Strawberry Star Real Estate PCC Limited (Cell 1) Quarterly Report – Q3 2020

Prepared by Strawberry Star Capital Private & Confidential

Strawberry Star UK Real Estate PCC Ltd

Contents

1. Covid-19 Response ...... 3 2. Fund Overview ...... 4 3. Summary – Lu2on ...... 5 Background Location Design and Planning Construction Progress Funding Health and Safety Sales Marketing Summary 4. Lu2on Shaping Your Future ...... 8 5. Summary – Kenton ...... 11 Background Location Design and Planning Funding Rental Sales and Marketing Summary 6. Summary – Harlow ...... 13 Background Location Design and Planning Funding Sales and Marketing Summary 7. Summary – Wembley (Watkin Road) ...... 15 Background Location Design and Planning Funding Sales and Marketing Summary 8. Impact of Covid-19 ...... 17 Housing Market Development Land Long-term prospects Sources Appendix 01 ...... 19 Overall UK Residential Market Private Rental Project Specific

Strawberry Star UK Real Estate PCC Ltd

1. Covid-19 Response

We reassure you that at Strawberry Star Group “SSG” we are treating the Covid-19 outbreak as our greatest priority and we are committed to supporting our Investors as we work through these challenging times to overcome the impact of the pandemic. Our teams are working tirelessly and we remain proactive in our approach towards business. We are balancing the needs of our clients whilst ensuring the health and safety of our employees. Although times have changed, our mission and values remain the same. In response to the developing situation, the necessary precautionary measures are being taken. We have robust contingency plans in place to safeguard the interests of our Investors. We are working closely with our lending partners, contractors and consultants to mitigate the cost and time implications on the ongoing projects as much as possible. Please be assured that we will continue to monitor the situation closely and provide you with the latest updates, as and when needed. We appreciate your trust in us as we continue to navigate through this difficult time together. Please see the remainder of the report for an update on the projects during the 3rd quarter held by Strawberry Star Real Estate PCC Limited (Cell 1) with further updates on the Covid-19 impact and remediation to follow in the final quarter of 2020 report.

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2. Fund Overview

The Fund has deployed equity across 4 projects; Lu2on (Residential, Retail and Office), Kenton (Commercial & Residential), Harlow (Residential & Commercial) and Wembley (Residential & Commercial) following the completion of the investment period. For each project, there is a firm business plan strategy in place for effective implementation and returns.

GDV: £242.9m Capital Structure:

Target Completion: Q4 2021 (P1) Debt to date: £36.1m

Number of Units: 877 (401 P1) Equity: £31.2m

Location: Luton Facility Amount: £81.1m

Lu2on

GDV: £52.7m Capital Structure:

Target Completion: Q1 2023 Debt to date: £6.5m

Number of Units: 118 Equity to date: £5.6m (50% JV) Location: Harrow Facility Amount*: £41.1m Target construction start: Q2 2021 *Development Debt to be arranged

Affordable Housing proceeds to be used to Kenton fund the construction of the affordable units.

GDV: £241.2m Capital Structure:

Acq Debt to date: £10.2m Target Completion: Q4 2022 (P1) Equity to date (P1): £12.2m Number of Units: 826 Equity for phase 1 only

Location: Essex Facility Amount (P1)*: £45.8m *Development Debt to be arranged Target construction start: Q1/Q2 2021

Harlow (Above information is subject to enhanced planning)

GDV: £72.8 mil Capital Structure: Target Completion: Q2 2023 Equity: £10m-£15m Subject to debt/AH funding Number of Units: 174 Facility Amount*: £54.2m Location: Wembley *Development Debt to be arranged

Target construction start: Q1 2021 Affordable Housing proceeds to be used to Wembley fund the construction of the affordable units.

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3. Summary – Luton (Lu2on)

Background The contractor has remobilised and has been The site was acquired for £28.8m on April 30, back at full productivity since September 2020 2018 with a planning consent for 685 units, a with the build progressing well with the agreed 209-room hotel and a medical centre. Enhanced completion date of Phase 1 of November 2021 planning permission has been secured for 877 on track. residential units, with potential for c.80,000sqft of Retail and Office space as well as an increase The main concrete frame is complete and board in capacity by 100 rooms in the hotel with installation to the facades, internal partition restaurants and bar facilities and a potential erection and the Mechanical, Electrical, and banqueting suite, subject to planning approval. Plumbing installations are on-going. The Other facilities include roof top gardens, a benchmark apartment is progressing well with a supermarket, public realms and communal target completion date of early mid November gardens for residents. 2020 with progress made on the utility Location connection. The site is in a prime location in Luton with direct access to Luton Airport Parkway Railway station, which is 23 mins from London King’s Cross. The site is situated 1.2 miles (4 mins by bus) from the Luton town centre. The monorail (under construction) adjacent to the site will improve the access to Luton Airport (5th largest Airport in the UK). It will offer a fast and efficient transit from the site to the airport terminal within 3 mins.

The local Council has targeted a £1.5bn investment over the next 20 years within the area and is seeking to create over 18,000 jobs. The airport is expected to double passenger Funding numbers from £15m to £30m by 2025. This will Cheyne Capital development facility was signed create more jobs and provide a further demand in September 2020. Funding for the remaining for housing and hotel beds in the area. construction of Phase A of the Luton project (consisting of 401 units of suites, one and two- Luton is a prime hotspot for buyers and offers bedroom apartments, a gym, retail units and a comfortable living within the commuter belt public piazza) is on-going on a monthly basis. The area. The residential units will be attractive for funding will continue on a monthly basis until the overseas and local investors and we also estimated practical completion. anticipate a strong demand from first time buyers, commuting professionals and help to buy Health and Safety purchasers. The team has optimised layouts to There were no accidents or reportable incidents develop an innovative product for occupiers and in the period. JJR continues to implement Covid- investors. 19 safety precautions on site. Design, Planning and Construction The first phase will consist of 401 residential Sales units and 21,000sqft of retail space. To date, the Strawberry Star Sales team have

exchanged 99 units and 5 units have been The scheme is being delivered in phases with the reserved. The exchanged and reserved units first phase build progressing with JJ Rhatigan represent £25.2m GDV. All units exchanged to (JJR) as the main contractor following full date represent an increase of c.£625K to the execution of the building contract of £63.4m. agreed base case viability to date.

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Lu2on Show Home 3D Virtual Tour The 1st commercial unit marketed saw significant interest with offers shortlisted from two well- https://players.cupix.com/p/9G26UoYN known supermarket chains. Co-Op has been selected as the supermarket anchor tenant for commercial unit 1 (c.4,000sqft). The project is attracting buyers across multiple Marketing platforms with offline marketing strategies such as a six-sheet poster around the Luton Airport The developments have received good exposure Parkway Station and online marketing strategies in leading property media and the mainstream such as social campaigns on the benefits of the media within the quarter. area and lifestyle in Luton.

The Lu2on scheme as a whole continues to make Along with UK Government initiatives such as the a splash in the media with our recent ongoing Stamp Duty Holiday, low interest rates, announcements, such as signing Co-Op as the and the resilience of the UK property market anchor tenant and financing. The project remains have contributed to greater appetite amongst in the limelight via branding, visibility and sales buyers. perspectives. The Reserve-to-Buy scheme, which gives an

The scheme is positioned as an investment hub opportunity for first-time buyers to reserve a in all campaigns; the website, telephone calls, property off plan at today’s market price for just and social media has seen a surge of interest in 5% deposit with the Government providing 5- the 2nd half of the year. year interest-free loan up to 40% of the property value has continued to generate significant leads The marketing strategy has focused on growing and sales in Q3 2020. brand awareness and visibility locally. With various events and conferences being sponsored A continued effort to showcase the Luton project by Lu2on, giving exposure to potential buyers through various property news portals and and investors. publications. The strategy is to secure maximum quality coverage for Luton in the top property The Marketing Suite continued to experience media, leading to more exposure and awareness greater traffic too which has enabled the Sales among prospective buyers and investors. team to further connect with prospective buyers. Marketing campaigns have targeted social media The multiple award-winning, mixed-use adverts aimed at investors and first-time buyers. development continued to receive attention from potential home-buyers. The scheme is marketed among first-time buyers and overseas Lu2on Show Home Walk Through Video property investors, who are keen on taking https://drive.google.com/file/d/1Kd_3l0yzs3oTN0xWyjW7cal advantage of the long-term growth prospects. Gses-YG-d/view

https://drive.google.com/file/d/16LTMlypgwXKPni9xCLfLIlqo Exposure in the Middle East and Asia through

X1cxHc8N/view channel partners has continued generating a Lu2on Animation Video significant amount of leads with Investors still

https://youtu.be/PF5Z06JeFzU keen on investing in the UK real estate market.

Welcome to the Lu2on Development Video Lu2on won the ‘Mixed-Use Architecture’ Award

https://youtu.be/AUICPFvYDqc for the East of England region at the UK Property Awards, part of the prestigious International Lu2on Show Home Apartment Video Property Awards (IPA) 2020. In 2019, the https://drive.google.com/open?id=1sAHa0brky8kqdRLyzkQl8 development won the Best Mixed-Use s-WqT4KVV6o

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Development Award in the UK with a 5-star An increase to the construction budget has been rating and also the ‘Best Development incurred, which can be predominantly absorbed Marketing’ Award. Lu2on was shortlisted for the within the project contingency. First Time-buyer Readers’ Award 2020 in the ‘Large Development’ category. The development won the ‘Best Off-plan Development’ Award in 2019.

Summary The project remains on course within the original business plan. The refinancing of the development facility has been completed and the sales remain strong with only 4-month delay.

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4. Lu2on Shaping Your Future External CGIs

Interior and exterior images are computer generated and are for illustrative purposes only.

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Onsite Construction

Above images onsite

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Lu2on Show Home Images

Actual show flat images

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5. Summary – Kenton The team are developing technical planning Background reviews and reports. The main reports of note The freehold commercial building consisting of include the Daylight/Sunlight Analysis and the c38,000sqft office was acquired in May 2018 for Overheating Analysis. The ongoing refinement of £10.8m representing a gross yield of 7.8% on both these reports will have an impact of the contracted rental income. final submitted design. Location The site is located in a prime suburban area in Lorne Stewart Group, a current commercial North West London with connectivity to 3 tenant within the existing building, has mainline stations servicing the over ground and requested to remain in the building until Q2 underground. Journey time: Liverpool Street - 2021. The situation in respect of the planning and 32mins and London Bridge - 32mins. construction time table is being monitored and a decision is to be made as to whether to retain The planned exit strategy for the Kenton project Lorne Steward within the building and thus is to hold the project as a commercial property achieving rental income for the first half of 2021 up until the end of 2020 and then develop or sell with construction to begin at the start of Q3 the land to optimise investor returns. The 2021. Harrow area will attract buyers from buy to let investors, families, commuting professionals, Funding working couples and Help to Buy purchasers. At completion, the purchase price was £10.8m. Funding with OakNorth Bank had been agreed at Design and Planning a level of £6.5m. We are now approaching vacant possession in December 2020 of the Kenton site and The OakNorth investment facility interest progressing the exit strategy. payments continue to be funded by the rent received from the tenants. OakNorth are keen to The planning team is in the process of delivering fund the development subject to terms and an enhanced new build scheme of 118 units to planning consent. maximize profits from development or sale of the land. Planning permission for a Permitted Rental Development scheme that delivers 58 There have been rental distributions to the apartments within the current structure has investors at a 6.34% yield (pre-tax) on equity been approved. Planning for the enhanced invested in Q1 and Q2 2020 and the remainder of scheme is to be submitted in Q4 2020, with the rental income will service the interest and planning approval expected in Q1 2021. contribute towards planning costs.

Formal written feedback for pre-application has Sales and Marketing been received and it included positive feedback The market conditions will be monitored and, if from the Council. The Council were impressed there is any further delay, the pre-sale marketing with the new build scheme and preferred the launch will be deferred. At this stage, there are design over the PD scheme. The 2-block design no sales or marketing risks. was welcomed as it removed the single aspect north facing units and the Council was happy with the proposal for the retail units. A second Summary pre-application meeting was held on the 29th In conclusion the project remains in line with the September 2020 which was largely positive and strategy, budget and no material variances to constructive. A follow-up meeting for November report. 2020 is planned prior to submission in mid Q4 2020.

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Kenton Road CGIs

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6. Summary – Harlow Background from Essex Place, was positive. The key points The acquisition of land adjacent to the Harvey mentioned were: Centre exchanged on 24th December 2018, and completed on 2nd April 2019 for a purchase price  No issues with the proposed Bulk/Massing of £15.55m.  National unit sized units are required  Keen to see greater variety of units The scheme represents a redevelopment  Contributions to local infrastructure opportunity with planning consent for 447 required residential units, c. 40,000+sqft of retail space,  No major objections from the outline with the potential of an additional 400+ permission in principle residential units. Location Written comments are expected in Q4 2020 The site sits directly adjacent to the Harvey following positive first Pre-Application meeting Centre in Harlow Town Centre. The site benefits held with planning officers including design from a good local bus connectivity to Harlow officer from Essex Place. Once received, the Town Railway station, with journey times to team will address any issues raised and continue with a second pre-application meeting. Liverpool Street being 30 mins, Tottenham Hale - 17mins and London Victoria station - 37mins. Funding The land loan has been extended for an Overall, the Area Action Plan in Harlow supports additional period of 12 months with Octopus good quality, high density residential Bank until April 2021. This gives us flexibility on developments in the town centre area as part of planning, construction programme (phase 1) and the regeneration strategy. The enhanced scheme also exit options for the remaining phases. The is in line with the Area Action Plan and therefore estimated additional interest costs on the land we expect that the planning application for the loan can be absorbed within the contingency enhanced scheme will be approved. budget for the project as a whole. The Capital Design and Planning team is exploring options of a facility to refinance Phase 1 has been approved for an additional 77 the land loan as well as funding for the development of the first phase in 2021. units totalling 163 units with 5% affordable housing (discount market sale) being provided on Sales and Marketing site. The Council would like these affordable Sales and Marketing campaigns have been put housing to be offered first to Harlow residents. on hold for the time being in light of the Covid- The strategy is to achieve planning for enhanced 19 pandemic. The Sales and Marketing Teams masterplan (phases 2-4) enabling us to increase ready with a suitable plan whenever a decision the total number of residential units to 826+. to relaunch sales is made.

The planning and professional team was Summary mobilised and design works progressed at pace In light of market conditions, we are assessing throughout Q3 2020. Work continues on forming various options for the scheme as well as the design guide and parameter plans that will be analysing the impact on costs, funding options part of the outline permission as it will set the and the programme of the construction start for rules for the use, scale, bulk, massing and Phase 1 and timeline for the marketing launch. appearance of the building when reserved matters are discharged. A decision has been taken that commencement of construction on Phase 1 be put on hold, The pre-application meeting with the Harlow however the planning application for an planning officers, including the design officer enhanced scheme on Phases 2-4 will continue.

Harlow External CGIS

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Images above are computer generated and are for illustrative purposes Harlow Show Flat Images

Images above are actual show flat photos

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7. Summary – Wembley (Watkin Road)

Background Planning for a 174-unit scheme was approved The exchange of Watkin Road No.1-3 and No.9 with resolution to grant on September 20 by the took place on 24th February 2019 and on 26th Brent Council. Section 106 is to be signed by all April 2019 respectively for a combined purchase parties concerned mid Q4 2020. price of £13.33m. Funding Watkin Road site represents potentially 174 The deposit has been paid with the remainder to units, which consists of 124 private units and 50 be funded through equity and debt via an affordable housing (AH) units subject to acquisition loan on completion in December planning. 2020.

This site is an excellent opportunity to develop a Debt terms for an acquisition loan have been mixed-use scheme within the Wembley Growth arranged to secure the completion of the site Area, Wembley Area Action Plan (WAAP) and the with discussions on-going with potential JV Housing Zone. investors to secure further equity for the project Location completion. Discussions with potential buyers The site is located close to Wembley Park Tube over the disposal of the site with a novation of Station (0.4 miles), which serves the Jubilee and the contract on completion are ongoing. Metropolitan lines, giving access to King’s Cross Sales and Marketing station in 16 minutes and Liverpool Street within No sales and marketing risk currently. 27 minutes. Summary In line with the strategy, there are no budget and Watkin Road South is on the doorstep of material variances to report. Although as Wembley Stadium, SSE Arena Wembley and discussed previously the completion of the site is Brent Civic centre, which is well served with bars, due in December 2020, various options are coffee shops and restaurants serving a variety of available and being explored. cuisines. Design and Planning The current design proposals consist of 2 residential towers of 14 and 20 stories consisting of 174 units and c.950 sqm commercial space. In line with Brent Council and GLA recommendations, the scheme is achieving 15% 3bed (family units), 35% affordable housing (based on a habitable room split) and reinstating the existing quantum of commercial floorspace on the site.

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Image above represents the Wembley Growth Area, Wembley Area Action Plan (WAAP) and the Housing Zone

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8. Impact of Covid-19

The UK property market has rebounded record, and up 52% compared to the five-year significantly through August 2020 as the lingering average. In London, the figure was 34% above effects of the lockdown subside in lieu of the five-year average and the third highest favourable economic, political and housing weekly figure this year. sector specific conditions. Heightened market activity, annual price growth and attractive There was a price recovery of 1.5% in July, rental yields are key indicators which reflect representing £3,314 growth in value on average, rising buyer and investor confidence. The Buy- given that average house prices in July were To-Let sector in particular has experienced £220,936 according to Nationwide. The elevated growth levels as existing landlords take Chancellor’s announcement on 8th July of a advantage of historic credit lows to expand their stamp duty holiday is providing further support portfolios. Further, new landlords are capitalising to the housing sector. Prior to this legislative on the substantial stamp duty holiday discount amendment home buyers would start paying on offer till March 2021 to enter the market stamp duty above a £125,000 threshold at 2% till which bodes well for Strawberry Star £250,000 and 5% above this up to £925,000. developments. However, until 31st March 2021, this Stamp Duty Land Tax threshold has been increased to With regards to investment volumes, given that £500,000 - meaning that approximately 90% of foreign investment has been around half of total owner occupier transactions in England will pay volumes in recent years, we anticipate that no stamp duty, and those paying in excess of this London is exceptionally well positioned in the threshold will pay £15,000 maximum. global economy, due to the longstanding networks of investment offices and staff based in Lenders are gradually beginning to return to the the capital. Cushman & Wakefield analysis shows sector, buoying access to mortgage borrowing. that investors purchased in excess of £189bn in Nationwide Building Society for instance real estate over the preceding 3 years, and £89bn increased its lending limit to 90 per cent LTV for of this was foreign investment. Of this foreign first-time buyers from July 2020, with no set limit investor share, £46bn was by foreign investors on the number of home loans available. And as with a UK office which indicates that in excess of other lenders follow suit, this sea-change is 50% would not be impinged in the worst case. resulting in enhanced buyer activity going into Ongoing policy changes and exemptions are the third quarter of 2020. In London, Knight evidence that such short-term barriers to Frank data showed that the number of new international travel shouldn’t limit investment. prospective buyers registering in the capital in the week ending 8 August was the sixth highest figure in more than 20 years. Housing Market A number of positive signals in the economy, such as low inflation at 0.6% in June 2020 and a Development Land low interest base rate of 0.1% set by the Bank of Coronavirus has mitigated the feasibility of the England, lifted the housing market through the construction industry delivering on second quarter of 2020. Property sales saw steep Governmental targets of 300,000 homes per year drops during the lockdown (94%) but recovered in England. estimate that this year (2020- quickly with a residential transactions report 2021) 171,000 new homes will be built in showing that, on a seasonally adjusted basis, the England, 66% of the number built last year. With number of homes sold in the UK in June grew by construction capacity having been curtailed 31.7% from May. reported that the through the lockdown, housebuilders are now number of offers accepted outside the capital in beginning to regain previous momentum in the week to 6 June was the highest on completions.

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Expectations for the wider market vary, with best Phenomena such as the rise of flexible & remote case scenarios assuming an economic bounce working have accelerated shifts in market back in 2021 and thus completions falling just preferences significantly. Surveys in the post- 31% in 2020 before recovering to pre-Covid Covid-19 era reveal that millennials for instance, levels in 2021-22. However, the worst-case who comprise almost half of the current housing scenarios forecast that the economy might take market (90% being renters), exhibit preferences longer to recover, with delivery this year at 50% for properties with balconies, terraced gardens, of 2019-20 levels and recovery reliant on BTR and and outdoor space, which support working from affordable housing sectors till 2023-24 to reach home. The tremendous growth of Build-To-Rent last year’s levels. This shortage in housing supply of late is clearly in response to such evolving is a key support for long term capital preferences, Savills’ BTR analysis expects appreciation, and rental yield growth, investor purpose-designed and built homes to make up expectations in the UK housing market. the majority of housing supply in future.

Long-term prospects Sources There were a number of buyers seeking a home before the lockdown and it is clear that this pent- ARLA up demand is finally being released, as https://www.arla.co.uk/news/august-2020/market-outlook-is-strong/ demonstrated by elevated levels of enquiries Bank of England https://bit.ly/2Epsj9d brokers and agents are experiencing as well as https://www.bankofengland.co.uk/statistics/money-and- significant jumps in volumes of visitors to credit/2020/september-2020 property portals like and Zoopla. https://bit.ly/34ulrC9 Cushman & Wakefield Despite market pressures arising from the https://www.cushmanwakefield.com/en/united- lockdown, and short-term disruptions caused by kingdom/insights/covid-19-impacts-uk-real-estate the pandemic, a number of economic indicators FT www.ftadviser.com/mortgages/2020/07/14/mortgage-lenders-begin- continue to support five-year price predictions of return-to-90-ltv/ 15.1% growth across the UK. These include long https://www.ft.com/content/cbe96e8b-b9f7-4083-a7a4-1fd06d59df7c term trends such as a low cost of debt, low levels Knight Frank https://www.knightfrank.co.uk/research/article/2020-08-19- of price growth in the run up to the crisis, and households-expecting-property-prices-to-rise ongoing government interventions which https://www.knightfrank.co.uk/research/active-capital/2020-06-15- record-levels-of-offers-accepted-a-month-after-lockdown-lifted continue to mitigate the impact of such https://content.knightfrank.com/research/1360/documents/en/uk- exogenous shocks. hotels-trading-performance-review-2019-6805.pdf Nationwide https://www.nationwide.co.uk/- With GDP expected to bounce back, after short /media/MainSite/documents/about/house-price- term falls of up to 8.3% this year, unemployment index/2020/Jul_2020.pdf is similarly expected to rebound to below 4% by Savills https://www.savills.co.uk/blog/article/301680/residential- 2022 - an employment rate lower than over five property/what-impact-will-covid-19-have-on-future-housing-supply-in- years following the Global Financial Crisis of england-.aspx https://www.savills.co.uk/research_articles/229130/283707-0%20%20- 2008. So, transactions are expected to return to %202019%20data normal levels in 2021, with London and the South www.savills.co.uk/insight-and-opinion/savills-news/305686/savills- revises-up-its-uk-mainstream-house-price-forecasts-for-2020-and- East expected to lead the UK’s economic beyond recovery. Zoopla https://advantage.zpg.co.uk/wp-content/uploads/2020/10/Zoopla-UK- house-price-index-Oct2020-final.pdf Prices in prime central London for instance were 19.7% lower than 2014 highs before the Covid-19 crisis. This represents a significant buying opportunity for international buyers, purchasing in foreign currencies, which will be increasingly realised as international travel restrictions ease. London is particularly well positioned, given its existing network of financial investment offices, to service this demand.

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Appendix 01

Overall UK Residential Market Project Specific

There had been widespread talk of a “Boris Luton is one of best places to buy property in the bounce” in the property market. From November UK in 2020, according to The Times, The Property 2019, house prices in UK cities increased by 3.4% Reporter and Zoopla. A September 2020 study by to reach £257,200, while prices in London Zoopla ranked Luton amongst the top 10 recorded an annual growth of 1.7%. Following locations to live in for London commuting when Boris Johnson’s election, and a clear win for the taking into account the increase in remote Conservatives in December 2019, some political working in 2020, and therefore requirement for uncertainties were resolved. This paved the way appropriate facilities to enable this. Zoopla for significant flourishing of the UK housing considered internet download speed in these market through 2020 and beyond. According to areas and the number of cafes (in case people JLL, house prices in Greater London are expected prefer leaving the house to work), as well as to witness a cumulative growth of 17% between conventional measures such as house prices and 2020-2024. distance to London.

Mortgage approvals increased from 85,500 in Transformation of the local shopping centre and August to 91,500 in September. The Bank of the Luton Cultural Quarter is underway, which England said this was the highest number of will contribute £29m to the local economy, approvals since September 2017. This is reflected increasing employment. ‘Direct Air to Rail Transit in Zoopla’s house price index which reveals that (DART)’ driverless rail shuttle will provide fast, there are currently 140,000 more homeowners frequent and reliable transfers for passengers waiting to complete on their properties right between Luton Airport, Parkway rail station and now, compared to the same period last year. the Luton Airport Terminal in around 5 minutes, 24 hours a day. This is scheduled to be opened by London continues its prevalence as one of the 2021. The planned Luton Airport expansion has top residential property markets in the world, the potential to contribute £4.3bn to the UK figuring amongst the top-5 destinations in the UK economy by 2034, 70,000 jobs nationally, 42,000 for investments into the buy-to-let (BTL) sector. jobs in Luton and 38 million passengers per year According to the latest Buy-to-Let City Tracker by 2050, including 10,000 jobs by 2030. from Aldermore Bank, London continues to perform well across several parameters, such as According to a new survey compiled by Compare average total rent, the best short-term returns the Market, Luton is a better place to live for through yield, long-term return through house young people than London. Using data from the price growth over the past ten years, the lowest Office for National Statistics, the company number of vacancies as a proportion of total looked at average rent, salary, mental well-being, housing stock, and percentage of the city 4G coverage, nightlife and youth population. population in the rental market. Despite all the Overall, it found Luton was the 19th best place to uncertainties over the past two years, rental live in the UK for young adults and the town prices remain strong at £630 per room per gained the number one spot for mental well- month. Annual rental yields of a new buy-to-let being. The town scored higher than London, purchase start from 3%. In 2019-20, rental which was ranked in 20th place. growth was 4.4%, one of the highest for any UK city. Harlow – House Prices have risen significantly over the past decade with analysis of Land Private renters now account for 30 per cent of all Registry data showing that between 2010 - 2020 households in London, which equates roughly to Harlow recorded the highest price growth in the 2.7 million tenants, according to a new study by country of 74.92%, closely followed by cities like CBRE. Over the next decade the number of Cambridge at 73.03%. At the start of 2020, prices renters is expected to increase by 122%. in Harlow averaged £290,068, up from £165,829

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a decade before. If prices continued to rise at this additional jobs. The Heart of Harrow rate, they would reach £507,387 by 2030. regeneration project is transforming the borough and attracting a younger demographic to the Harlow has experienced faster population area. According to the London Plan, Harrow has growth than most commuter towns. The current a ten-year target to build 1,392 new builds per population of 84,000 is projected to increase by year from 2019 to 2029. 22% between 2014 and 2039. This is higher than the average UK population growth (15%) over Harrow has a growing demand for housing and the same period. This has a knock-on impact this demand is fuelled by a growing economically reflected in the increase of the number of sales active working age population, who mostly transactions and average price paid for new commute into Central London. In fact, a 2020 builds increasing 134% in the last 10 years. study placed Harrow (5.5%) in the top 10 boroughs with the highest yields in London Public Health England are committed to predicated on the availability of excellent value relocating to Harlow and are expected to bring properties with outstanding local amenities. The many new jobs with them to the area (staff borough also features in Homes & Properties’ increase by 2024 amounts to 2,750). The Harlow top 5 list for best London borough to live in Enterprise Zone is expected to bring in 12,500 providing green spaces and wider streets. new jobs to the town making Harlow a thriving town centre. Wembley is listed among one of the four key urban areas with open space, community vibe, The latest research by lettings management cultural scene and quick commutes. It is also platform, Howsy, in August 2020, ranks major listed by The Metro as one of London’s 2020 London commuter hubs with respect to hotspots. investment return potential for landlords and compares them to the London market. Shifting The regeneration area known as the ‘Wembley buyer priorities in the wake of economic, health Opportunity Area’ in the London Plan (Policy and social changes represent new opportunities 2.13) has a minimum allocation of 11,500 new for buy-to-let investors. The average rental yield homes to be delivered and residential output and currently sits at 3.7% across 20 major commuter densities maximised. hubs, lower than the current London average of 4.1%. Harlow was the top ranked commuter hub The Wembley Park development is one of the with a 4.6% rental yield underpinned by excellent largest strategic regeneration projects in the UK, transport, infrastructure and regeneration with a plan to create 7,800 additional homes, credentials. 89% of which will be build-to-rent. The area is set to become one of the most connected parts of the capital with two key rail infrastructure Kenton – The average house price in HA3 has projects, HS2 and Crossrail, set to meet in the increased 5.82% over the last year, according to area. Zoopla. In the last five years, capital appreciation has steadied at 12% based on UK House Price Located in the borough of Brent, the 2020 index data for Harrow. Hamptons International London Borough of Culture, house prices over listed HA3 among the top ten first-time buyer the past five years are up 18.5% - testament to its hotspots in North London. pedigree as a hotspot for first-time buyers (and their pets), according to the Telegraph as well as A £1.75bn investment programme to regenerate the iconic stature of vibrant historic institutions Harrow and Wealdstone town centres is such as Wembley Stadium. underway, which will deliver over 3,000

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End of Report

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