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					Invista Real Estate
Investment Management Holdings plc

Duncan Owen, CEO
Philip Gadsden, Deputy CEO
Guy Eastaugh, Finance Director

2007 Preliminary Results
21 February 2008
Highlights

Review of Results

Financial Results

Performance & Asset Management

Outlook




                                 2
Objectives


 Grow recurring management fees
 Increase opportunities for performance fees
 Superior investment performance
 Deploy balance sheet into growth areas
 Diversify our funds geographically, by fund type and investment style




                                                                         3
Financial Highlights
                           2007          2006   Change
                             £m    (proforma)       %
                                           £m
  Management revenue        50.3        36.4        38
  Performance fees          16.7          7.1      135
  Interest and other         7.6          1.6      375
  income
  Total income              74.6        45.1        65
  Operating profit          40.3        20.9        93
  Profit before taxation    48.6        22.5       116
  Earnings per share       12.1p
  Proposed full year        2.3p
  dividend per share

 Net cash in hand of £137.0m as at 31 December 2007      4
Business Highlights
 Total income up 65%; profit before taxation up 116%
 Year end AUM of £8.7bn down 6%
 Highest margin part of Collective Investor Funds up 33%
 80% of AUM have out-performed their benchmarks in 2007
 Strong growth in continental Europe: 12% of management revenue
 New St James’s Place and Clerical Medical European Funds
 Joint venture balance sheet investment in €348m French portfolio
 Joint venture balance sheet investment in £127.5m UK residential portfolio
 Opportunity Fund launched
 Paris office opened



          Out-performed expectations set at IPO
                                                                              5
Highlights

Review of Results

Financial Results

Performance & Asset Management

Outlook




                                 6
Review of Results - Overview
                                      AUM
                     2006                                        2007
                    £9.2bn                                      £8.7bn
    Collective                                 Collective
     Investor                                   Investor
      Funds                                      Funds
       17%                                        25%



                                                                             HBOS
       Separate              HBOS                                            Funds
       Accounts              Funds                                            51%
         29%                  54%
                                                     Separate
                                                     Accounts
                                                       24%

                                     REVENUE
                     2006                                        2007
                    £43.5m                                      £67.0m

                                                                               HBOS
                                                                               Funds
                             HBOS                                               28%
 Collective
                             Funds
  Investor                                       Collective
                              39%
   Funds                                          Investor
    37%                                            Funds
                                                    46%


                                                                         Separate
                  Separate
                                                                         Accounts
                  Accounts                                                             7
                                                                           26%
                    24%
Review of Results

                             AUM and Revenue

AUM/£billion      31 Dec   Net Fund     Valuation    31 Dec   Revenue     Proforma
                    2006      Flows    Movements       2007    £million    £million
                                                                 2007         2006
HBOS Funds           4.9       (0.2)         (0.3)      4.4       19.0        16.6

Separate             2.7       (0.3)         (0.2)      2.1       17.3        10.6
Accounts
Collective           1.6        0.5              -      2.2       30.7        16.3
Investor Funds

Total                9.2           -         (0.5)      8.7       67.0        43.5

Interest Income                                                    7.6         1.6

Total Income                                                   £74.6m      £45.1m



                                                                                      8
Review of Results
                                  HBOS Funds

In £ million                      Investment style    Open/   As at 31   As at 31
                                                     Closed    Dec 06     Dec 07
Clerical Medical With-         Balanced UK, Core     Closed     2,469      1,983
Profits Property Fund
Clerical Medical Managed       Balanced UK, Core      Open      1,174      1,144
Property Fund
Clerical Medical Unit Linked   Balanced UK, Core      Open        579        566
Fund
Halifax Life Property Fund     Balanced UK, Core      Open        554        474

Halifax Managed Income         Balanced UK, Core      Open        123        175
Fund
Clerical Medical Non-          Continental Europe,    Open          0         41
Sterling                                     Core
Clerical Medical Managed              UK, Indirect    Open          0          8
Income Funds
TOTAL                                                           4,899      4,391

                                                                                    9
Review of Results
                               Separate Accounts
In £ million                         Investment style    Open/   As at 31   As at 31
                                                        Closed    Dec 06     Dec 07
The Equitable Life Assurance      Balanced UK, Core     Closed     1,083        753
Society
HBOS Final Salary Pension         Balanced UK, Core     Closed       159        154
Scheme Property Fund
St James’s Place APUT             Balanced UK, Core      Open          0         86
                                               plus
St James’s Place UK               Balanced UK, Core      Open        718        752
Property Fund
Westbury Property Fund            Balanced UK, Core     Closed       274          0
                                               plus
LRI GP Limited                  Balanced UK, Indirect   Closed       380        305
                                    Investment, Core

FTSEpx Fund                       Balanced UK, Core      Open        108        100
TOTAL                                                              2,722      2,150

                                                                                       10
Review of Results
                          Collective Investor Funds
In £ million                             Investment style     Open/   As at 31   As at 31
                                                             Closed    Dec 06     Dec 07
Invista Foundation Property Trust     Balanced UK, Core      Closed       706        685
                                                   plus
Invista Property Portfolio Fund        Balanced UK Fund       Open        110         72
                                      of Specialist Funds,
                                                      Core
Invista European Real Estate Trust   Balanced continental    Closed       363        588
                                       Europe, Core plus
Residential (2 Funds)                     UK Residential     Closed       444        463

Opportunity Fund                          Pan European,      Closed         0         50
                                           Opportunistic
Canmoor                                 UK, Value Added      Closed         0         42

Celsius (Joint Venture)                France, Core plus     Closed         0        256

TOTAL                                                                   1,623      2,156

                                                                                            11
Fund Flows – Open Ended Funds
            Net fund flows ex valuation adjustments
£ million                  2005          2006         2007
CM Managed                  207           220          10
CM Unit-Linked              125           116           19
CM Europe                     -             -           33   Net inflows
CMMIF                         -             -            8   of £487m
                                                             in H1 2007
Halifax Life                103           239         (75)   offset by
                                                             outflows of
Halifax MIF                  22            35          116   £182m in
HBOS Pension                  3             1            1   H2 2007
Scheme
St James’s Place            198           259          147
FTSEpx Fund                   -            93            -
IPPF                          8            59         (20)
SJP APUT                      -             -           66
Total £ net inflow          666         1,022          305
                                                                           12
Highlights

Review of Results

Financial Results

Performance & Asset Management

Outlook




                                 13
Total Income
                             Total Income                                                              Fee Revenue


                      Actual Income   Unaudited Proforma Income                       Inv mgt fees   Performance fees   Other Income


               80                                                 74.6
               75                                                              100%
               70
               65
               60                                                              80%
               55
               50                                       *
Revenue (£m)




                                                    45.1
               45                                                              60%
               40
               35
                                         27.7
               30                                                              40%
                              23.1
               25
                    18.0
               20
               15                                                              20%
                                          20.2      15.8
               10
                              13.9
                5   10.2
                0                                                               0%
                    2003      2004       2005     2006 PF         2007                2003      2004       2005     2006 PF     2007

                                         Year                                                                Year



                                                  Annualised growth rate of 43%
 *£15.8m income applies to the four month period to 31 December 2006; £45.1m
 shown on a proforma basis for 12 months to December 2006.
                                                                                                                                       14
Revenue

                                           Proforma    Growth
                             Year to 31   Year to 31   2006-7
                             December     December
                                  2007         2006
£ millions
Management fees                   45.6         34.2      33%
Performance fees                  16.7          7.1     135%
Termination fees                   2.8             -      n/a
Transaction and other fees         1.9          2.2    (14%)
Revenue                           67.0         43.5    + 54%
Operating margin                  60%          48%



                                                                15
Group Profit and Loss Account
                                                                          Proforma
                                                        Year to 31       Year to 31
£ millions                                          December 2007    December 2006


Revenue                                                       67.0             43.5
Administrative expenses                                     (21.8)           (22.6)

Operating profit: fund management operations                  45.2             20.9
Operating margin (pre-performance and termination             54%              38%
fees)
Post tax share of joint venture losses                       (4.9)                -

Interest and other income                                      8.3              1.6

Pre-tax profit                                                48.6             22.5

Corporation tax                                             (16.4)            (6.7)

Profit after tax                                              32.2             15.8
EPS (fully diluted)                                          12.1p
DPS                                                           2.3p



                                                                                      16
Cash Flow

 £ millions
 Net Cash as at 31 December 2006             115.7
 Pre tax profit                               48.6
 Investments made                            (28.8)
 Share of post tax joint venture losses        4.9
 Capital expenditure (net of depreciation)    (1.3)
 Decrease in working capital                   3.2
 Tax paid                                     (3.1)
 Dividends paid                               (1.9)
 Other movements                              (0.3)
 Net Cash as at 31 December 2007             137.0


                                                      17
Balance Sheet
                              31 December    31 December
£ millions                           2007           2006
Investments                          25.3            1.8
Other non-current assets              2.2            0.6
                                     27.5            2.4
Trade and other receivables           9.3            9.4
Cash and cash equivalents           137.0          115.7
Total Assets                        173.8          127.4
Liabilities                         (27.1)         (10.6)
Net Assets                          146.7          116.9




                                                            18
Cash and cash equivalents
£137m in cash as at 31 December 2007
Uses in 2008
•   Regulatory capital
•   Taxation
•   Final dividend
•   Commitments to European Opportunity Fund
•   Refinancing of joint ventures




                                               19
Dividend
 Guidance given at time of Admission to set initial dividend
 Progressive policy going forward


  Dividend cover                                           2007
  EPS                                                     12.1p
  Less attributable to :
  Performance fees                                        (4.4)p
  Interest income                                         (2.0)p
  Adjusted                                                     5.7p
  Cover guidance                                               2.5x
  Implied dividend                                             2.3p
  Final dividend                                               1.6p


                                                                      20
Highlights

Review of Results

Financial Results

Performance & Asset Management

Outlook




                                 21
Investment Performance
                  Fund                Fund return   Benchmark return                 Benchmark
         Fund A1                           14.5%         13.0%         IPD Quarterly universe
                                                                       IPD Quarterly version of Balanced Monthly
         Fund B                            -4.3%         -5.7%
                                                                       Index Funds
                                                                       IPD Quarterly version of Balanced Monthly
         Fund C                            -4.0%         -5.7%
                                                                       Index Funds
                                                                       IPD Quarterly version of Balanced Monthly
         Fund D                            -5.3%         -5.7%
                                                                       Index Funds
         Fund E                            5.1%           4.9%         IPD Monthly Index funds income return
         Fund F2                           13.2%         19.4%         IPD Large Life funds
                                                                       IPD Quarterly version of Balanced Monthly
         Fund G                            -4.8%         -5.7%
                                                                       Index Funds
                                                                       IPD Quarterly version of Balanced Monthly
         Fund H                            -7.2%         -5.6%
                                                                       Index Funds
         Fund I                            -1.1%         -5.5%         IPD Monthly Index
                                                                       IPD Quarterly version of Balanced Monthly
         Fund J                            -2.3%         -5.7%
                                                                       Index Funds
         Fund K3                           -4.9%         -5.5%         IPD Monthly Index
         Fund L2                           15.2%          10%          Absolute Target return 10%
         Fund M                            11.1%          10%          Absolute Target return 10%
         Fund N                           -12.1%         -4.4%         IPD Standard Industrial Annual Index
1 June 2007 performance figures
2 Dec 2006 performance figures                                                                Source: IPD, Invista
3 Return calculated on a discounted NAV basis

                                                                                                                     22
Active Asset Management

  Every asset has a detailed business plan – team measured and
  remunerated against deliverables
  Research-led in spotting opportunities
  Active management strategies built around:
  – In-depth knowledge and reach into occupational markets
  – Lease restructuring to increase values
  – Refurbishment
  – Change of planning uses
  – Portfolio acquisitions with potential to realise value




             Spotting Value and Agile Approach
                                                                 23
MidCity Place, High Holborn, London

                     Invista acquired a 40% stake in August
                     2005 for £19.6 million, based on a value of
                     £215 million
                     Prime MidTown office comprising 351,000 sq ft let to
                     11 tenants at average rent of £37.50 per sq ft
                     Business plan to:
                         Restructure major tenants lease to increase rents
                         Re-finance quickly to maximise equity returns
                     Lease re-structure plus fixed uplift increased rent by
                     5.3%
                     Re-finance in August 2006 to release £16.2 million
                     Lease of top floor taken back, refurbished and re-let
                     at £60 per sq ft – 50% ahead of business plan

                     Property SOLD at £325 million in May 2008
                     Total equity exit at £44.2 million (3.1x,
                     121% IRR) incl re-finance proceeds)

                                                                              24
Campus Heusenstamm, Frankfurt
Contra Cyclical in 2006

                     Frankfurt HQ of Deutsche Telekom; 15yr
                     lease with annual indexation
                     Sourced off-market by Invista
                     Acquired in January 2006 for €78.6m gross
                     at NIY of 7.0%
                     Financed at 75% LTC; equity commitment of
                     €19.85m, debt of €58.81m
                     Solid bottom-up fundamentals; top down
                     investors wary of Frankfurt offices and high
                     vacancy rates
                     Asset management potential in respect of
                     development land
                     June 2007 = €93.9m – implied equity value
                     of €28.2m giving an equity multiple of 1.6x
                     and 60% IRR

                                                               25
101 St. Martins Lane, London
Active Management


                      • Acquired for £15.275m in June 2004
                      • ERV - £37.50 per sq ft
                      • Targeted refurbishment opportunity
                          - atrium reduced to create extra rent
                          - 8% increase to the floor area
                          - best space let at £50 per sq ft
                          - Completed on time and budget

                      • ERV today £60 per sq ft
                      • Sold February 2008
                      • Total return over 40% per annum




                                                                  26
Highlights

Review of Results

Financial Results

Performance & Asset Management

Outlook




                                 27
The Recyclable Balance Sheet

                                 Invista balance sheet
                                 investment capital

   Recycle investment                                    Acquire property
   capital & co-invest                                   portfolios
                                     Balance
                                      Sheet

                                                         Warehousing of
   Structure and launch new                              the portfolio
   fund for external investors
                                       Refinance if
                                       required




                      Certainty, Agility & Speed
                                                                            28
Real Estate Product Innovation = Performance
                                                                             Characteristic of real estate capital management

                                                     1. Pre-institutional                     2. Institutional                3. Outsourcing                    4. Product
                                                                                                                                                                  Innovation

                                                     Limited “investment”            Institutional investors             Institutional investors               Real estate behaves
                                                     market with most real           (Pension Funds, Insurance           outsource their property              increasingly as a financial
                                                     estate development carried      Cos) build their exposure,          teams to third party                  asset, with greater
                                                     out through REOCs using         often through in-house              managers who develop                  securitisation and
                                                     bank finance.                   teams.                              critical mass and expertise.          innovative ways for real
                                                                                                                                                               estate investment.
             Degree of real estate market maturity




                                                                                                                                                                                      US

                                                                                                                                                     UK Commercial
                                                                                                                                                                          Australia


                                                                                                                                                    France           Netherlands
                                                                                                                                       Hong Kong
                                                                                                              UK Residential
                                                                                                                                                   Singapore
                                                                                                                                   Germany

                                                                                                                     Iberia    Japan

                                                                                                          S. Korea
                                                                                   Latin
                                                                     China        America   Philippines
                                                                             India



Source: JLL; IPD; DB Real Estate; DTZ;
Note: Real estate market maturity reflects the transparency and liquidity of each market, as well as the share of real estate market that is “investable”


                                                                                                                                                                                             29
Outlook
 Challenging environment in 2008
 Prices are ‘over-correcting’ in UK – zero returns in 2008
 Softening in continental Europe – possibly 5%+ returns in 2008
 There will be moderation in IREIM’s financial performance:
  − Lower performance fees
  − Modest AUM movements
  − Growth in costs
 Opportunities remain for deploying balance sheet
 Refinancing events in the first half of 2008
 Cautiously confident going forward but slow down continues in 2008

Entrepreneurial approach ensures Invista is able to grow existing
      and new business even in adverse market conditions
                                                                      30
Appendix – Further Asset Management
Examples




                                      31
Asset Management – adding value
Outside the market cycle




 Multi-let industrial estate prominently located on the A4 in West London
 Acquired in July 2004 for £7.8 million
 Strategy to convert use from warehouse to car showroom
 Pre-let front unit to a very good tenant on a 20 year lease, 80% ahead of rent
 Current value £15.75 million, reflecting an increase of 100%
                                                                                  32
Asset management – adding value
Outside of market cycle
                    Hinckley, acquired for £7.25m
                    Strategy to obtain possession and look to obtain a
                    higher value planning consent.
                    Planning received in April 2007 for 100,000 sq ft of
                    retail warehousing and 25,000 sq ft of trade counter
                    Close to agreeing 50% pre-let and build with c. 70%
                    development finance.
                    Value of end development £27m


                     Wembley , acquired for c.£11m
                     74,000 office building acquired in July 2004 for
                     £8.25 million
                     72% vacant – refurbished and fully let within
                     nine months
                     Major site fronting Wembley Way, benefiting
                     from major investment by Quintain
                     Value over £25m and special purchaser

                                                                        33
Important notice
WE WOULD ALSO POINT OUT:
• Invista Real Estate Investment Management Holdings plc state that reasonable skill and care has been used in the preparation of this
  presentation and any forecasts expressed within it. Notwithstanding this warranty Invista shall not be liable for any loss of profit, business,
  revenues or any special indirect or consequential damage of any nature whatsoever or loss of anticipated saving or for any increased costs
  sustained by the client or his servants or agents in any way whether arising in any way directly or indirectly as a result of reliance on this model
  or of any error or defect in this presentation.
• This presentation and associated information is the property of Invista Real Estate Investment Management Holdings plc who reserve all
  intellectual property rights to its use and the components of the forecasts contained herein. It should not be copied or used for any other
  purpose or distributed to any other parties.
• All features in this pack are current at the time of publication but may be subject to change in the future.
• Unless otherwise stated, the source of information is Invista Real Estate Investment Management Holdings plc.
• No modifications or amendments to the presentation may be made without the prior permission of Invista Real Estate Investment Management
  Holdings plc.
• The document is to be used by the intended recipient(s) only and the document may not be forwarded to a third party without the prior consent
  of Invista Real Estate Investment Management Holdings plc.
• This document contains commercially sensitive information. In the event that disclosure of this document or the information contained therein
  is contemplated pursuant to the Freedom of Information Act 2000, please notify us.
• The data contained in this document is for information purposes only. It is correct to the best of our knowledge at the date of issue and may be
  subject to change. This document is not legally binding and no party shall have any right of action against Invista in relation to the accuracy or
  completeness of the information contained in it or any other written or oral information made available in connection with it.
• This presentation does not constitute an offer to invest in the securities of Invista Real Estate Investment Management Holdings plc.
• For the avoidance of doubt this document does not constitute a financial promotion as defined under the Financial Services and Markets Act
  2000 (Financial Promotions) Order 2001, as amended.


• Invista Real Estate Investment Management Holdings plc. Registered in England and Wales. Registered number 05788425. Registered office
  Exchequer Court, 33 St. Mary Axe, London EC3A 8AA




                                                                                                                                                         34

				
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