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Golden Square

Investor Roadshow UK / US – May 2006 Background

ƒ Project centred on the redevelopment of Golden Square shopping centre, Warrington. Undertaken by the Warrington Retail Limited Partnership (WRLP), a Joint Venture between Lend Lease, Legal & General and clients of Arlington Property Investors GLA Estimated Rental Value (ERV) Existing 28,800m2 £7.3m Extension 34,800m2 £9.4m Future Total 63,600m2 £16.7m

ƒ Lend Lease selected by Legal & General in October 2003 as preferred partner. Key terms of deal ƒ Lend Lease purchases 50% in WRLP, a new UK single asset limited partnership through Conditional sale and purchase, which owns Golden Square shopping centre and development rights to extension ƒ Preconditions to purchase (land assembly, planning and prelets) ƒ Yield, leasing and delivery risks are shared between by the owners ƒ Lend Lease acts as Asset Manager and Development Manager for WRLP, Legal & General acts as Fund Manager (Operator) for WRLP 31 Warrington location

Glasgow

Manchester Dublin Warrington

Birmingham

Bristol

32 conurbation and beyond

33 Catchment plan

SSoSouthportSSoSouthportououuuththportththportththportporporttt ƒ Forecast 70% increase in ChorleyChorley MiddlebrookMiddlebrook RPRP catchment on completion to BuryBury BoltonBolton OrmskirkOrmskirk RobinRobin ParkPark RPRP BoltonBolton FormbyFormby SkelmersdaleSkelmersdale FormbyFormby SkelmersdaleSkelmersdale WiganWigan 1,433,000 WiganWigan FarnworthFarnworth EllesmereEllesmere RPRP MaghullMaghull SwintonSwinton CheethamCheetham HillHill ƒ Dominant age group : LeighLeigh SalfordSalford LeighLeigh EcclesEccles LowryLowry DODO AintreeAintree KirkbyKirkby KirkbyKirkbyCore ManchesterManchester Core EarlestownEarlestownTraffordTrafford CentreCentre BootleBootle WaltonWaltonStSt HelensHelens TraffordTrafford CentreCentre StretfordStretford 25 – 44 years 29% BootleBootle StSt HelensHelens StSt HelensHelens RPRP 296,790296,790 UrmstonUrmston OldOld SwanSwan PrescotPrescot BirchwoodBirchwood ChorltonChorlton cumcum HardyHardy AlbanAlban RPRP SaleSale StockportStockport LiverpoolLiverpool HuytonHuyton GeminiGemini RPRP StockportStockport White collar 58% BroadheathBroadheath BelleBelle ValeV a le RiversideRiverside RPRP WarringtonWarrington WythenshaweWythenshawe AltrinchamAltrincham MossleyMossley HillHill WidnesWidnes JLP-CheadleJLP-Cheadle StocktonStockton HeathHeath JLP-CheadleJLP-Cheadle ManchesterManchester AirportAirport NewNew MerseyMersey RPRP ManchesterManchester AirportAirport M&S-HandforthM&S- RuncornRuncorn WilmslowWilmslow

EllesmereEllesmere PortPort CheshireCheshire OaksOaks NorthwichNorthwich ColiseumColiseum RPRP MacclesfieldMMacclesfield a c c les field

GreyhoundGreyhound RPRP ChesterChester WinsfordWinsford CongletonCongleton BroughtonBroughton ShoppingShoppingSecondary ParkPark SandbachSandbach Secondary TertiaryTertiary 592,830592,830 543,620 543,620 LeLee CreweCrewe FreeportFreeport FOFO FreeportFreeport FOFO TllTll

34 Regional setting

Corridor of growth ƒ Over 2,000 new homes to be built in Warrington in the next five years ƒ Last 20 years has seen population grow at five times the national average ƒ Omega Business Park to add 24,000 new jobs over the next 15 years ƒ Catchment has over 50 major international companies including Coca-Cola Schweppes, Compaq and Nestlé Excellent transport links ƒ Warrington situated close to M6, M56 and M62. New highway upgrade at M6/M62 interchange ƒ Warrington has two train stations, both to be upgraded Competing centres ƒ Gemini Retail Park (Marks & Spencer, Next) 44,000m2 ƒ Paradise Street, 100,000m2 ƒ 142,000m2 ƒ Grand Arcade, 20,000m2 ƒ The Forum, 40,000m2 35 Catchment statistics

Golden Square Golden Square The extension of Golden Square Current Extended (estimated) will create a much more attractive destination and will: Town ranking 83rd 39th ƒ Boost its position in overall Total catchment 829,000 1,433,000 town rankings to a top 50 population destination Catchment available - £1.721bn Spend ƒ Stop leakage to the centres at Market share 4% 10% the edge of the catchment

Sales £83m (estimate) £193m

Rent £7.3m £16.7m

Zone A rent / ft2 £137.50 £150

Source : Management Horizons report May 2004 36 Aerial view

Existing centre

Redeveloped centre

37 Original Golden Square

ƒ Retail Area 30,000m2 ƒ Units 80 ƒ Purchase price £78.5m (2004) ƒ Car parking 1,600 spaces ƒ Anchors Marks & Spencer, BhS, New Look

Prior to development, the existing Golden Square was a sub-regional shopping centre with a basic fashion, comparison goods and service offer 38 Future Golden Square

ƒ Retail Area 63,600m2 ƒ Units 145 ƒ End Value £240 - 280M ƒ Car parking 1,700 spaces ƒ New Bus Interchange ƒ Anchors: Debenhams, H&M, , Next, Top Shop/Top Man

Following development, Golden Square will be the dominant regional centre in its catchment area focussed on fashion, comparison goods and catering

39 Leasing plan

Total Rental Budget £16.7m ƒ Existing centre £7.3m per annum ƒ Extension £9.4m per annum

Leasing progress for extension

Exchanged 35%

In solicitors hands or 17% Heads of Terms agreed Offers received or in 17% negotiations

Balance 31%

40 Timeframe for development

ƒ Investment opportunity marketed August 2003 ƒ JV executed April 2004 ƒ Construction commenced March 2005 ƒ Bus Station opens June 2006 ƒ Roof car park opens July 2006 ƒ Refurbishment completed November 2006 ƒ Centre Opening March 2007

41 Integrated team and services

Lend Lease Legal & General / 50% share Strathclyde Pension Fund Min. £10M direct investment 50% share @ 25% each £50m Equity £50m Equity

Conditional Warrington Retail Sale and Golden Square Debt £100m Partnership Purchase Assets of Existing Centre and Max gearing 50% New Single Asset UK with previous Development Rights to Extension Limited Partnership owners Management Lend Lease Contracts Legal & General The Development Manager The Fund Manager Lend Lease The Asset Manager Bovis Lend Lease Two Stage Lump Sum Contract

42 Points of interest

ƒ Established key relationship with Legal & General and Arlington that has been replicated in the Performance Retail Partnership ƒ Speed of delivery – less than 4 years from entry to completion ƒ A true joint venture where the responsibilities / roles are shared between the Partners. All decisions are taken by a joint Partnership board ƒ Another example for LL of the regeneration of a town centre – but combining with the refurbishment of an existing shopping centre in operation

43 The Debenhams department store

44 View down the north mall towards Debenhams

45 View of the south east knuckle

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