SOUTH EAST OFFICE INVESTMENT NATIONALNATIONALPO OFFICERT FOFFICESOSLI OFFICEO SE COFFICEINVETOSRTMENT INVESTMENT Q2 Market Overview Q2Q2 2021 2021H Mark1 2Market0e2t 1Ov Merviea Overviewrwket Overview £1.6bn 38 £41M 7.28% £410 5.0 Years 7.2 Years Tot£545.4Mal InvestmenYTDt (Q2) Key DaNo.t Dealsa32 Aver£17Mage Deal Size Av7.18%g. Yield (NIY) Av£220g. Cap Val £psf 4.4Avg. A WULyrTs to Breaks 7.0Avg. A WULyrT sto Expiries Total Investment (Q2) No. Deals Average Deal Size Avg. Yield (NIY) Avg. Cap Val £psf Avg. AWULT to Breaks Avg. AWULT to Expiries £5.0bn 43 £117M 5.67% £190 43 Total Investment (H1) £537.8MNo.£383.9M Deals Average Deal 19Size 20Avg. Yield£28.3M (NIY)£19.2MAvg. Cap Val £psf7.05%6.94%No. Investors Under Offer No. U/O Assets Avg. Deal Price (U/O) Avg. Yield (NIY) U/O £809.8M 44 Under Offer No. U/O Assets Avg. Deal Price (U/O) Avg. Yield (NIY) U/O Available£1.3bn & Under QuartOffer No.erly of Av ailable- K 77&e U/Oy DaAssetsta Available, Exchanged & Under Offer Available & Under Offer No. of Available & U/O £272.0M 25 £10.9M 8.19% Assets £914.4MAvailable No. Available57£ Asse1.ts1bnAvg. Deal£15.6M Price Avail. Avg. Y6.97%ield (NIY) Avail. Available & Under Offer £2.6bn £2.3bn 9.6A%vailable No. Available Assets Avg. Deal Price 6Avail. Avg. Yield (NIY)5 Avail. Total Investment QTD Previous QTR % Comparison £1.7bn No. of U/O Por olios No. of Avail. Por olios Na onal Offices Annual Transac on Volumes & Yield Quarterly TransacExcohnan Vgeodlume £7bn £0.8bn £780M £6.8bn Quarterly Transac�o£n66 1VMolume Comparisons South East office Annual Tran£s6a.2cb�n on Volumes & Yield 12% £4bn £2.0bn £6bn £0.6bn £5.7bn 10% £545M £538M £5.6bn Annual£3.9bn Transac�on Volume and Yield (NIY) £3.8bn £3.8bn £3.2bn Completed£3.2 bExnchanged Under Offer Available Yield (NIY). 10% £1.58bn £5bn £2.9bn £0.4bn £1.5bn £360M £3bn £328M £327M 10% £2.6bn £1.28bn £15bn £4.3bn £4.4bn Under 7.32% 7.40% 8.64% 8.48% 8% £1.07bn Offer & 6.82% 8.28%6.64% £2.1bn £4bn 7.98% 8.01%86.0.52%9% 6.36% 8.01% 6.57% £0.2bn Exchanged 7.89% £1.0bn £0.91bn £2bn 8% 7.27% 7.34% 5% £0.81bn 7.04% 6.82% 6% 6.56% £0.0bn £0.60bn £0.56bn £3bn 2020 Q1 2020 Q2 2020 Q3 2020 Q4 6.11%2021 Q1 2021 Q2 2021 Q3 £0.44bn £0.46bn £1bn £10bn 6.79% £0.5bn £0.38bn 6% £2.1bn £0.27bn 4% 5.94% Under £2bn Offer £14.4bn £0.0bn £0.9bn £0bn 0%£13.3bn 2014 2015 2016 2017 2018 2019 2020 2021 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 2021 4% Investment £12.0bnvolumes for Q2 and H1 2021 ar£1.7bne up 52% £1bn £0.9bn 2% Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 Qtr 4 Qtr 1 Qtr 2 Qtr 3 £5bn and 38% respectively on 20£10.0bn20 figures demonstra ng £8.7bn £8.0bn £8.6bnthe improved investor sen ment for regional offices, 2% £0bn 0% however, ac vity remains significantly below 5-10 £5.0bn 2014 2015 2016 2017 2018 2019 2020 2021 year averages. Q2 Investment Volume - Town Centre VS Business Park Q2 Transac�on Volume Range - No of Deals & Yield £0bn 0% 2014 2015 2016 2017 10 2018 2019 2020 2021 10% 9 10 £0.3bn (21.54%) 9.04% 7.78% Q2 2021 - Investment Volume by Sub-Sector Q2 2021 - Investment Volume by UK7.22% Region 7 7 £200M 7.15% 6.78% £53M (10%) Portfolio Sub-Sector Transac�on £150M5 £143M 5% 5.24% £120M 52% £101M 14 £100M £4bn 2 2 12 £75M Exchanged £66M 12 Investor confidence and a1ppe�te re- £120M (22%) £1.7bn £1.2bn (78.46%) £50M emerging for other sectors. 4x increase 0 £23M 0% £3bn 10 in Alterna ve Po£r9M olio £v8oMlumes in H1 Sub £5m £200m+ £0M £5m-£10m £10m-£20m £20m-£50m 202£50m-£100m1 (£0.9£100m-£200mbn) compared to H2 2020 Business Park Town Centre North e… Yorkshire &8 Scotland Midlands South Wales North East West (P olio) the (£0.25bnW),es at lbeit s ll muted compared £2bn Humber to the £6bn transacted in 2019. Office 6 £373M (68%) por olio volumes are set to eclipse £2.6bn 4 2019 levels if deals under offer transact. 3 3 £1bn Q2 Ac�ve Capital - Purchaser 2 Q2 Top 10 - Purchaser Overview The North West and Yorkshire were Industhe two mosoliot acti dealsve r reemaingions a t eye PURCHASER 2 TRANSACTED NO. OF AVG. YIELD AVG. CAP £0.8bn £770M £0.9bn £0.8bn in Q2 both recording over £100m of completed transac ons with 2 VOwLUaMteringE DleEvAelsLS – H1( NvolumesIY) (£2.6bn)VAL £PSF nearly £0.5bn figures bolstered by Marquee dea ls cmaomtchingple ntotg alin 2020 the mvolumesajor (£3.0m) and £0bn 0 Brookfield lik£ely714 Mto deliver1 a 2x increase by year£4 4end.6 P olio - P olio - P olio - Office P olio - Retail P oliocen - tOtherres,s naPmeolioly -8 Mix Fedirst Street in Manchester and Broadgate in £0.6bnTown Centre Por olio Business Park Industrial Alterna e LeedGsl.o bal Net Lease Inc £170M 1 6.66% £202 Colmore Capital £134M 2 9.44% £265 £0.4bn £320M Oval £70M 1 5.97% £533 Morgan Stanley £50M 1 4.52% £626 Q2 2021 Ac ve Capital £-1 P91uMrchaser Q2 2021 Top 10 - Purchaser Overview £0.2bn Tr olume£16 Rang4M e - No of Deals & Yield OxfordMark proper�etinges Strategy Analysis£45M 1 3.60% £768 Purchaser Transacted No. of Deals Avg. Yield (NIY) £200M £184M 10 £34M Kennedy Wilson £45M 1 7.51% £242 £16M £9M Volume 12 £6M £4M £0.0bn Brunswick £33M 1 11.92% £171 s s Trinity IM £120M 1 e… or £150M seas at t er ves Charity Columbia Threadneedle £32M 2 6.48% £526 �tu�on veloper8 Occupier 8 Revcap £85M 1 6.97% Ov Ins e In De Undisclosed at £29M 2 6.99% £371 £10operty7M Companies Priv Ashtrom Proper es 6.1% £82M 1 5.54% Pr £92M 7 £100M 10% GrosvenToortal ££516,M322M 132 7.18%5.80% £408 Opportunity Funds / Priv 6 Undisclo%se odf Market £26M82% 5 8.17% £50M Equi x £21M 1 6.68% 6.80% £32M £31M 5 6.24% £22M Marketing Strategy 5.84% £16M £15M Stamford Property Investment £21M 1 £6M 5.55% 5.16% £2M Trinova £15M 1 Off5. 8M6%arket £0M t… s s s 5% 39.7% seas a tor Glade Capital £14M 1 Re9s.t3r7i%cted Marke ng er es 54.1% Q2 Ac�ve Capital - Vendov r veloper Q2 Top 10 - Vendor Overview Ov Ins 5.08% Occupier Occupier te In Ins Undisclosed De McAleer & Rushe £10M 1 £0.8bn a Widely Marketed operty Compan… Priv 2 VENDOR TRANSACTED NO. OF AVG. YIELD AVG. CAP Pr £734M Total £449M 15 7.16% VOLUME DEALS (NIY) VAL £PSF Opportunity Funds / Priv % of Market 82% £592M TPG £714M 1 £446 £0.6bn 0 0% McLaren £170M 1 6.66% £202 New money is now emerging with some convic on and we have seMen& Ga R meaal Esrktaetde shiftThe in i nmarkvesteot rr emainsapp£eti15 topaque4eM for ma with4jo rthe re gviaso9.nt1 1majoritya%l city of£ 287 £200m+ £5m-£10mcentre£10m-£20m offices. Property£20m-£50m Companies were the most ac�ve buyers in Q2 2021 and H1 2021olio accoun�ng tr for c.34% and c.28%estrict ed or off market £0.4bn £50m-£100m £100m-£200m Aviva Investors £103M 4 7.66% £440 marke�ng strategies. The importance of market insight and of total volumes respec�vely. LaSalle Investment Management £65M 2 5.13% £666 investor con annot be underes�mated. Columbia Threadneedle £57M 5 5.64% £387 £177M £0.2bn CCLA £45M 1 3.60% £768 Q2 2021 - Ac ve Capital - Vendor Q2 2021Black RToopck 10 - Vendor Overview £45M 1 7.51% £242 £26M £25M £15M £8M Nuveen Vendor Transacted£44MNo. of Deal2s Avg. Y6ie.l6d7 (N%IY) £442 £0.0bn £122M Pur£118Mchaser Type - Tr olume & Yield Volume Opportunity Ins�tu�on Occupier Developers Property Councils Private UBS P£3r3Mivat1e 11.92% £171 Funds / Companies Investors £4bn BioCity Group 10% £120M 1 £100M Private Equity £3.7bn Total £E1,4q30Muity22 7.23% £406 £82M Northwood £85M 1 74%6.97% £70M GMPVF £82M 1 5.54% £50M Patrizia £Whils35M t investor2 appetite in 62020.71% was £50M £3bn Undisclosed £domina30M ted by 6long term holder9.53%s of real £30M 5.97% estate / non trading entites H1 2021 has £21M Kames £27M 1 4.89% £19M £15M 5.62% 5.50% Q2 Key Deals £11M seen a marked shi� in transac�on ac�vity £5M CBRE Global Investors £21M 1 6.68% £2M with new players / new platforms and A£0MDDRESS £2bn 5.73% TOWN FLOOR AREA AWULT TO AWULT TO QUOTE QUOTECatalysDt ICFaFpital SALE SALE 5%SALE DATE £21M PURCHASER1 VEND OR s s a… (SQ FT) BREAorKS EXPIRIES PRICE YIELD PRICE NIY established PE investors accoun�ng for 74% seas t ehicles er ves Other Credit Suisse Asset Man £15M 1 5.86% Occupier Councils veloper Ins Ov e In of the buyer ac�vity, in par�cular within Ins Undisclosed ted V at De 4.46% Lis AstaZeneca, Unit 310, Milton Road Cambridge 58,629 Priv 3.0 Years 3.0 Years NQ.