PLANTATION PLACE LONDON EC3 4TH FEBRUARY 2009 ON BEHALF OF N M ROTHSCHILD & SONS LIMITED CB Richard Ellis Indirect Investment Services Limited Kingsley House Wimpole Street London W1G 0RE Switchboard 020 7182 2000 Fax No 020 7499 9624 Direct Line 020 7182 2740
[email protected] N M Rothschild & Sons Limited Our Ref Your Ref New Court St Swithin's Lane 4th February 2009 London EC4P 4DU Attn: Dan Matthews Dear Sirs PLANTATION PLACE, LONDON EC3 In accordance with your instruction of 27th January (Appendix I) we have pleasure in providing our investment views regarding the current market value and marketability of Plantation Place, London EC3 (‘The Property’). This advice is subject to our standard terms and conditions as detailed in Appendix II and is solely for the benefit of those parties detailed in your instruction letter. As such we have provided summaries of the current market conditions in the City’s investment, occupational and development markets and thought has been given to future market forecasts. Consideration has been given to the asset profile and the future performance that this property should provide. Strategic options for a future disposal are discussed as are the estimated net proceeds that such a disposal could generate. 1. City of London Occupational Market a. Current Conditions By the end of 2007 the City of London office market had enjoyed four years of rental growth and vacancy rates had reached their lowest point since 2002. This, however, changed dramatically through 2008, City Office take up fell from 5.1m sq ft in 2007 to 3.6m sq ft in 2008 with only 600,000 sq ft of lettings in Q4 2008.