THE PEEL GROUP REVIEW 2017 POSITIVELY IMPACTING PEOPLE’S LIVES POSITIVELY IMPACTING PEOPLE’S LIVES 1715 1761 1850 1882 Liverpool builds the Frances Egerton, the first Sir Robert Peel, Prime Minister and Businessman Daniel Adamson world’s first commercial Duke of Bridgewater, builds the founder of the Metropolitan Police, becomes champion promoter wet dock Bridgewater Canal to transport dies. His home town of Bury, where of the Manchester Ship Canal coal from his mines in Worsley to his father’s textile business was although he does not live industrial areas of Manchester founded, mourns him and erects to see its completion in 1894 Peel Tower in his memory 1930 1971 Built in the grounds John Whittaker of Speke Hall, Liverpool, acquires Peel Mills, Speke Airport starts commercial the foundation of flights to Croydon Airport via The Peel Group Barton Aerodrome in Salford - now City Airport and Heliport 1987 1997 1998 2004 Olayan Group Peel invests in airports with the Following a House of Lords Peel Holdings is taken becomes a shareholder acquisition of Liverpool Airport, decision confirming private and rebrands in Peel upon the acquisition subsequently renamed planning in 1995, as The Peel Group of Boundary Post Ltd in honour of John Lennon The Trafford Centre opens 2007 2008 2011 2016 The BBC signals its intention 50:50:50 Peel exchanges its investment Liverpool2 deep water to move jobs to Manchester Peel launches in The Trafford Centre container terminal, in 2004 and the Salford Quays The Ocean Gateway for shares in intu Properties built by Peel Ports, site is chosen. Construction officially opens of MediaCityUK commences in 2007 and opens in 2011 4 THE PEEL GROUP | REVIEW 2017 HTTP://PEELGROUP.GLOBAL 5 CONTENTS Introduction 8 The Peel Group Overview 10 Peel Ports 28 intu Properties 34 Peel Land and Property 40 Other Investments 46 6 THE PEEL GROUP | REVIEW 2017 HTTP://PEELGROUP.GLOBAL 7 THE PEEL GROUP: INTRODUCTION THE PEEL GROUP: INTRODUCTION FOREWORD 17% of passengers currently flying out directors are successfully growing each of their local Yorkshire airport adds to of our businesses and it’s the talent and FROM THE the potential. We also anticipate growth dedication of these people which will for Durham Tees Valley Airport as it continue to grow Peel. CHAIRMAN continues to reinvest itself and its assets, We still have a long way to go, but we We have experienced another year of and also for City Airport and Heliport, own the assets and have the people consolidation and growth across all of so well located close to TraffordCity, to take us where we want to be. Our our investments; transport, retail and Manchester and its city region. investee businesses still have in excess leisure, property, land, energy and Very few companies boast Peel’s of 70,000 acres of land and water and utilities, with all our teams working diversification and expertise across so the opportunities that come with it tirelessly towards our shared vision many sectors; land, property, utilities, to explore. The challenge, for us, will of continuous growth fuelled by energy, environmental, logistics, ports, be to replenish these land banks, not reinvestment. airports, media, retail and leisure. It’s the piecemeal, but through significant and We are proud to be breaking ground power of the synergies between these strategic acquisitions which hold real in a number of areas, notably, within businesses that gives Peel its unique potential. JOHN WHITTAKER Land and Property Group, where insight and exceptional platform for the It is testament to our shareholders, the we established a new platform for future. Olayan Group and Tokenhouse, which development and investment in modern Peel Ports has this year performed To enable us to achieve our £50 billion share our vision and allow us to plough warehousing, Peel Logistics Property, exceptionally well, completing the development programme and to go profits back into the business, enabling in partnership with management and world acclaimed Liverpool2 deep forward with greater impetus, our us to drive forward with our strategy Macquarie Group. Within our other water container terminal, during very strategy of ‘less is more’ will be key to to regenerate, create jobs, wealth and investments we also established a new tough market conditions. It has already accelerating our success. By reducing economic prosperity. partnership in the growth market of commenced its phase 2 expansion plans. our equity and securing the support utility networks with Ancala Partners, Peel’s future is very bright and we will There remains a huge opportunity of strategic partners such as Legal & Leep Utilities. continue to forge ahead, working to within Peel Airports. Since taking back General, Macquarie Group, Deutsche the best of our ability, on a National, Indeed all parts of the Group performed a controlling ownership of Liverpool Asset & Wealth Management and Ancala European and Global scale with the well with valuation increases across Ports John Lennon Airport in 2014, it is now Partners we spread our capital further, honesty, integrity and humility for which and Land and Property. These increases in a profitable position and has recently yet still maintain management and apply we have become known and respected. were slightly off-set by a decrease in published its exciting expansionary expertise in these areas, enabling us to achieve our goals much faster. share prices across our listed portfolio 2050 masterplan. With the enhanced There is no limit to what we can achieve, (intu Properties, Harworth, Hammerson accessibility linking Doncaster Sheffield It’s a strategy which has been working Peel is here to support the communities and LandSec). We believe that this is Airport to the Great Yorkshire Way and exceptionally well for MediaCityUK and in which we invest in perpetuity. largely as a result of changes in the the motorway network, coupled with the Peel Ports. political landscape. The underlying transformational potential of an airport John Whittaker performance of these companies station on the East Coast Main Line, Of course it’s the people that make Chairman remains strong. We have every Doncaster Sheffield Airport has huge a company and drive its success. DETERMINATION, confidence that the share prices will potential. The leakage of passengers Supported by a talented, ambitious PERSEVERANCE recover to reflect this. from the Airport’s catchment with only and enthusiastic team of people, our AND PATIENCE 8 THE PEEL GROUP | REVIEW 2017 HTTP://PEELGROUP.GLOBAL 9 THE PEEL GROUP: OVERVIEW THE PEEL GROUP: OVERVIEW STEWARDSHIP The Peel Group Supervisory Board John Whittaker Executive Chairman The Peel Group Neil Lees Steven Underwood Deputy Chairman Chief Executive The Peel Group The Peel Group Hani Lazkani Tom Allison Robert Hough Chris Eves Paul Wainscott Non Executive Non Executive Non Executive Finance Director Finance Director & Chairman & Chairman IOM Peel Ports Peel Airports Peter Hosker Peter Nears John Peter Whittaker Mark Whitworth David Glover Legal Director Executive Director Group Corporate Chief Executive Land & Property Strategic Planning Development Peel Ports Operations Director James Whittaker Mark Whittaker Louise Morrissey Stephen Wild Land & Property Land & Property Land & Property Land & Property Development Director Property Director Planning Director MD, MediaCityUK 10 THE PEEL GROUP | REVIEW 2017 HTTP://PEELGROUP.GLOBAL 11 THE PEEL GROUP: OVERVIEW THE PEEL GROUP: OVERVIEW WE CREATE THE FUTURE FROM GROUP PERFORMANCE Together, the Group’s investments and OUR PROUD PAST TO POSITIVELY It’s pleasing to report that in the last year, its partners both public and private IMPACT PEOPLE’S LIVES the Group has seen its investments in contribute to the wellbeing of the UK economy. Metrics measured over the Our long standing Land and Property and Ports grow by last 10 years illustrating the positive vision is founded 10%, albeit this has been partially offset impact on people’s lives include: on the conversion by the reduction in the value of our listed Neil Lees of natural assets investments post the EU referendum. Deputy Chairman The Peel Group into sustainable businesses or environments. We strive INVESTING to grow and turn these natural assets into businesses, investments or property, £5.4BN £850M CAPITAL through ports, airports, energy, retail, INVESTMENT leisure, hotels, venues or residential Overall, these investments extend to over developments for family homes or 70,000 acres of land and water, 40 million apartment living. MediaCityUK sq ft of commercial space and 50 million sq ft of future development. In the Our aim is to create places where STRATEGIC APPROACH last year, we have seen the underlying businesses and people can flourish, businesses within the portfolio invest Today, The Peel Group is an investor, land thereby making a lasting contribution or facilitate an investment of circa £850 10.5M SQ FT owner, developer, manager and operator EMPLOYMENT to the economic and social wellbeing million. This pioneering investment, often of a range of businesses and investments FLOORSPACE of the UK. in a development space that does not held either directly or indirectly through attract traditional investors, drives growth in Since 1971, when the foundations of shares in private and public companies. economic activity, employment and homes. Peel today were established by John As owner and manager, our investments Whittaker, we’ve built a strong and Peel’s strategic objective is always to unique reputation for delivery of a generate activity that provides insight prioritise opportunities with prospects multiplicity of places or investments into the behaviour of businesses and for superior long-term growth. In doing 133,000 across the UK from Kent to Scotland. consumers encompassing: PERMANENT JOBS so we utilise expertise derived from (66,000 IN NORTHERN POWERHOUSE) We recognise our role as the custodian TRADE FLOWS intimate knowledge and understanding of key infrastructure with a history that COMMODITY DEMAND from a diverse portfolio to inform the dates back over 300 years from the RETAIL AND LEISURE SPEND choice of investments.