Valuation Advisory Client: Morgan Stanley Bank N.A

Jones Lang LaSalle Valuation Advisory Client: Morgan Stanley Bank N.A.

Property: Citypoint, 1 Ropemaker Street, London EC2

October 2018

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018 Contents

1. Location ...... 1 1.1. Location ...... 1 1.2. Communications ...... 3 1.3. Situation ...... 6 2. Description ...... 14 2.1. Site ...... 14 2.2. Property...... 15 2.3. Construction ...... 16 2.4. Accommodation...... 20 2.5. State of Repair ...... 23 2.6. Environmental Considerations ...... 25 2.7. Sustainability Considerations ...... 26 3. Legal ...... 28 3.1. Title Review ...... 28 3.2. Tenancies ...... 32 3.3. Covenant Status ...... 36 3.4. Income Analysis ...... 39 3.5. Planning ...... 41 3.6. Rating Assessment ...... 43 3.7. Stamp Duty Land Tax ...... 43 4. Market Commentary ...... 44 4.1. UK Economy ...... 44 4.2. Property Market Overview ...... 45 4.3. Local Market Review – City of London Offices Q3 2018 ...... 46 4.4. City of London Retail Provision ...... 50 5. Valuation Commentary ...... 53 5.1. Rental Evidence and Considerations ...... 53 5.2. Estimated Rental Value ...... 68 5.3. Market Rent ...... 72 5.4. Investment Comparables and Investment Considerations ...... 72 5.5. Valuation Approach ...... 85 5.6. Historic Market Analysis ...... 87 5.7. Loan Security Commentary ...... 90 5.8. Highest and Best Use ...... 92 5.9. Suitability for Loan Security Purposes ...... 92 6. Valuation ...... 93 6.1. Market Value ...... 93 6.2. Market Value on the Special Assumption of Vacant Possession ...... 93 6.3. Reinstatement Valuation ...... 93 6.4. Confidentiality and Publication ...... 93

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018 Appendices

Appendix 1 ...... Letter of Instruction Appendix 2 ...... General Terms and Conditions Appendix 2 ...... General Principles Appendix 2 ...... Definition of Market Value Appendix 2 ...... Definition of Market Rent Appendix 3 ...... Location Plans and Maps Appendix 4 ...... Photographs Appendix 5 ...... Rateable Values Appendix 6 ...... Tenancy Schedule Appendix 7 ...... Valuation Print-Out

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

Citypoint, 1 Ropemaker Street, London EC2

Executive Summary

Key Property Facts Inspection Basis: Internal inspection Macro Location: National Micro Location: Prime Sector: Office County: London - City Total Property Area: 708,954 sq ft Tenure: Freehold Number of Tenants: 32 tenants on 50 leases / licences Percentage Vacant: 4.1% vacant by area Total Rent Reserved: £25,319,643 per annum £30,615,783 per annum (full contracted rent on expiry of all rent free and half rent incentives) Net Income: £25,319,643 per annum £30,615,783 per annum (full contracted rent on expiry of all rent free and half rent incentives) Income Stream: Reversionary by 49% comparing External Image the passing rent to the headline ERV. Reversionary by 18% comparing the contracted rent (on expiry of the rent free periods) to the ERV of the let space only. Covenant Strength: Good AWUT: 5.2 years to breaks 6.4 years to expiries Valuations as at: 16 October 2018 Market Rent: £37,691,671 per annum Market Value: £600,000,000 IY: 3.95%, rising to EY: 5.37% RY: 5.88% 4.50% in June 2019 Market Value psf: £846 Purchasers Costs: Stamp Duty plus 1.80% Market Value with £460,000,000 Vacant Possession: OS Plan Reinstatement Cost £502,000,000 Estimate (indicative):

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

Location

■ The subject property is located in London, one of the world’s leading global financial centres ■ Moorgate station is 50 m to the south east with access to the underground network – Circle, Northern, Metropolitan, Hammersmith and City lines, and over ground services operated by Great Northern to Hertfordshire. This will also provide access to Liverpool Street Crossrail station (opening 2019) ■ The property, being on the border of the EC2 and EC1 postcodes means it is attractive to both financial and TMT sector occupiers ■ The substantial development in the immediate area has brought further focus on the micro location and should strengthen the area over time, particularly with the property being located in close proximity to the Moorgate entrance of the Liverpool Street Crossrail station ■ Citypoint was for a number of years, one of only a handful of tower buildings in the City of London, but now must compete with a growing number both north and south of the River Thames

Description

■ The property comprises an office tower on four basement levels, ground floor (referred to as level 1) and 34 upper floors (no level 13) with retail units located on level 1 and a health centre and nightclub are on lower ground floor level ■ The building was purpose-built in 1967, for what is now BP Plc, and adapted and rebuilt to increase height and floorplate size in 1998-2000 including re-cladding the main tower building, partial demolition and re-building of the South Wing and podium building, partial demolition and re-building of public walkways and re-modelling of the external public square and external space ■ The building now extends to a total net internal area of 708,954 sq ft comprising 622,265 sq ft of offices, 67,267 sq ft of retail and 19,422 sq ft of storage space. ■ The property is arranged as a podium base which extends up to level 8 with the tower floors extending up from this. Feature ‘wings’ extend out from the tower from level 14 down to the roof of the podium and act as roofs over two atria that run down through the podium levels to ground. At level 1 (ground floor) there are four receptions ■ The offices have been fitted out with institutional quality CAT A specifications

Tenure

■ The property is held freehold with two long leasehold interests created under the freehold interest. We understand that these interests are all in the control of the Borrower. We have valued the property assuming an unencumbered freehold interest ■ A right of way exists over the eastern half of New Union Street (which lies within the demise of Tenter House) for the owner and tenants of Citypoint. There are reciprocal rights granted to Tenter House to pass over the western end of New Union Street (which lies within the demise of the subject property) for the purpose of obtaining access from and to Moor Lane ■ The western part of Tenter House oversails retail unit 3, currently occupied by Pret a Manger on level 1 and mezzanine level only

Tenancy Summary & Income Profile

■ The property is currently let to 32 different occupiers on 50 leases or licences. This splits as: – Offices: 17 occupiers on 29 leases

– Retail (including the gym): 10 occupiers on 12 leases

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

– Storage and parking: 3 occupiers on 7 leases or licences (there are 7 occupiers of the storage and parking but 4 of these are also retail and office tenants so there are 3 independent occupiers)

– Telecommunications: 2 occupiers on 2 leases

■ There are currently three vacant office suites: part level 15, part level 16 and level 18. These extend to a total of 21,896 sq ft or 3.5% of the office area of the building

■ The property produces a total rental income of £25,319,643 per annum which equates to £42.41 per sq ft based on the area of the let and income producing space ■ There are currently ongoing rent free periods and half rent incentives. On expiry of these (assuming no other changes), the contracted rent is £30,615,783 per annum. This equates to £45.22 per sq ft based on the area of the let space ■ Office use accounts for 95.2% of the contracted rent ■ A long lease has been granted over part of the basement and the access ramp to it to the owner of the neighbouring office building, Tenter House

Covenant

■ The largest tenant, Simmons and Simmons is responsible for around 22% of the current contracted income and is given a strong ‘Creditsafe’ credit rating of 94 out of 100 ■ The second largest tenant, Regus, with 15.4% of the current contracted income is given a low rating. However, the tenant is an SPV set up to hold this lease, so does not offer any significant security. There is, however, a guarantee from Regus Plc which would offer greater security. Regus is the world’s largest provider of flexible workspace and, despite the low Creditsafe rating, we believe that it would be considered to offer a good covenant ■ Beyond the top four tenants, no one company is responsible for more than 5% of the current income. Whilst investors will still consider the covenant mix, for these smaller tenants the covenant strengths would be of less concern than the major occupiers, with any failures having a more limited impact on the income profile ■ We understand from your borrower that there are no current rental arrears and we are of the opinion that investors would view the covenants as appropriate for a multi-let building such as this with good security provided over the majority of the space

Analysis

Strengths Weaknesses

■ Extensive freehold interest in the City of London ■ The building was last comprehensively refurbished in 2000 so requires heavy ongoing cap ex to maintain ■ Vacancy rate low at 3.5% of office accommodation. For value a multi-let building such as this, we would expect that there will often be some level of void and a void below ■ The WAULT at 5.2 years to earliest expiries is relatively 5% is considered quite positive. short, particularly for a large lot such as this ■ Retail units fully let ■ The floorplates of the lower floors are heavily subdivided by atria and views partly compromised by ■ Reversionary by 18% comparing the contracted rent (on the galleria expiry of the rent free periods) to the ERV ■ The main reception lacks prominence ■ Distinctive tower design attracting premium rents on the top floors ■ Opening of Crossrail in 2019 will further improve the location’s accessibility

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

Suitability for Loan Security

■ We have not been provided with details of the loan terms ■ We assume that the loan is to be secured over the freehold and both leasehold title interests and there would be no onerous costs in maintaining or collapsing these interests, if required ■ On the basis of the information provided and subject to the comments contained within this report, we consider the property forms suitable security for a mortgage advance. In accordance with normal commercial practice, however, we would anticipate any advance being for only a proportion of our opinion of Market Value

Asset Management Considerations

■ You should monitor the PPM schedule as it is critical with older buildings that the works are undertaken to avoid untimely obsolescence. The PPM needs careful management to control the costs going forward and avoid any sharp rises in the service charge levels and the risk of breaching the service charge caps ■ The adjoining Tenter House has recently received planning consent for complete demolition and rebuilding. This opportunity should be taken to improve the pedestrian access from Moorfields, which is currently unattractive, and forms one of the main routes in to the pedestrian plaza ■ The borrower is successfully actively managing the tenants, removing break options and re-gearing leases where possible. This degree of hands-on management is vital to support the future cashflow of the building and maintain value

Information Requiring Clarification and Key Assumptions

■ We assume that the security is to be held over the freehold and both leasehold title interests

This Overview forms part of the Valuation Report dated October 2018 and should not be read in isolation.

The Walbrook Building 25 Walbrook London EC4N 8AF tel +44 (0)20 7248 6040 fax (0)20 7248 0088

www.jll.co.uk

Morgan Stanley Collateral Valuation Team Your ref Morgan Stanley Bank N.A. Morgan Stanley Mortgage Capital Holdings LLC Our ref AM/AB/479500LON 1585 Broadway, 25th Floor Direct line +44 (0)20 7852 4133 New York New York 10036 Direct fax +44 (0)20 7248 0088

[email protected]

7 November 2018

Dear Sir

Terms of Reference Addressee: The Directors Morgan Stanley Collateral Valuation Team Morgan Stanley Bank N.A. Morgan Stanley Mortgage Capital Holdings LLC 1585 Broadway, 25th Floor New York New York 10036

Property Address: Citypoint, 1 Ropemaker Street, London EC2 (“The Property”)

Reliance: This report was prepared for and may be relied upon by Morgan Stanley Bank, N.A., Morgan Stanley Mortgage Capital Holdings LLC, and their respective affiliates and successors and assigns (collectively, “Morgan Stanley”) with respect to any loan(s) placed upon the property (or on direct or indirect ownership interests in the owner of the property) described in the report. This report may also be relied upon by Morgan Stanley or its designee, in its capacity as Administrative Agent (or any analogous role) on behalf of lenders in the lending syndicate, and the successors and assigns of each of the foregoing. Any rating agency or issuer or purchaser of any security collateralized or otherwise backed by such loan(s) may further rely upon the reports. The valuation shall be capable of being relied upon by 1) Morgan Stanley Bank N.A. or any of its affiliates, 2) any entity that becomes a Finance Party in accordance with the terms of the Senior Facility Agreement, 3) any entity that becomes a Finance Party in accordance with the terms of the Mezzanine Facility Agreement 4) the Senior Facility Agent on behalf of the Senior Lenders and 5) the Mezzanine Facility Agent on behalf of the Mezzanine Lenders. We confirm our consent that on a non-reliance basis and strictly for information purposes only:

Jones Lang LaSalle Limited Registered in England & Wales Number 1188567 Registered Office 30 Warwick Street, London W1B 5NH

i. The Valuation or a reference to and summary of it (and the methodologies and concepts on which it is based) may be included in any prospectus, information memorandum, offering circular, registration statement or similar document as may be required to comply with any applicable laws, regulations or official guidelines relating to the issuance of or investment in any securitisation of the loan under the Senior or Mezzanine Facility Agreement; and ii. The Valuation or references to it may be included in any document provided to any potential providers of finance and their directors, officers, employees, agents and professional advisors in connection with any syndication or securitisation (both of the Senior and Mezzanine Facilities) in relation to the financing. The valuation shall be disclosed for information only and on a non-reliance basis to: a) Agents, trustees and advisers of the Addressees b) Affiliates, employees, officers, directors and auditors of the Addressees c) Any servicer of any loan under the Facilities (and its advisers) d) Governmental, banking, taxation or other regulatory authority e) To any rating agency actually or prospectively rating any securities issued in connection with a securitisation of any loan under the Senior Facility Agreement and/or Mezzanine Facility Agreement, and its advisers f) To or pursuant to rules of a stock exchange, listing authority or similar body g) As required by law, court order or regulation in connection with legal or arbitration proceedings h) Any actual or prospective investor in any securities issued in connection with a securitisation of any loan under the Senior or Mezzanine Facility Agreement, and their advisers i) Any prospective or actual purchaser of any property or shares in an entity that owns any property either directly or indirectly j) Any prospective purchaser, transferee or assignee of, participant in, or hedge counterparty in respect of, any loan made under the Senior Facility Agreement, Mezzanine Facility Agreement or other agreement in relation to the Senior or Mezzanine Facility Agreement This report is confidential to the party to whom it is addressed. We agree to extend reliance to each present and future finance party to the proposed facility agreement and any trustee or assignee with respect to any securities issued in connection with a securitisation of the loan under the facility agreement, provided that: (i) all relying parties shall be bound by the same liability exclusions and limitations, and that our liability shall be no greater as a result of extending reliance to additional parties; (ii) you confirm for and on behalf of all such finance parties that the exclusions and limitations are accepted.

(iii) nothing in this clause shall permit any quoting or disclosure intended to form part of any public offering. If at any stage it is intended to include the valuation or report, or any reference thereto, in any Prospectus or Circular to shareholders or similar public document, our written consent will be required. No part of this report may be disclosed to any third parties without our prior written approval of the form and context in which it will appear. Save in respect of our liability for death or personal injury caused by our negligence, or the negligence of its employees, agents or subcontractors or for fraud or fraudulent misrepresentation (which is not excluded or limited in any way): a) we shall under no circumstances whatsoever be liable, whether in contract, tort (including negligence), breach of statutory duty, or otherwise, for any loss of profit, loss of revenue or loss of anticipated savings, or for any indirect, special or consequential loss arising out of or in connection with this report; and b) our total liability in respect of all losses arising out of or in connection with this report whether in contract, tort (including negligence), breach of statutory duty, or otherwise, shall not exceed £100,000,000. This amount shall be an aggregate cap on our liability to all relying parties together.

Borrower: Citypoint Holdings I Limited

Tenure: Freehold

Valuation Date: 16 October 2018

Instruction Date: 16 October 2018

Instruction and Purpose of Valuation: In accordance with your letter dated 16 October 2018 and our confirmation letter dated 24 October 2018 (attached to Appendix 1) we are instructed to provide you with a report and valuation for loan security purposes.

Proposed Loan Details: We have not been provided with details of the loan terms.

Purchase Price: We understand that the property was purchased in 2016 for £560 million.

Basis of Valuation: We confirm that our valuation and report will be prepared in accordance with the current RICS Valuation – Global Standards 2017, which incorporates the IVS, published by the Royal Institution of Chartered Surveyors and the RICS Valuation – Professional Standards UK January 2014 (revised April 2015) (the RICS Red Book as applicable) on the basis of Market Value as defined in Appendix 2. Market Value: The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion. The report is subject to, and should be read in conjunction with, the attached General Terms and Conditions of Business and our General Principles Adopted in the Preparation of Valuations and Reports which are attached in Appendix 2.

No allowance has been made for any expenses of realisation, or for taxation (including VAT) that might arise in the event of a disposal and the property has been considered free and clear of all mortgages or other charges that may be secured thereon.

Inspection: The property was inspected specifically for this valuation on 5 October 2018 by James McTighe, Andrew Pirie and Alison Buckland. We understand that we saw representative parts of the property and we have assumed that any physical differences in parts we did not inspect will not have a material impact on value.

Personnel: The valuation has been prepared by Alison Buckland MRICS and Andrew Pirie MRICS, Director, and reviewed by James McTighe MRICS, Director. We confirm that the personnel responsible for this valuation are in a position to provide an objective and unbiased valuation and are competent to undertake the valuation assignment in accordance with the RICS Valuation – Global Standards 2017 and are RICS Registered Valuers.

Status: In preparing this valuation we have acted as External Valuers, subject to any disclosures made to you.

Disclosure: We have already disclosed to you that the JLL Lease Advisory team is instructed to advise one of the office tenants on a mid-2018 rent review although, as far as we understand, it has not been triggered. Other than this we have had no recent involvement with the property.

Assumptions: As instructed we provide a valuation on the Special Assumption that the property is held with full vacant possession. Otherwise we have made no other Special Assumptions.

Sources of Information: We have inspected the premises and carried out all the necessary enquiries with regard to rental and investment value, Rateable Value, planning issues and investment considerations. We have not carried out a building survey or environmental risk assessment. We have not measured the premises and have relied on the floor areas provided. RICS property measurement (incorporating International Property Measurement Standards) 1st edition, May 2015, requires us to report IPMS measurements in the report for this property. You have not instructed us to measure the property and as IPMS areas are not available to us we have relied on Net Internal Areas (NIA) measured on the basis of the RICS Code of Measuring Practice 6th Edition 2007. We have been provided with the following reports, which we have relied upon: ■ Certificate of Title and Overview Report dated 15 December 2016 prepared by Herbert Smith Freehills

■ Draft Certificate of Title 2018 prepared by Mishcon de Reya

■ Plowman Craven Measurement Reports dated May 2016 to March 2018 of floors 36th to B2, retail units, 15th, 16th, 17th and 18th floors

■ 10 year PPM prepared by Brookfield

■ EPC May 2014

■ Heads of Terms for levels 25 to 27 lease re-gearing and new letting

■ Draft Head of Terms levels 23 to 24 re-gearing

■ CBRE Service Charge Budget 1 January 2018 to 31 December 2018

■ Building Inspection Report dated 31 October 2018 prepared by Watts

■ Tenancy schedule dated 20 September 2018 prepared by Brookfield

Market Value: £600,000,000 (SIX HUNDRED MILLION POUNDS)

Purchaser’s Costs: We have allowed for Stamp Duty Land Tax as follows: Market Value of up to £150,000, zero; next £100,000 (the portion from £150,001 to £250,000), 2.00%; remaining amount (the portion above £250,001), 5.00%. We have also allowed for agents and legal fees plus VAT at standard market rates which amounts to 1.80%.

Confidentiality and Publication: Finally, and in accordance with our normal practice we confirm that the Report is confidential to the party to whom it is addressed for the specific purpose to which it refers. No responsibility whatsoever is accepted to any third party and neither the whole of the Report, nor any part, nor references thereto, may be published in any document, statement or circular, nor in any communication with third parties without our prior written approval of the form and context in which it will appear.

Yours faithfully Yours faithfully

Andrew Pirie MRICS James McTighe MRICS Director Director For and on behalf of Jones Lang LaSalle Limited For and on behalf of Jones Lang LaSalle Limited

RICS Membership Number: 0830363 RICS Membership Number: 0101205

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

1. Location

1.1. Location

1.1.1. General Location

The subject property is located in London, one of the world’s leading global financial centres.

1.1.2. Local Economy

London, as a key financial centre, has a 37% global share of the foreign exchange market with a $1.9 trillion foreign exchange turnover each day. That is double its nearest competitor, New York City. London also has 19% of the global foreign equity market and accounts for 70% of all Eurobonds traded; being the most active centre in the world. There are over £4.1 trillion of funds under management and over 1.29 billion contracts a year are traded on London’s International Financial Futures Exchange (LIFFE). The UK financial services sector creates a trade surplus of £35.7 billion.

London is the largest banking centre in the world; there are 241 foreign banks in London with 18% of cross-border lending arranged in the UK – more than any other country. The insurance market also forms an important element of the City’s trade, with the world’s leading market for international insurance and re-insurance located here that produces over £200 billion net premium insurance income in the UK. Lloyds of London is the world’s leading insurance market and provides insurance to many of the world’s largest companies. 120.3 million metal contracts a year are traded on London’s Metal Exchange, with an average turnover of £46 billion a day.

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

London’s office market is made up of three separate markets namely the West End, the City of London and East London, which includes Docklands. The property is located within the City of London, which is London’s financial office district and largest office market, with a current stock of some 10.7m sq m (115 million sq ft). This is marginally larger than the West End office market of 8.83 million sq m (95 million sq ft) and substantially larger than East London, which includes Docklands and totals approximately 2.04 million sq m (22 million sq ft) of office accommodation.

The map below shows the main Central London office markets and the typical occupiers which traditionally have been located within the respective areas.

Historically, the City comprised several sub-markets where different occupiers such as insurance, banking, accountancy and the legal professions conglomerated. These sub-market concentrations have become more blurred, predominantly as a result of the de-regulation in the 1980s, which has meant that the traditional financial focus around the Bank of England has become less important, with occupiers now less location sensitive and office development becoming more homogeneous across the City.

Irrespective of this, there are still locations which attract particular occupiers, with the office area around the Bank of England within the EC2 postcode remaining the traditional heart of the City of London with the banking and finance industry still predominately concentrating in this locality, and the EC3 postcode area, around Lloyd’s of London remaining a focus for the insurance market.

As well as structural changes to the office accommodation within the City, over the last 20 years, the market has moved from being almost exclusively focused upon office accommodation to a position where there has been a substantial increase in the provision of residential, retail and leisure facilities. This is making the City a more attractive environment in which to both live and work. In the future we are likely to see an increase in residential provision although to date this has been around the periphery of the City.

1.1.3. Demographic

The majority of people who work in the City of London mainly work in the finance and business services sectors, however only a relatively small number of people actually live in the City with the majority commuting daily from other areas of London and the surrounding counties.

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

In the City, employment levels fluctuate based upon short term trends in the financial sector, many of which are created by global economic conditions and as such, its success as an office location is substantially influenced by the health of the key global economies. Jobs in the City of London fell at the outset of the credit crisis, but recovered quickly to stand in excess of 400,000 up from a low point of 276,000 in 2009.

Banking, finance and related business services account for almost two thirds of total employment in the City and Canary Wharf, compared to approximately 6% for the UK workforce as a whole. Currently financial and professional jobs account for around 240,000 jobs in the City of London.

With regards to future levels of employment, the London Plan 2011 sets out a strategic plan for London’s development over a 25 year period. It is produced by the Major of London.

The Plan estimates the total number of jobs across London could increase from 4.68m in 2007 to 5.45m in 2031 – a 16.6% increase.

Office based employment may grow by c. 300,000 between 2011 and 2031. This could mean London will require an additional 40m sq ft net of office space by 2031, an increase of over 35% on the existing stock (the equivalent of 2.6 Canary Wharfs). However, these projections may be impacted depending on the outcome of the ongoing negotiations for the UK to leave the European Union. Currently, however, it is estimated that the impact of Brexit on the central London office market is likely to be fairly minimal although this may well depend on the details of the final ‘divorce’ agreement negotiated with Brussels.

1.2. Communications

1.2.1. Roads

The City of London benefits from a good road network with easy access obtainable from the City to the A13, providing access eastwards towards the M25 and Essex, the A11 providing access to the north east of London, the M11 and M25. Various other arterial routes accessed by either the West End or crossing the River Thames to the south, provide access to outer London areas, the M25 and the national motorway network.

There are numerous bus routes located along key local streets which serve the local area linking the City, Midtown and the West End.

1.2.2. Rail / Underground

The extensive central London Underground and over ground train networks are all readily accessible from the property providing links to the remainder of the City of London, the West End, Docklands and to the wider London suburbs and commuter areas both north and south of the River Thames. The table below shows approximate distances from the property to various local stations.

Approx. distance from Station the Property (m) Services Moorgate 50 Underground – Circle, Northern, Metropolitan, Hammersmith and City and over ground services operated by Great Northern to Hertfordshire. Will provide access to Liverpool Street Crossrail station (opening 2019). Liverpool 500 Underground – Central, Circle, Hammersmith & City and Metropolitan Street Lines. Mainline – local and regional commuter Lines serving east London and destinations in the East of England, and the Stansted Express service to Stansted Airport. Crossrail services from 2019. Bank 800 Underground – Central, Northern, Waterloo & City Lines and the Docklands Light Railway providing a link to City Airport.

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

Approx. distance from Station the Property (m) Services Barbican 800 Underground – Circle, Metropolitan, Hammersmith and City Cannon Street 1,000 Underground – Circle and District Lines. Station Mainline – services to south east London. Fenchurch 1,500 Mainline – services to east London and Essex. Street Station

As the table above shows, the property is within easy walking distance of a number of stations providing access to both mainline and underground services.

The northern and eastern sectors of the City in particular are likely to benefit from the proposed Crossrail development. This will allow mainline trains to run across central London via Tottenham Court Road through to Liverpool Street passing via Farringdon. Once complete in 2019, Crossrail will provide connectivity to Heathrow Airport and provide transport across the capital from the Crossrail Station at Liverpool Street Station, the Moorgate entrance of which is approximately 50 metres to the east of the subject property.

The diagram below shows the approximate location of the property in relation to the surrounding stations.

Citypoint

Crossrail (Elizabeth Line)

Crossrail, now named the Elizabeth line, is the most significant infrastructure project in London since the development of the London underground 150 years ago and is currently under construction. It will link key stations across the northern sector of Central London and run from Maidenhead and Heathrow in the West to Shenfield and Abbey Wood in the east. The new railway will cover 118km of track including 21km of new twin-bore rail tunnel across central London.

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

It is one of the most significant infrastructure projects ever undertaken in the UK. It is currently estimated to cost £14.8 billion with funding coming from four key sources; The Department of Transport (£4.55bn), from London businesses via a property rates supplement (c. £4.1bn) and direct contributions from property developers (£0.3bn), a contribution from Transport for London (£2.15bn) and around a third from future ticket sales.

As part of the construction project, eight new stations in central London and Docklands will be constructed. In addition many other stations that form part of the route will be upgraded.

The Elizabeth Line l will, for the first time, produce a direct connection between all of London’s main business centres, linking Heathrow with Paddington, the West End, the City and Canary Wharf. Up to 24 trains per hour will operate in the central section between Paddington and Whitechapel during peak periods. Each train will be around 200m long and able to carry 1,500 passengers. An estimated 200 million people will travel on the line each year.

When the Elizabeth line opens in late 2019, it will increase London's rail-based transport network capacity by 10 per cent and dramatically cut journey times across the city. Through the new transport links and significant over-station developments being delivered, the route will support regeneration across the capital with economic forecasts suggesting the project will add up to £42 billion to the economy. The subject property lies close to Moorgate station which will give access to the Elizabeth Line platforms of Liverpool Street station. It is therefore well placed to benefit from this increases connectivity.

1.2.3. Air

The City of London has excellent links to City, Gatwick, Stansted and Heathrow airports by public transport. The current approximate journey times are as follows:

Approximate Journey Airport Time City 20 minutes Heathrow 43 minutes Gatwick 45 minutes Stansted 50 minutes

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

1.3. Situation

Citypoint is located in EC2, close to the northern border of the postcode with EC1. The EC2 submarket is the traditional core of the City, synonymous with the banking and finance industry, which has traditionally been located in close proximity to the Bank of England. The Bank of England is located approximately 800 metres to the south east of the subject property. The EC1 postcode has historically been more mixed use in nature, with smaller commercial premises sitting alongside residential and institutional uses. However, over the last 20 years the boundaries have been blurred with substantial commercial developments taking place in the edge of core areas, which have successfully attracted both traditional City core occupiers, professional firms as well as the new TMT occupiers. The large scale redevelopment of London Wall with schemes such as Moorgate Exchange, 1 London Wall Place and 2 London Wall Place, have provided pedestrian connectivity with the City core, improving the popularity of the immediate vicinity.

The property is situated on the south side of Ropemaker Street at its junction with Moor Lane. On the north side of Ropemaker Street is Ropemaker Place, 28 Ropemaker Street housing Macquarie Group, and Addleshaw Goddard LLP occupy Milton Gate, on the west side of Moor Lane adjacent to The Heron, a new residential tower block. There are a number of further professional occupiers in the vicinity such as Linklaters LLP in Silk Street and Deutsche Bank are shortly redeveloping 21 Moorfields around the Moorgate entrance to Crossrail as described below. Tenter House, 45 Moorfields (Freshwater Group) forms the south east boundary of the subject property and has just obtained planning consent for a new 18 storey c. 200,000 sq ft office building with ground and first floor retail use. This building occupies part of Citypoint’s basement under a long lease. Redevelopment will create significant disturbance to the subject property, although as far as we are aware, the redevelopment will not impact on the Citypoint basement area in the long term. However once complete, the public realm could be much improved by a joint strategy to increase pedestrian flow from Moorgate through to both buildings’ retail offer.

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

1.3.1. Competing Schemes

The graph below indicates the future City development pipeline by letting status (> 100,000 sq ft), based on an estimated delivery date over 2018 to 2022. It is worth noting that there is a relatively limited pipeline in the coming years, with much of the accommodation already pre-let:

The table below highlights a selection of the above City of London schemes of note which are under construction or at planning stage:

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

Area sq ft Est. PC Address (sq m) Date Comments The Scalpel, 52 Lime Street, EC3 386,312 Q3 2018 • Designed by KFP Architects; (28,336.3) • Completed in Q3 2018; • 35 storey tower building; • Floorplates range between 7,257 sq ft and 14,938 sq ft; • Eight floors totalling 81,300 sq ft let to W.R. Berkley (the building owner) including six mid-level floors and the top two floors; • Floors 1-4 totalling 61,921 sq ft were pre-let to Axis Capital at £66.50 per sq ft on a 17.5 year term with a rent free period of around 30 months; • The 12,089 sq ft 12th floor was pre-let in October 2016 to BPL Global at £72.00 per sq ft on a 15 year term with 30 months’ rent free; • The remaining vacant space totals approximately 230,000 sq ft though circa 73,000 is believed to be under offer. The Bower, 207 Old Street, EC1 320,000 Q3 2018 • Designed by AHMM architects; (29,729) • 320,000 sq ft of commercial and retail space; • The Warehouse - 122,000 sq ft fully let to CBS, Farfetch, Pivotal, Allegis and Stripe following a complete refurbishment of the building took place in 2013, completing in 2015, which retained the building’s period features; • The Studio - let to John Brown Media and completed in 2015; • The Tower - completed in August 2018, provides 171,000 sq ft of offices on 18 floors. Floors 1 to 6 pre-let to WeWork, floors 7 to 9 pre-let to Farfetch. Floors 10 to 17 (88,700 sq ft), range from 9,505 sq ft to 11,331 sq ft and are currently available to let. 70 St Mary Axe, EC3 312,098 Q4 2018 • Currently under construction; (29,025) • Designed by Foggo Associates; • Predominantly office accommodation arranged over second to 20th floor levels with a gallery on the top 21st floor; • Retail accommodation on ground and first floors; • Uniform office floorplates arranged around a central core range from 10,518 to 17,594 sq ft; • The 14th to 21st floors, extending to 100,700 sq ft, have been pre-let to Sidley Austin; • There is currently 211,398 sq ft available.

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

Area sq ft Est. PC Address (sq m) Date Comments 1 Bartholomew, Bartholomew Close, EC1 215,373 Q4 2018 • One Bartholomew offers new efficient office (20,007) space across ground and 11 upper floors, all benefitting from floor to ceiling glazing, views over the new Helical Bar Barts Square mixed use development and views south to St. Paul’s; • The building will complete in October 2018; • The 9th to 11th floors (54,455 sq ft) have been let to The Trade Desk with the lower floors available (160,918 sq ft).

1 Finsbury Avenue, EC2 291,000 Q1 2019 • Complete refurbishment of a British Land (27,035) Broadgate building; • Dual office entrance from Wilson Street and Finsbury Avenue Square, boutique cinema, gym and retail on the ground floor; • Occupational density 1:8 sq m, exposed ceiling with fan coil air conditioning, large central atrium and landscaped terraces with a roof top communal terrace; • 28,955 sq ft available on 6th and 28,911 sq ft on 7th floors; • 68,055 sq ft prelet to Storey (British Land’s flexible office concept) on 1st and second floors. 100 Bishopsgate, EC2 823,000 Q2 2019 • Brookfield development due for completion (76,458) in Q2 2019; • Currently under construction; • Large pre-lets have been agreed with Freshfields, Jefferies and RBC and Paul Hastings LLP have pre-let the 36th and 37th floor. Rents range from £59.50 psf for the lower floors to £78 psf for the top two floors with between 33 and 36 months’ rent free being given. • The building will comprise a 37 floor mixed use building with offices on the upper floors and retail at ground floor; • 4 floors remain available, each of which total circa 20,000 sq ft. 135 Bishopsgate, EC2 333,048 Q2 2019 • Refurbishment of this SOM designed 1988 (30,941) developed Broadgate building planned for completion in Spring 2019. Fletcher Priest are the architects for the refurbishment; • Retail units at street level; • The 2nd to 5th and 11th floors (134,308 sq ft) have been pre-let to TP ICAP at £53.75 for a term of 15 years with 8 months’ rent free. The remaining floors are believed to be under offer to McCann.

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

Area sq ft Est. PC Address (sq m) Date Comments Premier Place, 2-5 Devonshire Square, EC2 231,118 Q3 2019 • Speculative refurbishment of mixed-use (21,472) building constructed in 2002; • Comprises 222,087 sq ft offices and 9,031 sq ft retail; • 0.81 acre virtual island site on the edge of the City core. Circa 250m to the east of Liverpool Street station which will be served by the Elizabeth Line from the end of 2018; • The ground and floors 1-5 (145,000 sq ft) have been pre-let to the traders, Jane Street; • Gartner, the research and advisory firm, has pre-let 60,000 sq ft on floors 6 to 8. 100 Liverpool Street, EC2 528,125 Q4 2019 • British Land speculative scheme; (49,064) • Includes refurbishment and extension of the existing building including retention of the building’s structural frame, construction of new façade, hard and soft landscaping and alterations to facilities associated with the Liverpool Street bus station; • Demolition and enabling works commenced in January 2017; • Large floorplates up to circa 60,000 sq ft; • 160,000 sq ft over floors 3-5 has been pre-let to Sumitomo Mitsui Banking Corporation (SMBC) on a 20 year lease. 22 Bishopsgate, EC2 1,300,000 Q4 2019 • AXA-led consortium tower scheme; (120,773) • Speculative scheme currently under construction; • Provides a large proportion of the consented pipeline for the City of London in 2019; • Designed by PLP Architecture; • Two pre-lets confirmed – Hiscox has pre-let 75,000 sq ft on the 8th, 9th and 10th floors. The lease will be for 19 years but the other details are confidential. AXA Investment Managers have pre-let circa 65,000 sq ft on confidential terms. 120 Moorgate, EC2 133,494 Q4 2019 • Darling Associates designed refurbishment; (12,402) • The existing building will be stripped of its current facade and re-clad, inside existing office space to the upper floors will be refurbished, with gym facilities and a bicycle store added to the basement levels; • On the seventh floor, a roof terrace will benefit from views across the city; • Prelet to WeWork.

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

Area sq ft Est. PC Address (sq m) Date Comments 80 Fenchurch Street, EC3 249,280 Q2 2020 • Cleared site; (23,158) • Planning permission granted; • To provide a mixed-use building with retail at ground floor and offices above; • The upper floors will benefit from large roof terraces; • Seeking pre-lets prior to commencing construction.

One Crown Place, EC2 112,549 Q2 2020 • Designed by architects KPF; (10,456) • Adjacent to Broadgate; • Mixed-use development with office accommodation on first to sixth floors and residential accommodation above. Total office content of scheme is 112,549 sq ft; • Island site; • Large roof terraces to the fifth floor; • Office floorplates of circa 19,000 sq ft.

60 London Wall, EC2 331,280 Q2 2020 • A complete refurbishment and extension (30,777) occupying a prominent 1.3 acre corner site fronting London Wall to the north and Copthall Avenue to the west; • Designed by EPR Architects; • Stripping the building back to the frame and re-coring to provide efficient high quality modern workplace accommodation of 312,090 sq ft with 19,190 sq ft of retail offering at ground floor level. The building terraces back creating sky gardens; • Speculative development. 6-8 Bishopsgate and 150 Leadenhall Street, 600,000 Q2 2021 • Potential development; EC3 (55,740) • Planning permission granted in 2015 but a revised application was submitted in May 2017 for a higher tower scheme. Currently under consideration; • Approval has now been secured for a 50 storey tower providing 570,000 sq ft at 150 Leadenhall Street. An office-led mixed-use building with flexible retail space at ground and mezzanine floor levels, and a public viewing gallery on the 50th floor.

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

Area sq ft Est. PC Address (sq m) Date Comments Leadenhall Triangle, 40 Leadenhall Street, 881,000 Q3 2021 • Planning permission granted; EC3 (81,846.9) • The 881,000 sq ft stepped development varies in height between the seventh and 34th floor levels; • Roof level plant, two basement stores allocated for storage; • Seeking a large pre-let prior to commencing construction.

21 Moorfields, EC2 519,015 Q4 2021 • A new Land Securities mixed use (48,218) development above and around the new Crossrail station entrance arranged as two office buildings configured around a landscaped public square with retail units to three sides; • The 1.9 acre site is located at the western entrance to Liverpool Street Crossrail Station; • The architect is Wilkinson Eyre Architects; • 470,000 sq ft of offices prelet to Deutsche Bank on a 25 year lease. 1 Leadenhall Street, EC3 680,000 Q2 2022 • Planning permission granted in 2017 for a (63,172) new tower with 36 upper floors adjacent to Leadenhall Market; • To provide 28 floors of offices, 30,000 sq ft of retail and a public terrace; • The ground floor will be double height • The developer, Brookfield, has a long lease of the site whilst the City of London Corporation is the freeholder; • The occupational tenant’s lease expired earlier this year. Tenter House, 45 Moorfields, EC2 310,000 TBA • Planning permission granted in Q4 2018 to (28,806) demolish the existing structure and construct a new building with 18 upper floors; • To provide 17 floors of office, with ground and first floor retail.

1.3.2. Conclusion

Citypoint is located on the northern edge of the EC2 postcode, which has traditionally been the central core of the City of London office market. Financial occupiers have historically occupied the EC2 postcode with the insurance industry in the EC3 postcode. The EC1 postcode, one block to the north, has since the development of the dotcom industries, hosted more TMT

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018 sector tenants. However, over recent years, as a result of substantial developments out of the traditional core, there has been a blurring of historic demarcations. The property being on the border of the EC2 and EC1 postcodes means it is therefore attractive to both financial and TMT sector occupiers who are increasingly taking space in the City of London. It also appeals to professional services e.g. lawyers, who frequently seek more economic accommodation than that available in the absolute prime core. The substantial development in the immediate area has brought further focus on the micro location and should strengthen the area over time, particularly with the property being located in close proximity to the Moorgate entrance of the Liverpool Street Crossrail station, due to open in 2019. However, the proposed tower developments are likely to provide additional competition for tenants seeking space in the vicinity in the short to mid-term, although some schemes where construction has not yet started, are unlikely to commence without significant pre-lets. Citypoint was for a number of years, one of only a handful of tower buildings in the City of London, but now must compete with a growing number both north and south of the River Thames.

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

2. Description

2.1. Site

2.1.1. Characteristics

The site is broadly level and irregular in shape. It fronts Ropemaker Street for the length of the northern boundary and Moor Lane to the west. The southern boundary steps in from New Union Street and the now disused City of London Highwalk and the eastern boundary wraps around Moorfields House, which fronts Moorfields. 21 Moorfields is a large site immediately to the south of New Union Street and Tenter House, which has been cleared, and is hosting Crossrail works, pending redevelopment after completion of the station box.

The site extends to 0.949 hectares (2.344 acres).

The property is shown for identification purposes on the Ordnance Survey extract below and attached at Appendix 3, the extent of the site being outlined in red in accordance with our understanding of the site boundaries. Your solicitors should verify that we have correctly identified the extent of the site.

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

2.1.2. Access

The main pedestrian access is from a pedestrianised plaza off Ropemaker Street, which is an adopted highway. There are also pedestrian access points from Moor Lane and Moorfields. Access to the car park and the loading bay area is via New Union Street from Moor Lane. The maximum height clearance is 3.5m. The entrance is controlled by manned security.

2.2. Property

2.2.1. General

The property comprises an office tower on four basement levels, ground floor (referred to as level 1) and 34 upper floors (no level 13) with retail units located on level 1 and a health centre and nightclub are on lower ground floor level. The building was purpose-built in 1967, for what is now BP Plc, and adapted and rebuilt to increase height and floorplate size in 1998-2000 including re-cladding the main tower building, partial demolition and re-building of the South Wing and podium building, partial demolition and re-building of public walkways and re-modelling of the external public square and external spaces. The building has an overall height of approximately 120 metres, making it at the time of construction in 2000, the third tallest office building in the City of London. The building now extends to a total net internal area of 708,954 sq ft. Immediately to the east of the building is a public plaza that is within the demise of the property.

The 1967 design was by F. Milton Cashmore & Partners, and the 1990s purchase and rebuild was undertaken by Wates City of London, and Sheppard Robson International Architects.

The property is arranged as a podium base which extends up to level 8 with the tower floors extending up from this. Feature ‘wings’ extend out from the tower from level 14 down to the roof of the podium and act as roofs over two atriums that run down through the podium levels to ground. At level 1 (ground floor) there are four receptions. Two are located on the eastern elevation of the building, fronting the plaza and these provide access to the podium floors, with one currently demised to Simmons & Simmons for its own use. A third reception is located on the western elevation and is also demised to Simmons & Simmons. Within each of these receptions there are banks of passenger lifts serving levels 1 to 8 (four lifts in each of the south eastern and western cores and three in the north eastern core).

The fourth reception is located at the base of the tower and is accessed from the plaza under a walkway passing beneath the podium. This gives access to the tower floors only. Within the tower there are four banks of lifts giving access as follows:

• 4 lifts extending to levels 9 to 17 • 4 lifts extending to levels 17 to 24 • 4 lifts extending to levels 25 to 31 • 3 lifts extending to levels 32 to 35

Level 36 is accessed via staircase only.

A covered walkway runs along the western elevation of the tower, between the tower section and the podium and a number of the retail units are located within this ‘street’. This runs to the southern end of the building and onto the plaza.

Internally the office accommodation extends from level 1 to level 36 and is generally finished to a Grade A standard, with the tenants having fitted out the space to their own specification. The retail units are also finished in the tenants’ styles.

Car parking, shower facilities and storage are provided at basement level 1. Originally there were 99 car spaces but the borrower has converted 10 for use as bicycle parking, leaving 89. The car parking and the building’s loading bay are accessed from a ramp leading from the southern side of the property, off New Union Street.

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

North Easterly View Westerly View

2.3. Construction

2.3.1. Structure and Elevations

Structure and Foundations: The building is likely to be on piled foundations, with a central core structure and perimeter reinforced concrete columns on a 5.18m grid. This original structure has been substantially retained and reused. The floorplate was extended with the introduction of new steelwork supports, which bore the extended floorplate of lightweight reinforced concrete. Finish to Elevations: The external facades consist mainly of aluminium-framed glazing, and bespoke aluminium cladding, both perforated and non-perforated. The predominant form of cladding to the full height of the property consists of a high quality fully glazed unitised curtain walling system designed and constructed by specialist contractor Permasteelisa. This curtain walling system consists of nominally 1m wide storey height aluminium framed unitised panels supporting double glazed vision units. The unitised panels are arranged side by side in five unit wide bay widths between feature projecting aerofoil shaped metal panel clad columns. At basement levels walls are primarily of solid mass concrete or brick/blockwork. Windows: The glazing frames of the windows are also constructed of bespoke aluminium cladding and form a ‘fin’ detail internally. Roof: The roof to the tower is inverted, and comprises asphalt, insulation and precast concrete paving over a concrete slab. The galleria have faceted aluminium framed single glazed roofs which form a connection between the east and west extensions and the tower, and result in the 12-storey galleria covered walkways. The distinctive roofline is formed of aluminium ‘eyebrows’ fixed to brackets at high level.

2.3.2. Floors

Construction: The floor structures throughout are reinforced concrete slabs. The ground floor slab is tiled, but upper floors have a concrete sub-floor, topped by raised access floors. Layout / Shape: The tower office floors are broadly rectangular in shape with a convex curve to the southern elevation, originally designed to reflect the footprint of an oil tanker due to its petrochemical industry connections. The service cores run north south through the centre of the building and the perimeter of each floor is divided by window fins. The lower floors

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

widen to include the galleria floors from level 12 downwards and expand gradually to the maximum area as shown below. The retail unit 3 is a two storey unit effectively located on level 1 and mezzanine level of the adjoining building Tenter House, which we understand has a flying freehold above it. Sub division: The building is not heavily sub-divided as most upper floors are let to office tenants as a whole floor. Level 1 and lower ground floors however are heavily subdivided into retail and storage areas.

Typical Upper Floor layout Third Floor layout

Level 1 layout Schematic southern elevation

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

2.3.3. Specification

General Grade: The building provides grade A offices. Ceiling height The typical floor-to-ceiling height within the offices is 2.55m, although there are exceptions to this. Some floors have double-height areas, as a result of tenant alteration of the floorplate. Suspended ceiling and The main reception area has curved, suspended feature ceilings, assumed to be plastered lighting: and painted timber. Passenger lift lobbies have Gyproc Mineral Fibre plasterboard or proprietary demountable ceiling, and emulsion paint decoration. The ceilings to the loading bay, below ground storage and plant areas are of fairfaced concrete. The car park has a painted soffit. Above ground toilets, fire-fighting and goods lift lobbies have Gyproc M/F suspended plasterboard ceilings system or similar with emulsion paint decoration. The tenanted office areas have individually styled, largely suspended metal tile ceilings. Lighting is by a wide variety of sources including recessed modular CAT2, T5 and LED luminaires. Heating and ventilation Ceiling mounted fan coil units provide heating and cooling to the office areas, reception, systems: lift lobbies and the like. Underfloor heating is provided in the reception and fan coil units and/or radiators serve the back of house areas. The systems are supported by large but conventional boiler and chiller plant. Some of the tenants have installed packaged cooling systems for their IT rooms and a number of small scale systems are provided for building critical plant rooms. The fan coil units are by a number of makers but are of the 4-pipe style. For the majority of the tenant demises and the common parts filtered and heated or chilled air is delivered through ceiling mounted linear, rectangular or swirl diffusers. Office air is re-circulated back to the ceiling void plenums via the luminaires and dummy diffusers. Three Hartley and Sugden 6MW gas fired steel shell boilers in the B3 plant room generate medium temperature hot water (MTHW) for heating. A combined stainless steel flue rises to the roof. The MTHW is circulated to a cascade of circuits that are separated by plate heat exchangers to avoid excessive system pressures due to the height of the building. The building also provides LTHW to two office buildings that are adjacent to Citypoint. Three 1MW Hartley & Sugden gas fires steel shell boilers in a dedicated plant room generate LTHW that is circulated by shunt pumps to a low loss header. Discrete pump sets are provided that supply secondary LTHW to Moorfield House and Tenter House via tunnels. Stainless steel flues from the three boilers rise via the Costa Coffee concession in the courtyard above the boiler room and terminate above the roof of that unit. Lifts: 27 Passenger Lifts (PL 13 & PL16 also double as firefighting lifts), 3 further firefighting lifts and 3 goods lifts all installed in 1999/2000. Decorative finishes: Internal decorations in the landlord areas consist of white painted plasterboard and stone floor tiling. There are some feature box lighting installations in the reception. The decorations within the tenanted areas vary, but, we understand correspond with the Occupier Fit-Out Guide. Common parts: The main reception floor is screeded with a matte stone tile finish. Toilet floors are a ceramic tile finish. The office (passenger) lift lobbies are tiled with a polished stone, with similar skirting. Retail fit out: The retail units have all been fitted out in the tenants’ corporate style.

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

Raised floors: The raised flooring is a mixture of 600x600mm grid loadbearing chipboard and Concore access floor panels set on adjustable steel pedestals with a c.100-150mm void. Service runs for data and small power are located within the void for distribution where required.

2.3.4. Services

Utilities: Mains water, gas and electricity are connected to the property, and we understand that the property drains into the public sewer. Four standby generators, located at level B3, provide power to life safety systems and essential services in a mains failure condition. WC provision: Male and female facilities are provided on each floor. Showers and bicycle The building has bicycle racks, tenant lockers and male and female shower facilities on storage: Basement 1 level, accessed by the main vehicle ramp from street level. Car spaces The building originally had 99 marked car spaces but this has been reduced by the bicycle racks to 89 spaces. Electricity substations: There is a main substation at level B0 and the distribution system comprises thirteen packed sub-stations located at levels B3, B1, L14 and L36 and comprise four sub-stations that have dual HV supplies and five substations with a single HV supply. Other: The building is protected by sprinklers throughout. Wet risers are provided in the firefighting lobbies. Smoke handling systems are provided to support the firefighting cores and for the basement plant/storage areas. Gaseous suppression systems are provided for critical electrical rooms. Foam injection facilities are provided for the oil tank room.

2.3.5. External Areas

Surface areas: Citypoint Plaza is the open square to the east of the building, and is a ‘Primary Civic Space’ as designated by the City of London. It is used as an amenity space by staff of the surrounding buildings, and for occasional markets/events. There are four ‘pods’ within the plaza to the east of the building. Three function as exit points for the escape stairs from the basement, and one functions as both an air shaft for basement ventilation and a Costa coffee kiosk. A further kiosk was used as a newsagent but is now Landlord’s storage. We understand that part of Citypoint’s basement is let to the owner of Tenter House and this is accessed via a ramp leading from Moorfields.

2.3.6. Commentary

The building effectively dates from 2000 when it was largely rebuilt. At that time good quality design and fittings were used which have stood the test of time well. It competes well with its peers of a similar age, however the current generation of new tower buildings will outperform it in terms of efficiency of occupation. The side galleria create attractive covered level 1 atria bases, however this is at the cost of the outlook of levels nine to 14.

We have attached additional photographs in Appendix 4.

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

2.4. Accommodation

We have been provided with floor areas by your borrower and have assumed that these are net in accordance with the RICS’ Code of Measuring Practice. As agreed we have relied upon these floor areas for the purposes of this valuation exercise. Your borrower has supplied Plowman Craven Area Reports dated 13 May 2016 for the retail units and Level 36 to Basement 2, and updates following refurbishment of offices: Level 15 dated 23 May 2018; Level 16 dated 4 December 2017; and Levels 17 and 18 dated 6 March 2018. The normal ground floor level is labelled as level 1, there is no level 13 for cultural reasons and the basement level is above the lower ground floor level.

RICS property measurement (incorporating International Property Measurement Standards) 1st Edition, May 2015, requires us to report IPMS measurements in the report for this property. You have not instructed us to measure the property and as IPMS areas are not available to us we have relied on Net Internal Areas (NIA) measured on the basis of the RICS Code of Measuring Practice 6th Edition 2007, as follows:

Basis: NIA Level Description Sq m Sq ft Office Occupiers: 36 Offices/plant 246.9 2,658 35 Offices 1,207.0 12,992 34 Offices 1,232.5 13,267 33 Offices 1,196.5 12,879 32 Offices 1,211.8 13,044 31 Offices 1,210.0 13,024 Part 30 Offices 611.2 6,579 Part 30 Offices 560.9 6,037 29 Offices 1,212.5 13,051 28 Offices 1,206.1 12,982 27 Offices 1,208.7 13,010 26 Offices 1,166.5 12,556 25 Offices 1,167.4 12,566 24 Offices 1,186.5 12,771 23 Offices 1,191.8 12,828 22 Offices 1,189.1 12,800 21 Offices 1,187.7 12,784 20 Offices 1,185.0 12,755 19 Offices 1,143.8 12,312 18 Offices 1,143.2 12,305 17 Offices 1,108.0 11,926 16 North East Offices 637.2 6,859 16 South West Offices 494.9 5,327 15 West Offices 748.8 8,060 15 East Offices 396.1 4,264

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

Basis: NIA Level Description Sq m Sq ft 14 Offices/plant 165.7 1,784 12 Offices 1,380.5 14,860 11 Offices 1,486.5 16,001 10 Offices 1,624.5 17,486 9 Offices 1,648.8 17,748 8 Offices/plant 2,225.0 23,950 7 Offices 3,758.2 40,453 6 Offices 3,837.9 41,311 5 Offices 4,001.3 43,070 4 Offices 3,990.4 42,953 4 Access corridor 52.6 566 3 Offices 3,924.2 42,240 2 Offices 1,724.3 18,560 1 Offices 378.1 4,070* 1 Reception 118.6 1,277 B Storage 439.8 4,734 B Ancillary 1,239.4 13,341 LG Storage 86.8 934 LG Ancillary 677.4 7,291 Subtotal 57,810.1 622,265 Retail Occupiers: Leisure Centre Lower ground floor leisure 3,008.9 32,388 Level 1 entrance 8.2 88 Unit 1A Level 1 retail 267.0 2,874 Lower ground storage 141.9 1,527 Unit 1B Level 1 retail 144.3 1,553 RB0.60 Ground floor storage 4.0 432 Unit 2A Level 1 retail 445.4 4,794 Unit 2B & 2C Level 1 retail 166.5 1,792 Lower ground ancillary 323.6 3,483 Unit 3 Level 1 retail mezz 139.1 1,497 Level 1 retail 81.8 880 Unit 4 Level 1 retail mezz 28.3 305 Level 1 retail 27.0 291 Unit 5 Level 1 retail 44.6 480 Unit 6 Level 1 retail mezz 34.7 374

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

Basis: NIA Level Description Sq m Sq ft Level 1 retail 92.3 994 Unit 7 Level 1 retail 17.6 189 Lower ground ancillary 1,068.9 11,506 Unit 8 Level 1 retail 117.6 1,266 RB0.96 Ground floor storage 17.6 189 News Kiosk 1 Plaza Retail 25.8 278 Coffee Kiosk RK1 Plaza Retail 8.1 87 Subtotal 6,249.3 67,267 Basement storage: RLGO.16 and RGL.14 Storage 48.7 524 B1.94 Storage 16.9 182 B 1.97 Storage 39.0 420 RB1.79 Storage 10.2 110 RB1.05 Storage 82.5 888 RB1.67B Storage 85.3 918 RB1.81 Storage 11.0 118 RB1.85 Storage 8.5 92 RB1.86 Storage 8.6 93 RB1 .16 Storage 53.5 576 RB1.67A Storage 170.3 1,833 RB1.89 Storage 37.3 401 RB2.02 Storage 135.5 1,459 RB 2.11 Storage 41.1 442 Part RB2.30 Storage 104.3 1,123 Part RB2.30 Storage 104.3 1,123 Part RB2.30 Storage 104.3 1,123 RB2.54A Storage 142.1 1,530 RB 2.54B Storage 134.4 1,447 RB2.54C Storage 198.3 2,134 RB 2.53 Storage 39.1 421 RB2.56 Storage 87.7 944 RB2.57 Storage 105.0 1,130 RB2.69 Storage 36.3 391 Subtotal 1,804.2 19,422 Total Area 65,863.6 708,954* *Excludes BMA of 797 sq ft.

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

2.5. State of Repair

2.5.1. General

We were not instructed to undertake any structural surveys, tests for services, or arrange for any investigations to be carried out to determine whether any deleterious materials have been used in the construction of the subject property or subsequent additions.

Our valuation has been undertaken on the basis that the property is in good structural repair and condition and contains no deleterious materials and that the services function satisfactorily. From our inspection for valuation purposes we would comment that this was the case.

We have been provided with a copy of the Building Inspection report undertaken by Watts and dated 31 October 2018 and the Executive Summary is as follows:

“A number of isolated areas of water penetration were noted at below ground level. Whilst these are not considered to be of concern to the fabric of the building, their presence within escape stairs and fire escape routes creates more immediate potential Health & Safety risks to building occupants, hence these need to be addressed in the relatively near future.

The traffic performance of the Tower Lifts waiting interval time is marginally higher than the levels defined in CIBSE / BCO guidelines. At the current time this is not an issue due to the low population density. However, if the population density of the Main Tower increases significantly some long waiting times would be experienced at peak periods. The lifts are large enough for wheelchair access but do not have all the features for full compliance for all disabilities. This should be corrected at the time of the next refurbishment. In the next 3 years a refurbishment programme will be required lasting approximately 7 years.

The external cladding systems are cleaned and maintained to a high standard being inspected and repaired on a frequent and regular basis as necessary. 7 glazed units need to be replaced and we understand that this work is in hand. No significant works are envisaged within the short –medium term.

Although the mechanical, electrical and lift services are now 18 years old, the building operates 24/7 and the services do also, such that the rate of wear and tear is accelerated. The tenants are also demanding and the building management team have chosen to aim to achieve 100% availability. As a result, considerable expenditure is likely to be required over the next 10 years, as below. 4 of the 6 installed chillers have been replaced with a further two to go over the next two years.

The mechanical services provision has been designed and installed to a good standard. The systems are very large and complex with more than 35 heating/cooling circuits and 3 separate BMS systems but should be relatively simple to operate and maintain. The building management team have a detailed and expansive planned preventative maintenance programme that is updated each time works are undertaken.

The building sprinklers are certified to provide Ordinary Hazard Group III protection with life safety enhancements. The original life safety sprinkler heads installed in the common parts and the office demises had a design fault and have all been replaced. All works from the previous recommendation is now completed.

The electrical services provision has also been designed and installed to a good standard. Lighting in the common parts has been refurbished and the main plant/equipment is subject to rigorous testing and maintenance. Major expenditure is planned and orders in the process of being placed for replacement of the fire alarm system, BMS system and VAPA racks. The security/CCTV was recently replaced in 2018 and works are now complete. We anticipate no other major works are, in our opinion, likely to be required.

Each of the tenants is responsible for maintenance of the category A and category B services installations within their demises. Maintenance and refurbishment costs in the next 10 years are likely to be high for a building of this scale, but whether the tenants shoulder their responsibilities fully is without the building operator’s control. We understand that

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

the operator does not routinely refurbish the office demises at end of lease, but we note that tenant failures have resulted in the operator funding refurbishment of a number of floors to category A standards.

Planned preventative maintenance looks to be being undertaken to a good standard. A number of minor and superficial defects were noted but all the plant and equipment is operational. Services maintenance documentation is available at the premises in a combination of paper and electronic formats. The records are generally in order and up to date.

An asbestos re-inspection report is prepared on an annual basis and the most current is dated 26 April 2018. It confirms the presence of Very Low Risk Asbestos Containing Materials in 28 locations to wet riser pipework in the three main cores. This is for Information only, as the asbestos situation in the building appears to be being well managed and regularly updated, with the subject gaskets being replaced as and when the wet riser pipework is renewed.

A Fire Risk Assessment (FRA) review document was provided for review by the building management team, dated February 2018. The document is understood to be updated on an annual basis, though it should be noted that it relates to the landlord controlled common areas only. With respect to the landlord controlled common parts, the FRA identified a number of medium risk (short term) items that required resolution; we have been advised by the site management team that these have been addressed. It should be noted that the tenants must be reminded of their statutory obligations to commission their own FRAs with respect to their own demises, with the managing agents coordinating the process.

Following assessment of the information gathered within the Environmental Audit at Appendix 5, it is our opinion that overall a low risk exists as a liability for the owner of the site for a continuation of existing usage.

The Environment Agency (EA) classifies the site to be located in an area that has a ‘very low’ chance of flooding each year. Very low means that each year, this area has a chance of flooding of less than 1 in 1000 (0.1%). This takes into account the effect of any flood defences that may be in this area.

In our view, the likely value of repair works needed to place the building in repair will be in the region of £6.12million over the next three years and a total of £14.039 million over the next ten years.

We understand from the building management team that routine repair costs are recoverable under the service charge provisions of the individual occupational leases. We are not aware of any reason why this should not remain the case going forward”.

For a building of this age and nature of construction it appears to have been well built initially and subsequently well maintained. Your borrower has informed us that there are no outstanding repairs due, beyond routine maintenance that is recoverable through the service charge.

2.5.2. Deleterious Materials

We consider it unlikely that there are deleterious materials within the fabric of the building.

2.5.3. Obsolescence and Life Expectancy

Assuming normal routine maintenance and repair, as well as reasonable and prudent management of the property, we consider the life expectancy is in excess of 20 years.

2.5.4. Equality Act 2010

The Building Inspection Report did not highlight any issues in connection with the Equality Act 2010, which replaced the Disability Discrimination Act 1995.

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

2.5.5. Costs of Repairs

The October 2018 Building Inspection report highlighted the following items of repair:

Description of repair required Within 1 1 – 3 years 4 – 10 Cost Responsibility year years Structure and fabric £229,000 £145,000 £95,000 £469,000 Landlord Mechanical and electrical services £1,450,000 £4,295,000 £7,825,000 £13,750,000 Landlord Total £14,039,000 Watts commented that this should be largely recoverable through the service charge and your borrower has confirmed that there are no significant items of non-recoverable capital expenditure that they are aware of. They further commented that: “We do strongly advise, however, that you consider in full the comments and conclusions within the report on the building’s Mechanical and Electrical services installations, at Appendix BIR 4 in particular. This confirms that whilst most plant dates from the extensive refurbishment and remodelling of the property that took place in 2000, it has had considerably more use and wear and tear than would normally be expected of 18 year old equipment because it is being run, to varying degrees, effectively 24 hours a day, 7 days a week.”

We have not made any deductions in our valuation for repair items, other than refurbishment of accommodation on expiry of leases.

2.5.6. General Commentary

The building is in a reasonable state of repair and condition considering its age, use and method of construction. The building services are now approximately 18 years old and require upgrading and replacement over the next few years. We understand from your borrower that there is planned maintenance over the next few years to manage these costs through the service charge. You should monitor the PPM schedule as it is critical with older buildings that the works are undertaken to avoid untimely obsolescence.

2.6. Environmental Considerations

2.6.1. Contamination

An updated Phase 1 audit was carried out as part of the Building Inspection Report dated October 2018 carried out by Watts. Overall, a low risk was identified as a liability for the owner of the site for a continuation of the existing use. No further investigation was considered necessary.

We recommend that your legal advisors obtain formal confirmation from the current owner and occupiers that no notices have been served on them by the Local Authority.

We have been instructed not to make any investigations, in relation to the presence or potential presence of contamination in land or buildings, and to assume that if investigations were made to an appropriate extent then nothing would be discovered sufficient to affect value. We have not carried out any investigation into past uses, either of the properties or any adjacent land, to establish whether there is any potential for contamination from such uses or sites, and have therefore assumed that none exists. In practice, purchasers in the property market do require knowledge about contamination. A prudent purchaser of this property would be likely to require appropriate investigations to be made to assess any risk before completing a transaction. Should it be established that contamination does exist, this might reduce the value now reported.

No indications of past or present contaminative land uses were noted during the inspection. Our inspection was only of a limited visual nature and we cannot give any assurances that previous uses on the site or in the surrounding areas have not contaminated subsoils or ground waters. In the event of contamination being discovered, further specialist advice should be obtained. You are advised to ensure that your legal adviser takes up the usual enquiries on your behalf, in respect of possible contamination issues, prior to entering a commitment to finance.

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

2.6.2. Asbestos

The use of asbestos containing materials was banned in the United Kingdom in November 1999. Therefore, buildings constructed after this date will not contain asbestos. However, buildings constructed prior to this may contain asbestos. All commercial buildings that contain asbestos are required to have an Asbestos Management Plan.

The October 2018 Building Inspection Report prepared by Watts stated that:

“An asbestos re-inspection report is prepared on an annual basis and the most current is dated 26 April 2018. It confirms the presence of Very Low Risk Asbestos Containing Materials in 28 locations to wet riser pipework in the three main cores. This is for Information only, as the asbestos situation in the building appears to be being well managed and regularly updated, with the subject gaskets being replaced as and when the wet riser pipework is renewed.”

We have not seen a copy of this document. We recommend that your solicitors investigate the existence of any more recent Asbestos Management Plans and your building surveyors review the document, as the presence of asbestos in adverse circumstances may affect the valuation figures reported below.

2.6.3. Ground Conditions

We have made the assumption that ground conditions are suitable for the current buildings and structures or any re-development.

Since our normal enquiries and inspections did not suggest that there are likely to be archaeological remains present in or on the property, we have assumed that no abnormal constraints or costs would be imposed on any future development at the property by the need to investigate or preserve historic features.

2.6.4. Flood Risk

The October 2018 Building Inspection Report by Watts comments that:

“The Environment Agency (EA) classifies the site to be located in an area that has a ‘very low’ chance of flooding each year. Very low means that each year, this area has a chance of flooding of less than 1 in 1000 (0.1%). This takes into account the effect of any flood defences that may be in this area.

Please note that the above risk classification provided by the Environment Agency applies to flooding from rivers and sea. The risk of flooding from groundwater and surface water (rainwater accumulation) is not considered.”

Consequently we do not consider the risk of flooding to adversely affect the value of the property.

2.7. Sustainability Considerations

2.7.1. Energy Performance

Under the Energy Act 2011 Energy Performance Certificates (EPCs) are required when any building is sold, rented out, constructed and for major refurbishment projects. EPCs give information on a building’s energy efficiency in a sliding scale from “A” (very efficient) to “G” (least efficient). EPCs are essentially required for privately occupied buildings and are the landlord’s responsibility. Display Energy Certificates (DECs) are required for all buildings over 1,000 sq m essentially where public authorities occupy more than 1,000 sq m in a building. These, however, are the tenant’s responsibility.

We have been provided with an EPC for the property which confirms it has a rating of D(77) compared to a benchmark of B(39) for new build properties and E(105) for existing stock.

As a result of the Energy Efficiency Regulations 2015, the Minimum Energy Efficiency Standards (MEES) come into effect on 1st April 2018 for new leases and lease renewals / extensions and from 1st April 2023 for all existing leases. The standards make it unlawful for properties with F or G Energy Performance Certificates (EPC) to be let, without implementing cost-effective

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018 energy efficiency improvements or fulfilling an exemption criterion. With a rating of D, the property will not be affected by the current benchmarks but we draw your attention to the comments in Section 2.7.2 below.

2.7.2. Sustainability Commentary

The building performs adequately bearing in mind its age, and the EPC rating of D means it is above the current minimum standards. However, sustainability issues are becoming increasingly important to tenants in their decision making processes so it is vital that the property is maintained and enhanced (where economically viable) to provide the highest possible sustainability credentials. This would involve ensuring that the mechanical and electrical services are routinely maintained and replaced where necessary to avoid unnecessary obsolescence. By doing this the property will be as best placed as possible to complete against more modern buildings which will have improved environmental credentials and will also be protected against future changes to the legislation which could tighten the standards.

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

3. Legal

3.1. Title Review

We have been provided with a draft Certificate of Title (CoT), undated, prepared by Mischon de Reya LLP.

3.1.1. Tenure

The CoT confirms that the property is Freehold with two Long Leasehold interests created under the Freehold interest. We understand that these interests are all in the control of the Borrower.

The brief details are:

Freehold Interest

Held by Wates CP 1 and Wates CP 2 (as trustees of land for and on behalf of Wates CP)

Headlease

250 years from 24 November 2000 to 23 November 2250. Peppercorn rent.

Landlord – Wates CP 1 and Wates CP 2 (as trustees of land for and on behalf of Wates CP)

Tenant – Dreamclose

Underlease

250 years (less 3 days) from 24 November to 20 November 2250. The rent is defined as 41% of all revenues derived from the sub-underleases, agreements for underlease, licences or other arrangements of whatever description granted in authorising use, possession, occupation or enjoyment of the whole or any part of the property.

Landlord – Dreamclose

Tenant - Wavegrange

The CoT gives details of various trust arrangements. Your legal advisors should confirm that your security is over all necessary interests and that your borrower is the beneficial owner of the property and receives all income from the occupational leases. They should also confirm that that there are no financial implications in the holding structure which would impact on the value of the property.

For the avoidance of doubt, our valuation is on the assumption that the borrower holds the freehold, headlease and underlease interests and receives all income from the occupational tenants, and the long lease interests could be collapsed with no financial implications.

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

3.1.2. Title No.

The CoT confirms that the three interests in the property are held under the following title numbers.

Freehold NGL745546

Headlease NGL794089

Underlease NGL794088

3.1.3. Demise

An extract from the freehold title plan is shown below.

3.1.4. Rights and Encumbrances

The CoT highlights numerous rights and encumbrances affecting the property, which is to be expected for a building in a densely developed area such as this. From our reading of the Certificate, we do not consider that these impact adversely on the current value of the property. We refer you to the CoT for full details of the rights and encumbrances but highlight below some of the most notable.

New Union Street

■ A right of way exists over the eastern half of New Union Street (which lies within the demise of Tenter House) for the owner and tenants of Citypoint. There are reciprocal rights granted to Tenter House to pass over the western end of New Union Street (which lies within the demise of the subject property) for the purpose of obtaining access from and to Moor Lane.

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

Transfer of Land to Tenter House

■ The area shown hatched brown on the title plan was sold out of the freehold title to the property by a transfer dated 10 March 2000. This now forms the western part of Tenter House and is registered under title number NGL797687. The Certificate refers to this as the ‘Excluded Land’. Within this Excluded Land, the subject property extends over the ground floor and mezzanine levels and comprises retail unit 3, currently let to Pret a Manger. We understand from the borrower that the basement under this space is also within the Citypoint title. Tenter House then oversails the Pret unit. There are a number of rights noted in the Certificate including the right of support from the Excluded Land and the right to enter the Excluded Land in order to carry out repairs. The Certificate also states:

‘The transferee (and the persons deriving title under it) covenanted with the transferor (and its successors in title, the owners and occupiers for the time being of the retained property) not, without the transferor's consent, to construct any building or other structure on the Excluded Land above a specified height, being the height shown on Plan 952/TMD/02 attached at Plan 7B. The consent of the transferor shall not be withheld or delayed if the building or structure would not:

(a) reduce the investment value of the Freehold land otherwise than to an immaterial extent; and

(b) be such as likely to result in an injunction being granted to prevent its construction by reason of interference with the access of light.

We have no further information regarding Plan TP1 and cannot confirm or clarify the permitted height as shown on Plan TP1of any structure on the Excluded Land.

The transfer does not deal with insurance and maintenance obligations in relation to the Excluded Land and the retained land.’

■ This demise, above the Pret unit, also forms part of a lease granted to the owner of Tenter House for 200 years from 1959 and which we summarise in Section 3.2.1 below. It appears that subsequent to the lease, the land was transferred. However, it is not completely clear from the CoT and your solicitors should confirm this.

■ We do not believe that the above would adversely impact on the current value of the property but with Tenter House due to be redeveloped, you should confirm with your borrower that this will have no impact on the current use of the Pret unit and that there will be no adverse impact on the subject property, with appropriate reciprocal agreements put in place as required.

Hot Water Supply

Under two separate Deeds of Covenant, the subject property is required to supply hot water to Moorfields House and Tenter House until 15 December 2058 and 24 December 2058 respectively. Theses supplies are paid for. With regard to Moorfields House, the CoT makes the following comment:

‘From the documentation we have seen, it appears that there may have been no direct written contractual relationship or chain of assignments and indemnity covenants in favour of the Former BNPP Trustees by the current consumer at Moorfields House. Therefore the benefit of the covenants by the consumer may not have been transferred or vested in the Trust which includes the right to recover payment for the supply. Accordingly there is a risk that the owner of the Property may have to provide hot water to Moorfields House but have no right of recovery for the costs. The Company has told us that the supply is currently ongoing with costs invoiced monthly in arrears to 'Red Cross Moorfield House', and that in general payment is received within a reasonable timescale. The Company has confirmed that the costs charged during 2016 for supplying the service to Moorfields House were £12,489.54. This included the costs of electricity, gas, and maintenance. The Company has confirmed that these supplies are usually made from October to April each year.’

A similar comment is made regarding Tenter House:

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

‘From the documentation we have seen, it appears that there may have been no direct contractual relationship or chain of assignments and indemnity in favour of the Trust by the current consumer at Tenter House. Therefore the benefit of the covenants of the consumer may not have been transferred or vested in the Trust which includes the right to recover payment of the supply. Accordingly there is a risk that the owner of the Property may have to provide hot water to Tenter House but have no right of recovery for the costs. The Company has confirmed that in practice the supply is ongoing and costs are invoiced monthly in arrears to Metropolitan Properties (City) Limited. The Company has confirmed that payment is received in a reasonable timescale. The Company has confirmed that the costs charged during 2016 for supplying the service to Tenter House were £23,532.10. This included the costs of electricity, gas, and maintenance. The Company has confirmed that these supplies are usually made from October to April each year.’

Although the CoT highlights the risk that the costs could be non-recoverable, given that the supply is ongoing and being paid for, this would seem a low risk and we do not consider that this impacts adversely on the current value of the property.

Open Space Agreement

Under an agreement with the City of London Corporation dated 22 May 1962 there was a requirement for the provision of open space with an area, or aggregate areas, of at least 36,000 sq ft on the Property in accordance with such conditions as may be imposed by the future planning permission(s) granted in connection with any such redevelopment, such open space to be in such position as may be agreed between the Corporation and the owners for the time being of the "specified area" and the Moorgate area or in default of such agreement as shall be fixed by the Corporation and so that the public shall be permitted to have access to such open space.

Various conditions were set down for the use of the open space.

The CoT states:

‘A Supplemental Agreement, dated 8 November 1999, was entered into by the Corporation and Wates CP in respect of the open spaces in the vicinity of the Building (the Supplemental Agreement). The Supplemental Agreement provides for the reconfiguring of the open spaces as set out in the 1962 Agreement. Under the Supplemental Agreement, the Corporation also granted approval to the erection of planters and vents within the open spaces. The Supplemental Agreement provided that the reconfigured open spaces plan is to be substituted for and shall replace the original open spaces plan attached to the 1962 Agreement (Plan 12). The Supplemental Deed was substituted by the S106 Agreement which terminated the provisions of the Supplemental Deed (see Schedule 3 disclosure 17.1). [The Company has confirmed that the plaza area at the Property is consistent with the Reconfigured Open Space Plan as attached to the S106 Agreement (Plan 13)] [MdR Note – Company confirmation awaited.]’

Pedestrian Walkways

Under the 1962 agreement with the Corporation the owner of the subject property has various obligations concerning the provision of upper level pedestrian walkways. The freeholder was required to construct certain walkways and, at its, own expense, at all times support the pedestrian ways and accesses and maintain the same, including the guard rails and drainage arrangements. The CoT states:

‘The Company has told us that one of the upper level pedestrian ways has been removed, and the other one, which abuts the Building, is closed and due to be removed as part of the redevelopment of 21 Moorfields. So far as the Company is aware, these removals and closures have been authorised by the Local Authority.’

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

3.1.5. Commentary

■ The CoT states:

‘Subject to any Disclosures:

in our opinion, the Company has a good and marketable title to the Property and is solely legally and beneficially entitled to the Property and neither we nor the Company know of any reason why the Chargee should not be registered as registered proprietor of the Charge.’

■ There are numerous rights and encumbrances over the subject property which is not unusual for City of London buildings. From our understanding of the Certificate of Title, we are not aware of any encumbrances or unduly onerous or unusual easements, restrictions, outgoings or conditions, likely to have an adverse effect upon the value of the property.

■ We would recommend that all information regarding tenure is verified by your legal advisors and, furthermore, we would stress that the above assumptions regarding tenure should not be relied upon until they have been confirmed as being accurate by your legal advisors.

3.2. Tenancies

■ The property is currently let to 32 different occupiers on 50 leases or licences. This splits as:

o Offices: 17 occupiers on 29 leases

o Retail (including the gym): 10 occupiers on 12 leases

o Storage and parking: 3 occupiers on 7 leases or licences (there are 7 occupiers of the storage and parking but 4 of these are also retail and office tenants so there are 6 independent occupiers)

o Telecommunications: 2 occupiers on 2 leases ■ Some of the original leases from 2000 were for 20 years plus but the more recent lettings have generally been undertaken on 10 years terms, many of which include tenant break options at the 5th anniversary.

■ There are currently three vacant office suites: part level 15, part level 16 and level 18. These extend to a total of 21,896 sq ft or 3.5% of the office area of the building.

■ The level 7 lease is still held by Simmons and Simmons, although they have entirely sublet the floor to Morrison and Foerster LLP on three subleases on the terms set out in our tenancy schedule. We understand that as soon as a deed of variation is entered into relating to the subleases, then Simmons and Simmons will surrender their interest in their lease and your borrower will become landlord to the existing subtenant. As this can presumably happen at anytime, we have adopted the subtenancies’ terms for the purposes of our valuation. In the interim, their lease was varied so that the rent payable is equal to the rent received under the subtenancies and they have no repairing obligations. We assume that the subtenancies which will become the only occupational leases, are drawn on full repairing and insuring terms.

■ Levels 6 and 8 have already been surrendered by Simmons and Simmons by a Re-gear Agreement dated 23 March 2016.

■ All the retail premises are let with the exception of the former news kiosk which sits on the plaza and we understand is now just used for landlord’s storage.

■ There is 6,725 sq ft of vacant basement storage, not including the landlord’s basement store which is 888 sq ft.

■ There were originally 99 car parking spaces in the basement although the borrower has informed us that 10 have now been converted for bicycle parking. Of the remaining 89, 58 are let within the occupational office and retail leases and 2 are let on a separate licence to one of the office tenants. A further 10 spaces are allocated as landlords / disabled, leaving 19 vacant and available to let.

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

■ Given the lack of demand for parking within the City and the fact that the building is already almost fully let, we consider that demand for these remaining spaces would be limited. We have not, therefore, allowed for any value on them within our valuation.

■ The total vacancy within the property extends to 28,621 sq ft (not including the former news kiosk or landlord’s storage and BMA areas). This represents an overall vacancy rate of 4.1%.

■ Within our valuation we have allowed for non-recoverable costs relating to the vacant space prior to re-letting.

■ The leases are generally drawn on full repairing and insuring terms.

■ The property produces a total rental income of £25,319,643 per annum which equates to £42.41 per sq ft based on the area of the let and income producing space.

■ The offices within the property are currently let off rents ranging from between circa £30 per sq ft and £70 per sq ft. The total contracted rent from the office leases is £29,174,578 per annum which reflects £46.46 per sq ft overall. This includes some minor storage units and car parking which are let with the offices.

■ The retail units are currently let off rents ranging from between circa £20 per sq ft and £55 per sq ft on an overall basis. The total contracted rent from the retail leases is £949,170 per annum which reflects £27.50 per sq ft overall. This includes the storage units and car parking which are let with the retail units.

■ The table below shows the breakdown of the full contracted rent by use:

Tenant Use Rent % Office £29,160,266* 95.3% Retail £956,670* 3.1%

Gym £419,928 1.4% Storage £49,919 0.2%

Telecommunications Equipment £22,000 0.1% Parking £7,000 0.0%

Total £30,615,783 * Includes the storage and parking which are let within the office and retail leases.

■ The weighted average unexpired lease term (WAULT) until expiries and breaks is 6.4 years and 5.2 years respectively.

3.2.1. Commentary

We have reviewed the lease summaries within the Certificate of Title and it appears that the leases are generally drawn on standard, effectively full repairing and insuring terms, with a service charge provision allowing the landlord to recover its costs. A number of the leases contain non-standard clauses such as service charge caps but this is not unexpected in a multi- let building of this type. We draw your attention to the following:

Simmons & Simmons Lease

■ Simmons and Simmons LLP on levels 0 to 5 benefit from an indexed linked dilapidations cap of £1,131,007.50 which equates to c. £7.50 per sq ft. Whilst this is below our expectations of a dilapidations settlement for modern accommodation in the City of London, the lease expiry is not until 2025, by which time the floors will require a complete internal refurbishment which purchasers would expect to be at the landlord’s cost. They also benefit from a service charge cap £2,657,730 pa which is indexed from November 2015. Their current liability is £1,903,218 pa on these floors.

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

Airspace Lease

■ An Airspace lease relating to airspace adjacent to Moorfields House was granted for a term of 244 years from 20 January 2006. The current tenant is Metropolitan Properties Company Limited and the rent payable is a peppercorn without review. The demise is stated as all that airspace above Newlyn OD level 17.6 within the area shown edged red on the plan below:

■ The tenant may erect stanchions or pillars beneath the premises on the area hatched orange on the above plan with landlord’s approval which must not be unreasonably withheld.

Sub-station Lease

■ A lease has been granted to London Electricity plc from 29 March 1999 to 28 March 2098 at an annual fixed rent of £0.05 pa. We have not been supplied with a copy of the plan showing the demise but assume it to be in the basement.

Tenter House Lease

■ A lease was granted from 25 December 1959 for 200 years (141 years unexpired) of: the column of air above the land shown hatched black as part of the land edged red, above the top surface of the building to be built (retail unit 3); the basement area under the land shown cross-hatched black at basement level to a height of 47 ft 6 in above mean sea level; and, the ramp shown diagonally cross-hatched blue leading from the basement to Moorfields and as to the part under the land diagonally cross-hatched blue and edged red only up to a height of 47 ft 6 in above mean sea level.

■ The plan is shown below:

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

■ The rent payable is £1.00 per annum without review. The use is restricted to offices, showrooms or banking premises in the extension and in relation to the basement only as a car park, means of access and ancillary uses thereto. In relation to the land hatched black the tenant has rights to erect stays, stanchions, or pillars on the land hatched black to support the extension. The remainder of the demise has rights along the service road New Union Street to Moorfields. The landlord has the right to park 25 car spaces in the basement under the land cross-hatched black. The tenant may determine the lease at any time prior to the last 12 months of the term subject to demolition of the extension and infilling of the basement, if so required by the landlord. The tenant may also demolish the extension and remove the ramp but continue the lease. The tenant may not build above 110 feet above the top surface of the building (retail unit 3), and may not make structural alterations without the landlord’s consent. The landlord must surface and maintain the surface of the area cross-hatched black and cross-hatched blue edged red.

■ We do not believe that any of the above leases would have a negative impact on the current value of the property. However, Tenter House is set to be re-developed and your legal advisors should confirm how this will impact on the subject property, especially in relation to the area above the Pret unit and the area of basement car parking.

3.2.2. Sub Tenants

The Draft Certificate of Title refers to sublettings by Simmons and Simmons on levels part 3 and 5. Part level 3 is sublet to TMI Associates London LLP to 24 March 2024 or if earlier, the date on which Simmons and Simmons cease to occupy the floor. The rent is £22,495 pa. No details have been provided for the level 5 subletting other than it is to Mimecast Services Ltd.

Retail Unit 5 has been let to MSCP Wellbeing (the gym operator) at a peppercorn rent but it has been sub-let to Chop’d until 10 March 2026 at a current rent of £44,625 per annum, stepping up to £49,087.50 per annum from 3 November 2021 until expiry of the lease.

3.2.3. Tenant Improvements and Alterations

We do not have details of the individual tenants’ fit-outs but would expect that they have fitted out their own space and that they will be required to reinstate on expiry of the leases. We understand that the lecture theatre within the Simmons and

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

Simmons accommodation does not require reinstatement at lease expiry. We do not consider that this has a material effect on value as we feel there would be reasonable demand for the facility.

3.2.4. Service Charge

We understand that the property is multi-let on full repairing and insuring leases with the tenants under obligation to keep in good and substantial repair and condition the whole of the demised premises. We understand the landlord is responsible for the maintenance and repair of the structure, external fabric, internal common parts and central services which is then recovered from the tenants through the service charge.

The service charge budget which runs for the period 01 January 2018 to 31 December 2018 equates to approximately £12.34 per sq ft overall (Office: £13.17 and Retail: £6.50 per sq ft), including insurance. These rates are within the range that we would expect for a City tower building but the office rate is at the higher end. However, tower buildings do tend to be at the upper end of the range and we believe that this level compares to other similar towers.

There are several service charge caps within the leases which have indexed annual increases. Your borrower has informed us that they are above the current service charge and there are no non-recoverables for the year ending 31 December 2018.

We understand from your borrower that the service charge is set to increase over the coming years as they carry out planned maintenance on the building but that they are not forecasting any shortfalls in service charge recovery with the PPM regime designed to work in conjunction with the service charge caps to remove that risk. On current forecasts the service charge will return to a more normal level from 2026 once the programme of planned maintenance is completed.

3.3. Covenant Status

3.3.1. Background

We provide a brief summary of the top 10 tenants by income below:

Simmons & Simmons LLP (22.1% of contracted rent)

Simmons & Simmons LLP is an international legal firm, founded in 1896, with over 1,500 employees and 21 offices located throughout Europe, the Middle East and Asia. Their largest office is situated at Citypoint, where almost half its legal staff are based. The company offers legal services relating to real estate, environmental, financial markets and intellectual property.

London Citypoint Centre Limited t/a Regus - Regus Limited (Guarantor) (15.4% of contracted rent)

London Citypoint Centre operates as a serviced office centre and forms part of the Regus group. Although the tenant offers limited covenant strength, the security is underpinned by the rental guarantee from the parent company, Regus Plc, which is a substantial international business. The holding company was founded in 1989 in Brussels and now operates in 106 countries with more than 2,300 business centres, making it the world’s largest provider of flexible workplace. In December 2016, the company established a new holding company IWEG (International Workplace Group) and announced its intention to move its base outside the European Union (EU) to improve the legislative environment following the UKs decision to leave the EU.

Simpson Thacher & Bartlett LLP (8.4% of contracted rent)

Founded in 1884, Simpson Thacher & Bartlett LLP is an international law firm headquartered in New York City, employing over 900 lawyers in 11 offices worldwide. The firm specialises in both litigation and corporate practices, with a focus on mergers and acquisitions.

Willkie Farr and Gallagher (UK) LLP (7.8% of contracted rent)

Willkie Farr & Gallagher LLP is an international law firm with 9 offices in 6 countries. The company is headquartered in New York City and has approximately 650 employees. Founded in 1888, the firm specialises in investment funds, bankruptcy and intellectual property.

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

Morrison & Foerster (UK) LLP (5.0% of contracted rent)

Founded in 1883, Morrison & Foerster (UK) LLP is an international law firm with 16 offices located throughout the United States, Asia and Europe. The company provides legal advice relating to mergers and acquisitions, corporate finance, banking, infrastructure and intellectual property. Headquartered in San Francisco, the firm has approximately 1,000 lawyers worldwide.

Cravath Swaine & Moore LLP (4.6% of contracted rent)

Cravath Swaine & Moore LLP is an American Law Firm based in New York City, with an additional office in London (Citypoint). The company was founded in 1819 and has 497 employees. The company provides legal advice relating to mergers and acquisitions, private equity, banking, environmental and intellectual property.

Mimecast Services Limited (4.3% of contracted rent)

Mimecast Services Limited is an international company specialising in cloud-based email management for Microsoft Exchange and Microsoft Office 365. The firm offers services including security, archiving and continuity services to protect business mail. The company was founded in 2003 and has 10 offices throughout the United States, Europe and Africa.

United Trust Bank Limited (3.9% of contracted rent)

United Trust Bank Limited is a specialist bank that provides a wide range of secured funding facilities for individuals and businesses and competitive deposit accounts for individuals, businesses and charities. The firm was founded in 1955 and is headquartered in London at Citypoint.

Squarepoint Capital LLP (3.6% of contracted rent)

Squarepoint Capital LLP is a global investment management firm with 7 offices throughout the United States, Canada, Europe and Asia. The firm was founded in 2000.

Winston and Strawn Property (London) Limited (3.3% of contracted rent)

Winston and Strawn Property (London) Limited forms part of Winston & Strawn LLP. The parent company was founded in 1858 and now has 2,000 employees. Headquartered in Chicago, the firm has a total of 16 offices in the United States, Europe, Asia and the Middle East. The services offered include real estate finance, transactions, structured finance and restructuring.

3.3.2. Financial Information

We have obtained Creditsafe reports on the top 10 tenants and list below the results and their recent financial results, where available. Together these tenants represent 78.4% of the current contracted income. In a number of cases we have been unable to obtain the financial data where, for instance the company is registered overseas.

Company Business Type % of Credit Safe 2017 2016 contracted Rating – out T/O ‘000 Profit ‘000 T/O ‘000 Profit ‘000 rent of 100 Simmons & Legal 22.1% 94 £316,626 £95,389 £296,299 £98,079 Simmons LLP Very low risk London Serviced 15.4% 17 £5,109 -£2,139 £6,472 -£1,116 Citypoint Offices Very high risk Centre Limited t/a Regus Regus Plc £2,352.3* £149.4* £2,233.4 £176.1 (Guarantor) Simpson Legal 8.4% - - - - - Thacher & Bartlett LLP

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

Willkie Farr Legal 7.8% - - - - - and Gallagher (UK) LLP Morrison & Legal 5.0% - - - - - Foerster (UK) LLP Cravath Legal 4.6% - - - - - Swaine & Moore LLP Mimecast Information 4.3% 50 £46,976 -£1,012 £36,687 £1,598 Services technology Moderate risk Limited consultancy United Trust Financial 3.9% 87 £68,045 £26,351 £56,757 £20,680 Bank Limited Very low risk Squarepoint Financial 3.6% 71 £46,332 £20,925 £25,852 £5,847 Capital LLP Very low risk Winston and Legal 3.3% 47 £1,607 - £1,546 - Strawn Moderate risk Property (London) Limited

* The 2017 Regus figures relate to IWG Plc. We understand that in December 2016 there was a restructuring of the legal structure at the top of Regus, with a new holding company, IWG, being formed and the publicly quoted shares transferred into this company, which is now the public share owning vehicle based in Switzerland. As shown on the structure chart below, Regus Plc sits immediately below IWG Plc and owns all subsidiaries below it. Therefore, we believe that on a consolidated basis, the Regus performance should be almost identical to the top co.

As can be seen from the table above there are a range of covenant strengths amongst the top 10 tenants with some showing very low risk and some having Creditsafe ratings which show a high risk. Looking at the two largest tenants, Simmons and Simmons is responsible for around 22% of the current contracted income and is given a strong rating of 94 out of 100. This is

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018 a well established law firm and we believe that the investment market would view the tenant as offering good income security. The second largest tenant, Regus, is given a low rating. However, the tenant is an SPV set up to hold this lease so does not offer any significant security. There is, however, a guarantee from Regus Plc which would offer greater security. Regus is the world’s largest provider of flexible workspace and, despite the low Creditsafe rating, we believe that it would be considered to offer a good covenant.

The only other tenants which account for more than 5% of the income are Simpson Thacher & Bartlett and Willkie Farr and Gallagher. Both of these are US based law firms and financial information on them is limited. However, both are long established, sizeable companies and have occupied the building since 2000 and 2013 respectively. As such, we believe that the investment market would consider them to provide appropriate security.

Beyond the top four tenants, no one company is responsible for more than 5% of the current income. Whilst investors will still consider the covenant mix, for these smaller tenants the covenant strengths would be of less concern than the major occupiers, with any failures having a more limited impact on the income profile. Positively, we understand from your borrower that there are no current rental arrears. The range of financial and legal tenants is what would be expected in a building in this location.

3.3.3. Conclusion

Although we reflect our general understanding of the status of the tenants, we are not qualified to advise you on their financial standing. Based on the information available to us, we are of the opinion that investors would view the covenants as appropriate for a multi-let building such as this with good security provided over the majority of the space.

3.4. Income Analysis

Net Income

The current gross income from the subject premises is £25,319,643 per annum. There are no current non-recoverables relating to the let space so the net income will be the same.

The passing rent equates to £42.41 per sq ft based on the area of the let and income producing space.

There are currently ongoing rent free periods and half rent incentives. On expiry of these (assuming no other changes), the contracted rent is £30,615,783 per annum.

The contracted rent equates to £45.22 per sq ft based on the area of the let space.

The landlord will currently have some non-recoverable costs relating to the vacant space within the building (empty business rates and non-recoverable service charge). However, given that the property is almost fully let, these costs are minor. We have made an allowance for them within our valuation.

There are six outstanding rent free periods in the building, five of which will expire by 4 August 2019. The rent free period on the newly agreed lease for Level 26 extends until 9 January 2021. There is also one ongoing half rent incentive, on Level 32, which continues to 10 March 2020.

Expiry analysis

The overall WAULT is 6.4 years to lease expiries or 5.2 years if break options are taken into account.

The table and chart below show the expiry profile, based on the contracted rent, assuming all outstanding rent free and half rent incentives have expired. As the data show although there is 51% of the income with a break or lease expiry under 5 years, around half of the income extends beyond that period.

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

Expiry Profile Rent % 0 - 0.5 years £22,500 0.1% 0.5 - 1 years £73,220 0.2% 1 - 2 years £5,753,841 18.8% 2 - 5 years £9,843,268 32.2% 5 - 10 years £14,625,784 47.8% Over 10 years £297,170 1.0% £30,615,782 100.0%

Expiry Profile - Earliest Termination 16,000,000

14,000,000

12,000,000

10,000,000

8,000,000 £ (GBP) 6,000,000

4,000,000

2,000,000

Tenancies

The table and chart below show the top 10 tenants in the building by contracted rent. As the table shows, these tenants account for 78.4% of the current contracted rent, and the top four account for 53.7%. Outside of the top four, no one tenant is responsible for more than 5% of the income. This gives a good spread of risk across the tenants.

Tenant Name Rent % Simmons & Simmons LLP £6,780,224 22.1% London CityPoint Centre Limited £4,735,659 15.5% Simpson Thacher & Bartlett LLP £2,561,868 8.4% Willkie Farr and Gallagher (UK) LLP £2,368,937 7.7% Morrison & Foerster (UK) LLP £1,518,113 5.0% Cravath Swaine & Moore LLP £1,403,334 4.6% Mimecast Services Limited £1,320,361 4.3%

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

Tenant Name Rent % United Trust Bank Limited £1,204,672 3.9% SquarePoint Capital LLP £1,107,120 3.6% Winston and Strawn Property (London) Limited £1,014,488 3.3%

Top Ten Tenants by Rent

7,000,000

6,000,000

5,000,000

4,000,000

£ (GBP) 3,000,000

2,000,000

1,000,000

3.5. Planning

3.5.1. General

The property falls within the jurisdiction of the City of London. The City of London has prepared a new policy plan called The Local Plan, which outlines the strategy for planning in the City of London. This was adopted in January 2015. The Local Plan replaced the previous plans for the City, which were the Core Strategy 2011 and the Unitary Development Plan (UDP) 2002. The Local Plan sets out the vision for shaping the City of London up to 2026 and contains the policies which guide planning decisions. The Local Plan conforms with the London Plan which is prepared by the Mayor of London and covers issues such as planning, transport, economic development and housing.

The London Plan, together with the City’s Local Plan, forms the ‘Development Plan for the City of London. The core strategic approach behind the Local Plan is that when considering development proposals the City Corporation will take a positive approach that reflects the presumption in favour of sustainable development contained in the National Planning Policy Framework. The Local Plan aims to work proactively with applicants jointly to find solutions which mean that proposals can be approved wherever possible, and to secure development that improves the economic, social and environmental conditions in the area.

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

3.5.2. History

City of London planning records indicate that planning consent was granted for the redevelopment of Citypoint on 9 December 1997 and 23 March 1999. This permission related to the demolition of existing buildings in order to facilitate the enlargement and redevelopment of the existing Citypoint building to provide new offices, new A1 retail accommodation and new A3 restaurant accommodation.

As expected for a building of this type, there have been a number of applications for minor works and we do not list those within this report. However, below we highlight some of the more notable in recent years.

Application Details Decision Date Reference

18/00283/FULL Use of the public realm for an open air market one day per week. Under Consideration 17/01175/MDC Submission of details and particulars of materials and a scheme for the Approved construction, planting irrigation and maintenance regime for the 19/12/2017 proposed soft landscaping, tree and tree pods pursuant to conditions 2 and 3 of planning permission dated 28th September 2017 (App No 17/00268/FULL). 17/00268/FULL Alterations to the public realm within Citypoint Plaza, including the Approved removal of planters and ventilation pods, re-cladding of staircase and 13/04/2017 retail pods and installation of seating, timber decking, trees and low level planting. 13/00915/FULL Change of use of part of the ground floor reception area from offices (B1) Approved to Retail (Class A1) use or Restaurant (Class A3) use total floorspace 118 21/11/2013 sq m 04/00671/FULL Change of use of units 2B & 2C from Class A1 (shop) and Class D2 (indoor Approved golf club) to Class A1(shop) and/or Class A3 (food and drink) at ground 28/10/2013 floor and basement levels (497 sq m). 3350BH Retention of works commenced under planning permission 3350BE dated Approved 9th December 1997 and completion of enlargement and redevelopment 23/3/1999 of existing building to provide new offices, A1 retail and A3 restaurant uses. 3350BE Partial demolition, enlargement and redevelopment of existing buildings Approved to provide new office, A1 retail and A3 restaurant uses. 9/12/1997

3.5.3. Listed Building Consent and Conservation Area

The subject property is not listed and does not lie in a conservation area.

3.5.4. Current Planning Issues

There is currently a planning application relating to using public realm at CityPoint for an open air market (Application Reference- 18/00283/FULL).

We are not aware of any outstanding enforcement action or highways issues in relation to the property.

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

3.5.5. Conclusion

We do not believe that any of the above planning matters impact adversely on the current value of the property.

Based on the information available to us, we believe that the property’s use is in line with legislation.

3.6. Rating Assessment

3.6.1. General

Business rates are a form of property tax, usually paid by the occupier of property, and related to property rental value (known as Rateable Value). The level of rates paid is generally revised annually to reflect inflationary increases. The Rateable Value may be revised every five years to reflect changes in the value of the premises.

The property has a large number of entries and we have included these at Appendix 5. A summary by use is given below:

Description Total Aggregate Rateable Value Total Aggreagte Rates Liability Offices £25,938,000 £13,417,694 Stores £198,540 £98,873 Retail and leisure £792,750 £407,380 Car parking £304,000 £151,392 Cycle racks and motorcycle bays £92,900 £46,264

The annual amount of rates payable is arrived at by applying a multiplier to the rateable value. The multiplier for 2018/2019 in the City of London is 51.8 pence in the pound. This includes the City of London supplement of 0.5 pence in the pound and a Crossrail supplement on 2 pence in the pound. The Crossrail supplement is applicable only on rateable values over £70,000 so for entries below that, the multiplier will be 49.8 pence in the pound.

The property is currently almost fully let but there are some vacant floors, stores and car parking. After an initial three month exemption period for commercial properties such as shops and offices, and a six month exemption period for some industrial properties such as factories, warehouses, workshops and stores, business rates will have to be paid in full, for which the landlord will be liable. We have made an allowance for empty rates payable by the borrower within our valuation.

The Rateable Values (RVs) for the offices are in the region of £46.50 to £51.00 per sq ft across the building. The Valuation Office Agency which sets the RVs has tended not to tone the levels across the building which we would expect in the market, with the higher floors achieving higher rents. Rather they have traditionally applied standard rates to all floors. This is slightly below our average ERV in the building of circa £53.00 per sq ft but this is not unexpected as the base date for the current RVs is 2015 and we have seen rental growth since then.

3.7. Stamp Duty Land Tax

We have allowed for Stamp Duty Land Tax as follows: Market Value of up to £150,000, zero; next £100,000 (the portion from £150,001 to £250,000), 2.00%; remaining amount (the portion above £250,000), 5.00%.

We understand that the property was purchased in a Stamp Duty Land Tax mitigation scheme and that the property could be transferred to a potential purchaser with the benefit of this vehicle’s tax efficiencies via a corporate sale. Currently in the market purchasers are, on the whole, able to purchase such structures typically paying the Stamp Duty savings to the vendor.

You should be aware that the government is trying to change regulations surrounding tax efficient structures and there is a risk that at the point of onward sale it may not be possible for a purchaser to take advantage of the mitigation scheme either as a result of a change in statute or due to the nature of the purchaser audience at the time.

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

4. Market Commentary

4.1. UK Economy

Business surveys point to continued growth in Q3

The latest services PMI business survey slipped to 53.9 from 54.3 in August (anything above 50 indicates expansion in the sector). Growth in new orders slowed in September, with political uncertainty dampening business confidence as well an increase in cost pressures, mainly from rising energy prices.

The survey indicated the fastest rise in employment for seven months, which firms attributed to stretched capacity and long- term expansion plans. Anecdotal evidence also highlighted tight labour market conditions which had led to difficulties in filling vacancies and pushed up salaries. Indeed, the unemployment rate remains at multi-decade low, and in the three months to June, 100,000 additional people started full time employment, with a similar fall in part time unemployment. This suggests that due to a tight labour market, many part time works are being pulled into full time employment.

Real wage growth helping to support retail sales

Retail sales continued their recent strength, rising by 0.4% in August, bringing the annual growth rate to 3.5%. Over the past four months, retail sales on average have been growing at an annual rate of 3.7%, a significant rise from its 2017 average of 2%. An upswing in retail spending at the start of the summer seemed in large part due to the heatwave and the World Cup: food stores did especially well in June and July, and people spent more on gardening, DIY projects and day trips. The ONS also cited anecdotal evidence that sales of televisions during the World Cup had contributed to strong performance for household goods retailers.

August also marked the seventh consecutive month of real wage growth (average weekly earnings minus inflation). After a year of falling wages in real terms, consumers are finally starting to see rising household incomes albeit quite small which in turn is supporting retail sales.

Real wage growth remains positive

6 Annual % change Average earnings (ex bonuses)*

5 CPI (headline) 4 Inflation adjusted earnings

-1

-2

-3

-4 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Source: ONS

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

UK economic forecasts

2017 (Actual) 2018 2019 GDP 1.8 1.3 1.4 Retail Sales 1.9 0.9 1.1 Inflation (CPI) 3.0 2.2 1.6 Bank of England Base Rate 0.50 1.0 1.25 10 year Gilt Yield 1.2 1.7 2.3

Source: Oxford Economics

4.2. Property Market Overview

Monthly All Property total returns moderate in August as yield impact falls to zero

Monthly total returns at the all-property level were 0.5% in August, down from 0.6% the previous month. This was on the back of a fading yield impact, which fell to zero for the first time in 18 months.

Yield compression has had a stronger impact on capital growth than rental value growth over the past 18 months. Indeed, all- property equivalent yields have fallen from 6.3% after the EU referendum to 5.8% currently.

Although the yield impact on industrial returns was still positive, it was zero for offices and negative for the retail sector.

IPD UK Monthly Index, August 2018

Income return Capital value growth Rental growth Total returns All Property 0.4 0.2 0.1 0.6 Office 0.4 0.2 0.2 0.6 Retail 0.5 -0.4 -0.1 0.0 Industrial 0.4 0.9 0.2 1.3

Source: IPD Annual income return falls to its lowest since April 2008

Income return in the 12 months to August declined to 5.3% from 5.4% (at the all-property level). This is the lowest level recorded since the first half of 2008, and driven by yield compression which has boosted capital value growth. Industrial has seen the largest fall in income return, falling from 8% to 5% in the last five years, compared to 1.8% for offices and 0.8% for retail.

Turning to annual capital value growth, all-property capital values increased by 4.8% in the 12 months to August. Industrial continues to outperform, with capital values rising by 15.7%, compared to 3.2% in offices and 1.1% in retail.

Long run components of capital value growth

Looking at the components of capital value growth, over the long run (20 years), rental growth has been the dominant factor. Capital values in that period have risen 42%, and 80% of that rise is attributed to rental value growth, with only 20% due to yield compression. In the last five years, those proportions have flipped, with yield compression accounting for the majority of capital growth with rental growth taking a back seat.

With the yield impact now fading to zero, capital value growth will continue to remain low as long as rental growth remains weak.

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

That said, there is a large divergence between sectors. Since August 2013, industrial capital values have risen by 70%, with rental growth accounting for a third of that and yield compression the remainder. Offices have seen capital values rise by 42%, with rental growth accounting for about half of that. Retail has seen 6.8% capital value growth in the past five years, with yield compression being the sole driver of that growth.

Income return and capital growth, % return (August 2013 – August 2018)

120

100

0 Industrial Office All Property Types Retail

Income Return Capital growth

Source: IPD Prime office rental growth in largest regional markets to average 2.4% over the next five years

JLL latest forecasts indicate that prime office rents will grow on average 2.4% over the next five years in the largest regional office markets (Birmingham, Bristol, Cardiff, Edinburgh, Glasgow, Leeds, Manchester). Cardiff and Manchester look set to deliver the strongest growth in that period, at 3.0% and 2.8% respectively.

Focusing on the largest regional office market, Manchester has seen a strong first six months of 2018 with the 327,035 sq ft transacted during Q2 bringing the year-to-date total to 762,625 sq ft; a strong indication that it is now the norm for the city centre market to transact in excess of 1 million sq ft per annum.

Overall supply moved down over the quarter, with total vacancy easing to 3.6% and the Grade A vacancy rate reducing to 1.4%. However, the development pipeline is due to deliver a number of schemes to the market up to 2020, with 1.1 million sq ft of new build and 474,600 sq ft of refurbished speculative schemes currently on site. With numerous pre-lets either recently completed or in the pipeline, a significant proportion of this space will be absorbed before practical completion.

Prime rents were unchanged in Q2, remaining at £34 psf, although the outlook for 2018 is for positive rental growth. Rent free periods are seeing variations across the market depending on size and grade of property but are typically around 18-24 months’ rent free on a 10 year term.

4.3. Local Market Review – City of London Offices Q3 2018

Occupier take-up

■ Take-up reached 1.6 million sq ft in 77 transactions, compared to the 10 year quarterly average of 1.4 million sq ft.

■ This brings year to date take-up to 4.5 million sq ft, broadly in line with the equivalent period in 2017, and 18% ahead of the 10 year average for the Q1-Q3 period.

■ Technology and media, and banking and finance sectors were most active, each accounting for a 25% of leasing volumes.

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

■ There were 19 transactions totalling 425,000 sq ft from a diverse range of technology and media tenants, including: Pan Macmillan, Playtech, The Goat Agency, and The7Stars.

■ Strong take-up from the banking and finance sector was buoyed by the largest two deals of the quarter: TP ICAP leased 123,000 sq ft at 135 Bishopsgate, EC2 and 122,000 sq ft was acquired by Investec at 55 Gresham Street, EC2.

■ Flexible workspace providers continue their rapid expansion, with a further 292,000 sq ft leased across the quarter by ten different operators, including Hub-Hub, Runway East and The Space.

■ Strong pre-leasing continued, totalling 525,000 sq ft in Q3, accounting for 32% of quarterly take-up and 37% for the year to date.

■ The level of under offers, at 1.9 million sq ft, is well ahead of the 10 year average of 1.2 million sq ft, and as such we expect a strong final quarter, with full year take-up expected to exceed the 10 year average of 5.4 million sq ft.

Occupier demand ■ Overall demand rose 3% to 10.5 million sq ft, and is now 8% ahead of the 10 year average.

■ The uptick in overall demand was driven by a 13% increase in active demand, which ended the quarter at 7.3 million sq ft; the highest total since 2015.

■ Potential demand fell 13% to 3.3 million sq ft, and remains lower than the 10 year average of 3.9 million sq ft.

■ The banking and finance sector currently accounts for the largest share of active demand (37%), boosted by the inclusion of 14 requirements seeking in excess of 100,000 sq ft.

■ Flexible office providers are likely to remain acquisitive, accounting for 8% of active requirements.

■ New active requirements for the quarter include: Visa (150,000 - 200,000 sq ft), Lendlease (80,000 – 100,000 sq ft), Hive (40,000 sq ft) and Bulb (35,000 – 45,000 sq ft).

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

Existing supply and the development pipeline

■ Overall supply fell marginally to 5.1 million sq ft, compared to 5.3 million sq ft at the end of the previous quarter.

■ This equates to an overall vacancy rate of 4.4%, which is significantly lower than the 10 year average of 6.4%.

■ Development completions totalled 893,000 sq ft across seven schemes, 40% of which has been pre-leased or is under offer, leaving a balance of 530,000 sq ft of speculative supply.

■ Major completions with available space included: 253,000 sq ft at The Scalpel, EC3; 83,000 sq ft at The Tower, The Bower, EC1; and 70,000 sq ft at 35 Seething Lane, EC3.

■ There were two major development starts in Q3: 85,000 sq ft at Farringdon East, EC1, which is scheduled to complete in Q4 2019; and the 200,000 sq ft refurbishment of Premier Place, EC2, due to complete in Q3 2019.

■ The high level of quarterly development completions and strong pre-leasing saw the level of speculative space under construction fall to 4.3 million sq ft, of which 640,00 sq ft is scheduled to complete in Q4 2018, 2.4 million sq ft in 2019, and 1.3 million sq ft in 2020 and 2021.

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

Rents

■ City prime rents and incentives remained unchanged at £70 per sq ft, with 24 months free on an assumed 10 year term.

■ There are signs of upward pressure on prime rents with five transactions completing in Q3 achieving rents in excess of £70 per sq ft, including The Trade Desk at One Bartholomew Close, EC1 and Live Nation at the Farmiloe Building, EC1.

■ The JLL prime rent benchmark is based on a letting of a 10,000 sq ft suite on a mid-level floor in a new office building for a term of 10 years.

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

Investment volumes and yields

■ Quarterly investment turnover totalled £2.6 billion across 22 transactions, a 29% fall on the exceptional £3.6 billion traded in Q2, but ahead of the 10 year average of £2 billion.

■ Year to date turnover, at £7.7 billion, is 7% ahead of the equivalent period in 2017.

■ In the largest transaction of the year, Goldman Sach’s new London HQ at Plumtree Court, EC4 was purchased in a sale and leaseback by South Korea’s National Pension Service, for a price in excess of £1 billion.

■ Overseas purchases were involved in nine of the 10 largest transactions, with a diverse buyer profile including: Norges Bank (Norway) who purchased Sixty London, EC1 for £332 million, reflecting a net initial yield of 3.84% and capital value of £1,402 per sq ft; and City Developments Limited (Singapore) who have purchased Aldgate House, E1 for £183 million, reflecting a net initial yield of 4.96% and capital value of £864 per sq ft.

■ There were seven transactions involving UK buyers totalling £171 million, the largest of which was the sale of 36 Queen Street, EC4 to M&G Investments for £55 million, reflecting a net initial yield of 3.9% and capital value of £1,168 per sq ft.

■ Prime yields remain unchanged in Q3 at 4.25% across all lot sizes, while secondary yields are softening as investors become more discerning on tenure and lease length.

4.4. City of London Retail Provision

Central London’s eight key retail submarkets differ in size and retail offer. Oxford Street is by far the largest with retail floorspace approaching four and a half million square feet. Knightsbridge and Regent Street, although sizeable centres, are much smaller; Regent Street, with 1.3 million sq ft has around 30% of the floorspace of Oxford Street. Covent Garden and Bond Street have very different retail offers but are broadly similar in size, with around 820,000 and 850,000 sq ft respectively, whilst Kensington High Street and Kings Road are rather smaller. Retailing in the City of London has a more diffuse pattern, but the main concentrations total around 1.9 million sq ft.

The City of London includes a high proportion of convenience and service outlets with newsagents, dry cleaners, cafes and sandwich shops dispersed throughout the area. Retail uses are typically focused on specific subsectors, such as chemists, mobile phones, business clothing, gifts and cards/ stationery. However, there are four areas where there is a broader concentration of non-food retailing; namely Cheapside (including One New Change and Royal Exchange), Fenchurch Street

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

(including Leadenhall Market), Liverpool Street (including Old Spitalfields and Moorgate) and Fleet Street/Ludgate Hill. The Cheapside area dominates the City's various submarkets following the completion of One New Change scheme in 2010.

Consumer behaviour is very different in the City, with activity typically concentrated in the five day working week and a greater emphasis on shopping during lunchtimes. Indeed, historically, few shops were open during the weekend. However, following the completion of One New Change, Cheapside now caters for a more conventional shopping experience, with fashion multiples trading seven days a week. Moreover, Spitalfields, within the Liverpool Street submarket, has also progressively attracted a number of upmarket multiples that trade seven days a week, catering for a young and vibrant East London crowd.

The City has very few anchor stores. Notably, the City's first department store, House of Fraser, is located directly across from London Bridge at the junction of King William Street and Gracechurch Street. This is however due to close since House of Fraser’s proposed CVA (Company Voluntary Agreement) was approved in June. The store is expected to continue to trade until early 2019. There are two large-scale Marks & Spencer stores, one on Finsbury Pavement and another on Gracechurch Street.

There are a number of city centre format food stores in the City, with Marks & Spencer Simply Food, Tesco Express and Sainsbury's Local all represented. The City compares well on the PMA Café/Restaurant score, reflecting the large number of operators and range of provision from coffee shops to quality restaurants.

The A1 Food sector continues to grow and has strong demand. The more established retailers such as Pret a Manger and Itsu are now seeking larger sites of 2,000 sq ft+. However, there has been a raft of new entrants to the market, including Black Sheep Coffee, Joe & The Juice, Simple Health Kitchen, Tossed, POD, Vital and Simit Sarayi. A lot of these new concepts are funded by private equity and at present this trend shows no sign of slowing. For good A1 food sites in London located close to office occupiers it is not uncommon to see competitive bidding. Typically, units of 900 – 1,800 sq ft are the most in demand for these uses.

The restaurant market (A3), specifically in the West End, remains competitive. Transactions are moving at a fast pace and there is a limited supply of well configured units, with appropriate planning, licensing and extraction. As such rental growth continued throughout 2017 and into 2018, with occupiers still willing to pay premiums in select locations in order to secure the best sites. There has been a trend towards more casual dining with all-day offerings of both traditional and international cuisines. Brands such as the Ivy Café and Dishoom epitomise this trend. The sector has seen a rise in the smaller sized restaurant units of approx. 1,500 to 2,000 sq ft, which has allowed more individual operators to flourish. The international, high footfall operators are still expanding in Central London and are paying high rental levels in the process, these are tenants such as Shake Shack, PF Changs and Five Guys amongst others.

That said, the first half of 2018 saw a number of high street restaurant chains announce falling profits and store closures sparking what has been billed as the ‘casual dining crunch’. A number of high street restaurant chains, including Jamie’s Italian, Prezzo, Strada and Byron Burger have filed for CVAs which involve significant store closures as well as compulsory rent reductions. Commentators have attributed the crisis to a number of factors including rising operating costs as a result of wage increases, business rate recalculations and rising importation costs. Furthermore, there is a general consensus that an influx of new entrants into the market in the last five years has resulted in rapid over-expansion and a subsequent saturation of the sector. These macro issues paired with a downturn in consumer spending have significantly impacted the strength of the market. Landlords are now facing an increasing number of CVAs and rent reduction requests and are equally struggling to attract new casual dining tenants as occupiers become more cautious in their expansion plans.

At the time of the most recent PROMIS report (September 2017), the vacancy rate in the City of London stood at 6.0% of units, well below the Retail PROMIS average and a slight increase on the level recorded in September 2016.

Whilst the vacancy rate for the City as a whole was well below the PMA average, it continues to be high in comparison to the major West End submarkets. This perhaps reflects the lesser reliance on tourism and international retailers, which has helped to bolster other parts of Central London in recent years, as well as the overall scale of the offer. Another issue has been the reality of catering for a predominantly office-based shopping population. With the majority of office workers unable to go

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018 shopping apart from on lunch breaks and after work, trade and footfall have been an issue with quality fashion and luxury retailers often reporting trading difficulties. This has reduced the spectrum of demand for units and may well contribute to the vacancy rate.

Vacancies increased across all City submarkets between September 2016 and September 2017. Cheapside had the highest vacancy rate of all the markets, up at 11.6% from 3.6%. Other submarkets also saw increases, with Liverpool Street increasing from 2% to 3.3%. Fleet Street’s vacancy rate increased from 2% to 6.1% and Fenchurch Street’s rate increased from 5% to 6.8%.

The subject property is located in the Liverpool Street & Moorgate retail sub-market which is the largest and most dispersed of the submarkets, totalling nearly 490,000 sq ft. As well as Liverpool Street and Moorgate, the area covers Bishopsgate, Old Broad Street, London Wall, Eldon Street, Finsbury Pavement and Spitalfields.

London Wall and Eldon Street link the Broadgate area to Moorgate and Finsbury Pavement, where the large Marks & Spencer is located. Eldon Street/Blomfield Street houses a number of quality clothing shops including Hugo Boss, Charles Tyrwhitt, Thomas Pink, TM Lewin, and Moss Bros. On Moorgate, the retail environment has been greatly affected by on-going development works for the forthcoming Crossrail scheme. However, several retailers remain, including Next, Boots, Hotel Chocolat and EE. London Wall has an array of eateries, with Eat, Pret, Wasabi, and Pizza Express being located on this stretch.

At the end of 2017, absolute prime rents in the City of London were estimated at £300 per sq ft Zone A. This represents no change on the mid-2017 level of prime rents in the city with rents now 9.1% above the pre-recession peak of £275 psf ZA. Rents are considered to have been stable over 2018.

The subject property’s retail pitch is significantly inferior and this is reflected in the much lower rents achievable. As the building is not located in a recognised retail area, the rents tend to be negotiated on a global basis, i.e. what can operators afford per annum, rather than by reference to established pitch values. When considering the rental tone for the subject property we have therefore had particular regard to transactions in the property itself as detailed in Section 5.1 below.

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

5. Valuation Commentary

5.1. Rental Evidence and Considerations

In arriving at our opinion of rental value in respect of the property, we have had regard to a range of comparable buildings as follows:

Offices

Citypoint, Ropemaker Street, EC2 (the subject property) Date October 2018 Size 12,556 sq ft Floor Level 26 Incentive 27 months' rent free, 3 months of which reflects condition Rent £784,750 pa £62.50 psf Completion 2000 refurbishment of 1960s building Tenant Willkie Farr and Gallagher Condition Cat A second-hand fit out (UK) Term 10 years Description Upper tower floor with outstanding views,

arranged around central core Break Option None

Date July 2018 Size 13,044 sq ft Floor Level 32 Incentive Half rent to 10 March 2020 (10 months effectively) Rent £906,558 pa £69.50 psf Completion 2000 refurbishment of 1960s building Tenant Prembco Holdings BV Condition Cat A refurbished to Grade A Term 5 years Description Upper tower floor with outstanding views, arranged around central core Break Option None

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

Date March 2017 Size 12,982 sq ft Floor Level 30 Incentive 19 months' rent free Rent £450,661.50 pa £68.50 psf Completion 2000 refurbishment of 1960s building Tenant United Trust Bank Ltd Condition Cat A refurbished to Grade A Term 7 years 10 months Description Upper tower floor with outstanding views, arranged around central core Break Option 5th year with 6 months’ rent penalty

Date April 2018 Size 11,926 sq ft Floor 17th floor Incentive 9 months' rent free Rent £787,116 pa £66.00 psf Completion 2000 refurbishment of 1960s building Tenant London Citypoint Centre Condition Cat A refurbished to grade (Regus) A Term 9 years 2 months Description Mid tower floor with outstanding views, arranged around central core Break Option None

Date December 2017 Size 6,859 sq ft Floor Pt 16th floor NE Incentive 12 months' rent free plus 11 months’ rent free if break not operated Rent £462,982 pa £67.50 psf Completion 2000 refurbishment of 1960s building Tenant Duane Morris LLP Condition Cat A refurbished to grade A Term 10 years Description Part of mid tower floor with outstanding City views Break Option 5th year

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

Date June 2018 Size 8,060 sq ft Floor Part 15th floor W Incentive 14 months' rent free Rent £554,550 pa £67.50 psf Completion 2000 refurbishment of 1960s building Tenant Brookfield Properties Condition Cat A refurbished to grade A Term 10 years Description Part of mid tower floor with views over Barbican Break Option 5th year

Date June 2017 Size 67,617 sq ft Floor 9th to 14th floor Incentive 14 months' rent free Rent £58.00 psf Completion 2000 refurbishment of 1960s building Tenant London Citypoint Centre Ltd Condition Cat A refurbished to grade (Regus) A Term 10 years Description Five floors arranged around central core, with east and west views compromised by galleria Break Option 5th year

■ The lettings above represent the most recent office transactions within the building; ■ The letting of level 26 to Willkie Farr Gallagher (UK) was agreed at £62.50 per sq ft, which we consider to be below market levels, as the deal was part of a wider settlement involving the re-gearing of levels 25 and 27. This involved removing breaks, extending terms and increasing the rent payable. Furthermore the letting was of a secondhand fitout. ■ We would comment that the letting of level 17 was to an existing tenant within the building and consequently possibly at a higher rate than would be achievable in the open market; ■ The letting of level 16 north east side is of a part floor with preferred City outlook and therefore could have attracted a premium above an open market letting of a whole floor; ■ Level 15 was let to Brookfield, your borrower, and is also a part floor, albeit with a less popular westerly outlook. As a connected party this cannot be entirely relied upon as open market evidence; ■ We further understand that part level 16 south west of 5,327 sq ft is under offer at a rent of £66.50 per sq ft on a 10 year lease with a five year break and 12 months’ rent free with a further five years if the break is not operated. This has had a full Cat A refit; ■ We also understand that level 18 of 12,305 sq ft and part level 15 of 4,264 sq ft are vacant and available to let and agents are quoting high £60s per sq ft with a view to settling at mid £60s per sq ft.

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

One Angel Court, EC2 Date July 2018 Size 4,395 sq ft Floor Part 9th floor Incentive 9 months' rent free Rent £72.50 per Completion 2017 sq ft Tenant Conduent Condition Comprehensively refurbished – effectively new space Term 4 years 10 months Description Landmark office tower building arranged over ground and 26 upper floors. The second, fifth, sixth and seventh floors include a terrace. Rebuilt around an extended original core so effectively a new building.

Break Option -

Date April 2018 Size 4,328 sq ft Floor Part 13th floor Incentive 25 months' rent free. 13 months initial and a further 12 months if tenant does not exercise break Rent £76.00 per Completion 2017 sq ft Tenant Clean Energy Partners Condition Comprehensively refurbished – effectively new space Term 10 years Description Landmark office tower building arranged over ground and 26 upper floors. The second, fifth, sixth and seventh floors include a terrace. Rebuilt around an extended original core so effectively a new building. Break Option 5th year

■ Located in the heart of the core of the City circa 200m to the north of Bank Underground station and 400m to the south west of Liverpool Street station; ■ Comprises a recently comprehensively refurbished and extended landmark tower building; ■ Smaller floorplates than at the subject property and within a tower scheme which tends to attract premium rents; ■ Considering the older construction of the subject property, its larger equivalent floors to the ones above at One Angel Court, we would expect the highest floors to achieve lower rental values than £72.50 and £76.00 per sq ft.

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

One Creechurch Place, 1 Creechurch Lane, EC3 Date July 2018 Size 15,943 sq ft Floor 10th floor Incentive Undisclosed Rent £64.00 per sq ft Completion 2017 Tenant Hyperion Insurance Group Condition New build Limited Term 14 years 4 months Description Landmark office building arranged over two lower ground floors, ground and 17 upper floors

Break Option None

Date May 2018 Size 15,994 sq ft Floor 6th floor Incentive 24 months' rent free. 12 months initial and a further 12 months if tenant does not exercise break Rent £64.00 psf Completion 2017 Tenant Coverys Speciality Insurance Condition New build Term 10 years Description Landmark office building arranged over two lower ground floors, ground and 17 upper floors Break Option 5th year

■ Located circa 200m to the west of Aldgate Underground station and 150m to the east of 30 St Mary Axe (‘the Gherkin’). ■ Occupies a less prominent position and is further from the City core than the subject property; ■ Floorplates range from circa 15,500 sq ft to 17,500 sq ft and are therefore smaller than those at the same level in the subject property; ■ New build as opposed to the subject property which dates from 2000 effectively; ■ Although the location is less core, given that this is a new building, we would expect the subject property to achieve lower levels of rent at a similar level of height. However this level could be achieved at the subject property in the smaller mid-tower floors.

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

20 Gracechurch Street, EC3 Date June 2018 Size 5,045 sq ft Floor 14th floor Incentive 12 months’ rent free Rent £62.50 psf Completion 1992 (refurbished in 2009) Tenant Agora Syndicate Services Condition Secondhand Grade A Term 5 years Description Office building arranged over 16 upper floors with retail at ground level Break Option None

■ Located within traditional financial city core, occupying a significant virtual island site; ■ This property was extensively refurbished in 2009 and has a large atrium and two entrance lobbies; ■ Agora Syndicate Services is a subsidiary of XL Catlin which was already in occupation of 55% of 20 Gracechurch Street; ■ Given that the letting was agreed to a subsidiary of an occupier already in situ, we would anticipate that a lower rent would have been achieved for this small suite at 14th floor level, if let on the open market; ■ On balance, we consider that a similar rent should be achievable on a floor of similar height at the subject property.

The Minster Building, 3 Minster Court, EC3 Date May 2018 Size 17,500 sq ft Floor Part 4th floor Incentive 24 months’ rent free Rent £62.50 psf Completion 1990. Whole building comprehensively refurbished internally in 2017

Tenant Tower Research Condition Refurbished Grade A Term 10 years Description Office building totalling circa 299,000 sq ft arranged over lower ground, ground, mezzanine and 10 upper floors Break Option None

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

Date April 2018 Size 17,500 sq ft Floor Part 4th floor Incentive 24 months' rent free. 12 months initial and a further 12 months if tenant does not exercise break Rent £60.00 psf Completion 1990. Whole building comprehensively refurbished internally in 2017 Tenant Make It Cheaper Ltd Condition Refurbished Grade A Term 10 years Description Office building totalling circa 299,000 sq ft arranged over lower ground, ground, mezzanine and 10 upper floors Break Option 5th year

■ Located towards the south eastern edge of the City, in a weaker position than the subject property, circa 200m to the south west of Fenchurch Street station, circa 300m to the west of Tower Hill Underground station and 350m to the east of Monument Underground station; ■ This property was extensively refurbished in 2017 and provides a grade A offices with a large atrium and a double height reception; ■ Both tenants have entered into a 10 year term of part 4th floor at £60.00 - £62.50 per sq ft; ■ This property occupies an inferior location to the subject property on Great Tower Street. However, it is an iconic development which has been extensively refurbished, being stripped back internally and entirely refitted. Taking this into account, we are of the opinion that the lower floors at the subject property would let at a discount, although the smaller top floors could be at a premium, particularly high in the tower.

70 Gracechurch Street, EC3 Date April 2018 Size 14,735 sq ft Floor 7th floor Incentive Undisclosed Rent £65.00 psf Completion 2002 Tenant JDX Consulting Condition Grade A Term Sublease of 10 years 3 months Description Office and retail building over basement, ground and 7 upper floors

Break Option None

■ Located in a better position than the subject property in the heart of the City core and prominently situated on a main intersection; ■ This property was last refurbished in 2004 following the sale from Marks & Spencer to XL Limited when the retailer relocated its headquarters to Paddington Basin. This property provides Grade A office accommodation with a large atrium within the building core increasing the natural light on each floor; ■ JDX Consulting entered into a sub-lease from sole office occupier XL Catlin Services SE of the 7th floor at £65.00 per sq ft;

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

■ As this property occupies a better location to the subject, but is of a similar age and quality, we are of the opinion that the subject property would let at a discount on a comparable floor.

6 Bevis Marks, EC3 Date April 2018 Size 5,688 sq ft Floor Part 6th floor Incentive Undisclosed Rent £67.50 psf Completion 2014 Tenant Accuracy Condition Grade A Term 7 years 6 months Description Office building totalling circa 177,000 sq ft arranged over lower ground, ground and 15 upper floors with a communal roof terrace and retail at ground floor

Break Option None

Date November 2017 Size 8,087 sq ft Floor Part 10th floor Incentive 24 months’ rent free. 12 months initial and a further 12 months if tenant does not exercise break Rent £69.50 psf Completion 2014 Tenant GuarantCo Management Co Condition Grade A Ltd Term 10 years Description Office building totalling circa 177,000 sq ft arranged over lower ground, ground and 15 upper floors with a communal roof terrace and retail at ground floor Break Option 5th year

■ Located circa 250m to the north west of Aldgate Underground station and circa 300m to the south east of Liverpool Street station. Circa 50m from 30 St Mary Axe (‘the Gherkin’) but is in a less prominent position. Located close to the City tower cluster; ■ This property was completed in 2014 to provide Grade A office accommodation which is of a higher specification than Citypoint. The building benefits floor to ceiling height windows increasing the levels of natural light and a communal roof garden; ■ Both lettings in November 2017 and April 2018 were let at £69.50 and £67.50 per sq ft respectively for sub 10,000 sq ft floorplates; ■ This property is in a less prominent location but is a new building and, as such, we would expect Citypoint to achieve lower rents on comparable floor levels.

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

1 Fen Court, EC3 Date March 2018 Size 33,090 sq ft Floor 1st floor Incentive Confidential Rent £66.00 per Completion 2017 sq ft Tenant Argo (Heritage) Condition New build Term 15 years Description 420,000 sq ft Grade A office and retail building arranged over ground, mezzanine and 14 upper floors Break Undisclosed Option

■ Located in the City core circa 200m to the west of Fenchurch Street rail station, 350m to the north east of Monument Underground station and 500m to the east of Bank Underground station; ■ Situated between Fenchurch Street and Fenchurch Avenue, circa 100m to the south east of Lloyds of London; ■ 1 Fen Court provides Grade A office accommodation arranged over ground, mezzanine and 14 upper floors. There is a garden and 8,000 sq ft restaurant at rooftop level. Most of the floorplates extend to circa 33,000 sq ft; ■ Smaller floorplates than on the lower levels of the subject property; ■ Regularly configured with a main service core and a secondary core; ■ This letting is for a smaller floorplate and it is a new build so we would expect the subject property to let at a discount on a floor of equivalent height.

21 Lombard Street, EC3 Date March 2018 Size 13,975 sq ft Floor 1st floor Incentive None Rent £57.50 psf Completion 1970 building with 2000 refurbishment Tenant Chartered Institute of Insurers Condition Secondhand Grade A with Cat B fitout

Term 8 years Description Office building arranged over basement, lower ground, ground and 8 upper floors Break Option None

■ Located in better position within City core location; ■ Similar age of refurbishment to the subject property with Cat B fitout and furniture; ■ Subletting by the sole office tenant in the building, UBS UK Properties Limited to the Chartered Institute of Insurers for a term of 8 years at £57.50 per sq ft; ■ Given the better location of this property and similar quality, and allowing for this being a much smaller floor than the lower levels at Citypoint, we would expect a lower rental tone at the subject property on a floor of a similar height.

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

20 Fenchurch Street, EC3 Date February 2018 Size 17,062 sq ft Floor 11th floor Incentive 25 months' rent free Rent £68.00 psf Completion 2014 Tenant King Wood & Mallerson Condition Refurbished Grade A Term Sublease of 13 years 7 months Description 688,000 sq ft iconic 37 storey tower building Break Option None

■ Located in City core, 20 Fenchurch Street is an iconic tower building, informally called ‘the Walkie Talkie’, which is of more modern construction than the subject property; ■ Subletting for a reasonably long term of 13 years and seven months; ■ Similar floor plate to the subject property on the 11th floor; ■ Given that this is a new building, in a better location in the City core, we would expect the subject property to let at lower rents on comparable floor levels.

The Scalpel, 52 Lime Street, EC3 Date December 2017 Size 10,774 sq ft Floor 18th floor Incentive Confidential Rent £73.00 psf Completion Q3 2018 Tenant Decus Insurance Brokers Ltd Condition New Term 10 years Description Grade A offices Break Option 5th year

■ Pre-let of new tower building, located in the heart of the EC3 postcode’s insurance district, close to Lloyds of London, at the junction of Lime Street and Leadenhall Street; ■ The floorplates range between circa 6,000 sq ft and 15,500 sq ft, depending upon the floor level. The building does not however provide any terraces; ■ Similar size floor to the tower floors at the subject property; ■ This is a new building and the letting is for a mid-tower floor. We would therefore expect the subject property to let at a discount on similar mid-tower levels.

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

2 London Wall Place, London Wall, EC2 Date October 2017 Size 11,636 sq ft per floor Total 23,300 sq ft Floor 2nd and 3rd Floors Incentive Just under 28 months’ rent free Rent £65.00 psf Completion March 2018 Tenant Barnett Waddingham Condition New Grade A office accommodation Term 15 years Description Office building arranged over lower ground, ground and 16 upper floors Break Option None

■ 2 London Wall Place is a new grade A development completed in March 2018; ■ Located on London Wall which is a key east/west route through the City. Considered a micro location of similar quality to Citypoint being 400m to the south west; ■ Circa 200m to the south west of Moorgate station, 500m to the north west of Bank Underground station and 500m to the south west of Liverpool Street station; ■ Smaller floorplates than the subject property on the lower floors; ■ As this building is new, and the floorplates are smaller than at Citypoint, we would expect lower rents to be achieved on comparable level floors at the subject property. This level of rental value could however be achieved on the smaller, higher tower floors.

100 Bishopsgate, EC2 Date February 2017 Size 249,635 sq ft Floor 20th to 32nd floors Incentive 36 months' rent free Rent £69.50 psf Completion Completion Q4 2018 Tenant Freshfields Bruckhaus Condition New build Deringer

Term 10 years Description Grade A office accommodation in the City Core Break Option N/A

■ Pre-let of 249,635 sq ft with the tenant having an option over a further 38,534 sq ft on the 33rd and 34th floors; ■ New build, landmark tower in City Core over ground and 37 upper floors; ■ Building comprises podium level floors on 1st to 5th of 43,000 sq ft to 44,000 sq ft and tower floors on 6th to 37th of approximately 19,000 sq ft to 26,000 sq ft; ■ Anticipated to complete in Q4 2018; ■ Tower floors are larger in size than those at the subject property;

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

■ The 1st to 7th floors, extending to 244,000 sq ft were previously pre-let to the Royal Bank of Canada in October 2015 at £59.00 per sq ft and the 11th to 15th floors, extending to 117,391 sq ft were pre-let in March 2016 to Jeffries at a rent rumoured to be circa £69.00 per sq ft; ■ As Citypoint is an older building in a slightly poorer location, we would not expect such a high average rent over floors of a comparable height. However this rental level could be foreseeable on the very highest floors as they are smaller.

The Shard, 32 London Bridge Street, SE1 Date January 2017 Size 38,667 sq ft Floor 20th and 21st floors Incentive Confidential Rent Mid £70s psf Completion 2012 Tenant HJ Heinz Condition Modern office development Term Confidential Description Tower building providing

Grade A office accommodation Break Option Confidential

■ Modern iconic tower development designed by architect Renzo Piano; ■ Includes offices over floors 2 to 28, restaurants on floors 31 to 33, the Shangri-La Hotel on floors 34 to 52, residential accommodation on floors 53 to 65 and a viewing gallery on floors 68 to 72; ■ Lies on the south bank of the River Thames, over London Bridge station, a main London interchange of underground and overground rail lines; ■ These floorplates are larger than those at the subject property in the tower; ■ The offices are now fully let; ■ As The Shard is such an iconic building, new, and located adjacent to a major London transport interchange, we would anticipate lower rents on similar level floors at Citypoint, despite it being in a more core location.

Retail In arriving at our opinion of rental value in respect of the retail element at the subject property, we have had regard to a range of comparable lettings as follows:

Date Transaction Tenant Address Size Rent £ pa £ psf Comments 05/18 Open Tossed 1-3 Gresham 1,300 130,000 100.00 15 year lease, in city core market Street, EC2 but not an established letting retail pitch 02/18 Open Unknown 7 Broadgate G - 2,483 250,000 47.35 15 year lease within heart market Circle, EC2 of Broadgate Estate, A4 use LG - 2,797 letting 09/2017 Open Polu Poke Principal G - 2,341 70,000 29.90 A3 unit, 15 year term with 9 market Place, Norton month rent free, close to letting Folgate E1 Broadgate Estate but not an established retail pitch 06/17 Rent review A3D2 Ltd Unit 7 L1 - 189 230,000 19.67 25 year lease from 2002. Citypoint Uplift of £12,806 since 2012 LG - 11,506 review. Bar use.

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

Date Transaction Tenant Address Size Rent £ pa £ psf Comments 09/2016 Open Drake and Unit 2A L1 - 4,794 143,600 29.95 15 year lease with market Morgan Citypoint additional turnover rent of letting Ltd amount which gross turnover exceeds rent 10% 11/14 Sub-letting Chop’d Unit 5 L1 - 480 43,775 91.20 Stepped rent averaging Citypoint (average) £43,775 over first 5 years with a fixed uplift to £49,087.50 (£102.27 psf)

5.1.1. Rental Value Considerations

Offices

Despite the uncertainty being created by the UK’s departure from the UK, the City occupational market remains healthy with take-up in Q3 2018 reaching 1.6 million sq ft in 77 transactions, compared to the 10 year quarterly average of 1.4 million sq ft. This brings the year to date take-up to 4.5 million sq ft, broadly in line with the equivalent period in 2017, and 18% ahead of the 10 year average for the Q1-Q3 period. The most active sectors were technology and media, and banking and finance, with each accounting for 25% of leasing volumes.

Demand is also fairly positive, rising 3% over Q3 to 10.5 million sq ft, and now 8% ahead of the 10 year average. This increase in overall demand was driven by a 13% increase in active demand, which ended the quarter at 7.3 million sq ft; the highest total since 2015.

Alongside the good levels of take-up and demand, supply is tight with the overall supply in the City falling slightly over Q3 to 5.1 million sq ft, compared to 5.3 million sq ft at the end of the previous quarter. This equates to an overall vacancy rate of 4.4%, which is significantly lower than the 10 year average of 6.4%. All this has helped to maintain prime, not-tower, headline rents at £70 per sq ft.

Citypoint is a unique building, located on the northern edge of the City Core in an area that is changing rapidly with a number of new large developments completing recently e.g. Moorgate Exchange, as well as further planned e.g. 21 Moorfields. Public transport connectivity is also set to improve with the opening of the Moorgate entrance to Liverpool Street Crossrail station in 2019. The building, originally built in 1967, was substantially remodelled and extended in 1998 – 2000 creating a modern tower building surrounded by a lower level podium under the sloping roofs of covered galleria on the eastern and western elevations. This unusual design does create differences in the efficiency of occupation of floors due to their shape, as well as levels 14 downwards having their outlook compromised by the sloping galleria roofs.

The tower levels provide regularly configured floors which have good, uninterrupted views to the west and east although they are fairly narrow which can make space planning a little more difficult. The floors also lend themselves to sub-division although the WCs are located towards the northern end of the building and this does influence how the space is split

The podium floors from level 12 down have side projections of the floors into the space created by the sloping galleria roofs, creating four additional side areas. At level 8 these join up with additional accommodation in the 2000 built podium structure, to create larger, irregular floor plates, with the accommodation divided by atria and six main service cores. There are also rows of structural columns in parts.

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

Level 5 layout plan

Due to the individual nature of the structure, the best evidence of rental value is found from recent transactions within the building. In terms of completed lettings the July 2018 deal to Prembco Holding BV on level 32 showed £69.50 per sq ft of a whole higher floor. It achieved a five year term with effectively a 10 month rent free period and gives a strong indication of the higher level rental values. The letting in October 2018 of level 26 to Willkie Farr Gallagher (UK) at £62.50 per sq ft, was part of a wider re-gearing of the same tenant’s adjacent levels 25 and 27. This therefore cannot be considered as a true open market letting and is slightly below our open market rental value. The recent lettings at mid tower level include one letting of a whole floor at £66.00 per sq ft in April 2018 to London Citypoint Centre Limited (Regus) who are an existing tenant in levels 14 to 9. In our experience existing tenants tend to pay a slight premium as they have an element of special purchaser in their bid. The letting to Duane Morris LLP of 6,859 sq ft is a half floor with a preferred easterly view, which creates a slight premium to a letting of a whole floor. The part floor deal to Brookfield (your borrower) of level 15 at £67.50 per sq ft in June 2018 can be argued to be not a truly arm’s length transaction. The letting to London Citypoint Centre Limited (Regus) of levels 9 to 15 at an average rent of c.£58.00 per sq ft in June 2017 demonstrates the discount necessary on the lower floors affected by the galleria roofs and reduced outlook.

Looking at evidence from other buildings it is clear that rental levels vary depending amongst other things on location, quality and age of the accommodation, height within tower buildings and strength of the architectural design. The evidence set out above is a cross section of the major City of London grade A deals in the last 18 months which we consider to be relevant in assessing the rental value of Citypoint. The rents range broadly from £76.00 to £57.50 per sq ft with the highest levels achieved in upper floors of new tower buildings and the lower end of the range in low rise second hand accommodation.

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

Reviewing firstly tower rents, One Angel Court was completely refurbished around an existing, extended core with extra floors added in 2017, and so is effectively a new building. Rents of £76.00 per sq ft have been achieved on the 13th floor and £72.50 per sq ft on the 9th floor both c. five years term certain and for c. 4,350 sq ft with initial rent frees of nine to 13 months. These lettings are for smaller suites than at Citypoint which tends to attract a premium, as does the more recent construction of the building. Angel Court is also in a more core City location which will appeal more to some occupiers. Consequently we consider that lower rental levels would be achieved at Citypoint based on this evidence. 20 Gracechurch Street was originally built in 1992 for Barclays Bank HQ and underwent a full refurbishment in 2009. It is located in a prime City core position but the exterior is now dated in style. The letting in June 2018 at £62.50 per sq ft on the 14th floor is a good indication of rental levels that should be achievable on similar floors levels at Citypoint. Whilst 20 Gracechurch Street has a stronger position, Citypoint is a more attractive building and both are of a similar internal quality. 20 Fenchurch Street is a relatively new and iconic tower, completed in 2014. The 11th floor was let at £68.00 per sq ft in February of this year on a 13 year 7 month sublease with 25 months’ rent free. Whilst the floor is of a similar size to the equivalent level at Citypoint, the more recent construction will drive a higher rental level than that realisable at Citypoint.

Similarly the letting of the 18th floor at The Scalpel in December 2017 was of a new iconic tower building and at £73.00 per sq ft is in excess of that which we consider the 18th floor at Citypoint could be let for, albeit that they are of similar size and both are in central City location. 100 Bishopsgate is due to complete construction imminently and has been partly prelet at between £59.00 per sq ft on levels 1 to 7, £69.00 per sq ft on levels 11 to 15 and most recently £69.50 per sq ft on levels 20 to 32. These lettings are of multiple floors and therefore larger than most of the lettings at Citypoint. This, coupled with the fact that the deals are substantial prelets in perhaps a more uncertain occupational market, suggest that smaller parcels of accommodation let floor by floor in a completed building may attract slightly higher rents or at least fewer incentives. This is evident by the 36 months’ rent free which is in excess of the market norm for a single floor of 24 months for a 10 year term.

Looking at lower rise buildings in the City core the lettings are in the range of £57.50 per sq ft to £67.50 per sq ft. One Creechurch Place completed in 2017 and both the 6th and 10th floors let at £64.00 per sq ft on floors of approximately 16,000 sq ft. As it is a new building, albeit in a less prime location than Citypoint, we would expect lower rental levels on comparable floors at the subject property. However smaller mid-tower floors at Citypoint should be able to achieve this level of rent. The Minster Building in EC3 is interesting in that the exterior is dated having been designed in the late 1980s but internally the building has been completely upgraded and modernised with a full refurbishment of common parts and tenant floors. Rents of £62.50 and £60.00 per sq ft were achieved on the fourth floor in suites of 17,500 sq ft in Spring 2018. The location of the building is popular with the insurance industry and similar in strength to Citypoint. However the floor plate is more regular in shape at The Minster Building with the offices arranged around a single circular atrium. This makes space planning more efficient and tenants are prepared to reflect this in their bid. In addition, the service charge runs at c. £9.50 per sq ft, which is almost £3.00 per sq ft below that at Citypoint. Consequently we would expect lower rental levels to be agreed at Citypoint. 21 Lombard Street was comprehensively refurbished at the same time as Citypoint and is located in the prime City core. The first floor has been sublet by UBS at £57.50 per sq ft and this includes the tenant’s Cat B fitout which is in good condition. This level of rent will need discounting to compare to Citypoint on a Cat A fitout basis and also for the better location. 2 London Wall Place is in close proximity to Citypoint but is a new building and the second and third floors achieved £65.00 per sq ft a year ago on a prelet basis. Each floor is c. 11,650 sq ft so smaller than the lower floors at Citypoint and the rental level achieved will need discounting to reflect both this fact and its recent construction.

Bearing in mind the above evidence, the current market norm for letting of a single floor is a 10 year term with 12 months’ rent free for each five year term certain. This is assuming a Cat A refit as in our experience unrefurbished accommodation is very hard to let at anything other than abnormally discounted rents. The tenant profile of new occupiers would we believe, reflect the profile of the existing tenants, i.e. legal firms, serviced office companies and smaller financial companies. As evidenced by the lettings of the vacant floors in Citypoint, voids are in the region of 12 months and consideration has to be given to subdividing the floors to respond flexibly to potential tenants’ requirements. However the floorplate splits easily with minimal loss of net internal floor area. We would expect tenants to take full repairing and insuring leases although they may potentially require service charge caps.

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

Retail

The retail element of the building is not part of a wider retail environment with an established rental tone. Hence the scheme tends to be self-generating for evidence. However this said, the rental levels vary widely with no clear tone determinable. This is not unusual in smaller more specialised schemes, where rents are considered globally i.e. the occupancy cost that an occupier is individually willing to pay based on their profitability anticipated from that location. The most recent lettings are set out above with £29.95 per sq ft being achieved at Unit 2A on a new 15 year lease in September 2016. This is in-line with the letting at Principal Place, also a development by Brookfield, and out of an established retail position but under a large new office development, which achieved £29.90 per sq ft. The rent review of unit 7 was agreed at £19.67 per sq ft for a largely lower ground floor unit, showing only a small uplift on the 2012 reviewed rent. This pattern of no significant uplift has been repeated for the last reviews in units 3 and 6 with rental growth relying on contracted fixed uplifts for the leisure centre and units 2B and 2C. We have spoken to CBRE who are negotiating the lease renewal at unit 1B and rent review at unit 4, and in both cases are not confident of a significant uplift in the passing rents. The retail trading environment is currently difficult and prudent asset management will involve retaining tenants where possible, rather than risking voids, which could be lengthy. Consequently we have assumed for the purpose of our valuation that the retail units are rack rented. As lengthy rent free periods are not normally granted for retail units, we have not differentiated between headline and net effective rental values.

5.1.2. Conclusion

We have valued the property using headline rental values as many of the next lease events are relettings. These headline rents assume that after each tenant vacation a Cat A refurbishment is carried out of the tenant space to include new ceilings, lighting, small power, air conditioning equipment and carpets. However we have also had regard to the likely net effective rents achievable on forthcoming rent reviews. These take into account the rent free tenant incentives available to incoming tenants, amortised over the term of the lease, after an allowance for fitting out period, as well as a discount for the age of the original fitout. On a standard 10 year lease of a single tower floor we would expect this net effective discount to run at approximately 70% to 77.5% depending on the age of the original fit out.

5.2. Estimated Rental Value

We are of the opinion that the headline Estimated Rental Value, as at the valuation date, is £37,691671 per annum. We have adopted our opinion of Estimated Rental Value in our valuation. A full breakdown of the ERVs is shown below and included in the tenancy schedule at Appendix 6:

Area Car Rental Value ERV Rate Unit Tenant Name Use (sq ft) Parking (pa) per sq ft / unit Level 35/36 SquarePoint Capital Offices 15,650 £1,095,500 £70.00 LLP Level 34 Flextrade UK Ltd Offices 13,267 £928,690 £70.00

Level 33 Kaye Scholer LLP Offices 12,879 £901,530 £70.00

Level 32 Prembco Holding B.V. Offices 13,044 £906,558 £69.50

Level 31 Seyfarth Shaw UK Offices 13,024 £905,200 £69.50 (LLP) Part Level 30 United Trust Bank Offices 6,579 £450,662 £68.50 Limited Part Level 30 Winston and Strawn Offices 6,037 £413,534 £68.50 Property (London) Limited Level 29 & Winston and Strawn Offices 13,051 £899,859 £68.50 Store RBH Property (London) Store RB2.69 391 £15.00 2.69 Limited

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

Area Car Rental Value ERV Rate Unit Tenant Name Use (sq ft) Parking (pa) per sq ft / unit Level 28, United Trust Bank Offices 12,982 £895,055 £67.50 Store Limited Store RB1.67B 918 £15.00 RB1.67B.J & 2 Car Parking 2 £2,500.00 CPS Level 27 Willkie Farr and Offices 13,010 £878,175 £67.50 Gallagher (UK) LLP Level 26 Willkie Farr and Offices 12,556 £816,140 £65.00 Gallagher (UK) LLP Level 25 Willkie Farr and Offices 12,566 £816,790 £65.00 Gallagher (UK) LLP Level 24 & Cravath Swaine & Offices 12,771 £844,300 £65.00 Store RB2.56 Moore LLP Store RB2.56 944 £15.00 Level 23 & 2 Cravath Swaine & Offices 12,828 £841,320 £65.00 CPS Moore LLP Car Parking 3 £2,500.00 Level 22, Simpson Thacher & Offices 12,800 £856,345 £65.00 Store RB2.30 Bartlett LLP Store RB2.30 1,123 £15.00 & 3 CPS Car Parking 3 £2,500.00 Level 21, Simpson Thacher & Offices 12,784 £855,305 £65.00 Store RB2.30 Bartlett LLP Store RB2.30 1,123 £15.00 & 3 CPS Car Parking 3 £2,500.00 Level 20, Simpson Thacher & Offices 12,755 £853,420 £65.00 Store RB2.30 Bartlett LLP Store RB2.30 1,123 £15.00 & 3 CPS Car Parking 3 £2,500.00 Level 19 Simpson Thacher & Offices 12,312 £800,280 £65.00 Bartlett LLP Level 18 Vacant - Level 18 Offices 12,305 £799,825 £65.00

Level 17 London CityPoint Offices 11,926 £775,190 £65.00 Centre Limited Part 16 North Duane Morris LLP Offices 6,859 £462,982 £67.50 East Part 16 South Vacant - Part 16 South Offices 5,327 £354,246 £66.50 West West - U/O Part 15 West Brookfield Properties Offices 8,060 £543,490 £66.50 (UK RE) Limited Car Parking 3 £2,500.00 Part 15 East Vacant - Part 15 East Offices 4,264 £287,820 £67.50 Level 12 & 14 London CityPoint Offices 16,644 £968,990 £58.75 & 3 CPS Centre Limited Car Parking 3 £2,500.00 Level 11 & 3 London CityPoint Offices 16,001 £927,558 £57.97 CPS Centre Limited Car Parking 3 £2,500.00 Level 10 & 3 London CityPoint Offices 17,486 £969,230 £55.00 CPS Centre Limited Car Parking 3 £2,500.00 Level 9 & 4 London CityPoint Offices 17,748 £986,140 £55.00 CPS Centre Limited Car Parking 4 £2,500.00 Level 8 & 1 Ebiquity Associates Offices 23,950 £1,260,000 £52.50 CPS Limited Car Parking 1 £2,500.00 Level 7 & 3 Morrison & Foerster Offices 40,453 £2,131,283 £52.50 CPS (UK) LLP Car Parking 3 £2,500.00 Level 6 & 5 Mimecast Services Offices 41,311 £2,181,327 £52.50 CPS Limited Car Parking 5 £2,500.00 Level 5 to Simmons & Simmons Offices 151,459 £8,441,995 £51.50 Level 1 LLP Ancillary Space 27,577 £20.00 Car Parking 17 £2,500.00

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

Area Car Rental Value ERV Rate Unit Tenant Name Use (sq ft) Parking (pa) per sq ft / unit Leisure MSCP Wellbeing Retail 32,476 £419,928 £12.93 Centre Limited Unit 1A Wagamama Limited Retail 4,401 £115,000 £26.13

Unit 1B Noble Bars and Diners Retail 1,985 £66,500 £33.50 RB0.60 Limited Unit 2A Drake & Morgan Retail 4,794 £143,600 £29.95 Limited Unit 2B and Gatti's Restaurant Retail 5,275 £100,000 £18.96 2C Limited Car Parking 2 £2,500.00 Unit 3 Pret a Manger Retail 2,377 £122,500 £51.54 (Europe) Limited Unit 4 Lawrence Edward Retail 596 £22,500 £37.75 Weimer Unit 5 MSCP Wellbeing Retail 480 £48,000 £100.00 Limited - sublet to Chop'd Unit 6 Costa Limited Retail 1,368 £77,500 £56.65

Unit 7 (Lwr A3D2 Limited (t/a Retail 11,695 £230,000 £19.67 Gnd) Amber) Unit 8 RB0.96 Notes: Music and Retail 1,455 £53,570 £36.82 Coffee Limited News Kiosk 1 Vacant - News Kiosk Retail 278 £0 £0.00

Coffee Kiosk Costa Limited Retail 87 £18,000 £206.90

RLGO.16 and Ultimate Security Basement 524 £7,860 £15.00 RGL.14 Services Storage B1.94 Cofely Limited Basement 182 £2,730 £15.00 Storage B1.97 Finsbury Enterprises Basement 420 £6,300 £15.00 Storage RB1.79 Ebiquity Associates Basement 110 £1,650 £15.00 Limited Storage RB1.05 Landlord Storage Area Basement 888 £0 £0.00 Storage RB1.85 Vacant - Store RB1.85 Basement 92 £1,380 £15.00 Storage RB1.86 Wagamama Limited Basement 93 £1,395 £15.00 Storage RB1.16 Fabric Solutions Basement 576 £38,304 £66.50 Storage RB1.67A Vacant - RB1.67A Basement 1,833 £27,495 £15.00 Storage RB1.89 Vacant - RB1.89 Basement 401 £6,015 £15.00 Storage RB 2.11 Mimecast Services Basement 442 £6,630 £15.00 Limited Storage RB 2.54A Brookfield Properties Basement 1,530 £22,950 £15.00 (UK RE) Limited Storage RB 2.54B Red Cross Basement 1,447 £21,705 £15.00 Storage RB 2.54C Building Management Basement 2,134 £0 £0.00 Area Storage

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

Area Car Rental Value ERV Rate Unit Tenant Name Use (sq ft) Parking (pa) per sq ft / unit RB 2.53 Chop'd Limited Basement 421 £6,315 £15.00 Storage RB2.57 Fabric Solutions Basement 1,130 £16,950 £15.00 Storage RB2.02 Vacant - RB2.02 Basement 1,459 £21,885 £15.00 Storage RB1.81 Vacant - RB1.81 Basement 118 £1,770 £15.00 Storage Car Parking Vacant Car Spaces Car Parking 29 £0 £0.00 Car Parking Landlord/Disabled Car Parking 10 £0 £0.00 Spaces Car Parking Winston & Strawn Car Parking 2 £5,000 £0.00 Spaces 85 & Property (London) Ltd 87 Unit 2A Seating Drake & Morgan Outdoor Seating £7,500 £0.00 Licence Limited Telecomms AboveNet Comms UK Telecomms £2,000 £0.00 Aparatus Telecomms Aparatus Roof London Stock Roof £20,000 £0.00 Exchange Total 708,954 99 £37,691,671

The ERV used in the valuation equates to £53.17 per sq ft overall. Therefore, we consider the property is reversionary by 23% when comparing the current contracted rent to the ERV. However, some of this reversion is as a result of vacant space. Considering the let space only, our headline ERV shows a reversion of 18% on the full contracted rent.

Our headline ERVs are on the assumption of standard 10 year leases or 10 year leases with tenants’ breaks a the 5th anniversary depending on floor size, drawn on institutionally acceptable, full repairing and insuring terms, subject to five yearly upwards only rent reviews and with the benefit of a rent free period of 12 months per five years term certain. We have also assumed that the offices have been refurbished prior to letting. For the retail units, we have assumed 10 year lease terms with rent free periods of 6 months.

Net Effective Rents

The above ERVs are on a headline basis and in order to assess whether there will be any uplift at upcoming rent reviews we have also assessed the net effective rent.

Our base net effective rent is on the assumption of a lease term of 10 years with a rent free period of 24 months of which 4 months would be for fit-out. This gives an incentive period of 20 months, giving a net effective rate of 80% of headline. We have applied this to all leases that have completed within the past 5 years.

However, in order to reflect the condition of the accommodation on the longer let space, where leases commenced 5 to 10 years ago we have increased the discount to give a net effective rate of 77.5% of headline and for the leases that commenced in 2000, we have taken a net effective rate of 70% of headline. This is to allow for the fact that this will be an older specification so the discount to headline will be greater.

For the Simmons and Simmons lease, this is reviewed as a whole on the assumption of a 15 year lease term. On this basis we have assumed that the rent free period would be 36 months with a 15 month fit-out period, giving an incentive period of 21 months. This gives a net effective rate of 82% of headline. However, as with the other leases, to reflect the condition of the space, which was let in 2000, we have increased the discount to give a net effective level of 72% of headline.

Based on our net effective assumptions, of the tenancies that have rent reviews prior to expiry, none are reversionary on a net effective basis at the forthcoming reviews.

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

5.3. Market Rent

This is defined by the RICS Valuation – Professional Standards 2014 as: “The estimated amount for which a property would be leased on the valuation date between a willing lessor and a willing lessee on appropriate lease terms in an arm’s length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion.”

Market Rent is interpreted as the headline rent on the basis of the assumed lease terms set out below. It is generally not suitable for assessing the rent likely at a rent review.

Our ERVs given above are on a headline basis so are the equivalent of the Market Rent. We are therefore of the opinion that the Market Rent, as at the valuation date, is £37,691,671 per annum. This is on the same assumptions as given in our ERV.

5.4. Investment Comparables and Investment Considerations

5.4.1. Marketing Background

We understand that the property was purchased in 2016 by the borrower for £560m.

5.4.2. Investment Comparables

In arriving at our opinion of Market Value in respect of this property, we have had regard to a range of investment transactions as detailed below. It should be noted that there is limited sales evidence of directly comparable buildings, i.e. such large lots of a similar age with a mid-term WAULT. We have, however, relied on the evidence that is available and made appropriate adjustments.

Alban Gate, 125 London Wall, EC2 Date Currently available Date of Construction 1992. Comprehensively off-market refurbished in 2015 Tenure Long leasehold Description Grade A office building arranged over three basement levels, ground and 17 upper floors

Price Quoting £350 million Price psf £916 NIY 5.13% Size 382,223 sq ft Tenancy Single let to JP Rent Passing £18,260,950 pa Morgan for a further (£47.78 psf overall) 9 years

■ Long leasehold tenure with 115 years remaining at a peppercorn rent; ■ To the north west of the City core, circa 300m to the south west of Moorgate station which will be served by the Elizabeth line (Crossrail) from late 2018 and circa 600m from Bank Underground station; ■ Comprises two buildings, the main building being 125 London Wall, and the annex at 130 London Wall; ■ Single let to a strong covenant; ■ The passing rent reflects £47.78 per sq ft overall and is considered to be reversionary on a headline basis for such a location within the City core; ■ This is in a poorer location and is a poorer quality, older building. However, the lease term is longer than at Citypoint and the tenant would be considered to offer strong income security. We would expect the subject property to command a lower initial yield on a topped up basis, although the longer WAULT at Alban Gate would offset some of the difference. It should also be kept in mind that this is quoting terms only and the property has not sold at this level.

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

30 Gresham Street, EC2 Date Under offer Date of Construction 2003 Tenure Long leasehold from Description Grade A building arranged the Mercers’ over two basement levels, Company providing lower ground, ground and approximately 160 eight upper floors and a years unexpired with number of terraces, a fixed head rent providing views across payable of £10,000 the City of London. 1.5 per annum. acre island site Price c. £425 million (1.5% Price psf £1,053 purchaser’s costs) NIY 4.25% Size 403,639 sq ft

Tenancy 10 years to expiry Rent Passing £18,322,320.50 pa (£45.39 and 9.7 years to per sq ft overall) breaks

■ Flexible office floor plates ranging from 25,581 sq ft to 50,090 sq ft, some of the largest in Central London; ■ 2.7 m typical finished floor to ceiling heights, 3.0 m finished floor to ceiling heights on levels 2 and 3; four pipe fan coil air conditioning, including chilled beams on levels 2 and 3, ‘Very Good’ BREEAM rating, fully accessible raised floors (150mm void), enhanced 300mm accessible raised floors on levels 2 and 3; ■ Metal tiled suspended ceilings, typical occupancy level of 1 person/10m2 with enhanced levels of 1 person/7m2 on levels 2 and 3; ■ More recently the part lower ground, 4th-8th floors have been refurbished to an enhanced specification to include an internal staircase from 4th-8th floors; ■ Opportunity to capture rental growth at the Commerzbank rent review in September 2018 currently passing off £43.51 per sq ft and accounting for approximately 71% of the total income; ■ Contains three prominent retail units arranged over the part lower ground, ground and first floors providing a total of approximately 14,886 sq ft; ■ There are also 48 car parking spaces located over two basement levels accessed via a loading bay and two vehicle lifts on Lawrence Lane; ■ This building has a longer unexpired term than Citypoint at 9.7 years to break and is also located in a stronger prime position within the City core. It is also a 2003 purpose-built structure that retains a contemporary image, rather than a 1960’s remodelling as Citypoint. Consequently, we would expect Citypoint to achieve a higher net initial yield on a topped up basis to reflect its greater age, shorter WAULT and poorer position.

Aldgate House, 33 Aldgate High Street, EC3 Date September 2018 Date of Construction 1970s substantially refurbished in 2008 Tenure Freehold Description Grade A office accommodation over two basements, ground, mezzanine and 8 upper floors

Price £183 million (1.8% Price psf £864 costs)

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

Aldgate House, 33 Aldgate High Street, EC3 NIY 4.93% Size 211,855 sq ft Tenancy Multi-let to four office Rent Passing £9,247,572 per annum tenants and one retail (£43.65 per sq ft overall) tenant including LCH, ISG, Taboola Europe and Transperfect Translations. WAULT 7.4 years to expiries 5.4 years to breaks

■ Originally constructed in the 1970s the building has undergone significant refurbishment in the past decade including an extension of the upper floors and new cladding system installed in 2008; ■ Typical floorplates are 26,000 sq ft and benefit from excellent floor to ceiling heights and full flexibility given the rectangular nature of the floorplates and the central core arrangement; ■ Being situated on an island site, the property benefits from excellent levels of natural light on all four elevations and views from the full floor-to ceiling glazing on all elevations; ■ Most recently the 1st, 2nd and 4th floors have been extensively refurbished to include feature exposed concrete columns, raft ceilings and exposed steel trusses, new 200mm raised floors and new mechanical and electrical services systems with an anticipated BREEAM rating of Very Good; ■ The double-height reception area has also been extensively remodelled and a tenant business lounge has been added; ■ The 4th floor is currently undergoing a comprehensive refurbishment and the vendor provided a 24 month rent guarantee equivalent to £1,453,210 per annum equating to £55.00 per sq ft (£592 per sq m). In addition there are 2 available car spaces, the vendor provided a 24 month rent guarantee equivalent to £6,000 per annum, reflecting £3,000 per space; ■ This property is a smaller lot size than Citypoint, but is otherwise similar in that it has a WAULT of 5.4 years to breaks and the passing rent is reversionary on a headline basis. Whilst Aldgate House has a weaker location, being on the far eastern edge of the City core, it has achieved similar rental levels to Citypoint, with £51.69 per sq ft achieved in September 2017 on level 7. We consider that any discount required by the significantly larger lot size will be equalised by the more multilet nature of Citypoint, giving more active management opportunities and the possibility of smoothing the cashflow. ■ In conclusion, we feel that a similar level of initial yield should be achievable on Citypoint on a topped up basis.

Sixty London, 60 Holborn Viaduct, London EC4 Date September 2018 Date of Construction 2013 Tenure Freehold Description Grade A office accommodation over basement, lower ground, ground and eight upper floors Price £321.3 million (1.80% Price psf £1,359 costs) NIY 4.00% Size 236,422 sq ft Tenancy Offices let to Amazon Rent Passing Circa £13,100,000 with 10 years to lease (£55.41 per sq ft overall) expiry. Five retail units let with unexpired terms of between circa five and 20 years

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

Sixty London, 60 Holborn Viaduct, London EC4 ■ Freehold tenure; ■ Located close to the boundary of City Midtown and the western edge of the City. Circa 200m to the north of City Thameslink station, 300m to the south of Farringdon station which will be served by the Elizabeth Line (Crossrail) from late 2019 and circa 500m to the north west of St Paul’s Underground station; ■ Comprises 220,769 sq ft of office and ancillary accommodation over basement, ground, mezzanine and nine upper floors. Ground floor retail totals 15,653 sq ft; ■ The floors are rhomboid in shape with a central main service core. There are terraces on the fourth, fifth, and seventh to ninth floors; ■ Sold by Hines Europe Limited to Norges Real Estate Management; ■ Amazon took a 15 year lease on the office floors expiring on 16 September 2028. The rent is subject to annual CPI linked increases with a minimum annual uplift of 1% and a maximum of 4%. The next increase is due on 17 September 2018; ■ The five ground floor retail units produce £616,000 in rent per annum, equating to £37.27 per sq ft overall; ■ We understand that the price paid was considered to be strong by the wider market; ■ Smaller than the subject property; ■ Longer unexpired term than that at the subject property; ■ This is a smaller asset than Citypoint, let for a longer term to a strong covenant and is more modern building. The lease also contains CPI rental uplifts. The location is less core but this part of Midtown has benefitted from its proximity to the future Crossrail services at Farringdon station. Taking these positives into account, this was a particularly attractive investment and we would expect a significantly higher yield on a topped up basis for the subject property.

Vintners Place, 68 Upper Thames Street, EC4 Date August 2018 Date of Construction 1989 Tenure Leasehold. 121 years Description Grade A office, retail unexpired, the headrent and ancillary is calculated as 7.5% of accommodation rents receivable or arranged around a £1,000,000 pa, central atrium, over whichever is the higher. basement,

The current headrent is ground and seven £1,000,000 pa upper levels Price £167 million (1.8% Price psf £627 purchaser’s costs) NIY 5.96% Size 266,334 sq ft Tenancy Multi-let to 10 office Rent Passing £11,135,131 per tenants including: annum (£41.81 per sq Jefferies Group, ft) Sumitomo Corporation, Miki Travel. WAULT 3.1 years to break and 5 years to expiry

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

Vintners Place, 68 Upper Thames Street, EC4 ■ The property benefits from excellent natural light and views southwards to the River Thames and large floorplates up to 48,575 sq ft. In addition Vintners Place incorporates Thames House, with a Grade II listed façade to the east; ■ Vintners Place provides tenants with a high level of on-site amenity including 27 car parking spaces, a fitness centre (incorporating a swimming pool), coffee shop, a communal business lounge and storage facilities for 136 bicycles; ■ The building has recently undergone a refurbishment programme including the remodelling of the reception and ground floor; ■ The four largest office tenants, Jefferies International Limited, Sumitomo Corporation Europe Limited, Miki Travel Limited and Getco Europe Limited account for 80% of the income; ■ The property is a leasehold interest with effectively a 9% gearing which will negatively impact on the yield that was achieved, compared to the freehold interest of Citypoint. Citypoint is also in a stronger location than Vintners Place, despite its river views, has a longer WAULT and was refurbished more recently. Taking these variables into account, we consider that a lower initial yield should be achievable at Citypoint on a topped up basis, even bearing in mind its larger lot size.

Fleet Building, 70 Farringdon Street, London EC4 Date August 2018 Date of Construction Under construction Tenure Freehold Description Grade A office accommodation over basement, lower ground, ground and nine upper floors Price £1.165 billion Price psf £1,409 NIY 4.15% Size 827,010 sq ft Tenancy Single let to Goldman Rent Passing £49,200,000 Sachs. 25 years to expiry (£59.49 per sq ft and 20 years to break overall) option

■ Freehold tenure; ■ Located at the boundary of City Midtown and the western edge of the City. Circa 250m to the north of City Thameslink station, 400m to the south of Farringdon station which will be served by the Elizabeth Line (Crossrail) from late 2018 and circa 500m to the north west of St Paul’s Underground station; ■ Development by Goldman Sachs for their own occupation, due to complete in Q4 2018; ■ The new building will provide Grade A office accommodation over basement, lower ground, ground and nine upper floors, to a BREEAM Excellent standard; ■ The lease term to Goldman Sachs is understood to be for 25 years, with a tenant’s break option after 20 years; ■ Five yearly upwards only open market rent reviews. The first review is subject to a minimum uplift of 10%, which would take the running yield to a minimum of 4.56%; ■ Larger than the subject property; ■ Longer unexpired term certain to that at the subject property; ■ The is a less desirable location and is a particularly large lot size. However, the new build and the long term income to Goldman Sachs makes it a trophy asset which will have put downward pressure on the yield. As such, we would expect a yield discount to be applied to Citypoint to reflect the older building and shorter WAULT.

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

Ropemaker Place, 25 Ropemaker Street, EC2 Date June 2018 Date of 2009 Construction Tenure Freehold Description Grade A office and retail building arranged over basement, ground and 20 upper floors Price £650 million Price psf £1,081 NIY 4.60% Size 601,260 sq ft Tenancy Multi-let with a WAULT of Rent Passing £31,000,000 pa 10.6 years to expiries and (£50.89 per sq ft overall) 8.6 years to breaks

■ Freehold tenure; ■ Located towards the northern edge of the City core, circa 200m to the north west of Moorgate station which will be served by the Elizabeth Line (Crossrail) from the end of 2018; ■ Developed in 2009 by British Land; ■ Similar lot size to the subject property; ■ Has a longer unexpired term certain than the subject property; ■ Purchased by Singaporean investor Ho Bee Land. The quoting price had been £707m, reflecting a net initial yield of 4.25%; ■ Ropemaker Place lies immediately to the north of the subject property so is very comparable in terms of location. It is also in a similar lot size bracket. However, it is a more modern building and has a longer WAULT. We would therefore expect a yield discount at the subject property.

70 Mark Lane, EC3 Date June 2018 Date of Construction 2014 Tenure Long leasehold. 148 Description Grade A office and retail years unexpired at building arranged over 10% gearing basement, ground and 15 upper floors Price £200.5 million (1.8% Price psf £1,106 psf purchaser’s costs) NIY 4.62% Size 181,223 sq ft Tenancy Multi-let to 3 office Rent Passing £10,468,256 total rent tenants and 4 retail (£57.76 per sq ft) tenants with a WAULT of circa 11.5 years to expiries and 8.5 years to break options

■ Occupies an island site towards the eastern fringe of the City circa 100m to the west of Fenchurch Street station, 300m to the north west of Tower Hill Underground station and 400m to the north east of Monument Underground station; ■ The building features ‘winter gardens’ on six upper levels and external terraces on four upper floors; ■ Smaller in size than the subject property; ■ Has a longer unexpired term than the subject property;

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

■ The location of 70 Mark Lane is less core than the subject property, although it does sit close to the tower cluster, and it is held leasehold. However, this is a more modern building let for a longer term and is a smaller lot size. Taking these issues into account, we would expect Citypoint to achieve a higher initial yield if sold on a topped up basis.

5 Broadgate, London EC2 Date June 2018 Date of Construction 2015 Tenure Freehold Description Grade A office and retail building arranged over ground and 11 upper floors Price £1 billion Price psf £1,408

NIY 3.95% (1.80% Size 710,200 sq ft purchasers’ costs) Tenancy Single let to UBS with Rent Passing £40,500,000 pa an unexpired term of (£57.03 per sq ft overall) 16.2 years. RPI linked rent reviews

■ Freehold tenure; ■ Sold by its developers British Land and GIC to a subsidiary of Hong Kong investor, CK Asset Holdings, formerly known as Cheung Kong; ■ Located on the Broadgate Estate, the largest office estate within the City, and is adjacent to Liverpool Street station which will be served by the Elizabeth Line (Crossrail) from late 2019; ■ Larger than the subject property; ■ The unexpired term to UBS, a strong covenant, is longer than the WAULT at the subject property and the UBS lease contains five yearly RPI linked rent reviews; ■ As with the Fleet Building, this is a very large asset let to a strong covenant for a long term, with the lease including indexed linked rent reviews. It is also in a core City location close to Liverpool Street station. These characteristics would make it a desirable investment, particularly for overseas investors looking for long term, secure income. Allowing for the age of the subject property and the shorter WAULT, we would expect a discount on the yield from the level achieved on this sale.

Cannon Bridge House (The River Building and The Atrium Building), Dowgate Hill, London EC4 Date March 2018 Date of Construction 1991. Recently comprehensively refurbished in part Tenure Long Leasehold Description Grade A office building arranged over basement, ground and six upper floors £248 million £868 Price Price psf NIY 5.18% Size 286,595 sq ft

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

Cannon Bridge House (The River Building and The Atrium Building), Dowgate Hill, London EC4 Tenancy Multi-let to seven Rent Passing £13,719,995 pa office tenants. £45.96 psf overall WAULT of 9.4 years to breaks and 10.7 years to expiries ■ Cannon Bridge House is held on a 250 year ground lease from Network Rail from 11th August 2000 at a peppercorn rent; ■ The property is constructed on a steel transfer deck directly above Cannon Street mainline railway and London Underground station. The River Building has recently undergone a comprehensive refurbishment costing £27.3m (circa £300 per sq ft) and comprises approximately 91,698 sq ft of office and ancillary accommodation arranged over basement, ground, first and second floors arranged around a central atrium; ■ The building contains the City’s largest roof terrace of circa one acre with views across London and the River Thames; ■ The Atrium Building comprises 194,897 sq ft of office accommodation arranged over first to sixth floors, with escalators providing direct access from the ground floor reception to the atrium base; ■ The property is fully occupied and multi let to seven office tenants including Deliveroo, Natixis and IG Group Holdings Plc. WAULT of 9.4 years to breaks and 10.7 years to expiry, which is shorter than that at the subject property once it is complete; ■ Similar size than the subject property; ■ This property sits in a central City location but is held long leasehold and the location over the station makes future redevelopment more problematic, which can deter some investors. The subject property is a freehold asset and we would expect it to achieve a lower yield although the larger lot size and shorter WAULT will offset some of the difference.

Riverbank House, 2 Swan Lane, London EC4 Date January 2018 Date of Construction 2010 Tenure Long Leasehold (5% Description Grade A office building of rents receivable) arranged over basement, lower ground, ground and nine upper floors Price £360 million (1.80% Price psf £1,109 psf purchaser’s costs) NIY 4.50% Size 324,720 sq ft Tenancy Single let to ED&F Rent Passing £16,500,000 total rent Man with 18 years unexpired £50.81 psf overall ■ Held long leasehold with 194 years unexpired geared to 5% of rents receivable; ■ Developed in 2010 on an island site to the south of Upper Thames Street with views over the River Thames; ■ Located on the edge of the City core circa 200m to the south east of Cannon Street station and 200m to the south of Monument Underground station; ■ Long let with 18 years unexpired to ED&F Man, longer than the WAULT at the subject property; ■ Smaller than the subject property; ■ The location of Riverbank House is less core then the subject property although it does benefit from River views. This is also a newer building and let for a much longer term. Therefore, despite Citypoint being a freehold asset, we would still expect a discount to the yield achieved on this sale.

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

240 Blackfriars Road, London SE1 Date December 2017 Date of Construction 2014 Tenure Freehold Description Grade A office, retail and residential building arranged over ground and 19 upper floors Price £266.5 million Price psf £1,129 NIY Circa 3.95% Size 235,968 sq ft

Tenancy Multi-let to tenants Rent Passing £11,211,707 per annum including UBM, Lonely Planet, £47.51 per sq ft overall Palmer Flatt and The Coffee Works Project. WAULT of 10.2 years to expiries ■ Freehold tenure; ■ Located circa 250m to the north of Southwark Underground station, 400m to the north east of Waterloo East station and 600m to the north east of Waterloo station, in a non-core Southbank location. It is also circa 500m to the south of Blackfriars Station, across Blackfriars Bridge; ■ Mixed-use building developed in 2014 by Great Portland Estates to a BREEAM ‘Excellent’ standard, with floorplates extending to 12,000 sq ft; ■ Fully let to tenants including UBM, SAP (UK), Boodle Hatfield, Ramboll UK and Pret a Manger with a WAULT of 10.2 years to expiries. Includes 10 luxury residential flats which are sold off on long leases; ■ Smaller than the subject property; ■ Considered to be reversionary with the first round of rent reviews due in 2019 and 2020, hence the low net initial yield achieved; ■ This is in a poorer location than Citypoint but is a more modern building and is let for a longer term. The reversionary potential also put downward pressure on the yield. We would therefore expect a significant discount on the yield for Citypoint.

200 Aldersgate Street, EC1 Date December 2017 Date of Construction Built in 1992, refurbished in 2011 Tenure Long Leasehold Description Grade A office accommodation with ground floor retail Price £320m Price psf £719 psf NIY 4.55% Size 445,265 sq ft Tenancy Multi-let to 26 Rent Passing £16,376,847 per annum occupation tenants £36.78 per sq ft overall for a WAULT of c. 8.2 years to expiries and 7.4 years to breaks

■ Completed during December 2017; ■ Held long leasehold with approximately 124 years unexpired from the City Corporation, with 10.63% gearing, subject to a minimum rent of £1,500,000 per annum;

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

■ Less core location to that of the subject property but well placed to benefit from Crossrail services at Farringdon Station; ■ Older building having been constructed in 1992 but fully refurbished internally in 2011; ■ Smaller lot size; ■ Slightly longer WAULT; ■ Considered reversionary based upon the current passing rent; ■ This property is in a more fringe location and is held leasehold with a high gearing. The building is also older than the subject property (taking into account when Citypoint was redeveloped) although has been more recently refurbished. However, the WAULT is slightly longer and with the passing rent at only £36.78 per sq ft overall, there is good reversionary potential. On balance, we therefore consider that the subject property would transact at a higher yield.

20 Fenchurch Street, EC3 (Walkie Talkie) Date August 2017 Date of Construction 2014 Tenure Freehold Description Iconic 37-storey office tower designed by Raphael Vinoly, floor plate sizes of 14,700 sq ft to 29,400 sq ft, with a sky garden, bars and restaurants on the top 3 floors. Price £1.2825 bn Price psf £1,883 psf NIY 3.4% Size 688,500 sq ft Tenancy Fully let with an Rent Passing Confidential average of 13 years WAULT. Tenants include RSA, Liberty Syndicates, Tokyo Marine, DWF.

■ Land Securities and Canary Wharf Group sold their respective 50% stakes in the building for £641.25m each. The price reflects a net initial yield of 3.4%. LKK, a property arm of the Hong Kong Oyster Sauce manufacturer, pre-empted the marketing campaign and placed the building under offer; ■ The transaction represents a record for a single UK asset, surpassing the £1.175bn paid by the Qatar Investment Authority to acquire the HSBC Tower in Canary Wharf in December 2014; ■ Land Securities and Canary Wharf Group completed the property in 2014. The iconic 37-storey office tower provides 688,500 sq ft of space and is 100% leased to investment grade tenants with an average of 13 years of income across the building. Maximum efficiency density for all services of 1 person per 8 sq m; ■ Designed by Raphael Vinoly, the property also features the Sky Garden which has quickly become a popular visitor attraction in London; ■ Off-market transaction widely viewed as overpaid, driven more by currency fluctuation and need to export capital. The subject property is an older asset with a shorter WAULT and would not be considered to have the same iconic status. We would therefore expect a significant discount from this yield.

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

The Leadenhall Building, 122 Leadenhall Street EC3 Date March 2017 Date of Construction 2014 Tenure Freehold Description Designed by Richard Rogers and developed by British Land/Oxford Properties, height of 225 m (737 ft) over 45 floors. Price £1.150bn Price psf £1,907 psf NIY 3.44% (SPV allows for Size 603,000 sq ft purchaser’s costs of 1.8%) Tenancy Multi-let, inc: Aon, Rent Passing Believed to be in the Amlin and OMERS. range of £41,000,000 WAULT of 10 years to breaks and 13 years to expiries

■ Freehold; ■ Situated in the City core, occupying a site opposite the Lloyd’s Building; ■ Iconic building designed by Richard Rogers and developed by British Land and Oxford Properties. The building reaches to a height of 225 m (737 ft) and is arranged over 45 floors; ■ Its distinctive shape is a result of the need to accommodate the St. Paul’s Cathedral sightlines from Fleet Street and the west; ■ A BREEAM “Excellent” rating; ■ Fully let; with a WAULT of 10 years to breaks; ■ This new, landmark tower development has achieved benchmark rents for the City, with over £100 per sq ft on the final lettings of the small top floors. Some of the pre-lets and early lettings are now reversionary although the first round of reviews are not due until 2019/2020;

■ The Leadenhall Building is an iconic City core building and its sale to CC Land, a Chinese manufacturing company, was a function of favourable exchange rates and the desire to export capital, rather than a pure property fundamentals investment decision; ■ Citypoint is an older asset with a shorter WAULT and would not be considered to have the same iconic status. We would therefore expect a significant discount from this yield.

5.4.3. Commentary

The UK’s vote to leave the EU undoubtedly led to a slowdown in the central London investment market, although it is generally considered that the market had been cooling prior to that, following a very strong 2014 and 2015. Investment volumes have, however, remained strong following a drop immediately following the referendum result in June 2016. Turnover in the City during 2017 totalled £10.6 billion, 42% ahead of the 10 year average and the second highest annual total on record after 2011. It is worth noting, however, that 2017 saw the sale of two of the largest assets in the UK: the Leadenhall Building in Q1 for £1.15 billion and 20 Fenchurch Street in Q3 for £1.3 billion, with these two sales alone accounting for circa 23% of the full year total. Investment volumes slowed in Q1 2018, reaching £1.4 billion in 18 transactions, a 51% fall on the strong turnover recorded in the final quarter of 2017. Q2 was, however, a stronger quarter with £3.6 billion traded in 31 transactions, 60% up on the equivalent period last year and the strongest quarter since Q4 2015. Q3 has fallen back to a total of £2.6 billion across 22

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018 transactions, a 29% fall on Q2, but still ahead of the 10 year average of £2 billion. Year to date turnover is now at £7.7 billion, 7% ahead of the equivalent period in 2017. International investors continue to dominate, with overseas purchasers involved in nine of the 10 largest transactions. There has been a diverse buyer profile from countries including South Korea, Hong Kong, Norway, Singapore, Germany and South Africa. UK buyers have also been active with seven transactions over the quarter. Despite the strong figures, there is a degree of uncertainty in the market and investors have become less willing to take on risk, particularly at the larger end of the market, and demand has focused on well-let assets which would be regarded as defensive, and on assets in the more core locations. Levels of demand for asset management, development and refurbishment opportunities in central London are more subdued than before the referendum, with a significantly thinner pool of investors. Prime yields do, however, remain strong at 4.25% for all lot sizes in the City. The majority of demand for large, prime, well let assets in the City is presently from foreign investors who look at London for a variety of reasons, namely it is a world class city seen as a safe haven, with a stable political and legal constitution. It also provides an opportunity for wealth diversification both in terms of asset or business type and geography. Whilst the devaluation of sterling following the EU referendum and the availability of cheap debt in their own domestic markets made pricing in the UK more attractive to overseas purchasers, the recent strengthening of the pound has now diminished much of the currency benefit which we have seen in the last few years.

Secondary yields are softening in response to investors becoming more discerning on tenure and lease length, with the majority of overseas investors chasing prime trophy freehold assets. We expect this divergence between prime and secondary to continue to grow over the remainder of 2018.

The key drivers of value at the subject property are: ■ Held freehold.

■ Located in the core of the City in an area that will be enhanced in the coming years with the development of new buildings such as Tenter House and 21 Moorfields. Transport links are already good, with a number of mainline and underground stations nearby and this will be enhanced from late 2019 when the Elizabeth Line (Crossrail) starts running and will be accessible via Moorgate Station.

■ The property is a landmark tower which is very visible on the City skyline, given that there are few other tall buildings in the immediate vicinity. The accommodation is finished to a good, Grade A standard, albeit it is now 18 years since the redevelopment.

■ We have seen over the past few years that iconic towers in the City can command premium pricing from an international audience. This was demonstrated by the sales of 30 St Mary Axe (the Gherkin), the Leadenhall Building and 20 Fenchurch Street. However, these are more modern buildings and recognised as some of the most iconic structures in the UK. We do not believe that Citypoint would fall into that category but it could still benefit from some of the interest in towers from overseas purchasers.

■ The property is well let with low vacancy levels. However, the income is fairly short term with a WAULT of circa 5 years to lease breaks and this will impact on an investor’s perception, with much of the demand from overseas’ purchasers currently for long let, defensive stock.

■ That said, the rent is reversionary on a headline basis so lease expiries give the opportunity to re-let at enhanced levels. This gives the potential to grow the income over the medium term. The property is also very multi-let with only two tenants accounting for more than 10% of the income. This ‘granularity’ spreads the covenant risk across a greater number of occupiers and also reduces the risk of having the building become largely vacant if one or two tenants vacate.

Considering the above, we are of the opinion that the property would meet the investment criteria of a range of potential purchasers. Demand would most likely be from overseas, potentially from Japan, South Korea or Hong Kong and there is also the possibility that some UK life funds would consider an asset such as this. However, the large lot size, mid-term WAULT

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018 and the need for active management to maintain and enhance the leasing profile will not meet the criteria of many of the current requirements. This will limit the pool of purchasers and we would expect serious interest to be from a relatively small group.

The transactions above show a yield range of 3.40% to 5.96% for a variety of large lots in the City. Ignoring the two 2017 tower sales (Leadenhall Building and 20 Fenchurch Street), the lowest yields were achieved on the sales of 5 Broadgate and 240 Blackfriars, two quite different assets. 240 Blackfriars is a modern tower building located on the Southbank and had a WAULT of 10.2 years at the time of sale. This is a good quality building although the location is slightly fringe. The low yield was, however, driven by the reversionary potential. The building completed in 2014 and there were a number of pre-lets signed prior to this. Since then, Southbank rents have moved on significantly so there is a good potential to increase the income at the first round of rent reviews in 2019. The low yield reflected this.

5 Broadgate is a one of the largest single assets in the City, selling for £1 billion and achieving a yield of 3.95%. This asset was particularly attractive to the overseas market where purchasers are currently seeking long term defensive stock. With 16.2 years to UBS in a new building and with RPI linked rent reviews, this met many of the requirements. This is also the case for the Fleet Building which achieved £1.165 billion and a yield of 4.15%. Again, this is a new building and will be let for 25 years (with a break at the 20th anniversary) to Goldman Sachs with a fixed rental uplift in year five, taking the running yield to 4.56%.

The sales of 5 Broadgate and the Fleet Building show that there is ongoing demand for large lot sizes in the City and that investors are willing to pay strong prices for the right building. However, Citypoint is an older building and has a shorter WAULT so we would not expect it to achieve similar yields.

At the upper end of the yield range, Alban Gate is currently available at 5.13% and Cannon Bridge House sold 5.18%. These are both older buildings which have been refurbished and are both now let for reasonable lease terms of 9 years and 9.4 years respectively. They are also both held long leasehold. In terms of the underlying investment fundamentals, Citypoint would be more appealing to investors in terms of its freehold ownership and its location, with Alban Gate being located over London Wall and Cannon Bridge House over Cannon Street Station making future redevelopment of both more problematic. However, Citypoint is more than double the lot size and there is a thinner pool of investors at this scale, and the WAULT is shorter. We therefore believe that the subject property could command a lower yield but the differential may not be that significant.

Vintners Place sold in August 2018 for £167 million showing a NIY of 5.96%. This yield profile was adversely affected by the property’s location on Upper Thames Street, an unattractive busy road on the southern edge of the City core. Furthermore the building is almost 30 years old and will require heavy capital expenditure in the short to medium term. The WAULT of 3.1 years to breaks has required an adjustment in pricing downwards as has the leasehold nature of the tenure. Citypoint outperforms this property on each variable and consequently we would expect a keener NIY to be achievable on a topped up basis.

Ropemaker Place sits immediately to the north of Citypoint and sold for £650 million, reflecting an initial yield of 4.6%. We believe that this is a good benchmark as the lot size is similar and both properties are freehold. However, Ropemaker Place is a more modern building and has a longer WAULT. We would therefore expect to see a higher yield at Citypoint.

As shown by the comparables, there remains good demand for assets in the City and larger lots will sell, although the market may be quite limited. In 2017 we did also see the sale of two of the new towers in the City: the Leadenhall Building sold in March 2017 for £1.15 billion (initial yield of 3.44%) and 20 Fenchurch Street sold in August 2017 for £1.2825 billion (initial yield of 3.4%). Both these sales exceeded the expectations of the market and demonstrated that for iconic buildings such as these, certain purchasers were willing to, perhaps, make irrational bids based on sentiment rather than the investment fundamentals. These are, however, exceptional new towers with international profiles and there is a feeling in the market that if a similar tower came to the market in the current environment, it may not achieve the same level.

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

Citypoint does not fall into the same category as the Leadenhall Building and 20 Fenchurch Street so we would not expect the same level of premium pricing. It is, however, a landmark building in that part of the City which may appeal to some purchasers and may benefit from some level of the premium pricing that we have witnessed with the recent tower sales.

Looking at the sales above, we do not believe that Citypoint would achieve yields at the lower end of the range which were for more modern buildings with longer WAULTs or with more immediate reversionary potential. The lot size, coupled with the age of the building and the circa 5 year WAULT will be major influencing factors in the pricing and, as such, we believe that the yield would be towards the upper end of the range demonstrated in the comparables. If the building were sold, it is likely that the vendor would top-up the income from the ongoing rent free periods and provide a rental guarantee on the vacant floors. As stated above, there is limited evidence of similar buildings selling but, from the evidence available, on a topped-up basis, we believe that the appropriate yield would lie in the range of 5%, potentially just below, although we do not believe that 4.75% would be achievable.

5.5. Valuation Approach

In arriving at our opinion of value we have principally used the All Risks Yield Approach.

5.5.1. Market Value – All Risks Yield Approach

We have valued the property adopting the traditional initial yield valuation approach as this investment essentially provides income and an income growth opportunity to the purchaser. This method involves the capitalisation of the rental income or forecast income at an appropriate capitalisation rate calculated with reference to investment transactions within the market.

As mentioned above, if the property were brought to the market, the vendor would likely top-up the income from the rent free periods and provide rental guarantees on the vacant floors. We have therefore taken this approach, capitalising the top- up income then deducting the cost of the top-up from the valuation.

Our valuation is based on the following:

Topped-up Rent: £32,105,674 per annum We have assumed that the contracted rent free periods and half rent periods (both existing and future) would be topped up to the full contracted rent and that two year rental guarantees would be provided on the vacant office floors, along with cover for empty rates, non-recoverable service charge and letting fees. We have not allowed for any top-ups on the vacant stores or car parking. We have also made an allowance to cover the future payment of the remaining 50% of the contribution towards the tenant’s fit out on level 26. Top-up Cost: Rent free and half-rent cover £9,810,609 2 years rental guarantees on vacant space £2,887,732 Empty property rates on vacant floors £1,722,600 Non-recoverable service charge on vacant floors £907,466 Letting fees on vacant floors £216,284 Level 26 fit-out contribution (50% still to pay) £502,240 Total £16,046,931 Yield: As discussed above, we believe that the appropriate yield on a top-up basis is in the region of 5%. Market Value: £600,000,000 (on the basis of purchaser’s costs of 6.8%)

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

As a cross check, we have also modelled the property on the true cashflow, making allowances for voids and associated costs as follows:

Current Net Rent: £25,319,643 per annum Current Voids: 12 months letting 12 months’ rent free Expiry Voids: 6 months letting 6 months’ rent free We have allowed for expiry voids on all tenancies with less than 5 years remaining on the lease, to the earliest of break or expiry. A large number of the leases fall within this category and it is unlikely that all will vacate. In order to reflect this, the voids adopt are effectively half rates of what we would consider to be market norms. Capital Expenditure: Refurbishment – on all office expiry voids £50 per sq ft Letting Fees on New Lettings: 15% Non-recoverable Void Costs: Rates – Office £25.00 per sq ft Rates – Retail £32.50 per sq ft Service Charge – Offices £13.17 per sq ft Service Charge – Retail £6.50 per sq ft Approach: Based on the value of £600 million calculated on a topped-up basis, the yield profile on the true cashflow is shown below: Initial Yield: 3.95% Running Yield: 4.02% 31/10/2018 4.22% 25/12/2018 4.50% 10/06/2019 Equivalent Yield: 5.37% Reversionary Yield: 5.88% Capital Value per sq ft: £846 per sq ft (on the basis of purchaser’s costs of 6.8%)

On the true cashflow basis, the initial yield does look low. However, this is as a result of ongoing rent free periods and vacancies in the building. As shown by the running yield, as the rent free periods burn off, the yield increases to 4.5% by June of 2019. This results in an equivalent yield of 5.37% which is in line with our expectations. The capital value of £846 per sq ft is also considered appropriate when compared to the comparable sales where more modern assets are achieving over £1,000 per sq ft.

5.5.2. Market Value on the Special Assumption of Vacant Possession

The property is assumed to be in the same physical state as in currently exists. We have assumed that the current tenants would not be in the market.

We have based our vacant possession value on the following:

ERV: £37,691,671 per sq ft Voids: Offices and ancillary 24 months Retail 9 months Gym 9 months

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

Rent Free Periods: Offices and ancillary 18 months The rent free on the office reflects that we would expect the buildng to let on a mix of 5 and 10 year leases, with

rent free periods of 12 and 24 months respectively. We have therefore taken an average rate Retail 6 months Gym 12 months Capital Expenditure: £75 per sq ft on the office areas Letting Fees on New Lettings: 15% Non-recoverable Void Costs: Rates – Office £25.00 per sq ft Rates – Retail £32.50 per sq ft Service Charge – Offices £5.00 per sq ft Service Charge – Retail £5.00 per sq ft Approach: For the purposes of our vacant possession value, we have targeted an equivalent yield of 5.50%. As discussed above, for the Market Value, we targeted a topped-up initial yield of 5%. However, assuming the property had been refurbished and re-let at our opinion of ERV, we consider that the yield would lie in the region of 4.75%. The equivalent yield adopted shows an appropriate discount from this to reflect the letting risk involved. Vacant Possession Value: £460,000,000 Equivalent Yield: 5.50% Reversionary Yield: 7.67% Capital Value per sq ft: £649

5.6. Historic Market Analysis

5.6.1. Background

The JLL Index is a Prime Equivalent Yield series which tracks JLL’s opinion of prime yields for well specified Grade A stock, rack rented on a 10 - 15 year lease in a prime location and let to a strong covenant. The IPD Yield Index is the IPD Monthly Equivalent Yield series. The IPD Yield Index is constructed from actual valuations submitted on behalf of property owners to IPD. The properties are of mixed quality and therefore more secondary than the JLL Index. While the JLL yields assume rack rented property, the IPD series have, on average, been reversionary over the last 15 years by 15% (3% – 34% range) for office properties.

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

5.6.2. High and Low Yield Series Graph:

The Equivalent Yield of the subject property shows approximately a 110 bps discount to the current JLL Prime index for this sector which stands at 4.25% and had a range of 4.00% - 7.50% over the last 15 years. Applying this discount to the JLL Prime range shows an adjusted range of 5.12% - 8.62% over the last 15 years, compared to the subject property’s current yield of 5.37%.

With regard to the IPD Index the yield range is generally higher than the JLL Index reflecting the more secondary nature of the properties in IPD. The range is also wider reflecting the more volatile nature of secondary properties and the effect of reversions in the index. The subject property is reversionary by 23% overall, whereas the average reversion in the IPD Index over the last 15 years has been around 15%.

5.6.3. Time Series Yield Graph:

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

The JLL Prime index shows how prime yields have changed over the last 15 years. Given the characteristics of the subject property we would expect the yield of the subject property to broadly track the yield curve at a discount to the prime yield curve of around 110 bps. Clearly this relationship will change as the subject property’s characteristics change over time. The chart shows the JLL prime yield series has been stable.

With regard to the IPD Index, as described above, the IPD Yield series is more secondary than the JLL Index. We would expect the subject property to broadly track below the IPD - Office - City category with a discount to the series. As the chart above shows, the IPD series has been decreasing. Clearly the direction and speed of changes, as well as the relationship between the index and the subject property will change over time.

5.6.4. Capital Value Series:

The Capital Value Series graphs shows what the current value per sq ft of the property would have been over the last 15 years had it tracked the IPD - Office - City Capital Value index. It does not take into account past changes in the property so it is not a re-valuation of the property in the past, but rather it indexes the value of the current property back in time but in its current physical, market and legal state. This indexed value is then plotted against the proposed debt and the current market value on a per sq ft basis. We have not been provided with details of the loan terms and so cannot make any comparisons.

It should be noted that the IPD Capital Value Index contains a broad range of properties, but is more reflective of the secondary market as opposed to the prime market. We consider that this index is a reasonable proxy for the subject property given its characteristics. The index is on a nominal basis including historic inflation. We consider inflation going forward is likely to be lower than in the past.

As can be seen from the graph the indexed value is at a current high, and assuming a 50% LTV would have only dipped below the index series in 2009.

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

5.7. Loan Security Commentary

5.7.1. Analysis

Topic Comment Location: ■ Within City of London core office market and adjacent to new Moorgate entrance of the new Crossrail station at Liverpool Street ■ Immediate environs are set to undergo redevelopment to provide improved street level facilities and access ■ On northern edge of the core EC2 post code

■ The recent planning consent gained for Tenter House to the south east will block views from the lower floors and cause considerable disruption during the redevelopment period

Physical: ■ Distinctive tower design attracting premium rents to the upper floors

■ Separate receptions for the lower floors allowing independent occupancy by Simmons and Simmons ■ Central core layout particularly suits the legal profession, who are the main sector of occupiers ■ Ability to split tower floors readily into two suites ■ The structural columns housed in fins projecting inwards from the external elevations, together with the WC block being towards one end of the floor, make space planning more challenging ■ The galleria, whilst providing ground floor roof coverage, significantly breaks up the lower floors effectively causing three atria and blocking views from level 14 downwards to the east ■ The main reception located under the entrance canopy and galleria lacks prominence ■ The structural core of the building dates from 1967 and the 2000 refurbishment is now 18 years old, with particularly the M & E services requiring replacement. This is achievable through the service charge but will temporarily increase it from the already high level of £13.17 per sq ft in the tower Income Analysis ■ The property is currently let to 32 different occupiers on 50 leases or licences. This splits as:

o Offices: 17 occupiers on 29 leases

o Retail (including the gym): 10 occupiers on 12 leases

o Storage and parking: 3 occupiers on 7 leases or licences (there are 7 occupiers of the storage and parking but 4 of these are also retail and office tenants so there are 3 independent occupiers)

o Telecommunications: 2 occupiers on 2 leases ■ There are currently three vacant office suites: part level 15, part level 16 and level 18. These extend to a total of 21,896 sq ft or 3.5% of the office area of the building

■ The property produces a total rental income of £25,319,643 per annum which equates to £42.41 per sq ft based on the area of the let and income producing space

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

■ There are currently ongoing rent free periods and half rent incentives. On expiry of these (assuming no other changes), the contracted rent is £30,615,783 per annum. This equates to £45.22 per sq ft based on the area of the let space ■ Office use accounts for 95.2% of the contracted rent ■ The top 10 tenants account for 78.4% of the current contracted rent, and the top four account for 53.7%. Outside of the top four, no one tenant is responsible for more than 5% of the income ■ Reversionary by 18% comparing the contracted rent (on expiry of the rent free periods) to the ERV of the let space only ■ The overall WAULT is 6.4 years to lease expiries or 5.2 years if break options are taken into account Lettability: ■ Individual floors should be lettable in an average period of 12 months. This may well increase for larger block lettings ■ A tenant incentive of 12 months for each five year term certain is currently required, as well as likely service charge caps, albeit above current levels ■ Tenants should be prepared to take a full repairing and insuring lease ■ The existing tenant profile should be maintainable assuming a continuation of current market conditions ■ New leases are likely to be a combination of five year and 10 year terms with a break after five years ■ The agents letting the vacant floors have reported that whilst the vacant floors present well, and receive no particularly negative feedback from viewings, 12,000 sq ft floors generally are within a slow section of the market ■ A number of new tower buildings have recently completed or are due to complete in the next 12-18 months. This will provide competition for the property for new and existing occupiers Liquidity: ■ The building is one of the larger offices in the City of London and also a freehold interest. However the WAULT is relatively short at 5.2 years and the building requires significant ongoing active management to maintain value ■ The lot size is large but not restrictively so ■ Current investor requirements of large City buildings have until recently focussed on true iconic trophy purchases and long term income with little active management. However, more recently, foreign investors have been prepared to acquire active management opportunities, but only at realistic values. They will often do this through a JV with a local partner who can bring the necessary local knowledge and skills ■ The brevity of the WAULT and age of the building, coupled with the lot size, will result in a shallow pool of potential investors and an extended marketing period ■ We can foresee a sale by private treaty taking up to 12 months to complete Future Value ■ The building is successfully achieving reasonable rental levels where deals are signed, Prospects: however extended letting voids have been a feature in the last year ■ Heavily multi-let buildings requiring an almost constant turnover of tenants on short leases, are more exposed to market fluctuations. Should the occupational market decline significantly then this will quickly impact the performance of the building in terms of both cashflow and capitalisation yield. Investors will seek an additional risk premium and the value could fall by a greater proportion than that of longer let investments

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

■ Apart from market conditions, the future value of this type of property is heavily dependent upon effective ‘hands on’ asset management. To maximise occupancy levels refurbishments and letting strategies must be timely and leases re-geared where possible ■ To this end Brookfield has a suite within the building and a local asset manager that is focussed on maintaining cashflow

5.7.2. Asset Management Considerations

■ Recent successful asset management projects undertaken by Brookfield include:

o Reception refurbishment and works to retail plaza environment

o Refurbishing floors as they fall vacant including levels 32, 30, 18, 17, 16 and 15

o Re-gearing leases to remove break clauses e.g. levels 27, 25, 24 and 23

o Significant PPM programme to include upgrade of the lifts and M and E services, mostly recoverable via the service charge

■ Longer term options to add value could involve Freshwater, the owner of adjacent Tenter House, which recently received planning consent for demolition and redevelopment. A strategy to improve the pedestrian access to the plaza from Moorfields would benefit both properties

■ Redesign of the main office receptions would be beneficial as they currently lack prominence and can be confusing to visitors.

5.8. Highest and Best Use

We are of the opinion that in its current let state and if vacant, the highest and best use of the subject property is as an office building.

5.9. Suitability for Loan Security Purposes

On the basis of the information provided and subject to the comments contained within this report, we consider the property forms suitable security for a mortgage advance. In accordance with normal commercial practice, however, we would anticipate any advance being for only a proportion of our opinion of Market Value.

5.9.1. Specific Comments ■ We have not been provided with details of the loan terms

■ You should monitor the PPM schedule as it is critical with older buildings that the works are undertaken in a timely manner to avoid undue acceleration of the building’s obsolescence

■ We assume that the loan is to be secured over the freehold and both leasehold title interests

Property: Citypoint, 1 Ropemaker Street, London EC2 October 2018

6. Valuation

6.1. Market Value

Having regard to the foregoing, we are of the opinion that the Market Value (as defined in Appendix 2) of the freehold interest in Citypoint, 1 Ropemaker Street, London EC2, subject to the existing tenancies as at 16 October 2018 is:-

£600,000,000

(Six Hundred Million Pounds)

Based on purchaser’s costs of 6.8%.

6.2. Market Value on the Special Assumption of Vacant Possession

We are of the opinion that the Market Value (as defined in Appendix 2) of the freehold interest in Citypoint, 1 Ropemaker Street, London EC2 with the benefit of full vacant possession as at 16 October 2018 is:-

£460,000,000

(Four Hundred and Sixty Million Pounds)

Assumed to be in the same physical state as in currently exists. We have assumed that the current tenants would not be in the market if the property were assumed to be vacant.

Based on purchaser’s costs of 6.8%.

6.3. Reinstatement Valuation

We have not undertaken a detailed replacement cost appraisal but our informal estimate of rebuilding costs, given for your guidance, but without liability, is £502,000,000. This includes an allowance for fees and demolition but not for inflation during either period of insurance or rebuilding and excludes any loss of rental income. Our informal valuation excludes Value Added Tax.

6.4. Confidentiality and Publication

Finally, and in accordance with our normal practice we confirm that the Report is confidential to the party to whom it is addressed for the specific purpose to which it refers. No responsibility whatsoever is accepted to any third party and neither the whole of the Report, nor any part, nor references thereto, may be published in any document, statement or circular, nor in any communication with third parties without our prior written approval of the form and context in which it will appear.

JLL offices JLL offices JLL offices The Walbrook Building The Walbrook Building The Walbrook Building 25 Walbrook 25 Walbrook 25 Walbrook London London London EC4N 8AF EC4N 8AF EC4N 8AF Tel: +44 (0)20 7248 6040 Tel: +44 (0)20 7248 6040 Tel: +44 (0)20 7248 6040 Fax: +44 (0)20 7248 0088 Fax: +44 (0)20 7248 0088 Fax: +44 (0)20 7248 0088 Andrew Pirie James McTighe Alison Buckland Director Director Consultant Valuation Valuation Valuation Central London Central London Central London +44 (0)20 7852 4133 +44 (0)20 7399 5130 +44 (0)20 7399 5228 [email protected] [email protected] [email protected]

Appendices

Appendix 1 Letter of Instruction

MORGAN STANLEY Minimum Requirements for Real Estate Appraisals and Evaluations in the UK/EMEA

All real estate appraisals/valuations prepared for or submitted to Morgan Stanley Bank, N.A. (“Morgan Stanley Bank”) and Mortgage Capital Holdings LLC (“MSMCH”); (collectively, “Morgan Stanley”), must comply with the requirements of the IVSC and RICS Valuation Standards, and Uniform Standards of Professional Appraisal Practice (“USPAP”), sponsored by the Appraisal Foundation. An appraisal’s compliance with FIRREA and USPAP is required to be acknowledge in the Report and Transmittal Letter/Cover Letter of the appraisal report. For valuations undertaken outside of the United States, compliance with USPAP is deemed to be when the scope of works has been meet or exceeded. “The scope of work is acceptable when it meets or exceeds: - what an appraiser’s peers’ actions would be in performing the same or similar assignment.”

In addition, without limiting the foregoing stipulations, each appraisal/valuation assignment and report must meet the minimum requirements as described in the following text and exhibits. Our requirements notwithstanding, each assignment must be discretely and independently evaluated by the appraiser/valuer to determine the scope of work necessary to produce credible assignment results for the appraisal’s intended use. Unless otherwise specified, Morgan Stanley requires all real estate appraisals/valuations to incorporate a comprehensive scope of work and to be transmitted in a complete narrative format. Unless otherwise specified, the intended use of your reporting is for general business decisions and mortgage underwriting purposes.

Any and all appraisals/valuations prepared for or submitted to Morgan Stanley Bank and MSMCH are subject to the approval of and acceptance by Morgan Stanley or their designees.

Each appraisal/valuation report must include the following reliance and disclosure language:

This report was prepared for and may be relied upon by Morgan Stanley Bank, N.A., Morgan Stanley Mortgage Capital Holdings LLC, and their respective affiliates and successors and assigns (collectively, “Morgan Stanley”) with respect to any loan(s) placed upon the property (or on direct or indirect ownership interests in the owner of the property) described in the report. This report may also be relied upon by Morgan Stanley or its designee, in its capacity as Administrative Agent on behalf of lenders in the lending syndicate, and the successors and assigns of each of the foregoing. Any rating agency or issuer or purchaser of any security collateralized or otherwise backed by such loan(s) may further rely upon the reports.

Prior to accepting any assignment, all existing or potential conflicts of interest, including, but not limited to, involvement by you or your firm, for the past three (3) years, presently, and for the foreseeable future, in any capacity, with respect to the subject property, must be fully disclosed. Further, for a period of one year from the date of your final report submission, you must also agree to decline any other assignments with respect to the subject property without prior consent from Morgan Stanley or their designees. Please note that such consent will not be unreasonably withheld. During the period of your commission, you must also

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advise us of any other work being undertaken by you or your firm for the Borrower, Seller or any related party relative to the subject property and this forming federally related transaction.

Within 2 business days from the awarding and engagement of the assignment, the appraiser/valuer must submit a comprehensive information request to the property contact(s) listed in the engagement letter. Within 5 business days the appraiser must report on the status of such information request to the extent it is unfulfilled. Once the critical source documentation has been complied, it should be sent or uploaded to Morgan Stanley or their designees. Any anticipated report delivery delays should be communicated expeditiously.

Within the agreed timeframe set out in the engagement letter, the appraiser/valuer is required to submit the following information:

 Comparable Sales/Investment Schedule and Summary  Comparable Lease Transaction Schedule and Summary  General Market Analysis  Sub-Market Analysis  Subject Property’s Real Property Tax Analysis

Upon completion of the first draft of the appraisal/valuation report, the appraiser/valuer should submit a complete copy including all financial models, charts, and exhibits. Appraisal/valuation reviewer comments will be remitted to the appraiser(s)/valuer(s) in a timely manner and the appraiser’s/valuer’s responses to those comments must be satisfactorily documented for the purposes of transparency and audit. Please note that thoughtful written responses to a reviewer’s comments are necessary for this process to be professional and efficient.

Once the appraisal/valuation report has been finalized, the appraiser/valuer should submit a true final copy of the appraisal/valuation, including all final financial models, charts, and exhibits, along with your final invoice and payment instructions. The appraiser/valuer should not finalize the appraisal/valuation report without the express approval of Morgan Stanley or their designees.

All appraisal reports should be addressed and/or sent to: Morgan Stanley Collateral Valuation Team

Morgan Stanley Bank N.A.

Morgan Stanley Mortgage Capital Holdings LLC

1585 Broadway, 25th Floor

New York, New York 10036

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Appraisal Report Content

As previously noted, Morgan Stanley generally requires real estate appraisals/valuations incorporating a comprehensive scope of work, transmitted in a complete narrative appraisal/valuation reporting format.

A complete narrative reporting format should include, but is not limited to:

 Title Page  Covering Letter/ Date of valuation Report  Identification and status of the valuer  Signatory  Summary of Salient Facts & Conclusions (Executive Summary)  Table of Contents  Client Identification  Intended Use/Purpose of the valuation  Intended User(s)  Property Interest Appraised/Valued  Value Definitions/Basis(es) of value adopted  Valuation date  Scope of Work Summary/Extent of investigations  Nature and source(s) of the information relied upon  Restrictions on use, distribution and publication of the report  Confirmation that the valuation has been undertaken in accordance with the IVS  Commentary on any material uncertainty in relation to the valuation where it is essential to ensure clarity on the part of the valuation user  A statement setting out any limitations on liability that have been agreed.  Sales History  Extraordinary & Hypothetical Conditions Statement/Assumptions and special assumptions  Area Analysis  Neighborhood or District Analysis  Description and Analysis of the Site  Description and Analysis of the Improvements/Buildings  Zoning/Planning Analysis  Property Tax and Assessment Data  Market Analysis (Market and Submarket) – Investment Market – Leasing Market  Highest and Best Use Analysis – As Improved/Developed – As Vacant  Valuation Approach Summary/Valuation approach and reasoning (If any of the approaches stated below are adopted, even if they are not relevant for this market/asset type, a note confirming this must be included) – Land Valuation – Cost Approach – Sales Comparison Approach – Income Capitalization Approach o Direct Capitalization o Yield Capitalization  Reconciliation and Final Value Estimate/Amount of the valuation or valuations – Exposure & Marketing Time

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 Addenda – Source Documents o Rent Roll/Tenancy Schedule o Financial Statements o Management Contracts o Major Lease Abstracts/Summaries – Financial Model Output o Tenant Revenue Schedules o Rent Roll/Tenancy Schedule o Expense Recovery Tables o Value Matrices – Supplemental Photographs & Exhibits – Engagement Letter – Qualifications of the appraiser/valuer

All appraisal/valuation reports should include sufficient analytical detail to demonstrate a comprehensive scope of work and complete appraisal/valuation report format. Please refer to Exhibit II for more detailed requirements with respect to report content.

Market Participant Validation

While recognizing that the verified data associated with a properly documented appraisal report is critical, it is also acknowledged that a preponderance of relevant data can be materially dated. Accordingly, it is a requirement of any assignment that the appraiser/valuer survey market participants to establish current perspective on valuation trends and metrics relating to the subject property and its influencing market.

Examples of market participants include:

 Leasing Brokers/Letting Agents  Investment Sales Brokers/Agents  Mortgage Brokers  Real Estate Investors  Other Appraisers/Valuers  Planners  Tenants

Further, it is recognized that there is the potential for some market participants to have biases with respect to a specific property or market. Therefore, it is important to develop multiple sources to corroborate market perspectives. Examples of components to an appraisal/valuation that should be validated by market participants include, but are not limited to:

 Recent Market Trends  Pending Material Economic Events  Recent Comparable Leasing  Recent Comparable Sales  Market Rents  Capitalization Rates  Investment Criteria and Investor Profile  Applicable Mortgage Rates  Competitive Set Identification  Subject Property Strengths, Weaknesses and Market Position

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We view this primary research as a critical component of the appraisal assignment. While it is not necessary to identify specific sources, the professional role of the information source should be disclosed. Your fee proposal should reflect the resources required to complete this research.

Market Value Definition

Morgan Stanley will only accept appraisal reports that define and identify market value as follows: “The estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion.”

Assumptions/Special Assumptions

Each report must include a distinct section which clearly summarizes any hypothetical conditions, extraordinary assumptions, Special Assumptions or contingencies assumed in determining value(s) and/or preparing the report. No hypothetical, extraordinary, or Special Assumption should be adopted without the prior consent of Morgan Stanley or their designees. In particular, when the adoption of an extraordinary assumption is a function of missing information, the appraiser should notify Morgan Stanley, or their designees immediately and work to cure the deficiency.

RICS Valuation Standards define a Special Assumption as follows. “A special assumption is made by the valuer where an assumption either assumes facts that differ from those existing at the valuation date or that would not be made by a typical market participant in a transaction on that valuation date.”

Prospective Value Opinions (Special Assumptions)

If providing “as stabilized” or “as complete” Special Assumption valuations. The reporting of prospective or Special Assumption values should be defined and accompanied by the future dates when a property is reasonably anticipated to achieve its prospective status, e.g., “as stabilized” or “as complete”. The valuation should be based on current market conditions. Extraordinary assumptions should be included to properly qualify the speculative nature of prospective values. A statement should be included that addresses the logic and basis for projecting market conditions to the prospective date of value. The engagement letter will stipulate when a prospective value opinion is warranted.

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Minimum Valuation Requirements

Land Valuation & Cost Approach (for UK/EMEA only as specifically required by Morgan Stanley): Each report must include a land value estimate. The land value estimate should reflect the value of the subject land as vacant and available, in accordance with its highest and best use. In addition, the appraiser should apply the Cost Approach to value, particularly if the improvements are relatively new. Capital expenses should be examined in this section of the report and a replacement cost new, including a market oriented profit allocation, reported. Depreciation should reflect your remaining useful life opinion, and due to the inherent subjectivity of depreciation opinions, the extraction of aggregate depreciation from the other approaches to value is acceptable. Curable depreciation (capital expenses) should be specifically identified. Sales Comparison Approach: The appraiser must identify and analyze the most recent and relevant sales available in the subject property’s influencing market. The comparable sales should be presented with a detailed description, photographs and a location map. An adjustment grid may be utilized together with an in depth narrative analysis of the sale and its specific relevancy to the subject property. The sales should not be more than eighteen months old. Comparable properties which are currently on the market should also be included in the analysis and investment broker perspective should be compiled and presented. Perspectives on a likely buyer profile and investment market sales trends should be developed in this approach. Income Approach (should include both the Direct Capitalization and Yield Capitalization / Discount Cash Flow methods): In most instances, the income approach warrants primary emphasis and the development of market rent is fundamental to a credible analysis. Comparable rents should be developed for each component of the subject property and space should be differentiated according to logical groupings and market leasing assumptions. Comparable data should be as recent and relevant as possible, and in no case older than eighteen months. All comparable lease ingredients and effective rents should be thoroughly analyzed and reconciled. The comparable lease data should be presented with a detailed description, photographs and a location map. The subject tenant roster must be examined in detail with respect to tenant credit, retention prospects, and space utilization.

The Capitalization Rate analysis should utilize all three methods (market extraction, investor surveys and band of investment analysis). The concluded capitalization rate should be supported by an analysis of the property’s income profile and characteristics that influence the selection of the capitalization rate.

In developing a stabilized cash flow for the subject, the appraiser/valuer must obtain the appropriate data and present an analysis of three years of historical property operating results (i.e., income and expenses) and explain any variances or trends. Operating expenses should be analyzed on a line item basis with emphasis on historical performance and future budgeting, while supported with market operating expense data. The appraisal/valuation must compare the subject property’s historical operating results to market standards through the use of comparable income and expense data.

Occupancy of the previous three years should be presented and analyzed. A separate analysis of absorption is required if the subject property or a material portion of it is vacant,

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if key tenants are anticipated to vacate, or if the property is proposed. Macro and micro market trends should be included, with a rate of absorption and period to reach stabilized occupancy stated.

Cash flow assumptions must be supported by market data and convention. This includes the application of vacancy and growth rates, tenant improvement allowances, rent concessions, leasing commissions, terminal cap rates and rates of return. Appraisers/Valuers should develop thorough analytical perspective on market oriented cash flow assumptions and investment criteria.

Please refer to Exhibit I for more detailed valuation guidance and requirements.

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EXHIBIT I Additional Valuation Guidance

Existing Income Producing Properties

Appraisal/valuation reports for existing properties should reflect the Market Value "As Is", as of the date of value. Renovation projects require a Market Value as of the current date value, as well as prospective values (Special Assumption Valuations) "Upon Completion of Construction" and "Upon Stabilized Occupancy" and/or "Upon Economic Stabilization", as noted above. Prospective Values warrant prospective dates of value, with extraordinary assumptions or hypothetical conditions as applicable, and include a statement as to the context of the forecast (please refer to Reporting of Prospective Values).

For Sale Proposed Construction

For real estate/property subject to development, the following values must be reported:

1. Gross Development Value (including a breakdown on a unit by unit basis) 2. Market Value 3. Market Value on the Special Assumption that the development has been completed as at the date of valuation

To the extent a development is “phased” in nature, all costs associated with future phases should be specifically identified as such within the report. To the extent that a property is a hybrid, for example a condominium project with a retail component, the procedures for income producing properties would apply to the retail component.

Owner-User Occupied & Single Tenanted Properties

For encumbered single tenanted properties (or those with material tenant concentrations) and for those properties which are unencumbered, but owner-occupied, the property should be appraised/valued subject two (2) additional hypothetical conditions or as stipulated in the engagement letter:

1. Continued Occupancy at Market Rent 2. Vacant Possession

The analysis of continued occupancy at market rent should not assume deductions for frictional vacancy or leasing costs, and only rent concessions, as applicable, under a market standard lease back structure.

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The income analysis of the fee simple value should take account of all costs associated with re-tenanting the property including, as warranted, tenant improvements, rent concessions, leasing commissions, holding costs and profit. Please note that the deduction of full rent loss and profit can be duplicative, as most investors would consider only the carrying costs necessary to derive an appropriate profit.

Going Concern Property

The appraisal/valuation of going concern or business enterprise value is typically encountered with hospitality, gaming, health care, and other assets where the business performance is sustainable and quantifiable. Real property and personal property constitute tangible value. Intangible value is associated with the business enterprise value. All of these components of value must be identified and allocated accordingly.

Personal Property

Commonly classified as furniture, fixtures and equipment (FF&E) or machinery, mechanical and equipment (MM&E), these are identifiable and tangible objects that are not classifiable as real property. While these items may be integral to the operations of the facility, they are generally movable and cannot be classified as real property. Personal property must be identified in each report with a clear statement as to contributory value and its materiality to the reported value.

Tangible & Intangible Value

To the extent there is discernible intangible property, its contribution to the business enterprise value should be expressly identified and allocated.

Portfolio Value

Markets can produce conditions when the sale of a portfolio warrants a premium or discount to the appraised value of the individual assets. Premiums can result from financing efficiencies, operational efficiencies, risk mitigation, and capital deployment motivations by market participants. Discounts can occur when the reverse is true or liquidity is limited and must be achieved through a further, more granular sale process over time. Portfolio appraisal reports should address these points and the specific benefits or issues associated with a particular portfolio in comparison to the operations of the individual assets.

All portfolio assignments with individual appraisal/valuation reports should include the submission of a summary spreadsheet detailing the assignment results and critical valuation metrics.

Market Value Subject to Capital Reserve Account

Typically, capital reserve accounts are established to address near-term leasing costs or capital expenses. From time to time, a request may be made to report a market value subject to the extraordinary assumption that a capital reserve account has been established to decease certain expenses. As these accounts are

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typically established post the date of appraisal, the value opinion is technically prospective in nature. However, in these instances, it is preferred that the calculation be based simply upon the “as is” market value as of the date of appraisal, and adding back the cash value of the reserve account. The prospective nature of the assumption can be acknowledged as an extraordinary assumption. The appraiser should always have an itemized statement of what specific expenses will be addressed by the reserve account and confirm that those expenses are valid sources of value, having been considered as deductions in the determination of the “As Is” Market Value. Please note that this assumption effectively represents cash consideration to a prospective purchaser and is not technically real property.

Evaluation Services

To the extent evaluation services are required, appraisers should consult the Interagency Appraisal and Evaluation Guidelines for guidance with respect to a minimum scope of work. The appraiser should supplement this scope of work as necessary to produce credible assignment results for the evaluation report’s intended use.

Financial Modelling

All financial modelling must be the appraiser’s original work, reviewed and verified for accuracy and integrity, and compliance with USPAP standards governing discounted cash flow analysis. An electronic copy of the cash flow model file should be submitted with the report and critical output contained within the report’s Addenda. The engagement letter will specify which discounted cash flow software is required. The software employed should always be the latest version available unless otherwise instructed. Appraisals completed with a proprietary model should include comprehensive output in the report’s Addenda to the extent those files are unavailable electronically for dissemination with the report.

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EXHIBIT II Additional Report Content Guidance

Transmittal/Cover Letter

Each report must include a Transmittal/Cover Letter executed by the responsible appraiser(s)/Valuer(s). The Transmittal/Cover Letter should be addressed exclusively to Morgan Stanley Bank N.A. and Morgan Stanley Mortgage Capital Holdings LLC and no other party unless specifically instructed. All reports should be addressed and/or sent to: Morgan Stanley Collateral Valuation Team

Morgan Stanley Bank N.A.

Morgan Stanley Mortgage Capital Holdings LLC

1585 Broadway, 25th Floor

New York, New York 10036

At a minimum, this letter should address the following:  Name and address of the property (including zip code/Postcode);  Brief property description;  Ownership interest appraised;  Define Scope of Work (according to Scope of Work Rule as amended in 2006 edition of USPAP or equivalent local standards, such as RICS Valuation Standards);  Statements that all necessary investigations and inspections were performed;  Statements specifically confirming that the appraisal complies with the requirements of USPAP, or equivalent local standards, such as RICS Valuation Standards and IVS;  Effective date and inspection date;  Notation of any pending or recent subject property transfers/transactions;  Concluded value(s) cash or equivalent terms; and  Extraordinary assumptions, special assumptions, hypothetical conditions, unusual conditions or limitations.

Summary of Salient Facts and Conclusions

Each report must include a distinct section, in tabular format, which summarizes important property data, as well as key findings and conclusions arrived at in determining value and/or preparing the report. At minimum these should include:  Property name, address, and type;  Year of construction and renovation (if any);  Ownership interest appraised;

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 Land area;  Parking;  Zoning/Planning and comment as to whether or not subject is conforming;  Flood plain designation;  General improvement characteristics/Property Description (e.g., number or floors, number of buildings, gross and net rentable area, number of units);  Occupancy  Current property taxes  Highest and best use conclusion (both vacant and as improved);  Concluded market rent for subject (by space type);  Concluded market vacancy rate and tenant retention rate for subject (by space type);  Concluded market tenant improvements/leasing incentives, leasing commissions/fees, free rent/rent free, and other concessions for subject (by space type);  Concluded cap and discount rates for the subject;  Valuation date;  Value by each method (cost, sales, income – depending upon the normal methods adopted for the property type in that jurisdiction);  Insurable value/estimated reinstatement cost  Final value conclusion

Regional Analysis

The appraiser/valuer should analyze and address regional and local socio-economic characteristics (e.g., population, income, demographic factors), as well as current and future trends (e.g., proposed development, regional land use changes, development moratorium). The report should describe existing or potential adverse influences resulting from the property’s location. This includes population, household, demographic and employment statistics, trends and analysis, transportation influences and other issues when relevant.

Market Analysis

The appraiser/valuer should discuss real estate market position of the subject property include: market activity, inventory, rental rates, rental concessions, tenant improvements, lease types (triple net, gross, etc.), occupancy trends, absorption trends, major properties under construction, prospects for new development, and vacancy rates. Vacancy rates should be discussed on a macro and micro basis including estimates for the metro area, subject submarket and competitive set.

Neighborhood Analysis & Trade Area

The appraiser/valuer should analyze and address the condition of and trends within the subject neighborhood or district. The report should contain a discussion of the development of the neighborhood, socio-economic characteristics (e.g., population, income, demographic factors) and trends, transportation to/within and the accessibility of the area, traffic patterns and counts, relation to employment centers and other issues believed to be relevant. Further, the report should define the boundaries of the subject neighborhood or district and outline the surrounding land uses proximate to the subject including any new developments

Aimed at furthering the understanding of how the immediate area impacts the demand for the subject, the appraisal should provide information regarding individuals that live or work nearby, and the factors for living or working within the immediate or surrounding area. This includes a description of the subject location quality including accessibility, visibility, and compatibility.

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Site Description

The appraisal/valuation report must include a detailed location and site description including the presentation of a plat map and/or site plan. Also, this section should include, at a minimum, the following regarding the subject site:  Site size and shape;  Dimensions;  Topography;  Soils/geologic conditions;  Drainage;  Zoning/Planningand compliance status;  Utilities;  Easement, encroachments or other legal constraints;  Exposure and ingress/egress; and  Off-site improvements. A review of the subject property location in relation to earthquake faults, flood zones, slide areas, hazardous dump sites, and other prevalent local hazards is required. The report should discuss any observed or reported easements that affect the site development and value. If an easement is part of the legal description, a concise discussion of where the easement is located must be provided.

Improvement/Property Description

The report should include a section that reviews and discusses all building and improvement data relevant to the appraisal. At a minimum, items to be included are:  Actual building age and size  Unit mix tables for residential, industrial and retail properties, including but not limited to total units, vacant units, down units and stacking plan for office properties  Type structure and/or use of the building  Structural and construction details and mechanical equipment  Interior detail  Physical condition, effective age, economic life  Extent of historical renovations  Functional utility  Compliance with the Americans with Disabilities Act  Property amenities  Tenant amenities  Site improvements, including the number of on-site parking spaces The report should distinguish between and identify the total gross building, rentable and usable areas. Moreover, the measurement calculation convention and the source of the measurements should be confirmed and reported for the rentable area. These should also be identified on a per floor basis, if available. An illustration of the basic floor plan and/or stacking plan should be provided if available. The appraiser/valuer should analyze and conclude as to the market acceptance and functionality of the improvements. This should include commentary on the condition, effective age or any other factors contributing to physical deterioration and/or functional and external obsolescence of the subject.

[Minimum Appraisal Requirements] [2018] 3

Real Property Taxes and Assessments

Depending upon what is typical for the jurisdiction, each report must identify assessor's parcel number(s), fiscal tax year dates, current assessed value(s), current taxes, tax rate and tax rate area for the subject(s). If the appraisal/valuation assignment requires that taxes be estimated, the methodology employed to estimate taxes must be fully explained. The appraiser/valuer should present the assessment and taxes for two to four similar properties and compare the assessments and/or tax burdens to that of the subject. The report should discuss the tax assessment policy, the tax policy affecting the sale of the subject property and the frequency of real estate reassessments. Any near-term revaluations or changes in the tax and/or millage rate should be discussed.

Zoning/Planning

Each report must identify applicable ordinances, in addition, the report must state the "as of right" allowable uses and maximum bulk pertaining to the subject site, while comparing to the subject property's use and bulk density, a statement regarding compliance, and any pending or anticipated zoning changes and their impact on the property. Each asset should be identified as to whether or not it is a legal, conforming use. An explanation should be provided under which a non-conforming property can be re-constructed or repaired.

Highest and Best Use

For all improved property, the highest and best use analyses should address the subject site “as if vacant” and “as currently improved”. Analyses of improved/developed property should consider all current and potential density and uses. In addition, a property’s current physical condition and functionality are important considerations in the context of prudent management and income performance optimization. Accordingly, potential capital investments, changes in uses, the property’s current status and physical condition should all be examined in this section of the report.

Highest and best use considerations in terms of use(s), density and condition include:

1) Operate the existing facility as it is currently used and improved

2) Modify or improve the existing facility and/or its uses

3) Demolish the existing improvements for redevelopment

Excess and surplus land or development rights should be clearly identified and discussed in this section as well. When an assignment relies upon a specific business plan for the property’s transition in use or expansion, that reliance should be acknowledge with extraordinary assumptions pertaining to cost, execution, etc. The appraiser/valuer should provide an opinion regarding the reasonableness of that business plan in the context of the property’s highest and best use and market orientation.

Exhibits

The appraisal report should include as exhibits any miscellaneous documents and supplemental reports pertinent to the value conclusions. This includes:  Operating statements used within the analysis  Rent rolls/tenancy schedules and/or occupancy statements used within the analysis  Cash flow modeling/assumption reports (e.g., Argus)  Any property appropriate schematics, drawings or plans of the subject or it’s area  Appraiser's qualifications, engagement letter, etc.

[Minimum Appraisal Requirements] [2018] 4

 Photographs (including the subject and rental & sales comparable properties)

[Minimum Appraisal Requirements] [2018] 5

PRIVATE AND CONFIDENTIAL Your ref

Our ref AP/479500LON

Direct line +44 (0)20 7852 4133

[email protected] 24 October 2018

Morgan Stanley Collateral Valuation Team Morgan Stanley Bank N.A. Morgan Stanley Mortgage Capital Holdings LLC 1585 Broadway, 25th Floor New York New York, 10036

For the attention of Nick George

Dear Sirs,

Valuation - Citypoint, 1 Ropemaker Street, London EC2 (the "Property")

Thank you for instructing Jones Lang LaSalle Limited (“JLL”, “we”, “us”) to act for Morgan Stanley Bank N.A., (the “Client”, “you”) in connection with the valuation of the above Property, (The “Instruction”).

We are pleased to provide you with details of our services and fees and we enclose our General Terms & Conditions of Business (the “General Terms”) and our General Principles Adopted in the Preparation of Valuations and Reports which, together with this letter (the “Letter of Engagement”), will form the agreement in respect of our appointment. To the extent that the Letter of Engagement conflicts with the General Terms, the Letter of Engagement shall prevail.

We enclose a signed copy of your instruction letter dated 17 October 2018. Where there is any conflict between your letter and our Letter of Engagement, General Terms or General Principles, the terms of your letter shall prevail.

1 Scope of Service

We shall provide you with the following services:

■ Inspect the Property

■ Rely on areas provided

■ Review legal documentation

■ Review any Building Survey and Environmental Survey

■ Undertake statutory enquiries relating to Planning and Rating

■ Undertake all market research

Jones Lang LaSalle Ltd The Walbrook Building Jones Lang LaSalle Limited 25 Walbrook +44 20 7248 6040 Registered in England & Wales: 118856730 London, EC4N 8AF jll.co.uk Registered Office: 30 Warwick Street London W1B 5NH

■ Prepare Valuation

■ Prepare a Valuation Report

Referred to in this letter of engagement as “Services”.

2 JLL Team

Andrew Pirie will be your main point of contact and the Director with overall responsibility for the matter: +44 (0)207 852 4133, [email protected].

He is in a position to provide an objective and unbiased valuation.

3 Purpose of Valuation

We understand that you require a valuation for the purpose of loan security.

4 Interest to be Valued

We confirm that we will value the Freehold interest in the Property.

We understand that the Property is currently held for investment purposes.

5 RICS Compliance

We confirm that our valuation and report will be prepared in accordance the current RICS Valuation - Global Standards 2017, which incorporate the IVS, published by the Royal Institution of Chartered Surveyors and the RICS Valuation – Professional Standards UK January 2014 (revised April 2015) (the RICS Red Book).

6 Basis of Value

We will value The Property on the following bases and assumptions:

■ Market Value (MV).

■ Market Value (MV) on the Special Assumption of Vacant Possession.

■ Market Rent (MR).

You have also asked us to provide an indication of reinstatement cost. This will be undertaken by a valuer as part of the valuation exercise, not a Building Surveyor or other specialist. It will be given without liability on an informal basis. Should you require a formal reinstatement valuation, we would be able to advise you under a separate agreement.

Definitions of these bases of valuation are contained within the Red Book and will be further explained in our report.

7 Conflicts of Interest and Prior Involvement

We can confirm that we have no conflicts of interest in providing advice to you on this Property.

You are already aware that the JLL lease advisory team is instructed to advise one of the office tenants on a mid-2018 rent review although, as far as we understand, it has not been triggered. We do not consider that this creates any conflict of interest with the valuation exercise.

The following section within the ‘Minimum Requirements for Real Estate Appraisals and Evaluations in the UK/EMEA’ document will not apply:

‘Further, for a period of one year from the date of your final report submission, you must also agree to decline any other assignments with respect to the subject property without prior consent from Morgan Stanley or their designees. Please note that such consent will not be unreasonably withheld. During the period of your commission, you must also advise us of any other work being undertaken by you or your firm for the Borrower, Seller or any related party relative to the subject property and this forming federally related transaction.’

However, in accordance with your instruction letter, we will not appraise/value the property for any other client other than Morgan Stanley for one year from the valuation date without your permission, such permission not to be unreasonably withheld.

8 Status of Valuer

We confirm that we will act as External Valuers in accordance with the RICS Red Book and that we have the knowledge, skills and understanding to undertake the valuation competently. The valuers undertaking the instruction are RICS Registered Valuers.

9 Currency

We confirm that we will provide a valuation in GBP (British Pounds).

10 Report

We confirm that we will provide you with a narrative loan security style valuation report. We will also undertake investigations on your behalf and include detailed market commentary, leasing and investment comparables, together with details of our investment rationale. The contents of the report will meet the requirements of VPS 3 of the RICS Red Book.

We will provide a PDF copy of our final report.

11 Sources of Information

Our General Principles Adopted in the preparation of Valuations and Reports set out the scope of our investigations with the following exceptions:

■ We will not measure the Property or take check measurements.

■ We will depart from the General Principles to the extent that such departure is necessary or appropriate in light of any matter affecting the Property that comes to our attention. In that situation, we shall notify you of such departure in our report, which shall supersede our General Principles.

We will rely upon information provided by you in respect of Title, tenancy, building condition (survey), costs of repair, environmental issues, floor areas and any third party due diligence reports.

We will not review copies of the leases. Any advice approval or representation made or given by us regarding the legal meaning or effect of such title deeds and other legal documents (draft or final version) should not be relied on by you.

RICS Property measurement (incorporating International Property Measurement Standards) 1st edition, May 2015, requires us to report IPMS measurements in the report for this Property. You have not instructed us to measure the Property and as

IPMS areas are not available to us and the principal market and comparables are assessed on a Net Internal Area (NIA) basis, we will rely upon areas measured on the basis of the Royal Institution of Chartered Surveyors’ (RICS) Code of Measuring Practice (6th edition).

12 Fees

We have agreed our fee with you in the sum of £57,500 plus VAT including disbursements.

Our fee account will be addressed to you.

In the event that our instruction is ended for any reason before we deliver our final report we would seek to charge a fair and reasonable fee based on the amount of work undertaken.

13 Reliance

We agree to address the report in accordance with your instruction letter dated 17 October 2018.

Provided that you acknowledge that:

■ All Relying Parties shall be bound by the same liability exclusions and limitations as set out in this letter and our General Terms, and that our liability shall be no greater, in duration or extent, as a result of extending reliance the Relying Parties, than if the Relying Parties had been named in this letter jointly with you;

■ You warrant that you shall procure the agreement of the Relying Parties to these terms, including but not limited to the liability exclusions and limitations referred to in paragraph (a) above;

■ ‘affiliate’ will be defined as being a group company of the addressee within the meaning of the Companies Act 2006;

■ the report can be disclosed to the entities listed in your instruction letter as (a) to (j) on a non-reliance basis only; and

■ nothing in this clause shall permit any quoting or disclosure intended to form part of any public offering.

14 Confidentiality and Publication

In accordance with our normal practice, we confirm that the report is addressed for the specific purpose to which it refers. Our valuation and this letter are confidential to the Addressees. However, copies of our valuation and this letter may be disclosed for information only without liability for us or reliance to them to:

a) Agents, trustees and advisers of the Addressees

b) Affiliates, employees, officers, directors and auditors of the Addressees

c) Any servicer of any loan under the Facilities (and its advisers)

d) Governmental, banking, taxation or other regulatory authority

e) To any rating agency actually or prospectively rating any securities issued in connection with a securitisation of any loan under the Senior Facility Agreement and/or Mezzanine Facility Agreement, and its advisers

f) To or pursuant to rules of a stock exchange, listing authority or similar body

g) As required by law, court order or regulation in connection with legal or arbitration proceedings

h) Any actual or prospective investor in any securities issued in connection with a securitisation of any loan under the Senior or Mezzanine Facility Agreement, and their advisers

i) Any prospective or actual purchaser of any property or shares in an entity that owns any property either directly or indirectly

j) Any prospective purchaser, transferee or assignee of, participant in, or hedge counterparty in respect of, any loan made under the Senior Facility Agreement, Mezzanine Facility Agreement or other agreement in relation to the Senior or Mezzanine Facility Agreement

We confirm our consent that on a non-reliance basis and strictly for information purposes only:

(i) the Valuation or a reference to and summary of it (and the methodologies and concepts on which it is based) may be included in any prospectus, information memorandum, offering circular, registration statement or similar document as may be required to comply with any applicable laws, regulations or official guidelines relating to the issuance of or investment in any securitisation of the loan under the Senior or Mezzanine Facility Agreement; and

(ii) The Valuation or references to it may be included in any document provided to any potential providers of finance and their directors, officers, employees, agents and professional advisors in connection with any syndication or securitisation (both of the Senior and Mezzanine Facilities) in relation to the financing.

In cases where reliance is to be extended to the parties listed in paragraph 14, such parties will be required to sign a reliance letter.

15 Money Laundering Regulations 2007

We may be required by the Money Laundering Regulations to request that you provide us with identity verification information and documentation. You agree to provide said information and documentation upon request. We may confirm your identity and the information provided through third party databases.

16 Complaints

JLL operates a complaints handling procedure in accordance with RICS regulation requirements. A copy is available on request.

17 Monitoring

We are required by the RICS to inform you that the valuation may be subject to monitoring or investigation by the RICS under the Institution’s conduct and disciplinary regulations. Guidance on the operation of the monitoring regime, including matters relating to confidentiality, is available at www.rics.org/regulation.

18 Important Information

Please read the General Terms carefully.

The maximum liability JLL shall be limited to is GBP100 million in total in respect of the Services in accordance with the General Terms. This amount is an aggregate cap on our liability to you and all addressees and Relying Parties together.

We confirm that we hold sufficient professional indemnity insurance cover for the valuation provided and our overall workload.

19 Confirmation

Please sign, date and return a copy of this letter to confirm our appointment upon the terms set out in this letter and the attached General Terms. Until such time as we receive the signed letter, these terms apply to the provision of our services.

If you require any further assistance then please do not hesitate to contact us.

Yours sincerely

Andrew Pirie MRICS

For and on behalf of Jones Lang LaSalle Limited

[email protected]

Encs

General Terms & Conditions of Business

General Principles Adopted in the Preparation of Valuations and Reports

Morgan Stanley Letter of Instruction dated 17 October 2018

We have read and accept the terms of this Letter of Engagement and the General Terms on behalf of the Client, and acknowledge receipt of a copy of the same.

Signed ……………………………………..…………………..

On behalf of …………………………………………………..

Date ………………………………………..…………………..

Appendices

Appendix 2 General Terms and Conditions General Principles Definition of Market Value Definition of Market Rent

General Terms and Conditions of Business

1. AGREEMENT “processing” shall have the meaning set out in the GDPR, and references to “personal data” shall in addition mean personal 1.1. These Terms together with any Engagement set out data related to the Agreement. the terms on which JLL will provide the Services to the Client. Each of the provisions provided in the Agreement are “Insolvent” means in relation to: severable and distinct from the others. (a) a company (including any body corporate), that it: 1.2. The Engagement shall prevail to the extent of any conflict between the Terms, and the Engagement. The (i) is unable to pay its debts as they fall due; Agreement supersedes any previous arrangement concerning (ii) becomes or is deemed insolvent; its subject matter. Unless the Parties agree otherwise, these

Terms shall apply to any future instructions from the Client, (iii) has a notice of intention to appoint an administrator although such instructions may be subject to a separate filed at Court in respect of it, has an administrator appointed Engagement. over, or has an administration order in relation to it, or has

appointed a receiver or an administrative receiver over, or an 2. INTERPRETATION encumbrancer takes possession of or sells the whole or part of its undertaking, assets, rights or revenue; The following definitions and rules of interpretation apply in these Terms: (iv) passes a resolution for its winding up or a court of competent jurisdiction makes an order for it to be wound up 3. Definitions or dissolved or it is otherwise dissolved (other than a voluntary winding up solely for the purpose of a solvent “Affiliates” includes in relation to either Party each and any amalgamation or reconstruction); or subsidiary or holding company of that Party and each and any subsidiary of a holding company of that Party and any (v) enters into an arrangement, compromise or business entity from time to time controlling, controlled by, or composition in satisfaction of its debts with its creditors or under common control with, either Party, and “holding any class of them or takes steps to obtain a moratorium or company” means a holding company as defined in section making an application to a court of competent jurisdiction for 1159 of the Companies Act 2006 or a parent undertaking as protection of its creditors; defined in section 1162 and schedule 7 of the Companies Act 2006, and “subsidiary” means a subsidiary as defined in (b) a partnership, that it is dissolved by reason of the section 1159 of the Companies Act 2006 or a subsidiary bankruptcy of one or more of its partners; undertaking as defined in section 1162 and schedule 7 of the (c) an individual, that he is bankrupt; and Companies Act 2006;

(d) a Party based outside England and Wales, that it is “Agreement” means any Engagement and these Terms considered insolvent by the laws applicable to that together; Party; “Client” means the Party who enters into the Agreement “JLL” means Jones Lang LaSalle Limited of 30 Warwick with JLL; Street London W1B 5NH registered in England with company “Data Protection Legislation” shall mean GDPR and any number 01188567 and/or any Affiliate of JLL that provides the national implementing laws, regulations and secondary Services to the Client; legislation in force in England from time to time. “Materials” means all materials, equipment, documents and

“Engagement” means the agreement, letter of engagement other property of JLL made available to the Client by JLL in or engagement agreement or email and any carrying out the Services schedules/appendices sent to the Client by JLL (or agreed in “Party” means either the Client or JLL (as the context writing) which sets out details of the Services to be provided requires) and “Parties” shall mean both of them; to the Client pursuant to the Agreement;

“Services” means the Services set out in the Engagement or “GDPR” means the General Data Protection Regulation ((EU) as otherwise agreed in writing between the Parties; 2016/679) effective from 25 May 2018 and in this Agreement:

“controller”, “processor”, “data subject”, “personal data”, “Terms” means these terms and conditions. “personal data breach”, “supervisory authority”, and

1 General Terms and Conditions of Business – Version 1.6 COPYRIGHT © JONES LANG LASALLE IP, INC. 2018. All Rights Reserved 3.1. Unless the context otherwise requires, words in the responsible for any failure to meet performance dates due to singular shall include the plural and in the plural shall include causes outside its reasonable control and time shall not be of the singular. the essence for performance of the Services.

3.2. A reference to a statute or statutory provision is a 4.5. JLL shall have the right to make any changes to the reference to it as it is in force as at the date of the Agreement Services which are necessary to comply with any applicable and shall include all subordinate legislation made as at the law, regulation, safety requirement, or which do not date of the Agreement under that statute or statutory materially affect the nature or quality of the Services and JLL provision. shall notify the Client in any such event.

3.3. A reference to writing or written unless otherwise 4.6. Without prejudice to clause 9.2(b), if JLL becomes specified herein includes email. aware of a conflict of interest, it shall advise the Client and take reasonable steps to recommend a course of action. 3.4. Any words following the terms including, include, in particular or any similar expression shall be construed as 5. CLIENT OBLIGATIONS illustrative and shall not limit the sense of the words preceding those terms. 5.1. The Client shall:

3.5. Headings are for convenience only and do not affect a) notify JLL promptly if it considers that any details or the interpretation of this Agreement. requirements set out in the Engagement are incomplete or inaccurate; 4. SERVICES b) co-operate with JLL in all matters relating to the 4.1. JLL shall provide the Services using reasonable care Services; and skill. c) provide JLL, its employees, agents, consultants and 4.2. JLL has no obligation to provide any services other subcontractors, with access to the relevant property than the Services and has no obligation to provide nor any as reasonably required by JLL to provide the liability for: Services; and a) an opinion on the price of a property (unless d) obtain and maintain all necessary licences, specifically agreed in writing); permissions and consents which may be required by the Client before the date on which the Services are b) any advice regarding the condition of a property to start. (unless specifically agreed in writing); 4.2 The Client shall promptly provide JLL with such c) the security or management of a property unless information and materials as it may reasonably require in specifically instructed to arrange it; order to supply the Services and warrants that: d) the safety of any third party entering any premises; a) such information is complete and accurate and was or obtained and drafted in accordance with all applicable laws; e) the management or payment of any third party

suppliers. b) it shall ensure that where the information and material includes representations or descriptions of 4.3. Where the Parties have agreed that JLL shall carry a property, that such information and material out estate agency business, JLL shall (i) report in writing all contains no misrepresentation or false impression; offers it receives regarding the relevant property; and (ii) comply with its obligations under the Estate Agents Act 1979 c) where the Client will advertise a property under and regulations made under that Act together with any other JLL’s logo, that such advertisement (including its similar laws and regulations. content and context in which it will appear) is approved in writing by JLL prior to its publication; 4.4. Where agreed in writing JLL shall use reasonable and endeavours to meet any performance dates. JLL shall not be

General Terms and Conditions of Business – Version 1.6 COPYRIGHT © JONES LANG LASALLE IP, INC. 2018. All Rights Reserved 2 c) it shall immediately notify JLL on becoming aware the due date until actual payment of the overdue amount, of any changes or issues that may render inaccurate whether before or after judgment. The Client shall pay the any information or material provided to JLL. interest together with the overdue amount.

4.3. In the event of any act or omission by the Client in 6.5. If termination of the Agreement takes place prior to breach of the Agreement or failure by the Client to perform the Services being completed, JLL shall, without limitation to any relevant obligation (Client Default): its other rights and remedies under this Agreement or at law, be entitled to receive from the Client a reasonable fee a) JLL shall without limiting its other rights or remedies proportionate to the part of the Services performed to the have the right to suspend performance of the date of termination. Services until the Client remedies the Client Default, and to rely on the Client to relieve it from the 5.6 If the Client has agreed to engage JLL as its sole performance of any of its obligations to the extent agent for the acquisition of an interest in a property, the Client the Client Default prevents or delays JLL’s shall be liable for payment of JLL’s fees and expenses where performance of any of its obligations; and an Affiliate of the Client or an individual with a majority stake in the Client completes the relevant acquisition. b) JLL shall not be liable for any costs or losses sustained or incurred by the Client arising directly or 7. INTELLECTUAL PROPERTY RIGHTS indirectly from the Client Default. 7.1. All intellectual property rights in or arising out of or 4.4. The Client is responsible for effecting and in connection with the Services including the intellectual maintaining adequate property and public liability insurance property rights in Materials shall be owned by JLL unless in relation to its activities and any relevant properties owned otherwise expressly agreed in writing. For this purpose or occupied by it and shall be responsible for the safety of any “intellectual property rights” means patents, utility models, person entering the relevant property. rights to inventions, copyright and related rights, trademarks

and service marks, trade names and domain names, rights in 6. PAYMENTS get-up, goodwill and the right to sue for passing off or unfair competition, rights in designs, rights in computer software, 6.1. Whenever possible, the fees and expenses (if known) database rights, rights to preserve the confidentiality of for the Services shall be as set out in the Engagement. Where information (including know-how and trade secrets) and any fees and expenses for the Services are not specified in writing, other intellectual property rights, including all applications JLL shall be entitled to the fee specified by the Royal for (and rights to apply for and be granted), renewals or Institution of Chartered Surveyors (RICS) or if there is none extensions of, and rights to claim priority from, such rights specified, by any other applicable professional body chosen and all similar or equivalent rights or forms of protection by JLL (acting reasonably) or, if none is specified, a fair and which subsist or will subsist, now or in the future, in any part reasonable fee by reference to time spent undertaking the of the world. Services; and reimbursement of any expenses properly incurred by JLL on the Client’s behalf. 7.2. The Client shall have an irrevocable, royalty-free, non-exclusive licence to use the Materials for the purposes for 6.2. All amounts payable by the Client under the which they are prepared by JLL, subject to JLL having received Agreement are exclusive of value added tax (VAT) or similar full payment for the Services in accordance with this taxes which the Client shall pay at the applicable rate. Agreement. Such licence shall be capable of sub-licence by

6.3. In consideration of the provision of the Services, the the Client to its employees, agents and subcontractors and Client shall pay each invoice submitted by JLL in accordance shall survive termination. No third party has any right to use with the Agreement within 28 days from the date of invoice. any such Materials without JLL’s specific consent. . JLL shall not be liable for the use of any Material for any purpose other 6.4. If the Client fails to make any payment due to JLL than that for which JLL provided it to the Client. under the Agreement by the due date for payment, then JLL reserves the right to charge late payment interest after the 6.3 Nothing in this clause 6 shall affect the Client’s due date on the overdue amount at the rate of 4% per cent per intellectual property rights that pre-exist the Services. The annum above the Bank of England's official bank rate from Client shall grant to JLL an irrevocable, royalty-free, non- time to time. Such interest shall accrue on a daily basis from exclusive, sub-licensable licence to use such pre-existing

General Terms and Conditions of Business – Version 1.6 COPYRIGHT © JONES LANG LASALLE IP, INC. 2018. All Rights Reserved 3 intellectual property rights for the purpose of carrying out the where that information or material provided is Services. inaccurate or incomplete;

8. CONFIDENTIALITY b) to the extent that the Client or someone on the

Client’s behalf for whom JLL is not responsible is A Party (receiving party) shall keep in strict confidence all responsible, and where JLL is one of the parties technical or commercial know-how, processes or initiatives liable in conjunction with others, JLL’s liability shall which are of a confidential nature and have been disclosed to be limited to the share of loss reasonably the receiving party by the other Party (disclosing party), its attributable to JLL on the assumption that all other employees, agents or subcontractors, and any other parties pay the share of loss attributable to them confidential information concerning the disclosing party's (whether or not they do); or business, its products and services which the receiving party may obtain. The receiving party shall only disclose such c) due to any failure by the Client or any representative confidential information to those of its employees, agents and or agent of the Client to follow JLL’s advice or subcontractors who need to know it for the purpose of recommendations. discharging the receiving party's obligations under the Agreement, and shall ensure that such employees, agents and 9.3. JLL owes no duty of care and has no liability to subcontractors comply with the obligations set out in this anyone but the Client unless specifically agreed in writing by clause as though they were a party to the Agreement. The JLL. receiving party may also disclose such of the disclosing party's confidential information as is required to be disclosed by law, 10. TERMINATION any governmental or regulatory authority or by a court of competent jurisdiction, or with the consent of the disclosing 10.1. Without limiting its other rights or remedies, either party. Party may terminate the Agreement by giving the other Party 28 days’ written notice. 9. LIABILITY 10.2. Without limiting its other rights or remedies, either 9.1. Save in respect of JLL’s liability for death or personal Party may terminate the Agreement with immediate effect by injury caused by its negligence, or the negligence of its giving written notice to the other Party if: employees, agents or subcontractors or for fraud or fraudulent misrepresentation (which is not excluded or a) the other Party commits a material breach of the limited in any way): Agreement and (if such a breach is remediable) fails to remedy that breach within 14 days of that Party a) JLL shall under no circumstances whatsoever be being notified in writing to do so; liable, whether in contract, tort (including negligence), breach of statutory duty, or otherwise, b) a conflict of interest arises which prevents JLL for any loss of profit, loss of revenue or loss of continuing to act for the Client; or anticipated savings, or for any indirect, special or c) the other Party becomes Insolvent. consequential loss arising out of or in connection with the Agreement and/or the Services; and 10.3. Without limiting its other rights or remedies, JLL may suspend provision of the Services under the Agreement b) JLL’s total liability in respect of all losses arising out or any other contract between the Client and JLL if the Client of or in connection with the Agreement and/or the becomes Insolvent, or JLL reasonably believes that the Client Services, whether in contract, tort (including is about to become Insolvent, or if the Client fails to pay any negligence), breach of statutory duty, or otherwise, amount due under the Agreement on the due date for shall not exceed £5 million. payment.

9.2. JLL shall have no liability for the consequences, 10.4. On termination of the Agreement for any reason: including delay in or failure to provide the Services: a) the Client shall immediately pay to JLL all of JLL's a) due to any failure by the Client or any representative outstanding unpaid invoices and interest and, in or agent of the Client to provide information or other respect of Services supplied but for which no invoice material that JLL reasonably requires promptly, or has been submitted and associated expenses, JLL

General Terms and Conditions of Business – Version 1.6 COPYRIGHT © JONES LANG LASALLE IP, INC. 2018. All Rights Reserved 4 shall submit an invoice, which shall be payable by processor shall comply with Data Protection Legislation as it the Client immediately on receipt; relates to data processors. Nothing within this Agreement relieves either party of its own direct responsibilities and b) the Client shall return any Materials which have not liabilities under Data Protection Legislation. been fully paid for. Until they have been returned, the Client shall be solely responsible for their safe 10.3 JLL shall not process personal data other than on keeping and will not use them for any purpose not the documented instructions of the Client, unless it is required connected with the Agreement. Where all fees have to process the personal data by any law to which it is subject. been paid the Client shall be entitled to retain such In such a case JLL shall inform the Client of that legal Materials and they shall be licensed in accordance requirement before complying with it, unless that law with clause 6.2; prohibits JLL from doing so. c) JLL may, to comply with legal, regulatory or 10.4 JLL shall ensure that it and any third party with professional requirements, keep one copy of all access to the personal data has appropriate technical and material it then has that was supplied by or on organisational security measures in place, to guard against behalf of the Client in relation to the Services; the unauthorised or unlawful processing of personal data and against the accidental or unlawful destruction, loss, d) the accrued rights, remedies, obligations and alteration, unauthorised disclosure of, or access to, the liabilities of the Parties as at expiry or termination personal data. On request in writing, JLL shall provide to the shall be unaffected, including the right to claim Client a general description of the security measures it has damages in respect of any breach of the Agreement adopted. which existed at or before the date of termination or expiry; and 10.5 JLL shall take reasonable steps to ensure any person that has access to personal data is made aware of their e) clauses which expressly or by implication survive responsibilities, and subject to enforceable duties of termination shall continue in full force and effect. confidentiality.

10.5. JLL may destroy any papers it has after six years 10.6 JLL shall notify the Client without undue delay if it: from the earlier of completion of the Services or termination of the Agreement. 10.6.1 receives a request from an individual for subject access, or a request relating to any of the other individuals’ 11. DATA PROTECTION rights available under the Data Protection Legislation, in respect of personal data; 11.1. JLL (including third parties as described in our Privacy Statement available at www.jll.co.uk) may process in 10.6.2 receives any enquiry or complaint from a data hard copy and/or in electronic form, personal data regarding subject, supervisory authority or third party regarding the the Client, its officers and any other individuals connected processing of the personal data; with the Client (‘Client Contacts’). It may also verify the 10.6.3 becomes aware of a personal data breach affecting identity of Client Contacts including carrying out checks with personal data, unless the breach is unlikely to result in a risk third parties such as financial probity, anti-money laundering to the rights and freedoms of data subjects. or sanctions-checking agencies. To facilitate compliance with money laundering regulations and avoid duplication of due 10.7 JLL shall assist and provide all information diligence, the Client acknowledges that JLL may share Client reasonably requested in writing by the Client in relation to Contacts’ personal data with such third party agencies and data protection impact assessments or ‘prior consultation’ JLL Affiliates. with supervisory authorities, or matters under clause 10.6.

10.2 Unless the Agreement and factual arrangements 10.8 JLL shall maintain all the records and information dictate otherwise, as between the parties for the purposes of necessary to demonstrate its compliance with the the Agreement, the Client is deemed to be the controller and requirements set out in this clause 10. JLL is deemed to be the processor. The Client will ensure that any transfer of personal data to JLL (and any sub-processors 10.9 JLL shall allow the Client (or its appointed auditor) under clause 10.11) complies with Data Protection to audit JLL’s compliance with this clause 10. The Client Legislation. In providing the Services, JLL in its role as agrees to give reasonable notice of any audit, to undertake

General Terms and Conditions of Business – Version 1.6 COPYRIGHT © JONES LANG LASALLE IP, INC. 2018. All Rights Reserved 5 any audit during normal business hours, to take steps to have the right to terminate the Agreement immediately by minimise disruption to JLL’s business, and not exercise this giving written notice to the Party. right of audit more than once every year unless instructed otherwise by a supervisory authority. 12.3. This clause does not apply to the payment of fees due to JLL by the Client. 10.10 JLL shall upon receipt of a written request from the 13. GENERAL Client delete or return all the personal data at the end of the provision of the Services. JLL may retain copies of the 13.1. Subcontracting. JLL may subcontract or deal in personal data in accordance with any legal or regulatory any other manner with all or any of its rights or obligations requirements, or any guidance that has been issued in under the Agreement to any third party or agent provided relation to deletion or retention by a supervisory authority. that:

10.11 JLL shall only engage a sub-processor where: (i) where JLL subcontracts or delegates its obligations at the specific request of the Client, JLL shall have no 10.11.1 the Client has agreed in writing to the engagement liability for the acts or omissions of the third party or of the sub-processor; or agent; and

10.11.2 the sub-processor is an Affiliate of JLL or a service (ii) otherwise, JLL shall remain liable for the acts or provider engaged by JLL to support the infrastructure and omissions of the third party or agent, unless the administration of its business (with details maintained at Client agrees to rely only on the third party or agent, http://www.jll.co.uk/sub-processors). such agreement not to be unreasonably withheld.

10.12 JLL shall ensure that any arrangements between JLL 13.2. Notices. a) Any notice or other and a sub-processor are governed by a written contract communication, including the service of any including terms which offer at least the same level of proceedings or other documents in any legal action protection for personal data as those set out in this clause. given to a Party under or in connection with the Where JLL intends to engage a new sub-processor under Agreement shall be in writing, addressed to that 10.11.2 and the Client objects, then Client may choose to Party at its registered office (if it is a company) or its terminate the Services in accordance with clause 9. principal place of business (in any other case) or

such other address as that Party may have specified 10.13 In accordance with clause 12.1, JLL shall remain to the other Party in writing in accordance with this liable for the acts and omissions of its sub-processors. clause, and shall be delivered personally or sent by 10.14 JLL shall only transfer personal data outside the pre-paid first class post or commercial courier. Any European Economic Area where it has ensured the transfer notice or other communication sent to a Party complies with Data Protection Legislation. located in a different country to the sending Party must be sent by commercial courier. 12. FORCE MAJEURE b) A notice or other communication shall be deemed to 12.1. Neither Party shall be liable to the other Party as a have been received: if delivered personally, when result of any delay or failure to perform its obligations under left at the address referred to in clause 12.2.a); if sent the Agreement as a result of any event beyond the reasonable by pre-paid first class post at 9.00 am on the second control of either Party including strikes, lock-outs or other business day after posting; or if sent by commercial industrial disputes (whether involving the workforce of JLL or courier, on the date and at the time that the any other party), failure of a utility service or transport courier's delivery receipt is signed. For this purpose network, act of god, war, riot, civil commotion, malicious a business day means a day (other than a Saturday damage, compliance with any law or governmental order, or Sunday) on which banks are open for business in rule, regulation or direction, accident, breakdown of plant or London. machinery, fire, flood, storm or default of suppliers or subcontractors. 13.3. Severance. a) If any provision or part-provision of the Agreement is or becomes invalid, illegal or 12.2. If such an event prevents either Party from providing unenforceable, it shall be deemed modified to the any of the Services for more than four weeks, the affected minimum extent necessary to make it valid, legal Party shall, without limiting their other rights or remedies, and enforceable. If such modification is not

General Terms and Conditions of Business – Version 1.6 COPYRIGHT © JONES LANG LASALLE IP, INC. 2018. All Rights Reserved 6 possible, the relevant provision or part-provision 13.9. Directors. Some employees of JLL have the title of shall be deemed deleted. Any modification to or “director”. The Client acknowledges that this does not mean deletion of a provision or part-provision under this they hold the office of director for the purposes of the clause shall not affect the validity and enforceability Companies Act 2006. Rather, it means that they hold a senior of the rest of the Agreement. role as an employee. b) If any provision or part-provision of the Agreement 13.10. Complaints. JLL’s complaints procedure is is invalid, illegal or unenforceable, the Parties shall available on request. negotiate in good faith to amend such provision so that, as amended, it is legal, valid and enforceable, 13.11. Publicity. Neither Party may publicise or issue any and, to the greatest extent possible, achieves the specific information to the media about the Services or the intended commercial result of the original Agreement’s subject matter without the consent of the other. provision. 13.12. Criminal Activity. The Client acknowledges that to

13.4. Waiver. A waiver of any right under the Agreement comply with law and professional rules on suspected criminal or law is only effective if it is in writing and shall not be activity JLL is required to check the identity of Clients. JLL is deemed to be a waiver of any subsequent breach or default. also required by law to report to the appropriate authorities No failure or delay by a Party in exercising any right or any knowledge or suspicion that a Client’s funds (or any funds remedy provided under the Agreement or by law shall provided for or on behalf of a client) derive from the proceeds constitute a waiver of that or any other right or remedy, nor of crime and may be unable to tell the Client that it has done shall it prevent or restrict its further exercise of that or any this. other right or remedy. No single or partial exercise of such 13.13. Regulated Activity. JLL is not permitted to carry right or remedy shall prevent or restrict the further exercise out any activity regulated by the Financial Services and of that or any other right or remedy. Markets Act 2000 including the insurance of property, except

13.5. No Partnership or Agency. Nothing in the through an authorised person and in accordance with a Agreement is intended to, or shall be deemed to, establish separate agreement. Unless JLL specifically agrees otherwise any partnership or joint venture between the Parties, nor in writing, no communication by JLL is intended to be, or constitute either Party the agent of the other for any purpose. should be construed as, an invitation or inducement to any Neither Party shall have authority to act as agent for, or to person to engage in investment activity for the purposes of bind, the other Party in any way. the Financial Services and Markets Act 2000, or as the approval of any communication of any such invitation or 13.6. Third parties. Subject to clause 12.8, a person who inducement. is not a Party to the Agreement shall not have any rights to enforce its terms unless specifically agreed in writing. 13.14. Anti-bribery. Both parties shall comply with all applicable laws, statutes, regulations, relating to anti-bribery 13.7. Variation. Except as set out in these Terms, no and anti-corruption including but not limited to the Bribery variation of the Agreement, including the introduction of any Act 2010. additional terms and conditions, shall be effective unless it is agreed in writing and signed by both parties. Unless otherwise 13.15. Governing Law. The Agreement and any disputes expressly agreed, variation of these terms does not require the arising from it (including non-contractual claims and consent of any third party (whether any employee referred to disputes) are governed by English Law. in clause 12.8 or otherwise). 13.16. Jurisdiction. Each Party irrevocably agrees that the

13.8. Protection of Employees. Save in respect of fraud courts of England shall have exclusive jurisdiction over any or criminal conduct no employee of JLL or any Affiliate has dispute or claim arising out of or in connection with this any personal liability to the Client nor to anyone representing agreement or its subject matter or formation (including non- the Client. Neither the Client nor anyone representing the contractual disputes or claims). Client may make a claim or bring proceedings against an 12.17 Language. These Terms are provided in English and employee or former employee personally. Any such JLL will communicate with the Client in English. employee of JLL is entitled to enforce this provision pursuant to the Contracts (Rights of Third Parties) Act 1999. 12.18. Survival. Clauses 5 to 9 shall survive termination of the Agreement.

General Principles Adopted in the preparation of Valuations and Reports

These General Principles should be read in conjunction with JLL’s General Terms and Conditions of Business except insofar as this may be in conflict with other contractual arrangements.

1 RICS Valuation - Global Standards 2017 All work is carried out in accordance with the Professional Standards, Valuation Technical and Performance Standards and Valuation Applications contained in the RICS Valuation – Global Standards 2017 published by the Royal Institution of Chartered Surveyors and the RICS Valuation – Professional Standards UK January 2014 (revised April 2015) as applicable (“the RICS Red Book”), by valuers who conform to the requirements thereof. Our valuations may be subject to monitoring by the RICS. The valuations are undertaken by currently Registered RICS Valuers.

2 Valuation Basis: Our reports state the purpose of the valuation and, unless otherwise noted, the basis of valuation is as defined in “the RICS Red Book”. The full definition of the basis, which we have adopted, is either set out in our report or appended to these General Principles.

3 Assumptions and Special Assumptions: Where we make an ‘assumption’ or ‘special assumption’ in arriving at our valuations, we define these terms in accordance with “the RICS Red Book” as follows: Assumption: A supposition taken to be true. Special Assumption: An assumption that either assumes facts that differ from the actual facts existing at the valuation date, or that would not be made by a typical market participant in a transaction on the valuation date. We will not take steps to verify any assumptions.

4 Disposal Costs Taxation and Other Liabilities: No allowances are made for any expenses of realisation, or for taxation, which might arise in the event of a disposal. All property is considered as if free and clear of all mortgages or other charges, which may be secured thereon. However, we take into account purchaser’s costs in investment valuations in accordance with market conventions. No allowance is made for the possible impact of potential legislation which is under consideration. Valuations are prepared and expressed exclusive of VAT payments, unless otherwise stated.

5 Sources of Information: Where we have been provided with information by the client, or its agents, we assume that it is correct and complete and is up to date and can be relied upon. We assume that no information that has a material effect on our valuations has been withheld. In respect of valuations for loan security purposes, commissioned by a lending institution, we may also rely on information provided to us by the Borrower or its advisors. In such cases, we have similarly assumed that all information is correct, complete, up-to-date and can be relied upon and that no pertinent information has been withheld.

General Principles July 2017 V1.1

6 Title and Tenancy Information: We do not normally read leases or documents of title. We assume, unless informed to the contrary, that each property has a good and marketable title, that all documentation is satisfactorily drawn and that there are no encumbrances, restrictions, easements or other outgoings of an onerous nature, which would have a material effect on the value of the interest under consideration, nor material litigation pending. Where we have been provided with documentation we recommend that reliance should not be placed on our interpretation without verification by your lawyers. We have assumed that all information provided by the client, or its agents, is correct, up to date and can be relied upon.

7 Tenants: Although we reflect our general understanding of a tenant’s status in our valuations i.e. the market’s general perception of their creditworthiness, enquiries as to the financial standing of actual or prospective tenants are not normally made unless specifically requested. Where properties are valued with the benefit of lettings, it is therefore assumed, unless we are informed otherwise, that the tenants are capable of meeting their financial obligations under the lease and that there are no arrears of rent or undisclosed breaches of covenant.

8 Measurements/Floor Areas: All measurement is carried out in accordance with either the International Property Measurement Standards (IPMS) or the Code of Measuring Practice (6th Edition) issued by the Royal Institution of Chartered Surveyors, except where we specifically state that we have relied on another source. The areas adopted are purely for the purpose of assisting us in forming an opinion of capital value. They should not be relied upon for other purposes nor used by other parties without our written authorisation. Where floor areas have been provided to us, we have relied upon these and have assumed that they have been properly measured in accordance with the International Property Measurement Standards (IPMS) or the Code of Measuring Practice referred to above.

9 Site Areas: Site areas are generally calculated using proprietary digital mapping software and are based on the site boundaries indicated to us either at the time of our inspection, or on plans supplied to us. No responsibility is accepted if the wrong boundaries are indicated to us.

10 Estimated Rental Values: Our assessment of rental values is formed purely for the purposes of assisting in the formation of an opinion of capital value and is generally on the basis of Market Rent, as defined in “the RICS Red Book”. Where circumstances dictate that it is necessary to utilise a different rental value in our capital valuation, we will generally set out the reasons for this in our report. Such a figure does not necessarily represent the amount that might be agreed by negotiation, or determined by an Expert, Arbitrator or Court, at rent review or lease renewal or the figure that might be obtained if the property or unit were being let on the open market.

11 Town Planning, Acts of Parliament and Other Statutory Regulations: Information on town planning is, wherever possible, obtained either verbally from local planning authority officers or publicly available electronic or other sources. It is obtained purely to assist us in forming an opinion of capital value and should not be relied upon for other purposes. If reliance is required we recommend that verification be obtained from lawyers that: i the position is correctly stated in our report; ii the property is not adversely affected by any other decisions made, or conditions prescribed, by public authorities; and iii that there are no outstanding statutory notices.

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Our valuations are prepared on the basis that the premises (and any works thereto) comply with all relevant statutory and EC regulations, including fire regulations, access and use by disabled persons, control and remedial measures for asbestos in the workplace, the Energy Performance of Buildings Directive and any applicable bye laws. All buildings are assumed to have Energy Performance Certificates. Our valuation does not take into account any rights, obligations or liabilities, whether prospective or accrued, under the Defective Premises Act 1972, or the Health and Safety at Work etc. Act 1974.

12 Structural Surveys: Unless expressly instructed, we do not carry out a structural survey, nor do we test the services and we, therefore, do not give any assurance that any property is free from defect. We seek to reflect in our valuations any readily apparent defects or items of disrepair, which we note during our inspection, or costs of repair which are brought to our attention. Otherwise, we assume that each building is structurally sound and that there are no structural, latent or other material defects. Unless stated otherwise in our reports we assume any tenants are fully responsible for the repair of their demise either directly or through a service charge.

13 Deleterious Materials: We do not normally carry out or commission investigations on site to ascertain whether any building was constructed or altered using deleterious materials or techniques (including, by way of example high alumina cement concrete, woodwool as permanent shuttering, calcium chloride or asbestos). Unless we are otherwise informed, our valuations are on the basis that no such materials or techniques have been used.

14 Site Conditions: We do not normally carry out or commission investigations on site in order to determine the suitability of ground conditions and services for the purposes for which they are, or are intended to be, put; nor do we undertake archaeological, ecological or environmental surveys. Unless we are otherwise informed, our valuations are on the basis that these aspects are satisfactory and that, where development is contemplated, no extraordinary expenses, delays or restrictions will be incurred during the construction period due to these matters.

15 Environmental Contamination: Unless expressly instructed, we do not carry out or commission site surveys or environmental assessments, or investigate historical records, to establish whether any land or premises are, or have been, contaminated. Therefore, unless advised to the contrary, our valuations are carried out on the basis that properties are not affected by environmental contamination. However, should our site inspection and further reasonable enquiries during the preparation of the valuation lead us to believe that the land is likely to be contaminated we will discuss our concerns with you.

16 Insurance: Unless expressly advised to the contrary we assume that appropriate cover is and will continue to be available on commercially acceptable terms. In particular, we will have regard to the following: Composite Panels Insurance cover, for buildings incorporating certain types of composite panel may only be available subject to limitation, for additional premium, or unavailable. Information as to the type of panel used is not normally available. Accordingly, our opinions of value make no allowance for the risk that insurance cover for any property may not be available, or may only be available on onerous terms. Terrorism Our valuations have been made on the basis that the properties are insured against risks of loss or damage including damage caused by acts of Terrorism as defined by the 2000 Terrorism Act. We have assumed that the insurer, with whom cover has been placed, is reinsured by the Government backed insurer, Pool Reinsurance Company Limited.

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Flood and Rising Water Table Our valuations have been made on the assumption that the properties are insured against damage by flood and rising water table. Unless stated to the contrary our opinions of value make no allowance for the risk that insurance cover for any property may not be available, or may only be available on onerous terms.

17 Outstanding Debts: In the case of property where construction works are in hand, or have recently been completed, we do not normally make allowance for any liability already incurred, but not yet discharged, in respect of completed works, or obligations in favour of contractors, subcontractors or any members of the professional or design team.

18 Confidentiality and Third Party Liability: Our Valuations and Reports are confidential to the party to whom they are addressed and for the specific purpose to which they refer, and no responsibility whatsoever is accepted to any third parties. Neither the whole, nor any part, nor reference thereto, may be published in any document, statement or circular, or in any communication with third parties, without our prior written approval of the form and context in which it will appear.

19 Statement of Valuation Approach: We are required to make a statement of our valuation approach. In the absence of any particular statements in our report the following provides a generic summary of our approach. The majority of institutional portfolios comprise income producing properties. We usually value such properties adopting the investment approach where we apply a capitalisation rate, as a multiplier, against the current and, if any, reversionary income streams. Following market practice we construct our valuations adopting hardcore methodology where the reversions are generated from regular short term uplifts of market rent. We would normally apply a term and reversion approach where the next event is one which fundamentally changes the nature of the income or characteristics of the investment. Where there is an actual exposure or a risk thereto of irrecoverable costs, including those of achieving a letting, an allowance is reflected in the valuation. Vacant buildings, in addition to the above methodology, may also be valued and analysed on a comparison method with other capital value transactions where applicable. Where land is held for development we adopt the comparison method when there is good evidence, and/or the residual method, particularly on more complex and bespoke proposals. There are situations in valuations for accounts where we include in our valuation properties which are owner- occupied. These are valued on the basis of existing use value, thereby assuming the premises are vacant and will be required for the continuance of the existing business. Such valuations ignore any higher value that might exist from an alternative use.

20 Capital Expenditure Requirement: Where buildings are undergoing works, such as refurbishment or repairs, or where developments are in progress, we have relied upon cost information supplied to us by the client or their appointed specialist advisors.

21 Goodwill, Fixtures and Fittings: Unless otherwise stated our valuation excludes any additional value attributable to goodwill, or to fixtures and fittings which are only of value, in situ, to the present occupier.

22 Plant and Machinery: No allowance has been made for any plant, machinery or equipment unless it forms an integral part of the building and would normally be included in a sale of the building.

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23 Services: We do not normally carry out or commission investigations into the capacity or condition of services. Therefore we assume that the services, and any associated controls or software, are in working order and free from defect. We also assume that the services are of sufficient capacity to meet current and future needs.

24 Land and Building Apportionments: When instructed, we will provide apportionments between land and buildings for depreciation purposes only. Such apportionments are not valuations and should not be used for any other purpose unless specified in the report.

25 Portfolio Valuations: In respect of valuations of portfolios of properties, our overall valuation is an aggregate of the individual values of each individual property. The valuation assumes, therefore, that each property would be marketed as an individual property and not as part of a portfolio. Consequently no portfolio premium or discount has been reflected and any consequence of marketing a range of individual properties together has also not been reflected in our valuations. However, if adjoining or complimentary properties might achieve a higher value by being marketed together (known as “prudent lotting”), we have reported the higher value that would emerge.

26 Rating: Any information regarding rating has generally been obtained from the Valuation Office website. We will not investigate whether any rating assessment is a fair assessment or considered the likelihood of an appeal being successful.

27 Plans and Maps: All plans and maps included in our report are strictly for identification purposes only, and, whilst believed to be correct, are not guaranteed and must not form part of any contract. All are published under licence and may include mapping data from Ordnance Survey © Crown Copyright. All rights are reserved.

Market Value July 2017 V1.1

Market Value

Definition and Interpretive Commentary reproduced from the RICS Valuation – Global

Standards 2017, VPS 4 and IVS Framework

1.1 Market Value

1.1.1 The definition of Market Value as defined in IVS 104 paragraph 30.1 is:

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

1.1.2 Market value is a basis of value that is internationally recognised and has a long-established definition. It describes an exchange between parties that are unconnected and are operating freely in the marketplace and represents the figure that would appear in a hypothetical contract of sale, or equivalent legal document, at the valuation date, reflecting all those factors that would be taken into account in framing their bids by market participants at large and reflecting the highest and best use of the asset. The highest and best use of an asset is the use of an asset that maximises its productivity and that is possible, legally permissible and financially feasible – fuller treatment of this particular premise of value can be found at section 140 of IVS 104.

1.1.3 It ignores any price distortions caused by special value (an amount that reflects particular attributes of an asset that are only of value to a special purchaser) or marriage value. It represents the price that would most likely be achievable for an asset across a wide range of circumstances. Market rent applies similar criteria for estimating a recurring payment rather than a capital sum.

1.1.4 In applying market value, regard must also be had to the requirement that the valuation amount reflects the actual market state and circumstances as of the effective valuation date. The full conceptual framework for market value can be found at paragraph 30.2 of IVS 104.

1.1.5 Notwithstanding the disregard of special value, where the price offered by prospective buyers generally in the market would reflect an expectation of a change in the circumstances of the asset in the future, the impact of that expectation is reflected in market value. Examples of where the expectation of additional value being created or obtained in the future may have an impact on the market value include:

 the prospect of development where there is no current permission for that development and

 the prospect of marriage value arising from merger with another property or asset, or interests within the same property or asset, at a future date.

1.1.6 The impact on value arising by use of an assumption or special assumption should not be confused with the additional value that might be attributed to an asset by a special purchaser.

1.1.7 In some jurisdictions a basis of value described as ‘highest and best use’ is adopted and this may either be defined by statute or established by common practice in individual countries or states.

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IVS Framework

30.2 The definition of Market Value shall be applied in accordance with the following conceptual framework:

(a) “the estimated amount” refers to a price expressed in terms of money payable for the asset in an arm’s length market transaction. Market Value is the most probable price reasonably obtainable in the market on the valuation date in keeping with the market value definition. It is the best price reasonably obtainable by the seller and the most advantageous price reasonably obtainable by the buyer. This estimate specifically excludes an estimated price inflated or deflated by special terms or circumstances such as atypical financing, sale and leaseback arrangements, special considerations or concessions granted by anyone associated with the sale, or any element of value available only to a specific owner or purchaser;

(b) “an asset or liability should exchange” refers to the fact that the value of an asset or liability is an estimated amount rather than a predetermined amount or actual sale price. It is the price in a transaction that meets all the elements of the Market Value definition at the valuation date;

(c) “on the valuation date” requires that the value is time-specific as of a given date. Because markets and market conditions may change, the estimated value may be incorrect or inappropriate at another time. The valuation amount will reflect the market state and circumstances as at the valuation date, not those at any other date;

(d) “between a willing buyer” refers to one who is motivated, but not compelled to buy. This buyer is neither over eager nor determined to buy at any price. This buyer is also one who purchases in accordance with the realities of the current market and with current market expectations, rather than in relation to an imaginary or hypothetical market that cannot be demonstrated or anticipated to exist. The assumed buyer would not pay a higher price than the market requires. The present owner is included among those who constitute “the market”;

(e) “and a willing seller” is neither an over eager nor a forced seller prepared to sell at any price, nor one prepared to hold out for a price not considered reasonable in the current market. The willing seller is motivated to sell the asset at market terms for the best price attainable in the open market after proper marketing, whatever that price may be. The factual circumstances of the actual owner are not a part of this consideration because the willing seller is a hypothetical owner;

(f) “in an arm’s length transaction” is one between parties who do not have a particular or special relationship, eg parent and subsidiary companies or landlord and tenant that may make the price level uncharacteristic of the market or inflated. The Market Value transaction is presumed to be between unrelated parties, each acting independently;

(g) “after proper marketing” means that the asset has been exposed to the market in the most appropriate manner to effect its disposal at the best price reasonably obtainable in accordance with the Market Value definition. The method of sale is deemed to be that most appropriate to obtain the best price in the market to which the seller has access. The length of exposure time is not a fixed period but will vary according to the type of asset and market conditions. The only criterion is that there must have been sufficient time to allow the asset to be brought to the attention of an adequate number of market participants. The exposure period occurs prior to the valuation date;

Market Value July 2017 V1.1

(h) “where the parties had each acted knowledgeably, prudently” presumes that both the willing buyer and the willing seller are reasonably informed about the nature and characteristics of the asset, its actual and potential uses, and the state of the market as of the valuation date. Each is further presumed to use that knowledge prudently to seek the price that is most favourable for their respective positions in the transaction. Prudence is assessed by referring to the state of the market at the valuation date, not with benefit of hindsight at some later date. For example, it is not necessarily imprudent for a seller to sell assets in a market with falling prices at a price that is lower than previous market levels. In such cases, as is true for other exchanges in markets with changing prices, the prudent buyer or seller will act in accordance with the best market information available at the time;

(i) “and without compulsion” establishes that each party is motivated to undertake the transaction, but neither is forced or unduly coerced to complete it.

30.3 The concept of Market Value presumes a price negotiated in an open and competitive market where the participants are acting freely. The market for an asset could be an international market or a local market. The market could consist of numerous buyers and sellers, or could be one characterised by a limited number of market participants. The market in which the asset is presumed exposed for sale is the one in which the asset notionally being exchanged is normally exchanged.

30.4 The Market Value of an asset will reflect its highest and best use. The highest and best use is the use of an asset that maximises its potential and that is possible, legally permissible and financially feasible. The highest and best use may be for continuation of an asset’s existing use or for some alternative use. This is determined by the use that a market participant would have in mind for the asset when formulating the price that it would be willing to bid.

30.5 The nature and source of the valuation inputs must be consistent with the basis of value, which in turn must have regard to the valuation purpose. For example, various approaches and methods may be used to arrive at an opinion of value providing they use market-derived data. The market approach will, by definition, use market-derived inputs. To indicate Market Value, the income approach should be applied, using inputs and assumptions that would be adopted by participants. To indicate Market Value using the cost approach, the cost of an asset of equal utility and the appropriate depreciation should be determined by analysis of market-based costs and depreciation.

30.6 The data available and the circumstances relating to the market for the asset being valued must determine which valuation method or methods are most relevant and appropriate. If based on appropriately analysed market-derived data, each approach or method used should provide an indication of Market Value.

30.7 Market Value does not reflect attributes of an asset that are of value to a specific owner or purchaser that are not available to other buyers in the market. Such advantages may relate to the physical, geographic, economic or legal characteristics of an asset. Market Value requires the disregard of any such element of value because, at any given date, it is only assumed that there is a willing buyer, not a particular willing buyer.

1.2 Special Value Special value is an amount that reflects particular attributes of an asset that are only of value to a special

purchaser. A special purchaser is a particular buyer for whom a particular asset has special value because of advantages arising from its ownership that would not be available to other buyers in a market.

Market Rent July 2017 V1.1

Market Rent Definition and Interpretive Commentary reproduced from the RICS Valuation – Global Standards 2017, VPS 4 and IVS Framework

1.1 Market rent

1.1.1 Market rent is defined in IVS 104 paragraph 40.1 as:

The estimated amount for which an interest in real property should be leased on the valuation date between a willing lessor and a willing lessee on appropriate lease terms in an arm’s length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion.

1.1.2 Market rent will vary significantly according to the terms of the assumed lease contract. The appropriate lease terms will normally reflect current practice in the market in which the property is situated, although for certain purposes unusual terms may need to be stipulated. Matters such as the duration of the lease, the frequency of rent reviews and the responsibilities of the parties for maintenance and outgoings will all impact the market rent. In certain countries or states, statutory factors may either restrict the terms that may be agreed, or influence the impact of terms in the contract. These need to be taken into account where appropriate.

1.1.3 Market rent will normally be used to indicate the amount for which a vacant property may be let, or for which a let property may be re-let when the existing lease terminates. Market rent is not a suitable basis for settling the amount of rent payable under a rent review provision in a lease, where the definitions and assumptions specified in the lease have to be used.

1.1.4 Valuers must therefore take care to set out clearly the principal lease terms that are assumed when providing an opinion of market rent. If it is the market norm for lettings to include a payment or concession by one party to the other as an incentive to enter into a lease, and this is reflected in the general level of rents agreed, the market rent should also be expressed on this basis. The nature of the incentive assumed must be stated by the valuer, along with the assumed lease terms.

IVS Framework

40.1 Market Rent is the estimated amount for which an interest in real property should be leased on the valuation date between a willing lessor and a willing lessee on appropriate lease terms in an arm’s length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion.

40.2 Market Rent may be used as a basis of value when valuing a lease or an interest created by a lease. In such cases, it is necessary to consider the contract rent, and, where it is different, the market rent.

40.3 The conceptual framework supporting the definition of Market Value… can be applied to assist in the interpretation of Market Rent. In particular, the estimated amount excludes a rent inflated or deflated by special terms, considerations or concessions. The “appropriate lease terms” are terms that would typically be agreed in the market for the type of property on the valuation date between market participants. An indication of Market Rent should only be provided in conjunction with an indication of the principal lease terms that have been assumed.

40.4 Contract Rent is the rent payable under the terms of an actual lease. It may be fixed for the duration of the lease, or variable. The frequency and basis of calculating variations in the rent will be set out in the lease and must be identified and understood in order to establish the total benefits accruing to the lessor and the liability of the lessee.

40.5 In some circumstances the Market Rent may have to be assessed based on terms of an existing lease (eg, for rental determination purposes where the lease terms are existing and therefore not to be assumed as part of a notional lease).

Market Rent July 2017 V1.1

40.6 In calculating Market Rent, the valuer must consider the following: a) in regards to a Market Rent subject to a lease, the terms and conditions of that lease are the appropriate lease terms unless those terms and conditions are illegal or contrary to overarching legislation, and b) in regard to a Market Rent that is not subject to a lease, the assumed terms and conditions are the terms of a notional lease that would typically be agreed in a market for the type of property on the valuation date between market participants.

Appendices

Appendix 3 Location Maps and Plans

T 2

E E 0 Milton Gate E N

R A

L T

Y O

R O

U M B

Veritas sin g Bo llard House MIL TON CO URT Risin g Bo

llard

25 o

C R 1

Guildhall School of 2 Music & Drama 1 to 287

R OP 5 EM AK Arbuthnot House ER ST RE ET

1 Bo ro Co ns 2 t, 0 Cit GL City Point y & A C sly ou C nt on y o st f th & L e C B ity Bd of y Lo nd on

y d

d r a 44 W

bl n o i t nta a t ur m S T u e e r i s u H

M e E l c N y C A L

k R 1 7 O 1

o O t

M 2 4 1

FB PH

Turntable 5 4

NEW UN ub Sta ION S El S TREET

r e t l e h

D L 1 E I M 4 o 1 F or ( gat TCB R S e tatio O n)

M 7 14.0m 3 1

Ra mp Ra mp

0m 10m 20m 30m

This plan is published for the convenience of identification only and although believed to be correct is not guaranteed and it does not form any part of any contract. © Crown Copyright. All rights reserved. Licence Number LIG0074. Citypoint, 1 Ropemaker Street, London EC2

Appendix 4 Photographs

Eastern Elevation

Galleria

New Union Street and loading bay

Plaza and main office reception

Reception for levels 6-8

Level 8 showing reduced height

Level 8

Level 15 west

Level 15 East

Level 18

Level 33

Retail unit 3

Retail Unit 4

Appendix 5 Rateable Values

© 2018 Jones Lang LaSalle IP, Inc. All rights reserved. Address Description Current rateable value Rates payable OFFICES Level 33 City Point 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £680,000 £352,240 Pt Level 32 East City Point 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £277,500 £143,745 Pt Level 32 West City Point 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £420,000 £217,560 Level 31 City Point 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £680,000 £352,240 Level 30 City Point 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £320,000 £165,760 Pt Level 30 City Point 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £352,500 £182,595 Level 29 City Point 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £665,000 £344,470 (exc Pt Sw) Pt 28th Flr City Point 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £570,000 £295,260 Pt 28th Flr Sw City Point 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £85,000 £44,030 27 Th F 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £650,000 £336,700 Level 26 City Point 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £625,000 £323,750 Level 25 City Point 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £625,000 £323,750 Level 24 City Point 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £625,000 £323,750 Pt 23rd Flr East City Point 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £320,000 £165,760 Pt 23rd Flr West City Point 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £295,000 £152,810 Level 22 City Point 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £615,000 £318,570 Level 21 City Point 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £610,000 £315,980 Level 20 City Point 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £605,000 £313,390 Level 19 City Point 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £575,000 £297,850 Levl 18 Citypoint 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £575,000 £297,850 Level 17 Citypoint 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £555,000 £287,490 Pt Level 16 East Citypoint 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £322,500 £167,055 Pt Level 16 West Citypoint 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £245,000 £126,910 Pt Level 15 East Citypoint 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £199,000 £103,082 Suite Ctp Level 15 Citypoint At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £10,000 £4,980 Pt Level 15 West Citypoint 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £221,000 £114,478 Suite 1518 Level 15 Citypoint At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £6,200 £3,088 Pt Lvl 14 Citypoint At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £78,000 £40,404 Suite Comms Level 12 Citypoint At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £17,500 £8,715 Suite Admin Level 12 Citypoint At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £8,400 £4,183 Store Level 12 Citypoint At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £5,500 £2,739 Suite 1200 Level 12 Citypoint At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £12,500 £6,225 Suite 1200a Level 12 Citypoint At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £15,000 £7,470 Suite 1200b Level 12 Citypoint At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £9,300 £4,631 Suite 1201 Level 12 Citypoint At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £9,400 £4,681 Suite 1202 Level 12 Citypoint At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £12,500 £6,225 Suite 1203 Level 12 Citypoint At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £9,500 £4,731 Suite 1204 Level 12 Citypoint At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £7,900 £3,934 Suite 1205 Level 12 Citypoint At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £7,900 £3,934 Suite 1206 Level 12 Citypoint At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £16,250 £8,093 Suite 1207 Level 12 Citypoint At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £16,250 £8,093 Suite 1208 Level 12 Citypoint At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £17,250 £8,591 Suite 1209 Level 12 Citypoint At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £8,300 £4,133 Suite 1210 Level 12 Citypoint At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £9,900 £4,930 Suite 1211 Level 12 Citypoint At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £5,900 £2,938 Suite 1212 Level 12 Citypoint At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £5,900 £2,938 Suite 1213 Level 12 Citypoint At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £11,750 £5,852 Suite 1214 Level 12 Citypoint At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £14,250 £7,097 Suite 1215 Level 12 Citypoint At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £13,250 £6,599 Suite 1216 Level 12 Citypoint At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £4,400 £2,191 Suite 1217 Level 12 Citypoint At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £26,250 £13,073 Suite 1218 Level 12 Citypoint At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £9,700 £4,831 Suite 1219 Level 12 Citypoint At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £9,700 £4,831 Suite 1220 Level 12 Citypoint At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £9,500 £4,731 Suite 1221 Level 12 Citypoint At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £18,500 £9,213 Suite 1223 Level 12 Citypoint At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £9,600 £4,781 Suite 1224 Level 12 Citypoint At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £9,000 £4,482 Suite 1225 Level 12 Citypoint At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £22,750 £11,330 Suite 1225a Level 12 Citypoint At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £13,750 £6,848 Suite 1226 Level 12 Citypoint At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £23,250 £11,579 Suite 1227 Level 12 Citypoint At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £29,500 £14,691 Suite 1228 Level 12 Citypoint At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £4,100 £2,042 Suite 1239 Level 12 Citypoint At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £11,500 £5,727 Suite 1240 Level 12 Citypoint At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £12,250 £6,101 Suite 1241 Level 12 Citypoint At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £11,750 £5,852 Suite 1242 Level 12 Citypoint At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £8,800 £4,382 Suite 1243 Level 12 Citypoint At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £8,300 £4,133 Suite 1244 Level 12 Citypoint At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £13,750 £6,848 Suite 1245 Level 12 Citypoint At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £14,750 £7,346 Suite 1246 Level 12 Citypoint At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £11,750 £5,852 Suite 1247 Level 12 Citypoint At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £8,800 £4,382 Suite 1248 Level 12 Citypoint At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £8,500 £4,233 Suite 1250 Level 12 Citypoint At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £3,300 £1,643 Suite 1251 Level 12 Citypoint At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £3,300 £1,643 Suite 1252 Level 12 Citypoint At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £9,500 £4,731 Level 11 City Point 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £710,000 £367,780 Campus Level 10 At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £46,000 £22,908 Comms Room Level 10 At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £12,000 £5,976 Suite 1001 Level 10 At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £4,600 £2,291 Suite 1002 Level 10 At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £5,100 £2,540 Suite 1022-23 Level 10 At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £90,500 £46,879 Suite 1024 Level 10 At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £12,250 £6,101 Suite 1026 Level 10 At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £8,000 £3,984 Suite 1026b Level 10 At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £6,900 £3,436 Address Description Current rateable value Rates payable Suite 1026c Level 10 At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £7,000 £3,486 Suite 1027 Level 10 At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £15,250 £7,595 Suite 1028 Level 10 At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £13,500 £6,723 Suite 1029 Level 10 At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £10,000 £4,980 Suite 1030 Level 10 At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £9,900 £4,930 Suite 1031 Level 10 At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £5,100 £2,540 Suite 1032 Level 10 At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £6,300 £3,137 Suite 1033 Level 10 At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £6,800 £3,386 Suite 1034 Level 10 At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £4,950 £2,465 Suite 1035 Level 10 At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £3,300 £1,643 Suite 1036 Level 10 At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £4,950 £2,465 Suite 1037 Level 10 At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £3,300 £1,643 Suite 1038 Level 10 At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £15,000 £7,470 Suite 1039 Level 10 At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £5,100 £2,540 Suite 1040 Level 10 At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £4,600 £2,291 Suite 1041 Level 10 At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £2,900 £1,444 Suite 1042 Level 10 At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £2,900 £1,444 Suite 1043 Level 10 At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £4,600 £2,291 Suite 1044 Level 10 At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £3,300 £1,643 Suite 1045 Level 10 At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £3,300 £1,643 Suite 1046 Level 10 At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £3,300 £1,643 Suite 1047 Level 10 At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £4,600 £2,291 Suite 1048 Level 10 At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £2,900 £1,444 Suite 1049 Level 10 At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £8,900 £4,432 Suite 1050-78 Level 10 At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £239,000 £123,802 Suite 1079 Level 10 At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £5,500 £2,739 Suite 1080 Level 10 At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £5,000 £2,490 Suite 1081 Level 10 At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £2,900 £1,444 Suite 1082 Level 10 At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £2,900 £1,444 Suite 1083 Level 10 At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £4,600 £2,291 Suite 1085 Level 10 At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £6,000 £2,988 Suite 1086 Level 10 At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £3,300 £1,643 Suite 1087 Level 10 At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £4,600 £2,291 Suite 1088 Level 10 At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £2,900 £1,444 Suite 1089 Level 10 At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £2,900 £1,444 Suite 1090 Level 10 At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £4,600 £2,291 Suite 1091 Level 10 At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £5,100 £2,540 Suite 1092 Level 10 At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £9,200 £4,582 Suite 1093 Level 10 At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £8,100 £4,034 Suite 1094 Level 10 At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £7,300 £3,635 Suite 1095 Level 10 At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £4,400 £2,191 Suite 1096 Level 10 At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £16,750 £8,342 Level 9 City Point 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £755,000 £391,090 Level 8 City Point 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £1,020,000 £528,360 Level 7 City Point 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £1,710,000 £885,780 Level 6 At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £1,770,000 £916,860 Pt Level 5 At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £745,000 £385,910 Level 0 Lwr Gnd & Levels 1-pt 5 At 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £6,100,000 £3,159,800 Pt Gnd Flr West 1, Ropemaker Street, London, EC2Y 9AW Offices and premises £98,500 £51,023 Subtotal 25938000 13417694 STORES Post Rm Lgnd Level City Point 1, Ropemaker Street, London, EC2Y 9AW Store and premises £10,500 £5,229 Dock Managers Office Lgnd Level City Point 1, Ropemaker Street, London, EC2Y 9AW Store and premises £4,400 £2,191 Security Rm Lgnd Level City Point 1, Ropemaker Street, London, EC2Y 9AW Store and premises £2,200 £1,096 Store K/a Rb0.30 Level 0 City Point 1, Ropemaker Street, London, EC2Y 9AW Store and premises £13,750 £6,848 Store K/a Rb0.34 Level 0 City Point 1, Ropemaker Street, London, EC2Y 9AW Store and premises £24,750 £12,326 Store K/a Rb0.43 Level 0 City Point 1, Ropemaker Street, London, EC2Y 9AW Store and premises £2,700 £1,345 Store K/a Rb0.58 60 & 61 Level 0 City Point 1, Ropemaker Street, London, EC2Y 9AW Store and premises £5,700 £2,839 Store K/a Rbo.96 Level O City Point 1, Ropemaker Street, London, EC2Y 9AW Store and premises £2,650 £1,320 Landlords Store K/a Rb1.83 Bst Level 1 City Point 1, Ropemaker Street, London, EC2Y 9AW Store and premises £640 £319 Store K/a Rb2.01 Basement Level 2 City Point 1, Ropemaker Street, London, EC2Y 9AW Store and premises £2,600 £1,295 Tea Room K/a Rb2.03 Bst Level 2 City Point 1, Ropemaker Street, London, EC2Y 9AW Store and premises £5,600 £2,789 Store Rb2.11 Bst Level 2 City Point 1, Ropemaker Street, London, EC2Y 9AW Store and premises £4,750 £2,366 Store K/a Rb2.23 Basement Level 2 City Point 1, Ropemaker Street, London, EC2Y 9AW Store and premises £14,000 £6,972 Store K/a Rb2.30 Bst Level 2 City Point 1, Ropemaker Street, London, EC2Y 9AW Store and premises £14,000 £6,972 Store K/a Rb2.31 Bst Level 2 City Point 1, Ropemaker Street, London, EC2Y 9AW Store and premises £3,150 £1,569 Store K/a Rb2.32 Basement Level 2 City Point 1, Ropemaker Street, London, EC2Y 9AW Store and premises £2,075 £1,033 Store Rb2.33 Basement Level 2 City Point 1, Ropemaker Street, London, EC2Y 9AW Store and premises £2,600 £1,295 Store K/a Rb2.34 Basement Level 2 City Point 1, Ropemaker Street, London, EC2Y 9AW Store and premises £2,600 £1,295 Store K/a Rb2.42 Basement Level 2 City Point 1, Ropemaker Street, London, EC2Y 9AW Store and premises £18,500 £9,213 Store K/a Rb2.46 Bst Level 2 City Point 1, Ropemaker Street, London, EC2Y 9AW Store and premises £3,350 £1,668 Store K/a Rb2.53 Basement Level 2 City Point 1, Ropemaker Street, London, EC2Y 9AW Store and premises £3,550 £1,768 Store K/a Rb2.54 Basement Level 2 City Point 1, Ropemaker Street, London, EC2Y 9AW Store and premises £2,075 £1,033 Store K/a Rb2.55 Basement Level 2 City Point 1, Ropemaker Street, London, EC2Y 9AW Store and premises £2,075 £1,033 Store K/a Rb2.56 Basement Level 2 City Point 1, Ropemaker Street, London, EC2Y 9AW Store and premises £9,400 £4,681 Store K/a Rb2.57 Basement Level 2 City Point 1, Ropemaker Street, London, EC2Y 9AW Store and premises £11,000 £5,478 Store K/a Rb2.69 (maintenance Room) Basement Level 2 City Point 1, Ropemaker Street, London, EC2Y 9AW Store and premises £4,150 £2,067 Store K/a Rb3.17 Bst Level 3 City Point 1, Ropemaker Street, London, EC2Y 9AW Store and premises £1,625 £809 Store K/a Rb3.59 Bst Level 3 City Point 1, Ropemaker Street, London, EC2Y 9AW Store and premises £5,000 £2,490 Store K/a Rb3.67 Bst Level 3 City Point 1, Ropemaker Street, London, EC2Y 9AW Store and premises £1,375 £685 Store K/a Rb3.68 Bst Level 3 City Point 1, Ropemaker Street, London, EC2Y 9AW Store and premises £1,375 £685 Store K/a Rb3.70 Bst Level 3 City Point 1, Ropemaker Street, London, EC2Y 9AW Store and premises £1,400 £697 Pt Bst Store 'stemcor' City Point 1, Ropemaker Street, London, EC2Y 9AW Store and premises £15,000 £7,470 Subtotal 198540 98872.92 RETAIL Address Description Current rateable value Rates payable Nuffield Health Bst 1, Ropemaker Street, London, EC2Y 9AW Leisure centre and premises £442,500 £229,215 Bridges Kiosk 2 City Point 1, Ropemaker Street, London, EC2Y 9AW Kiosk and premises £14,250 £7,097 Gnd & Mezz Fs Unit 6 City Point 1, Ropemaker Street, London, EC2Y 9AW Shop and premises £80,000 £41,440 Retail Unit 1a Citypoint 1, Ropemaker Street, London, EC2Y 9AW Restaurant and premises £107,000 £55,426 Unit 5 1, Ropemaker Street, London, EC2Y 9AW Shop and premises £23,500 £11,703 Retail Unit 1b City Point 1, Ropemaker Street, London, EC2Y 9AW Restaurant and premises £59,000 £29,382 Unit 15 City Point 1, Ropemaker Street, London, EC2Y 9AW Shop and premises £66,500 £33,117 Subtotal 792750 407379.5 PARKING Various Car parking spaces and premises £304,000 £151,392 Various Motorcycle bays £92,900 £46,264 Subtotal 396900 197656.2 TOTAL 27326190 14121602.62 Appendices

Appendix 6 Tenancy Schedule

© 2018 Jones Lang LaSalle IP, Inc. All rights reserved. Citypoint, 1 Ropemaker Street, London EC2 Net Area Car Lease Next Passing Rent Contracted Rent Rate ERV Rate Net Effective Unit Tenant Name Use Lease Expiry Effective Break Rental Value (pa) Effective Comments (sq ft) Parking Start Review (pa) Rent (pa) per sq ft per sq ft ERV (pa) Rate Level 35/36 SquarePoint Capital LLP Offices 15,650 01/12/2016 30/11/2026 01/12/2021 01/12/2021 £1,107,120 £1,107,120 £70.74 £1,095,500 £70.00 80% £876,400 Level 34 Flextrade UK Ltd Offices 13,267 30/11/2016 29/11/2026 30/11/2021 30/11/2021 £928,690 £928,690 £70.00 £928,690 £70.00 80% £742,952 Level 33 Kaye Scholer LLP Offices 12,879 11/05/2016 10/05/2026 11/05/2021 11/05/2021 £837,200 £837,200 £65.01 £901,530 £70.00 80% £721,224 Level 32 Prembco Holding B.V. Offices 13,044 11/07/2018 10/07/2023 - - £453,279 £906,558 £69.50 £906,558 £69.50 80% £725,246 Level 31 Seyfarth Shaw UK (LLP) Offices 13,024 22/01/2015 21/01/2025 22/01/2020 22/01/2020 £729,372 £729,372 £56.00 £905,200 £69.50 80% £724,160 Part Level 30 United Trust Bank Limited Offices 6,579 31/03/2017 18/01/2025 30/03/2022 31/03/2022 £0 £450,662 £0.00 £450,662 £68.50 80% £360,530 Part Level 30 Winston and Strawn Property (London) Limited Offices 6,037 10/06/2013 09/06/2023 - - £0 £328,050 £0.00 £413,534 £68.50 78% £320,489 Level 29 & Store RBH 2.69 Winston and Strawn Property (London) Limited Offices 13,051 10/06/2013 09/06/2023 - - £0 £686,438 £51.07 £899,859 £68.50 78% £697,391 Basement Store RB2.69 391 £15.00 Level 28, Store RB1.67B.J & 2 CPS United Trust Bank Limited Offices 12,982 19/01/2015 18/01/2025 - 19/01/2020 £754,010 £754,010 £54.25 £895,055 £67.50 80% £716,044 Basement Store RB1.67B 918 £15.00 Car Parking 2 £2,500.00 Level 27 Willkie Farr and Gallagher (UK) LLP Offices 13,010 05/06/2013 23/06/2028 - 10/10/2023 £0 £798,813 £61.40 £878,175 £67.50 78% £680,586 Level 26 Willkie Farr and Gallagher (UK) LLP Offices 12,556 10/10/2018 23/06/2028 - 19/06/2023 £0 £784,750 £62.50 £816,140 £65.00 80% £652,912 Level 25 Willkie Farr and Gallagher (UK) LLP Offices 12,566 15/06/2016 23/06/2028 23/06/2023 10/10/2023 £785,375 £785,375 £62.50 £816,790 £65.00 80% £653,432 Level 24 & Store RB2.56 Cravath Swaine & Moore LLP Offices 12,771 06/04/2000 23/06/2025 06/04/2020 24/06/2020 £635,064 £635,064 £46.30 £844,300 £65.00 70% £591,010 Basement Store RB2.56 944 £15.00 Level 23 & 2 CPS Cravath Swaine & Moore LLP Offices 12,828 06/04/2000 23/06/2025 06/04/2020 24/06/2020 £768,270 £768,270 £59.89 £841,320 £65.00 70% £588,924 Car Parking 3 £2,500.00 Level 22, Store RB2.30 & 3 CPS Simpson Thacher & Bartlett LLP Offices 12,800 29/09/2000 28/09/2022 - 29/09/2020 £632,580 £632,580 £45.43 £856,345 £65.00 70% £599,442 Basement Store RB2.30 1,123 £15.00 Car Parking 3 £2,500.00 Level 21, Store RB2.30 & 3 CPS Simpson Thacher & Bartlett LLP Offices 12,784 29/09/2000 28/09/2022 - 29/09/2020 £631,621 £631,621 £45.42 £855,305 £65.00 70% £598,714 Basement Store RB2.30 1,123 £15.00 Car Parking 3 £2,500.00 Level 20, Store RB2.30 & 3 CPS Simpson Thacher & Bartlett LLP Offices 12,755 29/09/2000 28/09/2022 - 29/09/2020 £630,517 £630,517 £45.43 £853,420 £65.00 70% £597,394 Basement Store RB2.30 1,123 £15.00 Car Parking 3 £2,500.00 Level 19 Simpson Thacher & Bartlett LLP Offices 12,312 29/09/2000 28/09/2022 - 29/09/2020 £667,150 £667,150 £54.19 £800,280 £65.00 70% £560,196 Level 18 Vacant - Level 18 Offices 12,305 - - - - £0 £0 £0.00 £799,825 £65.00 Level 17 London CityPoint Centre Limited Offices 11,926 06/04/2018 23/06/2027 - 24/06/2022 £0 £787,116 £66.00 £775,190 £65.00 80% £620,152 Part 16 North East Duane Morris LLP Offices 6,859 20/12/2017 19/12/2027 19/12/2022 20/12/2022 £0 £462,982 £67.50 £462,982 £67.50 80% £370,386 Part 16 South West Vacant - Part 16 South West - U/O Offices 5,327 - - - - £0 £0 £0.00 £354,246 £66.50 Part 15 West Brookfield Properties (UK RE) Limited Offices 8,060 04/06/2018 03/06/2028 03/06/2023 04/06/2023 £10,500 £554,550 £68.80 £543,490 £66.50 80% £434,792 Car Parking 3 £2,500.00 Part 15 East Vacant - Part 15 East Offices 4,264 - - - - £0 £0 £0.00 £287,820 £67.50 Level 12 & 14 & 3 CPS London CityPoint Centre Limited Offices 16,644 24/06/2017 23/06/2027 - 24/06/2022 £967,530 £967,530 £58.13 £968,990 £58.75 80% £775,192 Car Parking 3 £2,500.00 Level 11 & 3 CPS London CityPoint Centre Limited Offices 16,001 24/06/2017 23/06/2027 - 24/06/2022 £930,558 £930,558 £58.16 £927,558 £57.97 80% £742,046 Car Parking 3 £2,500.00 Level 10 & 3 CPS London CityPoint Centre Limited Offices 17,486 24/06/2017 23/06/2027 - 24/06/2022 £1,015,945 £1,015,945 £58.10 £969,230 £55.00 80% £775,384 Car Parking 3 £2,500.00 Level 9 & 4 CPS London CityPoint Centre Limited Offices 17,748 24/06/2017 23/06/2027 - 24/06/2022 £1,034,510 £1,034,510 £58.29 £986,140 £55.00 80% £788,912 Car Parking 4 £2,500.00 Level 8 & 1 CPS Ebiquity Associates Limited Offices 23,950 29/09/2013 01/12/2019 - - £726,137 £726,137 £30.32 £1,260,000 £52.50 78% £976,500 Car Parking 1 £2,500.00 Level 7 & 3 CPS Morrison & Foerster (UK) LLP Offices 40,453 23/12/2014 01/12/2019 - - £1,518,113 £1,518,113 £37.53 £2,131,283 £52.50 78% £1,651,744 Car Parking 3 £2,500.00 Level 6 & 5 CPS Mimecast Services Limited Offices 41,311 07/08/2013 01/12/2019 - - £1,320,361 £1,320,361 £31.96 £2,181,327 £52.50 78% £1,690,528 Car Parking 5 £2,500.00 Level 5 to Level 1 Simmons & Simmons LLP Offices 151,459 25/03/2000 24/03/2025 - 25/03/2020 £6,780,224 £6,780,224 £37.87 £8,441,995 £51.50 72% £6,078,236 Ancillary Space 27,577 £20.00 Car Parking 17 £2,500.00 Leisure Centre MSCP Wellbeing Limited Retail 32,476 25/03/2001 24/03/2026 - - £419,928 £419,928 £12.93 £419,928 £12.93 100% £419,928 Unit 1A Wagamama Limited Retail 4,401 25/03/2002 28/09/2026 - 25/03/2022 £115,000 £115,000 £26.13 £115,000 £26.13 100% £115,000 Unit 1B RB0.60 Noble Bars and Diners Limited Retail 1,985 02/08/2004 01/08/2019 - - £66,500 £66,500 £33.50 £66,500 £33.50 100% £66,500 Unit 2A Drake & Morgan Limited Retail 4,794 29/09/2016 28/09/2031 - 29/09/2021 £143,600 £143,600 £29.95 £143,600 £29.95 100% £143,600 Unit 2B and 2C Gatti's Restaurant Limited Retail 5,275 23/03/2015 22/03/2030 - 22/03/2020 £100,000 £100,000 £18.96 £100,000 £18.96 100% £100,000 Car Parking 2 £2,500.00 100% Unit 3 Pret a Manger (Europe) Limited Retail 2,377 24/06/2001 23/06/2026 24/06/2021 24/06/2021 £122,500 £122,500 £51.54 £122,500 £51.54 100% £122,500 Unit 4 Lawrence Edward Weimer Retail 596 17/12/2003 16/12/2023 - 17/12/2018 £22,500 £22,500 £37.75 £22,500 £37.75 100% £22,500 Unit 5 MSCP Wellbeing Limited - sublet to Chop'd Retail 480 27/03/2006 24/03/2026 - - £0 £0 £0.00 £48,000 £100.00 100% £48,000 Unit 6 Costa Limited Retail 1,368 01/11/2000 24/12/2020 - - £77,500 £77,500 £56.65 £77,500 £56.65 100% £77,500 Unit 7 (Lwr Gnd) A3D2 Limited (t/a Amber) Retail 11,695 24/06/2002 23/06/2027 - 24/06/2022 £230,000 £230,000 £19.67 £230,000 £19.67 100% £230,000

1 06/11/2018 Citypoint, 1 Ropemaker Street, London EC2 Net Area Car Lease Next Passing Rent Contracted Rent Rate ERV Rate Net Effective Unit Tenant Name Use Lease Expiry Effective Break Rental Value (pa) Effective Comments (sq ft) Parking Start Review (pa) Rent (pa) per sq ft per sq ft ERV (pa) Rate Unit 8 RB0.96 Notes: Music and Coffee Limited Retail 1,455 27/05/2014 26/05/2029 - 04/07/2019 £53,570 £53,570 £36.82 £53,570 £36.82 100% £53,570 News Kiosk 1 Vacant - News Kiosk Retail 278 - - - - £0 £0 £0.00 £0 £0.00 100% Coffee Kiosk Costa Limited Retail 87 06/02/2002 24/03/2020 - - £18,000 £18,000 £206.90 £18,000 £206.90 100% £18,000 RLGO.16 and RGL.14 Vacant - RLGO.16 and RGL.14 Basement Storage 524 - - - - £0 £0 £0.00 £7,860 £15.00 100% £7,860 B1.94 Vacant - B1.94 Basement Storage 182 - - - - £0 £0 £0.00 £2,730 £15.00 100% £2,730 B1.97 Finsbury Enterprises Basement Storage 420 15/09/2016 15/09/2019 - - £6,720 £6,720 £16.00 £6,300 £15.00 100% £6,300 RB1.79 Ebiquity Associates Limited Basement Storage 110 29/04/2018 01/12/2019 - - £1,936 £1,936 £17.60 £1,650 £15.00 100% £1,650 RB1.05 Landlord Storage Area Basement Storage 888 29/04/2018 29/04/2018 - - £0 £0 £0.00 £0 £0.00 100% RB1.85 Vacant - Store RB1.85 Basement Storage 92 - - - - £0 £0 £0.00 £1,380 £15.00 100% £1,380 RB1.86 Vacant - RB1.86 Basement Storage 93 - - - - £0 £0 £0.00 £1,395 £15.00 100% £1,395 RB1.16 Vacant - RB1.16 Basement Storage 576 - - - - £0 £0 £0.00 £38,304 £66.50 100% £38,304 RB1.67A Vacant - RB1.67A Basement Storage 1,833 - - - - £0 £0 £0.00 £27,495 £15.00 100% £27,495 RB1.89 Vacant - RB1.89 Basement Storage 401 - - - - £0 £0 £0.00 £6,015 £15.00 100% £6,015 RB 2.11 Mimecast Services Limited Basement Storage 442 29/04/2018 01/12/2019 - - £7,088 £7,088 £16.04 £6,630 £15.00 100% £6,630 RB 2.54A Brookfield Properties (UK RE) Limited Basement Storage 1,530 04/06/2018 03/06/2028 - 04/06/2023 £26,775 £26,775 £17.50 £22,950 £15.00 100% £22,950 RB 2.54B Vacant - RB 2.54B Basement Storage 1,447 - - - - £0 £0 £0.00 £21,705 £15.00 100% £21,705 RB 2.54C Building Management Area Basement Storage 2,134 01/01/1999 01/01/1999 - - £0 £0 £0.00 £0 £0.00 100% RB 2.53 Chop'd Limited Basement Storage 421 13/03/2006 12/03/2026 - 13/03/2021 £7,400 £7,400 £17.58 £6,315 £15.00 100% £6,315 RB2.57 Fabric Solutions Basement Storage 1,130 16/04/2019 15/04/2020 - - £0 £0 £0.00 £16,950 £15.00 100% £16,950 RB2.02 Vacant - RB2.02 Basement Storage 1,459 - - - - £0 £0 £0.00 £21,885 £15.00 100% £21,885 RB1.81 Vacant - RB1.81 Basement Storage 118 - - - - £0 £0 £0.00 £1,770 £15.00 100% £1,770 Car Parking Vacant Car Spaces Car Parking 29 - - - - £0 £0 £0.00 £0 £0.00 100% Car Parking Landlord/Disabled Spaces Car Parking 10 01/01/1999 31/12/2013 - - £0 £0 £0.00 £0 £0.00 100% Car Parking Spaces 85 & 87 Winston & Strawn Property (London) Ltd Car Parking 2 01/11/2017 09/06/2023 - 01/11/2022 £7,000 £7,000 £0.00 £5,000 £0.00 100% £5,000 Seating Licence - Unit 2A Drake & Morgan Limited Seating licence 31/10/2018 - - £7,500 £7,500 £0.00 £7,500 £0.00 100% £7,500 Holding over Telecomms Aparatus AboveNet Comms UK Telecomms Aparatus Telecomms 03/10/2018 02/10/2020 - - £2,000 £2,000 £0.00 £2,000 £0.00 100% £2,000 Roof London Stock Exchange Roof 22/06/2017 21/06/2027 22/02/2020 - £20,000 £20,000 £0.00 £20,000 £0.00 100% £20,000 Fixed uplift to £25,000 pa from 22/06/2022 Airspace adj to Moorfields House Metropolitan Properties Co Ltd Offices, resi, retail or airspace 20/01/2006 19/01/2250 - - £0 £0 NA NA NA NA NA Peppercorn rent Electricity Substation London Power Networks plc Transformer chamber 29/03/1999 28/03/2098 - - £0 £0 NA NA NA NA NA Tenter House Extension and Ramp Metropolitan Properties (City) Ltd Offices, showrooms or banking, Airspace above retail unit 3, basement car park and car park and means of access 25/12/1959 24/12/2159 Rolling Tenant's - £1 £1 NA NA NA NA NA ramp

Total 708,954 99 £25,319,643 £30,615,783 £37,691,671

2 06/11/2018 Appendices

Appendix 7 Valuation Print-Out

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

File/Ref No FINAL Region London City

Description / Notes Assumptions

Valuation Tables Annually in Arrears

Valuation

Gross Valuation £661,691,331 Capital Costs -£20,900,142 Net Value Before Fees £640,791,189

Less Stamp Duty @5.00% of Net Value -£29,989,500 Agents Fee @1.00% of Net Value -£7,200,000 Legal Fee @0.50% of Net Value -£3,600,000

Fees include non recoverable VAT @ 20.00 % Net Valuation £600,001,689 Say £600,000,000

Equivalent Yield 5.3692% True Equivalent Yield 5.5447% Initial Yield (Deemed) 3.9513% Initial Yield (Contracted) 3.9513% Reversion Yield 5.8821%

Total Contracted Rent £25,319,643 Total Current Rent £25,319,643 Total Rental Value £37,691,671 No. Tenants 69 Capital value per ft² £846.32

Running Yields

Date Gross Rent Net Rent Annual Quarterly 16-Oct-2018 £25,319,643 £25,319,643 3.9513 % 4.0509 % 31-Oct-2018 £25,770,305 £25,770,305 4.0216 % 4.1248 % 20-Dec-2018 £26,233,287 £26,233,287 4.0939 % 4.2008 % 25-Dec-2018 £27,032,100 £27,032,100 4.2186 % 4.3322 % 30-Dec-2018 £27,819,216 £27,819,216 4.3414 % 4.4618 % 16-Apr-2019 £27,836,166 £27,836,166 4.3440 % 4.4646 % 10-Jun-2019 £28,850,654 £28,850,654 4.5024 % 4.6320 % 02-Aug-2019 £28,784,154 £28,784,154 4.4920 % 4.6210 % 04-Aug-2019 £29,328,204 £29,328,204 4.5769 % 4.7109 % 16-Sep-2019 £29,327,784 £29,327,784 4.5768 % 4.7108 % 02-Dec-2019 £25,762,429 £25,762,429 4.0204 % 4.1235 % 22-Jan-2020 £25,033,057 £25,033,057 3.9066 % 4.0039 % 02-Feb-2020 £25,099,557 £25,099,557 3.9170 % 4.0148 % 11-Mar-2020 £25,552,836 £25,552,836 3.9877 % 4.0891 % 23-Mar-2020 £25,562,836 £25,562,836 3.9893 % 4.0908 % 25-Mar-2020 £25,544,836 £25,544,836 3.9865 % 4.0878 % 06-Apr-2020 £24,141,502 £24,141,502 3.7675 % 3.8579 % 16-Oct-2020 £25,646,753 £25,646,753 4.0024 % 4.1045 % 02-Dec-2020 £31,219,363 £31,219,363 4.8720 % 5.0241 % 25-Dec-2020 £31,141,863 £31,141,863 4.8599 % 5.0112 % 10-Jan-2021 £31,926,613 £31,926,613 4.9824 % 5.1415 % 22-Jan-2021 £32,831,813 £32,831,813 5.1237 % 5.2920 % 25-Mar-2021 £32,904,279 £32,904,279 5.1350 % 5.3041 % 06-Apr-2021 £34,589,899 £34,589,899 5.3980 % 5.5852 % 11-May-2021 £33,752,699 £33,752,699 5.2674 % 5.4454 % 19-Jun-2021 £33,360,012 £33,360,012 5.2061 % 5.3800 % 24-Jun-2021 £33,237,512 £33,237,512 5.1870 % 5.3596 % 16-Oct-2021 £33,304,691 £33,304,691 5.1974 % 5.3708 % 30-Nov-2021 £32,376,001 £32,376,001 5.0525 % 5.2162 % 01-Dec-2021 £31,268,881 £31,268,881 4.8797 % 5.0323 % 19-Dec-2021 £30,869,475 £30,869,475 4.8174 % 4.9660 % 25-Dec-2021 £30,946,975 £30,946,975 4.8295 % 4.9789 % 31-Mar-2022 £30,496,313 £30,496,313 4.7592 % 4.9042 %

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

11-May-2022 £31,397,843 £31,397,843 4.8999 % 5.0537 % 22-Jun-2022 £31,402,843 £31,402,843 4.9006 % 5.0545 % 24-Jun-2022 £31,525,343 £31,525,343 4.9198 % 5.0748 % 29-Sep-2022 £28,963,475 £28,963,475 4.5200 % 4.6506 % 30-Nov-2022 £29,892,165 £29,892,165 4.6649 % 4.8041 % 01-Dec-2022 £30,987,665 £30,987,665 4.8359 % 4.9856 % 19-Dec-2022 £30,917,370 £30,917,370 4.8249 % 4.9740 % 01-Apr-2023 £31,368,032 £31,368,032 4.8952 % 5.0487 % 03-Jun-2023 £30,813,482 £30,813,482 4.8087 % 4.9567 % 10-Jun-2023 £29,796,994 £29,796,994 4.6500 % 4.7884 % 23-Jun-2023 £29,404,307 £29,404,307 4.5888 % 4.7234 % 11-Jul-2023 £28,497,749 £28,497,749 4.4473 % 4.5737 % 29-Sep-2023 £31,863,099 £31,863,099 4.9725 % 5.1309 % 19-Dec-2023 £32,326,081 £32,326,081 5.0447 % 5.2079 % 03-Jun-2024 £32,869,571 £32,869,571 5.1295 % 5.2983 % 10-Jun-2024 £34,182,964 £34,182,964 5.3345 % 5.5172 % 11-Jul-2024 £35,089,522 £35,089,522 5.4760 % 5.6687 % 23-Aug-2024 £35,482,209 £35,482,209 5.5373 % 5.7343 % 19-Jan-2025 £35,623,254 £35,623,254 5.5593 % 5.7579 % 19-Feb-2025 £36,022,660 £36,022,660 5.6216 % 5.8248 % 23-Mar-2025 £36,032,660 £36,032,660 5.6232 % 5.8265 % 25-Mar-2025 £37,694,431 £37,694,431 5.8825 % 6.1053 % 13-Mar-2026 £37,693,346 £37,693,346 5.8823 % 6.1051 % 25-Mar-2026 £37,638,880 £37,638,880 5.8738 % 6.0960 % 25-Mar-2027 £37,686,880 £37,686,880 5.8813 % 6.1040 % 22-Jun-2027 £37,681,880 £37,681,880 5.8805 % 6.1032 % 24-Jun-2027 £37,573,329 £37,573,329 5.8636 % 6.0850 % 04-Jun-2028 £37,569,504 £37,569,504 5.8630 % 6.0843 % 24-Jun-2028 £37,711,671 £37,711,671 5.8852 % 6.1082 % 23-Mar-2030 £37,691,671 £37,691,671 5.8821 % 6.1048 %

Yields based on £640,789,500

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 2 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Freehold Tenure

Tenant - Drake & Morgan Limited

Description Unit 2A - Seating Licence Lease 2 years from 01-Nov-2017 Expiring 31-Oct-2019 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £7,500 Rental Value £7,500 Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Areas - None Defined

Lease History

Date Years Months Days Event Rent Paid 01-Nov-2017 2 0 0 Review £7,500 01-Nov-2019 0 0 0 Reversion £7,500

Component Valuation

16-Oct-2018 Gross rent (Current) £7,500 Valuation rent £7,500 YP perp @ 5.37% 18.6247 yp £139,686

Gross Value £139,686

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 3 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - London Stock Exchange

Description Roof Lease 10 years from 22-Jun-2017 Expiring 21-Jun-2027 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £20,000 Rental Value £20,000 Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Breaks

Act Date Penalty 22-Feb-2020 Tenant £0

Areas - None Defined

Lease History

Date Years Months Days Event Rent Paid 22-Jun-2017 5 0 0 Review £20,000 22-Jun-2022 5 0 0 Fixed £25,000 22-Jun-2027 0 0 0 Reversion £20,000

Component Valuation

16-Oct-2018 Gross rent (Current) £20,000 Valuation rent £20,000 YP perp @ 5.37% 18.6247 yp £372,495 22-Jun-2022 Gross rent (Froth) £5,000 Valuation rent £5,000 YP 4 Yrs 11 Mths @ 5.37% 4.2848 yp PV 3 Yrs 8 Mths @ 5.37% x 0.8248 3.5340 yp £17,670

Gross Value £390,165

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 4 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - AboveNet Comms UK Telecomms Aparatus

Description Telecomms Aparatus Lease 2 years from 03-Oct-2018 Expiring 02-Oct-2020 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £2,000 Rental Value £2,000 Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Areas - None Defined

Lease History

Date Years Months Days Event Rent Paid 03-Oct-2018 2 0 0 Review £2,000 03-Oct-2020 0 0 0 Reversion £2,000

Component Valuation

16-Oct-2018 Gross rent (Current) £2,000 Valuation rent £2,000 YP perp @ 5.37% 18.6247 yp £37,249

Gross Value £37,249

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 5 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - Winston & Strawn Property (London) Ltd

Description CPS 85 & 87 Lease 5 years from 01-Nov-2017 Expiring 09-Jun-2023 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £7,000 Rental Value £5,000 from Areas (Unrounded) Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa Car spaces £0.00 0 100.00 % 0.00 £5,000 0 £5,000 *Rental Value using UnRounded ERV £5,000

Lease History

Date Years Months Days Event Rent Paid 01-Nov-2017 5 0 0 Review £7,000 01-Nov-2022 0 7 9 Review £7,000 10-Jun-2023 0 0 0 Reversion £5,000

Component Valuation

16-Oct-2018 Gross rent (Current over-rented) £7,000 Rental Value £5,000 Net rent £7,000 Less Froth Ded. -£2,000 Valuation rent £5,000 YP perp @ 5.37% 18.6247 yp £93,124 16-Oct-2018 Gross rent (Froth) £2,000 Valuation rent £2,000 YP 4 Yrs 7 Mths @ 5.37% 4.0201 yp £8,040

Gross Value £101,164

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 6 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - Landlord/Disabled Spaces

Description Lease 15 years from 01-Jan-1999 Expiring 31-Dec-2013 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £0 Rental Value £0 from Areas (Rounded) Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa Car spaces £0.00 0 100.00 % 0.00 £0 0 £0 *Rental Value using Rounded ERV £0

Lease History

Date Years Months Days Event Rent Paid

Component Valuation

Gross Value £0

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 7 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - Vacant Car Spaces

Description Lease 15 years from 01-Jan-1999 Expiring 31-Dec-2013 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £0 Rental Value £0 Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa Car spaces £0.00 0 100.00 % 0.00 £72,500 0 £72,500 *Rental Value using Manually input ERV £0

Lease History

Date Years Months Days Event Rent Paid

Capital Costs/Income

Label Timing Initial Annual Amount Discounted Value Letting Fees On Lease Start/Renwal With Void = £0 £0 £0

Component Valuation

Gross Value £0

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 8 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - Vacant - RB1.81

Description RB1.81 Lease 2 years from 16-Oct-2019 Expiring 15-Oct-2021 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £0 Rental Value £1,770 from Areas (Unrounded) Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa Storage £15.00 118 100.00 % 0.00 £1,770 118 £1,770 *Rental Value using UnRounded ERV £1,770

Lease History

Date Years Months Days Event Rent Paid 16-Oct-2018 1 0 0 Pre Void £0 16-Oct-2019 1 0 0 Rent Free £0 16-Oct-2020 1 0 0 ResumeERV £1,770 16-Oct-2021 0 0 0 Reversion £1,770

Capital Costs/Income

Label Timing Initial Annual Amount Discounted Value Letting Fees On Lease Start/Renwal With Void ERV £1,770 @ 15.0000 % = -£266 -£266 -£266

Component Valuation

16-Oct-2019 Gross rent (Current) £0 Valuation rent £0 YP perp @ 5.37% 18.6247 yp PV 1 Year @ 5.37% x 0.9490 17.6757 yp £0 16-Oct-2020 Gross rent (Resume market (non-RR)) £1,770 Valuation rent £1,770 YP perp @ 5.37% 18.6247 yp PV 2 Yrs @ 5.37% x 0.9007 16.7750 yp £29,692

Gross Value £29,692

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 9 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - Vacant - RB2.02

Description RB2.02 Lease 2 years from 16-Oct-2019 Expiring 15-Oct-2021 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £0 Rental Value £21,885 from Areas (Unrounded) Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa Storage £15.00 1,459 100.00 % 0.00 £21,885 1,459 £21,885 *Rental Value using UnRounded ERV £21,885

Lease History

Date Years Months Days Event Rent Paid 16-Oct-2018 1 0 0 Pre Void £0 16-Oct-2019 1 0 0 Rent Free £0 16-Oct-2020 1 0 0 ResumeERV £21,885 16-Oct-2021 0 0 0 Reversion £21,885

Capital Costs/Income

Label Timing Initial Annual Amount Discounted Value Letting Fees On Lease Start/Renwal With Void ERV £21,885 @ 15.0000 % = -£3,283 -£3,283 -£3,283

Component Valuation

16-Oct-2019 Gross rent (Current) £0 Valuation rent £0 YP perp @ 5.37% 18.6247 yp PV 1 Year @ 5.37% x 0.9490 17.6757 yp £0 16-Oct-2020 Gross rent (Resume market (non-RR)) £21,885 Valuation rent £21,885 YP perp @ 5.37% 18.6247 yp PV 2 Yrs @ 5.37% x 0.9007 16.7750 yp £367,121

Gross Value £367,121

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 10 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - Fabric Solutions

Description RB2.57 Lease 1 years from 16-Apr-2019 Expiring 15-Apr-2020 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £0 Rental Value £16,950 from Areas (Unrounded) Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa Storage £15.00 1,130 100.00 % 0.00 £16,950 1,130 £16,950 *Rental Value using UnRounded ERV £16,950

Lease History

Date Years Months Days Event Rent Paid 16-Oct-2018 0 6 0 Pre Void £0 16-Apr-2019 1 0 0 Review £16,950 16-Apr-2020 0 0 0 Reversion £16,950

Component Valuation

16-Apr-2019 Gross rent (Current) £16,950 Valuation rent £16,950 YP perp @ 5.37% 18.6247 yp PV 6 Mths @ 5.37% x 0.9742 18.1440 yp £307,541

Gross Value £307,541

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 11 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - Chop'd Limited

Description RB 2.53 Lease 20 years from 13-Mar-2006 Expiring 12-Mar-2026 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £7,400 Rental Value £6,315 from Areas (Unrounded) Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Breaks

Act Date Penalty 03-Jun-2023 Tenant £0

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa Storage £15.00 421 100.00 % 0.00 £6,315 421 £6,315 *Rental Value using UnRounded ERV £6,315

Lease History

Date Years Months Days Event Rent Paid 13-Mar-2016 5 0 0 Review £7,400 13-Mar-2021 5 0 0 Review £7,400 13-Mar-2026 0 0 0 Reversion £6,315

Component Valuation

16-Oct-2018 Gross rent (Current over-rented) £7,400 Rental Value £6,315 Net rent £7,400 Less Froth Ded. -£1,085 Valuation rent £6,315 YP perp @ 5.37% 18.6247 yp £117,615 16-Oct-2018 Gross rent (Froth) £1,085 Valuation rent £1,085 YP 7 Yrs 4 Mths @ 5.37% 5.9765 yp £6,485

Gross Value £124,100

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 12 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - Building Management Area

Description RB 2.54C Lease 0 years from 01-Jan-1999 Expiring 01-Jan-1999 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £0 Rental Value £0 from Areas (Rounded) Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Breaks

Act Date Penalty 03-Jun-2023 Tenant £0

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa Storage £0.00 2,134 100.00 % 0.00 £0 2,134 £0 *Rental Value using Rounded ERV £0

Lease History

Date Years Months Days Event Rent Paid

Component Valuation

Gross Value £0

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 13 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - Vacant - Store RB 2.54B

Description RB 2.54B Lease 2 years from 16-Oct-2019 Expiring 15-Oct-2021 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £0 Rental Value £21,705 from Areas (Unrounded) Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Breaks

Act Date Penalty 03-Jun-2023 Tenant £0

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa Storage £15.00 1,447 100.00 % 0.00 £21,705 1,447 £21,705 *Rental Value using UnRounded ERV £21,705

Lease History

Date Years Months Days Event Rent Paid 16-Oct-2018 1 0 0 Pre Void £0 16-Oct-2019 1 0 0 Rent Free £0 16-Oct-2020 1 0 0 ResumeERV £21,705 16-Oct-2021 0 0 0 Reversion £21,705

Component Valuation

16-Oct-2019 Gross rent (Current) £0 Valuation rent £0 YP perp @ 5.37% 18.6247 yp PV 1 Year @ 5.37% x 0.9490 17.6757 yp £0 16-Oct-2020 Gross rent (Resume market (non-RR)) £21,705 Valuation rent £21,705 YP perp @ 5.37% 18.6247 yp PV 2 Yrs @ 5.37% x 0.9007 16.7750 yp £364,102

Gross Value £364,102

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 14 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - Brookfield Properties (UK RE) Limited

Description RB 2.54A Lease 10 years from 04-Jun-2018 Expiring 03-Jun-2028 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £26,775 Rental Value £22,950 from Areas (Unrounded) Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Breaks

Act Date Penalty 03-Jun-2023 Tenant £0

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa Storage £15.00 1,530 100.00 % 0.00 £22,950 1,530 £22,950 *Rental Value using UnRounded ERV £22,950

Lease History

Date Years Months Days Event Rent Paid 04-Jun-2018 5 0 0 Review £26,775 04-Jun-2023 5 0 0 Review £26,775 04-Jun-2028 0 0 0 Reversion £22,950

Component Valuation

16-Oct-2018 Gross rent (Current over-rented) £26,775 Rental Value £22,950 Net rent £26,775 Less Froth Ded. -£3,825 Valuation rent £22,950 YP perp @ 5.37% 18.6247 yp £427,438 16-Oct-2018 Gross rent (Froth) £3,825 Valuation rent £3,825 YP 9 Yrs 7 Mths @ 5.37% 7.3710 yp £28,194

Gross Value £455,632

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 15 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - Mimecast Services Limited

Description RB 2.11 Lease 1 years from 29-Apr-2018 Expiring 01-Dec-2019 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £7,088 Rental Value £6,630 from Areas (Unrounded) Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa Storage £15.00 442 100.00 % 0.00 £6,630 442 £6,630 *Rental Value using UnRounded ERV £6,630

Lease History

Date Years Months Days Event Rent Paid 29-Apr-2018 1 7 3 Review £7,088 02-Dec-2019 0 0 0 Reversion £6,630

Component Valuation

16-Oct-2018 Gross rent (Current over-rented) £7,088 Rental Value £6,630 Net rent £7,088 Less Froth Ded. -£458 Valuation rent £6,630 YP perp @ 5.37% 18.6247 yp £123,482 16-Oct-2018 Gross rent (Froth) £458 Valuation rent £458 YP 1 Year 1 Month @ 5.37% 1.0637 yp £487

Gross Value £123,969

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 16 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - Vacant - RB1.89

Description RB1.89 Lease 1 years from 16-Oct-2019 Expiring 15-Oct-2020 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £0 Rental Value £6,015 from Areas (Unrounded) Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa Storage £15.00 401 100.00 % 0.00 £6,015 401 £6,015 *Rental Value using UnRounded ERV £6,015

Lease History

Date Years Months Days Event Rent Paid 16-Oct-2018 1 0 0 Pre Void £0 16-Oct-2019 1 0 0 Rent Free £0 16-Oct-2020 0 0 0 Reversion £6,015

Capital Costs/Income

Label Timing Initial Annual Amount Discounted Value Letting Fees On Lease Start/Renwal With Void ERV £6,015 @ 15.0000 % = -£902 -£902 -£902

Component Valuation

16-Oct-2019 Gross rent (Current) £0 Valuation rent £0 YP perp @ 5.37% 18.6247 yp PV 1 Year @ 5.37% x 0.9490 17.6757 yp £0 16-Oct-2020 Gross rent (Reversion) £6,015 Valuation rent £6,015 YP perp @ 5.37% 18.6247 yp PV 2 Yrs @ 5.37% x 0.9007 16.7750 yp £100,902

Gross Value £100,902

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 17 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - Vacant - RB1.67A

Description RB1.67A Lease 2 years from 16-Oct-2019 Expiring 15-Oct-2021 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £0 Rental Value £27,495 from Areas (Unrounded) Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa Storage £15.00 1,833 100.00 % 0.00 £27,495 1,833 £27,495 *Rental Value using UnRounded ERV £27,495

Lease History

Date Years Months Days Event Rent Paid 16-Oct-2018 1 0 0 Pre Void £0 16-Oct-2019 2 0 0 Rent Free £0 16-Oct-2021 0 0 0 Reversion £27,495

Capital Costs/Income

Label Timing Initial Annual Amount Discounted Value Letting Fees On Lease Start/Renwal With Void ERV £27,495 @ 15.0000 % = -£4,124 -£4,124 -£4,124

Component Valuation

16-Oct-2019 Gross rent (Current) £0 Valuation rent £0 YP perp @ 5.37% 18.6247 yp PV 1 Year @ 5.37% x 0.9490 17.6757 yp £0 16-Oct-2021 Gross rent (Reversion) £27,495 Valuation rent £27,495 YP perp @ 5.37% 18.6247 yp PV 3 Yrs @ 5.37% x 0.8548 15.9202 yp £437,727

Gross Value £437,727

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 18 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - Vacant Store - RB1.16

Description RB1.16 Lease 2 years from 16-Oct-2019 Expiring 15-Oct-2021 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £0 Rental Value £38,304 from Areas (Unrounded) Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa Storage £66.50 576 100.00 % 0.00 £38,304 576 £38,304 *Rental Value using UnRounded ERV £38,304

Lease History

Date Years Months Days Event Rent Paid 16-Oct-2018 1 0 0 Pre Void £0 16-Oct-2019 2 0 0 Rent Free £0 16-Oct-2021 0 0 0 Reversion £38,304

Component Valuation

16-Oct-2019 Gross rent (Current) £0 Valuation rent £0 YP perp @ 5.37% 18.6247 yp PV 1 Year @ 5.37% x 0.9490 17.6757 yp £0 16-Oct-2021 Gross rent (Reversion) £38,304 Valuation rent £38,304 YP perp @ 5.37% 18.6247 yp PV 3 Yrs @ 5.37% x 0.8548 15.9202 yp £609,809

Gross Value £609,809

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 19 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - Vacant Store - RB1.86

Description RB1.86 Lease 2 years from 16-Oct-2019 Expiring 15-Oct-2021 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £0 Rental Value £1,395 from Areas (Unrounded) Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa Storage £15.00 93 100.00 % 0.00 £1,395 93 £1,395 *Rental Value using UnRounded ERV £1,395

Lease History

Date Years Months Days Event Rent Paid 16-Oct-2018 1 0 0 Pre Void £0 16-Oct-2019 1 0 0 Rent Free £0 16-Oct-2020 1 0 0 ResumeERV £1,395 16-Oct-2021 0 0 0 Reversion £1,395

Component Valuation

16-Oct-2019 Gross rent (Current) £0 Valuation rent £0 YP perp @ 5.37% 18.6247 yp PV 1 Year @ 5.37% x 0.9490 17.6757 yp £0 16-Oct-2020 Gross rent (Resume market (non-RR)) £1,395 Valuation rent £1,395 YP perp @ 5.37% 18.6247 yp PV 2 Yrs @ 5.37% x 0.9007 16.7750 yp £23,401

Gross Value £23,401

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 20 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - Landlord Storage Area

Description RB1.05 Lease 2 years from 29-Apr-2018 Expiring 28-Apr-2020 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £0 Rental Value £0 from Areas (Rounded) Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa Storage £0.00 888 100.00 % 0.00 £0 888 £0 *Rental Value using Rounded ERV £0

Lease History

Date Years Months Days Event Rent Paid 29-Apr-2018 2 0 0 Review £0 29-Apr-2020 0 0 0 Reversion £0

Component Valuation

Gross Value £0

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 21 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - Vacant - Store RB1.85

Description RB1.85 Lease 2 years from 16-Oct-2019 Expiring 15-Oct-2021 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £0 Rental Value £1,380 from Areas (Unrounded) Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa Storage £15.00 92 100.00 % 0.00 £1,380 92 £1,380 *Rental Value using UnRounded ERV £1,380

Lease History

Date Years Months Days Event Rent Paid 16-Oct-2018 1 0 0 Pre Void £0 16-Oct-2019 2 0 0 Rent Free £0 16-Oct-2021 0 0 0 Reversion £1,380

Capital Costs/Income

Label Timing Initial Annual Amount Discounted Value Letting Fees On Lease Start/Renwal With Void ERV £1,380 @ 15.0000 % = -£207 -£207 -£207

Component Valuation

16-Oct-2019 Gross rent (Current) £0 Valuation rent £0 YP perp @ 5.37% 18.6247 yp PV 1 Year @ 5.37% x 0.9490 17.6757 yp £0 16-Oct-2021 Gross rent (Reversion) £1,380 Valuation rent £1,380 YP perp @ 5.37% 18.6247 yp PV 3 Yrs @ 5.37% x 0.8548 15.9202 yp £21,970

Gross Value £21,970

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 22 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - Ebiquity Associates Limited

Description RB1.79 Lease 1 years from 29-Apr-2018 Expiring 01-Dec-2019 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £1,936 Rental Value £1,650 from Areas (Unrounded) Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa Ancilliary £15.00 110 100.00 % 0.00 £1,650 110 £1,650 *Rental Value using UnRounded ERV £1,650

Lease History

Date Years Months Days Event Rent Paid 29-Apr-2018 1 7 3 Review £1,936 02-Dec-2019 0 0 0 Reversion £1,650

Component Valuation

16-Oct-2018 Gross rent (Current over-rented) £1,936 Rental Value £1,650 Net rent £1,936 Less Froth Ded. -£286 Valuation rent £1,650 YP perp @ 5.37% 18.6247 yp £30,731 16-Oct-2018 Gross rent (Froth) £286 Valuation rent £286 YP 1 Year 1 Month @ 5.37% 1.0637 yp £304

Gross Value £31,035

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 23 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - Finsbury Enterprises

Description B1.97 Lease 3 years from 15-Sep-2016 Expiring 15-Sep-2019 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £6,720 Rental Value £6,300 from Areas (Unrounded) Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa Ancilliary £15.00 420 100.00 % 0.00 £6,300 420 £6,300 *Rental Value using UnRounded ERV £6,300

Lease History

Date Years Months Days Event Rent Paid 15-Sep-2016 3 0 1 Review £6,720 16-Sep-2019 0 0 0 Reversion £6,300

Component Valuation

16-Oct-2018 Gross rent (Current over-rented) £6,720 Rental Value £6,300 Net rent £6,720 Less Froth Ded. -£420 Valuation rent £6,300 YP perp @ 5.37% 18.6247 yp £117,336 16-Oct-2018 Gross rent (Froth) £420 Valuation rent £420 YP 0 Yrs 10 Mths @ 5.37% 0.8708 yp £366

Gross Value £117,702

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 24 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - Vacant - Store B1.94

Description B1.94 Status Tenancy at Will Lease 2 years from 16-Oct-2019 Expiring 15-Oct-2021 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £0 Rental Value £2,730 from Areas (Unrounded) Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa Ancilliary £15.00 182 100.00 % 0.00 £2,730 182 £2,730 *Rental Value using UnRounded ERV £2,730

Lease History

Date Years Months Days Event Rent Paid 16-Oct-2018 1 0 0 Pre Void £0 16-Oct-2019 1 0 0 Rent Free £0 16-Oct-2020 1 0 0 ResumeERV £2,730 16-Oct-2021 0 0 0 Reversion £2,730

Component Valuation

16-Oct-2019 Gross rent (Current) £0 Valuation rent £0 YP perp @ 5.37% 18.6247 yp PV 1 Year @ 5.37% x 0.9490 17.6757 yp £0 16-Oct-2020 Gross rent (Resume market (non-RR)) £2,730 Valuation rent £2,730 YP perp @ 5.37% 18.6247 yp PV 2 Yrs @ 5.37% x 0.9007 16.7750 yp £45,796

Gross Value £45,796

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 25 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - Vacant - Stores RLGO.16 and RGL.14

Description RLGO.16 and RGL.14 Status Let Lease 2 years from 16-Oct-2019 Expiring 15-Oct-2021 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £0 Rental Value £7,860 from Areas (Unrounded) Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa Ancilliary £15.00 524 100.00 % 0.00 £7,860 524 £7,860 *Rental Value using UnRounded ERV £7,860

Lease History

Date Years Months Days Event Rent Paid 16-Oct-2018 1 0 0 Pre Void £0 16-Oct-2019 1 0 0 Rent Free £0 16-Oct-2020 1 0 0 ResumeERV £7,860 16-Oct-2021 0 0 0 Reversion £7,860

Component Valuation

16-Oct-2019 Gross rent (Current) £0 Valuation rent £0 YP perp @ 5.37% 18.6247 yp PV 1 Year @ 5.37% x 0.9490 17.6757 yp £0 16-Oct-2020 Gross rent (Resume market (non-RR)) £7,860 Valuation rent £7,860 YP perp @ 5.37% 18.6247 yp PV 2 Yrs @ 5.37% x 0.9007 16.7750 yp £131,852

Gross Value £131,852

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 26 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - Costa Limited

Description Coffee Kiosk Status Vacant Unlet Lease 18 years from 06-Feb-2002 Expiring 24-Mar-2020 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £18,000 Rental Value £18,000 Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa Zone A £0.00 87 100.00 % 0.00 £0 87 £0 *Rental Value using Manually input ERV £18,000

Lease History

Date Years Months Days Event Rent Paid 06-Feb-2017 3 1 19 Review £18,000 25-Mar-2020 0 6 0 Post Void £0 25-Sep-2020 0 6 0 Rent Free £0 25-Mar-2021 0 0 0 Reversion £18,000

Capital Costs/Income

Label Timing Initial Annual Amount Discounted Value Letting Fees On Lease Start/Renwal With Void ERV £18,000 @ 15.0000 % = -£2,700 -£2,700

Empty Rates EV On Expiry Voids every 3 months for 3 month87 ft² x £32.50 pa = -£2,827 -£707 -£3,407

Component Valuation

16-Oct-2018 Gross rent (Current) £18,000 Valuation rent £18,000 YP perp @ 5.37% 18.6247 yp £335,245 25-Mar-2020 Gross rent (Re-letting Void) £0 Valuation rent -£18,000 YP 1 Year 0 Mths @ 5.37% 0.9490 yp PV 1 Year 5 Mths @ 5.37% x 0.9274 0.8801 yp -£15,842

Gross Value £319,403

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 27 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - Vacant - News Kiosk

Description News Kiosk 1 Status Vacant Unlet Lease 15 years from 01-Jan-1999 Expiring 31-Dec-2013 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £0 Rental Value £0 from Areas (Unrounded) Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa Kiosk £0.00 278 100.00 % 0.00 £0 278 £0 *Rental Value using UnRounded ERV £0

Lease History

Date Years Months Days Event Rent Paid

Component Valuation

Gross Value £0

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 28 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - Notes: Music and Coffee Limited

Description Unit 8 RB0.96 Lease 15 years from 27-May-2014 Expiring 26-May-2029 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £53,570 Rental Value £53,570 Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa Level 1 £0.00 1,266 100.00 % 0.00 £0 Basement £0.00 189 100.00 % 0.00 £0 1,455 £0 *Rental Value using Manually input ERV £53,570

Lease History

Date Years Months Days Event Rent Paid 27-May-2014 5 1 7 Review £53,570 04-Jul-2019 5 0 0 Review £53,570 04-Jul-2024 4 10 23 Review £53,570 27-May-2029 0 0 0 Reversion £53,570

Component Valuation

16-Oct-2018 Gross rent (Current) £53,570 Valuation rent £53,570 YP perp @ 5.37% 18.6247 yp £997,728

Gross Value £997,728

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 29 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - A3D2 Limited (t/a Amber)

Description Unit 7 (Lwr Gnd) Lease 25 years from 24-Jun-2002 Expiring 23-Jun-2027 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £230,000 Rental Value £230,000 Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa Level 1 £0.00 189 100.00 % 0.00 £0 Lower Ground £0.00 11,506 100.00 % 0.00 £0 11,695 £0 *Rental Value using Manually input ERV £230,000

Lease History

Date Years Months Days Event Rent Paid 24-Jun-2017 5 0 0 Review £230,000 24-Jun-2022 5 0 0 Review £230,000 24-Jun-2027 0 0 0 Reversion £230,000

Component Valuation

16-Oct-2018 Gross rent (Current) £230,000 Valuation rent £230,000 YP perp @ 5.37% 18.6247 yp £4,283,692

Gross Value £4,283,692

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 30 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - Costa Limited

Description Unit 6 Lease 20 years from 01-Nov-2000 Expiring 24-Dec-2020 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £77,500 Rental Value £77,500 Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa Mezz £0.00 374 100.00 % 0.00 £0 Level 1 £0.00 994 100.00 % 0.00 £0 1,368 £0 *Rental Value using Manually input ERV £77,500

Lease History

Date Years Months Days Event Rent Paid 01-Nov-2015 5 0 0 Review £77,500 01-Nov-2020 0 1 24 Review £77,500 25-Dec-2020 0 6 0 Post Void £0 25-Jun-2021 0 6 0 Rent Free £0 25-Dec-2021 0 0 0 Reversion £77,500

Capital Costs/Income

Label Timing Initial Annual Amount Discounted Value Letting Fees On Lease Start/Renwal With Void ERV £77,500 @ 15.0000 % = -£11,625 -£11,625

Sevice Charge EV On Expiry Voids every 3 months until end of 1,368 ft² x £6.50 pa = -£8,892 -£4,446

Empty Rates EV On Expiry Voids every 3 months for 3 month1,368 ft² x £32.50 pa = -£44,460 -£11,115 -£27,186

Component Valuation

16-Oct-2018 Gross rent (Current) £77,500 Valuation rent £77,500 YP perp @ 5.37% 18.6247 yp £1,443,418 25-Dec-2020 Gross rent (Re-letting Void) £0 Valuation rent -£77,500 YP 1 Year 0 Mths @ 5.37% 0.9490 yp PV 2 Yrs 2 Mths @ 5.37% x 0.8917 0.8463 yp -£65,587

Gross Value £1,377,831

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 31 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - MSCP Wellbeing Limited - sublet to Chop'd

Description Unit 5 Lease 19 years from 27-Mar-2006 Expiring 24-Mar-2026 Rent Reviews every 0 years Upward only Parent Tenure Freehold Current Rent £0 Rental Value £48,000 from Areas (Unrounded) Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa Level 1 £100.00 480 100.00 % 0.00 £48,000 480 £48,000 *Rental Value using UnRounded ERV £48,000

Lease History

Date Years Months Days Event Rent Paid 27-Mar-2006 19 11 26 Review £0 25-Mar-2026 0 6 0 Post Void £0 25-Sep-2026 0 6 0 Rent Free £0 25-Mar-2027 0 0 0 Reversion £48,000

Capital Costs/Income

Label Timing Initial Annual Amount Discounted Value Letting Fees On Lease Start/Renwal With Void ERV £48,000 @ 15.0000 % = -£7,200 -£7,200

Sevice Charge EV On Expiry Voids every 3 months until end of 480 ft² x £6.50 pa = -£3,120 -£1,560

Empty Rates EV On Expiry Voids every 3 months for 3 month480 ft² x £32.50 pa = -£15,600 -£3,900 -£12,660

Component Valuation

25-Mar-2027 Gross rent (Current) £48,000 Valuation rent £48,000 YP perp @ 5.37% 18.6247 yp PV 8 Yrs 5 Mths @ 5.37% x 0.6431 11.9772 yp £574,908

Gross Value £574,908

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 32 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - Lawrence Edward Weimer

Description Unit 4 Lease 20 years from 17-Dec-2003 Expiring 16-Dec-2023 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £22,500 Rental Value £22,500 Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Breaks

Act Date Penalty 17-Dec-2018 Tenant £0

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa Mezzanine £0.00 305 100.00 % 0.00 £0 Level 1 £0.00 291 100.00 % 0.00 £0 596 £0 *Rental Value using Manually input ERV £22,500

Lease History

Date Years Months Days Event Rent Paid 17-Dec-2013 5 0 0 Review £22,500 17-Dec-2018 5 0 0 Review £22,500 17-Dec-2023 0 0 0 Reversion £22,500

Component Valuation

16-Oct-2018 Gross rent (Current) £22,500 Valuation rent £22,500 YP perp @ 5.37% 18.6247 yp £419,057

Gross Value £419,057

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 33 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - Pret a Manger (Europe) Limited

Description Unit 3 Lease 25 years from 24-Jun-2001 Expiring 23-Jun-2026 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £122,500 Rental Value £122,500 Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Breaks

Act Date Penalty * 24-Jun-2021 Tenant £0

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa Mezzanine £0.00 1,497 100.00 % 0.00 £0 Level 1 £0.00 880 100.00 % 0.00 £0 2,377 £0 *Rental Value using Manually input ERV £122,500

Lease History

Date Years Months Days Event Rent Paid 24-Jun-2016 5 0 0 Review £122,500 24-Jun-2021 0 6 0 Post Void £0 24-Dec-2021 0 6 0 Rent Free £0 24-Jun-2022 0 0 0 Reversion £122,500

Capital Costs/Income

Label Timing Initial Annual Amount Discounted Value Letting Fees On Lease Start/Renwal With Void ERV £122,500 @ 15.0000 % = -£18,375 -£18,375

Sevice Charge EV On Expiry Voids every 3 months until end of 2,377 ft² x £6.50 pa = -£15,450 -£7,725

Empty Rates EV On Expiry Voids every 3 months for 3 month2,377 ft² x £32.50 pa = -£77,252 -£19,313 -£45,413

Component Valuation

16-Oct-2018 Gross rent (Current) £122,500 Valuation rent £122,500 YP perp @ 5.37% 18.6247 yp £2,281,532 24-Jun-2021 Gross rent (Re-letting Void) £0 Valuation rent -£122,500 YP 1 Year 0 Mths @ 5.37% 0.9490 yp PV 2 Yrs 8 Mths @ 5.37% x 0.8688 0.8246 yp -£101,008

Gross Value £2,180,524

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 34 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - Gatti's Restaurant Limited

Description Unit 2B and 2C Lease 15 years from 23-Mar-2015 Expiring 22-Mar-2030 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £100,000 Rental Value £100,000 Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa Level 1 £0.00 1,792 100.00 % 0.00 £0 Lower Ground Floor £0.00 3,483 100.00 % 0.00 £0 Car spaces £0.00 0 100.00 % 0.00 £0 5,275 £0 *Rental Value using Manually input ERV £100,000

Lease History

Date Years Months Days Event Rent Paid 23-Mar-2015 5 0 0 Review £100,000 23-Mar-2020 5 0 0 Fixed £110,000 23-Mar-2025 5 0 0 Fixed £120,000 23-Mar-2030 0 0 0 Reversion £100,000

Component Valuation

16-Oct-2018 Gross rent (Current) £100,000 Valuation rent £100,000 YP perp @ 5.37% 18.6247 yp £1,862,475 23-Mar-2020 Gross rent (Froth) £10,000 Valuation rent £10,000 YP 5 Yrs 0 Mths @ 5.37% 4.2856 yp PV 1 Year 5 Mths @ 5.37% x 0.9277 3.9756 yp £39,756 23-Mar-2025 Gross rent (Froth) £20,000 Valuation rent £20,000 YP 4 Yrs 11 Mths @ 5.37% 4.2786 yp PV 6 Yrs 5 Mths @ 5.37% x 0.7142 3.0558 yp £61,116

Gross Value £1,963,346

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 35 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - Drake & Morgan Limited

Description Unit 2A Lease 15 years from 29-Sep-2016 Expiring 28-Sep-2031 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £143,600 Rental Value £143,600 Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa Level 1 £0.00 4,794 100.00 % 0.00 £0 4,794 £0 *Rental Value using Manually input ERV £143,600

Lease History

Date Years Months Days Event Rent Paid 29-Sep-2016 5 0 0 Review £143,600 29-Sep-2021 5 0 0 Review £143,600 29-Sep-2026 5 0 0 Review £143,600 29-Sep-2031 0 0 0 Reversion £143,600

Component Valuation

16-Oct-2018 Gross rent (Current) £143,600 Valuation rent £143,600 YP perp @ 5.37% 18.6247 yp £2,674,514

Gross Value £2,674,514

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 36 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - Noble Bars and Diners Limited

Description Unit 1B RB0.60 Lease 15 years from 02-Aug-2004 Expiring 01-Aug-2019 Rent Reviews every 0 years Upward only Parent Tenure Freehold Current Rent £66,500 Rental Value £66,500 Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa Level 1 £0.00 1,553 100.00 % 0.00 £0 Ground £0.00 432 100.00 % 0.00 £0 1,985 £0 *Rental Value using Manually input ERV £66,500

Lease History

Date Years Months Days Event Rent Paid 02-Aug-2004 15 0 0 Review £66,500 02-Aug-2019 0 6 0 Rent Free £0 02-Feb-2020 0 0 0 Reversion £66,500

Component Valuation

16-Oct-2018 Gross rent (Current) £66,500 Valuation rent £66,500 YP perp @ 5.37% 18.6247 yp £1,238,546 02-Aug-2019 Gross rent () £0 Valuation rent -£66,500 YP 0 Yrs 6 Mths @ 5.37% 0.4807 yp PV 9 Mths @ 5.37% x 0.9592 0.4611 yp -£30,664

Gross Value £1,207,882

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 37 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - Wagamama Limited

Description Unit 1A Lease 24 years from 25-Mar-2002 Expiring 28-Sep-2026 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £115,000 Rental Value £115,000 Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa Level 1 £0.00 2,874 100.00 % 0.00 £0 Lower Ground floor £0.00 1,527 100.00 % 0.00 £0 4,401 £0 *Rental Value using Manually input ERV £115,000

Lease History

Date Years Months Days Event Rent Paid 25-Mar-2017 5 0 0 Review £115,000 25-Mar-2022 4 6 4 Review £115,000 29-Sep-2026 0 0 0 Reversion £115,000

Component Valuation

16-Oct-2018 Gross rent (Current) £115,000 Valuation rent £115,000 YP perp @ 5.37% 18.6247 yp £2,141,846

Gross Value £2,141,846

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 38 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - MSCP Wellbeing Limited

Description Leisure Centre Lease 25 years from 25-Mar-2001 Expiring 24-Mar-2026 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £419,928 Rental Value £419,928 Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa Ground £12.93 88 100.00 % 0.00 £1,138 Basement £12.93 32,388 100.00 % 0.00 £418,777 32,476 £419,915 *Rental Value using Manually input ERV £419,928

Lease History

Date Years Months Days Event Rent Paid 25-Mar-2016 5 0 0 Review £419,928 25-Mar-2021 5 0 0 Fixed £474,394 25-Mar-2026 0 0 0 Reversion £419,928

Component Valuation

16-Oct-2018 Gross rent (Current) £419,928 Valuation rent £419,928 YP perp @ 5.37% 18.6247 yp £7,821,053 25-Mar-2021 Gross rent (Froth) £54,466 Valuation rent £54,466 YP 4 Yrs 11 Mths @ 5.37% 4.2786 yp PV 2 Yrs 5 Mths @ 5.37% x 0.8801 3.7658 yp £205,106

Gross Value £8,026,159

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 39 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - Simmons & Simmons LLP

Description Level 5 to Level 1 Status Occupied and Let Lease 25 years from 25-Mar-2000 Expiring 24-Mar-2025 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £6,780,224 Rental Value £8,441,995 from Areas (Unrounded) Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa Car spaces £0.00 0 100.00 % 0.00 £42,500 5 £52.50 43,070 100.00 % 0.00 £2,261,175 4 £51.50 42,953 100.00 % 0.00 £2,212,079 4 - Access Corridor £0.00 566 100.00 % 0.00 £0 3 £51.50 42,240 100.00 % 0.00 £2,175,360 2 £51.00 18,560 100.00 % 0.00 £946,560 1 £50.00 4,070 100.00 % 0.00 £203,500 Ancillary - Ground £25.00 13,341 100.00 % 0.00 £333,525 Ancillary - LG £25.00 7,291 100.00 % 0.00 £182,275 Storage - Ground £15.00 4,734 100.00 % 0.00 £71,010 Storage - LG £15.00 934 100.00 % 0.00 £14,010 S&S Reception £0.00 1,277 100.00 % 0.00 £0 179,036 £8,441,994 *Rental Value using UnRounded ERV £8,441,995

Lease History

Date Years Months Days Event Rent Paid 25-Mar-2015 5 0 0 Review £6,780,224 25-Mar-2020 5 0 0 Review £6,780,224 25-Mar-2025 0 0 0 Reversion £8,441,995

Component Valuation

16-Oct-2018 Gross rent (Current) £6,780,224 Net rent £6,780,224 Less Froth Ded. -£701,988 Valuation rent £6,078,236 YP perp @ 5.37% 18.6247 yp £113,205,620 25-Mar-2025 Gross rent (Reversion) £8,441,995 Valuation rent £2,363,759 YP perp @ 5.37% 18.6247 yp PV 6 Yrs 5 Mths @ 5.37% x 0.7140 13.2979 yp £31,433,108 16-Oct-2018 Gross rent (Froth) £701,988 Valuation rent £701,988 YP 6 Yrs 5 Mths @ 5.37% 5.3249 yp £3,738,019

Gross Value £148,376,747

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 40 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - Mimecast Services Limited

Description Level 6 & 5 CPS Status Occupied and Let Lease 6 years from 07-Aug-2013 Expiring 01-Dec-2019 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £1,320,361 Rental Value £2,181,327 from Areas (Unrounded) Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa 6 £52.50 41,311 100.00 % 0.00 £2,168,827 Car spaces £0.00 0 100.00 % 0.00 £12,500 41,311 £2,181,327 *Rental Value using UnRounded ERV £2,181,327

Lease History

Date Years Months Days Event Rent Paid 07-Aug-2018 1 3 25 Review £1,320,361 02-Dec-2019 0 6 0 Post Void £0 02-Jun-2020 0 6 0 Rent Free £0 02-Dec-2020 0 0 0 Reversion £2,181,327

Capital Costs/Income

Label Timing Initial Annual Amount Discounted Value Refurb Costs EV On Expiry Voids 41,311 ft² x £50.00 = -£2,065,550 -£2,065,550

Letting Fees On Lease Start/Renwal With Void ERV £2,181,327 @ 15.0000 % = -£327,199 -£327,199

Sevice Charge EV On Expiry Voids every 3 months until end of 41,311 ft² x £13.17 pa = -£544,066 -£272,033

Empty Rates EV On Expiry Voids every 3 months for 3 month41,311 ft² x £25.00 pa = -£1,032,775 -£258,194 -£2,922,976

Component Valuation

16-Oct-2018 Gross rent (Current) £1,320,361 Valuation rent £1,320,361 YP perp @ 5.37% 18.6247 yp £24,591,391 02-Dec-2019 Gross rent (Re-letting Void) £0 Valuation rent -£1,320,361 YP 1 Year 0 Mths @ 5.37% 0.9490 yp PV 1 Year 1 Month @ 5.37% x 0.9428 0.8947 yp -£1,181,345 02-Dec-2020 Gross rent (Reversion) £2,181,327 Valuation rent £860,966 YP perp @ 5.37% 18.6247 yp PV 2 Yrs 1 Month @ 5.37% x 0.8947 16.6638 yp £14,346,982

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 41 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Gross Value £37,757,027

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 42 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - Morrison & Foerster (UK) LLP

Description Level 7 & 3 CPS Status Occupied Lease 4 years from 23-Dec-2014 Expiring 01-Dec-2019 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £1,518,113 Rental Value £2,131,283 from Areas (Unrounded) Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa 7 £52.50 40,453 100.00 % 0.00 £2,123,782 Car spaces £0.00 0 100.00 % 0.00 £7,500 40,453 £2,131,282 *Rental Value using UnRounded ERV £2,131,283

Lease History

Date Years Months Days Event Rent Paid 23-Dec-2014 4 11 9 Review £1,518,113 02-Dec-2019 0 6 0 Post Void £0 02-Jun-2020 0 6 0 Rent Free £0 02-Dec-2020 0 0 0 Reversion £2,131,283

Capital Costs/Income

Label Timing Initial Annual Amount Discounted Value Sevice Charge EV On Expiry Voids every 3 months until end of 40,453 ft² x £13.17 pa = -£532,766 -£266,383

Empty Rates EV On Expiry Voids every 3 months for 3 month40,453 ft² x £25.00 pa = -£1,011,325 -£252,831

Refurb Costs EV On Expiry Voids 40,453 ft² x £50.00 = -£2,022,650 -£2,022,650

Letting Fees On Lease Start/Renwal With Void ERV £2,131,283 @ 15.0000 % = -£319,692 -£319,692 -£2,861,557

Component Valuation

16-Oct-2018 Gross rent (Current) £1,518,113 Valuation rent £1,518,113 YP perp @ 5.37% 18.6247 yp £28,274,472 02-Dec-2019 Gross rent (Re-letting Void) £0 Valuation rent -£1,518,113 YP 1 Year 0 Mths @ 5.37% 0.9490 yp PV 1 Year 1 Month @ 5.37% x 0.9428 0.8947 yp -£1,358,277 02-Dec-2020 Gross rent (Reversion) £2,131,283 Valuation rent £613,170 YP perp @ 5.37% 18.6247 yp PV 2 Yrs 1 Month @ 5.37% x 0.8947 16.6638 yp £10,217,754

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 43 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Gross Value £37,133,949

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 44 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - Ebiquity Associates Limited

Description Level 8 & 1 CPS Status Occupied Lease 6 years from 29-Sep-2013 Expiring 01-Dec-2019 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £726,137 Rental Value £1,260,000 from Areas (Rounded) Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa 8 £52.50 23,950 100.00 % 0.00 £1,257,375 Car spaces £0.00 0 100.00 % 0.00 £2,500 23,950 £1,259,875 *Rental Value using Rounded ERV £1,260,000

Lease History

Date Years Months Days Event Rent Paid 29-Sep-2013 5 0 0 Review £726,137 29-Sep-2018 1 2 3 Review £726,137 02-Dec-2019 0 6 0 Post Void £0 02-Jun-2020 0 6 0 Rent Free £0 02-Dec-2020 0 0 0 Reversion £1,260,000

Capital Costs/Income

Label Timing Initial Annual Amount Discounted Value Letting Fees On Lease Start/Renwal With Void ERV £1,260,000 @ 15.0000 % = -£189,000 -£189,000

Sevice Charge EV On Expiry Voids every 3 months until end of 23,950 ft² x £13.17 pa = -£315,421 -£157,711

Empty Rates EV On Expiry Voids every 3 months for 3 month23,950 ft² x £25.00 pa = -£598,750 -£149,687

Refurb Costs EV On Expiry Voids 23,950 ft² x £50.00 = -£1,197,500 -£1,197,500 -£1,693,898

Component Valuation

16-Oct-2018 Gross rent (Current) £726,137 Valuation rent £726,137 YP perp @ 5.37% 18.6247 yp £13,524,118 02-Dec-2019 Gross rent (Re-letting Void) £0 Valuation rent -£726,137 YP 1 Year 0 Mths @ 5.37% 0.9490 yp PV 1 Year 1 Month @ 5.37% x 0.9428 0.8947 yp -£649,685 02-Dec-2020 Gross rent (Reversion) £1,260,000 Valuation rent £533,863 YP perp @ 5.37% 18.6247 yp PV 2 Yrs 1 Month @ 5.37% x 0.8947 16.6638 yp

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 45 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

£8,896,197

Gross Value £21,770,630

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 46 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - London CityPoint Centre Limited

Description Level 9 & 4 CPS Status Occupied Lease 10 years from 24-Jun-2017 Expiring 23-Jun-2027 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £1,034,510 Rental Value £986,140 from Areas (Unrounded) Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa 9 £55.00 17,748 100.00 % 0.00 £976,140 Car spaces £0.00 0 100.00 % 0.00 £10,000 17,748 £986,140 *Rental Value using UnRounded ERV £986,140

Lease History

Date Years Months Days Event Rent Paid 24-Jun-2017 5 0 0 Review £1,034,510 24-Jun-2022 5 0 0 Review £1,034,510 24-Jun-2027 0 0 0 Reversion £986,140

Component Valuation

16-Oct-2018 Gross rent (Current over-rented) £1,034,510 Rental Value £986,140 Net rent £1,034,510 Less Froth Ded. -£245,598 Valuation rent £788,912 YP perp @ 5.37% 18.6247 yp £14,693,287 24-Jun-2027 Gross rent (Reversion) £986,140 Valuation rent £197,228 YP perp @ 5.37% 18.6247 yp PV 8 Yrs 8 Mths @ 5.37% x 0.6348 11.8234 yp £2,331,896 16-Oct-2018 Gross rent (Froth) £245,598 Valuation rent £245,598 YP 8 Yrs 8 Mths @ 5.37% 6.7997 yp £1,669,993

Gross Value £18,695,176

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 47 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - London CityPoint Centre Limited

Description Level 10 & 3 CPS Status Occupied Lease 10 years from 24-Jun-2017 Expiring 23-Jun-2027 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £1,015,945 Rental Value £969,230 from Areas (Unrounded) Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa 10 £55.00 17,486 100.00 % 0.00 £961,730 Car spaces £0.00 0 100.00 % 0.00 £7,500 17,486 £969,230 *Rental Value using UnRounded ERV £969,230

Lease History

Date Years Months Days Event Rent Paid 24-Jun-2017 5 0 0 Review £1,015,945 24-Jun-2022 5 0 0 Review £1,015,945 24-Jun-2027 0 0 0 Reversion £969,230

Component Valuation

16-Oct-2018 Gross rent (Current over-rented) £1,015,945 Rental Value £969,230 Net rent £1,015,945 Less Froth Ded. -£240,561 Valuation rent £775,384 YP perp @ 5.37% 18.6247 yp £14,441,331 24-Jun-2027 Gross rent (Reversion) £969,230 Valuation rent £193,846 YP perp @ 5.37% 18.6247 yp PV 8 Yrs 8 Mths @ 5.37% x 0.6348 11.8234 yp £2,291,910 16-Oct-2018 Gross rent (Froth) £240,561 Valuation rent £240,561 YP 8 Yrs 8 Mths @ 5.37% 6.7997 yp £1,635,743

Gross Value £18,368,984

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 48 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - London CityPoint Centre Limited

Description Level 11 & 3 CPS Status Occupied Lease 10 years from 24-Jun-2017 Expiring 23-Jun-2027 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £930,558 Rental Value £927,558 from Areas (Unrounded) Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa 11 £57.50 16,001 100.00 % 0.00 £920,058 Car spaces £0.00 0 100.00 % 0.00 £7,500 16,001 £927,558 *Rental Value using UnRounded ERV £927,558

Lease History

Date Years Months Days Event Rent Paid 24-Jun-2017 5 0 0 Review £930,558 24-Jun-2022 5 0 0 Review £930,558 24-Jun-2027 0 0 0 Reversion £927,558

Component Valuation

16-Oct-2018 Gross rent (Current over-rented) £930,558 Rental Value £927,558 Net rent £930,558 Less Froth Ded. -£188,512 Valuation rent £742,046 YP perp @ 5.37% 18.6247 yp £13,820,427 24-Jun-2027 Gross rent (Reversion) £927,558 Valuation rent £185,512 YP perp @ 5.37% 18.6247 yp PV 8 Yrs 8 Mths @ 5.37% x 0.6348 11.8234 yp £2,193,369 16-Oct-2018 Gross rent (Froth) £188,512 Valuation rent £188,512 YP 8 Yrs 8 Mths @ 5.37% 6.7997 yp £1,281,823

Gross Value £17,295,619

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 49 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - London CityPoint Centre Limited

Description Level 12 & 14 & 3 CPS Status Occupied Lease 10 years from 24-Jun-2017 Expiring 23-Jun-2027 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £967,530 Rental Value £968,990 from Areas (Unrounded) Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa 14 £60.00 1,784 100.00 % 0.00 £107,040 Car spaces £0.00 0 100.00 % 0.00 £7,500 12 £57.50 14,860 100.00 % 0.00 £854,450 16,644 £968,990 *Rental Value using UnRounded ERV £968,990

Lease History

Date Years Months Days Event Rent Paid 24-Jun-2017 5 0 0 Review £967,530 24-Jun-2022 5 0 0 Review £967,530 24-Jun-2027 0 0 0 Reversion £968,990

Component Valuation

16-Oct-2018 Gross rent (Current) £967,530 Net rent £967,530 Less Froth Ded. -£192,338 Valuation rent £775,192 YP perp @ 5.37% 18.6247 yp £14,437,755 24-Jun-2027 Gross rent (Reversion) £968,990 Valuation rent £193,798 YP perp @ 5.37% 18.6247 yp PV 8 Yrs 8 Mths @ 5.37% x 0.6348 11.8234 yp £2,291,342 16-Oct-2018 Gross rent (Froth) £192,338 Valuation rent £192,338 YP 8 Yrs 8 Mths @ 5.37% 6.7997 yp £1,307,841

Gross Value £18,036,938

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 50 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - Brookfield Properties (UK RE) Limited

Description Part 15 West Status Occupied/Let Lease 10 years from 04-Jun-2018 Expiring 03-Jun-2028 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £10,500 Rental Value £543,490 from Areas (Unrounded) Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Breaks

Act Date Penalty * 03-Jun-2023 Tenant £0

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa Part 15 West £66.50 8,060 100.00 % 0.00 £535,990 Car spaces £0.00 0 100.00 % 0.00 £7,500 8,060 £543,490 *Rental Value using UnRounded ERV £543,490

Lease History

Date Years Months Days Event Rent Paid 04-Jun-2018 1 2 0 Fixed £10,500 04-Aug-2019 3 9 30 Interim £554,550 03-Jun-2023 0 6 0 Post Void £0 03-Dec-2023 0 6 0 Rent Free £0 03-Jun-2024 0 0 0 Reversion £543,490

Capital Costs/Income

Label Timing Initial Annual Amount Discounted Value Letting Fees On Lease Start/Renwal With Void ERV £543,490 @ 15.0000 % = -£81,524 -£81,524

Refurb Costs EV On Expiry Voids 8,060 ft² x £50.00 = -£403,000 -£403,000

Sevice Charge EV On Expiry Voids every 3 months until end of 8,060 ft² x £13.17 pa = -£106,150 -£53,075

Empty Rates EV On Expiry Voids every 3 months for 3 month8,060 ft² x £25.00 pa = -£201,500 -£50,375 -£587,974

Component Valuation

16-Oct-2018 Gross rent (Current) £10,500 Valuation rent £10,500 YP perp @ 5.37% 18.6247 yp £195,560 04-Aug-2019 Gross rent (Interim Step (non-RR)) £554,550 Net rent £554,550 Less Froth Ded. -£11,060 Valuation rent £532,990 YP perp @ 5.37% 18.6247 yp PV 9 Mths @ 5.37% x 0.9589

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 51 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

17.8596 yp £9,519,011 03-Jun-2023 Gross rent (Re-letting Void) £0 Valuation rent -£543,490 YP 1 Year 0 Mths @ 5.37% 0.9490 yp PV 4 Yrs 7 Mths @ 5.37% x 0.7848 0.7448 yp -£404,812 04-Aug-2019 Gross rent (Froth) £11,060 Valuation rent £11,060 YP 3 Yrs 9 Mths @ 5.37% 3.3826 yp PV 9 Mths @ 5.37% x 0.9589 3.2436 yp £35,874

Gross Value £9,345,633

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 52 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - Vacant - Part 15 East

Description Part 15 East Status Vacant Lease 5 years from 16-Oct-2019 Expiring 15-Oct-2024 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £0 Rental Value £287,820 from Areas (Unrounded) Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Breaks

Act Date Penalty 03-Jun-2023 Tenant £0

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa Part 15 East £67.50 4,264 100.00 % 0.00 £287,820 4,264 £287,820 *Rental Value using UnRounded ERV £287,820

Lease History

Date Years Months Days Event Rent Paid 16-Oct-2018 1 0 0 Pre Void £0 16-Oct-2019 1 0 0 Rent Free £0 16-Oct-2020 4 0 0 ResumeERV £287,820 16-Oct-2024 0 0 0 Reversion £287,820

Capital Costs/Income

Label Timing Initial Annual Amount Discounted Value Service Charge CV On Current Voids every 3 months until end 4,264 ft² x £13.17 pa = -£56,157 -£56,157

Empty Rates CV On Current Voids every 3 months until end 4,264 ft² x £25.00 pa = -£106,600 -£106,600

Letting Fees On Lease Start/Renwal With Void ERV £287,820 @ 15.0000 % = -£43,173 -£43,173 -£205,930

Component Valuation

16-Oct-2019 Gross rent (Current) £0 Valuation rent £0 YP perp @ 5.37% 18.6247 yp PV 1 Year @ 5.37% x 0.9490 17.6757 yp £0 16-Oct-2020 Gross rent (Resume market (non-RR)) £287,820 Valuation rent £287,820 YP perp @ 5.37% 18.6247 yp PV 2 Yrs @ 5.37% x 0.9007 16.7750 yp £4,828,186

Gross Value £4,828,186

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 53 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - Vacant - Part 16 South West - U/O

Description Part 16 South West Status Vacant Lease 1 years from 16-Oct-2019 Expiring 15-Oct-2020 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £0 Rental Value £354,246 from Areas (Unrounded) Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa Part 16 South £66.50 5,327 100.00 % 0.00 £354,246 5,327 £354,246 *Rental Value using UnRounded ERV £354,246

Lease History

Date Years Months Days Event Rent Paid 16-Oct-2018 1 0 0 Pre Void £0 16-Oct-2019 1 0 0 Rent Free £0 16-Oct-2020 0 0 0 Reversion £354,246

Capital Costs/Income

Label Timing Initial Annual Amount Discounted Value Service Charge CV On Current Voids every 3 months until end 5,327 ft² x £13.17 pa = -£70,157 -£70,157

Empty Rates CV On Current Voids every 3 months until end 5,327 ft² x £25.00 pa = -£133,175 -£133,175

Letting Fees On Lease Start/Renwal With Void ERV £354,246 @ 15.0000 % = -£53,137 -£53,137 -£256,468

Component Valuation

16-Oct-2019 Gross rent (Current) £0 Valuation rent £0 YP perp @ 5.37% 18.6247 yp PV 1 Year @ 5.37% x 0.9490 17.6757 yp £0 16-Oct-2020 Gross rent (Reversion) £354,246 Valuation rent £354,246 YP perp @ 5.37% 18.6247 yp PV 2 Yrs @ 5.37% x 0.9007 16.7750 yp £5,942,484

Gross Value £5,942,484

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 54 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - Duane Morris LLP

Description Part 16 North East Status Occupied and Let Lease 10 years from 20-Dec-2017 Expiring 19-Dec-2027 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £0 Rental Value £462,982 from Areas (Unrounded) Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Breaks

Act Date Penalty * 19-Dec-2022 Tenant £0

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa Part 16 North £67.50 6,859 100.00 % 0.00 £462,983 6,859 £462,983 *Rental Value using UnRounded ERV £462,982

Lease History

Date Years Months Days Event Rent Paid 20-Dec-2017 1 0 0 Rent Free £0 20-Dec-2018 3 11 29 ResumeERV £462,982 19-Dec-2022 0 6 0 Post Void £0 19-Jun-2023 0 6 0 Rent Free £0 19-Dec-2023 0 0 0 Reversion £462,982

Capital Costs/Income

Label Timing Initial Annual Amount Discounted Value Refurb Costs EV On Expiry Voids 6,859 ft² x £50.00 = -£342,950 -£342,950

Letting Fees On Lease Start/Renwal With Void ERV £462,982 @ 15.0000 % = -£69,447 -£69,447

Sevice Charge EV On Expiry Voids every 3 months until end of 6,859 ft² x £13.17 pa = -£90,333 -£45,167

Empty Rates EV On Expiry Voids every 3 months for 3 month6,859 ft² x £25.00 pa = -£171,475 -£42,869 -£500,433

Component Valuation

16-Oct-2018 Gross rent (Current) £0 Valuation rent £0 YP perp @ 5.37% 18.6247 yp £0 20-Dec-2018 Gross rent (Resume market (non-RR)) £462,982 Valuation rent £462,982 YP perp @ 5.37% 18.6247 yp PV 2 Mths @ 5.37% x 0.9908 18.4525 yp £8,543,188 19-Dec-2022

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 55 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Gross rent (Re-letting Void) £0 Valuation rent -£462,982 YP 1 Year 0 Mths @ 5.37% 0.9490 yp PV 4 Yrs 2 Mths @ 5.37% x 0.8038 0.7629 yp -£353,202

Gross Value £8,189,986

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 56 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - London CityPoint Centre Limited

Description Level 17 Status Occupied Lease 9 years from 06-Apr-2018 Expiring 23-Jun-2027 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £0 Rental Value £775,190 from Areas (Unrounded) Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa 17 £65.00 11,926 100.00 % 0.00 £775,190 11,926 £775,190 *Rental Value using UnRounded ERV £775,190

Lease History

Date Years Months Days Event Rent Paid 06-Apr-2018 0 8 24 Rent Free £0 30-Dec-2018 3 5 25 Interim £787,116 24-Jun-2022 5 0 0 Review £787,116 24-Jun-2027 0 0 0 Reversion £775,190

Component Valuation

16-Oct-2018 Gross rent (Current) £0 Valuation rent £0 YP perp @ 5.37% 18.6247 yp £0 30-Dec-2018 Gross rent (Interim Step (non-RR)) £787,116 Net rent £787,116 Less Froth Ded. -£11,926 Valuation rent £775,190 YP perp @ 5.37% 18.6247 yp PV 2 Mths @ 5.37% x 0.9893 18.4261 yp £14,283,733 30-Dec-2018 Gross rent (Froth) £11,926 Valuation rent £11,926 YP 8 Yrs 5 Mths @ 5.37% 6.6732 yp PV 2 Mths @ 5.37% x 0.9893 6.6020 yp £78,736

Gross Value £14,362,469

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 57 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - Vacant - Level 18

Description Level 18 Status Vacant Unlet Lease 1 years from 16-Oct-2019 Expiring 15-Oct-2020 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £0 Rental Value £799,825 from Areas (Unrounded) Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa 18 £65.00 12,305 100.00 % 0.00 £799,825 12,305 £799,825 *Rental Value using UnRounded ERV £799,825

Lease History

Date Years Months Days Event Rent Paid 16-Oct-2018 1 0 0 Pre Void £0 16-Oct-2019 1 0 0 Rent Free £0 16-Oct-2020 0 0 0 Reversion £799,825

Capital Costs/Income

Label Timing Initial Annual Amount Discounted Value Service Charge CV On Current Voids every 3 months until end 12,305 ft² x £13.17 pa = -£162,057 -£162,057

Empty Rates CV On Current Voids every 3 months until end 12,305 ft² x £25.00 pa = -£307,625 -£307,625

Letting Fees On Lease Start/Renwal With Void ERV £799,825 @ 15.0000 % = -£119,974 -£119,974 -£589,656

Component Valuation

16-Oct-2019 Gross rent (Current) £0 Valuation rent £0 YP perp @ 5.37% 18.6247 yp PV 1 Year @ 5.37% x 0.9490 17.6757 yp £0 16-Oct-2020 Gross rent (Reversion) £799,825 Valuation rent £799,825 YP perp @ 5.37% 18.6247 yp PV 2 Yrs @ 5.37% x 0.9007 16.7750 yp £13,417,080

Gross Value £13,417,080

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 58 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - Simpson Thacher & Bartlett LLP

Description Level 19 Status Occupied and Sublet Lease 22 years from 29-Sep-2000 Expiring 28-Sep-2022 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £667,150 Rental Value £800,280 from Areas (Unrounded) Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa 19 £65.00 12,312 100.00 % 0.00 £800,280 12,312 £800,280 *Rental Value using UnRounded ERV £800,280

Lease History

Date Years Months Days Event Rent Paid 29-Sep-2015 5 0 0 Review £667,150 29-Sep-2020 2 0 0 Review £667,150 29-Sep-2022 0 6 0 Post Void £0 29-Mar-2023 0 6 0 Rent Free £0 29-Sep-2023 0 0 0 Reversion £800,280

Capital Costs/Income

Label Timing Initial Annual Amount Discounted Value Letting Fees On Lease Start/Renwal With Void ERV £800,280 @ 15.0000 % = -£120,042 -£120,042

Refurb Costs EV On Expiry Voids 12,312 ft² x £50.00 = -£615,600 -£615,600

Sevice Charge EV On Expiry Voids every 3 months until end of 12,312 ft² x £13.17 pa = -£162,149 -£81,075

Empty Rates EV On Expiry Voids every 3 months for 3 month12,312 ft² x £25.00 pa = -£307,800 -£76,950 -£893,666

Component Valuation

16-Oct-2018 Gross rent (Current) £667,150 Net rent £667,150 Less Froth Ded. -£106,954 Valuation rent £560,196 YP perp @ 5.37% 18.6247 yp £10,433,509 29-Sep-2022 Gross rent (Re-letting Void) £0 Valuation rent -£560,196 YP 1 Year 0 Mths @ 5.37% 0.9490 yp PV 3 Yrs 11 Mths @ 5.37% x 0.8133 0.7718 yp -£432,370 29-Sep-2023 Gross rent (Reversion) £800,280 Valuation rent £240,084 YP perp @ 5.37% 18.6247 yp PV 4 Yrs 11 Mths @ 5.37% x 0.7718

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 59 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

14.3749 yp £3,451,191 16-Oct-2018 Gross rent (Froth) £106,954 Valuation rent £106,954 YP 3 Yrs 11 Mths @ 5.37% 3.4758 yp £371,754

Gross Value £13,824,084

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 60 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - Simpson Thacher & Bartlett LLP

Description Level 20, Store RB2.30 & 3 CPS Status Occupied and Sublet Lease 22 years from 29-Sep-2000 Expiring 28-Sep-2022 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £630,517 Rental Value £853,420 from Areas (Unrounded) Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa Office - 20 £65.00 12,755 100.00 % 0.00 £829,075 Ancilliary £15.00 1,123 100.00 % 0.00 £16,845 Car spaces £0.00 0 100.00 % 0.00 £7,500 13,878 £853,420 *Rental Value using UnRounded ERV £853,420

Lease History

Date Years Months Days Event Rent Paid 29-Sep-2015 5 0 0 Review £630,517 29-Sep-2020 2 0 0 Review £630,517 29-Sep-2022 0 6 0 Post Void £0 29-Mar-2023 0 6 0 Rent Free £0 29-Sep-2023 0 0 0 Reversion £853,420

Capital Costs/Income

Label Timing Initial Annual Amount Discounted Value Refurb Costs EV On Expiry Voids 13,878 ft² x £50.00 = -£693,900 -£693,900

Sevice Charge EV On Expiry Voids every 3 months until end of 13,878 ft² x £13.17 pa = -£182,773 -£91,387

Empty Rates EV On Expiry Voids every 3 months for 3 month13,878 ft² x £25.00 pa = -£346,950 -£86,737

Letting Fees On Lease Start/Renwal With Void ERV £853,420 @ 15.0000 % = -£128,013 -£128,013 -£1,000,037

Component Valuation

16-Oct-2018 Gross rent (Current) £630,517 Net rent £630,517 Less Froth Ded. -£33,123 Valuation rent £597,394 YP perp @ 5.37% 18.6247 yp £11,126,313 29-Sep-2022 Gross rent (Re-letting Void) £0 Valuation rent -£597,394 YP 1 Year 0 Mths @ 5.37% 0.9490 yp PV 3 Yrs 11 Mths @ 5.37% x 0.8133 0.7718 yp -£461,080 29-Sep-2023 Gross rent (Reversion) £853,420 Valuation rent £256,026

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 61 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

YP perp @ 5.37% 18.6247 yp PV 4 Yrs 11 Mths @ 5.37% x 0.7718 14.3749 yp £3,680,356 16-Oct-2018 Gross rent (Froth) £33,123 Valuation rent £33,123 YP 3 Yrs 11 Mths @ 5.37% 3.4758 yp £115,130

Gross Value £14,460,719

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 62 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - Simpson Thacher & Bartlett LLP

Description Level 21, Store RB2.30 & 3 CPS Status Occupied and Sublet Lease 22 years from 29-Sep-2000 Expiring 28-Sep-2022 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £631,621 Rental Value £855,305 from Areas (Unrounded) Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa Office - 21 £65.00 12,784 100.00 % 0.00 £830,960 Ancilliary £15.00 1,123 100.00 % 0.00 £16,845 Car spaces £0.00 0 100.00 % 0.00 £7,500 13,907 £855,305 *Rental Value using UnRounded ERV £855,305

Lease History

Date Years Months Days Event Rent Paid 29-Sep-2015 5 0 0 Review £631,621 29-Sep-2020 2 0 0 Review £631,621 29-Sep-2022 0 6 0 Post Void £0 29-Mar-2023 0 6 0 Rent Free £0 29-Sep-2023 0 0 0 Reversion £855,305

Capital Costs/Income

Label Timing Initial Annual Amount Discounted Value Refurb Costs EV On Expiry Voids 13,907 ft² x £50.00 = -£695,350 -£695,350

Sevice Charge EV On Expiry Voids every 3 months until end of 13,907 ft² x £13.17 pa = -£183,155 -£91,578

Empty Rates EV On Expiry Voids every 3 months for 3 month13,907 ft² x £25.00 pa = -£347,675 -£86,919

Letting Fees On Lease Start/Renwal With Void ERV £855,305 @ 15.0000 % = -£128,296 -£128,296 -£1,002,142

Component Valuation

16-Oct-2018 Gross rent (Current) £631,621 Net rent £631,621 Less Froth Ded. -£32,908 Valuation rent £598,714 YP perp @ 5.37% 18.6247 yp £11,150,888 29-Sep-2022 Gross rent (Re-letting Void) £0 Valuation rent -£598,714 YP 1 Year 0 Mths @ 5.37% 0.9490 yp PV 3 Yrs 11 Mths @ 5.37% x 0.8133 0.7718 yp -£462,098 29-Sep-2023 Gross rent (Reversion) £855,305 Valuation rent £256,592

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 63 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

YP perp @ 5.37% 18.6247 yp PV 4 Yrs 11 Mths @ 5.37% x 0.7718 14.3749 yp £3,688,485 16-Oct-2018 Gross rent (Froth) £32,908 Valuation rent £32,908 YP 3 Yrs 11 Mths @ 5.37% 3.4758 yp £114,381

Gross Value £14,491,656

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 64 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - Simpson Thacher & Bartlett LLP

Description Level 22, Store RB2.30 & 3 CPS Status Occupied and Sublet Lease 22 years from 29-Sep-2000 Expiring 28-Sep-2022 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £632,580 Rental Value £856,345 from Areas (Unrounded) Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa Office - 22 £65.00 12,800 100.00 % 0.00 £832,000 Car spaces £0.00 0 100.00 % 0.00 £7,500 Ancilliary £15.00 1,123 100.00 % 0.00 £16,845 13,923 £856,345 *Rental Value using UnRounded ERV £856,345

Lease History

Date Years Months Days Event Rent Paid 29-Sep-2015 5 0 0 Review £632,580 29-Sep-2020 2 0 0 Review £632,580 29-Sep-2022 0 6 0 Post Void £0 29-Mar-2023 0 6 0 Rent Free £0 29-Sep-2023 0 0 0 Reversion £856,345

Capital Costs/Income

Label Timing Initial Annual Amount Discounted Value Refurb Costs EV On Expiry Voids 13,923 ft² x £50.00 = -£696,150 -£696,150

Sevice Charge EV On Expiry Voids every 3 months until end of 13,923 ft² x £13.17 pa = -£183,366 -£91,683

Empty Rates EV On Expiry Voids every 3 months for 3 month13,923 ft² x £25.00 pa = -£348,075 -£87,019

Letting Fees On Lease Start/Renwal With Void ERV £856,345 @ 15.0000 % = -£128,452 -£128,452 -£1,003,303

Component Valuation

16-Oct-2018 Gross rent (Current) £632,580 Net rent £632,580 Less Froth Ded. -£33,139 Valuation rent £599,442 YP perp @ 5.37% 18.6247 yp £11,164,447 29-Sep-2022 Gross rent (Re-letting Void) £0 Valuation rent -£599,442 YP 1 Year 0 Mths @ 5.37% 0.9490 yp PV 3 Yrs 11 Mths @ 5.37% x 0.8133 0.7718 yp -£462,660 29-Sep-2023 Gross rent (Reversion) £856,345 Valuation rent £256,904

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 65 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

YP perp @ 5.37% 18.6247 yp PV 4 Yrs 11 Mths @ 5.37% x 0.7718 14.3749 yp £3,692,970 16-Oct-2018 Gross rent (Froth) £33,139 Valuation rent £33,139 YP 3 Yrs 11 Mths @ 5.37% 3.4758 yp £115,184

Gross Value £14,509,941

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 66 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - Cravath Swaine & Moore LLP

Description Level 23 & 2 CPS Status Occupied and Let Lease 25 years from 06-Apr-2000 Expiring 23-Jun-2025 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £768,270 Rental Value £841,320 from Areas (Unrounded) Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Breaks

Act Date Penalty * 06-Apr-2020 Tenant £0

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa Office - 23 £65.00 12,828 100.00 % 0.00 £833,820 Car spaces £0.00 0 100.00 % 0.00 £7,500 12,828 £841,320 *Rental Value using UnRounded ERV £841,320

Lease History

Date Years Months Days Event Rent Paid 06-Apr-2015 5 0 0 Review £768,270 06-Apr-2020 0 6 0 Post Void £0 06-Oct-2020 0 6 0 Rent Free £0 06-Apr-2021 0 0 0 Reversion £841,320

Capital Costs/Income

Label Timing Initial Annual Amount Discounted Value Refurb Costs EV On Expiry Voids 12,828 ft² x £50.00 = -£641,400 -£641,400

Sevice Charge EV On Expiry Voids every 3 months until end of 12,828 ft² x £13.17 pa = -£168,945 -£84,472

Empty Rates EV On Expiry Voids every 3 months for 3 month12,828 ft² x £25.00 pa = -£320,700 -£80,175

Letting Fees On Lease Start/Renwal With Void ERV £841,320 @ 15.0000 % = -£126,198 -£126,198 -£932,245

Component Valuation

16-Oct-2018 Gross rent (Current) £768,270 Valuation rent £768,270 YP perp @ 5.37% 18.6247 yp £14,308,835 06-Apr-2020 Gross rent (Re-letting Void) £0 Valuation rent -£768,270 YP 1 Year 0 Mths @ 5.37% 0.9490 yp PV 1 Year 5 Mths @ 5.37% x 0.9258 0.8786 yp -£675,018 06-Apr-2021

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 67 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Gross rent (Reversion) £841,320 Valuation rent £73,050 YP perp @ 5.37% 18.6247 yp PV 2 Yrs 5 Mths @ 5.37% x 0.8786 16.3641 yp £1,195,398

Gross Value £14,829,214

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 68 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - Cravath Swaine & Moore LLP

Description Level 24 & Store RB2.56 Status Occupied and Let Lease 25 years from 06-Apr-2000 Expiring 23-Jun-2025 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £635,064 Rental Value £844,300 from Areas (Rounded) Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Breaks

Act Date Penalty * 06-Apr-2020 Tenant £0

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa Office - 24 £65.00 12,771 100.00 % 0.00 £830,115 Ancilliary £15.00 944 100.00 % 0.00 £14,160 13,715 £844,275 *Rental Value using Rounded ERV £844,300

Lease History

Date Years Months Days Event Rent Paid 06-Apr-2015 5 0 0 Review £635,064 06-Apr-2020 0 6 0 Post Void £0 06-Oct-2020 0 6 0 Rent Free £0 06-Apr-2021 0 0 0 Reversion £844,300

Capital Costs/Income

Label Timing Initial Annual Amount Discounted Value Refurb Costs EV On Expiry Voids 13,715 ft² x £50.00 = -£685,750 -£685,750

Sevice Charge EV On Expiry Voids every 3 months until end of 13,715 ft² x £13.17 pa = -£180,627 -£90,313

Empty Rates EV On Expiry Voids every 3 months for 3 month13,715 ft² x £25.00 pa = -£342,875 -£85,719

Letting Fees On Lease Start/Renwal With Void ERV £844,300 @ 15.0000 % = -£126,645 -£126,645 -£988,427

Component Valuation

16-Oct-2018 Gross rent (Current) £635,064 Net rent £635,064 Less Froth Ded. -£44,054 Valuation rent £591,010 YP perp @ 5.37% 18.6247 yp £11,007,412 06-Apr-2020 Gross rent (Re-letting Void) £0 Valuation rent -£591,010 YP 1 Year 0 Mths @ 5.37% 0.9490 yp PV 1 Year 5 Mths @ 5.37% x 0.9258 0.8786 yp

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 69 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

-£519,274 06-Apr-2021 Gross rent (Reversion) £844,300 Valuation rent £253,290 YP perp @ 5.37% 18.6247 yp PV 2 Yrs 5 Mths @ 5.37% x 0.8786 16.3641 yp £4,144,863 16-Oct-2018 Gross rent (Froth) £44,054 Valuation rent £44,054 YP 1 Year 5 Mths @ 5.37% 1.3820 yp £60,884

Gross Value £14,693,885

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 70 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - Willkie Farr and Gallagher (UK) LLP

Description Level 25 Lease 12 years from 15-Jun-2016 Expiring 23-Jun-2028 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £785,375 Rental Value £816,790 from Areas (Unrounded) Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Breaks

Act Date Penalty 23-Jun-2023 Tenant £0

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa 25 £65.00 12,566 100.00 % 0.00 £816,790 12,566 £816,790 *Rental Value using UnRounded ERV £816,790

Lease History

Date Years Months Days Event Rent Paid 15-Jun-2016 5 0 4 Review £785,375 19-Jun-2021 1 6 0 Fixed £392,688 19-Dec-2022 0 6 4 Interim £785,375 23-Jun-2023 1 2 0 Fixed £392,688 23-Aug-2024 3 10 0 Fixed £785,375 23-Jun-2028 0 0 1 Interim £785,375 24-Jun-2028 0 0 0 Reversion £816,790

Component Valuation

16-Oct-2018 Gross rent (Current) £785,375 Net rent £785,375 Less Froth Ded. -£131,943 Valuation rent £653,432 YP perp @ 5.37% 18.6247 yp £12,170,006 19-Jun-2021 Gross rent (Fixed Rent (RR date)) £392,688 Valuation rent -£260,744 YP 1 Year 6 Mths @ 5.37% 1.4053 yp PV 2 Yrs 8 Mths @ 5.37% x 0.8694 1.2218 yp -£318,580 23-Jun-2023 Gross rent (Fixed Rent (RR date)) £392,688 Valuation rent -£260,744 YP 1 Year 2 Mths @ 5.37% 1.1024 yp PV 4 Yrs 8 Mths @ 5.37% x 0.7826 0.8628 yp -£224,978 24-Jun-2028 Gross rent (Reversion) £816,790 Valuation rent £163,358

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 71 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

YP perp @ 5.37% 18.6247 yp PV 9 Yrs 8 Mths @ 5.37% x 0.6025 11.2209 yp £1,833,021 16-Oct-2018 Gross rent (Froth) £131,943 Valuation rent £131,943 YP 2 Yrs 8 Mths @ 5.37% 2.4315 yp £320,820 19-Dec-2022 Gross rent (Froth) £131,943 Valuation rent £131,943 YP 0 Yrs 6 Mths @ 5.37% 0.4911 yp PV 4 Yrs 2 Mths @ 5.37% x 0.8038 0.3948 yp £52,089 23-Aug-2024 Gross rent (Froth) £131,943 Valuation rent £131,943 YP 3 Yrs 10 Mths @ 5.37% 3.3835 yp PV 5 Yrs 10 Mths @ 5.37% x 0.7363 2.4913 yp £328,713

Gross Value £14,161,091

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 72 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - Willkie Farr and Gallagher (UK) LLP

Description Level 26 Status Vacant Unlet Lease 9 years from 10-Oct-2018 Expiring 23-Jun-2028 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £0 Rental Value £816,140 from Areas (Unrounded) Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa 26 £65.00 12,556 100.00 % 0.00 £816,140 12,556 £816,140 *Rental Value using UnRounded ERV £816,140

Lease History

Date Years Months Days Event Rent Paid 10-Oct-2018 2 3 0 Rent Free £0 10-Jan-2021 2 9 0 Fixed £784,750 10-Oct-2023 4 8 14 Review £784,750 24-Jun-2028 0 0 0 Reversion £816,140

Component Valuation

16-Oct-2018 Gross rent (Current) £0 Valuation rent £0 YP perp @ 5.37% 18.6247 yp £0 10-Jan-2021 Gross rent (Fixed Rent (RR date)) £784,750 Net rent £784,750 Less Froth Ded. -£131,838 Valuation rent £652,912 YP perp @ 5.37% 18.6247 yp PV 2 Yrs 2 Mths @ 5.37% x 0.8897 16.5700 yp £10,818,731 24-Jun-2028 Gross rent (Reversion) £816,140 Valuation rent £163,228 YP perp @ 5.37% 18.6247 yp PV 9 Yrs 8 Mths @ 5.37% x 0.6025 11.2209 yp £1,831,562 10-Jan-2021 Gross rent (Froth) £131,838 Valuation rent £131,838 YP 7 Yrs 5 Mths @ 5.37% 6.0117 yp PV 2 Yrs 2 Mths @ 5.37% x 0.8897 5.3484 yp £705,125

Gross Value £13,355,418

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 73 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - Willkie Farr and Gallagher (UK) LLP

Description Level 27 Lease 15 years from 05-Jun-2013 Expiring 23-Jun-2028 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £0 Rental Value £878,175 from Areas (Unrounded) Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa 27 £67.50 13,010 100.00 % 0.00 £878,175 13,010 £878,175 *Rental Value using UnRounded ERV £878,175

Lease History

Date Years Months Days Event Rent Paid 05-Jun-2018 0 6 20 Rent Free £0 25-Dec-2018 2 11 24 Interim £798,813 19-Dec-2021 3 2 0 Interim £399,407 19-Feb-2025 3 4 5 Interim £798,813 24-Jun-2028 0 0 0 Reversion £878,175

Component Valuation

16-Oct-2018 Gross rent (Current) £0 Valuation rent £0 YP perp @ 5.37% 18.6247 yp £0 25-Dec-2018 Gross rent (Interim Step (non-RR)) £798,813 Net rent £798,813 Less Froth Ded. -£96,273 Valuation rent £702,540 YP perp @ 5.37% 18.6247 yp PV 2 Mths @ 5.37% x 0.9900 18.4393 yp £12,954,355 19-Dec-2021 Gross rent (Interim Step (non-RR)) £399,407 Valuation rent -£303,133 YP 3 Yrs 2 Mths @ 5.37% 2.8427 yp PV 3 Yrs 2 Mths @ 5.37% x 0.8470 2.4078 yp -£729,875 24-Jun-2028 Gross rent (Reversion) £878,175 Valuation rent £175,635 YP perp @ 5.37% 18.6247 yp PV 9 Yrs 8 Mths @ 5.37% x 0.6025 11.2209 yp £1,970,779 25-Dec-2018 Gross rent (Froth) £96,273 Valuation rent £96,273 YP 2 Yrs 11 Mths @ 5.37% 2.6899 yp

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 74 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

PV 2 Mths @ 5.37% x 0.9900 2.6631 yp £256,384 19-Feb-2025 Gross rent (Froth) £96,273 Valuation rent £96,273 YP 3 Yrs 4 Mths @ 5.37% 2.9886 yp PV 6 Yrs 4 Mths @ 5.37% x 0.7177 2.1450 yp £206,507

Gross Value £14,658,150

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 75 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - United Trust Bank Limited

Description Level 28, Store RB1.67B.J & 2 CPS Status Occupied and Let Lease 10 years from 19-Jan-2015 Expiring 18-Jan-2025 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £754,010 Rental Value £895,055 from Areas (Unrounded) Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa Office - 28 £67.50 12,982 100.00 % 0.00 £876,285 Ancilliary £15.00 918 100.00 % 0.00 £13,770 Car spaces £0.00 0 100.00 % 0.00 £5,000 13,900 £895,055 *Rental Value using UnRounded ERV £895,055

Lease History

Date Years Months Days Event Rent Paid 19-Jan-2015 5 0 0 Review £754,010 19-Jan-2020 5 0 0 Review £754,010 19-Jan-2025 0 0 0 Reversion £895,055

Component Valuation

16-Oct-2018 Gross rent (Current) £754,010 Net rent £754,010 Less Froth Ded. -£37,966 Valuation rent £716,044 YP perp @ 5.37% 18.6247 yp £13,336,139 19-Jan-2025 Gross rent (Reversion) £895,055 Valuation rent £179,011 YP perp @ 5.37% 18.6247 yp PV 6 Yrs 3 Mths @ 5.37% x 0.7209 13.4259 yp £2,403,383 16-Oct-2018 Gross rent (Froth) £37,966 Valuation rent £37,966 YP 6 Yrs 3 Mths @ 5.37% 5.1969 yp £197,307

Gross Value £15,936,828

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 76 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - Winston and Strawn Property (London) Limited

Description Level 29 & Store RBH 2.69 Lease 10 years from 10-Jun-2013 Expiring 09-Jun-2023 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £0 Rental Value £899,859 from Areas (Unrounded) Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa Office - 29 £68.50 13,051 100.00 % 0.00 £893,994 Ancilliary £15.00 391 100.00 % 0.00 £5,865 13,442 £899,859 *Rental Value using UnRounded ERV £899,859

Lease History

Date Years Months Days Event Rent Paid 10-Jun-2018 1 0 0 Rent Free £0 10-Jun-2019 4 0 0 Interim £686,438 10-Jun-2023 0 6 0 Post Void £0 10-Dec-2023 0 6 0 Rent Free £0 10-Jun-2024 0 0 0 Reversion £899,859

Capital Costs/Income

Label Timing Initial Annual Amount Discounted Value Refurb Costs EV On Expiry Voids 13,442 ft² x £50.00 = -£672,100 -£672,100

Sevice Charge EV On Expiry Voids every 3 months until end of 13,442 ft² x £13.17 pa = -£177,031 -£88,516

Empty Rates EV On Expiry Voids every 3 months for 3 month13,442 ft² x £25.00 pa = -£336,050 -£84,012

Letting Fees On Lease Start/Renwal With Void ERV £899,859 @ 15.0000 % = -£134,979 -£134,979 -£979,607

Component Valuation

16-Oct-2018 Gross rent (Current) £0 Valuation rent £0 YP perp @ 5.37% 18.6247 yp £0 10-Jun-2019 Gross rent (Interim Step (non-RR)) £686,438 Valuation rent £686,438 YP perp @ 5.37% 18.6247 yp PV 7 Mths @ 5.37% x 0.9665 18.0005 yp £12,356,240 10-Jun-2023 Gross rent (Re-letting Void) £0 Valuation rent -£686,438 YP 1 Year 0 Mths @ 5.37% 0.9490 yp PV 4 Yrs 7 Mths @ 5.37% x 0.7840 0.7441 yp -£510,773

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 77 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

10-Jun-2024 Gross rent (Reversion) £899,859 Valuation rent £213,421 YP perp @ 5.37% 18.6247 yp PV 5 Yrs 7 Mths @ 5.37% x 0.7441 13.8585 yp £2,957,697

Gross Value £14,803,165

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 78 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - Winston and Strawn Property (London) Limited

Description Part Level 30 Lease 10 years from 10-Jun-2013 Expiring 09-Jun-2023 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £0 Rental Value £413,534 from Areas (Unrounded) Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa Part 30 £68.50 6,037 100.00 % 0.00 £413,535 6,037 £413,535 *Rental Value using UnRounded ERV £413,534

Lease History

Date Years Months Days Event Rent Paid 10-Jun-2018 1 0 0 Rent Free £0 10-Jun-2019 4 0 0 Interim £328,050 10-Jun-2023 0 6 0 Post Void £0 10-Dec-2023 0 6 0 Rent Free £0 10-Jun-2024 0 0 0 Reversion £413,534

Capital Costs/Income

Label Timing Initial Annual Amount Discounted Value Refurb Costs EV On Expiry Voids 6,037 ft² x £50.00 = -£301,850 -£301,850

Sevice Charge EV On Expiry Voids every 3 months until end of 6,037 ft² x £13.17 pa = -£79,507 -£39,754

Empty Rates EV On Expiry Voids every 3 months for 3 month6,037 ft² x £25.00 pa = -£150,925 -£37,731

Letting Fees On Lease Start/Renwal With Void ERV £413,534 @ 15.0000 % = -£62,030 -£62,030 -£441,365

Component Valuation

16-Oct-2018 Gross rent (Current) £0 Valuation rent £0 YP perp @ 5.37% 18.6247 yp £0 10-Jun-2019 Gross rent (Interim Step (non-RR)) £328,050 Valuation rent £328,050 YP perp @ 5.37% 18.6247 yp PV 7 Mths @ 5.37% x 0.9665 18.0005 yp £5,905,070 10-Jun-2023 Gross rent (Re-letting Void) £0 Valuation rent -£328,050 YP 1 Year 0 Mths @ 5.37% 0.9490 yp PV 4 Yrs 7 Mths @ 5.37% x 0.7840 0.7441 yp -£244,099 10-Jun-2024

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 79 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Gross rent (Reversion) £413,534 Valuation rent £85,484 YP perp @ 5.37% 18.6247 yp PV 5 Yrs 7 Mths @ 5.37% x 0.7441 13.8585 yp £1,184,681

Gross Value £6,845,652

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 80 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - United Trust Bank Limited

Description Part Level 30 Lease 7 years from 31-Mar-2017 Expiring 18-Jan-2025 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £0 Rental Value £450,662 from Areas (Unrounded) Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Breaks

Act Date Penalty * 31-Mar-2022 Tenant £0

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa Part 30 £68.50 6,579 100.00 % 0.00 £450,662 6,579 £450,662 *Rental Value using UnRounded ERV £450,662

Lease History

Date Years Months Days Event Rent Paid 31-Mar-2017 1 7 0 Rent Free £0 31-Oct-2018 3 5 0 ResumeERV £450,662 31-Mar-2022 0 6 0 Post Void £0 01-Oct-2022 0 6 0 Rent Free £0 01-Apr-2023 0 0 0 Reversion £450,662

Capital Costs/Income

Label Timing Initial Annual Amount Discounted Value Refurb Costs EV On Expiry Voids 6,579 ft² x £50.00 = -£328,950 -£328,950

Sevice Charge EV On Expiry Voids every 3 months until end of 6,579 ft² x £13.17 pa = -£86,645 -£43,323

Empty Rates EV On Expiry Voids every 3 months for 3 month6,579 ft² x £25.00 pa = -£164,475 -£41,119

Letting Fees On Lease Start/Renwal With Void ERV £450,662 @ 15.0000 % = -£67,599 -£67,599

Break penalty On Valuation Fixed -£225,331 = £225,331 £225,331 -£255,660

Component Valuation

16-Oct-2018 Gross rent (Current) £0 Valuation rent £0 YP perp @ 5.37% 18.6247 yp £0 31-Oct-2018 Gross rent (Resume market (non-RR)) £450,662 Valuation rent £450,662 YP perp @ 5.37% 18.6247 yp PV @ 5.37% x 0.9979 18.5848 yp £8,375,445

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 81 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

31-Mar-2022 Gross rent (Re-letting Void) £0 Valuation rent -£450,662 YP 1 Year 0 Mths @ 5.37% 0.9516 yp PV 3 Yrs 5 Mths @ 5.37% x 0.8346 0.7942 yp -£357,895

Gross Value £8,017,550

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 82 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - Seyfarth Shaw UK (LLP)

Description Level 31 Lease 10 years from 22-Jan-2015 Expiring 21-Jan-2025 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £729,372 Rental Value £905,200 from Areas (Rounded) Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Breaks

Act Date Penalty * 22-Jan-2020 Tenant £0

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa 31 £69.50 13,024 100.00 % 0.00 £905,168 13,024 £905,168 *Rental Value using Rounded ERV £905,200

Lease History

Date Years Months Days Event Rent Paid 22-Jan-2015 5 0 0 Review £729,372 22-Jan-2020 0 6 0 Post Void £0 22-Jul-2020 0 6 0 Rent Free £0 22-Jan-2021 0 0 0 Reversion £905,200

Capital Costs/Income

Label Timing Initial Annual Amount Discounted Value Refurb Costs EV On Expiry Voids 13,024 ft² x £50.00 = -£651,200 -£651,200

Sevice Charge EV On Expiry Voids every 3 months until end of 13,024 ft² x £13.17 pa = -£171,526 -£85,763

Empty Rates EV On Expiry Voids every 3 months for 3 month13,024 ft² x £25.00 pa = -£325,600 -£81,400

Letting Fees On Lease Start/Renwal With Void ERV £905,200 @ 15.0000 % = -£135,780 -£135,780

Break penalty On Valuation Fixed -£729,372 = £729,372 £729,372 -£224,771

Component Valuation

16-Oct-2018 Gross rent (Current) £729,372 Valuation rent £729,372 YP perp @ 5.37% 18.6247 yp £13,584,370 22-Jan-2020 Gross rent (Re-letting Void) £0 Valuation rent -£729,372 YP 1 Year 0 Mths @ 5.37% 0.9490 yp PV 1 Year 3 Mths @ 5.37% x 0.9359 0.8882 yp -£647,843 22-Jan-2021

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 83 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Gross rent (Reversion) £905,200 Valuation rent £175,828 YP perp @ 5.37% 18.6247 yp PV 2 Yrs 3 Mths @ 5.37% x 0.8882 16.5429 yp £2,908,702

Gross Value £15,845,229

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 84 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - Prembco Holding B.V.

Description Level 32 Status Occupied and Let Lease 5 years from 11-Jul-2018 Expiring 10-Jul-2023 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £453,279 Rental Value £906,558 from Areas (Unrounded) Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa 32 £69.50 13,044 100.00 % 0.00 £906,558 13,044 £906,558 *Rental Value using UnRounded ERV £906,558

Lease History

Date Years Months Days Event Rent Paid 11-Jul-2018 1 8 0 Review £453,279 11-Mar-2020 3 4 0 Interim £906,558 11-Jul-2023 0 6 0 Post Void £0 11-Jan-2024 0 6 0 Rent Free £0 11-Jul-2024 0 0 0 Reversion £906,558

Capital Costs/Income

Label Timing Initial Annual Amount Discounted Value Refurb Costs EV On Expiry Voids 13,044 ft² x £50.00 = -£652,200 -£652,200

Empty Rates EV On Expiry Voids every 3 months for 3 month13,044 ft² x £25.00 pa = -£326,100 -£81,525

Sevice Charge EV On Expiry Voids every 3 months until end of 13,044 ft² x £13.17 pa = -£171,789 -£85,895

Letting Fees On Lease Start/Renwal With Void ERV £906,558 @ 15.0000 % = -£135,984 -£135,984 -£955,603

Component Valuation

16-Oct-2018 Gross rent (Current) £453,279 Valuation rent £453,279 YP perp @ 5.37% 18.6247 yp £8,442,207 11-Mar-2020 Gross rent (Interim Step (non-RR)) £906,558 Valuation rent £453,279 YP perp @ 5.37% 18.6247 yp PV 1 Year 4 Mths @ 5.37% x 0.9294 17.3106 yp £7,846,529 11-Jul-2023 Gross rent (Re-letting Void) £0 Valuation rent -£906,558 YP 1 Year 0 Mths @ 5.37% 0.9490 yp PV 4 Yrs 8 Mths @ 5.37% x 0.7806 0.7409 yp -£671,628

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 85 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Gross Value £15,617,108

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 86 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - Kaye Scholer LLP

Description Level 33 Use Office suite Status Occupied and Sublet Lease 10 years from 11-May-2016 Expiring 10-May-2026 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £837,200 Rental Value £901,530 from Areas (Unrounded) Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Breaks

Act Date Penalty * 11-May-2021 Tenant £0

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa 33 £70.00 12,879 100.00 % 0.00 £901,530 12,879 £901,530 *Rental Value using UnRounded ERV £901,530

Lease History

Date Years Months Days Event Rent Paid 11-May-2016 5 0 0 Review £837,200 11-May-2021 0 6 0 Post Void £0 11-Nov-2021 0 6 0 Rent Free £0 11-May-2022 0 0 0 Reversion £901,530

Capital Costs/Income

Label Timing Initial Annual Amount Discounted Value Refurb Costs EV On Expiry Voids 12,879 ft² x £50.00 = -£643,950 -£643,950

Sevice Charge EV On Expiry Voids every 3 months until end of 12,879 ft² x £13.17 pa = -£169,616 -£84,808

Empty Rates EV On Expiry Voids every 3 months for 3 month12,879 ft² x £25.00 pa = -£321,975 -£80,494

Letting Fees On Lease Start/Renwal With Void ERV £901,530 @ 15.0000 % = -£135,230 -£135,230

Break penalty On Valuation Fixed -£558,133 = £558,133 £558,133 -£386,348

Component Valuation

16-Oct-2018 Gross rent (Current) £837,200 Valuation rent £837,200 YP perp @ 5.37% 18.6247 yp £15,592,639 11-May-2021 Gross rent (Re-letting Void) £0 Valuation rent -£837,200 YP 1 Year 0 Mths @ 5.37% 0.9490 yp PV 2 Yrs 6 Mths @ 5.37% x 0.8743 0.8297 yp

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 87 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

-£694,665 11-May-2022 Gross rent (Reversion) £901,530 Valuation rent £64,330 YP perp @ 5.37% 18.6247 yp PV 3 Yrs 6 Mths @ 5.37% x 0.8297 15.4539 yp £994,146

Gross Value £15,892,120

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 88 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - Flextrade UK Ltd

Description Level 34 Use Office suite Lease 10 years from 30-Nov-2016 Expiring 29-Nov-2026 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £928,690 Rental Value £928,690 from Areas (Unrounded) Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Breaks

Act Date Penalty * 30-Nov-2021 Tenant £0

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa 34 £70.00 13,267 100.00 % 0.00 £928,690 13,267 £928,690 *Rental Value using UnRounded ERV £928,690

Lease History

Date Years Months Days Event Rent Paid 30-Nov-2016 1 9 0 Rent Free £0 30-Aug-2018 3 3 0 ResumeERV £928,690 30-Nov-2021 0 6 0 Post Void £0 30-May-2022 0 6 0 Rent Free £0 30-Nov-2022 0 0 0 Reversion £928,690

Capital Costs/Income

Label Timing Initial Annual Amount Discounted Value Refurb Costs EV On Expiry Voids 13,267 ft² x £50.00 = -£663,350 -£663,350

Sevice Charge EV On Expiry Voids every 3 months until end of 13,267 ft² x £13.17 pa = -£174,726 -£87,363

Empty Rates EV On Expiry Voids every 3 months for 3 month13,267 ft² x £25.00 pa = -£331,675 -£82,919

Letting Fees On Lease Start/Renwal With Void ERV £928,690 @ 15.0000 % = -£139,304 -£139,304 -£972,935

Component Valuation

16-Oct-2018 Gross rent (Current) £928,690 Valuation rent £928,690 YP perp @ 5.37% 18.6247 yp £17,296,617 30-Nov-2021 Gross rent (Re-letting Void) £0 Valuation rent -£928,690 YP 1 Year 0 Mths @ 5.37% 0.9490 yp PV 3 Yrs 1 Month @ 5.37% x 0.8494 0.8061 yp -£748,604

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 89 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Gross Value £16,548,013

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 90 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

Tenant - SquarePoint Capital LLP

Description Level 35/36 Use Office suite Status Occupied Lease 10 years from 01-Dec-2016 Expiring 30-Nov-2026 Rent Reviews every 5 years Upward only Parent Tenure Freehold Current Rent £1,107,120 Rental Value £1,095,500 from Areas (Unrounded) Valuation Method Hardcore (5.369 % , 5.369 % )

Notes

Breaks

Act Date Penalty * 01-Dec-2021 Tenant £0

Areas

Areas per ft² ft² % of ERV +/-% adjust Rent pa 36 £70.00 2,658 100.00 % 0.00 £186,060 35 £70.00 12,992 100.00 % 0.00 £909,440 15,650 £1,095,500 *Rental Value using UnRounded ERV £1,095,500

Lease History

Date Years Months Days Event Rent Paid 01-Dec-2017 4 0 0 Review £1,107,120 01-Dec-2021 0 6 0 Post Void £0 01-Jun-2022 0 6 0 Rent Free £0 01-Dec-2022 0 0 0 Reversion £1,095,500

Capital Costs/Income

Label Timing Initial Annual Amount Discounted Value Refurb Costs EV On Expiry Voids 15,650 ft² x £50.00 = -£782,500 -£782,500

Sevice Charge EV On Expiry Voids every 3 months until end of 15,650 ft² x £13.17 pa = -£206,110 -£103,055

Empty Rates EV On Expiry Voids every 3 months for 3 month15,650 ft² x £25.00 pa = -£391,250 -£97,812

Letting Fees On Lease Start/Renwal With Void ERV £1,095,500 @ 15.0000 % = -£164,325 -£164,325 -£1,147,693

Component Valuation

16-Oct-2018 Gross rent (Current over-rented) £1,107,120 Rental Value £1,095,500 Net rent £1,107,120 Less Froth Ded. -£11,620 Valuation rent £1,095,500 YP perp @ 5.37% 18.6247 yp £20,403,411 01-Dec-2021 Gross rent (Re-letting Void) £0 Valuation rent -£1,095,500 YP 1 Year 0 Mths @ 5.37% 0.9490 yp

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 91 REPORT Property Valuation Jones Lang Lasalle

Citypoint,Ropemaker Street,London

Report Date 07 November 2018 Valuation Date 16 October 2018

PV 3 Yrs 1 Month @ 5.37% x 0.8492 0.8060 yp -£882,940 16-Oct-2018 Gross rent (Froth) £11,620 Valuation rent £11,620 YP 3 Yrs 1 Month @ 5.37% 2.8078 yp £32,626

Gross Value £19,553,097

Portfolio: City One Offs 2018 ARGUS Valuation - Capitalisation 2.50.079 Page 92