Timeline: 2-14 Baker Street

Parties: British Land, McAleer & Rushe. Bank of Ireland, NAMA, Portman Estate

Topic: 2-14 Baker Street - in London which was subject to a loan from Bank of Ireland

Timeline: Date Event Notes August Several media articles report on This was the second reported purchase by and agreement between British Land and McAleer & Rushe from British Land – the September McAleer & Rushe for the sale (by BL) previous deal was for the Swiss Centre in 2005 of 2-14 Baker Street. Leicester Square.

Guide price for the 2-14 Baker Street property was UK£47.5m with British Land offering it as a potential 150,000 sq. ft development opportunity. 5th 2-14 Baker Street purchased by Travers Smith acted for McAleer & Rushe October McAleer & Rushe by British Land for Group on the acquisition. 2005 UK£57.2m. The existing building tenants: Purchase funded with a Bank of Offices let on a lease expiring in December Ireland loan. 2009. Retail accommodation let under four separate leases all expiring by December 2009 The property comprised 94,000 sq. ft. held on a 98 year headlease from the Portman Estate. 16th Planning Application submitted to Planning application filed by Gerald Eve, December Westminster City Council listing Chartered Surveyors and Property Consultants 2008 Owners pf 2-14 Baker Street as: Contact person: James Owens 1. Portman Estate (freeholder) [email protected] 2. Mourant & Co Trustees Ltd and Mourant Property Trustees Ltd Baker Street Unit Trust is owned by McAleer & as Trustees of the Baker Street Rushe with a Jersey address. See Appendix I Unit Trust, 22 Grenville Street, St Hellier, Jersey JE4 8PX Baker Street Investments Ltd is an entity 3. Baker Street Investments Limited owned by McAller & Rushe and was 17-19 Dungannon Road, incorporated on Aug 17, 2005 Registered Cookstown, BT80 8TL Office C/O MUCKLE LLP TIME CENTRAL, 32 4. Baker Street Investments Ltd GALLOWGATE, NEWCASTLE UPON TYNE, TYNE 5. EDF Energy Networks, 40 AND WEAR. No accounts filed (effective date: Grosvenor Place, London SW1X 31 March 2011) 7EN See Appendix 1

EDF Energy Networks had an electrical substation in the 2-14 Baker Street basement

16th March Planning Approval granted by Planning consent obtained for 139,000 sq ft of 2009 Westminster City Council to office space with retail units at ground level. McAleer & Rushe Properties Ltd This is nearly 50% larger than the original building (94,000 sq. ft.)

16th April McAleer & Rushe sell 2-14 Baker 2010 Street back to British Land for The press release announcing the deal states UK£29m – representing a loss of “As part of the sale arrangement, McAleer & UK£28.2m (unadjusted) despite the Rushe will take a share in the development site having been granted planning profits.” permission for new building that will be almost 50% larger than the 2-14 Baker Street is a prime Central London original. location at the start of Baker Street and adjoining Portman Square. Property prices in British Land and the London Stock the vicinity were not unduly affected by the Exchange issue a press release property downturn. outlining the deal. The property was not placed on the open market.

Commenting on the deal, JP Morgan say of British Land that they are “on the right side of the trade”

16th April Incorporation of 2-14 BAKER STREET Ownership of the 2-14 BAKER STREET TRUSTEE 2010 TRUSTEE NO.1 Limited; and 2-14 companies not detailed on the incorporation BAKER STREET TRUSTEE NO.2 and associated company documents. Limited in Jersey. A legal agreement signed with Westminster City Council in 2010 shows a connection between these entities and McAleer & Rushe.

See information under 11th October 2010

11th Planning Memorandum and Memorandum and Agreement parties listed October Agreement signed with Westminster as: 2010 City Council. 1. The Portman Estate Nominees (One) Limited and The Portman Estate Nominees The agreement is signed as a Deed by (Two) Limited 2-14 BAKER STREET TRUSTEE NO.1 2. 2-14 BAKER STREET TRUSTEE NO.1 LIMITED acting in its capacity as co- LIMITED and 2-14 BAKER STREET TRUSTEE trustee of the Baker Street Unit Trust NO.2 LIMITED acting in their respective and signed by Andrew McNulty capacities as trustees of the Baker Street (Director) Unit Trust 3. The Lord Mayor and Citizens of the City of Andrew McNulty is likely the same Westminster person mentioned in this article: http://tinyurl.com/7va94wv Note: P34 of McALeer & Rushe Annual Accounts for 2010 and filed in March 2011 lists See reference to being a director on companies in which the directors of McAleer & a number of Jersey based companies Rushe own interests. in Property 21st March McAleer & Rushe submit a business 2011 plan to NAMA 22nd McAleer and Rushe file annual Loss of £11m on turnover of UK£62m. March accounts. Turnover down 45% from the previous year. 2011 As at March 2010 the company had £51m of term loans and a further UK£10m of overdrafts.

All loans repayable on demand - implying there had been a breach of covenant.

Auditor indicates uncertainty about “going concern”. 29th March BBC reports McAleer & Rushe loans See: http://tinyurl.com/7zdhpcx 2011 taken over by NAMA

21st British Land present to Offices Excerpts: September Analyst & Investor Event in London – 2011 presention by Nigel Webb “…. we repurchased for approximately 50% of the value it previously The presentation document (page sold for in 2004, we structured a three-way 19) contains what may be deliberate deal to purchase the site from McAleer and errors (?) including the wrong Rushe and the Bank of Ireland, with the address (10 Portman Square is stated consent of Nama.” and not the correct address of 2-14 Baker Street) and the wrong date of “This is not an insignificant achievement.” original sale (2004 instead of the correct 2005. “The acquisition has already performed very well to date. Since purchase, the valuers have See http://tinyurl.com/7dcfoh4 increased the site value by 52% net of capex.”

Appendix 1

Entities Associated with and/or owned by McAleer & Rushe

Source: www.namawinelake.wordpress.com/the-developers

Note: Baker Street Unit Trust; Baker Street Investments Limited and McALeer and Rushe Properties Limited highlighted in red and bold font

Dunloe Ewart, Seamus McAleer, Eamonn Laverty (Eamon Laverty, Eammon Laverty, Eammonn Laverty), Mary Laverty, Martin Magee, Stephen Surphlis, James Higgins, Keystone Lintels, Keystone Roof Windows, Jermon Developments, McAleer & Rushe Construction Limited, McAleer & Rushe Residential Limited, McAleer & Rushe (Civil Engineering) Limited, London Road Estates Limited, Lavangna Limited, Conmurry Developments Limited, Flatmile Limited, College Court Properties Limited, London Road Apartments Limited, Louisville Properties Limited, Westland Estates Limited, Aire Commercials (Leeds) Limited, Aire Commercials Limited, Albion Inns Limited, Aldergrove Airport Hotel Limited, Baker Street Investments Limited, Baker Street Unit Trust, Bedford Street Developments Limited, BH Commercials (NI) Limited, Bramall Development Limited, Carnegie Inns Limited, Castlefarm Properties Limited, Clandeboye Developments Limited, Collegian Property Limited, Cookstown Developments Limited, Coolatinney Developments Limited, Dancelane Limited, Destrina Limited, Drumcairne Properties Limited, Drum Road Estates Limited, Drum Road Properties Limited, Flamewall Limited, Fleming Inns Limited, Forest Commercial Management Limited, Forest Commercial Limited, Forest Inns Limited, Glandor Limited, Glenastar Limited, GNT Properties Limited, Kildress Estates Limited, Timec 1205 LLP, Timec 1208 LLP, Timec 1206 LLP, Leicester Square Investments Limited, Lowscroft Limited, M&R Estates Limited, McAleer and Rushe Holdings Limited, McAleer and Rushe Properties Limited, MRDE Limited, MRP (Baltic) Limited, MRP (Blackfriars) Limited, MRP (Bournemouth) Limited, MRP (Finance) Limited, MRP (Lancefield) Limited, MRP (Portsmouth) Limited, Mullaghmoyle Developments Limited, Norham House 1138 Limited, Pentonville Properties Limited, Timec 1209 LLP, Plymouth Inns Limited, Pride Park Inns Limited, St James Gate Development Limited, Swiss Centre Limited, Taelos Limited, Termon Developments Limited, Waterfront Inns Limited, Westland Developments (NI) Limited, Westland Estates Limited, Westland (Sheffield) Limited, Wilmar Leisure

Appendix II

McAleer & Rushe Annual Accounts 2010 and published 22 March 2011– excerpts

Annual account (PDF can be downloaded from: http://tinyurl.com/7jgj7ow