap Rate Factor 2 : Discount Rate and Exit Cap Rate

Factor 1 Vertex : 0% Factor 1 Vertex : 0.00 Factor 2 Vertex : 0% Factor 2 Vertex : 0%

Opex Discount Rate & ECR Opex Discount Rate & ECR ######## -0.50% -0.25% 0.00% 0.25% 0.50% 3,250,000 -0.50% -0.25% 0.00% 0.25% 0.50% -20.00% 104,160,000 99,380,000 95,030,000 91,060,000 87,420,000 -20% 14.90% 9.63% 4.83% 0.45% -3.56% -15.00% 102,960,000 98,230,000 93,930,000 90,010,000 86,410,000 -15% 13.58% 8.36% 3.62% -0.71% -4.68% -10.00% 101,760,000 97,090,000 92,840,000 88,960,000 85,400,000 -10% 12.26% 7.10% 2.42% -1.86% -5.79% -5.00% 100,560,000 95,940,000 91,740,000 87,910,000 84,390,000 -5% 10.93% 5.84% 1.20% -3.02% -6.91% 0.00% 99,360,000 94,800,000 90,650,000 86,860,000 83,390,000 0% 9.61% 4.58% 0.00% -4.18% -8.01% 5.00% 98,160,000 93,650,000 89,550,000 85,810,000 82,380,000 5% 8.28% 3.31% -1.21% -5.34% -9.12% 10.00% 96,970,000 92,510,000 88,460,000 84,760,000 81,370,000 10% 6.97% 2.05% -2.42% -6.50% -10.24% 15.00% 95,770,000 91,460,000 87,450,000 83,790,000 80,440,000 15% 5.65% 0.89% -3.53% -7.57% -11.26% 20.00% 94,670,000 90,310,000 86,360,000 82,740,000 79,430,000 20% 4.43% -0.38% -4.73% -8.73% -12.38% BAML PROPERTY VALUATION AS AT 12 JULY 2019 Hollis Croft House, Sheffield Executive Summary - Inputs, Assumptions and Value Results

A. GENERAL INPUTS D. VALUATION RESULTS 1 Property Hollis Croft House, Sheffield 1 Market Value : Commercial Element 580,000 2 Client BAML 2 Market Value : Student Accommodation 80,150,000 3 Property reference number HCH 3 Market Value : Total 80,730,000 4 Tenure Freehold 5 Property owner 6 Operator Student Roost Student Accommodation Only: 7 Property type Direct Let & NOM's 4 Total number of units 972 8 Valuation date 12 Jul 2019 5 Value per unit 82,459 9 Opening date 01 Sep 2019 6 Value per Sq Ft (on the Gross Internal Area) #DIV/0! 10 Years since opening -0.14 11 Site area (hectares) 0.000 12 Site area (acres) 0.000 Running Yields (gross of capital reserves and costs in the cashflow, but unadjusted for capex): Adj for capex: 13 measurement units Sq Ft 7 Net yield (reflecting income for the next 12 months) - Year 1 1,003,714 1.218% 1.218% 14 Currency GBP 8 Net yield (reflecting income for the next 12 months) - Year 2 2,836,418 3.442% 3.443% 15 Valuation Rounding 10,000 9 Net yield (reflecting income for the next 12 months) - Year 3 4,873,800 5.915% 5.916% 16 DFC Period (in years) 10 10 Net yield (reflecting income for the next 12 months) - Year 4 5,673,149 6.885% 6.886% 11 Net yield (reflecting income for the next 12 months) - Year 5 5,821,924 7.066% 7.066% B. OTHER PRINCIPAL INPUTS 12 True net initial yield (reflecting income for the next 12 months after 1,003,714 1.218% all capital expenditure in the cashflow) – Year 1 1 Occupancy - term: Year 1 30.00% 13 Net yield - reflecting "in place" income 1,003,714 1.218% 1.218% 2 Occupancy - term: Year 2 60.00% 14 Net yield - reflecting estimated income for the next academic year 2,128,107 2.583% 2.583% 3 Occupancy - term: Year 3 90.00% 4 Occupancy - out of term: Year 1 35.00% No Growth Reversionary Yield & Estimated Net Equivalent Yield : 5 Occupancy - out of term: Year 2 30.00% 15 Net reversionary yield (gross of capital reserves and costs in the 5,056,032 6.136% 6.136% cashflow, but unadjusted for capex) on a no growth basis 6 Occupancy - out of term: Year 3 25.00% 16 Estimated Net Equivalent Yield (cashflow gross of capital reserves Not Calculated and costs, but unadjusted for capex. Annually in arrears basis) 7 Student related income - GICR for valuation 5.500% 8 Student related income - Adj for exit yield 0.000% i) Weighted average revenue data for year 1: 9 Student related income - Exit Yield 5.500% 17 Revenue - term time unit income only (incl noms, excl other adjmts) 1,983,879 p.a. 10 Student related income - Discount Rate for DCF 8.750% 18 Revenue - all income (incl noms and other adjmts) 2,147,401 p.a. 11 Student related income - Rental growth rate - Year 1 2.500% 19 Operating costs & Leakage % (excluding management fees and rent) 1,047,054 p.a. 48.76% 12 Ancillary income - Growth rate - Year 1 2.500% 20 Operating costs & Leakage % (including management fees and rent) 1,143,687 p.a. 53.26% 13 Commercial income - Rental growth rate - Year 1 2.500% 21 Net cashflow before capital reserves and capital costs 1,003,714 p.a. 14 Operating costs - Cost inflation rate - Year 1 2.000% 22 Net cashflow after capital reserves and capital costs 1,003,714 p.a. 15 Head rent - rent inflation rate - Year 1 2.500% 16 Student purchaser's costs (on entry) 2.800% Ii) Weighted average revenue data for year 1 - per unit: 17 Student purchaser's costs (on exit) 2.962% 23 Revenue - term time unit income only 2,041 p.a. per unit 18 Commercial purchaser's costs 4.990% 24 Revenue - all income 2,209 p.a. per unit 19 Disposal costs for the exit calculation 1.250% 25 Operating costs (excluding management fees and rent) 1,077 p.a. per unit 20 Management fee : a % of gross income 4.500% 26 Operating costs (including management fees and rent) 1,177 p.a. per unit 21 Capital reserves : a % of gross income 0.000% 27 Net cashflow before capital reserves and capital costs 1,033 p.a. per unit 28 Net cashflow after capital reserves and capital costs 1,033 p.a. per unit C. VALUATION ASSUMPTIONS All figures in GBP iii) Weighted average revenue data for year 1 - per unit per term week: The cashflow is on a calendar year basis 29 Weighted average number of term weeks 48.3 weeks Income growth above applied after year 1 30 Revenue - term time unit income only 42.27 per unit per term week Expense inflation applied after year 1 31 Revenue - all income 45.75 per unit per term week Exit price based on the forward looking 12 month income at the exit point. 32 Operating costs (excluding management fees and rent) 22.31 per unit per term week Cashflow is discounted as per the DCF analysis 33 Operating costs (including management fees and rent) 24.37 per unit per term week Commercial income (if receivable) is separately valued 34 Net cashflow before capital reserves and capital costs 21.38 per unit per term week Ancillary income (related to student occupation) has been added to our cashflow projections 35 Net cashflow after capital reserves and capital costs 21.38 per unit per term week It is assumed that the management agreement is in place and the costs associated are historic Capital costs in the cashflow are not inflated from day 1 and are assumed to arise in the first month of the year Commercial Element Only: 0 36 Revenue - Year 1 53,885 p.a. 0 37 Revenue - Year 1 per Sq Ft 15.94 0 38 Net initial yield 8.85% 0 0 0

Lease expiry date (for leased assets) n/a

T:\PSQ\Shared\Valuation\Clients\Bank of America\Project Rose II & III\6. Val Calcs\VP Vals\[PBSA FH Model_HCH.xlsx]Exec Summary © Cushman & Wakefield LLP 2019 Cushman & Wakefield | Bank of America Merrill Lynch Appendix C: RENTAL COMPARABLES AND MAP Valuation Date: 12 July 2019 Hollis Croft, Sheffield, S1 4BG

APPENDIX C: RENTAL COMPARABLES AND MAP

49

Sheffield Student Accomodation Comparables 05.07.2019

Room numbers (beds) in Rent (£per week) Map No. Block Name Postcode Operator Photo Room Types Let Length 2019 Comments Block: total 2019 2019

Studio 44 £100/up to £130 Laundry, bike storage, vending machine Studio 51 £100/up to £130

Primo Property 1 Alexandra House S2 5TS 25 Management

Ensuite 45 £111/up to £118 Laundry, bike storage, common areas Ensuite 51 £101/up to £109 Studio 51 £147.00 1 bedroom 51 £149.00 Student 2 Aspect 3 S3 7GB Facility 381 Management

Ensuite 44 £142/up to £162 Laundry, bike storage, common areas Ensuite 51 £137/up to £157 Studio 51 £172/up to £186 1 bedroom 51 £235/up to £245

Fresh Student 3 Bailey Fields S1 4L2 550 Living

Ensuite 44 £99/up to £115 Ensuite 51 £97/up to £110

Studio 44 £160/up to £165 Studio 51 £155/up to £160

4 Central Quay S3 8RA Host Students 767

Ensuite 44 £133/up to £151 Lundry, bike storage, car parking, common areas Ensuite 51 £126/up to £142 Studio 44 £165.00 Studio 51 £152/up to £178 Standard 51 £155/up to £158 5 Century Square S3 7AD IQ Students 305

Ensuite 44 £129.00 Landry, bike storage, common areas, cinema, gym Ensuite 51 £129/up to £135 Studio 51 £169.00 Standard 51 £149.00

6 Cornerhouse S3 7GB Student Roost 246

Ensuite 44 £125.00 Laundry, bike storage, gym Ensuite 51 £125.00 Studio 44 £125/up to £210 Studio 51 £185/up to £225 1 bedroom 51 £245.00 7 Crown House S3 8PH Collegiate AC 789

Standard 51 £139.00 Laundry, gym, common areas, bike storage Ensuite 44 £139/up to £145 Ensuite 51 £135/up to £155 Studio 51 £155/up to £210

Future 1 bedroom 51 £210.00 8 Steel City S1 4BJ 346 Generation

Studio 45 £142/up to £157 Laundry, gym, common areas Studio 50 £139/up to £154

9 Study Inn S1 4JA Study Inn 135

Studio 44 £187/up to £252 Laundry, gym, common areas, bike storage Studio 51 £170/up to £229 2 bedroom 44 £321.00 2 bedroom 51 £292.00 3 bedroom 44 £476.00 10 Telephone House S1 4HS Vita Student 379 3 bedroom 51 £433.00 Map – Sheffield – Hollis Croft Cushman & Wakefield | Bank of America Merrill Lynch Appendix D: Sheffield Market Commentary Valuation Date: 12 July 2019 Hollis Croft, Sheffield, S1 4BG

APPENDIX D: SHEFFIELD MARKET COMMENTARY

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Executive Summary Sheffield Student Accommodation Market

Cushman & Wakefield is currently working extensively in Sheffield, including a major piece of work for the city’s largest owner of bed spaces that is currently experiencing significant occupancy issues. The transformation of the market over the last five years in terms of the development of quality, competitively priced and well-located private sector accommodation means that a number of operators are now suffering. These include those in peripheral locations, as well as those developments (even in good locations) with inadequate social and amenity spaces.

The Sheffield private sector purpose-built market is the third largest market in the UK with over 19,000 private sector beds available in 2018/19. 35% of all private sector beds are leased or nominated to both universities - predominantly Sheffield Hallam University which is unusual in holding accommodation stock of its own. The Sheffield private sector market has expanded rapidly, with 2,100 beds entering the market for 2018/19 and over 2,000 for the forthcoming 2019/20 academic year. In fact, 60% of all direct let beds have entered the market since 2015, equating to over 7,500 beds. Therefore, competition in the market has increased markedly.

In terms of overall market trends, rental increases have been observed across several major operators in Sheffield. Schemes within proximity to the University of Sheffield’s main campus have noticeably increased rental levels between 2017 and 2018. However, there is also evidence of significant rental decreases over the previous academic year, largely across en-suite rooms as well as studios. This has been observed across several smaller operators who have less of a market presence. These schemes encounter more difficulty marketing themselves in an established market like Sheffield and have been forced to rationalise their prices accordingly.

Sixteen schemes offered discounted rents, mainly post July 2018 and Unite appeared to be affected more than other providers with seven schemes (Archways, Brass Founders, Central Quay, Leadmill Point, The Anvil, The Forge and The Forge 2) offering at least a 3% discount. Well located schemes as well as peripheral schemes have been affected, an indication of oversupply currently.

Our work with the University has revealed that the University of Sheffield has been significantly impacted by the ongoing demographic dip in UK 18- year olds.

Rents at Hollis Croft are competitively priced within the Sheffield market given the scheme’s good location and high quality rooms and amenity space.

4 Key Statistics Sheffield Student Accommodation Market

Sheffield University of Hallam Sheffield University

FT student population 26,565 25,255

Growth 2012-2017 19% 3%

Growth 2015-2017 6% 3%

Number of international students 8,410 2,050

Change in students from outside the 29% -21% UK 2012-2017

Number of Students from outside the 22,565 14,625 region

Change in students from outside the 16% -5% region 2012-2017

Change in UCAS applications 2016 - 2% -14% 18

UCAS app:accepts ratio 8.2 5.3

Times Rank 2019 25 67

Change in Times Rank 2012-2019 -8 4

TEF Silver Silver

6 University of Sheffield League Table Rankings

University of Sheffield League table rankings 2010-2019 As a member of the UK’s prestigious Russell Group of leading research-led institutions, the University of Sheffield continues to excel, placed among the top 40 universities in the UK. The University performed particularly well in the Times 2019 ranking at 25th in the country; a good indicator of all round academic and research strength. This is also reflected in its position in the REF 2014 at 14th. The University was awarded silver in the 2017 TEF, with the panel emphasising particular evidence of its investment in physical and digital resources, as well as its course design and assessment practices which builds on its strong partnerships with employers. The University of Sheffield is also a member of the ‘N8 Universities’ in the Northern Powerhouse, representing one of Europe’s top 200 universities which contribute significantly to the economy in the North. While world-class teaching and research excellence is offered across a range of disciplines, the University is now the top UK university for income and investment in engineering research, following the opening of three new multi-million pound research centres. Source: University League tables 2010 - 2019

Cushman & Wakefield | Helmsley Group 8 University of Sheffield Campus Investment

Engineering Heartspace Social Sciences Building Norton Sports Centre The Engineering Heartspace project will create a The creation of a new building for Social Sciences, The Norton Sports Centre which opened in summer ‘quadruple height’ atrium between the Grade II due to open in 2021, will provide a dedicated base, 2018 has seen a redevelopment of the existing listed Mappin Building and the 1885 Central Wing. enhancing student experience with brand new centre with brand new changing facilities, as well as The development will house new laboratories, social spaces and green space which will also be two new artificial pitches for hockey and offices and social space and the complete open to the public. The building will centralise a rugby/football. The hockey pitch has been refurbishment of both buildings. The project is variety of disciplines, encouraging collaborative developed to a national competition standard for intended to create a dynamic social and research teaching and a flexible, modern approach to students and clubs, creating a hub for regional and collaboration space for the Faculty of Engineering, working.A new research hub will also be created, national competitions. opening in summer 2019. merging research centres to address key global challenges.

9 University of Sheffield Campus Investment

New Energy Centre The Royce Discovery Centre The New Energy Centre is due to open in February The Royce Discovery Centre will build on the 2020 to provide an uninterrupted power supply to University’s advanced manufacturing research, as research experiments. It will also be able to supply one of two brand new innovative research-focused power and heat a number of main buildings on buildings for this purpose. As a major partner of The campus, saving carbon emissions and lowering the Henry Royce Institute, the University was awarded associated costs. £34m to fund the commercialisation of research into the area of advanced metals processing. The Royce Discovery Centre is set to open for early 2020, building a direct link with the business community who will be able to use the custom-built space with state of the art equipment. This will inevitably have a huge impact on research, whilst transforming the teaching experience for students at the Faculty of Engineering.

10 Sheffield Hallam University League Table Rankings

Sheffield Hallam University League table rankings 2010-2019 Sheffield Hallam University has improved its position in the major league tables for 2019, jumping up 15 places in one year to 70th in the Guardian. For 2019, the University also jumped up 3 places in the Times, following a rise in 7 places the previous year. The University has a plethora of specialist flexible courses available, with the option for mix part-time study, distance learning and work- based learning. This is reflective of the close industry links that are embedded into the curriculum, with over half of the undergraduate population undertaking work placements during their studies. The University is also one of the largest providers of degree apprenticeships. This strategy has led to the University obtaining a Silver rating in the Teaching Excellence Framework 2017 (TEF). The University’s recently announced campus masterplan will be key in helping the institution to rise in the league tables over the coming years.

Source: University League tables 2010 - 2019

Cushman & Wakefield | Helmsley Group 11 Sheffield Hallam University Campus Investment

Campus Masterplan Charles Street Building Other investments Announced in February 2018, the first phase £32m investment completed for use in - £11m refurbishment of Sheaf and Eric involves £220m investment plan for the main September 2015. The building is now home to Mensforth buildings completed 2017 university campus, set to be delivered over the the Sheffield Institute of Education, containing - £27m Heart of the Campus learning space next five years. This will include additional a 270-seat lecture theatre with cutting edge development, opened 2014 buildings for the Business School and social audio-visual equipment. The building is also sciences, as well a refurbishing the Students’ rented for conferences. - £6m, 22-acre Sports Park, opened 2013 Union which will create a University Green as - Refurbishment of Old Post Office building to the focal point. Subsequent phases will house the Sheffield Institute of Arts consolidate the campus through complete refurbishment and redevelopment of existing - Refurbishment of office building renamed buildings alongside new buildings. Ultimately, Bryan Nicolson building the masterplan will ensure that the estate supports the learning and researching of students.

12 Market Rents Hollis Croft – Student Roost Rental Profile (Scheme rents marked in red)

En-suites at Hollis Croft vary in price but most sit between £5,676 and £6,885 per annum, whilst this represents the around the average, towards higher end of the rental spectrum, the quality of the scheme means that rents are competitive in the market. Studios vary far more, with Hollis Crofts lowest studio price near to the bottom of the rental range, at £6,380 and going up to £8,925, no rooms nearing the top of the market price-wise. The private sector in Sheffield is dominated by affordable en-suite accommodation, with most beds delivered between £5,000 and £5,500 p.a.

14 Planning Pipeline PBSA applications in Sheffield

Number of bed spaces in planning pipeline 4,240

Development pipeline by Application Stage

Source: Sheffield City Council July 2019

16 Planning Pipeline Proposed Developments in Sheffield

Source: Sheffield City Council

As of July 2019, there are a total of 4,240 bed spaces in the development pipeline, of which 4,052 are approved. The pipeline continues to grow rapidly with over 2,800 beds opening for the 2019 academic year. There are no signs of development slowing down with 2,357 beds set to open for 2020 and a further 1,196 beds proposed for 2021. The majority of proposed beds are part of large-scale developments containing a significant number of cluster beds.

17 Demand and Supply Dynamics The Sheffield demand pool

The pool calculation below sets out our assumptions of demand for student accommodation in Sheffield taking into account current supply levels in Sheffield and the latest HESA student figures (2017/18) for University of Sheffield and Sheffield Hallam University. In arriving at our demand pool, C&W has excluded a number of students who are unlikely to demand accommodation in the city. This includes: • Students currently not living in PBSA domiciled in South Yorkshire and West Yorkshire • Students living at Home in North Yorkshire • Sandwich students currently on a placement year in industry

Sheffield Demand Pool & SBR

Source: HESA 2017/18, Cushman & Wakefield Accommodation Tracker 2019/20

The SBR in Sheffield is 1.5:1, lower than most other major cities below what Cushman & Wakefield would consider a healthy demand/supply ratio for a major student accommodation market. The low ratio will create some occupancy issues as the market “digests” the beds, the schemes that are priced out of kilter with the rest of the market and the poorer quality beds traditionally suffer in saturated markets. Discounting is evident for several schemes already, but well located and well priced stock has let very well.

19 Cushman & Wakefield | Bank of America Merrill Lynch Individual Property Record Valuation Date: 12 July 2019 Great Patrick Street, 28-30 Great Patrick Street, Belfast BT1 2LT

INDIVIDUAL PROPERTY RECORD

GREAT PATRICK STREET, 28-30 GREAT PATRICK STREET, BELFAST, BT1 2LT

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Cushman & Wakefield | Bank of America Merrill Lynch Table of Contents Valuation Date: 12 July 2019 Great Patrick Street, 28-30 Great Patrick Street, Belfast BT1 2LT

TABLE OF CONTENTS

Executive Summary

1. Location and Description

2. Structural Condition and Repair

3. Site

4. Environmental Considerations

5. Statutory Matters

6. Taxation

7. Tenure and Occupational Interests

8. Student Market Considerations

9. Valuation Approach and Opinions of Value

10. Market Value

11. Market Value Based on Special Assumptions

12. Security of the Loan

Appendices

A. Maps and Plans

B. Valuation Calculations

C. Rent Comparables and Map

D. Belfast Market Commentary

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Cushman & Wakefield | Bank of America Merrill Lynch Executive Summary Valuation Date: 12 July 2019 Great Patrick Street, 28-30 Great Patrick Street, Belfast BT1 2LT

EXECUTIVE SUMMARY

This summary is strictly confidential to you as the Addressee. It must not be copied, distributed or considered in isolation from the full report.

Property Summary

Location The Property is located to the northern fringe of Belfast city centre fronting Great Patrick Street. The Property is well located in terms of accessibility with Great Patrick Street forming an arterial route through the north of the city centre. The M2 and M3 motorways and Westlink (A12) are accessed c.200m to the north of the Property, with Westlink providing an arterial route around the western element of the city centre and linking with the M1 motorway c.2.75 km (1.7 miles) to the south west. Great Victoria Street railway station is located approximately 1.25 km (0.8 miles) to the south west of the Property and accessed within a 20 minute walking time. The City’s main retail areas are located c.600m to the south of the Property, including the Castle Court Shopping Centre and Victoria Square Shopping Centre. Ulster University’s city campus is situated immediately to the south the Property whilst its Jordanstown campus (c.10 km to the north) is accessed via a regular bus service with a c.25 minutes commute from the Property. Queens University campus is situated c.2.25 km (1.40 miles) south of the Property and accessed within a 35 minute walk or via public transport (25 minute commute). The Property is considered extremely well located for Ulster University’s new city campus and well located for city centre amenities.

Description The Property provides a purpose-built student accommodation scheme constructed in 2018. Property provides a total of 474 student bedspaces comprising 394 en suite bedspaces and 80 studios. The accommodation at ground floor provides the main reception and management office together with the communal accommodation, with the en suite and studio bedspaces arranged over floors 1 to 10. A central courtyard area is accessed at 1st floor level. The bedspace accommodation at each level is accessed via corridors leading form the core areas. The Property provides a single en suite room type whilst studios are offered as ‘Bronze’ and ‘Silver’ room types, varying dependent size. All accommodation is finished to an identical modern good quality specification of fittings and furnishings. The Property provides a high level of onsite communal facilities including reception area and management office, communal lounge, games room, private study room, cinema, demonstration kitchen/private dining, courtyard area, laundry and cycle storage. There is a retail unit at ground floor level that is not within the demise of the Property.

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Cushman & Wakefield | Bank of America Merrill Lynch Executive Summary Valuation Date: 12 July 2019 Great Patrick Street, 28-30 Great Patrick Street, Belfast BT1 2LT

Approximate year of 2018 construction

Specification The individual en suite bedspaces and studios units are all finished to a good standard and specification for the student accommodation market. The Property provides a high level of onsite communal facilities for students.

Condition We have not carried out a building or condition survey. The Property comprises a new-build purpose-built student residential scheme completed in 2018. The internally inspected accommodation was finished to a good quality specification throughout and provides a good condition given its recent completion. During the course of our inspection we did not note any defects requiring further attention. Our internal inspection of the Property was limited to a select number of accommodation units. We have therefore made the assumption that the accommodation which was not inspected is of a similar condition to that inspected.

EPC EPC rating of B 33 (23 Nov. 2018) The Property is currently compliant with the Energy Performance of Building (Certificate and Inspections) (Amendment) Regulations (Northern Ireland) 2014.

Environmental Issues None of which we are aware. We have been provided with a copy of a Phase I Environmental Site Assessment (ESA) dated July 2019) prepared by Delta Simons (Ref 19- 1146.01) which we have reviewed.

Tenure Freehold under Title Numbers AN156053, AN155266, AN197908, AN146545 & AN160094.

University Agreements The Property benefits from a 2-year Nominations Agreement for the 2018/19 and 2019/20 academic years with Ulster University. We have been provided with a copy of the Nominations Agreement, which we have reviewed. Under the Agreement the University are to nominate 175 en suite bedspaces for the 2018-2019 academic year and 225 en suite bedspaces for the 2019- 2020 academic year. The bedspaces are to be let for terms of 40 weeks at a rent of £130 per week for the 2018/19. We are advised by the Borrower that the agreed bedspace rent for the 2019/20 year is to be £119 per week per bedspace. The University is to be responsible for the payment of rent for any void bedspaces from the commencement of the term of the Agreement. We recommend your legal advisors confirm our understanding of the Nominations Agreement is correct.

Tenancies We have been provided with cashflows by the Borrower with forecast income projections for the 2018/19 and 2019/20 academic years.

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Cushman & Wakefield | Bank of America Merrill Lynch Executive Summary Valuation Date: 12 July 2019 Great Patrick Street, 28-30 Great Patrick Street, Belfast BT1 2LT

There is a nomination agreement with the University of Ulster for 225 en- suite rooms. The agreement ends 13th June 2020 and the agreed rent is £119 per week for 40 weeks which equates to £1,791,000. The other 249 rooms are operated on a wholly direct-let basis. We are advised that the Property has achieved c.87.3% occupancy by room number for the 2019/20 academic year. The advertised weekly rents for en-suite bed spaces is £119 from 40 weeks for the 2019/20 academic year and up to £159 for studio rooms from 44 weeks. As at the date of valuation, the aggregate total forecast rent for the 2018/19 academic year totals £958,500 but this reflects a low occupancy of 51.1%. For the 2019/20 academic years we have assumed total revenue of £2,486,108 (97.76% occupancy) which compares against the Borrower’s estimate of £2,645,733 (100% occupancy).

Income, Yield and Market Value Summary

Valuation Date 12th July 2019

Year 1 Net Operating £1,544,790 Income

Market Value £34,270,000

Yield Profile Year 1 4.39% Year 2 4.65% Year 3 5.06%

Loan Security In our opinion, subject to the comments and Assumptions contained below and elsewhere in this Valuation Report, the Freehold interest in the Property provides reasonable security for the purposes of a loan.

Liquidity Good

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Great Patrick Street, 28-30 Great Patrick Street, Belfast BT1 2LT

PROPERTY RECORD

BELFAST – Great Patrick Street, 28-30 Great Patrick Street, Belfast BT1 2LT

Inspection The Property was subject to an external inspection, from ground level and an internal inspection of a selection of accommodation types and communal areas, by Jagruti Joshi MRICS on the 3rd July 2019.

1. Location and Description

1.1. Location

General • The city of Belfast is located in Northern Ireland and is the country’s capital city and economic centre, situated on the on the north east coast.

Further maps and plans are attached in Appendix A. • The City benefits from excellent communication links with the remainder of the province, via road networks (M1 and M2 motorways), public transport and rail links. • Belfast’s main railway station, Great Victoria Street Station, provides regular direct services to Dublin, Coleraine, Portrush and Derry whilst the City’s Lanyon Place Station, Botanic Station and City Hospital Station provide Belfast’s Suburban Rail System which runs along 3 lines through Belfast's northern suburbs to Carrickfergus, Larne and Larne Harbour; eastwards towards Bangor and south-westwards towards Lisburn and Portadown. • Belfast International Airport is located approximately 20 kilometres (12.4 miles) to the west of the city centre, whilst George Best Belfast City Airport is located immediately to the north of the city centre. Further, the City benefits from sea and ferry links via Belfast Harbour.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Great Patrick Street, 28-30 Great Patrick Street, Belfast BT1 2LT

• The city is home to two universities. Queens University campus is located to the southern fringe of Belfast city centre along University Road. • Ulster University’s main campus is at Jordanstown, situated c.10 km (6.20 miles) to the north of the city centre. The University is currently developing a new city centre campus along Frederick Street and York Street, the 1st phase of which opened in 2015 with the second phase due to complete in 2022. Following completion of the campus, the University will relocate the majority of its courses to the city centre. • Belfast city centre has wide appeal to the student population, with a range of chain and independent bars, restaurants and eateries, as well as an extensive shopping environment, as expected of a capital city.

Situation • The Property is located to the northern fringe of Belfast city centre fronting Great Patrick Street. • The Property is well located in terms of accessibility with Great Patrick Street forming an arterial route through the north of the city centre. The M2 and M3 motorways and Westlink (A12) are accessed c.200m to the north of the Property, with Westlink providing an arterial route around the western element of the city centre and linking with the M1 motorway c.2.75 km (1.7 miles) to the south west.

• Great Victoria Street railway station is located approximately 1.25 km (0.8 miles) to the south west of the Property and accessed within a 20 minute walking time. • The City’s main retail areas are located c.600m to the south of the Property, including the Castle Court Shopping Centre and Victoria Square Shopping Centre. • The popular Cathedral Quarter and Titanic Quarter offer a range of amenities for the students and both these areas are located within an easy walking distance of the Property. • The surrounding area provides a mixed-use location comprising of predominantly office and light industrial uses.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Great Patrick Street, 28-30 Great Patrick Street, Belfast BT1 2LT

• Ulster University’s city campus is situated immediately to the south the Property whilst its Jordanstown campus (c.10 km to the north) is accessed via a regular bus service with a c.25 minutes commute from the Property. • Queens University campus is situated c.2.25 km (1.40 miles) south of the Property and accessed within a 35 minute walk or via public transport (25 minute commute). • The Property is considered extremely well located for Ulster University’s new city campus and well located for city centre amenities. • The main university campuses are located as follows:

1.2. Description

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Great Patrick Street, 28-30 Great Patrick Street, Belfast BT1 2LT

Summary • Purpose-built student accommodation scheme completed in 2018. • Property provides a total of 474 student bedspaces comprising 394 en suite bedspaces and 80 studios. • All accommodation is finished to a good quality standard and specification for the student accommodation market. • The Property provides a high level of onsite communal facilities including reception area and management office, communal lounge, games room, private study room, cinema, demonstration kitchen/private dining, courtyard area, laundry and cycle storage.

Construction • The Property comprises a recently completed purpose-built student accommodation scheme arranged as a single block fronting Great Patrick Street, with a secondary frontage to Little York Street and rear frontage to Little Patrick Street. • The Property achieved practical completion in 2018 and comprises 474 bedspaces arranged over ground and 10 upper floors. • The Property is of frame construction having brick elevations below flat roofs and arranged around a central podium courtyard area. • Windows throughout the block are double glazed in metal casements. • The Property is accessed from the Great Patrick Street frontage, leading to the scheme’s reception area, whilst an internal ground floor car park area is accessed from Little Patrick Street. • A retail unit is located at ground floor fronting Great Patrick Street, having a hoarded frontage. Layout and Specification • The accommodation at ground floor provides the main reception and management office together with the communal accommodation, with the en suite and studio bedspaces arranged over floors 1 to 10. • The central courtyard area is accessed at 1st floor level. • The bedspace accommodation at each level is accessed via corridors leading form the core areas. • The Property provides a high level of onsite communal facilities including reception area and management office, communal lounge, games room, private study room, cinema, demonstration kitchen/private dining, courtyard area, laundry and cycle storage. • An internal, secure ground floor car park provides 6 parking spaces for use by staff or students with disabilities.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Great Patrick Street, 28-30 Great Patrick Street, Belfast BT1 2LT

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Great Patrick Street, 28-30 Great Patrick Street, Belfast BT1 2LT

Cluster Flat Accommodation

• The Property provides a total of 394 en suite bedspaces. • The rooms are offered as a single room type with all bedspaces finished to an identical, good quality standard of fixtures and fittings, comprising the following: » Plastered and painted walls and ceilings throughout incorporating recessed lighting. » Timber effect vinyl flooring to bedspaces and living/kitchen areas with hard-wearing carpet floors to hallways. » Heating via wall-mounted radiators and time controlled ‘boost’ buttons. » WiFi internet hub within each cluster flat. » Hard-wired smoke detectors. » ¾ size bed with underbed storage. » Built-in desk with drawers and shelving, notice board and desk chair. » Double wardrobe with drawers. » Shower pod comprising ceramic sanitary-wear with stainless steel fittings, wall mounted mirror, bathroom cabinet, recessed LED strip lighting, thermostatic shower fitting and glazed shower door.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Great Patrick Street, 28-30 Great Patrick Street, Belfast BT1 2LT

• The kitchen / lounge area serving each cluster flat are also decorated to a similar specification and are furnished as follows: » Modern fitted kitchen with base and wall units. » Laminate work surfaces with Perspex splashbacks. » Sink and drainer with modern mixer tap. » Integrated appliances to include 4-ring ceramic hob, extractor hood and electric oven together with combination microwave and free-standing fridge/freezers. » Fabric sofas with storage unit. » Breakfast bar and stools.

Studios • The scheme provides a total of 80 studios, offered as ‘Bronze’ and ‘Silver’ room types, varying dependent on room size. • The studios are identically finished and similarly appointed to the en suite bedspaces in terms of fixtures, fittings and shower pods. • Each studio provides kitchenette area similarly appointed to cluster flat kitchens but including the following differences: » Integrated appliances to include 2-ring ceramic hob, extractor hood and combination microwave oven with free-standing under-counter fridge/freezer. » Breakfast bar and 2 chairs.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Great Patrick Street, 28-30 Great Patrick Street, Belfast BT1 2LT

• The individual unit rents and values we are reporting are on the Assumption that the internal specification of the en suite bedspaces and studios which were not internally inspected are of a similar standard to those inspected and as detailed above. Should it be found that the units which were not internally inspected provide a lower quality specification, we should be informed immediately and allowed to reconsider our valuations. • Our opinions of rents and values are provided on the basis of the quality and specification of the inspected accommodation. • Should it be found that the accommodation provides a different specification or mix of accommodation types to that as advised, we should be requested to revisit our valuations. Commercial Accommodation • The commercial accommodation to the ground floor is finished to a shell specification, with a hoarded street frontage. • The accommodation is currently utilised by the student scheme as storage but we have been informed that part of the property is not with the demise.

1.3. Accommodation • The Property provides a total of 474 student bedspaces arranged across a mix of en suite cluster beds and studios, together with onsite communal accommodation. • We have been provided with a breakdown of accommodation by the Borrower on which we have relied. • We have not undertaken a measured survey of the Property. As is consistent with the student accommodation sector, rents are based upon weekly rents per room and not on a price per square metre or square foot. • We detail below a breakdown of the advised accommodation:

Room Type No. Units

En Suite 394

Studio Bronze 33

Studio Silver 47

Total / Average 474

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Great Patrick Street, 28-30 Great Patrick Street, Belfast BT1 2LT

• Our valuation is based on the above accommodation mix as advised. Should it be found that the breakdown of accommodation is different to that as advised, we should be requested to revisit our valuations. Parking Provision • 6x parking spaces for use by staff or students with disabilities.

2. Structural Condition and Repair • We have not carried out a building or condition survey. • We have not been provided with a copy of a Building or Condition Survey or a Mechanical and Electrical Systems Report, Lift Report or Fire Systems Report. • The Property comprises a purpose-built student residential scheme completed in 2018. • Our inspection of the external parts of the Property was from ground floor level only and as such we have not inspected the roofs. Our internal inspection comprised of a mix of cluster flat bedspaces and studio types together with the scheme’s communal accommodation. • The internally inspected accommodation was finished to a good quality specification throughout and provides a good condition given its recent completion. • During the course of our inspection we did not note any defects requiring further attention. • Our internal inspection of the Property was limited to a select number of accommodation units. We have therefore made the assumption that the accommodation which was not inspected is of a similar condition to that inspected. • We have assumed that all works of construction have been satisfactorily carried out in accordance with current British Standards and any relevant codes of practice. We have further assumed that all building works are covered by warranties/guarantees in the event of any future defects due to workmanship/materials which may need addressing. • We recommend that your legal advisors confirm that where warranties and guarantees are provided in relation to the building works, these are assignable to the Bank and any future financial lending institutions and/or purchasers as required. • The nature of student accommodation is such that in order to maintain the appearance of the Property and student demand, and to protect the Bank’s security, the Borrower will have to ensure they are proactive in the management, maintenance and repair of the building, undertaking a planned preventative maintenance programme to prevent any deterioration in items which need repair, ensuring operating costs are minimised.

Services • We have assumed that the Property is connected to mains water, electricity and sewerage services.

Remaining Useful Economic Life • We consider the building has a remaining useful economic life, provided it is properly maintained, of 30 years.

Estimated Reinstatement Cost Assessment • Our indicative guide to the Day One Cost is in the order of £24,473,000 (exclusive of VAT). C&W has not carried out a formal reinstatement cost assessment.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Great Patrick Street, 28-30 Great Patrick Street, Belfast BT1 2LT

• This guide figure envisages reconstructing the Property at the Valuation Date with clearance and reinstatement using modern methods and materials, which may not necessarily be appropriate or permitted. It does not reflect any additional costs attributable to conservation area status or listed building status (or similar – for example proximity to listed buildings) • The provision of this guide figure is strictly in accordance with the terms of the Engagement and you should not rely on this guide for any purpose before it has been confirmed by a formal assessment carried out by a building surveyor or other person with sufficient current experience of replacement costs.

3. Site

Boundary

Area • Based on Ordnance Survey plans we calculate the approximate site area to be:

0.50 acres 0.20 hectares

Ground Conditions • We have not been provided with any information that indicates there are adverse ground conditions affecting the Property.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Great Patrick Street, 28-30 Great Patrick Street, Belfast BT1 2LT

Archaeology • We have made an assumption that the site has no archaeological significance.

Flooding Risk • Plans reviewed by us on the Department for Infrastructure website indicate that the Property is not in, or near to, a sea or river floodplain and that the site is considered to have a low likelihood of flooding. • The Department for Infrastructure plan is shown below with the approximate position of the subject Property is shown by a red dot:

Source: Department for Infrastructure Website • The Department for Infrastructure map indicates that the site is considered to have a ‘Low Risk’ of flooding. • We note however that the provided Phase I Environmental Site Assessment (ESA) dated July 2019) prepared by Delta Simons states that ‘Whilst the Site is not presently at risk from fluvial, coastal or surface water flooding, the Site is situated within a predicted flood plain associated with climate change (2030 year)’. • On 4 April 2016, a new scheme was introduced, called Flood Re, to enable owners of residential properties in flood risk areas to obtain insurance on more affordable terms. Designed by the Government and the insurance industry, Flood Re will collect a sum from every home insurer in the UK and then take responsibility for the flood risk part of the policy and manage a central fund. In the event that a householder has to make a claim on their insurance policy Flood Re would reimburse the insurer from the central Flood Re fund.

4. Environmental Considerations and Environmental Performance

4.1. Environmental Considerations • We have made the enquiries referred to in the terms of the Engagement. • We have been provided with a copy of a Phase I Environmental Site Assessment (ESA) dated July 2019) prepared by Delta Simons (Ref 19-1146.01) which we have reviewed.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Great Patrick Street, 28-30 Great Patrick Street, Belfast BT1 2LT

• We note that the Report provides a desk-based environmental assessment of the Property and does not include any intrusive site investigations. • The Report details the following findings:

• The Report considers both perceived and actual risks using the pollutant linkage concept, with the principal measure of risk being whether significant harm (to people, animals, property, or statutory ecological receptors) or pollution of controlled waters (surface water bodies, aquifers, coastal waters, or territorial waters) is being caused, or whether there is a significant possibility of such harm being caused. • The Report provides the following ‘Land Contamination Risk & Liability Assessment’:

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Great Patrick Street, 28-30 Great Patrick Street, Belfast BT1 2LT

• The Report states the following recommendations:

• Save for the above, our enquiries have provided no evidence that there is a significant risk of contamination or other adverse environmental issues in respect of the Property. • Other than as referred to above, we have made no investigations to establish if there is existing or potential contamination or other adverse environmental issues and, in practice, a purchaser may undertake further investigations. • If it is subsequently established that contamination or other adverse environmental issues exist at the Property or on neighbouring land, or that the premises have been or are being put to a contaminative use, this might reduce the value now reported. You are advised to ensure your legal adviser takes up the usual enquiries on your behalf in respect of possible contamination or other adverse environmental issues before entering a financial commitment regarding the Property.

4.2. Environmental Performance • Energy Performance Certificates (EPCs) must be produced for all properties before being marketed for sale or lease. • The Energy Performance of Building (Certificate and Inspections) (Amendment) Regulations (Northern Ireland) 2014 establish a minimum level of energy efficiency for privately rented property. The Minimum Energy Efficiency Standards (MEES) Regulations are effective from 1 April 2018. The regulations prohibit the granting of a new tenancy or lease renewal of

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Great Patrick Street, 28-30 Great Patrick Street, Belfast BT1 2LT

privately rented residential or business premises which do not have an Energy Performance Certificate (EPC) rating of 'E' or above. • From April 2020, all privately rented residential property will be affected, followed in April 2023 by all privately rented commercial property even where there has been no change in tenancy arrangements. In both cases, properties will be affected even where a lease is already in place and a property is occupied by a tenant. • We are not able to comment on the quality or accuracy of a specific EPC and we would advise undertaking your own quality assurance measures. We are not qualified to make an assessment of costs associated with improving non-compliant properties.

Energy Performance Certificate • We have checked the Northern Ireland Department of Finance Domestic and Non-Domestic Energy Performance Certificate (EPC) Registers. • We have not identified any EPC assessments for the Property: • We have identified the following EPC assessment for the Property:

Address Rating Date Certificate Number

Student Roost, B 33 23 Nov. 2018 9102-3038-0585-0000-3005 28-30 Great Patrick Street, Belfast, BT1 2LT

• We have not identified any EPC assessments for the individual cluster flats or studios within the Property. • The above assessment is currently compliant with the minimum requirements of the Regulations.

5. Statutory Matters • We have made the enquiries referred to in the terms of the Engagement.

Town Planning

Overview

a. Local planning authority Belfast City Council

b. Current planning use Student Residential

c. Listed Building status? No

d. Conservation Area? No

e. Outstanding applications? None

Planning History • Planning permission for the Property’s construction was approved by the Local Authority as follows:

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Great Patrick Street, 28-30 Great Patrick Street, Belfast BT1 2LT

Date Status Details

20 May 2016 Approved Planning Ref: Z/2014/1657/F Erection of 11 storey building (34.5m high) comprising a retail unit at ground floor level, 475 managed student accommodation (with communal living rooms kitchen), associated reception/office facility, other ancillary accommodation including landscaped courtyard, plant and storage areas, car parking and cycle provision.

• We confirm that the Property as approved under the above planning permission is the Property to which this valuation relates. • The approved planning permission was subject to 17 Conditions. • We understand from the provided Certificates of Title prepared by Tughans (Ref UK - 62041711.11) that all Conditions have been complied with. • The planning permission was further subject to a Section 76 of the Planning Act (Northern Ireland ) 2011 dated 20th May 2016 which provided for: » A sum of £14,250.00 to be paid to the Council on execution of the agreement; » A sum of £237,500.00 to be paid on the commencement of development; » A restriction on being student-only accommodation; » An occupation limit commensurate with the number of rooms, » A management plan is to be entered into prior to occupation. • The provided Certificate of Title confirms that the sums referred to above have been paid and the management plan has been entered into. • Further to the above we are aware of the following additional planning permissions relating to the Property:

Date Status Details

7 Jun 2018 Approved Planning Ref: LA04/2018/0812/F Proposed change of use of ground floor plant area into additional retail floor area.

• We are not aware of any further planning applications in respect of the Property.

Policies Affecting the Property • Planning policy for the area is contained within the Belfast City Council Local Development Plan. • The Property is located in an area zoned which is not zoned for any specific use in the Plan.

Other Statutory Matters • The Property is not listed nor situated within a conservation area. • We are not aware of any road scheme or compulsory purchase order that could affect the Property. • The Property has frontages onto Great Patrick Street, Little Patrick Street and Little York Street which we understand have each been adopted by the Local Highway Authority and maintained at the public’s expense.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Great Patrick Street, 28-30 Great Patrick Street, Belfast BT1 2LT

6. Taxation

Non-Domestic Rates • We have checked the Northern Ireland Department of Finance website. • We have identified the following Net Annual Value (NAV) Assessment for the Property:

Net Annual Value 2019/20 Rates Address Description Payable

20 Great Patrick Halls of Residence £368,000 £226,001.68 Street, Belfast, BT1 2LT

• For the 2019/20 year, the property rates payable for the Property total £226,001.68 as calculated by the Department of Finance Rates Calculator (https://lpsni.gov.uk/calc/index.htm)

Domestic Rates • We have checked the Northern Ireland Department of Finance website. • We have not identified any domestic rates assessments at the Property.

Value Added Tax • We have not been advised as to whether an election has been made to waive exemption to VAT in respect of the Property. • The capital valuations and rentals included in this Report are net of Value Added Tax at the prevailing rate.

Capital Allowances • There may be capital allowances available to a purchaser of the Property. We have not considered the benefits of these in our valuation. Should these be available, this may assist the marketing of the Property.

7. Tenure and Occupational Interests

7.1. Title

Overview

Title no(s) AN156053, AN155266, AN197908, AN146545 & AN160094

Type of Tenure Freehold

Any material encumbrances or unduly onerous / unusual None of which we are aware easements, restrictions, outgoings or conditions?

Any title characteristics likely to have an adverse impact on None of which we are aware value, either now or over the proposed loan term?

• We have made the enquiries referred to in the terms of the Engagement. • We have been provided with a Draft Certificate of Title prepared by Tughans (Ref UK - 62041711.11) which we have reviewed.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Great Patrick Street, 28-30 Great Patrick Street, Belfast BT1 2LT

• We can confirm that the Property as detailed within the Draft Certificate of Title is the Property which we have valued and to which this Valuation Report relates. • We further confirm that we have considered all content within the provided Draft Certificate of Title in undertaking our valuations. • We understand that the Property is held Freehold under Title Numbers AN156053, AN155266, AN197908, AN146545 and AN160094. • The extent of the Freehold titles is shown below:

Titles AN156053, AN155266, AN197908, AN146545 & AN160094

• Save as disclosed in the Certificate of Title, we understand that the Freehold titles are free from restriction as to use, title or occupation and free from any other restriction which may affect value. • The Certificate of Title does however detail the following: Lands at Little York Street, Belfast • The element of the Property under Title Numbers AN160094 and AN197908 comprising Lands at Little York Street, Belfast is subject to a lease dated 14 December 1898 between Hannah Burrows and Jane Dollar (1) Anthony Jesson (2) and Samuel Sinclair Fitzgerald and John Henry McDonnell (3). • The lease is for an undetailed term save the Certificate states ‘Fee Simple’ at an annual ground rent of £16 8 shillings per annum. • The Certificate states that the Lease is a sub fee farm grant. The head fee farm grant dated 18 May 1827 is missing and a Title Indemnity Policy has been obtained to cover the risk of any unknown exceptions and reservations. Lands at Great Patrick Street, Belfast

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Great Patrick Street, 28-30 Great Patrick Street, Belfast BT1 2LT

• The element of the Property under Title Number AN146545 comprising Lands at Great Patrick Street, Belfast is subject to a lease dated 9 December 1922 between Frances Mary Caldwell, William Caldwell and Alexander Caldwell (1) Frances Robertson, Charlotte Montgomery and William Montgomery (2) and Henry Genn (3). • The lease is for an undetailed term save the Certificate states ‘Fee Simple’ at an annual ground rent of £150 per annum. • The Certificate states that the Lease is a sub fee farm grant. The head title is a Deed Poll dated 26 June 1852 which is missing and a Title Indemnity Policy has been obtained to cover the risk of any unknown exceptions and reservations. Title Indemnity Policies • The Certificate details the following Title Insurance Indemnity Policies in relation to the Property: • There is a Title Insurance Policy issued by Liberty Legal Indemnities on 23 November 2016 (“TI Policy”) covering the following risks: 1. Unknown matters excepted and reserved from a missing Lease dated 18 May 1827 and referred to in a Fee Farm Grant dated 14 December 1898 and made between Hannah Burrows and Jane Dollar (1) Anthony Jesson (2) and Samuel Sinclair Fitzgerald and John Henry McDonnell (3) 2. Unknown exceptions and reservations mentioned in a missing Deed Poll dated 26 June 1852 and referred to in a Fee Farm Grant dated 9 December 1922 and made between Frances Mary Caldwell, William Caldwell and Alexander Caldwell (1) Frances Robertson, Charlotte Montgomery and William Montgomery (2) and Henry Genn (3) • The limit of indemnity is £36,500,000.00 and the policy applies to the insured, successors in title, mortgagees and occupiers Substation Lease • Lease of an Electrical Substation for a term of 999 years with effect from the 1 March 2017. • The lease is subject to an annual rent of Peppercorn per annum (if demanded).

7.2. University Agreements • The Property benefits from a 2-year Nominations Agreement for the 2018/19 and 2019/20 academic years with Ulster University. • We have been provided with a copy of the Nominations Agreement, which we have reviewed. • Under the Agreement the University are to nominate 175 en suite bedspaces for the 2018- 2019 academic year and 225 en suite bedspaces for the 2019-2020 academic year. • The bedspaces are to be let for terms of 40 weeks at a rent of £130 per week for the 2018/19 year and an amount per week to be agreed by 30 October 2018 or, if not agreed by 31 January 2019 this may be determined by a member of Royal Institution of Chartered Surveyors. • We are advised by the Borrower that the agreed bedspace rent for the 2019/20 year is to be £119 per week per bedspace. • The University are to be responsible for the payment of rent for any void bedspaces from the commencement of the term of the Agreement. • The Borrower has advised that the University are committed to pay £900,000 for the 2018/19 academic year and £1,071,000 for the 2019/20 year

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Great Patrick Street, 28-30 Great Patrick Street, Belfast BT1 2LT

• Either party may determine the Agreement should the other party commit a material breach which is capable of being remedied and which has not been remedied within a reasonable period as specified in writing (being not less than 20 business days). • We recommend your legal advisors confirm our understanding of the Nominations Agreement is correct.

7.3. Occupational Interests • We have been provided with tenancy information and forecast revenues for the current 2019/20 academic year by the Borrower on which we have relied. • The Property provides a total of 474 student bedspaces arranged within 80 studios and 394 en suite bedspaces. • A nomination agreement has been agreed with the University of Ulster for 225 en-suite rooms at an agreed rent of £1,071,000. The agreement ends 13th June 2020. The rent agreed equates to £119 per week for 40 weeks. • The remaining 249 bedrooms are operated on a direct-let basis. • Accommodation is let to students on Assured Shorthold Tenancies (ASTs). We have assumed that the Borrower or their Managing Agents are accredited to a Tenant Deposit Scheme (TDS). We recommend that your legal advisors confirm this position. • We are advised that the Property has achieved c.87.34% occupancy by room number for the 2019/20 academic year which is ahead of the 51.1% achieved for the 2018/19 year. • We believe that the low achieved occupancy is partly attributable to the delayed opening of the University of Ulster’s campus directly opposite the Property. • The advertised weekly rents for en-suite bed spaces is £119 from 40 weeks for the 2019/20 academic year and up to £159 for studio rooms from 44 weeks. We note however, that the average tenancy length achieved thus far equates to 40.74 weeks for 414 rooms. • As at the date of valuation, the aggregate achieved rent for the 2019/20 academic year totals £2,048,599, based on the lettings to date. In our appraisal, we have assumed that the total income achieved will be £2,468,202 including an element of summer occupancy. • Most of the students at the Property will be studying at the University of Ulster and most are expected to be domiciled in Northern Ireland. • Although the nomination agreement ends in June 2020, we believe there may be a good opportunity to extend this further.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Great Patrick Street, 28-30 Great Patrick Street, Belfast BT1 2LT

8. Student Market Considerations

8.1. Student Occupational Market

National Market Commentary Please refer to our National Student Market Commentary in Part A

Belfast Market Commentary • We provide a detailed overview and assessment of the Belfast Student market within the Appendices of this report. • This includes an analysis of university performance within the city, student demand characteristics, level of competition and accommodation supply for purpose-built student accommodation schemes and analysis of the pipeline of development of accommodation and its likely impact on the future lettings market. • The Cushman & Wakefield Student Accommodation Tracker records 5,851 purpose-built student accommodation bedspaces in Belfast for the 2019/20 academic year. These are predominantly provided by Queens University, accounting for 60% of all purpose-built accommodation in the City, 7% by Stranmillis University College (who also offer accommodation to other students) with and the private sector accounting for the remaining 33% accommodation. • Ulster University does not currently offer any accommodation to students in the city centre. • Belfast as a market behaves fundamentally differently to the UK mainland, and this has led to issues for some providers. The market is dominated by HMOs which are generally of a low quality, with many houses in a poor state of repair. • The City Council has been open to the development of purpose-built stock and this has led to an acceleration in private sector development. • A misreading of the market with the delivery of Ulster University’s city campus being delayed meaning students may not now move from Jordanstown until 2022, and large-scale development in a short period of time has led to some adjustment of rents for the 2019/20 academic year. Long-term cultural change is required in Belfast to increase overall demand and the attractiveness of purpose-built stock in the City to draw students away from the HMO market. • The demand pool of students within the city, taking into account the University and private sector supply of accommodation, and latest HESA student number data (2017/18) (excluding students who are unlikely to demand accommodation in the City) suggests a student:bed ratio for the city of 2.2:1, although we would caution that a period of cultural change needs to occur in the market before this ratio can be considered comparable with mainland UK markets. • By way of comparison C&W’s calculation of the nationally observed average student:bed ratio is 2.0:1. We note however that the SBR is based on the latest available 2017/18 HESA data and bedspace numbers as at the same date and may not reflect current demand levels. • Circa 63% of private bed spaces in the City are en-suite (direct let and nominated). Studio rooms make up 28% with standard rooms comprising 6% of the total private stock in the City. • Total university accommodation comprises 60% en suite rooms with standard rooms comprising 31% of accommodation. The remaining 9% of accommodation comprising of studios and apartments. • In terms of rents in the direct let sector, C&W has calculated an average 2019/20 rent for an en-suite bed spaces in Belfast to be c.£125 per week (including the Property). Studios are on

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Great Patrick Street, 28-30 Great Patrick Street, Belfast BT1 2LT

average £153 per week. Let lengths for en-suite rooms are generally offered on either 44 or 51 weeks whilst studios are predominantly let for 50 or 51 weeks with shorter term lets available. • Student Roost operates 3 schemes in the City (including the Property) which are priced similarly and as such the operator has a strong influence on pricing in Belfast and after a period of digestion and cultural change, lower rents this year has led to high occupancy levels and the market appears to be healthy again.

• En-suite beds at Great Patrick Street are offered at £119 per week, placing them to the lower end of the market. Studio rooms are offered at between £139 and £159 per week, targeting the lower to mid-segment of the studio accommodation market in the City. • Considering the quality and location of the Property, we consider there to be the opportunity for good rental growth from a low rental base over the coming years. • We refer you to the detailed Belfast student market analysis within the appendices of this report.

Competing Student Schemes

Elms BT1

Operator: Queen’s University Belfast No. Beds: 804

Specification Good quality

Room Type Let Length 2019/20 Rent P/Wk

Ensuite 38 £124

Ensuite 39 £124

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Great Patrick Street, 28-30 Great Patrick Street, Belfast BT1 2LT

Elms BT1

Ensuite 51 £124

Studio 38 £149

Studio 39 £149

Studio 51 £149 Comments: Substantial purpose-built accommodation within the boundary of Belfast’s commercial core. The scheme is university operated and finished to a good standard with a reasonable level of amenities including: common lounge (including coffee bar) and private study rooms. Located within a 15-minute walk of Queen’s University main campus.

Elms BT2

Operator: Queen’s University Belfast

No. Beds: 476

Specification Good quality

Room Type Let Length 2019/20 Rent P/Wk

Ensuite 38 £124

Ensuite 39 £124

Ensuite 51 £124

Studio 38 £149

Studio 39 £149

Studio 51 £149

Comments: • Substantial purpose-built accommodation within the boundary of Belfast’s commercial core. The scheme is university operated and finished to a good standard with a reasonable level of amenities including: common lounge (including coffee bar) and private study rooms. • Located within a 15-minute walk of Queen’s University main campus.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Great Patrick Street, 28-30 Great Patrick Street, Belfast BT1 2LT

Botanic Studios

Operator: Fresh Student Living No. Beds: 156

Specification Good quality

Room Type Let Length 2019/20 Rent P/Wk

Studio (standard – Deluxe) 50 £138 up to £180

Comments: • Relatively modern purpose built 100% student scheme with a range of configurations. Reasonable amenity space including a common room, games room and separate study room. Located in between Belfast City Centre and Queen’s University Campus. • Located within a 10-minute walk of Queen’s University campus. • Located within a 25-minute walk of Ulster University’s Belfast campus.

John Bell House

Operator: Student Roost No. Beds: 413

Specification Good quality (more unique conversion style)

Room Type Let Length 2019/20 Rent P/Wk

Ensuite 44 £125/up to £139

Ensuite 51 £125/up to £139

Studio 39 £159.00

Studio 44 £149.00

Studio 51 £149/up to £169

Comments: • Conversion of a prominent period style property offering a range of ensuite and studio accommodation. Reasonable amenity space including a ‘grand hall’ common room and ‘drawing room’ study area. Located to the west of Belfast’s commercial core. • Located within a 20-minute walk of Queen’s University campus. • Located within a 15-minute walk of Ulster University’s Belfast campus.

• Studio rents in Belfast range from £135/week to £180/week on 44-51 week tenancy lengths. En-suite rents range from £99/week to £139/week on a mixture of tenancy lengths. With the main university campuses being located to the north and south of the city centre, the majority of the PBSA schemes are located on the periphery of the commercial core. Elms BT1/2 is the single largest PBSA scheme.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Great Patrick Street, 28-30 Great Patrick Street, Belfast BT1 2LT

• Queens University’s own accommodation listed above are letting en-suite rooms for £124 per week from 39 to 51 week periods. Botanic Studios operated by Fresh is a modern PBSA and is located closer to Queens University. Comprising of just a studio scheme, the rents currently advertised range from £153 to £180 per week. We believe that competing good quality PBSA rooms are available for rents at a much higher level than the those advertised at the Property. • In our judgement, the rents at the Property have been set at between 5% to 15% discount to the market. We believe this strategy has been adopted to boost occupancy, gain valuable traction and establish the Property’s presence in the market. • We are aware that there are a number of schemes being developed and planned in Belfast. In particular there are potentially two PBSA developments located on adjacent sites. A scheme to be operated by Student Roost is expected to open over the next two months and Cathedral Living Group will be opening a 407 bed scheme on York Street which is also located close to the new Campus. • In our view, the new PBSA developments in the near vicinity will lead to a valuable critical mass of students which should encourage provision of ancillary services and facilities in the area. While the new schemes will offer variety and options for students, it will be important to monitor rental levels to ensure that the Property remains an attractive option. There may indeed be short term absorption issues for some schemes but with the right marketing and pricing strategy, the Property should continue to achieve high occupancy given that it will become one of the more established PBSA’s. • We refer you to the detailed Belfast student market analysis within the appendices of this report.

Student Investment Market • We provide a detailed comparable analysis of investment transactions and achieved yields in the market place within the front section this report. • We set out below recent comparable investment transactions to the Property:

Address Date Price Price Per Yield Comment/Comparison (£) Bed (£) (%) The Refinery, Under Offer £33,650,000 £82,678 5.68% Forward Fund Opportunity which Leeds (Asking) (Asking) we understand is to be under offer above asking price. Development of a prime student accommodation opportunity providing 407 bed spaces (368 cluster rooms, 29 studios and 10 accessible rooms).

Redvers, Under Offer £22,000,000 £96,916 6.10% Recent office to student Furnival Gate, (Asking) (Asking) conversion providing 227 studios Sheffield situated in a prime position in central Sheffield. Understood to be under offer at c.6.25% NIY.

St Mark's Under Offer £8,975,000 £77,370 6.00% Purpose-built scheme completed Apartments, in 2013 and refurbished in 2016. Lincoln Comprises 116 beds across a mix of large studios, premium studios, twodios and en suite cluster flats situated in a strong location close to the University of Lincoln and the station.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Great Patrick Street, 28-30 Great Patrick Street, Belfast BT1 2LT

Address Date Price Price Per Yield Comment/Comparison (£) Bed (£) (%) Castlegate Haus, October £10,200,000 £76,692 5.75% Castlegate Haus is a FH property Nottingham 2018 located in the city centre 300 metres from The market Square and 750 metres to the Newton Building within the centre of the Nottingham Trent University city campus. The property comprises 133 beds of which 69 are studios. It was acquired by Centurion.

Ernest Place, September £34,000,000 £93,925 6.05% Recently completed PBSA Durham 2018 development to the fringe of Durham city centre. Scheme provides high quality accommodation of 362 student bedspaces over a mix of 5 and 6- bed apartments and studios.

Furnival Gate, August £32,000,000 £70,330 6.00% Forward Fund Opportunity for a Sheffield 2018 development of 455 student beds with a mix of clusters and studios, all within a 22 storey purpose built student accommodation scheme.

800 Bristol Road, August £14,620,000 £141,950 5.50% Acquired by Malaysian pension Selly Oak, 2018 fund Kumpulan Wang Persaraan Birmingham Diperbadankan (KWAP) and 90 North Real Estate Partners. Scheme provides 103 studios completed for 2017 academic year located within walking distance to the University of Birmingham.

City Residence, April £7,550,000 £60,890 6.11% Acquired by St Brides Haxby Road, 2018 Partnership. The Property is fully York let to York St John University until September 2026 producing a current rental income of £491,969 per annum. The Property comprises 124 en-suite bedrooms.

Tyne Student Living, June £19,500,000 £50,518 6.25% The property comprises 386 bed Newcastle-Upon- 2018 spaces in a mixture on en-suite Tyne clusters, studios and one bedroom apartments.

Albert Place, April £10,400,000 £77,615 6.75% Albert Place has been sold by Newcastle 2018 Crosslane Student Developments to real estate specialists Kout Advisory, on behalf of a Middle Eastern investment group. Albert Place provides 134 student bed spaces over a mix of cluster and studio rooms.

Hydrogen Building, March £18,000,000 £109,756 5.60% Hydrogen is a converted 1980s Nottingham 2018 office building providing 164 studios of a good specification. It is well located in the town centre within close proximity to

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Great Patrick Street, 28-30 Great Patrick Street, Belfast BT1 2LT

Address Date Price Price Per Yield Comment/Comparison (£) Bed (£) (%) Nottingham Trent University. It was acquired by Brookfield Asset Management in is operated under their Student Roost brand.

Wellgate House, March £6,200,000 £96,875 6.20% Wellgate House is a former 8 200 Cowgate, 2018 storey office building that has Edinburgh been converted to student accommodation. The scheme is well located in the city centre and offers good quality accommodation in a mixture of en-suite clusters, studios and one bedroom apartments.

Fairchild House, February £4,100,000 £91,111 6.10% This property was part of a 3 Southampton 2018 property portfolio. It comprises a former office building converted to provide 45 studio bedrooms. The rooms are finished to a good standard and are of a good size. It was acquired by Property Partner.

Bromsgrove House, January £15,000,000 £107,143 6.42% Birmingham Properties Group Bromsgrove St, 2018 sale to Singaporean investor Birmingham Perfection Point. New build completed in September 2017 with 140 beds and ground floor unit. Long Leasehold interest.

Brassfounders, November £35,500,000 £81,235 5.70% UNITE Students has purchased Sheffield 2017 Brass Founders from Crosslane Student Developments for a reported £35.5m. The scheme comprises of 3 residential blocks forming a U-shape around a landscaped courtyard providing a total of 437 bedspaces across a mix of en-suite cluster bedspaces and studios. The scheme opened for the 2017/18 academic year and has achieved full occupancy. Queens Court, October £49,200,000 £124,557 6.20% Converted offices by WP Carey, Reading 2017 the property comprises 395 bedrooms with a significant weighting to cluster en-suite bedrooms. Hines Global REIT II acquired the investment. Exeter One, Exeter October £18,575,000 £84,817 5.85% The scheme is located adjacent 2017 to the University of Exeter’s main campus and provides a total of 219 bedspaces within a mix of en- suite clusters and studios. The Property benefits from a 1-year lease with the University of Exeter for the 2017/18 academic year in relation to 56 en-suite bedspaces (25% of accommodation).

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Great Patrick Street, 28-30 Great Patrick Street, Belfast BT1 2LT

Investment Considerations • We consider Belfast to be a good regional university city and therefore the benchmark for our valuation is in the order of a 6.00% NIY for prime PBSA in the city. • The Property comprises a newly constructed purpose-built student residential scheme providing a mix of en-suite and studio bedspaces finished to a good quality specification with high quality communal areas. • The Property is operated on a part nominated and part direct-let basis, with approximately 50% of accommodation (225 en suite bedspaces) nominated by Ulster University. • There have not been any recent investment transactions in Belfast. • The investment comparables show a range of yields between c.6.00% and 6.50%, reflective of each comparable scheme’s individual size, location and specification within its respective market. • Having regard to the Property’s location and the development of Ulster University’s city campus adjacent, development pipeline and current investor demand for student investments in Belfast, we would expect the Property to achieve a yield towards the lower range of the comparables once fully stabilised and achieving appropriate market rents within the city given its new-build nature and good quality specification. • We would refer you to the above relevant section of this report in relation to the student investment market.

Consideration Period • We consider that the Property would have been marketed for a period of 6 to 12 months prior to the Valuation Date in order to achieve our opinion of Market Value.

Marketing Period / Saleability • We consider it would take approximately 6 to 12 months to achieve a sale of the Property in the open market starting at the Valuation Date. • The purchaser type is likely to be a mix of regional and national student operators as well as funds. • We consider market conditions are likely to remain stable over the Marketing Period.

9. Valuation Approach and Opinions of Value

Background • It is our opinion that a trading property of this nature, requiring specialist operational expertise, is most likely to be sold to a purchaser who would employ the services of a reputable student accommodation operator, retained under a formal management agreement or to a purchaser who already has their operational platform. • Where possible our opinions of value are based on analysis of recent relevant market transactions supported by market knowledge derived from our agency experience. Due to the nature of the Property being within the ‘alternative’ sector, there is limited evidence particularly for solo investment transactions. As such a greater than usual degree of professional judgement was applied in arriving at our opinion of value. • In arriving at our opinion of Market Value we have considered the likely rent, cost and yield profile in the current market of the Property.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Great Patrick Street, 28-30 Great Patrick Street, Belfast BT1 2LT

• Our valuation calculations are included at the rear of this report in Appendix B.

10. Market Value

10.1. Market Value Our opinion of the Market Value of the Property has been primarily derived by adopting the following assumptions for the academic year commencing 2019:

Valuation Metrics:

Blended occupancy assumption Year 1 after 1% accounted for bad 97.76% debts and discounts Blended occupancy assumption Year 2 after 1% accounted for bad 97.00% debts and discounts Blended occupancy assumption Year 3 after 1% accounted for bad 97.00% debts and discounts Given the nomination agreement in place, we believe that occupancy levels should be high for the 2019/20 year but with this potentially falling away, we have edged the occupancy down to a stabilised 97%. The imminent opening of the new Ulster University’s campus directly opposite the Property will be a positive outcome and the scheme should benefit from the influx of students. Assumed Year for Stabilised Occupancy 1

Rental growth assumption Year 1 5.50% Rental growth assumption Year 2 6.50% Rental growth assumption Year 3 7.50% The rental growth rate that we have adopted is expected to increase the rents to a market level over the next four to five years.

Summer income Year 1 £91,806 Ancillary income Year 1 £17,906 Total operating cost per room (per annum including management fees £1,986 and any rent) n.b. we have assumed a management fee of 4.5% of effective gross revenue Total operating cost leakage from effective gross revenue 37.86% We have adopted operating costs which equate to just under £2,000 pa per room which reflects a very high leakage of over 37%. This is due to the relatively low rental base as explained previously. The Borrower provided operating costs at over £2,300 per room which we believe is high and a hypothetical operator is likely to look to reduce this substantially in line with other markets. We have been informed that there remains, however, a council tax obligation which the Borrower is contesting.

Capital expenditure deducted at entry/Day 1 £0 Total capital expenditure deducted in the cashflow (before discounting) £0 Total transaction costs on Entry 2.80% Discount rate 7.00% Exit capitalisation rate and GICR 5.90%

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Great Patrick Street, 28-30 Great Patrick Street, Belfast BT1 2LT

Adopting the assumptions stated above, our valuations reflect the following resultant rents, NOI and yields:

Net operating income - Year 1 £1,544,790 Net initial yield - Year 1 4.385% We consider prime stabilised yields in Belfast to be 5.75% to 6.0%. Our adopted GICR reflects the quality of the location and building but also the fact that the property had a low occupancy in the 2018/19 year. The low NIY reflects the low rental base which we have assumed will increase to achieve a reversionary yield of 6.0% in the fifth year.

We also consider that the capital value per room between £70,000 to £80,000 per room is within the range we would expect for a PBSA property of this type and location. Market Value £34,270,000 Market Value per room £72,300

Conclusions • In conclusion, we would expect the property to attract pricing in the order of a 6.0% net yield when rents climb towards a market level which we expect will be in the fifth year of the cashflow. • When PBSA properties are traded, often the operating platform changes to another management company that the purchaser may prefer. Sometimes this transition causes disruption in the letting process which may impact the NOI and therefore the Market Value. It is therefore prudent to manage such transitions very carefully to mitigate the impact on occupancy, costs and value. Market Value assuming Residential SDLT with MDR Our opinion of the Market Value of the interest in the Property, having regard to trading potential, assuming a fully equipped operational entity as outlined in the Property Record is:

(Thirty Four Million, Two Hundred and Seventy Thousand £34,270,000 Pounds)

11. Market Value Based on Special Assumptions

11.1. Vacant Possession Value

Approach • This basis requires us to make a Special Assumption that the Property is available with full vacant possession. There are no other Special Assumptions to be made (such as an outstanding dilapidations claim, or that the buildings are in a different state of condition). • As the start of the academic year is September/October 2019 is just one to two months away, we would anticipate that a purchaser on vacant possession would adopt the following assumptions:

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Great Patrick Street, 28-30 Great Patrick Street, Belfast BT1 2LT

Market Value on the Special Assumption of Vacant Possession:

Blended occupancy assumption Year 1 40.00% Blended occupancy assumption Year 2 60.00% Blended occupancy assumption Year 3 90.00% Assumed Year for Stabilised Occupancy 4

Summer income Year 1 £214,213 Ancillary income Year 1 £7,252 Total operating cost per room (per annum including management fees £1,445 and any rent) n.b. we have assumed a management fee of 4.5% of effective gross revenue Total operating cost leakage from effective gross revenue 57.85% Capital expenditure deducted at entry/Day 1 £0 Total transaction costs on Entry 2.80% Discount rate 7.00% Exit capitalisation rate 5.90% Net operating income - Year 1 £552,305 Net initial yield - Year 1 1.75% Market Value £27,690,000 Market Value per room £58,418 Summer income can be expected to be relatively high but then reducing to a more stabilised position of 15% by year 3. We assumed rental growth to be at a lower level than that adopted for our opinion of Market Value. The lower overall occupancy should lead to lower operating costs which we have assumed rises as letting velocity increases.

• We have assumed all other assumptions remain unchanged to those adopted for our opinion of Market Value above. • It should be noted that there are no comparable transactions in the market for properties traded with vacant possession. We have therefore taken a view when adopting the assumptions made above to arrive at a value that in our opinion reflects a reasonable discount to the Market Value.

Special Assumption – Vacant Possession assuming Residential SDLT with MDR Subject to the contents of this report and based on values current as at the valuation date, we are of the opinion that the Market Value as a fully equipped operational entity, having regard to future trading potential, of the interest in the Property detailed in the Property Record, with the Special Assumption as defined above is:

(Twenty Seven Million, Six Hundred and Ninety Thousand £27,690,000 Pounds)

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Great Patrick Street, 28-30 Great Patrick Street, Belfast BT1 2LT

12. Suitability for Loan Security

Suitability for Loan Security In our opinion, subject to the comments and assumptions contained below and elsewhere in this Valuation Report, the Freehold interests in the Property provides reasonable security for the purposes of a loan over a period of 5 years (subject to the adequacy of capital and income cover). This is without opinion as to the commercial decision to lend, which remains with the Bank.

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Cushman & Wakefield | Bank of America Merrill Lynch Appendix A: Maps and Plans Valuation Date: 12 July 2019 Great Patrick Street, 28-30 Great Patrick Street, Belfast BT1 2LT

APPENDIX A: MAPS AND PLANS

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Belfast

28-30 Great Patrick Street

35 min walk

Ulster University (3 min walk)

21 min walk

Queen’s University Belfast

28-30 Great Patrick Street

Ulster University

Cushman & Wakefield | Bank of America Merrill Lynch Appendix B: Valuation Calculations Valuation Date: 12 July 2019 Great Patrick Street, 28-30 Great Patrick Street, Belfast BT1 2LT

APPENDIX B: VALUATION CALCULATIONS

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BAML PROPERTY VALUATION AS AT 12 JULY 2019 Great Patrick St, Belfast Executive Summary - Inputs, Assumptions and Value Results

A. GENERAL INPUTS D. VALUATION RESULTS 1 Property Great Patrick St, Belfast 1 Market Value : Commercial Element 0 2 Client BAML 2 Market Value : Student Accommodation 34,270,000 3 Property reference number GPS 3 Market Value : Total 34,270,000 4 Tenure Freehold 5 Property owner 6 Operator Student Roost Student Accommodation Only: 7 Property type Direct Let & NOM's 4 Total number of units 474 8 Valuation date 12 Jul 2019 5 Value per unit 72,300 9 Opening date 01 Sep 2019 6 Value per Sq Ft (on the Gross Internal Area) #DIV/0! 10 Years since opening -0.14 11 Site area (hectares) 0.000 12 Site area (acres) 0.000 Running Yields (gross of capital reserves and costs in the cashflow, but unadjusted for capex): Adj for capex: 13 measurement units Sq Ft 7 Net yield (reflecting income for the next 12 months) - Year 1 1,544,790 4.385% 4.384% 14 Currency GBP 8 Net yield (reflecting income for the next 12 months) - Year 2 1,639,712 4.654% 4.654% 15 Valuation Rounding 10,000 9 Net yield (reflecting income for the next 12 months) - Year 3 1,783,669 5.063% 5.062% 16 DFC Period (in years) 10 10 Net yield (reflecting income for the next 12 months) - Year 4 1,964,015 5.575% 5.574% 11 Net yield (reflecting income for the next 12 months) - Year 5 2,102,295 5.967% 5.967% B. OTHER PRINCIPAL INPUTS 12 True net initial yield (reflecting income for the next 12 months after 1,544,790 4.385% all capital expenditure in the cashflow) – Year 1 1 Occupancy - term: Year 1 98.76% 13 Net yield - reflecting "in place" income 1,544,790 4.385% 4.384% 2 Occupancy - term: Year 2 98.00% 14 Net yield - reflecting estimated income for the next academic year 1,634,864 4.641% 4.640% 3 Occupancy - term: Year 3 98.00% 4 Occupancy - out of term: Year 1 15.00% No Growth Reversionary Yield & Estimated Net Equivalent Yield : 5 Occupancy - out of term: Year 2 15.00% 15 Net reversionary yield (gross of capital reserves and costs in the 1,544,790 4.385% 4.385% cashflow, but unadjusted for capex) on a no growth basis 6 Occupancy - out of term: Year 3 15.00% 16 Estimated Net Equivalent Yield (cashflow gross of capital reserves Not Calculated and costs, but unadjusted for capex. Annually in arrears basis) 7 Student related income - GICR for valuation 5.900% 8 Student related income - Adj for exit yield 0.000% i) Weighted average revenue data for year 1: 9 Student related income - Exit Yield 5.900% 17 Revenue - term time unit income only (incl noms, excl other adjmts) 2,376,397 p.a. 10 Student related income - Discount Rate for DCF 7.000% 18 Revenue - all income (incl noms and other adjmts) 2,486,108 p.a. 11 Student related income - Rental growth rate - Year 1 5.500% 19 Operating costs & Leakage % (excluding management fees and rent) 829,443 p.a. 33.36% 12 Ancillary income - Growth rate - Year 1 2.500% 20 Operating costs & Leakage % (including management fees and rent) 941,318 p.a. 37.86% 13 Commercial income - Rental growth rate - Year 1 2.500% 21 Net cashflow before capital reserves and capital costs 1,544,790 p.a. 14 Operating costs - Cost inflation rate - Year 1 2.000% 22 Net cashflow after capital reserves and capital costs 1,544,790 p.a. 15 Head rent - rent inflation rate - Year 1 2.500% 16 Student purchaser's costs (on entry) 2.800% Ii) Weighted average revenue data for year 1 - per unit: 17 Student purchaser's costs (on exit) 2.888% 23 Revenue - term time unit income only 5,013 p.a. per unit 18 Commercial purchaser's costs 0.000% 24 Revenue - all income 5,245 p.a. per unit 19 Disposal costs for the exit calculation 1.250% 25 Operating costs (excluding management fees and rent) 1,750 p.a. per unit 20 Management fee : a % of gross income 4.500% 26 Operating costs (including management fees and rent) 1,986 p.a. per unit 21 Capital reserves : a % of gross income 0.000% 27 Net cashflow before capital reserves and capital costs 3,259 p.a. per unit 28 Net cashflow after capital reserves and capital costs 3,259 p.a. per unit C. VALUATION ASSUMPTIONS All figures in GBP iii) Weighted average revenue data for year 1 - per unit per term week: The cashflow is on a calendar year basis 29 Weighted average number of term weeks 41.1 weeks Income growth above applied after year 1 30 Revenue - term time unit income only 122.10 per unit per term week Expense inflation applied after year 1 31 Revenue - all income 127.74 per unit per term week Exit price based on the forward looking 12 month income at the exit point. 32 Operating costs (excluding management fees and rent) 42.62 per unit per term week Cashflow is discounted as per the DCF analysis 33 Operating costs (including management fees and rent) 48.37 per unit per term week Commercial income (if receivable) is separately valued 34 Net cashflow before capital reserves and capital costs 79.37 per unit per term week Ancillary income (related to student occupation) has been added to our cashflow projections 35 Net cashflow after capital reserves and capital costs 79.37 per unit per term week It is assumed that the management agreement is in place and the costs associated are historic Capital costs in the cashflow are not inflated from day 1 and are assumed to arise in the first month of the year Commercial Element Only: 0 36 Revenue - Year 1 0 p.a. 0 37 Revenue - Year 1 per Sq Ft n/a 0 38 Net initial yield n/a 0 0 0

Lease expiry date (for leased assets) n/a

T:\PSQ\Shared\Valuation\Clients\Bank of America\Project Rose II & III\6. Val Calcs\[PBSA FH Model_GPS.xlsx]Exec Summary © Cushman & Wakefield LLP 2019 BAML PROPERTY VALUATION AS AT 12 JULY 2019 Great Patrick St, Belfast Income Analysis

SCHEME INCOME For cashflow purposes (for the next 12 months): (in GBP) % of current income adopted for year 1 of the cashflow projection: 100.00% % of income from next academic year adopted for year 1 of the cashflow projection: 0.00% n.b. applies to term time and summer income only, not commercial or ancillary income 100.00% Income data for next acdmc yr (assumes year 1 occ rate): Student Accommodation - Term Time Income n.b. discounts and doubtful debts reflected Unit type Number of Average Size Weekly rate Lettable weeks Annual income Occupancy rate Adjustment to Adjustment to Annual income Income £ per Weekly rate Annual income Occupancy rate Annual income Increase (%) units per Unit (Gross (current) (potential) (YR1) term time term time (actual) Sq Ft pa (next academic (potential) (next (YR1) (actual) (next Internal Area) income for income for year) academic year) academic year) discounts doubtful debts NOMS Ensuite 225 - 119.00 40.00 1,071,000.00 98.8% 0.5% 0.5% 1,047,142.40 n/a 125.55 1,129,905.00 98.8% 1,104,735.24 5.50% Ensuite 169 - 119.00 41.21 828,679.75 98.8% 0.5% 0.5% 810,220.08 n/a 125.55 874,257.13 98.8% 854,782.18 5.50% Studio Bronze 33 - 141.00 43.42 202,047.58 98.8% 0.5% 0.5% 197,546.77 n/a 148.76 213,160.19 98.8% 208,411.84 5.50% Studio Silver 47 - 159.00 44.00 328,812.00 98.8% 0.5% 0.5% 321,487.38 n/a 167.75 346,896.66 98.8% 339,169.19 5.50% 0 - - - - - 98.8% 0.5% 0.5% - n/a - - 98.8% - 0 - - - - - 98.8% 0.5% 0.5% - n/a - - 98.8% - 0 - - - - - 98.8% 0.5% 0.5% - n/a - - 98.8% - 0 - - - - - 98.8% 0.5% 0.5% - n/a - - 98.8% - 0 - - - - - 98.8% 0.5% 0.5% - n/a - - 98.8% - 0 - - - - - 98.8% 0.5% 0.5% - n/a - - 98.8% - 0 - - - - - 98.8% 0.5% 0.5% - n/a - - 98.8% - 0 - - - - - 98.8% 0.5% 0.5% - n/a - - 98.8% - 0 - - - - - 98.8% 0.5% 0.5% - n/a - - 98.8% - 0 - - - - - 98.8% 0.5% 0.5% - n/a - - 98.8% - 0 - - - - - 98.8% 0.5% 0.5% - n/a - - 98.8% - 0 - - - - - 98.8% 0.5% 0.5% - n/a - - 98.8% - 0 - - - - - 98.8% 0.5% 0.5% - n/a - - 98.8% - 0 - - - - - 98.8% 0.5% 0.5% - n/a - - 98.8% - 0 - - - - - 98.8% 0.5% 0.5% - n/a - - 98.8% - 0 - - - - - 98.8% 0.5% 0.5% - n/a - - 98.8% - 0 - - - - - 98.8% 0.5% 0.5% - n/a - - 98.8% - 0 - - - - - 98.8% 0.5% 0.5% - n/a - - 98.8% - 0 - - - - - 98.8% 0.5% 0.5% - n/a - - 98.8% - 0 - - - - - 98.8% 0.5% 0.5% - n/a - - 98.8% - 0 - - - - - 98.8% 0.5% 0.5% - n/a - - 98.8% - Total / Wghtd Av 474 - 124.50 41.06 2,430,539.33 2,376,396.63 n/a 2,564,218.99 2,507,098.45 5.50%

Student Accommodation - Summer Income Unit type Number of Average Size Weekly rate Lettable weeks Annual income Occupancy rate Annual income Income £ per Weekly rate Annual income Occupancy rate Annual income Increase (%) units per Unit (Gross (current) (potential) (YR1) (actual) Sq Ft pa (next academic (potential) (next (YR1) (actual) (next Internal Area) year) academic year) academic year)

NOMS Ensuite 225 - 126.00 11.00 311,850.00 15.0% 46,777.50 n/a 132.55 328,048.88 15.0% 49,207.33 5.19% Ensuite 169 - 126.00 9.79 208,568.38 15.0% 31,285.26 n/a 132.55 219,402.35 15.0% 32,910.35 5.19% Studio Bronze 33 - 148.00 7.58 37,005.69 15.0% 5,550.85 n/a 155.76 38,944.74 15.0% 5,841.71 5.24% Studio Silver 47 - 166.00 7.00 54,614.00 15.0% 8,192.10 n/a 174.75 57,491.11 15.0% 8,623.67 5.27% 0 - - - - - 15.0% - n/a 7.00 - 15.0% - 0 - - - - - 15.0% - n/a 7.00 - 15.0% - 0 - - - - - 15.0% - n/a - - 15.0% - 0 - - - - - 15.0% - n/a - - 15.0% - 0 - - - - - 15.0% - n/a - - 15.0% - 0 - - - - - 15.0% - n/a - - 15.0% - Total / Wghtd Av 474 131.50 9.94 612,038.08 91,805.71 n/a 643,887.07 96,583.06 5.20%

Commercial Income Term time & summer time income summary: 100.00000% 0.00000% Unit type Number of Average Size Annual rental Annual rental Total potential Source Current income Next academic Pro rata Adopted for units per Unit (Net rate (per Sq Ft) per unit annual income year spreads next 12 m Internal Area) n/a - - - - - Potential: n/a - - - - - Term Time 2,430,539 2,564,219 1 / 0 2,430,539 n/a - - - - - Summer Income 612,038 643,887 1 / 0 612,038 n/a - - - - - Total 3,042,577 3,208,106 3,042,577 n/a - - - - - 5.44% 0.00% Totals - - Actual (based on the year 1 occupancy assumption): Term Time 2,376,397 2,507,098 1 / 0 2,376,397 Ancillary income (potential before any occupancy adjustment) Summer Income 91,806 96,583 1 / 0 91,806 Source Amount pa Comment Total 2,468,202 2,603,682 2,468,202 General other income 18,131 Ancillary Income: based on £0.75 per week per room 5.49% 0.00% n/a - n/a - n/a - Totals 18,131

© Cushman & Wakefield LLP 2019 BAML PROPERTY VALUATION AS AT 12 JULY 2019 Great Patrick St, Belfast Analysis of Operating Costs

Based on the operating cosst adopted for year 1 of the cashflow projection Total units 474 Term weeks 41.1

Operating Cost Annual amount (in Cost per unit pa (474 Cost per unit per term % of total operating GBP) units) week (41.06 weeks) costs

Site Staff Costs 216,488.06 456.73 11.12 26.10% Office Costs 8,673.88 18.30 0.45 1.05% Security 58,401.00 123.21 3.00 7.04% Regular Cleaning 23,085.70 48.70 1.19 2.78% Annual Cleaning 36,289.38 76.56 1.86 4.38% Refuse and Waste 5,031.36 10.61 0.26 0.61% Maintenance and Repairs 43,911.37 92.64 2.26 5.29% Utilities 237,763.96 501.61 12.22 28.67% Council Tax 242,978.73 512.61 12.48 29.29% Internet and Student Services 33,240.00 70.13 1.71 4.01% Marketing 63,072.44 133.06 3.24 7.60% Other 20,006.82 42.21 1.03 2.41% Operating Expense Adjustments (159,500.00) (336.50) (8.20) -19.23% Total Operating Expenses: 829,442.69 1,749.88 42.62 100.00% Leakage % (excluding management fees and rent) 33.36%

Head Rent - - -

Management fee (a % of effective revenue) 111,874.86 236.02 5.75 Management fee as a % of effective revenue 4.50% Management fee as a % of operating expenses 13.49% Management fee per unit (pa) 236.02

Total of all expenses: 941,317.55 1,985.90 48.37 Leakage % (including management fees and rent) 37.86%

Apportionment of all expenses: Operating expenses 88.12% Head Rent 0.00% Management fee 11.88% Total 100.00%

© Cushman & Wakefield LLP 2019 BAML PROPERTY VALUATION AS AT 12 JULY 2019 Estimated Great Patrick St, Belfast CAGR "in place" income Cashflow from Student Accommodation 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 from Stabilised income For next Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Day 1 CAGR at Day 1 academic Sep-20 Sep-21 Sep-22 Sep-23 Sep-24 Sep-25 Sep-26 Sep-27 Sep-28 Sep-29 Sep-30 Sep-31 Sep-32 Sep-33 Sep-34 Sep-35 Sep-36 Sep-37 Sep-38 Sep-39 Sep-40 Sep-41 Yr1 to Yr10 Yr5 to Yr10 year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 16 16 16 16 16 16

ASSUMPTIONS Rental growth - unit income 5.50% 5.50% 6.50% 7.50% 5.50% 3.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% #VALUE! #VALUE! Rental growth - ancillary income 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% #VALUE! #VALUE! Expense inflation rate 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% #VALUE! #VALUE! Head rent inflation rate 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% #VALUE! #VALUE! Occupancy - term time income 98.76% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.76% Adjustment to term time income for discounts (%) 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% Adjustment to term time income for doubtful debts (%) 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% Occupancy - summer income 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% 15.00% Management fee : a % of gross income 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% Capital reserves : a % of gross income 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Direct let - % of revenue 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% Nominations revenue - % of revenue 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Total student units 474

REVENUES Term time income - potential 2,430,539 2,564,219 2,730,893 2,935,710 3,097,174 3,205,575 3,285,715 3,367,858 3,452,054 3,538,355 3,626,814 3,717,485 3,810,422 3,905,682 4,003,324 4,103,407 4,205,993 4,311,142 4,418,921 4,529,394 4,642,629 4,758,695 4.26% 2.70% 2,430,539 2,564,219 Summer income - potential 612,038 645,700 687,671 739,246 779,905 807,201 827,381 848,066 869,267 890,999 913,274 936,106 959,509 983,496 1,008,084 1,033,286 1,059,118 1,085,596 1,112,736 1,140,554 1,169,068 1,198,295 4.26% 2.70% 612,038 645,700 Ancillary income - potential 18,131 18,584 19,048 19,525 20,013 20,513 21,026 21,551 22,090 22,643 23,209 23,789 24,384 24,993 25,618 26,258 26,915 27,588 28,277 28,984 29,709 30,452 2.50% 2.50% 18,131 18,803

Vacancy allowance - term time income -30,139 -51,284 -54,618 -58,714 -61,943 -64,112 -65,714 -67,357 -69,041 -70,767 -72,536 -74,350 -76,208 -78,114 -80,066 -82,068 -84,120 -86,223 -88,378 -90,588 -92,853 -95,174 -30,139 -44,464 Adj to term time income for discounts (post vacancy adj) -12,002 -12,565 -13,381 -14,385 -15,176 -15,707 -16,100 -16,503 -16,915 -17,338 -17,771 -18,216 -18,671 -19,138 -19,616 -20,107 -20,609 -21,125 -21,653 -22,194 -22,749 -23,318 -12,002 -12,599 Adj to term time income for doubtful debts (post vacancy adj) -12,002 -12,565 -13,381 -14,385 -15,176 -15,707 -16,100 -16,503 -16,915 -17,338 -17,771 -18,216 -18,671 -19,138 -19,616 -20,107 -20,609 -21,125 -21,653 -22,194 -22,749 -23,318 -12,002 -12,599 Vacancy allowance - summer income -520,232 -548,845 -584,520 -628,359 -662,919 -686,121 -703,274 -720,856 -738,877 -757,349 -776,283 -795,690 -815,582 -835,972 -856,871 -878,293 -900,250 -922,756 -945,825 -969,471 -993,708 -1,018,550 -520,232 -548,845 Vacancy allowance - ancillary income -225 -372 -381 -390 -400 -410 -421 -431 -442 -453 -464 -476 -488 -500 -512 -525 -538 -552 -566 -580 -594 -609 -225 -364

Direct let - % of revenue 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Term time income - actual 2,376,397 2,487,805 2,649,513 2,848,226 3,004,878 3,110,049 3,187,800 3,267,495 3,349,183 3,432,912 3,518,735 3,606,704 3,696,871 3,789,293 3,884,025 3,981,126 4,080,654 4,182,670 4,287,237 4,394,418 4,504,279 4,616,886 4.17% 2.70% 2,376,397 2,494,558 Summer income - actual 91,806 96,855 103,151 110,887 116,986 121,080 124,107 127,210 130,390 133,650 136,991 140,416 143,926 147,524 151,213 154,993 158,868 162,839 166,910 171,083 175,360 179,744 4.26% 2.70% 91,806 96,855 Ancillary income - actual 17,906 18,212 18,667 19,134 19,612 20,103 20,605 21,120 21,648 22,190 22,744 23,313 23,896 24,493 25,106 25,733 26,377 27,036 27,712 28,405 29,115 29,843 2.41% 2.50% 17,906 18,439

Revenue adjustment (DL % of revenue not applied) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Nominations revenue - potential 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Nominations revenue - % of revenue 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Nominations revenue - actual 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Effective revenue (excluding additional income) 2,486,108 2,602,872 2,771,331 2,978,247 3,141,477 3,251,232 3,332,513 3,415,826 3,501,221 3,588,752 3,678,471 3,770,433 3,864,693 3,961,311 4,060,343 4,161,852 4,265,898 4,372,546 4,481,859 4,593,906 4,708,754 4,826,472 4.16% 2.70% 2,486,108 2,609,852 Effective revenue per unit (pa) 5,245 5,491 5,847 6,283 6,628 6,859 7,031 7,206 7,387 7,571 7,760 7,954 8,153 8,357 8,566 8,780 9,000 9,225 9,455 9,692 9,934 10,182 5,245 5,506 Effective revenue per unit (per week) 100.86 105.60 112.44 120.83 127.45 131.91 135.20 138.58 142.05 145.60 149.24 152.97 156.80 160.72 164.73 168.85 173.07 177.40 181.83 186.38 191.04 195.82 100.86 105.88

OPERATING EXPENSES Site Staff Costs -216,488 -220,818 -225,234 -229,739 -234,334 -239,020 -243,801 -248,677 -253,650 -258,723 -263,898 -269,176 -274,559 -280,050 -285,651 -291,364 -297,192 -303,136 -309,198 -315,382 -321,690 -328,124 2.00% 2.00% -216,488 -222,894 Office Costs -8,674 -8,847 -9,024 -9,205 -9,389 -9,577 -9,768 -9,964 -10,163 -10,366 -10,573 -10,785 -11,001 -11,221 -11,445 -11,674 -11,907 -12,146 -12,388 -12,636 -12,889 -13,147 2.00% 2.00% -8,674 -8,931 Security -58,401 -59,569 -60,760 -61,976 -63,215 -64,479 -65,769 -67,084 -68,426 -69,795 -71,190 -72,614 -74,067 -75,548 -77,059 -78,600 -80,172 -81,775 -83,411 -85,079 -86,781 -88,516 2.00% 2.00% -58,401 -60,129 Regular Cleaning -23,086 -23,547 -24,018 -24,499 -24,989 -25,488 -25,998 -26,518 -27,049 -27,590 -28,141 -28,704 -29,278 -29,864 -30,461 -31,070 -31,692 -32,326 -32,972 -33,632 -34,304 -34,990 2.00% 2.00% -23,086 -23,769 Annual Cleaning -36,289 -37,015 -37,755 -38,511 -39,281 -40,066 -40,868 -41,685 -42,519 -43,369 -44,237 -45,121 -46,024 -46,944 -47,883 -48,841 -49,818 -50,814 -51,830 -52,867 -53,924 -55,003 2.00% 2.00% -36,289 -37,363 Refuse and Waste -5,031 -5,132 -5,235 -5,339 -5,446 -5,555 -5,666 -5,779 -5,895 -6,013 -6,133 -6,256 -6,381 -6,509 -6,639 -6,772 -6,907 -7,045 -7,186 -7,330 -7,476 -7,626 2.00% 2.00% -5,031 -5,180 Maintenance and Repairs -43,911 -44,790 -45,685 -46,599 -47,531 -48,482 -49,451 -50,440 -51,449 -52,478 -53,528 -54,598 -55,690 -56,804 -57,940 -59,099 -60,281 -61,487 -62,716 -63,971 -65,250 -66,555 2.00% 2.00% -43,911 -45,211 Utilities -237,764 -242,519 -247,370 -252,317 -257,363 -262,511 -267,761 -273,116 -278,578 -284,150 -289,833 -295,630 -301,542 -307,573 -313,724 -319,999 -326,399 -332,927 -339,585 -346,377 -353,305 -360,371 2.00% 2.00% -237,764 -244,799 Council Tax -242,979 -247,838 -252,795 -257,851 -263,008 -268,268 -273,634 -279,106 -284,688 -290,382 -296,190 -302,114 -308,156 -314,319 -320,605 -327,017 -333,558 -340,229 -347,033 -353,974 -361,054 -368,275 2.00% 2.00% -242,979 -250,168 Internet and Student Services -33,240 -33,905 -34,583 -35,275 -35,980 -36,700 -37,434 -38,182 -38,946 -39,725 -40,519 -41,330 -42,156 -42,999 -43,859 -44,737 -45,631 -46,544 -47,475 -48,424 -49,393 -50,381 2.00% 2.00% -33,240 -34,224 Marketing -63,072 -64,334 -65,621 -66,933 -68,272 -69,637 -71,030 -72,450 -73,899 -75,377 -76,885 -78,423 -79,991 -81,591 -83,223 -84,887 -86,585 -88,317 -90,083 -91,885 -93,722 -95,597 2.00% 2.00% -63,072 -64,939 Other -20,007 -20,407 -20,815 -21,231 -21,656 -22,089 -22,531 -22,982 -23,441 -23,910 -24,388 -24,876 -25,373 -25,881 -26,399 -26,927 -27,465 -28,014 -28,575 -29,146 -29,729 -30,324 2.00% 2.00% -20,007 -20,599 Operating Expense Adjustments 159,500 162,690 165,944 169,263 172,648 176,101 179,623 183,215 186,880 190,617 194,430 198,318 202,285 206,330 210,457 214,666 218,959 223,339 227,805 232,361 237,009 241,749 2.00% 2.00% 159,500 162,424 Total Operating Expenses: -829,443 -846,032 -862,952 -880,211 -897,815 -915,772 -934,087 -952,769 -971,824 -991,261 -1,011,086 -1,031,308 -1,051,934 -1,072,973 -1,094,432 -1,116,321 -1,138,647 -1,161,420 -1,184,648 -1,208,341 -1,232,508 -1,257,158 2.00% 2.00% -829,443 -855,780 Operating expense per unit (pa) 1,750 1,785 1,821 1,857 1,894 1,932 1,971 2,010 2,050 2,091 2,133 2,176 2,219 2,264 2,309 2,355 2,402 2,450 2,499 2,549 2,600 2,652 1,750 1,805 Operating expense ratio: 33.4% 32.5% 31.1% 29.6% 28.6% 28.2% 28.0% 27.9% 27.8% 27.6% 27.5% 27.4% 27.2% 27.1% 27.0% 26.8% 26.7% 26.6% 26.4% 26.3% 26.2% 26.0% 33.4% 32.8%

NET OPERATING INCOME 1,656,665 1,756,841 1,908,378 2,098,036 2,243,661 2,335,460 2,398,426 2,463,057 2,529,397 2,597,491 2,667,385 2,739,125 2,812,759 2,888,338 2,965,911 3,045,531 3,127,251 3,211,126 3,297,211 3,385,565 3,476,245 3,569,314 5.12% 2.97% 1,656,665 1,754,073 Other expenses: Head Rent 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Management fee (a % of effective revenue) -111,875 -117,129 -124,710 -134,021 -141,366 -146,305 -149,963 -153,712 -157,555 -161,494 -165,531 -169,669 -173,911 -178,259 -182,715 -187,283 -191,965 -196,765 -201,684 -206,726 -211,894 -217,191 4.16% 2.70% -111,875 -119,209 Subtotal - other expenses: -111,875 -117,129 -124,710 -134,021 -141,366 -146,305 -149,963 -153,712 -157,555 -161,494 -165,531 -169,669 -173,911 -178,259 -182,715 -187,283 -191,965 -196,765 -201,684 -206,726 -211,894 -217,191 4.16% 2.70% -111,875 -119,209 Management fee as a % of operating expenses 13.5% 13.8% 14.5% 15.2% 15.7% 16.0% 16.1% 16.1% 16.2% 16.3% 16.4% 16.5% 16.5% 16.6% 16.7% 16.8% 16.9% 16.9% 17.0% 17.1% 17.2% 17.3% 13.5% 13.9% Management fee per unit (pa) 236.02 247.11 263.10 282.74 298.24 308.66 316.38 324.29 332.39 340.70 349.22 357.95 366.90 376.07 385.48 395.11 404.99 415.12 425.49 436.13 447.03 458.21 236.02 251.50

Total of all expenses: -941,318 -963,161 -987,662 -1,014,232 -1,039,182 -1,062,077 -1,084,050 -1,106,481 -1,129,379 -1,152,755 -1,176,617 -1,200,977 -1,225,845 -1,251,232 -1,277,147 -1,303,604 -1,330,612 -1,358,185 -1,386,332 -1,415,067 -1,444,402 -1,474,350 2.28% 2.10% -941,318 -974,989 Total expenses per unit (pa) 1,985.90 2,031.98 2,083.68 2,139.73 2,192.37 2,240.67 2,287.03 2,334.35 2,382.66 2,431.97 2,482.31 2,533.71 2,586.17 2,639.73 2,694.40 2,750.22 2,807.20 2,865.37 2,924.75 2,985.37 3,047.26 3,110.44 1,985.90 2,056.94 Total expenses as a % of effective revenue 37.9% 37.0% 35.6% 34.1% 33.1% 32.7% 32.5% 32.4% 32.3% 32.1% 32.0% 31.9% 31.7% 31.6% 31.5% 31.3% 31.2% 31.1% 30.9% 30.8% 30.7% 30.5% 37.9% 37.4% Less: Capital reserves (a % of effective revenue) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Capital costs 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

NET CASHFLOW 1,544,790 1,639,712 1,783,669 1,964,015 2,102,295 2,189,155 2,248,463 2,309,345 2,371,842 2,435,997 2,501,854 2,569,455 2,638,848 2,710,079 2,783,196 2,858,248 2,935,286 3,014,361 3,095,527 3,178,839 3,264,351 3,352,123 5.19% 2.99% 1,544,790 1,634,864 Gearing : net cashflow to effective revenue 62.1% 63.0% 64.4% 65.9% 66.9% 67.3% 67.5% 67.6% 67.7% 67.9% 68.0% 68.1% 68.3% 68.4% 68.5% 68.7% 68.8% 68.9% 69.1% 69.2% 69.3% 69.5% 62.1% 62.6% Gearing : net cashflow to Operating Expenses 186.2% 193.8% 206.7% 223.1% 234.2% 239.1% 240.7% 242.4% 244.1% 245.7% 247.4% 249.1% 250.9% 252.6% 254.3% 256.0% 257.8% 259.5% 261.3% 263.1% 264.9% 266.6% 186.2% 191.0% Gearing : net cashflow to All Expenses 164.1% 170.2% 180.6% 193.6% 202.3% 206.1% 207.4% 208.7% 210.0% 211.3% 212.6% 213.9% 215.3% 216.6% 217.9% 219.3% 220.6% 221.9% 223.3% 224.6% 226.0% 227.4% 164.1% 167.7% net cashflow per unit (pa) 3,259.05 3,459.31 3,763.01 4,143.49 4,435.22 4,618.47 4,743.59 4,872.04 5,003.89 5,139.23 5,278.17 5,420.79 5,567.19 5,717.47 5,871.72 6,030.06 6,192.59 6,359.41 6,530.65 6,706.41 6,886.82 7,071.99 3,259.05 3,449.08

T:\PSQ\Shared\Valuation\Clients\Bank of America\Project Rose II & III\6. Val Calcs\[PBSA FH Model_GPS.xlsx]Exec Summary © Cushman & Wakefield LLP 2019

Unless this information is provided in conjunction with a Valuation Report, it is for guidance purposes only and does not constitute a formal valuation. The information is confidential to the party to whom it is addressed and no liability is accepted to any other party. BAML PROPERTY VALUATION AS AT 12 JULY 2019 Great Patrick St, Belfast Discounted Cashflow Analysis

Year Discount Year Net Cash Discount Factor Present Value Proportion Net Running Period Ending Flow 7.00% of Cashflows of Value Yields

1 0.5 Sep-20 1,544,790 x 0.9667365 = 1,493,405 4.24% 4.38% 2 1.5 Sep-21 1,639,712 x 0.9034920 = 1,481,466 4.20% 4.65% 3 2.5 Sep-22 1,783,669 x 0.8443851 = 1,506,103 4.27% 5.06% 4 3.5 Sep-23 1,964,015 x 0.7891449 = 1,549,892 4.40% 5.57% 5 4.5 Sep-24 2,102,295 x 0.7375186 = 1,550,481 4.40% 5.97% 6 5.5 Sep-25 2,189,155 x 0.6892698 = 1,508,918 4.28% 6.21% 7 6.5 Sep-26 2,248,463 x 0.6441773 = 1,448,409 4.11% 6.38% 8 7.5 Sep-27 2,309,345 x 0.6020349 = 1,390,306 3.95% 6.56% 9 8.5 Sep-28 2,371,842 x 0.5626494 = 1,334,516 3.79% 6.73% 10 9.5 Sep-29 2,435,997 x 0.5258406 = 1,280,946 3.64% 6.91%

Total Present Value of Cashflows: 14,544,443 41.28% 5.84% Total Average

Reversion Year NOI/Income / Exit Cap Rate = Reversion 11 10 Sep-30 2,501,854 / 5.900% = 42,404,297 Less: Purchaser's Costs 2.888% 1,190,261 Less: Cost of Sale 1.250% 515,175

Net Reversion 40,698,861 x Discount Factor 0.5083493 Total Present Value of Reversion 20,689,237 58.72%

Total Present Value of Cashflows & Reversion: 35,233,681 100.00% Plus any capital additions 0 Less any capital deductions 0 Total Gross Present Value: 35,233,681 Less: Purchaser's Costs 2.800% 959,672 Total Net Present Value: 34,274,008

ROUNDED VALUE via DISCOUNTED CASHFLOW: 34,270,000

Total units 474 Value per unit 72,300 First year net cashflow per unit 3,259 n.b. "in place" net cashflow 1,544,790 "in place" net initial yield 4.38% "in place" net cashflow per unit 3,259 n.b. net cashflow - next academic year 1,634,864 net initial yield - next academic year 4.64% net cashflow per unit - next academic year 3,449

© Cushman & Wakefield LLP 2019

Unless this information is provided in conjunction with a Valuation Report, it is for guidance purposes only and does not constitute a formal valuation. The information is confidential to the party to whom it is addressed and no liability is accepted to any other party. BAML PROPERTY VALUATION AS AT 12 JULY 2019 Great Patrick St, Belfast Total Value Summary

A. Commercial Element

Commercial Accommodation - Size and Income Description Number of Total Size Av size per Annual Annual rental Total Units (Net Internal unit Rental Rate per unit potential Area) (per Sq Ft) annual income n/a ------n/a ------n/a ------n/a ------n/a ------Totals - - - - -

Commercial Accommodation - Valuation Description Number of Total Size Total % of income Income for Void Yield Years PV factor Gross Value Purchaser's Net Value Units (Net Internal potential for valuation Valuation Assumption Purchase (in Costs after Area) annual (yrs) perp) Purchaser's income Costs n/a - - - 100% - - 8.00% 12.50 1.00 - 0.00% - n/a - - - 100% - - 8.00% 12.50 1.00 - 0.00% - n/a - - - 100% - - 8.00% 12.50 1.00 - 0.00% - n/a - - - 100% - - 8.00% 12.50 1.00 - 0.00% - n/a - - - 100% - - 8.00% 12.50 1.00 - 0.00% - Totals - - - - 0.40 - -

Total Gross Value before Capex 0 Plus any capital additions 0 Less any capital deductions 0 Total Gross Value after Capex 0 Adjustment for Purchaser's Costs 0 0.00% Net Value 0 Rounding 5,000 Rounded Value 0

B. Student Accommodation

Total Unrounded Value 34,274,008 Rounding 10,000 Rounded Value 34,270,000

C. Total Value

Rounded Value 34,270,000

D. Running Yield Analysis (net of capital reserves and capital costs in the cashflow, but unadjusted for capex)

1. Student Housing: Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 "In Place" Next Academic Gross Value (on rounded) 35,229,560 net cashflow (AFTER capital reserves and capital costs) 1,544,790 1,639,712 1,783,669 1,964,015 2,102,295 2,189,155 2,248,463 2,309,345 2,371,842 2,435,997 1,544,790 1,634,864 Running Yields (net) 4.38% 4.65% 5.06% 5.57% 5.97% 6.21% 6.38% 6.56% 6.73% 6.91% 4.38% 4.64%

2. Commercial: (revenue growth at 2.5%) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 1 Year 1 Gross Value (on rounded) 0 net cashflow 0 0 0 0 0 0 0 0 0 0 0 0 Running Yields (net) #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

3. Combined Cashflow Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 "In Place" Next Academic Gross Value (on rounded) 35,229,560 (+ Yr 1) (+ Yr 1) net cashflow (AFTER capital reserves and capital costs) 1,544,790 1,639,712 1,783,669 1,964,015 2,102,295 2,189,155 2,248,463 2,309,345 2,371,842 2,435,997 1,544,790 1,634,864 Running Yields (net) 4.38% 4.65% 5.06% 5.57% 5.97% 6.21% 6.38% 6.56% 6.73% 6.91% 4.38% 4.64%

E. Running Yield Analysis (gross of capital reserves and capital costs, but unadjusted for capex)

1. Student Housing: Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 "In Place" Next Academic Gross Value (on rounded) 35,229,560 net cashflow (BEFORE capital reserves and capital costs) 1,544,790 1,639,712 1,783,669 1,964,015 2,102,295 2,189,155 2,248,463 2,309,345 2,371,842 2,435,997 1,544,790 1,634,864 Running Yields (net) 4.38% 4.65% 5.06% 5.57% 5.97% 6.21% 6.38% 6.56% 6.73% 6.91% 4.38% 4.64%

2. Commercial: (revenue growth at 2.5%) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 1 Year 1 Gross Value (on rounded) 0 net cashflow 0 0 0 0 0 0 0 0 0 0 0 0 Running Yields (net) #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

3. Combined Cashflow Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 "In Place" Next Academic Gross Value (on rounded) 35,229,560 (+ Yr 1) (+ Yr 1) net cashflow (BEFORE capital reserves and capital costs) 1,544,790 1,639,712 1,783,669 1,964,015 2,102,295 2,189,155 2,248,463 2,309,345 2,371,842 2,435,997 1,544,790 1,634,864 Running Yields (net) 4.38% 4.65% 5.06% 5.57% 5.97% 6.21% 6.38% 6.56% 6.73% 6.91% 4.38% 4.64%

© Cushman & Wakefield LLP 2019

Unless this information is provided in conjunction with a Valuation Report, it is for guidance purposes only and does not constitute a formal valuation. The information is confidential to the party to whom it is addressed and no liability is accepted to any other party. BAML BAML PROPERTY VALUATION AS AT 12 JULY 2019 PROPERTY VALUATION AS AT 12 JULY 2019 Great Patrick St, Belfast Great Patrick St, Belfast Sensitivity Analysis (Two Independent Trials) (Student Housing Element Only) Sensitivity Analysis (Two Independent Trials) (Student Housing Element Only) ACTUAL VALUES PERCENTAGE FIGURES

Factor 1 : Weekly Room Rate Factor 1 : Weekly Room Rate Factor 2 : Discount Rate and Exit Cap Rate Factor 2 : Discount Rate and Exit Cap Rate

Factor 1 Vertex : 0.00 Factor 1 Vertex : 0.00 Factor 2 Vertex : 0% Factor 2 Vertex : 0%

Rate Discount Rate & ECR Rate Discount Rate & ECR ######## -0.50% -0.25% 0.00% 0.25% 0.50% 3,250,000 -0.50% -0.25% 0.00% 0.25% 0.50% 20.00 45,990,000 43,920,000 42,020,000 40,280,000 38,680,000 20.00 34.20% 28.16% 22.61% 17.54% 12.87% 15.00 43,870,000 41,900,000 40,090,000 38,420,000 36,890,000 15.00 28.01% 22.26% 16.98% 12.11% 7.65% 10.00 41,760,000 39,870,000 38,150,000 36,570,000 35,110,000 10.00 21.86% 16.34% 11.32% 6.71% 2.45% 5.00 39,640,000 37,850,000 36,210,000 34,710,000 33,320,000 5.00 15.67% 10.45% 5.66% 1.28% -2.77% 0.00 37,520,000 35,820,000 34,270,000 32,850,000 31,540,000 0.00 9.48% 4.52% 0.00% -4.14% -7.97% -5.00 35,400,000 33,800,000 32,340,000 30,990,000 29,760,000 -5.00 3.30% -1.37% -5.63% -9.57% -13.16% -10.00 33,280,000 31,780,000 30,400,000 29,140,000 27,970,000 -10.00 -2.89% -7.27% -11.29% -14.97% -18.38% -15.00 31,160,000 29,750,000 28,460,000 27,280,000 26,190,000 -15.00 -9.07% -13.19% -16.95% -20.40% -23.58% -20.00 29,050,000 27,730,000 26,530,000 25,420,000 24,400,000 -20.00 -15.23% -19.08% -22.59% -25.82% -28.80%

Factor 1 : % Adjustment to Operating Costs (excl the opex adj line) Factor 1 : % Adjustment to Operating Costs (excl the opex adj line) Factor 2 : Discount Rate and Exit Cap Rate Factor 2 : Discount Rate and Exit Cap Rate

Factor 1 Vertex : 0% Factor 1 Vertex : 0.00 Factor 2 Vertex : 0% Factor 2 Vertex : 0%

Opex Discount Rate & ECR Opex Discount Rate & ECR ######## -0.50% -0.25% 0.00% 0.25% 0.50% 3,250,000 -0.50% -0.25% 0.00% 0.25% 0.50% -20.00% 41,290,000 39,430,000 37,730,000 36,170,000 34,730,000 -20% 20.48% 15.06% 10.10% 5.54% 1.34% -15.00% 40,350,000 38,530,000 36,860,000 35,340,000 33,930,000 -15% 17.74% 12.43% 7.56% 3.12% -0.99% -10.00% 39,400,000 37,630,000 36,000,000 34,510,000 33,130,000 -10% 14.97% 9.80% 5.05% 0.70% -3.33% -5.00% 38,460,000 36,730,000 35,140,000 33,680,000 32,340,000 -5% 12.23% 7.18% 2.54% -1.72% -5.63% 0.00% 37,520,000 35,820,000 34,270,000 32,850,000 31,540,000 0% 9.48% 4.52% 0.00% -4.14% -7.97% 5.00% 36,580,000 34,920,000 33,410,000 32,020,000 30,740,000 5% 6.74% 1.90% -2.51% -6.57% -10.30% 10.00% 35,640,000 34,020,000 32,550,000 31,190,000 29,950,000 10% 4.00% -0.73% -5.02% -8.99% -12.61% 15.00% 34,690,000 33,120,000 31,680,000 30,360,000 29,150,000 15% 1.23% -3.36% -7.56% -11.41% -14.94% 20.00% 33,750,000 32,220,000 30,820,000 29,540,000 28,350,000 20% -1.52% -5.98% -10.07% -13.80% -17.27% BAML PROPERTY VALUATION AS AT 12 JULY 2019 Great Patrick St, Belfast Executive Summary - Inputs, Assumptions and Value Results

A. GENERAL INPUTS D. VALUATION RESULTS 1 Property Great Patrick St, Belfast 1 Market Value : Commercial Element 0 2 Client BAML 2 Market Value : Student Accommodation 27,690,000 3 Property reference number GPS 3 Market Value : Total 27,690,000 4 Tenure Freehold 5 Property owner 6 Operator Student Roost Student Accommodation Only: 7 Property type Direct Let & NOM's 4 Total number of units 474 8 Valuation date 12 Jul 2019 5 Value per unit 58,418 9 Opening date 01 Sep 2019 6 Value per Sq Ft (on the Gross Internal Area) #DIV/0! 10 Years since opening -0.14 11 Site area (hectares) 0.000 12 Site area (acres) 0.000 Running Yields (gross of capital reserves and costs in the cashflow, but unadjusted for capex): Adj for capex: 13 measurement units Sq Ft 7 Net yield (reflecting income for the next 12 months) - Year 1 499,027 1.753% 1.753% 14 Currency GBP 8 Net yield (reflecting income for the next 12 months) - Year 2 744,629 2.616% 2.616% 15 Valuation Rounding 10,000 9 Net yield (reflecting income for the next 12 months) - Year 3 1,381,894 4.855% 4.855% 16 DFC Period (in years) 10 10 Net yield (reflecting income for the next 12 months) - Year 4 1,702,483 5.981% 5.981% 11 Net yield (reflecting income for the next 12 months) - Year 5 1,803,367 6.335% 6.335% B. OTHER PRINCIPAL INPUTS 12 True net initial yield (reflecting income for the next 12 months after 499,027 1.753% all capital expenditure in the cashflow) – Year 1 1 Occupancy - term: Year 1 40.00% 13 Net yield - reflecting "in place" income 499,027 1.753% 1.753% 2 Occupancy - term: Year 2 60.00% 14 Net yield - reflecting estimated income for the next academic year 577,486 2.029% 2.029% 3 Occupancy - term: Year 3 90.00% 4 Occupancy - out of term: Year 1 35.00% No Growth Reversionary Yield & Estimated Net Equivalent Yield : 5 Occupancy - out of term: Year 2 25.00% 15 Net reversionary yield (gross of capital reserves and costs in the 1,419,983 4.988% 4.988% cashflow, but unadjusted for capex) on a no growth basis 6 Occupancy - out of term: Year 3 15.00% 16 Estimated Net Equivalent Yield (cashflow gross of capital reserves Not Calculated and costs, but unadjusted for capex. Annually in arrears basis) 7 Student related income - GICR for valuation 5.900% 8 Student related income - Adj for exit yield 0.000% i) Weighted average revenue data for year 1: 9 Student related income - Exit Yield 5.900% 17 Revenue - term time unit income only (incl noms, excl other adjmts) 962,494 p.a. 10 Student related income - Discount Rate for DCF 7.000% 18 Revenue - all income (incl noms and other adjmts) 1,183,959 p.a. 11 Student related income - Rental growth rate - Year 1 3.500% 19 Operating costs & Leakage % (excluding management fees and rent) 631,654 p.a. 53.35% 12 Ancillary income - Growth rate - Year 1 2.500% 20 Operating costs & Leakage % (including management fees and rent) 684,932 p.a. 57.85% 13 Commercial income - Rental growth rate - Year 1 2.500% 21 Net cashflow before capital reserves and capital costs 499,027 p.a. 14 Operating costs - Cost inflation rate - Year 1 2.000% 22 Net cashflow after capital reserves and capital costs 499,027 p.a. 15 Head rent - rent inflation rate - Year 1 2.500% 16 Student purchaser's costs (on entry) 2.800% Ii) Weighted average revenue data for year 1 - per unit: 17 Student purchaser's costs (on exit) 2.800% 23 Revenue - term time unit income only 2,031 p.a. per unit 18 Commercial purchaser's costs 0.000% 24 Revenue - all income 2,498 p.a. per unit 19 Disposal costs for the exit calculation 1.250% 25 Operating costs (excluding management fees and rent) 1,333 p.a. per unit 20 Management fee : a % of gross income 4.500% 26 Operating costs (including management fees and rent) 1,445 p.a. per unit 21 Capital reserves : a % of gross income 0.000% 27 Net cashflow before capital reserves and capital costs 1,053 p.a. per unit 28 Net cashflow after capital reserves and capital costs 1,053 p.a. per unit C. VALUATION ASSUMPTIONS All figures in GBP iii) Weighted average revenue data for year 1 - per unit per term week: The cashflow is on a calendar year basis 29 Weighted average number of term weeks 41.1 weeks Income growth above applied after year 1 30 Revenue - term time unit income only 49.45 per unit per term week Expense inflation applied after year 1 31 Revenue - all income 60.83 per unit per term week Exit price based on the forward looking 12 month income at the exit point. 32 Operating costs (excluding management fees and rent) 32.46 per unit per term week Cashflow is discounted as per the DCF analysis 33 Operating costs (including management fees and rent) 35.19 per unit per term week Commercial income (if receivable) is separately valued 34 Net cashflow before capital reserves and capital costs 25.64 per unit per term week Ancillary income (related to student occupation) has been added to our cashflow projections 35 Net cashflow after capital reserves and capital costs 25.64 per unit per term week It is assumed that the management agreement is in place and the costs associated are historic Capital costs in the cashflow are not inflated from day 1 and are assumed to arise in the first month of the year Commercial Element Only: 0 36 Revenue - Year 1 0 p.a. 0 37 Revenue - Year 1 per Sq Ft n/a 0 38 Net initial yield n/a 0 0 0

Lease expiry date (for leased assets) n/a

T:\PSQ\Shared\Valuation\Clients\Bank of America\Project Rose II & III\6. Val Calcs\VP Vals\[PBSA FH Model_GPS.xlsx]Cashflow © Cushman & Wakefield LLP 2019 Cushman & Wakefield | Bank of America Merrill Lynch Appendix C: Rental Comparables And MAP Valuation Date: 12 July 2019 Great Patrick Street, 28-30 Great Patrick Street, Belfast BT1 2LT

APPENDIX C: RENTAL COMPARABLES AND MAP

39

Belfast Student Accomodation Comparables 03.07.2019

Room numbers (beds) in Rent (£per week) Map No. Block Name Postcode Operator Photo Room Types Let Length 2019 Comments Block: total 2019 2019

Twin 44 £63.00 Laundry, bike storage, CCTV Twin 51 £58.00 Ensuite 44 £119.00 Ensuite 51 £109.00

Belfast Student Studio 44 £145.00 1 123 York Street BT15 1AB 407 Living Studio 51 £135.00

Twin 38 £75.00 Laundry, bike storage, CCTV Twin 39 £75.00 Twin 51 £75.00 Standard 38 £85/up to £120 Queen's Standard 39 £85/up to £120 2 76 Malone Road BT9 5BU University 22 Belfast Standard 51 £85/up to £120 Ensuite 51 N/A

Studio 50 £138/up to £180 Laundry, games space, common areas

University 3 Botanic Studios BT2 7BY 156 Student Living

Twin 38 £75.00 Laundry, bike storage, CCTV Twin 39 £75.00 Twin 51 £75.00 Standard 38 £85/up to £120 Queen's Standard 39 £85/up to £120 4 College Gardens BT9 6BQ University 49 Belfast Standard 51 £85/up to £120

Ensuite 40 £119/up to £125 Laundry, bike storage, cinema, common areas Ensuite 51 £119/up to £125 Studio 44 £135/up to £159 Studio 51 £135/up to £159

5 Swanston House BT1 6EB Student Roost 317

Ensuite 38 £124.00 Common areas, CCTV, laundry, parcel post system Ensuite 39 £124.00 Ensuite 51 £124.00 Studio 38 £149.00 Queen's Studio 39 £149.00 6 Elms BT1 BT1 6BB University 804 Belfast Studio 51 £149.00

Ensuite 38 £124.00 Common areas, CCTV, laundry, parcel post system Ensuite 39 £124.00 Ensuite 51 £124.00 Studio 38 £149.00 Queen's Studio 39 £149.00 7 Elms BT2 BT2 7GE University 476 Belfast Studio 51 £149.00

Ensuite 44 £125/up to £139 Laundry, bike storage, common areas Ensuite 51 £125/up to £139 Studio 39 £159.00 Studio 44 £149.00 Studio 51 £149/up to £169 8 John Bell House Bt1 6DJ Student Roost 413

Twin 38 £75.00 Laundry, bike storage, CCTV Twin 39 £75.00 Twin 51 £75.00 Standard 38 £85/up to £120 Queen's Standard 39 £85/up to £120 9 Mount Charles BT7 1NY University 163 Belfast Standard 51 £85/up to £120 Ensuite 38 £124.00 Ensuite 39 £124.00 Ensuite 51 £124.00

Studio 38 £149.00 Laundry, bike storage, CCTV Studio 39 £149.00 Studio 51 £149.00 Standard 38 £125/up to £135 Queen's Standard 39 £125/up to £135 10 Willlow Walk BT9 5BW University 250 Belfast Standard 51 £125/up to £135 1 bedroom 38 £175.00 1 bedroom 39 £175.00 1 bedroom 51 £175.00 Map – Belfast – 28-30 Great Patrick Street Cushman & Wakefield | Bank of America Merrill Lynch Appendix D: Belfast Market Commentary Valuation Date: 12 July 2019 Great Patrick Street, 28-30 Great Patrick Street, Belfast BT1 2LT

APPENDIX D: BELFAST MARKET COMMENTARY

40

Executive Summary Belfast Student Accommodation Market

Cushman & Wakefield has worked with Ulster University and consulted with Queen’s University over the last year around the development of purpose-built stock in Belfast. It is clear that the market behaves fundamentally differently to on the mainland, and this has led to issues for some providers. The Holyland has the highest concentration of Student HMOs in the city. It is an area which has traditionally attracted a high number of students, with many choosing to live here because their family or friends have done in the past. The area is most popular with first and second year students, with some older students tending to migrate to the quieter areas of Lisburn road and Stranmillis. The HMO market in the Holyland is dominated by four landlords, who have a virtual monopoly on the accommodation market. Overall the quality of the accommodation on offer is low, with many houses in a poor state of repair.

The poor quality of stock and general environment means that levels of crime are high, and our conversations with the University have revealed that a number of students have been victims of violent crime. It is likely that the poor quality of the area and dominance of a small number of landlords have meant that aspirations have become entrenched in the area, with no incentive for property owners to improve their accommodation, and no pressure from students to raise the quality of the offer. This is exacerbated by the fact that the student profile in Northern Ireland is different to what is seen in the majority of cities on the Mainland. Northern Irish Students will usually only live in student accommodation Monday to Friday and will return home on the weekend.

The City Council has been open to the development of purpose-built stock and this has led to an acceleration in private sector development.

A misreading of the market and large-scale development in a short period of time means that rents are set to fall by an average of 11% for the 2019/20 academic year, with some Student Roost rents falling by 18%. Botanic Studios, Swanston House, Great Patrick Street and John Bell House offered discounts of roughly 10% for most room types. Long-term cultural change is required in Belfast to increase overall demand and the attractiveness of purpose-built stock in the City. For 2019/20, one scheme is set to open nearby the Ulster University campus, although marketing of the scheme has been limited. The market is likely to be impacted by continued delays to the opening of Ulster University’s Belfast Campus, with delays in construction meaning students may not now move from Jordanstown until 2022. Work is underway but there is currently no set completion date for the academic facilities. The student to bed ratio in Belfast currently stands at 2.2:1, although we would caution that a period of cultural change needs to occur in the market before this ratio can be considered comparable with mainland UK markets.

oThe tw schemes are priced similarly and Student Roost effectively dictate prices in Belfast and after a period of digestion and cultural change, lower rents this year has led to high occupancy levels and the market appears to be healthy again.

4 Key Statistics Belfast Student Accommodation Market

Queen’s Ulster University University: Belfast Belfast

FT student population 18,720 17,315

Growth 2012-2017 12% -6%

Growth 2015-2017 2% -5%

Number of international students 3,020 1,290

Change in students from outside the 77% -57% UK 2012-2017

Number of Students from outside the 4,280 1,750 region

Change in students from outside the 75% -45% region 2012-2017

Change in UCAS applications 2016 - -3% -10% 18

UCAS app:accepts ratio 7.1 39.4

Times Rank 2019 38 60

Change in Times Rank 2012-2019 0 -4

TEF n/a n/a

6 Queen’s University, Belfast League Table Rankings

Queen’s University, Belfast League table rankings 2010-2019 Queen’s university has fluctuated in the league tables in the last 10 years, but overall they have only dropped 3 places in the Guardian and Complete Guides and 6 places in the Times since 2010. For 2020, the university is ranked 53rd in the Guardian and 37th in the Complete Guide and they are ranked 38th in the 2019 Times ranking. Like Ulster University, Queen’s did not participate in the Teaching Excellence Framework in 2017 or 2018. The University is currently ranked 42nd in the country for research, from the 2014 teaching excellence framework, a drop of 3 from the previous Research Assessment Exercise in 2008.

Source: University League tables 2010 - 2019

Cushman & Wakefield | Helmsley Group 8 Queen’s University, Belfast Campus Investment

The University has invested heavily in its estate in recent years, with £350 million invested in the campus over a 10 year period. This includes: • Schoolf o Biological Sciences – A £39 million development, being built at Chlorine Gardens, will offer state-of-the art teaching and research facilities for its 750 students and 170 staff, who will tackle some of the world’s most pressing issues. • The School of Law - This space for School of Law staff and students returns the Quad to its original Victorian splendour. The development has recycled the former Library Tower and added a three-storey building to the Peter Froggatt Centre for study and collaboration under one 21st century roof. • The Computer Science Building - At 3,000m2, with a glazed, front elevation, the new Computer Science building integrates teaching and research, delivering a stimulating environment for staff and students and group and project work. • The Graduate School - The Graduate School opened in 2015 in the restored and remodelled Lynn Building, which was originally designed in 1858. New areas for study, meetings and social events ensure it is a vibrant centre of intellectual exchange.

9 Ulster University League Table Rankings

Ulster University League table rankings 2010-2019 Recently, Ulster University slipped down the rankings between 2012 and 2018, dropping in all three major rankings to 73rd in the Times 96th in the Guardian and 71st in the Complete guide. Since then, there is evidence of a recovery, the university has increased substantially in the newly released 2020 Guardian and Complete Guides, up to 59th and 58th respectively. There was also a league position increase in the 2019 Times Good University Guide, rising to 60th. Ulster University didn’t take part in the 2017 or 2018 Teaching Excellence Framework. In the 2014 Research Excellence Framework, Ulster University was ranked 54th, 9 places lower than the previous Research Assessment Exercise in 2008.

Source: University League tables 2010 - 2019

Cushman & Wakefield | Helmsley Group 10 Ulster University Campus Investment

Ulster University – Belfast Campus Development In 2015, the first phase of development for the new Belfast campus opened, with capacity for 2,000 students and phase 2 was supposed to be completed in 2019 which would increase the capacity of the campus to 15,000 and would facilitate a move of all students from the Jordanstown campus into the city centre. Due to issues with contractors and developers, this has been delayed, construction is currently underway but no completion date has been set. Alongside the 75,000sqm of teaching and learning facilities, there will be a mixed use development with ground floor retail and 3.5 storey car park offering 350 spaces, including electric charging points and bicycle stands is being built on Frederick Street and is due for completion in the first quarter of 2020. This development makes up part of the wider cathedral quarter regeneration scheme.

11 Market Rents Great Patrick Street Rental Profile (Scheme rents marked in red)

The three Student roost properties in Belfast make up most of the direct let market in the city, and they are all priced similarly so the rooms sit in the modal price points for their room types. The other two schemes have rooms priced similarly, despite a lower quality of scheme. The rents are substantially lower than they were a couple of years ago but this is considered a “correction” in the market and the prices for both schemes are sensible for both room types.

13 Market Rents Swanston House

Rental Profile (Scheme rents marked in red)

14 Planning Pipeline PBSA applications in Belfast

Number of bed spaces in planning pipeline 3,752

Development pipeline by Application Stage

Source: Belfast City Council July 2019

16 Planning Pipeline Proposed Developments in Belfast

For a relatively short PBSA market, the pipeline in Belfast is substantial with over 3,700 beds in the pipeline, the majority of which have planning approval. Most of the beds are based near the Ulster University Belfast campus in anticipation of the campus move from Jordanstown into the centre of Belfast. There are three very large schemes in the pipeline, three schemes with over 700 beds, again all near the new Belfast campus on York Street/Frederick Street but two of the sites (140 Donegall Street, 81 – 107 York Street) have been recently sold and there is no set completion date for either site.

17 Demand and Supply Dynamics The Belfast demand pool

The pool calculation below sets out our assumptions of demand for student accommodation in Belfast taking into account current supply levels in Belfast and the latest HESA student figures (2017/18) for Queen’s University, Belfast and Ulster University. In arriving at our demand pool, C&W has excluded a number of students who are unlikely to demand accommodation in the city. This includes: • All students domiciled in the City of Belfast • Students currently not living in PBSA domiciled in Antrim and Newtownabbey; Armagh, Banbridge and Craigavon; Lisburn and Castlereagh; Mid and East Antrim; Mid Ulster; Newry Mourne and Down; and North Down and Ards • Sandwich students currently on a placement year in industry

Belfast Demand Pool & SBR

Source: HESA 2017/18, Cushman & Wakefield Accommodation Tracker 2019/20

The SBR in Belfast is above the UK average at 2.2:1, which is healthy but the market has struggled to digest and the market has “corrected”, dropping in price and occupancy appears to have improved for the coming academic year. Delays to the Ulster University’s Belfast campus, which was due to open in 2020, may cause some short term issues in the market due to the much of the pipeline being predicated around the increase of students based in the centre of Belfast. The issues in the city would only be short term and the SBR should rise with the introduction of 13,000 more students in central Belfast as opposed to Jordanstown, which is 6 miles away.

19 Cushman & Wakefield | Bank of America Merrill Lynch Individual Property Record Valuation Date: 12 July 2019 Swanston House, 41-45 Queen Street, Belfast, BT1 6ET

INDIVIDUAL PROPERTY RECORD

SWANSTON HOUSE, 41-45 QUEEN STREET, BELFAST, BT1 6ET

1

Cushman & Wakefield | Bank of America Merrill Lynch Table of Contents Valuation Date: 12 July 2019 Swanston House, 41-45 Queen Street, Belfast, BT1 6ET

TABLE OF CONTENTS

Executive Summary

1. Location and Description

2. Structural Condition and Repair

3. Site

4. Environmental Considerations

5. Statutory Matters

6. Taxation

7. Tenure and Occupational Interests

8. Student Market Considerations

9. Valuation Approach and Opinions of Value

10. Market Value

11. Market Value Based on Special Assumptions

12. Security of the Loan

Appendices

A. Maps and Plans

B. Valuation Calculations

C. Rent Comparables and Map

D. Belfast Market Commentary

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Cushman & Wakefield | Bank of America Merrill Lynch Executive Summary Valuation Date: 12 July 2019 Swanston House, 41-45 Queen Street, Belfast, BT1 6ET

EXECUTIVE SUMMARY

This summary is strictly confidential to you as the Addressee. It must not be copied, distributed or considered in isolation from the full report.

Property Summary

Location The Property is located within the heart of Belfast city centre fronting Queen Street. The Property is well located in terms of accessibility with Westlink (A12) accessed c.450m to the north west, providing an arterial route through the western element of the city centre and direct access to the M2 and M3 motorways c.1.20 km (0.75 miles) north of the Property and M1 motorway c.1.80 km (1.1 miles) to the south west. Great Victoria Street railway station is located approximately 300m to the south west of the Property and accessed within a 7 minute walking time. The City’s main retail areas are located to the immediate north and east of the Property, including the Castle Court Shopping Centre and Victoria Square Shopping Centre. Queens University campus is situated c.1.50 km (0.9 miles) south of the Property and accessed within a 20 minute walking time or via public transport (10 minute commute). Ulster University’s city campus is situated 500m to the north of the Property (c. 10 minutes’ walk) whilst its Jordanstown campus (c.10 km to the north) is accessed via a regular bus service with a c.30 minutes commute from the Property. The Property is considered well located for both Universities’ city campuses as well as city centre amenities.

Description Purpose-built student accommodation scheme with retained former Victorian warehouse facades, completed in 2018. Property provides a total of 324 student bedspaces comprising 203 en suite bedspaces and 121 studios. The Property comprises a recently completed purpose-built student accommodation scheme arranged as a single block fronting Queen Street, with a secondary frontage to College Street and a small frontage to Wellington Place. The Property achieved practical completion in 2018 and comprises 324 bedspaces arranged over ground and 8 upper floors. The Property retains the 4-storey facades of a former Victorian warehouse to the Queen Street and College Street frontages, behind which the scheme provides a new-build concrete framed structure extending over 9-storeys, with the storeys above the brick façade being set back and having a mix of glazing and composite panel cladding below flat roofs. All accommodation is finished to a good quality standard and specification for the student accommodation market. The Property provides a good level of onsite communal facilities including reception area and management office, communal lounge, private study room, cinema, courtyard area, laundry and cycle storage.

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Cushman & Wakefield | Bank of America Merrill Lynch Executive Summary Valuation Date: 12 July 2019 Swanston House, 41-45 Queen Street, Belfast, BT1 6ET

There is a vacant retail unit extending to 1,940 sq ft which has a frontage to Queen Street.

Approximate year of 2018 construction

Specification The individual en suite bedspaces and studios units are all finished to a good standard and specification for the student accommodation market. The Property provides a good level of onsite communal facilities for students.

Condition We have not carried out a building or condition survey. The Property comprises a new-build purpose-built student residential scheme completed in 2018. The internally inspected accommodation was finished to a good quality specification throughout and provides a good condition given its recent completion. During the course of our inspection we did not note any defects requiring further attention. Our internal inspection of the Property was limited to a select number of accommodation units. We have therefore made the assumption that the accommodation which was not inspected is of a similar condition to that inspected.

EPC We have not identified any EPC assessments for the Property. We recommend your legal advisors ensure EPC assessments are completed for the for the Property.

Environmental Issues None of which we are aware. We have been provided with a copy of a Phase I Environmental Site Assessment (ESA) dated July 2019) prepared by Delta Simons (Ref 19- 1146.01) which we have reviewed.

Tenure Freehold under Title Numbers AN216932 & AN220305.

University Agreements None.

Tenancies We have been provided with cashflows by the Borrower with forecast income projections for the 2018/19 and 2019/20 academic years. The Property is operated on a wholly direct-let basis. We are advised that the Property has achieved c.98.4% occupancy by room number for the 2019/20 academic year. The advertised weekly rents for en-suite bed spaces ranges from £119 to £125 from 40 weeks for the 2019/20 academic year and up to £159 for studio rooms from 44 weeks. As at the date of valuation, the aggregate total forecast rent for the 2018/19 academic year totals £1,413,030 based on an occupancy of 87.4%. For the 2019/20 academic years we have assumed total revenue of £1,828,403 (97% occupancy) which compares against the Borrower’s estimate of £1,838,273 (100% occupancy).

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Cushman & Wakefield | Bank of America Merrill Lynch Executive Summary Valuation Date: 12 July 2019 Swanston House, 41-45 Queen Street, Belfast, BT1 6ET

The commercial unit is vacant at the Valuation Date. However, negotiations are advanced for a new tenant and we provide further details within the body of the report.

Income, Yield and Market Value Summary

Valuation Date 12th July 2019

Year 1 Net Operating £1,224,499 Income (PBSA Element)

Market Value £25,565,000

Of which Market Value £395,000 Commercial Element

Yield Profile (PBSA Year 1 4.73% Element) Year 2 4.99% Year 3 5.40%

Loan Security In our opinion, subject to the comments and Assumptions contained below and elsewhere in this Valuation Report, the Freehold interest in the Property provides reasonable security for the purposes of a loan.

Liquidity Good

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Swanston House, 41-45 Queen Street, Belfast, BT1 6ET

PROPERTY RECORD

BELFAST – Swanston House, 41-45 Queen Street, Belfast, BT1 6ET

Inspection The Property was subject to an external inspection, from ground level and an internal inspection of a selection of accommodation types and communal areas, by Jagruti Joshi MRICS on the 3rd July 2019.

1. Location and Description

1.1. Location

General • The city of Belfast is located in Northern Ireland and is the country’s capital city and economic centre, situated on the on the north east coast.

Further maps and plans are attached in Appendix A. • The City benefits from excellent communication links with the remainder of the province, via road networks (M1 and M2 motorways), public transport and rail links. • Belfast’s main railway station, Great Victoria Street Station, provides regular direct services to Dublin, Coleraine, Portrush and Derry whilst the City’s Lanyon Place Station, Botanic Station and City Hospital Station provide Belfast’s Suburban Rail System which runs along 3 lines through Belfast's northern suburbs to Carrickfergus, Larne and Larne Harbour; eastwards towards Bangor and south-westwards towards Lisburn and Portadown.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Swanston House, 41-45 Queen Street, Belfast, BT1 6ET

• Belfast International Airport is located approximately 20 kilometres (12.4 miles) to the west of the city centre, whilst George Best Belfast City Airport is located immediately to the north of the city centre. Further, the City benefits from sea and ferry links via Belfast Harbour. • The city is home to two universities. Queens University campus is located to the southern fringe of Belfast city centre along University Road. • Ulster University’s main campus is at Jordanstown, situated c.10 km (6.20 miles) to the north of the city centre. The University is currently developing a new city centre campus along Frederick Street and York Street, the 1st phase of which opened in 2015 with the second phase due to complete in 2022. Following completion of the campus, the University will relocate the majority of its courses to the city centre. • Belfast city centre has wide appeal to the student population, with a range of chain and independent bars, restaurants and eateries, as well as an extensive shopping environment, as expected of a capital city.

Situation • The Property is located within the heart of Belfast city centre fronting Queen Street. • The Property is well located in terms of accessibility with Westlink (A12) accessed c.450m to the north west, providing an arterial route through the western element of the city centre and direct access to the the M2 and M3 motorways c.1.20 km (0.75 miles) north of the Property and M1 motorway c.1.80 km (1.1 miles) to the south west.

• Great Victoria Street railway station is located approximately 300m to the south west of the Property and accessed within a 7 minute walking time whilst Lanyon Place Station is located c.1km (0.6 miles) east if the Property and a c17 minute walking distance. • The City’s main retail areas are located to the immediate north and east of the Property, including the Castle Court Shopping Centre and Victoria Square Shopping Centre. • The surrounding area provides a mixed-use location comprising of predominantly office and retail uses.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Swanston House, 41-45 Queen Street, Belfast, BT1 6ET

• The popular Cathedral Quarter and Titanic Quarter offer a range of amenities for the students and both these areas are located within an easy walking distance of the Property. • Queens University campus is situated c.1.50 km (0.9 miles) south of the Property and accessed within a 20 minute walking time or via public transport (10 minute commute). • Ulster University’s city campus is situated 500m to the north of the Property (c. 10 minutes’ walk) whilst its Jordanstown campus (c.10 km to the north) is accessed via a regular bus service with a c.30 minutes commute from the Property. • The Property is considered well located for both Universities’ city campuses as well as city centre amenities. • The main university campuses are located as follows:

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Swanston House, 41-45 Queen Street, Belfast, BT1 6ET

1.2. Description

Summary • Purpose-built student accommodation scheme with retained former Victorian warehouse facades, completed in 2018. • Property provides a total of 324 student bedspaces comprising 203 en suite bedspaces and 121 studios. • All accommodation is finished to a good quality standard and specification for the student accommodation market. • The Property provides a good level of onsite communal facilities including reception area and management office, communal lounge, private study room, cinema, courtyard area, laundry and cycle storage.

Construction

• The Property comprises a recently completed purpose-built student accommodation scheme arranged as a single block fronting Queen Street, with a secondary frontage to College Street and a small frontage to Wellington Place. • The Property achieved practical completion in 2018 and comprises 324 bedspaces arranged over ground and 8 upper floors.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Swanston House, 41-45 Queen Street, Belfast, BT1 6ET

• The Property retains the 4-storey facades of a former Victorian warehouse to the Queen Street and College Street frontages, behind which the scheme provides a new-build concrete framed structure extending over 9-storeys, with the storeys above the brick façade being set back and having a mix of glazing and composite panel cladding below flat roofs. • Windows throughout the block are double glazed in metal casements. • The Property has been constructed forming an internal rear courtyard area. • The Property is accessed from the Queen Street frontage, leading to the scheme’s reception area. • A retail unit is located at ground floor fronting Queen Street, having a fitted frontage. Layout and Specification • The accommodation at ground floor provides the main reception and management office together with the communal accommodation and a small number of studios, with the en suite and remaining studio bedspaces arranged over floors 1 to 8. • The central courtyard area is accessed via the communal lounge at ground floor. • The bedspace accommodation at each level is accessed via corridors leading form the core areas. • The Property provides a good level of onsite communal facilities including reception area and management office, communal lounge, private study room, cinema, courtyard area, laundry and cycle storage.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Swanston House, 41-45 Queen Street, Belfast, BT1 6ET

Cluster Flat Accommodation

• The Property provides a total of 203 en suite bedspaces within cluster flats of 4 to 9 bedspaces offered as ‘Bronze’ and ‘Silver’ room types, varying dependent on room and cluster flat size. • The rooms are finished to an identical, good quality standard of fixtures and fittings, comprising the following: » Plastered and painted walls and ceilings throughout incorporating recessed lighting. » Timber effect vinyl flooring to bedspaces and living/kitchen areas with hard-wearing carpet floors to hallways. » Heating via wall-mounted electric heaters and time controlled ‘boost’ buttons. » WiFi internet hub within each cluster flat. » Hard-wired smoke detectors. » ¾ size bed with underbed storage. » Built-in desk with drawers and shelving, notice board and desk chair. » Double wardrobe with drawers. » Shower pod comprising ceramic sanitary-wear with stainless steel fittings, wall mounted mirror, bathroom cabinet, recessed LED strip lighting, thermostatic shower fitting and glazed shower door.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Swanston House, 41-45 Queen Street, Belfast, BT1 6ET

• The kitchen / lounge area serving each cluster flat are also decorated to a similar specification and are furnished as follows: » Modern fitted kitchen with base and wall units. » Laminate work surfaces with Perspex splashbacks. » Sink and drainer with modern mixer tap. » Integrated appliances to include 4-ring ceramic hob, extractor hood and electric oven together with combination microwave and free-standing fridge/freezers. » Fabric sofas with storage unit. » Breakfast bar and stools.

Studios • The scheme provides a total of 121 studios, offered as ‘Bronze’ and ‘Platinum’ room types, varying dependent on room size and situation within the scheme. • The studios are identically finished and similarly appointed to the en suite bedspaces in terms of fixtures, fittings and shower pods. • Each studio provides kitchenette area similarly appointed to cluster flat kitchens but including the following differences: » Integrated appliances to include 2-ring ceramic hob, extractor hood and combination microwave oven with free-standing under-counter fridge/freezer.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Swanston House, 41-45 Queen Street, Belfast, BT1 6ET

» Dining table or breakfast bar and 2 chairs.

• The individual unit rents and values we are reporting are on the Assumption that the internal specification of the en suite bedspaces and studios which were not internally inspected are of a similar standard to those inspected and as detailed above. Should it be found that the units which were not internally inspected provide a lower quality specification, we should be informed immediately and allowed to reconsider our valuations. • Our opinions of rents and values are provided on the basis of the quality and specification of the inspected accommodation. • Should it be found that the accommodation provides a different specification or mix of accommodation types to that as advised, we should be requested to revisit our valuations. Commercial Accommodation • The commercial accommodation to the ground floor is finished to a shell specification, with a fitted street frontage.

1.3. Accommodation Student Accommodation • The Property provides a total of 324 student bedspaces arranged across a mix of en suite cluster beds and studios. • We have been provided with a breakdown of accommodation by the Borrower on which we have relied. • We have not undertaken a measured survey of the Property. As is consistent with the student accommodation sector, rents are based upon weekly rents per room and not on a price per square metre or square foot. • We detail below a breakdown of the advised accommodation:

Room Type No. Units

En Suite Bronze 140

En Suite Silver 63

Studio Accessible 7

Studio Bronze 99

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Swanston House, 41-45 Queen Street, Belfast, BT1 6ET

Room Type No. Units

Studio Platinum 8

Total / Average 324

• Our valuation is based on the above accommodation mix as advised. Should it be found that the breakdown of accommodation is different to that as advised, we should be requested to revisit our valuations. Commercial Accommodation • In addition to the above, the Property includes a commercial unit fronting Queen Street as follows:

Unit Description Unit Size Unit Size Sq M (GIA) Sq Ft (GIA)

41 Queen Street Ground Floor Commercial 180 1,940

Parking Provision • 2x parking spaces for use by staff or students with disabilities.

2. Structural Condition and Repair • We have not carried out a building or condition survey. • We have not been provided with a copy of a Building or Condition Survey or a Mechanical and Electrical Systems Report, Lift Report or Fire Systems Report. • The Property comprises a purpose-built student residential scheme completed in 2018. • Our inspection of the external parts of the Property was from ground floor level only and as such we have not inspected the roofs. Our internal inspection comprised of a mix of cluster flat bedspaces and studio types together with the scheme’s communal accommodation. • The internally inspected accommodation was finished to a good quality specification throughout and provides a good condition given its recent completion. • During the course of our inspection we did not note any defects requiring further attention. • Our internal inspection of the Property was limited to a select number of accommodation units. We have therefore made the assumption that the accommodation which was not inspected is of a similar condition to that inspected. • We have assumed that all works of construction have been satisfactorily carried out in accordance with current British Standards and any relevant codes of practice. We have further assumed that all building works are covered by warranties/guarantees in the event of any future defects due to workmanship/materials which may need addressing. • We recommend that your legal advisors confirm that where warranties and guarantees are provided in relation to the building works, these are assignable to the Bank and any future financial lending institutions and/or purchasers as required. • The nature of student accommodation is such that in order to maintain the appearance of the Property and student demand, and to protect the Bank’s security, the Borrower will have to ensure they are proactive in the management, maintenance and repair of the building, undertaking a planned preventative maintenance programme to prevent any deterioration in items which need repair, ensuring operating costs are minimised.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Swanston House, 41-45 Queen Street, Belfast, BT1 6ET

Services • We have assumed that the Property is connected to mains water, electricity and sewerage services.

Remaining Useful Economic Life • We consider the building has a remaining useful economic life, provided it is properly maintained, of 30 years.

Estimated Reinstatement Cost Assessment • Our indicative guide to the Day One Cost is in the order of £19,791,000 (exclusive of VAT). C&W has not carried out a formal reinstatement cost assessment. • This guide figure envisages reconstructing the Property at the Valuation Date with clearance and reinstatement using modern methods and materials, which may not necessarily be appropriate or permitted. It does not reflect any additional costs attributable to conservation area status or listed building status (or similar – for example proximity to listed buildings) • The provision of this guide figure is strictly in accordance with the terms of the Engagement and you should not rely on this guide for any purpose before it has been confirmed by a formal assessment carried out by a building surveyor or other person with sufficient current experience of replacement costs.

3. Site

Boundary

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Swanston House, 41-45 Queen Street, Belfast, BT1 6ET

Area • Based on Ordnance Survey plans we calculate the approximate site area to be:

0.43 acres 0.17 hectares

Ground Conditions • We have not been provided with any information that indicates there are adverse ground conditions affecting the Property.

Archaeology • We have made an assumption that the site has no archaeological significance.

Flooding Risk • Plans reviewed by us on the Department for Infrastructure website indicate that the Property is not in, or near to, a sea or river floodplain and that the site is considered to have a low likelihood of flooding. • The Department for Infrastructure plan is shown below with the approximate position of the subject Property is shown by a red dot:

Source: Department for Infrastructure Website • The Department for Infrastructure map indicates that the site is considered to have a ‘Low Risk’ of flooding, as verified by the Phase I Environmental Site Assessment (ESA) dated July 2019) prepared by Delta Simons. • On 4 April 2016, a new scheme was introduced, called Flood Re, to enable owners of residential properties in flood risk areas to obtain insurance on more affordable terms. Designed by the Government and the insurance industry, Flood Re will collect a sum from every home insurer in the UK and then take responsibility for the flood risk part of the policy and manage a central fund. In the event that a householder has to make a claim on their insurance policy Flood Re would reimburse the insurer from the central Flood Re fund.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Swanston House, 41-45 Queen Street, Belfast, BT1 6ET

4. Environmental Considerations and Environmental Performance

4.1. Environmental Considerations • We have made the enquiries referred to in the terms of the Engagement. • We have been provided with a copy of a Phase I Environmental Site Assessment (ESA) dated July 2019) prepared by Delta Simons (Ref 19-1146.01) which we have reviewed. • We note that the Report provides a desk-based environmental assessment of the Property and does not include any intrusive site investigations. • The Report details the following findings:

• The Report considers both perceived and actual risks using the pollutant linkage concept, with the principal measure of risk being whether significant harm (to people, animals, property, or

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Swanston House, 41-45 Queen Street, Belfast, BT1 6ET

statutory ecological receptors) or pollution of controlled waters (surface water bodies, aquifers, coastal waters, or territorial waters) is being caused, or whether there is a significant possibility of such harm being caused. • The Report provides the following ‘Land Contamination Risk & Liability Assessment’:

• The Report states the following recommendations:

• Save for the above, our enquiries have provided no evidence that there is a significant risk of contamination or other adverse environmental issues in respect of the Property. • Other than as referred to above, we have made no investigations to establish if there is existing or potential contamination or other adverse environmental issues and, in practice, a purchaser may undertake further investigations. • If it is subsequently established that contamination or other adverse environmental issues exist at the Property or on neighbouring land, or that the premises have been or are being put to a contaminative use, this might reduce the value now reported. You are advised to ensure your legal adviser takes up the usual enquiries on your behalf in respect of possible contamination or other adverse environmental issues before entering a financial commitment regarding the Property.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Swanston House, 41-45 Queen Street, Belfast, BT1 6ET

4.2. Environmental Performance • Energy Performance Certificates (EPCs) must be produced for all properties before being marketed for sale or lease. • The Energy Performance of Building (Certificate and Inspections) (Amendment) Regulations (Northern Ireland) 2014 establish a minimum level of energy efficiency for privately rented property. The Minimum Energy Efficiency Standards (MEES) Regulations are effective from 1 April 2018. The regulations prohibit the granting of a new tenancy or lease renewal of privately rented residential or business premises which do not have an Energy Performance Certificate (EPC) rating of 'E' or above. • From April 2020, all privately rented residential property will be affected, followed in April 2023 by all privately rented commercial property even where there has been no change in tenancy arrangements. In both cases, properties will be affected even where a lease is already in place and a property is occupied by a tenant. • We are not able to comment on the quality or accuracy of a specific EPC and we would advise undertaking your own quality assurance measures. We are not qualified to make an assessment of costs associated with improving non-compliant properties.

Energy Performance Certificate • We have checked the Northern Ireland Department of Finance Domestic and Non-Domestic Energy Performance Certificate (EPC) Registers. • We have not identified any EPC assessments for the Property. • We recommend your legal advisors ensure EPC assessments are completed for the for the Property.

5. Statutory Matters • We have made the enquiries referred to in the terms of the Engagement.

Town Planning

Overview

a. Local planning authority Belfast City Council

b. Current planning use Student Residential

c. Listed Building status? No

d. Conservation Area? Yes

e. Outstanding applications? None

Planning History • Planning permission for the Property’s construction was approved by the Local Authority as follows:

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Swanston House, 41-45 Queen Street, Belfast, BT1 6ET

Date Status Details

27 June 2016 Approved Planning Ref: LA04/2015/1252/F Erection of purpose built managed student accommodation comprising 114 studios and 203 cluster rooms (317 units in total), retail unit (class A1) on ground floor of Queen Street, common room, management suite on ground floor of Wellington Place, reception, laundry room, cycle store, plant room and bin storage area. Retention of existing facades of 41-49 Queen Street, 24 College Street and 29 Wellington Place and demolition of buildings behind. The proposed building is 5 storeys behind Wellington Place façade, 7 storeys behind Queen Street façade with a setback floor at level 8 and 13 storey tower setback from the Queen Street frontage

• We confirm that the Property as approved under the above planning permission is the Property to which this valuation relates. • The approved planning permission was subject to 16 Conditions. • We understand from the provided Certificates of Title prepared by Tughans (Ref PA/0MIS0302) that all Conditions have been complied with. • The planning permission was further subject to a Section 76 of the Planning Act (Northern Ireland ) 2011 dated 24th June 2016 between Lacuna WJ Limited (1) and Belfast City Council (2) which provided for: » A public realm contribution of £142,650 payable before the commencement of development; » A façade retention system which must be approved, retained and not removed without the Council's consent; » A community apprenticeship provision; » A restriction on being student-only accommodation, » An occupation limit to be commensurate with the number of rooms; » Various notification requirements. • The provided Certificate of Title confirms that the public realm contribution has been paid and that the façade retention system has been approved. • Further to the above we are aware of the following additional planning permissions relating to the Property:

Date Status Details

25 June 2018 Approved Planning Ref: LA04/2018/1608/DCA Discharge of condition No. 2 LA04/2015/1250/DCA.

29 Nov 2017 Approved Planning Ref: LA04/2017/1383/F Relocation of main entrance from the corner of Queen Street and College Street onto Queen Street, bin store to serve retail unit on Queen Street, replacement of door with gate on Queen Street elevation, provision of backup generator in courtyard 2, alteration to brick detailing on Wellington Street elevation (modifications to previously approved LA04/2015/1252/F)

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Swanston House, 41-45 Queen Street, Belfast, BT1 6ET

• We are not aware of any further planning applications in respect of the Property.

Policies Affecting the Property • Planning policy for the area is contained within the Belfast City Council Local Development Plan. • The Property is located in an area zoned which is not zoned for any specific use in the Plan.

Other Statutory Matters • The Property is not listed but is situated within the Belfast City Centre Conversation Area. • We are not aware of any road scheme or compulsory purchase order that could affect the Property. • The Property has frontages onto Queen Street, College Street and Wellington Street which we understand have each been adopted by the Local Highway Authority and maintained at the public’s expense.

6. Taxation

Non-Domestic Rates • We have checked the Northern Ireland Department of Finance website. • We have identified the following Net Annual Value (NAV) Assessment for the Property:

Net Annual Value 2019/20 Rates Address Description Payable

41-45 Queen Street, Halls of Residence £223,000 £136,952.11 Belfast, BT1 6EA

• For the 2019/20 year, the property rates payable for the Property total £136,952.11 as calculated by the Department of Finance Rates Calculator (https://lpsni.gov.uk/calc/index.htm) • We would expect the commercial unit to be assessed and given an appropriate NAV assessment once fitted out by an incoming tenant.

Domestic Rates • We have checked the Northern Ireland Department of Finance website. • We have not identified any domestic rates assessments at the Property.

Value Added Tax • We have not been advised as to whether an election has been made to waive exemption to VAT in respect of the Property. • The capital valuations and rentals included in this Report are net of Value Added Tax at the prevailing rate.

Capital Allowances • There may be capital allowances available to a purchaser of the Property. We have not considered the benefits of these in our valuation. Should these be available, this may assist the marketing of the Property.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Swanston House, 41-45 Queen Street, Belfast, BT1 6ET

7. Tenure and Occupational Interests

7.1. Title

Overview

Title no(s) AN216932 & AN220305

Type of Tenure Freehold

Any material encumbrances or unduly onerous / unusual None of which we are aware easements, restrictions, outgoings or conditions?

Any title characteristics likely to have an adverse impact on None of which we are aware value, either now or over the proposed loan term?

• We have made the enquiries referred to in the terms of the Engagement. • We have been provided with a Draft Certificate of Title prepared by Tughans (Ref PA/0MIS0302) which we have reviewed. • We can confirm that the Property as detailed within the Draft Certificate of Title is the Property which we have valued and to which this Valuation Report relates. • We further confirm that we have considered all content within the provided Draft Certificate of Title in undertaking our valuations. • We understand that the Property is held Freehold under Title Numbers AN216932 & AN220305. • The extent of the Freehold titles is shown below:

Titles AN216932 & AN220305

• Save as disclosed in the Certificate of Title, we understand that the Freehold titles are free from restriction as to use, title or occupation and free from any other restriction which may affect value. • The Certificate of Title does however detail the following:

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Swanston House, 41-45 Queen Street, Belfast, BT1 6ET

29 Wellington Place, Belfast • The element of the Property comprising 29 Wellington Place, Belfast is subject to a lease dated 11 April 1868 for an undetailed term at an annual ground rent of £50 per annum. 28-30 College Street, Belfast • The element of the Property comprising 28-30 College Street, Belfast is subject to a lease dated 11 April 1889 for an undetailed term at an annual ground rent of £50 per annum. 41-43 Queen Street, Belfast • The element of the Property comprising 41-43 Queen Street, Belfast is subject to a lease dated 10 January 1890 for an undetailed term at a current annual ground rent of £90 per annum. 45-49 Queen Street, Belfast • The element of the Property comprising 45-49 Queen Street, Belfast is subject to a lease dated 10 January 1890 for an undetailed term at a current annual ground rent of £140 per annum. Strip 6 feet 6 inches wide at the Wellington Place, Belfast • The element of the Property comprising 41-43 Queen Street, Belfast is subject to a lease dated 15 October 1920 for a term of 9,500 years at an annual rent of Peppercorn. • The Certificate details that the Tenant is obliged to carry out street works on the Premises. Title Indemnity Policies • The Certificate details the following Title Insurance Indemnity Policies in relation to the Property: • There is an insurance policy issued by Title Solv on 18th May 2015 (“TI Policy”) covering the following risks: 1. A third party challenge to the title to the Property due to rights, interests, restrictive covenants, conditions, exceptions and reservations in missing Fee Farm Grant dated 4 November 1868. 2. A third party seeking to exercise right of access through an internal doorway at level three of the Property for the benefit of the adjoining premises at Lesley House, 25-27 Wellington Place, Belfast. • The limit of indemnity is £28,400.000.00 and the policy applies to the Seller, successors in title, mortgagees and occupiers. • There is a further insurance policy issued by Countrywide Legal Indemnities on 20th November 2016 (“TI Policy 2”) covering the following risk: 1. Title to the Property may be subject to provisos that it shall not be lawful to open or keep open any windows or apertures overlooking adjoining premises. • The limit of indemnity is £28,400,000.00 and the policy benefits the current and future owners of the Property their lessees and any bank, building society or other similar lending institution holding a mortgage or charge in the Property Substation Lease • Lease of an Electrical Substation for a term of 999 years with effect from the 29 May 2018. • The lease is subject to an annual rent of Peppercorn per annum (if demanded).

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Swanston House, 41-45 Queen Street, Belfast, BT1 6ET

7.2. University Agreements • The Property does not benefit from any formal agreements with any universities or education providers.

7.3. Occupational Interests • We have been provided with tenancy information and forecast revenues for the current 2019/20 academic year by the Borrower on which we have relied. • The Property provides a total of 317 student bedspaces arranged within 114 studios and 203 en suite bedspaces. • Accommodation is let to students on Assured Shorthold Tenancies (ASTs). We have assumed that the Borrower or their Managing Agents are accredited to a Tenant Deposit Scheme (TDS). We recommend that your legal advisors confirm this position. • We are advised that the Property has achieved c.98.4% occupancy by room number for the 2019/20 academic year which is ahead of the 87.4% achieved for the 2018/19 year. • The advertised weekly rents for en-suite bed spaces is from £119 to £125 from 40 weeks for the 2019/20 academic year and up to £159 for studio rooms from 44 weeks. We note however, that the average tenancy length achieved thus far equates to 43.4 weeks for 312 rooms. • As at the date of valuation, the aggregate achieved rent for the 2019/20 academic year totals £1,713,302 based on the lettings to date. In our appraisal, we have assumed that the total income achieved will be £1,828,403 including an element of summer occupancy. • Student residents study at both the universities and most are non-UK domiciled. • The property has already achieved a very high occupancy rate which will be due in part to the low rental levels which we discuss below.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Swanston House, 41-45 Queen Street, Belfast, BT1 6ET

8. Student Market Considerations

8.1. Student Occupational Market

National Market Commentary Please refer to our National Student Market Commentary in Part A

Belfast Market Commentary • We provide a detailed overview and assessment of the Belfast Student market within the Appendices of this report. • This includes an analysis of university performance within the city, student demand characteristics, level of competition and accommodation supply for purpose-built student accommodation schemes and analysis of the pipeline of development of accommodation and its likely impact on the future lettings market. • The Cushman & Wakefield Student Accommodation Tracker records 5,851 purpose-built student accommodation bedspaces in Belfast for the 2019/20 academic year. These are predominantly provided by Queens University, accounting for 60% of all purpose-built accommodation in the City, 7% by Stranmillis University College (who also offer accommodation to other students) with and the private sector accounting for the remaining 33% accommodation. • Ulster University does not currently offer any accommodation to students in the city centre except through the recent nomination agreement at the Student Roost property located in Great Patrick Street • Belfast as a market behaves fundamentally differently to the UK mainland, and this has led to issues for some providers. The market is dominated by HMOs which are generally of a low quality, with many houses in a poor state of repair. • The City Council has been open to the development of purpose-built stock and this has led to an acceleration in private sector development. • A misreading of the market with the delivery of Ulster University’s city campus being delayed meaning students may not now move from Jordanstown until 2022, and large-scale development in a short period of time has led to some adjustment of rents for the 2019/20 academic year. Long-term cultural change is required in Belfast to increase overall demand and the attractiveness of purpose-built stock in the City to draw students away from the HMO market. • The demand pool of students within the city, taking into account the University and private sector supply of accommodation, and latest HESA student number data (2017/18) (excluding students who are unlikely to demand accommodation in the City) suggests a student:bed ratio for the city of 2.2:1, although we would caution that a period of cultural change needs to occur in the market before this ratio can be considered comparable with mainland UK markets. • By way of comparison C&W’s calculation of the nationally observed average student:bed ratio is 2.0:1. We note however that the SBR is based on the latest available 2017/18 HESA data and bedspace numbers as at the same date and may not reflect current demand levels. • Circa 63% of private bed spaces in the City are en-suite (direct let and nominated). Studio rooms make up 28% with standard rooms comprising 6% of the total private stock in the City. • Total university accommodation comprises 60% en suite rooms with standard rooms comprising 31% of accommodation. The remaining 9% of accommodation comprising of studios and apartments.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Swanston House, 41-45 Queen Street, Belfast, BT1 6ET

• In terms of rents in the direct let sector, C&W has calculated an average 2019/20 rent for an en-suite bed spaces in Belfast to be c.£125 per week (including the Property). Studios are on average £153 per week. Let lengths for en-suite rooms are generally offered on either 44 or 51 weeks whilst studios are predominantly let for 50 or 51 weeks with shorter term lets available. • Student Roost operates 3 schemes in the City (including the Property) which are priced similarly and as such the operator has a strong influence on pricing in Belfast and after a period of digestion and cultural change, lower rents this year has led to high occupancy levels and the market appears to be healthy again.

• En-suite beds at Swanston House Street are offered at £119 to £125 per week, placing them to the lower end of the market. Studio rooms are offered at between £135 and £159 per week, targeting the lower to mid-segment of the studio accommodation market in the City. • Considering the quality and location of the Property, we consider there to be the opportunity for good rental growth from a low rental base over the coming years. • We refer you to the detailed Belfast student market analysis within the appendices of this report.

Belfast Retail Market

• The current occupational market for retail throughout Northern Ireland remains challenged on a sectoral level with traditional mall shopping and town centres suffering continued low levels of demand.

• This weakened demand scenario is not merely a retail property phenomenon but rather has developed as a consequence of wider, difficult economic conditions and competition from the internet.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Swanston House, 41-45 Queen Street, Belfast, BT1 6ET

• Whilst there is evidence of economic improvement, Northern Ireland’s relatively small economy and reliance on the public sector will temper the rate of change. This remains an occupier’s market in the short to medium term at least and rents need to be affordable and leasing terms flexible.

• In the aftermath of the Primark fire however, Belfast City Centre is showing signs of improvement, with the retailer opening a second city centre store in April. House of Fraser also announced a new ‘long-term’ lease in Victoria Square providing further reasons to be optimistic.

• In terms of occupation, flexibility is the key going forward. Investors increasingly have accepted the realisation that long term guaranteed income is not a feature of the retail market but rather in order to benefit from the potential upside of retail and rental income increasingly skilled asset management will be required.

• 2018/19 has seen impetus from retailers to act positively by making strategic occupational property direction decisions against a stronger macroeconomic position. To put it simply, some retailers will use the next three to five years to rationalise UK store coverage, whereas other retailers are in growth mode and taking advantage of readily available finance to expand their business.

Competing Student Schemes

Elms BT1

Operator: Queen’s University Belfast No. Beds: 804

Specification Good quality

Room Type Let Length 2019/20 Rent P/Wk

Ensuite 38 £124

Ensuite 39 £124

Ensuite 51 £124

Studio 38 £149

Studio 39 £149

Studio 51 £149 Comments: • Substantial purpose-built accommodation within the boundary of Belfast’s commercial core. The scheme is university operated and finished to a good standard with a reasonable level of amenities including: common lounge (including coffee bar) and private study rooms. • Located within a 15-minute walk of Queen’s University main campus.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Swanston House, 41-45 Queen Street, Belfast, BT1 6ET

Elms BT2

Operator: Queen’s University Belfast No. Beds: 476

Specification Good quality

Room Type Let Length 2019/20 Rent P/Wk

Ensuite 38 £124

Ensuite 39 £124

Ensuite 51 £124

Studio 38 £149

Studio 39 £149

Studio 51 £149

Comments: • Substantial purpose-built accommodation within the boundary of Belfast’s commercial core. The scheme is university operated and finished to a good standard with a reasonable level of amenities including: common lounge (including coffee bar) and private study rooms. • Located within a 15-minute walk of Queen’s University main campus.

Botanic Studios

Operator: Fresh Student Living No. Beds: 156

Specification Good quality

Room Type Let Length 2019/20 Rent P/Wk

Studio (standard – Deluxe) 50 £138 up to £180

Comments: • Relatively modern purpose built 100% student scheme with a range of configurations. Reasonable amenity space including a common room, games room and separate study room. Located in between Belfast City Centre and Queen’s University Campus. • Located within a 10-minute walk of Queen’s University campus. • Located within a 25-minute walk of Ulster University’s Belfast campus.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Swanston House, 41-45 Queen Street, Belfast, BT1 6ET

John Bell House

Operator: Student Roost No. Beds: 413

Specification Good quality (more unique conversion style)

Room Type Let Length 2019/20 Rent P/Wk

Ensuite 44 £125/up to £139

Ensuite 51 £125/up to £139

Studio 39 £159.00

Studio 44 £149.00

Studio 51 £149/up to £169

Comments: • Conversion of a prominent period style property offering a range of ensuite and studio accommodation. Reasonable amenity space including a ‘grand hall’ common room and ‘drawing room’ study area. Located to the west of Belfast’s commercial core. • Located within a 20-minute walk of Queen’s University campus. • Located within a 15-minute walk of Ulster University’s Belfast campus.

• Studio rents in Belfast range from £135/week to £180/week on 44-51 week tenancy lengths. En-suite rents range from £99/week to £139/week of a mixture of tenancy lengths. With the main university campuses being located to the north and south of the city centre, the majority of the PBSA schemes are located on the periphery of the commercial core. Elms BT1/2 is the single largest PBSA scheme. • Queens University’s own accommodation listed above are letting en-suite rooms for £124 per week from 39 to 51 week periods. Botanic Studios operated by Fresh is a modern PBSA and is located closer to Queens University. Comprising of just a studio scheme, the rents currently advertised range from £153 to £180 per week. We believe that competing good quality PBSA rooms are available for rents at a much higher level than the those advertised at the Property. • In our judgement, the rents at the Property have been set up to 15% discount to the market. We believe this strategy has been adopted to boost occupancy, gain valuable traction and establish the Property’s presence in the market. • We are aware that there are a number of schemes being developed and planned in Belfast. Our market report states that 3,752 rooms are in the pipeline and we are aware that approximately two large schemes are expected to begin trading this year. • In our view, the new PBSA developments in and around the city core will lead to a valuable critical mass of students which should encourage students to explore the PBSA option to the more preferred HMO route. We are aware that rooms may be let at relatively low rents in houses around the area close to Queens University, but these are often of sub standard quality. We believe that student pattern through the UK to tend towards a ‘one rent provides all’ option will start to impress upon the students in Belfast. While this

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Swanston House, 41-45 Queen Street, Belfast, BT1 6ET

cultural shift may be slow to start we believe from discussions with other operators that momentum is gaining. • Due to the number of new developments coming on stream, there may indeed be short term absorption issues for some schemes but with the right marketing and pricing strategy, the Property should continue to achieve high occupancy given that it will become one of the more established PBSA properties in a good city centre location. • We refer you to the detailed Belfast student market analysis within the appendices of this report.

8.2. Student Investment Market • We provide a detailed comparable analysis of investment transactions and achieved yields in the market place within the front section this report. • We set out below recent comparable investment transactions to the Property:

Address Date Price Price Per Yield Comment/Comparison (£) Bed (£) (%) The Refinery, Under Offer £33,650,000 £82,678 5.68% Forward Fund Opportunity which Leeds (Asking) (Asking) we understand is to be under offer above asking price. Development of a prime student accommodation opportunity providing 407 bed spaces (368 cluster rooms, 29 studios and 10 accessible rooms).

Redvers, Under Offer £22,000,000 £96,916 6.10% Recent office to student Furnival Gate, (Asking) (Asking) conversion providing 227 studios Sheffield situated in a prime position in central Sheffield. Understood to be under offer at c.6.25% NIY.

St Mark's Under Offer £8,975,000 £77,370 6.00% Purpose-built scheme completed Apartments, in 2013 and refurbished in 2016. Lincoln Comprises 116 beds across a mix of large studios, premium studios, twodios and en suite cluster flats situated in a strong location close to the University of Lincoln and the station.

Castlegate Haus, October £10,200,000 £76,692 5.75% Castlegate Haus is a FH property Nottingham 2018 located in the city centre 300 metres from The market Square and 750 metres to the Newton Building within the centre of the Nottingham Trent University city campus. The property comprises 133 beds of which 69 are studios. It was acquired by Centurion.

Ernest Place, September £34,000,000 £93,925 6.05% Recently completed PBSA Durham 2018 development to the fringe of Durham city centre. Scheme provides high quality accommodation of 362 student bedspaces over a mix of 5 and 6- bed apartments and studios.

Furnival Gate, August £32,000,000 £70,330 6.00% Forward Fund Opportunity for a Sheffield 2018 development of 455 student beds

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Swanston House, 41-45 Queen Street, Belfast, BT1 6ET

Address Date Price Price Per Yield Comment/Comparison (£) Bed (£) (%) with a mix of clusters and studios, all within a 22 storey purpose built student accommodation scheme.

800 Bristol Road, August £14,620,000 £141,950 5.50% Acquired by Malaysian pension Selly Oak, 2018 fund Kumpulan Wang Persaraan Birmingham Diperbadankan (KWAP) and 90 North Real Estate Partners. Scheme provides 103 studios completed for 2017 academic year located within walking distance to the University of Birmingham.

City Residence, April £7,550,000 £60,890 6.11% Acquired by St Brides Haxby Road, 2018 Partnership. The Property is fully York let to York St John University until September 2026 producing a current rental income of £491,969 per annum. The Property comprises 124 en-suite bedrooms.

Tyne Student Living, June £19,500,000 £50,518 6.25% The property comprises 386 bed Newcastle-Upon- 2018 spaces in a mixture on en-suite Tyne clusters, studios and one bedroom apartments.

Albert Place, April £10,400,000 £77,615 6.75% Albert Place has been sold by Newcastle 2018 Crosslane Student Developments to real estate specialists Kout Advisory, on behalf of a Middle Eastern investment group. Albert Place provides 134 student bed spaces over a mix of cluster and studio rooms.

Hydrogen Building, March £18,000,000 £109,756 5.60% Hydrogen is a converted 1980s Nottingham 2018 office building providing 164 studios of a good specification. It is well located in the town centre within close proximity to Nottingham Trent University. It was acquired by Brookfield Asset Management in is operated under their Student Roost brand.

Wellgate House, March £6,200,000 £96,875 6.20% Wellgate House is a former 8 200 Cowgate, 2018 storey office building that has Edinburgh been converted to student accommodation. The scheme is well located in the city centre and offers good quality accommodation in a mixture of en-suite clusters, studios and one bedroom apartments.

Fairchild House, February £4,100,000 £91,111 6.10% This property was part of a 3 Southampton 2018 property portfolio. It comprises a former office building converted to provide 45 studio bedrooms. The rooms are finished to a good

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Swanston House, 41-45 Queen Street, Belfast, BT1 6ET

Address Date Price Price Per Yield Comment/Comparison (£) Bed (£) (%) standard and are of a good size. It was acquired by Property Partner.

Bromsgrove House, January £15,000,000 £107,143 6.42% Birmingham Properties Group Bromsgrove St, 2018 sale to Singaporean investor Birmingham Perfection Point. New build completed in September 2017 with 140 beds and ground floor unit. Long Leasehold interest.

Brassfounders, November £35,500,000 £81,235 5.70% UNITE Students has purchased Sheffield 2017 Brass Founders from Crosslane Student Developments for a reported £35.5m. The scheme comprises of 3 residential blocks forming a U-shape around a landscaped courtyard providing a total of 437 bedspaces across a mix of en-suite cluster bedspaces and studios. The scheme opened for the 2017/18 academic year and has achieved full occupancy. Queens Court, October £49,200,000 £124,557 6.20% Converted offices by WP Carey, Reading 2017 the property comprises 395 bedrooms with a significant weighting to cluster en-suite bedrooms. Hines Global REIT II acquired the investment. Exeter One, Exeter October £18,575,000 £84,817 5.85% The scheme is located adjacent 2017 to the University of Exeter’s main campus and provides a total of 219 bedspaces within a mix of en- suite clusters and studios. The Property benefits from a 1-year lease with the University of Exeter for the 2017/18 academic year in relation to 56 en-suite bedspaces (25% of accommodation).

Investment Considerations • We consider Belfast to be a good regional university city and therefore the benchmark for our valuation is in the order of a 6.00% NIY for prime PBSA in the city. • The Property comprises a newly constructed purpose-built student residential scheme providing a mix of en-suite and studio bedspaces finished to a good quality specification with high quality communal areas. • The Property is operated on a wholly direct-let basis. • There have not been any recent investment transactions in Belfast. • The investment comparables show a range of yields between c.6.00% and 6.50%, reflective of each comparable scheme’s individual size, location and specification within its respective market. • Having regard to the Property’s location, development pipeline and current investor demand for student investments in Belfast, we would expect the Property to achieve a yield towards

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Swanston House, 41-45 Queen Street, Belfast, BT1 6ET

the lower range of the comparables once fully stabilised and achieving appropriate market rents within the City given its new-build nature and good quality specification. • We would refer you to the above relevant section of this report in relation to the student investment market.

Consideration Period • We consider that the Property would have been marketed for a period of 6 to 12 months prior to the Valuation Date in order to achieve our opinion of Market Value.

Marketing Period / Saleability • We consider it would take approximately 6 to 12 months to achieve a sale of the Property in the open market starting at the Valuation Date. • The purchaser type is likely to be a mix of regional and national student operators as well as funds. • We consider market conditions are likely to remain stable over the Marketing Period.

9. Valuation Approach and Opinions of Value

Background • It is our opinion that a trading property of this nature, requiring specialist operational expertise, is most likely to be sold to a purchaser who would employ the services of a reputable student accommodation operator, retained under a formal management agreement or to a purchaser who already has their operational platform. • Where possible our opinions of value are based on analysis of recent relevant market transactions supported by market knowledge derived from our agency experience. Due to the nature of the Property being within the ‘alternative’ sector, there is limited evidence particularly for solo investment transactions. As such a greater than usual degree of professional judgement was applied in arriving at our opinion of value. • In arriving at our opinion of Market Value we have considered the likely rent, cost and yield profile in the current market of the Property. • Our valuation calculations are included at the rear of this report in Appendix B.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Swanston House, 41-45 Queen Street, Belfast, BT1 6ET

10. Market Value

10.1. Market Value Our opinion of the Market Value of the Property has been primarily derived by adopting the assumptions highlighted below:

Valuation Metrics:

Blended occupancy assumption Year 1 after 1% accounted for bad 97.00% debts and discounts Blended occupancy assumption Year 2 after 1% accounted for bad 97.00% debts and discounts Blended occupancy assumption Year 3 after 1% accounted for bad 97.00% debts and discounts Given the lettings achieved to date and the operator’s strategy to discount rents, we believe that occupancy levels should be high for the 2019/20 year. The imminent opening of the new Ulster University’s campus within an easy walking distance of the Property will be a positive outcome for this location and scheme. Assumed Year for Stabilised Occupancy 1

Rental growth assumption Year 1 4.50% Rental growth assumption Year 2 6.50% Rental growth assumption Year 3 7.50% The rental growth rate that we have adopted is expected to increase the rents to a market level over the next four to five years.

Summer income Year 1 £95,144 Ancillary income Year 1 £39,609 Total operating cost per room (per annum including management fees £1,905 and any rent) n.b. we have assumed a management fee of 4.5% of effective gross revenue Total operating cost leakage from effective gross revenue 33.03% We have adopted operating costs which equate to circa £1,900 pa per room which reflects a high leakage of 33%. This is due to the relatively low rental base as explained previously. The Borrower provided operating costs at over £2,380 per room which we believe is high and a hypothetical operator is likely to look to reduce this substantially in line with other markets. We have been informed that there remains, however, a council tax obligation which the Borrower is contesting.

Capital expenditure deducted at entry/Day 1 £0 Total capital expenditure deducted in the cashflow (before discounting) £0 Total transaction costs on Entry 2.80% Discount rate (for the PBSA element) 7.50 Exit capitalisation rate and GICR (for the PBSA element) 6.00%

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Swanston House, 41-45 Queen Street, Belfast, BT1 6ET

Adopting the assumptions stated above, our valuations reflect the following resultant rents, NOI and yields:

Net operating income - Year 1 £1,224,499 Net initial yield - Year 1 4.73% We consider prime stabilised yields in Belfast to be 5.75% to 6.0%. Our adopted GICR reflects the quality of the location and building but also the fact that the property had a lower occupancy in the 2018/19 year. The low NIY reflects the low rental base which we have assumed will increase to achieve a reversionary yield of 6.0% in the fifth year.

We also consider that the capital value per room between £70,000 to £80,000 per room is within the range we would expect for a PBSA property of this type and location. Market Value (PBSA element only) £25,170,000 Market Value per room £79,401

Conclusions – PBSA Element • In conclusion, we would expect the property to attract pricing in the order of a 6.0% net yield when rents climb towards a market level which we expect will be in the fourth year of the cashflow. • When PBSA properties are traded, often the operating platform changes to another management company that the purchaser may prefer. Sometimes this transition causes disruption in the letting process which may impact the NOI and therefore the Market Value. It is therefore prudent to manage such transitions very carefully to mitigate the impact on occupancy, costs and value.

Conclusions – Retail Element

Description Ground floor lock up commercial unit.

Tenant Vacant however terms provisionally agreed with new operator.

Lease Length Assumed 10-year lease with break at year five and 6 month rent free.

Market Rent We have adopted a rent of £31,000 per annum.

Size 1,940 sq. ft.

Rent per sq. ft. £15.97.

Key Rental Comparable Costa, Unit 3, Capital House, 34 Wellington Place, Belfast: 2,875 sq. ft. retail unit over ground floor. Central location. Larger unit that the subject property. The Property is let for a term of 15 years from February 2018 at a stepped rent of £45,000 in years 1-3 raising to £47,500 in years 4&5 reflecting an overall rent per sq. ft. of £15.22.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Swanston House, 41-45 Queen Street, Belfast, BT1 6ET

Key Yield Comparable Greggs, 85 Bow Street, Lisburn: Situated in a strong city centre location at the corner of Bow Street and Market Place, Lisburn. Let to Greggs Plc by way of a 10 year lease at an initial rent of £28,500 pa. Tenant has option to break at the end of the 6th year. Sold in October 2017 reflecting a NIY of 6.20%. • We have considered the overall size, quality and location Methodology of the property in the context of the marketplace. • The property occupies a fairly prominent location on Queen Street, however the area would be considered a secondary retail location, in the context of Belfast city centre. • We have given further consideration to the likely type of purchaser operating within the marketplace for properties of this type and in our opinion the properties would appeal to investors and owner occupiers, given the assumption of vacant possession throughout. • The valuation has been assessed on the basis of an investment appraisal, taking into account the prevailing investment market for retail accommodation and taking into account the specific attributes of the subject premises. This has been benchmarked using a capital rate analysis for owner occupation. • We have been advised that the property is currently under offer to Red Groomswear on the basis of a new 10 year lease, with break at year 5 at a rent of £31,000 per annum, subject to a 6 month rent free period and that this has been recommended for acceptance by the marketing agent. • We have therefore adopted a 3 month void period to complete this letting. The proposed rent of £31,000 pa is in line with our assessment of rental value, with the accommodation having been openly marketed and we have reflected the proposed lease terms. We have applied an equivalent yield of 7%, producing a Market Value of £396,000 or a rounded £400,000. Yield / Cap Rate Equivalent yield of 7%.

Market Value £400,000. (Rounded)

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Swanston House, 41-45 Queen Street, Belfast, BT1 6ET

Market Value assuming Residential SDLT with MDR Our opinion of the Market Value of the interest in the Property, having regard to trading potential, assuming a fully equipped operational entity as outlined in the Property Record is:

(Twenty Five Million, Five Hundred and Sixty Five £25,565,000 Thousand Pounds)

11. Market Value Based on Special Assumptions

11.1. Vacant Possession Value

Approach • This basis requires us to make a Special Assumption that the Property is available with full vacant possession. There are no other Special Assumptions to be made (such as an outstanding dilapidations claim, or that the buildings are in a different state of condition). • As the start of the academic year is September/October 2019 and there are only six months left in the current cycle as at the valuation date, we would anticipate that a purchaser on vacant possession would adopt the following assumptions:

Market Value on the Special Assumption of Vacant Possession:

Blended occupancy assumption Year 1 40.00% Blended occupancy assumption Year 2 60.00% Blended occupancy assumption Year 3 90.00% Assumed Year for Stabilised Occupancy 4

Summer income Year 1 £111,001 Ancillary income Year 1 £16,167 Total operating cost per room (per annum including management fees £1,356 and any rent) n.b. we have assumed a management fee of 4.5% of effective gross revenue Total operating cost leakage from effective gross revenue 52.52% Capital expenditure deducted at entry/Day 1 £0 Total transaction costs on Entry 2.800% Discount rate (for the PBSA element) 7.500% Exit capitalisation rate (for the PBSA element) 6.000% Net operating income - Year 1 £425,453 Net initial yield - Year 1 1.792% Market Value (PBSA element only) £21,100,000 Market Value per room £66,562 Summer income can be expected to be relatively high but then reducing to a more stabilised position of 15% by year 3. We assumed rental growth to be at a lower level than that adopted for our opinion of Market Value. The lower overall occupancy should lead to lower operating costs which we have assumed rises as letting velocity increases.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Swanston House, 41-45 Queen Street, Belfast, BT1 6ET

• We have assumed all other assumptions remain unchanged to those adopted for our opinion of Market Value above. • It should be noted that there are no comparable transactions in the market for properties traded with vacant possession. We have therefore taken a view when adopting the assumptions made above to arrive at a value that in our opinion reflects a reasonable discount to the Market Value. • As at the date of valuation the commercial units are vacant. The approach taken above, therefore remains unchanged. Special Assumption – Vacant Possession assuming Residential SDLT with MDR Subject to the contents of this report and based on values current as at the valuation date, we are of the opinion that the Market Value as a fully equipped operational entity, having regard to future trading potential, of the interest in the Property detailed in the Property Record, with the Special Assumption as defined above is:

(Twenty One Million, Four Hundred and Ninety Five £21,495,000 Thousand Pounds)

12. Suitability for Loan Security

Suitability for Loan Security In our opinion, subject to the comments and assumptions contained below and elsewhere in this Valuation Report, the Freehold interests in the Property provides reasonable security for the purposes of a loan over a period of 5 years (subject to the adequacy of capital and income cover). This is without opinion as to the commercial decision to lend, which remains with the Bank.

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Cushman & Wakefield | Bank of America Merrill Lynch Appendix A: Maps and Plans Valuation Date: 12 July 2019 Swanston House, 41-45 Queen Street, Belfast, BT1 6ET

APPENDIX A: MAPS AND PLANS

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Belfast

Ulster University 11 min walk

Swanston House

21 min walk

Queen’s University Belfast

Ulster University

Swanston House

Cushman & Wakefield | Bank of America Merrill Lynch Appendix B: Valuation Calculations Valuation Date: 12 July 2019 Swanston House, 41-45 Queen Street, Belfast, BT1 6ET

APPENDIX B: VALUATION CALCULATIONS

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BAML PROPERTY VALUATION AS AT 12 JULY 2019 Swanston House, Queen St, Belfast Executive Summary - Inputs, Assumptions and Value Results

A. GENERAL INPUTS D. VALUATION RESULTS 1 Property Swanston House, Queen St, 1 Market Value : Commercial Element 395,000 2 Client BelfastBAML 2 Market Value : Student Accommodation 25,170,000 3 Property reference number SH 3 Market Value : Total 25,565,000 4 Tenure Freehold 5 Property owner 6 Operator Student Roost Student Accommodation Only: 7 Property type Direct Let 4 Total number of units 317 8 Valuation date 12 Jul 2019 5 Value per unit 79,401 9 Opening date 01 Sep 2019 6 Value per Sq Ft (on the Gross Internal Area) #DIV/0! 10 Years since opening -0.14 11 Site area (hectares) 0.000 12 Site area (acres) 0.000 Running Yields (gross of capital reserves and costs in the cashflow, but unadjusted for capex): Adj for capex: 13 measurement units Sq Ft 7 Net yield (reflecting income for the next 12 months) - Year 1 1,224,499 4.732% 4.732% 14 Currency GBP 8 Net yield (reflecting income for the next 12 months) - Year 2 1,291,885 4.993% 4.993% 15 Valuation Rounding 10,000 9 Net yield (reflecting income for the next 12 months) - Year 3 1,398,250 5.404% 5.404% 16 DFC Period (in years) 10 10 Net yield (reflecting income for the next 12 months) - Year 4 1,530,980 5.917% 5.917% 11 Net yield (reflecting income for the next 12 months) - Year 5 1,612,898 6.233% 6.233% B. OTHER PRINCIPAL INPUTS 12 True net initial yield (reflecting income for the next 12 months after 1,224,499 4.732% all capital expenditure in the cashflow) – Year 1 1 Occupancy - term: Year 1 98.00% 13 Net yield - reflecting "in place" income 1,224,499 4.732% 4.732% 2 Occupancy - term: Year 2 98.00% 14 Net yield - reflecting estimated income for the next academic year 1,284,516 4.964% 4.964% 3 Occupancy - term: Year 3 98.00% 4 Occupancy - out of term: Year 1 30.00% No Growth Reversionary Yield & Estimated Net Equivalent Yield : 5 Occupancy - out of term: Year 2 30.00% 15 Net reversionary yield (gross of capital reserves and costs in the 1,224,499 4.732% 4.732% cashflow, but unadjusted for capex) on a no growth basis 6 Occupancy - out of term: Year 3 30.00% 16 Estimated Net Equivalent Yield (cashflow gross of capital reserves Not Calculated and costs, but unadjusted for capex. Annually in arrears basis) 7 Student related income - GICR for valuation 6.000% 8 Student related income - Adj for exit yield 0.000% i) Weighted average revenue data for year 1: 9 Student related income - Exit Yield 6.000% 17 Revenue - term time unit income only (incl noms, excl other adjmts) 1,693,650 p.a. 10 Student related income - Discount Rate for DCF 7.500% 18 Revenue - all income (incl noms and other adjmts) 1,828,403 p.a. 11 Student related income - Rental growth rate - Year 1 4.500% 19 Operating costs & Leakage % (excluding management fees and rent) 521,626 p.a. 28.53% 12 Ancillary income - Growth rate - Year 1 2.500% 20 Operating costs & Leakage % (including management fees and rent) 603,904 p.a. 33.03% 13 Commercial income - Rental growth rate - Year 1 2.500% 21 Net cashflow before capital reserves and capital costs 1,224,499 p.a. 14 Operating costs - Cost inflation rate - Year 1 2.000% 22 Net cashflow after capital reserves and capital costs 1,224,499 p.a. 15 Head rent - rent inflation rate - Year 1 2.500% 16 Student purchaser's costs (on entry) 2.800% Ii) Weighted average revenue data for year 1 - per unit: 17 Student purchaser's costs (on exit) 2.800% 23 Revenue - term time unit income only 5,343 p.a. per unit 18 Commercial purchaser's costs 4.150% 24 Revenue - all income 5,768 p.a. per unit 19 Disposal costs for the exit calculation 1.250% 25 Operating costs (excluding management fees and rent) 1,646 p.a. per unit 20 Management fee : a % of gross income 4.500% 26 Operating costs (including management fees and rent) 1,905 p.a. per unit 21 Capital reserves : a % of gross income 0.000% 27 Net cashflow before capital reserves and capital costs 3,863 p.a. per unit 28 Net cashflow after capital reserves and capital costs 3,863 p.a. per unit C. VALUATION ASSUMPTIONS All figures in GBP iii) Weighted average revenue data for year 1 - per unit per term week: The cashflow is on a calendar year basis 29 Weighted average number of term weeks 43.4 weeks Income growth above applied after year 1 30 Revenue - term time unit income only 123.08 per unit per term week Expense inflation applied after year 1 31 Revenue - all income 132.87 per unit per term week Exit price based on the forward looking 12 month income at the exit point. 32 Operating costs (excluding management fees and rent) 37.91 per unit per term week Cashflow is discounted as per the DCF analysis 33 Operating costs (including management fees and rent) 43.89 per unit per term week Commercial income (if receivable) is separately valued 34 Net cashflow before capital reserves and capital costs 88.98 per unit per term week Ancillary income (related to student occupation) has been added to our cashflow projections 35 Net cashflow after capital reserves and capital costs 88.98 per unit per term week It is assumed that the management agreement is in place and the costs associated are historic Capital costs in the cashflow are not inflated from day 1 and are assumed to arise in the first month of the year Commercial Element Only: 0 36 Revenue - Year 1 30,982 p.a. 0 37 Revenue - Year 1 per Sq Ft 15.97 0 38 Net initial yield 7.53% 0 0 0

Lease expiry date (for leased assets) n/a

T:\PSQ\Shared\Valuation\Clients\Bank of America\Project Rose II & III\6. Val Calcs\[PBSA FH Model_SH.xlsx]Exec Summary © Cushman & Wakefield LLP 2019 BAML PROPERTY VALUATION AS AT 12 JULY 2019 Swanston House, Queen St, Belfast Income Analysis

SCHEME INCOME For cashflow purposes (for the next 12 months): (in GBP) % of current income adopted for year 1 of the cashflow projection: 100.00% % of income from next academic year adopted for year 1 of the cashflow projection: 0.00% n.b. applies to term time and summer income only, not commercial or ancillary income 100.00% Income data for next acdmc yr (assumes year 1 occ rate): Student Accommodation - Term Time Income n.b. discounts and doubtful debts reflected Unit type Number of Average Size Weekly rate Lettable weeks Annual income Occupancy rate Adjustment to Adjustment to Annual income Income £ per Weekly rate Annual income Occupancy rate Annual income Increase (%) units per Unit (Gross (current) (potential) (YR1) term time term time (actual) Sq Ft pa (next academic (potential) (next (YR1) (actual) (next Internal Area) income for income for year) academic year) academic year) discounts doubtful debts Ensuite Bronze 140 - 119.00 41.14 685,321.00 98.0% 0.5% 0.5% 664,898.43 n/a 124.36 716,160.45 98.0% 694,818.86 4.50% Ensuite Silver 63 - 125.00 44.90 353,625.00 98.0% 0.5% 0.5% 343,086.98 n/a 130.63 369,538.13 98.0% 358,525.89 4.50% Studio Accessible 7 - 135.00 46.00 43,470.00 98.0% 0.5% 0.5% 42,174.59 n/a 141.08 45,426.15 98.0% 44,072.45 4.50% Studio Bronze 99 - 135.00 45.40 606,742.26 98.0% 0.5% 0.5% 588,661.34 n/a 141.08 634,045.66 98.0% 615,151.10 4.50% Studio Platinum 8 - 159.00 44.43 56,513.14 98.0% 0.5% 0.5% 54,829.05 n/a 166.16 59,056.23 98.0% 57,296.36 4.50% 0 - - - - - 98.0% 0.5% 0.5% - n/a - - 98.0% - 0 - - - - - 98.0% 0.5% 0.5% - n/a - - 98.0% - 0 - - - - - 98.0% 0.5% 0.5% - n/a - - 98.0% - 0 - - - - - 98.0% 0.5% 0.5% - n/a - - 98.0% - 0 - - - - - 98.0% 0.5% 0.5% - n/a - - 98.0% - 0 - - - - - 98.0% 0.5% 0.5% - n/a - - 98.0% - 0 - - - - - 98.0% 0.5% 0.5% - n/a - - 98.0% - 0 - - - - - 98.0% 0.5% 0.5% - n/a - - 98.0% - 0 - - - - - 98.0% 0.5% 0.5% - n/a - - 98.0% - 0 - - - - - 98.0% 0.5% 0.5% - n/a - - 98.0% - 0 - - - - - 98.0% 0.5% 0.5% - n/a - - 98.0% - 0 - - - - - 98.0% 0.5% 0.5% - n/a - - 98.0% - 0 - - - - - 98.0% 0.5% 0.5% - n/a - - 98.0% - 0 - - - - - 98.0% 0.5% 0.5% - n/a - - 98.0% - 0 - - - - - 98.0% 0.5% 0.5% - n/a - - 98.0% - 0 - - - - - 98.0% 0.5% 0.5% - n/a - - 98.0% - 0 - - - - - 98.0% 0.5% 0.5% - n/a - - 98.0% - 0 - - - - - 98.0% 0.5% 0.5% - n/a - - 98.0% - 0 - - - - - 98.0% 0.5% 0.5% - n/a - - 98.0% - 0 - - - - - 98.0% 0.5% 0.5% - n/a - - 98.0% - Total / Wghtd Av 317 - 126.55 43.41 1,745,671.40 1,693,650.39 n/a 1,824,226.61 1,769,864.66 4.50%

Student Accommodation - Summer Income Unit type Number of Average Size Weekly rate Lettable weeks Annual income Occupancy rate Annual income Income £ per Weekly rate Annual income Occupancy rate Annual income Increase (%) units per Unit (Gross (current) (potential) (YR1) (actual) Sq Ft pa (next academic (potential) (next (YR1) (actual) (next Internal Area) year) academic year) academic year)

Ensuite Bronze 140 - 126.00 9.86 174,006.00 30.0% 52,201.80 n/a 131.36 181,401.26 30.0% 54,420.38 4.25% Ensuite Silver 63 - 132.00 6.10 50,688.00 30.0% 15,206.40 n/a 137.63 52,848.00 30.0% 15,854.40 4.26% Studio Accessible 7 - 142.00 5.00 4,970.00 30.0% 1,491.00 n/a 148.08 5,182.63 30.0% 1,554.79 4.28% Studio Bronze 99 - 142.00 5.60 78,755.03 30.0% 23,626.51 n/a 148.08 82,124.31 30.0% 24,637.29 4.28% Studio Platinum 8 - 166.00 6.57 8,726.86 30.0% 2,618.06 n/a 173.16 9,103.01 30.0% 2,730.90 4.31% 0 - - - - - 30.0% - n/a 7.00 - 30.0% - 0 - - - - - 30.0% - n/a - - 30.0% - 0 - - - - - 30.0% - n/a - - 30.0% - 0 - - - - - 30.0% - n/a - - 30.0% - 0 - - - - - 30.0% - n/a - - 30.0% - Total / Wghtd Av 317 133.55 7.59 317,145.89 95,143.77 n/a 330,659.19 99,197.76 4.26%

Commercial Income Term time & summer time income summary: 100.00000% 0.00000% Unit type Number of Average Size Annual rental Annual rental Total potential Source Current income Next academic Pro rata Adopted for units per Unit (Net rate (per Sq Ft) per unit annual income year spreads next 12 m Internal Area) Unit 1 1 1,940.00 15.97 30,981.80 30,981.80 Potential: n/a - - - - - Term Time 1,745,671 1,824,227 1 / 0 1,745,671 n/a - - - - - Summer Income 317,146 330,659 1 / 0 317,146 n/a - - - - - Total 2,062,817 2,154,886 2,062,817 n/a - - - - - 4.46% 0.00% Totals 1 30,981.80 Actual (based on the year 1 occupancy assumption): Term Time 1,693,650 1,769,865 1 / 0 1,693,650 Ancillary income (potential before any occupancy adjustment) Summer Income 95,144 99,198 1 / 0 95,144 Source Amount pa Comment Total 1,788,794 1,869,062 1,788,794 General other income 40,418 Ancillary Income: based on £2.50 per week per room 4.49% 0.00% n/a - n/a - n/a - Totals 40,418

© Cushman & Wakefield LLP 2019 BAML PROPERTY VALUATION AS AT 12 JULY 2019 Swanston House, Queen St, Belfast Analysis of Operating Costs

Based on the operating cosst adopted for year 1 of the cashflow projection Total units 317 Term weeks 43.4

Operating Cost Annual amount (in Cost per unit pa (317 Cost per unit per term % of total operating GBP) units) week (43.41 weeks) costs

Site Staff Costs 128,261.38 404.61 9.32 24.59% Office Costs 5,881.35 18.55 0.43 1.13% Security 38,934.00 122.82 2.83 7.46% Regular Cleaning 18,468.78 58.26 1.34 3.54% Annual Cleaning 24,269.48 76.56 1.76 4.65% Refuse and Waste 741.64 2.34 0.05 0.14% Maintenance and Repairs 29,689.72 93.66 2.16 5.69% Utilities 173,038.48 545.86 12.57 33.17% Council Tax 146,287.92 461.48 10.63 28.04% Internet and Student Services 22,260.00 70.22 1.62 4.27% Marketing 42,181.36 133.06 3.07 8.09% Other 13,112.14 41.36 0.95 2.51% Operating Expense Adjustments (121,500.00) (383.28) (8.83) -23.29% Total Operating Expenses: 521,626.26 1,645.51 37.91 100.00% Leakage % (excluding management fees and rent) 28.53%

Head Rent - - -

Management fee (a % of effective revenue) 82,278.15 259.55 5.98 Management fee as a % of effective revenue 4.50% Management fee as a % of operating expenses 15.77% Management fee per unit (pa) 259.55

Total of all expenses: 603,904.40 1,905.06 43.89 Leakage % (including management fees and rent) 33.03%

Apportionment of all expenses: Operating expenses 86.38% Head Rent 0.00% Management fee 13.62% Total 100.00%

© Cushman & Wakefield LLP 2019 BAML PROPERTY VALUATION AS AT 12 JULY 2019 Estimated Swanston House, Queen St, Belfast CAGR "in place" income Cashflow from Student Accommodation 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 from Stabilised income For next Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Day 1 CAGR at Day 1 academic Sep-20 Sep-21 Sep-22 Sep-23 Sep-24 Sep-25 Sep-26 Sep-27 Sep-28 Sep-29 Sep-30 Sep-31 Sep-32 Sep-33 Sep-34 Sep-35 Sep-36 Sep-37 Sep-38 Sep-39 Sep-40 Sep-41 Yr1 to Yr10 Yr5 to Yr10 year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 16 16 16 16 16 16

ASSUMPTIONS Rental growth - unit income 4.50% 4.50% 6.50% 7.50% 4.50% 3.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% #VALUE! #VALUE! Rental growth - ancillary income 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% #VALUE! #VALUE! Expense inflation rate 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% #VALUE! #VALUE! Head rent inflation rate 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% #VALUE! #VALUE! Occupancy - term time income 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% Adjustment to term time income for discounts (%) 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% Adjustment to term time income for doubtful debts (%) 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% Occupancy - summer income 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% Management fee : a % of gross income 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% Capital reserves : a % of gross income 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Direct let - % of revenue 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% Nominations revenue - % of revenue 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Total student units 317

REVENUES Term time income - potential 1,745,671 1,824,227 1,942,801 2,088,511 2,182,494 2,258,882 2,315,354 2,373,238 2,432,569 2,493,383 2,555,717 2,619,610 2,685,101 2,752,228 2,821,034 2,891,560 2,963,849 3,037,945 3,113,893 3,191,741 3,271,534 3,353,323 4.04% 2.70% 1,745,671 1,824,227 Summer income - potential 317,146 331,417 352,960 379,432 396,506 410,384 420,643 431,159 441,938 452,987 464,311 475,919 487,817 500,013 512,513 525,326 538,459 551,920 565,718 579,861 594,358 609,217 4.04% 2.70% 317,146 331,417 Ancillary income - potential 40,418 41,428 42,464 43,525 44,613 45,729 46,872 48,044 49,245 50,476 51,738 53,031 54,357 55,716 57,109 58,537 60,000 61,500 63,038 64,613 66,229 67,884 2.50% 2.50% 40,418 41,918

Vacancy allowance - term time income -34,913 -36,485 -38,856 -41,770 -43,650 -45,178 -46,307 -47,465 -48,651 -49,868 -51,114 -52,392 -53,702 -55,045 -56,421 -57,831 -59,277 -60,759 -62,278 -63,835 -65,431 -67,066 -34,913 -36,485 Adj to term time income for discounts (post vacancy adj) -8,554 -8,939 -9,520 -10,234 -10,694 -11,069 -11,345 -11,629 -11,920 -12,218 -12,523 -12,836 -13,157 -13,486 -13,823 -14,169 -14,523 -14,886 -15,258 -15,640 -16,031 -16,431 -8,554 -8,939 Adj to term time income for doubtful debts (post vacancy adj) -8,554 -8,939 -9,520 -10,234 -10,694 -11,069 -11,345 -11,629 -11,920 -12,218 -12,523 -12,836 -13,157 -13,486 -13,823 -14,169 -14,523 -14,886 -15,258 -15,640 -16,031 -16,431 -8,554 -8,939 Vacancy allowance - summer income -222,002 -231,992 -247,072 -265,602 -277,554 -287,269 -294,450 -301,812 -309,357 -317,091 -325,018 -333,143 -341,472 -350,009 -358,759 -367,728 -376,921 -386,344 -396,003 -405,903 -416,051 -426,452 -222,002 -231,992 Vacancy allowance - ancillary income -808 -829 -849 -871 -892 -915 -937 -961 -985 -1,010 -1,035 -1,061 -1,087 -1,114 -1,142 -1,171 -1,200 -1,230 -1,261 -1,292 -1,325 -1,358 -808 -838

Direct let - % of revenue 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Term time income - actual 1,693,650 1,769,865 1,884,906 2,026,274 2,117,456 2,191,567 2,246,356 2,302,515 2,360,078 2,419,080 2,479,557 2,541,546 2,605,085 2,670,212 2,736,967 2,805,391 2,875,526 2,947,414 3,021,099 3,096,627 3,174,043 3,253,394 4.04% 2.70% 1,693,650 1,769,865 Summer income - actual 95,144 99,425 105,888 113,829 118,952 123,115 126,193 129,348 132,582 135,896 139,293 142,776 146,345 150,004 153,754 157,598 161,538 165,576 169,716 173,958 178,307 182,765 4.04% 2.70% 95,144 99,425 Ancillary income - actual 39,609 40,599 41,614 42,655 43,721 44,814 45,934 47,083 48,260 49,466 50,703 51,971 53,270 54,602 55,967 57,366 58,800 60,270 61,777 63,321 64,904 66,527 2.50% 2.50% 39,609 41,079

Revenue adjustment (DL % of revenue not applied) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Nominations revenue - potential 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Nominations revenue - % of revenue 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Nominations revenue - actual 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Effective revenue (excluding additional income) 1,828,403 1,909,889 2,032,408 2,182,758 2,280,129 2,359,496 2,418,484 2,478,946 2,540,919 2,604,442 2,669,554 2,736,292 2,804,700 2,874,817 2,946,688 3,020,355 3,095,864 3,173,260 3,252,592 3,333,907 3,417,254 3,502,686 4.01% 2.70% 1,828,403 1,910,369 Effective revenue per unit (pa) 5,768 6,025 6,411 6,886 7,193 7,443 7,629 7,820 8,016 8,216 8,421 8,632 8,848 9,069 9,296 9,528 9,766 10,010 10,261 10,517 10,780 11,049 5,768 6,026 Effective revenue per unit (per week) 110.92 115.86 123.30 132.42 138.32 143.14 146.72 150.38 154.14 158.00 161.95 166.00 170.15 174.40 178.76 183.23 187.81 192.51 197.32 202.25 207.31 212.49 110.92 115.89

OPERATING EXPENSES Site Staff Costs -128,261 -130,827 -133,443 -136,112 -138,834 -141,611 -144,443 -147,332 -150,279 -153,284 -156,350 -159,477 -162,666 -165,920 -169,238 -172,623 -176,075 -179,597 -183,189 -186,853 -190,590 -194,401 2.00% 2.00% -128,261 -132,056 Office Costs -5,881 -5,999 -6,119 -6,241 -6,366 -6,493 -6,623 -6,756 -6,891 -7,029 -7,169 -7,313 -7,459 -7,608 -7,760 -7,916 -8,074 -8,235 -8,400 -8,568 -8,739 -8,914 2.00% 2.00% -5,881 -6,055 Security -38,934 -39,713 -40,507 -41,317 -42,143 -42,986 -43,846 -44,723 -45,617 -46,530 -47,460 -48,410 -49,378 -50,365 -51,373 -52,400 -53,448 -54,517 -55,607 -56,719 -57,854 -59,011 2.00% 2.00% -38,934 -40,086 Regular Cleaning -18,469 -18,838 -19,215 -19,599 -19,991 -20,391 -20,799 -21,215 -21,639 -22,072 -22,513 -22,964 -23,423 -23,891 -24,369 -24,857 -25,354 -25,861 -26,378 -26,906 -27,444 -27,993 2.00% 2.00% -18,469 -19,015 Annual Cleaning -24,269 -24,755 -25,250 -25,755 -26,270 -26,795 -27,331 -27,878 -28,436 -29,004 -29,584 -30,176 -30,780 -31,395 -32,023 -32,664 -33,317 -33,983 -34,663 -35,356 -36,063 -36,784 2.00% 2.00% -24,269 -24,988 Refuse and Waste -742 -756 -772 -787 -803 -819 -835 -852 -869 -886 -904 -922 -941 -959 -979 -998 -1,018 -1,038 -1,059 -1,080 -1,102 -1,124 2.00% 2.00% -742 -764 Maintenance and Repairs -29,690 -30,284 -30,889 -31,507 -32,137 -32,780 -33,435 -34,104 -34,786 -35,482 -36,192 -36,915 -37,654 -38,407 -39,175 -39,958 -40,758 -41,573 -42,404 -43,252 -44,117 -45,000 2.00% 2.00% -29,690 -30,568 Utilities -173,038 -176,499 -180,029 -183,630 -187,302 -191,048 -194,869 -198,767 -202,742 -206,797 -210,933 -215,152 -219,455 -223,844 -228,321 -232,887 -237,545 -242,296 -247,142 -252,084 -257,126 -262,269 2.00% 2.00% -173,038 -178,158 Council Tax -146,288 -149,214 -152,198 -155,242 -158,347 -161,514 -164,744 -168,039 -171,400 -174,828 -178,324 -181,891 -185,528 -189,239 -193,024 -196,884 -200,822 -204,838 -208,935 -213,114 -217,376 -221,724 2.00% 2.00% -146,288 -150,616 Internet and Student Services -22,260 -22,705 -23,159 -23,622 -24,095 -24,577 -25,068 -25,570 -26,081 -26,603 -27,135 -27,678 -28,231 -28,796 -29,372 -29,959 -30,558 -31,169 -31,793 -32,429 -33,077 -33,739 2.00% 2.00% -22,260 -22,919 Marketing -42,181 -43,025 -43,885 -44,763 -45,658 -46,572 -47,503 -48,453 -49,422 -50,411 -51,419 -52,447 -53,496 -54,566 -55,657 -56,771 -57,906 -59,064 -60,245 -61,450 -62,679 -63,933 2.00% 2.00% -42,181 -43,429 Other -13,112 -13,374 -13,642 -13,915 -14,193 -14,477 -14,766 -15,062 -15,363 -15,670 -15,984 -16,303 -16,629 -16,962 -17,301 -17,647 -18,000 -18,360 -18,727 -19,102 -19,484 -19,874 2.00% 2.00% -13,112 -13,500 Operating Expense Adjustments 121,500 123,930 126,409 128,937 131,516 134,146 136,829 139,565 142,357 145,204 148,108 151,070 154,091 157,173 160,317 163,523 166,793 170,129 173,532 177,003 180,543 184,153 2.00% 2.00% 121,500 123,728 Total Operating Expenses: -521,626 -532,059 -542,700 -553,554 -564,625 -575,918 -587,436 -599,185 -611,168 -623,392 -635,859 -648,577 -661,548 -674,779 -688,275 -702,040 -716,081 -730,403 -745,011 -759,911 -775,109 -790,611 2.00% 2.00% -521,626 -538,428 Operating expense per unit (pa) 1,646 1,678 1,712 1,746 1,781 1,817 1,853 1,890 1,928 1,967 2,006 2,046 2,087 2,129 2,171 2,215 2,259 2,304 2,350 2,397 2,445 2,494 1,646 1,699 Operating expense ratio: 28.5% 27.9% 26.7% 25.4% 24.8% 24.4% 24.3% 24.2% 24.1% 23.9% 23.8% 23.7% 23.6% 23.5% 23.4% 23.2% 23.1% 23.0% 22.9% 22.8% 22.7% 22.6% 28.5% 28.2%

NET OPERATING INCOME 1,306,777 1,377,830 1,489,708 1,629,204 1,715,504 1,783,579 1,831,048 1,879,761 1,929,751 1,981,051 2,033,694 2,087,716 2,143,151 2,200,038 2,258,413 2,318,315 2,379,783 2,442,858 2,507,581 2,573,996 2,642,145 2,712,074 4.73% 2.92% 1,306,777 1,371,942 Other expenses: Head Rent 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Management fee (a % of effective revenue) -82,278 -85,945 -91,458 -98,224 -102,606 -106,177 -108,832 -111,553 -114,341 -117,200 -120,130 -123,133 -126,211 -129,367 -132,601 -135,916 -139,314 -142,797 -146,367 -150,026 -153,776 -157,621 4.01% 2.70% -82,278 -87,426 Subtotal - other expenses: -82,278 -85,945 -91,458 -98,224 -102,606 -106,177 -108,832 -111,553 -114,341 -117,200 -120,130 -123,133 -126,211 -129,367 -132,601 -135,916 -139,314 -142,797 -146,367 -150,026 -153,776 -157,621 4.01% 2.70% -82,278 -87,426 Management fee as a % of operating expenses 15.8% 16.2% 16.9% 17.7% 18.2% 18.4% 18.5% 18.6% 18.7% 18.8% 18.9% 19.0% 19.1% 19.2% 19.3% 19.4% 19.5% 19.6% 19.6% 19.7% 19.8% 19.9% 15.8% 16.2% Management fee per unit (pa) 259.55 271.12 288.51 309.86 323.68 334.94 343.32 351.90 360.70 369.72 378.96 388.43 398.14 408.10 418.30 428.76 439.48 450.46 461.72 473.27 485.10 497.23 259.55 275.79

Total of all expenses: -603,904 -618,004 -634,158 -651,778 -667,231 -682,095 -696,268 -710,737 -725,510 -740,592 -755,989 -771,710 -787,760 -804,146 -820,876 -837,956 -855,395 -873,199 -891,377 -909,937 -928,886 -948,232 2.29% 2.11% -603,904 -625,853 Total expenses per unit (pa) 1,905.06 1,949.54 2,000.50 2,056.08 2,104.83 2,151.72 2,196.43 2,242.07 2,288.67 2,336.25 2,384.82 2,434.42 2,485.05 2,536.74 2,589.51 2,643.40 2,698.41 2,754.57 2,811.92 2,870.46 2,930.24 2,991.27 1,905.06 1,974.30 Total expenses as a % of effective revenue 33.0% 32.4% 31.2% 29.9% 29.3% 28.9% 28.8% 28.7% 28.6% 28.4% 28.3% 28.2% 28.1% 28.0% 27.9% 27.7% 27.6% 27.5% 27.4% 27.3% 27.2% 27.1% 33.0% 32.8% Less: Capital reserves (a % of effective revenue) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Capital costs 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

NET CASHFLOW 1,224,499 1,291,885 1,398,250 1,530,980 1,612,898 1,677,401 1,722,216 1,768,209 1,815,410 1,863,851 1,913,564 1,964,583 2,016,940 2,070,671 2,125,812 2,182,399 2,240,469 2,300,061 2,361,214 2,423,970 2,488,369 2,554,453 4.78% 2.93% 1,224,499 1,284,516 Gearing : net cashflow to effective revenue 67.0% 67.6% 68.8% 70.1% 70.7% 71.1% 71.2% 71.3% 71.4% 71.6% 71.7% 71.8% 71.9% 72.0% 72.1% 72.3% 72.4% 72.5% 72.6% 72.7% 72.8% 72.9% 67.0% 67.2% Gearing : net cashflow to Operating Expenses 234.7% 242.8% 257.6% 276.6% 285.7% 291.3% 293.2% 295.1% 297.0% 299.0% 300.9% 302.9% 304.9% 306.9% 308.9% 310.9% 312.9% 314.9% 316.9% 319.0% 321.0% 323.1% 234.7% 238.6% Gearing : net cashflow to All Expenses 202.8% 209.0% 220.5% 234.9% 241.7% 245.9% 247.3% 248.8% 250.2% 251.7% 253.1% 254.6% 256.0% 257.5% 259.0% 260.4% 261.9% 263.4% 264.9% 266.4% 267.9% 269.4% 202.8% 205.2% net cashflow per unit (pa) 3,862.77 4,075.35 4,410.88 4,829.59 5,088.01 5,291.49 5,432.86 5,577.95 5,726.84 5,879.66 6,036.48 6,197.42 6,362.59 6,532.09 6,706.03 6,884.54 7,067.72 7,255.71 7,448.63 7,646.59 7,849.74 8,058.21 3,862.77 4,052.10

T:\PSQ\Shared\Valuation\Clients\Bank of America\Project Rose II & III\6. Val Calcs\[PBSA FH Model_SH.xlsx]Exec Summary © Cushman & Wakefield LLP 2019

Unless this information is provided in conjunction with a Valuation Report, it is for guidance purposes only and does not constitute a formal valuation. The information is confidential to the party to whom it is addressed and no liability is accepted to any other party. BAML PROPERTY VALUATION AS AT 12 JULY 2019 Swanston House, Queen St, Belfast Discounted Cashflow Analysis

Year Discount Year Net Cash Discount Factor Present Value Proportion Net Running Period Ending Flow 7.50% of Cashflows of Value Yields

1 0.5 Sep-20 1,224,499 x 0.9644856 = 1,181,012 4.56% 4.73% 2 1.5 Sep-21 1,291,885 x 0.8971959 = 1,159,074 4.48% 4.99% 3 2.5 Sep-22 1,398,250 x 0.8346009 = 1,166,981 4.51% 5.40% 4 3.5 Sep-23 1,530,980 x 0.7763729 = 1,188,611 4.59% 5.92% 5 4.5 Sep-24 1,612,898 x 0.7222074 = 1,164,847 4.50% 6.23% 6 5.5 Sep-25 1,677,401 x 0.6718208 = 1,126,913 4.36% 6.48% 7 6.5 Sep-26 1,722,216 x 0.6249496 = 1,076,298 4.16% 6.66% 8 7.5 Sep-27 1,768,209 x 0.5813484 = 1,027,945 3.97% 6.83% 9 8.5 Sep-28 1,815,410 x 0.5407893 = 981,754 3.79% 7.02% 10 9.5 Sep-29 1,863,851 x 0.5030598 = 937,628 3.62% 7.20%

Total Present Value of Cashflows: 11,011,064 42.55% 6.15% Total Average

Reversion Year NOI/Income / Exit Cap Rate = Reversion 11 10 Sep-30 1,913,564 / 6.000% = 31,892,735 Less: Purchaser's Costs 2.800% 868,674 Less: Cost of Sale 1.250% 387,801

Net Reversion 30,636,261 x Discount Factor 0.4851939 Total Present Value of Reversion 14,864,527 57.45%

Total Present Value of Cashflows & Reversion: 25,875,591 100.00% Plus any capital additions 0 Less any capital deductions 0 Total Gross Present Value: 25,875,591 Less: Purchaser's Costs 2.800% 704,783 Total Net Present Value: 25,170,808

ROUNDED VALUE via DISCOUNTED CASHFLOW: 25,170,000

Total units 317 Value per unit 79,401 First year net cashflow per unit 3,863 n.b. "in place" net cashflow 1,224,499 "in place" net initial yield 4.73% "in place" net cashflow per unit 3,863 n.b. net cashflow - next academic year 1,284,516 net initial yield - next academic year 4.96% net cashflow per unit - next academic year 4,052

© Cushman & Wakefield LLP 2019

Unless this information is provided in conjunction with a Valuation Report, it is for guidance purposes only and does not constitute a formal valuation. The information is confidential to the party to whom it is addressed and no liability is accepted to any other party. BAML PROPERTY VALUATION AS AT 12 JULY 2019 Swanston House, Queen St, Belfast Total Value Summary

A. Commercial Element

Commercial Accommodation - Size and Income Description Number of Total Size Av size per Annual Annual rental Total Units (Net Internal unit Rental Rate per unit potential Area) (per Sq Ft) annual income Unit 1 1 1,940.00 1,940.00 15.97 30,981.80 30,981.80 n/a ------n/a ------n/a ------n/a ------Totals 1 1,940.00 1,940.00 15.97 30,981.80 30,981.80

Commercial Accommodation - Valuation Description Number of Total Size Total % of income Income for Void Yield Years PV factor Gross Value Purchaser's Net Value Units (Net Internal potential for valuation Valuation Assumption Purchase (in Costs after Area) annual (yrs) perp) Purchaser's income Costs Unit 1 1 1,940.00 30,981.80 100% 30,981.80 - 7.50% 13.33 1.00 413,091 4.15% 396,631 n/a - - - 100% - - 8.00% 12.50 1.00 - 4.15% - n/a - - - 100% - - 8.00% 12.50 1.00 - 4.15% - n/a - - - 100% - - 8.00% 12.50 1.00 - 4.15% - n/a - - - 100% - - 8.00% 12.50 1.00 - 4.15% - Totals 1 1,940.00 30,981.80 30,981.80 0.40 413,091 396,631

Total Gross Value before Capex 413,091 Plus any capital additions 0 Less any capital deductions 0 Total Gross Value after Capex 413,091 Adjustment for Purchaser's Costs 16,460 4.15% Net Value 396,631 Rounding 5,000 Rounded Value 395,000

B. Student Accommodation

Total Unrounded Value 25,170,808 Rounding 10,000 Rounded Value 25,170,000

C. Total Value

Rounded Value 25,565,000

D. Running Yield Analysis (net of capital reserves and capital costs in the cashflow, but unadjusted for capex)

1. Student Housing: Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 "In Place" Next Academic Gross Value (on rounded) 25,874,760 net cashflow (AFTER capital reserves and capital costs) 1,224,499 1,291,885 1,398,250 1,530,980 1,612,898 1,677,401 1,722,216 1,768,209 1,815,410 1,863,851 1,224,499 1,284,516 Running Yields (net) 4.73% 4.99% 5.40% 5.92% 6.23% 6.48% 6.66% 6.83% 7.02% 7.20% 4.73% 4.96%

2. Commercial: (revenue growth at 2.5%) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 1 Year 1 Gross Value (on rounded) 411,393 net cashflow 30,982 31,756 32,550 33,364 34,198 35,053 35,929 36,828 37,748 38,692 30,982 30,982 Running Yields (net) 7.53% 7.72% 7.91% 8.11% 8.31% 8.52% 8.73% 8.95% 9.18% 9.41% 7.53% 7.53%

3. Combined Cashflow Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 "In Place" Next Academic Gross Value (on rounded) 26,286,153 (+ Yr 1) (+ Yr 1) net cashflow (AFTER capital reserves and capital costs) 1,255,481 1,323,642 1,430,800 1,564,344 1,647,096 1,712,455 1,758,145 1,805,036 1,853,158 1,902,543 1,255,481 1,315,498 Running Yields (net) 4.78% 5.04% 5.44% 5.95% 6.27% 6.51% 6.69% 6.87% 7.05% 7.24% 4.78% 5.00%

E. Running Yield Analysis (gross of capital reserves and capital costs, but unadjusted for capex)

1. Student Housing: Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 "In Place" Next Academic Gross Value (on rounded) 25,874,760 net cashflow (BEFORE capital reserves and capital costs) 1,224,499 1,291,885 1,398,250 1,530,980 1,612,898 1,677,401 1,722,216 1,768,209 1,815,410 1,863,851 1,224,499 1,284,516 Running Yields (net) 4.73% 4.99% 5.40% 5.92% 6.23% 6.48% 6.66% 6.83% 7.02% 7.20% 4.73% 4.96%

2. Commercial: (revenue growth at 2.5%) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 1 Year 1 Gross Value (on rounded) 411,393 net cashflow 30,982 31,756 32,550 33,364 34,198 35,053 35,929 36,828 37,748 38,692 30,982 30,982 Running Yields (net) 7.53% 7.72% 7.91% 8.11% 8.31% 8.52% 8.73% 8.95% 9.18% 9.41% 7.53% 7.53%

3. Combined Cashflow Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 "In Place" Next Academic Gross Value (on rounded) 26,286,153 (+ Yr 1) (+ Yr 1) net cashflow (BEFORE capital reserves and capital costs) 1,255,481 1,323,642 1,430,800 1,564,344 1,647,096 1,712,455 1,758,145 1,805,036 1,853,158 1,902,543 1,255,481 1,315,498 Running Yields (net) 4.78% 5.04% 5.44% 5.95% 6.27% 6.51% 6.69% 6.87% 7.05% 7.24% 4.78% 5.00%

© Cushman & Wakefield LLP 2019

Unless this information is provided in conjunction with a Valuation Report, it is for guidance purposes only and does not constitute a formal valuation. The information is confidential to the party to whom it is addressed and no liability is accepted to any other party. BAML BAML PROPERTY VALUATION AS AT 12 JULY 2019 PROPERTY VALUATION AS AT 12 JULY 2019 Swanston House, Queen St, Belfast Swanston House, Queen St, Belfast Sensitivity Analysis (Two Independent Trials) (Student Housing Element Only) Sensitivity Analysis (Two Independent Trials) (Student Housing Element Only) ACTUAL VALUES PERCENTAGE FIGURES

Factor 1 : Weekly Room Rate Factor 1 : Weekly Room Rate Factor 2 : Discount Rate and Exit Cap Rate Factor 2 : Discount Rate and Exit Cap Rate

Factor 1 Vertex : 0.00 Factor 1 Vertex : 0.00 Factor 2 Vertex : 0% Factor 2 Vertex : 0%

Rate Discount Rate & ECR Rate Discount Rate & ECR ######## -0.50% -0.25% 0.00% 0.25% 0.50% 3,250,000 -0.50% -0.25% 0.00% 0.25% 0.50% 20.00 33,740,000 32,260,000 30,900,000 29,660,000 28,510,000 20.00 31.75% 25.97% 20.66% 15.81% 11.32% 15.00 32,300,000 30,880,000 29,580,000 28,390,000 27,290,000 15.00 26.12% 20.58% 15.50% 10.86% 6.56% 10.00 30,850,000 29,500,000 28,260,000 27,120,000 26,060,000 10.00 20.46% 15.19% 10.35% 5.90% 1.76% 5.00 29,410,000 28,110,000 26,930,000 25,840,000 24,840,000 5.00 14.84% 9.76% 5.15% 0.90% -3.01% 0.00 27,960,000 26,730,000 25,610,000 24,570,000 23,620,000 0.00 9.18% 4.37% 0.00% -4.06% -7.77% -5.00 26,520,000 25,350,000 24,280,000 23,300,000 22,400,000 -5.00 3.55% -1.02% -5.19% -9.02% -12.53% -10.00 25,070,000 23,970,000 22,960,000 22,030,000 21,170,000 -10.00 -2.11% -6.40% -10.35% -13.98% -17.34% -15.00 23,630,000 22,590,000 21,630,000 20,760,000 19,950,000 -15.00 -7.73% -11.79% -15.54% -18.94% -22.10% -20.00 22,180,000 21,210,000 20,310,000 19,490,000 18,730,000 -20.00 -13.39% -17.18% -20.70% -23.90% -26.86%

Factor 1 : % Adjustment to Operating Costs (excl the opex adj line) Factor 1 : % Adjustment to Operating Costs (excl the opex adj line) Factor 2 : Discount Rate and Exit Cap Rate Factor 2 : Discount Rate and Exit Cap Rate

Factor 1 Vertex : 0% Factor 1 Vertex : 0.00 Factor 2 Vertex : 0% Factor 2 Vertex : 0%

Opex Discount Rate & ECR Opex Discount Rate & ECR ######## -0.50% -0.25% 0.00% 0.25% 0.50% 3,250,000 -0.50% -0.25% 0.00% 0.25% 0.50% -20.00% 30,300,000 28,970,000 27,760,000 26,640,000 25,610,000 -20% 18.31% 13.12% 8.40% 4.02% 0.00% -15.00% 29,710,000 28,410,000 27,220,000 26,120,000 25,110,000 -15% 16.01% 10.93% 6.29% 1.99% -1.95% -10.00% 29,130,000 27,850,000 26,680,000 25,610,000 24,610,000 -10% 13.74% 8.75% 4.18% 0.00% -3.90% -5.00% 28,550,000 27,290,000 26,140,000 25,090,000 24,120,000 -5% 11.48% 6.56% 2.07% -2.03% -5.82% 0.00% 27,960,000 26,730,000 25,610,000 24,570,000 23,620,000 0% 9.18% 4.37% 0.00% -4.06% -7.77% 5.00% 27,380,000 26,170,000 25,070,000 24,060,000 23,120,000 5% 6.91% 2.19% -2.11% -6.05% -9.72% 10.00% 26,790,000 25,610,000 24,530,000 23,540,000 22,630,000 10% 4.61% 0.00% -4.22% -8.08% -11.64% 15.00% 26,210,000 25,050,000 24,000,000 23,020,000 22,130,000 15% 2.34% -2.19% -6.29% -10.11% -13.59% 20.00% 25,620,000 24,490,000 23,460,000 22,510,000 21,630,000 20% 0.04% -4.37% -8.40% -12.10% -15.54% BAML PROPERTY VALUATION AS AT 12 JULY 2019 Swanston House, Queen St, Belfast Executive Summary - Inputs, Assumptions and Value Results

A. GENERAL INPUTS D. VALUATION RESULTS 1 Property Swanston House, Queen St, 1 Market Value : Commercial Element 395,000 2 Client BelfastBAML 2 Market Value : Student Accommodation 21,100,000 3 Property reference number SH 3 Market Value : Total 21,495,000 4 Tenure Freehold 5 Property owner 6 Operator Student Roost Student Accommodation Only: 7 Property type Direct Let 4 Total number of units 317 8 Valuation date 12 Jul 2019 5 Value per unit 66,562 9 Opening date 01 Sep 2019 6 Value per Sq Ft (on the Gross Internal Area) #DIV/0! 10 Years since opening -0.14 11 Site area (hectares) 0.000 12 Site area (acres) 0.000 Running Yields (gross of capital reserves and costs in the cashflow, but unadjusted for capex): Adj for capex: 13 measurement units Sq Ft 7 Net yield (reflecting income for the next 12 months) - Year 1 388,623 1.792% 1.792% 14 Currency GBP 8 Net yield (reflecting income for the next 12 months) - Year 2 576,172 2.656% 2.656% 15 Valuation Rounding 10,000 9 Net yield (reflecting income for the next 12 months) - Year 3 1,120,329 5.165% 5.165% 16 DFC Period (in years) 10 10 Net yield (reflecting income for the next 12 months) - Year 4 1,354,853 6.246% 6.246% 11 Net yield (reflecting income for the next 12 months) - Year 5 1,429,590 6.591% 6.591% B. OTHER PRINCIPAL INPUTS 12 True net initial yield (reflecting income for the next 12 months after 388,623 1.792% all capital expenditure in the cashflow) – Year 1 1 Occupancy - term: Year 1 40.00% 13 Net yield - reflecting "in place" income 388,623 1.792% 1.792% 2 Occupancy - term: Year 2 60.00% 14 Net yield - reflecting estimated income for the next academic year 457,095 2.107% 2.107% 3 Occupancy - term: Year 3 90.00% 4 Occupancy - out of term: Year 1 35.00% No Growth Reversionary Yield & Estimated Net Equivalent Yield : 5 Occupancy - out of term: Year 2 25.00% 15 Net reversionary yield (gross of capital reserves and costs in the 1,147,693 5.291% 5.291% cashflow, but unadjusted for capex) on a no growth basis 6 Occupancy - out of term: Year 3 15.00% 16 Estimated Net Equivalent Yield (cashflow gross of capital reserves Not Calculated and costs, but unadjusted for capex. Annually in arrears basis) 7 Student related income - GICR for valuation 6.000% 8 Student related income - Adj for exit yield 0.000% i) Weighted average revenue data for year 1: 9 Student related income - Exit Yield 6.000% 17 Revenue - term time unit income only (incl noms, excl other adjmts) 691,286 p.a. 10 Student related income - Discount Rate for DCF 7.500% 18 Revenue - all income (incl noms and other adjmts) 818,454 p.a. 11 Student related income - Rental growth rate - Year 1 3.500% 19 Operating costs & Leakage % (excluding management fees and rent) 393,001 p.a. 48.02% 12 Ancillary income - Growth rate - Year 1 2.500% 20 Operating costs & Leakage % (including management fees and rent) 429,831 p.a. 52.52% 13 Commercial income - Rental growth rate - Year 1 2.500% 21 Net cashflow before capital reserves and capital costs 388,623 p.a. 14 Operating costs - Cost inflation rate - Year 1 2.000% 22 Net cashflow after capital reserves and capital costs 388,623 p.a. 15 Head rent - rent inflation rate - Year 1 2.500% 16 Student purchaser's costs (on entry) 2.800% Ii) Weighted average revenue data for year 1 - per unit: 17 Student purchaser's costs (on exit) 2.800% 23 Revenue - term time unit income only 2,181 p.a. per unit 18 Commercial purchaser's costs 4.150% 24 Revenue - all income 2,582 p.a. per unit 19 Disposal costs for the exit calculation 1.250% 25 Operating costs (excluding management fees and rent) 1,240 p.a. per unit 20 Management fee : a % of gross income 4.500% 26 Operating costs (including management fees and rent) 1,356 p.a. per unit 21 Capital reserves : a % of gross income 0.000% 27 Net cashflow before capital reserves and capital costs 1,226 p.a. per unit 28 Net cashflow after capital reserves and capital costs 1,226 p.a. per unit C. VALUATION ASSUMPTIONS All figures in GBP iii) Weighted average revenue data for year 1 - per unit per term week: The cashflow is on a calendar year basis 29 Weighted average number of term weeks 43.4 weeks Income growth above applied after year 1 30 Revenue - term time unit income only 50.24 per unit per term week Expense inflation applied after year 1 31 Revenue - all income 59.48 per unit per term week Exit price based on the forward looking 12 month income at the exit point. 32 Operating costs (excluding management fees and rent) 28.56 per unit per term week Cashflow is discounted as per the DCF analysis 33 Operating costs (including management fees and rent) 31.24 per unit per term week Commercial income (if receivable) is separately valued 34 Net cashflow before capital reserves and capital costs 28.24 per unit per term week Ancillary income (related to student occupation) has been added to our cashflow projections 35 Net cashflow after capital reserves and capital costs 28.24 per unit per term week It is assumed that the management agreement is in place and the costs associated are historic Capital costs in the cashflow are not inflated from day 1 and are assumed to arise in the first month of the year Commercial Element Only: 0 36 Revenue - Year 1 30,982 p.a. 0 37 Revenue - Year 1 per Sq Ft 15.97 0 38 Net initial yield 7.53% 0 0 0

Lease expiry date (for leased assets) n/a

T:\PSQ\Shared\Valuation\Clients\Bank of America\Project Rose II & III\6. Val Calcs\VP Vals\[PBSA FH Model_SH.xlsx]Exec Summary © Cushman & Wakefield LLP 2019 Cushman & Wakefield | Bank of America Merrill Lynch Appendix C: Rental Comparables and Map Valuation Date: 12 July 2019 Swanston House, 41-45 Queen Street, Belfast, BT1 6ET

APPENDIX C: RENTAL COMPARABLES AND MAP

41

Belfast Student Accomodation Comparables 03.07.2019

Room numbers (beds) in Rent (£per week) Map No. Block Name Postcode Operator Photo Room Types Let Length 2019 Comments Block: total 2019 2019

Twin 44 £63.00 Laundry, bike storage, CCTV Twin 51 £58.00 Ensuite 44 £119.00 Ensuite 51 £109.00

Belfast Student Studio 44 £145.00 1 123 York Street BT15 1AB 407 Living Studio 51 £135.00

Twin 38 £75.00 Laundry, bike storage, CCTV Twin 39 £75.00 Twin 51 £75.00 Standard 38 £85/up to £120 Queen's Standard 39 £85/up to £120 2 76 Malone Road BT9 5BU University 22 Belfast Standard 51 £85/up to £120 Ensuite 51 N/A

Studio 50 £138/up to £180 Laundry, games space, common areas

University 3 Botanic Studios BT2 7BY 156 Student Living

Twin 38 £75.00 Laundry, bike storage, CCTV Twin 39 £75.00 Twin 51 £75.00 Standard 38 £85/up to £120 Queen's Standard 39 £85/up to £120 4 College Gardens BT9 6BQ University 49 Belfast Standard 51 £85/up to £120

Ensuite 40 £119/up to £125 Laundry, bike storage, cinema, common areas Ensuite 51 £119/up to £125 Studio 44 £135/up to £159 Studio 51 £135/up to £159

5 Swanston House BT1 6EB Student Roost 317

Ensuite 38 £124.00 Common areas, CCTV, laundry, parcel post system Ensuite 39 £124.00 Ensuite 51 £124.00 Studio 38 £149.00 Queen's Studio 39 £149.00 6 Elms BT1 BT1 6BB University 804 Belfast Studio 51 £149.00

Ensuite 38 £124.00 Common areas, CCTV, laundry, parcel post system Ensuite 39 £124.00 Ensuite 51 £124.00 Studio 38 £149.00 Queen's Studio 39 £149.00 7 Elms BT2 BT2 7GE University 476 Belfast Studio 51 £149.00

Ensuite 44 £125/up to £139 Laundry, bike storage, common areas Ensuite 51 £125/up to £139 Studio 39 £159.00 Studio 44 £149.00 Studio 51 £149/up to £169 8 John Bell House Bt1 6DJ Student Roost 413

Twin 38 £75.00 Laundry, bike storage, CCTV Twin 39 £75.00 Twin 51 £75.00 Standard 38 £85/up to £120 Queen's Standard 39 £85/up to £120 9 Mount Charles BT7 1NY University 163 Belfast Standard 51 £85/up to £120 Ensuite 38 £124.00 Ensuite 39 £124.00 Ensuite 51 £124.00

Studio 38 £149.00 Laundry, bike storage, CCTV Studio 39 £149.00 Studio 51 £149.00 Standard 38 £125/up to £135 Queen's Standard 39 £125/up to £135 10 Willlow Walk BT9 5BW University 250 Belfast Standard 51 £125/up to £135 1 bedroom 38 £175.00 1 bedroom 39 £175.00 1 bedroom 51 £175.00 Map – Belfast – Swanston House Cushman & Wakefield | Bank of America Merrill Lynch Appendix D: BELFAST MARKET COMMENTARY Valuation Date: 12 July 2019 Swanston House, 41-45 Queen Street, Belfast, BT1 6ET

APPENDIX D: BELFAST MARKET COMMENTARY

42

Executive Summary Belfast Student Accommodation Market

Cushman & Wakefield has worked with Ulster University and consulted with Queen’s University over the last year around the development of purpose-built stock in Belfast. It is clear that the market behaves fundamentally differently to on the mainland, and this has led to issues for some providers. The Holyland has the highest concentration of Student HMOs in the city. It is an area which has traditionally attracted a high number of students, with many choosing to live here because their family or friends have done in the past. The area is most popular with first and second year students, with some older students tending to migrate to the quieter areas of Lisburn road and Stranmillis. The HMO market in the Holyland is dominated by four landlords, who have a virtual monopoly on the accommodation market. Overall the quality of the accommodation on offer is low, with many houses in a poor state of repair.

The poor quality of stock and general environment means that levels of crime are high, and our conversations with the University have revealed that a number of students have been victims of violent crime. It is likely that the poor quality of the area and dominance of a small number of landlords have meant that aspirations have become entrenched in the area, with no incentive for property owners to improve their accommodation, and no pressure from students to raise the quality of the offer. This is exacerbated by the fact that the student profile in Northern Ireland is different to what is seen in the majority of cities on the Mainland. Northern Irish Students will usually only live in student accommodation Monday to Friday and will return home on the weekend.

The City Council has been open to the development of purpose-built stock and this has led to an acceleration in private sector development.

A misreading of the market and large-scale development in a short period of time means that rents are set to fall by an average of 11% for the 2019/20 academic year, with some Student Roost rents falling by 18%. Botanic Studios, Swanston House, Great Patrick Street and John Bell House offered discounts of roughly 10% for most room types. Long-term cultural change is required in Belfast to increase overall demand and the attractiveness of purpose-built stock in the City. For 2019/20, one scheme is set to open nearby the Ulster University campus, although marketing of the scheme has been limited. The market is likely to be impacted by continued delays to the opening of Ulster University’s Belfast Campus, with delays in construction meaning students may not now move from Jordanstown until 2022. Work is underway but there is currently no set completion date for the academic facilities. The student to bed ratio in Belfast currently stands at 2.2:1, although we would caution that a period of cultural change needs to occur in the market before this ratio can be considered comparable with mainland UK markets.

oThe tw schemes are priced similarly and Student Roost effectively dictate prices in Belfast and after a period of digestion and cultural change, lower rents this year has led to high occupancy levels and the market appears to be healthy again.

4 Key Statistics Belfast Student Accommodation Market

Queen’s Ulster University University: Belfast Belfast

FT student population 18,720 17,315

Growth 2012-2017 12% -6%

Growth 2015-2017 2% -5%

Number of international students 3,020 1,290

Change in students from outside the 77% -57% UK 2012-2017

Number of Students from outside the 4,280 1,750 region

Change in students from outside the 75% -45% region 2012-2017

Change in UCAS applications 2016 - -3% -10% 18

UCAS app:accepts ratio 7.1 39.4

Times Rank 2019 38 60

Change in Times Rank 2012-2019 0 -4

TEF n/a n/a

6 Queen’s University, Belfast League Table Rankings

Queen’s University, Belfast League table rankings 2010-2019 Queen’s university has fluctuated in the league tables in the last 10 years, but overall they have only dropped 3 places in the Guardian and Complete Guides and 6 places in the Times since 2010. For 2020, the university is ranked 53rd in the Guardian and 37th in the Complete Guide and they are ranked 38th in the 2019 Times ranking. Like Ulster University, Queen’s did not participate in the Teaching Excellence Framework in 2017 or 2018. The University is currently ranked 42nd in the country for research, from the 2014 teaching excellence framework, a drop of 3 from the previous Research Assessment Exercise in 2008.

Source: University League tables 2010 - 2019

Cushman & Wakefield | Helmsley Group 8 Queen’s University, Belfast Campus Investment

The University has invested heavily in its estate in recent years, with £350 million invested in the campus over a 10 year period. This includes: • Schoolf o Biological Sciences – A £39 million development, being built at Chlorine Gardens, will offer state-of-the art teaching and research facilities for its 750 students and 170 staff, who will tackle some of the world’s most pressing issues. • The School of Law - This space for School of Law staff and students returns the Quad to its original Victorian splendour. The development has recycled the former Library Tower and added a three-storey building to the Peter Froggatt Centre for study and collaboration under one 21st century roof. • The Computer Science Building - At 3,000m2, with a glazed, front elevation, the new Computer Science building integrates teaching and research, delivering a stimulating environment for staff and students and group and project work. • The Graduate School - The Graduate School opened in 2015 in the restored and remodelled Lynn Building, which was originally designed in 1858. New areas for study, meetings and social events ensure it is a vibrant centre of intellectual exchange.

9 Ulster University League Table Rankings

Ulster University League table rankings 2010-2019 Recently, Ulster University slipped down the rankings between 2012 and 2018, dropping in all three major rankings to 73rd in the Times 96th in the Guardian and 71st in the Complete guide. Since then, there is evidence of a recovery, the university has increased substantially in the newly released 2020 Guardian and Complete Guides, up to 59th and 58th respectively. There was also a league position increase in the 2019 Times Good University Guide, rising to 60th. Ulster University didn’t take part in the 2017 or 2018 Teaching Excellence Framework. In the 2014 Research Excellence Framework, Ulster University was ranked 54th, 9 places lower than the previous Research Assessment Exercise in 2008.

Source: University League tables 2010 - 2019

Cushman & Wakefield | Helmsley Group 10 Ulster University Campus Investment

Ulster University – Belfast Campus Development In 2015, the first phase of development for the new Belfast campus opened, with capacity for 2,000 students and phase 2 was supposed to be completed in 2019 which would increase the capacity of the campus to 15,000 and would facilitate a move of all students from the Jordanstown campus into the city centre. Due to issues with contractors and developers, this has been delayed, construction is currently underway but no completion date has been set. Alongside the 75,000sqm of teaching and learning facilities, there will be a mixed use development with ground floor retail and 3.5 storey car park offering 350 spaces, including electric charging points and bicycle stands is being built on Frederick Street and is due for completion in the first quarter of 2020. This development makes up part of the wider cathedral quarter regeneration scheme.

11 Market Rents Great Patrick Street Rental Profile (Scheme rents marked in red)

The three Student roost properties in Belfast make up most of the direct let market in the city, and they are all priced similarly so the rooms sit in the modal price points for their room types. The other two schemes have rooms priced similarly, despite a lower quality of scheme. The rents are substantially lower than they were a couple of years ago but this is considered a “correction” in the market and the prices for both schemes are sensible for both room types.

13 Market Rents Swanston House

Rental Profile (Scheme rents marked in red)

14 Planning Pipeline PBSA applications in Belfast

Number of bed spaces in planning pipeline 3,752

Development pipeline by Application Stage

Source: Belfast City Council July 2019

16 Planning Pipeline Proposed Developments in Belfast

For a relatively short PBSA market, the pipeline in Belfast is substantial with over 3,700 beds in the pipeline, the majority of which have planning approval. Most of the beds are based near the Ulster University Belfast campus in anticipation of the campus move from Jordanstown into the centre of Belfast. There are three very large schemes in the pipeline, three schemes with over 700 beds, again all near the new Belfast campus on York Street/Frederick Street but two of the sites (140 Donegall Street, 81 – 107 York Street) have been recently sold and there is no set completion date for either site.

17 Demand and Supply Dynamics The Belfast demand pool

The pool calculation below sets out our assumptions of demand for student accommodation in Belfast taking into account current supply levels in Belfast and the latest HESA student figures (2017/18) for Queen’s University, Belfast and Ulster University. In arriving at our demand pool, C&W has excluded a number of students who are unlikely to demand accommodation in the city. This includes: • All students domiciled in the City of Belfast • Students currently not living in PBSA domiciled in Antrim and Newtownabbey; Armagh, Banbridge and Craigavon; Lisburn and Castlereagh; Mid and East Antrim; Mid Ulster; Newry Mourne and Down; and North Down and Ards • Sandwich students currently on a placement year in industry

Belfast Demand Pool & SBR

Source: HESA 2017/18, Cushman & Wakefield Accommodation Tracker 2019/20

The SBR in Belfast is above the UK average at 2.2:1, which is healthy but the market has struggled to digest and the market has “corrected”, dropping in price and occupancy appears to have improved for the coming academic year. Delays to the Ulster University’s Belfast campus, which was due to open in 2020, may cause some short term issues in the market due to the much of the pipeline being predicated around the increase of students based in the centre of Belfast. The issues in the city would only be short term and the SBR should rise with the introduction of 13,000 more students in central Belfast as opposed to Jordanstown, which is 6 miles away.

19 Cushman & Wakefield | Bank of America Merrill Lynch Individual Property Record Valuation Date: 12 July 2019 Pittodrie Street, 3 - 10 Pittodrie Street, Aberdeen AB24 5AD

INDIVIDUAL PROPERTY RECORD

PITTODRIE STREET, 3 - 10 PITTODRIE STREET, ABERDEEN, AB24 5AD

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Cushman & Wakefield | Bank of America Merrill Lynch Table of Contents Valuation Date: 12 July 2019 Pittodrie Street, 3 - 10 Pittodrie Street, Aberdeen, AB24 5AD

TABLE OF CONTENTS

Executive Summary

1. Location and Description

2. Structural Condition and Repair

3. Site

4. Environmental Considerations

5. Statutory Matters

6. Taxation

7. Tenure and Occupational Interests

8. Student Market Considerations

9. Valuation Approach and Opinions of Value

10. Market Value

11. Market Value Based on Special Assumptions

12. Security of the Loan

Appendices

A. Maps and Plans

B. Valuation Calculations

C. Rent Comparables and Map

D. Aberdeen Market Commentary

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Cushman & Wakefield | Bank of America Merrill Lynch Executive Summary Valuation Date: 12 July 2019 Pittodrie Street, 3 - 10 Pittodrie Street, Aberdeen, AB24 5AD

EXECUTIVE SUMMARY

This summary is strictly confidential to you as the Addressee. It must not be copied, distributed or considered in isolation from the full report.

Property Summary

Location The Property is located to the north of Aberdeen city centre, situated fronting and accessed from Pittodrie Street, with an element of the Property fronting Merkland Street East. The Property is well located in terms of accessibility with Pittodrie Street accessed from King Street (A956) to the immediate west of the Property, which forms a main arterial route into the city centre from the north. Aberdeen’s railway station is located within the city centre, approximately 1.80 km (1.10 miles) to the south of the Property and accessed within a c.25 minute walking time. There are three higher education institutions in Aberdeen; The University of Aberdeen, Robert Gordon University and North East Scotland College. Aberdeen University’s Old Aberdeen Campus is located 650m north west of the Property (11-minute walk, whilst the University’s Foresterhill Medical Campus is located c.2 km (1.25 miles) west of the Property (c.30-miuntes walk or commute via public transport). Marischal College, the traditional campus centre of the University of Aberdeen, is situated within Aberdeen city centre fronting Broad Street, approximately 1 km (0.60 miles) south of the Property (c.15-miuntes walk). Robert Gordon University’s Garthedee campus is located 5 km (3.10 miles) south west of the Property and a c.40 minute commute via public transport. In addition, the North East College Scotland is located within Aberdeen city centre fronting Gallowgate, c.880m (15-minute walk) south west of the Property.

Description The Property provides a purpose-built student accommodation scheme comprising 2 blocks separated by Pittodrie Street, constructed in 2018 (Block B - 132 beds) and 2019 (Block A - 486 beds). Property provides a total of 618 student bedspaces arranged across the two blocks comprising 75 studios and 543 en suite bedspaces. The individual en suite bedspaces and studios of varying sizes, are each finished to an identical modern good quality specification of fittings and furnishings. The Property provides a high level of onsite communal facilities within each block including reception area and management office, common area with demarcated spaces for studying and socialising, private study rooms, courtyard areas, roof terraces, laundries and cycle storage.

Approximate year of Block A 2019 construction Block B 2018

Specification The individual en suite bedspaces and studio units are all finished to a good standard and specification for the student accommodation market. The Property provides a high level of onsite communal facilities for students.

Condition We have not carried out a building or condition survey.

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Cushman & Wakefield | Bank of America Merrill Lynch Executive Summary Valuation Date: 12 July 2019 Pittodrie Street, 3 - 10 Pittodrie Street, Aberdeen, AB24 5AD

The Property comprises a new-build purpose-built student residential scheme completed in 2 phases between 2018 and 2019. The internally inspected accommodation was finished to a good quality specification throughout and provides a good condition given its recent completion. During the course of our inspection we did not note any defects requiring further attention. Our internal inspection of the Property was limited to a select number of accommodation units. We have therefore made the assumption that the accommodation which was not inspected is of a similar condition to that inspected.

EPC Block A EPC rating of D 47 (8 May 2019) Block B EPC rating of C 42 (6 Aug 2018) The Property is currently compliant with the Energy Performance of Non- Domestic Buildings (Scotland) Regulation 2016.

Environmental Issues None of which we are aware. We have been provided with a copy of a Phase I Environmental Site Assessment (ESA) dated July 2019) prepared by Delta Simons (Ref 19- 1146.01) which we have reviewed.

Tenure Block A Ownership - Title Number ABN20394 Block B Ownership - Title Number ABN131123

University Agreements None.

Tenancies We have been provided with cashflows by the Borrower with forecast income projections for the 2018/19 and 2019/20 academic years. The 618 rooms are operated on a wholly direct-let basis. We are advised that the Property has achieved c.97.9% occupancy by room number for the 2019/20 academic year. The advertised weekly rents for en-suite bed spaces range from £124 to £149 from 42 weeks for the 2019/20 academic year and up to £189 for studio rooms from 44 weeks. As at the date of valuation, the aggregate total forecast rent for the 2018/19 academic year totals £652,833 but this reflects a low occupancy of 45.9%. For the 2019/20 academic years we have assumed total revenue of £3,604,754 (97% occupancy) which compares against the Borrower’s estimate of £3,641,120 (100% occupancy).

Income, Yield and Market Value Summary

Valuation Date 12th July 2019

Year 1 Net Operating £2,488,401 Income

Market Value £48,100,000

Yield Profile Year 1 5.00% Year 2 5.49%

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Cushman & Wakefield | Bank of America Merrill Lynch Executive Summary Valuation Date: 12 July 2019 Pittodrie Street, 3 - 10 Pittodrie Street, Aberdeen, AB24 5AD

Year 3 5.87%

Loan Security In our opinion, subject to the comments and Assumptions contained below and elsewhere in this Valuation Report, the Freehold interest in the Property provides reasonable security for the purposes of a loan.

Liquidity Good.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Pittodrie Street, 3 - 10 Pittodrie Street, Aberdeen, AB24 5AD

PROPERTY RECORD

ABERDEEN - Pittodrie Street, 3 - 10 Pittodrie Street, Aberdeen, AB24 5AD

Inspection The Property was subject to an external inspection, from ground level and an internal inspection of a selection of accommodation types and communal areas, by James Lockwood MRICS on the 5th July 2019.

1. Location and Description

1.1. Location

General • Aberdeen is Scotland’s third largest city with a population of approximately 220,000 and a regional catchment population of over 500,000 (Aberdeen City Council 2011). • Aberdeen is situated approximately 130 miles (209 km) north of Edinburgh, 71 miles (114 km) north of Dundee and 105 miles (169 km) east of Inverness and has excellent road connections south via the A90 (T) and west to Inverness by the A98 (T). • The City is the administrative headquarters of Aberdeen City Council and is the UK’s oil capital being the European service base for the North Sea oil and gas exploration and production industries. Companies with a major presence include BP, Shell, Expro, Chevron and Wood Group.

Further maps and plans are attached in Appendix A.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Pittodrie Street, 3 - 10 Pittodrie Street, Aberdeen, AB24 5AD

• Aberdeen has a mainline railway station with regular direct services to Dundee and Edinburgh with journey times of approximately 1 hour and 2 ½ hours respectively. • Aberdeen Airport is located c.9 km (5.60 miles) to the north west of the city centre. • Aberdeen city centre has wide appeal to the student population, with a range of chain and independent bars, restaurants and eateries, as well as an extensive shopping environment.

Situation • The Property is located to the north of Aberdeen city centre, situated fronting and accessed from Pittodrie Street, with an element of the Property fronting Merkland Street East.

• The Property is well located in terms of accessibility with Pittodrie Street accessed from King Street (A956) to the immediate west of the Property, which forms a main arterial route into the city centre from the north. • Aberdeen’s railway station is located within the city centre, approximately 1.80 km (1.10 miles) to the south of the Property and accessed within a c.25 minute walking time. • Surrounding uses are predominantly residential together with Aberdeen Football Club located c.300m to the east of the Property along Pittodrie Street. City University Provision • There are three higher education institutions in Aberdeen; The University of Aberdeen, Robert Gordon University and North East Scotland College. • Aberdeen University’s Old Aberdeen Campus is located 650m north west of the Property (11- minute walk, whilst the University’s Foresterhill Medical Campus is located c.2 km (1.25 miles) west of the Property (c.30-miuntes walk or commute via public transport). • Marischal College, the traditional campus centre of the University of Aberdeen, is situated within Aberdeen city centre fronting Broad Street, approximately 1 km (0.60 miles) south of the Property (c.15-miuntes walk). Whilst predominantly let to Aberdeen City Council, the

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Pittodrie Street, 3 - 10 Pittodrie Street, Aberdeen, AB24 5AD

University has retained partial use of the building for a debating chamber, museum and associated space. • Robert Gordon University’s Garthedee campus is located 5 km (3.10 miles) south west of the Property and a c.40 minute commute via public transport. • In addition, the North East College Scotland is located within Aberdeen city centre fronting Gallowgate, c.880m (15-minute walk) south west of the Property. • The main university campuses are located as follows:

1.2. Description

Summary • Purpose-built student accommodation scheme comprising 2 blocks separated by Pittodrie Street, constructed in 2018 (Block B - 132 beds) and 2019 (Block A - 486 beds).

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Pittodrie Street, 3 - 10 Pittodrie Street, Aberdeen, AB24 5AD

• Property provides a total of 618 student bedspaces arranged across the two blocks comprising 75 studios and 543 en suite bedspaces. • All accommodation is finished to a good quality standard and specification for the student accommodation market. • The Property provides a high level of onsite communal facilities within each block including reception area and management office, common area with demarcated spaces for studying and socialising, private study rooms, courtyard areas, roof terraces, laundries and cycle storage.

Construction • The Property comprises a new-build purpose-built student accommodation scheme arranged as 2 blocks separated by Pittodtie Street. • Block B achieved practical completion in 2018 and comprises 132 bedspaces arranged over lower ground, ground and 4 upper floors. • Block A achieved practical completion in June 2019 and comprises 486 bedspaces arranged over ground and 4 upper floors. • The blocks are of similar construction having external elevations clad in a mix of brick types with internal elevations to the Block B courtyard having an element of composite gold cladding. • Roofs to each block provide a mix of pitched and flat elements and incorporate roof terraces. • Windows throughout the blocks are double glazed in metal casements. • Block A provides a sunken rear courtyard area accessed at lower ground floor level whilst Block B provides 2 large internal courtyard areas accessed from the main reception and communal accommodation.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Pittodrie Street, 3 - 10 Pittodrie Street, Aberdeen, AB24 5AD

Layout and Specification • The Property provides a total of 618 bedspaces arranged across the blocks. • Whilst each block provides a reception area, the main reception is now situated within Block A following practical completion and accessed from Pittodrie Street. • Block B is formed of a single block with a central stair and lift core leading to the upper floors. Accommodation at each level is accessed a central corridor leading form the core area. • Common space within the block includes reception area and back office, common area with demarcated seating and studying areas, laundry and roof terrace. • Block A comprises a number of interlinking blocks formed around 2 internal courtyard areas. Accommodation at each level is accessed via central corridors leading form the core areas. • The common space within the block includes reception area and back office, large common area situated between the two courtyards with demarcated spaces for studying and socialising, private study rooms, large roof terrace, laundry and cycle storage.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Pittodrie Street, 3 - 10 Pittodrie Street, Aberdeen, AB24 5AD

Cluster Flat Accommodation

• The Property provides a total of 543 en suite bedspaces within 83 cluster flats of between 4 and 9-beds. • The rooms are offered as ‘Bronze’, ‘Silver’ and ‘Gold’ room types, varying dependent on room size and number of bedspaces sharing a cluster flat. • All bedspaces within Block A and Block B are finished to an identical, good quality standard of fixtures and fittings, comprising the following: » Plastered and painted walls and ceilings throughout incorporating recessed lighting. » Timber effect vinyl flooring to bedspaces and living/kitchen areas with hard-wearing carpet floors to hallways. » Heating via electric wall-mounted heaters and time controlled ‘boost’ buttons. » WiFi internet hub within each cluster flat. » Hard-wired smoke detectors. » ¾ size bed with underbed storage and shelf storage to bedhead. » Built-in desk with drawers, notice board, wall mounted shelving and desk chair. » Double wardrobe with drawers. » Wall mirror.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Pittodrie Street, 3 - 10 Pittodrie Street, Aberdeen, AB24 5AD

» Shower pod comprising ceramic sanitary-wear with stainless steel fittings, wall mounted mirror, bathroom cabinet, recessed LED strip lighting, thermostatic shower fitting and glazed shower door.

• The kitchen / lounge area serving each cluster flat are also decorated to a similar specification and are furnished as follows: » Modern fitted kitchen with base and wall units. » Laminate work surfaces with matching upstands. » Sink and drainer with modern mixer tap. » Integrated appliances to include 4-ring ceramic hob, extractor hood and electric oven together with combination microwave and free-standing fridge/freezer (2 of each appliance to 6+-bed cluster flats). » Fabric sofas with coffee table. » Dining table and chairs.

Studios • The scheme provides a total of 75 studios, offered as ‘Bronze’, ‘Silver’ and ‘Gold’ room types, varying dependent on room size. • The studios within Block A and Block B are identically finished and similarly appointed to the en suite bedspaces in terms of fixtures, fittings and shower pods. • Each studio provides kitchenette area similarly appointed to cluster flat kitchens but including the following differences:

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Pittodrie Street, 3 - 10 Pittodrie Street, Aberdeen, AB24 5AD

» Integrated appliances to include 2-ring ceramic hob, extractor hood and combination microwave oven with free-standing under-counter fridge/freezer. » Dining table and 2 chairs.

• The individual unit rents and values we are reporting are on the Assumption that the internal specification of the en suite bedspaces and studios which were not internally inspected are of a similar standard to those inspected and as detailed above. Should it be found that the units which were not internally inspected provide a lower quality specification, we should be informed immediately and allowed to reconsider our valuations. • Our opinions of rents and values are provided on the basis of the quality and specification of the inspected accommodation. • Should it be found that the accommodation provides a different specification or mix of accommodation types to that as advised, we should be requested to revisit our valuations.

1.3. Accommodation • The Property provides a total of 618 student bedspaces arranged across the two blocks comprising 75 studios and 83 cluster flats of between 4 and 9 bedspaces. • We have been provided with a breakdown of accommodation by the Borrower on which we have relied. • We have not undertaken a measured survey of the Property. As is consistent with the student accommodation sector, rents are based upon weekly rents per room and not on a price per square metre or square foot. • We detail below a breakdown of the advised accommodation:

Room Type No. Units

En Suite Bronze 476

En Suite Silver 60

En Suite Gold 7

Studio Bronze 51

Studio Silver 7

Studio Gold 17

Total / Average 618

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Pittodrie Street, 3 - 10 Pittodrie Street, Aberdeen, AB24 5AD

• Our valuation is based on the above accommodation mix as advised. Should it be found that the breakdown of accommodation is different to that as advised, we should be requested to revisit our valuations. Parking Provision • 5 car parking spaces for staff use together with 2 disabled spaces. • On street parking is available to students along Pittodrie Street and surrounding streets, with a restriction during Aberdeen Football Club match days.

2. Structural Condition and Repair • We have not carried out a building or condition survey. • We have not been provided with a copy of a Building or Condition Survey or a Mechanical and Electrical Systems Report, Lift Report or Fire Systems Report. • The Property comprises a new-build purpose-built student residential scheme completed in 2 phases between 2018 and 2019. • Our inspection of the external parts of the Property was from ground floor level only and as such we have not inspected the roofs. Our internal inspection comprised of a mix of cluster flat bedspaces and studio types together with the scheme’s communal accommodation. • The internally inspected accommodation was finished to a good quality specification throughout and provides a good condition given its recent completion. • During the course of our inspection we did not note any defects requiring further attention. • Our internal inspection of the Property was limited to a select number of accommodation units. We have therefore made the assumption that the accommodation which was not inspected is of a similar condition to that inspected. • We have assumed that all works of construction have been satisfactorily carried out in accordance with current British Standards and any relevant codes of practice. We have further assumed that all building works are covered by warranties/guarantees in the event of any future defects due to workmanship/materials which may need addressing. • We recommend that your legal advisors confirm that where warranties and guarantees are provided in relation to the building works, these are assignable to the Bank and any future financial lending institutions and/or purchasers as required. • The nature of student accommodation is such that in order to maintain the appearance of the Property and student demand, and to protect the Bank’s security, the Borrower will have to ensure they are proactive in the management, maintenance and repair of the building, undertaking a planned preventative maintenance programme to prevent any deterioration in items which need repair, ensuring operating costs are minimised.

Services • We have assumed that the Property is connected to mains water, electricity and sewerage services.

Remaining Useful Economic Life • We consider the building has a remaining useful economic life, provided it is properly maintained, of 30 years.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Pittodrie Street, 3 - 10 Pittodrie Street, Aberdeen, AB24 5AD

Estimated Reinstatement Cost Assessment • Our indicative guide to the Day One Cost is in the order of £35,702,000 (exclusive of VAT). C&W has not carried out a formal reinstatement cost assessment. • This guide figure envisages reconstructing the Property at the Valuation Date with clearance and reinstatement using modern methods and materials, which may not necessarily be appropriate or permitted. It does not reflect any additional costs attributable to conservation area status or listed building status (or similar – for example proximity to listed buildings) • The provision of this guide figure is strictly in accordance with the terms of the Engagement and you should not rely on this guide for any purpose before it has been confirmed by a formal assessment carried out by a building surveyor or other person with sufficient current experience of replacement costs.

3. Site

Boundary

Area • Based on Ordnance Survey plans we calculate the approximate site area to be:

Block A 1.65 acres 0.67 hectares

Block B 0.45 acres 0.18 hectares

Ground Conditions • We have not been provided with any information that indicates there are adverse ground conditions affecting the Property.

15 Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Pittodrie Street, 3 - 10 Pittodrie Street, Aberdeen, AB24 5AD

Archaeology • We have made an assumption that the site has no archaeological significance.

Flooding Risk • Plans reviewed by us on the Scottish Environment Protection Agency (SEPA) website indicate that the Property is not in, or near to, a sea or river floodplain. • The SEPA plan is shown below with the approximate position of the Property is shown by a red arrow:

Source: Scottish Environmental Protection Agency Website • The SEPA map indicates that the site is considered to have a low likelihood of flooding. • On 4 April 2016, a new scheme was introduced, called Flood Re, to enable owners of residential properties in flood risk areas to obtain insurance on more affordable terms. Designed by the Government and the insurance industry, Flood Re will collect a sum from every home insurer in the UK and then take responsibility for the flood risk part of the policy and manage a central fund. In the event that a householder has to make a claim on their insurance policy Flood Re would reimburse the insurer from the central Flood Re fund.

4. Environmental Considerations and Environmental Performance

4.1. Environmental Considerations • We have made the enquiries referred to in the terms of the Engagement. • We have been provided with a copy of a Phase I Environmental Site Assessment (ESA) dated July 2019) prepared by Delta Simons (Ref 19-1146.01) which we have reviewed. • We note that the Report provides a desk-based environmental assessment of the Property and does not include any intrusive site investigations.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Pittodrie Street, 3 - 10 Pittodrie Street, Aberdeen, AB24 5AD

• The Report does however review a report on Site Investigations by Mason Evans Geo- environmental Consultants, dated April 2016. • The Report details the following findings:

• The Report considers both perceived and actual risks using the pollutant linkage concept, with the principal measure of risk being whether significant harm (to people, animals, property, or statutory ecological receptors) or pollution of controlled waters (surface water bodies, aquifers, coastal waters, or territorial waters) is being caused, or whether there is a significant possibility of such harm being caused. • The Report provides the following ‘Land Contamination Risk & Liability Assessment’:

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Pittodrie Street, 3 - 10 Pittodrie Street, Aberdeen, AB24 5AD

• The Report states the following recommendations:

• Given the recent completion of the Property and the discharge of the relevant Condition under the approved Planning Permission in relation to ground contamination and remediation, we have assumed that any identified contamination has been fully remediated during the course of development by a suitably qualified specialist contractor. • Save for the above, our enquiries have provided no evidence that there is a significant risk of contamination or other adverse environmental issues in respect of the Property. Accordingly, as agreed, we have made an assumption that no contamination or other adverse environmental matters exist in relation to the Property sufficient to affect value. • Other than as referred to above, we have made no investigations to establish if there is existing or potential contamination or other adverse environmental issues and, in practice, a purchaser may undertake further investigations. • If it is subsequently established that contamination or other adverse environmental issues exist at the Property or on neighbouring land, or that the premises have been or are being put to a contaminative use, this might reduce the value now reported. You are advised to ensure your legal adviser takes up the usual enquiries on your behalf in respect of possible contamination or other adverse environmental issues before entering a financial commitment regarding the Property.

4.2. Environmental Performance • Energy Performance Certificates (EPCs) must be produced for all properties before being marketed for sale or lease.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Pittodrie Street, 3 - 10 Pittodrie Street, Aberdeen, AB24 5AD

• The Energy Performance of Non-Domestic Buildings (Scotland) Regulations 2016 (the "Regulations") Section 63, effective from 1 September 2016, states that owners of non- domestic buildings in Scotland will have additional responsibilities relating to the energy performance and greenhouse gas emissions of affected non-domestic property being sold or leased. • The Regulations require owners of non-domestic buildings larger than 1,000 sq m (10,764 sq ft) to have completed an energy assessment and target improvements to produce an Action Plan. The requirement is triggered by a lease to a new tenant or a sale. Buildings that meet energy standards equivalent to those introduced by the 2002 Scottish Building Regulations are deemed to already be reasonably efficient and are therefore exempt from the Regulations. • The Action Plan must be prepared and issued by a qualified person (a “s63 Advisor”) following an assessment of the property's energy performance. This action plan must: - Identify targets for improvement of the carbon and energy performance of the building. - Provide a list of measures to improve the energy performance and carbon emissions of the building. • Under the legislation, if the Action Plan states that improvements are to be carried out, the owner can defer doing these works up to and beyond a 42-month deadline if the reporting of annual operational ratings is commenced within 12 months after the first Action Plan is issued, and the owner obtains and displays in a prominent place in the building a current "Display Energy Certificate" for the building, which must be updated on annually.

Energy Performance Certificate • We have checked the Scottish Domestic and Non-Domestic Energy Performance Certificate (EPC) Registers. • We have identified the following EPC assessments for the Property:

Address Rating Date Certificate Number

3 Pittodrie Street, C 42 6 Aug 2018 9162-3568-3583-0900-6105 Aberdeen AB24 5QU

10 Pittodrie Street, D 47 8 May 2019 7810-9631-1539-2905-3002 Aberdeen AB24 5QU

• We have not identified any EPC assessments for the individual cluster flats and studios within the subject property. • The Property is currently compliant with the minimum requirements of the Regulations.

5. Statutory Matters • We have made the enquiries referred to in the terms of the Engagement.

Town Planning

Overview

a. Local planning authority Aberdeen City Council

b. Current planning use Student Residential

c. Listed Building status? No

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Pittodrie Street, 3 - 10 Pittodrie Street, Aberdeen, AB24 5AD

Overview

d. Conservation Area? No

e. Outstanding applications? No

Planning History • Planning permission for the Property’s construction was approved by the Local Authority as follows:

Date Status Details

3 Feb 2017 Approved Planning Ref: 160845 Redevelopment of site, erection of student accommodation of max.618 bed spaces, up to 5 storeys with associated works.

• We confirm that the Property as approved under the above planning permission is the Property to which this valuation relates. • The approved planning permission was subject to 16 Conditions. • We understand from the provided Certificates of Title prepared by Brodies LLP (each referenced CMD.DBA.PBS4.4) that all pre-commencement conditions have been complied with. • The planning permission requires the provision of the following prior to occupation by students: Condition 3 A scheme detailing proposals for the storage and collection of refuse generated on the site, including recycling facilities, has been has been submitted to and approved in writing by the planning authority. Condition 5 None of the units hereby approved shall be occupied unless the cycle storage / parking facilities shown on drawing number 15065-L-200 rev E05 have been implemented and are available for use. Condition 6 A scheme detailing compliance with the council's Low and Zero Carbon Buildings supplementary guidance, including details of potential connection to the Aberdeen Heat and Power district heating network, has been submitted to and approved in writing by the planning authority and any recommended measures within that scheme for the reduction of carbon emissions have been implemented in full. Condition 10 Provision has been made for the upgrading of the footways at the development frontages on Pittodrie Street and Merkland Road East, in accordance with a scheme which has first been submitted to and approved in writing by the planning authority prior to the commencement of works. Condition 12 A Travel Plan has been submitted to and agreed in writing by the planning authority, including details of a Travel Pack to be provided to residents of the development. Condition 13 A Management Plan relating to the operation of the approved student accommodation facility, including management of on-site parking, has been submitted to and agreed in writing by the planning authority, and thereafter is managed in accordance with the details so agreed.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Pittodrie Street, 3 - 10 Pittodrie Street, Aberdeen, AB24 5AD

• We are unaware as to whether each of the above pre-occupation Conditions have been discharged. We therefore recommend your legal advisors confirm this position. • The planning permission was further subject to a Section 69 (S69) Agreement between Watkin Jones & Son Limited and Aberdeen City Council dated 26 January and 2 February 2017. The Agreement provided for various contributions to be paid to the Council prior to the grant of the planning permission, totalling £58,803. • The provided Certificates of Title confirms that these contributions have been paid in full. • We are aware of the following additional planning permissions relating to the Property:

Date Status Details

19 June 2019 Approved Planning Ref: 190869/ADV Installation of 2 non-illuminated fascia lettering signs and 2 non-illuminated aluminium plate signs

• We are not aware of any further planning applications in respect of the Property.

Policies Affecting the Property • Planning policy for the area is contained within the Aberdeen City Council Local Development Plan, which was adopted on 20 January 2017. • The Property is located in an area zoned for as a ‘Mixed Use Area (H2)’.

Other Statutory Matters • The Property is not listed or situated within a conservation area. • We are not aware of any road scheme or compulsory purchase order that could affect the Property. • The Property has frontages onto Pittodrie Street, Pittodrie Lane and Merkland Road East which we understand have each been adopted by the Local Highway Authority and maintained at the public’s expense.

6. Taxation

Business Rates • We have checked the Scottish Assessors Association (SAA) website (www.saa.gov.uk). • We have identified the following current Business Rates Assessments for the Property within the SAA’s 2017 Rating List:

Address Description Rateable Value Source

Sales Office, Sales Office £5,100 SAA Website Pittodrie Street (Student Roost) Aberdeen AB24 5QL

Site Huts, Site Huts £8,900 SAA Website Pittodrie Street (Robertson Construction Aberdeen Eastern) AB24 5QL

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Pittodrie Street, 3 - 10 Pittodrie Street, Aberdeen, AB24 5AD

• Given the practical completion of the Property, we would expect the above ‘Site Huts’ assessment to be removed from the Rating List. • In Scotland, Non-Domestic Rating Multiplier for the fiscal year 2019/2020 has been set at 49.0 pence in the pound for properties with a rateable value up to £51,000. Those properties with rateable values in excess of £51,000 are liable for a supplement of 2.6 pence in the pound. • There are no transitional arrangements for properties in Scotland for the 2017 Rating List.

Council Tax • The Property is assessed for Council Tax purposes under 133x assessments for the bedspaces within Block B. • The bedspaces within Block A are yet to be assessed following their practical completion. We expect these bedspaces to be assessed by the Local Authority and given an appropriate Council Tax Band. We recommend your legal advisors confirm this position. • We note that the Property provides student accommodation and will therefore be occupied by students who are exempt from Council Tax. • We do however note that should any accommodation not be let, the owner/operator could be responsible for the payment of Council Tax for the respective unit.

Value Added Tax • We have not been advised as to whether an election has been made to waive exemption to VAT in respect of the Property. • The capital valuations and rentals included in this Report are net of Value Added Tax at the prevailing rate.

Capital Allowances • There may be capital allowances available to a purchaser of the Property. We have not considered the benefits of these in our valuation. Should these be available, this may assist the marketing of the Property.

7. Tenure and Occupational Interests

7.1. Title

Overview

Title no(s) Block A ABN20394 Block B ABN131123

Type of Tenure Block A Ownership Block B Ownership

Any material encumbrances or unduly onerous / unusual None of which we are aware easements, restrictions, outgoings or conditions?

Any title characteristics likely to have an adverse impact on None of which we are aware value, either now or over the proposed loan term?

• We have made the enquiries referred to in the terms of the Engagement.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Pittodrie Street, 3 - 10 Pittodrie Street, Aberdeen, AB24 5AD

• We have been provided with copies of separate Draft Certificates of Title in respect of Bock A (Site 2) and Block B (Site 1) prepared by Brodies LLP (each referenced CMD.DBA.PBS4.4) which we have reviewed. • We can confirm that the Property as detailed within the Draft Certificates of Title is the Property which we have valued and to which this Valuation Report relates. • We further confirm that we have considered all content within the provided Draft Certificates of Title in undertaking our valuations Block A • We understand that Block A at the Property is held with Ownership under Title Number ABN20394 (currently undergoing registration in the Land Register of Scotland). • The extent of the Title is shown below:

Title Plan CoT Plan 2 CoT Plan 3

• Save as detailed in the Certificate of Title, we understand that the Property’s title is free from rent charge, restriction as to use, title or occupation and free from any other restriction which may affect value. We have not had sight of the title deeds. • The Certificate of Title does however highlight the following: Part of the Property Shaded Pink on the CoT Plan 2 • This element of the Property is affected by the following title conditions: » The mines, metals and minerals are reserved to the granter and their successors including full power for them to search for, work and carry away the minerals on payment to the owners of 3 Pittodrie Street of such damage occasioned to the surface of the land and buildings. » The owners are bound to erect according to the position, plans, elevations and materials approved and thereafter to maintain, renew and rebuild in all time coming a dwelling house (of the value of £400) facing the new road. The owners were entitled if they desired to erect two other dwelling houses (of the value of not less than £400) facing the road. The owners were prohibited from erecting any other buildings on this part of the Property The buildings to be erected not be used for any other purpose than as dwelling houses for the accommodation of one or more tenants unless otherwise approved.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Pittodrie Street, 3 - 10 Pittodrie Street, Aberdeen, AB24 5AD

» The owners were obliged to maintain a gravel or paved footpath along the south side of this part of the Property » The owners were bound to erect and maintain good rubble stone and lime walls 15 inches thick at the bottom and 9 inches thick at the top and six feet in height along all the east, north and west boundaries of this part of the Property. There are also provisions dealing with sharing the cost of erecting and then maintaining these walls with the owners of the adjacent subjects. » Certain “nuisance” uses are prohibited on this part of the Property including use as a cow house; pig house; brewery; distillery; workshop or yard for masons, wrights, smiths, coopers; weavers; candlemakers; crackling house; slaughter house; steam engine manufactory; place of amusements or any other nuisance; carrying on any nauseous chemical operations; noxious or noisy manufacturers; a shop of any kind; selling spirits or malt liquors or quarrying stone. » There are also provisions relating to contributing towards the cost of forming the street adjacent to this part of the Property • The Certificate of Title states that ‘While the use of the Property may technically breach the terms of the burdens, we would comment that the burdens are contained within quite historic deeds and it is unlikely that any party will seek to enforce them or establish sufficient title and interest to do so given the passage of time and the nature of the area. The obligations in respect of contributions towards the streets and roads are superseded by roads adoption by the local authority. Some of the obligations in respect of boundary walls will no longer be relevant given that the Property is made up of a number of neighbouring plots’. • The Certificate of Title details an existing Title Indemnity Insurance Policy is in place in respect of the reservation of the minerals at the Property dated 6 April 2017 (summarised below). • A further Title Indemnity Insurance Policy has been obtained by the Borrower in respect of the burdens and title conditions contained within the historic title deeds dated 5 October 2017 (summarised below). Part of the Property Shown Outlined Red on the CoT Plan 3 • This element of the Property is affected by the following title conditions: » The Title notes that Douglas Metals (Aberdeen) Limited have exercised a right of vehicular access to their property to the north over the west part of this part of the Property. • The Certificate of Title details an existing Title Indemnity Insurance Policy in respect of the right of access over the part of the Property to the East of Pittodrie Lane (summarised below).

Block B • We understand that Block B at the Property is held with Ownership under Title Number ABN131123. • The extent of the Title is shown below:

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Pittodrie Street, 3 - 10 Pittodrie Street, Aberdeen, AB24 5AD

Title Plan CoT Plan 2 CoT Plan 3

CoT Plan 4 CoT Plan 5 CoT Plan 6

• Save as detailed in the Certificate of Title, we understand that the Property’s title is free from rent charge, restriction as to use, title or occupation and free from any other restriction which may affect value. We have not had sight of the title deeds. • The Certificate of Title does however highlight the following: • The elements of the Property shaded pink on the CoT Plan 2 (1-4 Pittodrie Street); Plan 3 (1- 6 Pittodrie Street); Plan 4 (8-10 Pittodrie Street excluding the small triangle shaded blue); Plan 5 (1-9 Merkland Street East); and Plan 6 (1-15 Merkland Street East) are each affected by the following title conditions: » The mines, metals and minerals are reserved to the Association and their successors. » Certain “nuisance” uses are prohibited on this part of the Property including use as a stone quarry; sand pit; clay pit; brewery; distillery; slaughter house; tannery; making soap, candles or glue; an inn, hotel or public house. » There is a prohibition on displaying any bills or signs or other advertisements except those necessary for re-letting / selling the property and signs of the usual size and character for any business at the property. • The Certificate of Title states that ‘While the use of the Property may technically breach the terms of the burdens, we would comment that the burdens are contained within quite historic

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Pittodrie Street, 3 - 10 Pittodrie Street, Aberdeen, AB24 5AD

deeds and it is unlikely that any party will seek to enforce them or establish sufficient title and interest to do so given the passage of time and the nature of the area. The obligations in respect of contributions towards the streets and roads are superseded by roads adoption by the local authority. Some of the obligations in respect of boundary walls will no longer be relevant given that the Property is made up of a number of neighbouring plots’. • The Certificate of Title details an existing Title Indemnity Insurance Policy is in place in respect of the reservation of the minerals at the Property dated 6 April 2017 (summarised below). • A further Title Indemnity Insurance Policy has been obtained by the Borrower in respect of the burdens and title conditions contained within the historic title deeds dated 5 October 2017 (summarised below). • The individual elements are additionally subject to title conditions affecting the respective elements as follows: Part of the Property Shaded Pink on the CoT Plan 2 (1-4 Pittodrie Street) • This element of the Property is affected by the following title conditions: » The owners are bound to erect and maintain stone and lime and slated buildings (of the value of £720). The owners were prohibited from erecting or altering or restoring any other buildings on this part of the Property until the sites, levels, plans and elevations were approved by the Association. » Any buildings erected on this part of the Property are to be maintained by the owners in good order and repair or they will be entirely removed and the sites left clear. » The owners were bound (if not already done) to erect and maintain good stone and lime walls six feet in height along the West and North boundaries of this part of the Property, and when called upon along the South and East boundaries. There are also provisions dealing with sharing the cost of erecting and then maintaining these walls with the owners of the adjacent subjects. » There are also provisions relating to contributing towards the cost of repairing and maintaining the street and lane adjacent to this part of the Property. Part of the Property Shaded Pink on the CoT Plan 3 (1-6 Pittodrie Street) • This element of the Property is affected by the following title conditions: » The owners had the right to erect such buildings as they require for the purposes of their business but were prohibited from erecting or altering or restoring them or any other buildings on this part of the Property until the sites, levels, plans and elevations were approved by the Association. » The owners were bound to erect when called upon and thereafter maintain walls or fences along the boundaries of this part of the Property of a height and material to be approved. » The owners are prohibited from having any buildings, fences structures or erections other than those expressly provided for above on this part of the Property » There are also provisions relating to contributing towards the cost of forming Pittodrie Street. Part of the Property Shaded Pink on the CoT Plan 4 (8-10 Pittodrie Street) • This element of the Property (excluding the small triangle shaded blue) is affected by the following title conditions: » The owners are bound to erect and maintain substantial stone and lime buildings (of the value of at least £500). The owners were prohibited from erecting or altering or restoring

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Pittodrie Street, 3 - 10 Pittodrie Street, Aberdeen, AB24 5AD

any other buildings on this part of the Property until the sites, levels, plans and elevations were approved by the Association. The owners are bound to maintain a building of equal quality on this part of the Property in all time coming. The owners prior to the Sellers obtained a waiver from the successors of the Association in 1989 in respect of any claims arising as a result of there being no building on that part of the Property at that time. » The owners were bound to erect and maintain good stone and lime walls six feet in height along all the boundaries of 8-10 Pittodrie Street, part of which forms part of the Property. There are also provisions dealing with sharing the cost of erecting and then maintaining these walls with the owners of the adjacent subjects. » There are also provisions relating to contributing towards the cost of forming the street adjacent to this part of the Property Part of the Property Shaded Pink on the CoT Plan 5 (1-9 Merkland Street East) • This element of the Property is affected by the following title conditions: » The owners had the right to erect such buildings as they require for the purposes of their business but were prohibited from erecting or altering or restoring them or any other buildings on this part of the Property until the sites, levels, plans and elevations were approved by the Association. » The owners were bound to erect when called upon and thereafter maintain walls or fences along the boundaries of this part of the Property of a height and material to be approved. » The owners are prohibited from having any buildings, fences structures or erections other than those expressly provided for above on this part of the Property » There are also provisions relating to contributing towards the cost of forming Pittodrie Street. Part of the Property Shaded Pink on the CoT Plan 6 (1-15 Merkland Street East) • This element of the Property is affected by the following title conditions: » The owners are bound to erect a good and substantial workshop building (of the value of £300) which was to be made of granite except for the upper half of the front wall which was to be corrugated iron and roofed with slate. There are particular requirements for the materials of the walls along Merkland Road East. The owners were bound to maintain the building in good repair in all time coming and if destroyed to restore or re- erect it, and in all time thereafter to maintain on this part of the Property a building of the same material and value as that first built. Any stable or coach house which may be erected shall be on the northmost part of this part of the Property and at least 90 feet from Merkland Road East, and no higher than 20 feet. The owners are prohibited from erecting or altering or restoring any other buildings on this part of the Property until the sites, levels, plans and elevations and materials were approved by the Association. » The owners were bound to erect and maintain a good stone and lime wall six feet in height along the West boundary, a granite wall and coping 2 feet in height along the south boundary, and a wooden fence along the north boundary of this part of the Property. There are also provisions dealing with sharing the cost of erecting and then maintaining these walls / fences with the owners of the adjacent subjects. » There are also provisions relating to contributing towards the cost of forming Merkland Road East adjacent to this part of the Property. Boundary Wall Between 8-10 Pittodrie Street and 15 Merkland Road East

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Pittodrie Street, 3 - 10 Pittodrie Street, Aberdeen, AB24 5AD

• By way of a Minute of Agreement between Coutts and Younie Limited and Frederick William Singer dated 31 March 1913, the Deed provides for maintenance to be at the mutual expense of the owners of the two properties. Gable Wall at 17 Merkland Road East • By way of a Minute of Agreement between George Bisset, William James Middleton and Frederick William Singer dated 31 March 1913, the owner of 15 Merkland Road East agreed to erect pillars for the support of the building they intended to build on this part of the Property and to erect a boundary wall gutter with rain water pipes to take the water away from his own property in so far as it adjoins the property in 17 Merkland Road East. • The owner was bound to maintain that gutter in all time coming. The owners of 17 Merkland Road East gave the owners of 15 Markland Road East a right to use their gable wall as an enclosing wall, but not to drive in pegs or do anything which might affect its stability or damage it. • In the event the gable wall at 17 Merkland Road East falls in or requires repair then the owner of 17 Merkland Road East was liable to rebuild or repair it. Title Insurance Policies Mines and Minerals • The Certificate of Title details an existing Title Indemnity Insurance Policy is in place in respect of the reservation of the minerals at the Property (covering Block A and Block B) dated 6 April 2017. • The policy was issued by DUAL Asset Underwriting with the insurer being Fidelis Underwriting Limited. • The Insured is stated to be Pittodrie Street Aberdeen Limited (the Previous Owner) and all successors in title (including heritable creditors and tenants). • The total limit of the indemnity is £53,900,000 with the Insured Use being development and use of the Property as student accommodation in accordance with planning permission (application reference number 160845) and any permitted variation thereof. Historic Title Deeds • A Title Indemnity Insurance Policy has been obtained by the Borrower in respect of the burdens and title conditions contained within the historic title deeds at Block A and Block B dated 5 October 2017. • The policy was issued by DUAL Asset Underwriting with the insurers being Catlin Insurance Company (UK) Ltd, Royal and Sun Alliance Insurance plc and Fidelis Underwriting Limited. • The insured is stated to be Pittodrie Street Aberdeen Limited (the Previous Owner) and all successors in title (including heritable creditors and tenants.) • The total limit of indemnity is £53,900,000. • The Insured Use is Student Accommodation development as per planning permission granted prior to the Policy Commencement Date. Right of Access (Block A) • The Certificate of Title details an existing Title Indemnity Insurance Policy in respect of the right of access over the part of the Property at Block A to the East of Pittodrie Lane. • The policy was issued by Title Solv with the insurer being International Insurance Company of Hannover SE UK Branch.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Pittodrie Street, 3 - 10 Pittodrie Street, Aberdeen, AB24 5AD

• The Insured is stated to be the Previous Owner and its successors in title (including chargees and tenants). • The total limit of the indemnity was originally £10,000,000 but the Company has increased this to £15,000,000 with effect from 29 September 2017. • The Insured Use is the development and subsequent use of the Property as student accommodation and ancillary uses such as a management office within the Property or a commercial unit. Substation Lease • Lease of an Electrical Substation for a term of 99 years with effect from the 3rd October 2018. • The lease is subject to an annual rent of £1 per annum (if demanded).

7.2. University Agreements • None. • The Property does not benefit from any formal agreements with any universities or education providers.

7.3. Occupational Interests • We have been provided with tenancy information and forecast revenues for the current 2019/20 academic year by the Borrower on which we have relied. • The Property provides a total of 618 student bedspaces arranged within 75 studios and 543 en suite bedspaces. • Accommodation is let to students on Assured Shorthold Tenancies (ASTs). We have assumed that the Borrower or their Managing Agents are accredited to a Tenant Deposit Scheme (TDS). We recommend that your legal advisors confirm this position. • We are advised that the Property has achieved c.97.9% occupancy by room number for the 2019/20 academic year which is ahead of the 45.9% achieved for the 2018/19 year for Block B. • We believe that the low achieved occupancy is partly attributable to the more constrained market experienced for the 2018/19 academic year. • The advertised weekly rents for en-suite bed spaces is from £124 from 42 weeks for the 2019/20 academic year and up to £189 for studio rooms from 44 weeks. We note however, that the average tenancy length achieved thus far equates to 44.7 weeks for 605 rooms. • As at the date of valuation, the aggregate achieved rent for the 2019/20 academic year totals £3,367,1382 based on the lettings to date. In our appraisal, we have assumed that the total income achieved will be £3,570,778 including an element of summer occupancy. • Most of the students at the Property will be studying at the University of Aberdeen and are predominantly non UK domiciled.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Pittodrie Street, 3 - 10 Pittodrie Street, Aberdeen, AB24 5AD

8. Student Market Considerations

8.1. Student Occupational Market

National Market Commentary Please refer to our National Student Market Commentary in Part A

Aberdeen Market Commentary • We provide a detailed overview and assessment of the Aberdeen Student market within the Appendices of this report. • This includes an analysis of university performance within the city, student demand characteristics, level of competition and accommodation supply for purpose-built student accommodation schemes and analysis of the pipeline of development of accommodation and its likely impact on the future lettings market. • The Cushman & Wakefield Student Accommodation Tracker records 8,607 purpose-built student accommodation bedspaces in Aberdeen in 2019/20. These are broadly split equally between the universities and private sector (43% and 57% respectively). • Both the University of Aberdeen and Robert Gordon University provide their own accommodation, totalling c.3,690 rooms, although both universities have nomination agreements with private operators. • The demand pool of students within the city, taking into account the University and private sector supply of accommodation, and latest HESA student number data (2017/18) (excluding students who are unlikely to demand accommodation in the City) suggests a student:bed ratio for the city of 1.8:1. • By way of comparison C&W’s calculation of the nationally observed average student:bed ratio is 2.0:1. We note however that the SBR is based on the latest available 2017/18 HESA data and bedspace numbers as at the same date and may not reflect current demand levels. • A ratio of 1.8:1 can be considered healthy, but Cushman & Wakefield are aware of occupancy issues in the City due to new development and the ending of a large number of nomination agreements. This said, the pipeline has shrunk considerably recently due to a number of developers looking at alternate uses or putting student developments on hold. Going forward the SBR is likely to remain the same should the universities maintain their current recruitment trajectory or even increase if the University of Aberdeen can recruit to target in the coming years. • Circa 54% of private bedspaces in the City are en-suite (direct let and nominated). Studio rooms make up 15% with standard rooms comprising 31% of the total private stock in the City. • Total university accommodation comprises 77% standard rooms with en-suite rooms comprising 22% of accommodation. The remaining 1% of accommodation comprising of studios and apartments. • In terms of rents in the direct-let sector, C&W has calculated an average 2019/20 rent for an en-suite bed spaces in Aberdeen to be £128 per week. Studios are on average £167 per week. Let lengths for en-suite rooms range between 40 and 51 weeks whilst studios are predominantly let for 51 weeks with shorter term lets available. • Aberdeen is one of the few cities to see an overall decrease in rents due to occupancy issues, with the private sector being most affected and in particular studio units.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Pittodrie Street, 3 - 10 Pittodrie Street, Aberdeen, AB24 5AD

• Studio prices have fallen significantly over the past year with weekly rents reducing by c.10% on average from the 2018/19 academic year. This has been driven by a combination of increased availability of this accommodation product within the market and falling demand. • The number of studios in the Aberdeen private accommodation market has increased by 155% since 2016, with 445 new studios being brought to the market in 2017, 2018 and 2019. • The typical demand profile for a studio room is international and mature postgraduate students with numbers of these in the City reducing in recent years.

• En-suite beds at Pittodrie Street are predominantly offered at £129 (Bronze En Suite) with rents offered up to £149 per week (Gold En Suite), placing the majority of beds in line with the market, however having regard to the quality of the scheme the rents are highly competitive. • Studio rooms are offered at between £169 and £189 per week, and are in line with the mid- upper range of the market rental range. • We note that a large proportion of the market has reduced in price in recent years to maximise occupancy in a challenging market, however the majority of this stock is poor or average quality and as such the new-build nature and quality of the Property will perform well in achieving high occupancy. • We refer you to the detailed Aberdeen student market analysis within the appendices of this report.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Pittodrie Street, 3 - 10 Pittodrie Street, Aberdeen, AB24 5AD

Competing Student Schemes

Caledon Court

Operator: Fresh Student Living No. Beds: 200

Specification Good quality

Room Type Let Length 2019/20 Rent P/Wk

Ensuite 51 £137 up to £165

Ensuite 44 £142 up to £168

Studio 51 £173 up to £193

Studio 44 £178 up to £193

Comments: • Modern recently constructed purpose-built accommodation with a reasonable amenity provision including a common room, vending machine and outdoor space. Scheme is located opposite Robert Gordon University and separated from the city centre and Aberdeen University. • Located opposite Robert Gordon University. • Located a 40-minute bus journey from the University of Aberdeen. • Located a 30 minute bus journey from Aberdeen city centre.

Causeway View

Operator: Unite Students No. Beds: 399

Specification Good quality (more unique conversion style)

Room Type Let Length 2019/20 Rent P/Wk

Ensuite 40 £129 up to £143

Ensuite 51 £123 up to £137

Studio 40 £187

Studio 51 £165 up to £190

1 Bedroom Apartment 51 £205

Comments: • Converted in 2016 from a period style property offering a range of ensuite and studio accommodation and some 1 bed apartments. High levels of amenity space including a gym, common areas, vending machines and a rooftop terrace. • Located within a 20-minute walk of the University of Aberdeen. • Located within a 20-minute walk of Aberdeen city centre. • Located a 45-minute bus journey from Robert Gordon University.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Pittodrie Street, 3 - 10 Pittodrie Street, Aberdeen, AB24 5AD

Trinity Court

Operator: U-Student Aberdeen No. Beds: 222

Specification Good quality

Room Type Let Length 2019/20 Rent P/Wk

Ensuite 44 £155

Ensuite 51 £148

Studio 51 £190

Comments: • New build student accommodation for September 2019. Relatively high specification apartments and shared spaces. Amenity provision limited to a social area and laundry. • Located a 30-minute bus journey from the University of Aberdeen. • Located within a 25-minute walk of Aberdeen city centre. • Located within a 45-minute walk or 22 minute bus journey of Robert Gordon University.

• Studio rents in Aberdeen range from £127/week to £190/week on 40-51 week tenancy lengths. En-suite rents range from £88/week to £160/week of a mixture of tenancy lengths. The majority of the PBSA schemes are located on the periphery of the commercial core, focused towards the north of the city centre. Most of the stock is converted traditional Aberdeen style properties. • From the properties listed above we note that competing PBSA rents are higher than those set at the Property. All the comparable properties are good modern PBSA schemes offering a range of facilities and would offer students a credible choice. • In our judgement, the rents at the Property have been set approximately 10% discount to the market. We believe this strategy has been adopted to boost occupancy, gain valuable traction and establish the Property’s presence in the market. • As the Aberdeen market has recently been through a period of rent rebasing with lower than expected occupancy in a number of schemes, we believe this strategy to capture the market at an early stage will reinforce the property’s presence in the market. • We refer you to the detailed Aberdeen student market analysis within the appendices of this report.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Pittodrie Street, 3 - 10 Pittodrie Street, Aberdeen, AB24 5AD

8.2. Student Investment Market • We provide a detailed comparable analysis of investment transactions and achieved yields in the market place within the front section this report. • We set out below recent comparable investment transactions to the Property: • October 2018 - Marketgait Apartments, Dundee 90 North Real Estate Partners (90 North), in partnership with Rasameel Investment Company, has acquired Marketgait Apartments, a 116-bed student accommodation investment in Dundee from Maven Capital Partners. The agreed sale reflects a NIY of 6.20% and average value per bedspace of £81,900 • August 2018 – The Mill House, Edinburgh 90 North real Estate Partners LLP and a Malaysian Fund have purchased The Mill House from IPIM for a reported £25,130,000. The scheme comprises 257 bedspaces within a mix of cluster and studio accommodation. The agreed sale reflects a NIY of 5.85% and average value per bedspace of £97,780

• March 2018 - Wellgate House, 200 Cowgate, Edinburgh Wellgate House has been sold to an undisclosed buyer for £6,200,000. The scheme is a former 8 storey office building that has been converted to student accommodation. It is well located in the city centre and offers good quality accommodation over 64 beds in a mixture of en-suite clusters, studios and one bedroom apartments. The agreed price reflected a Net Initial Yield of c.6.20% and equated to c.£96,875 per bedspace.

• January 2018 - Old Mill, Dundee The scheme was acquired for £20,250,000 by Lxi REIT reflecting a NIY of 6.30%. The scheme benefits from a 23 year lease to Mears Group. The agreed price reflects £50,000 per bedspace. The building provides 413 beds split as 319 single rooms within cluster flats of two to six beds with a further nine one-bed flats and 25 self-contained studio flats. • October 2017 – 123 Fountainbridge, Edinburgh The scheme was acquired for £24,000,000. The property comprises a purpose-built accommodation scheme dating from the early 2000s providing a total of 331 standard bedrooms across 57 cluster flats. The property benefits from a 1-year Nominations Agreement with the University of Edinburgh for 150 bedspaces (45% of accommodation). The agreed price reflected a Net Initial Yield of c.6.50% and equated to c.£72,500 per bedspace. The property is located in the Fountainbridge area of Edinburgh city centre, situated within 10 minutes’ walk of the University of Edinburgh’s campus. The property comprises an older purpose-built accommodation scheme providing standard bedspaces. The yield achieved is reflective of the location and age and specification of the property. • January 2017 - The Haymarket, 5 West Park Place, Edinburgh The Haymarket was acquired by a JV between Starwood Capital Group and Roundhill Capital. The property was acquired as part of a wider portfolio from Watkin Jones. The property comprises a recently completed purpose-built accommodation scheme which opened for the 2014/15 academic year and which provides 168 student bedspaces arranged as 89 studios and 79 cluster flat bedspaces. We understand that the agreed sale price for this asset within the portfolio was c.£15.60m which reflected a Net Initial Yield of c.6.10% and equated to c.£93,000 per bedspace.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Pittodrie Street, 3 - 10 Pittodrie Street, Aberdeen, AB24 5AD

The Haymarket is located to the western fringe of Edinburgh city centre, approximately 2km from the University of Edinburgh campus. The property comprises a recently completed purpose-built accommodation scheme with a mix of en suite and studio bedspaces. The yield achieved is reflective of the location and age and specification of the property. • January 2017 - St James House, 110 St James Road, Glasgow St James House was acquired by a JV between Starwood Capital Group and Roundhill Capital. The property was acquired as part of a wider portfolio from Watkin Jones. The property comprises a newly completed purpose-built accommodation scheme which opened for the 2016/17 academic year and which provides 416 student bedspaces arranged within 192 studios and 32 7-bed cluster flats. We understand that the property had achieved approximately 75% occupancy for the 2016/17 year. The agreed sale price for this asset within the portfolio was c.£35m which reflected a Net Initial Yield of c.5.40% against the 2016/17 net income and an expected stabilised Net Initial Yield of c.6.40%. The comparable provides a newly constructed student accommodation scheme located close to the University of Strathclyde’s campus within Glasgow city centre. Whilst the comparable has recently opened it has suffered occupancy issues, reflected in the low Net Initial Yield achieved, with the expected stabilised Net Initial Yield considered more appropriate for comparable purposes.

• November 2016 - Meadow Court, Scienes Street, Edinburgh Meadow Court was acquired by McClaren Property for £10,000,000 which reflected a Net Initial Yield of 6.40%. The scheme provides 148 bedrooms within 28 individual cluster flats and 5-bed Mews Houses which were refurbished in 2012. The price paid reflects £67,567 per bedspace. This comparable comprises standard non-en suite accommodation and which is of an older, albeit refurbished, specification when compared to the subject property. The property is however well-located being approximately 750m from the University of Edinburgh campus. The yield achieved is reflective of the non-en suite nature of accommodation and the age and specification of the property. Investment Considerations • We consider Aberdeen to be a good regional university city and therefore the benchmark for our valuation is in the order of a 6.00% NIY for prime PBSA in the city. • The Property comprises a newly constructed purpose-built student residential scheme providing a mix of en-suite and studio bedspaces finished to a good quality specification with high quality communal areas. • The Property is operated on a wholly direct-let basis. • There have not been any recent investment transactions in Aberdeen. The most recent transaction in the city was the sale of Centro Court in September 2014, which achieved a Net Initial Yield of 6.25%. • The investment comparables show a range of yields between c.6.00% and 6.50%, reflective of each comparable scheme’s individual size, location and specification within its respective market. • Having regard to the Property’s location, the development pipeline and current investor demand for student investments in Aberdeen, we would expect the Property to achieve a yield towards the lower range of the comparables given its new-build nature and good quality specification once fully stabilised and achieving appropriate market rents within the city.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Pittodrie Street, 3 - 10 Pittodrie Street, Aberdeen, AB24 5AD

• We would refer you to the above relevant section of this report in relation to the student investment market.

Consideration Period • We consider that the Property would have been marketed for a period of 6 to 12 months prior to the Valuation Date in order to achieve our opinion of Market Value.

Marketing Period / Saleability • We consider it would take approximately 6 to 12 months to achieve a sale of the Property in the open market starting at the Valuation Date. • The purchaser type is likely to be a mix of regional and national student operators as well as funds. • We consider market conditions are likely to remain stable over the Marketing Period.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Pittodrie Street, 3 - 10 Pittodrie Street, Aberdeen, AB24 5AD

9. Valuation Approach and Opinions of Value

Background • It is our opinion that a trading property of this nature, requiring specialist operational expertise, is most likely to be sold to a purchaser who would employ the services of a reputable student accommodation operator, retained under a formal management agreement or to a purchaser who already has their operational platform. • Where possible our opinions of value are based on analysis of recent relevant market transactions supported by market knowledge derived from our agency experience. Due to the nature of the Property being within the ‘alternative’ sector, there is limited evidence particularly for solo investment transactions. As such a greater than usual degree of professional judgement was applied in arriving at our opinion of value. • In arriving at our opinion of Market Value we have considered the likely rent, cost and yield profile in the current market of the Property. • Our valuation calculations are included at the rear of this report in Appendix B.

10. Market Value

10.1. Market Value Our opinion of the Market Value of the Property has been primarily derived by adopting the following assumptions for the academic year commencing 2019:

Valuation Metrics:

Blended occupancy assumption Year 1 after 1% accounted for bad 97.00% debts and discounts Blended occupancy assumption Year 2 after 1% accounted for bad 97.00% debts and discounts Blended occupancy assumption Year 3 after 1% accounted for bad 97.00% debts and discounts The Borrower’s strategy to let the property at discounted rents in order to maximise occupancy has been achieved which is commendable in a market that has faced challenges. Assumed Year for Stabilised Occupancy 1

Rental growth assumption Year 1 7.00% Rental growth assumption Year 2 6.25% Rental growth assumption Year 3 5.25% The rental growth rate that we have adopted is expected to increase the rents to a market level over the next four to five years.

Summer income Year 1 £52,619 Ancillary income Year 1 £33,976 Total operating cost per room (per annum including management fees £1,806 and any rent) n.b. we have assumed a management fee of 4.5% of effective gross revenue Total operating cost leakage from effective gross revenue 30.97% We have adopted operating costs which equate to just over £1,800 pa per room which reflects a relatively high leakage of over 31%. This is due to the relatively low rental base

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Pittodrie Street, 3 - 10 Pittodrie Street, Aberdeen, AB24 5AD

as explained previously. Student Roose provided operating costs are also just over £1,800 per room which we believe is in line with the market.

Capital expenditure deducted at entry/Day 1 £0 Total capital expenditure deducted in the cashflow (before discounting) £0 Total transaction costs on Entry 3.37% Discount rate 8.00% Exit capitalisation rate and GICR 6.00%

Adopting the assumptions stated above, our valuations reflect the following resultant rents, NOI and yields:

Net operating income - Year 1 £2,488,401 Net initial yield - Year 1 5.00% We consider prime stabilised yields in Aberdeen to be 6.0% to 6.25%. Our adopted GICR reflects the quality of the location and building but also the fact that the property has now achieved a stabilised position in what has been a difficult market.

The low NIY reflects the low rental base which we have assumed will increase to achieve a reversionary yield of 6.24% in the fourth year.

We also consider that the capital value per room between £70,000 to £80,000 per room is within the range we would expect for a PBSA property of this type and location. Market Value £48,100,000 Market Value per room £77,832

Conclusions • In conclusion, we would expect the property to attract pricing in the order of a 6.0% net yield when rents climb towards a market level which we expect will be in the fourth year of the cashflow. • When PBSA properties are traded, often the operating platform changes to another management company that the purchaser may prefer. Sometimes this transition causes disruption in the letting process which may impact the NOI and therefore the Market Value. It is therefore prudent to manage such transitions very carefully to mitigate the impact on occupancy, costs and value. Market Value assuming Scottish LBTT with MDR Our opinion of the Market Value of the interest in the Property, having regard to trading potential, assuming a fully equipped operational entity as outlined in the Property Record is:

£48,100,000 (Forty Eight Million, One Hundred Thousand Pounds)

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Pittodrie Street, 3 - 10 Pittodrie Street, Aberdeen, AB24 5AD

11. Market Value Based on Special Assumptions

11.1. Vacant Possession Value

Approach • This basis requires us to make a Special Assumption that the Property is available with full vacant possession. There are no other Special Assumptions to be made (such as an outstanding dilapidations claim, or that the buildings are in a different state of condition). • As the start of the academic year is September/October 2019 and there are only six months left in the current cycle as at the valuation date, we would anticipate that a purchaser on vacant possession would adopt the following assumptions:

Market Value on the Special Assumption of Vacant Possession:

Blended occupancy assumption Year 1 30.00% Blended occupancy assumption Year 2 60.00% Blended occupancy assumption Year 3 90.00% Assumed Year for Stabilised Occupancy 4

Summer income Year 1 £157,857 Ancillary income Year 1 £10,401 Total operating cost per room (per annum including management fees £1,310 and any rent) n.b. we have assumed a management fee of 4.5% of effective gross revenue Total operating cost leakage from effective gross revenue 65.00% Capital expenditure deducted at entry/Day 1 £0 Total transaction costs on Entry 2.926% Discount rate 8.000% Exit capitalisation rate 6.000% Net operating income - Year 1 £491,934 Net initial yield - Year 1 1.016% Market Value £41,670,000 Market Value per room £67,427 Summer income can be expected to be relatively high but then reducing to a more stabilised position of 10% by year 3. We assumed rental growth to be at a lower level than that adopted for our opinion of Market Value. The lower overall occupancy should lead to lower operating costs which we have assumed rises as letting velocity increases.

• We have assumed all other assumptions remain unchanged to those adopted for our opinion of Market Value above. • It should be noted that there are no comparable transactions in the market for properties traded with vacant possession. We have therefore taken a view when adopting the assumptions made above to arrive at a value that in our opinion reflects a reasonable discount to the Market Value.

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Cushman & Wakefield | Bank of America Merrill Lynch Property Record Valuation Date: 12 July 2019 Pittodrie Street, 3 - 10 Pittodrie Street, Aberdeen, AB24 5AD

• Special Assumption – Vacant Possession assuming Scottish LBTT with MDR • Subject to the contents of this report and based on values current as at the valuation date, we are of the opinion that the Market Value as a fully equipped operational entity, having regard to future trading potential, of the interest in the Property detailed in the Property Record, with the Special Assumption as defined above is: Special Assumption – Vacant Possession assuming Scottish LBTT with MDR Subject to the contents of this report and based on values current as at the valuation date, we are of the opinion that the Market Value as a fully equipped operational entity, having regard to future trading potential, of the interest in the Property detailed in the Property Record, with the Special Assumption as defined above is:

(Forty One Million, Six Hundred and Seventy Thousand £41,670,000 Pounds)

12. Suitability for Loan Security

Suitability for Loan Security In our opinion, subject to the comments and assumptions contained below and elsewhere in this Valuation Report, the Ownership interests in the Property provides reasonable security for the purposes of a loan over a period of 5 years (subject to the adequacy of capital and income cover). This is without opinion as to the commercial decision to lend, which remains with the Bank.

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Cushman & Wakefield | Bank of America Merrill Lynch Appendix A: Maps and Plans Valuation Date: 12 July 2019 Pittodrie Street, 3 - 10 Pittodrie Street, Aberdeen, AB24 5AD

APPENDIX A: MAPS AND PLANS

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Ordnance Survey © Crown Copyright 2019. All rights reserved. Licence number 100022432. Plotted Scale - 1:175000 Pittodrie Street, 3 - 10 Pittodrie Street, Aberdeen, AB24 5AD Ordnance Survey © Crown Copyright 2019. All rights reserved. Licence number 100022432. Plotted Scale - 1:7500 Pittodrie Street, 3 - 10 Pittodrie Street, Aberdeen, AB24 5AD AR

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Ordnance Survey © Crown Copyright 2019. All rights reserved. Licence number 100022432. Plotted Scale - 1:1250

Pittodrie Street, 3 - 10 Pittodrie Street, Aberdeen, AB24 5AD Cushman & Wakefield | Bank of America Merrill Lynch Appendix B: Valuation Calculations Valuation Date: 12 July 2019 Pittodrie Street, 3 - 10 Pittodrie Street, Aberdeen, AB24 5AD

APPENDIX B: VALUATION CALCULATIONS

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BAML PROPERTY VALUATION AS AT 12 JULY 2019 Pittodorie St, Aberdeen Executive Summary - Inputs, Assumptions and Value Results

A. GENERAL INPUTS D. VALUATION RESULTS 1 Property Pittodorie St, Aberdeen 1 Market Value : Commercial Element 0 2 Client BAML 2 Market Value : Student Accommodation 48,100,000 3 Property reference number PDS 3 Market Value : Total 48,100,000 4 Tenure Freehold 5 Property owner 6 Operator Student Roost Student Accommodation Only: 7 Property type Direct Let 4 Total number of units 618 8 Valuation date 12 Jul 2019 5 Value per unit 77,832 9 Opening date 01 Sep 2019 6 Value per Sq Ft (on the Gross Internal Area) #DIV/0! 10 Years since opening -0.14 11 Site area (hectares) 0.000 12 Site area (acres) 0.000 Running Yields (gross of capital reserves and costs in the cashflow, but unadjusted for capex): Adj for capex: 13 measurement units Sq Ft 7 Net yield (reflecting income for the next 12 months) - Year 1 2,488,401 5.005% 5.005% 14 Currency GBP 8 Net yield (reflecting income for the next 12 months) - Year 2 2,708,836 5.448% 5.449% 15 Valuation Rounding 10,000 9 Net yield (reflecting income for the next 12 months) - Year 3 2,918,253 5.869% 5.870% 16 DFC Period (in years) 10 10 Net yield (reflecting income for the next 12 months) - Year 4 3,102,786 6.240% 6.241% 11 Net yield (reflecting income for the next 12 months) - Year 5 3,256,825 6.550% 6.551% B. OTHER PRINCIPAL INPUTS 12 True net initial yield (reflecting income for the next 12 months after 2,488,401 5.005% all capital expenditure in the cashflow) – Year 1 1 Occupancy - term: Year 1 98.00% 13 Net yield - reflecting "in place" income 2,488,401 5.005% 5.005% 2 Occupancy - term: Year 2 98.00% 14 Net yield - reflecting estimated income for the next academic year 2,696,735 5.424% 5.424% 3 Occupancy - term: Year 3 98.00% 4 Occupancy - out of term: Year 1 10.00% No Growth Reversionary Yield & Estimated Net Equivalent Yield : 5 Occupancy - out of term: Year 2 10.00% 15 Net reversionary yield (gross of capital reserves and costs in the 2,488,401 5.005% 5.032% cashflow, but unadjusted for capex) on a no growth basis 6 Occupancy - out of term: Year 3 10.00% 16 Estimated Net Equivalent Yield (cashflow gross of capital reserves Not Calculated and costs, but unadjusted for capex. Annually in arrears basis) 7 Student related income - GICR for valuation 6.000% 8 Student related income - Adj for exit yield 0.000% i) Weighted average revenue data for year 1: 9 Student related income - Exit Yield 6.000% 17 Revenue - term time unit income only (incl noms, excl other adjmts) 3,518,159 p.a. 10 Student related income - Discount Rate for DCF 8.000% 18 Revenue - all income (incl noms and other adjmts) 3,604,754 p.a. 11 Student related income - Rental growth rate - Year 1 7.000% 19 Operating costs & Leakage % (excluding management fees and rent) 954,139 p.a. 26.47% 12 Ancillary income - Growth rate - Year 1 2.500% 20 Operating costs & Leakage % (including management fees and rent) 1,116,353 p.a. 30.97% 13 Commercial income - Rental growth rate - Year 1 2.500% 21 Net cashflow before capital reserves and capital costs 2,488,401 p.a. 14 Operating costs - Cost inflation rate - Year 1 2.000% 22 Net cashflow after capital reserves and capital costs 2,488,401 p.a. 15 Head rent - rent inflation rate - Year 1 2.500% 16 Student purchaser's costs (on entry) 3.370% Ii) Weighted average revenue data for year 1 - per unit: 17 Student purchaser's costs (on exit) 5.002% 23 Revenue - term time unit income only 5,693 p.a. per unit 18 Commercial purchaser's costs 0.000% 24 Revenue - all income 5,833 p.a. per unit 19 Disposal costs for the exit calculation 1.250% 25 Operating costs (excluding management fees and rent) 1,544 p.a. per unit 20 Management fee : a % of gross income 4.500% 26 Operating costs (including management fees and rent) 1,806 p.a. per unit 21 Capital reserves : a % of gross income 0.000% 27 Net cashflow before capital reserves and capital costs 4,027 p.a. per unit 28 Net cashflow after capital reserves and capital costs 4,027 p.a. per unit C. VALUATION ASSUMPTIONS All figures in GBP iii) Weighted average revenue data for year 1 - per unit per term week: The cashflow is on a calendar year basis 29 Weighted average number of term weeks 44.8 weeks Income growth above applied after year 1 30 Revenue - term time unit income only 127.13 per unit per term week Expense inflation applied after year 1 31 Revenue - all income 130.26 per unit per term week Exit price based on the forward looking 12 month income at the exit point. 32 Operating costs (excluding management fees and rent) 34.48 per unit per term week Cashflow is discounted as per the DCF analysis 33 Operating costs (including management fees and rent) 40.34 per unit per term week Commercial income (if receivable) is separately valued 34 Net cashflow before capital reserves and capital costs 89.92 per unit per term week Ancillary income (related to student occupation) has been added to our cashflow projections 35 Net cashflow after capital reserves and capital costs 89.92 per unit per term week It is assumed that the management agreement is in place and the costs associated are historic Capital costs in the cashflow are not inflated from day 1 and are assumed to arise in the first month of the year Commercial Element Only: 0 36 Revenue - Year 1 0 p.a. 0 37 Revenue - Year 1 per Sq Ft n/a 0 38 Net initial yield n/a 0 0 0 0

Lease expiry date (for leased assets) n/a

T:\PSQ\Shared\Valuation\Clients\Bank of America\Project Rose II & III\6. Val Calcs\[PBSA FH Model_PDS.xlsx]Exec Summary © Cushman & Wakefield LLP 2019 BAML PROPERTY VALUATION AS AT 12 JULY 2019 Pittodorie St, Aberdeen Income Analysis

SCHEME INCOME For cashflow purposes (for the next 12 months): (in GBP) % of current income adopted for year 1 of the cashflow projection: 100.00% % of income from next academic year adopted for year 1 of the cashflow projection: 0.00% n.b. applies to term time and summer income only, not commercial or ancillary income 100.00% Income data for next acdmc yr (assumes year 1 occ rate): Student Accommodation - Term Time Income n.b. discounts and doubtful debts reflected Unit type Number of Average Size Weekly rate Lettable weeks Annual income Occupancy rate Adjustment to Adjustment to Annual income Income £ per Weekly rate Annual income Occupancy rate Annual income Increase (%) units per Unit (Gross (current) (potential) (YR1) term time term time (actual) Sq Ft pa (next academic (potential) (next (YR1) (actual) (next Internal Area) income for income for year) academic year) academic year) discounts doubtful debts Ensuite Bronze 476 - 124.00 44.82 2,645,575.73 98.0% 0.5% 0.5% 2,566,737.57 n/a 132.68 2,830,766.03 98.0% 2,746,409.20 7.00% Ensuite Silver 60 - 129.00 42.80 331,272.00 98.0% 0.5% 0.5% 321,400.09 n/a 138.03 354,461.04 98.0% 343,898.10 7.00% Ensuite Gold 7 - 149.00 48.43 50,511.00 98.0% 0.5% 0.5% 49,005.77 n/a 159.43 54,046.77 98.0% 52,436.18 7.00% Studio Bronze 51 - 169.00 45.44 391,647.36 98.0% 0.5% 0.5% 379,976.27 n/a 180.83 419,062.68 98.0% 406,574.61 7.00% Studio Silver 7 - 179.00 44.00 55,132.00 98.0% 0.5% 0.5% 53,489.07 n/a 191.53 58,991.24 98.0% 57,233.30 7.00% Studio Gold 17 - 189.00 47.33 152,082.00 98.0% 0.5% 0.5% 147,549.96 n/a 202.23 162,727.74 98.0% 157,878.45 7.00% 0 - - - - - 98.0% 0.5% 0.5% - n/a - - 98.0% - 0 - - - - - 98.0% 0.5% 0.5% - n/a - - 98.0% - 0 - - - - - 98.0% 0.5% 0.5% - n/a - - 98.0% - 0 - - - - - 98.0% 0.5% 0.5% - n/a - - 98.0% - 0 - - - - - 98.0% 0.5% 0.5% - n/a - - 98.0% - 0 - - - - - 98.0% 0.5% 0.5% - n/a - - 98.0% - 0 - - - - - 98.0% 0.5% 0.5% - n/a - - 98.0% - 0 - - - - - 98.0% 0.5% 0.5% - n/a - - 98.0% - 0 - - - - - 98.0% 0.5% 0.5% - n/a - - 98.0% - 0 - - - - - 98.0% 0.5% 0.5% - n/a - - 98.0% - 0 - - - - - 98.0% 0.5% 0.5% - n/a - - 98.0% - 0 - - - - - 98.0% 0.5% 0.5% - n/a - - 98.0% - 0 - - - - - 98.0% 0.5% 0.5% - n/a - - 98.0% - 0 - - - - - 98.0% 0.5% 0.5% - n/a - - 98.0% - 0 - - - - - 98.0% 0.5% 0.5% - n/a - - 98.0% - 0 - - - - - 98.0% 0.5% 0.5% - n/a - - 98.0% - 0 - - - - - 98.0% 0.5% 0.5% - n/a - - 98.0% - 0 - - - - - 98.0% 0.5% 0.5% - n/a - - 98.0% - 0 - - - - - 98.0% 0.5% 0.5% - n/a - - 98.0% - Total / Wghtd Av 618 - 130.89 44.78 3,626,220.09 3,518,158.73 n/a 3,880,055.50 3,764,429.84 7.00%

Student Accommodation - Summer Income Unit type Number of Average Size Weekly rate Lettable weeks Annual income Occupancy rate Annual income Income £ per Weekly rate Annual income Occupancy rate Annual income Increase (%) units per Unit (Gross (current) (potential) (YR1) (actual) Sq Ft pa (next academic (potential) (next (YR1) (actual) (next Internal Area) year) academic year) academic year)

Ensuite Bronze 476 - 131.00 6.18 385,233.25 10.0% 38,523.33 n/a 139.68 410,758.63 10.0% 41,075.86 6.63% Ensuite Silver 60 - 136.00 8.20 66,912.00 10.0% 6,691.20 n/a 145.03 71,354.76 10.0% 7,135.48 6.64% Ensuite Gold 7 - 156.00 2.57 2,808.00 10.0% 280.80 n/a 166.43 2,995.74 10.0% 299.57 6.69% Studio Bronze 51 - 176.00 5.56 49,906.56 10.0% 4,990.66 n/a 187.83 53,261.07 10.0% 5,326.11 6.72% Studio Silver 7 - 186.00 7.00 9,114.00 10.0% 911.40 n/a 198.53 9,727.97 10.0% 972.80 6.74% Studio Gold 17 - 196.00 3.67 12,217.33 10.0% 1,221.73 n/a 209.23 13,042.00 10.0% 1,304.20 6.75% 0 - - - - - 10.0% - n/a - - 10.0% - 0 - - - - - 10.0% - n/a - - 10.0% - 0 - - - - - 10.0% - n/a - - 10.0% - 0 - - - - - 10.0% - n/a - - 10.0% - Total / Wghtd Av 618 137.89 6.22 526,191.15 52,619.11 n/a 561,140.18 56,114.02 6.64%

Commercial Income Term time & summer time income summary: 100.00000% 0.00000% Unit type Number of Average Size Annual rental Annual rental Total potential Source Current income Next academic Pro rata Adopted for units per Unit (Net rate (per Sq Ft) per unit annual income year spreads next 12 m Internal Area) n/a - - - - - Potential: n/a - - - - - Term Time 3,626,220 3,880,055 1 / 0 3,626,220 n/a - - - - - Summer Income 526,191 561,140 1 / 0 526,191 n/a - - - - - Total 4,152,411 4,441,196 4,152,411 n/a - - - - - 6.95% 0.00% Totals - - Actual (based on the year 1 occupancy assumption): Term Time 3,518,159 3,764,430 1 / 0 3,518,159 Ancillary income (potential before any occupancy adjustment) Summer Income 52,619 56,114 1 / 0 52,619 Source Amount pa Comment Total 3,570,778 3,820,544 3,570,778 General other income 34,670 Ancillary Income: based on £1.10 per week per room 6.99% 0.00% n/a - n/a - n/a - Totals 34,670

© Cushman & Wakefield LLP 2019 BAML PROPERTY VALUATION AS AT 12 JULY 2019 Pittodorie St, Aberdeen Analysis of Operating Costs

Based on the operating cosst adopted for year 1 of the cashflow projection Total units 618 Term weeks 44.8

Operating Cost Annual amount (in Cost per unit pa (618 Cost per unit per term % of total operating GBP) units) week (44.78 weeks) costs

Site Staff Costs 193,819.44 313.62 7.00 20.31% Office Costs 10,326.42 16.71 0.37 1.08% Security 62,288.34 100.79 2.25 6.53% Regular Cleaning 34,629.09 56.03 1.25 3.63% Annual Cleaning 47,314.00 76.56 1.71 4.96% Refuse and Waste 816.19 1.32 0.03 0.09% Maintenance and Repairs 57,473.54 93.00 2.08 6.02% Utilities 442,261.00 715.63 15.98 46.35% Council Tax 3,326.90 5.38 0.12 0.35% Internet and Student Services 41,880.00 67.77 1.51 4.39% Marketing 82,233.69 133.06 2.97 8.62% Other 27,770.87 44.94 1.00 2.91% Operating Expense Adjustments (50,000.00) (80.91) (1.81) -5.24% Total Operating Expenses: 954,139.48 1,543.92 34.48 100.00% Leakage % (excluding management fees and rent) 26.47%

Head Rent - - -

Management fee (a % of effective revenue) 162,213.94 262.48 5.86 Management fee as a % of effective revenue 4.50% Management fee as a % of operating expenses 17.00% Management fee per unit (pa) 262.48

Total of all expenses: 1,116,353.42 1,806.40 40.34 Leakage % (including management fees and rent) 30.97%

Apportionment of all expenses: Operating expenses 85.47% Head Rent 0.00% Management fee 14.53% Total 100.00%

© Cushman & Wakefield LLP 2019 BAML PROPERTY VALUATION AS AT 12 JULY 2019 Estimated Pittodorie St, Aberdeen CAGR "in place" income Cashflow from Student Accommodation 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 from Stabilised income For next Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Y.E. Day 1 CAGR at Day 1 academic Sep-20 Sep-21 Sep-22 Sep-23 Sep-24 Sep-25 Sep-26 Sep-27 Sep-28 Sep-29 Sep-30 Sep-31 Sep-32 Sep-33 Sep-34 Sep-35 Sep-36 Sep-37 Sep-38 Sep-39 Sep-40 Sep-41 Yr1 to Yr10 Yr5 to Yr10 year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 16 16 16 16 16 16

ASSUMPTIONS Rental growth - unit income 7.00% 7.00% 6.25% 5.25% 4.25% 3.00% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% #VALUE! #VALUE! Rental growth - ancillary income 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% #VALUE! #VALUE! Expense inflation rate 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% #VALUE! #VALUE! Head rent inflation rate 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% 2.50% #VALUE! #VALUE! Occupancy - term time income 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% 98.00% Adjustment to term time income for discounts (%) 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% Adjustment to term time income for doubtful debts (%) 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% Occupancy - summer income 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% Management fee : a % of gross income 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% 4.50% Capital reserves : a % of gross income 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Direct let - % of revenue 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% Nominations revenue - % of revenue 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Total student units 618

REVENUES Term time income - potential 3,626,220 3,880,055 4,122,559 4,338,993 4,523,401 4,659,103 4,775,580 4,894,970 5,017,344 5,142,777 5,271,347 5,403,131 5,538,209 5,676,664 5,818,581 5,964,045 6,113,146 6,265,975 6,422,624 6,583,190 6,747,770 6,916,464 3.96% 2.60% 3,626,220 3,880,055 Summer income - potential 526,191 563,025 598,214 629,620 656,379 676,070 692,972 710,296 728,053 746,255 764,911 784,034 803,635 823,726 844,319 865,427 887,062 909,239 931,970 955,269 979,151 1,003,630 3.96% 2.60% 526,191 563,025 Ancillary income - potential 34,670 35,537 36,425 37,336 38,269 39,226 40,206 41,211 42,242 43,298 44,380 45,490 46,627 47,793 48,988 50,212 51,468 52,754 54,073 55,425 56,811 58,231 2.50% 2.50% 34,670 35,957

Vacancy allowance - term time income -72,524 -77,601 -82,451 -86,780 -90,468 -93,182 -95,512 -97,899 -100,347 -102,856 -105,427 -108,063 -110,764 -113,533 -116,372 -119,281 -122,263 -125,319 -128,452 -131,664 -134,955 -138,329 -72,524 -77,601 Adj to term time income for discounts (post vacancy adj) -17,768 -19,012 -20,201 -21,261 -22,165 -22,830 -23,400 -23,985 -24,585 -25,200 -25,830 -26,475 -27,137 -27,816 -28,511 -29,224 -29,954 -30,703 -31,471 -32,258 -33,064 -33,891 -17,768 -19,012 Adj to term time income for doubtful debts (post vacancy adj) -17,768 -19,012 -20,201 -21,261 -22,165 -22,830 -23,400 -23,985 -24,585 -25,200 -25,830 -26,475 -27,137 -27,816 -28,511 -29,224 -29,954 -30,703 -31,471 -32,258 -33,064 -33,891 -17,768 -19,012 Vacancy allowance - summer income -473,572 -506,722 -538,392 -566,658 -590,741 -608,463 -623,675 -639,266 -655,248 -671,629 -688,420 -705,631 -723,271 -741,353 -759,887 -778,884 -798,356 -818,315 -838,773 -859,742 -881,236 -903,267 -473,572 -506,722 Vacancy allowance - ancillary income -693 -711 -728 -747 -765 -785 -804 -824 -845 -866 -888 -910 -933 -956 -980 -1,004 -1,029 -1,055 -1,081 -1,108 -1,136 -1,165 -693 -719

Direct let - % of revenue 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Term time income - actual 3,518,159 3,764,430 3,999,707 4,209,691 4,388,603 4,520,261 4,633,268 4,749,100 4,867,827 4,989,523 5,114,261 5,242,117 5,373,170 5,507,499 5,645,187 5,786,317 5,930,975 6,079,249 6,231,230 6,387,011 6,546,686 6,710,353 3.96% 2.60% 3,518,159 3,764,430 Summer income - actual 52,619 56,302 59,821 62,962 65,638 67,607 69,297 71,030 72,805 74,625 76,491 78,403 80,363 82,373 84,432 86,543 88,706 90,924 93,197 95,527 97,915 100,363 3.96% 2.60% 52,619 56,302 Ancillary income - actual 33,976 34,826 35,696 36,589 37,504 38,441 39,402 40,387 41,397 42,432 43,493 44,580 45,694 46,837 48,008 49,208 50,438 51,699 52,992 54,316 55,674 57,066 2.50% 2.50% 33,976 35,238

Revenue adjustment (DL % of revenue not applied) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Nominations revenue - potential 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Nominations revenue - % of revenue 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Nominations revenue - actual 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Effective revenue (excluding additional income) 3,604,754 3,855,558 4,095,225 4,309,242 4,491,745 4,626,309 4,741,967 4,860,516 4,982,029 5,106,580 5,234,245 5,365,101 5,499,228 5,636,709 5,777,627 5,922,067 6,070,119 6,221,872 6,377,419 6,536,854 6,700,276 6,867,782 3.95% 2.60% 3,604,754 3,855,970 Effective revenue per unit (pa) 5,833 6,239 6,627 6,973 7,268 7,486 7,673 7,865 8,062 8,263 8,470 8,681 8,898 9,121 9,349 9,583 9,822 10,068 10,319 10,577 10,842 11,113 5,833 6,239 Effective revenue per unit (per week) 112.17 119.98 127.43 134.09 139.77 143.96 147.56 151.25 155.03 158.91 162.88 166.95 171.12 175.40 179.79 184.28 188.89 193.61 198.45 203.41 208.50 213.71 112.17 119.99

OPERATING EXPENSES Site Staff Costs -193,819 -197,696 -201,650 -205,683 -209,796 -213,992 -218,272 -222,638 -227,090 -231,632 -236,265 -240,990 -245,810 -250,726 -255,741 -260,855 -266,073 -271,394 -276,822 -282,358 -288,005 -293,766 2.00% 2.00% -193,819 -199,554 Office Costs -10,326 -10,533 -10,744 -10,958 -11,178 -11,401 -11,629 -11,862 -12,099 -12,341 -12,588 -12,840 -13,096 -13,358 -13,625 -13,898 -14,176 -14,459 -14,749 -15,044 -15,345 -15,651 2.00% 2.00% -10,326 -10,632 Security -62,288 -63,534 -64,805 -66,101 -67,423 -68,771 -70,147 -71,550 -72,981 -74,440 -75,929 -77,448 -78,997 -80,577 -82,188 -83,832 -85,509 -87,219 -88,963 -90,742 -92,557 -94,408 2.00% 2.00% -62,288 -64,131 Regular Cleaning -34,629 -35,322 -36,028 -36,749 -37,484 -38,233 -38,998 -39,778 -40,573 -41,385 -42,213 -43,057 -43,918 -44,796 -45,692 -46,606 -47,538 -48,489 -49,459 -50,448 -51,457 -52,486 2.00% 2.00% -34,629 -35,654 Annual Cleaning -47,314 -48,260 -49,225 -50,210 -51,214 -52,238 -53,283 -54,349 -55,436 -56,545 -57,675 -58,829 -60,006 -61,206 -62,430 -63,678 -64,952 -66,251 -67,576 -68,928 -70,306 -71,712 2.00% 2.00% -47,314 -48,714 Refuse and Waste -816 -833 -849 -866 -883 -901 -919 -938 -956 -975 -995 -1,015 -1,035 -1,056 -1,077 -1,098 -1,120 -1,143 -1,166 -1,189 -1,213 -1,237 2.00% 2.00% -816 -840 Maintenance and Repairs -57,474 -58,623 -59,795 -60,991 -62,211 -63,455 -64,725 -66,019 -67,339 -68,686 -70,060 -71,461 -72,890 -74,348 -75,835 -77,352 -78,899 -80,477 -82,086 -83,728 -85,403 -87,111 2.00% 2.00% -57,474 -59,174 Utilities -442,261 -451,106 -460,128 -469,331 -478,718 -488,292 -498,058 -508,019 -518,179 -528,543 -539,114 -549,896 -560,894 -572,112 -583,554 -595,225 -607,130 -619,272 -631,658 -644,291 -657,177 -670,320 2.00% 2.00% -442,261 -455,347 Council Tax -3,327 -3,393 -3,461 -3,531 -3,601 -3,673 -3,747 -3,822 -3,898 -3,976 -4,055 -4,137 -4,219 -4,304 -4,390 -4,478 -4,567 -4,658 -4,752 -4,847 -4,944 -5,042 2.00% 2.00% -3,327 -3,425 Internet and Student Services -41,880 -42,718 -43,572 -44,443 -45,332 -46,239 -47,164 -48,107 -49,069 -50,050 -51,051 -52,073 -53,114 -54,176 -55,260 -56,365 -57,492 -58,642 -59,815 -61,011 -62,231 -63,476 2.00% 2.00% -41,880 -43,119 Marketing -82,234 -83,878 -85,556 -87,267 -89,012 -90,793 -92,608 -94,461 -96,350 -98,277 -100,242 -102,247 -104,292 -106,378 -108,506 -110,676 -112,889 -115,147 -117,450 -119,799 -122,195 -124,639 2.00% 2.00% -82,234 -84,667 Other -27,771 -28,326 -28,893 -29,471 -30,060 -30,661 -31,275 -31,900 -32,538 -33,189 -33,853 -34,530 -35,220 -35,925 -36,643 -37,376 -38,123 -38,886 -39,664 -40,457 -41,266 -42,091 2.00% 2.00% -27,771 -28,593 Operating Expense Adjustments 50,000 51,000 52,020 53,060 54,122 55,204 56,308 57,434 58,583 59,755 60,950 62,169 63,412 64,680 65,974 67,293 68,639 70,012 71,412 72,841 74,297 75,783 2.00% 2.00% 50,000 50,917 Total Operating Expenses: -954,139 -973,222 -992,687 -1,012,540 -1,032,791 -1,053,447 -1,074,516 -1,096,006 -1,117,926 -1,140,285 -1,163,091 -1,186,353 -1,210,080 -1,234,281 -1,258,967 -1,284,146 -1,309,829 -1,336,026 -1,362,746 -1,390,001 -1,417,801 -1,446,157 2.00% 2.00% -954,139 -982,933 Operating expense per unit (pa) 1,544 1,575 1,606 1,638 1,671 1,705 1,739 1,773 1,809 1,845 1,882 1,920 1,958 1,997 2,037 2,078 2,119 2,162 2,205 2,249 2,294 2,340 1,544 1,591 Operating expense ratio: 26.5% 25.2% 24.2% 23.5% 23.0% 22.8% 22.7% 22.5% 22.4% 22.3% 22.2% 22.1% 22.0% 21.9% 21.8% 21.7% 21.6% 21.5% 21.4% 21.3% 21.2% 21.1% 26.5% 25.5%

NET OPERATING INCOME 2,650,615 2,882,336 3,102,538 3,296,702 3,458,953 3,572,862 3,667,451 3,764,510 3,864,103 3,966,295 4,071,154 4,178,748 4,289,149 4,402,428 4,518,660 4,637,921 4,760,290 4,885,846 5,014,673 5,146,853 5,282,474 5,421,625 4.58% 2.78% 2,650,615 2,873,036 Other expenses: Head Rent 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Management fee (a % of effective revenue) -162,214 -173,500 -184,285 -193,916 -202,129 -208,184 -213,389 -218,723 -224,191 -229,796 -235,541 -241,430 -247,465 -253,652 -259,993 -266,493 -273,155 -279,984 -286,984 -294,158 -301,512 -309,050 3.95% 2.60% -162,214 -176,301 Subtotal - other expenses: -162,214 -173,500 -184,285 -193,916 -202,129 -208,184 -213,389 -218,723 -224,191 -229,796 -235,541 -241,430 -247,465 -253,652 -259,993 -266,493 -273,155 -279,984 -286,984 -294,158 -301,512 -309,050 3.95% 2.60% -162,214 -176,301 Management fee as a % of operating expenses 17.0% 17.8% 18.6% 19.2% 19.6% 19.8% 19.9% 20.0% 20.1% 20.2% 20.3% 20.4% 20.5% 20.6% 20.7% 20.8% 20.9% 21.0% 21.1% 21.2% 21.3% 21.4% 17.0% 17.9% Management fee per unit (pa) 262.48 280.74 298.20 313.78 327.07 336.87 345.29 353.92 362.77 371.84 381.13 390.66 400.43 410.44 420.70 431.22 442.00 453.05 464.38 475.98 487.88 500.08 262.48 285.28

Total of all expenses: -1,116,353 -1,146,722 -1,176,972 -1,206,456 -1,234,920 -1,261,631 -1,287,905 -1,314,730 -1,342,118 -1,370,081 -1,398,632 -1,427,782 -1,457,545 -1,487,933 -1,518,960 -1,550,639 -1,582,984 -1,616,010 -1,649,730 -1,684,159 -1,719,313 -1,755,207 2.30% 2.10% -1,116,353 -1,159,235 Total expenses per unit (pa) 1,806.40 1,855.54 1,904.49 1,952.19 1,998.25 2,041.47 2,083.99 2,127.39 2,171.71 2,216.96 2,263.16 2,310.33 2,358.49 2,407.66 2,457.86 2,509.12 2,561.46 2,614.90 2,669.47 2,725.18 2,782.06 2,840.14 1,806.40 1,875.78 Total expenses as a % of effective revenue 31.0% 29.7% 28.7% 28.0% 27.5% 27.3% 27.2% 27.0% 26.9% 26.8% 26.7% 26.6% 26.5% 26.4% 26.3% 26.2% 26.1% 26.0% 25.9% 25.8% 25.7% 25.6% 31.0% 30.1% Less: Capital reserves (a % of effective revenue) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Capital costs 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

NET CASHFLOW 2,488,401 2,708,836 2,918,253 3,102,786 3,256,825 3,364,678 3,454,063 3,545,787 3,639,911 3,736,499 3,835,613 3,937,319 4,041,683 4,148,776 4,258,667 4,371,428 4,487,135 4,605,862 4,727,689 4,852,695 4,980,962 5,112,575 4.62% 2.79% 2,488,401 2,696,735 Gearing : net cashflow to effective revenue 69.0% 70.3% 71.3% 72.0% 72.5% 72.7% 72.8% 73.0% 73.1% 73.2% 73.3% 73.4% 73.5% 73.6% 73.7% 73.8% 73.9% 74.0% 74.1% 74.2% 74.3% 74.4% 69.0% 69.9% Gearing : net cashflow to Operating Expenses 260.8% 278.3% 294.0% 306.4% 315.3% 319.4% 321.5% 323.5% 325.6% 327.7% 329.8% 331.9% 334.0% 336.1% 338.3% 340.4% 342.6% 344.7% 346.9% 349.1% 351.3% 353.5% 260.8% 274.4% Gearing : net cashflow to All Expenses 222.9% 236.2% 247.9% 257.2% 263.7% 266.7% 268.2% 269.7% 271.2% 272.7% 274.2% 275.8% 277.3% 278.8% 280.4% 281.9% 283.5% 285.0% 286.6% 288.1% 289.7% 291.3% 222.9% 232.6% net cashflow per unit (pa) 4,026.54 4,383.23 4,722.09 5,020.69 5,269.94 5,444.46 5,589.10 5,737.52 5,889.82 6,046.11 6,206.49 6,371.07 6,539.94 6,713.23 6,891.05 7,073.51 7,260.74 7,452.85 7,649.98 7,852.26 8,059.81 8,272.78 4,026.54 4,363.65

T:\PSQ\Shared\Valuation\Clients\Bank of America\Project Rose II & III\6. Val Calcs\[PBSA FH Model_PDS.xlsx]Exec Summary © Cushman & Wakefield LLP 2019

Unless this information is provided in conjunction with a Valuation Report, it is for guidance purposes only and does not constitute a formal valuation. The information is confidential to the party to whom it is addressed and no liability is accepted to any other party. BAML PROPERTY VALUATION AS AT 12 JULY 2019 Pittodorie St, Aberdeen Discounted Cashflow Analysis

Year Discount Year Net Cash Discount Factor Present Value Proportion Net Running Period Ending Flow 8.00% of Cashflows of Value Yields

1 0.5 Sep-20 2,488,401 x 0.9622504 = 2,394,465 4.82% 5.00% 2 1.5 Sep-21 2,708,836 x 0.8909726 = 2,413,498 4.85% 5.45% 3 2.5 Sep-22 2,918,253 x 0.8249747 = 2,407,485 4.84% 5.87% 4 3.5 Sep-23 3,102,786 x 0.7638654 = 2,370,111 4.77% 6.24% 5 4.5 Sep-24 3,256,825 x 0.7072828 = 2,303,496 4.63% 6.55% 6 5.5 Sep-25 3,364,678 x 0.6548915 = 2,203,499 4.43% 6.77% 7 6.5 Sep-26 3,454,063 x 0.6063810 = 2,094,478 4.21% 6.95% 8 7.5 Sep-27 3,545,787 x 0.5614639 = 1,990,831 4.00% 7.13% 9 8.5 Sep-28 3,639,911 x 0.5198740 = 1,892,295 3.81% 7.32% 10 9.5 Sep-29 3,736,499 x 0.4813648 = 1,798,619 3.62% 7.51%

Total Present Value of Cashflows: 21,868,778 43.99% 6.48% Total Average

Reversion Year NOI/Income / Exit Cap Rate = Reversion 11 10 Sep-30 3,835,613 / 6.000% = 63,926,880 Less: Purchaser's Costs 5.002% 3,045,486 Less: Cost of Sale 1.250% 761,017

Net Reversion 60,120,377 x Discount Factor 0.4631935 Total Present Value of Reversion 27,847,368 56.01%

Total Present Value of Cashflows & Reversion: 49,716,145 100.00% Plus any capital additions 0 Less any capital deductions 0 Total Gross Present Value: 49,716,145 Less: Purchaser's Costs 3.370% 1,620,813 Total Net Present Value: 48,095,333

ROUNDED VALUE via DISCOUNTED CASHFLOW: 48,100,000

Total units 618 Value per unit 77,832 First year net cashflow per unit 4,027 n.b. "in place" net cashflow 2,488,401 "in place" net initial yield 5.00% "in place" net cashflow per unit 4,027 n.b. net cashflow - next academic year 2,696,735 net initial yield - next academic year 5.42% net cashflow per unit - next academic year 4,364

© Cushman & Wakefield LLP 2019

Unless this information is provided in conjunction with a Valuation Report, it is for guidance purposes only and does not constitute a formal valuation. The information is confidential to the party to whom it is addressed and no liability is accepted to any other party. BAML PROPERTY VALUATION AS AT 12 JULY 2019 Pittodorie St, Aberdeen Total Value Summary

A. Commercial Element

Commercial Accommodation - Size and Income Description Number of Total Size Av size per Annual Annual rental Total Units (Net Internal unit Rental Rate per unit potential Area) (per Sq Ft) annual income n/a ------n/a ------n/a ------n/a ------n/a ------Totals - - - - -

Commercial Accommodation - Valuation Description Number of Total Size Total % of income Income for Void Yield Years PV factor Gross Value Purchaser's Net Value Units (Net Internal potential for valuation Valuation Assumption Purchase (in Costs after Area) annual (yrs) perp) Purchaser's income Costs n/a - - - 100% - - 8.00% 12.50 1.00 - 0.00% - n/a - - - 100% - - 8.00% 12.50 1.00 - 0.00% - n/a - - - 100% - - 8.00% 12.50 1.00 - 0.00% - n/a - - - 100% - - 8.00% 12.50 1.00 - 0.00% - n/a - - - 100% - - 8.00% 12.50 1.00 - 0.00% - Totals - - - - 0.40 - -

Total Gross Value before Capex 0 Plus any capital additions 0 Less any capital deductions 0 Total Gross Value after Capex 0 Adjustment for Purchaser's Costs 0 0.00% Net Value 0 Rounding 5,000 Rounded Value 0

B. Student Accommodation

Total Unrounded Value 48,095,333 Rounding 10,000 Rounded Value 48,100,000

C. Total Value

Rounded Value 48,100,000

D. Running Yield Analysis (net of capital reserves and capital costs in the cashflow, but unadjusted for capex)

1. Student Housing: Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 "In Place" Next Academic Gross Value (on rounded) 49,720,970 net cashflow (AFTER capital reserves and capital costs) 2,488,401 2,708,836 2,918,253 3,102,786 3,256,825 3,364,678 3,454,063 3,545,787 3,639,911 3,736,499 2,488,401 2,696,735 Running Yields (net) 5.00% 5.45% 5.87% 6.24% 6.55% 6.77% 6.95% 7.13% 7.32% 7.51% 5.00% 5.42%

2. Commercial: (revenue growth at 2.5%) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 1 Year 1 Gross Value (on rounded) 0 net cashflow 0 0 0 0 0 0 0 0 0 0 0 0 Running Yields (net) #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

3. Combined Cashflow Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 "In Place" Next Academic Gross Value (on rounded) 49,720,970 (+ Yr 1) (+ Yr 1) net cashflow (AFTER capital reserves and capital costs) 2,488,401 2,708,836 2,918,253 3,102,786 3,256,825 3,364,678 3,454,063 3,545,787 3,639,911 3,736,499 2,488,401 2,696,735 Running Yields (net) 5.00% 5.45% 5.87% 6.24% 6.55% 6.77% 6.95% 7.13% 7.32% 7.51% 5.00% 5.42%

E. Running Yield Analysis (gross of capital reserves and capital costs, but unadjusted for capex)

1. Student Housing: Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 "In Place" Next Academic Gross Value (on rounded) 49,720,970 net cashflow (BEFORE capital reserves and capital costs) 2,488,401 2,708,836 2,918,253 3,102,786 3,256,825 3,364,678 3,454,063 3,545,787 3,639,911 3,736,499 2,488,401 2,696,735 Running Yields (net) 5.00% 5.45% 5.87% 6.24% 6.55% 6.77% 6.95% 7.13% 7.32% 7.51% 5.00% 5.42%

2. Commercial: (revenue growth at 2.5%) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 1 Year 1 Gross Value (on rounded) 0 net cashflow 0 0 0 0 0 0 0 0 0 0 0 0 Running Yields (net) #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

3. Combined Cashflow Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 "In Place" Next Academic Gross Value (on rounded) 49,720,970 (+ Yr 1) (+ Yr 1) net cashflow (BEFORE capital reserves and capital costs) 2,488,401 2,708,836 2,918,253 3,102,786 3,256,825 3,364,678 3,454,063 3,545,787 3,639,911 3,736,499 2,488,401 2,696,735 Running Yields (net) 5.00% 5.45% 5.87% 6.24% 6.55% 6.77% 6.95% 7.13% 7.32% 7.51% 5.00% 5.42%

© Cushman & Wakefield LLP 2019

Unless this information is provided in conjunction with a Valuation Report, it is for guidance purposes only and does not constitute a formal valuation. The information is confidential to the party to whom it is addressed and no liability is accepted to any other party. BAML BAML PROPERTY VALUATION AS AT 12 JULY 2019 PROPERTY VALUATION AS AT 12 JULY 2019 Pittodorie St, Aberdeen Pittodorie St, Aberdeen Sensitivity Analysis (Two Independent Trials) (Student Housing Element Only) Sensitivity Analysis (Two Independent Trials) (Student Housing Element Only) ACTUAL VALUES PERCENTAGE FIGURES

Factor 1 : Weekly Room Rate Factor 1 : Weekly Room Rate Factor 2 : Discount Rate and Exit Cap Rate Factor 2 : Discount Rate and Exit Cap Rate

Factor 1 Vertex : 0.00 Factor 1 Vertex : 0.00 Factor 2 Vertex : 0% Factor 2 Vertex : 0%

Rate Discount Rate & ECR Rate Discount Rate & ECR ######## -0.50% -0.25% 0.00% 0.25% 0.50% 3,250,000 -0.50% -0.25% 0.00% 0.25% 0.50% 20.00 62,300,000 59,710,000 57,330,000 55,150,000 53,120,000 20.00 29.52% 24.14% 19.19% 14.66% 10.44% 15.00 59,790,000 57,310,000 55,030,000 52,920,000 50,980,000 15.00 24.30% 19.15% 14.41% 10.02% 5.99% 10.00 57,280,000 54,900,000 52,720,000 50,700,000 48,840,000 10.00 19.09% 14.14% 9.60% 5.41% 1.54% 5.00 54,770,000 52,490,000 50,410,000 48,480,000 46,710,000 5.00 13.87% 9.13% 4.80% 0.79% -2.89% 0.00 52,260,000 50,090,000 48,100,000 46,260,000 44,570,000 0.00 8.65% 4.14% 0.00% -3.83% -7.34% -5.00 49,740,000 47,680,000 45,790,000 44,040,000 42,430,000 -5.00 3.41% -0.87% -4.80% -8.44% -11.79% -10.00 47,230,000 45,270,000 43,480,000 41,820,000 40,290,000 -10.00 -1.81% -5.88% -9.60% -13.06% -16.24% -15.00 44,720,000 42,870,000 41,170,000 39,600,000 38,110,000 -15.00 -7.03% -10.87% -14.41% -17.67% -20.77% -20.00 42,210,000 40,460,000 38,840,000 37,320,000 35,920,000 -20.00 -12.25% -15.88% -19.25% -22.41% -25.32%

Factor 1 : % Adjustment to Operating Costs (excl the opex adj line) Factor 1 : % Adjustment to Operating Costs (excl the opex adj line) Factor 2 : Discount Rate and Exit Cap Rate Factor 2 : Discount Rate and Exit Cap Rate

Factor 1 Vertex : 0% Factor 1 Vertex : 0.00 Factor 2 Vertex : 0% Factor 2 Vertex : 0%

Opex Discount Rate & ECR Opex Discount Rate & ECR ######## -0.50% -0.25% 0.00% 0.25% 0.50% 3,250,000 -0.50% -0.25% 0.00% 0.25% 0.50% -20.00% 55,600,000 53,290,000 51,180,000 49,230,000 47,420,000 -20% 15.59% 10.79% 6.40% 2.35% -1.41% -15.00% 54,760,000 52,490,000 50,410,000 48,480,000 46,710,000 -15% 13.85% 9.13% 4.80% 0.79% -2.89% -10.00% 53,930,000 51,690,000 49,640,000 47,740,000 45,990,000 -10% 12.12% 7.46% 3.20% -0.75% -4.39% -5.00% 53,090,000 50,890,000 48,870,000 47,000,000 45,280,000 -5% 10.37% 5.80% 1.60% -2.29% -5.86% 0.00% 52,260,000 50,090,000 48,100,000 46,260,000 44,570,000 0% 8.65% 4.14% 0.00% -3.83% -7.34% 5.00% 51,420,000 49,280,000 47,330,000 45,520,000 43,850,000 5% 6.90% 2.45% -1.60% -5.36% -8.84% 10.00% 50,580,000 48,480,000 46,560,000 44,780,000 43,140,000 10% 5.16% 0.79% -3.20% -6.90% -10.31% 15.00% 49,750,000 47,680,000 45,790,000 44,040,000 42,420,000 15% 3.43% -0.87% -4.80% -8.44% -11.81% 20.00% 48,910,000 46,880,000 45,020,000 43,300,000 41,710,000 20% 1.68% -2.54% -6.40% -9.98% -13.28% BAML PROPERTY VALUATION AS AT 12 JULY 2019 Pittodorie St, Aberdeen Executive Summary - Inputs, Assumptions and Value Results

A. GENERAL INPUTS D. VALUATION RESULTS 1 Property Pittodorie St, Aberdeen 1 Market Value : Commercial Element 0 2 Client BAML 2 Market Value : Student Accommodation 41,670,000 3 Property reference number PDS 3 Market Value : Total 41,670,000 4 Tenure Freehold 5 Property owner 6 Operator Student Roost Student Accommodation Only: 7 Property type Direct Let 4 Total number of units 618 8 Valuation date 12 Jul 2019 5 Value per unit 67,427 9 Opening date 01 Sep 2019 6 Value per Sq Ft (on the Gross Internal Area) #DIV/0! 10 Years since opening -0.14 11 Site area (hectares) 0.000 12 Site area (acres) 0.000 Running Yields (gross of capital reserves and costs in the cashflow, but unadjusted for capex): Adj for capex: 13 measurement units Sq Ft 7 Net yield (reflecting income for the next 12 months) - Year 1 435,898 1.016% 1.016% 14 Currency GBP 8 Net yield (reflecting income for the next 12 months) - Year 2 1,385,047 3.229% 3.229% 15 Valuation Rounding 10,000 9 Net yield (reflecting income for the next 12 months) - Year 3 2,437,186 5.683% 5.682% 16 DFC Period (in years) 10 10 Net yield (reflecting income for the next 12 months) - Year 4 2,910,608 6.786% 6.786% 11 Net yield (reflecting income for the next 12 months) - Year 5 3,007,906 7.013% 7.013% B. OTHER PRINCIPAL INPUTS 12 True net initial yield (reflecting income for the next 12 months after 435,898 1.016% all capital expenditure in the cashflow) – Year 1 1 Occupancy - term: Year 1 30.00% 13 Net yield - reflecting "in place" income 435,898 1.016% 1.016% 2 Occupancy - term: Year 2 60.00% 14 Net yield - reflecting estimated income for the next academic year 995,228 2.320% 2.320% 3 Occupancy - term: Year 3 90.00% 4 Occupancy - out of term: Year 1 30.00% No Growth Reversionary Yield & Estimated Net Equivalent Yield : 5 Occupancy - out of term: Year 2 20.00% 15 Net reversionary yield (gross of capital reserves and costs in the 2,479,229 5.781% 5.788% cashflow, but unadjusted for capex) on a no growth basis 6 Occupancy - out of term: Year 3 10.00% 16 Estimated Net Equivalent Yield (cashflow gross of capital reserves Not Calculated and costs, but unadjusted for capex. Annually in arrears basis) 7 Student related income - GICR for valuation 6.000% 8 Student related income - Adj for exit yield 0.000% i) Weighted average revenue data for year 1: 9 Student related income - Exit Yield 6.000% 17 Revenue - term time unit income only (incl noms, excl other adjmts) 1,076,987 p.a. 10 Student related income - Discount Rate for DCF 8.000% 18 Revenue - all income (incl noms and other adjmts) 1,245,246 p.a. 11 Student related income - Rental growth rate - Year 1 3.500% 19 Operating costs & Leakage % (excluding management fees and rent) 753,312 p.a. 60.50% 12 Ancillary income - Growth rate - Year 1 2.500% 20 Operating costs & Leakage % (including management fees and rent) 809,348 p.a. 65.00% 13 Commercial income - Rental growth rate - Year 1 2.500% 21 Net cashflow before capital reserves and capital costs 435,898 p.a. 14 Operating costs - Cost inflation rate - Year 1 2.000% 22 Net cashflow after capital reserves and capital costs 435,898 p.a. 15 Head rent - rent inflation rate - Year 1 2.500% 16 Student purchaser's costs (on entry) 2.926% Ii) Weighted average revenue data for year 1 - per unit: 17 Student purchaser's costs (on exit) 4.439% 23 Revenue - term time unit income only 1,743 p.a. per unit 18 Commercial purchaser's costs 0.000% 24 Revenue - all income 2,015 p.a. per unit 19 Disposal costs for the exit calculation 1.250% 25 Operating costs (excluding management fees and rent) 1,219 p.a. per unit 20 Management fee : a % of gross income 4.500% 26 Operating costs (including management fees and rent) 1,310 p.a. per unit 21 Capital reserves : a % of gross income 0.000% 27 Net cashflow before capital reserves and capital costs 705 p.a. per unit 28 Net cashflow after capital reserves and capital costs 705 p.a. per unit C. VALUATION ASSUMPTIONS All figures in GBP iii) Weighted average revenue data for year 1 - per unit per term week: The cashflow is on a calendar year basis 29 Weighted average number of term weeks 44.8 weeks Income growth above applied after year 1 30 Revenue - term time unit income only 38.92 per unit per term week Expense inflation applied after year 1 31 Revenue - all income 45.00 per unit per term week Exit price based on the forward looking 12 month income at the exit point. 32 Operating costs (excluding management fees and rent) 27.22 per unit per term week Cashflow is discounted as per the DCF analysis 33 Operating costs (including management fees and rent) 29.25 per unit per term week Commercial income (if receivable) is separately valued 34 Net cashflow before capital reserves and capital costs 15.75 per unit per term week Ancillary income (related to student occupation) has been added to our cashflow projections 35 Net cashflow after capital reserves and capital costs 15.75 per unit per term week It is assumed that the management agreement is in place and the costs associated are historic Capital costs in the cashflow are not inflated from day 1 and are assumed to arise in the first month of the year Commercial Element Only: 0 36 Revenue - Year 1 0 p.a. 0 37 Revenue - Year 1 per Sq Ft n/a 0 38 Net initial yield n/a 0 0 0 0

Lease expiry date (for leased assets) n/a

T:\PSQ\Shared\Valuation\Clients\Bank of America\Project Rose II & III\6. Val Calcs\VP Vals\[PBSA FH Model_PDS.xlsx]Inputs © Cushman & Wakefield LLP 2019 Cushman & Wakefield | Bank of America Merrill Lynch Appendix C: Rent Comparables and Map Valuation Date: 12 July 2019 Pittodrie Street, 3 - 10 Pittodrie Street, Aberdeen, AB24 5AD

APPENDIX C: RENT COMPARABLES AND MAP

43

Aberdeen Student Accomodation Comparables 03.07.2019

Room numbers (beds) in Map No. Block Name Postcode Operator Photo Room Types Let Length 2019 Rent (£per week) 2019 Comments Block: total 2019

Standard 46 £110/up to £113 Laundry, car park, bike storage, CCTV Standard 51 £104/up to £107

1 207 King Street AB24 SAH Ardmuir 26

Ensuite 51 £137/up to £165 Common areas, vending machines Ensuite 44 £142/up to £168 Studio 51 £173/up to £214 Studio 44 £178/up to £193

Fresh Student Caledon Court AB10 7AP 200 2 Living

Ensuite 40 £129/up to £143 Gym, laundry, vending machines, bike storage, common areas Ensuite 51 £123/up to £137 Studio 40 £187.00 Studio 51 £165/up to £190 1 bedroom 51 £205.00 3 Causeway View AB25 3DD UNITE 399

Studio 51 £127/up to £157 Laundry, bike storage, common areas,

4 Centro Court AB25 1DH Hello Student 56

Standard 42 £78.00 Laundry, BBQ, bike storage Standard 51 £78.00 Ensuite 42 £90.00 Ensuite 51 £90.00

5 Don Street AB25 1UY Liberty Living 171

Studio 44 £155.00 Laundry, gym, cinema, common areas Studio 51 £139/up to £205

Prestige Fraser Studios AB25 3TN 173 6 Student Living

Standard 51 £80.00 Laundry, bike storage, car parking, vending machine Standard 47 £80/up to £91 Standard 40 £83/up to £91 Standard 38 £83.00 Ensuite 51 £104.00 7 Spring Gardens AB25 1GN UNITE 511 Ensuite 40 £111.00 Studio 51 £154.00 Studio 40 £163.00 1 bedroom 51 £163.00

Standard 52 £125.00 Laundry, bike storage, common areas Standard 51 £90/up to £138 Standard 46 £95/up to £145 Ensuite 46 £145.00 Ensuite 51 £138.00 8 Trinity Court AB24 5QU Ardmuir 512

Ensuite 44 £155.00 Laundry, bike storage, car park, common areas Ensuite 51 £148.00 Studio 51 £190.00

9 U-Student Aberdeen AB11 6AE U-Student 222

Ensuite 40 £124/up to £149 Laundry, bike storage, common areas, media lounge Ensuite 44 £124/up to £149 Ensuite 51 £109/up to £149 Studio 40 £169/up to £189 Studio 44 £169/up to £189 10 Pittodrie Street AB24 5QP Student Roost 618 Studio 51 £169/up to £189 Map – Aberdeen – Pittodrie Street Cushman & Wakefield | Bank of America Merrill Lynch Appendix D: ABERDEEN MARKET COMMENTARY Valuation Date: 12 July 2019 Pittodrie Street, 3 - 10 Pittodrie Street, Aberdeen, AB24 5AD

APPENDIX D: ABERDEEN MARKET COMMENTARY

44

Executive Summary Aberdeen Student Accommodation Market

The Aberdeen market is one of the most interesting in the UK, with significant issues relating to falling demand and market digestion, alongside the ending on a large number of University agreements leading to significant occupancy and pricing issues. Over half of the market is now let on a direct- let basis, with the University of Aberdeen accounting for 30% of beds and Robert Gordon University just 10%. It should be noted that in 2017/18, around 80% of all beds were available through the two universities thanks to a range of agreements, although 1,900 bed spaces have gone from nominated to direct-let in just two years. Robert Gordon itself ended agreements on over 1,000 beds between 2017/18 and the forthcoming 2019/20 academic year, in part due to issues in its own accommodation.

Cushman & Wakefield is currently estimating that the average annual price of a bed space in Aberdeen in 2019/20 will be 13% lower than in the previous year, and this is set to be the largest decrease seen in the UK. This drop in rents is a continuation of discounting seen in 2018/19; Caledon Court (Fresh) lowered rents by 5 – 10%, Mealmarket Exchange (Student Roost) lowered en-suite rents by 21%. Centro Court, King Street Exchange, Powis Place, Spring Gardens, The Combworks and The Old Fire Station all discounted rents this year, standard, en-suites and studios all were discounted in schemes across the city.

In terms of ongoing market health, the development pipeline now stands at under 2,000 bed spaces with only just over half of these having planning permission. Cushman & Wakefield is currently working with Robert Gordon University on an assessment of its residential estate which is extremely poorly specified and, in most cases, poorly located. It appears likely that the University will look to reassess its accommodation offer over the coming years that may lead to opportunities for private sector providers.

At 1.8:1, the student to bed ratio is below the national average and has the potential to fall further is strong, University recovery is not established over the coming years.

The quality of Pittodrie street in relation to most of the market in Aberdeen is very good and rents at the scheme well placed within the market.

4 Key Statistics Aberdeen Student Accommodation Market

University of Robert Gordon Aberdeen University

FT student population 12,425 9,100

Growth 2012-2017 -3% 1%

Growth 2015-2017 4% -2%

Number of international students 4,665 1,820

Change in students from outside the 21% -21% UK 2012-2017

Number of Students from outside the 6,120 2,045 region

Change in students from outside the 5% -20% region 2012-2017

Change in UCAS applications 2016 - -6% -13% 18

UCAS app:accepts ratio 7.4 4.3

Times Rank 2019 26 96

Change in Times Rank 2012-2019 16 -44

TEF n/a Gold

6 University of Aberdeen League Table Rankings

University of Aberdeen League table rankings 2010-2019 The University of Aberdeen has continued to perform well in both the Times and the Complete University Guide, placing in 26th and 28th place respectively in 2019. Aberdeen was ranked 51st in the Guardian but has since risen up to 34th in the newly released 2020 Guide and has dropped one place to 29th in the complete guide. As with other Scottish institutions the University of Aberdeen did not participate in the TEF 2017, however it was ranked 38th in the 2014 REF. The University’s performance bodes well for the recruitment of students from both the UK and outside, with the institution now having an internationally strong reputation for both teaching and research.

Source: University League tables 2010 - 2019

Cushman & Wakefield | Helmsley Group 8 University of Aberdeen Campus Investment

Old Aberdeen Campus (King’s College Campus) Regeneration Transformational plans to further enhance teaching and learning spaces and support projected growth in student numbers are being progressed by the University of Aberdeen. Major regeneration and new developments are proposed for the Old Aberdeen campus with a wide portfolio of projects being considered - or getting underway - with a combined cost of almost £100 million. Currently underway is the £35 Science Teaching Hub, which will feature cutting edge facilities and flexible teaching laboratory space which will encourage collaboration between students from different disciplines. The building will provide the main teaching laboratories for students studying chemistry, physiology, biomedical sciences, geosciences and biological sciences. In addition the facilities will support the University’s current public engagement and widening access activities. Elsewhere on campus, new educational spaces are proposed for Cromwell Tower, The Stack and the Senate wing – areas that are either little, or poorly used. Enhancement proposals are also being explored for the MacRobert Building that will see it become the home for the entire Business School, which is expected to double its student population over the next decade. Existing users of MacRobert will also be provided with the same high standard of accommodation.

9 Robert Gordon University League Table Rankings

Robert Gordon University League table rankings 2010-2019 Robert Gordon’s performance in the three major University league tables has fluctuated in recent years. In 2019 the university was ranked in 96th by the Times, 78th by the Guardian and 83rd place by the Complete University Guide. In the recently recent Guardian and Complete 2020 rankings, the university’s ranking has only marginally changed, going up two places in the guardian and dropping 3 places in the Complete Guide. The university was ranked 87th in the 2014 Research Excellence and received a gold award in the TEF 2017. The TEF panel praised RGU for supporting students from all backgrounds to achieve outstanding outcomes, as well as high levels of continuation rates and exceptional professional practice.

Source: University League tables 2010 - 2019

Cushman & Wakefield | Helmsley Group 10 Robert Gordon University Campus Investment

Jamie Oliver Deli Communal Garden RGU is the first university campus to open a Jamie Oliver Deli, giving A communal garden has been built on the site of old Craiginches students new, tasty, nutritious options. Robert Gordon has a global Prison designed by a student from RGU’s Scott Sutherland School of reputation in health studies and life sciences, and puts a focus on Architecture and Built Environment. The design includes the face of providing healthy dining options. Now in partnership with Aramark the old prison clock and granite blocks from the perimeter wall. Northern Europe and the Jamie Oliver Restaurant Group, the Housing provider Sanctuary has created the garden as a community university has opened the world’s first on-campus Jamie’s Deli. benefit of the 124 affordable homes it is building in partnership with the Scottish Government and Aberdeen City Council.

11 Market Rents University Walk – Student Roost Rental Profile (Scheme rents marked in red)

The lowest rent at University walk sits at the most common price for an en-suite in Aberdeen, most of the en-suites are priced above the average for an en-suite, as the scheme benefits from varied common space and is the most recently built scheme in Aberdeen the prices are justified. The rest of the market has reduced in price in recent years to chase occupancy, most of this stock is poor or average quality and better quality and sensibly priced stock should perform well.

13 Planning Pipeline PBSA applications in Aberdeen

Number of bed spaces in planning pipeline 1,439

Development pipeline by Application Stage

Source: Aberdeen City Council July 2019

15 Planning Pipeline Proposed Developments in Aberdeen

Aberdeen Development Pipeline, July 2019

Source: Aberdeen City Council, July 2019

The pipeline in Aberdeen has shrunk considerably in recent years to 1,439 beds, and 850 of these beds are in the pre-planning and it is currently unclear to whether the applications will be taken any further. The two schemes with planning amount to 513 beds, 100 of which are in a traditional PBSA area on King Street between the city centre and the University of Aberdeen, whereas the bigger 413 bed scheme is located next to the train station just to the south of the city centre.

16 Demand and Supply Dynamics The Aberdeen demand pool

The pool calculation below sets out our assumptions of demand for student accommodation in Aberdeen taking into account current supply levels in Aberdeen and the latest HESA student figures (2017/18) for University of Aberdeen and Robert Gordon University. In arriving at our demand pool, C&W has excluded a number of students who are unlikely to demand accommodation in the city. This includes: • All students from the City of Aberdeen • Students currently not living in PBSA domiciled in Aberdeenshire • Students living at Home in Angus • Sandwich students currently on a placement year in industry

Aberdeen Demand Pool & SBR

Source: HESA 2017/18, Cushman & Wakefield Accommodation Tracker 2019/20

The student to bed ratio in Aberdeen is below Cushman & Wakefield’s nationally observed average of 2.0:1. A ratio of 1.8:1 can be considered healthy, but Cushman & Wakefield are aware of occupancy issues in the city due to development and the ending of a large number of nomination agreements. The pipeline has shrunk massively recently due to a number of developers looking at alternate uses or putting student developments on hold, going forward the SBR is likely to remain the same should the universities maintain their current recruitment trajectory or even increase if the University of Aberdeen can recruit to target in the coming years.

18 Bank of America Merrill Lynch International DAC Cushman & Wakefield

Project Roost Upsize as at 12th July 2019

Cushman & Wakefi eld

Appendix 1 Instructions (Correspondence)

This valuation report has been prepared in accordance with the instructions agreed between us, as recorded in your Award Letter dated 19th June 2019.

Award Confirmation

Rupert Dodson FRICS on behalf of Cushman & Wakefield LLP (EMEA / APAC) is hereby authorized to perform the following Statement of Work (SOW) as further defined herein, execution of which must comply with all terms and conditions of this Order and master service agreement(s) CW296907, CW827949. Vendor acknowledges that this confirmation letter is a summary of select contract terms and conditions which is provided for convenience. To view the complete agreement electronically accepted by Vendor, refer to Bank of America's Commercial Valuation Services Information Management System.

Supplier: Statement of Work VSIMS ID: 19-000587-APR-004 Service Requested: Appraisal (Order) Project Description: Rose;4 Locations in the UK,SC,Aberdeen,GBR Borrower / Client: Brookfield Sourcing Manager: Wayne Miller(813-968-7283) Contract Amendments (original terms remain in force except where expressly modified) Date Amended Revised Due Date Revised Fee Revised Statement of Work 06/19/2019 07/18/2019 GBP 62,400 Amended to confirm fee for increased PI coverage Original Terms Award Date Delivery Due Date Fee Delivery Performance 06/19/2019 07/18/2019 GBP 62,400 All deliveries due by 6 PM local time unless otherwise specified. Time is of the essence. Review of all attachments and initial communication with identified project or property contacts must occur within five days of engagement. Liquidated damages may be assessed if the Statement of Work (SOW), including the delivery of all reports and requested data, is incomplete by the listed due date. Damages will be assessed at a rate of 5% of the negotiated fee for each day (cumulative) the SOW remains incomplete. Damages will not be imposed for delays resulting from circumstances beyond the appraiser's control if timely notice is provided; such circumstances to be judged for their validity solely by the Sourcing Manager. Individual standalone reports to be provided for each listed property unless instructed otherwise in this agreement. Service Definition Product: International ; Appraisal Certification: Contracted Appraiser Must Sign # CUR Premise Interest Allocations Market Value Other Freehold Real Estate FF&E 1 GBP VPV Replacement Cost Value As-Is Not Applicable Real Estate FF&E 2 GBP a/k/a Indicative Reinstatement Value 3 GBP Market Value As-Is Freehold Real Estate FF&E Policies, Procedures, Other Terms and Conditions 1. RELIANCE LANGUAGE: Include the following language in the Letter of Transmittal and the Intended Use Section of the report: "This report may be relied upon by Bank of America Merrill Lynch International Limited and its affiliates, successors and/or assigns; the selected Facility Agent, its successors and/or assigns; and the selected Security Agent, its successors and/or assigns, in connection with their respective consideration of the extension of credit related to the property and/or the beneficial ownership thereof (the "Loan Financing"). This information also may be relied upon by any actual or prospective purchaser, co-lender, participant, investor, transferee, assignee and servicer of the Loan Financing, any arranger of the Loan Financing and their assigns, any actual or prospective investor (including agents and advisors) in any securities evidencing a beneficial interest in, or backed by, the Loan Financing, any rating agencies actually or prospectively rating any such securities, any indenture trustee and any institutional provider(s) from time to time of any liquidity facility or credit support for such Loan Financing (together the "Beneficiaries"). A Beneficiary shall be permitted to rely on the report only on the condition that it acknowledges that the valuers shall not be liable to the Beneficiary for any special, indirect or consequential, damages and that the valuers' total aggregate liability to all lenders, agents, Beneficiaries and any other third party who seeks to rely on the report (the "Aggregate Cap") shall be limited to a sum not to exceed the lesser of 25% of the market value or forty-five million pounds (45,000,000 GBP). Reliance by the Beneficiaries and any other third parties on the report shall constitute deemed acceptance of the above provisions in this paragraph and that any matters or disputes arising as a result shall be governed by English law and subject to the exclusive jurisdiction of the English courts. This report may be disclosed, without reliance, to any rating agency in connection with a Securitization." 2. CERTIFICATION LANGUAGE: The valuation must include the EMEA-APAC Certification Language in the attached reference document (altered as relevant for prior services and to name those who provided signification valuation assistance). 3. INVOICE: To expedite invoice processing the invoice must identify the address and work performed for all properties. Include the statement ----- FOREIGN SOURCE ----- to expedite processing and ensure the appropriate accounting rules are followed. If not included on the invoice, include a separate document listing your wire instructions in order to process the payment electronically. 4. OTHER REQUIREMENTS: Appraisal reports must include: 1) Remaining economic life ----- 2) Exposure time ----- 3) Marketing time ----- 4) Identification and support of the most probable buyer (investor or owner-user). If the most probable buyer is an investor, the valuation should include appropriate deductions and discounts for vacant, owner-occupied and owner-affiliate-occupied space (treat as vacant and available for lease). ----- 5) The Cost Approach should be employed for proposed construction, new construction (24 months old or less) or gut renovation unless waived by Commercial Appraisal Services (CAS). ----- 6) Reappraisals must explain differences in value for assignments completed for Bank of America within the last two years. ----- 7) Review CAS Valuation Requirements prior to beginning an assignment and CAS Assignment Reminders prior to submitting assignment results. 5. WARRANTIES AND REPS: Include the following statement in the Letter of Transmittal and/or other prominent section of the report: "Bank of America Merrill Lynch makes no warranties or representations regarding this document or the conclusions contained herein."

Documents (document content must be downloaded from VSIMS) SOW-specific Reference Documents 1. EMEA-APAC_CERTIFICATION_LANGUAGE_09012017_082842.docx 2. EMEA-APAC_VALUATION_REQUIREMENTS_09012017_083254.pdf Project-specific Documents 1. Miscellaneous (APR) Roost_-_add_on_20190613_115537.xlsx

Addressee and Distribution Instructions Report Distribution Name Address Comments Wayne R. Miller, FRICS, MAI, AI-GRS Bank of America Merrill Lynch International DAC | 2 [email protected] Addressee and Intended User Senior Vice President King Edward St | London | EC1A 1HQ Global Project Contact(s) (optional contacts listed where applicable) N/A

Property 002 Property Name Project Rose Add-On Property Address 4 Locations in the UK; Aberdeen, SC BT1 2LT United Kingdom Site Owner Brookfield Tax Parcel ID(s) Multiple Property Type Multi-Family:Student-Oriented Housing-Student Oriented Apartment Property Use Current Use: Student Accommodations; Proposed Use: Student Accommodations Property Status Existing; Year Built/Age: 2018; Occupancy: 84% Tenancy Multi-Tenant ( all leases < 1yr); # of Tenants: 1991 Property Measures Building: 2,381 (Actual Unit Count may be lower);2,381 Beds ; Land Area: 48 Acres (Unknown; estimated at 50 beds per acre); Marketing No Miscellaneous Ground Lease: N; AOC: N; Built pre-1989: N; Flood Hazard: N; Other Comments Contacts Jeannie Wong (Brookfield) T +44 (0) 20 7408 8493