Current Market Conditions

1
Current Market Conditions

• Introduction
• UK Property
• Fundamentals
• Strategy
• Current conditions
• Examples
• Financing
• Conclusions

• Prices have softened for the last year and have
  now picked up
• First 6 months
• Nationwide - London highest growth rate in UK
• Primary more than 7 growth
• Secondary very strong
• Yields 5.5 Victorian and 4.5 growth annually
• Ex local 6.6

2
Current Market Conditions

• Introduction
• UK Property
• Fundamentals
• Strategy
• Current conditions
• Examples
• Financing
• Conclusions

• If such trends continue,
• The average cost of a house in England will break
  through the 300,000 mark in the next five years,
  research suggests.
• Prices will near the half a million mark in
  London by 2012, from the current average of
  318,864.
• Even in regions traditionally regarded as cheaper
  - such as the North West and Yorkshire - average
  prices will break through the 200,000 level.
• National Housing Federation (NHF)

3
What will happen next?

• Introduction
• UK Property
• Fundamentals
• Strategy
• Current conditions
• Examples
• Financing
• Conclusions

I never have the faintest idea what the stock
market is going to do in the next 6 months, or
the next year, or two. Warren Buffet
4
Missed the boat or perfect timing?

• Introduction
• UK Property
• Fundamentals
• Strategy
• Current conditions
• Examples
• Financing
• Conclusions

• Compared with other asset classes, London
  property is still an attractive investment
• Perfect timing is something that can only be know
  with hindsight
• Staying out can be as costly as going in
• Done properly and seen over the long term it
  should be a low risk investment

5
Foreign Currency Hedge

• Introduction
• UK Property
• Fundamentals
• Strategy
• Current conditions
• Examples
• Financing
• Conclusions

6
Examples

• Introduction
• UK Property
• Fundamentals
• Strategy
• Current conditions
• Examples
• Financing
• Conclusions

• Vogue1 - Zone 1 Algate East 10 minute walk to
  Liverpool Street and in the hub of the financial
  district
• Priced - 349 950 - 700 000
• Completion May to August 2008 Belmont Park
  Zone 2 Tulse Hill
• Priced 290 000 for 2 bedroom apartment
• Slough Central Slough 20 minutes from
  Paddington and central London
• Priced 172 255 - 250 000
• Fractional Ownership -Chiswell Street, The City,
  London
• 110,250 to 125,500 for a quarter share in hotel
  room

7
Vogue1

• Introduction
• UK Property
• Fundamentals
• Strategy
• Current conditions
• Examples
• Financing
• Conclusions

8
Vogue1

• Introduction
• UK Property
• Fundamentals
• Strategy
• Current conditions
• Examples
• Financing
• Conclusions

• Development
• 44 unit development over 7 floors
• Yield 5 to 5.3
• Price per sqm 680/sq ft or 7,200/m2
• Very high quality of internal finish include
  wood, chrome and porcelain
• 9 - 12 month lead time allowing good capital
  growth
• Positioned in the heart of Londons Rag
  district
• Affordable Housing separate to the development
  with different entry points
• Video entry to flats
• Urban myth kitchens and fitted wardrobes with S/S
  Siemens appliances, stone composite kitchen tops,
  under unit lighting
• Ceramic tiles to kitchen and bathroom. Underfloor
  heating and heated towel rails
• Communal roof garden

9
Vogue1

• Introduction
• UK Property
• Fundamentals
• Strategy
• Current conditions
• Examples
• Financing
• Conclusions

• Area
• Easy access to the city, Liverpool Street is in
  walking distance
• Services by District and Hammersmith and City
  underground lines
• Brick lane in walking distance boasting diverse
  choice of Asian restaurants
• Abundance of pubs, galleries and other
  restaurants
• Old Street in walking distance with its new
  gastro strip
• St Katherines Dock and Butlers Wharf are also in
  walking distance and are popular riverside
  entertainment areas

10
Vogue1

• Introduction
• UK Property
• Fundamentals
• Strategy
• Current conditions
• Examples
• Financing
• Conclusions

11
Vogue1

• Introduction
• UK Property
• Fundamentals
• Strategy
• Current conditions
• Examples
• Financing
• Conclusions

• Developer
• Established for 30 years, build 600 units a year
• Privately owned company with turnover in excess
  of 205million/yr
• High quality of finish
• Cutting edge design teams, interior decorators
  and architects employed
• Renowned for attention to detail and top customer
  care

12
Belmont Park

• Introduction
• UK Property
• Fundamentals
• Strategy
• Current conditions
• Examples
• Financing
• Conclusions

13
Belmont Park

• Introduction
• UK Property
• Fundamentals
• Strategy
• Current conditions
• Examples
• Financing
• Conclusions

• Developement
• 6 Superb apartments in London
• Market price 290,000
• Monthly rentals up to 1200
• Rental yield 5.5
• Landscaped communal gardens
• Video entry system
• Completion September 2007

14
Belmont Park

• Introduction
• UK Property
• Fundamentals
• Strategy
• Current conditions
• Examples
• Financing
• Conclusions

• Area
• Situated within easy reach of the funky shops,
  bars and restaurants of Brixton as well as the
  beautiful, rolling open spaces of Brockwell Park.
• Local transport links include Tulse Hill (British
  Rail) and Brixton Underground Station (Victoria
  Line) for connections into and out of central
  London.
• Developer
• Trojan Asset Management

15
Belmont Park

• Introduction
• UK Property
• Fundamentals
• Strategy
• Current conditions
• Examples
• Financing
• Conclusions

16
Slough Central

• Introduction
• UK Property
• Fundamentals
• Strategy
• Current conditions
• Examples
• Financing
• Conclusions

17
Slough Central

• Introduction
• UK Property
• Fundamentals
• Strategy
• Current conditions
• Examples
• Financing
• Conclusions

• Development
• 2 Blocks 8 stories and 15 stories
• 1 2 bedroom apartments 229 units
• Section 106 or affordable housing is offsite
• 24 x 1 bedroom apartments huge demand for 1
  bedroom units
• Completion Mid 2009
• Less than 1 min from station
• Trademark floor to ceiling windows
• Pristine Interiors

18
Slough Central

• Introduction
• UK Property
• Fundamentals
• Strategy
• Current conditions
• Examples
• Financing
• Conclusions

• Area
• Easy access to the city, 20 min from Paddington
• Huge regeneration program
• Terminal 5 30 000 jobs is in close proximity
  down the M4
• Developer
• London Green and My City Pads currently got
  about 30 projects on the go.

19
Slough Central

• Introduction
• UK Property
• Fundamentals
• Strategy
• Current conditions
• Examples
• Financing
• Conclusions

20
Fractional

• Introduction
• UK Property
• Fundamentals
• Strategy
• Current conditions
• Examples
• Financing
• Conclusions

• Chiswell Street, The City, London
• 110 000 - 125 000 per fraction
• Own one quarter
• 6 8 return (45 over 8)
• 13 days a year
• 70 gearing

21
Financing Procedures

• Introduction
• UK Property
• Fundamentals
• Strategy
• Current conditions
• Examples
• Financing
• Conclusions

• 3000 different borrowing options
• Asset based lenders
• Financing Options
• 70 to 85 LTV
• Interest only
• Offshore structures
• See Example brochures for costs and cost
  breakdown

22
Conclusions

• Introduction
• UK Property
• Fundamentals
• Strategy
• Current conditions
• Examples
• Financing
• Conclusions

"ver van jou goed, na aan jou skade"
23
Conclusions

• Introduction
• UK Property
• Fundamentals
• Strategy
• Current conditions
• Examples
• Financing
• Conclusions

• Partners
• International Property Solutions
• Offices
• Cape Town
• JHB
• Durban
• London
• 500 units in the past 4 years
• Specialise in foreign investment and especially
  off plan developments

24
Conclusions

• Introduction
• UK Property
• Fundamentals
• Strategy
• Current conditions
• Examples
• Financing
• Conclusions

• Partners
• Conveyancing (Legals)
• Breytenbachs
• Structures, Foreign Exchange Control, Money
  Transfers
• Lionel Levin Associates Rosebank (UK)
  Limited)
• Mortgage Broker
• Worldwide Financial Solutions
• Management
• Bespoke best of breed

25

• Introduction
• UK Property
• Fundamentals
• Strategy
• Current conditions
• Examples
• Financing
• Conclusions

• Thank you
• Heath Adamson
• Sean Walsh
• Brad Allen
• Scott Picken
• London No 09 44 208 971 3245
• SA No 072 575 8719
• JHB Office 011 4477189
• Cape Office 021 424 3353
• Email scott_at_internationalpropertysolutions.com