Investment Case Contents -

04 - WELCOME TO 18 - SALES AND RENTAL MARKET 20 - THE DEVELOPMENT 06 - ECONOMY 22 - AREA MAP 08 - INNOVATION HUB 30 - COMPARABLE MAP 10 - EDUCATION HUB 31 - SPECIFICATIONS 12 - STAY CONNECTED 32 - DEVELOPER 14 - REGENERATION 33 - DISCLAIMER 16 - SUPPLY AND DEMAND

02 03 Welcome to Newcastle upon Tyne

Newcastle is the eighth most populous urban area in the INTRODUCTION UK with approximately 1.6 million people living in a 45-minute radius.

As an affordable location attracting both public and private investment, A CITY SET FOR GROWTH | 2030 exciting opportunities are emerging within this growing metropolis. 14,000 new jobs by 2030

Famed for its industrial heritage and lively nightlife, the city has evolved from it's humble beginnings as a Roman 310,000 residents settlement. Newcastle is now a member of the UK Core Cities as well as the Eurocities network of European cities, making it an integral part of the Northern Powerhouse and a significant driver of economic 30,000 new homes growth. Despite market uncertainty, confidence in Newcastle’s economy has not wavered as it continues to provide a major contribution to the productivity and competitiveness of the UK as a whole. over 60,000 students by 2030

04 05 Economic Overview Labour Market - - Following the Global Financial Crisis (GFC), As one of the fastest growing the Tyneside unemployment rate peaked at regional economies in the 10.82% in 2011 and has subsequently been on the downward trajectory reaching a low of UK, Newcastle has more than 5.09% in 2018. 50,000 registered businesses in Due to Covid-19, the unemployment rate the region including Siemens, is expected to rise marginally to 6.77% in Sage PLC, Nestle, Proctor and 2020. However as levels of investment and Gamble, Norton Rose Fulbright, employment opportunities continue to rise, the region anticipates a positive rebound with Virgin Money, HMRC, Barclays, unemployment hitting pre-crisis levels at 5% Ubisoft and Concentrix. by 2026.

In 2018, the Tyneside nominal GDP Disposable Income in equated to €26 billion (GBP23.5 billion*) Relation to Unemployment (OE), an increase of 37% since 2000. Rate Forecasts After a slight decline as a result of the - coronavirus in 2020, the economy is

expected to increase by a further 83% ECONOMY and reach €43.8 billion (GBP39.6 billion*) by 2035. At the same time, average GDP per capita has risen 10% since 2015, reaching over €53,000 (GBP47,900*) in ECONOMY Historical and Projected 2019. Nominal GDP -

Disposable incomes have mimicked investment trends and grown from €13,856 (GBP12,514*) to €17,026 (GBP15,377*) in the past two decades, an increase of 23%. While disposable incomes are expected to drop slightly in 2020, they are forecast to rebound swiftly and rise to €27,749 (GBP25,060*) by 2035 -an incredible increase of 100% since 2000.

*exchange rate figures have been calculated based on data accessed on 05/01/2021 and are subject to change. Sources: Oxford Economics

06 07 Creative and Digital Industry

An Innovation Hub Newcastle is home to one of the fastest growing Tech clusters in the UK. Sage PLC (the Tech industry’s only FTSE 100 company), Ubisoft as well as a new BBC Tech Hub are all located in the city. The strengths lie across video games, e-commerce, software development, data analytics and immersive technologies. The games cluster, in particular, is the 4th largest in the UK. The North of Tyne Initiative, in conjunction The industry is now worth over £2 billion per annum and employs over 40,000 people in with Invest Newcastle, are working to more than 3,000 companies. increase the investment into the region, Furthermore, the JEREMIE2 funding programme will invest £120 million to help support over focusing on the innovative qualities of this 600 businesses and create approximately 2,500 jobs between 2018 and 2023. newly-revived city. A number of different projects have been started with the aim to drive new business into Newcastle and take Corporate Services – FinTech Innovation advantage of it’s strong industry focus on Approximately a quarter of the region’s GVA per annum is generated via this sector alone, IT, Digital and Life Sciences: with over 132,500 people employed at more than 19,000 companies. In 2020 this led to Newcastle being ranked the UK’s top city for businesses adopting technology to gain competitive advantage.

A notable example is law firm Norton Rose Fulbright, which has selected Newcastle as the location for its Legal Process Innovation Hub -the first of its kind outside of London.

A Gigabit City INNOVATION HUB Newcastle is the chosen city for a secure high capacity fibre network, routeing mainland Europe to the USA. CityFibre’s Life Sciences £50 million full-fibre plan will increase connectivity across the The £1.1 billion+ regional life sciences ecosystem employs around 7,000 professionals in city making it one of the most almost 200 companies. connected cities in the UK. Newcastle boasts the region’s first purpose-built commercial laboratory, The Biosphere, and benefits from a particularly well-connected network across academia, research and business. The local NHS Trust provides more nationally accredited specialist services than any other across the UK and has a range of dedicated facilities that support clinical trials The National Centre for Data from bench to bedside, through phases 1 to 4. Based in the Helix project, this national facility is focused on Pfizer has opened its first UK INSPIRE site in partnership with , a Global accelerating innovation through Top 100 University for life sciences and medicine. With the goal of using AI technology to data. search for health innovations, the city’s digital know-how was key in the National Institute for Health Research choosing to place its ‘Innovation Observatory’ in Newcastle.

National Innovation Centre for Ageing (NICA) Energy A newly established innovation centre, located in the Catalyst Newcastle is a major centre for the renewable, offshore and subsea energy industries. It building, that will work across has registered a 60% growth rate across the sector in the past four years alone, as more academia and industry to test businesses capitalise on the city’s strategic location. products for healthy ageing. The city is home to global giants Siemens, TechnipFMC, GE Wellstream, Bridon Bekaert and Shepherd Offshore. The North East’s five universities have the highest proportion of students studying engineering and technology subjects in the UK, which combined with the 28,000 employees currently working in the regional energy sector, provides a large talent pool of workers for companies doing business here.

Sources: Invest Newcastle Report

08 09 Thriving Education Prospects 42,000 41% 20,000 - Newcastle Resident Increase in Student Newcastle International Newcastle operates as an international centre of education. Student Population 2020 Population since 2001 Student Population The city itself is home to two universities, hosting circa 42,000 higher education students between them. Furthermore, within 1 hours drive of the city, there are a total of five world class universities, which bring the regional student numbers to 100,000. 20,000 international students choose to study in Newcastle highlighting the need for Over 36% of students choose to remain in Newcastle upon high quality accommodation across the city. Easily accessible from both Newcastle and completing their degree. Newcastle’s students play an important Northumbria Universities, Arc Avenue is perfectly placed to be an ideal accommodation role in the future economic and job growth in the region, further option for students and post-graduate renters. attracting major firms and drawing inward investment to the city. EDUCATION

Newcastle University is the oldest in the region, it is a member of the prestigious Russell Group and placed in the world’s top 200 universities. Newcastle University also directly supports over 8,800 jobs in the city and contributed an estimated £1.1 billion in Gross Value Added to the UK economy in 2017.

The more recently established is ranked in the top 3 UK ‘Young Universities Rankings 2020' according to the Times Higher Education. Northumbria is an entrepreneurial university, with over 100 companies launched by graduating students between 2009 and 2019. These businesses employ more than 950 staff and generate a combined £62 million in turnover.

10 11 Stay Connected - Although Newcastle is one of the most northerly positioned English cities, the strong infrastructure connections mean the average travel time to the UK’s capital is only 20 minutes longer than that of Leeds (80 miles SW).

Transportation in Newcastle covers a wide range of options, allowing commuters, tourists and students safe and efficient access to everything the city has to offer. Newcastle is one of only four UK cities to have an underground metro system, with 60 stations across the Tyneside area, transporting over 36 million travellers. TRANSPORTATION Newcastle’s coastal location means it is ideally located for residents and visitors to travel by ferry to Amsterdam, Bergen and Stavanger.

Newcastle International Airport connected over 5.3 million passengers from the city to over 85 destinations in 2019, including International hubs TRANSPORTATION such as Dubai and Berlin.

Newcastle Railway Station connects the city to London in an average time of 3 hours and 30 minutes, as well as to Edinburgh in 1 hour and 30 minutes. The city had the busiest railway station in the North East region in 2019, with over 8.9 million passengers. The station is also set to gain an expansion utilising a £4 million local government investment. Average Train Travel Time - The city benefits from excellent road connections with the A1 and A194 motorway providing direct access to Leeds, Edinburgh and London.

12 13 SPITAL TONGUES - Regeneration

Newcastle is set to benefit SHIELDFIELD from the North of Tyne devolution deal, implemented in 2018. The deal will bring OUSEBURN Newcastle, North Tyneside Newcastle Helix Newcastle and Northumberland together Project under one mayor, and draw CHINATOWN in £600 million of investment Giants on the to the region over the next 30 Quayside years. This is forecast to result in £1.1 billion in economic Stephenson Quarter output (GVA) per annum and over 10,000 new jobs.

REGENERATION Brett Wharf The powers devolved to the new Combined Authority will include land acquisition and disposal, and the ability to establish Mayoral Development Corporations to serve North of Tyne’s Arc Avenue housing requirements and regeneration ambitions. Neighbourhood Opportunity Areas in Newcastle have already been identified in the Core Strategy, which have potential to deliver over 20,000 homes.

GATESHEAD Newcastle Helix Project Giants on the Quayside Newcastle Quayside Stephenson Quarter Brett Wharf

One of the largest regeneration schemes in A £100 million development to build major The latest iteration of this A £200 million investment in This £41 million site, located Newcastle. A £350 million scheme that will tourist attractions, including Europe’s largest project was put forward in the city that will create new very close to Arc Avenue, generate an estimated 4,000 jobs and create observation wheel and a 40-foot ‘Geordie 2018 to deliver 1,500 homes, high-grade office spaces, will provide apartments, new workplaces, apartments and public Giant’ statue, is currently under development a hotel and more than as well as retail outlets and restaurants, bars and spaces over a 24-acre site (97,125 sqm). This and set for opening in 2023 – it is anticipated 100,000 sqft of commercial, educational facilities. cafes on the ground level innovative hub was awarded the 2019 EG to2 see visitors in excess of 260,000 per year. community and leisure space 4 overlooking the River Tyne Awards Collaborators accolade. along the quayside. This along with a new riverfront 15-block scheme is expected public realm. to have a phased completion over the next 10 years supporting a minimum of 260 1 construction3 jobs per annum. 5 14 15 While the population has continued to grow, housing supply Supply and Demand has lagged behind demand. In 2012-13 less than 100 dwellings were completed. In 2015-16, net additional dwellings surpassed - the 1,000 mark for the first time on record. This was followed up A booming economy and strong population growth remain by over 2,700 and 2,300 homes delivered in 2016-17 and 2017- the primary drivers of Newcastle’s housing market. 18 respectively – which are record levels for the local authority. Welcome news following a decade of undershooting its target, Job creation since Employment growth however still below the levels of net migration to the city resulting in a continued supply/demand imbalance. Due to the COVID-19 2015 (regional) target (regional) pandemic this is expected to put further strains on supply.

+74,900 +25,000 by 2024

The Tyneside region population is expected to grow to 863,000 by 2030, an increase of 12% from 772,000 in 2010 and a 7.4% increase from 2019. Similarly, Newcastle’s inner-city population is set to rise over 6% to 310,000 people by 2030. DEMAND

The healthy population growth predicted for Newcastle can be attributed to the growing economic and educational SUPPLY opportunities being created in the region. From 2019 to 2030, it is anticipated that 14,000 new jobs will be created in the city. This heightened job growth attracts migration to the city, as well as further increasing the already high retention rate of young graduates. Consequently, the number of 18-year olds in the city is set to rise from 20,500 in 2020 to 24,500 in 2029.

Population estimates - local authority based by five year age band - Newcastle upon Tyne is highly constrained by its green belt, with over a third (35%) of its area currently protected. This has made it difficult for the council to find unconstrained land outside of the city’s urban core to deliver new housing to meet its needs. Annual Change Population

Source: ONS Crown Copyright Reserved [from Nomis on 7 October 2020] Sources: MHCLG Sales Market Rental Market - - Newcastle remains one of the most affordable Rental prices across Newcastle grew by 3.4% from July locations in the UK. With average prices 13% lower 2019-2020, this is the highest reported rate of city price than Manchester, the city is proving very popular growth in the UK. Whilst the North East’s wider regional with renters and purchasers alike. rental price growth wasn’t as strong as Newcastle at 2.7%, the rate of growth is 0.3% higher than the North As investment into the city continues Newcastle’s West region and 1.2% greater than West Midland price residential property prices are rising. Consequently, growth. property prices have experienced 78% growth since 2000, underpinned by continued investment The demand for rental properties in Newcastle continues into the city and an increased demand for housing. to far exceed supply. Currently, the rental demand in the Newcastle property price index only surpassed city sits roughly 110% higher than that of rental supply. their 2007 peak in September 2019 compared to Which ensures the property demand in both the rental other cities such as London and Manchester who Rental Demand Vs and buyers markets will retain a strong growth rate returned to their pre-GFC peak within a few years Supply Per City when compared with more mature competitor markets. of the credit crunch recovery. -

House Prices Per Annum (Newcastle upon Tyne) RENTAL MARKET - SALES MARKET SALES

Housing Affordability Ratios -

Of the 5 Major Investment Cities listed, Newcastle represents the best affordability ratio at just 6.57. REGIONAL CAPITAL 21.7% GROWTH 6.57 7.27 7.34 7.57 15.83 FORECAST 2020-2024 Newcastle Manchester Leeds Birmingham London

Sources: Savills, Centre for Cities 2019, Zoopla Rental Market Report THE DEVELOPMENT

Arc Avenue is a thoughtful refurbishment of a Grade II listed building located on the southern banks of the River Tyne. The development will be comprised of 58 high quality one and two-bedroom apartments with a newly built extension on the eastern end.

Close to the Metro Station, Arc Avenue is ideally placed to Arc Avenue easily access Newcastle making it a popular rental location for young professionals working in the city.

20 Computer generated images are intended for illustrative purposes only 21 AREA MAP Arc Avenue

11 POINTS OF INTEREST

SPITAL TONGUES 1 Hilton Newcastle Gateshead 6 Newcastle Castle 10 min walk / 4 min cycle 11 min walk / 4 min cycle

2 HWKR Food Market 7 Newcastle Train Station 2 13 min walk / 5 min cycle 6 min cycle / 10 min drive 3 Sage Gateshead 8 13 min walk / 4 min cycle 10 min cycle / 7 min drive 1 SHIELDFIELD 4 Gateshead Millennium Bridge 9 Newcastle United Football Club 9 19 min walk / 7 min cycle 7 min cycle / 10 min drive OUSEBURN 5 Quayside 10 Trinity Square Shopping and Dining Shopping Centre 20 min walk / 7 min cycle 13 min walk / 7 min cycle CHINATOWN 5 11 Newcastle International Airport 4 4 16 min drive / 39 min metro 6 7 AREA MAP 2 3 LOCAL AMENITIES 5 3 1 1 The Bridges Nursery School 4 Trinity Square 11 min walk 9 min walk / 3 min cycle 8 5 2 2 Gateshead Metro Station 5 Tesco Extra 1 4 10 1 11 min walk / 3 min cycle 12 min walk / 4 min cycle 6 2 3 3 PureGym Gateshead 6 Doctors Surgery 12 min walk / 5 min cycle 20 min walk / 9 min cycle

River Tyne UNIVERSTIY 6 1 University of Northumbria 2 Newcastle University 9 min cycle / 11 min drive 9 min cycle / 12 min drive

EMPLOYMENT HUBS GATESHEAD 1 Network Rail Offices 4 Deloitte LLP 10 min walk / 5 min cycle 7 min cycle / 11 min drive

2 Union Electric Steel UK Ltd 5 PwC 12 min walk / 6 min cycle 16 min walk / 6 min cycle

3 Northern Design Centre 6 Newcastle Business park 9 min cycle / 11 min drive 15 min cycle / 12 min drive

22 23 THE DEVELOPMENT

24 Computer generated images are intended for illustrative purposes only 25 Crisp, clean and” contemporary living THE DEVELOPMENT

Computer generated images are intended for illustrative purposes only THE DEVELOPMENT

28 Computer generated images are intended for illustrative purposes only 29 Specifications - REGENTS PLAZA Internal finishes • Windows replaced with new UPVC in grey finish Av. 1 Bed - £169,000 (£335 psf) • Veneer finished doors in gloss white with chrome handles Av. 2 Bed - £180,000 (£313 psf) • Skirting and architraves in softwood or MDF

Walls & Ceilings • Finished with plasterboard JESMOND ASSEMBLY • Full height ceramic tiling to shower/bath areas Av. 1 Bed - £300,000 (£487 psf) • White colour paint on ceilings and woodwork Av. 2 Bed - £442,200 (£518 psf) • Natural hessian emulsion paint on walls

Flooring • Carpet tiles within the apartment bedrooms, halls and lounge • Wood effect vinyl plank in kitchen area, bathroom and ensuites HADRIAN'S TOWER Kitchens Av. 2 Bed - £361,500 (£576 psf) • Carron Phoenix single bowl stainless steel sink with chrome mixer tap SPECIFICATIONS • Electric oven (Zanussi or equivalent) FAIRWAY COURT • Ceramic Hob (Zanussi or equivalent) • Indesit 60 cm chimney extractor hood and glass splash back Av. 2 Bed - 165,000 (£225 psf) Av. 3 Bed - £245,000 (£245 psf) • Space for washing machine in cylinder cupboard • Integrated fridge freezer (Zanussi or equivalent) ARC AVENUE

COMPARABLE MAP COMPARABLE • Pressurised cylinder hot water system Av. 1 Bed - £124,000 (£238 psf) • Worktops and up-stands finished in Black Everest Crystal colour Av. 2 Bed - £154,000 (£209 psf) Bathrooms and En-suites • White close-coupled toilet with chrome dual flush • White hand basin set in driftwood vanity unit with chrome tap • White bath with chrome mixer shower, riser rail and single glass shower screen • Tiles to full height in wet areas and half height to rest of bathroom ASHFIELD COURT Electrical and Lighting Av. 2 Bed - £263,735 (£279 psf) • Standard light pendants to all rooms with low energy light fittings and chrome downlights to kitchen areas and bathrooms • Switches, sockets and other electrical outlets in white plastic • Telephone operated main front door entry system • SKY Q Satellite facility at the back of TV point • Heat detectors installed in kitchens and mains • Telephone outlet point pre-wired in living room • Pressurised cylinder hot water system and electric panel heaters for heating

For more information, please speak to one of our consultants.

30 31 Please note: floor plans, prices and images are for information purposes only and are subject to change from time to time. Areas shown are approximate measurements.

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