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					Quintain Estates and Development PLC

Preliminary Results to 31 March 2012




                                       Quintain   1
Agenda

1. Introduction

2. Achievements in 2011-12

3. Financial Review

4. Asset Management

5. London Urban Regeneration

6. Summary & Outlook for 2012-13




                                   Quintain   2
Introduction

                       Increasing London focus
     Developer of two of the top regeneration projects in the capital



          Growing specialist asset management business
                          Over £2.2 billion AUM



                    Strengthened balance sheet
                          £300m of refinancing



                       Enhanced management
                        Additions to senior team


                                                                  Quintain   3
Achievements in 2011-12

•   Enhanced planning consents secured at Wembley and Greenwich, unlocking future
    value for shareholders
•   1 million sqft of development currently underway at Wembley and completion of first
    phase on track for next year
•   Asset management now a scale business with £2.2 billion under management -
    surpassing our £2.0 billion target a year ahead of schedule
•   Operating cash flow positive from April 2012
•   £373m of debt maturities now extended to 2016, increasing financial flexibility
•   £123m of sales agreed, further strengthening our balance sheet




                                                                              Quintain   4
Finance Review

Rebecca Worthington




                      Quintain   5
Financial Highlights

                                                  31 March    31 March
                                                      2012        2011
                                                        £m          £m

Gross profit before trading property provisions       27.8        26.6
Gross profit                                          24.9        26.2
Operating profit                                       2.9         5.6
Adjusted profit before tax                             5.8         3.6
Loss before tax                                      (43.5)      (48.1)
EPRA diluted EPS                                      0.3p        1.2p



                                                  31 March    31 March
                                                      2012        2011        Change
Net asset value per share                            pence       pence             %

Basic                                                  110         116          (4.5)

Diluted                                                110         115          (4.4)

EPRA                                                   116         125          (7.6)



                                                                          Quintain      6
Movement in Net Assets
Positive operating results offset by devaluation

£m
640

                                                                (2.9)

                                                   7.6
620
                                     5.8
                                                                              (22.0)

                       14.4
600



                                                                                              (40.5)
580
                                                                                                                                                                                       (0.2)
                                                                                                                               (3.9)
                                                                                                                                                                           9.2
                                                                                                               8.5
560                                                                                                                                         (10.5)           7.9

       598.6

540
                                                                                                                                                                                                      572.0



520



500
      1A pril 2011   Net rental    Net asset   Net hotel and    Trading    A dministrative Revaluation of Share of profit   Loss on sale   Net finance   Fair value of   Taxation   Other equity   31M arch 2012
                      income      management   other income     property      expenses       properties   from JVs and       of assets       costs       derivatives                mo vements
                                    income                     provision                                    associates

                                                                                                                                                                                          Quintain                 7
Income Statement
                                                 31 March      31 March
                                                     2012          2011
                                                       £m            £m
Net rent                                             14.4           15.1
Trading sales                                        (0.1)                -
Income from hotel operations                          4.8               3.9
Fees from fund management                             5.8               5.5
Other income                                          2.9               2.1
Trading property provision                           (2.9)         (0.4)
Gross profit                                         24.9           26.2
Administrative expenses                             (22.0)        (20.6)
(Loss) / profit on sale of non-current assets        (3.9)              2.8
Net finance expenses                                (10.5)        (11.9)
Joint ventures and associates                         8.5               9.4
Pre-tax (loss) / profit excluding revaluation        (3.0)              5.9
Revaluation movements on investment properties      (40.5)        (54.0)
Pre-tax loss                                        (43.5)        (48.1)
Tax                                                   8.0           13.4
Loss for financial period                           (35.5)        (34.7)



                                                             Quintain         8
Administrative Costs
£2m savings to be reflected in FY 2013
                                         31 March     31 March
                                             2012         2011
                                               £m           £m
Directors and central staff                   8.0              7.2
Urban Regeneration staff                      2.8              3.2
Asset Management staff                        1.8              1.7
Total staff costs                            12.6          12.1
Non-headcount related                         4.9              5.9
Underlying overhead                          17.5         18.0
Hotel operating costs                         3.0              2.6
                                             20.5         20.6
Reorganisation costs                          1.5
Total administrative costs                   22.0         20.6




                                                    Quintain         9
Divisional Income Analysis
Strengthened underlying income


 Underlying movements
                                        Urban Regeneration                                      Asset Management
                                   Wembley           G’wich    Other      Total Quercus           iQ    SeQuel   Other   Total Central      Total
                                          £m            £m        £m         £m          £m      £m        £m      £m      £m       £m        £m
                                                 1
Operating profit                         10.3           0.0       0.8     11.1           6.9     9.8       6.3     2.1   25.1    (19.0)     17.2
Net finance expenses                      0.0         (0.8)       0.0     (0.8)         (1.6)   (5.0)    (2.1)     0.4   (8.3)    (2.3)   (11.4)
Tax                                          -            -          -         -            -       -        -       -       -    (0.1)     (0.1)
Net profit before disposals
and revaluation                          10.3         (0.8)       0.8     10.3           5.3     4.8       4.2     2.5   16.8    (21.4)      5.7
1
    Net of £3.0m overhead costs relating to Hotel operations


 Capital movements
Profit from disposals                   (0.8)           0.0     (3.3)     (4.1)             -       -      0.6   (0.3)    0.3         -     (3.8)
Trading property provision                   -            -     (2.9)     (2.9)             -       -        -       -       -        -     (2.9)
Swap adjustments                             -            -          -         -            -       -        -       -       -    (6.1)     (6.1)
Revaluation movements                  (29.5)           6.8     (2.9) (25.6)            (2.7)   10.3    (10.9)   (3.9)   (7.2)        -   (32.8)
Tax                                          -        (0.1)          -    (0.1)          0.3    (3.9)        -       -   (3.6)      8.1      4.4
Profit after tax                       (20.0)           5.9     (8.3) (22.4)             2.9    11.2     (6.1)   (1.7)    6.3    (19.4)   (35.5)



Note: Non-statutory presentation reflecting proportional accounting of joint ventures

                                                                                                                                 Quintain      10
Valuations
Marginal portfolio movements



                                                         Valuation    Valuation       Valuation
                                                                     movement        movement

                                                         31 March     31 March         31 March
                         Key Sectors                         2012         2012             2012

                                                               £m           £m                   %
Wembley                  Retail & leisure, residential       551.6       (29.5)               (5.1)
Greenwich Peninsula      Commercial, residential             254.0          6.8                2.7
iQ                       Student accommodation               168.5         10.4                6.2
Quercus                  Long-term healthcare                 87.7        (2.7)               (3.1)
SeQuel                   Secondary property                   65.7       (10.9)              (14.2)
Regional schemes         Land, residential                    33.6        (2.9)               (7.9)
Other asset management   Secondary property                   25.4        (3.8)              (13.0)
Quantum                  Science parks                         5.1        (0.2)               (3.1)
Combined portfolio                                         1,191.6       (32.8)               (2.7)




                                                                                  Quintain      11
Debt Financing
Strengthened balance sheet



                                                    31 March      31 March
                                         Covenant       2012          2011

Net debt                                              £535m          £420m

Committed but un-drawn debt                            £72m          £191m
Average maturity
                                                      3.2 yrs        2.8 yrs
(including optional extensions)
Average cost of debt                                    3.1%           4.5%

Hedging
    - fixed                                            60.5%          76.3%
    - caps                                             39.5%          23.7%

Gearing – per banking covenants            110%          87%            60%

Loan to value ratio                                      48%            41%

Interest cover – per banking covenants    1.25x         2.9x           1.9x




                                                                Quintain       12
    Contracted Capital Movements
    Emphasis on capital recycling



                                                                                        31 March
                                                                                            2012
                                                                                                 £m
     Contracted receipts:
                               Wembley Student – on PC July 20121                            54.5
                               Wembley Plaza – on 29 June 2012                               13.9
                               iQ Shoreditch – on refinancing (July / August 2012)           54.0
                               Other                                                             2.0
                                                                                            124.4
     Capital commitments:
     Group:                    Wembley Hilton Hotel, student accommodation                 (10.5)
                               Other Wembley, including London Designer Outlet             (13.8)
     Joint ventures:           iQ – student accommodation in course of construction        (24.5)
     Other:                                                                                 (1.9)

                                                                                           (50.7)

     Net:                                                                                    73.7

1   £4.5m deferred for up to five years
                                                                                      Quintain         13
Corporate Debt Maturity Profile
Further maturity extensions


£m


400
350
300
250
200                                                                                                                                373
150
100                                             40
  50                                           74
                    40                                                     54
   0
                  2012                        2013                        2014                        2015                         2016

                                     Maturity                                                           Amortisation


Notes: Excludes facilities in SeQuel and joint ventures and assumes options to extend are exercised with associated amortisation




                                                                                                                                          Quintain   14
Financing Achievements
Over £300 million of refinancing

•   Corporate                £60m Barclays (extended to 2016)
                             £25m Co-op (extended to 2016)
                             £20m AIB (extended to 2016)


•   iQ refinancing           £115m M&G, £42.75m DeutschePost


•   iQ Shoreditch            £70m M&G




                                                                Quintain   15
Joint Venture Debt
Stable position



As at 31 March 2012                          Quercus        iQ        SeQuel¹

Net debt                                     £36.0m     £71.0m         £38.5m

Weighted average debt maturity                2.0 yrs   5.0 yrs         1.8 yrs

Weighted average interest rate                  4.4%      4.2%               5.5%

% of debt at fixed / capped interest rates       75%       73%               69%

Interest cover                                  2.9x      2.4x               2.8x

Interest cover covenant                        1.50x     1.25x           1.75x

Loan-to-value                                    44%       55%               62%

Loan to value covenant                           60%       65%               75%




Note: £m numbers are QED share
¹Included in the Group debt analysis
                                                                  Quintain      16
Financial focus 2012-2013
Further strengthening financial position
•   Degearing of balance sheet through disposals and introduction of third party capital


•   Continue to drive improvements in underlying earnings


•   Continue to enhance maturity whilst minimising impact on cost of debt




                                                                               Quintain    17
 Asset Management

 Rebecca Worthington




                       Quintain   18
iQ Shoreditch
Quintain Asset Management
Growth combined with reduction in capital intensity
•   Specialist real estate asset management                  Assets Under Management
     –   compelling social, economic and               2.5
         environmental trends

•   Focus on fund out-performance:
     –   WELPUT – 13.6% (21.8% over 3 yrs)             2.0
                                                                                         West End prime
     –   iQ – 13.9% (8.7% over 3 yrs)                                                    property
     –   Quercus – 0.4% (6.3% over 3 yrs)                                                Secondary property
                                                       1.5
•   70% growth in AUM during year driven by
                                                                                         Science parks
    acquisition of Grafton Advisors, property
    advisors to the WELPUT Fund.
                                                 £bn
                                                       1.0                               Higher education
•   With Grafton moving to be a less capital
    intensive model                                                                      Healthcare

     –   Quintain capital invested in business         0.5
         reduced from 19% of AUM to 12% AUM


                                                       0.0
                                                             2009   2010   2011   2012




                                                                                          Quintain       19
Quintain Asset Management 2011-12
Portfolio of specialist funds



 Sector                                   Assets under   Assets under   QED equity   QED equity
                                          management     management       invested     invested


                                             31 March       31 March     31 March      31 March
                                                 2012           2011         2012          2011
                                                   £m             £m           £m            £m
 Healthcare (Quercus)                             793            744          46.2          46.2

 Higher education (iQ)                            337            324         118.9          94.0

 West End prime property (WELPUT)                 877               -            -              -

 Science parks (Quantum)                           30             22          16.2          10.5

 Secondary property (Sequel, Albemarle)           135            185          31.7          42.6

 Total                                           2,172          1,275        213.0         193.3




                                                                                     Quintain       20
Healthcare - Quercus
Stable in challenging environment                                                    9%                                 Type of assets
Performance:                                                                                                            within Quercus


•        Demographics remain sound                                    17%

•        Significant challenges facing the market
•        Impact on rental income, distribution yield
         5.6% (2011:7.4%)
•        Have achieved further diversification                                                              74%

•        Steady the portfolio: focus on quality
         standards
                                                                  Elderly Care/Nursing Homes   Specialist   Learning Disability



 Quercus                                   31 March   31 March
                                               2012       2011
 Quintain holding                             11.2%      11.2%

 Assets under management                     £793m      £744m

 Capital invested                           £50.1m     £51.8m

 Income generated1                          £10.0m     £10.9m

 Contribution to profits                     £2.9m      £9.8m

 Average lease length                         27yrs      28yrs
                                                                 Hatton Grange


1 Fee   income and joint venture revenue
                                                                                                              Quintain            21
West End of London Property Unit Trust (WELPUT)

•   Founded in 2001 by the executive team of
    Benchmark in conjunction with Schroders
•   Portfolio of prime West End properties –
    1.3m sqft
•   Best performing pooled UK office fund over 1
    and 3 yrs
•   Continue expansion and acquire
    opportunities where its management
    expertise can be applied in its specialist
    sector to add value




    5/7 Vere Street                                Orion House
                                                                 Quintain   22
West End - WELPUT
Quality exposure to West End London
Characteristics:
                                                          Properties held – 31 March 2012                                  Size
•        Closed-ended JPUT                                                                                               (Sq ft)

•        Investment manager - Schroders                   1. The Point, Paddington Basin, W2                            235,000
                                                          2. 16-17 Connaught Place, W2                                   83,000
•        80 unit-holders
                                                          3. 5/7 Vere Street, W1                                         30,000
•        11 West End office assets
                                                          4. Orion House, WC2                                            88,000
•        31% LTV
                                                          5. New Court, Carey Street, WC2                               150,000
Performance:
                                                          6. 7/8 St Martin’s Place, WC2                                  48,000
•        Top performing UK office fund over 1 and 3 yrs   7. Stratton House, Piccadilly, W13                            100,000
•        1 yr to 31 March 2012 13.6%                      8. Stirling Square, SW1                                        65,000

•        3 yrs 21.8% pa                                   9. 21 Tothill Street, SW1                                      65,000
                                                          10. Southside, Victoria, SW1                                  300,000
                                                          11. 98 Theobald’s Road, WC1                                   135,000
WELPUT                                        31 March
                                                  2012                                                                    11
Quintain holding                                   Nil              1
                                                                                          3                                    5
Assets under management                         £877m                         2                                 4
Capital invested                                   Nil                                                              6
                                                                                               7
Income to Grafton         1                     £1.5m                                              8
Contribution to profit        2                 £0.1m
                                                                                                            9
1 Annualised                                                                                           10
2 Apportioned   since purchase                                                                                             Quintain   23
3 Sold   since year end
Student Accommodation - iQ
Increasing Returns
Characteristics:
•     Modern 5,183 bed quality portfolio
•     40% beds by value London Zone 1 including iQ
      Shoreditch – PC Summer 2012                                                       Edinburgh 1 & 2

Performance:
•     >99% occupancy of enlarged portfolio
•     With iQ Shoreditch completing in July 2012 rent roll
                                                                            Preston           Leeds
      >£33m                                                                   Salford
                                                                                              Sheffield 1 & 2
•     Letting September 2013 in line at 75% like for like,                                    Nottingham
                                                                            Birmingham
      including 5.5% rental growth, or 69% overall
                                                                             Bristol
•     Refinancing completed at average 290 bps – with                                               Shoreditch
                                                                                                    Hoxton
      hedging all in rate 4.2%                                                                   Kingston




iQ                                       31 March    31 March                                                        Completed
                                                                Status                    Beds        Schemes
                                             2012        2011                                                           values
Quintain holding                           49.98%      49.98%   Completed                4,510                  12      £286m
Assets under management                    £337m       £309m
                                                                On site                    673                   1      £120m
Capital invested                         £116.4m      £67.7m
                                                                Total                    5,183                  13      £406m
Income generated1                         £14.3m      £11.3m
Contribution to profits                   £11.3m       £9.9m

¹ Fee income and joint venture revenue                                                                     Quintain      24
Summary

• Invested in sectors where over time we expect to see out performance
• Market leading teams in these three sectors
• Pro-active in managing issues
• Track record of out performance




                                                                  Quintain   25
Greenwich

Rebecca Worthington




                      Quintain   26
Greenwich Peninsula




                      Quintain   27
Greenwich Peninsula
Emirates Air Line




                      Quintain   28
Greenwich Peninsula
Next phase of development




                            Quintain   29
Greenwich Peninsula
Peninsula Quays development




                              Quintain   30
Peninsula Quays – Next Steps
Moving into delivery phase
Following agreement of Memorandum of
Understanding
•   30 May planning submission 611 homes
•   September grant of planning
•   November start on site
•   April 2014 first occupations
•   March 2015 affordable complete
•   Dec 2015 - Oct 2016 private complete
Other works:
•   Infrastructure works to access site –
    September 2012
•   Rebuild river wall
•   Landscaping 2013 - 14




                                            Quintain   31
Greenwich Peninsula
View of Canary Wharf from Peninsula Quays apartment




                                                      Quintain   32
Wembley

Maxwell James
Wembley
Over one million sqft of construction




                                        Quintain   34
Wembley

Major planning gains secured
•   Outline planning secured on 1.7m sqft on North West Lands (November 2011)
•   Revised planning conditions agreed on 5.3m sqft on Stage 1 Lands (May 2012)
•   Permission for 145,680 sqft of Open-A1 on Wembley Retail Park




                                                                                  Quintain   35
Wembley

Major planning gains secured
•   Outline planning secured on 1.7m sqft on North West Lands (November 2011)
•   Revised planning conditions agreed on 5.3m sqft on Stage 1 Lands (May 2012)
•   Permission for 145,680 sqft of Open-A1 on Wembley Retail Park
Construction on schedule and delivering
•   361-key Hilton Hotel opening in June and 660-room student opening for 2012 academic year
•   London Designer Outlet underway; due for completion in Oct 2013




                                                                                      Quintain   36
Wembley
Students arriving in Autumn 2012




                                   Quintain   37
Wembley
Hilton opening for Olympics




                              Quintain   38
Wembley
Investor / analyst presentation to be arranged




                                                 Quintain   39
Wembley
360,000 sqft centre under construction for October 2013




                                                          Quintain   40
Wembley

Major planning gains secured
•   Outline planning secured on 1.7m sqft on North West Lands (November 2011)
•   Revised planning conditions agreed on 5.3m sqft on Stage 1 Lands (May 2012)
•   Permission for 145,680 sqft of Open-A1 on Wembley Retail Park
Construction on schedule and delivering
•   361-key Hilton Hotel opening in June and 660-room student opening for 2012 academic year
•   London Designer Outlet underway; due for completion in Oct 2013
London Designer Outlet (LDO) lettings achieving critical mass
•   LDO now 40% let (exchanged/engrossed) and with a further 9% in legals (base rent) and 12% in
    negotiations
•   Portfolio of high quality tenants attracted to the LDO and Wembley




                                                                                       Quintain    41
Wembley
Key retail anchors in place and c. 40% let




                                             Quintain   42
Wembley
Major planning gains secured
•   Outline planning secured on 1.7m sqft on North West Lands (November 2011)
•   Revised planning conditions agreed on 5.3m sqft on Stage 1 Lands (May 2012)
•   Permission for 145,680 sqft of Open-A1 on Wembley Retail Park
Construction on schedule and delivering
•   361-key Hilton Hotel opening in June and 660-room student opening for 2012 academic year
•   London Designer Outlet underway; due for completion in Oct 2013
London Designer Outlet (LDO) lettings achieving critical mass
•   LDO now 40% let (exchanged/engrossed) and with a further 9% in legals (base rent) and 12% in
    negotiations
•   Portfolio of high quality tenants attracted to the LDO and Wembley
Commercialisation income
•   £5m (£3.4m net) income generated in 2011-12
•   LOCOG on site, 5-year NFL contract secured, Champions League at Wembley in 2013




                                                                                       Quintain    43
Wembley
Major planning gains secured
•   Outline planning secured on 1.7m sqft on North West Lands (November 2011)
•   Revised planning conditions agreed on 5.3m sqft on Stage 1 Lands (May 2012)
•   Permission for 145,680 sqft of Open-A1 on Wembley Retail Park
Construction on schedule and delivering
•   361-key Hilton Hotel opening in June and 660-room student opening for 2012 academic year
•   London Designer Outlet underway; due for completion in Oct 2013
London Designer Outlet (LDO) lettings achieving critical mass
•   LDO now 40% let (exchanged/engrossed) and with a further 9% in legals (base rent) and 12% in
    negotiations
•   Portfolio of high quality tenants attracted to the LDO and Wembley
Commercialisation income
•   £5m (£3.4m net) income generated in 2011-12
•   LOCOG on site, 5-year NFL contract secured, Champions League at Wembley in 2013
Focus on place-making for Hilton, LDO and wider Wembley
•   Works commenced on phase 1 landscaping along Olympic Way, Wembley “Lawns”, Wembley
    Boulevard



                                                                                       Quintain    44
Wembley
Wembley Boulevard targeted for completion next year




                                                      Quintain   45
Wembley
Completion of Western Core by October 2013




                                             Quintain   46
Summary and Outlook for 2012-13
Focus on delivery and value creation
A successful year:
•   Tightened strategic focus
•   Strengthened financials
•   Delivery underway at Wembley
•   Greenwich primed to go
•   Asset management growing




                                       Quintain   47
Summary and Outlook for 2012-13
Focus on delivery and value creation
A successful year:
•   Tightened strategic focus
•   Strengthened financials
•   Delivery underway at Wembley
•   Greenwich primed to go
•   Asset management growing


Short and medium term value drivers for Quintain:
•   Focus on London and asset management
•   Place creation at Wembley and Greenwich, platform for residential development
•   Continued de-leveraging of the balance sheet through sales and third party capital
•   Growth in robust and recurring income streams
•   Delivery of clear and consistent business model
•   Drive shareholder value



                                                                                         Quintain   48
Quintain Estates and Development Plc

Preliminary Results to 31 March 2012




                                       Quintain   49

				
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