Gateshead and Newcastle CIL 2016 P04

Gateshead and Newcastle Viability and Deliverability Report (February 2014) Annex Update February 2016

1 P04 Contents

1. Purpose of Annex Update Report

2. Update-National Policy Guidance and Best Practice in Viability

3. Update- Viability Methodology and Assumptions

3.1 Methodology 3.2 Viability Assumptions Review

4. Update -Viability Results

5. Update-Delivery

Appendices

Appendix 1 Residential and Commercial Value Profile Maps (Newcastle City Council and Gateshead Council PDCS (2015) ), Minor Green Belt Changes and Viability Data

Appendix 2 Notes of CIL Consultation Events (2012-13)

Appendix 3 Building Cost Information Service Data Extracts

Appendix 4 House Values, House Sales Survey

Appendix 5 Known Land and Property Transactions Data

Appendix 6 Commercial Sales Data

Appendix 7 Publically Available Evidence (Residential and Commercial)

Appendix 8 Residential and Non Residential Appraisals

Appendix 9 DTZ Market Assessment Letter

Appendix 10 Property Week Article (18 September 2015)

Appendix 11 Post Draft Charging Schedule Submission Notes

Updates since DCS version (October 2015) include:

• Additional Appendix 11 • Updated narrative on residential (environmental) costs at section 3.2 D) • Additional data for Gateshead Central Area and Newcastle Central Area • Appendix 8 Small Retail Appraisal for Newcastle City Centre • Formatting

2 P04 Report Authors

This report has been prepared by the Property Services Sections of Newcastle City Council and Gateshead Council. The lead author is Paul Scaplehorn BSc(Hons) MRICS, Head of Strategic Property at Newcastle City Council.

The main author has 17 years post-qualification experience in commercial and residential development in both central London and Newcastle upon Tyne. This has included the preparation of detailed development appraisals and acting on the behalf of Local Planning Authorities in the negotiation of viability appraisals connected with s.106 agreements.

The Councils have consulted the leading international property consultancy DTZ with regard to market evidence set out in this report and with regards to certain high level appraisal variables.

1. Purpose of Annex Update Report

1.1 This Annex Update report is a key document prepared as appropriate evidence to support the progress of the community infrastructure levies in Gateshead and Newcastle.

1.2 The Gateshead and Newcastle Core Strategy and Urban Core Plan (the Plan) is the strategy for growth to 2030 for Gateshead and Newcastle and was adopted in March 2015. This Annex Update report has been prepared to supplement and update Viability and Deliverability Report (February 2014) (V&D Report) which formed a part of the evidence library for the Plan examination. The V&D Report set out the Councils’ approach and evidence on viability and delivery matters to support the Plan and its examination. The main V&D Report also elaborated on the viability methodology approach taken in the Newcastle Gateshead Viability Assessment (VA 1) (May 2012), published alongside the CIL PDCSs (2012)- it considered matters raised as part of early stakeholder engagement, reviewed the results of site testing and policy cost implications, and concluded with evidence of our ability to deliver our proposals and policies.

See the evidence library for the chronology of documents prepared for consultation.

1.3 This Annex Update therefore builds on and refers back to these 2 key viability reports (V&D Report and VA 1) as part of a continuum of public engagement and iteration of viability assessment. Where changes in viability guidance and best practice have occurred this forms part of this update. Following the examination of the Plan and subsequent PDCS consultation (2015) updates to stakeholder engagement, the methodology and approach, and of course updates to costs/values and viability assumptions are all considered in this Annex Update. Section 4.0 reviews the latest viability results.

3 P04 2. Update-National Policy Guidance and Best Practice in Viability

The national policy and legislative context for viability assessment is set out in section 2.0 of the main V&D report. At the time of writing the national planning practice guidance tool was published for consultation and was later finalised in March 2014.

2.1 National Planning Practice Guidance (PPG) was launched on 6 March 2014 to assist practitioners and provides guidance on the National Planning Policy Framework (March 2012). DCLG guidance on the community infrastructure levy is now also included with the PPG, along with general guidance on viability and specific guidance in relation to plan making and decision taking. Key principles of viability testing in plan making include:

• An understanding of evidence based judgement, collaboration and a consistent approach with plan making • Evidence in plan making should be proportionate, underpinned by a broad understanding of viability with greater detail where necessary where viability may be an issue • Assessing the viability of plans does not require individual testing of every site or assurance that individual sites are viable; site typologies may be used to determine viability at policy level • Plan makers should consider a range of costs on development, plan for a viability buffer and use current costs and values • Consideration should be given to policies and setting the CIL to promote the viability of brownfield sites • Viability assessments should be proportionate, but reflect the range of different development, both residential and commercial, likely to come forward in an area • Gross development value should be based on comparable, market information • A broad assessment of costs is required based on evidence of local market conditions, taking into account: inc. build costs (Building Cost Information Service); known abnormals; infrastructure costs; emerging policy and CIL cumulative costs. • Land value should reflect emerging policy requirements, provide a competitive return to willing developers and land owners and be informed by comparable, market based evidence wherever possible. Where transacted bids are significantly above the market norm, they should not be used as part of this exercise.

See PPG on line tool at http://planningguidance.planningportal.gov.uk/Paragraph: 001-009 Reference ID: 25-001-20140612; Paragraph: 001-015 Reference ID: 10-001- 20140306

Two further research reports have also been published that will be referred to in section 3.0 of this Annex Update. They are:

2.2 DCLG Land Value Estimates for Policy Appraisal (February 2015).

All land valuations were provided by the Valuation Office Agency using a consistent methodology and all figures are as of 1 January 2014. For residential valuation it assumed that each site is 1 hectare in area, of regular shape, with services provided up to the boundary, without contamination or abnormal development costs, not in an

4 P04 underground mining area, with road frontage, without risk of flooding, with planning permission granted. The site will have a net developable area equal to 80% of the gross area for a development of 35 two storey, 2/3/4 bed dwellings with a total floor area of 3,150 square metres. The values listed by national averages and by local authority include the following.

National averages include: Average industrial land value estimates, £482,000 per hectare Average agricultural land value estimates, £21,000 per hectare

Local Authority averages, include: Neighbouring authorities Durham £1,053,000 Northumberland £1,725,000 North Tyneside £1,282,000 South Tyneside £651,000

Other areas in the North East Stockton-on-Tees £1,162,000 Sunderland £1,315,000

Newcastle-upon-Tyne £1,188,000 Gateshead £404,000

The differences between 2014 Gateshead and Newcastle valuation averages can be largely explained by wide variations within the authority areas. It is also worth noting that the recent review of house prices indicate residential values still apply across the respective residential value bands. CIL requires an area based approach involving a broad test of viability across the area. Whilst DCLG land value estimates are a useful indicator it will not be applicable across all parts of the two local authorities.

2.3 RICS Research Paper, Financial Viability Appraisal in Planning Decisions: Theory and Practice (April 2015)

The aim of the research paper was to formulate consistent approaches to land valuation within site specific development viability appraisal based on a critical evaluation of the theory and practice of appraisal. The paper draws from research on case studies where disputes have prevailed on viability issues concerning the level of planning obligations.

The paper examined various approaches to determining land value and supports the view that the use of historic purchase price is flawed as it attempts to transfer one of the primary risks of development, the changes in market state and its impact on costs and values within the development, to the community. The risk-adjusted rate of return already rewards developers for taking these risks.

5 P04 2.4 2015 Summer Budget Statement

On 8 July 2015 the Government Budget pledged the following of relevance to the progress of CIL rate setting:

• Proposals for planning for starter homes - note the detail of the proposals has yet to be published; • Thresholds for seeking planning obligations have been rescinded from NPPG; • Changes to national environmental standards for housing have been clarified ( see build cost assumptions in section 3); • Affordable rents assumed for registered providers have been adjusted.

At the time of writing, at the Tory Party Conference 2015, proposals were emerging on how planning delivers affordable housing in the future. The exact nature of proposals have yet to be clarified however, it may well be that in the future affordable housing will be delivered primarily through discounted purchase rather than social rent as assumed the development appraisals. If this is the case this will have a generally positive impact on available headroom from which CIL rates would be justified.

3. Update- Viability Methodology and Assumptions

3.1 Methodology

3.1.1 There has been a consistency of approach to the methodology adopted for viability testing for both the joint Plan and the Community Infrastructure Levy preliminary draft charging schedules for both authorities. Section 3 of the main V&D report defines the terminology in relation to residual valuation and threshold value. It also goes on to review the guidance and manuals available and how they have contributed to the methodology adopted.

3.1.2 Subsequent to this, in refreshing the assessments for the progress of CIL, taking into account new research and best practice, and also in response to on-going engagement with stakeholders, the methodology has been confirmed.

3.1.3. As indicated in paragraph 4.25 of the V&D Report two stakeholders have sought adjustments to the residential threshold values used by the Councils in the PDCSs (2012). In updating and subsequently consulting on the PDCSs (2015) the Councils undertook a review of the approach and available evidence.

3.1.4 The Councils methodology adopted was one of adjusted market value having regard to the RICS “Financial Viability in Planning” (2012) and available evidence in the VOA Property Market report 2011. A synopsis of this approach is contained in VA1 (pages 18-20) and the V&D report (pages 7-19). For the proposed green belt release sites in the Plan, the percentage adjustment from the residential profile areas (zones) were adjusted up from 30% to %40% in response to early stakeholder representations in 2012. In the High Mid area this adjustment increased from £564,000 to £600,000 per hectare.

3.1.5 A further more detailed review in 2015, reiterates the approach taken whilst considering the most up to date PPG advice and data. The review considered the following matters:

6 P04

1) Policy and CIL Costs Well established principles in valuation take account of the impact of planning policy and CIL costs. Affordable housing has been a requirement in the Unitary Development Plan (UDP)s of both authorities since late the 1990s and CIL was legislated in 2010. NPPF at paragraph 173 helpfully indicates the cost requirements are to be assessed on viability and deliverability matters when taking account of the ‘normal’ costs of development and mitigation. It is therefore, understood that abnormal costs can be considered as a land cost.

Paragraph 3.19 of the V&D report refers to the Harman guidance which re-iterates the threshold land value,

“should represent the value at which a typical willing landowner is likely to release land for development before payment of taxes (such as capital gains tax). This would necessarily include any additional requirement such as Community Infrastructure Levy.”

As referenced at 3.20-3.21 of the V&D report, the examiner at the Greater Norwich CIL examination (2012) also considered the relationship between CIL costs and threshold values and considered it reasonable to see a 25% reduction in benchmark value as the maximum that should be used in calculating a threshold value.

2) Comparable Market Evidence. As indicated in 2.2 above, recent DCLG evidence updates (collated by VOA as of 1 January 2014) have been published on average transactions in each local authority for policy appraisal purposes. In Newcastle City the residential transaction average (without affordable housing) is slightly less than the 2011 Property Market Report (residential £1.28m/ha.). For Gateshead the recent report is new evidence. NPPG as summarised above (2.1) indicates land value should reflect emerging policy requirements, provide a competitive return to willing developers and land owners and be informed by comparable, market based evidence wherever possible. Where transacted bids are significantly above the market norm, they should not be used as part of this exercise (NPPG Para. 024 Ref ID:10-024-20140306) .

Thus the authorities have re-examined public and known market evidence in the 2 local authority areas, within the North East and across the country. In Appendix 5 of this Annex Update are tables of data collated of non urban transactions primarily for residential use to inform this review. It is notable that the local transaction data averages at £110,705/hectare for outlying areas within the High Mid and Mid green belt /green belt release areas in Newcastle and £141,814/hectare in Gateshead, primarily for residential purposes.

3) Existing Use Value Plus The Harman guidance states “We recommend that the Threshold Land Value is based on a premium over current use values and credible alternative use values (noting the exceptions below).

Alternative use values are most likely to be relevant in cases where the Local Plan is reliant on sites coming forward in areas (such as town and city centres) where there is competition for land among a range of alternative uses. This approach is already used by

7 P04 many councils, allows realistic scope to provide for policy requirements and is capable of adjusting to local circumstances by altering the percentage of premium used in the model.”

For the green belt release sites(known as Strategic Land Release Sites and Plan allocation sites) it is clear that the existing use value is for agricultural use or an alternative use that would be compliant with the green belt designation in place at the land release planning stage of the Plan. The councils have suggested a rate of £15,000/hectare. The DCLG (2.2) report updates this to £21,000/ hectare. The Council’s recognise that there would need to be a significant uplift to incentivise an owner to sell. The existing use plus methodology is now well established in practice of many local planning authorities.

3.1.6 This review is concluded in section 3.2.2 residential assumptions below. In summary the High Mid non urban threshold value figure has been reached by researching publically available comparable market data (see Appendix 5 NCC Table 5.1, entry no.5 (HMLR transaction at Kingston Park/Kenton Bank Foot)).Harman (page 30/31) indicates that councils should make use of “information on typical minimum price provisions used within developer site promoter agreements for sites of this nature”. We have not been provided with any copies of agreements of this nature from developers and other parties and therefore we have also had to have regard to:other relevant local authority data , including slocal plan and CIL based viability appraisals from nearby local authorities; and comparable evidence held by the Councils where we have it.

3.1.7 The Councils initially complied with the RICS approach to setting benchmark values and looked at adopting 40% of the previous VOA Property Market Report (2011) average figure of £ 1.28m /hectare for serviced residential land in Newcastle upon Tyne, for the threshold value for the green belt release sites (High Mid Non Urban). The updated average serviced residential land figure for Newcastle upon Tyne is £1.188m/hectare and the corresponding updated figure for Gateshead is £0.404m/hectare (including assumed affordable housing costs). Clearly there are corresponding value areas across and within the two authorities and the discrepancies between the VOA data, which we anticipate to be as a result of sample size and location, must mean that an element of caution should be exercised when using these figures. However, 40% of these figures would equate to a range of £100,000/ha - £475,200/ha. The Council’s used a figure of £1,000,000 for mid zone urban sites and then adjusted those upwards or downwards in comparison to that mid-point with the non-urban sites being pinned at 40% of the urban value.

3.1.8 The figure we have settled at following the further analysis of local evidence and knowledge, for this Viability Assessment stage 3 (VA3) work is £480,000/ha which equates to 40% of the ‘Newcastle figure’ and 118% of the ‘Gateshead figure’. As a useful cross check, one of the Councils has also just finalised negotiations on an urban site in the mid-value area. This site of over 10 acres equates to a value of £700,000/ha after abnormal costs (less than the £1.000m threshold value assumed for the urban mid area). In response to stakeholder engagement additional information on transactions on non urban sites has been provided (See Tables 5.1 and 5.2, Appendix 5). A review of that information indicates there are only 2 entries above a value of £300,000/ ha. and these relate to a sale for a commercial use and a farm house. In Gateshead just 1 entry is above £300,000/ ha at Highfield, which in part is now allocated as a housing development site in the Plan.

8 P04 3.1.9 Using the existing use value plus principle, the proposed High Mid threshold value would amount to 23 times the existing use value at £21,000 agricultural value or over 2000% uplift. This is considered to be a significant viability ‘buffer’ and follows the Harman guidance on methodology and overall approach.

3.1.10 We have also had regard to published viability assessment reports on CIL viability in the NE for Durham County Council and Stockton on Tees Borough Council.

3.2 Update -Viability Assessment: Assumptions Review

3.2.1 The following section provides an update on any amended assumptions used in the Viability Appraisal Version 3 which forms part of the consultation document for the implementation of the Community Infrastructure Levy.

In addition to the appraisals of generic development schemes a number of scheme specific appraisals have been carried out for the allocation sites. Whilst residential mixes will vary on these schemes, the main assumptions are constant throughout the residential appraisals and are consistent with the evidence used to support the progress of the ‘Planning for the Future’: Core Strategy and Urban Core Plan for Gateshead and Newcastle upon Tyne 2010-2030, referred to hereon in as the ‘Plan’. All costs and values have been updated to quarter 4 2014.

For ease of reference the tables below indicate the chronology of changes and updates to the joint published viability assumptions underpinning the Plan and CIL methodology since 2012, the stages are as follows:

• Viability Assessment Stage 1 Report (May 2012) is referred to as VA1 and was prepared to accompany the Councils’ PDCS (2012), early consultation stage • Viability Assumptions Review (2013) which is referred to as VA2 and was included in Appendix 4 of the Gateshead and Newcastle Plan evidence ‘Viability and Deliverability Report (February 2014)’ • This current Viability Assessment Stage 3 is referred to as VA3 and supports the progress of the Gateshead and Newcastle CIL draft charging schedules (PDCS 2015 & DCS 2015).

For ease of read across the data between subsequent iterations of consultation documents, the Figure reference numbers used in the initial VA1 stage have been referenced below each current VA3 table for consistency wherever possible. The current assumption data used in the appraisals are highlighted in bold.

3.2.2 Residential Assumptions-

Development appraisals have been carried out on a variety of different site types for both residential and commercial schemes at quarter 4 of 2014. Generic scheme types were developed following a review of information provided by the Councils to determine development scheme types likely to come forward across the Plan period. The assumptions are considered appropriate for CIL viability testing and draw on published information. For residential scenarios the assumptions are generally consistent with annual monitoring reports and the Strategic Housing Land Availability Assessment (SHLAA) data evidence that underpinned the Core Strategy and Urban Core Plan. Thus the generic schemes and the development assumptions have largely

9 P04 remained the same and are considered consistent with the Core Strategy and Urban Core Plan.

As with most assumptions there will be a variety of unit sizes and no single size or range of sizes will represent all dwellings coming forward. Since there is a correlation between values and build costs, it is the quantity of those that are most important for the purposes of this study, rather than the specific dwelling sizes. The generic schemes for CIL are indicated below in Table A). They are based on earlier published schemes and engagement with stakeholders.

Initial residential scheme types, set out in figures 3&4 in VA1 (pages 7/8), were the subject of representations during PDCS (2012) and the residential schemes were then amended at VA2. No comments were received on these amendments during the Plan consultation, however, one stakeholder suggested that the 2 bedroom market is currently limited for open market housing. As with most assumptions there will be a variety of unit sizes and no single size or range of sizes will represent all dwellings coming forward. Since there is a correlation between values and build costs, it is the quantity of those that are most important for the purposes of this study, rather than the specific dwelling sizes.

It is considered that realistic residential mix assumptions have been made across the local authority areas as a whole that would withstand market product adjustments in residential mix over time. However, it is the total floorspace area that is important for deriving value and cost of a scheme and thus the residential mix is somewhat immaterial for the purpose of CIL.

A.1) Generic Residential Scheme: Residential Mix

SCHEME TYPE PROFILE AREA 1 2 3 2 3 4 UNITS OVERALL UNIT NUMBERS HIG A 1 1 HIGH MID 1 1 MID 1 1 LOW MID 1 1 LO 1 1 HIG B 15 6 9 HIGH MID 15 9 6 MID 15 4 7 4 LOW MID 15 6 9 LO 15 6 9 HIG C 50 10 15 25 HIGH MID 50 10 20 20 MID 50 14 24 12 LOW MID 50 20 24 6 LO 50 20 27 3 HIGH - FLATS (CC) D 100 30 60 10 HIGH - HOUSES 100 20 40 40 HIGH - HOUSES (CC) 100 20 40 40 HIGH MID 100 20 40 40 MID 100 25 45 30 LOW MID 100 30 55 15 LO 100 30 55 15

10 P04 Note: B- Bedroom(s); F – Flat; H-House VA 1 Ref (Figure 3 ) Proportion No. of Bedrooms/ Scheme Mix NO AMENDMENTS Since VA2

A.2) Sheltered Housing: Residential Mix

PROFILE AREA Scheme 1 2 Size Bed Bed All 40 28 12

Table A.2) above clarifies the residential mix of the typical sheltered housing scheme tested. The assumptions have been derived from information provided by a provider during previous representations, and the Councils consider the scheme typology to be typical of the sheltered housing developments expected to come forward. Reference to the term ‘Assisted Living’ is based on terminology used by the provider representor for sheltered housing.

As with most assumptions there will be a variety of unit sizes and no single size or range of sizes will represent all dwellings coming forward. Since there is a correlation between values and build costs, it is the quantity of those that are most important for the purposes of this study, rather than the specific dwelling sizes.

The Councils have adopted a consistent methodology that uses net site area. The net site areas assumed for the purposes of this study at VA 1 (fig. 4) were also amended following engagement and representations in 2012. They were amended at VA2 and no further changes have been made, except for an additional entry regarding sheltered housing scheme and are as follows:

B.1) Generic Residential and Assisted Living Scheme: Net Site Area

NET SITE AREAS Newcastle LOW LOW- MID MID HIGH- MID HIGH Central Area Update Note 1 UNIT SCHEME 0.03 0.03 0.04 0.04 0.04 No Change 15 UNIT SCHEME 0.30 0.30 0.33 0.33 0.33 No Change 50 UNIT SCHEME 1.20 1.20 1.25 1.25 1.25 No Change 100 UNIT SCHEME 2.50 2.50 3.0 0 3.00 3.00 3.00 No Change Additional Residential Use Assisted Living 0.40 0.40 0.40 0.40 0.40 0.40 Type 100 UNIT FLATTED SCHEME 0.25 No Change

Note : VA1 Reference- Figure 4 - Net Site Areas – VA3 AMENDMENTS SET OUT ABOVE

In respect of sheltered housing schemes, following a review of evidence, a net to gross ratio of 70% has been adopted.

B.2) Strategic Land Release Sites: Net Site Area

Additionally site specific assessments and appraisals have been carried out for the green belt strategic land release (SLR) sites designated as Neighbourhood and

11 P04 Village Growth Areas. In addition the brownfield regeneration at Newburn Area of Change has been appraised.

At VA2 the Newcastle SLR sites were assessed for development capacity within Framework documents (see the secondary evidence library) and the assumed 65% net: gross site area ratio proposed in VA 1 was confirmed as feasible. No further changes have been made to this assumption.

Site Name Net: Gross Site Area in Net: Gross % Hectares (ha.) Dunston Hill 22.2/17.75 79 Crawcrook North 7.16/5.80 81 Crawcrook South 7.99/6.55 82 Highfield 3.18/2.45 77 High Spen West 1.65/1.452 88 High Spen East 6.3/4.41 70 Kibblesworth 13.25/8.5 64 Ryton 32.4/17.17 53 Sunniside NE 2.05/1.558 76 Sunniside SE 3.84/2.73 71 Middle Chopwell 3.79/2.88 76 South Chopwell 7.74/7.198 93 Gateshead SLR sites have been amended since VA2 as indicated in Table B.2 above.

B.3) Generic Residential and Assisted Living Scheme: Affordable Housing Mix for Schemes AFFORDABLE HOUSING MIX UNITS 1 BF 2 BF 3 BF 2 BH 3 BH 4 BH HIGH B 15 2 HIGH MID 2 MID 1 1 LOW MID 1 1 LOW 1 1 HIGH C 50 4 3 HIGH MID 4 3 MID 4 3 LOW MID 4 3 LOW 4 3 HIGH - FLATS (CC) D 100 10 5 HIGH - HOUSES 8 7 HIGH MID 0 8 7 MID 8 7 LOW MID 10 5 LOW 10 5 Assisted Living UNITS 1 Bed 2 Bed ALL 40 4 2 Note : Note: B- Bedroom(s); F – Flat; H-House 12 P04 VA1 Reference- Figure 4 NO AMENDMENTS since VA2

The above table at B.3 (previously VA1 Fig.4) above indicates the typical affordable housing mix for the generic schemes were above the policy threshold of 15% at 15 units or above. The requirement for affordable housing is set in Plan Policy CS11(5). The affordable housing mix assumptions are based on evidence and requirements in the Plan. At the time of writing this Annex update, however, new proposals were emerging from Prime Minister’s speech at the Conservative Party Conference (October 2015). The details of the proposed national changes to affordable tenure are yet to be clearly understood.

B.4) Generic Residential and Assisted Living Scheme: Residential Unit Sizes (Gross Internal Area)

UNIT TYPE VA2 VA3 1 bed flat 45m2 No change 2 bed flat 60m2 No change 3 bed flat 75m2 No change 2 bed house 70m2 No change 3 bed house 84m2 No change 4 bed house 120m2 121m2 ASSISTED LIVING 1 Bed 55m2 No change 2 Bed 75m2 No change Note: VA 1 Reference Figure 5 - Residential Unit Sizes Gross Internal Area

There have been no significant adjustments to the above generic residential unit sizes. One housebuilder indicated that some of the housing products they offered varied from the above, however, it is recognised that the standardised sizes used above are necessary for generic viability testing.

C) Residential Values

The Councils have prepared a map of the study area which divides the area into 5 value bands. This is to take into account the significant variation in residential values across the authority area. During consultations in 2012- 2014 there has been a broad acceptance of these boundaries and no significant changes have been made except for the areas highlighted in section 4.6 Baltic Quays.

Newcastle Central Area (formerly known as Newcastle City Centre) boundary was identified as a commercial area as part of the Core Strategy and Urban Core Plan viability evidence, to more accurately reflect the specific build costs and contingency in this locality. The same boundary has been adopted for the residential viability testing. The variation in value profile areas within the Newcastle Central Area boundary map is indicated on the Map in section 1.1 of Appendix 1 and as the area is predominantly a High value area it has been treated as such in the appraisals.

For the residential scheme types modelled in this study a range of value levels have been used for each scenario. This is in order to test the sensitivity of the requirement for development to pay the CIL across geographical variations. We have carried out

13 P04 our own desktop and on the ground research on residential values across the authorities and have utilised existing information for example contained within Newcastle and Gateshead’s SHLAAs and SHMAs, Land Registry data and VOA data. We have also been provided with high level sales data from volume housebuilders active in the Newcastle and Gateshead area. Where applicable the data sources behind our assumptions (including values, costs, land values, site coverage etc) are detailed both in the body of this report and in the appendices. A summary of the values used for each unit type at varying value levels is shown in C) below.

We have modelled 5 value ranges: High, High-Mid, Mid, Low-Mid and Low. These are shown as £ per sq m rates and also expressed as equivalent property values based on the dwelling types and sizes assumed within this study. These value profile maps are in Appendix 1 of this Annex. When combined with the green belt boundaries they determine the corresponding appraisal for the area (See Background Paper (P01) Appendix 1 also for minor changes to the green belt that were made on adoption to the Plan in march 2015).

The indicative values levels can be applied to varying dwelling sizes. The sizes indicated are gross internal areas (GIAs). They are reasonably representative of the size and types of units coming forward for smaller and average family accommodation, within the scheme types likely to be seen most frequently providing on-site integrated affordable housing. We acknowledge that these 3 and 4-bed house sizes, in particular, may be small compared with some coming forward, but our research suggests that the values for larger house types would also often exceed those we have used and would, therefore, be similar on a “£ per sq m” basis. All will vary, and from scheme to scheme. It is always necessary to consider the size of new build accommodation while looking at its price – hence the range of prices expressed per square metre is the key measure used in considering the research, working up the range of values and reviewing the results.

Further investigations have been carried out to re-base values to September 2014, and in recognition of up to date Land Registry data 4Q 2014 the updates for VA3 are shown in the table below with the former VA2 data in shaded boxes below VA3 data. In Appendix 4 is a copy of the Land Registry price paid data for both authority areas and a local house sales survey containing new build data that helped inform the amendments.

14 P04 C) Residential and Assisted Living Values (at Quarter 4 , 2014) HIGH HIGH-MID MID LOW-MID LOW Zone 1 Zone 2 Zone 3 Zone 4 Zone 5 AVERAGE RATE £/m2 2,700 2,250 1,875 1,650 1,450 Stage 2 2,500 2,100 1,800 1,425 1,200 Size (m2) Sales Values (£/unit) 1 bed flat (VA3) 45 121,500 101,250 84,375 74,250 65,250 VA2 45 112,500 94,500 81,000 64,125 54,000 2 bed flat (VA3) 60 162,000 135,000 112,500 99,000 87,000 VA2 60 150,000 126,000 108,000 85,500 72,000 3 bed flat (VA3) 75 202,500 168,750 140,625 123,750 108,750 VA2 75 187,500 157,500 135,000 106,875 90,000 2 bed house (VA3) 70 189,000 157,500 131,250 115,500 101,500 VA2 70 175,000 147,000 126,000 99,750 84,000 3 bed house (VA3) 84 226,800 189,000 157,500 138,600 121,800 VA2 84 210,000 176,400 151,200 119,700 100,800 4 bed house (VA3) 121 326,700 272,250 226,875 199,650 175,450 VA2 121 302,500 254,100 217,800 172,425 145,200 ASSISTED LIVING

£/m2 3,510 2,925 2,438 2,145 1,885 1 bed unit (VA3) 55 193,050 160,875 134,090 117,975 103,675 2 bed unit (VA3) 75 263,250 219,375 182,850 160,875 141,375 Note: VA1 Reference Figure 7. Values have been updated to 4Q2014.

In addition to the market housing we have assumed a requirement for affordable housing where applicable. For the VA1 study we assumed that the revenue from a Registered Provider for social rented or affordable rented products generates an amount equivalent to 70% of market value. In response to developer engagement this has been adjusted to a middle ground’ revenue of 55% of market value (for the 75% rented units) with a revenue of 70% of market value (for the 25% intermediate tenure units) would generate a blended affordable housing revenue of 58.75% of market value. The figure of 58.75% of market value has been adopted in both VA2 and VA3 and provides a more accurate representation of achievable affordable housing revenues in line with emerging Core Strategy policy requirements. This was clarified in the response to representation received to the 2012 PDCs CIL consultation (point 5., page 62, V&D report)

In respect of Assisted Living schemes, we have following a review of evidence, added a premium to sales prices of 30%. Further recent analysis (December 2015) in the local area and Yorkshire would indicate in excess of 30% premium when compared to similar sized actual properties sold and properties for sale in the market area.

In response to concern raised by a housebuilder during engagement with regard to assessing costs and values on the same basis, analysis has been undertaken to identify the sales values for new build properties by different categories in Appendix 4 ( 4.3).See also Appendix 4 V&D Report and reference to assertion that Council costs are inaccurate and assertion that the Council’s values do not take into account the differences between Net Saleable Area and Gross Internal Area. An assumption has

15 P04 been made that the cost and value of garages balances out. We have been informed by the housebuilder that BCIS house cost categories do not include the costs of detached garages but include the costs of integral garages. The sales survey analysis at Appendix 4 did not include costs of detached categories as they were not part of the product being marketed at the time of the survey.

Comments received during the consultation on PDCS2 (April-June 2015) questioned the value profile area and thus the CIL charging zoning for the Callerton and Kibblesworth SLR housing sites (high-mid) on the basis of their proximity to existing built development located in the mid value zone. On consideration of this issue and in regard to Kibblesworth the value profile area is considered to be correct – experience from other sites in Gateshead shows that new development of an appropriate scale and in the right location, can attract higher values than existing adjacent housing areas. Evidence has been assembled on the Northside housing site in Birtley (formerly greenfield) which reflects this juxtaposition of areas within different value zones. This is also true of the Kibblesworth site which will create and hold its own value/market.

Land Registry Price Paid Data 2007 onwards NORTHSIDE Transaction Overall AREA (High) No. Det. Terr. Semi Flat average DH3 1RX 15 235,763 235,763 265,538 163,738 DH3 1RU 16 (12) (4) 240,087 244,462 209,000 243,500 DH3 1RS 16 (13) (2) (1) 239,968 389,568 115,000 DH3 1RD 15 (14) (1) 370,996 271,704 ADJACENT AREAS DH3 1BH 93500 100, 000 (Mid-Low) 4 (3) (1) 95,125 DH3 1BE 118, 500 89,000 88,000 (Mid-Low) 8 (1) (2) (5) 82,277 DH3 1NA 97,983 86,000 (Mid-Low) 4 (3) (1) 94,987 DH3 1NT 79,167 (Mid-Low) 3 (3) 79,167 DH3 1RW (Mid) 7 114,207 114,207 DH3 1RP (Mid) 2 194,475 194,475 110,040 Difference 161,664 % 60% Difference

Callerton

The 3 Callerton sites (Upper, Middle & Lower) have been placed in the High Mid value profile area and thus fall within Charging Zone. Recent property transactions in the areas abutting Lower and Middle Callerton give clear evidence of values being in the High-Mid to High value band and this includes a large proportion of dated second hand stock. The south eastern part of the Upper Callerton site abuts Newbiggin Hall

16 P04 Estate which historically has values which sit within the low–mid range values. However, there are some properties on the edge of this estate adjacent to the green belt which align and exceed high-mid values ie. Pecks House Farm Cottages. Although they adjoin the existing estate where values remain low, the properties have their own access with views over the green belt and have somehow set their own tone. This cannot be disregarded in the same way that the newer estates of St. Johns and Abbey Grange abutting the Middle and Lower Callerton sites have achieved High Mid to High values. Similarly there have been other examples of converted farm buildings within the green belt in close proximity to Middle and Upper Callerton (on Whorlton Lane) which sit within the High-Mid and High value areas. Interestingly as you travel west along the B6324 Stamfordham Road and A696 towards Ponteland, values rise with values in High Callerton on the edge of Darras Hall well in excess of £300,000 for a 4 bed property. It needs to be acknowledged that the Upper Callerton site has capacity for over 1000 units with a bespoke access and contemporary housing design can be planned in such a way that it comfortably generates an average of a high-mid value. Experience from other sites in the local authority areas show that new development of an appropriate scale and in the right location, can attract higher values than existing adjacent housing areas – this is true of the Callerton sites which will create and hold their own value/market.

D) Development Costs: General Residential

Development costs vary significantly from one site to another. In a strategic study such as this, the assumptions have to be fixed to enable the comparison of results and outcomes relating to the strategic view of viability rather than site specific cases. Each development cost assumption is based on data sourced from information such as the RICS Building Cost Information Service (BCIS), development consultation, professional experience or other research. For this overview we have made an allowance for abnormal costs across the tested sites (see reference to Gedling CIL examination report on abnormals costings under Fig. 12 below). This allowance has been set at 5% on costs as a cautionary approach to viability, but site specific abnormals cannot be accounted for in a study of this nature.

Newcastle and Gateshead in the preparation of this report have had account of the need to balance viability with the level of CIL and this approach is considered appropriate. In Newcastle Central Area sites development costs at this level have been further increased to make an allowance for the particular difficulties of developing in a dense urban environment and to reflect the prevalence of listed buildings.

17 P04 D.1) Development Costs – Residential Build Costs

BUILD COSTS (01.9.14) VA 2 VA 3 BCIS build BCIS build Cost (£/sq m) Use Class- Cost (£/sq m) Profile Area BCIS Quartile (+ 5%)+ Property Type High Median 1,068 1,224 High Mid 1,025 1,178 C3 Houses-(One Mid 983 1,133 off) Low Mid 940 1,087 Low Lower Qtle. 897 1,041 High Median 747 864 C3 Houses High Mid 720 839 Mixed Mid 694 814 Developments Low Mid 667 789 Low Lower Qtle. 640 764 C3 Flats Newcastle Central Area Median 1,101 1,255 6+ storeys High Median 848 989 C3 Flats -3-5 High Mid 819 956 Storeys(Non Mid 789 923 Newcastle Central Area) Low Mid 760 890 Low Lower Qtle. 730 857 Assisted Living All 984 Assisted Living 984 Note: Figure 10 .1 - Development Costs – Build Costs – Residential + See changes to national environmental cost assumptions between VA2 and VA3 as set out in paragraph below.

The build costs figures have been updated since the preparation of evidence to support the Plan examination, and re-based to BCIS as 1 September 2014 (Quarter 4 2014). Gross to net floorspace ratios have not been amended. Where the costs have been tapered across the value profile areas this been undertaken on an equal basis between the median and lower quartile BCIS data points. The BCIS data is based on regionally adjusted source information for Housing Mixed Developments and Flats (3- 5 storey and 6+ storey) categories.

The Plan evidence in the main V&D Report (VA2 stage) incorporated an assumed allowance for additional build and sustainable construction cost on testing of appraisals (2012)- see page 105-106 and paragraph 4.41 page 30). Since then a Ministerial Statement on Building Regulations and DCLG Impact Assessment (August 2013) was published with the effect of rationalising and reducing future environmental build cost for housebuilding. The Plan Inspector considered objections to Policy CS16 and concerns that the policy placed additional costs on development and found the Councils’ approach and policy sound as modified (MM20) to ensure compliance with Government requirements (See paragraphs 96-98, Report on the Examination into ‘Planning for the Future’: Core Strategy and Urban Core Plan for Gateshead and Newcastle upon Tyne 2010-2030)

18 P04 In the current VA3 stage of economic appraisals no additional allowance has been added to the updated BCIS costs, because the Councils considered that a sufficient buffer within the build costs has been allowed . It is proposed that no change is made to either the BCIS categorisation or BCIS build cost adjustments given that the difference between the higher costs associated with Housing Mixed Developments and the otherwise acceptable Estate Housing Generally category of BCIS is greater than the suggested 2% uplift in cost for future proofing based on increasing standards for building regulation compliance. See DCLG, Next steps to zero carbon homes Impact assessment – Allowable Solutions (August 2013).

The table below D.1a indicates the caution assumed with residential build cost assumptions.

D.1a Residential Build Costs- Difference between Housing Categories

BCIS Category HMD EHG Difference between HMD & EHG Profile Area BCIS Quartile Cost £/Sqm Cost £/Sqm Cost £/Sqm High Median 864 836 3.35% High Mid 839 811 3.42% Mid 814 787 3.50% Low Mid 789 762 3.58% Low Lower Qtle. 764 737 3.66% Note 1

We have adopted BCIS Residential “Housing Mixed Developments” (HMD) as at 1st September 2014. The Table below compares this to “Estate Housing Generally” (EHG)

Please note that whilst BCIS includes preliminaries, they do not include abnormals, contingencies or external works.

However, the Government have since announced changes to the building regulation requirements regarding environmental standards and clarified this within the 2015 summer budget.HM Treasury ‘Fixing the Foundations: Creating a more prosperous nation’ ( July 2015) pledges that the Government will

“The government does not intend to proceed with the zero carbon Allowable Solutions carbon offsetting scheme, or the proposed 2016 increase in on-site energy efficiency standards, but will keep energy efficiency standards under review, recognising that existing measures to increase energy efficiency of new buildings should be allowed time to become established “

The changes is expected to have a decreasing impact on planned build costs.

Assisted living (sheltered housing) costs have been derived from BCIS. Again there are a number of categories form which to derive a build cost. For the economic appraisals the Councils believe the figures of £964 (2-storey development) and £940 (Sheltered Housing with shops, restaurants or the like) are most representative of the developments which are likely to emerge in the Zone B charging areas, outside of Newcastle Central Area, where costs should be lower. Therefore, the build cost of £984/sq m represents a more conservative approach.

19 P04 D.2) Development Costs: Other Residential

In VA1 the development costs tables on page 16 have been tested at consultation, and following discussions with stakeholders adjustments were made to the marketing cost assumptions.

Item VA2 VA3 Comments Professional Fees 10% of build 10% of build (including planning, cost cost building regulations, insurances etc) Site Acquisition Fees – 1% of 1% of Agents residualised residualised price price Site Acquisition Fees – 0.75% of 0.75% of Legal residualised residualised price price Finance 6.5% interest 6.5% interest It is assumed that rate rate development is debt funded. This is an industry norm for residual appraisals Marketing Costs (Sales 3.0% of GDV 3.5% of GDV Agents Fess) Legal Fees £600/unit £600/unit Developer Profit – Private 20% of GDV 20% of GDV for Sale Developer Profit – 6% of GDV 6% of GDV Affordable Housing Non CIL infrastructure £1,000/unit £2,000/unit Amended to reflect costs (inc. s.106 cost) – changes to the Urban Sites1 Regulation 123 list ( see section 4.3 of the Background Paper) Non CIL infrastructure Site specific Site specific See Table 4, costs (inc. s.106 cost)– Background Paper Non Urban Sites2 Appendix 1.3 (P02). Abnormals Allowance 5% of build 5% of build cost cost Externals 10% of build 10% of build See Figure 11 above cost cost Contingency 5% of build 5% of build cost cost NHBC and EPC Costs £1,000/unit £1,000/unit SDLT 4% of GDV 4% of GDV Note: Ref. VA 1 Figure 12 - Other Costs, Residential

Marketing- Representation have been received on the marketing cost assumption, that the assumed sum is too low and reference has been made to the HCA guidance

1 s.106 costs added in after Argus appraisals to enable comprehensive sensitivity analysis 2 S.106 costs added in after Argus appraisals to enable comprehensive sensitivity analysis

20 P04 suggesting a marketing rate of 6% of GDV. Whilst it maybe that on some smaller schemes a higher percentage such as 6% may be appropriate on larger schemes economies of scale are evident and it is suggested that 3% is appropriate. It will be noted that representations have been received from parties developing large sites where the 3% rate is considered appropriate. This is supported by Inspectors Reports and supporting submissions34

Developer profit has not been amended, but in response to developer queries during engagement on the viability assumptions in 2013, further clarification has been provided whilst most respondents are content with an assumed 20% profit on GDV (or 25% on costs).

When merging profit on GDV of 20% for private housing and 6% on GDV for affordable housing a merged rate of about 18.5% is derived. It is noted from the “Shinfield” decision5 that figures for net profit margin for national housebuilders ranged from 17% to 28% with the usual target range being 20% to 25% (of GDV). The Inspector concluded that the figure of 20% of GDV overall was reasonable. 18.5% falls within this range. We have also had regard to Inspectors reports and supporting submissions6. This suggests profit on GDV for affordable provision of 6% is appropriate. It is interesting that in the report on Fareham 20% on costs was accepted equating to just under 17% profit on GDV. This is below the return on costs modelled by the Council. It is important to note that the 20% profit requirement represents the risk premium of not being able to sell individual units to individual purchasers. Disposals to Registered Providers are necessarily less risky hence the approach adopted by Newcastle Gateshead.

At the 2015 PDCS consultation an objection was received from a housebuilder in relation to a recent tendency for registered providers to have less funds and capacity to deliver projects than a few years ago. Newcastle has frequently found discounted purchase schemes acceptable to meet affordable housing targets and yet the housebuilder has indicated that there is no fixed point of sale to the developer.

It is the view of the Councils, however, that the overall assumption of 20% open market profit and 6% for affordable housing provision is at the top end of competitive return assumptions accepted in examinations elsewhere in the country and that there are no evidenced localised risks that would require a review of this assumption.

Non CIL infrastructure costs have been the subject of requests for clarification. For each of the SLR sites we have added in the appropriate likely specific non-CIL and s.106 requirements for infrastructure. The non-CIL costs vary between sites, ranging from £2,000 to £13,000 per unit, and is in addition to affordable housing provision. The non-CIL costs include site specific highways and access arrangements, local open space provision and other local green infrastructure, for example. This ensures that a realistic headroom is established. We have therefore applied more weight to the site specific appraisal results for SLR sites and it is recognised that strategic growth sites are likely to have greater infrastructure costs and requirements than a typical smaller scale urban development.

3 Inspector’s Report to Fareham Borough Council Ref. PINS/A1720/429/4 4 Inspector’s Report to East Cambridgeshire District Council Ref. PINS/V0510/429/4 5 Land at The Manor, Shin field, Reading (APP/X0360/A/12/2179141) Jan. 2013 6 Inspector’s Report to East Cambridgeshire District Council Ref. PINS/V0510/429/4

21 P04 The Non CIL costs for each of the non urban growth sites are listed in Table 4 of the Background Paper (P02) (Appendix 1.3) . The time lag between the Plan examination and the publication of CIL evidence has necessitated some adjustments to site and generic scheme costs to reflect indexation and pre application evidence and requirements (See Section 4.0 of the Background Paper on infrastructure).

Added to the Background Paper Appendix 4 is a flow chart for each local authority area to assist the reader in understanding the categories and projects to be funded by CIL or by other means. The non CIL and s106 cost assumptions for the non urban sites have altered since initial PDCS consultation undertaken in 2012 to reflect the identification of detailed infrastructure requirements, associated costs and a review of the most appropriate delivery mechanisms.

Abnormals-Representations have been received regarding whether the abnormals allowance is sufficient. The Councils have made an allowance for abnormals in the site appraisals but there is an argument, as set out in Gedling7, that it may not necessarily be accurate for abnormals to be deducted, purely, from the headroom. The Councils should not plan for the worst case scenario. For example if two identical sites were offered to the market in a mature market place and one was previous in industrial use with significant contamination and one was ‘clean’ then the landowner of the contaminated site would have to take a lower land receipt for the same form of development due to the condition of the land. It is worth setting out in full the inspectors remarks in Gedling on this matter:

“demolition, abnormal costs and off site works are excluded from the VA, as the threshold land values assume sites are ready to develop, with no significant off site secondary infrastructure required. While there may be some sites where there are significant abnormal construction costs, these are unlikely to be typical and this would, in any case, be reflected in a lower threshold land value for a specific site. In addition such costs could, at least to some degree, be covered by the sum allowed for contingencies”

The Councils’ have taken a cautious approach, and have added in a 5% ‘abnormals’ figure on top of base build cost and externals. A 5% contingency has also been adopted. The community should not be disadvantaged by a loss to essential infrastructure requirements where sites have additional abnormal costs.

Externals - The allowance for externals will always vary on a site by site basis and accordingly it is necessary to adopt a standard rate for externals (as a percentage of build costs) for the appraisals carried out. Externals include, inter alia, service connections, landscaping, car parking and internal access roads if applicable In this respect regard has been made to publically available information from BCIS and also to advice from consultants. For some developments external works will be significantly higher and others significantly lower and so therefore an average range has been adopted for development typologies.

Representations have also been received from a housebuilders with an interest in strategic growth areas in relation to the assumed externals allowance. A typical average has been applied at 10%. Taking this externals allowance with a cautious 5% abnormals and 5% contingency, is equivalent to a 20% of build cost assumption for on-site infrastructure costs.

7 REPORT TO GEDLING BOROUGH COUNCIL, THE PLANNING INSPECTORATE REF PINS/N3020/429/4, MAY 2015

22 P04 Note: Residential Externals (VA 1 Figure 11) 10%. No amendment from VA2

Contingency

An allowance of 5% of build cost has also been added to cover contingencies. Newcastle and Gateshead’s experience is that this is a cautious allowance in a residual appraisal.

E) Residential Build Period and Sales Timings

Scheme Type VA2 & VA3 Build Period 1 Unit Scheme 9 months 15 Unit Scheme8 12 months 50 Unit Scheme 24 months 100 Unit Scheme 36 months

Scheme Type VA2 & VA3 First Sale 1 Unit Scheme 9 months 15 Unit Scheme9 9 months 50 Unit Scheme 12 months 100 Unit Scheme 12 months

Scheme Type VA2Sales/Annum VA3Sales/Annum 1 Unit Scheme 25 1 15 Unit Scheme10 25 15 50 Unit Scheme 30 25 100 Unit Scheme 35 33 Note: VA1 Ref.Figure 13 - Build Period and Sales Timings (Residential) No amendments from VA2

The generic residential schemes where appraised based on the above assumptions for build out and first sales timings, and no amendments have been made to these schemes. The Councils have also used the assumption for SLR sites that units will be sold at the rate of 32 units per year. It is however, assumed that a number of sales outlets will exist on the larger schemes and that these will also be phased. First sales are not until 1 year after commencement of the construction process on the larger schemes. The Councils have further assumed that the entire land payment is made at the commencement of the scheme as a whole. The SLR development appraisals have been adjusted after the PDCS (April 2015) stage subsequent to engagement with a developer to clarify the number of likely residential sales outlets operating for each site planned for over 100 units (see Table 3, Appendix 1.3 of the Background Paper Appendices (October 2015)(P01)).

8 Amended from 25 units VA1 9 Amended from 25 units VA1 10 Amended from 25 units VA1

23 P04 F) Residential Threshold Value

The establishment of a Threshold value for the non-urban sites is the most challenging aspect in the viability appraisals as it requires the valuer to estimate what a willing land owner would be willing to treat for in the disposal of land. In accordance with normal practice in the area the Councils have assumed a benchmark value methodology that is based on net site area to derive a threshold value. A margin of error has been built into the threshold value to allow for a viability ‘buffer’ and facilitate development delivery throughout the economic cycle.

The Councils have taken the view, as would a willing developer, that the net area of a site is that part which produces value. The gross development value of a site is generated by this and accordingly any offer to purchase land would be based on the value created by the net development value. The differential between net and gross would be spread across the site.

The differential between net and gross will often be as a consequence of planning policy. For example if there is an open space requirement then this would mean that no development value could be attributed to that area of land.

Paragraph 173 of the NPPF sets out that the benchmark land value must provide a competitive return to the landowner taking into account the costs of development. These will include affordable housing, standards and infrastructure contributions. When marketing a site the Council receive offers that are normally subject to contract, site conditions and planning considerations. As such a developer will normally make a bid exclusive of costs for S.106 and S. 278 contributions and any costs associated with these will be taken from the land receipt once identified.

PPG on viability reinforces the requirement of the competitive return to a land owner – the price will need to provide an incentive for the owner to sell in comparison with alternative uses. We have already considered that there is a significant uplift above agricultural use. However, this will need to take into account the actual circumstances for each site.

Section 3.1 provides an update on the methodology adopted by the councils to the identification of threshold values. The identification of the threshold value is one that has generated a number of responses from developer stakeholders during consultation and a number of adjustments have been made (See paragraphs 3.1.1- 3.1.9).

Table F.1) below indicates the adjustments made to VA2 and VA3.

F.1) Review of Residential Threshold Values: Gateshead and Newcastle

In May 2012 the published VA stage 1 report proposed the following Threshold Values (referred to as benchmark value) for the urban and non-urban areas.

24 P04 F.1a) Residential Threshold Value: Gateshead and Newcastle: VA1 (Consultation) VA1 THRESHOLD VALUE ( Net Site Area) - RESIDENTIAL

Note: VA1 Reference Figure 15 Benchmark Value-Residential Table See paragraphs 4.25-4.26 on the V&D report for a summary of the stakeholder representation and the reasoning for the Councils’ response to consultation on VA stage 1.

F.1b) Residential Threshold Value: Gateshead and Newcastle: VA2 (Local Plan)

The Stage 2 (VA2) report published in 2014 set out the following Threshold Values (Net Site Area)

VA2 THRESHOLD VALUE ( Net Site Area) - RESIDENTIAL Zone 1 Zone 2 Zone 3 Zone 4 Zone 5 HIGH HIGH-MID MID LOW-MID LOW STAGE 2 - URBAN/SUBURBAN £/hectare £ 2,000,000 £ 1,500,000 £ 1,000,000 £ 500,000 £ 100,000 £/acre £ 809,389 £ 607,042 £ 404,694 £ 202,347 £ 40,469 STAGE 2 - STRATEGIC SITES £/hectare @ 40%£ 800,000 £ 600,000 £ 400,000 £ 200,000 £ 40,000 £/acre £ 323,756 £ 242,817 £ 161,878 £ 80,939 £ 16,188

F.2) Assumed Residential Threshold Value in Gateshead and Newcastle (VA3) (CIL)

As indicated in paragraph 3.1.6- 3.1.9 above, the Viability Annex (April 2015) included the following updates to the Urban and SLR Threshold Values used in the economic appraisals, they are as follows (VA3) (Net Site Area):-

25 P04 VA3 THRESHOLD VALUE ( Net Site Area) - RESIDENTIAL Zone 1 Zone 2 Zone 3 Zone 4 Zone 5 HIGH HIGH-MID MID LOW-MID LOW Urban/Suburban £/ha £2,100,000 £1,600,000 £1,000,000 £600,000 £200,000 £/acre £849,858 £647,511 £404,694 £242,817 £80,939 Strategic Sites £/ha. £530,000 £480,000 £420,000 £380,000 £360,000 £/acre £214,488 £194,253 £169,972 £153,784 £145,690

There have been no further adjustments to VA3 threshold values.

F.3) Residential Threshold Values Compared

We have reviewed the threshold value figures adopted in published viability studies by other local authorities in the North East Viability reviews. Analysis of the published Durham County Council viability review (Local Plan & CIL Development Viability Study (October 2013)) and the methodology adopted has been included in the comparison of non urban areas in the table below. We have also tried to obtain evidence of transactions of such areas of land, see Tables 5.1 & 5.2 in Appendix 5. The quantitative conclusions are summarised below:-

COMPARISON OF NON URBAN AREAS- THRESHOLD VALUES ( £/hectare) Zone 1 Zone 2 Zone 3 Zone 4 Zone 5 HIGH HIGH-MID MID LOW-MID LOW EXISTING PROPOSED see note 1 £ 840,000 £ 640,000 £ 400,000 £ 240,000 £ 80,000 DURHAM CC - TEXT see note 2 £ 250,000 £ 250,000 £ 250,000 £ 250,000 £ 250,000 DURHAM CC - TABLE see note 3 £ 360,000 £ 360,000 £ 310,000 £ 280,000 £ 280,000 PUBLIC DATA see note 4 £ 280,000 ADJUSTED IN LINE WITH SALES Vsee note 5 £ 336,000 £ 280,000 £ 233,333 £ 205,333 £ 180,444 AVERAGE - (HIGHEST DCC +COMP) £ 350,000 £ 320,000 £ 280,000 £ 250,000 £ 240,000

ADD IN CONTINGENCY BUFFER see note 6 50% £ 530,000 £ 480,000 £ 420,000 £ 380,000 £ 360,000 Notes note 1 Based on 40% of adjusted headroom in line with VA2 note 2 LPCIL14 PG. 25 note 3 LPCIL14 PG. 21 - ADJUSTED TO REFLECT THREE BAND AS USED BY DCC note 4 BASED ON REPORTED HMLR FIGURE - KENTON BANK FOOT, 2014 note 5 Figure in note 4, adjusted to value bands in line with sales values note 6 The Councils recognise that care should be exercised so that viability of schemes is not compromised accordingly a margin of error of 1/2 has been applied

We have also had regard to the CIL Viability Study prepared for Stockton-on-Tees Borough Council (SBC) to compare the approach taken to Threshold Values. SBC have 2 value zones – ‘High’ with a sales value of £2,100/m2 and ‘Low’ with a sales value of £1,725/m2. These values approximate to those in Gateshead and Newcastle

26 P04 Councils’ High-Mid Zone (£2,250/m2) and a mid-point between the Councils’ Mid Zone (£1,875/m2) and Low-Mid Zone (£1,650). SBC have also adopted a sliding scale of Threshold Value to account for quantum. It is considered appropriate to have regard to the ‘Large’ sites which in the SBC modelling are 100 units on 2.86 hectares.

For the High-Mid zone SBC has adopted a threshold value at £500,000/hectare which is 4% higher than the Council’s at £480,000/ha. and is therefore consistent with our approach. This same figure of £500,000/hectare has been adopted by SBC for the Low area. This is some 20% higher than the figure adopted by the Councils’, but would have no significance to the outcome of the viability testing in this report or the CIL chargeable zones, as adopting a similarly higher threshold value in Gateshead and Newcastle in Mid, Low-Mid or Low value areas would reduce the headroom in areas which are already outwith the proposed CIL charging zones.

A number of housebuilders and developers have raised concern regarding the assumed threshold (or benchmark) values, and for this reason additional local known relevant transaction data has been included in this update at Appendix 5. However from the data in the table of transactions in SLR growth areas and non-urban areas (See Tables 5.1 and 5.2 , Appendix 5) there are only 2 entries above £300,000/ ha. and these relate to a sale for a commercial use and also a farm house. In Gateshead just 1 entry is above £300,000/ ha and relates to Highfield which in part is now allocated as a housing development site in the Plan. These transaction levels are generally well below the assumed threshold land values proposed, and as indicated in section 3.1.5 -3.1.9 above, this approach is compliant with the Harman methodology and guidance.

It should be noted however, that no alternative evidence on threshold values has been submitted by an objector.

G) Generic Commercial Assumptions

The following commercial schemes were prepared for economic viability testing for the purposes of PDCS (2012). Shared/ student accommodation development assumptions have been considered in this section irrespective of planning use classification.

G.1) Generic Commercial Assumptions: Scheme Types (VA1 Consultation)

Definition & Example Scheme Type GIA (sq m) Site Site Use Class* Coverage Size (plot ratio) (HA) A1 - Retail Out of Town Retail 1250 42% 0.30 Warehouse. Warehouse A1, A2, A3, A4, A5 Convenience Store*** 1600 80% 0.20 – Small Retail A1 – Supermarket Supermarket 2500 42% 0.60 B1(a) - Offices Office – City Centre 4000 400% 0.10 Office – 2000 80% 0.25 Neighbourhoods/Out of Town B1 – Light Industrial Warehouse 3000 40% 0.75 Industrial, B2, B8 Industrial C1 – Hotel** Hotel – CITY CENTRE 8000 (177 200% 0.40

27 P04 Hotel – NON-CITY rooms) 72% 0.25 CENTRE 1800 (60 rooms)

C2 – Residential Nursing Home 3000 60% 0.50 Institution Shared Student Housing 7500**** 300% 0.25 Accommodation

Note: VA 1 Reference Figure 6- Commercial Scheme Types

* Detailed Definitions are set out in Appendix (ix) to the VA1 Stage report ** Non-City Centre GIA of rooms inc. circulation = 25m2. City Centre GIA of rooms inc. circulation = 45m2 *** Assumes development of 8 units of 200m2 – each unit 10m frontage x 20m depth. Size ITZA 110m2 using 6m zones. **** Based on 250 student letting rooms of 20m2 (including shared cluster facilities) with 10m2/room allowance for circulation/plant.

Additional generic commercial schemes have been appraised since initial PDCS consultation in 2012 and the publication of Plan based viability evidence (VA2). Additional retail schemes have been tested to assist in the CIL rate setting process and in response to previous representations from a discount supermarket operator, a retail multiple and the operator of a City Centre shopping centre. On page 109 of the V&D Report (VA2) Figure 6 (commercial scheme types) the development assumptions for an additional A1 comparison scheme in Newcastle City Centre (now known as Newcastle Central Area) was added and that has also been assessed.

G.2) Generic Commercial Assumptions: Comparison Retail Scheme Type Added (VA2 Local Plan)

Definition Example Scheme Type GIA (m2)/(ft2) Site Site Size & Use Coverage (ha)/(acres) Class (plot ratio)

B1(a) – Office – City Centre 4000 / 43,055 400% 0.1 / 0.25 Offices (4 storey) Office – 2000 / 21,500 80% 0.25 / 0.62 Neighbourhoods/Out of Town(single storey)

A1-Retail City Centre- comparison 11,000/118,400 500% 0.3/0.74 Note: VA 2 Reference Figure 6 - Commercial Scheme Types

Adjustments to the small retail scheme were made to reflect the nature and character of smaller units that trade below the Sunday trading floorspace threshold. On receipt of representations from a discount retailer, the supermarket schemes were also adjusted to reflect more recent typical retail proposals which were then tested making use of local examples of recent discount supermarket schemes. Minor adjustments were also made to the larger supermarket floorspace and shared accommodation schemes.

G.3) Generic Commercial Assumptions: Scheme Types Reviewed ( VA3 CIL)

28 P04 COMMERCIAL SCHEME TYPES EXAMPLE SCHEME SITE COVERAGE DEFINITION AND USE CLASS TYPE GIA (SQ.M) (PLOT RATIO) SITE SIZE (HA) ROOMS IF APP. B1 (A) OFFICES - NEIGHBOURHOOD/OUT OF TOWN OFFICES 2,000 80% 0.25 B1 (A) OFFICES - NEWCASTL CENTRAL AREA OFFICES 4,000 400% 0.10 HOTEL NOT OUT OF CENTRE HOTEL CENTRAL AREA 3,600 72% 0.50 120 HOTEL - NOT NEWCASTLE CITY CENTRE HOTEL CENTRAL AREA 8,000 200% 0.40 180 CONVENIENCE A1,A2,A3,A4,A5 - SMALL RETAIL STORE 279 90% 0.03 SUPERMARKET - DISCOUNT SUPERMARKET 1,510 20% 0.76 SUPERMARKET SUPERMARKET 5,000 25% 2.00 RETAIL

A1 - RETAIL WAREHOUSE WAREHOUSE 1,000 42% 0.30 SHARED ACCOMMODATION STUDENT 16,266 400% 0.41 530

, LIGHT INDUSTRIAL B2, B8 INDUSTRIAL

WAREHOUSE 3,000 40% 0.75 Note: VA 2 Reference Figure 6- Commercial Scheme Types

G.4) Generic Commercial Assumptions: Rental and Capital Values and Yields for Commercial Schemes (VA1 Consultation) The following capital values and yields for commercial schemes were prepared for economic viability testing for the purposes of PDCS (2012)

Scheme Type Rental Value Level £/m2 CITY Low Med. High City Centre A1 – Retail Warehouse 129.00 161.00 194.00 - Yield 6.00% 6.00% 5.25% A1, A2, A3, A4, A5 – Small Retail 108.00* 161.00* 431.00* 650.00 Yield 8.5% 8.5% 7.50% 7.25% Supermarkets 215.00 215.00 215.00 215.00 Yield 4.5% 4.5% 4.5% 4.5% B1(a) Offices 86.00 108.00 161.00 215.00 Yield 8.0% 8.0% 8.0% 6.5% B2 Industrial 45.00 50.00 60.00 - Yield 10.00% 9.00% 7.50% n/a C1 Hotels** 45,000 45,000 90,000 115,000 Yield n/a n/a n/a n/a C2 Residential Institution*** 1,425 2,150 2,800 2,800 Yield Student Housing**** 2,800 2,800 3,660 3,660 Yield 6.5% 6.5% 6.0% 6.0% * £/m2 ITZA ** Capital Value/room *** An equivalent residential capital rate/m2 – based on equivalent residential values. **** Net Rent/Room – The Calculation for which is set out in Figure 8a:- Note: VA1 Reference –Figure 8 Rental and Capital Values and Yields for Commercial

It will be noted that the only figures reported in the Stage 2 (VA2) report were on offices and the City Centre comparison retail scheme. These have been amended from the following figures:-

Low - No change in rent, yield amended from 8.0% to 8.5% Medium - No change in rent, yield amended from 8.0% to 8.5% High - No change in rent, yield amended from 8.0% to 7.5%

29 P04 City Centre - Rent amended from £215/m2 to £226/m2 and yield moved from 6.5% to 7.0%

In preparation of this Viability Update for progressing this VA 3 report Annex there was an update to quarter 4 2014 values and yields for all of the schemes taken forward for testing.

G.5) Generic Commercial Assumptions: Rental and Capital Values and Yields for Commercial Schemes Reviewed (VA2 Local Plan & VA3 CIL)

RENTAL AND CAPITAL VALUES AND YIELDS FOR COMMERCIAL SCHEMES Scheme Type Rental Value £/m2 and Yield % Newcastle Low Med High Central Area 1000m2 GIA retail warehouse 110 145 160 Yield 6.50% 6.50% 6.50% 279m2 net trading area & small scale A1-A5 units 60 88 237 645 Yield 8.50% 8.50% 7.50% 7.50% 5000m2 GIA supermarket 150 195 215 215 Yield 6.75% 6.75% 6.75% 6.75% 1510m2 gross (1125 net) convenience (discount) 130 130 130 130 Yield 6.75% 6.75% 6.75% 6.75% Offices 86 108 161 226

Yield 8.50% 8.50% 7.50% 7.00% B2 Industrial 35 45 60 Yield 10.00% 8.00% 7.50% Hotels 65,000 65,000 90,000 145,000

Capital Value per Room Student Housing 2856 3672 5916 5916 Yield 8.50% 8.50% 7.50% 7.50%

Note: VA 1/2 Reference Figure 8 - Rental and Capital Values for Commercial Schemes

It will be noted that the only figures reported in the Stage 2 (VA2) report were on offices. These have been amended from the following figures:-

Low - No change in rent, yield amended from 8.0% to 8.5% Medium - No change in rent, yield amended from 8.0% to 8.5% High - No change in rent, yield amended from 8.0% to 7.5% City Centre - Rent amended from £215/m2 to £226/m2 and yield moved from 6.5% to 7.0%

G.6) Generic Commercial Assumptions: Typical Rent Free Periods (VA1 Consultation)

The following assumptions were identified in 2012 in relation to rent free periods for commercial schemes.

30 P04 Scheme Type Adopted Rent Free Period Retail Warehouse 6 months Small Retail 6 months Supermarkets 6 months Offices 15 months Industrial 10 months Hotel Nil Residential Institution Nil Student Housing Nil Note: VA1 Reference Figure 9: Typical Rent Free Periods

Following comments during consultation it was established that there is a need to standardise assumptions. To this end for all lease transactions it has been assumed that leases are for a term of 10 years. On the basis of this, and the latest advice from agency surveyors, the assumptions have been adjusted to 3 months rent free for every unbroken year of a lease, rent free periods have been increased from 15 months to 30 months .Comparison Retail scheme was added at 12 months rent free. However, it is accepted that for some commercial developer-operators, such as a national retail multiple, they are unlikely to operate in this manner and would begin trading with an interest in the property.

This current VA3 Annex Update, updated the estimates of rent free periods for 2014, as follows.

G.7) Generic Commercial Assumptions: Typical Rent Free Periods Reviewed (VA2 Local Plan & VA3 CIL)

FIG. 9 TYPICAL RENT FREE PERIODS Scheme Type MONTHS

1250m2 GIA retail warehouse 9 279m2 net trading area & small scale A1-A5 units 12 5000m2 GIA supermarket 15 1510m2 gross (1125 net) supermarket (discount) 12 Offices 10 B2 Industrial 10 Hotels - Student accommodation - Note: VA1 Reference Figure 9: Typical Rent Free Periods

H) Development Costs- Commercial Build Costs (VA1 Consultation)

Use Class Property Type BCIS Build Cost Gross to Net % (£/ sq m)*

C3- Houses (one off) N/A £1,060 100%

C3 – Houses (Mixed N/A £804 100% Developments)**

31 P04 C3 – Flats (Generally)*** N/A £1,004 83%

A1 – Shops Retail Warehouse £466 90% (Non-food)

A1 – Shops - Supermarket Supermarket £1,121 95%

A1, A2, A3, A4, A5 – (Small Convenience Store - £607 90% Retail) Non City Centre £955**** City Centre

B1(a) Offices Office Building – £1,152 80% Urban Core. 3-5 storey air conditioned

Office Building – £1,069 85% Neighbourhoods – Offices (Generally)

B1 Light Industrial B2, B8 – Industrial Warehouse £433 100% Industrial (Purpose Built)

C1 – Hotel***** Hotel – City £1,282 100% Centre/High £1,199 Hotel - Outer

C2 – Residential Institution Nursing Home £1,186 83%

Shared Accommodation Student Housing £1,126 100%

* excludes externals and contingencies (these are added to base build cost)

** SHLAA adopted £800/m2. This has been adjusted by TPI from Q1 2009 to Q4 2011. This is above the median figure but falls within 6%, and is below the upper quartile figure

*** SHLAA adopted £1,000/m2. This has been adjusted by TPI from Q1 2009 to Q4 2011. This is above the median figure but falls at the upper quartile figure

**** BCIS Figure for Mixed Use Commercial Development adopted due to nature of city centre schemes where retail is likely to form part of a larger development.

***** Price adopted based on mid point between upper quartile price (£1235) in BCIS. This is to represent higher standard facilities and finish likely in city centre 3 and 4 star establishments.

H.1) Development Costs- Commercial Build Costs (VA2 Local Plan & VA3 CIL)

Given the lapse in time since previous VA1 and VA2 testing it was appropriate to appraise at current build costs. This Annex has been updated to BCIS Quarter 4 2014.

32 P04 BUILD COST DATA (BCIS ) Quarter 4 SEPTEMBER 2014 +0.02% BREEAM UPLIFT BCIS Build Cost Use Class Scheme Type/Location BCIS Quartile (£/sq.m.) Gross to Net Convenience Store - not in Newcastle Central Area Median 731 78%

A1, A2, A3, A4, A5 - Small Retail Newcastle Central Area Median 1,133 78% A1 Supermarket-Discount Supermarket Median 826 95% A1 Supermarket Supermarket Median 1,084 95%

Retail Warehouse (non- A1 - Shops food) Median 566 95% Not Newcastle Central B1 Offices Area Median 1185 85%

B1 Offices Newcastle Central Area Median 1304 80% Warehouses/Stores B1 Light Industrial B2, B8 - Industrial Generally Median 471 100% Not Newcastle Central Hotel Area Lower Quartile 1198 100%

Hotel Newcastle Central Area Lower Quartile 1657 100% Note: VA 1 Reference Figure 10 - Development Costs- Build Costs

Newcastle and Gateshead in the preparation of this report have had account of the need to balance viability with the level of CIL and this approach is considered appropriate. In Newcastle Central Area sites development costs at this level have been further increased to make an allowance for the particular difficulties of developing in a dense urban environment and to reflect the prevalence of listed buildings. The range of potential commercial build costs faced by a developer of retail, office and hotel schemes in the Newcastle Central Area is such that it does not allow sufficient accuracy when combined with unknowns of multiple land transaction and assembly costs. The costs of a building/refurbishing a shopping mall can vary from £283- 2,700 p sq m (SPONS/BCIS, 4 Q 2014); an office scheme could vary from £1,026- 2,420 per sqm and hotels £883-2,253 per sqm ( BCIS). H.2) Development Costs- Commercial Other Costs

33 P04 Development Costs – Fees, Finance and Profit (Commercial)

DEVELOPMENT COSTS - FEES, FINANCE & PROFIT - COMMERCIAL Item Description Units

of build costs including planning, building Professional Fees 10% regs, insurances etc

Site Acquisition Fees 1.00% of purchase price - Agents Fees 0.75% of purchase price - Legal Fees 4% of purchase Price - SDLT Finance 6.50% per annum Finance Arrangement Fee 0.10% of cost Marketing Costs 1.00% sales fees where applicable advertsing fees (percentage of annual 0.00% income)

10% letting fees (percentage of annual income) Legals on Lettings 5.00% percentage of annual income Legals on Sale 0.25% percentage GDV on costs (excluding shared accommodation Developer Profit 20% & Offices at 15%) s.106 0 Direct site works cannot be estimated EPC/m2 £ 0.50 on build costs Abnormals Allowance 5% on build costs City Centre Abnormals Allowance 5% on build costs Contingency 5% on build costs Externals 11.25% on build costs Note: VA 1 Reference, Figure 11 Externals Allowance, Paragraph 2.36- Fees, Finance and Profit (Commercial)

The above remains unchanged from VA2, save the office profit, which has been amended to 15% from 20%.

A figure of 11.25% for externals has been adopted across all non-residential types. This is a mean of the range previously adopted of 7.5% to 15%. This is for the purpose of continuity across the use types. Each site will have individual external works depending on individual circumstances.

An average cost of £2,000 per shared accommodation scheme is assumed for non CIL infrastructure/ s106 costs.

34 P04 I) Non Residential Build Period and Sales Timings

Note: VA1 Reference Figure 17 - Commercial Build Periods

It will be noted that Residential Institutions have been removed from the Commercial Development Section and has been included within the residential areas.

J) Non Residential Threshold Value : Gateshead and Newcastle (VA1, VA2 & VA3)

In May 2012 the published VA stage 1 report proposed the following Threshold Values (referred to as benchmark value) for the urban and non-urban areas.

J.1) Non Residential Threshold Value (VA1 Consultation)

CITY HIGH MEDIUM LOW CENTRE Urban/Suburban £/ha £2,240,0 £2,240,000 £1,610,000 £1,070,000

Non-Urban £/ha @ 30% £672,000 £483,000 £321,000 Note: VA1 Reference Figure 16 - Commercial Benchmark Values

Adjustments to the residential benchmark and threshold values led to adjustments to the commercial/ non-residential threshold values (VA2) as they follow the value patterns of the residential zones.

J.2) Non Residential Threshold Value (VA2 Local Plan)

In 2013 (VA2) the Councils’ consulted on the threshold values for commercial/ non- residential values as stipulated below:

Note: VA1 Reference Figure 16 - Commercial Benchmark Values

35 P04 Adjustments to the residential benchmark and threshold values have led to adjustments to the commercial/ non-residential threshold values (VA3) as they follow the value patterns of the residential zones.

J.3) Non Residential Threshold Value (VA3 CIL)

VA3 THRESHOLD VALUE ( Net Site Area) - NON RESIDENTIAL Newcastle Central Area HIGH MEDIUM LOW STAGE VA3 - URBAN/SUBURBAN £/hectare £2,100,000 £1,000,000 £200,000 £/acre £849,858 £404,694 £80,939 STAGE VA3 - NON URBAN £/hectare £530,000 £420,000 £360,000 £/acre £214,488 £169,972 £145,690 Note: VA1 Reference Figure 16 - Commercial Benchmark Values

Please note that as the values are adjusted to the residential benchmark and threshold values the commercial threshold values proposed are also considered to be compliant with the Harman methodology and approach contained in the Harman guidance.

4.0 Update -Viability Testing

Section 1.0 establishes the appropriate variables to indicate if there is sufficient ‘headroom’ to enable the payment of CIL whilst not jeopardising the viability and delivery of development.

4.1 Residential Appraisal Results

4.1.1 Argus Appraisals have been carried out for each of the 5 residential value areas for 1, 15, 50 and 100 unit schemes and for a sheltered housing scheme. We have also carried out an appraisal on a 100 unit flatted scheme specifically in Newcastle City Centre. In addition to the generic schemes we have also tested the specific strategic land release sites that are contained within the Mid-High and Mid value bands.

4.1.2 For the generic appraisals, the table below shows the overall residual value, but due to the need to compare the different site typologies, this table shows the Residual Value with affordable housing and the Headroom/m2. The headroom calculation is carried out after the deduction of an allowance of £2,000/unit for Non CIL & s.106 costs per unit for urban sites in Newcastle. This has been increased since PDCS (April 2015) as a result of a change in the Draft regulation 123 list For the non-urban sites, specific non CIL costs would also need to be deducted.

36 P04 Urban Notional Residential Scheme Non Urban Headroom Headroom Headroom with Headroom without with affordable with affordable Affordable housing (per sq Affordable Headroom Site housing £ Housing £ m) Housing £ (per sq m)

Low 1 unit scheme negative negative negative negative negative 15 units 48,000 negative 41 negative negative 50 units negative negative negative negative negative 100 units negative negative negative negative negative Assisted Living negative negative negative negative negative weighted average (excludes 1 bed) negative negative negative Low Mid 1 unit scheme negative negative negative negative negative 15 units 29,000 negative negative negative negative 50 units negative negative negative negative negative 100 units negative negative negative negative negative Assisted Living negative negative negative negative negative weighted average (excludes 1 bed) negative negative negative Mid 1 unit scheme negative negative negative negative negative 15 units 73,000 15,500 13 189,000 158 50 units 10,000 negative negative 468,000 120 100 units negative negative negative 432,000 54 Assisted Living negative negative negative negative -157 weighted average excludes 1 bed) negative negative 83 High Mid 1 unit scheme negative negative negative negative negative 15 units 296,000 220,000 167 503,000 383 50 units 561,000 208,000 49 1,322,000 310 100 units negative negative negative 1,895,000 224 Assisted Living negative negative negative negative -8 weighted average (excludes 1 bed) negative negative 265 High 1 unit scheme negative negative negative negative negative 15 units 577,000 486,000 341 918,000 644 50 units 1,283,000 997,000 224 2,673,000 600 100 units 568,000 negative nil 4,116,000 487 Assisted Living 717,000 439,000 149 1,128,000 382 weighted average (excludes 1 bed) 97 536 Newcastle Central Area 100 unit scheme negative negative Assisted Living 200 negative weighted average negative Table 4.1 - Table Residential Generic Scheme Appraisals

37 P04 Note: the above Non urban columns include an average Non CIL infrastructure cost of £8,740. There are no Low/ Low Mid or High value areas within the CSUCP Green Belt. Please refer to the site specific results

From the results above it can be seen that viability is most challenging in the residential market in the urban Low and Low Mid value areas. In the Mid and High Mid urban areas there is a relatively varied pattern of viability, with positive residual values both before and after affordable housing and assumed non CIL costs.

Whereas, in the High Urban area and the Mid, High Mid and High Non Urban area there is both a positive residual value and an overall positive headroom after threshold land value deductions. However, note there are no strategic release sites in the High Non Urban profile area.

4.2 Non Urban Strategic Sites

4.2.1 In addition to the generic scheme appraisals indicated in Table 4.1 above site specific testing of the non-urban strategic sites, also referred to as Strategic Land Review( SLR) sites, has been undertaken, and the results are included in Tables 4.2 and 4.3 below. We have adopted the results of the SLR sites as these have been tested as ‘real’ examples of the developments likely to come forward. Further strategic land releases in the authority areas would only be permitted in exceptional circumstances and given an up to date Local Plan are not anticipated for either authority. It is important to note that all appraisals have been carried out in a necessarily high level way as no site inspections or ground investigations have taken place and no onerous legal or other constraints have been assumed. It will be noted that the appraisal have built in levels of contingency, additional abnormal contingencies and for the Central Area in Newcastle a specific additional city centre abnormals contingency.

4.2.2 The Councils’ surveyors in establishing the Threshold Values in the non-urban areas adopted a conservative approach. The establishment of a Threshold Value is especially difficult in the absence of transactional data from purchasers. This is because the Threshold Value is the land value at which a landowner would be willing to treat in respect of their land holdings. Existing agricultural land value is around £21,000/hectare, so the question is with the possibility of residential development value being realised at what level did landowners ‘option’ land to purchasers. The calculus of how the Councils’ surveyors reached a conclusion on appropriate Threshold Values is set out on page 19 above. Appendix 5 includes the local Gateshead and Newcastle known non urban transactions registered with Land Registry which helped to establish the data assumed. To ensure that viability of development is not jeopardised we have then added a 50% margin of error (i.e. the Threshold value we have arrived at contains within it a 33% buffer).

4.2.3 The detailed results are set out below with a copy of the appraisal summaries at Appendix 8. A schematic of the distribution of the Gross Development Value of one of the SLR sites is however set out below.

This typical SLR site cost profile indicates cost proportions.

38 P04

£180,000,000 CONSTRUCTION COST FEES £160,000,000 FINANCE PROFIT £140,000,000 RESIDUAL LAND VALUE £78,120,000 £120,000,000

£100,000,000 £8,374,400 £80,000,000 £14,540,000 £8,040,000 VIABILITY CUSHION £60,000,000 £10,441,600 S.106 @ £15,360 / OM UNIT £31,180,000 £40,000,000 BENCHMARK VALUE

£13,584,000 £20,000,000 £32,400,000 £-

For each of the SLR sites we have added in the appropriate likely specific non CIL and s.106 requirements for infrastructure for a particular site- the non CIL costs varied from £2,000 to £13,000 in addition to affordable housing provision .This ensures that a realistic headroom is established. We have therefore applied more weight to the site specific appraisal results for SLR sites and it is recognised that strategic growth sites are likely to have greater infrastructure costs and requirements than a typical smaller scale urban development.

4.2.4 The summary of results is as follows. This shows the Land Residual after affordable housing, generic and estimated specific infrastructure cost, the Threshold Value and consequently the Headroom. It is from the headroom that the CIL payment can be sought.

39 P04

Table 4.2 High-Mid Area-SLR Sites- Headroom

Table 4.2.1. – Newcastle (£)

KINGSTON PARK / GREAT PARK CALLERTON KENTON BANK Expansions - PARK FOOT 2030 DINNINGTON WIDEOPEN Site Land Residual with Affordable Housing A RESIDUAL VALUE £120,023,640 £32,286,228 £24,342,838 £10,241,166 £4,033,508 THRESHOLD VALUE £480,000 £480,000 £480,000 £480,000 £480,000 (per hectare) TOTAL THRESHOLD B VALUE (per hectare) £51,840,000 £13,584,000 £9,600,000 £3,264,000 £2,400,000 C HEADROOM (A - B) £68,183,640 £18,702,228 £14,742,838 £6,977,166 £1,633,508 S.106 PLUS EST. SPECIFIC D INFRASTRUCTURE £40,093,449 £10,441,600 £4,128,200 £1,856,750 £742,700 HEADROOM after s.106 for CIL (D - E) E £28,090,191 £8,260,628 £10,614,638 £5,120,416 £890,808

40 P04 Table 4.2.2 – Gateshead (£)

The High Mid growth areas indicate significant headroom after affordable housing deductions, policy costs and after non CIL and s106 infrastructure costs for each site. Whereas, the non-urban High Mid areas display a more challenging viability pattern, with all sites displaying a positive residual value after policy costs and for all but one a negative headroom after threshold land value dedications.

41 P04

Table 4.3 Mid Area SLR Sites- Headroom

Table 4.3.1 Newcastle (£)

NEWBURN NEWBIGGIN HALL HAZLERIGG THROCKLEY RIVERSIDE Site Land Residual with Affordable Housing A RESIDUAL VALUE £6,138,260 £8,584,968 £11,109,050 £10,214,145 B THRESHOLD VALUE £4,956,000 £6,720,000 £9,156,000 £6,300,000 C HEADROOM (A - B) £1,182,260 £1,864,968 £1,953,050 £3,914,145 S.106 PLUS EST. SPECIFIC D INFRASTRUCTURE £2,754,800 £2,902,400 £5,163,400 £2,470,457 Headroom after s.106 for CIL (D - E) E -£1,572,540 -£1,037,432 -£3,210,350 £1,443,688

Note: Newburn Riverside site has an ERDF financial restriction on new residential use until 2022

It is worth noting that Newburn Riverside was the recipient of ERDF financial package to remediate the site for employment use has an ERDF financial restriction on new residential use until 2022, and is unlikely to be developed until after this clause has expired. This is reflected in the Plan which indicates only half of the site capacity is expected to be delivered within the plan period to 2030. For the Core Strategy evidence published in 2013 (SHLAA EL 37, page 73) the repayment cost was estimated at £8m. For the purposes of the appraisal the repayment cost would also need to be deducted from the headroom if developed prior to 2022.

The application of standardised development assumptions for Hazlerigg, Throckley and Newbiggin Hall sites in Newcastle (at quarter 4 2014 costs and values) indicates a positive residual value after affordable housing costs are deducted (Plan affordable housing assumptions). Subsequent to assumed infrastructure cost deductions there is insufficient headroom from which a CIL charge can be justified. This should be considered against the site promoters’ view at Plan examination that the sites are deliverable with the policy cost requirements. Any site abnormals would be expected to be reflected in a reduction in the land cost (threshold value).

Table 4.3.2 Gateshead (£)

Middle Chopwell South Chopwell

Land Residual with Affordable Housing A Residual Value £994,136 £2,636,339 B Threshold Value £1,209,600 £3,023,160

C Headroom (A-B) £-215,464 £-383,821

42 P04

S106 + Est Specific D £262,000 £642,000 Infrastructure

Headroom after S106 for E CIL (C-D) £-477, 464 £-1,025,821

Thus, there is a mixed picture of available headroom for the residential schemes in the Non Urban Mid area to the extent that the Councils consider that an additional development cost could potentially have an effect on the viability and deliverability of the schemes.

Viability appraisal is central to identifying and demonstrating charging rates which can be supported financially by the majority of development proposed in the Core Strategy to ensure that plan delivery is not jeopardised. The appraisals in this study adopt industry standard appraisal techniques to assess a series of hypothetical but typical schemes within Newcastle & Gateshead. In the main, the appraisals in this study have been run using the residual method of valuation (and were carried out in line with accepted practice as set out in RICS Valuation Information Paper (VIP) 12, the RICS guidance on Financial Viability in Planning and the Harman Report Viability Testing Local Plans).

4.3 Urban Growth Sites: Newcastle Great Park (NGP)

The existing NGP area approved in 2000 was released from the designated green belt in 1998 on adoption of the Newcastle upon Tyne UDP (1998) and subsequently gained outline planning permission in 2000 for residential and employment uses. Having regard to this the Council has reconsidered and is content that as the land previously has a residential & commercial development status then it should be located in the appropriate urban profile area.

Development Areas NN4 d and NN4a

The Core Strategy and Urban Core Plan adopted in March 2015, allocates housing growth sites as Neighbourhood and Village Growth Areas, Areas of Change and Newcastle Great Park Development Area. The Great Park Development Area (Policy NN4d) (see Map 1 below). was first allocated for residential, employment and open space in 1998, gained planning permission in 2000 and build out is ongoing across phased cells. This designation varies from the Neighbourhood and Village Growth Areas sites allocated in the Plan as they are strategic Green Belt release sites deleted from the green belt in 2015.

In response to an objection received the Council has assessed the specific economic viability of NN4d, in relation to the Development Area status.

43 P04 Map 1-Newcastle Great Park and Expansion Sites

The Great Park planning permission for NN4d and accompanying masterplan subdivides the area into development cells. For the purposes of clarity a map of the development cells is included below (Map 2). You will note the area straddles a main road, which is the A1 north- south.

Map 2 Extract of Development Cells at Great Park (NN4d)

The extent to the boundaries of site Policy NN4 d is identified above (Map 1). An extract of the residential value boundaries map developed in 2012, for the same NGP

44 P04 masterplan area (NN4d) (See Map 3 below), indicates the area falls within both the urban High Mid and urban High profile areas. See Appendix 1 for the chronology of value profile area maps.

To the east of the A1 the early phases Cells I and H (Warkworth and Melbury) were completed in 2004 and 2010 and typical residential values were assessed to fall within the urban High area, whereas the remainder of the NGP area NN4d to the west of the A1 is yet to be completed and falls within the urban High Mid profile area. On this basis the NGP masterplan area (NN4d) to the west of the A1 is tested against the generic development appraisals for the Urban High Mid area, and consistent with the results in this profile area which indicates an overall negative residual value, the CIL charging Zone boundaries will thus be adjusted to reflect the evidence.

Land to the east of the A1, consistent with the overall positive headroom in the Urban High generic appraisals falls within the CIL charging Zone B boundary.

Map 3 Extract of Residential Profile Map (2012) for Policy Area NN4d (Newcastle Great Park)

Note: Extract from Figure 3 of V&D Report (page 15)

Newcastle Great Park Cell A (Policy NN4 a)

Lying within the NGP Development Area is Great Park Development Area NN4a as identified in Map 1. NN4a also known as Cell A, is currently undeveloped, and has existing employment (business and industry) use value given that it is identified for employment use in the signed s106 agreement for NGP (NN4d).

The Plan re-allocates land at Cell A (NN4a), for residential (approximately 880 dwellings) and education use which will create additional headroom for a typical development scheme. As can be seen in the extract of the commercial values profile Map 4 (2012) below, the NN4a area is included within the Urban Medium boundary.

Map 4 Extract of Commercial Profile Map (2012) for Policy Area NN4d (Newcastle Great Park)

45 P04

Given, the existing employment permission at Cell A, it is therefore appropriate to adopt the commercial Urban Medium value for economic viability testing. The assumed threshold value for the urban Medium commercial value area is £1m per hectare and is comparable to the residential urban Mid value area (See table J.3) section 3.2).

The generic residential schemes for the residential Urban Mid area indicates a negative residual value for the 100 unit scheme and a negative headroom per square metre for an average across the urban Mid area schemes appraised. Cell A at NGP (NN4a) has thus been assessed and treated the same as the residential urban Mid profile area and with insufficient headroom to justify a CIL charge, this area has been removed from the CIL Zone A boundary and will be charged at a £0 rate.

Neighbourhood Growth Area NN4b and NN4c

Newcastle Great Park Neighbourhood Growth Area expansion sites NN4b and NN4c are strategic Green belt release sites that lie directly to the west of NN4 d and NN4a and to the north east of the NN4d. These expansion sites are allocated for residential development and a change in use from existing agriculture use to residential use as a result of the adoption of the Core Strategy and Urban Core Plan will generate additional value. As indicated in Map 1 above, these sites are identified as Non urban High Mid residential profile area and, consistent with the evidence for Non-urban High Mid profile generic appraisals and the site specific appraisals, are included with the proposed Zone A.

46 P04 4.4 Non Residential Generic Appraisal Results

We have undertaken a further set of appraisals on each of the commercial use types. These have been carried out using a bespoke spreadsheet based appraisal model. As detailed in section 3. above these have used inputs are considered to be valid as at September 2014, and draw on the publically available comparable data to derive plot ratios (Appendix 7).

HEADROOM/m2 (RESIDUAL MINUS THRESHOLD VALUE) HIGH -NEWCASTLE LOW MEDIUM HIGH CENTRAL AREA INDUSTRIAL URBAN NIL NIL NIL N/A NON-URBAN NIL NIL NIL N/A OFFICES URBAN NIL NIL NIL NEGLIGIBLE NON-URBAN NIL NIL NIL N/A HOTELS URBAN NIL NIL 196 NIL NON-URBAN NIL NIL 494 N/A SHARED URBAN NIL NIL 188 124 ACCOMMODATION NON-URBAN NIL NIL 227 N/A RETAIL RETAIL WAREHOUSE URBAN 280 370 182 N/A NON-URBAN 322 580 623 N/A SUPERMARKET URBAN NIL 19 NIL NIL NON-URBAN NIL 251 389 N/A DISCOUNTER URBAN 59 NIL NIL NIL NON-URBAN NIL NIL NIL N/A SMALL RETAIL URBAN NIL NIL 370 N/A NON-URBAN NIL NIL 545 N/A (See below)

The Councils’ surveyors have, as can be seen above, undertaken separate appraisals in relation to discount supermarkets and ‘other’ supermarkets. In appraisal terms there is a rationale, as can be seen from the appraisal inputs, for undertaking this in town and country planning terms and also in the terms of the classification by the Valuation Office Agency for Business Rates assessment. There appears to be a correlation between the discount supermarkets in lower value areas and other supermarkets in higher value areas. Also in higher value areas outside of the city centre small retail also appears to have potential headroom. On this basis and the difficulties in providing ‘splits’ based on size and more specific use, we would recommend to the LPA that a simple rate is applied to convenience retail across the charging areas.

The summary non residential and residential appraisals are included in Appendix 8.

4.5 Focus on Specific Geographic Area

Newcastle Central Area

The Core Strategy and Urban Core Plan includes Key Sites allocated for mixed used schemes in the Urban Core (Newcastle) for which the Plan relies on for significant commercial development. Science Central and Stephenson Quarter (Policy C2 & D2) have planning permission and implementation has begun. East Pilgrim Street (Policy

47 P04 NC 2) is allocated for retail led (A1) development and mixed use offices (B1), Residential (C3), Student accommodation ( C4) and Leisure(D2).

The Council has undertaken development appraisals for residential, office, hotels, shared accommodation and supermarket schemes in City Centre (Newcastle Central Area Commercial Zone 1). The results of these appraisals are included in the tables above in sections 4.1 and 4.4. Office schemes indicated negligible headroom, hotels and supermarkets displayed nil headroom. This is in contrast to the significant headroom for shared accommodation.

Throughout the appraisals for all city centre development types we have applied an additional 5% City Centre abnormals owing to the additional costs of developments in this locality. In the City centre there are further additional costs which include potential further business acquisition costs - sites in the immediate core are likely to be in, at least part, beneficial use, potential oversailing issues, rights to light, legal restrictions on development and the like. In the Central Conservation Area, for example there are 836 listed buildings and 13 within East Pilgrim Street. An assessment of likely refurbishment/build costs associated with the listed buildings in this Key Site indicates capital build costs could fall within a wide range of £283- £2,420 per sqm, with some conversion costs expected to be 50% above BCIS/SPONS data.

We have carried out a specific detailed Argus appraisal on a notional retail City Centre Scheme. However, the inclusion of the above constraints did not provide sufficient certainty of sufficient headroom to justify the imposition of a CIL charge. Therefore the Council's surveyors have stepped back to consider accuracy of identifying a reliable and cautious threshold value for mixed use city centre schemes. On balance it is our opinion that in the city centre the viability is such and the variability in costs means that there is limited scope to provide reasonable certainty as to the appropriate headroom. The complexities of reliably testing such mixed use schemes and the importance of East Pilgrim Street to help deliver the majority of the City’s comparison retail floorspace to 2030 underlines the need for caution to ensure the CIL rates proposed does not seriously affect the delivery of the Plan.

In relation to new retail development, there is a rapidly changing retail market including a move to online stores; a greater use of the internet for supermarket shops; a reduction in the weekly supermarket spend; the sector rationalising its store presence; and the continuation of chains going into administration. The enabling/regeneration qualities make it appropriate to provide more of a viability cushion to this sector as a whole and even more so in a city centre location. Any recent retail activity of significant scale in Newcastle Central Area has been through conversion of existing buildings rather than new development. Landowners of mixed use sites will want the appropriate return on their investments and this has to exceed what they paid for the site.

Current office and retail rents are not driving enough value into new schemes to enable them to come forward with the exception of student accommodation and some hotel development where operators are prepared to take pre-lets. The student housing market, which is a buoyant investment market in the city, has put additional upward pressure on threshold values as the best opportunities are pursued. Uncertainty around development timescales in city centre locations will additionally impact on the finance attached to a development and reinforces the case for a zero charging rate.

48 P04 The ownership pattern in the city centre is complex and as a result it is difficult to envisage large new retail development other than in the instance of the refurbishment of existing stock in established areas (as has been occurring in Northumberland Street -including refurbishment works to the entrance to Eldon Square, Monument Mall and the new leisure offer being created in Eldon Square).

As previously mentioned the changing retail market has compounded the lack of viability of retail schemes to the extent that landowners who may have assembled sites in retail areas prior to the downturn in 2008 will need to look at complex mixed use schemes in order to realise threshold value expectations, or requirements.

The statements set out above are evidenced by way of reference to the Newcastle Local Plan Annual Monitoring Reports for 2007/8, 2008/9, 2010/12, 2012/13 and 2013-2014 (See website link in the Background Paper (P01)).

Significant new development in the city centre, as opposed to refurbishments, has required the intervention of the public sector. New office supply has been provided in Science Central and Stephenson Quarter, both of which have required public sector support. The report by Property Week11 supports the view set out above in respect of the office property sector and the competition with non-commercial uses (See Appendix10) .

The City Centre small retail appraisal has been added to this Submission version of the Annex at Appendix 8. In previous CIL consultations these results were not shown as it is considered highly unlikely that such a typology (a new unit of 279 sq m GIA), would be built as a new stand alone unit in a city centre location.

The small retail appraisal results clarified as part of the post DCS Retail Appraisal Review (see Appendix 11 for wider review) are now incorporated in this Annex as appropriate evidence providing further justification to the £0 rate for comparison retail in Newcastle Central Area. The added appraisal appended to this Appendix 8 shows that this development typology on its own in the City Centre results in a negative residual value and thus insufficient headroom to justify a CIL charge for small retail.

The opportunities for an infill site within the Newcastle Central Area are extremely limited. Should a unit be developed up to 279 sqm, it is considered it would be as a small proportion of a bigger mixed use development and would stand alongside other units of a similar size and possibly other higher value uses. If it is appraised as a stand alone unit it gives the false impression of there being significant headroom to pay CIL when the generic commercial appraisal assumptions are applied. In particular, when the benchmark value of £2,100,000 is multiplied by the 0.03ha site area required to bring forward a unit of this size it equates to £65,100 and if a prime rent of £600/sq m is applied, a positive headroom results. It is necessary to take a “step back”, as in reality if a unit of this size was to come forward, it would be part of a much bigger development where the benchmark land value would be much higher as it would represent the residual value of revenues generated by potentially a number of uses and the additional cost of buying in overriding interests and gaining vacant possession of existing properties. No two sites are ever the same, but this characteristic is greatly emphasized in a city centre location and therefore the generic approach that has been taken to other parts of the CIL assessment is not appropriate here.

49 P04 We have a recent example of developments within the centre of Newcastle where retail use is being proposed as part of a mixed use redevelopment (leisure/ student accommodation), but in a secondary location and very much ancillary to the main development (ie. 5.8% of total sqm of development) (Planning application reference 2014/0568/01/DET). The secondary location incorporates the demolition of a shopping centre that has suffered persistent voids (49% vacancy rate (2015)) and replacement with a hotel and student accommodation will help to pump prime the replacement of ground floor retail in the redeveloped scheme (note this vacancy rate is in contrast to that of the Primary Shopping Area at 14%, 2014-15). The ground floor retail units provide the vibrant street frontage appropriate in planning terms and helps support footfall within the Newcastle Central Area. It is recognised, however, that such units are likely to generate rents more in line with Zone 2 ( High Value) which when combined with the increased costs of development and city centre land values produces a negative residual value (as shown in the small retail City Centre appraisal).

Developments such as this which incorporate a small amount of retail use require higher value uses (such as student accommodation) to unlock these sites for redevelopment. We are not seeing large scale retail development coming forward in its entirety and any additional CIL charge would exacerbate this problem. Unless landowners are prepared to take a much reduced land price which is unlikely, it is only public sector held assets which could potentially come forward below Market Value where the economic benefits to the city in seeing a site developed significantly outweigh the price paid (e.g in circumstances where public sector intervention is required as a pump primer to private sector investment in the city centre such as the existing Gateshead and Newcastle Accelerated Development Zone status).

Gateshead Central Area

The newly designated Gateshead Commercial (Central Area) Zone 1 for charging includes Gateshead’s main shopping area and Gateshead Quays, and has arisen through a re-appraisal of this area by Gateshead Council.

This part of the Urban Core, including the quays area, contains a number of challenges and hurdles to development including listed buildings, high density/ mixed uses and a complex ownership pattern and set of restrictions. Gateshead Council is in the process of reviewing the cumulative costs of the recently developed Trinity Square development in the town centre. Whilst the scheme is anchored by a large Tesco supermarket on an institutional lease, the significant land assembly costs combined with the negative impact of retail units which have remained vacant or have required large incentives to attract tenants has meant that the Council do not believe this area should be subject to any additional, future costs which could adversely affect viability, and put the important regeneration and development priorities in this area at serious risk.

Evidence shows that there has always been a persistent high level of vacancy in Gateshead’s main central shopping area. Council surveys of the centre are summarised below, showing the context before and after the Trinity Square redevelopment (2014).

YEAR TOTAL NUMBER OF UNITS VACANCY % / VACANT UNITS

50 P04 2015 129 / 23 18%

2014 182 / 46 25%

2013 147 / 23 16% 2012 150 / 22 15%

2011 157 / 23 15%

2010 157 / 28 18%

2009 156 / 34 22%

Gateshead Council, Retail Surveys 2009-2015

The centre has recently been the focus for strategies to regenerate it, culminating in the Trinity Square redevelopment, referred to above, comprising a Tesco Superstore, new retail and commercial units, student housing and public open space. The development opened in 2014 and is reflected in the increased number of units, whilst the adopted Core Strategy and Urban Core Plan (March 2015) identifies a consolidated Primary Shopping Area (excluding the older High Street South area) and this is reflected in the reduction in the total number of units for 2015.

Despite the above the level of vacancy has remained high, reflecting a low level of viability generally, and uncertainty and difficulty in new units being let, with many of the newly provided Trinity Square units remaining vacant (in October 2015 recorded as 9 out of 33 units (29%)). This trend contrasts with vacancy levels in other centres in Gateshead and with the national average. The average for centres in Gateshead in 2014 was 12%, whilst the national average for vacancy in town centres was 10.4% in January 2015, an increase from October’s rate of 10.3%.

Thus, whilst the centre has undoubtedly improved in terms of the quality of its retail accommodation and environment, there remains concern regarding the number of empty units, and therefore the level of confidence in the centre and its ability to meet the needs of users particularly given the changing nature of the retail sector at present.

In addition, the ability to identify realistic threshold values is extremely challenging given in some cases multiple ownerships and this only exacerbates uncertainty. To reiterate this point further, the Council recently commissioned a demand study of the Council’s most prime site on Gateshead Quays to establish the appetite for a mixed use development. The study (GS08 Gateshead Quays Soft Market Test (June 2014)) involved consultation with the private sector development community both regionally and nationally. Feedback indicated that the Council should have no expectation around land value and the private sector wanted to know what the Council could bring

51 P04 to the table in the way of a covenant to ensure security of income or more direct subsidies – being a clear indication of the lack of development viability.

There is no appetite for speculative development and concern around the cost in time and money of a transfer slab between commercial and residential in a typical mixed used development and therefore a preference to create separate plots to minimise risk and uncertainty. Furthermore, a reluctance to engage in any onerous procurement process which would bring further cost and time to the process. Historically, the Council has encountered insurmountable constraints in bringing forward mixed use development on this prime site on the Quays which previously resulted in the withdrawal of a preferred bidder on 2 occasions who expressed concern over mounting development costs and uncertainty over the ability to secure the necessary rental and capital values.

Baltic Business Quarter will not form part of this new Zone 1 and will instead form part of the zone outside Zones 1 & 2 (see revised charging table). Upon review, it is felt that this location could generate enough headroom for retail warehousing above 280sq m. Whilst this site is designated for employment use within the Core Strategy and office development has recently been independently appraised as being unviable, should the designation change in the future the Council want the ability to capture CIL.

The identification of the Gateshead Commercial (Central Area) Zone therefore reflects these concerns.

52 P04 5. Update-Delivery

The Background Paper focusses on the overall evidence supporting the CIL rate setting, including the impact proposed rates would have on delivery of the local plan growth. NPPF indicates that the cumulative impact of local plan and national standards should not put implementation of the plan at serious risk, and should facilitate development throughout the economic cycle (paragraph 174).

Sensitivity analysis has been addressed, and given that the property market cycle is at a relatively low point with some indications of recovery, any upward improvement of sales and income could be anticipated. The graph below is taken from Halifax Building Society regional house price indices and illustrates the percentage change in house prices in both the North East and the UK that have been experienced since 1983. The north east typically follows the national trend with less extremes of peaks and troughs.

Source: Halifax Regional House Price Indices (All buyers), 2Q 2015

If, for example, the current assumed finance interest debit rate of 6.5% were to decrease by 2% this would have an impact of additional £600,000 available headroom for a typical scheme of 100 dwellings in the High Mid profile area.

53 P04 The financial information provided in the appraisals in this report are hypothetical, high level and prepared for the purposes of setting CIL only. They are based on a set of general assumptions, quantum of development and policy requirements as contained within the Core Strategy and urban Core Plan and supporting evidence. Although appropriate to use these figures for CIL rates setting, it does not mean that they necessarily represent the form of eventual development.

The residual land value represents the potential sum available to purchase current interests in the land, but no investigation has been carried out of costs required to obtain vacant possession of the site nor does it indicate the willingness of owners or occupiers to dispose of their interests. The appraisals that are summarised in this report are not formal ‘Red Book’ (RICS Valuation Professional Standards, Global and UK 2014) valuations and should not be relied upon as such.

No account has been taken of any potential title or other legal issues, nor in any further specific demolition costs over and above the abnormal costs detailed herein. It does not take into account the likelihood or otherwise of any demand at the present time for end uses. The extent of the scheme contemplated in this evidence is not defined in terms of any particular land ownerships.

54 P04 Appendices

56 P04 1. Viability Value Area Maps and Appraisal Data (Newcastle City Council and Gateshead Council) 1.1 Value Area Maps Residential

1.1a Profile Areas PDCS (2012) – indicates profile area boundaries and the Green Belt boundaries in the Newcastle upon Tyne Unitary Development Plan (1998)

57 P04 1.1b Profile Areas PDCS (2015) – indicates profile area boundaries remain the same overlayed with and the Green Belt boundaries in the Gateshead and Newcastle Core Strategy and Urban Core Plan (adopted March 2015)

58 P04 1.1c Profile area Zoom in for the Newcastle Central Area

59 P04 1.1d Profile Areas PDCS (2012) – indicates profile area boundaries and Green Belt boundaries in the Gateshead Unitary Development Plan (2007).

60 P04 1.1e Profile Areas PDCS1 (April 2015) – indicates profile area boundaries remain largely the same overlayed with the Green Belt boundaries in the Gateshead and Newcastle Core Strategy and Urban Core Plan (adopted March 2015).

61 P04 1.1f Profile Areas PDCS2 (October 2015) – indicates profile area boundaries remain largely the same

62 P04 Gateshead Community Infrastructure Levy Draft Charging Schedule February 2016 Residential Value Zones Map

414000 416000

412000

418000 425000 410000 429000 564000 564000 423000 562000 562000 560000 560000

429000 558000 412000 416000 418000 414000 420000

CIL Value Zones 425000

Green Belt Boundary 556000 0 1.5 3 6 Km 421000 High

High / Mid Contains Ordnance Survey data © Crown copyright and database right 2016 423000 © Crown copyright and database rights 2016 Ordnance Survey Mid Gateshead Council 100019132 554000 Mid / Low Low

63 1.1g Profile Areas DCS (Submission, February 2016) - includes an adjustment to the boundary between the high-mid and mid zones at High Spen and Highfield in west Gateshead. P04 Commercial

There has been minor changes to the values areas in Newcastle to reflect the Newcastle Central Area boundary and the revised airport boundary

1.1h Newcastle Commercial Values Profile Area – indicates profile area boundaries remain the same overlayed with the Green Belt boundaries in the Gateshead and Newcastle Core Strategy and Urban Core Plan (adopted March 2015)

64 P04 1.1i Gateshead Commercial Values Profile Area published in 2012

65 P04 1.1j Gateshead Commercial Values Profile Area published in April 2015, including an amendment to profile in the Central Area based on up to date evidence, which remains unchanged for the current consultation (see inset below).

66 P04 1.1k Gateshead Commercial Values Profile Areas includes an amendment to the profile of the Central Area based on up to date evidence, as published in April 2015, and largely unchanged in the October 2015 version below (including the inset).

67 P04 1.1l Gateshead Central Area

68 P04 Appendix 2 - Previous Joint CIL and Viability Consultation Events

There were 2 key consultation events undertaken in 2012-13. The first was an open stakeholder and public consultation breakfast meeting organised during the PDCS CIL consultation ( 2012) and the second was a roundtable event with stakeholders organised by RICS on viability and CIL matters in 2013.

2.1 Joint Gateshead Council and Newcastle City Council Community Infrastructure Levy Breakfast Consultation Meeting (19 July 2012)

Attendance

Name Organisation

Heather Markham Ward Hadaway Peter Kay Ouseburn Trust Sophie Evans Environment Agency Lucy Mo Environment Agency Neil Barker MacKellar Architecture Stephen Jobey S·A·J Transport Consultants Ltd Paul Whiteley S·A·J Transport Consultants Ltd Sarah Armstrong Barratt Homes NE Steve Willcock Taylor Wimpey NE Caroline Mulloy Northumberland County Council Alan Hunter English Heritage

Lee Crawford W A Fairhurst & Partners Tom Quiqley Newcastle Citizens Advice Bureau Michelle Robinson Durham County Council Cllr Nelis Blakelaw & N Fenham Parish Council Gerry Choat Story Homes Stephen Potts Richard Serra Savills Philip James Taylor Wimpey NE Nick Graham Nathaniel Lichfield & Partners Linzi Milley Sunderland Council Joe Ridgeon George F. White Phil Toal Keepmoat Gillian Roll NELEP

69 P04 Andrea King South Tyneside Gill Telford-Cooke South Tyneside Neil Smith Ward Hadaway Tom Collins Signet Planning John Urquhart Save Gosforth Wildlife Jane Wallis Gentoo Homes Emma Bond Gentoo Homes Chris Checkley Checkley Planning Robin Atkin Ward Hadaway Jon Clapham Department for Work and Pensions Trevor Thurlow Northumbria University Rachel McNutt The Adderstone Group

70 P04 Questions and Answers

Question Answer

John Urquhart – If you propose that CIL Any problems with surface water and Save Gosforth contributions will be sewage will normally be met by the Wildlife £1000 per property and the developers. CIL is intended for the levy will be added extras, £88 per Sq/m then how do for example, new schools, health those figures tally? What is the centres, roads, etc. effect on the resulting profits? In regards to sewage problems The figure of £1000 quoted in the in Newcastle what percentage presentation refers to the historic of the levy will go towards a average amount of S106 contributed new sewerage per property in our higher value system? areas.

Richard Serra - In relation to retail, there are Regulation 13 in CIL states that you Savills different charging zones for can set different rates by use and convenience and area based on viability. comparison, are you sure this is sound following recent decision in Poole, Dorset?

Richard Serra - In areas such as Manchester Within the Viability Report, Savills they have decided not to appraisals were undertaken that charge CIL on commercial could be compared against historic land, could CIL impact on values, and potential changes to potential development here? values in the future. Therefore, these rates should not put us at a disadvantage when it comes to future development.

Steve Willcock – In residential areas There is a lower rate in Zone B as it Taylor Wimpey properties in Zone B have covers established residential areas higher values than those in and hence land for residential Zone A development will have a higher but the charges are the benchmark value than land in opposite way round. unestablished areas

71 P04 This seems like an anomaly. - the Viability Report details this. It is There are some areas in Zone a necessarily broadbrush approach A are good but not all that can’t take every site issue into are. The Zone A figure of account - we need to strike the £9000 per plot and correct balance in respect of viability. £110000 per acre is a big chunk. Will land owners The viability appraisals indicate that accept this? there is sufficient head room in Zone A to enable the absorption of these extra costs. The Viability Report details this

Sophie Evans – Which projects will the CIL CIL won’t pay for everything, the Environment revenues be used for? Other Infrastructure Delivery Plan will Agency Councils have looked at identify key projects for the CIL infrastructure needs first revenues. There will be a balance before looking at viability, you struck between collecting CIL and have looked at it the other way attracting development. We are not round. working out the cost of potential projects and basing the CIL charges based on those figures.

Neil Barker – Outside of Zones 1&2 there The Section 106 regulations MacKellar will be no CIL charges, so will mitigate against the impact of Architecture Section 106’s be increased in development, and can still be these areas to compensate? negotiated on an individual basis. The regulations will stay the same and not be increased to compensate.

Gerry Choat – When will the CIL The timeframes and details for Story Homes revenues be collected? collecting CIL are all detailed in the draft developers guide. We are proposing that CIL will be paid in instalments.

72 P04 1.0 RICS Roundtable Event on Viability in Newcastle Gateshead (3 June 2013)

Event Organiser: RICS Policy Manager - Geoff White Chair – David Furniss- BNP Paribas Aims for the event

1. To make the most of collective knowledge 2. To provide strategic advice on the viability assumptions developed by NewcastleGateshead. 3. To reach consensus on residential and commercial viability assumptions. 4. Open and honest discussion, informed by appropriate evidence. 5. To reach a cross section of surveyors and representatives of lenders, small and large scale developers, land owners and investors.

Timescales

The conclusions of the roundtable will inform the drafting of the Newcastle Gateshead Viability Assessment (stage 2), supporting technical evidence underpinning the joint Core Strategy and Urban Core Plan (Local Plan) and the Community Infrastructure Levy (CIL) Draft Charging schedules for both authorities.

Attendance:

Chair David Furniss, BNP Paribas

Stephen Litherland (Bellway); Steve Wilcock (Taylor Wimpey), Nick Graham (NLP), Chris Harrison (NLP), Neil Milburn (Barratts), Adrian Hicks (Muckle LLP), Adam Surfontein (Hanro), Rebecca Howe (Saville), Greg Davidson (Knight Frank), Phil Barnes (NLP), James Platts (Knight Frank), Bill Naylor, Geoff White (RICS NE), Neil Wilkinson (Gateshead Council), Andrew Sloan (Gateshead Council), Paul Scaplehorn (Newcastle City Council), Kathy Verlander (Newcastle City Council), Paul Scaplehorn outlined the residual valuation methodology adopted in the development Newcastle City Council’s Viability Model , and as used by both Gateshead and Newcastle Councils.

Points of Discussion on Viability Assumptions

There was a general discussion on the proposed approach to be taken by the authorities in setting CIL rates and the following comments were raised:

A) Clarification that the Local Plan (LP) strategy would be realistic, with growth related infrastructure needs planned and costed rather than a strategy developed to pay for current strategic infrastructure needs was sought. CIL rates should not be set at rates where development is stymied.

 It was indicated that CIL rates were to be set in accordance with CIL legislation and guidance, thus ensuring that developers contribute to the mitigation of the impact of development on strategic infrastructure whilst not adversely affecting the economic viability of development overall.

73 P04  The Councils’ have followed the Harman approach in setting a viability’ cushion’ or buffer so as not to set a CIL rate at the margin of viability.

B) It was also indicated that viability assumptions varies from site to site so that setting general assumptions was quite difficult.

C) It was acknowledged that engagement forums such as this could be really powerful. In Leeds it was alleged that commercial engagement through a property forum contributed the evidence that led the City council to reduce its proposed office rate from £90 to £40 p.m.

It was accepted that CIL would be challenging, however, varying rates could be justified for instances, such as, varying valuation by geography.

D) The approach taken by the authorities is to aim to in general not charge CIL at a rate higher than current S106 pooled contributions. However, they are 2 different mechanisms and they are applied differently.

Residential Values

1. There was a discussion between stakeholders with no overall consensus of opinion on how best to set valuation for CIL purposes.

2. Reference was made to a recent appeal decision in Reading (no reference provided) and cautioned against setting geographic profile areas where this would stifle higher value residential schemes coming forward in lower value profile areas.

 However, it was indicated that CIL would not prejudice such a high value scheme coming forward as any CIL rate in a low profile area would tend to be low or zero.

3. Another stakeholder indicated he was preparing some evidence ion revenues to send to the Councils shortly.

Residential Threshold/Benchmark Values

1. 2 stakeholders queried the difference between urban and greenfield threshold values. With the urban threshold values considerably higher than the greenfield sites

 It was acknowledged that the infrastructure costs for the development of a greenfield strategic site was capable of being higher than a site in the urban area served by existing infrastructure.

2. The lack of transaction comparables evidence in Newcastle was accepted as a hindrance in setting realistic threshold values.

3. One suggestion was to use £242/ac. (£600,000/ha.) for High Mid greenfield sites before tax for net site area. Another indicated the value should be nearer to the corresponding urban threshold for the profile area. And a further stakeholder thought £800,000/ha. would be about right.

74 P04 Paul Scaplehorn displayed a graph illustrating % GDV costs for a notional residential scheme for a strategic greenfield site. The graph would be used in the forthcoming Council Viability report. It was thought to be about right.

Commercial Assumptions

1. There was a general discussion regarding the Councils’’ request for any further up to date comparables that stakeholders could provide to ensure assumptions are realistic.

It was considered by a number of individuals that the data was out of date. For instance there was a discussion on the average void period for offices. One suggestion was 3 years another 45 months (on a 10 year period).

A stakeholder indicated offices were roughly 50:50 speculative/prelet currently. Typically at 18 month letting void and 30 month incentive on a 10 year lease.

Rentals and Yields for Commercial Schemes

1. A stakeholder indicated that office rentals were recently £10 at Baltic Park and £15 at Baltic Place (Gateshead). This could be converted to £107- 161/sq. m.

Build Costs Data

1. There was a general agreement that BCIS was the correct data source to use.

2. However, one stakeholder was concerned that the residential costs would be too low. It was indicated that BCIS is measure of cost above the DPC only and if costs are too low externals allowance could also be too low. He had indicated an all in one cost of £140 p sqm in his representations to Durham County Council previously.

3. A further stakeholder indicated warehouse costs were too low.

Next Steps

The Chair suggested and this was greed that:

- On residential schemes as stakeholders were already providing responses to the Council they continue to do so. - On commercial office & retail schemes, as Leeds stakeholders were able to influence a change in CIL rates- should local stakeholders be prepared to undertake some work to provide a consensus view from commercial property sector to the Councils this would be beneficial. This could be through the existing G9 and Developing Consensus Fora. - The Chair offered to co-ordinate further focused sessions on commercial uses (retail and office) either with the Councils or feeding back to the Councils, if there was interest to do so. - Paul Scaplehorn agreed to provide a pack of commercial data for the commercial property groups to consider.

75 P04 Note to Reader- The Councils’ would still welcome the input of the commercial stakeholders to help review the current PDCS documents and evidence.

76 P04

Appendix 3 - Building Cost Information Service Data Extracts and Known Land and Property Transactions Data 2001-2014

77 P04 78 P04 79 P04 Appendix 4 - House Values, House Sales Known Land and Property Transactions Data

4.1 Newcastle City Council

4.1.1 Newcastle City wide– Land Registry Price Paid Data 2007-14

Average of price_paid Column Labels Row Labels D F S T Grand Total 2007 £326,999 £139,916 £168,526 £170,390 £170,250 2008 £357,663 £142,645 £175,408 £169,544 £177,217 2009 £310,074 £128,762 £167,118 £159,253 £168,954 2010 £299,722 £125,648 £180,288 £168,436 £172,857 2011 £294,773 £118,857 £160,600 £160,286 £163,619 2012 £293,490 £116,397 £170,871 £158,742 £168,023 2013 £281,030 £119,494 £167,509 £163,663 £169,517 2014 £302,925 £120,121 £181,443 £171,115 £174,320

4.1.2 Newcastle Number of House Sales by Type 2007-14

2,500

2,000

1,500 Detached Flat

1,000 Semi detached Terrace 500

0 2007 2008 2009 2010 2011 2012 2013 2014

80 P04 4.1.3 Newcastle Average House Prices by Type 2007-14

£400,000

£350,000

£300,000

£250,000 Detached

£200,000 Flat Semi detached £150,000 Terrace £100,000

£50,000

£0 2007 2008 2009 2010 2011 2012 2013 2014

4.2 Gateshead Council

4.2.1 Gateshead– Land Registry Price Paid Data 2007-14

2007 2008 2009 2010 2011 2012 2013 2014 Detached £214,112 £228,008 £199,143 £189,668 £211,840 £209,872 £209,372 £239,710 Flat £101,830 £96,715 £93,166 £91,058 £85,587 £91,726 £90,859 £95,992 Semi £143,194 £135,122 £131,475 £131,849 £126,349 £128,401 £135,044 £145,313 Terrace £130,840 £123,718 £123,291 £124,418 £117,253 £125,499 £132,696 £128,212

4.2.2 Gateshead Average House Prices by Type 2007-14

Gateshead House Prices by Type £300,000

£250,000

£200,000 Detached

£150,000 Flat Semi £100,000 Terrace

£50,000

£0 2007 2008 2009 2010 2011 2012 2013 2014

81 P04 4.3 Newcastle New Build Sales Survey Data

The following survey data was taken from public information sources available in August 2014. The data has been collated by garage categories to align with BCIS cost data categorisation.

NEWCASTLE NEW BUILD SALES SURVEY ‐ Average Sales per sqm (AUGUST 2014) VALUE AREA LOW LOW MID MID HIGH MID HIGH SALES £/SQ MSALES £/SQ MSALES £/SQ MSALES £/SQ MSALES £/SQ M 2 bed 2 bed 2 bed 2 bed 2 bed detached garage detached garage detached garage detached garage detached garage integral garage integral garage integral garage integral garage integral garage no garage no garage no garage no garage no garage

3 bed 3 bed 3 bed 3 bed 3 bed £1,833 detached garage detached garage detached garage detached garage detached garage integral garage £1,917 integral garage £2,081 integral garage £2,674 integral garage integral garage £1,660 no garage £1,841 no garage £2,465 no garage £2,140 no garage no garage

4 bed 4 bed 4 bed 4 bed 4 bed detached garage £1,967 detached garage detached garage detached garage detached garage integral garage £1,850 integral garage £1,807 integral garage £2,440 integral garage integral garage no garage no garage £2,350 no garage £2,238 no garage no garage

5 + bed 5 + bed 5 + bed 5 + bed 5 + bed detached garage detached garage detached garage detached garage detached garage integral garage integral garage integral garage £2,284 integral garage integral garage no garage no garage no garage £2,041 no garage no garage

82 P04 Appendix 5: Known Land and Property Transactions 5. 1 Local Land and Property Transaction Data: Newcastle Local Land Transactions Undeveloped sites -previously outside the urban area (Green Belt) Newcastle City Feb-15

Title ( LR ref.) Transaction and any date ( & Adjusted associated valuation date Site Area price/ha. to net No. transactions if different) Title transferred to Location Land Status (ha.) Price Price/Ha. equivalent Profile Area Comments

1. agricultural- uplift to residential 2. agriculture with PP for residential ( majority built now) 3. 1. 14.617 2. 4.183 1. Upper Callerton / Former pit only small area 3. 3.168 total = 18.8Ha. For 1.TY 240135 13/10/2001 Kenton bank Foot NN1/2 part of developed NGP 1&2 only 2. TY220488 (valuation 16 (part) 2./3. NGP Cell G, majority Excluded site 3. as thought to 1 3. TY222542 July 2001) Bryant Homes masterplan area. greenspace /SuDs 18.8 505,125 26,868 41,336 High Mid be largely undevelopable School land sold for Childcare Enterprise NGP- Brunton Nursey nursery education 2 TY472964 10-Jan-12 Limited school purposes; urban 0.26 200,000 769,231 1,183,432 High Mid Lease from NCC 21/08/2013, (valuation 31 William Leech agricultural land -uplift to 3 TY124062 March 2004) (Investments) ltd. NN3 Newbiggin hall residential 17.22 127,200 7,387 11,364 Mid Butterlaw Farm, Middle 4 TY362400 04-Apr-00 Ms Johnson Callerton NN1 ( part of) Farm house and curtilage 0.085 40,000 470,588 723,982 High Mid

NN2 Kingston park/Kenton Option Taylor Wimpey- Bank Foot (part). West of agricultural land-uplift to Value within a band range 5 TY482707 18-Jul-14 Brown Falcons' Rugby Ground be residential 5.506 500,001 90,810 139,708 High Mid 500,001-1,000,000

Site is 5.506 ha. If you take into account the net: gross calculation., this would reset the range 100:65 gross: net for Neighbourhood GAs ) = 3.579 1,000,000 181,620 279,415 net ha. AVERAGE (1/3/5higher) 71,958 110,705

83 P04 5.2 Local Land and Property Transaction Data: Gateshead Local Land Transactions Gateshead

Title ( LR ref.) and Transaction date ( & Adjusted any ascoiated valuation date if Site Area Price/ha. to net No. transactions different) Location Land Status (ha.) (app.) Price Price/Ha. equivalent. Profile Area Comments

The value as at 24 October 2008 Comprises in part wa s stated to be Land adjoining established nursery, between Pennyfine Road, open land and wooded £200,001 and 1 TY474949 24/10/2008 Sunniside area. 1.79 £500,000. £ 111,732 £ 172,414 High Mid On basi s of £2 00,001

Mix of birch woodland, The price stated birch and gorse scrub to have been on rough grassland, paid on 5 July interspersed with dog 2006 for the rose, hawthorn, broom, land in this ti tle and other deciduous and in TY162352, land on the South side tree species, indicative TY224488 and of South View West, of ea rlier tree and TY333023 was 2 TY160432 05/07/2006 Highfield, Rowlands Gill shrub planting. 6.25 £365,000. £ 58,400 £ 89,901 High ‐Mid

The price stated to have been paid on 5 July 20 06 for the land in this title and in TY160432, TY162352 and 10 Highfield Road, TY333023 was 3 TY224488 05/07/2006 Rowlands Gill 6.25 £365,000. £ 58,400 £ 89,9 01 Hi gh ‐Mid Site area is approximate 2 The Limes and land to The value the rear, Highfield stated as at 13 Road, Rowlands Gill June 2002 was Mid / High ‐ 4 TY387895 13/02/2002 (NE39 2LY) 0.89 £80,000 £ 89,888 £ 138,288 Mi d

The price stated land lying to the north‐ Sit e comprises a small to have been west of 54 Derwent garage and storage paid on 6 April 5 TY414396 06/04/2004 Street, Chopwell area, and scrub 0.03 2004 was £6,000£ 200,000 £ 300,000 Mid

Narrow area of land The pri ce stated adjoinign field to have been land lying to the west boundary and linking to paid on 19 of Mill Road, Chopwell, Whinney Leas at the October 2012 6 TY505733 19/10/2012 Newcastle Upon Tyne. northern edge area 0.09 was £11,360 £ 126,222 £ 194,188 Mid The price stated Area of rough pasture to have been land lying to the west and hay crop fields wi th paid on 12 Ma y of Mill Road, Chopwell, mature hawthorn 20 05 was 7 TY434057 12/05/2005 Newcastle Upon Tyne. hedge enclosure, 24.97 £130,00 0 £ 5,206 £ 8,009 Mid AVERAGE£ 92,835 £ 141,814

84 P04

1 Bulk Portfolio SOLD

8 Hospitality buildings. Sale Date: 01/02/2013 # Properties: 8 Sale Price: £620,000,000 - Confirmed Total Size: - Price/SF: - Total Land Area: - Price/Room: £501,618 # of Rooms: 1236 Reversionary Yield: - Sale Conditions: Bulk/Portfolio Sale, Distress Sale

Comp ID: 2721606 Research Status: Confirmed 2 Bulk Portfolio SOLD

26 Buildings, having total size of 869,704 SF. Sale Date: 26/03/2014 (97 days on mkt) # Properties: 26 Sale Price: £175,000,000 - Confirmed Total Size: 869,704 SF Price/SF: - Total Land Area: -

Reversionary Yield: - Sale Conditions: Bulk/Portfolio Sale, Distress Sale Net Initial Yield: 9.30% Comp ID: 3234186 Research Status: Confirmed 3 Bulk Portfolio SOLD

54 Buildings, having total size of 1,429,860 SF. Sale Date: 04/08/2014 # Properties: 54 Sale Price: £128,820,000 - Confirmed Total Size: 1,429,860 SF Price/SF: - Total Land Area: -

Reversionary Yield: - Sale Conditions: Bulk/Portfolio Sale Net Initial Yield: 10.00% Comp ID: 3232842 Research Status: Confirmed 4 Bulk Portfolio SOLD

28 Buildings, having total size of 1,154,025 SF. Sale Date: 07/02/2014 # Properties: 28 Sale Price: £75,000,000 - Confirmed Total Size: 1,154,025 SF Price/SF: - Total Land Area: -

Reversionary Yield: - Sale Conditions: Bulk/Portfolio Sale Net Initial Yield: 8.00% Comp ID: 2984130 Research Status: Confirmed 5 Multi-Property SOLD

2 Industrial buildings in Newcastle Upon Tyne, TWR, having total size of 166,151 SF. Sale Date: 01/04/2014 # Properties: 2 Sale Price: £6,900,000 - Confirmed Total Size: 166,151 SF Price/SF: £41.53 Total Land Area: -

Reversionary Yield: - Sale Conditions: - Net Initial Yield: 8.25% Comp ID: 3020724 Research Status: Confirmed 6 Bulk Portfolio SOLD

7 Industrial buildings, having total size of 99,722 SF. Sale Date: 01/07/2014 # Properties: 7 Sale Price: £5,430,000 - Confirmed Total Size: 99,722 SF Price/SF: £54.45 Total Land Area: -

Reversionary Yield: - Sale Conditions: Bulk/Portfolio Sale Net Initial Yield: 8.00% Comp ID: 3218522 Research Status: Confirmed

Copyrighted report licensed to Newcastle City Council - 584768. 01/04/2015 Page 1

85 P04 7 Bulk Portfolio SOLD

5 Office buildings in Gateshead, TWR, having total size of 18,346 SF. Sale Date: 01/06/2013 # Properties: 5 Sale Price: £2,066,000 - Confirmed Total Size: 18,346 SF Price/SF: £112.61 Total Land Area: -

Reversionary Yield: - Sale Conditions: Bulk/Portfolio Sale Net Initial Yield: 11.77% Comp ID: 2802020 Research Status: Confirmed 8 Multi-Condo SOLD

2 Office Units in Gateshead, TWR, having total size of 3,850 SF. Sale Date: 30/09/2014 # Properties: 2 Sale Price: £695,000 - Confirmed Total Size: 3,850 SF Price/SF: £180.52 Total Land Area: -

Reversionary Yield: - Sale Conditions: -

Comp ID: 3154838 Research Status: Confirmed 9 Multi-Condo SOLD

2 Office Units in Newcastle Upon Tyne, TWR, having total size of 5,817 SF. Sale Date: 01/10/2013 (389 days on mkt) # Properties: 2 Sale Price: £450,000 - Confirmed Total Size: 5,817 SF Price/SF: £77.36 Total Land Area: -

Reversionary Yield: - Sale Conditions: -

Comp ID: 2965642 Research Status: Confirmed 10 Portfolio PENDING

3 Properties. Asking Price: £330,000 Sale Type: Investment Price/SF: £39.54 # Properties: 3 Days on Market: 443 Total Size: 8,345 SF Sale Status: Pending Total Land Area: -

Net Initial Yield: - Sale Conditions: -

11 Multi-Property SOLD

2 Buildings in Newcastle Upon Tyne, TWR, having total size of 9,692 SF. Sale Date: 30/04/2013 (433 days on mkt) # Properties: 2 Sale Price: £316,000 - Confirmed Total Size: 9,692 SF Price/SF: - Total Land Area: -

Reversionary Yield: - Sale Conditions: -

Comp ID: 2992616 Research Status: Confirmed 12 Multi-Condo SOLD

2 Industrial Units in Gateshead, TWR, having total size of 4,092 SF. Sale Date: 27/05/2014 # Properties: 2 Sale Price: £165,000 - Confirmed Total Size: 4,092 SF Price/SF: £40.32 Total Land Area: -

Reversionary Yield: - Sale Conditions: -

Comp ID: 3035092 Research Status: Confirmed

Copyrighted report licensed to Newcastle City Council - 584768. 01/04/2015 Page 2

86 P04

13 Portfolio PENDING

4 Properties. Asking Price: £145,000 Sale Type: Investment OR Owner/User Price/SF: £107.49 # Properties: 4 Days on Market: 274 Total Size: 1,349 SF Sale Status: Pending Total Land Area: -

Net Initial Yield: - Sale Conditions: -

14 Portfolio PENDING

3 Properties. Asking Price: £145,000 Sale Type: Investment OR Owner/User Price/SF: £118.27 # Properties: 3 Days on Market: 274 Total Size: 1,226 SF Sale Status: Pending Total Land Area: -

Net Initial Yield: - Sale Conditions: -

15 Multi-Condo SOLD

3 Office Units in Newcastle Upon Tyne, TWR, having total size of 1,394 SF. Sale Date: 23/06/2014 (342 days on mkt) # Properties: 3 Sale Price: £140,000 - Confirmed Total Size: 1,394 SF Price/SF: £100.43 Total Land Area: -

Reversionary Yield: - Sale Conditions: -

Comp ID: 3056336 Research Status: Confirmed 16 Multi-Condo SOLD

2 Office Units in Newcastle Upon Tyne, TWR, having total size of 2,536 SF. Sale Date: 01/09/2013 # Properties: 2 Sale Price: £120,000 - Confirmed Total Size: 2,536 SF Price/SF: £47.32 Total Land Area: -

Reversionary Yield: - Sale Conditions: -

Comp ID: 2853312 Research Status: Confirmed 17 Portfolio PENDING

2 Properties. Asking Price: £105,000 Sale Type: Owner/User Price/SF: £60.94 # Properties: 2 Days on Market: 917 Total Size: 1,723 SF Sale Status: Pending Total Land Area: -

Net Initial Yield: - Sale Conditions: -

18 Multi-Condo SOLD

2 Industrial Units in Gateshead, TWR, having total size of 5,390 SF. Sale Date: 31/01/2013 (57 days on mkt) # Properties: 2 Sale Price: £90,000 - Confirmed Total Size: 5,390 SF Price/SF: £16.70 Total Land Area: -

Reversionary Yield: - Sale Conditions: -

Comp ID: 2713423 Research Status: Confirmed

Copyrighted report licensed to Newcastle City Council - 584768. 01/04/2015 Page 3

87 P04

19 Multi-Condo SOLD

2 Office Units in Gateshead, TWR, having total size of 1,081 SF. Sale Date: 01/11/2013 (151 days on mkt) # Properties: 2 Sale Price: - Total Size: 1,081 SF Price/SF: - Total Land Area: -

Reversionary Yield: - Sale Conditions: -

Comp ID: 2905923 Research Status: Research Complete 20 Multi-Condo SOLD

3 Office Units in Newcastle Upon Tyne, TWR. Sale Date: 01/04/2013 (377 days on mkt) # Properties: 3 Sale Price: - Total Size: - Price/SF: - Total Land Area: -

Reversionary Yield: - Sale Conditions: -

Comp ID: 2723834 Research Status: In Progress 21 Multi-Condo SOLD

2 Office Units in Gateshead, TWR, having total size of 2,755 SF. Sale Date: 01/03/2014 (1,201 days on mkt) # Properties: 2 Sale Price: - Total Size: 2,755 SF Price/SF: - Total Land Area: -

Reversionary Yield: - Sale Conditions: -

Comp ID: 3108600 Research Status: In Progress 22 Multi-Condo SOLD

3 Retail Units in Gateshead, TWR, having total size of 1,920 SF. Sale Date: 01/08/2014 (179 days on mkt) # Properties: 3 Sale Price: - Total Size: 1,920 SF Price/SF: - Total Land Area: -

Reversionary Yield: - Sale Conditions: -

Comp ID: 3114244 Research Status: In Progress 23 Portfolio PENDING

8 Hospitality buildings, having total size of 49,296 SF. Asking Price: - Sale Type: Investment Price/SF: - # Properties: 8 Days on Market: 118 Total Size: 49,296 SF Sale Status: Pending Total Land Area: 0.82 AC Price/Room: - # of Rooms: 359 Net Initial Yield: 7.43% Sale Conditions: -

24 Former Ringtons Premises - Abbotsford Rd SOLD

Gateshead, NE10 0EX Tyne And Wear County Sale Date: 01/09/2014 (375 days on mkt) Bldg Type: IndustrialWarehouse Sale Price: - Year Built/Age: Built 1980 Age: 34 Price/SF: - NIA: 4,769 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 3137888 Sale Conditions: - Research Status: Research Complete

Copyrighted report licensed to Newcastle City Council - 584768. 01/04/2015 Page 4

88 P04

25 Baltimore House - Abbotts Hill SOLD

Gateshead, NE8 3DF Tyne And Wear County Sale Date: 30/01/2014 (290 days on mkt) Bldg Type: Office Sale Price: - Year Built/Age: Built 2002 Age: 11 Price/SF: - NIA: 24,315 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 3025899 Sale Conditions: - Research Status: Research Complete 26 Former Ronald Thompson - Albany Rd SOLD

Gateshead, NE8 3EH Tyne And Wear County Sale Date: 09/09/2013 (125 days on mkt) Bldg Type: IndustrialWarehouse Sale Price: £50,000 - Confirmed Year Built/Age: Built 1970 Age: 43 Price/SF: £13.25 NIA: 3,774 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2833026 Sale Conditions: - Research Status: Confirmed 27 Christison Particle & Technologies Ltd - Albany Rd SOLD

Gateshead, NE8 3AT Tyne And Wear County Sale Date: 10/04/2014 Bldg Type: IndustrialWarehouse Sale Price: £38,000 - Confirmed Year Built/Age: Built 1999 Age: 14 Price/SF: £7.07 NIA: 5,375 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 3038460 Sale Conditions: Auction Sale Research Status: Confirmed 28 3 Alwinton Rd SOLD

Newcastle Upon Tyne, NE27 0UA Tyne And Wear County Sale Date: 01/03/2013 Bldg Type: RetailStorefront Retail/Residential Sale Price: £125,000 - Confirmed Year Built/Age: Built 1950 Age: 63 Price/SF: £253.55 NIA: 493 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2693675 Sale Conditions: - Research Status: Confirmed 29 Anderson Grn SOLD

Gateshead, NE9 5BQ Tyne And Wear County Sale Date: 04/06/2014 (481 days on mkt) Bldg Type: Office Sale Price: £85,000 - Confirmed Year Built/Age: Built 1990 Age: 24 Price/SF: £146.30 NIA: 581 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 3043838 Sale Conditions: Auction Sale Research Status: Confirmed 30 City Gate House - Bath Ln SOLD

Newcastle Upon Tyne, NE4 5SQ Tyne And Wear County Sale Date: 02/09/2013 (326 days on mkt) Bldg Type: Office Sale Price: £500,000 - Confirmed Year Built/Age: Built 1881 Renov 2014 Age: 132 Price/SF: £142.65 NIA: 3,505 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2827657 Sale Conditions: - Research Status: Confirmed

Copyrighted report licensed to Newcastle City Council - 584768. 01/04/2015 Page 5

89 P04

31 105 Bensham Rd PENDING

Gateshead, NE8 1PU Tyne And Wear County Asking Price: £160,000 Sale Type: Owner/User Price/SF: £174.86 Bldg Type: RetailStorefront Retail/Residential Days on Market: 274 Bldg Status: Sale Status: Pending NIA: 915 SF

Net Initial Yield: - Sale Conditions: -

32 Q8 - Quorum Business Park - Benton Ln SOLD

Newcastle Upon Tyne, NE12 8BU Tyne And Wear County Sale Date: 01/05/2014 Bldg Type: Office Sale Price: £17,500,000 - Confirmed Year Built/Age: Built 2005 Age: 9 Price/SF: £174.38 NIA: 100,353 SF

Reversionary Yield: - Net Initial Yield: 8.10% Comp ID: 3226760 Sale Conditions: - Research Status: Confirmed 33 Q16 - Quorum 16 - Benton Ln SOLD

Newcastle Upon Tyne, NE12 8BX Tyne And Wear County Sale Date: 23/05/2013 (125 days on mkt) Bldg Type: Office Sale Price: £3,550,000 - Confirmed Year Built/Age: Built 2004 Age: 9 Price/SF: £113.63 NIA: 31,243 SF

Reversionary Yield: - Net Initial Yield: 13.25% Comp ID: 2754455 Sale Conditions: - Research Status: Confirmed 34 Q5 - Quorum 5 - Benton Ln SOLD

Newcastle Upon Tyne, NE12 8EZ Tyne And Wear County Sale Date: 06/01/2014 (182 days on mkt) Bldg Type: Office Sale Price: £2,450,000 - Confirmed Year Built/Age: Built 2005 Age: 9 Price/SF: £39.19 NIA: 62,508 SF

Reversionary Yield: - Net Initial Yield: 10.50% Comp ID: 2935202 Sale Conditions: - Research Status: Confirmed 35 Q6 - Quorum 6 - Benton Ln SOLD

Newcastle Upon Tyne, NE12 8EZ Tyne And Wear County Sale Date: 25/03/2013 (830 days on mkt) Bldg Type: Office Sale Price: £1,250,000 - Confirmed Year Built/Age: Built 2009 Age: 3 Price/SF: £24.64 NIA: 50,725 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2713869 Sale Conditions: - Research Status: Confirmed 36 Former Salvation Army HQ - Benton Ln PENDING

Newcastle Upon Tyne, NE12 8EW Tyne And Wear County Asking Price: £250,000 Sale Type: Owner/User Price/SF: £99.80 Bldg Type: Office Days on Market: 485 Bldg Status: Sale Status: Pending NIA: 2,505 SF

Net Initial Yield: - Sale Conditions: -

Copyrighted report licensed to Newcastle City Council - 584768. 01/04/2015 Page 6

90 P04

37 Arcadia House - Benton Ln SOLD

Newcastle Upon Tyne, NE12 8EW Tyne And Wear County Sale Date: 31/07/2013 (237 days on mkt) Bldg Type: Office Sale Price: - Year Built/Age: Built 1997 Age: 16 Price/SF: - NIA: 5,544 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2809160 Sale Conditions: - Research Status: In Progress 38 Royal Buildings - 11-13 Bigg Mark SOLD

Newcastle Upon Tyne, NE1 1UN Tyne And Wear County Sale Date: 04/11/2013 (201 days on mkt) Bldg Type: Office Sale Price: - Year Built/Age: - Price/SF: - NIA: 1,860 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2903412 Sale Conditions: - Research Status: In Progress 39 Globe Gallery - 53-57 Blandford Sq SOLD

Newcastle Upon Tyne, NE1 4HZ Tyne And Wear County Sale Date: 09/09/2013 (545 days on mkt) Bldg Type: OfficeLoft/Creative Space Sale Price: - Year Built/Age: Built 1970 Age: 43 Price/SF: - NIA: 10,624 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2833017 Sale Conditions: - Research Status: In Progress 40 Croft House - Blucher Rd SOLD

Newcastle Upon Tyne, NE12 6DT Tyne And Wear County Sale Date: 01/03/2013 (294 days on mkt) Bldg Type: Office Sale Price: £249,950 - Confirmed Year Built/Age: Built 1998 Age: 15 Price/SF: £32.29 NIA: 7,740 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2688695 Sale Conditions: - Research Status: Confirmed 41 Unit 3 - Express Works - Brunswick Park SOLD

Newcastle Upon Tyne, NE13 7BA Tyne And Wear County Sale Date: 01/03/2014 (79 days on mkt) Bldg Type: IndustrialWarehouse Sale Price: £90,000 - Confirmed Year Built/Age: Built 2000 Age: 14 Price/SF: £31.38 NIA: 2,868 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 3059559 Sale Conditions: - Research Status: Confirmed 42 Brunswick Industrial Estate - 19 Brunswick Vlg SOLD

Newcastle Upon Tyne, NE13 7BA Tyne And Wear County Sale Date: 26/06/2013 (273 days on mkt) Bldg Type: IndustrialWarehouse Sale Price: £358,000 - Confirmed Year Built/Age: Built 1988 Age: 24 Price/SF: £43.01 NIA: 8,324 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2776043 Sale Conditions: - Research Status: Confirmed

Copyrighted report licensed to Newcastle City Council - 584768. 01/04/2015 Page 7

91 P04

43 Units 1-5 - Industrial Unit, Unit 4-5 - Brunswick Industrial Esta SOLD

Newcastle Upon Tyne, NE13 7BA Tyne And Wear County Sale Date: 01/07/2013 Unit Type: 5,598 SF Industrial Unit Sale Price: - Year Built/Age: Built 2008 Age: 4 Price/SF: - NIA: 5,598 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2792516 Sale Conditions: - Research Status: Research Complete 44 Site 7 And Gestetner Building - Christon Rd SOLD

Newcastle Upon Tyne, NE3 1XD Tyne And Wear County Sale Date: 09/09/2013 (826 days on mkt) Bldg Type: IndustrialWarehouse Sale Price: - Year Built/Age: Built 1979 Age: 34 Price/SF: - NIA: 7,756 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2833033 Sale Conditions: - Research Status: In Progress 45 Former Greggs Bakery - Christon Rd SOLD

Newcastle Upon Tyne, NE3 1XD Tyne And Wear County Sale Date: 01/02/2013 (606 days on mkt) Bldg Type: IndustrialWarehouse Sale Price: - Year Built/Age: Built 1989 Age: 23 Price/SF: - NIA: 59,074 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2676721 Sale Conditions: - Research Status: In Progress 46 Clavering House And The Works - Clavering Pl SOLD

Newcastle Upon Tyne, NE1 3NG Tyne And Wear County Sale Date: 10/01/2013 (45 days on mkt) Bldg Type: Office Sale Price: - Year Built/Age: Built 1789 Age: 224 Price/SF: - NIA: 14,450 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2708150 Sale Conditions: - Research Status: In Progress 47 90-92 Clayton St SOLD

Newcastle Upon Tyne, NE1 5PG Tyne And Wear County Sale Date: 29/07/2013 (185 days on mkt) Bldg Type: RetailStorefront Retail/Residential Sale Price: - Year Built/Age: Built 1820 Age: 193 Price/SF: - NIA: 1,076 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2817153 Sale Conditions: - Research Status: In Progress 48 Neptune House - 1 Close SOLD

Newcastle Upon Tyne, NE1 3RQ Tyne And Wear County Sale Date: 20/12/2013 (247 days on mkt) Bldg Type: RetailBar Sale Price: - Year Built/Age: - Price/SF: - NIA: 6,907 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2932931 Sale Conditions: - Research Status: In Progress

Copyrighted report licensed to Newcastle City Council - 584768. 01/04/2015 Page 8

92 P04

49 Metropolitan House - 19-21 Collingwood St SOLD

Newcastle Upon Tyne, NE1 1JE Tyne And Wear County Sale Date: 01/06/2014 Bldg Type: Office Sale Price: £1,300,000 - Confirmed Year Built/Age: Built 1905 Age: 108 Price/SF: £107.70 NIA: 12,071 SF

Reversionary Yield: - Net Initial Yield: 8.04% Comp ID: 3183089 Sale Conditions: - Research Status: Confirmed 50 Collingwood House - 2 Collingwood Ter SOLD

Gateshead, NE11 9DU Tyne And Wear County Sale Date: 10/04/2014 Bldg Type: RetailStorefront Sale Price: £39,000 - Confirmed Year Built/Age: Built 1971 Age: 43 Price/SF: £38.16 NIA: 1,022 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 3038461 Sale Conditions: Auction Sale Research Status: Confirmed 51 Unit B - Abcom House - Crisanden Ct SOLD

Newcastle Upon Tyne, NE13 7GA Tyne And Wear County Sale Date: 13/12/2013 (245 days on mkt) Bldg Type: Office Sale Price: - Year Built/Age: - Price/SF: - NIA: 6,055 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2908241 Sale Conditions: - Research Status: In Progress 52 The Crown & Anchor - Croft Ln SOLD

Newcastle Upon Tyne, NE15 0NS Tyne And Wear County Sale Date: 10/01/2014 (363 days on mkt) Bldg Type: RetailBar Sale Price: £231,500 Year Built/Age: Built 1890 Age: 124 Price/SF: £130.50 NIA: 1,774 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2938376 Sale Conditions: - Research Status: In Progress 53 The Chopwell - Derwent St SOLD

Newcastle Upon Tyne, NE17 7AA Tyne And Wear County Sale Date: 10/05/2013 (95 days on mkt) Bldg Type: RetailBar Sale Price: £87,000 - Confirmed Year Built/Age: Built 1895 Age: 118 Price/SF: £24.96 NIA: 3,485 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2755477 Sale Conditions: - Research Status: Confirmed 54 Unit 1 - Don St SOLD

Gateshead, NE11 0TU Tyne And Wear County Sale Date: 22/11/2013 (169 days on mkt) Bldg Type: IndustrialWarehouse Sale Price: £140,000 - Confirmed Year Built/Age: Built 1970 Age: 43 Price/SF: £5.22 NIA: 26,795 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2905921 Sale Conditions: - Research Status: Confirmed

Copyrighted report licensed to Newcastle City Council - 584768. 01/04/2015 Page 9

93 P04

55 48-74 Downend Rd SOLD

Newcastle Upon Tyne, NE5 5NH Tyne And Wear County Sale Date: 24/03/2014 (5 days on mkt) Bldg Type: RetailStorefront Retail/Residential Sale Price: £840,000 - Confirmed Year Built/Age: - Price/SF: £121.51 NIA: 6,913 SF

Reversionary Yield: - Net Initial Yield: 10.34% Comp ID: 2989693 Sale Conditions: Auction Sale Research Status: Confirmed 56 Team Valley Trading Estate - 355A-355B Dukesway Ct SOLD

Gateshead, NE11 0BH Tyne And Wear County Sale Date: 04/09/2013 (334 days on mkt) Bldg Type: IndustrialWarehouse Sale Price: £140,000 Year Built/Age: Built 1985 Age: 27 Price/SF: £17.64 NIA: 7,937 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2857974 Sale Conditions: - Research Status: In Progress 57 687-691 Durham Rd SOLD

Gateshead, NE9 5HB Tyne And Wear County Sale Date: 04/12/2013 (9 days on mkt) Bldg Type: RetailAuto Repair Sale Price: £800,000 - Confirmed Year Built/Age: - Price/SF: £64.59 NIA: 12,385 SF

Reversionary Yield: - Net Initial Yield: 6.20% Comp ID: 2903377 Sale Conditions: Auction Sale Research Status: Confirmed 58 Office Block - Eland Ln SOLD

Newcastle Upon Tyne, NE20 9TR Tyne And Wear County Sale Date: 07/03/2014 (170 days on mkt) Bldg Type: Office Sale Price: £145,000 Year Built/Age: Built 2001 Age: 12 Price/SF: £143.99 NIA: 1,007 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2992080 Sale Conditions: - Research Status: In Progress 59 A1-A4 - Industrial Unit, Unit A4 - Eleventh Ave N SOLD

Gateshead, NE11 0NJ Tyne And Wear County Sale Date: 30/06/2014 (539 days on mkt) Unit Type: 1,242 SF Industrial Unit Sale Price: - Year Built/Age: Built 1990 Age: 24 Price/SF: - NIA: 1,242 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 3059180 Sale Conditions: - Research Status: Research Complete 60 Lilac House - Fell Way SOLD

Gateshead, NE9 7RL Tyne And Wear County Sale Date: 06/06/2013 (30 days on mkt) Bldg Type: RetailStorefront Retail/Residential Sale Price: £45,000 - Confirmed Year Built/Age: Built 1896 Age: 117 Price/SF: £87.89 NIA: 512 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2786833 Sale Conditions: Auction Sale Research Status: Confirmed

Copyrighted report licensed to Newcastle City Council - 584768. 01/04/2015 Page 10

94 P04

61 Brenkley Colliery Building - Front St SOLD

Newcastle Upon Tyne, NE13 6ES Tyne And Wear County Sale Date: 22/07/2014 Bldg Type: IndustrialWarehouse Sale Price: £206,000 - Confirmed Year Built/Age: Built 1955 Age: 59 Price/SF: £105.37 NIA: 1,955 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 3168705 Sale Conditions: - Research Status: Confirmed 62 The Camperdown - Front St SOLD

Newcastle Upon Tyne, NE12 5UT Tyne And Wear County Sale Date: 08/08/2013 (1,023 days on mkt) Bldg Type: RetailBar Sale Price: £200,000 - Confirmed Year Built/Age: Built 1926 Age: 86 Price/SF: £58.38 NIA: 3,426 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2817191 Sale Conditions: - Research Status: Confirmed 63 Time Central - 32 Gallowgate SOLD

Newcastle Upon Tyne, NE1 4BF Tyne And Wear County Sale Date: 22/11/2013 Bldg Type: Office Sale Price: £24,680,000 - Confirmed Year Built/Age: Built 2006 Age: 7 Price/SF: £299.12 NIA: 82,509 SF

Reversionary Yield: - Net Initial Yield: 6.14% Comp ID: 2928700 Sale Conditions: - Research Status: Confirmed 64 Nelson Street - 133-137 Grainger St SOLD

Newcastle Upon Tyne, NE1 5AE Tyne And Wear County Sale Date: 16/12/2013 Bldg Type: RetailStorefront Retail/Office Sale Price: £1,800,000 - Confirmed Year Built/Age: Built 1800 Age: 213 Price/SF: £573.43 NIA: 3,139 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2938280 Sale Conditions: - Research Status: Confirmed 65 3663 First For Food Service Limited - Green Ln SOLD

Gateshead, NE10 0QH Tyne And Wear County Sale Date: 01/04/2013 Bldg Type: IndustrialDistribution Sale Price: £1,600,000 - Confirmed Year Built/Age: Built 1985 Renov 2013 Age: 28 Price/SF: £23.11 NIA: 69,222 SF

Reversionary Yield: - Net Initial Yield: 10.60% Comp ID: 2771893 Sale Conditions: - Research Status: Confirmed 66 Former Coast And County Meat Supply Co Ltd - Green Ln SOLD

Gateshead, NE10 0QH Tyne And Wear County Sale Date: 18/02/2014 (1,090 days on mkt) Bldg Type: IndustrialWarehouse Sale Price: - Year Built/Age: Built 1970 Age: 43 Price/SF: - NIA: 17,932 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2960851 Sale Conditions: - Research Status: In Progress

Copyrighted report licensed to Newcastle City Council - 584768. 01/04/2015 Page 11

95 P04

67 Units 3-4 - Green Lane Industrial Est SOLD

Gateshead, NE10 0UW Tyne And Wear County Sale Date: 30/04/2013 (356 days on mkt) Bldg Type: IndustrialWarehouse Sale Price: - Year Built/Age: Built 1985 Age: 27 Price/SF: - NIA: 10,654 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2765633 Sale Conditions: - Research Status: In Progress 68 Lloyds Court, Unit 52-60 - Grey St SOLD

Newcastle Upon Tyne, NE1 6AF Tyne And Wear County Sale Date: 10/04/2014 Unit Type: 16,493 SF Office Unit Sale Price: £3,865,000 - Confirmed Year Built/Age: Built 1830 Renov 1999 Age: 183 Price/SF: £234.34 NIA: 16,493 SF

Reversionary Yield: - Net Initial Yield: 6.97% Comp ID: 3045858 Sale Conditions: - Research Status: Confirmed 69 Unit 1-2 - Dunston Industrial Estate - Halifax Rd SOLD

Gateshead, NE11 9JW Tyne And Wear County Sale Date: 04/04/2014 (25 days on mkt) Bldg Type: IndustrialManufacturing Sale Price: £280,000 - Confirmed Year Built/Age: - Price/SF: £43.74 NIA: 6,401 SF

Reversionary Yield: - Net Initial Yield: 9.54% Comp ID: 2994959 Sale Conditions: Auction Sale Research Status: Confirmed 70 Regent Point - High St SOLD

Newcastle Upon Tyne, NE3 3PF Tyne And Wear County Sale Date: 08/11/2013 Bldg Type: Office Sale Price: - Year Built/Age: Built 2008 Age: 5 Price/SF: - NIA: 99,050 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2889889 Sale Conditions: - Research Status: Research Complete 71 14 High Bridge SOLD

Newcastle Upon Tyne, NE1 1EN Tyne And Wear County Sale Date: 07/09/2013 Bldg Type: RetailStorefront Retail/Residential Sale Price: £270,000 - Confirmed Year Built/Age: Built 1940 Age: 73 Price/SF: £264.45 NIA: 1,021 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2836020 Sale Conditions: - Research Status: Confirmed 72 The Ship - High Heworth Ln SOLD

Gateshead, NE10 9XD Tyne And Wear County Sale Date: 03/06/2013 (588 days on mkt) Bldg Type: RetailBar Sale Price: £450,000 - Confirmed Year Built/Age: Built 1909 Age: 103 Price/SF: £77.15 NIA: 5,833 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2798883 Sale Conditions: - Research Status: Confirmed

Copyrighted report licensed to Newcastle City Council - 584768. 01/04/2015 Page 12

96 P04

73 39 Horsley Ave SOLD

Newcastle Upon Tyne, NE27 0UG Tyne And Wear County Sale Date: 10/04/2013 (614 days on mkt) Bldg Type: Office Sale Price: £120,000 - Confirmed Year Built/Age: Built 1998 Age: 15 Price/SF: £65.57 NIA: 1,830 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2728311 Sale Conditions: - Research Status: Confirmed 74 Jackson House & New Century House - Jackson St SOLD

Gateshead, NE8 1ED Tyne And Wear County Sale Date: 30/04/2014 (121 days on mkt) Bldg Type: RetailStorefront Retail/Office Sale Price: £8,500,000 - Confirmed Year Built/Age: Built 2008 Age: 6 Price/SF: £82.85 NIA: 102,598 SF

Reversionary Yield: - Net Initial Yield: 9.27% Comp ID: 3030604 Sale Conditions: - Research Status: Confirmed 75 Unit 384A- E - Jedburgh Ct SOLD

Gateshead, NE11 0BQ Tyne And Wear County Sale Date: 01/06/2014 (194 days on mkt) Bldg Type: IndustrialWarehouse Sale Price: £470,000 - Confirmed Year Built/Age: Built 1992 Age: 22 Price/SF: £54.79 NIA: 8,578 SF

Reversionary Yield: 9.20% Net Initial Yield: 10.00% Comp ID: 3061998 Sale Conditions: - Research Status: Confirmed 76 Units 383A-R - Industrial Unit, Unit 383F - Jedburgh Ct SOLD

Gateshead, NE11 0BQ Tyne And Wear County Sale Date: 30/01/2014 (13 days on mkt) Unit Type: 508 SF Industrial Unit Sale Price: £36,000 - Confirmed Year Built/Age: Built 1995 Age: 19 Price/SF: £70.87 NIA: 508 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2992511 Sale Conditions: - Research Status: Confirmed 77 89-91 Jesmond Rd SOLD

Newcastle Upon Tyne, NE2 1NH Tyne And Wear County Sale Date: 01/05/2014 (937 days on mkt) Bldg Type: Office Sale Price: - Year Built/Age: Built 1895 Age: 119 Price/SF: - NIA: 5,775 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 3054368 Sale Conditions: - Research Status: Research Complete 78 The Cradlewell - 175 Jesmond Rd SOLD

Newcastle Upon Tyne, NE2 1LA Tyne And Wear County Sale Date: 08/02/2013 (631 days on mkt) Bldg Type: RetailStorefront Retail/Residential Sale Price: - Year Built/Age: Built 1907 Age: 105 Price/SF: - NIA: 4,709 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2671879 Sale Conditions: - Research Status: In Progress

Copyrighted report licensed to Newcastle City Council - 584768. 01/04/2015 Page 13

97 P04

79 Premier Inn - Kingsway N SOLD

Gateshead, NE11 0BE Tyne And Wear County Sale Date: 01/05/2013 Bldg Type: HospitalityHotel Sale Price: £9,100,000 - Confirmed Year Built/Age: - Price/SF: £148.32 NIA: 61,353 SF

Reversionary Yield: - Net Initial Yield: 5.71% Comp ID: 2797794 Sale Conditions: - Research Status: Confirmed 80 17 Lansdowne Ter SOLD

Newcastle Upon Tyne, NE3 1HP Tyne And Wear County Sale Date: 30/05/2013 (834 days on mkt) Bldg Type: Office Sale Price: £200,000 Year Built/Age: - Price/SF: £117.58 NIA: 1,701 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2777002 Sale Conditions: - Research Status: In Progress 81 11-12 Leazes Cres SOLD

Newcastle Upon Tyne, NE1 4LN Tyne And Wear County Sale Date: 15/04/2014 Bldg Type: RetailStorefront Retail/Residential Sale Price: £175,000 - Confirmed Year Built/Age: Built 1880 Age: 134 Price/SF: £299.15 NIA: 585 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 3072188 Sale Conditions: - Research Status: Confirmed 82 11-12 Leazes Cres PENDING

Newcastle Upon Tyne, NE1 4LN Tyne And Wear County Asking Price: £165,000 Sale Type: Owner/User Price/SF: £282.05 Bldg Type: RetailStorefront Retail/Residential Days on Market: 132 Bldg Status: Built 1880 Sale Status: Pending NIA: 585 SF

Net Initial Yield: - Sale Conditions: -

83 11-12 Leazes Cres SOLD

Newcastle Upon Tyne, NE1 4LN Tyne And Wear County Sale Date: 09/09/2013 (804 days on mkt) Bldg Type: RetailStorefront Retail/Residential Sale Price: - Year Built/Age: Built 1880 Age: 133 Price/SF: - NIA: 585 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2833032 Sale Conditions: - Research Status: In Progress 84 18 Leazes Park Rd SOLD

Newcastle Upon Tyne, NE1 4PG Tyne And Wear County Sale Date: 26/02/2014 (14 days on mkt) Bldg Type: RetailStorefront Retail/Residential Sale Price: - Year Built/Age: - Price/SF: - NIA: 508 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2968028 Sale Conditions: - Research Status: Research Complete

Copyrighted report licensed to Newcastle City Council - 584768. 01/04/2015 Page 14

98 P04

85 38-40 Leazes Park Rd SOLD

Newcastle Upon Tyne, NE1 4PG Tyne And Wear County Sale Date: 19/12/2013 (21 days on mkt) Bldg Type: Office Sale Price: £350,000 - Confirmed Year Built/Age: Built 1880 Age: 133 Price/SF: £130.84 NIA: 2,675 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2913362 Sale Conditions: Auction Sale Research Status: Confirmed 86 14A Lyndhurst Ter PENDING

Newcastle Upon Tyne, NE16 3DY Tyne And Wear County Asking Price: £53,000 Sale Type: Owner/User Price/SF: £64.09 Bldg Type: RetailStorefront Retail/Residential Days on Market: 476 Bldg Status: Built 1920 Sale Status: Pending NIA: 827 SF

Net Initial Yield: - Sale Conditions: -

87 The Rope Works - Malvern Gdns SOLD

Gateshead, NE11 9LJ Tyne And Wear County Sale Date: 09/04/2014 (624 days on mkt) Bldg Type: IndustrialWarehouse Sale Price: £85,000 Year Built/Age: Built 1977 Age: 36 Price/SF: £35.97 NIA: 2,363 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2998568 Sale Conditions: - Research Status: In Progress 88 Aidan House - Manor Chare PENDING

Newcastle Upon Tyne, NE1 2TT Tyne And Wear County Asking Price: £3,000,000 Sale Type: Owner/User Price/SF: £76.23 Bldg Type: Office Days on Market: 35 Bldg Status: Built 1969 Sale Status: Pending NIA: 39,355 SF

Net Initial Yield: - Sale Conditions: -

89 Plummer House - Market St SOLD

Newcastle Upon Tyne, NE1 6NA Tyne And Wear County Sale Date: 01/04/2014 Bldg Type: RetailStorefront Retail/Residential Sale Price: £2,300,000 - Confirmed Year Built/Age: Built 1910 Age: 104 Price/SF: £77.96 NIA: 29,501 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 3098237 Sale Conditions: High Vacancy Property, Redevelopment Research Status: Confirmed Project 90 Central Arcade - Market St SOLD

Newcastle Upon Tyne, NE1 5BP Tyne And Wear County Sale Date: 29/08/2014 (1,694 days on mkt) Unit Type: 1,660 SF Retail Unit Sale Price: £155,000 - Confirmed Year Built/Age: Built 1836 Renov 1906 Age: 177 Price/SF: £93.37 NIA: 1,660 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 3108187 Sale Conditions: - Research Status: Confirmed

Copyrighted report licensed to Newcastle City Council - 584768. 01/04/2015 Page 15

99 P04

91 Retail Unit, Unit 29-31 - 29-39 Market St SOLD

Newcastle Upon Tyne, NE1 6JE Tyne And Wear County Sale Date: 06/01/2014 Unit Type: 21,257 SF Retail Unit Sale Price: £2,700,000 - Confirmed Year Built/Age: Built 1799 Age: 214 Price/SF: £127.02 NIA: 21,257 SF

Reversionary Yield: - Net Initial Yield: 7.50% Comp ID: 2945694 Sale Conditions: - Research Status: Confirmed 92 RT Pallets Former County School - Marley Hl SOLD

Newcastle Upon Tyne, NE16 5DY Tyne And Wear County Sale Date: 31/03/2014 (187 days on mkt) Bldg Type: Industrial Sale Price: £220,000 - Confirmed Year Built/Age: Built 1900 Age: 114 Price/SF: £20.31 NIA: 10,830 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 3113229 Sale Conditions: Auction Sale Research Status: Confirmed 93 Units 321a-321n - Industrial Unit, Unit 321T - Mayoral Way SOLD

Gateshead, NE11 0RT Tyne And Wear County Sale Date: 10/01/2014 (175 days on mkt) Unit Type: 506 SF Industrial Unit Sale Price: £25,000 Year Built/Age: Built 1997 Age: 16 Price/SF: £49.41 NIA: 506 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2989710 Sale Conditions: - Research Status: In Progress 94 Media 4 - The Media Exchange - Media Exchange SOLD

Newcastle Upon Tyne, NE1 2QB Tyne And Wear County Sale Date: 03/06/2013 (1,385 days on mkt) Bldg Type: Office Sale Price: - Year Built/Age: Built 2009 Age: 4 Price/SF: - NIA: 7,825 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2815444 Sale Conditions: - Research Status: Research Complete 95 Media 5 - The Media Exchange - Media Exchange SOLD

Newcastle Upon Tyne, NE1 2QB Tyne And Wear County Sale Date: 01/05/2013 (1,352 days on mkt) Bldg Type: Office Sale Price: - Year Built/Age: Built 2009 Age: 3 Price/SF: - NIA: 7,986 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2742586 Sale Conditions: - Research Status: Confirmed 96 Shell Petrol Station - Millers Rd SOLD

Newcastle Upon Tyne, NE6 2UU Tyne And Wear County Sale Date: 19/05/2014 (19 days on mkt) Bldg Type: RetailService Station Sale Price: £61,000 - Confirmed Year Built/Age: - Price/SF: £14.16 NIA: 4,309 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 3030670 Sale Conditions: Auction Sale, Ground Lease (Leasehold) Research Status: Confirmed

Copyrighted report licensed to Newcastle City Council - 584768. 01/04/2015 Page 16

100 P04

97 Our Lady Of The Annunciation Church - Millway SOLD

Gateshead, NE9 5PQ Tyne And Wear County Sale Date: 11/11/2013 (557 days on mkt) Bldg Type: Office Sale Price: £220,000 - Confirmed Year Built/Age: Built 1959 Age: 54 Price/SF: £36.46 NIA: 6,034 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2924951 Sale Conditions: - Research Status: Confirmed 98 1 Cathedral Square - Mosley St SOLD

Newcastle Upon Tyne, NE1 1YF Tyne And Wear County Sale Date: 31/01/2013 Bldg Type: OfficeOffice Live/Work Unit Sale Price: £9,500,000 - Confirmed Year Built/Age: Built 1974 Renov 2004 Age: 38 Price/SF: £196.97 NIA: 48,231 SF

Reversionary Yield: - Net Initial Yield: 12.90% Comp ID: 3245453 Sale Conditions: - Research Status: Confirmed 99 Bank Chambers - 24-26 Mosley St SOLD

Newcastle Upon Tyne, NE1 1DF Tyne And Wear County Sale Date: 29/11/2013 (224 days on mkt) Bldg Type: RetailStorefront Retail/Office Sale Price: £1,750,000 - Confirmed Year Built/Age: Built 1900 Age: 113 Price/SF: £102.42 NIA: 17,086 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2903505 Sale Conditions: - Research Status: Confirmed 100 Ashbby House - 5 Mylord Cres SOLD

Newcastle Upon Tyne, NE12 5UJ Tyne And Wear County Sale Date: 15/04/2014 (335 days on mkt) Bldg Type: IndustrialWarehouse Sale Price: £150,000 - Confirmed Year Built/Age: Built 1991 Age: 22 Price/SF: £88.81 NIA: 1,689 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 3004199 Sale Conditions: - Research Status: Confirmed 101 Unit 2 - Team Valley Trading Estate - Nest Rd SOLD

Gateshead, NE10 0ES Tyne And Wear County Sale Date: 18/06/2013 (20 days on mkt) Bldg Type: IndustrialWarehouse Sale Price: £1,005,000 - Confirmed Year Built/Age: Built 1975 Age: 38 Price/SF: £7.34 NIA: 136,861 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2779801 Sale Conditions: - Research Status: Confirmed 102 Unit 1 - Team Valley Trading Estate - Nest Rd SOLD

Gateshead, NE10 0ES Tyne And Wear County Sale Date: 01/09/2014 (376 days on mkt) Bldg Type: IndustrialWarehouse Sale Price: - Year Built/Age: Built 1975 Age: 39 Price/SF: - NIA: 99,682 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 3113393 Sale Conditions: - Research Status: Research Complete

Copyrighted report licensed to Newcastle City Council - 584768. 01/04/2015 Page 17

101 P04

103 Unit 5A-5C - Unit 5-6, Unit 6 - New York Way SOLD

Newcastle Upon Tyne, NE27 0QF Tyne And Wear County Sale Date: 01/03/2013 Unit Type: 7,645 SF Industrial Unit Sale Price: £371,000 - Confirmed Year Built/Age: Built 1999 Age: 14 Price/SF: £48.53 NIA: 7,645 SF

Reversionary Yield: - Net Initial Yield: 9.00% Comp ID: 2726639 Sale Conditions: - Research Status: Confirmed 104 Unit 2 - New York Industrial Park - New York Way PENDING

Newcastle Upon Tyne, NE27 0QF Tyne And Wear County Asking Price: - Sale Type: Owner/User Price/SF: - Bldg Type: IndustrialWarehouse Days on Market: 450 Bldg Status: Built 1983 Sale Status: Pending NIA: 45,201 SF

Net Initial Yield: - Sale Conditions: -

105 95-117 Newgate St SOLD

Newcastle Upon Tyne, NE1 5RF Tyne And Wear County Sale Date: 01/06/2014 Bldg Type: RetailStorefront Sale Price: £35,000,000 - Confirmed Year Built/Age: Built 1898 Renov 2015 Age: 116 Price/SF: £179.75 NIA: 194,719 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 3223258 Sale Conditions: - Research Status: Confirmed 106 10-10A - New England House - 10A Northumberland Rd FOR SALE

Newcastle Upon Tyne, NE1 8JF Tyne And Wear County Asking Price: £2,100,000 Sale Type: Investment Price/SF: £98.41 Bldg Type: Office Days on Market: 78 Bldg Status: Built 1980 Sale Status: Active NIA: 21,339 SF

Net Initial Yield: 10.80% Sale Conditions: -

107 Unit 30 - Stephenson Industrial Estate - Northumbrian Way SOLD

Newcastle Upon Tyne, NE12 6EH Tyne And Wear County Sale Date: 01/01/2014 (23 days on mkt) Bldg Type: Industrial Sale Price: - Year Built/Age: Built 1965 Age: 49 Price/SF: - NIA: 13,340 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 3111490 Sale Conditions: - Research Status: In Progress 108 5 Nun St SOLD

Newcastle Upon Tyne, NE1 5AG Tyne And Wear County Sale Date: 30/09/2013 (105 days on mkt) Bldg Type: RetailStorefront Retail/Office Sale Price: £249,999 - Confirmed Year Built/Age: Built 1930 Age: 83 Price/SF: £87.69 NIA: 2,851 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2850292 Sale Conditions: - Research Status: Confirmed

Copyrighted report licensed to Newcastle City Council - 584768. 01/04/2015 Page 18

102 P04

109 High Fell Social Club - Old Durham Rd SOLD

Gateshead, NE9 5DR Tyne And Wear County Sale Date: 01/09/2014 (54 days on mkt) Bldg Type: RetailBar Sale Price: £305,000 - Confirmed Year Built/Age: Built 1961 Age: 53 Price/SF: £33.90 NIA: 8,998 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 3135108 Sale Conditions: Distress Sale, Redevelopment Project Research Status: Confirmed 110 357 Old Durham Rd SOLD

Gateshead, NE9 5LA Tyne And Wear County Sale Date: 01/09/2013 (48 days on mkt) Bldg Type: RetailStorefront Sale Price: - Year Built/Age: Built 1953 Age: 60 Price/SF: - NIA: 1,255 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2847745 Sale Conditions: Auction Sale Research Status: Research Complete 111 Central Square South - Orchard St SOLD

Newcastle Upon Tyne, NE1 3XX Tyne And Wear County Sale Date: 20/01/2014 Bldg Type: Office Sale Price: £22,000,000 - Confirmed Year Built/Age: Built 1998 Age: 15 Price/SF: £230.84 NIA: 95,305 SF

Reversionary Yield: - Net Initial Yield: 7.71% Comp ID: 2976839 Sale Conditions: - Research Status: Confirmed 112 Otterburn Hall - Otterburn SOLD

Newcastle Upon Tyne, NE19 1HE Tyne And Wear County Sale Date: 01/07/2014 Bldg Type: HospitalityHotel Sale Price: £1,500,000 - Confirmed Year Built/Age: Built 1810 Age: 204 Price/SF: £32.52 NIA: 46,122 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 3155374 Sale Conditions: Distress Sale Research Status: Confirmed 113 Yorkshire Chambers - 112-118 Pilgrim St SOLD

Newcastle Upon Tyne, NE1 6SQ Tyne And Wear County Sale Date: 01/04/2013 Bldg Type: Office Sale Price: - Year Built/Age: Built 1901 Age: 111 Price/SF: - NIA: 16,148 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 3175789 Sale Conditions: - Research Status: In Progress 114 Architectural House - Plummer St SOLD

Newcastle Upon Tyne, NE4 7AB Tyne And Wear County Sale Date: 05/02/2014 (204 days on mkt) Bldg Type: Industrial Sale Price: - Year Built/Age: Built 1993 Age: 20 Price/SF: - NIA: 13,485 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2951015 Sale Conditions: - Research Status: In Progress

Copyrighted report licensed to Newcastle City Council - 584768. 01/04/2015 Page 19

103 P04

115 Wingrove House - Ponteland Rd SOLD

Newcastle Upon Tyne, NE5 3DE Tyne And Wear County Sale Date: 16/10/2013 Bldg Type: Office Sale Price: £450,000 - Confirmed Year Built/Age: Built 1962 Age: 51 Price/SF: £12.89 NIA: 34,905 SF

Reversionary Yield: - Net Initial Yield: 38.27% Comp ID: 2949080 Sale Conditions: Auction Sale Research Status: Confirmed 116 Pitcher & Piano - 108 Quayside SOLD

Newcastle Upon Tyne, NE1 3DX Tyne And Wear County Sale Date: 01/03/2014 (46 days on mkt) Bldg Type: RetailBar Sale Price: £7,550,000 - Confirmed Year Built/Age: Built 1995 Age: 19 Price/SF: £723.67 NIA: 10,433 SF

Reversionary Yield: - Net Initial Yield: 4.35% Comp ID: 2981783 Sale Conditions: Sale Leaseback Research Status: Confirmed 117 5 Queensway N SOLD

Gateshead, NE11 0NY Tyne And Wear County Sale Date: 01/07/2014 Bldg Type: IndustrialWarehouse Sale Price: £1,490,000 - Confirmed Year Built/Age: Built 2001 Age: 13 Price/SF: £44.98 NIA: 33,126 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 3095453 Sale Conditions: - Research Status: Confirmed 118 Cobalt 15A - Quick Silver Way SOLD

Newcastle Upon Tyne, NE27 0QQ Tyne And Wear County Sale Date: 01/03/2014 Bldg Type: OfficeOffice Live/Work Unit Sale Price: £1,505,000 - Confirmed Year Built/Age: Built 2009 Age: 4 Price/SF: £49.32 NIA: 30,515 SF

Reversionary Yield: - Net Initial Yield: 21.07% Comp ID: 3025463 Sale Conditions: - Research Status: Confirmed 119 Cobalt 14 - Quicksilver Way SOLD

Newcastle Upon Tyne, NE27 0QQ Tyne And Wear County Sale Date: 09/04/2014 (135 days on mkt) Bldg Type: Office Sale Price: £10,350,000 - Confirmed Year Built/Age: Built 2007 Age: 7 Price/SF: £224.34 NIA: 46,136 SF

Reversionary Yield: - Net Initial Yield: 6.74% Comp ID: 3012749 Sale Conditions: - Research Status: Confirmed 120 The Globe - Railway St SOLD

Newcastle Upon Tyne, NE4 7AD Tyne And Wear County Sale Date: 12/05/2014 (223 days on mkt) Bldg Type: Retail Sale Price: - Year Built/Age: - Price/SF: - NIA: 3,246 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 3023209 Sale Conditions: - Research Status: In Progress

Copyrighted report licensed to Newcastle City Council - 584768. 01/04/2015 Page 20

104 P04

121 Former Distribution Warehouse - Rear Of Coxon Ter SOLD

Gateshead, NE10 0AQ Tyne And Wear County Sale Date: 29/08/2013 (101 days on mkt) Bldg Type: IndustrialWarehouse Sale Price: £125,000 - Confirmed Year Built/Age: Built 1994 Age: 18 Price/SF: £14.17 NIA: 8,820 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2836021 Sale Conditions: Auction Sale Research Status: Confirmed 122 8 Ridley Pl SOLD

Newcastle Upon Tyne, NE1 8JW Tyne And Wear County Sale Date: 01/02/2013 (165 days on mkt) Bldg Type: RetailStorefront Sale Price: £286,000 - Confirmed Year Built/Age: Built 1913 Age: 99 Price/SF: £161.58 NIA: 1,770 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2683527 Sale Conditions: - Research Status: Confirmed 123 McDonalds Restaurants Ltd - Rotary Way SOLD

Newcastle Upon Tyne, NE3 5EH Tyne And Wear County Sale Date: 12/07/2014 Bldg Type: RetailFast Food Sale Price: £1,125,000 - Confirmed Year Built/Age: Built 1995 Age: 19 Price/SF: £443.44 NIA: 2,537 SF

Reversionary Yield: - Net Initial Yield: 5.95% Comp ID: 3154850 Sale Conditions: - Research Status: Confirmed 124 JFS Studios - Saltmeadows Rd SOLD

Gateshead, NE8 3AH Tyne And Wear County Sale Date: 27/09/2013 (2,425 days on mkt) Bldg Type: Office Sale Price: £60,000 - Confirmed Year Built/Age: Built 1995 Age: 18 Price/SF: £15.18 NIA: 3,952 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2850267 Sale Conditions: - Research Status: Confirmed 125 Ashwood House - Saltmeadows Rd SOLD

Gateshead, NE8 3AH Tyne And Wear County Sale Date: 01/09/2014 Bldg Type: Office Sale Price: - Year Built/Age: - Price/SF: - NIA: 1,327 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 3116786 Sale Conditions: - Research Status: In Progress 126 11 Saltmeadows Rd SOLD

Gateshead, NE8 3AH Tyne And Wear County Sale Date: 18/08/2014 (1,119 days on mkt) Bldg Type: RetailFreestanding Sale Price: £140,000 - Confirmed Year Built/Age: Built 1966 Age: 48 Price/SF: £22.91 NIA: 6,110 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 3095452 Sale Conditions: - Research Status: Confirmed

Copyrighted report licensed to Newcastle City Council - 584768. 01/04/2015 Page 21

105 P04

127 17 Saltmeadows Rd SOLD

Gateshead, NE8 3AH Tyne And Wear County Sale Date: 18/03/2014 (2,532 days on mkt) Bldg Type: IndustrialWarehouse Sale Price: £400,000 - Confirmed Year Built/Age: Built 1980 Age: 33 Price/SF: £13.24 NIA: 30,212 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2984495 Sale Conditions: - Research Status: Confirmed 128 201 Saltwell Rd PENDING

Gateshead, NE8 4TL Tyne And Wear County Asking Price: £150,000 Sale Type: Owner/User Price/SF: £173.01 Bldg Type: RetailStorefront Retail/Residential Days on Market: 853 Bldg Status: Built 1905 Sale Status: Pending NIA: 867 SF

Net Initial Yield: - Sale Conditions: -

129 Quayside - 10-15 Sandhill SOLD

Newcastle Upon Tyne, NE1 3AF Tyne And Wear County Sale Date: 17/10/2013 (183 days on mkt) Bldg Type: RetailStorefront Sale Price: - Year Built/Age: Renov 2015 Price/SF: - NIA: 27,516 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2876085 Sale Conditions: - Research Status: In Progress 130 Waterside Hotel - 48-52 Sandhill SOLD

Newcastle Upon Tyne, NE1 3JF Tyne And Wear County Sale Date: 17/12/2013 (244 days on mkt) Bldg Type: HospitalityHotel Sale Price: - Year Built/Age: - Price/SF: - NIA: 3,750 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2932925 Sale Conditions: - Research Status: In Progress 131 Unit 1-10 - Industrial Unit, Unit 3 - Sandison Ct SOLD

Newcastle Upon Tyne, NE13 7BA Tyne And Wear County Sale Date: 13/06/2014 (381 days on mkt) Unit Type: 3,793 SF Industrial Unit Sale Price: £130,000 - Confirmed Year Built/Age: Built 1982 Age: 32 Price/SF: £34.27 NIA: 3,793 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 3056226 Sale Conditions: - Research Status: Confirmed 132 89 Sandyford Rd SOLD

Newcastle Upon Tyne, NE1 8HW Tyne And Wear County Sale Date: 23/08/2014 (15 days on mkt) Bldg Type: OfficeOffice Live/Work Unit Sale Price: - Year Built/Age: Built 1980 Age: 34 Price/SF: - NIA: 34,134 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 3124014 Sale Conditions: - Research Status: In Progress

Copyrighted report licensed to Newcastle City Council - 584768. 01/04/2015 Page 22

106 P04

133 Unit 1-4 - Armstrong Works - Scotswood Rd SOLD

Newcastle Upon Tyne, NE15 6UX Tyne And Wear County Sale Date: 01/12/2013 (80 days on mkt) Bldg Type: Industrial Sale Price: - Year Built/Age: - Price/SF: - NIA: 78,964 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2935333 Sale Conditions: - Research Status: In Progress 134 The Willows Club - 18-20 Scrogg Rd SOLD

Newcastle Upon Tyne, NE6 4EX Tyne And Wear County Sale Date: 14/03/2013 (62 days on mkt) Bldg Type: RetailStorefront Retail/Residential Sale Price: £155,000 - Confirmed Year Built/Age: Built 1860 Age: 153 Price/SF: £8.58 NIA: 18,075 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2744626 Sale Conditions: Bankruptcy Sale Research Status: Confirmed 135 The Old Cannon - 42-44 Sheriffs Hwy PENDING

Gateshead, NE9 5UE Tyne And Wear County Asking Price: £150,000 Sale Type: Owner/User Price/SF: £60.19 Bldg Type: RetailBar Days on Market: 610 Bldg Status: Built 1902 Sale Status: Pending NIA: 2,492 SF

Net Initial Yield: - Sale Conditions: -

136 Ouseburn Point - 24-46 Shields Rd SOLD

Newcastle Upon Tyne, NE6 1DR Tyne And Wear County Sale Date: 01/05/2013 (232 days on mkt) Bldg Type: Office Sale Price: - Year Built/Age: Built 2009 Age: 3 Price/SF: - NIA: 12,046 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2745096 Sale Conditions: - Research Status: In Progress 137 74-76 Shields Rd PENDING

Newcastle Upon Tyne, NE6 1DS Tyne And Wear County Asking Price: £225,000 Sale Type: Owner/User Price/SF: £42.49 Bldg Type: RetailStorefront Days on Market: 1247 Bldg Status: Built 1970 Sale Status: Pending NIA: 5,295 SF

Net Initial Yield: - Sale Conditions: -

138 151-153 Shields Rd SOLD

Newcastle Upon Tyne, NE6 1DP Tyne And Wear County Sale Date: 01/06/2014 Bldg Type: RetailStorefront Retail/Office Sale Price: - Year Built/Age: - Price/SF: - NIA: 1,838 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 3051606 Sale Conditions: - Research Status: Research Complete

Copyrighted report licensed to Newcastle City Council - 584768. 01/04/2015 Page 23

107 P04

139 165-167 Shields Rd SOLD

Newcastle Upon Tyne, NE6 1DP Tyne And Wear County Sale Date: 20/08/2013 (20 days on mkt) Bldg Type: RetailBank Sale Price: £170,000 - Confirmed Year Built/Age: Built 1911 Age: 102 Price/SF: £27.96 NIA: 6,080 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2870587 Sale Conditions: Auction Sale Research Status: Confirmed 140 1037 Shields Rd SOLD

Newcastle Upon Tyne, NE6 4SP Tyne And Wear County Sale Date: 24/02/2014 (3 days on mkt) Bldg Type: Industrial Sale Price: £120,000 - Confirmed Year Built/Age: Built 1970 Age: 44 Price/SF: £60.39 NIA: 1,987 SF

Reversionary Yield: - Net Initial Yield: 7.67% Comp ID: 2967479 Sale Conditions: Auction Sale Research Status: Confirmed 141 Proctor House - 15-29 Side SOLD

Newcastle Upon Tyne, NE1 3JE Tyne And Wear County Sale Date: 05/04/2013 Bldg Type: HospitalityHotel Sale Price: £6,500,000 - Confirmed Year Built/Age: Built 1644 Renov 1907 Age: 368 Price/SF: £185.71 NIA: 35,000 SF

Reversionary Yield: - Net Initial Yield: 9.00% Comp ID: 2763182 Sale Conditions: High Vacancy Property Research Status: Confirmed 142 35-35A Side SOLD

Newcastle Upon Tyne, NE1 3JE Tyne And Wear County Sale Date: 18/02/2014 (1,336 days on mkt) Bldg Type: Office Sale Price: - Year Built/Age: Built 1892 Age: 121 Price/SF: - NIA: 2,046 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 3023241 Sale Conditions: - Research Status: Research Complete 143 Cobalt 15B and 15C - Silver Fox Way SOLD

Newcastle Upon Tyne, NE27 0QJ Tyne And Wear County Sale Date: 01/07/2013 Bldg Type: Office Sale Price: £7,930,000 - Confirmed Year Built/Age: Built 2001 Age: 11 Price/SF: £84.56 NIA: 93,781 SF

Reversionary Yield: - Net Initial Yield: 16.50% Comp ID: 2881691 Sale Conditions: - Research Status: Confirmed 144 New Hedley House - Silver Fox Way SOLD

Newcastle Upon Tyne, NE27 0QW Tyne And Wear County Sale Date: 14/03/2013 (93 days on mkt) Bldg Type: Office Sale Price: £4,150,000 - Confirmed Year Built/Age: Built 2002 Age: 10 Price/SF: £74.43 NIA: 55,756 SF

Reversionary Yield: - Net Initial Yield: 18.07% Comp ID: 2713834 Sale Conditions: Bankruptcy Sale Research Status: Confirmed

Copyrighted report licensed to Newcastle City Council - 584768. 01/04/2015 Page 24

108 P04

145 1 - Colbalt 1 - Silver Fox Way SOLD

Newcastle Upon Tyne, NE27 0QJ Tyne And Wear County Sale Date: 08/08/2013 Bldg Type: Office Sale Price: £1,200,000 - Confirmed Year Built/Age: Built 2003 Age: 10 Price/SF: £26.99 NIA: 44,453 SF

Reversionary Yield: - Net Initial Yield: 26.00% Comp ID: 2876736 Sale Conditions: - Research Status: Confirmed 146 Cobalt 13b/c - Silverlink North SOLD

Newcastle Upon Tyne, NE27 0BY Tyne And Wear County Sale Date: 10/12/2013 (15 days on mkt) Bldg Type: Office Sale Price: £10,500,000 - Confirmed Year Built/Age: Built 2000 Age: 13 Price/SF: £202.00 NIA: 51,981 SF

Reversionary Yield: - Net Initial Yield: 10.40% Comp ID: 2932419 Sale Conditions: - Research Status: Confirmed 147 Former Salvation Army Hall - Smithburn Rd SOLD

Gateshead, NE10 9DT Tyne And Wear County Sale Date: 25/02/2014 (1 days on mkt) Bldg Type: Office Sale Price: £127,500 - Confirmed Year Built/Age: - Price/SF: £36.46 NIA: 3,497 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 3108701 Sale Conditions: - Research Status: Confirmed 148 14 South Shore Rd SOLD

Gateshead, NE8 3AE Tyne And Wear County Sale Date: 16/04/2014 (209 days on mkt) Bldg Type: IndustrialWarehouse Sale Price: £97,500 - Confirmed Year Built/Age: Built 1970 Age: 44 Price/SF: £20.56 NIA: 4,742 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 3004084 Sale Conditions: - Research Status: Confirmed 149 1 St James Gate SOLD

Newcastle Upon Tyne, NE1 4AD Tyne And Wear County Sale Date: 01/08/2014 Bldg Type: Office Sale Price: £18,050,000 - Confirmed Year Built/Age: Built 2004 Age: 9 Price/SF: £302.25 NIA: 59,719 SF

Reversionary Yield: - Net Initial Yield: 7.00% Comp ID: 3154787 Sale Conditions: - Research Status: Confirmed 150 The Old Post Office - St Nicholas St SOLD

Newcastle Upon Tyne, NE1 1RH Tyne And Wear County Sale Date: 01/06/2014 Bldg Type: Office Sale Price: - Year Built/Age: Built 1823 Age: 190 Price/SF: - NIA: 15,252 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 3087551 Sale Conditions: - Research Status: In Progress

Copyrighted report licensed to Newcastle City Council - 584768. 01/04/2015 Page 25

109 P04

151 Unit 1-7 - Parker Court - St Omers Rd SOLD

Gateshead, NE11 9EW Tyne And Wear County Sale Date: 05/08/2013 (392 days on mkt) Bldg Type: IndustrialWarehouse Sale Price: £115,000 - Confirmed Year Built/Age: Built 1990 Age: 23 Price/SF: £4.46 NIA: 25,779 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2809665 Sale Conditions: - Research Status: Confirmed 152 Unit C - Federation Business Park - St Omers Rd SOLD

Gateshead, NE11 9HR Tyne And Wear County Sale Date: 09/09/2013 (1,734 days on mkt) Bldg Type: Industrial Sale Price: - Year Built/Age: Built 1983 Age: 30 Price/SF: - NIA: 43,333 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2891736 Sale Conditions: - Research Status: In Progress 153 St Peters Wharf, Unit Bascule Bar & Bistro - St Peters Basin PENDING

Newcastle Upon Tyne, NE6 1TZ Tyne And Wear County Asking Price: - Sale Type: Owner/User Price/SF: - Unit Type: 1,913 SF Office Unit Days on Market: 441 Bldg Status: Built 1994 Sale Status: Pending NIA: 23,044 SF

Net Initial Yield: - Sale Conditions: -

154 4 Station Rd SOLD

Newcastle Upon Tyne, NE15 8LS Tyne And Wear County Sale Date: 06/03/2014 (150 days on mkt) Bldg Type: RetailStorefront Retail/Residential Sale Price: £37,000 - Confirmed Year Built/Age: Built 1920 Age: 94 Price/SF: £35.17 NIA: 1,052 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2992508 Sale Conditions: - Research Status: Confirmed 155 Stoneygate House - Stoneygate Ln PENDING

Gateshead, NE10 0HJ Tyne And Wear County Asking Price: £625,000 Sale Type: Owner/User Price/SF: £11.05 Bldg Type: Industrial Days on Market: 723 Bldg Status: Sale Status: Pending NIA: 56,578 SF

Net Initial Yield: - Sale Conditions: -

156 356 Sunderland Rd SOLD

Gateshead, NE8 3QP Tyne And Wear County Sale Date: 22/07/2013 (98 days on mkt) Bldg Type: RetailStorefront Retail/Residential Sale Price: £55,000 - Confirmed Year Built/Age: Built 1930 Age: 83 Price/SF: £89.43 NIA: 615 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2807086 Sale Conditions: - Research Status: Confirmed

Copyrighted report licensed to Newcastle City Council - 584768. 01/04/2015 Page 26

110 P04

157 The Potters Wheel - Sunniside SOLD

Newcastle Upon Tyne, NE16 5EE Tyne And Wear County Sale Date: 05/07/2013 (151 days on mkt) Bldg Type: RetailBar Sale Price: £180,000 - Confirmed Year Built/Age: Built 1975 Age: 38 Price/SF: £30.38 NIA: 5,924 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2820331 Sale Conditions: - Research Status: Confirmed 158 Leadgate House - The Old Coach Sta SOLD

Newcastle Upon Tyne, NE15 0NT Tyne And Wear County Sale Date: 04/04/2014 (914 days on mkt) Bldg Type: RetailStorefront Retail/Residential Sale Price: £460,000 - Confirmed Year Built/Age: Built 1934 Age: 79 Price/SF: £102.86 NIA: 4,472 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2998683 Sale Conditions: - Research Status: Confirmed 159 Cobalt 13a - The Silverlink N SOLD

Newcastle Upon Tyne, NE27 0QJ Tyne And Wear County Sale Date: 17/12/2013 (22 days on mkt) Bldg Type: Office Sale Price: £3,500,000 - Confirmed Year Built/Age: Built 2008 Age: 5 Price/SF: £115.03 NIA: 30,426 SF

Reversionary Yield: - Net Initial Yield: 13.28% Comp ID: 2932432 Sale Conditions: - Research Status: Confirmed 160 Units 6-10 Keel Row - Office Unit, Unit 7 - The Watermark SOLD

Gateshead, NE11 9SZ Tyne And Wear County Sale Date: 01/06/2014 (509 days on mkt) Unit Type: 1,856 SF Office Unit Sale Price: £225,000 Year Built/Age: Built 2008 Age: 6 Price/SF: £121.23 NIA: 1,856 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 3049127 Sale Conditions: - Research Status: In Progress 161 211-213 Two Ball Lonnen SOLD

Newcastle Upon Tyne, NE4 9RS Tyne And Wear County Sale Date: 01/09/2014 (207 days on mkt) Bldg Type: RetailStorefront Retail/Office Sale Price: £210,000 - Confirmed Year Built/Age: Built 1970 Age: 44 Price/SF: £159.82 NIA: 1,314 SF

Reversionary Yield: - Net Initial Yield: 4.70% Comp ID: 3132266 Sale Conditions: - Research Status: Confirmed 162 2 Tyne Vw SOLD

Newcastle Upon Tyne, NE15 8DE Tyne And Wear County Sale Date: 18/12/2013 (212 days on mkt) Bldg Type: RetailStorefront Retail/Residential Sale Price: £31,000 - Confirmed Year Built/Age: - Price/SF: £80.10 NIA: 387 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2934787 Sale Conditions: - Research Status: Confirmed

Copyrighted report licensed to Newcastle City Council - 584768. 01/04/2015 Page 27

111 P04

163 HSS Unit - Union Rd SOLD

Newcastle Upon Tyne, NE6 1EH Tyne And Wear County Sale Date: 01/12/2013 (6 days on mkt) Bldg Type: IndustrialDistribution Sale Price: - Year Built/Age: Built 1980 Age: 33 Price/SF: - NIA: 6,482 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 3002822 Sale Conditions: - Research Status: In Progress 164 Walbottle Methodist Church - Walbottle Rd PENDING

Newcastle Upon Tyne, NE15 8HY Tyne And Wear County Asking Price: £250,000 Sale Type: Owner/User Price/SF: £72.36 Bldg Type: OfficeOffice/Residential Days on Market: 616 Bldg Status: Sale Status: Pending NIA: 3,455 SF

Net Initial Yield: - Sale Conditions: -

165 369-375 Walker Rd PENDING

Newcastle Upon Tyne, NE6 2XW Tyne And Wear County Asking Price: £275,000 Sale Type: Owner/User Price/SF: £15.25 Bldg Type: Industrial Days on Market: 175 Bldg Status: Built 1933 Sale Status: Pending NIA: 18,034 SF

Net Initial Yield: - Sale Conditions: -

166 Charlton Bonds Building - Waterloo St SOLD

Newcastle Upon Tyne, NE1 4DE Tyne And Wear County Sale Date: 01/11/2013 (174 days on mkt) Bldg Type: OfficeLoft/Creative Space Sale Price: - Year Built/Age: Built 1885 Renov 1980 Age: 128 Price/SF: - NIA: 30,958 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2932388 Sale Conditions: - Research Status: In Progress 167 Driving Test Centre - Waterside Dr SOLD

Gateshead, NE11 9HU Tyne And Wear County Sale Date: 27/03/2014 (177 days on mkt) Bldg Type: Office Sale Price: £1,970,000 - Confirmed Year Built/Age: Built 2007 Age: 7 Price/SF: £1,016.51 NIA: 1,938 SF

Reversionary Yield: - Net Initial Yield: 8.72% Comp ID: 2994611 Sale Conditions: Auction Sale Research Status: Confirmed 168 Unit 6 - Benton Square Industrial Estate - Wesley Way SOLD

Newcastle Upon Tyne, NE12 9TA Tyne And Wear County Sale Date: 09/04/2014 (552 days on mkt) Bldg Type: Industrial Sale Price: £320,000 - Confirmed Year Built/Age: Built 1970 Age: 44 Price/SF: £26.82 NIA: 11,932 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2998571 Sale Conditions: - Research Status: Confirmed

Copyrighted report licensed to Newcastle City Council - 584768. 01/04/2015 Page 28

112 P04

169 1 West Rd PENDING

Newcastle Upon Tyne, NE20 9SU Tyne And Wear County Asking Price: - Sale Type: Investment Price/SF: - Bldg Type: Office Days on Market: 48 Bldg Status: Built 1830 Sale Status: Pending NIA: 2,441 SF

Net Initial Yield: - Sale Conditions: -

170 2 West Rd SOLD

Newcastle Upon Tyne, NE20 9SU Tyne And Wear County Sale Date: 21/02/2013 Bldg Type: OfficeOffice Live/Work Unit Sale Price: £108,000 - Confirmed Year Built/Age: Built 1953 Age: 60 Price/SF: £154.51 NIA: 699 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2940749 Sale Conditions: Auction Sale Research Status: Confirmed 171 Bolbec Hall - Westgate Rd PENDING

Newcastle Upon Tyne, NE1 1SE Tyne And Wear County Asking Price: £1,100,000 Sale Type: Owner/User Price/SF: £65.89 Bldg Type: Office Days on Market: 1799 Bldg Status: Built 1909 Sale Status: Pending NIA: 16,695 SF

Net Initial Yield: - Sale Conditions: -

172 Neville Hall - Westgate Rd SOLD

Newcastle Upon Tyne, NE1 1SE Tyne And Wear County Sale Date: 01/05/2013 (695 days on mkt) Bldg Type: Office Sale Price: £450,000 - Confirmed Year Built/Age: Built 1871 Age: 141 Price/SF: £49.06 NIA: 9,172 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2833087 Sale Conditions: - Research Status: Confirmed 173 297 Westgate Rd SOLD

Newcastle Upon Tyne, NE4 6AJ Tyne And Wear County Sale Date: 27/11/2013 (22 days on mkt) Bldg Type: RetailStorefront Sale Price: £65,000 Year Built/Age: Built 1890 Age: 123 Price/SF: £57.88 NIA: 1,123 SF

Reversionary Yield: - Net Initial Yield: - Comp ID: 2935674 Sale Conditions: - Research Status: In Progress

Copyrighted report licensed to Newcastle City Council - 584768. 01/04/2015 Page 29

113 P04 Appendix 7 Publically Available Evidence

COMMERCIAL PLOT RATIO ANALYSIS

Definition & Example Scheme Type GIA (sq m) Site Site Size Use Class* Coverage (HA) A1, A2, A3, A4, A5 – Convenience Store*** 1600 80% 0.20 Small Retail A1 – Supermarket Supermarket 2500 35% 0.60 B1(a) - Offices Office – City Centre 4000 400% 0.10 Office – Neighbourhoods/Out 2000 40% 0.50 of Town C1 – Hotel** Hotel – CITY CENTRE 8000 (135 200% 0.40 Hotel – NON-CITY CENTRE rooms) 60% 0.25 1800 (60 rooms)

C2 – Resi dential Nursing Home 3000 60% 0.50 Institution

Use Analysis RETAIL WAREHOUSE Based on plot ratio adopted for Light Industrial to allow for parking and servicing requirement. Assuming 1 parking space per 33m2 of development SMALL RETAIL Based on a small single-storey retail parade with some external space for servicing SUPERMARKET Information provided by analysis of planning applications as follows:

WAITROSE, OSBORNE ROAD Size - 1,204m2 Site Area - 0.12 ha PLOT RATIO - 100%

SAINSBURY’S, HIGH HEATON Size - 5,935m2 Site Area - 3.10 ha PLOT RATIO - 20%

OFFICES - CITY Based on a 4 storey scheme. OFFICES - The Employment Land Review “Newcastle Property Market Overview and Demand NEIGHBOURHOODS Assessment” February 2010 utilises a plot ratio of 80% LIGHT INDUSTRIAL & The Employment Land Review “Newcastle Property Market Overview and Demand INDUSTRIAL Assessment” February 2010 utilises a plot ratio of 42% CITY CENTRE HOTEL Information provided by analysis of planning applications as follows:

SLEEPERZ HOTEL Size - 2,910m2 Site Area - 0.164 ha Beds - 95 PLOT RATIO - 177% SIZE/ROOM - 31m2

SANDMAN HOTEL

Size - 4,875m2 Site Area - 0.390 ha Beds - 170 PLOT RATIO - 125% SIZE/ROOM - 29m2

FENKLE STREET

114 P04 Size - 6,079m2 Site Area - 0.260 ha Beds - 148 PLOT RATIO - 233% SIZE/ROOM - 41m2

NEWGATE

Size - 18,800m2 Site Area - 0.700 ha Beds - 675 PLOT RATIO - 268% SIZE/ROOM - 28m2

STEPHENSON QUARTER

Size - 17,800m2 Beds - 251 SIZE/ROOM - 71m2

Other Sources:

JURYS INN, SOUTH SHORE, GATESHEAD

Size - 4,645m2 Beds - 204 SIZE/ROOM - 23m2

MALMAISON, QUAYSIDE

Size - 8,650m2 Beds - 122 SIZE/ROOM - 71m2

NON CITY CENTRE Assumption of a 2 storey development on a plot with landscaping and customer parking HOTEL and servicing RESIDENTIAL Assumption of a 2 storey development with landscaping and parking provision INSTITUTION STUDENT HOUSING Information provided by analysis of planning applications as follows:

DOWNINGS, PHASE 2

Size - 10,997 Site Area - 0.27 ha Beds - 351 PLOT RATIO - 400% SIZE/ROOM - 31m2

PITT STREET

Size - 6,515 Site Area - 0.88 ha Beds - 214 PLOT RATIO - 74% SIZE/ROOM - 30m2

115 P04 APPENDIX 7 Freehold Comparables Gateshead and Newcastle (Oct. 2015)

Price Per Price Per Property Address PropertyType Sale Date Bldg Sq Ft Sale Price SqFt (Net) Sqm (NET) St Peters Basin, Bascule Bar & Bistro/GroundOffice 09/09/2015 23044 175000 91.48 £8.50 507 Shields Rd Industrial 01/09/2015 30492 385000 12.63 £1.17 38-40 Grainger St Retail 14/08/2015 3082 660000 214.15 £19.90 Toll Bridge Rd (5 Properties) Industrial 12/08/2015 61464 4500000 73.21 £6.80 North Rd (28 Properties) Mixed 10/08/2015 1571717 260000000 165.42 £15.37 High St (2 Properties) Mixed 13/07/2015 6786 525000 77.36 £7.19 1-3 Penn St Industrial 13/07/2015 3115 203000 65.17 £6.05 5 Penn St Industrial 13/07/2015 5402 184000 34.06 £3.16 Railway St Industrial 13/07/2015 6407 131000 20.45 £1.90 502 Queens Dr (4 Properties) Hospitality 03/07/2015 8500000 14A Lyndhurst Ter Retail 01/07/2015 827 42000 50.79 £4.72 99-101 St Georges Ter Retail 29/06/2015 2751 660000 239.91 £22.29 Denby Dale Rd (231 Properties) Mixed 22/06/2015 138600000 7 William Jessop Way (15 Properties) Mixed 17/06/2015 825554 355100000 430.1 £39.96 Fossway (2 Properties) Retail (Retail Park) 01/06/2015 218143 46250000 212.02 £19.70 Waldridge Rd Retail 21/05/2015 5641 605000 107.25 £9.96 123-125 Northumberland St Retail 17/05/2015 3767 1400000 371.65 £34.53 Bath St Industrial 11/05/2015 40806 406000 9.95 £0.92 100-108 Westgate Rd (2 Retail Units) Retail 11/05/2015 694 95000 136.89 £12.72 Shelley Rd Industrial 28/04/2015 56304 1250000 22.2 £2.06 Eleventh Ave (6 Properties) Industrial 27/04/2015 180430 12050000 66.78 £6.20 105 Bensham Rd Retail 16/04/2015 915 110000 120.22 £11.17 33 St James Blvd Office 08/04/2015 28813 7725000 268.11 £24.91 11-12 Leazes Cres Retail 02/04/2015 585 150000 256.41 £23.82 74-76 Shields Rd Retail 01/04/2015 5295 150000 28.33 £2.63 369-375 Walker Rd Industrial 30/03/2015 18034 205000 11.37 £1.06 60-96 Jamaica St (23 Properties) Mixed 19/03/2015 680000000 St Peters Basin, 2/1st Floor Office 19/03/2015 23044 170000 118.72 £11.03

116 P04 Shelly Rd, 10/Ground Light Industrial 15/03/2015 55157 145000 17.95 £1.67 54-72 Queen St (42 Properties) Retail 06/03/2015 34948 1100000000 31475.33 £2,924.15 Third Ave Industrial 28/02/2015 6327 164650 26.02 £2.42 Blaydon Bank Industrial 27/02/2015 5266 50000 9.49 £0.88 Phoenix Rd Industrial 23/02/2015 55059 2250000 40.87 £3.80 Octavian Way, 3/Ground Industrial 20/02/2015 5775 170000 59.13 £5.49 81-87 Clayton St (3 Retail Units) Retail 15/02/2015 2462 240000 97.48 £9.06 13-19 Lonsdale Ter Industrial 22/01/2015 426 43500 102.11 £9.49 Bottle Bank Hospitality 06/01/2015 88900 37700000 424.07 £39.40 52 Front St Retail 01/01/2015 1210 154621 127.79 £11.87 Saltmeadows Rd (7 Properties) Mixed 19/12/2014 420135 7100000 16.9 £1.57 42 Clayton St Retail 19/12/2014 2029 185000 91.18 £8.47 53-61 Grainger St Retail 14/12/2014 16420 1120000 68.21 £6.34 Follingsby Clos (29 Properties) Mixed 01/12/2014 1423574 226500000 159.11 £14.78 16-24 Pink Ln, Ground Retail 01/12/2014 2106 125000 126.9 £11.79 Brunswick Industrial Esta Industrial 30/11/2014 3870 140000 36.18 £3.36 Chainbridge Rd Industrial 01/11/2014 115694 1950000 16.85 £1.57 68-76 Front St Retail 22/10/2014 10725 350000 32.63 £3.03 10-14 Brunel St Industrial 13/10/2014 16483 175000 10.62 £0.99 Kingfisher Blvd (9 Properties) Mixed 01/10/2014 232392 12750000 54.86 £5.10 211-213 Two Ball Lonnen Retail 01/09/2014 1314 210000 159.82 £14.85 Market St, 4th Floor Retail (District Shopping Centre)29/08/2014 51359 155000 93.37 £8.67 89 Sandyford Rd Office 23/08/2014 34134 4600000 134.76 £12.52 Penshaw Way Industrial 31/07/2014 10678 425000 39.8 £3.70 Front St Industrial 22/07/2014 1955 206000 105.37 £9.79 Station Ln Industrial 15/07/2014 6804 310000 45.56 £4.23 Rotary Way Retail 12/07/2014 2537 1125000 443.44 £41.20 Kingsway N (7 Properties) Industrial 01/07/2014 99722 5430000 54.45 £5.06 5 Queensway N Industrial 01/07/2014 33126 1490000 44.98 £4.18 45 Front St Retail 19/06/2014 961 130000 135.28 £12.57 Sandison Ct, 3/Ground Industrial 13/06/2014 27631 130000 34.27 £3.18 95-117 Newgate St Retail 01/06/2014 194719 35000000 179.75 £16.70

117 P04 Jedburgh Ct Industrial 01/06/2014 8578 470000 54.79 £5.09 8-10A Front St Retail 29/05/2014 539 40000 74.21 £6.89 Octavian Way (2 Industrial Units) Industrial 27/05/2014 4092 165000 40.32 £3.75 Tilley Rd Industrial 19/05/2014 23797 500000 21.01 £1.95 Cowen Rd Industrial 01/05/2014 6754 390000 57.74 £5.36 Jackson St Retail 30/04/2014 102597 8500000 82.85 £7.70 Shelly Rd, 1a/Ground Light Industrial 28/04/2014 55157 36000 24.16 £2.24 221 Shields Rd Retail 22/04/2014 833 80000 96.04 £8.92 14 South Shore Rd Industrial 16/04/2014 4742 97500 20.56 £1.91 11-12 Leazes Cres Retail 15/04/2014 585 175000 299.15 £27.79 Albany Rd Industrial 10/04/2014 5375 38000 7.07 £0.66 37-44 Hutton Clos, Unit 43/Ground Industrial 09/04/2014 24230 95000 30.49 £2.83 Malvern Gdns Industrial 09/04/2014 2363 85000 35.97 £3.34 The Old Coach Sta Retail 04/04/2014 4472 460000 102.86 £9.56 Halifax Rd Industrial 04/04/2014 6401 280000 43.74 £4.06 Market St Retail 01/04/2014 29501 2300000 77.96 £7.24 5-9 Station Rd Retail 01/04/2014 878 47500 54.1 £5.03 34 Durham Rd Retail 24/03/2014 22732 16250000 714.85 £66.41 48-74 Downend Rd Retail 24/03/2014 6913 840000 121.51 £11.29 17 Saltmeadows Rd Industrial 18/03/2014 30212 400000 13.24 £1.23 4 Station Rd Retail 06/03/2014 1052 37000 35.17 £3.27 Brunswick Park Industrial 01/03/2014 2868 90000 31.38 £2.92 13-19 Spout Ln (3 Retail Units) Retail 20/02/2014 1077 118000 109.56 £10.18 Ravens Way (28 Properties) Mixed 07/02/2014 1177046 75000000 63.72 £5.92 41-41A Spout Ln Retail 31/01/2014 752 105000 139.63 £12.97 1-5 Lee Clos, 1/Ground Industrial 31/01/2014 15890 100000 23.39 £2.17 Jedburgh Ct, 383F/Ground Industrial 30/01/2014 10132 36000 70.87 £6.58 Mayoral Way, 321T/Ground Industrial 10/01/2014 16519 25000 49.41 £4.59 29-39 Market St, 29-31 Retail 06/01/2014 46373 2700000 127.02 £11.80 10 Harraton Ter Retail 01/01/2014 822 65000 79.08 £7.35 2 Tyne Vw Retail 18/12/2013 387 31000 80.1 £7.44 133-137 Grainger St Retail 16/12/2013 3139 1800000 573.43 £53.27

118 P04 24-26 Mosley St Retail 29/11/2013 17086 1750000 102.42 £9.52 297 Westgate Rd Retail 27/11/2013 1123 65000 57.88 £5.38 12-13 Sedling Rd Industrial 22/11/2013 27532 500000 18.16 £1.69 Don St Industrial 22/11/2013 26795 140000 5.22 £0.48 Factory Rd Industrial 12/11/2013 15737 790000 50.2 £4.66 5 Nun St Retail 30/09/2013 2851 249999 87.69 £8.15 1-1A St. Pauls Ter Retail 16/09/2013 480 65000 135.42 £12.58 First Ave, 14/Ground Industrial 10/09/2013 31298 95000 28.33 £2.63 Albany Rd Industrial 09/09/2013 3774 50000 13.25 £1.23 14 High Bridge Retail 07/09/2013 1021 270000 264.45 £24.57 355A-355B Dukesway Ct Industrial 04/09/2013 7937 140000 17.64 £1.64 Rear Of Coxon Ter Industrial 29/08/2013 8820 125000 14.17 £1.32 St Omers Rd Industrial 05/08/2013 25779 115000 4.46 £0.41 1-7 Elite Retail 23/07/2013 11601 100000 8.62 £0.80 356 Sunderland Rd Retail 22/07/2013 615 55000 89.43 £8.31 19 Brunswick Vlg Industrial 26/06/2013 8324 358000 43.01 £4.00 Nest Rd Industrial 18/06/2013 136861 1005000 7.34 £0.68 Fell Way Retail 06/06/2013 512 45000 87.89 £8.17 Drum Rd Industrial 03/06/2013 85000 3825000 45 £4.18 Kingsway N Hospitality 01/05/2013 61353 9100000 148.32 £13.78 Benfield Rd (2 Properties) Mixed 30/04/2013 9692 316000 32.6 £3.03 15-29 Side Hospitality 05/04/2013 35000 6500000 185.71 £17.25 Green Ln Industrial 01/04/2013 69222 1600000 23.11 £2.15 Durham Rd Industrial 28/03/2013 2792 148000 53.01 £4.92 18-20 Scrogg Rd Retail 14/03/2013 18075 155000 8.58 £0.80 9-11 Main St Retail 12/03/2013 2354 125000 53.1 £4.93 500 Argyle St (8 Properties) Hospitality 01/02/2013 1529384 620000000 405.39 £37.66 8 Ridley Pl Retail 01/02/2013 1770 286000 161.58 £15.01 Mosley St Office 31/01/2013 48231 9500000 196.97 £18.30 Blenheim Pl (2 Industrial Units) Industrial 31/01/2013 5390 90000 16.7 £1.55 Vance Ct, 6 Industrial 30/01/2013 20042 115000 60.53 £5.62 Storey Ct (2 Properties) Industrial 28/01/2013 45103 91000 2.02 £0.19

119 P04 Sedling Rd Industrial 03/01/2013 11773 75000 6.37 £0.59 5 Clarence St Industrial 31/12/2012 16516 500000 30.27 £2.81 566-580A Durham Rd Retail 21/12/2012 12965 225000 17.35 £1.61 Wincomblee Rd (6 Properties) Industrial 20/12/2012 70424 3590000 50.98 £4.74 37-41 Stowell St Retail 14/12/2012 6171 1350000 218.77 £20.32 62-64 Front St Retail 26/11/2012 3530 375000 106.23 £9.87 263 Westgate Rd Retail 16/11/2012 363 72000 198.35 £18.43 Buxton St Hospitality 15/11/2012 99015 12500000 126.24 £11.73 311 Foster Ct, S311A/Ground Industrial 17/10/2012 14946 250000 38.73 £3.60 Nest Rd Industrial 01/10/2012 29550 525000 17.77 £1.65 12 Front St Retail 27/09/2012 2157 60000 27.82 £2.58 Lancaster Rd Industrial 17/09/2012 255618 2800000 10.95 £1.02 162 Brinkburn St S Industrial 06/09/2012 26629 180000 6.76 £0.63 24-34 Northumberland St (2 Hospitality Units)Hospitality 01/09/2012 9323 8650000 927.81 £86.20 7-11 Nun St Retail 01/09/2012 1181 525000 444.54 £41.30 Earlsway, 77/78 Industrial 31/08/2012 278285 100000 21.89 £2.03 128-130 Shields Rd Retail 30/08/2012 1765 100000 56.66 £5.26 St Omers Rd (4 Properties) Mixed 01/08/2012 95735 600000 6.27 £0.58 199 Two Ball Lonnen Retail 31/07/2012 1415 142000 100.35 £9.32 Eleventh Ave N, A2/Ground Industrial 01/07/2012 9555 65000 52.08 £4.84 Durham Rd Industrial 29/06/2012 3935 340000 86.4 £8.03 Stamfordham Rd Retail 28/06/2012 7406 1375000 185.66 £17.25 1-1A Arcadia Retail 26/06/2012 1062 90000 84.75 £7.87 38 St Marys Pl Retail 15/06/2012 4151 640000 154.18 £14.32 14-16 Front St Retail 11/06/2012 2156 60000 27.83 £2.59 The Avenues, 15 Industrial 08/06/2012 7406 68000 45.79 £4.25 234 Park Rd Retail 01/05/2012 728 60000 82.42 £7.66 Spring Garden Ln Industrial 27/04/2012 2115 100000 47.28 £4.39 Angel Park Industrial 16/04/2012 30000 1000000 33.33 £3.10 St Omers Rd Industrial 15/04/2012 25779 145000 5.62 £0.52 678 Durham Rd Retail 10/04/2012 1240 115000 92.74 £8.62 Drum Industrial Estate Industrial 05/04/2012 10652 450000 42.25 £3.93

120 P04 North Rd Industrial 01/04/2012 143910 2100000 14.59 £1.36 Chainbridge Rd Industrial 26/03/2012 144620 2500000 17.29 £1.61 99-109 Grainger St Retail 02/03/2012 6901 1150000 166.64 £15.48 Brunswick Industrial Esta Industrial 29/02/2012 9854 195000 19.79 £1.84 Walton Rd Industrial 01/02/2012 13630 625000 45.85 £4.26 Heddon On The Wall Industrial 27/01/2012 4572 300000 65.62 £6.10 28-29 Front St Light Industrial 27/01/2012 4332 75000 17.31 £1.61 262 Princeway Central Industrial 17/01/2012 110080 2650000 24.07 £2.24 186-188 Saltwell Rd Retail 13/01/2012 782 67000 85.68 £7.96 15-20 Faraday Clos Industrial 03/01/2012 27670 187200 6.77 £0.63

121 P04 APPENDIX 7 Leasehold Comparables Gateshead and Newcastle (Oct. 2015)

Total Sq Ft Achieved Rent/Sq Achieved Sign Date Start Date Address Post Code Use Leased Ft/Yr Rent/Sqm/Yr 16/08/2015 15/10/2015 16C Follingsby Park NE10 8YG Industrial 9,273 5.00 £0.46 10/07/2015 10/07/2015 Baltic Rd NE10 0SB Industrial 1,808 4.20 £0.39 22/06/2015 22/06/2015 Cowen Rd NE21 5TW Industrial 2,785 3.95 £0.37 08/06/2015 07/08/2015 Ninth Ave E NE11 0EH Industrial 7,919 4.86 £0.45 01/06/2015 01/07/2015 Riversdale Ct NE15 8SG Industrial 2,000 4.50 £0.42 22/05/2015 22/06/2015 Brewery Ln NE10 0EY Industrial 1,020 3.92 £0.36 20/05/2015 20/06/2015 Noble Street Industrial Estate NE4 7PD Industrial 2,134 6.09 £0.57 03/05/2015 01/08/2015 Teal Farm Way NE38 8QD Industrial 11,000 4.50 £0.42 01/05/2015 01/05/2015 Delta Bank Rd NE11 9DJ Industrial 20,000 5.75 £0.53 10/04/2015 10/04/2015 Cowen Rd NE21 5TW Industrial 2,785 3.77 £0.35 09/04/2015 09/04/2015 Baltic Rd NE10 0SB Industrial 4,764 4.20 £0.39 01/04/2015 01/04/2015 Hadrian Ct NE11 0XW Industrial 1,066 6.33 £0.59 01/04/2015 01/04/2015 2 St Omers Rd NE11 9EL Industrial 1,255 2.53 £0.24 01/04/2015 01/04/2015 2 St Omers Rd NE11 9EL Industrial 468 6.80 £0.63 23/03/2015 23/03/2015 Hadrian Ct NE11 0XW Industrial 1,106 6.37 £0.59 16/03/2015 16/03/2015 Hills Ct NE21 5NH Industrial 1,873 3.42 £0.32 15/03/2015 15/03/2015 Green Ln NE10 0QH Industrial 7,747 3.10 £0.29 15/03/2015 15/03/2015 Jedburgh Ct NE11 0BQ Industrial 904 6.31 £0.59 15/03/2015 15/03/2015 Lloyd Ct NE11 9EP Industrial 990 5.56 £0.52 15/03/2015 15/03/2015 Tundry Way NE21 5SJ Industrial 3,695 4.74 £0.44 06/03/2015 06/03/2015 Stirling Close NE38 8QD Industrial 1,977 3.29 £0.31 02/03/2015 02/03/2015 Jedburgh Ct NE11 0BQ Industrial 2,538 5.23 £0.49 01/03/2015 01/03/2015 Derwenthaugh Marina NE21 5LL Industrial 2,925 5.50 £0.51 01/03/2015 01/03/2015 53 Hutton Close NE38 0AH Industrial 6,955 3.52 £0.33 27/02/2015 27/02/2015 Stiring Close NE38 8QD Industrial 1,650 3.52 £0.33 20/02/2015 20/02/2015 Federation Way NE11 9HL Industrial 5,828 4.12 £0.38 15/02/2015 15/07/2015 Follingsby Ave NE10 8YF Industrial 40,117 4.62 £0.43 01/02/2015 01/02/2015 Hills Ct NE21 5NH Industrial 2,872 2.99 £0.28

122 P04 01/02/2015 01/02/2015 Lee Close NE38 8QF Industrial 3,178 3.74 £0.35 01/02/2015 01/02/2015 Phoenix Rd NE38 0AD Industrial 2,429 4.32 £0.40 23/01/2015 23/01/2015 Stadium Rd NE10 0XF Industrial 1,244 4.98 £0.46 20/01/2015 20/04/2015 Chainbridge Rd NE21 5ST Industrial 15,021 2.53 £0.24 14/01/2015 14/01/2015 Earlsway NE11 0QH Industrial 2,723 6.90 £0.64 13/01/2015 13/01/2015 Octavian Way NE11 0HZ Industrial 7,538 3.81 £0.35 27/12/2014 27/12/2014 Phoenix Rd NE38 0AD Industrial 2,429 4.17 £0.39 17/12/2014 16/01/2015 383A Jedburgh Ct NE11 0BQ Industrial 1,015 5.42 £0.50 16/12/2014 16/12/2014 13 Denmark St NE6 2XF Industrial 1,000 5.00 £0.46 12/12/2014 12/12/2014 17-19 Foundry Ln NE6 1LH Industrial 2,110 4.74 £0.44 06/12/2014 07/02/2015 Benfield Rd NE6 4NQ Industrial 10,058 2.50 £0.23 02/12/2014 02/03/2015 Kingsway North NE11 0JH Industrial 17,897 5.59 £0.52 01/12/2014 01/01/2015 Bells Close Industrial Estate NE15 6UF Industrial 4,500 2.22 £0.21 01/12/2014 01/03/2015 Station Approach NE11 0UG Industrial 10,488 1.72 £0.16 20/11/2014 20/11/2014 Earlsway NE11 0QH Industrial 1,339 6.53 £0.61 15/11/2014 15/11/2014 Phoenix Rd NE38 0AD Industrial 2,450 4.08 £0.38 10/11/2014 10/01/2015 8 Princes Park NE11 0NF Industrial 6,078 5.76 £0.54 01/11/2014 01/11/2014 Chainbridge Rd NE21 5AB Industrial 20,677 0.58 £0.05 28/10/2014 28/10/2014 Benfield Rd NE6 4NQ Industrial 4,350 2.30 £0.21 28/10/2014 28/10/2014 Rear Of Westfield Ter NE8 4LD Industrial 4,004 2.50 £0.23 24/10/2014 24/10/2014 St Omers Rd NE11 9EW Industrial 2,702 2.17 £0.20 22/10/2014 22/10/2014 Toll Bridge Rd NE21 5TR Industrial 3,488 5.02 £0.47 21/10/2014 20/11/2014 Toll Bridge Rd NE21 5TR Industrial 4,628 3.78 £0.35 16/10/2014 16/11/2014 Forth Banks NE1 3PG Industrial 1,200 6.00 £0.56 15/10/2014 15/10/2014 Neilson Rd NE8 0EW Industrial 2,135 5.00 £0.46 15/10/2014 15/10/2014 Neilson Rd NE8 3DB Industrial 13,190 4.25 £0.39 10/10/2014 10/11/2014 Forth Banks NE1 3PG Industrial 1,074 5.78 £0.54 10/10/2014 10/11/2014 Stirling Close NE38 8QD Industrial 759 4.00 £0.37 03/10/2014 03/10/2014 11 Riversdale Ct NE15 8SG Industrial 1,000 4.50 £0.42 01/10/2014 01/10/2014 Earlsway NE11 0RQ Industrial 1,100 11.82 £1.10 01/10/2014 01/10/2014 Station Approach NE11 0UG Industrial 6,897 3.48 £0.32 26/09/2014 03/10/2014 69 Back Alwinton Ter NE3 1UD Industrial 1,995 3.01 £0.28 25/09/2014 25/10/2014 Tenth Ave W NE11 0HL Industrial 3,122 10.50 £0.98

123 P04 19/09/2014 19/10/2014 Hills Ct NE21 5NH Industrial 1,877 3.50 £0.33 10/09/2014 01/10/2014 15-21 Riversdale Ct NE15 8SG Industrial 2,000 4.60 £0.43 04/09/2014 15/09/2014 158 Brinkburn St NE6 2AR Industrial 11,612 2.58 £0.24 03/09/2014 03/09/2014 5-8 Princes Park NE11 0NF Industrial 6,781 5.50 £0.51 02/09/2014 02/09/2014 252.02 Dukesway NE11 0PZ Industrial 3,444 5.87 £0.55 01/09/2014 01/09/2014 Shelley Rd NE15 9RT Industrial 27,536 3.00 £0.28 01/09/2014 01/09/2014 Tenth Ave W NE11 0HL Industrial 2,668 12.29 £1.14 23/08/2014 22/09/2014 Sedling Rd NE38 9BZ Industrial 2,938 3.40 £0.32 20/08/2014 19/09/2014 Toll Bridge Rd NE21 5TR Industrial 4,064 4.18 £0.39 15/08/2014 01/10/2014 Brough Park Trading Estate NE6 2YF Industrial 16,408 3.35 £0.31 15/08/2014 15/11/2014 Follingsby Close NE10 8YG Industrial 13,416 4.75 £0.44 15/08/2014 15/08/2014 Toll Bridge Rd NE21 5TR Industrial 3,448 4.04 £0.38 06/08/2014 06/08/2014 Faraday Close NE38 8QA Industrial 3,137 3.73 £0.35 03/08/2014 04/08/2014 Fisher St NE6 4LT Industrial 10,022 2.99 £0.28 31/07/2014 01/08/2014 Goldcrest Way NE15 8NZ Industrial 15,680 5.00 £0.46 30/07/2014 30/07/2014 Chainbridge Rd NE21 5ST Industrial 4,572 4.00 £0.37 24/07/2014 22/09/2014 Eleventh Ave NE11 0JY Industrial 5,057 5.50 £0.51 14/07/2014 14/07/2014 22 Back Goldspink Ln NE2 1NU Industrial 1,203 6.03 £0.56 07/07/2014 07/07/2014 St Omers Rd NE11 9EW Industrial 2,840 3.25 £0.30 03/07/2014 01/09/2014 333 Dukesway Ct NE11 0BH Industrial 8,774 5.75 £0.53 03/07/2014 03/07/2014 4 Ayton St NE6 2FF Industrial 700 4.57 £0.42 02/07/2014 02/07/2014 24-25A Back Goldspink Ln NE2 1NU Industrial 2,496 5.01 £0.47 02/07/2014 01/08/2014 The Avenues NE11 0NJ Industrial 2,433 3.70 £0.34 30/06/2014 30/06/2014 Teal Farm Way NE38 8QD Industrial 4,000 5.00 £0.46 27/06/2014 27/06/2014 A2 Eleventh Avenue North NE11 0NJ Industrial 1,216 6.17 £0.57 17/06/2014 17/06/2014 Cowen Rd NE21 5TX Industrial 1,807 4.15 £0.39 13/06/2014 13/06/2014 Mayoral Way NE11 0RT Industrial 2,079 2.88 £0.27 06/06/2014 06/06/2014 Newburn Riverside NE15 8NZ Industrial 8,591 5.00 £0.46 04/06/2014 04/06/2014 Follingsby Close NE10 8YG Industrial 4,027 4.85 £0.45 31/05/2014 31/05/2014 Teal Farm Way NE38 8QD Industrial 4,000 5.00 £0.46 22/05/2014 22/05/2014 Octavian Way NE11 0HZ Industrial 2,842 8.80 £0.82 21/05/2014 21/05/2014 Dukesway NE11 0PZ Industrial 2,158 6.52 £0.61 20/05/2014 20/05/2014 Goldcrest Way NE15 8NZ Industrial 7,104 5.00 £0.46

124 P04 04/05/2014 04/05/2014 Harelaw Industrial Estate DH9 8HJ Industrial 44,463 3.23 £0.30 04/05/2014 04/05/2014 Harelaw Industrial Estate DH9 8HJ Industrial 13,993 3.23 £0.30 02/05/2014 02/05/2014 Hills Ct NE21 5NH Industrial 1,542 2.33 £0.22 01/05/2014 01/05/2014 320M Mayoral Way NE11 0RT Industrial 779 5.46 £0.51 01/05/2014 01/05/2014 13 Perth Ct NE11 0JY Industrial 2,002 5.00 £0.46 01/05/2014 30/05/2014 Princes Park NE11 0NF Industrial 13,095 5.54 £0.51 01/05/2014 01/05/2014 Stiring Close NE38 8QD Industrial 1,434 3.50 £0.33 29/04/2014 29/04/2014 Bells Close NE15 6UF Industrial 1,475 5.49 £0.51 29/04/2014 29/04/2014 Queensway N NE11 0NX Industrial 39,516 5.82 £0.54 28/04/2014 28/04/2014 Saltmeadows Rd NE8 3AH Industrial 100,110 2.05 £0.19 07/04/2014 07/04/2014 Hadrian Ct NE11 0XW Industrial 1,172 6.57 £0.61 01/04/2014 01/04/2014 Hills Ct NE21 5NH Industrial 1,543 3.24 £0.30 01/04/2014 30/05/2014 Kingfisher Blvd NE15 8NY Industrial 2,948 6.11 £0.57 31/03/2014 31/03/2104 9-10 Brough Park Way NE6 2YF Industrial 9,980 3.51 £0.33 31/03/2014 31/03/2014 St Michaels Rd NE6 1LR Industrial 1,500 4.75 £0.44 15/03/2014 15/03/2014 Teal Farm Way NE38 8QD Industrial 3,500 5.27 £0.49 10/03/2014 10/03/2014 Faraday Close NE38 8QJ Industrial 6,951 3.09 £0.29 03/03/2014 03/03/2014 Durham Rd DH3 2RA Industrial 529,879 1.04 £0.10 28/02/2014 28/02/2014 7 Perth Ct NE11 0JY Industrial 2,002 6.49 £0.60 21/02/2014 24/02/2014 Perth Ct NE11 0JY Industrial 1,539 6.50 £0.60 14/02/2014 18/02/2014 4A Marys Pl NE6 3PZ Industrial 6,444 2.56 £0.24 10/02/2014 10/02/2014 Kingsway S NE11 0SH Industrial 12,805 0.98 £0.09 01/02/2014 01/02/2014 Hawick Cres NE6 1AS Industrial 2,324 4.52 £0.42 01/02/2014 03/03/2014 Vance Ct NE21 5NH Industrial 2,390 2.62 £0.24 31/01/2014 31/01/2014 Hawick Crescent Industrial Estate NE6 1AS Industrial 10,491 3.50 £0.33 24/01/2014 24/01/2014 Princes Park NE11 0PZ Industrial 64,459 3.03 £0.28 24/01/2014 24/01/2014 23 Riversdale Ct NE15 8SG Industrial 3,000 4.00 £0.37 11/01/2014 01/03/2014 Bells Close NE15 5UF Industrial 2,750 2.55 £0.24 03/01/2014 03/01/2014 Hawks Rd NE8 3AD Industrial 8,603 2.09 £0.19 31/12/2013 31/01/2014 Neilson Rd NE8 3DB Industrial 11,556 5.00 £0.46 24/12/2013 24/12/2013 2A Chainbridge Rd NE21 5NH Industrial 4,910 3.05 £0.28 23/12/2013 23/12/2013 Benfield Rd NE6 5XA Industrial 5,046 2.77 £0.26 20/12/2013 20/12/2013 23 Denmark St NE6 2XF Industrial 500 5.00 £0.46

125 P04 02/12/2013 02/12/2013 Foundry Ln NE6 1LH Industrial 2,800 3.30 £0.31 02/12/2013 02/12/2013 Queensway S NE11 0SD Industrial 3,251 5.54 £0.51 01/12/2013 01/12/2013 North Rd DH9 8HN Industrial 1,921 4.69 £0.44 01/12/2013 01/12/2013 Station Rd NE42 6NP Industrial 5,020 1.92 £0.18 01/12/2013 01/01/2014 Stiring Close NE38 8QD Industrial 1,989 3.02 £0.28 01/11/2013 01/11/2013 16 Riversdale Ct NE15 8SG Industrial 2,000 4.80 £0.45 31/10/2013 31/10/2013 Tenth Ave W NE11 0HL Industrial 2,692 10.00 £0.93 24/10/2013 23/12/2013 Earls Park N NE11 0RQ Industrial 9,041 5.04 £0.47 04/10/2013 04/10/2013 311 Foster Ct NE11 0NH Industrial 5,410 5.55 £0.52 03/10/2013 03/10/2013 Ninth Ave E NE11 0EJ Industrial 973 6.68 £0.62 30/09/2013 30/09/2013 Princes Park NE11 0LQ Industrial 7,409 5.40 £0.50 30/09/2013 30/09/2013 Octavian Way NE11 0HZ Industrial 5,005 4.99 £0.46 05/06/2014 05/06/2014 King Edward Bridge NE1 3TQ Light Industrial 1,278 4.38 £0.41 06/05/2014 05/06/2014 King Edward Bridge NE1 3TQ Light Industrial 1,278 4.38 £0.41 06/05/2014 05/06/2014 King Edward Bridge NE1 3TQ Light Industrial 1,278 4.38 £0.41 01/04/2014 01/04/2014 Dukesway NE11 0PZ Light Industrial 10,970 4.92 £0.46 28/09/2015 28/09/2015 42 Pilgrim St NE1 6SE Office 335 10.75 £1.00 30/07/2015 30/07/2015 59-61 Blandford Sq NE1 4HZ Office 1,704 8.80 £0.82 24/06/2015 24/06/2015 30-32 Grey St NE1 6AE Office 1,354 18.00 £1.67 01/05/2015 01/06/2015 20 Collingwood St NE1 1JF Office 1,496 9.43 £0.88 20/01/2015 20/01/2015 Tundry Way NE21 5SJ Office 568 8.45 £0.79 16/01/2015 16/01/2015 39-41 Stowell St NE1 4YB Office 392 12.24 £1.14 02/01/2015 02/01/2015 Forth Banks NE1 3PA Office 9,786 15.00 £1.39 02/01/2015 01/02/2015 12-22 Northumberland Rd NE1 8JF Office 3,606 16.00 £1.49 01/12/2014 01/12/2014 64-68 Northumberland St NE1 7DF Office 910 5.38 £0.50 01/11/2014 01/11/2014 23 Blackett St NE1 5BS Office 752 6.65 £0.62 01/11/2014 01/12/2014 233 Two Ball Lonnen NE4 9RX Office 4,255 2.82 £0.26 05/09/2014 05/09/2014 53 Lime St NE1 2PQ Office 1,353 11.90 £1.11 11/06/2014 11/06/2014 57 Lime St NE1 2PQ Office 864 9.03 £0.84 12/05/2014 12/05/2014 37-41 Stowell St NE1 4YB Office 392 14.54 £1.35 10/04/2014 10/04/2014 Forth St NE1 3NZ Office 376 11.56 £1.07 03/09/2015 10/11/2015 88-90 Westgate Rd NE1 4AF Retail 1,887 6.36 £0.59 01/09/2015 01/09/2015 3A Clayton Rd NE2 4RP Retail 320 32.81 £3.05

126 P04 25/08/2015 25/08/2015 195 High St NE3 4ET Retail 611 18.00 £1.67 14/08/2015 14/08/2015 Earls Way NE1 7AS Retail 7,616 25.60 £2.38 10/08/2015 10/08/2015 Interchange Centre NE8 1BH Retail 654 18.35 £1.70 31/07/2015 31/07/2015 39 Front St NE16 4EA Retail 469 25.59 £2.38 15/07/2015 15/07/2015 225 Chillingham Rd NE6 5LJ Retail 634 26.81 £2.49 09/07/2015 09/07/2015 62 Clayton St NE1 5PF Retail 1,077 20.43 £1.90 09/07/2015 09/07/2015 155 Kirkwood Dr NE3 3BE Retail 494 15.00 £1.39 01/07/2015 01/08/2015 41 Bath Ln NE4 5SP Retail 1,656 12.08 £1.12 01/07/2015 01/07/2015 105 Clayton St NE1 5PZ Retail 989 12.13 £1.13 12/06/2015 12/06/2015 24-26 Pudding Chare NE1 1UE Retail 749 12.02 £1.12 12/06/2015 12/06/2015 Tundry Way NE21 5SJ Retail 1,262 7.13 £0.66 11/06/2015 11/06/2015 60 Shields Rd NE6 1DR Retail 679 11.49 £1.07 03/06/2015 01/07/2015 6 St Marys Pl NE1 7PG Retail 587 28.96 £2.69 01/06/2015 01/06/2015 18B Osborne Rd NE2 2AD Retail 670 17.91 £1.66 20/05/2015 19/06/2015 25 Harraton Ter DH3 2QG Retail 1,415 5.30 £0.49 15/05/2015 15/05/2015 61 High St NE3 4AA Retail 1,310 10.31 £0.96 13/05/2015 13/05/2015 Front St NE21 6DU Retail 916 4.54 £0.42 08/05/2015 08/05/2015 135 Front St DH3 3BL Retail 424 16.51 £1.53 16/04/2015 16/04/2015 47 Shields Road West NE6 1JN Retail 390 16.00 £1.49 10/04/2015 10/04/2015 156 Prince Consort Rd NE8 4DU Retail 463 14.04 £1.30 25/03/2015 25/03/2015 6-9 Kenton Rd NE3 4RU Retail 1,336 11.23 £1.04 23/03/2015 23/03/2015 120B Front St DH3 3BA Retail 3,042 8.22 £0.76 19/03/2015 19/03/2015 Forth St NE1 3NZ Retail 355 17.50 £1.63 12/03/2015 12/03/2015 Forth St NE1 1RY Retail 652 16.39 £1.52 01/03/2015 01/03/2015 17 Glynfellis NE10 8RH Retail 895 6.70 £0.62 01/03/2015 01/03/2015 78-80 Grainger St NE1 5JQ Retail 1,108 40.61 £3.77 27/02/2015 27/02/2015 43-45 Shields Road West NE6 1JN Retail 1,041 12.49 £1.16 18/02/2015 18/02/2015 Grainger Market NE1 5QG Retail 247 17.61 £1.64 18/02/2015 18/02/2015 8 Monk St NE1 5XD Retail 365 17.12 £1.59 16/02/2015 16/02/2015 2 Arcadia DH2 1RF Retail 367 10.35 £0.96 16/02/2015 16/02/2015 Coast Rd NE7 7DR Retail 502 10.36 £0.96 11/02/2015 11/02/2015 6 Jackson St NE8 1ED Retail 1,249 9.61 £0.89 24/01/2015 24/01/2015 Grainger Market NE1 5QG Retail 364 27.47 £2.55

127 P04 23/01/2015 23/01/2015 8 Hood St NE1 6JQ Retail 952 26.26 £2.44 15/01/2015 15/01/2015 5 Hazelwood Dr NE2 2DN Retail 980 20.41 £1.90 15/01/2015 15/01/2015 195 Two Ball Lonnen NE4 9RS Retail 849 14.13 £1.31 10/12/2014 10/12/2014 17 Fenkle St NE1 5XN Retail 724 12.43 £1.15 01/12/2014 25/12/2014 36-40 Clayton St NE1 5PF Retail 3,784 15.86 £1.47 01/12/2014 01/12/2014 259 St Annes Close NE1 2QX Retail 476 7.35 £0.68 28/11/2014 28/11/2014 Grainger Market NE1 5QG Retail 148 40.54 £3.77 27/11/2014 27/11/2014 High St NE3 1JZ Retail 898 31.18 £2.90 01/11/2014 01/11/2014 19 Keir Hardie Ave NE10 8EJ Retail 581 5.16 £0.48 01/11/2014 01/11/2014 37 Keir Hardie Ave NE10 8EJ Retail 606 4.95 £0.46 24/10/2014 24/10/2014 27 Arlington Ave NE3 4TS Retail 581 6.88 £0.64 21/10/2014 03/11/2014 91A High St NE10 9LU Retail 116 13.45 £1.25 20/10/2014 20/10/2014 340 Old Durham Rd NE8 4BQ Retail 670 8.96 £0.83 17/10/2014 20/10/2014 6B Lombard Pl DH3 4QP Retail 517 5.03 £0.47 01/10/2014 01/10/2014 592-596 Durham Rd NE9 6HX Retail 593 12.65 £1.17 01/10/2014 01/10/2014 49 Heaton Rd NE6 5HE Retail 744 8.87 £0.82 01/10/2014 01/10/2014 221 High St NE3 1HQ Retail 823 12.15 £1.13 01/10/2014 01/10/2014 33 St James Blvd NE1 4AU Retail 775 20.00 £1.86 28/09/2014 28/09/2014 100 Coatsworth Rd NE8 1QP Retail 157 25.48 £2.37 22/09/2014 22/09/2014 6 Brentwood Ave NE2 3DH Retail 524 31.49 £2.93 20/09/2014 20/09/2014 Grainger Market NE1 5QW Retail 498 21.69 £2.01 16/09/2014 16/09/2014 9A Clayton Rd NE2 4RP Retail 596 20.97 £1.95 16/09/2014 16/09/2014 153 Kenton Rd NE3 4NQ Retail 704 12.78 £1.19 15/09/2014 15/09/2014 16 Acorn Rd NE2 2DJ Retail 327 61.16 £5.68 15/09/2014 15/09/2014 37 Front St NE16 4EA Retail 526 19.01 £1.77 08/09/2014 08/09/2014 95-97 Clayton St NE1 5PZ Retail 1,438 11.13 £1.03 04/09/2014 04/09/2014 100-108 Westgate Rd NE1 4AF Retail 694 8.65 £0.80 02/09/2014 02/09/2014 123-125 Northumberland St NE1 7AG Retail 3,767 28.67 £2.66 02/09/2014 02/09/2014 3 Ravensworth Villas NE9 7JP Retail 1,090 9.17 £0.85 01/09/2014 01/10/2014 233 Two Ball Lonnen NE4 9RX Retail 1,496 10.36 £0.96 31/08/2014 31/08/2014 64-68 Northumberland St NE1 7DF Retail 882 8.50 £0.79 22/08/2014 22/08/2014 46 Coatsworth Rd NE8 1QN Retail 575 9.04 £0.84 18/08/2014 18/09/2014 237 Chillingham Rd NE6 5LJ Retail 1,127 14.20 £1.32

128 P04 11/08/2014 11/08/2014 Front St NE21 6DU Retail 453 14.90 £1.38 04/08/2014 06/08/2014 222 Chillingham Rd NE6 5LP Retail 358 21.64 £2.01 04/08/2014 04/08/2014 Hillhead Pky NE5 1DT Retail 670 17.91 £1.66 29/07/2014 29/08/2014 84 High St NE10 9LU Retail 358 10.89 £1.01 18/07/2014 18/07/2014 Grainger Market NE1 5QW Retail 143 40.21 £3.74 18/07/2014 18/07/2014 14 Manor Grove NE15 8JY Retail 350 5.29 £0.49 04/07/2014 04/07/2014 99-101 St Georges Ter NE2 2SX Retail 538 33.46 £3.11 04/07/2014 04/07/2014 99-101 St Georges Ter NE2 2SX Retail 561 32.09 £2.98 01/07/2014 01/07/2014 36-40 Clayton St NE1 5PF Retail 3,784 10.57 £0.98 26/06/2014 26/06/2014 Forth St NE1 3NZ Retail 355 17.50 £1.63 20/06/2014 20/06/2014 22 Starbeck Ave NE2 1RJ Retail 819 9.77 £0.91 19/06/2014 19/06/2014 240 Shields Rd NE6 1DX Retail 1,193 7.12 £0.66 16/06/2014 16/06/2014 Grainger Market NE1 5QW Retail 163 39.88 £3.70 13/06/2014 13/06/2014 592-596 Durham Rd NE9 6HX Retail 977 8.70 £0.81 02/06/2014 02/06/2014 Belvedere Parkway NE3 2PA Retail 16,050 21.65 £2.01 29/05/2014 29/05/2014 6 Market St NE1 6JF Retail 619 25.04 £2.33 28/05/2014 27/06/2014 99-105 Northumberland St NE1 7AG Retail 2,640 45.45 £4.22 25/05/2014 25/05/2014 104 Coatsworth Rd NE8 1QP Retail 162 28.89 £2.68 22/05/2014 22/05/2014 7 Front St DH3 3BQ Retail 930 16.13 £1.50 22/05/2014 22/05/2014 77 Shields Rd NE6 1DL Retail 486 14.98 £1.39 16/05/2014 16/05/2014 15 Ellison Rd NE8 2QU Retail 2,299 6.52 £0.61 15/05/2014 15/05/2014 7 Ashburton Rd NE3 4XN Retail 475 15.79 £1.47 15/05/2014 15/05/2014 25 Front St NE16 4EA Retail 351 28.49 £2.65 09/05/2014 09/05/2014 26 Wretham Pl NE2 1XU Retail 667 6.00 £0.56 08/05/2014 08/05/2014 112 Heaton Rd NE6 5HN Retail 577 13.00 £1.21 06/05/2014 06/05/2014 19 Arlington Ave NE3 4TS Retail 581 6.88 £0.64 01/05/2014 01/05/2014 16 Hood St NE1 6JQ Retail 685 25.55 £2.37 24/04/2014 24/04/2014 61 The Side Near Dean St NE1 3JE Retail 193 28.24 £2.62 14/04/2014 14/04/2014 29 Front St NE16 4EA Retail 452 25.44 £2.36 14/04/2014 14/04/2014 197-199 High St NE3 1HE Retail 553 26.22 £2.44 01/04/2014 01/05/2014 Grainger Market NE1 5QW Retail 241 18.92 £1.76 01/04/2014 01/04/2014 8-18 Wansbeck Rd S NE3 3HQ Retail 432 13.89 £1.29 25/03/2014 14/04/2014 4 Churchill Gdn NE2 1HB Retail 351 24.22 £2.25

129 P04 19/03/2014 19/03/2014 26 Starbeck Ave NE2 1RJ Retail 170 17.65 £1.64 18/03/2014 18/03/2014 Grainger Market NE1 5QW Retail 399 37.09 £3.45 13/03/2014 13/03/2014 53 Hunters Rd NE2 4DH Retail 473 12.68 £1.18 10/03/2014 10/03/2014 28 Nun St NE1 5AQ Retail 583 34.31 £3.19 03/03/2014 03/03/2014 263 Shields Rd NE6 1DQ Retail 476 17.48 £1.62 01/03/2014 01/03/2014 53 Hunters Rd NE2 4DH Retail 375 16.00 £1.49 17/01/2014 01/02/2014 32 Front St DH9 0HX Retail 946 10.57 £0.98 03/01/2014 03/01/2014 93 Front St NE16 4JL Retail 435 18.07 £1.68 01/01/2014 01/01/2014 12 The Gosforth Centre NE3 1JZ Retail 917 29.72 £2.76 31/12/2013 31/12/2013 48-50 Front St DH3 4JE Retail 4,580 10.92 £1.01 13/12/2013 13/12/2013 126 Front St DH3 3AY Retail 678 14.01 £1.30 01/12/2013 01/12/2013 49-51 Great North Rd NE3 2HH Retail 1,479 10.14 £0.94 30/11/2013 06/01/2014 2 Chirton Wynd NE6 2PW Retail 804 0.62 £0.06 29/11/2013 29/11/2013 694 West Rd NE5 2UR Retail 594 10.10 £0.94 21/11/2013 21/02/2014 38 St Marys Pl NE1 7PQ Retail 1,383 25.31 £2.35 16/11/2013 16/11/2013 209 Coatsworth Rd NE8 1SR Retail 410 15.22 £1.41 13/11/2013 13/11/2013 3A Clayton Rd NE2 4RP Retail 319 36.99 £3.44 06/11/2013 06/11/2013 32 Neville St NE1 5DF Retail 569 31.63 £2.94 06/11/2013 01/01/2014 15-17 Station Rd NE3 1QD Retail 425 11.76 £1.09 01/11/2013 01/11/2013 St Cuthberts Walk DH3 3YQ Retail 776 15.46 £1.44 10/10/2013 10/10/2013 Forth St NE1 3NZ Retail 690 14.20 £1.32 04/10/2013 04/10/2013 8-9 Wrekenton Row NE9 7JD Retail 1,180 9.32 £0.87 01/10/2013 01/10/2013 22 Saville Row NE1 8JE Retail 9,541 5.24 £0.49

130 P04 Appendix 8 Residential and Non Residential Appraisals

131 P04 APPRAISAL SUMMARY GATESHEAD COUNCIL Chopwell Middle Chopwell

Summary Appraisal for Merged Phases 1 2

REVENUE Sales Valuation Units m² Rate m² Unit Price Gross Sales 2B Private 15 1,050.00 £1,950.00 £136,500 2,047,500 3B Private 34 2,856.00 £1,950.00 £163,800 5,569,200 4 Bed private 27 3,267.00 £1,950.00 £235,950 6,370,650 2B Affordable 7 490.00 £1,950.00 £136,500 955,500 3B Affordable 6 504.00 £1,950.00 £163,800 982,800 Totals 89 8,167.00 15,925,650

NET REALISATION 12,498,208

OUTLAY

ACQUISITION COSTS Residualised Price (2.88 Ha £345,186.20 pHect) 994,136 Stamp Duty 4.00% 43,468 Agent Fee 1.00% 10,867 Legal Fee 0.75% 8,150 1,056,622 CONSTRUCTION COSTS Construction m² Rate m² Cost 2B Private 1,050.00 £814.00 854,700 3B Private 2,856.00 £814.00 2,324,784 4 Bed private 3,267.00 £814.00 2,659,338 2B Affordable 490.00 £814.00 398,860 3B Affordable 504.00 £814.00 410,256 Totals 8,167.00 6,647,938 6,647,938

Contingency 5.00% 332,397 Abnormals 5.00% 332,397 664,794 Other Construction NHBC 76.00 un 500.00 /un 38,000 EPC 76.00 un 500.00 /un 38,000 Externals 10.00% 80,912 NHBC 13.00 un 500.00 /un 6,500 EPC 13.00 un 500.00 /un 6,500 169,912

PROFESSIONAL FEES Other Professionals 10.00% 583,882 Other Professionals 10.00% 89,003 672,885 DISPOSAL FEES Sales Agent Fee 3.50% 437,437 Sales Legal Fee 89.00 un 600.00 /un 53,400 490,837 FINANCE Debit Rate 6.50% Credit Rate 1.50% (Nominal) Total Finance Cost 452,111

TOTAL COSTS 10,155,098

PROFIT 2,343,110

Performance Measures

File: \\DEVMEM2\Apps\Argus Software\Developer\Chopwell Middle.with affordable and no planning contrib.32monthbuild 32monthsales2015.09.21.wcfx ARGUS Developer Version: 5.00.001 Date: 29/09/2015

132 P04 APPRAISAL SUMMARY GATESHEAD COUNCIL Chopwell Middle Chopwell Profit on Cost% 23.07% Profit on GDV% 18.75% Profit on NDV% 18.75%

IRR 27.52%

Profit Erosion (finance rate 6.500%) 3 yrs 3 mths

File: \\DEVMEM2\Apps\Argus Software\Developer\Chopwell Middle.with affordable and no planning contrib.32monthbuild 32monthsales2015.09.21.wcfx ARGUS Developer Version: 5.00.001 Date: 29/09/2015

133 P04 APPRAISAL SUMMARY GATESHEAD COUNCIL Chopwell Middle Chopwell

Adjustment Net Sales 0 2,047,500 0 5,569,200 (2,627,893) 3,742,757 (394,144) 561,356 (405,405) 577,395 (3,427,442) 12,498,208

File: \\DEVMEM2\Apps\Argus Software\Developer\Chopwell Middle.with affordable and no planning contrib.32monthbuild 32monthsales2015.09.21.wcfx ARGUS Developer Version: 5.00.001 Date: 29/09/2015

134 P04 APPRAISAL SUMMARY GATESHEAD COUNCIL Chopwell Middle Chopwell

File: \\DEVMEM2\Apps\Argus Software\Developer\Chopwell Middle.with affordable and no planning contrib.32monthbuild 32monthsales2015.09.21.wcfx ARGUS Developer Version: 5.00.001 Date: 29/09/2015

135 P04 APPRAISAL SUMMARY GATESHEAD COUNCIL Crawcrook Crawcrook North

Summary Appraisal for Merged Phases 1 2

REVENUE Sales Valuation Units m² Rate m² Unit Price Gross Sales 3 Bed Private 58 4,872.00 £2,250.00 £189,000 10,962,000 4 Bed Private 70 8,470.00 £2,250.00 £272,250 19,057,500 2B Affordable 14 980.00 £2,250.00 £157,500 2,205,000 3B Affordable 12 1,008.00 £2,250.00 £189,000 2,268,000 Totals 154 15,330.00 34,492,500

NET REALISATION 32,647,388

OUTLAY

ACQUISITION COSTS Residualised Price (5.80 Ha £884,174.12 pHect) 5,128,210 Stamp Duty 4.00% 205,128 Agent Fee 1.00% 51,282 Legal Fee 0.75% 38,462 5,423,082 CONSTRUCTION COSTS Construction m² Rate m² Cost 2 Bed Private 1,400.00 £839.00 1,174,600 3 Bed Private 4,872.00 £839.00 4,087,608 4 Bed Private 8,470.00 £839.00 7,106,330 2B Affordable 980.00 £839.00 822,220 3B Affordable 1,008.00 £839.00 845,712 Totals 16,730.00 14,036,470 14,036,470

Contingency 5.00% 701,824 Abnormals 5.00% 701,824 1,403,647 Other Construction Externals 10.00% 1,236,854 NHBC 148.00 un 500.00 /un 74,000 EPC 148.00 un 500.00 /un 74,000 Externals 10.00% 166,793 NHBC 26.00 un 500.00 /un 13,000 EPC 26.00 un 500.00 /un 13,000 1,577,647

PROFESSIONAL FEES Other Professionals 10.00% 1,360,539 Other Professionals 10.00% 183,473 1,544,012 DISPOSAL FEES Sales Agent Fee 3.50% 1,142,659 Sales Legal Fee 174.00 un 600.00 /un 104,400 1,247,059 FINANCE Debit Rate 6.50% Credit Rate 1.50% (Nominal) Debit Rates varied throughout the Cash Flow Total Finance Cost 1,000,769

TOTAL COSTS 26,232,685

PROFIT 6,414,702

File: \\DEVMEM2\Apps\Argus Software\Developer\Crawcrook North.with affordable no planning contrib.wcfx60 months + 60 month sales 2015 08 21.wcfx ARGUS Developer Version: 5.00.001 Date: 29/09/2015

136 P04 APPRAISAL SUMMARY GATESHEAD COUNCIL Crawcrook Crawcrook North Performance Measures Profit on Cost% 24.45% Profit on GDV% 19.65% Profit on NDV% 19.65%

IRR 23.86%

Profit Erosion (finance rate 6.500%) 3 yrs 5 mths

File: \\DEVMEM2\Apps\Argus Software\Developer\Crawcrook North.with affordable no planning contrib.wcfx60 months + 60 month sales 2015 08 21.wcfx ARGUS Developer Version: 5.00.001 Date: 29/09/2015

137 P04 APPRAISAL SUMMARY GATESHEAD COUNCIL Crawcrook Crawcrook North

Adjustment Net Sales 0 10,962,000 0 19,057,500 (909,563) 1,295,438 (935,550) 1,332,450 (1,845,113) 32,647,388

File: \\DEVMEM2\Apps\Argus Software\Developer\Crawcrook North.with affordable no planning contrib.wcfx60 months + 60 month sales 2015 08 21.wcfx ARGUS Developer Version: 5.00.001 Date: 29/09/2015

138 P04 APPRAISAL SUMMARY GATESHEAD COUNCIL Crawcrook Crawcrook North

File: \\DEVMEM2\Apps\Argus Software\Developer\Crawcrook North.with affordable no planning contrib.wcfx60 months + 60 month sales 2015 08 21.wcfx ARGUS Developer Version: 5.00.001 Date: 29/09/2015

139 P04 APPRAISAL SUMMARY GATESHEAD COUNCIL Crawcrook Crawcrook South

Summary Appraisal for Merged Phases 1 2

REVENUE Sales Valuation Units m² Rate m² Unit Price Gross Sales 2 Bed Private 23 1,610.00 £2,100.00 £147,000 3,381,000 3 Bed Private 65 5,460.00 £2,100.00 £176,400 11,466,000 4 Bed Private 79 9,559.00 £2,100.00 £254,100 20,073,900 2B Affordable 16 1,120.00 £2,100.00 £147,000 2,352,000 3B Affordable 14 1,176.00 £2,100.00 £176,400 2,469,600 Totals 197 18,925.00 39,742,500

NET REALISATION 37,753,590

OUTLAY

ACQUISITION COSTS Residualised Price (6.55 Ha £931,949.12 pHect) 6,104,267 Stamp Duty 4.00% 247,716 Agent Fee 1.00% 61,929 Legal Fee 0.75% 46,447 6,460,359 CONSTRUCTION COSTS Construction m² Rate m² Cost 2 Bed Private 1,610.00 £839.00 1,350,790 3 Bed Private 5,460.00 £839.00 4,580,940 4 Bed Private 9,559.00 £839.00 8,020,001 2B Affordable 1,120.00 £839.00 939,680 3B Affordable 1,176.00 £839.00 986,664 Totals 18,925.00 15,878,075 15,878,075

Contingency 5.00% 793,904 Abnormals 5.00% 793,904 1,587,808 Other Construction Externals 10.00% 1,395,173 NHBC 167.00 un 500.00 /un 83,500 EPC 167.00 un 500.00 /un 83,500 Externals 10.00% 192,634 NHBC 30.00 un 500.00 /un 15,000 EPC 30.00 un 500.00 /un 15,000 1,784,808

PROFESSIONAL FEES Other Professionals 10.00% 1,534,690 Other Professionals 10.00% 211,898 1,746,588 DISPOSAL FEES Sales Agent Fee 3.50% 1,321,376 Sales Legal Fee 197.00 un 600.00 /un 118,200 1,439,576 FINANCE Debit Rate 6.50% Credit Rate 1.50% (Nominal) Debit Rates varied throughout the Cash Flow Total Finance Cost 1,691,855

TOTAL COSTS 30,589,068

PROFIT 7,164,522

File: \\DEVMEM2\Apps\Argus Software\Developer\Crawcrook South with affordable no planning contrib.wcfx 67 months + 67 month sales 2015 09 21.wcfx ARGUS Developer Version: 5.00.001 Date: 29/09/2015

140 P04 APPRAISAL SUMMARY GATESHEAD COUNCIL Crawcrook Crawcrook South

Performance Measures Profit on Cost% 23.42% Profit on GDV% 18.98% Profit on NDV% 18.98%

IRR 19.48%

Profit Erosion (finance rate 6.500%) 3 yrs 3 mths

File: \\DEVMEM2\Apps\Argus Software\Developer\Crawcrook South with affordable no planning contrib.wcfx 67 months + 67 month sales 2015 09 21.wcfx ARGUS Developer Version: 5.00.001 Date: 29/09/2015

141 P04 APPRAISAL SUMMARY GATESHEAD COUNCIL Crawcrook Crawcrook South

Adjustment Net Sales 0 3,381,000 0 11,466,000 0 20,073,900 (970,200) 1,381,800 (1,018,710) 1,450,890 (1,988,910) 37,753,590

File: \\DEVMEM2\Apps\Argus Software\Developer\Crawcrook South with affordable no planning contrib.wcfx 67 months + 67 month sales 2015 09 21.wcfx ARGUS Developer Version: 5.00.001 Date: 29/09/2015

142 P04 APPRAISAL SUMMARY GATESHEAD COUNCIL Crawcrook Crawcrook South

File: \\DEVMEM2\Apps\Argus Software\Developer\Crawcrook South with affordable no planning contrib.wcfx 67 months + 67 month sales 2015 09 21.wcfx ARGUS Developer Version: 5.00.001 Date: 29/09/2015

143 P04 APPRAISAL SUMMARY GATESHEAD COUNCIL Dunston Hill Central Nursery

Summary Appraisal for Merged Phases 1 2

REVENUE Sales Valuation Units m² Rate m² Unit Price Gross Sales 2B Private 64 4,480.00 £2,250.00 £157,500 10,080,000 3B Private 174 14,616.00 £2,250.00 £189,000 32,886,000 4B Private 212 25,652.00 £2,250.00 £272,250 57,717,000 2B Affordable 42 2,940.00 £2,250.00 £157,500 6,615,000 3B Affordable 38 3,192.00 £2,100.00 £176,400 6,703,200 Totals 530 50,880.00 114,001,200

NET REALISATION 108,507,442

OUTLAY

ACQUISITION COSTS Residualised Price (17.75 Ha £1,219,357.71 pHect) 21,643,599 Stamp Duty 4.00% 805,674 Agent Fee 1.00% 201,419 Legal Fee 0.75% 151,064 22,801,756 CONSTRUCTION COSTS Construction m² Rate m² Cost 2B Private 4,480.00 £839.00 3,758,720 3B Private 14,616.00 £839.00 12,262,824 4B Private 25,652.00 £839.00 21,522,028 2B Affordable 2,940.00 £839.00 2,466,660 3B Affordable 3,192.00 £839.00 2,678,088 Totals 50,880.00 42,688,320 42,688,320

Contingency 5.00% 1,877,179 Abnormals 5.00% 1,877,179 3,754,357 Other Construction Externals 10.00% 3,754,357 NHBC 450.00 un 500.00 /un 225,000 EPC 450.00 un 500.00 /un 225,000 4,204,357

PROFESSIONAL FEES Other Professionals 10.00% 3,754,357 3,754,357 DISPOSAL FEES Sales Agent Fee 3.50% 3,523,905 Sales Legal Fee 450.00 un 600.00 /un 270,000 3,793,905 FINANCE Debit Rate 6.50% Credit Rate 1.50% (Nominal) Total Finance Cost 6,852,553

TOTAL COSTS 87,849,606

PROFIT 20,657,837

Performance Measures Profit on Cost% 23.52% Profit on GDV% 19.04% Profit on NDV% 19.04%

File: \\DEVMEM2\Apps\Argus Software\Developer\Central Nursery (Dunston Hill).with affordable and no planning contrib.wcfx120 months + amended sales 120 months 2015 09 21.wcfx ARGUS Developer Version: 5.00.001 Date: 29/09/2015

144 P04 APPRAISAL SUMMARY GATESHEAD COUNCIL Dunston Hill Central Nursery

IRR 14.03%

Profit Erosion (finance rate 6.500%) 3 yrs 3 mths

File: \\DEVMEM2\Apps\Argus Software\Developer\Central Nursery (Dunston Hill).with affordable and no planning contrib.wcfx120 months + amended sales 120 months 2015 09 21.wcfx ARGUS Developer Version: 5.00.001 Date: 29/09/2015

145 P04 APPRAISAL SUMMARY GATESHEAD COUNCIL Dunston Hill Central Nursery

Adjustment Net Sales 0 10,080,000 0 32,886,000 0 57,717,000 (2,728,688) 3,886,313 (2,765,070) 3,938,130 (5,493,758) 108,507,443

File: \\DEVMEM2\Apps\Argus Software\Developer\Central Nursery (Dunston Hill).with affordable and no planning contrib.wcfx120 months + amended sales 120 months 2015 09 21.wcfx ARGUS Developer Version: 5.00.001 Date: 29/09/2015

146 P04 APPRAISAL SUMMARY GATESHEAD COUNCIL Dunston Hill Central Nursery

File: \\DEVMEM2\Apps\Argus Software\Developer\Central Nursery (Dunston Hill).with affordable and no planning contrib.wcfx120 months + amended sales 120 months 2015 09 21.wcfx ARGUS Developer Version: 5.00.001 Date: 29/09/2015

147 P04 APPRAISAL SUMMARY GATESHEAD COUNCIL Highfield

Summary Appraisal for Merged Phases 1 2

REVENUE Sales Valuation Units m² Rate m² Unit Price Gross Sales 2B Private 8 560.00 £2,250.00 £157,500 1,260,000 3B Private 23 1,932.00 £2,250.00 £189,000 4,347,000 4B Private 28 3,388.00 £2,250.00 £272,250 7,623,000 2B Affordable 11 770.00 £2,250.00 £157,500 1,732,500 3B Affordable 6 504.00 £2,250.00 £189,000 1,134,000 Totals 76 7,154.00 16,096,500

NET REALISATION 14,914,069

OUTLAY

ACQUISITION COSTS Residualised Price (2.45 Ha £1,296,612.96 pHect) 3,176,702 Stamp Duty 4.00% 127,068 Agent Fee 1.00% 31,767 Legal Fee 0.75% 452 3,335,989 CONSTRUCTION COSTS Construction m² Rate m² Cost 2B Private 560.00 £839.00 469,840 3B Private 1,932.00 £839.00 1,620,948 4B Private 3,388.00 £839.00 2,842,532 2B Affordable 770.00 £839.00 646,030 3B Affordable 504.00 £839.00 422,856 Totals 7,154.00 6,002,206 6,002,206

Contingency 5.00% 300,110 Abnormals 5.00% 300,110 600,221 Other Construction Externals 10.00% 209,079 NHBC 31.00 un 500.00 /un 15,500 EPC 31.00 un 500.00 /un 15,500 Externals 10.00% 64,603 NHBC 17.00 un 500.00 /un 8,500 EPC 17.00 un 500.00 /un 8,500 321,682

PROFESSIONAL FEES Other Professionals 10.00% 514,240 Other Professionals 10.00% 113,349 627,589 DISPOSAL FEES Sales Agent Fee 3.50% 521,992 Sales Legal Fee 48.00 un 600.00 /un 28,800 550,792 FINANCE Debit Rate 6.50% Credit Rate 1.50% (Nominal) Total Finance Cost 726,681

TOTAL COSTS 12,165,160

PROFIT 2,748,909

Performance Measures

File: \\DEVMEM2\Apps\Argus Software\Developer\Highfield.with affordablewcfx.wcfxbuild 30 monthssales30months2015 09 21.wcfx ARGUS Developer Version: 5.00.001 Date: 29/09/2015

148 P04 APPRAISAL SUMMARY GATESHEAD COUNCIL Highfield Profit on Cost% 22.60% Profit on GDV% 18.43% Profit on NDV% 18.43%

IRR 23.05%

Profit Erosion (finance rate 6.500%) 3 yrs 2 mths

File: \\DEVMEM2\Apps\Argus Software\Developer\Highfield.with affordablewcfx.wcfxbuild 30 monthssales30months2015 09 21.wcfx ARGUS Developer Version: 5.00.001 Date: 29/09/2015

149 P04 APPRAISAL SUMMARY GATESHEAD COUNCIL Highfield

Adjustment Net Sales 0 1,260,000 0 4,347,000 0 7,623,000 (714,656) 1,017,844 (467,775) 666,225 (1,182,431) 14,914,069

File: \\DEVMEM2\Apps\Argus Software\Developer\Highfield.with affordablewcfx.wcfxbuild 30 monthssales30months2015 09 21.wcfx ARGUS Developer Version: 5.00.001 Date: 29/09/2015

150 P04 APPRAISAL SUMMARY GATESHEAD COUNCIL Highfield

File: \\DEVMEM2\Apps\Argus Software\Developer\Highfield.with affordablewcfx.wcfxbuild 30 monthssales30months2015 09 21.wcfx ARGUS Developer Version: 5.00.001 Date: 29/09/2015

151 P04 APPRAISAL SUMMARY GATESHEAD COUNCIL High Spen High Spen East

Summary Appraisal for Merged Phases 1 2

REVENUE Sales Valuation Units m² Rate m² Unit Price Gross Sales 2 Bed Private 15 1,050.00 £2,250.00 £157,500 2,362,500 3 Bed Private 44 3,696.00 £2,250.00 £189,000 8,316,000 4 Bed Private 53 6,413.00 £2,250.00 £272,250 14,429,250 2B Affordable 11 770.00 £2,250.00 £157,500 1,732,500 3B Affordable 9 756.00 £2,250.00 £189,000 1,701,000 Totals 132 12,685.00 28,541,250

NET REALISATION 27,124,931

OUTLAY

ACQUISITION COSTS Residualised Price (4.41 Ha £1,192,879.74 pHect) 5,260,600 Stamp Duty 4.00% 210,424 Agent Fee 1.00% 52,606 Legal Fee 0.75% 39,454 5,563,084 CONSTRUCTION COSTS Construction m² Rate m² Cost 2 Bed Private 1,050.00 £839.00 880,950 3 Bed Private 3,696.00 £839.00 3,100,944 4 Bed Private 6,413.00 £839.00 5,380,507 2B Affordable 770.00 £839.00 646,030 3B Affordable 756.00 £839.00 634,284 Totals 12,685.00 10,642,715 10,642,715

Contingency 5.00% 532,136 Abnormals 5.00% 532,136 1,064,271 Other Construction Externals 10.00% 936,240 NHBC 112.00 un 500.00 /un 56,000 EPC 112.00 un 500.00 /un 56,000 Externals 10.00% 128,031 NHBC 20.00 un 500.00 /un 10,000 EPC 20.00 un 500.00 /un 10,000 1,196,271

PROFESSIONAL FEES Other Professionals 10.00% 1,029,864 Other Professionals 10.00% 140,835 1,170,699 DISPOSAL FEES Sales Agent Fee 3.50% 949,373 Sales Legal Fee 132.00 un 600.00 /un 79,200 1,028,573 FINANCE Debit Rate 6.50% Credit Rate 1.50% (Nominal) Debit Rates varied throughout the Cash Flow Total Finance Cost 1,313,150

TOTAL COSTS 21,978,763

PROFIT 5,146,168

File: \\DEVMEM2\Apps\Argus Software\Developer\High Spen East with affordable no planning contrib.wcfx 45 months + 45 months sales 2015 09 21.wcfx ARGUS Developer Version: 5.00.001 Date: 29/09/2015

152 P04 APPRAISAL SUMMARY GATESHEAD COUNCIL High Spen High Spen East

Performance Measures Profit on Cost% 23.41% Profit on GDV% 18.97% Profit on NDV% 18.97%

IRR 21.33%

Profit Erosion (finance rate 6.500%) 3 yrs 3 mths

File: \\DEVMEM2\Apps\Argus Software\Developer\High Spen East with affordable no planning contrib.wcfx 45 months + 45 months sales 2015 09 21.wcfx ARGUS Developer Version: 5.00.001 Date: 29/09/2015

153 P04 APPRAISAL SUMMARY GATESHEAD COUNCIL High Spen High Spen East

Adjustment Net Sales 0 2,362,500 0 8,316,000 0 14,429,250 (714,656) 1,017,844 (701,663) 999,338 (1,416,319) 27,124,931

File: \\DEVMEM2\Apps\Argus Software\Developer\High Spen East with affordable no planning contrib.wcfx 45 months + 45 months sales 2015 09 21.wcfx ARGUS Developer Version: 5.00.001 Date: 29/09/2015

154 P04 APPRAISAL SUMMARY GATESHEAD COUNCIL High Spen High Spen East

File: \\DEVMEM2\Apps\Argus Software\Developer\High Spen East with affordable no planning contrib.wcfx 45 months + 45 months sales 2015 09 21.wcfx ARGUS Developer Version: 5.00.001 Date: 29/09/2015

155 P04 APPRAISAL SUMMARY GATESHEAD COUNCIL High Spen High Spen West

Summary Appraisal for Merged Phases 1 2

REVENUE Sales Valuation Units m² Rate m² Unit Price Gross Sales 2 Bed Private 5 350.00 £2,250.00 £157,500 787,500 3 Bed Private 14 1,176.00 £2,250.00 £189,000 2,646,000 4 Bed Private 17 2,057.00 £2,250.00 £272,250 4,628,250 2B Affordable 3 210.00 £2,250.00 £157,500 472,500 3B Affordable 3 252.00 £2,250.00 £189,000 567,000 Totals 42 4,045.00 9,101,250

NET REALISATION 8,672,456

OUTLAY

ACQUISITION COSTS Residualised Price (1.45 Ha £1,180,516.10 pHect) 1,711,748 Stamp Duty 4.00% 68,470 Agent Fee 1.00% 17,117 Legal Fee 0.75% 12,838 1,810,174 CONSTRUCTION COSTS Construction m² Rate m² Cost 2 Bed Private 350.00 £839.00 293,650 3 Bed Private 1,176.00 £839.00 986,664 4 Bed Private 2,057.00 £839.00 1,725,823 2B Affordable 210.00 £839.00 176,190 3B Affordable 252.00 £839.00 211,428 Totals 4,045.00 3,393,755 3,393,755

Contingency 5.00% 169,688 Abnormals 5.00% 169,688 339,376 Other Construction Externals 10.00% 300,614 NHBC 36.00 un 500.00 /un 18,000 EPC 36.00 un 500.00 /un 18,000 Externals 10.00% 38,762 NHBC 6.00 un 500.00 /un 3,000 EPC 6.00 un 500.00 /un 3,000 381,376

PROFESSIONAL FEES Other Professionals 10.00% 330,675 Other Professionals 10.00% 42,638 373,313 DISPOSAL FEES Sales Agent Fee 3.50% 303,536 Sales Legal Fee 42.00 un 600.00 /un 25,200 328,736 FINANCE Debit Rate 6.50% Credit Rate 1.50% (Nominal) Debit Rates varied throughout the Cash Flow Total Finance Cost 396,161

TOTAL COSTS 7,022,890

PROFIT 1,649,566

File: \\DEVMEM2\Apps\Argus Software\Developer\High Spen West with affordable no planning contrib.wcfx20monthbuild20monthsales 2015 09 21.wcfx ARGUS Developer Version: 5.00.001 Date: 29/09/2015

156 P04 APPRAISAL SUMMARY GATESHEAD COUNCIL High Spen High Spen West

Performance Measures Profit on Cost% 23.49% Profit on GDV% 19.02% Profit on NDV% 19.02%

IRR 26.34%

Profit Erosion (finance rate 6.500%) 3 yrs 3 mths

File: \\DEVMEM2\Apps\Argus Software\Developer\High Spen West with affordable no planning contrib.wcfx20monthbuild20monthsales 2015 09 21.wcfx ARGUS Developer Version: 5.00.001 Date: 29/09/2015

157 P04 APPRAISAL SUMMARY GATESHEAD COUNCIL High Spen High Spen West

Adjustment Net Sales 0 787,500 0 2,646,000 0 4,628,250 (194,906) 277,594 (233,888) 333,113 (428,794) 8,672,456

File: \\DEVMEM2\Apps\Argus Software\Developer\High Spen West with affordable no planning contrib.wcfx20monthbuild20monthsales 2015 09 21.wcfx ARGUS Developer Version: 5.00.001 Date: 29/09/2015

158 P04 APPRAISAL SUMMARY GATESHEAD COUNCIL High Spen High Spen West

File: \\DEVMEM2\Apps\Argus Software\Developer\High Spen West with affordable no planning contrib.wcfx20monthbuild20monthsales 2015 09 21.wcfx ARGUS Developer Version: 5.00.001 Date: 29/09/2015

159 P04 APPRAISAL SUMMARY GATESHEAD COUNCIL Kibblesworth

Summary Appraisal for Merged Phases 1 2

REVENUE Sales Valuation Units m² Rate m² Unit Price Gross Sales 2 Bed Private 27 1,890.00 £2,250.00 £157,500 4,252,500 3 Bed Private 74 6,216.00 £2,250.00 £189,000 13,986,000 4 Bed Private 90 10,890.00 £2,250.00 £272,250 24,502,500 2B Affordable 18 1,260.00 £2,250.00 £157,500 2,835,000 3B Affordable 6 504.00 £2,250.00 £189,000 1,134,000 Totals 215 20,760.00 46,710,000

NET REALISATION 45,072,788

OUTLAY

ACQUISITION COSTS Residualised Price (8.50 Ha £1,041,790.92 pHect) 8,855,223 Stamp Duty 4.00% 354,209 Agent Fee 1.00% 88,552 Legal Fee 0.75% 66,414 9,364,398 CONSTRUCTION COSTS Construction m² Rate m² Cost 2 Bed Private 1,890.00 £839.00 1,585,710 3 Bed Private 6,216.00 £839.00 5,215,224 4 Bed Private 10,890.00 £839.00 9,136,710 2B Affordable 1,260.00 £839.00 1,057,140 3B Affordable 504.00 £839.00 422,856 Totals 20,760.00 17,417,640 17,417,640

Contingency 5.00% 870,882 Abnormals 5.00% 870,882 1,741,764 Other Construction Externals 10.00% 1,593,764 NHBC 191.00 un 500.00 /un 95,500 EPC 191.00 un 500.00 /un 95,500 Externals 10.00% 148,000 NHBC 24.00 un 500.00 /un 12,000 EPC 24.00 un 500.00 /un 12,000 1,956,764

PROFESSIONAL FEES Other Professionals 10.00% 1,753,141 Other Professionals 10.00% 162,800 1,915,940 DISPOSAL FEES Sales Agent Fee 3.50% 1,577,548 Sales Legal Fee 215.00 un 600.00 /un 129,000 1,706,548 FINANCE Debit Rate 6.50% Credit Rate 1.50% (Nominal) Debit Rates varied throughout the Cash Flow Total Finance Cost 2,275,813

TOTAL COSTS 36,378,867

PROFIT 8,693,920

File: \\DEVMEM2\Apps\Argus Software\Developer\Kibblesworth with affordable no planning contrib.wcfx60 months + amended sales60 months 2015 09 21.wcfx ARGUS Developer Version: 5.00.001 Date: 29/09/2015

160 P04 APPRAISAL SUMMARY GATESHEAD COUNCIL Kibblesworth Performance Measures Profit on Cost% 23.90% Profit on GDV% 19.29% Profit on NDV% 19.29%

IRR 19.31%

Profit Erosion (finance rate 6.500%) 3 yrs 4 mths

File: \\DEVMEM2\Apps\Argus Software\Developer\Kibblesworth with affordable no planning contrib.wcfx60 months + amended sales60 months 2015 09 21.wcfx ARGUS Developer Version: 5.00.001 Date: 29/09/2015

161 P04 APPRAISAL SUMMARY GATESHEAD COUNCIL Kibblesworth

Adjustment Net Sales 0 4,252,500 0 13,986,000 0 24,502,500 (1,169,438) 1,665,563 (467,775) 666,225 (1,637,213) 45,072,788

File: \\DEVMEM2\Apps\Argus Software\Developer\Kibblesworth with affordable no planning contrib.wcfx60 months + amended sales60 months 2015 09 21.wcfx ARGUS Developer Version: 5.00.001 Date: 29/09/2015

162 P04 APPRAISAL SUMMARY GATESHEAD COUNCIL Kibblesworth

File: \\DEVMEM2\Apps\Argus Software\Developer\Kibblesworth with affordable no planning contrib.wcfx60 months + amended sales60 months 2015 09 21.wcfx ARGUS Developer Version: 5.00.001 Date: 29/09/2015

163 P04 APPRAISAL SUMMARY GATESHEAD COUNCIL Ryton

Summary Appraisal for Merged Phases 1 2

REVENUE Sales Valuation Units m² Rate m² Unit Price Gross Sales 2 Bed Private 66 4,620.00 £2,250.00 £157,500 10,395,000 3 Bed Private 181 15,204.00 £2,250.00 £189,000 34,209,000 4 Bed Private 220 26,620.00 £2,250.00 £272,250 59,895,000 2B Affordable 44 3,080.00 £2,250.00 £157,500 6,930,000 3B Affordable 39 3,276.00 £2,250.00 £189,000 7,371,000 Totals 550 52,800.00 118,800,000

NET REALISATION 112,900,838

OUTLAY

ACQUISITION COSTS Residualised Price (17.17 Ha £1,210,791.37 pHect) 20,789,288 Stamp Duty 4.00% 831,572 Agent Fee 1.00% 207,893 Legal Fee 0.75% 155,920 21,984,672 CONSTRUCTION COSTS Construction m² Rate m² Cost 2 Bed Private 4,620.00 £839.00 3,876,180 3 Bed Private 15,204.00 £839.00 12,756,156 4 Bed Private 26,620.00 £839.00 22,334,180 2B Affordable 3,080.00 £839.00 2,584,120 3B Affordable 3,276.00 £839.00 2,748,564 Totals 52,800.00 44,299,200 44,299,200

Contingency 5.00% 2,214,960 Abnormals 5.00% 2,214,960 4,429,920 Other Construction Externals 10.00% 3,896,652 NHBC 467.00 un 500.00 /un 233,500 EPC 467.00 un 500.00 /un 233,500 Externals 10.00% 533,268 NHBC 83.00 un 500.00 /un 41,500 EPC 83.00 un 500.00 /un 41,500 4,979,920

PROFESSIONAL FEES Other Professionals 10.00% 4,286,317 Other Professionals 10.00% 586,595 4,872,912 DISPOSAL FEES Sales Agent Fee 3.50% 3,951,529 Sales Legal Fee 550.00 un 600.00 /un 330,000 4,281,529 FINANCE Debit Rate 6.50% Credit Rate 1.50% (Nominal) Debit Rates varied throughout the Cash Flow Total Finance Cost 6,600,748

TOTAL COSTS 91,448,901

PROFIT 21,451,937

File: \\DEVMEM2\Apps\Argus Software\Developer\Ryton with affordable no planning contrib.wcfx120monthsbuild and 120monthsales 2015 09 21.wcfx ARGUS Developer Version: 5.00.001 Date: 29/09/2015

164 P04 APPRAISAL SUMMARY GATESHEAD COUNCIL Ryton Performance Measures Profit on Cost% 23.46% Profit on GDV% 19.00% Profit on NDV% 19.00%

IRR 14.20%

Profit Erosion (finance rate 6.500%) 3 yrs 3 mths

File: \\DEVMEM2\Apps\Argus Software\Developer\Ryton with affordable no planning contrib.wcfx120monthsbuild and 120monthsales 2015 09 21.wcfx ARGUS Developer Version: 5.00.001 Date: 29/09/2015

165 P04 APPRAISAL SUMMARY GATESHEAD COUNCIL Ryton

Adjustment Net Sales 0 10,395,000 0 34,209,000 0 59,895,000 (2,858,625) 4,071,375 (3,040,538) 4,330,463 (5,899,163) 112,900,838

File: \\DEVMEM2\Apps\Argus Software\Developer\Ryton with affordable no planning contrib.wcfx120monthsbuild and 120monthsales 2015 09 21.wcfx ARGUS Developer Version: 5.00.001 Date: 29/09/2015

166 P04 APPRAISAL SUMMARY GATESHEAD COUNCIL Ryton

File: \\DEVMEM2\Apps\Argus Software\Developer\Ryton with affordable no planning contrib.wcfx120monthsbuild and 120monthsales 2015 09 21.wcfx ARGUS Developer Version: 5.00.001 Date: 29/09/2015

167 P04 APPRAISAL SUMMARY GATESHEAD COUNCIL Chopwell South Chopwell

Summary Appraisal for Merged Phases 1 2

REVENUE Sales Valuation Units m² Rate m² Unit Price Gross Sales 2B Private 37 2,590.00 £1,950.00 £136,500 5,050,500 3B Private 82 6,888.00 £1,950.00 £163,800 13,431,600 4 Bed private 65 7,865.00 £1,950.00 £235,950 15,336,750 2B Affordable 17 1,190.00 £1,950.00 £136,500 2,320,500 3B Affordable 15 1,260.00 £1,950.00 £163,800 2,457,000 Totals 216 19,793.00 38,596,350

NET REALISATION 30,299,222

OUTLAY

ACQUISITION COSTS Residualised Price (7.19 Ha £366,667.43 pHect) 2,636,339 Stamp Duty 4.00% 112,759 Agent Fee 1.00% 28,190 Legal Fee 0.75% 21,142 2,798,429 CONSTRUCTION COSTS Construction m² Rate m² Cost 2B Private 2,590.00 £814.00 2,108,260 3B Private 6,888.00 £814.00 5,606,832 4 Bed private 7,865.00 £814.00 6,402,110 2B Affordable 1,190.00 £814.00 968,660 3B Affordable 1,260.00 £814.00 1,025,640 Totals 19,793.00 16,111,502 16,111,502

Contingency 5.00% 805,575 Abnormals 5.00% 805,575 1,611,150 Other Construction NHBC 184.00 un 500.00 /un 92,000 EPC 184.00 un 500.00 /un 92,000 Externals 10.00% 199,430 NHBC 32.00 un 500.00 /un 16,000 EPC 32.00 un 500.00 /un 16,000 415,430

PROFESSIONAL FEES Other Professionals 10.00% 1,411,720 Other Professionals 10.00% 219,373 1,631,093 DISPOSAL FEES Sales Agent Fee 3.50% 1,060,473 Sales Legal Fee 216.00 un 600.00 /un 129,600 1,190,073 FINANCE Debit Rate 6.50% Credit Rate 1.50% (Nominal) Total Finance Cost 853,580

TOTAL COSTS 24,611,258

PROFIT 5,687,964

Performance Measures

File: \\DEVMEM2\Apps\Argus Software\Developer\Soouth Chopwell with affordable and no planning contrib.wcfx74 months +74monthsales 2015 09 21.wcfx ARGUS Developer Version: 5.00.001 Date: 29/09/2015

168 P04 APPRAISAL SUMMARY GATESHEAD COUNCIL Chopwell South Chopwell Profit on Cost% 23.11% Profit on GDV% 18.77% Profit on NDV% 18.77%

IRR 22.69%

Profit Erosion (finance rate 6.500%) 3 yrs 3 mths

File: \\DEVMEM2\Apps\Argus Software\Developer\Soouth Chopwell with affordable and no planning contrib.wcfx74 months +74monthsales 2015 09 21.wcfx ARGUS Developer Version: 5.00.001 Date: 29/09/2015

169 P04 APPRAISAL SUMMARY GATESHEAD COUNCIL Chopwell South Chopwell

Adjustment Net Sales 0 5,050,500 0 13,431,600 (6,326,409) 9,010,341 (957,206) 1,363,294 (1,013,513) 1,443,488 (8,297,128) 30,299,222

File: \\DEVMEM2\Apps\Argus Software\Developer\Soouth Chopwell with affordable and no planning contrib.wcfx74 months +74monthsales 2015 09 21.wcfx ARGUS Developer Version: 5.00.001 Date: 29/09/2015

170 P04 APPRAISAL SUMMARY GATESHEAD COUNCIL Chopwell South Chopwell

File: \\DEVMEM2\Apps\Argus Software\Developer\Soouth Chopwell with affordable and no planning contrib.wcfx74 months +74monthsales 2015 09 21.wcfx ARGUS Developer Version: 5.00.001 Date: 29/09/2015

171 P04 APPRAISAL SUMMARY GATESHEAD COUNCIL Sunniside Sunniside NE

Summary Appraisal for Merged Phases 1 2

REVENUE Sales Valuation Units m² Rate m² Unit Price Gross Sales 2 Bed Private 6 420.00 £2,250.00 £157,500 945,000 3 Bed Private 16 1,344.00 £2,250.00 £189,000 3,024,000 4 Bed Private 19 2,299.00 £2,250.00 £272,250 5,172,750 2B Affordable 4 280.00 £2,250.00 £157,500 630,000 3B Affordable 3 252.00 £2,250.00 £189,000 567,000 Totals 48 4,595.00 10,338,750

NET REALISATION 9,844,988

OUTLAY

ACQUISITION COSTS Residualised Price (1.56 Ha £1,242,175.33 pHect) 1,937,794 Stamp Duty 4.00% 77,512 Agent Fee 1.00% 19,378 Legal Fee 0.75% 14,533 2,049,217 CONSTRUCTION COSTS Construction m² Rate m² Cost 2 Bed Private 420.00 £839.00 352,380 3 Bed Private 1,344.00 £839.00 1,127,616 4 Bed Private 2,299.00 £839.00 1,928,861 2B Affordable 280.00 £839.00 234,920 3B Affordable 252.00 £839.00 211,428 Totals 4,595.00 3,855,205 3,855,205

Contingency 5.00% 192,760 Abnormals 5.00% 192,760 385,521 Other Construction Externals 10.00% 340,886 NHBC 41.00 un 500.00 /un 20,500 EPC 41.00 un 500.00 /un 20,500 Externals 10.00% 44,635 NHBC 7.00 un 500.00 /un 3,500 EPC 7.00 un 500.00 /un 3,500 433,521

PROFESSIONAL FEES Other Professionals 10.00% 374,974 Other Professionals 10.00% 49,098 424,073 DISPOSAL FEES Sales Agent Fee 3.50% 344,575 Sales Legal Fee 48.00 un 600.00 /un 28,800 373,375 FINANCE Debit Rate 6.50% Credit Rate 1.50% (Nominal) Debit Rates varied throughout the Cash Flow Total Finance Cost 452,976

TOTAL COSTS 7,973,886

PROFIT 1,871,102

File: \\DEVMEM2\Apps\Argus Software\Developer\Sunniside NE with affordable no planning contrib.23month build & sales2015.09.21wcfx.wcfx ARGUS Developer Version: 5.00.001 Date: 29/09/2015

172 P04 APPRAISAL SUMMARY GATESHEAD COUNCIL Sunniside Sunniside NE

Performance Measures Profit on Cost% 23.47% Profit on GDV% 19.01% Profit on NDV% 19.01%

IRR 25.60%

Profit Erosion (finance rate 6.500%) 3 yrs 3 mths

File: \\DEVMEM2\Apps\Argus Software\Developer\Sunniside NE with affordable no planning contrib.23month build & sales2015.09.21wcfx.wcfx ARGUS Developer Version: 5.00.001 Date: 29/09/2015

173 P04 APPRAISAL SUMMARY GATESHEAD COUNCIL Sunniside Sunniside NE

Adjustment Net Sales 0 945,000 0 3,024,000 0 5,172,750 (259,875) 370,125 (233,888) 333,113 (493,763) 9,844,988

File: \\DEVMEM2\Apps\Argus Software\Developer\Sunniside NE with affordable no planning contrib.23month build & sales2015.09.21wcfx.wcfx ARGUS Developer Version: 5.00.001 Date: 29/09/2015

174 P04 APPRAISAL SUMMARY GATESHEAD COUNCIL Sunniside Sunniside NE

File: \\DEVMEM2\Apps\Argus Software\Developer\Sunniside NE with affordable no planning contrib.23month build & sales2015.09.21wcfx.wcfx ARGUS Developer Version: 5.00.001 Date: 29/09/2015

175 P04 APPRAISAL SUMMARY GATESHEAD COUNCIL Sunniside Sunniside SE

Summary Appraisal for Merged Phases 1 2

REVENUE Sales Valuation Units m² Rate m² Unit Price Gross Sales 2 Bed Private 11 770.00 £2,250.00 £157,500 1,732,500 3 Bed Private 29 2,436.00 £2,250.00 £189,000 5,481,000 4 Bed Private 36 4,356.00 £2,250.00 £272,250 9,801,000 2B Affordable 7 490.00 £2,250.00 £157,500 1,102,500 3B Affordable 7 588.00 £2,250.00 £189,000 1,323,000 Totals 90 8,640.00 19,440,000

NET REALISATION 18,439,481

OUTLAY

ACQUISITION COSTS Residualised Price (2.73 Ha £1,315,565.66 pHect) 3,591,494 Stamp Duty 4.00% 143,660 Agent Fee 1.00% 35,915 Legal Fee 0.75% 26,936 3,798,005 CONSTRUCTION COSTS Construction m² Rate m² Cost 2 Bed Private 770.00 £839.00 646,030 3 Bed Private 2,436.00 £839.00 2,043,804 4 Bed Private 4,356.00 £839.00 3,654,684 2B Affordable 490.00 £839.00 411,110 3B Affordable 588.00 £839.00 493,332 Totals 8,640.00 7,248,960 7,248,960

Contingency 5.00% 362,448 Abnormals 5.00% 362,448 724,896 Other Construction Externals 10.00% 634,452 NHBC 76.00 un 500.00 /un 38,000 EPC 76.00 un 500.00 /un 38,000 Externals 10.00% 90,444 NHBC 14.00 un 500.00 /un 7,000 EPC 14.00 un 500.00 /un 7,000 814,896

PROFESSIONAL FEES Other Professionals 10.00% 697,897 Other Professionals 10.00% 99,489 797,386 DISPOSAL FEES Sales Agent Fee 3.50% 645,382 Sales Legal Fee 90.00 un 600.00 /un 54,000 699,382 FINANCE Debit Rate 6.50% Credit Rate 1.50% (Nominal) Debit Rates varied throughout the Cash Flow Total Finance Cost 865,812

TOTAL COSTS 14,949,337

PROFIT 3,490,144

File: \\DEVMEM2\Apps\Argus Software\Developer\Sunniside SE with affordable no planning contrib.32 monthbuild 32monthsales21.9.15.wcfx ARGUS Developer Version: 5.00.001 Date: 29/09/2015

176 P04 APPRAISAL SUMMARY GATESHEAD COUNCIL Sunniside Sunniside SE

Performance Measures Profit on Cost% 23.35% Profit on GDV% 18.93% Profit on NDV% 18.93%

IRR 23.60%

Profit Erosion (finance rate 6.500%) 3 yrs 3 mths

File: \\DEVMEM2\Apps\Argus Software\Developer\Sunniside SE with affordable no planning contrib.32 monthbuild 32monthsales21.9.15.wcfx ARGUS Developer Version: 5.00.001 Date: 29/09/2015

177 P04 APPRAISAL SUMMARY GATESHEAD COUNCIL Sunniside Sunniside SE

Adjustment Net Sales 0 1,732,500 0 5,481,000 0 9,801,000 (454,781) 647,719 (545,738) 777,263 (1,000,519) 18,439,481

File: \\DEVMEM2\Apps\Argus Software\Developer\Sunniside SE with affordable no planning contrib.32 monthbuild 32monthsales21.9.15.wcfx ARGUS Developer Version: 5.00.001 Date: 29/09/2015

178 P04 APPRAISAL SUMMARY GATESHEAD COUNCIL Sunniside Sunniside SE

File: \\DEVMEM2\Apps\Argus Software\Developer\Sunniside SE with affordable no planning contrib.32 monthbuild 32monthsales21.9.15.wcfx ARGUS Developer Version: 5.00.001 Date: 29/09/2015

179 P04 APPRAISAL SUMMARY LICENSED COPY LOWER CALLERTON

Summary Appraisal for Morgod Phases I 2

REVENUE Sales Valuation Un¡ts m? Rate m: Un¡t Prics Gross Salos Ad¡ustmont Nåt Salos 2 bed pr¡vâte 96 6,720.00 f2,250,00 e157,500 I 5,120,000 0 1 5,1 20,000 3 bed private 264 22,176.OO 12,250.00 r189,000 49,896,000 0 49,896,000 4 bed private 320 38,720.00 f2,250.00 î272,250 87,120,000 0 87,120,000 2 bêd afforable 64 4,480.00 Ê2,250.00 €1s7,500 10,080,000 (4,158,000) 5,922,000 3 bsd affordabls 56 !f,q@. 12,250.O0 e189,000 L9ég4p9s. g.golpsq 6.2't8.100 Totalg 800 76,800.00 172,800,000 (8,523,900) 164,276,100

NET REALISATION 164,276,100

OUTLAY

ACOUtStTtON COSTS Residualised Prics 32,286,228 Stamp Duty 4.00ø/0 1,291,449 Agent FeB 1.00% 322,862 Legal Fêe o.750/o 242,147 34,142,686 CONSTRUCTION COSTS ConBtruclion m'¡ Rate m'. CoEt 2 b6d pr¡vate 6,720.00 Ê839.00 s,638,080 3 bsd private 22,176.00 f839.00 18,605,664 4 bed pr¡vate 38,720.00 €839.00 32,486,080 2 bed afforable 4,480.00 1839.00 3,758,720 3 bed affordable 4,704.OO Ê839.00 3,946,656 Totals æ@sq .914!Þ¿Sq 64,435,200

Cont¡ngêncy 5.000/. 3,221,760 Abnormals 5.00% 2,836,491 Abnormals Allowance 5.00% 385,269 6,443,520 Olhor ConBtruct¡on Ext6rnals 10.00yo 5,672,982 NHBC 680.00 un 500.00/un 340,000 EPC 680.00 un 500.00 /un 340,000 Externals 10.00% 770,538 NHBC 120.00 un 500.00 /un 60,000 EPC 120.00 un 500.00 /un 60,000 7,243,520

PROFESSIONAL FEES Other Professionals 10.ooo/. 5,672,982 Other Profsssionals '10.00% 770,538 6,443,520 DISPOSAL FEES Sales Agenl Fee 3.50% 5,749,664 Salss Legal Fe6 800.00 un 600.00 /un 480,000 6,229,664 FINANCE Debit Rate 6.50% Crêdit Rale 1.50o/o (Nominal) Total Finance Cost 8,1 s7,989

TOTAL COSTS 133,096,099

PROFIT 31,180,00r

Performance Measuros Profit on Cost% 23.43v. Profit on GDV% 18.98% Prof¡t on NDV% 18,S8%

IRR 19.96%

Profit Erosion (f¡nancê râte 6.500%) 3 yrs 3 mths

File: HiPROJECTS (Shar6dl2014 SLR V|ABlLlry AND CIL VIABILIT\ISLR SITES - 2015 UPDATEIAPPRAISAL RUN 1 - LOWER CALLERTON 800units.wcfx ARGUS Devêlopor Vers¡on: 5.00.001 Dats 1411012015

180 P04 APPRAISAL SUMMARY LICENSED COPY LOWER CALLERTON

Summary Appraisal for Morgod Phasos 1 2

REVENUE Salos Valuation Units m¿ Rale m, un¡t Pr¡ce Gross Salos 2 bsd private 6,720.00 î2,2s0.o0 Ê1 57,500 1s,120,000 3 b€d pr¡vate 264 22,'t76.00 €2,250.00 Ê1 89,000 4S,896,000 4 b€d pr¡vate 320 38,720.00 t2,2s0.00 î272,250 87,1 20,000 2 bêd afforable 64 4,480.00 Ê2,250.00 Ê1 57,500 10,080,000 3 bsd affordable 56 4.704.00 Ê2,250.00 Ê1 89,000 '10.584.000 Totals 800 76,800.00 172,800,000

NET REALISATION 172,800,000

OUTLAY

ACQUtStTtON COSTS Rosidual¡sêd Pr¡ce 36,328,996 Stamp Duty 4.00% 1,453,160 Agent Fee 1.000/0 363,290 Legal Feô 0.750/. 272,467 38,417,913 CONSTRUCTION COSTS Constructlon m' Rats m'¿ CoEt 2 bed pr¡vate ô,720.00 Ê839.00 s,638,080 3 bod private 22,176.O0 f839.00 18,605,664 4 b6d private 38,720.00 Ê839.00 32,486,080 2 bêd afforable 4,480.00 1839.00 3,758,720 3 bêd affordable 4,704.OO 1839.00 3,946,656 Totals rc,c99s9. .914!s¿99. 64,435,200

Contingency 5.00% 3,221,760 Abnormals 5.00% 2,836,491 Abnormâls Allowânce 5.00% 385,269 6,443,520 Othsr Construction Externals 10.00./. 5,672,982 NHBC 680.00 un 500.00 /un 340,000 EPC 680.00 un 500.00 /un 340,000 Ext6rnâls 10.000/" 770,538 NHBC 120.00 un 500.00 iun 60,000 EPC 120.00 un 500.00 /un 60,000 7,243,520

PROFESSIONAL FEES Other Professionals 10.000/0 5,672,982 Other Profess¡onals 10.00% 770,538 6,443,520 DISPOSAL FEES Sales Agent Fês 3.500/0 6,048,000 Salos Legal F6ê 800.00 un 600.00 /un 480,000 6,528,000 FINANCE Debit Rate 6.50% Credit Rats 1.50% (Nom¡nal) Totâl Finâncê Cost 8,728,296

TOTAL COSTS 138,239,970

PROFIT 34,560,030

Profit on Cost% 25.000/0 Profit on GDV% 20.000/0 Profit on NDV% 20.00%

IRR 2030%

Profit Eros¡on (fìnance rate 6.500%) 3 yrs 6 mlhs

Fil€: HIPROJËCïS (Sharedl2014 SLR VIABILITY AND CIL VIABILII\ISLR SITES - 2015 UPDATE\APPRAISAL RUN '1 - LOWER CALLERTON 800units-NO AFFORDABLE.wcfx ARGUS Þ6vsloper Vers¡on: 5.00.001 Oatèi 'l4l1Ol2O15

181 P04 APPRAISAL SUMMARY LICENSED COPY MIDDLE CALLERTON

Summary Appra¡sal lor Merged Phasês I 2

REVENUE SaloE Valuat¡on Un¡t8 m' Rate m" Unit Pr¡co Gross Salog Ad¡ustmont Not Salos 2 bsd pr¡vate 120 8,400.00 82,250.O0 Ê1 57,500 18,900,000 0 18,900,000 3 bêd pr¡vate 330 27,720.00 â2,250.00 Ê189,000 62,370,000 0 62,370,000 4 b€d pr¡vate 400 48,400.00 €2,250.00 8272,250 108,900,000 0 108,900,000 2 bed afforabls 80 5,600.00 €2,250.00 Êl 57,500 12,600,000 (5,197,500) 7,402,500 3 bed âffordable 29. Þ.q@9. Ê2,250.00 Ê189,000 L3¿39.S99. lsé5zÉzsi 7.772.625 Totâlg 1,000 96,000.00 216,000,000 (10,654,875) 205,345,125

NET REALISATION 205,345,125

OUTLAY

ACQUTStTTON COSTS Rssidual¡sed Prics 40,0s5,830 Stamp Duty 4.O0v. 1,602,233 Ag6nt Feo 't.00% 400,558 Legal Fee o.75ø/. 300,419 42,359,040 CONSTRUCTION COSTS Construction m'¿ Rale m¡ Cost 2 bed private 8,400.00 Ê839.00 7,047,600 3 b6d private 27,720.00 Ê839.00 23,257,080 4 bod privatê 48,400.00 Ê839.00 40.607.600 2 bsd afforable 5,600.00 Ê839.00 4,698,400 3 bsd affordable 5,880.00 â839.00 4,933,320 Totâls 96.000.00 80.544.000 80,5¡14,000

Cont¡ng6ncy 5.OO./. 4,027,200 Abnormals 5.00% 3,545,614 Abnormals Allowancê 5.00% 481,s86 8,054,400 Othor ConEtruct¡on Externals lO.OOYo 7,091,228 NHBC 850.00 un 500.00 /un 425,000 EPC 850.00 un 500.00/un 425,000 Externals 10.00% 963,172 NHBC 150.00 un 500.00 /un 75,000 EPC '150.00 un 500.00/un 75,000 9,054,400

PROFESSIONAL FEES Olhsr Professionals 10.006/6 7,09't,228 Oth6r Professionals 10.00% 963,172 8,054,400 DISPOSAL FEES Sales Agent Fêe 3.59v" 7,187,O79 Sales Logal Fôe 1,000.00 un 600.00 /un 600,000 7,787,079 FINANCE Debit Rate 6.50% Crsdit Rate 1.5070 (Nominal) Total Finanæ Cost 10,504,889

TOTAL COSTS r66,358,208

PROFIT 38,986,917

Prof¡t on CostTo 23.440/0 Profit on GDV% '18.99% Profit on NDV% 18.990/o

IRR 18.47%

Prot¡t Erosion (financê rat6 6.500%) 3 yrs 3 mths

File: HIPROJECTS (Shared[2o'|4 SLR VIABILITY AND CIL VIABILITYìSLR SITES - 2015 UPDATE\APPRAISAL RUN 1 - MIDDLE CALLERTON l000units.wcfx

ARGUS Devsloper Vorsion: 5.00.001 Date; 1 4/1 0/20'1 5

182 P04 APPRAISAL SUMMARY LICENSED MIDDLE CALLERTON

Summary Appraisal for Mergod Phasos I 2

REVENUE SaloB Valuat¡on Un¡ls m'. Rato m' Unit Pr¡co Gfosa Salog 2 bed privato 120 8,400.00 Ê2,250.00 Ê1 57,500 18,900,000 3 bed pr¡vate 27,720.O0 82,250.0O Ê1 89,000 62,370,000 4 bed private 400 48,400.00 Ê2,250.00 î272,250 'f08,900,000 2 bed afforable 80 5,ô00.00 Ê2,250.00 Ê'157,500 12,600,000 3 bed affordablê 70 5.880.00 Ê2,250.00 Ê189,000 flgl9p99. Tolals 1,000 96,000.00 216,000,000

NET REALISATION 216,000,000

OUTL,AY

ACQUTSTTION COSTS Rssidual¡sed Price 45,034,869 Stamp Duty 4.000/" I,801,395 Agent Fêe 1.000/0 450,349 Legal Feê 0.75% 337,762 47,624,374 CONSTRUCTION COSTS Construct¡on m'¿ Rato m' Co8t 2 bed pr¡vatê 8,400.00 Ê839.00 7,047,600 3 bed private 27,720.00 Ê839.00 23,257,080 4 bed pr¡vate 48,400.00 Ê839.00 40,607,600 2 bed afforable 5,600.00 î839.00 4,698,400 3 bed affordablô 5,880.00 î839.00 4,933,320 Totals .9!@Sg, 80.544.000 80,5¡14,000

Contingêncy 5.O0% 4,027,200 Abnormals 5.00% 3,545,6'14 Abnormals Allowance 5.00% 481,s86 8,054,400 Othor Construct¡on Externals '10.00% 7,O91,228 NHBC 850.00 un 500.00 /un 425,000 EPC 850.00 un 500.00 /un 42s,000 Externals 10.00% 963,172 NHBC 150.00 un 500.00 /un 75,000 EPC 150.00 un 500.00 /un 75,000 9,054,400

PROFESSIONAL FEES Other Professionals 10.oov" 7,09'1,228 Other Profoss¡onals 10.000/0 963,172 8,054,400 DISPOSAL FEES Sales Agent Fee 3.50% 7,560,000 Sale6 Legal Foe 1,000.00 un 600.00 /un 600,000 8,1 60,000 FINANCE Dêbit Rate 6.5070 Credit Rate 1.50% (Nominal) Total F¡nancs cost 11,308,427

TOTAL COSTS 172,800,001

PROFIT 43,199,999

Porformance Mgaauroa Prof¡t on Cosl% 25.000/. Prof¡t on GDV% 20.ooo/o Profit on NDV% 20.oo./"

IRR 18.710/o

Profit Erosion (fìnanco rate 6.500%) 3 yrs 6 mths

F¡l€: H;\PROJEcTS (SharedI2014 SLR VIABlLlry AND CIL VIABILIT\ISLR SITES - 2015 UPDATE\APPRAISAL RUN I MIDDLE CALLERTON 1 000units-No AFFORDABLE.wcfx ARGUS Develop€r Vers¡on: 5.00.001 Date: 14hOl2O15

183 P04 APPRAISAL SUMMARY L ENSED UPPER CALLERTON

Summary Appralsal for Morgod Phasos I 2

REVENUE Sales Valualion Units m'¿ Rate m' Unit Prico Gross Sal€s Adjustmont Nst Salês .t44 2 bed private 10,080.00 Ê2,250.00 Ê1s7,500 22,680,000 0 22,680,000 3 bed private 396 33,264.00 €2,250.00 Ê189,000 74,844,000 0 74,844,O00 4 bed privatê 480 58,080.00 Ê2,250.00 8272,250 130,680,000 0 130,680,000 2 bêd afforable 96 6,720.00 e2,250.00 e157,500 I 5,120,000 (6,237,000) 8,883,000 3 bed affordable 84 ]J99.09, Ê2,250.00 Ê1 89,000 l.Þ.973@, tg.91c,cÞ9) 93?r@ Totals 1,200 'n5,200.00 259,200,000 (r2,78s,8s0) 246,414,150

NET REALISATION 246,414,150

OUTLAY

ACQUtStTtON COSTS Rês¡dualisêd Pricê 47,681,582 Slamp Duty 4.00% 1,907,263 Agent Fee 1.00./. 476,8'16 Legal Fee 0.7so/o 357,612 50,423,273 CONSTRUCTION COSTS Conslruct¡on m2 Rate m'¿ Co6t 2 bsd private 10,080.00 Ê839.00 8,457,120 3 bed private 33,264.00 Ê839,00 27,908,496 4 bed privâte 58,080.00 Ê839.00 48,729,120 2 bêd afforable 6,720.00 Ê839.00 5,638,080 3 bed affordable 7,056.00 Ê839.00 5,919,984 ïotals Ll-g@sq .99.9Þ¿p99. 96,652,800

Contingency 5.O00/o 4,832,640 Abnormals 5.OO./. 4,254,737 Abnormals Allowâncê 5.00% 577,903 9,665,280 Olhor Construction Externals 10.000/0 8,509,474 NHBC I,020.00 un 500.00 /un 51 0,000 EPC I,020.00 un 500.00 /un 510,000 Externals 10.00% 1,155,806 NHBC 180,00 un 500.00 /un 90,000 EPC 180.00 un 500.00 /un 90,000 10,865,280

PROFESSIONAL FEES Other Professionals '10.00% 8,509,474 Other Professionals 10.00% '1,155,806 9,665,280 DISPOSAL FEES Sales Agent Fes 3.500/0 8,624,455 Sales Legal Fêê 1,200.00 un 600.00 /un 72O,00O 9,344,495 FINANCE Debit Rat€ 6.50% Cr€dit Rate 1.50% (Nominal) Total Finance Cost 12,S99,662

TOTAL COSTS I 99,616,070

PROFIT 46,798,080

Profit on Cost% 23.44./, Profit on GDV% 18.S9% Profit on NDVo/o 18,99%

IRR 17.230/.

Prof¡t Erosion (finance rate 6.5007o) 3 yrs 3 mths

File: HIPROJECTS (Sharsdl2o14 SLR VIABILIryAND CIL VIABILIT\ISLR SITES - 20ls UPDATE\APPRAISAL RUN 1 - UPPER CALLERTON l2oounits.wcfx ARGUS D6v€lop€r Vers¡on; 5.00.001 Dalei 14h012015

184 P04 APPRAISAL SUMMARY LICENSED COPY UPPER CALLERTON

Summary Appraisal for Morged Phasos I 2

REVENUE Sales Valuat¡on Units m2 Rato m¡ Unit Prlco Gross Saleg 2 bêd pr¡vate 144 10,080.00 82,250.O0 Ê1 57,500 22,680,000 3 bed pr¡vate 396 33,264,00 Ê2,250.00 Ê1 89,000 74,844,000 4 b€d privats 480 58,080.00 Ê2,250.00 8272,250 130,680,000 2 bed afforable 96 6,720.00 e2,250.00 e1 57,500 15,'120,000 3 bed affordable 94 Zpgq.og. e2,2s0.00 â189,000 l5.9ZS@ Totals 1,200 115,200.00 259,200,000

NET REALISATION 259,200,000

OUTLAY

ACQUtStTtON COSTS Residual¡sed Price 67,'199,931 Stamp Duty 4.OOo/o 2,687,997 Agent Fse 1.OOo/o 671,999 Legal Fee 0.750/0 503,999 71,063,927 coNSTRUCTtON COSlS Construct¡on m¿ Rate me Coat 2 bêd pr¡vate '10,080.00 Ê720.00 7,257,600 3 bsd pr¡vats 33,264.00 Ê720.00 23.950.080 4 b€d pr¡vate 58,080.00 €720.00 41,817,600 2 bed afforablô 6,720.00 e720.00 4,838,400 3 b6d âffordâblo 7,056.00 Ê720.00 5,080,320 Totals 115.200.00 c¿p44.sss 82,9¡14,000

Conlingsncy 5.O0% 4,147,200 Abnormals 5.0070 3,6s1,264 Abnormâls Allowâncê 5.0070 495,936 8,294,400 Othor Construct¡on Extsrnals 10.ooo/o 7,302,528 NHBC 1,020.00 un 500.00 /un 510,000 EPC 1,020.00 un 500.00 /un 510,000 Externals 10.000/0 991,872 NHBC 180.00 un 500.00 /un 90,000 EPC 180.00 un 500.00 /un 90,000 9,494,400

PROFESSIONAL FEES Other Profess¡onals 10.000/0 7,302,528 Other Prof€ss¡onals 10.00% 99't,872 8,294,400 DISPOSAL FEES Sâlês Agênt Fee 3.50% 9,072,000 Sales Legal Fee 1,200.00 un 600.00 /un 720,000 9,792,000 FINANCE Deb¡t Rate 6.50% Crêdit Rate 1.50% (Nom¡nal) Total F¡nânæ Cost 't7,476,887

TOIAL COSTS 207,360,014

PROFIT 51,839,986

Porformancê Moaaurea Prof¡t on Cost% 25.00% Profit on GDV% 20.00% Profit on NDV% 20.000/0

IRR 15.95%

Profit Erosion (financo rate 6.500%) 3 yrs 6 mths

File: HTPROJECTS (Sharedl2o14 SLR VIABILITY AND CIL VIABILIT\ISLR SITES - 2015 UPDATE\,APPRAISAL RUN '1 - UPPER CALLERTON 1200units-NO AFFORADABLE.wcfx ARGUS D€veloper Version: 5.00.001 Dale:14110120'ls

185 P04 APPRAISAL SUMMARY LICENSED C KINGSTON PARK. KENTON BANK FOOT

Summary Apprå¡sal for Morgod Phasos I 2

REVENUE Salss Valuat¡on Un¡ts mu Rate m' Un¡t Prico GrosE Salos Ad¡uEtment Net Sal6s 2 bed pr¡vatê 96 6,720.00 Ê2,250.00 Ê1 57,500 1 5,120,000 0 I 5,120,000 3 bsd pr¡vate 264 22,176.00 î2,250.00 €'189,000 49,896,000 0 49,896,000 4 bed pr¡vate 320 38,720.00 12,250.00 î272,250 87.120,000 0 87,1 20,000 Ê1 s7,500 '10,080,000 (4,1 58,000) s,922,000 2 bêd afforable 64 4,480.00 r2,250.00 glg4l¡ 3 bsd affordable Þ0. !@ €2,2s0.00 Ê1 89,000 Lséc4p99. 14.308€991 TotalB 800 76,800.00 172,800,000 (8,523,900) 164,276,100

NEl REALISATION 164,276,100

OUTLAY

ACQUtStTtON COSTS Residualised Pr¡æ 32,286,224 Stamp Duty 4.O0Yo 1,291,449 Agent Fee 't.olv. 322,862 Legal Fe€ 0.7so/o 242,147 34,142,686 CONSTRUCTION COSTS Conslruction mr Rale m'¡ Cost 2 bed pr¡vate 6,720.00 Ê839.00 5,638,080 3 bed pr¡vate 22,176.O0 Ê839.00 18,605,664 4 bed private 38,720.00 Ê839.00 32,486,080 2 bed afforable 4,480.00 Ê839.00 3,7s8,720 3 bed affordable 4,704.00 Ê839.00 3,946,656 Totals 76.800.00 .gt 4Ë¿9q 64,435,200

Cont¡ngêncy 5.00% 3,221,760 Abnormals 5.00% 2,836,491 Abnormals Allowancs 5.00% 385,269 6,443,520 Othor Conslruct¡on Externals 10.00% 5,672,982 NHBC 680.00 un 500.00 /un 340,000 EPC 680.00 un 500.00 /un 340,000 Ext6rnals 10.00% 770,538 NHBC 120.00 un 500.00 /un 60,000 EPC 120.00 un 500.00 /un 60,000 7,243,520

PROFESSIONAL FEES Other Profêssionals 't0.000/" 5,672,982 Othêr Profêss¡onals 10.00% 770,538 6,443,520 DISPOSAL FEES Sales Agont Fô6 3.50% 5,74S,664 Sales Legal Fee 800.00 un 600.00 /un 480,000 6,229,664 FINANCE Deb¡t Rat€ 6.50% Credit Ratê 1.50% (Nom¡nal) Tolal Finance Cost I,l 57,989

TOTAL COSTS 133,096,099

PROFIT 31,180,001

Per'ormance Moaauroa Profit on Cost% 23.430/0 Prof¡t on GDV% 18.98% Prof¡t on NDV% 18.98%

IRR '19.96%

Profit Eros¡on (finance rale 6.500%) 3 yrs 3 mths

F¡ls: HIPROJECTS (Shared[2014 SLR VIABILITY AND CIL VIABILITY\SLR SITES - 2015 UPDATE\APPRAISAL RUN 1 - KINGSTON PARK 800UNITS.WCFX ARGUS Developer V€rsion: 5.00.001 Datet 1411012015

186 P04 APPRAISAL SUMMARY LICENSED COPY KINGSTON PARK KENTON BANK FOOT

Summary Appra¡sal for Msrgod Phases 1 2

REVENUE Sale. Valuat¡on Unite m2 Rate m' Un¡t Pr¡co Gross Salog 2 bed privat€ 96 6,720.00 Ê2,250.00 Ê157,500 'I 5,120,000 3 bed private 264 22,176.00 Ê2,250.00 Ê189,000 49,896,000 bed privat€ 320 38,720.00 Ê2,250.00 Ê272,250 87,120,000 bed afiorablo 64 4,480.00 Ê2,2s0.00 Ê157,500 10,080,000 bed affordâble gq 1J94pq Ê2,250.00 €189,000 llLÞ94.@9. Totals 800 76,800.00 172,800,000

NET REALISATION 172,800,000

OUTLAY

ACQUtStTtON COSTS Residualised Pr¡co 36,328,996 Stamp Duty 4.00% 1,453,160 Ag€nt FBe 1.000/0 363,290 Legâl Feê o.750/o 272,467 38,417,913 CONSTRUCTION COSTS Construction m2 Rala m'? Cost 2 bed private 6,720.00 Ê839.00 s,638,080 3 bod private 22,176.O0 Ê839.00 18,605.664 4 bed pr¡vate 38,720.00 Ê839.00 32,486,080 2 bsd afforabls 4,480.00 8839.00 3,758,720 3 bed affordabls 4,704.OO Ê839.00 3.946,656 Totals rs@sq 914!g¿sq 64,435,200

Contingency 5.OO./. 3,221,760 Abnormals 5.00% 2,836,491 Abnormals Allowance 5.00o/o 385,269 6,443,520 Ctther Construct¡on Externals 10.00% 5,672,982 NHBC 680.00 un 500.00 /un 340,000 EPC 680.00 un 500.00 /un 340,000 Externals 10.000/" 770,538 NHBC 120.00 un 500.00 /un 60,000 EPC 120.00 un 500.00 /un 60,000 7,243,520

PROFESSIONAL FEES Othsr Profsssionals 10.00% 5,672,982 Other Profess¡onals 10.00% 770,s38 6,443,520 DISPOSAL FEES Salos Agent Fee 3.500/0 6,048,000 salss Legal Fes 800.00 un 600.00 /un 480,000 6,528,000 FINANCE Dêb¡t Râte 6.50% Crêd¡t Rate 1.5070 (Nominâl) Total Finance Cost 8,728,296

TOÏAL COSTS 138,239,970

PROFIT 34,560,030

Prof¡t on Cost% 25.OOy" Profit on GDV% 20.00% Prof¡t on NDVo/. 20.000/0

IRR 20.300/0

Prof¡t Eros¡on (l¡nance ratê 6.500%) 3 yrs 6 mths

File; HiPROJECTS (SharedI2014 SLR VIABILITY AND CIL VIABILITY\SLR SITES - 2015 UPÞATE\APPRAISAL RUN 1 - KINGSTON PARK 800un¡ts-NO AFFORDABLË.wcfx ARGUS Devêlopêr V6rsion: 5.00.00'l Dalei 1411012015

187 P04 APPRAISAL SUMMARY LICENSED COPY NEWBIGGINHALL

Summary Appraisal for Msrgsd Phasos I 2

REVENUE Salos Valuation Units m'z Rate m¡ Unit Pr¡cg Gross Salos Ad¡ustmont Net Sâleg 2 bed private 3,570.00 Ê1,87s.00 Ê1 31,250 6,693,750 0 6,693,750 3 bêd private 114 9,576.00 Ê'1,875.00 e1 57,500 17,S55,000 0 17,955,000 4 bed private 90 10,890.00 Ê'1,875.00 î226,875 20,4't8,750 0 20,418,750 2 bed afforablo 24 1,680,00 Ê'1,875.00 Ê1 31,250 3,1 50,000 (1,299,375) 1,850,625 3 b6d affordâble 21 't.764.00 Ê1,875.00 Ê1 57,500 !,391@, 11t04344) 1.943.1 56 Tolals 300 27,480.00 51,525,000 (2,663,719) 48,861,281

NET REALISATION 48,861,281

OUTLAY

ACQUtStTtON COSTS R6s¡dual¡sed Pr¡ce 6,1 38,260 Slamp Duty 4.O0./. 261,385 Agenl Fss 1.OOo/. 6s,346 Legal Fee 0.7so/o 49,010 6,51 4,001 CONSTRUCTION COSTS Conslruct¡on m'z Ralê m'? Cost 2 bsd pr¡vat€ 3,570.00 Ê814.00 2,905,980 3 bsd pr¡vate 9,576,00 Ê8'14.00 7,794,864 4 bed pr¡vate '10,890.00 Ê814.00 8,864,460 2 b€d afforablô 1,680.00 e814.00 1,367,520 3 bed affordable 1,764.O0 e814,00 '1,43s,896 Totals 2!M 2z359ø. 22,368,720 Cont¡ngsncy 5,00% '1,118,436 Abnormals 5.00% 978,265 Abnormals Allowancê 5.00% 140,171 2,236,872 Oth6r Conatruct¡on Extornals 10.00./. 1,956,530 NHBC 255.00 un 500.00 /un 127,500 EPC 255.00 un 500.00 /un 127,500 Exlsrnals 10.00% 280,342 NHBC 45.00 un 500.00 /un 22,500 EPC 45.00 un 500.00 /un 22,500 2,536,872

PROFESSIONAL FEES Other Profess¡onals '10.00% 1,956,530 Other Professionals 10.00% 280342 2,236,872 DISPOSAL FEES Sales Agent Fee 3.51lo 1,710,'t4s Sales Legal Fee 300.00 un 600.00 iun 180,000 1,890,145 FINANCE Deb¡t Rate 6.50% Credit Rate 1.50% (Nominal) Total Finance Cost '1,791,053

TOTAL COSTS 39,574,535

PROFIT 9,286,746

Prof¡t on Cost% 23.47./. Prof¡t on GDVTo 19.01./. Prof¡t on NDV% 19.,'tvo

IRR 26.170/"

Prof¡t Erosion (finance rate 6.500%) 3 yrs 3 mths

F¡le: HTPROJECTS (Shared)2014 SLR VIABILITY ANÞ CIL VlABltlnlSLR SITES - 2015 UPDATE\NEWBIcGINHALL - AFFORDABLE-¡¡ARCH 1s.wcfx ARGUS Developer Version: 5.00.00'! Dater 14l10/2015

188 P04 APPRAISAL SUMMARY LICENSED COPY NEWBIGGINHALL

Summary Appra¡sal for Msrg€d Phasos I 2

REVENUE Salos Valuation Unils m¡ Ralo m'? Unlt Price Gross Salos 2 bêd afforâbl6 24 1,680.00 Ê'1,875.00 Ê131,250 3,150,000 3 bed affordablê 21 1,764.00 Ê'1,875.00 €157,500 3,307,500 2 b8d pr¡vats 51 3,570.00 Ê1,875.00 [13'1,250 6,693,750 3 bed pr¡vato 114 9,576.00 Ê1,875.00 Ê157,500 17,955,000 4 bed pr¡vatô e0 !9.@9' â1,875.00 î226,875 m,4l3J54,. Totals 300 27,480.00 5't,525,000

NET REALISATION 5't,525,000

OUTLAY

ACQUISTTtON COSTS Rssidualised Pr¡ce 7,339,583 Stamp Duty 4.00./. 293,583 Agent Fs6 1.00./. 73,396 Legal Foe o.750/o 55,047 7,761,609 coNstRUcTtoN cosTs Co¡slruclion m. Rate m" Cost 2 bed afforable 1,680.00 Ê814.00 '1,367,520 3 bed affordable '1,764.00 Ê814.00 1,435,896 2 bed pr¡vâtê 3,570.00 e814.00 2,905,980 3 bed private 9,s76.00 Ê814.00 7,794,864 4 bed private 10,890.00 Ê814.00 8,864,460 Totals 2!_W. 22.364.720 22,368,720

Abnormals Allowancê 5.000/o '140,171 Conlingency 5.00% 1,'t 18,436 Abnormals 5.000/o 978,265 2,236,872 Othor Consl¡ucl¡on Externals 10.00% 280,342 NHBC 45.00 un 500.00 /un 22,500 EPC 45.00 un 500.00 /un 22,500 Exlernals 10.00% 1,956,530 NHBC 255.00 un 500.00 /un 127,500 EPC 255.00 un 500.00 /un 127,500 2,536,872

PROFESSIONAL FEES Other Professionals 'to.ooo/o 280,342 Olher Prof€ss¡onals '10.00% 1,9s6,530 2,236,872 DISPOSAL FEES Salês Agent Fos 3.500/" 1,803,375 Sales Legal Fee 300.00 un 600.00 /un 180,000 1,983,375 FINANCE Debit Rate 6.50o/o Credit Rate 1.50% (Nom¡nal) Tolâl F¡nancê Cost 2,095,680

TOTAL COSTS 41,220,000

PROFIT r0,305,000

Pertormanco Moaaures Profit on Costo/o 25.000/0 Profit on GDV% 20.000/0 Prof¡t on NDVTo 20.oo./.

IRR 26.98Vo

Prof¡t Erosion (f¡nance rate 6.500o/o) 3 yrs 6 mlhs

F¡le: HIPROJECÍS (Shared)\2014 SLR VIABILITY AND CtL VtABtLtT\tSLR STTES - 20j5 UpDATE\NEWBtcGtNHALL - NO AFFORDABLE-MARCH 1 S.wcfx ARGUS Dsveloper Version; 5.00.001 Datsi 1411012015

189 P04 APPRAISAL SUMMARY LICENSED COPY GREAT PARK EXTENSIONS

Summary App¡aisal fo¡ Mergod Phasos 1 2

REVENUE Salos Valuation Un¡tg m'. Rato mr Unit Prico Gross Salea Ad¡ustmont Net Salss 2 bed private 72 5,040.00 12,250.00 €1s7,500 1 1,340,000 0 I 1 ,340,000 3 bed private 198 16,632.00 r2,250.00 â'189,000 37,422,000 0 37,422,000 4 bed privats 240 29,040.00 €2,250.00 8272,250 65,340,000 0 65,340,000 2 bed afforable 48 3,360.00 î2,250.00 Ê157,500 7,560,000 (3,1 1 8,500) 4,441,500 3 bod affordable g. !,þ@. Ê2,250.00 el 89,000 ¿93!.99S. ßøA-ÆI 4.663.575 Totals 600 57,600.00 129,600,000 (6,392,925) 123,207,075

NET REALISATION 123,207,075

OUTLAY

ACQUtStTtON COSTS Residualised Pricê 24,342,838 Slamp Duty 4.000/. 973,714 Agent F€e 1.000/0 243,428 Legal Fe€ 0.75% 182,571 25,742,551 CONSTRUGTION COSTS Construct¡on mt Rate m'¡ Cost 2 bed pr¡vate 5,040.00 Ê839.00 4,228,560 3 bêd private 16,632.00 Ê839.00 13,954,248 4 bêd private 29,040.00 e839.00 24,364,560 2 bêd afforable 3,360.00 €839.00 2,819,040 3 bêd affordable 3,528.00 â839.00 2,959,992 Totals gzÉsspq 44.326.400 48,326,400

Cont¡ngency 5.00% 2,416,320 Abnormals 5.000/0 2,'t27,368 Abnormals Allowance 5.0070 288,952 4,832,640 Other Conslruct¡on Externals 10.000/0 4,254,737 NHBC 510.00 un 500,00 /un 255,000 EPC 510.00 un 500.00 /un 255,000 Externals 10,00% 577,903 NHBC 90.00 un 500.00 /un 45,000 EPC 90.00 un 500.00 /un 45,000 5,432,640

PROFESSIONAL FEES Othor Profess¡onâls 10.00% 4,254,737 Olhsr Profsssionals '10.000/0 577,903 4,832,640 DISPOSAL FEES Salos Agent Feê 3.50% 4,312,248 Salss Lsgal Feê 600.00 un 600.00 /un 360,000 4,672,248 FINANCE Debit Rale 6.50% Cred¡t Rate 1.500/0 (Nominal) Total Finance Cost 5,984,946

TOTAL COSTS 99,824,06s

PROFIT 23,383,010

Profit on Cosl% 23.420/0 Profit on cDV% 1A.9Ao/o Profit on NDV% 18.98%

IRR 21.28%

Profit Eros¡on (fìnance rate 6.5000/0) 3 yrs 3 mths

File: HIPROJECTS (Shared[2014 SLR VIABILITY AND CIL VIABILIT\ISLR SITES - 2015 UPDATE\GREAT PARK CELL EXTENSIONS - AFFORDABLE.wcfx ARGUS Developer V€rsion: 5.00.001 Dalei 14110120'15

190 P04 APPRAISAL SUMMARY LI DCO GREAT PARK EXTENSIONS

Summary Appra¡sal for Morgod Phasos I 2

REVENUE Salos Valuat¡on un¡ts m'¿ Rate m, Un¡t Pr¡ce Gross Sales 2 bêd pr¡vâtê 72 5,040.00 Ê2,250.00 Ê'157,500 '11,340,000 3 bed pr¡vate 198 't6,632.00 Ê2,250.00 Ê189,000 37,422,000 4 bed pr¡vatê 240 29,040.00 Ê2,250.00 8272,250 65,340,000 2 bed afforablô 48 3,360.00 Ê2,250.00 Ê157,500 7,560,000 3 bed affordablê 42 @q Ê2,250.00 Êt89,000 2.93!J9g Totâlg 600 57,600.00 129,600,000

NET REALISATION 129,600,000

OUTLAY

ACAUtSTTtON COSTS Rssidualissd Pr¡cs 27,407,923 Stamp Duty 4.00% 1,096,317 Agent F€e 1.00% 274,079 Logal Fêe 0.756/o 205,559 28,983,878 coNSTRUCflON COSTS Construct¡on m. Rato m' Cost 2 bed pr¡vate 5,040,00 Ê839.00 4,228,560 3 bed pr¡vate 16,632.00 1839.00 13,954,248 4 bed pr¡vâte 29,040.00 €839.00 24,364,560 2 bsd afforable 3,360.00 e839.00 2,819,040 3 bed affordable 3,528.00 e839.00 2,959,992 Totâls 5z.gggSq 48.326.400 48,326,400

Conlingency 5.000/0 2,416,320 Abnormals 5.000/" 2,127,368 Abnormals Allowânc6 5.00% 288,952 4,832,640 Othor Conslruction Externals 10.000k 4,254,737 NHBC 510.00 un 500.00 /un 255,000 EPC 5'10.00 un 500.00 /un 255,000 Externals 10.0070 577,903 NHBC 90.00 un 500.00 /un 45,000 EPC 90.00 un 500.00 /un 45,000 5,432,640

PROFESSIONAL FEES Olher Professionals 10.000/0 4,254,737 Other Professionals '10.00% 577,903 4,832,640 DISPOSAL FEES Sales Agent Feê 3.50% 4,536,000 Salos L6gal Fes 600.00 un 600.00 /un 360,000 4,896,000 FINANCE Deb¡t Rate 6.50% Crêd¡t Rate 1.50% (Nominal) Total Finance Cost 6,375,794

TOTAL COSTS 103,679,992

PROFIT 25,920,008

Profit on Costo/o 25.OOo/o Profit on GDVo/o 20.ooo/o Profit on NDV% 20.ooo/

IRR 21.72%

Prof¡t Erosion (f¡nance rate 6.500%) 3 yrs 6 mths

F¡ls; HIPROJECTS (Shared[2014 SLR VIABILITYAND CIL VIABILITY\SLR SITES - 2015 UPDATE\GREAT PARK CELL EXTENSIONS - NOAFFORDABLE.wcfx ARGUS Devêlopêr Vêrs¡on: 5.00.001 Date:1411012015

191 P04 APPRAISAL SUMMARY LICENSED COPY DINNINGTON

Summary Appra¡sal tor Msrged Phasos 1 2

REVENUE SaloE Valual¡on Un¡ts m2 Rat€ m' Unit Prico Gross Salos Ad¡ustm€nt Not Salos 2 bed pr¡vate 3'1 2,170.00 Ê2,250.00 Ê157,500 4,882,500 0 4,882,500 3 bed pr¡vate 82 6,888.00 €2,250.00 Ê'189,000 '15,498,000 0 15,498,000 4 b€d pr¡vate 100 1 2,100,00 Ê2,250.00 î272,250 27,225,000 0 27,225,000 2 bôd afforable 't,330.00 Ê2,250.00 !1 s7,500 2,S92,s00 (1,234,406) 1,758,094 3 bed affordable 18 -1é!¿S9. €2,250.00 e189,000 3.402.000 i!!93,928t i-e99É2g Total3 250 24,000.00 54,000,000 (2,637,731) 51,3ô2,269

NET REALISATION 51,362,269

OUTLAY

ACOUTStTtON COSTS R€sidualised Pr¡ce 1 0,241,1 66 Stamp Duty 4.O00/o 409,647 Agent Fee 1.O00/o 102,412 Legal Fee 0.75./. 76,809 10,830,033 CONSTRUCTION COSTS Construclion m2 Rato m, Co6l 2 bod pr¡vate 2,'t70.oo Ê839.00 1,820,630 3 bed privats 6,888.00 Ê839.00 5.77S,032 4 bed private '12,100.00 8839.00 10,151,900 2 bsd afforable 1,330.00 Ê839.00 1,1 1s,870 3 bed affordablê '1,5r 2.00 Ê839.00 '1,268,568 Totals ¿L9@99. ¿9Íi9p9g 20,136,000

Cont¡ngsncy 5.00% 1,006,800 Abnormals 5.000/o 887,578 Abnormâls Allowancê 5.000/o 't19,222 2,01 3,600 Othor Constructlon Exlsrnals 10.000/0 1,775,156 NHBC 213.00 un 500.00 /un '106,500 EPC 213.00 un 500.00 /un 106,500 Externals 10.00% 234,444 NHBC 37.00 un 500.00 /un 18,500 EPC 37.00 un 500.00 /un 18,500 2,263,600

PROFESSIONAL FEES .Other Profsssionalg 10.00% '1,775,156 Othêr Professionals 10.000/0 238,444 2,013,600 DISPOSAL FEES Sâles Agent Fee 3.50% 1,797,679 Salss Legal Fes 250.00 un 600.00 /un 150,000 1,947,679 FINANCE Deb¡t Rate 6.50% Credit Rate 1.50% (Nominal) Total F¡nance Cost 2,406,420

TOTAL COSTS 4r,6r0,932

PROFIT 9,751,337

Porformancê Measuros Profit on Cost% 23.43yo Profit on GDV% 18.99% Profit on NDVo/" 18.990/0

IRR 24.OOok

Profit Erosion (finance rato 6.500%) 3 yrs 3 mths

Filê: HTPROJECTS (Shared}2o14 SLR V|ABlLlry AND CIL V|ABlLll\lSLR SIÍES - 201s UPDATE\DINNINGTON - AFFORDABLE.wcIx ARGUS Developer Version: 5.00.001 Datet 'l4l1Ùl2Ù15

192 P04 APPRAISAL SUMMARY LICENSED COPY DINNINGTON

Summary Appra¡sal for Morgod Phasos I 2

REVENUE Salos Valuat¡on Unltg m2 Rale m' Unit Prico Gross Salos 2 bed pr¡vate 2,1 70.00 f2,250.00 Ê157,500 4,882,s00 3 bed pr¡vate 6,888.00 12,250.00 Ê189,000 15,498,000 4 bed private '100 1 2,100.00 Ê2,250.00 î272,250 27,22s,O00 2 bed afforâble 19 1,330.00 f2,250.00 Ê157,500 2,992,500 3 bed affordablB ll¿ 1.512.00 12,250.00 Ê189,000 3.402.000 Totalg 250 24,000.00 54,000,000

NET REALISATION 54,000,000

OUTLAY

ACQUtStTtON COSTS Rssidualisod Pr¡ce 1 1,s28,609 Stamp Duly 4.000/0 461,144 Agent Fêê 1.000/0 11s,286 Legai Fss o.750/o 86,465 12,191,504 coNsTRucTtoN cosTs Construct¡on m. Rate m? cost 2 bed private 2,170.00 Ê839.00 1,820,630 3 b€d private 6,888.00 Ê839.00 5,779,032 4 bed prìvate '12,100.00 Ê839.00 10,151,900 2 bed afforable '1,330.00 Ê839.00 1,115,870 3 bsd affordable 1,512.00 Ê839.00 1,268,568 Totals 24.000.00 ¿9J-3!.000 20,'t36,000

Contingency 5.00% I,006,800 Abnormals 5.00% 887,578 Abnormals Allowance 5.00% 119,222 2,013,600 Olher Constructlon Externals 10.00% 1,775,156 NHBC 2'13.00 un 500.00 /un 106,500 EPC 21 3.00 un 500.00 /un 106,500 Externals 10.00% 238,444 NHBC 37.00 un 500.00 /un 18,500 ÊPC 37.00 un 500.00 /un '18,500 2.263,600

PROFESSIONAL FEES Other Professionals 10.00% 1,775,156 Olher Professionals 10.00% 238,444 2,01 3,600 DISPOSAL FEES Sales Agent Fse 3.5070 1,890,000 Sales Legal Feê 250.00 un 600.00 /un 150,000 2,040,000 FINANCE Dsbit Rate 6.50% Credit Rate 1.50% (Nominal) Total F¡nance Cost 2,541,697

TOTAL COSTS 43,200,000

PROFIT 10,800,000

Porformance Measurea Profit on Cost% 25.000/" Profit on GDV% 20.ooo/ Prof¡t on NDV% 20.00%

IRR 24.680/0

Profit Ërosion (f¡nânce rate 6.5000/0) 3 yrs 6 mths

Fils: HIPROJECTS (Sharsd)\2014 SLR VlABlLlry AND CIL VIABILITnSLR SITES - 2015 UPDATE\DINNINGTON - NO AFFORDABLE.wcfx ARGUS Developsr Vsrs¡on; 5.00.001 Dalet 1411012015

193 P04 APPRAISAL SUMMARY LICEN c WIDEOPEN

Summary Appra¡Bal for Msrgod Phasos 1 2

REVENUE Sales Valuat¡on Unltg ma Rate m" Un¡t Pr¡co Gross Salog Ad¡usfmont Not Salêg bêd private 12 840.00 Ê2,250.00 Ê1 57,500 1,890,000 0 1,890,000 b€d privat€ 32 2,688.00 Ê2,250,00 â1 89,000 6,048,000 0 6,048,000 bed privâte 40 4,840.00 Ê2,250.00 î272,250 10,890,000 0 10,890,000 bed afforable I 560.00 e2,250.00 Ê157,500 '1,260,000 (51e,750) 740,250 bed affordable g, 672.00 Ê2,250.00 e1 89,000 Lé12@9. lgSJsE gg9É99. Totals r00 9,600.00 2r,600,000 (r,143,450) 20,456,550

NET REALISATION 20,456,550

OUTLAY

ACQUIStTION COSTS Residual¡sed Pr¡ce 4,033,508 Stamp Duty 4.O00/o 161,340 Agent Fe6 1.000/. 40,335 Legal Fee 0.750/0 30,251 4,265,435 CONSTRUCTION COSTS Construction mi Rato m'1 cost 2 bed pr¡vate 840.00 Ê839.00 704,760 3 bed pr¡vate 2,688.00 î839.00 2,255,232 4 bed pr¡vate 4,840.00 t839.00 4,060,760 2 bed afforable 560.00 f839.00 469,840 3 bed affordabls 672.00 €839.00 563,808 Totals .9É9SSq 8.054.400 8,054,400

Contingency 5.O00/. 402,720 Abnormals 5.00% 351,038 Abnormals Allowance 5.00% 51,682 805,440 Oth€r Conslruct¡on Externals '10.00% 702,07s NHBC 84.00 un 500.00 /un 42,000 EPC 84.00 un 500.00 /un 42,000 Externals '10.00% '103,365 NHBC 6.00 un 500.00 /un 8,000 FPC 6.00 un 500.00 /un 8,000 905,440

PROFESSIONAL FEES Othsr Profess¡onâls 't0.000/" 702,075 Othêr Profsss¡onals 10.000/0 103,365 805,440 DISPOSAL FEES Sales Agsnt Fse 3.500/o 715,979 Salos Lêgal F6e 100.00 un 600.00 /un 60,000 775,979 FINANCE Deb¡t Rate 6.50% Credit Rate 1.50% (Nominal) Total Finance Cost 978,823

TOTAL COSTS 16,590,957

PROFIT 3,865,593

Porformanco Moasuros Profit on CostTo 23.300/" Profit on GDVo/" 18.900/0 Profit on NDVo/o 18.900¿

IRR 22.246/o

Profit Erosion (finance rale 6.500%) 3 yrs 3 mlhs

File: HIPROJECTS (SharedI20'14 SLR VIABILITY AND CIL VIABILIT\ISLR SITES - 2015 UPDATE\WIDEOPEN - AFFORDABLÊ.wcfx ARGUS Developer Version: 5.00.001 Dal@:1411012015

194 P04 APPRAISAL SUMMARY LICENSED COPY WIDEOPEN

Summary Appra¡sal for Morgod Phasos 1 2

REVENUE salêa valuat¡on Un¡ts m'z Rate m" Un¡l Prlco GrosE Sales bed private 12 840.00 Ê2,250.00 Ê'157,500 1,890,000 bed private 32 2,688.00 î2,250.00 â1 89,000 6,048,000 bed private 40 4,840.00 12,250.00 8272,250 10,890,000 bed afforablo I 560.00 Ê2,250.00 Ê1 57,500 1,260,000 bed affordable e 672.00 î2,250.00 €'189,000 lé!¿@ TotalÊ 100 9,600.00 21,600,000

NET REALISATION 21,600,000

OUTLAY

ACQUtStÏON COSTS Rssidualised Price 4,585,707 Slamp Duty 4.00v" 183,428 Agônt Fee 1.00v" 45,857 Legal Fee 0.750/0 34,393 4,849,385 CONSTRUCTION COSTS Construct¡on m'l Rato m" Cost 2 bed private 840.00 Ê839.00 704,760 3 bed private 2,688.00 Ê839.00 2,255,232 4 bed private 4,840.00 Ê839.00 4,060,760 2 bed afforable 560.00 Ê839.00 469,840 3 bed affordablô 672.00 Ê839.00 563,808 Totals .9,9@sq 8.054.400 8,054,400

Contingency 5.0070 402,720 Abnormals 5.0070 351,038 Abnormals A¡lowance 5.00% 51,ô82 805,440 Other Conatrucl¡on Extsrnals 10.00% 702,075 NHBC 84.00 un 500.00 /un 42,000 EPC 84.00 un 500.00 /un 42,000 Externals 10.00% 103,365 NHBC 16.00 un 500.00 /un 8,000 EPC 16.00 un 500.00 /un 8,000 905,440

PROFESSIONAL FEES Othsr Professionals 10.000/0 702,075 Other Professionâls 'to.000/0 103,365 805,440 DISPOSAL FEES Salês Agsnt Fee 3.50% 756,000 Salss Lsgal FB6 100.00 un 600.00 /un 60,000 816,000 FINANCE Deb¡t Rate 6.50% Credit Rate 1.50% (Nominal) Total Finance Cost 1,043,895

TOTAL COSTS ,t7,280,000

PROFIT 4,320,000

Porformance Measuros Prof¡t on Costo/. 2s.000/0 Prof¡t on GDV% 20.00vo Prof¡t on NDV% 20.00./.

IRR 22.80./.

Prof¡t Erosion (financs rat6 6.500%) 3 yrs 6 mths

File; HIPROJECTS (Shared[20'14 SLR VlABlLlry AND CIL VIABILIW\SLR SITES - 2015 UPDATE\WIDEOPEN - NO AFFORDABLE.wcfx ARGUS Devêloper Vers¡on: 5.00.001 DaIa:14hO12015

195 P04 APPRAISAL SUMMARY LICENSED HAZLERIGG

Summary Appra¡Eal for Morgod Phasos I 2

REVENUE Sâlos Valuation Units mt Rato m' Un¡t Prlce Gross Salos Ad¡ustmenl Net Salog 2 bsd privat€ 48 3,360.00 e1,875.00 Ê'131,250 6,300,000 0 6,300,000 3 bêd privâte 132 1 1,088.00 [1,875.00 el 57,500 20,790,000 0 20,790,000 4 bed privatê 160 19,360.00 e1,875.00 î226,875 36,300,000 0 36,300,000 2 bed afforablô 32 2,240.OO â1,875.00 Ê131,250 4,200,000 (1,732,500) 2,467,500 3 bed affordable 28 ¿.@ â1,875.00 c157,500 4J.199q t cl9J2Ð ¿Þ9!& Totals 400 38,400.00 72,000,000 (3,55r,62s) 68,448,375

NET REALISAIION 68,¡148,375

OUTLAY

ACQUtStTtON COSTS Rêsidual¡s6d Pr¡ce 8,584,968 Stamp Duty 4.00./. 364,538 Agsnt Fee 1.00./. 91,1 35 Legal Fee 0.750 68,351 9,108,992 coNsrRUcTtoN cosrs Construct¡on m¡ Rato m" Cost 2 bod pr¡vat€ 3,360.00 e814.00 2,735,040 3 bêd pr¡vate 1'1,088.00 8814.00 9,025,632 4 bed pr¡vale 19,360.00 Ê814.00'15,759,040 2 bêd afforable 2,240.00 Ê814.00 1,823,360 3 bêd affordable 2,352.00 Ê814.00 1,914,528 Totals !!@ 31.257.600 31,2s7,600

Conlingency 5.00% 1,562,880 Abnormals 5.00% 1,375,986 Abnormals Allowance 5.00% '186,894 3,125,760 Othor Construction Ext6rnals 10.00% 2,75't,971 NHBC 340.00 un 500.00 /un 170,000 EPC 340,00 un 500.00 /un 170,000 Externals 10.00% 373,789 NHBC 60.00 un 500.00 /un 30,000 EPC 60.00 un 500.00 /un 30,000 3,525,760

PROFESSIONAL FEES Other Profêss¡onals 10.00% 2,751,971 Othsr Profess¡onals 10.00% 373,789 3,'125,760 DISPOSAL FEES Sales Ag6nt Feo 3.50% 2,395,693 Salês Legal Fee 400.00 un 600.00 /un 240,000 2,635,693 FINANCE Debit Rato 6.50% Crêd¡t Rate 1.50% (Nominal) Total Finance Cost 2,665,278

TOTAL COSTS 55,444,843

PROFIT 13,003,532

Prcf¡t on Cost% 23.450/0 Prof¡t on GDV% 19.00% Prof¡t on NDV% 19.000/.

IRR 24.480/"

Profit Eros¡on (fìnance rate 6.500%) 3 yrs 3 mths

File: HIPROJECTS (Shar6dI2014 SLR VIABILITY AND CIL VIABILIT\1SLR SITES - 20'15 UPDATE\HAZLERIGG AFFORDABLË-MARCH-'15.wcfx ARGUS Devêloper Version: 5.00.001 Dalo:1411012015

196 P04 APPRAISAL SUMMARY LICENSED COPY HAZLERIGG

Summary Appra¡sal for Mergod Phasos 1 2

REVENUE Sales Valuat¡on Un¡tg mz Rate m'1 un¡t Pr¡ce Gross Salos 2 bed private 48 3,360.00 t1,875.00 Ê1 31,250 6,300,000 3 bed private 132 1 1,088.00 1't,875.00 e1 57,500 20,790,000 4 bed pr¡vate '160 '19,360.00 f1,875.00 2226,875 36,300,000 2 bed afforable 32 2,240.00 11,875.00 Ê1 31,250 4,200,000 3 bed affordable & 2.352.00 e1,875.00 Ê'157,500 4.410.000 Totals 400 38,400.00 72,000,000

NET REALISATION 72,000,000

OUTLAY

ACQUtStTtON COSTS Residualised Pr¡c6 10,333,01 I Stamp Duty 4.OOo/o 413,321 Agênt Fee 1.00% 103,330 Legal Fêe 0.750/0 77,498 10,927,167 CONSTRUCTION COSTS Construct¡on m'¿ Rate m'z Cost 2 bed privatê 3,360.00 Ê814.00 2,735,040 3 bed prìval€ 1 1,088.00 Ê814.00 9,025,632 4 bed pr¡vats 19,360.00 Ê8'14.00 15,759,040 2 bêd âfforâble 2,240.OO Ê8'14.00 1,823,360 3 bed affordable 2,352.OO Ê814,00 1,914,528 Tolâls 38.400.00 31.257.600 31,257,600

Conl¡ngency 5.000/o 1,562,880 Abnormals 5.00% 1,375,986 Abnormâls Allowãnce 5.00% 186,894 3,1 25,760 Other Construct¡on Extsrnals 10.00% 2,751,971 NHBC 340.00 un 500.00 /un 170,000 EPC 340.00 un 500.00 /un 170,000 Externals 10.0070 373,789 NHBC 60.00 un 500.00 /un 30,000 EPC 60.00 un 500.00 /un 30,000 3,s25,760

PROFESSIONAL FEES olhêr Profêssionals 10.000/. 2,751,971 Other Profêssionals 10,00% 373,789 3,125,760 DISPOSAL FEES Salss Ag€nt Fee 3.50% 2,520,000 Sales Legal Fee 400.00 un 600.00 /un 240,000 2,760,000 FINANCE Debit Rats 6.50% Credit Rate 1.50% (Nominal) Total Financs Cost 2,877,953

TOTAL COSTS 57,600,000

PROFIT 14,400,000

Perlormance Maasureg Profit on Cost% 25.00% Prof¡t on GDV% 20.00% Prof¡t on NDV% 20.00%

IRR 24.780/o

Prof¡t Erosion (finance rate 6.500%) 3 yrs 6 mths

File; HTPROJECTS (Shared^2014 SLR VIABILITY AND CIL VIABILIT\ISLR SITES - 2015 UPDATE\HAZLERIGG NO AFFORDABLE-IVIARCH-1s.wctx ARGUS Dsveloper Version: 5.00.001 Dale:1411012015

197 P04 APPRAISAL SUMMARY LICENSED COPY THROCKLEY

Summary Appraisal for Morged Phaso8 1 2

REVENUE Salos Valuat¡on Unit6 m2 Rate m'. un¡t Pr¡co Gross Salsg Adjustmont Nêt Salês 2 bed private 94 6,580.00 Ê1,875.00 Ê131,250 12,337,500 0 12,337,500

3 bed private 209 1 7,55ô.00 Ê1,875.00 Ê157,500 32,91 7,500 0 32,917,500 4 bed private 165 1s,965.00 Ê1,875.00 î226,875 37,434,37s 0 37,434,375 2 bêd afforable 43 3,010.00 Ê1,875.00 f131,250 5,643,750 (2,328,047',) 3,3'l s,703 3 bed affordable 39. 3zzgJg Ê1,875.00 Ê157,500 6.142.500 l¿É!ë1) 3.608.71 I Tolals 550 50,387.00 94,475,625 (4,86r,828) 89,613,797

NET REALISATION 89,613,797

OUTLAY

ACQUtStTl0N COSTS Residualisod Pr¡c6 't'1,'109,050 Slâmp Duty 4.000/0 473,702 Agent Fee 1.00% 118,42s Legal Fe6 o.750/o 88,819 1 1,789,996 CONSTRUCTION COSTS Conalruction m2 Rale m' Coat 2 bed private 6,580.00 q8r4.00 5,356,120 3 bed private 17,556.00 Ê814.00 14,290,584 4 bed privato 't9,96s.00 Ê814.00 16,251,510 2 bed afforablê 3,010.00 Ê814.00 2,4s0,140 3 bed âffordable 3,276.00 Ê814.00 2,666,664 Totals 59@99. 1j-sþ.919 41,0r 5,018

Cont¡ngency 5.00% 2,050,751 Abnormâls 5.00% 1,794,911 Abnormals Allowance 5.00% 255,840 4,1 01,502 Other Construction Externals 10.00% 3,589,821 NHBC 468.00 un 500.00 /un 234,000 EPC 468.00 un 500.00 /un 234,000 Externals '10.00% 511,680 NHBC 82.00 un 500.00 /un 41,000 EPC 82.00 un 500.00 /un 4'1,000 4,65't,s02

PROFESSIONAL FEES Olher Prof6ssionals 10.00"/o 3,589,821 Olh€r Profess¡onals 10.00% 51 1,680 4,101,502 DISPOSAL FEES Sales Agent Fse 3.50% 3,136,483 Salês Legal F6e 550.00 un 600.00 /un 330,000 3,466,483 FINANCE Dêb¡t Rate 6.50% Crsd¡t Rate 1.50% (Nom¡nal) Total F¡nance Cost 3,506,858

TOTAL COSTS 72,632,860

PROFIT 16,980,937

Psrformance MoaBures Prof¡t on Cost% 23.38% Prof¡t on GDV% 18.95% Prof¡t on NDV% '18.95%

IRR 24.94ô/.

Prof¡t Erosion (fnancs rato 6.500%) 3 yrs 3 mths

File: HIPROJECTS (Shared^2014 SLR VIABILITY AND CIL VIABILITìISLR SITES - 2015 UPDATE\THROCKLEY - AFFORDABLE-MARCHI 5.wcfx ARGUS Devslopêr Vêrs¡on: 5.00.001 Datei 141'1012015

198 P04 APPRAISAL SUMMARY LICENSED COPY THROCKLEY

Summary Appra¡sal for Morgsd Phases 1 2

REVENUE Sales Valuation Un¡18 m'z Rato m" Unit Price Gross Saloa 2 bed pr¡vatê 94 6,580.00 c1,875.00 e131,250 't2,337,s00 3 b€d private 209 '17,556.00 e1,875.00 Ê157,s00 32,917,500 4 bed private 165 '19,965.00 e1,87s.00 î226,875 37,434,375 2 bed afforable 43 3,010.00 r1,875.00 î.131,250 5,643,750 3 bêd affordable !g E?29.09. e1,875.00 Ê157,500 6.142.500 Total8 550 50,3ô7.00 94,475,625

NET REALISATION 94,475,625

OUTLAY

ACOUtStTtON COSTS Rês¡dualised Pr¡ce 13,5'10,145 Stamp Duty 4.000/0 540,406 Agsnt Fee 1.000/0 135,'10'1 Lôgal Fee 0.75% 101,326 14,286,978 CONSTRUGTION COSTS Construct¡on m? Rato m'. Cost 2 bed private 6,s80.00 f814.00 5,356,120 3 bed pr¡vat€ 17,556.00 Ê814.00 14,290,584 4 bed private 19,965.00 f814.00 16,251,510 2 bed afforablê 3,0'10.00 t8'14.00 2,450,140 3 bed affordable 3,276.00 Ê814.00 2,666,664 Totals .99@99. 41.015.018 4l,01 5,018

Contingency 5.000/o 2,050,751 Abnormals 5.00% 1,794,911 Abnormals Allowance 5.00% 255,840 4,1 01,502 Othor Construct¡on

Externals 't0.00% 3,589,82 1 NHBC 468.00 un 500.00 /un 234,000 EPC 468.00 un 500.00 /un 234,OOO Externals 10.00% 51 1,680 NHBC 82.00 un 500.00 /un 41,000 EPC 82.00 un 500.00 /un 41,000 4,651,502

PROFESSIONAL FEES Other Profsss¡onâls '10.00% 3,589,821 Other Professionals 10.00% 5'11,680 4,1 01,502 DISPOSAL FEES Sales Agent Fêe 3.50% 3,306,647 Sales Lsgal Fee 550.00 un 600.00 /un 330,000 3,636,647 FINANCE Debit Rate 6.50% Crêd¡t Râte 1.50ol" (Nominal) Total F¡nance Cost 3,787,352

TOTAL COSTS 75,580,500

PROFIT 18,895,125

Porlormance Meaaursa Profit on Cost% 25.00% Profit on GDV0/. 20.00% Prof¡t on NDV% 20.000/0

IRR 2s.320/0

Profit Erosion (flnancs rat€ 6.500%) 3 yrs 6 mths

File; HiPROJECTS (SharodI2o14 SLR VIABILITY AND CIL VIABILIT\ISLR SITES - 2015 UPDATE\THROCKLEY - NO AFFORDABLE-MARCH-ls.wcfx ARGUS Devêloper Version: 5.00.001 Oatei 14110120'15

199 P04 APPRAISAL SUMMARY LICENSED COPY NEWBURN RIVERSIDE 5OO UNITS. MARCH 2015

Suñmary Appra¡sal for Morged Phasos I 2

REVENUE Sal€6 Valuation Unitg ma Ratå m'? Un¡t Price Gross Salss Ad¡ustmont Not Sales 2 bed pr¡vatê 86 6,020.00 Ê1,875.00 8131,250 f ,2a7,500 0 I 1,287,s00 3 bsd pr¡vate 190 1s,960.00 Ê1,875.00 Ê1 57,500 29,925,000 0 29,925,000 4 bed pr¡vatê 150 1 8,1 50.00 Ê1,875.00 î226,875 34,031,250 0 34,03'1,250 2 bed afforable 39 2,730.00 e1,875.00 Ê131,250 5,1 1 8,750 (2,111,484J 3,007,266 3 bêd affordable Þ 2@@. Ê1,875.00 Ê157,500 5.512.500 12.273.906\ 3,239.Þ91. Tolals 500 45,800.00 85,875,000 (4,385,391) 8r,489,009

NET REALISATION 8't,489,609

OUTLAY

ACQUtStflON COSTS Residualissd Prics 10,214,145 Stamp Duty 4.000/0 433,212 Agent Fee 1.000/0 108,303 Legal Fee 0.75% 81,227 10,836,887 CONSTRUCTION COSTS Construclion m2 Rats m'a Cost 2 bed pr¡vate 6,020.00 f814.00 4,900,280 3 bêd pr¡vate 15,960.00 â814.00 12,991,440

4 bêd private 1 8,1 50.00 î814.00 14,774,100 2 b€d afforable 2,730.O0 î814.OO 2,222,220 3 bed affordable 2,940.00 f814.00 2,393,160 Totâls $.c9s9g 37.281.200 37,281,200

Contingsncy 5.00% 1,864,060 Abnormals 5.00% '1,633,291 Abnormals Allowancs 5.00% 230,769 3,728,120 Olher Conatruction Externals '10.00% 3,266,582 NHBC 426.00 un 500.00 /un 21 3,000 ÊPC 426.00 un 500.00 /un 21 3,000 Externâls 10.00% 461,538 NHBC 74.00 un 500.00 /un 37,000 EPC 74.00 un 500.00 /un 37,000 4,228,120

PROFESSIONAL FEES Olher Professionals 10.00% 3,266,582 Othgr Professionals 10.00% 46'1,s38 3,728,120 DISPOSAL FEES Sales Agent Fee 3.50% 2,852J36 Salês Lsgal Fse 500.00 un 600.00 /un 300,000 3,1 52,1 36 FINANCE Dêb¡t Rate 6.50% Credit Rate 1.50% (Nom¡nal) Total Finance Cost 3,077,143

TOTAL COSTS 66,031,727

PROFIT 15,457,882

Prof¡t on Cost% 23.410/0 Profit on GDVo/o 18.970/o Prof¡t on NDV% 18.970/o

IRR 22.82./.

Prof¡t Erosion (finance rate 6.500%) 3 yrs 3 mlhs

Filo: HIPROJECTS (Sharod)2014 SLR VIABILITY AND CIL VIABILIT\ISLR SITES - 2015 UPDATE\NEWBURN- AFFORDABLE-|\4ARCH-'15-500 units.wcfx ARGUS Dovelopêr Version; 5.00.001 Dale:1411012015

200 P04 APPRAISAL SUMMARY LICENSED COPY NEWBURN RIVERSIDE 5OO UNITS. MARCH 2OI5

Sümmary Appral8al for Morged Phasos I 2

REVENUE Salos Valuation Un¡tg m' Rate m' Unit Price Gross Sales 2 b€d private 86 6,020.00 Ê1,87s.00 e13'1,250 11 ,287,500 3 b€d pr¡vate 190 15,960.00 e1,875.00 Ê157,500 29,925,000

4 bed private '150 1 8,1 50.00 Ê'1,87s.00 1226,875 34,031,250 2 bed afforable 39 2,730.00 e1,875.00 Ê131,250 5,1 18,750 3 bed affordable ë ¿@s9. Ê1,875.00 t157,500 5é12ë9 Totals 500 45,800.00 85,875,000

NET REALISATION 8s,875,000

OUTLAY

ACQUISITION GOSTS Rês¡dualisêd Pricê 12,342,828 Stamp Duty 4.OO./. 493,713 Agent Fss 1.O00/o 123,428 Legal Fee 0.75V" 92,571 13,052,540 CONSTRUCTION COSTS Conslruct¡on m'? Râte m' Cost 2 bsd private 6,020.00 Ê814.00 4,900,280 3 b€d pr¡vate 15,960.00 8814.00 12,591,440 4 bêd pr¡vate 1 8,150.00 î814.OO 14,774,100 2 bsd afforable 2,730.00 28't4.OO 2,222,220 3 b€d affordable 2,940.00 Ê8'14.00 2,393,160 Totâls 45.800.00 37.281.200 37,281,200

Cont¡ngency 5.00% I,864,060 Abnormals 5.00% 1,633,291 Abnormals Allowance 5.00% 230,769 3,72A,120 Othor Conslruct¡on Extsrnals '10.00% 3,266,582 NHBC 426.00 un 500.00 /un 213,000 EPC 426.00 un 500.00 /un 213,000 Externals 10.000/0 461,538 NHBC 74.00 un 500.00 /un 37,000 EPC 74.00 un 500.00 /un 37,000 4,228,120

PROFESSIONAL FEES Other Professionals 10.00% 3,266,582 Other Professionals 'to.o1o/o 461,538 3,728,120 DISPOSAL FEES Salss Agent Fee 3.50% 3,005,625 Sales Legal Fee 500.00 un 600.00 /un 300,000 3,305,625 FINANCE Deb¡t Rate 6.50% Crsdit Rato 1.50% (Nom¡nal) lotal F¡nancs Cost 3,376,270

TOTAL COSTS 68,699,995

PROFIT l?,1 75,005

Partormânce MeasuÍ€s Profit on Cost% 25.00% Profit on GDV% 20.000/0 Prof¡t on NDV% 20.00%

IRR 22.930/0

Profil Erosion (f¡nânce rale 6.500o/o) 3 yrs 6 mths

File: HIPROJECTS (Shared)\2014 SLR VIABILITY AND CIL VIABILIT\ISLR SITES - 2015 UPDATE\NEWBURN NO AFFORDABLE-MARCH-15-500 un¡ts.wcfx ARGUS Dsvslopsr Vers¡on; 5.00.00'1 Dalat '1411012015

201 P04 APPRAISAL SUMMARY LICENSED GENERIC I UNITS LOW

Summary Appmisal for Phase I Phase f Prlvatå

REVENUE Sales valuatlon Unlts m'¡ Ratê m'¡ Unit Pr¡ce Gross Salos 3 bed private 1 84.00 Êt,450.00 Ê12'l,800 12 1,800

NET REALISATION 121,800

OUTLAY

ACQUtStTtON COSTS Residualis€d Pr¡ce (14,874) (14,874) CONSTRUCTION COSTS Construction m¡ Rate m2 Cost 3 bed private 84.00 €1,041.00 87,444 87,444

Contingency 5.00% 4,372 Abnormals 5.00% 4,372 8,744 Othor Construct¡on NHBC 1.00 un 500.00 /un 500 EPC 1.00 un 500.00 /un 500 I,000

PROFESSIONAL FEES Other Professionals 10.00% 8,744 8,744 DISPOSAL FEES Sales Agent Fee 3.50% 4,263 Salês Legal F€e 1.00 un 600.00 /un 600 4,863 FINANCE Timescalo Duratlon Commences Construction I Jun 2013 Total Durat¡on 12

Debit Rate 6.50% Credit Rate 1.50% (Nominal) Total Finance Cost 1,518

TOTAL COSTS 97,440

PROFIT 24,360

Performãnce Measurås Proft on Costo/o 2s.o00/o Profìt on GDVo/. 20.O06/o Profìt on NDV% 20.O06/o

IRR 106.36%

Profit Erosion (f¡nance rate 6.500%) 3 yrs 6 mths

File: HIPROJECTS (Shared)U014 SLR VIABILITYAND CIL VIABILIT\IClL - GENERIC RESI SITES - 2014 -AMENDED 25-2-15\GENERIC - LOW - I UNITS -AFFORDABLE.wcfx ARGUS Developer Version: 5.00.001 Date: 03/03/2015

202 P04 APPRAISAL SUMMARY LICENSED COPY GENERIC I5 UNITS LOW AFFORDABLE

Summary Appra¡sal for Molged Phases I 2

REVENUE Sales Valuat¡on Un¡ts m, Rale m, Un¡t Pr¡ce Gross Sales Ad¡uslmênt Nêt Sales 2 bed private 350.00 Ê1,450.00 Ê101,500 507,500 0 507,500 3 bed private I 672.00 Ê1,450.00 €121,800 974,400 0 974,400 2 bed afforable I 70.00 â1,450.00 Ê101,500 101,500 (41,86e) 59,631 3 bed affordable ! 84.00 €1,450.00 Ê121,800 l¿!.9s9. 15!¿13.) 71.558 Totals l5 r,176.00 1,705,200 (92,r r1) r,613,089

NET REALISATION 1,613,089

OUTLAY

ACQUTStTtON COSTS Res¡dualised Pr¡ce 61,650 Stamp Duty 4.00% 3,824 Agent Fee 1.00% 956 Legal Fee 0.75% 67,14A coNstRUcTtoN cosrs Construction m2 Rate m' Cost 2 b€d pr¡vate 350.00 9764.00 267,400 3 bed private 672.O0 Ê764.00 513,408 2 bed afforable 70.00 Ê764.00 53,480 3 bed affordable 84.00 Ê764.00 64,176 Totals 1L@9q !9gtgL 898,¿164

Contingency 5.000/o 44,923 Abnormals 5.00% 39,040 Abnorma¡s Allowance 5.00% 5,883 89,846 Other Construction Externals 10.00% 51,341 NHBC 13.00 un 500.00 /un 6,500 EPC 13.00 un 500.00 /un 6,500 Externals 10.00% 6,418 NHBC 2.00 un 500.00 /un 1,000 EPC 2.00 un 500.00 /un 1,000 72,758

PROFESSIONAL FEES Other Professionals 10.00% 78,081 Other Profess¡onals '10.000/. 1 1.766 89,846 DISPOSAL FEES Sales Agent Fee 3.50% 56,458 Sales Legal F€e 15.00 un 600.00 /un 9,000 65,458 FINANCE Deb¡t Rate 6.50% Credit Rate 1.50o/o (Nominal) Total Finance Cost 24,964

TOTAL COSTS 1,308,¿185

PROFIT 304,604

Performance Mêasures Prof¡t on Cost% 23.280/0 Profit on cDV% 18.88% Prolìt on NDVo/. 18.88%

IRR 61.78./.

Profìt Erosion (f¡nance rate 6.500%) 3 yrs 3 mths

File: HIPROJECTS (Shared)\2014 SLR VIABILITY AND CIL VIABILIT\lClL - GENERIC RESI SITES - 2014 - AMENDED 25-2-15\GENERIC - LOW - 15 UNITS - AFFORDABLE.wcfx ARGUS Developer Version: 5.00.001 Date:03/03/2015

203 P04 APPRAISAL SUMMARY LICENSED COPY GENERIC I5 UNITS LOW NO AFFORDABLE

Summary Appra¡sal for Mergod Phases I 2

REVENUE SaleÊ Vaiuatlon unlts m2 Rato m' Unit Pr¡ce Gross Sales 2 bed private 350.00 Ê1,450.00 !1 0l,500 507,500 3 bed private I 672.00 Ê1,450.00 Ê121,800 974,400 ,| 2 bød aÍÍonble 70.00 Ê1,450.00 Ê101,500 1 01,500 3 bed affordable ! 4Sq Â1,450.00 Ê1 21,800 l¿1é99. Tolâls 15 I,176.00 1,705,200

NET REALISATION 1,705,200

OUTLAY

ACQUTSTTTON COSTS Res¡dualised Price 138,427 Stamp Duty 4.00% 5,537 Agent Fee 1.OO% 1,384 Legal Fee o.75% I,038 146,386 coNsTRucltoN cosTs Constructlon m'¡ Rato m'¡ Cost 2 bed pr¡vate 350.00 Ê764.00 267,400 3 bed pr¡vate 672.O0 Ê764.00 513,408 2 bed afforable 70.00 Ê764.00 53,480 3 bed affordâble 84.00 Ê764.00 64,'t76 Totåls !.GSq .99&19L 898,464

Contingency 5.00% 44,923 Abnormals 5.00% 39,040 Abnormals Allowanæ 5.00% s,883 89,846 Other Construction Externals 10.00% 51,341 NHEC 13.00 un 500.00 /un 6,500 EPC 13.00 un 500.00 /un 6,500 Externals 't0.00% 6,418 NHBC 2.00 un 500.00 /un 1,000 EPC 2.00 un 500.00 /un 1,000 72,758

PROFESSIONAL FEES Other Professionals 10.00% 78,081 Other Professionals 10.000/o 11,766 89,846 DISPOSAL FEES Sales Agênt Fee 3.50% 59,682 Sales Legal Fee 15.00 un 600.00 /un 9,000 68,682 FINANCE Debit Rate 6.50% Cred¡t Rate 1.50% (Nominal) Total Finanæ Cost 29,334

TOTAL COSTS I,395,318

PROFIT 309,882

Prolìt on Costo/. 22.2'to/o Profit on GDV% 18.170/o Profit on NDVo¿ 18.17o/o

IRR 55.290/0

Profìt Erosion (f¡nance rate 6.500%) 3 yrs I mth

File: HIPROJECTS (SharedI2014 SLR VIABILITY AND CIL VIABILIT\IClL - GENERIC RESI SITES - 2014 - AMENDED 25-2¡ 5\GENERIC - LOW - 15 UNITS NO AFFORDABLE.wcfx ARGUS Develop€r Version: 5.00.00'l Date:03/03/2015

204 P04 APPRAISAL SUMMARY LICENSED COPY GENERIC 50 UNITS LOW AFFORDABLE

Summary Appralsal for Morgêd Phasês I 2

REVENUE Sales Valuatlon Un¡ts m2 Rato m2 Unit Price Gross Salês Ad¡ustmênt Nat Salos 2 bed pr¡vate 16 'I,120.00 Êt,450.00 Ê101,500 '1,624,000 0 1,624,000 3 bed private 24 2,016.00 € t,450.00 Ê121,800 2,923,200 0 2,923,200 4 bed pr¡vate 3 363.00 Ê1,450.00 Ê175,450 526,350 0 526,350 2 bed afforable 4 280.00 Ê1,450.00 Ê101,500 406,000 (167,475) 238,525 3 bed affordable 252.00 e1,450.00 Ê121,800 .c$glsg. í5!.z3C) 21!&. Totals 5õ 4,031.00 5,844,950 (3r8,203) 5,526,748

NET REALISATION 5,526,748

OUTLAY

ACOUtStTtON COSTS Residualised Pr¡ce 134,983 Stamp Duty 4.O0o/o 10,680 Ag€nt Feo 1.O0ô/. 2,670 Legal Fee O.75o/o 2,O02 150,336 CONSTRUCTION COSTS Constructlon m2 Rate m2 Cost 2 bed private 1,',t20.00 Ê764.00 855,680 3 bed private 2,016.00 î764.00 1,540,224 4 bed pr¡vate 363.00 Ê764.00 277,332 2 bed afforable 280.00 Ê764.00 213,920 3 bed affordable 252.OO €764.00 't92,528 Totals 1@9q 3.079.684 3,079,684

Contingency 5.00% 153,984 Abnormals 5.00% 133,662 Abnormals Allowance 5.00% 20,322 307,968 Other Con6truct¡on Externals 1O.01o/o 267,324 NHBC 43.00 un 500.00 /un 21,500 EPC 43.00 un 500.00 /un 21,500 Externâls 10.00% 40,645 NHBC 7.00 un 500.00 /un 3,500 EPC 7.00 un 500.00 /un 3,500 357,968

PROFESSIONAL FEES Other Professionals 10.00% 267,324 Other Profêssionals 10.000/0 40,645 307,968 DISPOSAL FEES Sales Agent Fee 3.50% 193,436 Sales Legal Fee 50.00 un 600.00 /un 30,000 223,436 FINANCE Deb¡t Rate 6.50o/o Credit Rat6 1.50% (Nom¡nal) Total Finance Cost 53,225

TOTAL COSTS 4,480,586

PROFIT 1,046,162

Profìt on Cost% 23.350/0 Profit on GDV% 18.93% Prof¡t on NDV% 18.930/"

IRR 64.420

Profìt Erosion (fìnance rate 6.500%) 3 yrs 3 mths

File; HIPROJECTS (Shared)U014 SLR VIABILITY AND CIL V|ABlLlTllClL - GENERIC RESI SITES - 2014 - AMENDED 25-2-15\GENERIC - LOW - 50 UNITS - AFFORDABLE.wcfx ARGUS Developer Version: 5.00.001 Date: 03/03/2015

205 P04 APPRAISAL SUMMARY LICENSED COPY GENERIC 50 UNITS LOW NO AFFORDABLE

Summary Appnisal for Mergod Phases I 2

REVENUE Salês Valuat¡on Un¡ts m2 Rate m? lJn¡t Pr¡cê Gross Sales 2 bed private 16 1,1 20.00 Ê1,450.00 Ê101,500 'I,624,000 3 bed private 24 2,016.00 Ê1,450.00 î.12't,800 2,923,200 4 bed pr¡vate 3 363.00 Ê1,450.00 Ê175,450 526,350 2 bed afforable 4 280.00 €1,450.00 Ê101,500 406,000 3 bed affordable 3 2n.o0, 11,450.00 Ê121,800 365.400 Totals 50 4,03f,00 5,8¿14,950

NET REALISATION 5,8¿14,950

OUTLAY

ACQUTSTflON COSTS Residualised Price 306,944 Stamp Duty 4.O0o/o 12,278 Agent Fee 1.O0o/o 3,069 L€gal Fee o.750/o 2,302 324,594 CONSTRUCTION COSTS Construct¡on m2 Rate m' Cost 2 bed pr¡vate 1,120.00 Ê764.00 855,680 3 bed pr¡vâte 2,016.00 E764.OO 't,540,224 4 bed privale 363.00 Ê764.00 277,332 2 bed aforable 280.00 Ê764.00 2'13,920 3 bed affordable 252.00 e764.00 192,52A Totals 1g!.9q .gpz9É9L 3,079,684

Cont¡ngency 5.00% 153,984 Abnormals s.000/o 133,662 Abnormals Allowance 5.000/ô 20322 307,968 Other Construction Externâls 10.o0% 267,324 NHBC 43.00 un 500.00 /un 2t,500 EPC 43.00 un 500.00 /un 21,500 Externals 10.00o/o 40,645 NHBC 7.00 un 500.00 /un 3,500 EPC 7.00 un 500.00 /un 3,500 357,968

PROFESSIONAL FEES Other Professionals 10.00% 267,324 Other Professionãls 10.000/. 40,645 307,968 DISPOSAL FEES Sales Agent Fee 3.50% 204,573 Sales Legal Fee 50.00 un 600.00 /un 30,000 234,573 FINANCE Dêbit Rate 6.50% Cred¡t Rate '1.50% (Nominal) Total Financê Cost 63,204

TOTAL COSTS 4,675,960

PROFIT I,168,990

Prol¡t on Cost% 25.000/0 Prof¡t on GDV% 20.OOo/o Prof¡t on NDV% 20.00./.

IRR 62.200/a

Prolìt Erosion (f¡nanæ rate 6.500%) 3 yrs 6 mths

File: HiPROJECTS (SharedI20 l4 SLR VIABILITY AND CIL VIABILITYICIL - GENERIC RESI SITES - 2014 - AMENDED 2$2-1s\GENERIC - LOW - 50 UNITS - NO AFFORDABLE.wcfx ARGUS Developer Version: 5.00.001 Date: 03/03/2015

206 P04 APPRAISAL SUMMARY LICENSED COPY GENERIC IOO UNITS LOW AFFORDABLE

Summary Appraisal for M€rgod Phases 1 2

REVENUE Sales Valuat¡on Unlts m2 Rate m'z Unlt Pdce Gross Sales AdJustmont Net Salês 2 bed pr¡vate 20 1,400.00 Ê1,450.00 â101,500 2,030,000 0 2,030,000 3 bed pr¡vate 50 4,200.00 Ê1,450.00 â121,800 6,090,000 0 6,090,000 4 bed pr¡vate 15 1,815.00 gt,450.00 î.175,450 2,631,750 0 2,631,750 2 bed afforâble l0 700.00 Ê1,450.00 Ê101,500 1,015,000 (41 8,688) 596,313 3 bed affordãble 5. @sq Ê1,450.00 €121,800 g99JS!. !Æ1Æ) 33].ZCe. Totals t00 8,535,00 12,375,750 (669,900) r1,705,8s0

NET REALISATION I 1,705,850

OUTLAY

ACQUtStTtON COSTS Residuâlised Pr¡cê 100,933 Stamp Þuty 4.00o/o 15,745 Agent Fse 1.00% 3,936 Legal Fes 0.7syo 2,952 't23,567 CONSTRUCTION COSTS Construction m' Rate m' Cost 2 bed pr¡vate 1,400.00 Ê764.00 1,069,600 3 bed private 4,200.00 Ê764.00 3,208,800 4 bed pr¡vate 1,815.00 Ê764.00 '1,386,660 2 b€d afforable 700.00 Ê764.00 534,800 3 bêd âffordâblê 420.00 Ê764.00 320,880 Totãls 8,535.00 gþ29Æ. 6,520,740

Contingency 5.00% 326,037 Abnormals 5.000/o 283,253 Abnomals Allowance 5.000/" 42,784 652,O74 Othêr Conslructlon Externals '10.00% 566,506 NHBC 85.00 un 500.00 /un 42,500 EPC 85.00 un 500.00 /un 42,500 Extema¡s 10.00% 85,568 NHBC 15.00 un 500.00 /un 7,500 EPC 15.00 un 500.00 /un 7,500 752,074

PROFESSIONAL FEES Other Professionals 10.00% 566,506 Other Professionals 10.000/. 85,568 652,O74 DISPOSAL FEES Sales Ag6nt Fee 3.50% 409,705 Sales L€gal Fee 100.00 un 600.00 /un 60,000 469,705 FINANCE Debit Rate 6.50% Cred¡t Rale 1.50% (Nominal) Total Finâncê Cost 315,193

TOTAL COSTS 9,485,427

PROFIT 2,220,423

Performance Measurss Profit on Cost% 23.410/o Profit on GDV% 18.970/. Prof¡t on NDV% 18.970/.

IRR 32.150/o

Prof¡t Erosion (finance rate 6.500%) 3 yrs 3 mths

File: HIPROJECTS (Shared)\2014 SLR VIABILITY AND CIL VlABlLlmClL - cENERIC RESI SITES - 2014 - Al\,IENDED 25-2-15\GENERIC - LOW - 100 UNITS - AFFORDABLE.wcfx ARGUS Developêr Version: 5.00.001 Date: 03/03/2015

207 P04 APPRAISAL SUMMARY LICENSED COPY GENERIC IOO UNITS LOW NO AFFORDABLE

Summary Appmlsal for Mergsd Phasos I 2

REVENUE Salea Valuat¡on Un¡ts m2 Ratè m' Un¡t Pr¡ce Gross Sales 2 bed private 20 1,400.00 e1,450.00 Ê101,500 2,030,000 3 bed private 50 4,200.00 Ê1,450.00 Ê121,800 6,090,000 4 bed private 15 'I,815.00 Ê1,450.00 Ê175,450 2,631,750 2 bed afforable 10 700.00 Ê1,450.00 Ê101,500 1,015,000 3 bed affordable 5. 4Sq Ê'1,450.00 Ê121,800 609.000 Totals 100 8,535,00 12,s75,750

NET REALISATION 12,375,750

OUTLAY

ACQUTSTTTON COSTS Res¡dual¡s€d Pr¡ce 450,183 Stamp Duty 4.00% '18,007 Agênt Fee 't.00% 4,502 L€gal Fee 0.75% 3,376 476,06S CONSTRUCTION COSTS Construction m2 Rats m'? Cost 2 b€d private 1,400.00 r764.00 1,069,600 3 bed private 4,200.00 Ê764.00 3,208,800 4 bed private I,815.00 Ê764.00 1,386,660 2 bed atforable 700.00 €764.00 534,800 3 bed affordable 420.00 Ê764.00 320,880 Totals g@sq s,s29Æ. 6,520,740

Contingency 5.00./o 326,037 Abnormals 5.00% 283,253 Abnormals Allowance 5.00% 42,784 652,074 Othêr Conatruct¡on Externals '10.00% 566,506 NHBC 85.00 un 500.00 /un 42,500 EPC 85.00 un 500.00 /un 42,500 Ext€rnals 10.oo% 85,568 NHBC 15.00 un 500.00 /un 7,500 EPC 15.00 un 500.00 /un 7,500 752,074

PROFESSIONAL FEES Other Professionals 10.00% 566,506 Other Professionals 10.00% 85,568 652,074 DISPOSAL FEES Sales Ag6nt Fee 3.50% 433,151 Sales Legal Fee '100.00 un 600.00 /un 60,000 493,151 FINANCE Debit Rate 6.500/0 Credit Rate 1.50% (Nom¡nal) Total F¡nancê Cost 354,418

TOTAL COSTS 9,900,600

PROFIT 2,475,150

Pêrformancå Moasuros Profit on Cost% 25.000/. Prof¡t on GDV% 20.00yo Profit on NDV% 20.oÛyo

IRR 31.77%

Prof¡t Erosion (l¡nance rate 6.500%) 3 yrs 6 mths

F¡le: HIPROJECTS (SHAREÞ[2014 SLR VIABILITY AND CIL VIABILIT\IC|L - GENERIC RESI S¡TES - 2014 - Al\4ENDED 25-2¡s\GENERIC - LOW - 100 UNITS - NO AFFORDABLE.WCFX ARGUS Developer Vers¡on: 5.00.001 Date:03/03/2015

208 P04 APPRAISAL SUMMARY LICENSED COPY GENERIC I UNITS LOW.MID

Summary Appraisal for Phase 1 Phase 1 Private

REVENUE Sales Valuation Units m' Rate m2 Unit Price Gross Sales 3 bed private 1 84.00 Ê1,650.00 Ê138,600 138,600

NET REALISATION 138,600

OUTLAY

ACQUTSTTTON COSTS Residualised Price (7,045) (7,045) coNsTRucTroN cosTs Construction m2 Rate m2 Gost 3 bed private 84.00 Ê1,087.00 91,308 91,308

Contingency 5.00% 4,565 Abnormals 5.00% 4,565 9,131 Other Construction NHBC 1.00 un 500.00 /un 500 EPC 1.00 un 500.00 /un 500 1,000

PROFESSIONAL FEES Other Professionals 10.00% 9,131 9,131 DISPOSAL FEES Sales Agent Fee 3.50% 4,851 Sales Legal Fee 1.00 un 600.00 /un 600 5,451 FINANCE Debit Rate 6.50% Credit Rate 1.50% (Nominal) Total Finance Cost 1,905

TOTAL COSTS 110,880

PROFIT 27,720

Performance Measures Profit on Cost% 25.00% Profit on GDV% 2Q.90o/o Profit on NDV% 20.00o/o

IRR 93.10%

Profit Erosion (finance rate 6.500%) 3 yrs 6 mths

File: HIPROJECTS (Shared|2O14 SLR VIABILITY AND CIL VIABILIT\ ClL - GENERIC RESI SITES - 2014 - AMENDED 25-2-15\GENERIC - MID ARGUS Developer Version: 5.00.001 Date: 19/10/2015

209 P04 APPRAISAL SUMMARY LICENSED CO GENERIC I5 UNITS LOW.MID AFFORDABLE

Summary Appraisal for Merged Phases I 2

REVENUE Sales Valuation Units m2 Rate m2 Unit Price Gross Sales Adjustment 2 bed private 5 350.00 Ê1,650.00 Ê1 15,500 577,500 0 3 bed private I 672.00 Ê1,650.00 Ê138,600 I ,108,800 0 2 bed afforable 1 70.00 Ê1,650.00 E1 15,500 1 15,500 (47,644) 3 bed affordable ! 84.00 f 1,650.00 Ê138,ô00 't38,600 (57,173) Totals 15 1,176.00 1,940,400 (104,816)

NET REALISATION 1,835,584

OUTLAY

ACQUTSTTTON COSTS Residualised Price 183,730 Stamp Duty 4.00o/o 8,269 Agent Fee 1.OOV' 2,067 Legal Fee 0.75o/o 1,550 195,617 coNsTRucTtoN cosTs Construction m2 Rate m2 Cost 2 bed private 350.00 Ê789.00 276,150 3 bed private 672.OO 8789.00 530,208 2 bed afforable 70.00 e789.00 55,230 3 bed affordable 84.00 e789.00 66,276 Totals 1 .1 76.00 927.864 927,864

Contingency 5.00% 46,393 Abnormals 5.00% 40,318 Abnormals Allowance 5.00% 6,075 92,786 Other Construction Externals 10.00% 53,021 NHBC 13.00 un 500.00 /un 6,500 EPC 13.00 un 500.00 /un 6,500 Externals r0.00% 6,628 NHBC 2.00 un 500.00 /un 1,000 EPC 2.00 un 500.00 /un 1,000 74,648

PROFESSIONAL FEES Other Professionals 10.00% 80,636 Other Professionals 10.00% 12,151 92,786 DISPOSAL FEES Sales Agent Fee 3.50% 64,245 Sales Legal Fee 15.00 un 600.00 /un 9,000 73,245 FINANCE Debit Rate 6.50% Credit Rate 1.50% (Nominal) Total Finance Cost 32,210

TOTAL COSTS 1,489,'157

PROFIT 346,427

Performance Measures Profit on Cost% 23.26% Profit on GDV% 18.87o/o Profit on NDVo/o 18.87%

IRR 56.220/0

Profit Erosion (finance rate 6.500%) 3 yrs 3 mths

File:H:\PROJECTS (Shared)\2o14 SLRVIABILITYAND CILVIABILIT\ ClL- cENERIC RESISITES -2014- AMENDED 25-2-1s\cENERtC - MtD ARGUS Developer Version: 5.00.001 Date: 19/10/2015

210 P04 APPRAISAL SUMMARY LICENSED COPY GENERIC 15 UNITS LOW.MID NO AFFORDABLE

Summary Appraisal for Merged Phases 1 2

REVENUE Sales Valuation Unlts m2 Rate m2 Unit Price Gross Sales 2 bed private 5 350.00 e 1,650.00 Ê'115,500 577,500 3 bed private 8 672.00 e 1,650.00 Ê138,600 1,108,800 2 bed afforable 1 70.00 Ê1,650.00 e 1 15,500 1 15,500 3 bed affordable L @ Ê1,650.00 Ê138,600 138.600 Totals 15 1,176.00 r,940,400

NET REALISATION 1,940,400

OUTLAY

ACQUTSTTTON COSTS Residualised Price 239,059 Stamp Duty 4.00Yo 9,562 Agent Fee 1.00% 2,391 Legal Fee 0.750/o 1,793 252,804 CONSTRUCTION COSTS Construction m2 Rate m2 Cost 2 bed private 350.00 f789.00 276,150 3 bed private 672.O0 Ê789.00 530,208 2 bed afforable 70.00 Ê789.00 55,230 3 bed affordable 84.00 Ê789.00 66,276 Totals 1 .1 76.00 927.864 927,864

Contingency 5.00% 46,393 Abnormals 5.00% 40,318 Abnormals Allowance 5.00% 6,075 92,786 Other Construction Externals 10.00% 53,021 NHBC 13.00 un 500.00 /un 6,500 EPC 13.00 un 500.00 /un 6,500 Externals 10.00% 6,628 NHBC 2.00 un 500.00 /un 1,000 EPC 2.00 un 500.00 /un 1,000 74,648

PROFESSIONAL FEES Other Professionals 10.00% 80,636 Other Professionals 10.00% 12,151 92,786 DISPOSAL FEES Sales Agent Fee 3.50% 67,914 Sales Legal Fee 15.00 un 600.00 /un 9,000 76,914 FINANCE Debit Rate 6.50% Credit Rate 1.50% (Nominal) Total Finance Cost 34,516

TOTAL COSTS 1,552,320

PROFIT 388,080

Performance Measures Profit on Cost% 25.00o/o Profit on GDV% 20.00o/o Profit on NDV% 20.00o/o

IRR 58.37o/o

Profit Erosion (finance rate 6.500%) 3 yrs 6 mths

File: HIPROJECTS (Shared)\2014 SLR VIABILITY AND CIL VIABILIT\ICIL - GENERIC RESI SITES - 2014 - AMENDED 25-2-1s\GENERIC - MID ARGUS Developer Version: 5.00.001 Date: 19/10/2015

211 P04 APPRAISAL SUMMARY LICENSED C GENERIC 50 UNITS LOW.MID AFFORDABLE

Summary Appraisal for Merged Phases I 2

REVENUE Sales Valuation Units m2 Rate m2 Unit Prlce Gross Sales 2 bed private 16 1,120.00 Ê1,650.00 Ê1 15,500 1,848,000 3 bed private 21 1,764.00 Ê1,650.00 Êr 38,600 2,910,600 4 bed private 6 726.00 Ê1,650.00 f 199,650 I ,197,900 2 bed afforable 4 280.00 Ê1,650.00 Ê1 15,500 462,000 3 bed affordable g 252.00 Ê1,650.00 Ê138,600 415,800 Totals 50 4,142.00 6,834,300

NET REALISATION 6,472,208

OUTLAY

ACQUTSTTTON COSTS Residualised Price 563,799 Stamp Duty 4.000/0 26,336 Agent Fee 1.000/o 6,584 Legal Fee 0.750/o 4,938 601,656 CONSTRUCTION COSTS Construction m" Rate m2 Cost 2 bed private 1,120.00 e789.00 883,680 3 bed private 1,764.00 Ê789.00 1,391,796 4 bed private 726.00 Ê789.00 572,814 2 bed afforable 280.00 Ê789.00 220,920 3 bed affordable 252.00 Ê789.00 198,828 Totals 4.142.00 3.268.038 3,268,038

Contingency 5.00% 163,402 Abnormals 5.00% 142,415 Abnormals Allowance 5.00% 20,987 326,804 Other Construction Externals 10.00% 284,829 NHBC 43.00 un 500.00 /un 21,500 EPC 43.00 un 500.00 /un 21,500 Externals 10.00% 41,975 NHBC 7.00 un 500.00 /un 3,500 EPC 7.00 un 500.00 /un 3,500 376,804

PROFESSIONAL FEES Other Professionals 10.00% 284,829 Other Professionals 10.00% 41,975 326,804 DISPOSAL FEES Sales Agent Fee 3.50% 226,527 Sales Legal Fee 50.00 un 600.00 /un 30,000 256,527 FINANCE Debit Rate 6.50% Credit Rate 1.50% (Nominal) Total Finance Cost 90,870

TOTAL COSTS 5,247,503

PROFIT '1,224,705

Performance Measures Proiit on Costo/o 2334% Profit on GDV% 18.92% Profit on NDV% 18.92%

IRR 51 .870/o

Profit Erosion (finance rate 6.500%) 3 yrs 3 mths

File: H:\PROJECTS (Shared)\2o14 SLR VIABILITY AND CIL VIABILIT\IC|L - GENERIC RESI SITES - 2014 - AMENDED 25-2-15\cENER|C - MtD ARGUS Developer Version: 5.00.001 Date: 19/10/2015

212 P04 APPRAISAL SUMMARY LICENSED GENERIC 50 UNITS LOW.MID NO AFFORDABLE

Summary Appraisal for Merged Phases I 2

REVENUE Sales Valuation Units m2 Rate m2 Unit Price Gross Sales 2 bed private 16 1,120.00 e 1,650.00 Ê1 15,500 1,848,000 3 bed private 21 1,764.00 Ê1,650.00 Ê138,600 2,910,600

4 bed private 6 726.00 Ê1,650.00 Ê199,650 1 ,1 97,900 2 bed afforable 4 280.00 Ê1,650.00 Ê115,500 462,000 3 bed affordable -g 252,00. Ê1,650.00 Ê138,600 415.800 Totals 50 4,142.00 6,834,300

NET REALISATION 6,834,300

OUTLAY

ACQUTSTTTON COSTS Residualised Price 754,485 Stamp Duty 4.00o/o 30,1 79 Agent Fee 1.00% 7,545 Legal Fee 0.75% 5,659 797,868 coNsTRucTroN cosTs Construction m2 Rate m2 Cost 2 bed private 1,120.00 [789.00 883,680 3 bed private 1,764.00 Ê789.00 1,391,796 4 bed private 726.00 Ê789.00 572,814 2 bed afforable 280.00 Ê789.00 220,920 3 bed affordable 252.00 Ê789.00 198,828 Totals 4j42.00 3.268.038 3,268,038

Contingency 5.00o/o 163,402 Abnormals 5.00% 142,415 Abnormals Allowance 5.00% 20,987 326,804 Other Construction Externals 10.00% 284,829 NHBC 43.00 un 500.00 /un 21,500 EPC 43.00 un 500.00 /un 21,500 Externals '10.00o/o 41,975 NHBC 7.00 un 500.00 /un 3,500 EPC 7.00 un 500.00 /un 3,500 376,804

PROFESSIONAL FEES Other Professionals 10.00% 284,829 Other Professionals 10.00% 41,975 326,804 DISPOSAL FEES Sales Agent Fee 3.50% 239,201 Sales Legal Fee 50.00 un 600.00 /un 30,000 269,201 FINANCE Debit Rate 6.50% Credit Rate 1.50% (Nominal) Total Finance Cost 101,922

TOTAL COSTS 5,467,440

PROFIT 1,366,860

Performance Measures Profit on Cost% 25.00% Profit on GDV% 20.00o/o Profit on NDV% 20.0Oo/.

IRR 51.83%

Profit Erosion (finance rate 6.500%) 3 yrs 6 mths

File: H:\PROJECTS (Shared)\2014 SLR VIABILITY AND CIL VIABILIT\IC|L - GENERIC RESI SITES - 2014 - AMENDED 25-2-15\cENERIC - MtD ARGUS Developer Version: 5.00.001 Date: 19/10/2015

213 P04 APPRAISAL SUMMARY LICENSED GENERIC IOO UNITS LOW.MID AFFORDABLE

Summary Appraisal for Merged Phases 1 2

REVENUE Sales Valuation Units m2 Rate m2 Unit Price Gross Sales 2 bed private 20 1,400.00 Ê1,650.00 e 1 15,500 2,310,000 3 bed private 50 4,200.00 81,650.00 Ê138,600 6,930,000 4 bed private 15 1,815.00 [1,650.00 [199,650 2,994,750 2 bed afforable 10 700.00 Ê1,650.00 Ê1 15,500 1,155,000 3 bed affordable g. 420.00 Ê1,650.00 Ê138,600 693.000 Totals 100 8,535.00 '14,082,750

NET REALISATION 13,320,450

OUTLAY

ACQUTSTTTON COSTS Residualised Price 909,1 18 Stamp Duty 4,00% 45,124 Agent Fee 1.00% 11,281 Legal Fee 0.75% 8,461 973,984 CONSTRUCTION COSTS Construction m2 Rate mz Cost 2 bed private 1,400.00 Ê789.00 1,104,600 3 bed private 4,200.00 Ê789.00 3,313,800 4 bed private I ,815.00 Ê789.00 1,432,035 2 bed afforable 700.00 Ê789.00 552,300 3 bed affordable 420.00 Ê789.00 331,380 Totals 8.535.00 6.734.115 6,734,115

Contingency 5.00% 336,706 Abnormals 5.00% 292,522 Abnormals Allowance 5.00% 44,184 673,412 Other Construction Externals 10.00% 585,044 NHBC 85.00 un 500.00 /un 42,500 EPC 85.00 un 500.00 /un 42,500 Externals 10.00% 88,368 NHBC 15.00 un 500.00 /un 7,500 EPC 15.00 un 500.00 /un 7,500 773,412

PROFESSIONAL FEES Other Professionals 10.00% 585,044 Other Professionals 10.00% 88,368 673,412 DISPOSAL FEES Sales Agent Fee 3.50% 466,216 Sales Legal Fee 100.00 un 600.00 /un 60,000 526,216 FINANCE Debit Rate 6.50% Credit Rate 1.50% (Nominal) Total Finance Cost 445,459

TOTAL COSTS 10,800,008

PROFIT 2,520,442

Performance Measures Profit on Cost% 23.34o/o Profit on GDV% 18.920/o Profit on NDV% 18.92%

IRR 28.02%

Profit Erosion (finance rate 6.500%) 3 yrs 3 mths

File: HIPROJECTS (Shared)\2o14 SLR VIABILITY AND CIL VIABILIT\lClL - GENERIC RESI SITES - 2014 - AMENDED 25-2-15\GENER|C - MtD ARGUS Developer Version: 5.00.001 Date: 19/10/2015

214 P04 APPRA¡SAL SUMMARY LICENSED GO GENERIC lOO UNITS LOW.MID NO AFFORDABLE

Summary Appraisal for Merged Phases 1 2

REVENUE Sales Valuation Units m2 Rate m2 Unit Price Gross Sales 2 bed private 20 1,400.00 Ê1,650.00 Ê115,500 2,310,000 3 bed private 50 4,200.00 Ê1,650.00 €138,600 6,930,000 4 bed private 15 1 ,815.00 Ê1,650.00 Ê199,650 2,994,750 2 bed afforable 10 700.00 Ê1,650.00 Ê1 15,500 1 ,1 55,000 3 bed affordable Þ 420.00 Ê1,650.00 Ê138,600 693.000 Totals 100 8,535.00 14,082,750

NET REALISATION 14,082,750

OUTLAY

ACQUtSTTTON COSTS Residualised Price 1,295,589 Stamp Duty 4.00% 51,824 Agent Fee 1.00% 12,956 Legal Fee 0.75% 9,717 1,370,086 CONSTRUCTION COSTS Construction m2 Rate m2 Cost 2 bed private 1,400.00 Ê789.00 1 ,104,600 3 bed private 4,200.00 Ê789.00 3,313,800 4 bed private 1 ,815.00 e789.00 1,432,035 2 bed afforable 700.00 Ê789.00 552,300 3 bed affordable 420.00 Ê789.00 331,380 Totals 8.535.00 6.734.115 6,734,115

Contingency 5.OO% 336,706 Abnormals 5.00% 292,522 Abnormals Allowance 5.00o/o 44,184 673,412 Other Construction Externals 10.00% 585,044 NHBC 85.00 un 500.00 /un 42,500 EPC 85.00 un 500.00 /un 42,500 Externals 10.00% 88,368 NHBC 15.00 un 500.00 /un 7,500 EPC 15.00 un 500.00 /un 7,500 773,412

PROFESSIONAL FEES Other Professionals 10.00% 585,044 Other Professionals 10.00% 88,368 673,412 DISPOSAL FEES Sales Agent Fee 3.50o/o 492,896 Sales Legal Fee 100.00 un 600.00 /un 60,000 552,896 FINANCE Debit Rate 6.50% Credit Rate 1.50% (Nominal) Total Finance Cost 488,869

TOTAL COSTS 11,266,200

PROFIT 2,816,550

Performance Measures Profit on Cost% 25.00% Profit on GDVo/o 20.00% Profit on NDV% 20.00%

IRR 28.23o/o

Profit Erosion (finance rate 6.500%) 3 yrs 6 mths

File: HIPROJECTS (Shared)\2o14 SLR VIABILITY AND CIL VIABILIT\lClL - GENERIC RESI SITES - 2014 - AMENDED 25-2-1S\GENER|C - MtD ARGUS Developer Version: 5.00.001 Date: 19/10/2015

215 P04 APPRAISAL SUMMARY co GENERIC I UNITS MID

Summary Appralsal tor Phase I Phaso 1 Prlvato

REVENUE Sales Valualion Unlts m'i Rato m' Unit Price Gross Salss 4 bed private 1 121.00 Ê1,875.00 2226,875 226,875

NET REALISATION 226,875

OUTLAY

ACQUtStTtON COSTS Res¡dualised Pr¡æ 3,919 Agent Fee 1.O00/o 39 Legal Fee o.75vo 29 3,988 CONSTRUCTION COSTS Constructlon m'z Rat€ m' Cost 4 bed private 121.OO Ê1,1 33.00 137,093 r37,093

Contingency 5.00% 6,855 Abnormals 5.O0% 6,855 13,709 Other Construcllon NHBC 1.00 un 500.00 /un 500 EPC 1.00 un 500.00 /un 500 1,000

PROFESSIONAL FEES Other Professionals 10.00% 13,709 13,709 DISPOSAL FEES Sales Agent F€e 3.50% 7,941 Sales Legal Fee 1.00 un 600.00 /un 600 8,541 FINANCE Tlmescale Durat¡on Commênces Construction I Jun 2013 Total Duralion 12

Debit Rate 6.50% Cred¡t Rate 1.50% (Nominal) Total Finance Cost 3,460

TOTAL COSTS 181,500

PROFIT 45,375

Pgrfotmancê Measuros Prof¡t on Cost% 25.000/0 Prof¡t on GDV% 20.o00/" Prolìt on NDVo/o 20.o00/o

IRR 83.57o/o

Profit Eros¡on (finance rate 6.500%) 3 yrs 6 mths

File: HIPROJECTS (Shared[2014 SLR VIABILITY AND CIL VIABILIT\IClL - GENERIC RESI SITES - 2014 - AMENDED 25-2¡5\GENËRlC - MtD 1 UNITS - AFFORDABLE.wcfx ARGUS Oeveloper Version: 5.00.001 Date:03/03/2015

216 P04 APPRAISAL SUMMARY LICENSED C GENERIC 15 UNITS MID AFFORDABLE

Summary Appralsal for f,¡lsrged PhaEes I 2

REVENUE Sales Valuat¡on Un¡ts m'z Ratê m'¡ Unit Prlcs Gross Sales Ad¡ustmsnt Not Salås 2 bed private 3 210.00 Ê1,875.00 Ê 131,250 393,750 0 393,750 3 bed pr¡vate 6 504,00 €1,875.00 Ê157,500 945,000 0 945,000 4 bed pr¡vate 4 484.00 Êt,875.00 8226,875 907,500 0 907,500 2 bed afforable 1 70.00 Ê1,875.00 Ê131,250 131,250 (54,141). 77,109 3 bsd âffordable ! !1.p9, Ê1,875.00 Ê1 57,500 l5æss. 19,L99Ð 9?ë1 Totals t5 1,352.00 2,s3s,000 (fi9,109) 2,4r5,89r

NET REALISATION 2,4f5,891

OUTLAY

ACQU¡SITION COSTS Residualised Price 371,375 Stamp Duty 4.O00/o 15,260 Agent Fee 1.00% 3,815 L€gal Fee 0.75% 2,861

393,31 1 CONSTRUCTION COSTS Construction m2 Rate m" Cost 2 bed private 210.00 Ê814.00 170,940 3 bed pr¡vate 504.00 e814.00 410,256 4 bed private 484.00 e814.00 393,976 2 b€d afforable 70.00 1814.00 56,980 3 bed affordable 84.00 Ê814.00 68,376 Totals l-@sq LL9!@ I,100,528

Cont¡ngency 5.00% 55,026 Abnormals 5.00% 48,759 Abnormals Allowance 5.00% 6,268 '110,053 Othêr Constructlon Externals 10.00% 80,423 NHBC 13.00 un 500.00 /un 6,500 EPC 13.00 un 500.00 /un 6,500 Externals 10.00% 6,838 NHBC 2.00 un 500.00 /un 'I,000 EPC 2.00 un 500.00 /un 1,000 102,26'l

PROFESSIONAL FEES Other Professionals 10.00% 97,5't7 Other Professionals 10.ooo/õ 12,536 1 10,053 DISPOSAL FEES Sales Ag€nt Fee 3.50o/o 84,556 Sales Legal Fee 15.00 un 600.00 /un 9,000 93,556 FINANCE Deb¡t Rate 6.50% Cr€d¡t Rate 1.50% (Nominal) Total Finance Cost 46,592

TOTAL COSTS r,956,354

PROFIT 459,537

Performance M€asures Prolit on Cost% 23.490/0 Profìt on GDV% 19.O20/o Prof¡t on NDV% 19.O2%

IRR 52.78%

Profit Erosion (flnance rat€ 6.500%) 3 yrs 3 mths

F¡Ie: HIPROJECTS (ShaTed)\2014 SLR VIABILITY AND CIL VIABILIT\ICIL - GENERIC RESI SITES - 2014 - AMENDED 2'2-1s\GENERIC - IVIID - 15 UNITS . AFFORDABLE.wcfx ARGUS Developer Version: 5.00.001 Date:03/03/2015

217 P04 APPRAISAL SUMMARY LICENSED GENERIC I5 UNITS MID NO AFFORDABLE

Summary AppEisal for Morgod Phases I 2

REVENUE Salos Valuat¡on Un¡ts m2 Rate m'¡ Unlt Pr¡ce Gross Sales 2 b€d private 3 210.00 Ê1,875.00 !131,250 393,750 3 bêd pr¡vate 6 504.00 € t,875.00 !1 57,500 945,000 4 bed pr¡vate 4 484.00 Ê1,875.00 Ê226,875 907,500 2 bed afforable 1 70.00 Ê1,875.00 e131,250 131,250 3 bed affordable ! .e4ss, Ê1,875.00 Ê157,500 lgz.gsq Totals l5 1,352.00 2,535,000

NET REALISATION 2,535,000

OUTLAY

ACOUtStTtON COSTS Res¡dualised Price 433,264 Stamp Duty 4.00o/o 17,331 Agent Fee 1.000/. 4,333 Legal Fee 0.7 50/o 3,249 458,177 CONSTRUCTION COSTS Construcllon m2 Rate m'z Cost 2 bed pr¡vate 210.00 e814.00 170,940 3 bed pr¡vate 504.00 Ê814.00 410,256 4 bed private 484.00 Ê814.00 393,976 2 bed afforable 70.00 c814.00 56,980 3 bed affordable 84.00 â814.00 68,376 Totâls 1.352.00 1,199é3C, r,100,528

Contingency 5.00% 55,026 Abnormals 5.00% 48,759 Abnormals Allowâncê 5.OOo/o 6,268

1 10,053 Other ConEtruct¡on Externals 10.00% 40,423 NHBC '13.00 un 500.00 /un 6,500 EPC 13.00 un 500.00 /un 6,500 Externals 10.00% 6,838 NHBC 2.00 un 500.00 /un 1,000 EPC 2.00 un 500.00 /un 1,000 102,261

PROFESSIONAL FEES Othêr Professionâls 10.00% 97,517 Other Professionals 10.00% 12,536 1 10,053 DISPOSAL FEES Sales Agent Fee 3.50% 88,725 Sales Legal Fee 15.00 un 600.00 /un 9,000 97,725 FINANCE Deb¡t Rate 6.50olo Cred¡t Rate 1-50o/o (Nominal) Total Finance Cost 49,204

TOTAL COSTS 2,028,000

PROFIT 507,000

Parformance Moasures Profit on Cost% 25.0oo/o Profit on GDV% 20.ooo/" Profìt on NDV% 20.o00/o

IRR 54.73./.

Prof¡t Fros¡on (linance rate 6.500%) 3 yrs 6 mths

File: HIPROJECTS (Shared)12014 SLR VIABILITY AND CIL VIABILITY\CIL - GENERIC RESI SITES - 2014 . AMENDED 25-2-,1S\GENERIC - I\4ID . 15 UNITS - NO AFFORDABLE.WCfu ARGUS Developer Version: 5.00.001 Date:03/03/2015

218 P04 APPRAISAL SUMMARY LICENSED GENERIC 50 UNITS MID AFFORDABLE

Summary Apprâlsãl for Mergsd Phases 1 2

REVENUE Sales Valuatlon Units m2 Ralo m'¡ Un¡t Price Gross Sales Ad¡u6tmont Net Salês 2 bed private 10 700.00 e 1,875.00 €131,250 1,31 2,500 0 1,312,500 3 bed privale 21 1,764.00 Ê1,875.00 Ê157,500 3,307,500 0 3,307,500 4 bed pr¡vate '12 1,452.00 €1,875.00 8226,875 2,722,500 0 2,722,500 2 bed afforable 4 280.00 € t,875.00 e131,250 525,000 (216,s63) 308,438 3 bed affordable 2n.00 Ê1,875.00 â157,500 472.500 í.93.9S0) zIl& Totals sõ' 4,,148.00 8,340,000 (4r r,469) 7,928,531

NET REALISATION 7,928,531

OUTLAY

ACQUtStTtON COSTS Residual¡sed Price 1,',t47,423 Stamp Duty 4.00v" 47,935 Agent Fee 1.00% I 1,984 Legal Fee 0.750/o 8,988 1,2 16.330 CONSTRUCTION COSTS Construction m2 Rate m'z Cost 2 bed private 700.00 Ê814.00 569,800 3 bed private 1,764.00 â814.00 1,435,896 4 bed private 1,452.OO Ê814.00 1,181,928 2 b€d afforable 280.00 €814.00 227,920 3 bed affordable 252.OO e814.00 205,128 Totals .1@Sq 3.620.672 3,620,672

Contingency 5.00% 181,034

Abnormals 5.00% 1 59,381 5.00% 21,652 362,067 Othor Construct¡on Externals 10.00% 318,762 NHBC 43.00 un 500.00 /un 21,500 EPC 43.00 un 500.00 /un 21,500 Externals 10.00% 43,305 NHBC 7.00 un 500.00 /un 3,500 EPC 7.00 un 500.00 /un 3,500 412,067

PROFESSIONAL FEES Other Profsss¡onals 10.00% 318,762 Olher Profêss¡onâls 10.00% 43,305 362,067 DISPOSAL FEES Sales Agent Fee 3.50% 277,499 Sales Legal Fee 50.00 un 600.00 /un 30,000 307,499 FINANCE Debit Rate 6.50% Credit Rate 1.50% (Nominal) Total Finance Cost 143,1 55

TOTAL COSTS 6,423,858

PROFIT r,504,673

P€rformance Measurês Profit on Cost% 23.42% Profit on GDV% 18.98o/o Profìt on NDV% 18.98%

IRR 44.860/0

Prof¡t Eros¡on (f¡nanæ rate 6.500%) 3 yrs 3 mths

F¡IE: HIPROJECTS (ShATEd)U014 SLR VIABILIry AND CIL VIABILIT\ICIL - GENERIC RESI SITES - 2014 . AMENDED 25-2-'I5\GENERIC - MID - 50 UNITS - AFFoRDABLE.wcfx ARGUS Developer Version; 5.00.00'l Date: 03/03/2015

219 P04 APPRAISAL SUMMARY LICE c GENERIC 50 UNITS MID NO AFFORDABLE

Summary Appralsãl for Merged Phases I 2

REVENUE Salðs Valuat¡on t n¡ts m2 Rato m' Unit Pricå Gross Salês 2 bed private 10 700.00 Ê1,875.00 Ê131,250 1,312,500 3 bed privat€ 21 1,764.00 Ê1,875.00 €157,500 3,307,500 bed private 12 1,452.00 Ê1,875.00 Ê226,875 2,722,500 bed afforable 4 280.00 t1,875.00 8131,250 525,000 bed affordãblê 252.O0 !1,875.00 Ê157,500 472.500 Totals sõ' 4,/t48.00 8,340,000

NET REALISATION 8,340,000

OUTLAY

ACQUTSTTTON COSTS Residualised Price 1,359,564 Stamp Duty 4.O0o/o 54,383 Agent Fee 1.00./. 13,596 Legal Fee o.750/o 10,197 1,437,739 CONSTRUCTION COSTS Constructlon m'¡ Rate m' Cost 2 bed pr¡vate 700.00 Ê814.00 569,800 3 bed private 1,764.00 €814.00 1,435,896 4 bed privãte 't,452.OO Ê814.00 1,181,928 2 bed afforable 280.00 e814.00 227,920 3 bed affordable 252.OO Ê814.00 205,128 Totâls f@sq 3.620.672 3,620,672

Conlingency 5.00% 18'1,034 Abnormals 5.00% 159,381 Abnormals Allowance 5.00% 21,652 362,067 Other Conslruction Externals 10.00% 318,762 NHBC 43.00 un 500.00 /un 21,500 EPC 43.00 un 500.00 /un 21,500 Externals 't0.00% 43,305 NHBC 7.00 un 500.00 /un 3,500 EPC 7.00 un 500.00 /un 3,500 412,067

PROFËSSIONAL FEES Other Profess¡onals 10.00% 318,762 Other Profess¡onâls 10.00% 43,305 362,067 DISPOSAL FEES Sales Agent Fee 3.500/" 291,900 Sales Legal F€e 50.00 un 600.00 /un 30,000 321,900 FINANCE Debil Rate 6.500/0 Credit Rate 1.50% (Nom¡nat) Total Finance Cost 155,487

TOTAL COSTS 6,672,000

PROFIT 1,668,000

P€rformance Measur€s Profit on Cost% 25.OOo/. Profit on GDV% 20.o0% Profit on NOV% 20.o00/o

IRR 45.530/0

Prof¡t Eros¡on (financ6 rate 6.500%) 3 yrs 6 mths

F¡le: H:\PROJECTS (Shared)U014 SLR VIABILITY AND CIL VIABILIT\ ClL - GENERIC RESI SITES - 2014 - AMENDED 2S2-15\GENERIC - MID - 50 UNITS - NO AFFORDABLE.wcfX ARGUS Devêloper Version: 5.00.001 Date:03/03/201S

220 P04 APPRAISAL SUMMARY NEWCASTLE CITY COUNCIL GENERIC 100 UNITS MID AFFORDABLE

Summary Appraisal for Merged Phases 1 2

REVENUE Sales Valuation Units m² Rate m² Unit Price Gross Sales 2 bed private 17 1,190.00 £1,875.00 £131,250 2,231,250 3 bed private 38 3,192.00 £1,875.00 £157,500 5,985,000 4 bed private 30 3,630.00 £1,875.00 £226,875 6,806,250 2 bed afforable 8 560.00 £1,875.00 £131,250 1,050,000 3 bed affordable 7 588.00 £1,875.00 £157,500 1,102,500 Totals 100 9,160.00 17,175,000

NET REALISATION 16,287,094

OUTLAY

ACQUISITION COSTS Residualised Price 2,012,961 Stamp Duty 4.00% 85,954 Agent Fee 1.00% 21,488 Legal Fee 0.75% 16,116 2,136,520 CONSTRUCTION COSTS Construction m² Rate m² Cost 2 bed private 1,190.00 £814.00 968,660 3 bed private 3,192.00 £814.00 2,598,288 4 bed private 3,630.00 £814.00 2,954,820 2 bed afforable 560.00 £814.00 455,840 3 bed affordable 588.00 £814.00 478,632 Totals 9,160.00 7,456,240 7,456,240

Contingency 5.00% 372,812 Abnormals 5.00% 326,088 Abnormals Allowance 5.00% 46,724 745,624 Other Construction Externals 10.00% 652,177 NHBC 85.00 un 500.00 /un 42,500 EPC 85.00 un 500.00 /un 42,500 Externals 10.00% 93,447 NHBC 15.00 un 500.00 /un 7,500 EPC 15.00 un 500.00 /un 7,500 845,624

PROFESSIONAL FEES Other Professionals 10.00% 652,177 Other Professionals 10.00% 93,447 745,624 DISPOSAL FEES Sales Agent Fee 3.50% 570,048 Sales Legal Fee 100.00 un 600.00 /un 60,000 630,048 FINANCE Debit Rate 6.50% Credit Rate 1.50% (Nominal) Total Finance Cost 642,164

TOTAL COSTS 13,201,844

PROFIT 3,085,250

Performance Measures Profit on Cost% 23.37% Profit on GDV% 18.94% Profit on NDV% 18.94%

IRR 25.40%

Profit Erosion (finance rate 6.500%) 3 yrs 3 mths

File: H:\PROJECTS (Shared)\2014 SLR VIABILITY AND CIL VIABILITY\CIL - GENERIC RESI SITES - 2014 - AMENDED 25-2-15\GENERIC - MID - 100 UNITS - AFFORDABLE.wcfx ARGUS Developer Version: 5.00.001 Date: 15/01/2016

221 P04 APPRAISAL SUMMARY LICENSED COPY GENERIC IOO UNITS MID NO AFFORDABLE

Summary Apprâlsal tor Morgad Phases I 2

REVENUE Salos valuat¡on Un¡ts m'z Rato m'z Unit Pilce Groas Sales 2 bed pr¡vate 17 1,190.00 Ê1,875.00 Ê'131,250 2,231,250 3 bed private 3,1 92.00 Ê l,875.00 Ê157,500 5,985,000 4 bed private 30 3,630.00 €1,875.00 î226,875 6,806,250 2 bed afforable I 560.00 Ê1,875.00 î.131,250 1,050,000 3 bed affordable z .5@99. Ê1,875.00 Ê157,500 LL93és9. Totals 100 9,160.00 17,f75,000

NET REALISATION 17,175,000

OUTLAY

ACQUtStTtON COSTS Residual¡sed Price 2,452,944 Stamp Duty 4.O0o/ø 98,118 Agent F6e 'tJl% 24,529 Legal Fee o.75% 18,397 2,593,988 CONSTRUCTION COSTS Construction m'z Ratê m'z Cost 2 bed pr¡vate 1,1 90.00 Ê814.00 968,660 3 bed private 3,1 92.00 Ê8 14.00 2,598,288 4 b€d private 3,630.00 Ê814.00 2,954,820 2 bed afforable 560.00 Ê814.00 455,840 3 bed affordable 588.00 €814.00 478,632 Totãls 9.1 60.00 1,!59Æ. 7,456,240

Cont¡ngency 5.00% 372,812 Abnormals 5.00% 326,088 Abnormals Allowance 5.00% 46,724 745,624 Other Construct¡on Externals '10.00% 652,'177 NHBC 85.00 un 500.00 /un 42,500 ËPC 85.00 un 500.00 /un 42,500 Externals 10.00% 93,447 NHBC 15.00 un 500.00 /un 7,500 EPC 15.00 un 500.00 /un 7,500 845,624

PROFESSIONAL FEES Other Professionals '10.00% 652,177 Othêr Profoss¡onâls '10.000/. 93,447 745,624 DISPOSAL FEES Sales Agent Fee 3.500/. 601, 125 Sales Legal Fee 100.00 un 600.00 /un 60,000 661,'t25 FINANCE Deb¡t Råte 6.50% Cred¡t Rate 1.50% (Nominal) Total Finance Cost 691,775

TOTAL COSTS 13,7¿10,000

PROFIT 3,435,000

1'. Prolìt on Cost% 25.OOo/o Profìt on GDV% 2O.O0o/o Prof¡t on NDV% 20.ooo/.

IRR 25.850/0

Prolìt Erosion (fìnance rate 6.500%) 3 yrs 6 mths

File: HIPROJECTS (Shared)U014 SLR VIABILITY AND CIL V|ABlLlTllClL - GENERIC RESI SITES - 2014 - AMENDED 25-2-15\GENERIC - MID - 100 UNITS - NO AFFORDABLE.wcfx ARGUS Dev€loper Version:5.00.001 Date:03/03/2015

222 P04 APPRAISAL SUMMARY LICENSED COPY GENERIC I UNITS MID.HIGH

Summary Appnisal for Phase f Phase I Prlvate

REVENUE Sålês Valuat¡on lJnlts m' Rate m'l Unlt Pr¡ce Gross Sales 4 bed privåte 121.00 82,250.00 Ê272,250 272,250

NET REALISATION 272,250

OUTLAY

ACOUtStTtON COSTS Residual¡sed Pr¡ce 30,343 Ag€nt Fee 1.00% JUJ Legal Fee O.75o/o 228 30,874 CONSTRUCTION COSTS Constructlon m2 Ratê m" Cost 4 bed private 't2't.00 â1,1 78.00 142,538 142,538

Cont¡ngency 5.000/" 7,127 Abnormals 5.000/. 7.127 14,254 Othêr Construct¡on NHBC 1.00 un 500.00 /un 500 EPC 1.00 un 500.00 /un 500 1,000

PROFESSIONAL FEES Other Profess¡onals 10.00% 14,254 14,254 OISPOSAL FEES Salês Agenl Fee 3.50% 9,529 Sales Legal Fee 1.00 un 600.00 /un 600 10,'t29 FINANCE Tlmêscale Duration Commences Construction I Jun 2013 Total Durat¡on 12

Debit Rate 6.50% Cred¡t Rate 1.50% (Nominal) Totâl Financ€ Cost 4,752

TOTAL COSTS 217,800

PROFIT 54,450

Porformancê M€asurea Prof¡t on Cost% 25.A0o/o Profìt on GDV% 20.o00/o Prof¡t on NDV% 2O.OOo/o

IRR 73.710/.

Prof¡t Eros¡on (finance rate 6.500%) 3 yrs 6 mths

File: HTPROJECTS (Shared)\2014 SLR VIABILITY AND CIL VIABILIT\tClL - GENERIC RESI SITES - 2014\GÊNERIC - MID-HIGH - 1 UNITS - AFFORDABLE wcfx ARGUS Developer Version: 5.00.001 Date:03/03/2015

223 P04 APPRAISAL SUMMARY LICENSED COPY GENERIC 15 UNITS MID.HIGH AFFORDABLE

Summâry Appralsal for Morged Phasos 1 2

REVENUE Salos Valuation Units m2 Rate m' Unit Pr¡ce Gross Salos Ad¡ustment Net Salea 3 bed pr¡vate 4 336.00 Ê2,250.00 e189,000 756,000 0 756,000 4 bed pr¡vate o 1,089.00 Ê2,250.00 8272,250 2,450,250 0 2,450,250 3 bed affordable z l3g9g €2,250.00 Ê189,000 3zg!9q lltsgg.) 222J'þ Totals t5 1,593.00 3,584,250 (r55,925) 3,428,325

NET REALISATION 3,428,325

OUTLAY

ACQUtSTilON COSIS Residual¡s€d Price 773,403 Stamp Duty 4.O0o/o 30,936 Agent Fee 1.00o/o 7,734 Legal Fee o.750/o 5,801 8't7,874 CONSTRUCTION COSTS Construct¡on m2 Rate m'¿ Cost 3 bed pr¡vale 336.00 Ê839.00 281,904 4 bed private 1,089.00 Ê839.00 913,671 3 bed âffordãblê '168.00 e839.00 '140,952 Totâls '1.593.00 't.336.527 1,336,527

Contingency 5.00% 66,826 Abnormals 5.00% 5S,779 Abnormals Al¡owance 5.000/. 7,O48 133,653 Othor Constructlon Externals 10.00% 1 19,558 NHBC 13.00 un 500.00 /un 6,500 EPC '13.00 un 500.00 /un 6,500 Externâls '10.00% 14,095 NHBC 2.00 un 500.00 /un 1,000 EPC 2.00 un 500.00 /un '1,000 148,653

PROFESSIONAL FEES Other Professionals 10.00% 119,558 Other Profess¡onals 10.00% 14,095 133,653 DISPOSAL FEES Sales Agent Fe€ 3.50% 1 19,991 Sales Legal Fee 15.00 un 600.00 /un 9,000 128,991 FINANCE Debit Rale 6.50% Credit Rate 1.50% (Nominal) Total F¡nance Cosl 74,297

TOTAL COSTS 2,773,647

PROFIT 654,678

Profìt on Cost% 23.600/o Profìt on GDVo/. 19.'100/o Profit on NDV% 19.'tio/o

IRR 48.63%

ProfÌt Erosion (f¡nance rate 6.500%) 3 yrs 3 mths

F¡le: HIPROJECTS (Shared)U014 SLR VIABILITY AND CIL VIABILIT\IClL - GENERIC RESI SITES - 2014\GENERIC - MID-HIGH - 15 UNITS - AFFORDABLE.wcfx ARGUS Developer Vers¡onì 5.00.001 Date:03/03/2015

224 P04 APPRAISAL SUMMARY LICENSED COPY GENERIC 15 UNITS MID.HIGH NO AFFORDABLE

Summary Appra¡sal for Mergsd Phasos I 2

REVENUE Sales Valuation unlls m'i Rate m'l Un¡t Price Gross Salos 3 bed private 4 336.00 Ê2,250.00 €189,000 756,000 4 bed private I 1,089.00 Ê2,250.00 1272,250 2,450,250 3 bed affordable z 168.00 Ê2,250.00 !1 89,000 3zgp99. Totals t5 1,593.00 3,584,250

NET REALISATION 3,584,250

OUTLAY

ACQUtStTtON COSTS Residualised Pr¡ce 853,668 Stamp Duty 4.000/0 34,'t47 Agent Fee '1.00% 8,537 Legal Fee 0.750/. 6,403 902,754 CONSTRUCTION COSTS Construct¡on m'z Rate m' Cost 3 bed pr¡vate 336.00 €839.00 2A1,904 4 bed pr¡vate 1,089.00 €839.00 913,671 3 bed affordable '168.00 e83S.00 't40,952 Totals r-@99. 1,336,527

Contingency 5.00% 66,826 Abnormals 5.00% 59,779 Abnormals Allowance 5.00% 7,O48 133,653 Othsr Constructlon Externals 10.00% 1 19,558 NHBC 13.00 un 500.00 /un 6,500 EPC 13.00 un 500.00 /un 6,500 Externals 10.00% 14,095 NHBC 2.00 un 500.00 /un 1,000 EPC 2.00 un 500.00 /un 1,000 148,653

PROFESSIONAL FEES Other Professionals 10.00% 1 19,558 Other Professionals 10.00% 14,095 133,653 DISPOSAL FEES Sales Agent Fee 3.500/. 125,449 Sales L€gal Fee '15.00 un 600.00 /un 9,000 134,449 FINANCE Debit Rate 6.50% Cred¡t Rate 1.50% (Nom¡nal) Total Finance Cost 77,713

TOTAL COSTS 2,867,¡t00

PROFIT 716,850

Porformance Measures Profit on Cost% 25.O0% ProfÌt on GDV% 20.o0% Profit on NDV% 20.O0o/o

IRR 50.48%

Prof¡t Erosion (flnance rate 6.500%) 3 yrs 6 mths

F¡le: HIPROJECTS (Shared)\2014 SLR VIABILITY AND CIL VIABILIT\IClL - GENERIC RESI SITES - 2014\GENERIC - MID-HIGH - 15 UNITS - NO AFFORDABLE.wcfx ARGUS Developer Version: 5.00.001 Date: 03/03/201 5

225 P04 APPRAISAL SUMMARY LICENSED COPY GENERIC 50 UNITS MID.HIGH AFFORDABLE

Summary Appra¡sal for Merged Phases I 2

REVENUE Salês Valuat¡on Un¡ts m'¡ Rate m2 Unlt Prico Gross Sales Adjustment Nêt Sales 2 bed private 6 420.OO €2,250.00 €157,500 945,000 0 945,000 3 bed pr¡vate 17 1,428.00 22,250.OO Ê189,000 3,213,000 0 3,213,000 bed pr¡vate 20 2,420.00 Ê2,250.00 8272,250 5,445,000 0 5,445,000 bed afforable 4 280.00 Ê2,250.00 Ê157,500 630,000 (25s,87s) 370,125 bed atfordable 252.00 €2,250.00 Ê189,000 59.99S. (233.888) .333,1LC. lotals sõ 4,800.00 10,800,000 (493,763) 10,306,238

NET REALISAT!ON r0,306,238

OUILAY

ACQUtStTtON COSTS Residualised Price 2,292,919 Stamp Duty 4.OOo/. 91,717 Ag€nt F€e 1.00% 22,929 Legal Fee O.75lo 17,197 2,424,762 coNsTRucTroN cosTs Conglruction m2 Rate m'z Cost 2 bed pr¡vate 420.00 Ê839.00 352,380 3 bed pr¡vate 't,428.00 Ê839.00 1,198,092 4 bed private 2,420.00 Ê839.00 2,030,380 2 bed afforable 280.00 €839.00 234,920 3 bed affordable 252.O0 €839.00 211,428 TÕtâls 4.027.200 4,027,200

Cont¡ngency 5.00% 201,360 Abnormals 5.00% 179,043 Abnormals Allowânce 5.00% 22,3't7 402,720 Other Construct¡on Externals '10.00o/o 358,085 NHBC 43.00 un 500.00 /un 21,500 EPC 43.00 un 500.00 /un 21,500 Externals 10.00% 44,635 NHBC 7.00 un 500.00 /un 3,500 EPC 7.00 un 500.00 /un 3,500 452,720

PROFESSIONAL FEES Other Professionals '10.00% 358,085 Other Profess¡onals 10.00% 44,635 402,720 DISPOSAL FEES Sales Agent Fee 3.500/0 360,718 Sales Legal Fee 50.00 un 600.00 /un 30,000 390,718 FINANCE Debit Rate 6.50% Credit Rate 1.50% (Nominal) Total Finanæ Cost 242,O77

IOTAL COSTS 8,342,917

PROFIT 1,963,320

Profìt on Cost% 23.53o/o Prol¡t on GDV% 19.05% Prof¡t on NDV% 19.05%

IRR 38.48./.

Profìt Erosion (flnance rate 6.500%) 3 yrs 3 mths

F¡le: HIPROJECTS (Shared)U014 SLR VIABILITY AND CIL VIABILIT\1ClL - GENERIC RESI SITES - 2014\GENERIC - MID-HIGH - 50 UNITS - AFFORDABLE.wcfx ARGUS Developer Version: 5.00.00'l Date:03/03/2015

226 P04 APPRAISAL SUMMARY LICENSED COPY GENERIC 50 UNITS MID.HIGH NO AFFORDABLE

Summary Appraisal for Mêrged Phasos I 2

REVENUE Salås Valuat¡on Un¡ts m2 Rate m'? Un¡t Pr¡cs Gross Sales 2 bed pr¡vate 6 420.00 Ê2,250.00 Ê157,500 945,000 3 bed pr¡vate 17 1,428.00 Ê2,250.00 €1 89,000 3,213,000 4 bed pr¡vate 20 2,420.00 Ê2,250.00 î272,250 5,445,000 2 bed atforable 4 280.00 Ê2,250.00 Ê157,500 630,000 3 bed affordable æ99. Ê2,250.00 Ê189,000 sg7.sss. Totals 5õ 4,800.00 10,800,000

NET REALISATION r0,800,000

OUTLAY

ACQUtStilON COSTS Res¡dualised Pr¡ce 2,681,486 Stamp Duty 4.O0o/o 107,259 Agent Fee 1.000/. 26,815 Legal Fee o.750/o 20,111 2,835,671 coNsrRucloN cosrs Constructlon m2 Rate m' Cost 2 bed pr¡vate 420.00 Ê839.00 352,380 3 bed pr¡vate 1,428.00 Ê839.00 1,198,092 4 bed pr¡vate 2,420.O0 Ê839.00 2,030,380 2 bed afforable 280.00 Ê839.00 234,920 3 bed affordable 252.00 Ê839.00 211,428 Totals 4.800.00 4.O27.200 4,027,200

Cont¡ngency 5.00% 20 1,360 Abnormals 5.OOo/o 179,043 Abnormals Allowånce 5.000/o 22,3't7 402,720 Othêr ConEtruct¡on Externals 10.o0% 358,085 NHBC 43.00 un 500.00 /un 21,500 EPC 43.00 un 500.00 /un 21,500 Externals 10.00% 44,635 NHBC 7.00 un 500.00 /un 3,500 EPC 7.00 un 500.00 /un 3,500 452,720

PROFESSIONAL FÊES Other Profess¡onals 10.00% 358,085 Other Professionals 10.00% 44,635 402,720 DISPOSAL FEES Sales Agent Fee 3.50% 378,000 Sales Legal Fee 50.00 un 600.00 /un 30,000 408,000 FINANCE Debit Rate 6.50% Cred¡t Rate 1.50% (Nominal) Total Finance Cost 277,663

TOTAL COSTS 8,806,695

PROFIT 1,993,305

Pertormanco Measures Profit on Cost% 22.630/0 Prolìt on GDV% 18.46% Profìt on NDV% 14.460/"

IRR 35.700/o

Prof¡t Eros¡on (finance rate 6.500%) 3 yrs 2 mths

File: HIPROJECTS (Shared)U014 SLR VIABILITY AND CIL VIABILITY\ClL - GENERIC RESI SITES - 2014\GENERIC - MID-HIGH - 50 UNITS - NO AFFORDABLE.wcfx ARGUS Developer Version: 5.00.001 Date:03/03/2015

227 P04 APPRAISAL SUMMARY LICENSED COPY GENERIC lOO UNITS MID.HIGH AFFORDABLE

Summary Appralsal for Merged Phases I 2

REVENUE Sales Valuallon Unlts m' Rate m'? unlt Pr¡cê Gross Salês Ad¡ustment Net Sales 2 bed pr¡vate 12 840.00 Ê2,250.00 Ê157,500 1,890,000 0 '1,890,000 3 bed private 2,772.00 Ê2,250.00 Ê189,000 6,237,000 0 6,237,000 4 bed pr¡vate 40 4,840.00 Ê2,250.00 Ê272,250 10,890,000 0 10,8S0,000 2 bed afforable 8 560.00 Ê2,250.00 Ê157,500 1,260,000 (s19,750) 740,250 3 bed affordable z .@99. 82,250.00 Ê189,000 1.323.000 lg35.Z3Ð lllÆ Totals 100 9,600.00 2r,600,000 (r,06s,488) 20,534,sr3

NET REALISATION 20,534,513

OUTLAY

ACQUTSTilON COSTS Rêsidual¡sed Pric6 4,077,886 Stamp Duty 4.00% 163,115 Agent Fee 1.000/0 40,779 Legal Fee 0.75./. 30,584 4,312,365 CONSTRUCTION COSTS Construct¡on m2 Rate m" Cost 2 bed pr¡vate 840.00 â839.00 704,760 3 bed pr¡vate 2,772.O0 Ê839.00 2,325,708 4 bed private 4,840.00 Ê839.00 4,060,760 2 bed afforable 5bU.UU 1839.00 469,840 3 bed affordable 588.00 â839.00 493,332 Totals .9@99. 8.054.400 8,054,¿!00

Contingency 5.00% 402,720 Abnormals 5.00% 354,561 Abnormâls Allowãncê 5.00% 48,159 805,440 Other Constructlon Externals 10.00% 709,123 NHBC 85.00 un 500.00 /un 42,500 EPC 85.00 un 500.00 /un 42,500 Exlernals 10.00% 96,317 NHBC 15.00 un 500.00 /un 7,500 EPC 15.00 un 500.00 /un 7,500 905,440

PROFESSIONAL FEES Other Professionals 10.00% 709,123 Othor Professionals 10.00% 96,317 805,440 DISPOSAL FEES Sales Agent Fee 3.50% 71A,70a Sales Legal Fee 100.00 un 600.00 /un 60,000 778,708 FINANCE Deb¡t Rate 6.50% Credit Rate 1.50% (Nominal) Total Finance Cost 976,O27

IOTAL COSTS '16,637,819

PROFIT 3,896,693

Profìt on Cost% 23.426/o Prol¡t on GDVo/o 18.98% Profit on NDV% 18.98%

IRR 22.820/.

Prof¡t Erosion (fìnance rate 6.500%) 3 yrs 3 mths

File: HIPROJECTS (Shar€d)\2014 SLR VIABILITY AND CIL VIABILIT\lClL - GENERIC RESI SITES - 2014\GENERIC - l\4lD-HIGH 100 UNITS - AFFORDABLE.wcfx ARGUS Developer Version: 5.00.00'l Dâte: 03/03/2015

228 P04 APPRAISAL SUMMARY LICENSED COPY GENERIC lOO UNITS MID.HIGH NO AFFORDABLE

Summary Appraisal for Merged Phases 'l 2

REVENUE Sales Valuat¡on Unlls m2 Rato m'¿ Unlt Prlco Gross Sales 2 bèd private 840.00 €2,250.00 Ê157,500 1,890,000 3 bed pr¡vate 2,772.O0 €2,250.00 Ê189,000 6,237,000 4 bed pr¡vate 40 4,840.00 !2,250.00 1272,250 '10,890,000 2 bed atforable I 560.00 e2,250.00 e157,500 1,260,000 3 bed affordable 7 @ !2,250.00 Ê189,000 L32.3J99. Totals 00 9,600.00 21,600,000

NET REALISATION 21,600,000

OUTLAY

ACQUTSTTTON COSTS Residualisêd Prico 4,594,258 Stamp Duty 4.OO./. 183,770 Agent Fee 1.O00k 45,943 Legal Fee 0.751o 34,457 4,858,428 CONSTRUCTION COSTS Conatruct¡on m'1 Rate m: Cost 2 bed pr¡vate 840.00 €839.00 704,760 3 bed private 2,772.00 Ê839.00 2,325,708 4 bed private 4,840.00 €83S.00 4,060,760 2 bed atforable 560.00 Ê839.00 469,840 3 bed atfordable 588.00 Ê839.00 493,332 Totals 9.600.00 8.054.400 8,054,/tO0

Contingency 5.00% 402,720 Abnormals 5.00% 354,561 Abnormâls Allowancê 5.00% 48,1 59 805,440 Other Constructlon Externals 10.00% 709,'123 NHBC 85.00 un 500.00 /un 42,500 EPC 85.00 un 500.00 /un 42,500 Externals 10.00% 96,317 NHBC 15.00 un 500.00 /un 7,500 EPC 15.00 un 500.00 /un 7,500 905,440

PROFESSIONAL FEES Other Profess¡onals '10.00% 709,123 Other Professionals 10.00% 96,317 805,440 DISPOSAL FEES Sales Agent Fee 3.50o/o 756,000 Sa¡es Legal Fee 100.00 un 600.00 /un 60,000 816,000 FINANCE Deb¡t Rate 6.50% Cr€dit Rate 1.50% (Nominal) Total Finance Cost 'I,034,852

ÎOTAL COSTS r7,280,000

PROFIT 4,320,000

Performance Measurss Profit on Cost% 25.000/0 Prof¡t on GDV% 20.ooo/. Prof¡t on NDV% 20.00%

IRR 2339%

Prof¡t Eros¡on (finance rate 6.500%) 3 yrs 6 mths

File: HIPROJECTS (Shared)\2014 SLR VIABILITY AND CIL V|ABlLlw\ClL - GENERIC RESI SITES - 20'14\GENERIC - MID-HIGH - 100 UNITS - NO AFFORDABLE.wcfx ARGUS Developer Version: 5.00.001 Date:03/03/2015

229 P04 APPRAISAL SUMMARY GENERIC 1 UNITS HIGH

Summary AppEíEal for Phaso I Phaso I Prlvate

REVENUE Sales Valuation Units m2 Rato m' Unlt Pr¡ce Gross Salos 4 bed pr¡våto 1 121.00 €2,700.00 Ê326,700 326,700

NET REALISATION 326,700

OUTLAY

ACQUtSTnON COSTS R€siduål¡sed Priæ 63,'t68 Ag€nt Fse 1.00% 632 Legal Fee 0.75% 474 64,273 CONSTRUCTION COSTS Construcllon m'¡ Ratè m'2 Cost 4 bod private 121.OO 81,224.00 148,104 148,104

Contingency 5.00% 7,405 Abnormals 5.000/o 7,405 14,810 Othsr Constructlon NHBC 1.00 un 500.00 /un 500 EPC 1.00 un 500.00 /un 500 1,000

PROFESSIONAL FEES Other Professionals 10.00% 14,810 14,810 DISPOSAL FEES Salôs Agent Fee 3.50% 11,435 Sâlos Lsgal Foe 1.00 un 600.00 /un 600 't2,o35 FINANCE Tlmescalo Duratlon Commgnces Construct¡on 9 Jun 2013 Total Durat¡on '12

Debit Råte 6.50% Credit Rate 1.50% (Nominal) Total Finance Cost 6,328

TOTAL COSTS 261,360

PROFIT 65,3¡O

Prof¡t on Cost% 25.O0o/o Profit on GDV% 2O.OOo/o Prof¡t on NDV% 20.ooo/o

IRR 67.11Vo

Protìt Eros¡on (finance rate 6.500%) 3 yrs 6 mths

F¡le: H1PROJECTS (Shar€d)U014 SLR VIABILITY AND CIL VIABILIT\lClL - GENERIC RESI SITES - 2014\GENERIC - HIGH - I UNITS - AFFORÞABLE.wcfx ARGUS Developor Veßion: 5.00.001 Date:03/03/2015

230 P04 APPRAISAL SUMMARY LICENSED COPY GENERIC 15 UNITS HIGH AFFORDABLE

Summary Appra¡sal for Morgod Phases I 2

REVENUE Sales Vãluallon Units m'. Rate m'z Un¡t Pr¡ce Gross Sales Ad¡ustment Not Salos 3 bed pr¡vate 4 336.00 Ê2,700.00 8226,800 907,200 0 907,200 4 bed private 1,089.00 e2,700.00 Ê326,700 2,940,300 0 2,940,300 3 bed âffordable z j@ Ê2,700.00 e226,800 453S9S. í-c];!ls) 266.490 Totals 5 1,593.00 4,301,100 (r87,110) 4,r 13,990

NET REALISATION 4,1 13,990

OUTLAY

ACQUtStTtON COSTS Residualis€d Pr¡ce 1,203,534 Stamp Duty 4.000/. 48,141 Agent Fee 1.0ïo/o 12,035 Legal Fee 0.75./. I,O27 1,272,737 CONSTRUCTION COSTS Construct¡on m2 Rate m' Cost 3 bed pr¡vate 336.00 Ê864.00 290,304 4 bed private I,089.00 e864.00 940,896 3 bed atfordable 168.00 €864.00 145,152 Totals j-@9. L3z9É5,e 1,376,352

Contingency 5.00% 68,818 Abnormals 5.00% 6'1,560 Abnormals Allowance 5.00% 7,258 1 37,635 Other Construction Externals 10.00% 123,120 NHBC '13.00 un 500.00 /un 6,500 EPC 13.00 un 500.00 /un 6,500 Externals 10.000/o 14,515 NHBC 2.00 un 500.00 /un 1,000 EPC 2.00 un 500.00 /un 1,000 152,635

PROFESSIONAL FEES Other Professionals 10.00% 123,120 Other Professionals 10.00% 14,515 137,635 DISPOSAL FEES Sales Agent Fe€ 3.50% 143,990 Sales Legal Fee 15.00 un 600.00 /un 9,000 152,990 FINANCÊ Debit Rate 6.50% Credit Rate 1.50% (Nominal) Total F¡nance Cost 98,391

TOTAL COSTS 3,328,376

PROFIT 785,614

Porformanca Moasurês ProfÌt on Cost% 23.60% Profìt on GDVo/" 19.10% Profit on NDV% 19.100/o

IRR 45.291o

Prof¡t Erosion (fÌnance rate 6.500o/o) 3 yrs 3 mths

File: HIPROJECTS (Shared)!20'14 SLR VIABILITY AND CIL VIABILITY\ClL - GENERIC RESI SITES - 2014\GENERIC - HIGH - 15 UNITS - AFFORDABLE.wcfx ARGUS Dov€loper Version: 5.00.001 Date:03/03/2015

231 P04 APPRAISAL SUMMARY LICENSED C GENERIC 15 UNITS HIGH NO AFFORDABLE

Summary Appralsal for Mergêd Phasos I 2

REVENUE Salss Valuat¡on Unlts m¡ Rate m2 Unit Prlce Gross Sales 907,200 3 bed privâte 4 336.00 Ê2,700.00 Ê226,800 4 bed private o 1,089.00 Ê2,700.00 8326,700 2,940,300 453.600 3 bed affordable z 168.00 Ê2,700.00 €226,800 Totals l5 1,593.00 4,301,100

NET REALISATION 4,301,100

OUTLAY

ÂcoutstTloN cosTs Residualised Price 1,299,852 Stamp Duty 4.00vo 51,994 Agent Fee 1.O0o/o 12,999 Legal F€e 0.7 50/o 9,749 1,374,593 CONSTRUCTION COSTS Construct¡on mu Rate m' Cost 3 bed pr¡vate 336.00 Ê864.00 290,304 4 b€d pr¡vate 1,089.00 e864.00 940,896 3 bed affordable 168.00 Ê864.00 145,152 Totals l.@ 1,329@ 1,376,352

Contingency 5.00% 68,818 Abnormals 5.00% 61,560 Abnormals Allowance 5.00% 7,258 137,635 Other Constructlon Externals 10.000/ô 123,120 NHBC 13.00 un 500.00 /un 6,500 EPC 13.00 un 500.00 /un 6,500 Externals 10.00% 14,515 NHBC 2.00 un 500.00 /un 1,000 EPC 2.00 un 500.00 /un I,000 152,635

PROFESSIONAL FEES Other Professionals '10.00% 123,120 Other Professionals 10.00% 14,515 137,635 DISPOSAL FEES Sales Agent Fee 3.500/. 150,539 Sales Lêgal Fee 15.00 un 600.00 /un 9,000 159,539 FINANCE Deb¡t Rate 6.50% Credit Rate 1.50% (Nominal) Total Finance Cosl 102,490

TOTAL COSTS 3,440,880

PROFIT 860,220

Prof¡t on Cost% 25.00ô/. Prof¡t on GDV% 20.00% Profìt on NDV% 2O.OOo/o

IRR 47.14o/o

Profit Eros¡on (f¡nance rate 6.500%) 3 yrs 6 mths

. HIGH - 15 UNITS - NO AFFORDABLE.wcfx File: H:\PROJECTS (Shared)V01 4 SLR VIABILITY AND CIL VIABILITÌTCIL - GENERIC RESI SITES - 2014\GENERIC Date: 03/03/20 15 ARGUS Developer Version: 5.00.001

232 P04 APPRAISAL SUMMARY LICENSED C GENERIC 50 UNITS HIGH AFFORDABLE

Summary Appnisal for Merged Phases 'l 2

REVENUE Salss valuat¡on Un¡ts m2 Rato m'¡ un¡t Prlcê Gross Salss Adjustment Net Sales 2 bed private 420.00 e2,700.00 Ê189,000 1,1 34,000 0 1,134,000 3 bed private 12 1,008.00 Ê2,700.00 €226,800 2,721,600 0 2,721,600 4 b€d private 25 3,025.00 Ê2,700.00 Ê326,700 8,167,500 0 8,167,500 2 bed afforâble 4 280.00 e2,700.00 Ê189,000 756,000 (311,850) 444,150 399.735 3 bêd affordablê .3. 252.O0 Ê2,700.00 €226,800 9!9J99. f¿gg.qqg) Totals 50 4,985.00 13,459,500 (592,51s) 12,866,985

NET REALISATION 12,866,985

OUTLAY

ACQUtStTtON COSTS Residual¡sed Pr¡ce 3,706,838 Stamp Duty 4.0oo/o 148,274 Agent Fee 1.00o/o 37,068 Legal Fee 0.750/0 27,801 3,919,981 CONSTRUCTION COSTS ConstÌuct¡on m'¡ Rate m" Cost 2 bed private 420.OO Ê864.00 362,880 3 bed private 1,008.00 â864.00 870,912 4 bed private 3,025.00 â864.00 2,613,600 2 bed afforable 280.00 Ê864.00 241,920 3 bed affordable 252.O0 Ê864.00 217,728 Tolals 4.985.00 4,307.040 4,307,040

Cont¡ngency 5.00% 215,352 Abnormals 5.00% 192,370 Abnormâls Allowancê 5.00% 22,982 430,704 Other Construqtlon Extsrnals '10.00% 384,739 NHBC 43.00 un 500.00 /un 21,500 EPC 43.00 un 500.00 /un 21,500 Ext€rnals 10.00% 45,965 NHBC 7.00 un 500.00 /un 3,500 EPC 7.00 un 500.00 /un 3,500 480,704

PROFESSIONAL FEES Other Prof€ssionãls 10.00o/o 384,739 Other Prof€ssionals 10.00% 45,965 430,704 OISPOSAL FEES Salês Agent FÊe 3.50% 450,344 Sales Legal Fee 50.00 un 600.00 /un 30,000 480,344 FINANCE Debit Rate 6.50% Credit Rate 1.50% (Nominal) Total Finance Cost 36't,627

TOTAL COSTS 10,4f I,105

PROFIT 2,455,880

Prof¡t on Cost% 23.59V. Profìt on GDV% 19.09% Profit on NDV% 19.090/o

IRR 34.610/0

Profit Eros¡on (l¡nancê rat€ 6.500%) 3 yrs 3 mths

File: HTPROJECTS (SharedI2O14 SLR VIABILITY AND CIL V|ABlLlTllClL - GENERIC RESI SITES - 2014\GENERIC - HIGH - 50 UNITS - AFFORDABLE.wcfx ARGUS Devolop€r Veßion: 5,00.001 Oale:03/03/2015

233 P04 APPRAISAL SUMMARY LICENSED COPY GENERIC 50 UNITS HIGH NO AFFORDABLE

Summary Appraisal for Mergad Phasss I 2

REVENUE Salos Valual¡on Un¡ts m'1 Rate m' Unit Pr¡ce Gross Salos 2 bed pr¡vate 6 420.00 Ê2,700.00 Ê189,000 1,134,000 3 bed private 't2 I,008.00 €2,700.00 Ê226,800 2,721,600 4 bed pr¡vat€ 3,025.00 €2,700.00 Ê326,700 8,167,500 2 bed afforable 4 280.00 €2,700.00 Ê189,000 756,000 3 bed affordable 3. 252.O0. î2,700.00 8226,800 680.400 Totals 50 4,985.00 13,459,500

NET REALISATION 13,459,500

OUTLAY

ACQUISIT¡ON COSTS Residualisêd Pr¡ce 4,OO7,657 Stamp Duty 4.O00/. 160,306 Agent Fee 1.O00/. 40,o77 Legal F€e 0.75./. 30,057 4,238,O97 CONSTRUCTION COSTS Construct¡on m2 Rato m'i CoEt 2 b€d private 420.00 Ê864.00 362,880 3 b€d pr¡vate 1,008.00 Ê864.00 870,912 4 b€d pr¡vâte 3,025.00 Ê864.00 2,613,600 2 bed afforable 280.00 Ê864.00 241,920 3 bed affordable 252.O0 e864.00 217,728 Totals 4.985.00 4.307.040 4,307,040

Contingency 5.000/o 215,352 Abnormals 5.00% 192,370 Abnormals Allowance 5.00% 22,982 430,704 Other Constructlon Externals 1O.O0o/o 384,739 NHBC 43.00 un 500.00 /un 21,500 EPC 43.00 un 500.00 /un 21,500 Externals '10.00% 45,965 NHBC 7.00 un 500.00 /un 3,500 EPC 7.00 un 500-00 /un 3,500 480,704

PROFESSIONAL FEES Other Professionals 10.o00/. 384,739 Other Professionals 10.00% 45,965 430,704 DISPOSAL FEES Sales Ag€nt Fse 3.50% 471,OA3 Sales Legal Fee 50.00 un 600.00 /un 30,000 501,083 FINANCE D€bit Rate 6.50% Credit Rãte 1.50% (Nominal) Total Finance Cost 379,268

TOTAL COSTS 10,767,600

PROFIT 2,69r,900

Performance Measures Prolìt on Cost% 25.O0o/o Profìt on GDV% 20.o00/o Profit on NDV9" 20.o00/o

IRR 35.650/.

Prof¡t Erosion (finanæ rate 6.500%) 3 yrs 6 mths

File: HIPROJECTS (Shared)\2014 SLR VIABILITY AND CIL VIABILIT\lClL - GENERIC RESI SITES - 2014\GENERIC - HIGH - 50 UNITS - NO AFFORDABLE.wcfx ARGUS Developer Vers¡on: 5.00.001 Date:03/03/2015

234 P04 APPRAISAL SUMMARY LICENSED COPY GENERIC IOO UNITS HIGH AFFORDABLE

Summary Appnlsal for Morgod Phases I 2

REVENUE Sals6 Valuation Unlts m'¿ Rate m'? Un¡t Prlcs Groas Salês AdJustmont Net Sales 2 bed pr¡vate 12 840.00 f2,700.00 Ê189,000 2,268,000 0 2,268,000 3 bed private 33 2,772.00 €2,700.00 Ê226,800 7,484,400 0 7,484,400 4 bed pr¡vate 40 4,840.00 r2,700.00 €326,700 13,068,000 0 1 3,068,000 2 bed afforable 8 560.00 Ê2,700.00 e189,000 1,512,000 (623,700) 888,300 3 bed affordable Z gggJq r2,700.00 €226,800 !qg¿9s9. l9gtggÐ 932Æ. Totals r00 9,600.00 25,920,000 (r,278,585) 24,641,41s

NET REALISATION 24,641,415

OUTLAY

ACQUTSTTTON COSTS Residualised Pr¡ce 6,448,551 Stamp Duty 4.O00/o 257,942 Agent Fee '1.o00/o 64,486 Legal Fee o.750/o 48,364 6,8'19,343 CONSTRUCTION COSTS Construct¡on m'z Rate m'¿ Cost 2 bed pr¡vate 840.00 €864.00 725,760 3 bed pr¡vate 2,772.OO €864.00 2,395,008 4 bed pr¡vate 4,840.00 €864.00 4,181,760 2 bed afforabl€ 560.00 Ê864.00 483,840 3 bed atfordable 588.00 Ê864.00 508,032 Totals 9@9g .9,294JSq 8,294,4{¡0

Cont¡ngency 5.00% 414,720 Abnormâls 5.00% 365,'t26 Abnormals Allowance 5.00% 49,594 829,440 Other Construcllon Externals 10.00% 730,253 NHBC 85.00 un 500.00 /un 42,500 EPC 85.00 un 500.00 /un 42,500 Exlernals '10.00% 99,1 87 NHBC '15.00 un 500.00 /un 7,500 EPC '15.00 un 500.00 /un 7,500 929,440

PROFESSIONAL FEES Other Professionals 10.00% 730,253 Other Professionals 10.00% 99,1 87 829,440 DISPOSAL FEES Sa¡es Agent Fee 3.50% 862,450 Sal€s L€gal Fee 100.00 un 600.00 /un 60,000 922,450 FINANCE Debit Rate 6.50% Credit Rate 1.50% (Nom¡nal) Total Finance Cost 1,340,864

TOTAL COSTS 19,965,377

PROFIT 4,676,038

Performance MeaEur€s Profìt on Costo/" 23.42./. Prof¡t on GDV% 18.98% Prol¡t on NDV% 18.98%

IRR 21.150/0

Prolìt Erosion (f¡nance rate 6.500%) 3 yrs 3 mths

File: HIPROJECTS (Shãred)\2014 SLR VIABILITY AND CIL VIABILIT\IClL - GENERIC RESI SITES - 2014\GENERIC - HIGH - 100 UNITS - AFFORDABLE.wcfx ARGUS Developer V€rsion: 5.00.001 Date:03/03/2015

235 P04 APPRAISAL SUMMARY LICENSED COPY GENERIC lOO UNITS H¡GH NO AFFORDABLE

Summary Appraisal for Mergêd Phases I 2

REVENUE Salos Valuatlon Units m2 Rate m'z Un¡t Prlce Gross Sales 2 bed private 840.00 Ê2,700.00 Ê189,000 2,268,000 3 bed private 2,772.00 r2,700.00 8226,800 7,484,400 4 bed pr¡vate 40 4,840.00 €2,700.00 Ê326,700 '13,068,000 2 bed afforable I 560.00 Ê2,700.00 Ê189,000 'I,512,000 3 bed âffordable ! é@99. Ê2,700.00 î226,800 !9gLqsg Totals .t00 9,600.00 25,920,000

NET REALISATION 25,920,000

OUTLAY

ACQUtStTTON COSTS Residual¡sed Pric€ 7,068,202 Stamp Duty 4.000/o 282,728 Agent Fee 1.000/o 70,682 Legal Fee 0.750/0 53,O't2 7,474,623 CONSTRUCTION COSTS Construct¡on m2 Rats m' Cost 2 bed private 840.00 €864.00 725,760 3 bed private 2,772.00 €864.00 2,395,008 4 bed pr¡vate 4,840.00 Ê864.00 4,18'1,760 2 bed afforable 560.00 Ê864.00 483,840 3 bed affordable 588.00 Ê864.00 508,032 Totals .9@S9, .9,29419q 8,294,400

Contingency 5.00% 414,720 Abnormâls 5.00% 365,126 Abnormals Allowance s.00% 49,594 829,440 Othor Constructlon Externals '10.00% 730,253 NHBC 85.00 un 500.00 /un 42,500 EPC 85.00 un 500.00 /un 42,500 Externals 10.00% 99,1 87 NHBC 15.00 un 500.00 /un 7,500 EPC 15.00 un 500.00 /un 7,500 929,440

PROFESSIONAL FEES Other Profess¡onals 10.O0o/o 730,253 Other Profess¡onals 10.00% 99,1 87 829,440 DISPOSAL FEES Sales Agent F€e 3.50% 907,200 Sales Legal Fee 100.00 un 600.00 /un 60,000 967,200 FINANCE Deb¡t Rate 6.50% Credit Rate 1.50% (Nom¡nal) Total Finance Cost 1,411,456

TOTAL COSTS 20,736,000

PROFIT 5,t84,000

Pelformance Measurgs Prof¡t on Cost% 25.000/0 Prof¡t on GDV% 20.0îo/o Profit on NDV% 20.oo./.

IRR 21.770/0

Profit Eros¡on (fìnance rate 6.500%) 3 yrs 6 mths

File: HIPROJECTS (SharedN2014 SLR VIABILITY AND CIL VIABILITY\ClL - GENERIC RESI SITES - 2014\GENERIC - HIGH - '100 UNITS - NO AFFORDABLE.wcfx ARGUS Developer Version: 5.00.001 Date:03/03/20'15

236 P04 APPRAISAL SUMMARY LICENSED COPY GENERIC IOO UNITS HIGH AFFORDABLE.CITY CENTRE

Summary Appra¡sal for Mêrgêd Phases I 2

REVENUE Salês Valuat¡on Units m' Ralo m2 Un¡t Pr¡ce Gross Sales Adjustment Net Sales 2 bed pr¡vate 12 840.00 €2,700.00 €189,000 2,268,000 0 2,268,000 3 bed pr¡vat€ 33 2,772.OO 82,700.O0 Ê226,800 7,484,400 0 7,484,400 4 bed pr¡vat€ 40 4,840.00 Ê2,700.oo Ê326,700 13,068,000 0 13,068,000 2 bed afforable 8 560.00 €2,700.00 €189,000 '1,512,000 (623,700) 888,300 '1.587.600 3 bêd âffordablê z .ges99. 82,700.OO Ê226,800 t953,999) 932.715 Totals 100 9,600.00 25,920,000 (r,278,585) 24,641,415

NET REALISATION 24,641,415

OUILAY

ACQUtStTtON COSTS Residualised Price 6,O92,925 Stamp Duty 4.00% 243,717 Agent Fee 't.00% 60,929 Legal Fee 0.75% 45,697 6,443,268 coNstRucTtoN cosTs Construction m2 Ratåm" Cost 2 bed pr¡vate 840.00 9864.00 725,760 3 bed private 2,772.OO !864_00 2,3S5,008 4 bod private 4,840.00 !864.00 4,'181,760 2 bed afforable 560.00 Ê864.00 483,840 3 bed affordable 588.00 Ê864.00 508,032 Totals 9.600.00 8.294.400 8,294,400

Cont¡ngency 5.OOo/o 414,720 Abnormals 5.00% 365,126 Abnormals Allowance 5.00% 49,594 829,440 Other Construction Externals 10.00% 730,253 NHBC 85.00 un 500.00 /un 42,500 EPC 85.00 un 500.00 /un 42,500 CITY CENTRE ABNORMALS 5.00% 365,126 Externals 10.00% 99,187 NHBC 15.00 un 500.00 /un 7,500 EPC 15.00 un 500.00 /un 7,500 CITY CENIRE ABNORMALS 5.00% 49,594 '1,344,160

PROFESSIONAL FEES Other Professionals 10-00% 730,253 Other Professionals '10.00./o 99,1 87 829,440 DISPOSAL FEES Sales Agent Fee 3.50% 862,450 Sales Legal Fee 100.00 un 600.00 /un 60,000 922,450 FINANCE Debit Rate 6.50% Credit Rate 1.50% (Nom¡nal) Total Finance Cost 1,302,219

TOTAL COSTS 19,965,377

PROFIT 4,676,038

Profìt on Cost% 23.42% Prol¡t on GDV% 18.98% Prof¡t on NDV% 18.98%

IRR 21.50o/o

Prof¡t Erosion (f¡nance rate 6.500%) 3 yrs 3 mths

F¡le: HTPROJECTS (SharedI2014 SLR VIABILITY AND CIL VIABILIT\1ClL - GENERIC RESI SITES - 2014\GENERIC - HIGH - 100 UNITS - AFFORDABLE-CITY CENTRE.wcfx ARGUS Developer Vers¡on; 5.00.001 Date:03/03/2015

237 P04 APPRAISAL SUMMARY LICENSED COPY GENERIC IOO UNITS HIGH NO AFFORDABLE.CITY CENTRE

Summary Appra¡sal for Morgod Phases I 2

REVÉNUE Salês Valuat¡on Un¡ts m: Ratê m'? Un¡t Pr¡ce Gross Salss 2 bed private 12 840.00 Ê2,700.00 e1 89,000 2,268,000 3 bed private 2,772.00 €2,700.00 f226,800 7,484,400 4 bed private 40 4,840.00 e2,700.00 Ê326,700 13,068,000 2 bed afforable 8 560.00 Ê2,700.00 r1 89,000 1,512,000 3 bed affordable z .þ@99. Ê2,700.00 î226,800 LSgJégg. Totals 100 9,600.00 25,920,000

NET REALISATION 25,920,000

OUÎLAY

ACQUtStTtON COSTS Residual¡sed Price 6,755,1 03 Stamp Duty 4.00% 270,204 Agent Fee 1.00./" 67,551 L€gal Fee o.750/o 50,663 7,143,521 CONSTRUCTION COSTS Conslruction m' Rate m'¡ Cost 2 bed pr¡vate 840.00 Ê864.00 725,760 3 bed private 2,772.00 Ê864.00 2,395,008 4 bed pr¡vate 4,840.00 Ê864.00 4,181,760 2 bed afforable 560.00 Ê864.00 483,840 3 bed affordable 588.00 Ê864.00 508,032 Totals 9.600.00 8.294.400 8,294,400

Contingency 5.O0% 414,720 Abnormals 5.00% 365,126 Abnormals Allowance 5.00% 49,594 829,440 Other ConÊtruct¡on Externals 10.00% 730,253 NHBC 85.00 un 500.00 /un 42,500 EPC 85.00 un 500.00 /un 42,500 CITY CENTRE ABNORMALS 5.00% 365,126 Externals 10.00% 99,187 NHBC 15.00 un 500.00 /un 7,500 EPC 15.00 un 500.00 /un 7,500 1,294,566

PROFESSIONAL FEES Other Professionals 10.00% 730,253 Other Profess¡onals '10.00% 99,1 87 429,440 DISPOSAL FEES Sales Agent Fee 3.500/o 907,200 Sales Legal Fee 100.00 un 600.00 /un 60,000 967,200 FINANCE Deb¡t Rate 6.50% Credit Rate 1.50% (Nom¡nal) Total Finance Cost 1,377,433

TOTAL COSTS 20,736,000

PROFIT 5,r84,000

Profìt on Cost% 25.00./. Prof¡t on GDVo/o 20.00./. Prof¡t on NDV% 2O.0?o/o

IRR 22.07%

Profit Eros¡on (fìnance rate 6.500%) 3 yrs 6 mths

File: HIPROJECTS (Shared)\20'14 SLR VIABILITY AND CIL V|ABlLlmClL - GÉNERIC RESI SIIES - 2014\GENERIC - HIGH - 100 UNITS - NO AFFORDABLE-CITY CENTRE.wcfx ARGUS Developer Version: 5.00.001 Date:03/03/20'15

238 P04 APPRAISAL SUMMARY LICENSED ASSISTED LIVING SCHEME LOW . WITH AFFORDABLE

Summary Appralsal for Morged Phasos I 2

REVENUE Salês Valuation Unlls m'. Rate m2 Unit Prlcê G¡oss Sales Adjustmont Net Salês 1 bed units 24 1,320.00 Ê'1,885.00 Ê103,675 2,488,200 0 2,488,200 2 þed units 10 750.00 Ê1,885.00 t14't,375 1,4't3,750 0 1,4'13,750 'l B€d Units 4 220.O0 Ê1,885.00 Ê1 03,675 4't4,700 (171,064) 243,636 (1 2 B€d Un¡ts z -1q99, e1,885.00 L141,375 292@ 16.6341 Logiu.g Totals 40 2,¡140,00 4,599,400 (287,698) 4,311,702

Rsntal Arêa Summary lnil¡al Net Rent lnlt¡al Units MRV/Unit at Sale MRV 'I Bed Ground Rent 24 8425 10,200 10,200 2 Bed Ground Rent 10 €50 495 495 1 Bed Ground Rents 4 8425 'I,700 1,700 2 Bed Ground Rents z Ê495 99S, .999, Totals 40 13,385 13,385

lnvostmont Valuatlon I B6d Ground Rent Curr€nt Rent 10,200 YP@ 5.0000o/o 20.0000 204,000

Current Rent 495 YP@ 5.0000% 20.0000 9,900 I Bed Ground Rênts Current Rent 1,700 YP@ 5.0000% 20.0000 34,000 2 Båd Ground Rents Current Rent 990 YP@ 5.0000% 20.0000 19,800 267,700

GROSS DEVELOPMENT VALUE 4,579,402

NET REALISATION 4,579,402

OUTLAY

ACQUtStTtON COSTS Residual¡sed Price (1,1 51,642) (1,'t51,642) CONSTRUCTION COSTS Constructlon m' Ratê m'z cost I bed units 1,885.71 â984.00 1,855,543 2 bed units 1,O71.43 €984.00 1,054,286 1 Bed Un¡ts 314.29 e984.00 309,257 2 Bed Un¡ts 214.29 Ê984.00 2',t0,857 Totals 3.485.71 3.429.943 3,429,943

Contingency 5.00% 171,497 't71,497 Other Constructlon Externals 10.00% 290,983 Abnormals 5.00% 145,491 Externals 10.00% 52,011 Abnormals 5.00% 26,006 514,491

PROFESSIONAL FEES Other Professionals 10.00% 290,983 Other Profess¡onals 10.00% 52,011 342,994 DISPOSAL FEES Sales Agent Fee 4.OO% 1 83,176 Sales L€gal Fee 40.00 un 600.00 /un 24,000 207,176 FINANCE Debit Rate 6.50o/o Cred¡t Râte 0.00% (Nominal) Tolal Finance Cost 227,205

TOTAL COSTS 3,741,664

PROFIT 837,738

Prof¡t on Cost% 22.39o/o Profit on GDV% 18.290/. Profìt on NDV% 18.29o/o Development Y¡eld% (on Rent) 0.36% Equ¡valent Y¡eld% (Nominal) 5.00% Equivalent Y¡eld% (True) 5.160/o

IRR 23.350/0

Rent Cover 62 yrs 7 mths Prolìt Eros¡on (f¡nance rate 6.500o/o) 3 yrs 2 mths

File: H:\PROJECTS (SharedI2014 SLR VIABILITY AND CIL VIABILIT\IRESIDENT|AL INSTITUTIONS\LOW - WITH AFFORDABLE.wcfx ARGUS Developer Version: 5.00.001 Date:03/03/2015

239 P04 APPRAISAL SUMMARY LICENSED COPY ASSISTED LIVING SCHEME LOW. NO AFFORDABLE

Summary Appnlsal for Merged Phases I 2

REVENUE Salos valuai¡on Un¡ts m2 Rato m' Un¡t Pr¡ce Gross Sälos 1 bed un¡ts 24 1,320.00 Ê1,885.00 Ê't03,675 2,488,200 2 bed units 10 750.00 Ê1,885.00 Ê1 41,375 1,413,750 1 Bed Units 4 220.OO Ê1,885.00 Ê103,675 414,700 2 Bed Units z lqsq Ê1,885.00 î141,375 292@. Totals 40 2,440,OO 4,599,/100

Rental Area Summary In¡tial Net Rent lnltlal Units MRV/Unlt at Salê MRV 1 Bed Ground Rent 24 î.425 10,200 10,200 2 Bed Ground Rent 10 Ê50 495 495 1 Bêd Ground R6nts 4 î.425 1,700 1,700 2 Bed Ground Rents z Ê4S5 999, .999. Totals 40 13,385 13,385

lnvestmont Valuatlon I Bed Ground Rent Current R€nt 10,200 YP@ 5.0000% 20.0000 204,000 2 Bsd Ground R.nt Current R€nt 495 YP@ 5.0000% 20.0000 9,900 I B€d Ground Rents Current Rent 1,700 YP@ 5.0000% 20.0000 34,000 2 8€d Ground Rents Current Rent 990 YP@ 5.0000% 20,0000 19,800 267,700

GROSS DEVELOPMENT VALUE 4,867,100

NET REALISATION 4,867,r00

OUTLAY

ACQUtStflON COSTS Res¡dualised Price (1,002,355) (1,002,355) CONSTRUCTION COSTS Constructlon m2 Rate m'z Coat 1 bed units 1,885.71 Ê984.00 1,855,543 2 bed un¡ts 1,071.43 e984.00 1,054,286 1 Bed Units 314.29 Ê984.00 309,257 2 Bed Units 214.29 Ê984.00 210,857 Totâls 3.485.71 3,!29Æ. 3,429,943

Contingency 5.00% 171,497 171,497 Othor Construction Externals 10.00% 290,983 Abnormãls 5.00% 145,491 Externals 10.00% 52,O11 Abnormals 5.Aoo/o 26,006 514,491

PROFESSIONAL FEES Other Prof€ssionals 10.00% 290,983 Other Professionals 10.o0% 52,011 342,994 DISPOSAL FEES Sales Agent Fee 4.0O'/o 194,684 Sales Legal Fee 40.00 un 600.00 /un 24,000 2'18,684 FINANCE Deb¡t Rate 6.50% Credit Rate 0.00% (Nominal) Total Finance Cost 2't7,O74

TOTAL COSTS 3,892,329

PROFIT 974,771

Porformancê Mêasures Prof¡t on Cost% 25.O4o/o Prof¡t on GDV% 2O.O3o/o Profìt on NDV% 20.O3o/o Development Yield% (on Rent) 0.34o/o Equivalent Yield% (Nom¡nal) 5.00% Equivalent Yield% (True) 5.16%

IRR 25.880/0

Ront Cover 72 yrs 10 mths Prof¡t Erosion (fÌnance rate 6.500%) 3 yrs 6 mths

File: H:\PROJECTS (Shared)U014 SLR VIABILITY AND CIL VIABILITIIRESIDENT|AL INSTITUTIONS\LOW NO AFFORDABLE.wcfx ARGUS Developer Version: 5.00.001 Date:03/03/2015

240 P04 APPRAISAL SUMMARY LICENSED COPY ASSISTED LIVING SCHEME LOW MID . WITH AFFORDABLE

Summary Apprâlsal for Merged Phases I 2

REVENUE Sales Valuat¡on Unlts m'z Rate m' Unlt Prlce Gross Sales Ad¡ustmont Net Sal€s 1 bed un¡ts 24 1,320.00 î2,145.00 î.117,975 2,831,400 0 2,831,400 bêd un¡ts 10 750.00 22,145.00 â160,875 I,608,750 0 1,608,750 Bed Units 4 220.O0 Ê2,145.00 8117,975 471,900 (194,659) 277,24'l Bed Units z 1qsg €2,145.00 e160,875 32!-@. lJ32&) 1e9.0æ Totals 40 2,440.00 s,233,800 (327,381) 4,906,419

Ronlal Area Summary lnltlal Nåt Rent ln¡t¡al Unlts MRV/Unlt at Sale MRV 1 Bed Ground Rent 24 t425 10,200 10,2öO 2 Bed Ground Rent 10 Ê50 495 495 1 Bed Ground Rents 4 Ê425 1,700 1,700 2 Bed Ground R€nts Ê495 "99 999, Totals 4õ 13,385 r3,385

lnvestment Valuatlon

Cunent Rent 10,200 YP@ 5.0000% 20.0000 204,000 2 Bod Ground Rent Currênt Rênt 495 YP@ 5.0000% 20.0000 9,900 I Bed Ground Rents Current Rent 1,700 YP@ 5.0000% 20.0000 34,000 2 Bed Ground Rents Curr€nt R€nl 990 YP@ 5.0000% 20.0000 19,800 267,700

GROSS DEVELOPMENT VALUE 5,174,1'19

NET REALISATION 5,174,119

OUILAY

ACQUTSTTTON COSTS Residualised Price (730,873) (730,873) CONSTRUCTION COSTS Construction m2 Rate m'i Cost I b€d un¡ts 1,885.71 Ê984.00 1,855,543 2 bed units 't,071.43 €984.00 1,054,286 'I Bed Units 314.29 e984.00 309,257 2 B€d Un¡ts 214.29 Ê984.00 210,A57 Totals 3.445.71 3.429.943 3,429,943

Cont¡ngèncy 5.00% 171,497 171,497 Othor Constructlon Externals 10.00% 290,983 Abnormals 5.OO% 145,491 Externals 10.00% 52,O11 Abnormals 5.00% 26,006 514,49'l

PROFESSIONAL FEES Other Professionals 10.oo% 290,983 Other Professionals 10.o0% 52,011 342,994 DISPOSAL FEES Sales Agent F€e 4.006/. 206,965 Sales Legal Fee 40.00 un 600.00 /un 24,000 230,965 FINANCE Debit Rate 6.50% Credit Rate 0.00% (Nominal) Total Finance Cost 267,847

TOTAL COSTS 4,226,864

PROFIT 947,255

Prof¡t on Cost% 22.41o/o Prof¡t on GDVo/. 18.31o/o Profit on NDV% 18.310/o Development Yield% (on Rent) 0.32o/o Equivalent Y¡eld% (Nom¡nal) 5.00% Equivalent Yield% (True) 5.160/0

IRR 21.960/0

Rent Cov€r 70 yrs I mths Proflt Erosion (f¡nance ratê 6.500%) 3 yrs 2 mths

F¡le: HIPROJECTS (Shared)\2014 SLR VIABILITY AND CIL VIABILIT\IRESIDENT|AL INSTITUTIONS\LOW ¡/lD - WITH AFFORDABLE.wcfx ARGUS Developer Version: 5.00.001 Date:03/03/2015

241 P04 APPRAISAL SUMMARY LICENSED COPY ASSISTED LIVING SCHEME LOW MID. NO AFFORDABLE

Summary Appnlsal tor Merged Phasos I 2

REVENUE SaleE Valuation unlts m2 Rate m' Unit Pr¡ce Gross Salos I bed units 24 1,320.00 €2,145.00 L1't7,975 2,831,400 2 bêd units 10 750.00 Ê2,145.00 €160,875 1,608,750 'I Bed Un¡ts 4 220.O0 €2,145.00 1't17,975 471,900 2 Bed Units z 150.00 î2,145.00 I 160,875 3¿1J59. Totals 40 2,¡140.00 5,233,800

Rsntal Area Summary lnlt¡al Net Rsnt lnlllal unlts MRV/Un¡t at Salê MRV 1 Bed Ground Rent 24 î425 10,200 '10,200 2 Bed Ground Rent 10 Ê50 495 495 1 Bod Ground Rents 4 1425 1,700 1,700 2 Bêd Ground Rents z Ê495 99S, .999 Totals 40 13,385 13,385

I Bod Ground Rent Current Rent '10,200 YP@ 5.0000o/o 20.0000 204,000 2 Bed Ground Ront Curent Rent 495 YP@ 5.0000% 20.0000 9,900

Current Rent 1,700 YP@ 5.0000% 20.0000 34,000 2 Bed Ground Ronts Current Rent 990 YP@ 5.0000% 20.0000 19,800 267,700

GROSS DEVELOPMENT VALUF 5,501,500

NET REALISATION 5,50r,500

OUTLAY

ACQUTStTtON COSTS Residual¡sed Priæ (560,820) (560,820) CONSTRUCTION COSTS Constructlon mz Rato m" Cost 1 bed un¡ts 1,885.71 Ê984.00 1,855,543 2 bed un¡ts 1,O71.43 Ê984.00 1,054,286 'I Bed Units 3't4.29 Ê984.00 309,257 2 Bed Units 2't4.29 €984.00 210,857 Tolâls 3.485.71 3,429.943 3,429,543

Contingency 5.00% 17't,497 171,497 Other Construction Externals 10-00% 290,983 Abnormals 5.00o/o 145,491 Externals 10.00% 52,011 Abnormals 5.00% 26,006 5 14,491

PROFESSIONAL FEES Othêr Professionals 10.00% 290,983 Other Professionals 10.000/ô 52,O't1 342,994 DISPOSAL FEES Sales Agent Fee 4.OO% 220,060 Sales Legal Fee 40.00 un 600.00 /un 24,O00 244,060 FINANCE Debit Rate 6.50% Credit Rate 0.00% (Nominal) Total F¡nanæ Cost 257,474

TOTAL COSTS 4,399,640

PROFIT I,10t,860

Porformanca Measures Prof¡t on Cost% 25.040/. Profit on GDV% 20.030/0 Profìt on NDVo/. 20.o30/. Development Yield% (on Rent) 0.30% Equivalent Yi€ld% (Nominal) 5.00% Equivalenl Y¡eld% (True) 5-160/.

IRR 24.31%

Rent Cov€r 82 yrs 4 mths Prof¡t Erosion (f¡nance rate 6.500%) 3 yrs 6 mths

File: HIPROJECTS (Shared[2014 SLR VIABILITY AND CIL VIABILIT\IRESIDENTIAL INSTITUTIONS\LOW MID - NO AFFORDABLE.wcfx ARGUS Developer Version: 5.00.001 Date:03/03/2015

242 P04 APPRAISAL SUMMARY LICENSED COPY ASSISTED L¡VING SCHEME MID . WITH AFFORDABLE

Summâry Apprâlsal tor Msrged Phâsss I 2

REVENUE Sales Valuat¡on lJnits m2 Rate m'z Un¡t Pr¡ce Gross Sales Ad¡ustment Not Salos 'I bed un¡ts 24 1,320.00 e2,438.00 !134,090 3,21 8,160 0 3,218,160 2 bed units 10 750.00 Ê2,438.00 €182,850 1,828,500 0 1,828,500 1 Bed Units 4 220.OO e2,438.00 1134,090 536,360 (221,249) 3't5,1't2 2 Bed trnits z lsspg Ê2,438.00 Ê182,8s0 395.299. ll-Ðégu 2l!Æ. Totals 40 2,440.00 5,948,720 (372,100) s,s76,620

Rontal Area Summary ln¡t¡al Net Rent ln¡t¡al un¡ts MRV/Un¡t at Sale MRV 'I Bed Ground Rent 24 î425 10,200 10,200 2 Bed Ground Rent 10 Ê50 495 495 1 Bed Ground Rents 4 î425 1,700 1.700 2 Bed Ground Rents , Ê495 .999. .999, Totals 4õ 3,385 13,385

I Bod Ground Rent Current Rent 10,200 YP@ 5.0000% 20.0000 204,000 2 Bed Ground Ronl Current Rent 495 YP@ 5.0000% 20.0000 9,900 I Bed Ground Rents Curr€nt Rant 1,700 YP@ 5.0000% 20.0000 34,000 2 Bed Ground Ronts Current Rent 990 YP@ 5.0000% 20.0000 19,800 267,700

GROSS DEVELOP¡/ENT VALIJE 5,444,320

NET REALISATION 5,844,320

OUTLAY

ACOUtStTtON COSTS Residualised Pr¡ce (276,629) 1276,629',) CONSTRUCTION COSTS Construct¡on m2 Rate m' Cost 1 bed units 1,885.71 Ê984.00 '1,855,543 2 bôd un¡ts 1,07't.43 Ê984.00 I,054,286 I Bed Un¡ts 314.29 Ê984.00 309,257 2 Bed Units 2'14.29 1984.00 210,857 Totals 3.4B5.71 3.429.943 3,429,943

Contingency 5.00% 171,497 171,497 Other Construct¡on Externals 10.00o/o 290,983 Abnormals 5.00% 145,491 Externals 10.00% 52,011 Abnormãls 5.00% 26,006 5't4,49'l

PROFESSIONAL FEES Other Professiona¡s 10.00% 290,983 Other Profess¡onals 10.00% 52,O11 342,994 DISPOSAL FEES Sales Agent Fee 4.O00/o 233,773 Sales L€gal Fee 40.00 un 600.00 /un 24,000 257,773 FINANCE Debit Rate 6.50% Credit Rate 0.00% (Nom¡nal) Total F¡nance Cost 313,'187

TOTAL COSTS 4,753,257

PROFIT r,091,064

Performance M€asuros Profit on Cost% 22.95y" Profìl on GDV% 't8.670/. Profìt on NDV% 't8.671o Development Yield% (on Rent) o.28./" Equival€nt Yield% (Nom¡nal) 5.00o/o Equivalent Yield% (True) 5.16./.

IRR 21.35o/o

Rent Cover 81 yrs 6 mths Profìt Erosion (finance rate 6.500%) 3 yrs 2 mths

F¡le: HIPROJECTS (Shared)\2014 SLR VIABILITY AND CIL VIABILITìIRESIDENT|AL INSTITUTIONS\¡iìlD - WITH AFFOROABLE.wcfx ARGUS Develop€r Versìon: 5.00.001 Date:03/03/2015

243 P04 APPRAISAL SUMMARY LICENSED COPY ASSISTED LIVING SCHEME MID. NO AFFORDABLE

Summary Appra¡sal for Merged Phases I 2

REVENUE Sales Valuation Units m2 Rate m2 Unit Pdc€ Gross Salês I bêd units 24 1,320.00 !2,438.00 €134,090 3,218,1 60 2 bed units '10 750.00 â2,438.00 Ê182,850 1,828,500 1 Bed Units 4 220.OO !2,438.00 Ê134,090 536,360 2 Bed Units z 159{q €2,438.00 €1 82,850 395JSq Totals 40 2,¿140.00 5,948,720

Rsntal Area Summary lnltlal Net Rent lnltlal Un¡ts MRV/Un¡t at Sale MRV 1 Bed Ground Rent 24 8425 '10,200 10,200 2 Bed Ground Rent 10 Ê50 495 495 I Bed Ground Rênts 4 î425 1,700 1,700 2 Bed Ground Rents Ê495 .9,9S, 990 Totals 4õ 13,385 13,385 lnvestmont Valuation I Bod Ground Ront Current Rent 10,200 YP@ 5.0000% 20.0000 204,000 2 B6d Ground Rent Current Rent 495 YP@ 5.0000% 20.0000 9,900 I Bsd Ground Rents Cunent Rent 1,700 YP@ 5.0000% 20.0000 34,000

Current Rent 990 YP@ 5.0000% 20_0000 19,800 267,700

GROSS DEVELOPMENT VALUE 6,216,420

NET REALISATION 6,216,420

OUTLAY

ACQUtStTtON COSTS R€sidualis€d Price (68,528) Slamp Duty 4.0oo/o 1,110 Agent F€e 1.O0o/o 277 Legãl Fee o.75./. 208 (66,933) CONSTRUCTION COSTS Construction m'z Rate m'z Cost 1 bed un¡ts 1,885.71 Ê984.00 1,855,543 2 bed un¡ts 1,071.43 Ê984.00 1,054,286 1 Bed Units 314.29 Ê984.00 309,257 2 Bed Units 214.29 Ê984.00 210,A57 Totals 3.485.71 3.429.943 3,429,943

Cont¡ngency 5.00% 't71,497 171,497 Othsr Construct¡on Externals 10.00% 290,983 Abnormals 5.OOo/o 145,491 Externals 10.00% 52,011 Abnormals 5.00% 26,006 514,491

PROFESSIONAL FEES Other Profess¡onãls 't0.000/0 290,983 Othêr Prof€ss¡onals 10.00% 52,O11 342,994 DISPOSAL FEES Sales Agênt Fee 4.O0o/o 244,657 Sales Legal Fee 40.00 un 600.00 /un 24,000 272,657 FINANCE Deb¡t Rate 6.50% Cred¡t Rat€ 0.00% (Nominal) Total Finanæ Cost 306,602

TOTAL COSTS 4,971,251

PROFIT 1,245,169

Psrformance M6asures Profit on Cost% 25.050/0 Profit on GDV% 2O.03o/o Profìt on NDV% 20.03./. Development Yield% (on Rent) 0.270/o Equivâlent Yield% (Nom¡nal) 5.00% Equivalent Y¡eld% (True) 5.160/"

IRR 23.21V"

Rent Cover 93 yrs Prof¡t Erosion (fìnance rate 6.500%) 3 yrs 6 mths

File: HIPROJECTS (Shared)\2014 SLR VIABILITY AND CIL VIABILIT\IRESIDENT|AL INSTITUTIONS\[illD - NO AFFORDABLE.wcfx ARGUS Developer Version: 5.00.001 Date:03/03/2015

244 P04 APPRAISAL SUMMARY LICENSED COPY ASSISTED LIVING SCHEME HIGH MID . WITH AFFORDABLE

Summary Apprâlsal tor Morgêd Phases I 2

REVENUE Sales Valuation Unlts m2 Rate m'z Unlt Prlcê Gross Salås AdjustmBnt Not Salos 1 bed un¡ts 24 1,320.00 Ê2,925.00 Ê160,875 3,861,000 0 3,861,000 2 bed units 10 750.00 î2,925.O0 8219,375 2,193,750 0 2,193,750 1 Bed Units 4 220.OO î2,925.00 Ê160,875 643,500 (26s,444) 378,056 2 B6d units 1q99. Ê2,925.00 8219,375 1,39J59. (1 80.984) 2þlÆ9. Totâls 4õ 2,440.00 7,137,000 (446,4281 6,690,572

Rontal Arsa Summary lnltlal Net Rent lnitiål Unlts MRV/Un¡t at Sale MRV 1 Bed Ground Rsnt 24 Ê.425 10,200 10,200 2 Bed Ground Rent 10 Ê50 495 495 1 Bed Ground Rents 4 Ê425 I,700 1,700 2 Bed Ground Rents z e495 999. 990 Totals 40 13,385 r3,385

lnvostmsnt Valuatlon I Bod Ground Ront Current Renl 10,200 YP@ 5.0000% 20.0000 204,000

Curr€nt Rent 495 YP@ 5.0000% 20.0000 9,900 I Bsd Grou¡d Rents Curent Rent 1,700 YP@ 5.0000% 20.0000 34,000 2 B€d Ground Rents Current Rent 990 YP@ 5.0000% 20.0000 19,800 267,700

GROSS DEVELOPMENT VALUE 6,958,272

NET REALISATION 6,958,272

OUÏLAY

ACOUtStTtON COSTS R€sidual¡sed Pr¡æ 465,905 Stamp Duty 4.OOo/o 21,519 Agent Fee 1.00% 5,380 Legal F€e 0.750/o 4,035 496,838 CONSTRUCTION COSTS Constructlon m2 Rate m2 Cost 1 bed units 1,885.71 t984.00 1,855,543 2 b€d un¡ts 't,07't.43 Ê984.00 1,054,286 1 Bed Un¡ts 314.29 €984.00 309,257 2 Bed Units 214.29 Ê984.00 210,857 Totals 3.485.7't 3.429.943 3,429,943

Contingency 5.000/0 17't,497 171,497 Oth€¡ Constructlon Externals 10.00% 290,983 Abnormals 5.00% '145,491 Externals 10.00% 52,011 Abnormâls 5.00ô/ô 26,006 5't4,491

PROFESSIONAL FEES Oth€r Professionals 10.00% 290,983 Other Professionals 10.000/. 52,O't'l 342,994 DISPOSAL FEES Sales Agent Fee 4.OOo/. 278,331 Sales Legal Fee 40.00 un 600-00 /un 24,000 302,331 FINANCÊ Debit Rate 6.50% Credit Rate 0.00% (Nominal) Total Finance Cost 401,213

TOIAL COSTS 5,659,308

PROFIT 1,298,964

Profìt on Cost% 22.95o/o Prol¡t on GDV% 't8.670/o Prol¡t on NDV% 18.67o/o Dêvelopment Y¡eld% (on Renl) O.24o/o Equ¡valent Yiâld% (Nominal) 5.00% Equ¡valent Yield% (True) 5.160/.

IRR 20.370/0

R€nt Cover 97 yrs 1 mth Prof¡t Erosion (f¡nanco rate 6.500%) 3 yrs 2 mths

F¡le: HTPROJECTS (SharedN2014 SLR VIABILITY AND CIL VIABILIT\IRESIDENT|AL INSTITUTIONS\HIGH MID - WITH AFFORDABLE.wcfx ARGUS Developer Version: 5.00.001 Datê:03/03/2015

245 P04 APPRAISAL SUMMARY LICENSED COPY ASSISTED LIVING SCHEME HIGH MID - NO AFFORDABLE

Summary Appra¡sal for Merged Phases I 2

REVENUE Salss Valuation Unlts m2 Rate m" Unlt Pr¡cê Gross Salos 1 bed units 24 1,320.00 Ê2,925.00 Ê160,875 3,861,000 2 bed units 10 750.00 â2,925.00 t219,375 2,1 93,750 1 Bed Units 4 220.00 t2,925.00 Ê160,875 643,500 2 Bed Units z 1qss. Ê2,925.00 î219,375 lgg¿59. Totals 40 2,440.O0 7,137,000

Rental Arêa Summary lnltlal Not Ront ln¡t¡al Unlts MRV/Unlt at Salå MRV 1 Bed Ground Rent 24 1425 10,200 10,200 2 Bed Ground Rent 10 Ê50 495 495 '1 Bed Ground Rents 4 Ê.425 1,700 1,700 2 Bed Ground Rents z €495 9e0 .999. Totãls 40 13,385 13,385

lnvestmånt Valuatlon I Bed Ground Rent Current Rent 'to,200 YP@ 5.00000/o 20.0000 204,000 2 B.d Ground Rent Current Rent 495 YP@ 5.0000% 20.0000 9,900 I Bêd Ground Ronts Current Rent 1,700 YP@ 5.0000% 20.0000 34,000 2 8od Ground Ronts Currênt Rent 990 YP@ 5.0000% 20.0000 '19,800 267,700

GROSS DEVELOPMENT VALUE 7,404,700

NET REALISATION 7,404,700

OUTLAY

ACQUTSTTTON COSTS Residualised Price 711,O73 Stamp Duty 4.O00/õ 28,443 Agent Fee '1.00% 7,'t11 Legal Fee 0.750/o 5,333 751,959 CONSTRUCTION COSTS Construcl¡on m' Ratê m'? Cost bed un¡ts 1,885.71 €984.00 1,855,543 bêd unils 1,071.43 Ê984.00 1,054,286 Bed LJnits 314.29 e984.00 309,257 Bed Units 214.29 Ê984.00 210,857 Totals .3@! 3.429.943 3,429,943 Cont¡ngency 5.00% 171,497 171,497 Othor Construction Externals 10.o00/o 290,983 Abnormals 5.00% 145,491 Externals 10.00% 52,011 Abnormals 5.00% 26,006 514,491

PROFESSIONAL FEES Other Prof€ssionals '10.00% 290,983 Other Profess¡onals 10.00% 52,O1',! 342,994 DISPOSAL FEES Sales Agent Fee 4.O00/" 296,188 Sales Legal F€e 40.00 un 600.00 /un 24,OOO 320,188 FINANCE Debit Rate 6.50o/o Credit Rate 0.00% (Nominal) Total F¡nânæ Cost 395,350

TOTAL COSTS 5,926,423

PROFIT 1,478,277

Prof¡t on Cost% 24.940/0 Profit on GDV% 19.96% Profìt on NDV% 't9.960/0 Development Yield% (on Rent) o.230/0 Equivalent Yiêldo/o (Nominal) 5.000/0 Equivalent Yield% (True) 5.160/0

IRR 22.070/o

R€nt Covêr 1 10 yrs 5 mths Profìt Eros¡on (fìnance rate 6.500%) 3 yrs 5 mths

F¡le: HIPROJECTS (Shared)U014 SLR VIABILITY AND CIL VIABILITY\RESIDENTIAL INSTITUTIONS\HIGH MID - NO AFFORDABLE.wcfx ARGUS Develop€r Version: 5.00.001 Date:03/03/2015

246 P04 APPRAISAL SUMMARY LICENSED COPY ASSISTED LIVING SCHEME HIGH . WITH AFFORDABLE

Summary Appraisal for Morged Phases I 2

REVENUE Sales Veluat¡on Units m'. Rate m' Unit Pr¡ce Gross Salðs AdJustmont Net Salss

1 bed units 24 1,320.00 €3,510.00 € 1 93,050 4,633,200 0 4,633,200 2 b€d un¡ts '10 750.00 r3,510.00 8263,250 2,632,500 0 2,632,500 1 Bed Unils 4 220.00 Ê3,5 10.00 Ê193,050 772,200 (31 8,533) 453,668 2 Bed Units z 1q9q €3,510.00 Ê263,250 526.500 !2!tß1) 399.919. Totals 40 2,440.00 8,564,400 (s35,7r4) 8,028,686

Rêntal Area Summary lnltial Nåt Rènt lnltlal Un¡ts MRV/Unlt at Sale MRV 1 Bed Ground Rent 24 Ê425 10,200 '10,200 2 Bed Ground Rent 10 Ê50 495 495 1 Bed Ground Rents 4 î.425 1,700 1,700 2 Bed Ground Rents €495 999. .999, Totals 4õ 13,385 13,385

Current Rent '10,200 YP@ 5.0000% 20.0000 204,000 2 Bod G¡ound Ront Cunent Rent 495 YP@ 5.00000/" 20.0000 9,900 I Bed Ground Rents Current Rent 'I,700 YP@ 5.0000% 20.0000 34,000 2 Bod Ground Rånts Current Rent 990 YP@ 5.0000% 20.0000 19,800 267,700

GROSS DEVELOPMENT VALUE 8,296,386

NET REALISATION 8,296,386

OUTLAY

ACOUTSTilON COSTS Res¡dual¡sed Price 1,347,139 Stamp Duty 4.000/0 53,886 Ag€nt Fee 1.00% '13,471 Legal Fa€ o.75% 10,104 't,424,600 coNSTRUCTtON COSTS Construct¡on m'z Ratêm'¡ Cost 1 bed un¡ts 1,885.71 €984.00 1,855,543 2 b€d units 1,O71.43 e984.00 1,054,286 1 Bed Un¡ts 314.29 e984.00 309,257 2 Bed Units 214.29 f984.00 210,857 Totâls 3.4rgz.r. 3.429.943 3,425,943

Cont¡ngency 5.00% '171,497 17 1,497 Other Construction Externals '10.00% 290,983 Abnormals 5.00% 145,491 Exlernals 10.00% 52,O11 Abnormals 5.00% 26,006 514,491

PROFESSIONAL FEES Other Professionals 10.00% 290,983 Other Professionals 10.000/. 52,011 342,994 DISPOSAL FEES Sales Agent Fee 4.OOo 331,855 Sales L€gal Fee 40.00 un 600.00 /un 24,O00 355,855 FINANCE Debit Rate 6.50o/o Cred¡t Rate 0.00% (Nom¡nal) ïotal Financa Cost 508,074

TOTAL COSTS 6,747,455

PROFIT 1,548,932

P€rformance Measures Prof¡t on Cost% 22.960/o Profit on GDV% 18.670/o Profit on NDVo/. 18.670/o Devêlopment Yield% (on Rent) O.20o/o Equ¡valent Yield% (Nominal) 5.00% Equ¡valent Yield% (Tru6) 5.160/Ò

IRR 19.66%

Rent Cover 115 yrs I mths Prof¡t Erosion (f¡nance rate 6.500%) 3 yrs 2 mths

F¡le: H:\PROJECTS (Shared)\2014 SLR VIABILITY AND CIL VIABILIT\IRESIDENT|AL INST¡TUTIONS\HIGH - WITH AFFORDABLE.wcfx ARGUS Deve¡oper Vers¡on: 5.00.001 Dat6:03/03/2015

247 P04 APPRAISAL SUMMARY LICENSED COPY ASSISTED LIVING SCHEME HIGH . NO AFFORDABLE

Summary Appraisal for M€rgêd Phases I 2

REVENUE Sales Valuation Unlts m'¿ Rate m' Unlt Pr¡co Gross Salss 1 b€d un¡ts 24 1,320.00 e3,510.00 e193,050 4,633,200 2 bed units 10 750.00 !3,510.00 2263,250 2,632,500 1 B€d Un¡ts 4 220.O0 Ê3,510.00 Ê1 93,050 772,200 2 Bed Units 2 1q99. €3,510.00 f263,250 529.9S9. Totals 40 2,440,00 8,564,400

Rèntal Area Summary lnltlal Nåt Rent lnltlal Unlts MRV/Unlt ãt Sale MRV '1 Bed Ground Rent 24 Ê425 10,200 10,200 2 Bed Ground Rent 10 €50 495 495 I Bed Ground Rents 4 Ê425 1,700 1,700 2 Bed Ground R€nts z Ê495 99S, 990 Totals 40 13,385 3,385

I Bed Ground R€nt Current Rent 10,200 YP@ 5.0000% 20.0000 204,000 2 Bod Ground Rent Current Rent 495 YP@ 5.0000% 20.0000 9,900

Cu¡rent Rent 1,700 YP@ 5.0000% 20.0000 34,000 2 Båd Ground Rents Curent Rent 990 YP@ 5.0000% 20.0000 19,800 267,700

GROSS DEVELOPMENT VALUE 8,832,100

NET REALISATION 8,832,100

OUTLAY

ACQUtStTtON COSTS Res¡dualised Price 1,637,331 Stamp Duty 4.OO% 65,493 Agent F€e 1.00% '16,373 L€gal Fee 0.750/ 12,280 1,731,474 CONSTRUCTION COSTS Conatruction m2 Rato m'z Cost 1 bed units 1,885.71 €984.00 1,855,543 2 bed units 't,o71.43 Ê984.00 1,054,286 1 Bed tJn¡ts 314.29 e984.00 309,257 2 Bod Units 214.29 Ê984.00 210,857 Totals [email protected] .g¿¿cÉ13 3,429,943

Contingency 5.00% 171,497 171,497 Other Construction Externals 10.00% 290,983 Abnormals 5.00% 145,491 Exlernals 10.00% 52,O1'l Abnormals 5.00% 26,006 514,491

PROFESSIONAL FEES Other Professionals '10.00% 290,983 Other Profess¡onals 10.00% 52,011 342,994 DISPOSAL FEES Sal€s Agent Fee 4.O00/o 353,284 Sal€s Legal Fee 40.00 un 600.00 /un 24,000 377,284 FINANCE D€bit Rate 6.50% Cred¡t Rate 0.00% (Nominal) Total Finanæ Cost 501,123

TOTAL COSTS 7,068,8't0

PROFIT 1,763,290

Pertormanco Moasuros Profit on Costo/o 24.94o/o Prof¡t on GDV% 19.96% Pro1lt on NDV% 19.96% Development Yield% (on Rent) 0.19'/o Equivalent Yield% (Nominal) 5.09o/o Equivalent Yield% (True) 5.160/o

IRR 21.28o/o

Rent Cover ót yrs I mths Profìt Erosìon (f¡nance rate 6.500%) 3 yrs 5 mths

File: HIPROJECTS (Sharêd)U014 SLR VIABILITY AND CIL VIABILIT\IRESIOENT|AL INSTITUTIONS\HIGH - NO AFFORDABLE.wcfx ARGUS Developer Version: 5.00.001 Date:03/03/2015

248 P04 APPRAISAL SUMMARY LICENSED ASSISTED LIVING SCHEME CITY CENTRE . WITH AFFORDABLE

Summary Appraisal for Mergod Phases I 2

REVENUE Sales Valuation Unlts m2 Rate m' Unlt Pr¡ce Gross Salss Adjustment Net Sales 1 bed units 24 1,320.00 Ê3,510.00 Ê193,050 4,633,200 0 4,6s3,200 2 bed units 10 750.00 Ê3,510.00 Ê263,250 2,632,500 0 2,632,500 1 Bed Un¡ts 4 220.OO Ê3,510.00 Ê193,050 772,200 (318,533) 453,668 2 Bed Un¡ts z 1q9q Ê3,510.00 1263,250 529.999. Q17.'t81\ 3!9.æ Totals 40 2,4r'.O,OO 8,564,,t00 (535,714) 8,028,686

Rental Area Summary lnit¡al Nèt Rênt lnltial Unlts MRV/UniT at Sale MRV 'l Bed Ground Rent 24 Ê.425 10,200 10,200 2 Bêd Ground Rent 10 !495 4,950 4,950 1 Bed Ground Rents 4 t425 1,700 1,700 2 Bed Ground Rents Ê495 999, 99S Tolals 4õ 17,8/t0 17,840

lnvestment Valuat¡on I Bed Ground Rent Curr€nt Rent 10,200 YP@ 5.0000% 20.0000 204,000 2 Bed Ground Rent Current Rent 4,950 YP@ 5.0000% 20.0000 99,000 I Bod Ground Ronts Current Rent 1,700 YP@ 5.0000% 20.0000 34,000

Currênt Rent 990 YP@ 5.0000% 20.0000 19,800 356,800

GROSS DEVELOP|\ilENT VALUE 8,385,486

NET REALISATION 8,385,486

OUTLAY

ACQUTSTilON COSTS Ros¡duâl¡s6d Price 1,252,295 Stamp Duty 4.O0./. 50,092 Agent Fee '1.o0./" 12,523 Legal Fee o.750/o 9,392 't,324,302 CONSTRUCTION COSTS Construcl¡on m'¿ Rate m'z cost 1 bed units 1,885.71 Ê984.00 1,855,543 2 bêd units 1,O71.43 Ê984.00 r,054,286 1 Bed Units 314.29 Ê984.00 309,257 2 Bed Units 214.29 Ê984.00 210,857 Totals @2.! 3.429.943 3,429,943

Contingency 5.00% 17'1,497 't71,497 Other Construct¡on Externals 10.00% 290,983 Abnormals 5.00% 145,491 City Centre Abnormals 5.00% 145,491 Externals 10.00% 52,011 Abnôrmâls 5.00% 26,006 C¡ty Centre Abnormals 5.00% 26,006 685,989

PROFESSIONAL FEES Other Professionals 10.00% 290,983 Other Profess¡onals 10.00% 52,011 342,994 DISPOSAL FEES Sales Agent Fee 4.O0o/o 335,419 Sales Legal Fee 40.00 un 600.00 /un 24,OOO 359,419 FINANCE Debit Rate 6.50% Cred¡t Rate 0.00% (Nominal) Total Finance Cost 504,686

TOTAL COSTS 6,818,831

PROFIT 1,566,656

Profit on Cost% 22.98% Profit on GDV% '18.68% Profit on NDVo/o 18.681o Development Yield% (on Rent) 0.26% Equivalent Yield% (Nominal) 5.00% Equivalent Y¡eld% (True) 5.16%

IRR 19.86y"

Rênt Côvêr 87 yrs 10 mths Prof¡t Erosion (finance rate 6.500%) 3 yrs 2 mths

F¡le: HIPROJECTS (Shared)\2014 SLR VIABILITY AND CIL VIABILITY\RESIDENTIAL INSTITUTIONS\CITY CENTRE - WITH AFFORDABLE.wcfx ARGUS Developer Version: 5.00.001 Dâte:06/03/2015

249 P04 APPRAISAL SUMMARY LIGENSED COPY ASSISTED LIVING SCHEME CITY CENTRE. NO AFFORDABLE

Summary Appralsal for Morgod Phasos I 2

REVENUE Salos Valuation Un¡ts m'¡ Ralo m' Unit Pr¡cè Gross Salês 1 bed units 24 1,320.00 Ê3,510.00 Ê193,050 4,633,200 2 bed units '10 750.00 Ê3,510.00 8263,250 2,632,500 1 Bed Un¡ts 4 220.O0 Ê3,510.00 Ê 193,050 772,200 2 Bed Un¡ts z L999. Ê3,510.00 8263,250 529é@ Totals 40 2,440,00 8,564,¡O0

Rêntal Area Summary ln¡tlal Nat Ront lnltlal Un¡ts i¡lRV/Unlt at Salê MRV 1 Bed Ground Rent 24 Ê.425 10,200 '10,200 2 Bed Ground Rent 10 Ê50 495 495 1 Bed Ground Rents 4 î.425 1,700 1,700 2 Bed Ground Rents z Ê495 990 990 Totals 40 13,385 13,385

lnvestment Valuat¡on I Bod Ground Rent Current Rent 10,200 YP@ 5.0000% 20.0000 204,000 2 Bed Ground Rent Current Rent 495 YP@ 5.0000% 20.0000 9,900 t Bsd Ground R€nts Current Rent 1,700 YP@ 5.0000% 20.0000 34,000 2 Bod Ground Ronts Curr€nt Renl 990 YP@ 5.0000% 20.0000 19,800 267,700

GROSS DEVELOPMENT VALUE 8,832,100

NET REALISATION 8,832,100

OUILAY

ACQUtStTtON COSTS Residualised Price 1,448,426 Stamp Duty 4.OO% 57,937 Agent Fee 't.00% 14,484 Legal Fee 0.75% 10,863 't,531,711 coNsTRucTtoN cosrs Constructlon m'z Ratê m'¡ cost 'I bed un¡ls 1,885.71 e984.00 1,855,543 2 bed un¡ts 1,O71.43 €984.00 1,054,286 1 Bed Units 314.29 €984.00 309,257 2 Bed Units 214-29 Ê984.00 210,857 Totals .s@2.! 3.429.943 3,429,943

Contingency 5.00% 171,497 't71,497 Other Constructlon Externals 10.00% 290,983 Abnormals 5.00% 't45,491 City Centre Abnormals 5.00% '145,491 Externals 10.00% 52,011 Abnormals 5.00% 26,006 C¡ty Centre Abnormals 5.00% 26,006 685,989

PROFESSIONAL FEES Othêr Profêssionâls 10.00% 290,983 Other Professionals 10.00% 52,01 1 342,994 DISPOSAL FEES Sales Agent Fee 4.O0Vo 353,284 Sales Legal Fee 40.00 un 600.00 /un 24,O00 377,284 FINANCE Debit Rate 6.50% Credit Rate 0.00% (Nom¡nal) Total Finance Cost 489,1 61

TOTAL COSTS 7,028,579

PROFIT 1,803,521

Pårformâncå Measures Profìt on Costo¿ 25.660/. Profit on GDV% 20.420k Profit on NDV% 20.421o Development Y¡eld% (on Rent) 0.190/. Equ¡valent Yield% (Nominal) 5.00% Equ¡val€nt Yield% (True) 5.160/.

IRR 21.8A6

Rent Cover 134 yrs 9 mths Prof¡t Eros¡on (f¡nance rat€ 6.500%) 3 yrs 7 mths

File: HIPROJECTS (Shared)U014 SLR VIABILITY AND CIL VIABILIT\IRESIDENT|AL INSTITUTIONS\CITY CENIRE - NO AFFORDABLE.wcfx ARGUS Developer Vers¡on: 5.00.001 Dale:03/03/2015

250 P04 SHARED ACCOMMODATION

LOW MEDIUM HIGH CITY CENTRE 1. DEVELOPMENT VALUE QUANTUM UNIT RATE UNIT TOTAL QUANTUM UNIT RATE UNIT TOTAL QUANTUM UNIT RATE UNIT TOTAL QUANTUM UNIT RATE UNIT TOTAL GROSS FLOOR AREA 16266 GFA m2 100% 16266 GFA m2 100% 16266 GFA m2 100% 16266 GFA m2 100% NET LETTABLE AREA 530 ROOMS 2856 PER ROOM 530 ROOMS 3672 PER ROOM 530 ROOMS 5916 PER ROOM 530 ROOMS 5916 PER ROOM INVESTMENT YIELD £ 1,513,680 p.a. 8.50% £ 1,946,160 p.a. 8.50% £ 3,135,480 p.a. 7.50% £ 3,135,480 p.a. 7.50% RENT FREE 0 MONTHS 1.00 0 MONTHS 1.00 0 MONTHS 1.00 0 MONTHS 1.00 GROSS DEVELOPMENT VALUE £ 17,808,000 £ 22,896,000 £ 41,806,400 £ 41,806,400 Less Buyer's Costs £ 17,808,000 -5.75% -£ 1,023,960.00 £ 22,896,000 -5.7500% -£ 1,316,520.00 £ 41,806,400 -5.7500% -£ 2,403,868.00 £ 41,806,400 -5.7500% -£ 2,403,868.00 NET RECEIPT £ 16,784,040 £ 21,579,480 £ 39,402,532 £ 39,402,532

2 DEVELOPMENT COSTS BUILDING COSTS ESTIMATE (INC. PRELIMS, OH & P) 16266 m2 1269.534 per m2 £ 20,650,240 16266 m2 1269.534 per m2 £ 20,650,240 16266 m2 1269.534 per m2 £ 20,650,240 16266 m2 1269.534 per m2 £ 20,650,240 EXTERNAL WORKS £ 20,650,240 11.25% £ 2,323,152 £ 20,650,240 11.25% £ 2,323,152 £ 20,650,240 11.25% £ 2,323,152 £ 20, 650,240 11.25% £ 2,323,152 FEES £ 22,973,392 10% £ 2,297,339 £ 22,973,392 10% £ 2,297,339 £ 22,973,392 10% £ 2,297,339 £ 22,973,392 10% £ 2,297,339 ABNORMALS ALLOWANCE £ 22,973,392 5% £ 1,148,670 £ 22,973,392 5% £ 1,148,670 £ 22,973,392 5% £ 1,148,670 £ 22,973,392 5% £ 1,148,670 CITY CENTRE ABNORMALS £ 22,973,392 0 £ - £ 22,973,392 0 £ - £ 22,973,392 0 £ - £ 22,973,392 0.05 £ 1,148,670 CONTINGENCY £ 22,973,392 5% £ 1,148,670 £ 22,973,392 5% £ 1,148,670 £ 22,973,392 5% £ 1,148,670 £ 22,973,392 5% £ 1,148,670 EPC 16266 m2 £ 0.50 £ 8,133 16266 m2 £ 0.50 £ 8,133 16266 m2 £ 0.50 £ 8,133 16266 m2 £ 0.50 £ 8,133 DEVELOPMENT FINANCE (ON HALF BUILD) 1.33 yrs 6.50% £ 1,194,616.39 1.33 yrs 6.50% £ 1,194,616.39 1.33 yrs 6.50% £ 1,194,616.39 1.33 yrs 6.50% £ 1,244,392.07 FINANCE ARRANGEMENT FEE £ 27,576,203 0.10% £ 27,576 £ 27,576,203 0.10% £ 27,576 £ 27,576,203 0.10% £ 27,576 £ 28,724,873 0.10% £ 28,725 SALES FEES (LEGAL AND SURVEYORS) £ 16,784,040 1.25% £ 209,801 £ 21,579,480 1.25% £ 269,744 £ 39,402,532 1.25% £ 492,532 £ 39,402,532 1.25% £ 492,532 LETTING FEES (LEGAL AND SURVEYORS) £ 1,513,680 15.00% £ 227,052 £ 1,946,160 15.00% £ 291,924 £ 3,135,480 15.00% £ 470,322 £ 3,135,480 15.00% £ 470,322 PROFIT REQUIREMENT 15% £ 2,189,223 15% £ 2,814,715 15% £ 5,139,461 15% £ 5,139,461 DEVELOPMENT COSTS £ 31,424,471 £ 32,174,778 £ 34,900,710 £ 36,100,304

AMOUNT AVAILABLE FOR SITE PURCHASE NEGATIVE LAND VALUE -£ 14,640,431 NEGATIVE LAND VALUE -£ 10,595,298 £ 4,501,822 £ 3,302,228 SDLT -£ 509,175 -£ 368,491 £ 156,568 £ 114,847 LEGALS AND SURVEYORS FEES ON PURCHASE -£ 222,764 -£ 161,215 £ 68,498 £ 50,246 FINANCE -£ 1,179,109 -£ 853,323 £ 362,567 £ 265,954 RESIDUAL VALUE -£ 12,729,383 -£ 9,212,270 £ 3,914,189 £ 2,871,180

BENCHMARK VALUE URBAN £ 81,330 £ 406,650 £ 853,965 £ 853,965 BENCHMARK VALUE NON URBAN £ 24,399 £ 121,995 £ 256,190 £ 256,190 HEADROOM URBAN HEADROOM PER M2 -£ 787.58 -£ 12,810,713 HEADROOM PER M2 -£ 591.35 -£ 9,618,920 HEADROOM PER M2 £ 188.14 £ 3,060,224 HEADROOM PER M2 £ 124.01 £ 2,017,215 HEADROOM NON URBAN HEADROOM PER M2 -£ 784.08 -£ 12,753,782 HEADROOM PER M2 -£ 573.85 -£ 9,334,265 HEADROOM PER M2 £ 224.89 £ 3,657,999 HEADROOM PER M2 £ 160.76 £ 2,614,991

251 P04 INDUSTRIAL

LOW MEDIUM HIGH 1. DEVELOPMENT VALUE QUANTUM UNIT RATE UNIT TOTAL QUANTUM UNIT RATE UNIT TOTAL QUANTUM UNIT RATE UNIT TOTAL GROSS FLOOR AREA 3000 GFA m2 100% 3000 GFA m2 100% 3000 GFA m2 100% NET LETTABLE AREA 3000 GIFA 35 per m2 3000 GIFA 45 per m2 3000 GIFA 60 per m2 INVESTMENT YIELD £ 105,000 p.a. 10.00% £ 135,000 p.a. 8.00% £ 180,000 p.a. 7.50% RENT FREE 10 MONTHS 0.92 10 MONTHS 0.94 10 MONTHS 0.94 GROSS DEVELOPMENT VALUE £ 969,830 £ 1,582,671 £ 2,259,631 Less Buyer's Costs £ 969,830 -5.75% -£ 55,765.20 £ 1,582,671 -5.7500% -£ 91,003.58 £ 2,259,631 -5.7500% -£ 129,928.78 NET RECEIPT £ 914,064 £ 1,491,667 £ 2,129,702

2 DEVELOPMENT COSTS BUILDING COSTS ESTIMATE (INC. PRELIMS, OH & P) 3000 m2 471 per m2 £ 1,413,000 3000 m2 471 per m2 £ 1,413,000 3000 m2 471 per m2 £ 1,413,000 EXTERNAL WORKS £ 1,413,000 11.25% £ 158,963 £ 1,413,000 11.25% £ 158,963 £ 1,413,000 11.25% £ 158,963 FEES £ 1,571,963 10% £ 157,196 £ 1,571,963 10% £ 157,196 £ 1,571,963 10% £ 157,196 ABNORMALS ALLOWANCE £ 1,571,963 5% £ 78,598 £ 1,571,963 5% £ 78,598 £ 1,571,963 5% £ 78,598 CITY CENTRE ABNORMALS £ 1,571,963 0 £ - £ 1,571,963 0 £ - £ 1,571,963 0 £ - CONTINGENCY £ 1,571,963 5% £ 78,598 £ 1,571,963 5% £ 78,598 £ 1,571,963 5% £ 78,598 EPC 3000 m2 £ 0.50 £ 1,500 3000 m2 £ 0.50 £ 1,500 3000 m2 £ 0.50 £ 1,500 DEVELOPMENT FINANCE (ON HALF BUILD) 0.50 yrs 6.50% £ 30,653.27 0.50 yrs 6.50% £ 30,653.27 0.50 yrs 6.50% £ 30,653.27 FINANCE ARRANGEMENT FEE £ 1,887,855 0.10% £ 1,888 £ 1,887,855 0.10% £ 1,888 £ 1,887,855 0.10% £ 1,888 SALES FEES (LEGAL AND SURVEYORS) £ 914,064 1.25% £ 11,426 £ 1,491,667 1.25% £ 18,646 £ 2,129,702 1.25% £ 26,621 LETTING FEES (LEGAL AND SURVEYORS) £ 105,000 15.00% £ 15,750 £ 135,000 15.00% £ 20,250 £ 180,000 15.00% £ 27,000 PROFIT REQUIREMENT 20% £ 152,344 20% £ 248,611 20% £ 354,950 DEVELOPMENT COSTS £ 2,099,916 £ 2,207,903 £ 2,328,968

AMOUNT AVAILABLE FOR SITE PURCHASE NEGATIVE LAND VALUE -£ 1,185,852 NEGATIVE LAND VALUE -£ 716,236 NEGATIVE LAND VALUE -£ 199,266 SDLT -£ 43,465 -£ 26,252 -£ 7,304 LEGALS AND SURVEYORS FEES ON PURCHASE -£ 19,016 -£ 11,485 -£ 3,195 FINANCE -£ 36,758 -£ 22,201 -£ 6,177 RESIDUAL VALUE -£ 1,086,614 -£ 656,298 -£ 182,590

BENCHMARK VALUE URBAN £ 150,000 £ 750,000 £ 1,575,000 BENCHMARK VALUE NON URBAN £ 45,000 £ 225,000 £ 472,500 HEADROOM URBAN HEADROOM PER M2 -£ 412.20 -£ 1,236,614 HEADROOM PER M2 -£ 468.77 -£ 1,406,298 HEADROOM PER M2 -£ 585.86 -£ 1,757,590 HEADROOM NON URBAN HEADROOM PER M2 -£ 377.20 -£ 1,131,614 HEADROOM PER M2 -£ 293.77 -£ 881,298 HEADROOM PER M2 -£ 218.36 -£ 655,090

252 P04 LOW MEDIUM HIGH CITY CENTRE 1. DEVELOPMENT VALUE QUANTUM UNIT RATE UNIT TOTAL QUANTUM UNIT RATE UNIT TOTAL QUANTUM UNIT RATE UNIT TOTAL QUANTUM UNIT RATE UNIT TOTAL GROSS FLOOR AREA 2000 GFA m2 85% 2000 GFA m2 85% 2000 GFA m2 85% 4000 GFA m2 80% NET LETTABLE AREA 1700 GIFA 86 per m2 1700 GIFA 108 per m2 1700 GIFA 161 per m2 3200 GIFA 226 per m2 INVESTMENT YIELD £ 146,200 p.a. 8.50% £ 183,600 p.a. 8.50% £ 273,700 p.a. 7.50% £ 723,200 p.a. 7.00% RENT FREE 10 MONTHS 0.93 10 MONTHS 0.93 10 MONTHS 0.94 10 MONTHS 0.95 GROSS DEVELOPMENT VALUE £ 1,606,955 £ 2,018,036 £ 3,435,894 £ 9,765,037 Less Buyer's Costs £ 1,606,955 -5.75% -£ 92,399.90 £ 2,018,036 -5.7500% -£ 116,037.09 £ 3,435,894 -5.7500% -£ 197,563.93 £ 9,765,037 -5.7500% -£ 561,489.63 NET RECEIPT £ 1,514,555 £ 1,901,999 £ 3,238,331 £ 9,203,547

2 DEVELOPMENT COSTS BUILDING COSTS ESTIMATE (INC. PRELIMS, OH & P) 2000 m2 1183 per m2£ 2,366,000 2000 m2 1183 per m2£ 2,366,000 2000 m2 1183 per m2 £ 2,366,000 4000 m2 1301 per m2 £ 5,204,000 EXTERNAL WORKS £ 2,366,000 11.25% £ 266,175 £ 2,366,000 11.25% £ 266,175 £ 2,366,000 11.25% £ 266,175 £ 5,204,000 11.25% £ 585,450 FEES £ 2,632,175 10% £ 263,218 £ 2,632,175 10% £ 263,218 £ 2,632,175 10% £ 263,218 £ 5,789,450 10% £ 578,945 ABNORMALS ALLOWANCE £ 2,632,175 5% £ 131,609 £ 2,632,175 5% £ 131,609 £ 2,632,175 5% £ 131,609 £ 5,789,450 5% £ 289,473 CITY CENTRE ABNORMALS £ 2,632,175 0 -£ £ 2,632,175 0 -£ £ 2,632,175 0 £ - £ 5,789,450 0.05 £ 289,473 CONTINGENCY £ 2,632,175 5% £ 131,609 £ 2,632,175 5% £ 131,609 £ 2,632,175 5% £ 131,609 £ 5,789,450 5% £ 289,473 EPC 2000 m2 0.50£ £ 1,000 2000 m2 0.50£ £ 1,000 2000 m2 0.50£ £ 1,000 4000 m2 0.50£ £ 2,000 DEVELOPMENT FINANCE (ON HALF BUILD) 1.17 yrs 6.50% £ 119,763.96 1.17 yrs 6.50% £ 119,763.96 1.17 yrs 6.50% £ 119,763.96 1.17 yrs 6.50% £ 274,395.81 FINANCE ARRANGEMENT FEE £ 3,159,610 0.10% £ 3,160 £ 3,159,610 0.10% £ 3,160 £ 3,159,610 0.10% £ 3,160 £ 7,238,813 0.10% £ 7,239 SALES FEES (LEGAL AND SURVEYORS) £ 1,514,555 1.25% £ 18,932 £ 1,901,999 1.25% £ 23,775 £ 3,238,331 1.25% £ 40,479 £ 9,203,547 1.25% £ 115,044 LETTING FEES (LEGAL AND SURVEYORS) £ 146,200 15.00% £ 21,930 £ 183,600 15.00% £ 27,540 £ 273,700 15.00% £ 41,055 £ 723,200 15.00% £ 108,480 PROFIT REQUIREMENT 15% £ 197,551 15% £ 248,087 15% £ 422,391 15% £ 1,200,463 DEVELOPMENT COSTS £ 3,520,946 £ 3,581,935 £ 3,786,459 £ 8,944,434

AMOUNT AVAILABLE FOR SITE PURCHASE NEGATIVE LAND VALUE -£ 2,006,391 NEGATIVE LAND VALUE -£ 1,679,936 NEGATIVE LAND VALUE -£ 548,128 £ 259,113 SDLT -£ 70,516 -£ 59,042 -£ 19,264 £ 9,107 LEGALS AND SURVEYORS FEES ON PURCHASE -£ 30,851 -£ 25,831 -£ 8,428 £ 3,984 FINANCE -£ 142,126 -£ 119,001 -£ 38,827 £ 18,355 RESIDUAL VALUE -£ 1,762,899 -£ 1,476,062 -£ 481,608 £ 227,668

BENCHMARK VALUE URBAN £ 50,000 £ 250,000 £ 525,000 £ 210,000 BENCHMARK VALUE NON URBAN £ 15,000 £ 75,000 £ 157,500 £ 63,000 HEADROOM URBAN HEADROOM PER M2 -£ 906.45 -£ 1,812,899 HEADROOM PER M2 -£ 863.03 -£ 1,726,062 HEADROOM PER M2 -£ 503.30 -£ 1,006,608 HEADROOM PER M2 £ 4.42 £ 17,668 HEADROOM NON URBAN HEADROOM PER M2 -£ 888.95 -£ 1,777,899 HEADROOM PER M2 -£ 775.53 -£ 1,551,062 HEADROOM PER M2 -£ 319.55 -£ 639,108 HEADROOM PER M2 £ 41.17 £ 164,668

253 P04 Sheet B Supermarket - Discount CHECKED 10/01/2015 PRINTED 24/02/2015 LOW MEDIUM HIGH CITY CENTRE 1. DEVELOPMENT VALUE QUANTUM UNIT RATE UNIT TOTAL QUANTUM UNIT RATE UNIT TOTAL QUANTUM UNIT RATE UNIT TOTAL QUANTUM UNIT RATE UNIT TOTAL GROSS FLOOR AREA 1510 GFA m2 95% 1510 GFA m2 95% 1510 GFA m2 95% 1510 GFA m2 95% NET LETTABLE AREA 1435 GIFA 130 per m2 1435 GIFA 130 per m2 1435 GIFA 130 per m2 1435 GIFA 130 per m2 INVESTMENT YIELD £ 186,485 p.a. 6.75% £ 186,485 p.a. 6.75% £ 186,485 p.a. 6.75% £ 186,485 p.a. 6.75% RENT FREE 12 MONTHS 0.94 12 MONTHS 0.94 12 MONTHS 0.94 12 MONTHS 0.94 GROSS DEVELOPMENT VALUE £ 2,588,048 £ 2,588,048 £ 2,588,048 £ 2,588,048 Less Buyer's Costs 2,588,048£ -5.00% -£ 129,402.38 2,588,048£ -5.0000% -£ 129,402.38 2,588,048£ -5.0000% -£ 129,402.38 £ 2,588,048 -5.0000% -£ 129,402.38 NET RECEIPT £ 2,458,645 £ 2,458,645 £ 2,458,645 £ 2,458,645

2 DEVELOPMENT COSTS BUILDING COSTS ESTIMATE (INC. PRELIMS, OH & P) 1510 m2 825.648 per m2 £ 1,246,728 1510 m2 825.648 per m2 £ 1,246,728 1510 m2 825.648 per m2 £ 1,246,728 1510 m2 825.648 per m2 £ 1,246,728 EXTERNAL WORKS 1,246,728£ 11.25% £ 140,257 1,246,728£ 11.25% £ 140,257 1,246,728£ 11.25% £ 140,257 £ 1,246,728 11.25% £ 140,257 FEES 1,386,985£ 10% £ 138,699 1,386,985£ 10% £ 138,699 1,386,985£ 10% £ 138,699 £ 1,386,985 10% £ 138,699 ABNORMALS ALLOWANCE 1,386,985£ 5% £ 69,349 1,386,985£ 5% £ 69,349 1,386,985£ 5% £ 69,349 £ 1,386,985 5% £ 69,349 CITY CENTRE ABNORMALS 1,386,985£ 0 £ - 1,386,985£ 0 £ - 1,386,985£ 0 £ - £ 1,386,985 0.05 £ 69,349 CONTINGENCY 1,386,985£ 5% £ 69,349 1,386,985£ 5% £ 69,349 1,386,985£ 5% £ 69,349 £ 1,386,985 5% £ 69,349 EPC 1510 m2 £ 0.50 £ 755 1510 m2 £ 0.50 £ 755 1510 m2 £ 0.50 £ 755 1510 m2 £ 0.50 £ 755 DEVELOPMENT FINANCE (ON HALF BUILD) 1.00 yrs 6.50% £ 54,092.43 1.00 yrs 6.50% £ 54,092.43 1.00 yrs 6.50% £ 54,092.43 1.00 yrs 6.50% £ 56,346.28 FINANCE ARRANGEMENT FEE 1,665,138£ 0.10% £ 1,665 1,665,138£ 0.10% £ 1,665 1,665,138£ 0.10% £ 1,665 £ 1,734,487 0.10% £ 1,734 SALES FEES 2,458,645£ 1.25% £ 30,733 2,458,645£ 1.25% £ 30,733 2,458,645£ 1.25% £ 30,733 £ 2,458,645 1.25% £ 30,733 LETTING FEES £ 186,485 15.00% £ 27,973 £ 186,485 15.00% £ 27,973 £ 186,485 15.00% £ 27,973 £ 186,485 15.00% £ 27,973 PROFIT REQUIREMENT 20% £ 409,774 20% £ 409,774 20% £ 409,774 20% £ 409,774 DEVELOPMENT COSTS £ 2,189,375 £ 2,189,375 £ 2,189,375 £ 2,261,048

AMOUNT AVAILABLE FOR SITE PURCHASE £ 269,270 £ 269,270 £ 269,270 £ 197,598 SDLT £ 2,408 £ 2,408 £ 2,408 £ 1,767 LEGALS AND SURVEYORS FEES ON PURCHASE £ 9,632 £ 9,632 £ 9,632 £ 7,068 FINANCE £ 16,434 £ 16,434 £ 16,434 £ 12,060 RESIDUAL VALUE £ 240,796 £ 240,796 £ 240,796 £ 176,703

BENCHMARK VALUE URBAN £ 151,000 £ 755,000 £ 1,585,500 £ 1,585,500 BENCHMARK VALUE NON URBAN £ 271,800 £ 317,100 £ 400,150 £ 400,150 HEADROOM URBAN HEADROOM PER M2 £ 59.47 £ 89,796 HEADROOM PER M2 -£ 340.53 -£ 514,204 HEADROOM PER M2 -£ 890.53 -£ 1,344,704 HEADROOM PER M2 -£ 932.98 -£ 1,408,797 HEADROOM NON URBAN HEADROOM PER M2 -£ 20.53 -£ 31,004 HEADROOM PER M2 -£ 50.53 -£ 76,304 HEADROOM PER M2 -£ 105.53 -£ 159,354 HEADROOM PER M2 -£ 147.98 -£ 223,447

254 P04 HOTELS 24/02/2015

LOW MEDIUM HIGH CITY CENTRE 1. DEVELOPMENT VALUE QUANTUM UNIT RATE UNIT TOTAL QUANTUM UNIT RATE UNIT TOTAL QUANTUM UNIT RATE UNIT TOTAL QUANTUM UNIT RATE UNIT TOTAL GROSS FLOOR AREA 3600 GFA m2 100% 3600 GFA m2 100% 3600 GFA m2 100% 8000 GFA m2 100% NET LETTABLE AREA 120 GIFA 65000 per m2 120 GIFA 65000 per m2 120 GIFA 90000 per m2 180 GIFA 145000 per m2 INVESTMENT YIELD £ 7,800,000 p.a. 100.00% £ 7,800,000 p.a. 100.00% £ 10,800,000 p.a. 100.00% £ 26,100,000 p.a. 100.00% RENT FREE 0 MONTHS 1.00 0 MONTHS 1.00 0 MONTHS 1.00 0 MONTHS 1.00 GROSS DEVELOPMENT VALUE £ 7,800,000 £ 7,800,000 £ 10,800,000 £ 26,100,000 Less Buyer's Costs £ 7,800,000 -5.75% -£ 448,500.00 £ 7,800,000 -5.7500% -£ 448,500.00 £ 10,800,000 -5.7500% -£ 621,000.00 £ 26,100,000 -5.7500% -£ 1,500,750.00 NET RECEIPT £ 7,351,500 £ 7,351,500 £ 10,179,000 £ 24,599,250

2 DEVELOPMENT COSTS BUILDING COSTS ESTIMATE (INC. PRELIMS, OH & P) 3600 m2 1198.392 per m2£ 4,314,211 3600 m2 1198.392 per m2£ 4,314,211 3600 m2 1198.392 per m2 £ 4,314,211 8000 m2 1657.308 per m2£ 13,258,464 EXTERNAL WORKS £ 4,314,211 11.25% £ 485,349 £ 4,314,211 11.25% £ 485,349 £ 4,314,211 11.25% £ 485,349 £ 13,258,464 11.25% £ 1,491,577 FEES £ 4,799,560 10% £ 479,956 £ 4,799,560 10% £ 479,956 £ 4,799,560 10% £ 479,956 £ 14,750,041 10% £ 1,475,004 ABNORMALS ALLOWANCE £ 4,799,560 5% £ 239,978 £ 4,799,560 5% £ 239,978 £ 4,799,560 5% £ 239,978 £ 14,750,041 5% £ 737,502 CITY CENTRE ABNORMALS £ 4,799,560 0 -£ £ 4,799,560 0 -£ £ 4,799,560 0 £ - £ 14,750,041 5% £ 737,502 CONTINGENCY £ 4,799,560 5% £ 239,978 £ 4,799,560 5% £ 239,978 £ 4,799,560 5% £ 239,978 £ 14,750,041 5% £ 737,502 EPC 3600 m2 0.50£ £ 1,800 3600 m2 0.50£ £ 1,800 3600 m2 0.50£ £ 1,800 8000 m2 0.50£ £ 4,000 DEVELOPMENT FINANCE (ON HALF BUILD) 1.67 yrs 6.50% £ 311,971.40 1.67 yrs 6.50% £ 311,971.40 1.67 yrs 6.50% £ 311,971.40 1.67 yrs 6.50% £ 998,700.71 FINANCE ARRANGEMENT FEE £ 5,761,272 0.10% £ 5,761 £ 5,761,272 0.10% £ 5,761 £ 5,761,272 0.10% £ 5,761 £ 18,441,552 0.10% £ 18,442 SALES FEES (LEGAL AND SURVEYORS) £ 7,351,500 1.25% £ 91,894 £ 7,351,500 1.25% £ 91,894 £ 10,179,000 1.25% £ 127,238 £ 24,599,250 1.25% £ 307,491 LETTING FEES (LEGAL AND SURVEYORS) £ 7,800,000 2.00% £ 156,000 £ 7,800,000 2.00% £ 156,000 £ 10,800,000 2.00% £ 216,000 £ 26,100,000 2.00% £ 522,000 PROFIT REQUIREMENT 20% £ 1,225,250 20% £ 1,225,250 20% £ 1,696,500 20% £ 4,099,875 DEVELOPMENT COSTS £ 7,552,148 £ 7,552,148 £ 8,118,742 £ 24,388,059

AMOUNT AVAILABLE FOR SITE PURCHASE NEGATIVE LAND VALUE -£ 200,648 NEGATIVE LAND VALUE -£ 200,648 £ 2,060,258 £ 211,191 SDLT -£ 6,833 -£ 6,833 £ 70,165 £ 7,192 LEGALS AND SURVEYORS FEES ON PURCHASE -£ 2,990 -£ 2,990 £ 30,697 £ 3,147 FINANCE -£ 19,992 -£ 19,992 £ 205,279 £ 21,043 RESIDUAL VALUE -£ 170,833 -£ 170,833 £ 1,754,117 £ 179,809

BENCHMARK VALUE URBAN £ 100,000 £ 500,000 £ 1,050,000 £ 840,000 BENCHMARK VALUE NON URBAN £ 180,000 £ 210,000 £ 265,000 £ 252,000 HEADROOM URBAN HEADROOM PER M2 -£ 75.23 -£ 270,833 HEADROOM PER M2 -£ 186.34 -£ 670,833 HEADROOM PER M2 £ 195.59 £ 704,117 HEADROOM PER M2 -£ 82.52 -£ 660,191 HEADROOM NON URBAN HEADROOM PER M2 -£ 97.45 -£ 350,833 HEADROOM PER M2 -£ 105.79 -£ 380,833 HEADROOM PER M2 £ 413.64 £ 1,489,117 HEADROOM PER M2 -£ 9.02 -£ 72,191

255 P04 Sheet D Retail Warehouse PRINTED 24-2-15 LOW MEDIUM HIGH 1. DEVELOPMENT VALUE QUANTUM UNIT RATE UNIT TOTAL QUANTUM UNIT RATE UNIT TOTAL QUANTUM UNIT RATE UNIT TOTAL GROSS FLOOR AREA 1000 GFA m2 95% 1000 GFA m2 95% 1000 GFA m2 95% NET LETTABLE AREA 950 GIFA 110 per m2 950 GIFA 145 per m2 950 GIFA 160 per m2 INVESTMENT YIELD £ 104,500 p.a. 6.50% £ 137,750 p.a. 6.50% £ 152,000 p.a. 6.50% RENT FREE 12 MONTHS 0.94 12 MONTHS 0.94 12 MONTHS 0.94 GROSS DEVELOPMENT VALUE £ 1,509,570 £ 1,989,888 £ 2,195,739 Less Buyer's Costs 1,509,570£ -5.00% -£ 75,478.51 1,989,888£ -5.0000% -£ 99,494.40 2,195,739£ -5.0000% -£ 109,786.93 NET RECEIPT £ 1,434,092 £ 1,890,394 £ 2,085,952

2 DEVELOPMENT COSTS BUILDING COSTS ESTIMATE (INC. PRELIMS, OH & P) 1000 m2 566.13 per m2 £ 566,130 1000 m2 566.13 per m2 £ 566,130 1000 m2 566.13 per m2 £ 566,130 EXTERNAL WORKS £ 566,130 11.25% £ 63,690 £ 566,130 11.25% £ 63,690 £ 566,130 11.25% £ 63,690 FEES £ 629,820 10% £ 62,982 £ 629,820 10% £ 62,982 £ 629,820 10% £ 62,982 ABNORMALS ALLOWANCE £ 629,820 5% £ 31,491 £ 629,820 5% £ 31,491 £ 629,820 5% £ 31,491 CITY CENTRE ABNORMALS £ 629,820 0 £ - £ 629,820 0 £ - £ 629,820 0 £ - CONTINGENCY £ 629,820 5% £ 31,491 £ 629,820 5% £ 31,491 £ 629,820 5% £ 31,491 EPC 1000 m2 £ 0.50 £ 500 1000 m2 £ 0.50 £ 500 1000 m2 £ 0.50 £ 500 DEVELOPMENT FINANCE (ON HALF BUILD) 1.00 yrs 6.50% £ 24,562.97 1.00 yrs 6.50% £ 24,562.97 1.00 yrs 6.50% £ 24,562.97 FINANCE ARRANGEMENT FEE £ 756,284 0.10% £ 756 £ 756,284 0.10% £ 756 £ 756,284 0.10% £ 756 SALES FEES 1,434,092£ 1.25% £ 17,926 1,890,394£ 1.25% £ 23,630 2,085,952£ 1.25% £ 26,074 LETTING FEES £ 104,500 15.00% £ 15,675 £ 137,750 15.00% £ 20,663 £ 152,000 15.00% £ 22,800 PROFIT REQUIREMENT 20% £ 239,015 20% £ 315,066 20% £ 347,659 DEVELOPMENT COSTS £ 1,054,219 £ 1,140,961 £ 1,178,136

AMOUNT AVAILABLE FOR SITE PURCHASE £ 379,872 £ 749,433 £ 907,816 SDLT £ 3,397 £ 6,702 £ 8,118 LEGALS AND SURVEYORS FEES ON PURCHASE £ 13,588 £ 26,807 £ 32,473 FINANCE £ 23,185 £ 45,740 £ 55,407 RESIDUAL VALUE £ 339,703 £ 670,184 £ 811,818

BENCHMARK VALUE URBAN £ 60,000 £ 300,000 £ 630,000 BENCHMARK VALUE NON URBAN £ 108,000 £ 126,000 £ 159,000 HEADROOM URBAN HEADROOM PER M2 £ 279.70 £ 279,703 HEADROOM PER M2 £ 370.18 £ 370,184 HEADROOM PER M2 £ 181.82 £ 181,818 HEADROOM NON URBAN HEADROOM PER M2 £ 231.70 £ 231,703 HEADROOM PER M2 £ 544.18 £ 544,184 HEADROOM PER M2 £ 652.82 £ 652,818

256 P04 Sheet A Small Retail CHECKED 10/01/2015 LOW MEDIUM HIGH CITY CENTRE* but see detailed scheme appraisal for city centre 1. DEVELOPMENT VALUE QUANTUM UNIT RATE UNIT TOTAL QUANTUM UNIT RATE UNIT TOTAL QUANTUM UNIT RATE UNIT TOTAL QUANTUM UNIT RATE UNIT TOTAL GROSS FLOOR AREA 279 GFA m2 78% 279 GFA m2 78% 279 GFA m2 78% 279 GFA m2 78% NET LETTABLE AREA 218 GIFA 60 per m2 218 GIFA 88 per m2 218 GIFA 237 per m2 218 GIFA 220 per m2 INVESTMENT YIELD £ 13,057 p.a. 8.50% £ 19,151 p.a. 8.50% £ 51,576 p.a. 7.50% £ 47,876 p.a. 7.00% RENT FREE 12 MONTHS 0.92 12 MONTHS 0.92 12 MONTHS 0.93 12 MONTHS 0.93 GROSS DEVELOPMENT VALUE £ 141,580 £ 207,650 £ 639,702 £ 639,204 Less Buyer's Costs £ 141,580 -5.00% -£ 7,078.99 £ 207,650 -6.0000% -£ 12,459.03 £ 639,702 -9.0000% -£ 57,573.14 £ 639,204 -9.0000% -£ 57,528.38 NET RECEIPT £ 134,501 £ 195,191 £ 582,128 £ 581,676

2 DEVELOPMENT COSTS BUILDING COSTS ESTIMATE (INC. PRELIMS, OH & P) 279 m2 731.46 per m2 £ 204,077 279 m2 731.46 per m2 £ 204,077 279 m2 731.46 per m2 £ 204,077 279 m2 1133.262 per m2 £ 316,180 EXTERNAL WORKS £ 204,077 11.25% £ 22,959 £ 204,077 11.25% £ 22,959 £ 204,077 11.25% £ 22,959 £ 316,180 11.25% £ 35,570 FEES £ 227,036 10% £ 22,704 £ 227,036 10% £ 22,704 £ 227,036 10% £ 22,704 £ 351,750 10% £ 35,175 ABNORMALS ALLOWANCE £ 227,036 5% £ 11,352 £ 227,036 5% £ 11,352 £ 227,036 5% £ 11,352 £ 351,750 5% £ 17,588 CITY CENTRE ABNORMALS £ 227,036 0 £ - £ 227,036 0 £ - £ 227,036 0 £ - £ 351,750 0 £ - CONTINGENCY £ 227,036 5% £ 11,352 £ 227,036 5% £ 11,352 £ 227,036 5% £ 11,352 £ 351,750 5% £ 17,588 EPC 279 m2 £ 0.50 £ 140 279 m2 £ 0.50 £ 140 279 m2 £ 0.50 £ 140 279 m2 £ 0.50 £ 140 DEVELOPMENT FINANCE (ON HALF BUILD) 1.00 yrs 6.50% £ 8,854.41 1.00 yrs 6.50% £ 8,854.41 1.00 yrs 6.50% £ 8,854. 41 1.00 yrs 6.50% £ 13,718.26 FINANCE ARRANGEMENT FEE £ 272,583 0.10% £ 273 £ 272,583 0.10% £ 273 £ 272,583 0.10% £ 273 £ 422,240 0.10% £ 422 SALES FEES £ 134,501 1.25% £ 1,681 £ 195,191 1.25% £ 2,440 £ 582,128 1.25% £ 7,277 £ 581,676 1.25% £ 7,271 LETTING FEES £ 13,057 15.00% £ 1,959 £ 19,151 15.00% £ 2,873 £ 51,576 15.00% £ 7,736 £ 47,876 15.00% £ 7,181 PROFIT REQUIREMENT 20% £ 22,417 20% £ 32,532 20% £ 97,021 20% £ 96,946 DEVELOPMENT COSTS £ 307,766 £ 319,554 £ 393,744 £ 547,779

AMOUNT AVAILABLE FOR SITE PURCHASE NEGATIVE LAND VALUE -£ 173,266 NEGATIVE LAND VALUE -£ 124,363 £ 188,384 £ 33,897 SDLT -£ 1,549 -£ 1,112 £ 1,685 £ 303 LEGALS AND SURVEYORS FEES ON PURCHASE -£ 6,198 -£ 4,448 £ 6,739 £ 1,213 FINANCE -£ 10,575 -£ 7,590 £ 11,498 £ 2,069 RESIDUAL VALUE -£ 154,943 -£ 111,212 £ 168,463 £ 30,313

BENCHMARK VALUE URBAN £ 6,200 £ 31,000 £ 65,100 £ 65,100 BENCHMARK VALUE NON URBAN £ 1,860 £ 9,300 £ 19,530 £ 19,530 HEADROOM URBAN HEADROOM PER M2 -£ 577.58 -£ 161,143 HEADROOM PER M2 -£ 509.72 -£ 142,212 HEADROOM PER M2 £ 370.48 £ 103,363 HEADROOM PER M2 -£ 124.69 -£ 34,787 HEADROOM NON URBAN HEADROOM PER M2 -£ 562.02 -£ 156,803 HEADROOM PER M2 -£ 431.94 -£ 120,512 HEADROOM PER M2 £ 533.81 £ 148,933 HEADROOM PER M2 £ 38.65 £ 10,783

257 P04 Sheet C Supermarket PRINTED 24/02/2015 LOW MEDIUM HIGH CITY CENTRE 1. DEVELOPMENT VALUE QUANTUM UNIT RATE UNIT TOTAL QUANTUM UNIT RATE UNIT TOTAL QUANTUM UNIT RATE UNIT TOTAL QUANTUM UNIT RATE UNIT TOTAL GROSS FLOOR AREA 5000 GFA m2 95% 5000 GFA m2 95% 5000 GFA m2 95% 5000 GFA m2 95% NET LETTABLE AREA 4750 GIFA 150 per m2 4750 GIFA 195 per m2 4750 GIFA 215 per m2 4750 GIFA 215 per m2 INVESTMENT YIELD £ 712,500 p.a. 6.75% £ 926,250 p.a. 6.75% £ 1,021,250 p.a. 6.75% £ 1,021,250 p.a. 6.75% RENT FREE 12 MONTHS 0.94 12 MONTHS 0.94 12 MONTHS 0.94 12 MONTHS 0.94 GROSS DEVELOPMENT VALUE £ 9,888,108 £ 12,854,541 £ 14,172,955 £ 14,172,955 Less Buyer's Costs £ 9,888,108 -5.00% -£ 494,405.41 £ 12,854,541 -5.0000% -£ 642,727.04 £ 14,172,955 -5.0000% -£ 708,647.76 £ 14,172,955 -5.0000% -£ 708,647.76 NET RECEIPT £ 9,393,703 £ 12,211,814 £ 13,464,307 £ 13,464,307

2 DEVELOPMENT COSTS BUILDING COSTS ESTIMATE (INC. PRELIMS, OH & P) 5000 m2 1084.164 per m2 £ 5,420,820 5000 m2 1084.164 per m2 £ 5,420,820 5000 m2 1084.164 per m2 £ 5,420,820 5000 m2 1084.164 per m2 £ 5,420,820 EXTERNAL WORKS £ 5,420,820 11.25% £ 609,842 £ 5,420,820 11.25% £ 609,842 £ 5,420,820 11.25% £ 609,842 £ 5,420,820 11.25% £ 609,842 FEES £ 6,030,662 10% £ 603,066 £ 6,030,662 10% £ 603,066 £ 6,030,662 10% £ 603,066 £ 6,030,662 10% £ 603,066 ABNORMALS ALLOWANCE £ 6,030,662 5% £ 301,533 £ 6,030,662 5% £ 301,533 £ 6,030,662 5% £ 301,533 £ 6,030,662 5% £ 301,533 CITY CENTRE ABNORMALS £ 6,030,662 0 £ - £ 6,030,662 0 £ - £ 6,030,662 0 £ - £ 6,030,662 0.05 £ 301,533 CONTINGENCY £ 6,030,662 5% £ 301,533 £ 6,030,662 5% £ 301,533 £ 6,030,662 5% £ 301,533 £ 6,030,662 5% £ 301,533 EPC 5000 m2 £ 0.50 £ 2,500 5000 m2 £ 0.50 £ 2,500 5000 m2 £ 0.50 £ 2,500 5000 m2 £ 0.50 £ 2,500 DEVELOPMENT FINANCE (ON HALF BUILD) 1.25 yrs 6.50% £ 293,994.78 1.25 yrs 6.50% £ 293,994.78 1.25 yrs 6.50% £ 293, 994.78 1.25 yrs 6.50% £ 306,244.57 FINANCE ARRANGEMENT FEE £ 7,239,295 0.10% £ 7,239 £ 7,239,295 0.10% £ 7,239 £ 7,239,295 0.10% £ 7,239 £ 7,540,828 0.10% £ 7,541 SALES FEES £ 9,393,703 1.25% £ 117,421 £ 12,211,814 1.25% £ 152,648 £ 13,464,307 1.25% £ 168,304 £ 13,464,307 1.25% £ 168,304 LETTING FEES £ 712,500 15.00% £ 106,875 £ 926,250 15.00% £ 138,938 £ 1,021,250 15.00% £ 153,188 £ 1,021,250 15.00% £ 153,188 PROFIT REQUIREMENT 20% £ 1,565,617 20% £ 2,035,302 20% £ 2,244,051 20% £ 2,244,051 DEVELOPMENT COSTS £ 9,330,442 £ 9,867,416 £ 10,106,071 £ 10,420,156

AMOUNT AVAILABLE FOR SITE PURCHASE £ 63,261 £ 2,344,397 £ 3,358,236 £ 3,044,152 SDLT £ 566 £ 20,965 £ 30,031 £ 27,222 LEGALS AND SURVEYORS FEES ON PURCHASE £ 2,263 £ 83,860 £ 120,125 £ 108,890 FINANCE £ 3,861 £ 143,085 £ 204,963 £ 185,793 RESIDUAL VALUE £ 56,571 £ 2,096,488 £ 3,003,117 £ 2,722,246

BENCHMARK VALUE URBAN £ 400,000 £ 2,000,000 £ 4,200,000 £ 4,200,000 BENCHMARK VALUE NON URBAN £ 720,000 £ 840,000 £ 1,060,000 £ 1,060,000 HEADROOM URBAN HEADROOM PER M2 -£ 68.69 -£ 343,429 HEADROOM PER M2 £ 19.30 £ 96,488 HEADROOM PER M2 -£ 239.38 -£ 1,196,883 HEADROOM PER M2 -£ 295.55 -£ 1,477,754 HEADROOM NON URBAN HEADROOM PER M2 -£ 132.69 -£ 663,429 HEADROOM PER M2 £ 251.30 £ 1,256,488 HEADROOM PER M2 £ 388.62 £ 1,943,117 HEADROOM PER M2 £ 332.45 £ 1,662,246

106.50% A 106.50% A 106.50% A 106.50% A 6.50% B 6.50% B 6.50% B 6.50% B 0.06825 C 0.06825 C 0.06825 C £ 3,003,117 0.06825 C 111.83% D 111.83% D 111.83% D 111.83% D

258 P04

Paul Scaplehorn Email [email protected] Strategic Property Direct 0191 223 5786 Newcastle City Council Mobile 07747 008 410 Civic Centre Fax 0191 223 5799 Newcastle upon Tyne Your Ref NE1 8QH Our Ref JAR

23 February 2015

Dear Paul

MARKET CHECK, CIL VIABILITY STUDY

Further to your email of 13 February 2015 and our subsequent telephone conversation, we have had opportunity to review the draft update to your CIL Viability Study and can provide the following comments in regards of the assumptions being made to assess the potential implementation of this levy.

This letter follows the format of your draft document and reviews each of the associated in turn commencing with the residential appraisal.

Residential

Scheme Mix and Unit Sizes

In broad terms we consider the scheme mix assumptions and proportional split between differing residential unit types to be consistent with current market conditions. At the current time there is a clear preference for delivering traditional family housing in the form of 3 and 4 bed semi detached and detached house styles and this has been reflected in the assumptions. We therefore consider this to be a reasonable assumption for the purpose of your study.

In regards density however, you have assumed delivery of between 30 and 45 units per hectare. In our experience this is marginally above what we are typically seeing in the market at the current time. With a preference from house builders to deliver more traditional unit types, this has led to a slight reduction in overall development densities. We are now seeing typical schemes delivering in the order of 20 – 25 units per hectare with the most dense schemes not going above around 30 – 35 units per hectare. As sense check, the Council should calculate the amount of accommodation being delivered per net developable acre. At the current time most volume house builders will deliver between 24,700 sq ft and 37,000 sq ft of residential accommodation per hectare with the highest value schemes typically at the

DTZ

Central Square Forth Street Newcastle upon Tyne NE1 3PJ

259 P04

lower end of this range. Within your Argus appraisals, you should be able to cross reference the scheme assumptions and check that they fall within this range. Where any individual scheme assumption falls outside of this range you will need to re-assess either the mix of units or more likely the density to which units are being built.

In regards unit sizes these all appear broadly consistent with a volume house builders product and so appear reasonable for the purpose of your study.

Residential Sale Values

While it is clearly difficult to accurately assess sale prices given the hypothetical nature of the scheme scenarios, the values reported and the revisions you have set out are all broadly consistent with our own expectations of market performance at the current time and we consider them reasonable for the purpose of your appraisal. In regards affordable unit values the document states that you have assumed a reduction of 41.25% for all affordable unit types. In our experience, and dependent upon the tenure of the specific affordable unit types, such discount can range from anywhere between 30% and upwards towards 70%. Furthermore, we are also aware that transfer values being negotiated in the open market and where housing associations can be found to take Section 106 units, will only pay values up to a cap of around £70,000 to £80,000 per dwellings. Again, within your Argus appraisal a sense check should be undertaken against affordable unit types to ascertain whether values are going above this cap level and where they are the percentage figure stated may need to be revised.

Development Costs

The figures presented are taken from the BCIS database and therefore represent a robust source of information for the purpose of undertaken area wide viability studies. It should be noted, and is no doubt well known to you, that the BCIS figure takes its data from a wide variety of samples and volume house builders with their economies of scale can often negotiate build costs significantly below the BCIS figures. Given the further assumptions you make in regards other development costs however we do not consider this to be an issue for the purpose of an area wide viability study and consider the figures stated to be reasonable.

In regards the other development costs you set out a series of assumptions, we review each of these in turn:

 Professional Fees - We typically find professional fees for residential schemes ranging between 6% and 12%. Your assumption is therefore at the upper end of this range however it is considered appropriate given the high level nature of the study being undertaken.

 Site acquisition fees – In our experience there are few residential developers who will pay acquisition fees at the current time and as a result we typically only assume a gross acquisition cost of 1% to cover all fees associated with the acquisition. We therefore consider there may be scope to reduce the assumption you have made.

 Finance – We consider the assumption of 6.5% finance cost to be reasonable at the current time but it should be noted that in the short term finance costs are likely to decrease.

2

260 P04

 Marketing Costs – We note you have increased marketing costs to 3.5% and consider this reasonable at the current time.

 Legal Fees – We typically assume a rate of £500 per unit and while your assumption is marginally above this we do not consider this unreasonable at the current time.

 Developer Profit (Private) – We consider this assumption to be reasonable at the current time.

 Developer Profit (Affordable) – We consider this assumption to be reasonable at the current time.

 Section 106 Costs – We have no evidence with which to assess the reasonableness of this assumption but recommend that you review it with your planning colleagues and consider what the average rate currently being negotiated and ensure this assumption is consistent with such rate.

 Abnormals Allowance – As you will be aware the level of abnormals vary significantly on a site by site basis and it is difficult to make a single assumption that will accurately reflect what developers may or may not incur on any specific site. For the purpose of an area wide viability study we therefore consider that the assumption stated is reasonable but a caveat should be made in your final report over the potential variation around this figure.

 Externals – We believe the assumption of 10% to be reasonable at the current time and appropriate given the adoption of BCIS figures for general build costs.

 Contingency – We typically adopt contingencies of between 2% and 5% with contingencies at the lower end of this range when a development is to come forward from a volume house builder. Given the nature of your appraisals we consider 5% however to be reasonable at the current time.

 NHBC Costs – We consider the assumption to be reasonable at the current time.

Build Period

We consider the build rates to be appropriate in current market conditions and sales rates to also be consistent with current demand. Within your appraisals, the first sales on any scheme should be timed to be delivered around 6 months from commencement of development when a volume house builder will typically have their first plot available.

Benchmark Land Value

The assumptions around benchmark land value are clearly the most challenging to establish and will be subject to most scrutiny when reviewed by the wider development industry. Within your appraisals you have adopted a fixed land price for the purpose of assessing what is a reasonable return to a land owner and there are certainly merits in adopting this approach and is well used for both area wide and site specific studies. In our appraisals we typically adopt the Shinfield approach whereby benchmark land value is calculated as 50% of the uplift in value between a site’s existing use value and the residual land value after taking into consideration abnormal development costs. Using this methodology the benchmark flexes considerably depending on the level of abnormal development cost and the type of site that is to be brought forward.

3

261 P04

Notwithstanding this alternative approach, there is a relatively limited amount of land sale evidence within Newcastle itself, however we are aware from our own experiences and those of other land agents, that in neighbouring authorities mid to high market greenfield land values are now typically in the order of £800,000 to £1,000,000 per acre with true mid market locations typically in the order of £600,000 to £800,000 per acre and low value areas typically in the order of £400,000 to £600,000. In our experience, you can typically reduce greenfield figures between 40% to 60% to account for abnormal cost deductions and the requirements to deliver Section 106 obligations. Using this as a reference point in reviewing your own benchmark figures, the assumptions appear broadly realistic, albeit there is little evidence base from which we can truly ascertain whether these figures are reasonable and indeed individual land owners will have their own expectations which may grossly inflate the figures being adopted.

Commercial

Scheme Types

We have reviewed the proposed development densities and size of developments with our appropriate market agency colleagues to ensure they remain realistic at the current time. In each case colleagues have confirmed that this assumptions appear reasonable for the purpose of a high level viability study.

Rental and Capital Values

The rents and yields have again been reviewed by appropriate colleagues who specialise in each of these sub market sectors. In broad terms each of the assumptions appears realistic at the current time with the exception of the following adjustments:

 Retail warehouses – We are advised that at the prime end of the market demand remains strong however there is now significant variation below this level in terms of demand for retail warehouse accommodation and this is having a knock on effect in rents. In our opinion, the rental values adopted should be adjusted as follows:

 Low value £110 per sq m  Medium £145 per sq m  High £160 per sq m

Across all retail warehouse scenarios the yield should also be increased to 8% to reflect current market position.

 Supermarkets – At the height of the market the assumption of £215 per sq m would consistently be achieved by the four largest supermarket chains, however as you have seen this is a significantly changing market with the dynamics of demand shifting significantly from larger supermarket stores to smaller convenience formats and the demand particularly from the large supermarket brands fluctuating significantly as a result of challenging trading conditions. As a result we believe slight variations in rental tones should be adopted with the £215 per sq m used at the high value point and stepped changes down from this level across medium and low markets.

4

262 P04

 Industrial (Use Class B2) – The rental figures adopted have again been reviewed by our commercial agency teams and they consider them to be high against current market conditions. We consider that the assumptions could be revised downwards to as follows:

 Low £35 per sq m  Medium £45 per sq m  High £60 per sq m

Build Costs

As with the residential appraisals you have again adopted BCIS data for the purpose of this study and as such these costs are considered reasonable. In addition, the associated professional fees, finance, profit and other cost assumptions are all within an acceptable range and so can also be considered reasonable.

We hope the above is of assistance to you in preparing your overall CIL study. If you need any further comments or input then please do not hesitate to contact us.

Yours sincerely

Jonathan Rudge MSc MRICS Associate Director RICS Registered Valuer

5

263 P04 264 P04 265 P04 266 P04 267 P04 Appendix 11 Post Draft Charging Schedule Submission Notes February 2016 1. Introduction 1.1 Following consultation on the Draft Charging Schedules (DCS) Community Infrastructure Levy (CIL) for Gateshead and Newcastle, further assessments were required in order to address representations. This report summarises our approach to these additional assessments and their findings.

1.2 Firstly, following consideration of consultation responses a review of retail appraisals and proposed CIL rates has been undertaken to test the proposed levy for supermarkets, retail warehouses and the threshold size of developments over which retail charges would apply. Subsequent to the viability review a revised supermarket rate is included in the Newcastle City Council Statement of Modification (NCC Modification Ref. No. 4) and Gateshead Council Modification (GC No. 2) in addition to a revised CIL rate for the retail warehousing category, see Modification references (NCC No.7) (GC No.3). Additional appraisal evidence is included in this Appendix to respond to an objection to the £0 CIL rate for retail warehousing in Newcastle Central Area.

1.3 Secondly, following consideration of consultation responses a review of student accommodation appraisals and proposed rates has been applied in Newcastle. Additional appraisals and sensitivity testing was undertaken and a revised rate is included in the Newcastle City Council Statement of Modification (NCC Modification No. 2)

These above elements are covered in more detail in the following sections of this Appendix. 2. Retail Appraisal Review 2.1 In response to 3 separate representations received on the CIL retail levies proposed in the Draft Charging Schedules a number of elements were included in the review undertaken with regard to the retail sector that has been the subject of significant economic change, they include: a) The validity of the DCS proposed rates, threshold size over which CIL charges apply and the definition for supermarkets; b) The validity of the DCS proposed rates, threshold size over which the CIL charges apply and the definition for retail warehousing; and c) The justification for the £0 CIL rate for retail warehousing in Newcastle Central Area 2.2 a) The validity of the DCS proposed rates, threshold size over which charges apply and the definition for supermarkets

268 P04 It is recognised that both authorities are currently experiencing a somewhat varied pattern of viability and delivery of supermarket schemes. The DCS authority wide CIL supermarket rate in both Gateshead and Newcastle of £30/sq m has been set (in common with the other rates) by having reference to a range of evidence, including development on the ground. The proposed rate cannot be justified or sustained by virtue of viability evidence alone as the results are somewhat inconsistent with what is actually happening in the market. The only typologies coming forward presently are either new build discount supermarkets or convenience stores which demonstrates viability in the specific value areas they are being developed. The main supermarket lead operators have changed the format of their stores in the last few years (during the CIL rate setting preparation and consultation periods), with smaller format convenience stores opening in Newcastle Central Area and high value locations (2013-15). Some of these are new build, but many are refurbishments of existing buildings which would not be subject to CIL charges. In Newcastle, 3 new build discounter supermarkets have recently been built in the Medium Commercial Value areas. Further supermarket modelling and sensitivity testing has been undertaken by reviewing and adjusting the yield and profit (where appropriate) to reflect known recent market transactions on the larger format supermarkets. However, the Council acknowledges that there is a lack of recent publically available transactional evidence on the smaller format new build stores and have therefore added further caution by reducing the rate to £10/sq m. The above referenced sensitivity testing has been undertaken by reducing the yield in the high and city centre value areas as it is considered that if a supermarket is developed in these locations they would offer a more secure investment and this would be reflected in any investment yield. In comparison, whilst the recent discounter supermarkets that have been built in the Low value areas (CIL Zone 3) represent a strong covenant, it is likely that any onward sale of the investment would attract a slightly higher yield due to likely limitations to the discount market in such locations. Additionally, the Councils are aware of recent supermarket transactions completing at profit levels nearer 15% of cost which gives additional headroom to the existing appraisals. The combination of these 2 viability inputs suggest there is sufficient headroom to propose authority wide CIL charges at £10/sq m with a cautious viability buffer. It is unlikely that we will see any larger format developments coming forward in the near future, but to ensure all supermarket formats remain viable, it is proposed to reduce the rate to £10 across all charging zones. Such rates would not put the delivery of the Plan at serious risk. An additional appraisal to the supermarket and discounter supermarket appraisals consulted on at Appendix 8 is included below at 1.1. The threshold size over which the supermarket CIL charges is set at over 280 sqm has been tested and is considered justified. Stores under 280 sqm represent a clear difference in nature of operation to medium/larger format stores with associated car parking and characterised by Sunday trading operation regulations.

269 P04 The definition is considered effective and appropriate for this form of development.

2.3 b) The validity of the DCS proposed rates, threshold size over which the CIL charges apply and the definition for retail warehousing As part of the retail review, the retail warehousing typologies have also been reviewed. The rents were adjusted at DCS stage in response to DTZ’s ( now known as Cushman and Wakefield) advice (see Appendix 9), however, DTZ have more recently suggested that a more appropriate yield would be 7% rather than the 8% which was consulted on in the most recent round of consultation.. The result of this change in yield is a reduction in the available headroom such that in the High value area an adjustment to the CIL rate would be appropriate to ensure the rate is set with a cautious buffer to allow for changes in viability. The results of the additional appraisal suggests there is sufficient headroom in Commercial Zones 2 and 3 (Low/ Medium/ High Value Areas) to derive CIL charges at a reduced rate from £80/sqm to £50/sqm, with an allowance for a cautious viability buffer. Such rates would not put the delivery of the Plan at risk. The original viability appraisal is located in Appendix 8 of this Annex and the revised appraisal is attached to this Submission Notes Appendix 11 at 1.2 below. The appraisal in Appendix 8 of this Annex, tested the retail warehouse scheme at 1,000 sqm Gross Internal Area in size. In response to a representation to the threshold size over which CIL retail warehouse charges will apply (over 280 sqm) being too low and placing an unacceptable burden on bringing forward small scale developments with economic benefits, further sensitivity testing has been undertaken. We have given consideration to the threshold size of 280 sqm and tested the retail warehouse appraisals at different scales of operation, however, this does not materially affect the available headroom. As indicated in 2.2 above the threshold of 280 sqm and above is based on a difference in nature of operation, and there is, therefore, no proposal to amend the threshold size over which CIL is applied. The development ‘use’ category for both authorities is “Retail Warehousing (A1), vehicle sales (Sui Generis)”, whereby “Retail warehouses are usually large stores specialising in the sale of household goods (such as carpets, furniture and electrical goods), DIY items and other ranges of goods. They can be stand-alone units, but are also often developed as part of retail parks. In either case, they are usually located outside of existing town centres and cater mainly for car-borne customers. As such, they usually have large adjacent, dedicated surface parking.”

This definition is considered to be clear and appropriate for application to proposed development schemes as submitted for planning permission. The economic appraisals tested are considered to be generic across comparison retail schemes, however, it is recognised that ‘vehicle sales (sui generis)’ is more difficult to appraise with real precision and given that this development typology is not currently anticipated or planned for, it is proposed to Modify this development use category

270 P04 and delete ‘vehicle sales (sui generis)’ from both authorities DCSs as submitted (Modification NCC No. 6/ GC No. 3).

2.4 d) The justification for the £0 CIL rate for retail warehousing in Newcastle Central Area Retail warehousing is not a form of retailing that is currently typical of the City Centre or Newcastle Central Area. The opportunities for this form of retailing in the future would be very much limited to the fringes of Newcastle Central Area and have not therefore been tested. The £0 rate proposed would not therefore put this form of development at risk.

3. Student Accommodation Appraisal Review 3.1 Secondly, as indicated a review of the student accommodation appraisals have been undertaken in response to receipt of 3 separate representations received to the Newcastle DCS. No previous responses on the proposed student accommodation levy of £80/sqm in Newcastle Central Area and Zone 2 were received at the PDCS (April 2015) stage of consultation, however, as part of due diligence it is considered appropriate to undertake such a review at this stage prior to submission. Recent national research and press indicates a continued strong market for student accommodation in Newcastle. Savills World Research ’Spotlight: World Student Housing’ (2015/16)i , states rapid wealth creation in emerging economies has led to a surge in globally mobile students seeking quality education overseas and, in turn, a place to stay. At the same time recessionary conditions in western markets have led to a surge in domestic student numbers, driving the need for student accommodation at home and further boosting demand for accommodation. Growing demand is set alongside very low levels of supply in many markets, making student housing a secure and appealing investment. Student housing is now a firmly established investment class in the UK and US. The article goes on to identify the universities by ranking those that are still seeing a growth in undergraduate numbers in the UK post tuition fees. Newcastle University with a Complete University Guide score of 791 (2016)ii is still growing in the non UK market and places Newcastle with around 75% of its students living in halls or the private rented sector.iii As such, there is no available evidence that indicates student accommodation schemes will not continue to be received for future planning consent. The appraisals for the student accommodation typology in the Newcastle commercial value areas are included at Appendix 8 of this Annex Update. These appraisals have been checked and verified with an additional 2 further typologies tested based on recent consented schemes to provide a wider reference point in deriving a robust CIL rate for student accommodation.

271 P04 A sensitivity analysis against the original appraisals was prepared and a series of appraisals on additional student development typologies were carried out on Argus Developer using the following assumption adjustments to test the objections to viability assumption received, this includes: (1) Updating the finance arrangement fee to 1.5% of construction cost ( although this is at the top end of our expectations) (2) Updating construction costs have been checked (at BCIS 4Q15) to ensure that any changes to more recent increased BCIS build cost levels are still within confidence limits compared to the base date of 4Q14 for this Annex.

Updated net income levels per room in response to upwards movements in the market have also been considered for 4Q15- see table 1 below.

TABLE 1 STUDENT ACCOOOMDATION RENTS (2015)

source ANNUAL RENT THE VIEW - CITY CENTRE - 51 WEEK LET SILVER STUDIO website 22-1-16 £ 8,640 GOLD STUDIO £ 8,791 PLATINUM STUDIO £ 9,092 SHARED APARTMENT - STANDARD website 22-1-16 £ 6,430 SHARED APARTMENT - PREMIUM £ 7,032 SHARED APARTMENT - DELUXE £ 7,485 ROSEDALE COURT - STODDART ST. SHARED APARTMENT ROOM website 8-11-16 £ 6,018 SINGLE STUDIO (standard price) £ 9,690

(3) Amending the yield from 7.5% for City Centre appraisals to 6.5%. This adjustment is also borne out by recent evidence obtained and is considered a more accurate reflection of the market against the recent Savills research documents referred to above. One representor referred to what had been charged through planning obligations for schemes with consent. However, these costs are not part of the viability appraisals, and it is worth noting that the CIL compliant s106 costs have been amended to an average of £2,000 per scheme to allow for any necessary direct works or traffic orders to make the development acceptable in planning. Build costs have been subject to sensitivity analysis to BCIS 4Q15. We have also had regard to recent CIL Examiner’s decisions and have concluded that a CIL charge being assessed to fall under 2% of GDV or 25% of the residual value of the land are of assistance in deriving a CIL rate in addition to a headroom viability buffer in order proposed rates do not threaten the ability to develop viably the scale of development in the Plan. We have also taken a ‘step back’ and looked at the market as a whole.iv

272 P04 The City Council has taken two key tasks in reviewing appropriate and available evidence–establishing an accurate assessment of viability and supported by market intelligence. Student Housing is one of the main major development types being considered and delivered in Newcastle Central Area at present and as such competition for sites is amongst developers competing for these opportunities. This means that site development for other less viable uses can be ‘priced out’ unless there are specific policies or ownership patterns that prevent this. Therefore a question to be asked is what would happen if CIL were levied – it is our opinion that the premium for student housing development land is such that a levy at the rate suggested would not take the residual value of the scheme to below a level where it could not compete against alternative uses. The strength of the student accommodation market is evidenced by recent transactions that have occurred at significantly over the established threshold value and alternative use value. The additional appraisal results are attached to this Submission Notes Appendix 11 at 2.1-2.4 and are summarised as set out below in Table 2. The results indicate the resultant headroom per sqm for a number of notional student accommodation schemes varying in scale and mix of studio and cluster flats. Appraisal 1 is the base appraisal Developed for the CIL PDCS and DCS evidence 16,266 sqm 0.75 ha. 32% studios/ 68% rooms in clusters; Appraisal 2 adopts the same notional scheme as Appraisal 1 with updates (1-3 above); Appraisal 3 represents a smaller scheme of 3,600 sqm/ 0.15 ha with 50% studios/ 50% rooms (in clusters). Appraisal 4 represents a smaller scheme of 5,073 sqm/ 0.09 ha with 7% studios/ 93% rooms (in clusters). TABLE 2 STUDENT ACCOMMODATION- APPRAISAL HEADROOM Base Base Appraisal 3 Appraisal 4 appraisals appraisal (4Q15) Residual 4,092,524 3,690,549 2,776,947 712,722 Value Threshold 2,100,000 2,100,000 2,100,000 2,100,000 Value/ ha. Threshold 945,000 945,000 304,500 189,000 Value (£) Headroom (£) 3,147,524 2,745,549 2,472,447 523,722 Non CIL costs 2,000 2,000 2,000 2,000 (£) Headroom 3,145,524 2,743,549 2,470,447 521,722 After Non CIL costs(£) Headroom / 193 169 686 103 sqm (£)

273 P04

The available headroom suggests that a cautious rate would be derived at £50/m2 with an allowance for a viability buffer. This also provides a reasonable residual value for each of the tested schemes and also tallies with the tone of the 2% Gross Development Value /25% Residual Value tolerance testing. The Council have also carried out additional sensitivity adopting much higher threshold values than those shown above, this also indicates that a cautious rate has been derived (as modified). 4. Conclusion Subsequent to the above evidence review, a revised supermarket rate is included in the Newcastle City Council Statement of Modifications (NCC Modification Ref. No. 4) and Gateshead Council Statement of Modifications (GC Modification No. 2) in addition to a revised CIL rate for the retail warehousing category, see Modification references (NCC No.7) (GC No.3). Additional appraisal evidence is included in this Appendix to respond to an objection to the £0 CIL rate for retail warehousing in Newcastle Central Area.

In Newcastle a Modification has also been made to the rates for student accommodation. The modifications to the DCSs are summarised in the Background Paper (P01) and the DCSs incorporating Modifications are summarised below for ease of read.

Newcastle City Council Submission Draft Charging Schedule (February 2016)

Newcastle Commercial Development and Residential Residential Central Commercial, Zone 3 Use Class Zone A Zone B Area, Zone 2

Zone 1 Dwellings* (inc. sheltered housing) £60/sqm £30/sqm £0 - - (C3) Shared/ Student Accommodation (C3, - - £50/sqm £50/sqm £0 C4, Sui Generis)

Hotels (C1) - - £0 £40/sqm £0

Small retail (A1) units - - £0 £30/ sqm £0 ≤ 280 sqm

Supermarket** (A1)> - - £10/sqm £10/sqm £10/sqm 280 sqm

Retail Warehousing*** - - £0 £50/ sqm £50/ sqm (A1) > 250 sqm

274 P04 All Other £0 £0 £0 £0 £0 Development**** Gateshead Council Submission Draft Charging Schedule (February 2016)

Development and Use Residential Residential Gateshead Gateshead Gateshead Class Zone A Zone B Commercial Commercial Commercial (Central Zone 2 Zone 3 Area) Zone 1 Dwellings* (inc. £60/sqm £30/sqm - - - sheltered housing) (C3) Hotels (C1) - - £0 £40/sqm £0 Small retail (A1) units - - £0 £30/sqm £0 ≤ 280 sqm Supermarket (A1)** > - - £10/sqm £10/sqm £10/sqm 280 sqm Retail Warehousing - - £0 £50/sqm £50/sqm (A1)*** > 280 sqm, All Other £0 £0 £0 £0 £0 Development**** *Dwellings- includes houses and flats

**Supermarkets are convenience–led stores selling mainly everyday essential items, including food, drinks, newspapers/ magazines and confectionary, where it is intended to utilise less than 50% of the gross retail floor area for the sale of comparison goods and where, depending on scale, weekly food shopping needs are met. In addition, the area used for the sale of goods will generally be above that applied for the purposes of the Sunday Trading Act of 280sq. m.

***Retail warehouses are usually large stores specialising in the sale of household goods (such as carpets, furniture and electrical goods), DIY items and other ranges of goods. They can be stand-alone units, but are also often developed as part of retail parks. In either case, they are usually located outside of existing town centres and cater mainly for car-borne customers. As such, they usually have large adjacent, dedicated surface parking.

****For clarity this includes: Office (Use Class B business, industry, storage and distribution), Extra Care (Use Class C2)

i http://www.savills.co.uk/research_articles/188297/193140-0 ii http://www.thecompleteuniversityguide.co.uk/league-tables/rankings?v=wide iii http://pdf.euro.savills.co.uk/residential---other/spotlight--uk-student-housing-2015.pdf iv CIL Issues and Questions to be Discussed at the Hearing Session on Leicester City Council DCS (6 November 2015) http://www.leicester.gov.uk/media/180446/cil-leicester-student-miqs-oct-2015.pdf and CIL Evidence Examiner’ Reports from Birmingham City Council and Bournemouth BC. http://www.birmingham.gov.uk/cil http://www.bournemouth.gov.uk/PlanningBuilding/PlanningPolicy/PlanningPolicyFiles/CILExamination/CIL- Examiners-Report-301015.pdf

275 P04 Appendix 11 Appraisals 1.1 Supermarket Appraisal Revised

Supermarket LOW MEDIUM HIGH CITY CENTRE 1. DEVELOPMENT VALUE QUANTUM UNIT RATE UNIT TOTAL QUANTUM UNIT RATE UNIT TOTAL QUANTUM UNIT RATE UNIT TOTAL QUANTUM UNIT RATE UNIT TOTAL GROSS FLOOR AREA 5000 GFA m2 95% 5000 GFA m2 95% 5000 GFA m2 95% 5000 GFA m2 95% NET LETTABLE AREA 4750 GIFA 150 per m2 4750 GIFA 195 per m2 4750 GIFA 215 per m2 4750 GIFA 215 per m2 INVESTMENT YIELD £ 712,500 p.a. 6.75% £ 926,250 p.a. 6.50% £ 1,021,250 p.a. 6.00% £ 1,021,250 p.a. 5.75% RENT FREE 12 MONTHS 0.94 12 MONTHS 0.94 12 MONTHS 0.94 12 MONTHS 0.95 GROSS DEVELOPMENT VALUE £ 9,888,108 £ 13,380,282 £ 16,057,390 £ 16,795,149 Less Buyer's Costs £ 9,888,108 -5.00% -£ 494,405.41 £ 13,380,282 -5.0000% -£ 669,014.08 £ 16,057,390 -5.0000% -£ 802,869.50 £ 16,795,149 -5.0000% -£ 839,757.43 NET RECEIPT £ 9,393,703 £ 12,711,268 £ 15,254,520 £ 15,955,391

2 DEVELOPMENT COSTS BUILDING COSTS ESTIMATE (INC. PRELIMS, OH & P) 5000 m2 1084.164 per m2£ 5,420,820 5000 m2 1084.164 per m2£ 5,420,820 5000 m2 1084.164 per m2 £ 5,420,820 5000 m2 1084.164 per m2 £ 5,420,820 EXTERNAL WORKS £ 5,420,820 11.25% £ 609,842 £ 5,420,820 11.25% £ 609,842 £ 5,420,820 11.25% £ 609,842 £ 5,420,820 11.25% £ 609,842 FEES £ 6,030,662 10% £ 603,066 £ 6,030,662 10% £ 603,066 £ 6,030,662 10% £ 603,066 £ 6,030,662 10% £ 603,066 ABNORMALS ALLOWANCE £ 6,030,662 5% £ 301,533 £ 6,030,662 5% £ 301,533 £ 6,030,662 5% £ 301,533 £ 6,030,662 5% £ 301,533 CITY CENTRE ABNORMALS £ 6,030,662 0 -£ £ 6,030,662 0 -£ £ 6,030,662 0 £ - £ 6,030,662 0.05 £ 301,533 CONTINGENCY £ 6,030,662 5% £ 301,533 £ 6,030,662 5% £ 301,533 £ 6,030,662 5% £ 301,533 £ 6,030,662 5% £ 301,533 EPC 5000 m2 0.50£ £ 2,500 5000 m2 0.50£ £ 2,500 5000 m2 0.50£ £ 2,500 5000 m2 0.50£ £ 2,500 DEVELOPMENT FINANCE (ON HALF BUILD) 1.25 yrs 6.50% £ 293,994.78 1.25 yrs 6.50% £ 293,994.78 1.25 yrs 6.50% £ 293,994.78 1.25 yrs 6.50% £ 306,244.57 FINANCE ARRANGEMENT FEE £ 7,239,295 0.10% £ 7,239 £ 7,239,295 0.10% £ 7,239 £ 7,239,295 0.10% £ 7,239 £ 7,540,828 0.10% £ 7,541 SALES FEES £ 9,393,703 1.25% £ 117,421 £ 12,711,268 1.25% £ 158,891 £ 15,254,520 1.25% £ 190,682 £ 15,955,391 1.25% £ 199,442 LETTING FEES £ 712,500 15.00% £ 106,875 £ 926,250 15.00% £ 138,938 £ 1,021,250 15.00% £ 153,188 £ 1,021,250 15.00% £ 153,188 PROFIT REQUIREMENT 20% £ 1,565,617 20% £ 2,118,545 20% £ 2,542,420 20% £ 2,659,232 DEVELOPMENT COSTS £ 9,330,442 £ 9,956,902 £ 10,426,818 £ 10,866,475

AMOUNT AVAILABLE FOR SITE PURCHASE £ 63,261 £ 2,754,366 £ 4,827,703 £ 5,088,916 SDLT £ 566 £ 24,631 £ 43,172 £ 45,508 LEGALS AND SURVEYORS FEES ON PURCHASE £ 2,263 £ 98,524 £ 172,688 £ 182,031 FINANCE £ 3,861 £ 168,107 £ 294,649 £ 310,591 RESIDUAL VALUE £ 56,571 £ 2,463,104 £ 4,317,194 £ 4,550,786

BENCHMARK VALUE URBAN £ 400,000 £ 2,000,000 £ 4,200,000 £ 4,200,000 BENCHMARK VALUE NON URBAN £ 120,000 £ 600,000 £ 1,260,000 £ 1,260,000 HEADROOM URBAN HEADROOM PER M2 -£ 68.69 -£ 343,429 HEADROOM PER M2 £ 92.62 £ 463,104 HEADROOM PER M2 £ 23.44 £ 117,194 HEADROOM PER M2 £ 70.16 £ 350,786 HEADROOM NON URBAN HEADROOM PER M2 -£ 12.69 -£ 63,429 HEADROOM PER M2 £ 372.62 £ 1,863,104 HEADROOM PER M2 £ 611.44 £ 3,057,194 HEADROOM PER M2 £ 658.16 £ 3,290,786

276 P04 1.2 Retail Warehouse Appraisal Revised

Retail Warehouse LOW MEDIUM HIGH 1. DEVELOPMENT VALUE QUANTUM UNIT RATE UNIT TOTAL QUANTUM UNIT RATE UNIT TOTAL QUANTUM UNIT RATE UNIT TOTAL GROSS FLOOR AREA 1000 GFA m2 95% 1000 GFA m2 95% 1000 GFA m2 95% NET LETTABLE AREA 950 GIFA 110 per m2 950 GIFA 145 per m2 950 GIFA 160 per m2 INVESTMENT YIELD £ 104,500 p.a. 7.00% £ 137,750 p.a. 7.00% £ 152,000 p.a. 7.00% RENT FREE 12 MONTHS 0.93 12 MONTHS 0.93 12 MONTHS 0.93 GROSS DEVELOPMENT VALUE £ 1,395,194 £ 1,839,119 £ 2,029,372 Less Buyer's Costs £ 1,395,194 -5.00% -£ 69,759.68 £ 1,839,119 -5.0000% -£ 91,955.94 £ 2,029,372 -5.0000% -£ 101,468.62 NET RECEIPT £ 1,325,434 £ 1,747,163 £ 1,927,904

2 DEVELOPMENT COSTS BUILDING COSTS ESTIMATE (INC. PRELIMS, OH & P) 1000 m2 566.13 per m2 £ 566,130 1000 m2 566.13 per m2 £ 566,130 1000 m2 566.13 per m2 £ 566,130 EXTERNAL WORKS £ 566,130 11.25% £ 63,690 £ 566,130 11.25% £ 63,690 £ 566,130 11.25% £ 63,690 FEES £ 629,820 10% £ 62,982 £ 629,820 10% £ 62,982 £ 629,820 10% £ 62,982 ABNORMALS ALLOWANCE £ 629,820 5% £ 31,491 £ 629,820 5% £ 31,491 £ 629,820 5% £ 31,491 CITY CENTRE ABNORMALS £ 629,820 0 £ - £ 629,820 0 £ - £ 629,820 0 £ - CONTINGENCY £ 629,820 5% £ 31,491 £ 629,820 5% £ 31,491 £ 629,820 5% £ 31,491 EPC 1000 m2 £ 0.50 £ 500 1000 m2 £ 0.50 £ 500 1000 m2 £ 0.50 £ 500 DEVELOPMENT FINANCE (ON HALF BUILD) 1.00 yrs 6.50% £ 24,562.97 1.00 yrs 6.50% £ 24,562.97 1.00 yrs 6.50% £ 24,562.97 FINANCE ARRANGEMENT FEE £ 756,284 0.10% £ 756 £ 756,284 0.10% £ 756 £ 756,284 0.10% £ 756 SALES FEES £ 1,325,434 1.25% £ 16,568 £ 1,747,163 1.25% £ 21,840 £ 1,927,904 1.25% £ 24,099 LETTING FEES £ 104,500 15.00% £ 15,675 £ 137,750 15.00% £ 20,663 £ 152,000 15.00% £ 22,800 PROFIT REQUIREMENT 20% £ 220,906 20% £ 291,194 20% £ 321,317 DEVELOPMENT COSTS £ 1,034,751 £ 1,115,299 £ 1,149,819

AMOUNT AVAILABLE FOR SITE PURCHASE £ 290,683 £ 631,864 £ 778,085 SDLT £ 2,599 £ 5,650 £ 6,958 LEGALS AND SURVEYORS FEES ON PURCHASE £ 10,398 £ 22,602 £ 27,832 FINANCE £ 17,741 £ 38,564 £ 47,489 RESIDUAL VALUE £ 259,944 £ 565,047 £ 695,806

BENCHMARK VALUE URBAN £ 60,000 £ 300,000 £ 630,000 BENCHMARK VALUE NON URBAN £ 18,000 £ 90,000 £ 189,000 HEADROOM URBAN HEADROOM PER M2 £ 199.94 £ 199,944 HEADROOM PER M2 £ 265.05 £ 265,047 HEADROOM PER M2 £ 65.81 £ 65,806 HEADROOM NON URBAN HEADROOM PER M2 £ 241.94 £ 241,944 HEADROOM PER M2 £ 475.05 £ 475,047 HEADROOM PER M2 £ 506.81 £ 506,806

277 P04 2.1 Student Accommodation - Base Appraisal (4Q14)- large scale mix of studios and cluster flats

278 P04 2.2 Student Accommodation - Revised Base Appraisal (4Q15) - large scale mix of studios and cluster flats

279 P04 2.3 Student Accommodation - Base Appraisal (4Q15) - Higher proportion of studio rooms to cluster accommodation

280 P04 2.4 Student Accommodation - Base Appraisal (4Q15) - Smaller proportion of studio rooms to cluster accommodation

281 P04