Strawberry Star Real Estate PCC Limited (Cell 1) Quarterly Report – Q3 2020 Prepared by Strawberry Star Capital Private & Confidential Strawberry Star UK Real Estate PCC Ltd Contents 1. Covid-19 Response ................................................................................................................ 3 2. Fund Overview ...................................................................................................................... 4 3. Summary – Lu2on .................................................................................................................. 5 Background Location Design and Planning Construction Progress Funding Health and Safety Sales Marketing Summary 4. Lu2on Shaping Your Future ................................................................................................... 8 5. Summary – Kenton .............................................................................................................. 11 Background Location Design and Planning Funding Rental Sales and Marketing Summary 6. Summary – Harlow .............................................................................................................. 13 Background Location Design and Planning Funding Sales and Marketing Summary 7. Summary – Wembley (Watkin Road) ................................................................................. 15 Background Location Design and Planning Funding Sales and Marketing Summary 8. Impact of Covid-19 .............................................................................................................. 17 Housing Market Development Land Long-term prospects Sources Appendix 01 ............................................................................................................................. 19 Overall UK Residential Market Private Rental Project Specific Strawberry Star UK Real Estate PCC Ltd 1. Covid-19 Response We reassure you that at Strawberry Star Group “SSG” we are treating the Covid-19 outbreak as our greatest priority and we are committed to supporting our Investors as we work through these challenging times to overcome the impact of the pandemic. Our teams are working tirelessly and we remain proactive in our approach towards business. We are balancing the needs of our clients whilst ensuring the health and safety of our employees. Although times have changed, our mission and values remain the same. In response to the developing situation, the necessary precautionary measures are being taken. We have robust contingency plans in place to safeguard the interests of our Investors. We are working closely with our lending partners, contractors and consultants to mitigate the cost and time implications on the ongoing projects as much as possible. Please be assured that we will continue to monitor the situation closely and provide you with the latest updates, as and when needed. We appreciate your trust in us as we continue to navigate through this difficult time together. Please see the remainder of the report for an update on the projects during the 3rd quarter held by Strawberry Star Real Estate PCC Limited (Cell 1) with further updates on the Covid-19 impact and remediation to follow in the final quarter of 2020 report. Page 3 of 21 Strawberry Star UK Real Estate PCC Ltd 2. Fund Overview The Fund has deployed equity across 4 projects; Lu2on (Residential, Retail and Office), Kenton (Commercial & Residential), Harlow (Residential & Commercial) and Wembley (Residential & Commercial) following the completion of the investment period. For each project, there is a firm business plan strategy in place for effective implementation and returns. GDV: £242.9m Capital Structure: Target Completion: Q4 2021 (P1) Debt to date: £36.1m Number of Units: 877 (401 P1) Equity: £31.2m Location: Luton Facility Amount: £81.1m Lu2on GDV: £52.7m Capital Structure: Target Completion: Q1 2023 Debt to date: £6.5m Number of Units: 118 Equity to date: £5.6m (50% JV) Location: Harrow Facility Amount*: £41.1m Target construction start: Q2 2021 *Development Debt to be arranged Affordable Housing proceeds to be used to Kenton fund the construction of the affordable units. GDV: £241.2m Capital Structure: Acq Debt to date: £10.2m Target Completion: Q4 2022 (P1) Equity to date (P1): £12.2m Number of Units: 826 Equity for phase 1 only Location: Essex Facility Amount (P1)*: £45.8m *Development Debt to be arranged Target construction start: Q1/Q2 2021 Harlow (Above information is subject to enhanced planning) GDV: £72.8 mil Capital Structure: Target Completion: Q2 2023 Equity: £10m-£15m Subject to debt/AH funding Number of Units: 174 Facility Amount*: £54.2m Location: Wembley *Development Debt to be arranged Target construction start: Q1 2021 Affordable Housing proceeds to be used to Wembley fund the construction of the affordable units. Page 4 of 21 Strawberry Star UK Real Estate PCC Ltd 3. Summary – Luton (Lu2on) Background The contractor has remobilised and has been The site was acquired for £28.8m on April 30, back at full productivity since September 2020 2018 with a planning consent for 685 units, a with the build progressing well with the agreed 209-room hotel and a medical centre. Enhanced completion date of Phase 1 of November 2021 planning permission has been secured for 877 on track. residential units, with potential for c.80,000sqft of Retail and Office space as well as an increase The main concrete frame is complete and board in capacity by 100 rooms in the hotel with installation to the facades, internal partition restaurants and bar facilities and a potential erection and the Mechanical, Electrical, and banqueting suite, subject to planning approval. Plumbing installations are on-going. The Other facilities include roof top gardens, a benchmark apartment is progressing well with a supermarket, public realms and communal target completion date of early mid November gardens for residents. 2020 with progress made on the utility Location connection. The site is in a prime location in Luton with direct access to Luton Airport Parkway Railway station, which is 23 mins from London King’s Cross. The site is situated 1.2 miles (4 mins by bus) from the Luton town centre. The monorail (under construction) adjacent to the site will improve the access to Luton Airport (5th largest Airport in the UK). It will offer a fast and efficient transit from the site to the airport terminal within 3 mins. The local Council has targeted a £1.5bn investment over the next 20 years within the area and is seeking to create over 18,000 jobs. The airport is expected to double passenger Funding numbers from £15m to £30m by 2025. This will Cheyne Capital development facility was signed create more jobs and provide a further demand in September 2020. Funding for the remaining for housing and hotel beds in the area. construction of Phase A of the Luton project (consisting of 401 units of suites, one and two- Luton is a prime hotspot for buyers and offers bedroom apartments, a gym, retail units and a comfortable living within the commuter belt public piazza) is on-going on a monthly basis. The area. The residential units will be attractive for funding will continue on a monthly basis until the overseas and local investors and we also estimated practical completion. anticipate a strong demand from first time buyers, commuting professionals and help to buy Health and Safety purchasers. The team has optimised layouts to There were no accidents or reportable incidents develop an innovative product for occupiers and in the period. JJR continues to implement Covid- investors. 19 safety precautions on site. Design, Planning and Construction The first phase will consist of 401 residential Sales units and 21,000sqft of retail space. To date, the Strawberry Star Sales team have exchanged 99 units and 5 units have been The scheme is being delivered in phases with the reserved. The exchanged and reserved units first phase build progressing with JJ Rhatigan represent £25.2m GDV. All units exchanged to (JJR) as the main contractor following full date represent an increase of c.£625K to the execution of the building contract of £63.4m. agreed base case viability to date. Page 5 of 21 Strawberry Star UK Real Estate PCC Ltd Lu2on Show Home 3D Virtual Tour The 1st commercial unit marketed saw significant interest with offers shortlisted from two well- https://players.cupix.com/p/9G26UoYN known supermarket chains. Co-Op has been selected as the supermarket anchor tenant for commercial unit 1 (c.4,000sqft). The project is attracting buyers across multiple Marketing platforms with offline marketing strategies such as a six-sheet poster around the Luton Airport The developments have received good exposure Parkway Station and online marketing strategies in leading property media and the mainstream such as social campaigns on the benefits of the media within the quarter. area and lifestyle in Luton. The Lu2on scheme as a whole continues to make Along with UK Government initiatives such as the a splash in the media with our recent ongoing Stamp Duty Holiday, low interest rates, announcements, such as signing Co-Op as the and the resilience of the UK property market anchor tenant and financing. The project remains have contributed to greater appetite amongst in the limelight via branding, visibility and sales buyers. perspectives. The Reserve-to-Buy scheme, which gives an The scheme is positioned as an investment hub opportunity for first-time buyers to reserve a in all campaigns; the website, telephone calls, property off plan