KL Lender Update Presentation - June 16 - v6

BATTERSEA POWER STATION
PHASE 2 PROJECT UPDATE
Progressing to Drawdown
June 2016

Contents
a.
b.
c.
Overall Project Progress Update

Market Update
Phase 2 Updates & Approvals
1. Sales & leasing
2. Delivery & procurement
3. Appraisal & funding
4. Drawdown CPs
5. Facility amendments
6. Next steps
OVERALL PROGRESS UPDATE

Overall Progress Update
Sold 1,415 apartments of the 1,661 launched (85%) with GDV of c1.85bn successfully capitalised on market conditions and de-risked the project.
Very positive progress with commercial leasing. Phase 1 is +90% leased. Entire
Phase 2 office under HoT to a market leading global tech form - capitalising
on the strong commercial market conditions.
Procurement cost pressures are being offset by strong commercial revenue

performance - margin preserved.
Phase 1 on track to complete from Q4 2016 to Q1 2017.
Phase 2 main works have commenced with Skanska.
Phase 3 works have commenced.
NLE works making good progress.
Value added across the site - improving affordable housing values, improving
future residential mix and achieving planning consent for the Wharves.

Strong Residential Sales Performance
PHASE
UNITS SOLD TO DATE
% Sold
Average sq ft
Phase 1
863
99%
1,067
Phase 2
232
>90%
2,172
Phase 3a
320
>58%
1,681
TOTAL
1,415
Strong sales performance to date means the project is well positioned within the current residential market conditions.
Provides the opportunity for a proactive sales strategy which focuses on the medium / long term value drivers.
PHASE ONE
GROUND FLOOR
THE POWER STATION
Strong Commercial Letting Performance

CIRCUS WEST
Phase 1 commercial is over 90% let - independent artisan strategy to create Londons
new riverside village.
Arch No.
744
UNIT 05
1413sf
SECURITY HUB
BOOM CYCLE
UNITS 01 & 03
ARCHES ROAD
4,585 sf
DARWIN & WALLACE

UNIT 29 LOWER LEVEL
4043sf
Arch No.
754
Arch No.
755
Arch No.
Arch No. 758
759
HARBOUR
HARBOUR CLUB
CLUB
Arch No.
757
DODDS
Arch No.
753
Arch No.
752
RAW
DUCK
Arch No.
751
Arch No.
750
WHIRLED
CINEMA
Arch No.
749
WHIRLED
CINEMA
Arch No.
748
Arch No.
746
Arch No.
747
Arch No.
745
Estate
Storage
Estate
Storage
Staff
Welfare
Public
WCs
KEY
Academy
Advanced Negotiations
HOTs Issued
In Solicitors Hands
Arch No.
756
Exchanged
Available
BPSDC Space
As at 22nd April 2016
Note: For office units, Net of WCs area is being used
PHASE ONE
UPPER GROUND
THE POWER STATION
tia
en
sid
Re trance
En
l
CIRCUS WEST
e-
nc
tra
En
02 l
IT entia
UN sid LIDAY
Re AL
H
UNIT 01
2884sf
ESTATE AGENCY
PAUL EDMONDS
UNIT 22 & UNIT 21
5439sf
RESI MARKETING
UNIT 23
Residential
Entrance- Scott
UNIT 20
1997sf
SUITE
COFFEE
WORKS
UNIT 04
Residential
EntranceFLADGATE
UNIT 19
Residential
EntranceAmbrose
UNIT 12
PHILIPPA 2704sf
CRADDOCK
UNIT
13
1368sf
UNIT 11
Residential
EntranceDAWSON
UNIT 10
6431sf
UNIT 08
Residential
EntrancePEARCE
UNIT 09
FLOUR POWER
CITY
UNIT 06
2623sf
VAGABOND
UNIT 03
1966sf
ALLENS
UNIT 05
1385sf
THE MARKET PLACE
UNIT 24
5069sf
RESTAURANT
UNIT 26
3708sf
WRIGHT BROTHERS
UNIT 17 UNIT 17
436sf
440sf
UNIT
17
414sf
UNIT UNIT
18
18
344sf
UNIT 07
5678sf
ESTATE
MANAGEMENT
OFFICE
419sf
UNIT 25
3288sf
UNIT 14
10832sf
GYM
RESTAURANT
UNIT 16
16485sf
BPSDC OFFICE 1
UNIT 27
2890sf
PEDLER
Arch No.
744
UNIT 15
6111sf
BPSDC OFFICE 2
UNIT 28
Residential
EntranceBessborough
UNIT 29
4699sf
DARWIN & WALLACE
Arch No.
Arch No. 758
759
HARBOUR
HARBOUR CLUB
CLUB
Arch No.
757
DODDS
Arch No.
756
Arch No.
755
Arch No.
754
Arch No.
753
Arch No.
752
RAW
DUCK
Arch No.
751
Arch No.
750
WHIRLED
CINEMA
Arch No.
749
WHIRLED
CINEMA
Arch No.
748
Arch No.
747
Academy
Public
WCs
Arch No.
746
Arch No.
745
Staff
Welfare
Estate
Storage
Estate
Storage
KEY
Advanced Negotiations
HOTs Issued
In Solicitors Hands
Exchanged
Available
BPSDC Space
As at 22nd April 2016
Note: For office units, net of WCs areas is being used

Darwin & Wallace
The Market Place
UN IT
3675 26
sf
LUN
DA
AY /
BISTR
CH
&D
INNER
UNIT
4965 24
sf
LUN
CH /D
INNE
UNIT
2860 27
C A SU sf
A L/
ALL
UNI
Resi T 28
E ntr den tial
Bessbanceoro u
gh
CASU
A LL AL/
D
TAPA AY /
S
8
As at 30 March 2016
FLO
RIST
39
NI T
17
9sf
UNIT
UNIT
415s 17
U
1
f
N
LUN
7
IT U
CH
39
NIT
/L
1
2sf
8
IGH
T BIT
18
323s
ES/B
f
AKE
383s
RY /
f
COFF
EE
UNIT
3274 25
sf
UNIT
13
1300
sf
UN IT
2678 1 2
sf
WIN
E
MER
C
BA R H A NT
UNIT
Resid 11
Entr ential
a
DAW nceSO
N
UNIT
2884 10
sf
UNI
T
608 15
6
BPSD sf
C
Small format cinema / Pop-up /

Co-working space
BPSDC Space
BAT
TE
RSE
UN IT
3551 09
sf
A GEN
ERA
L ST
OFF
IC
E1
UNIT
Resi 08
Entr den tial
PEA anceRCE
ORE
BAK
ER
C HEE Y &
S EM
O
NG
UNIT
2565 06
sf
Village Hall
F&B
U
N
IT
10,3 15
2
BPSD 2sf
C O
FFIC
UNIT
4631 29
ALL sf
DAY
DININ
G
UNIT
10, 7 14
GYM 61sf
UN
IT
637 15
2
BPSD sf
C OF
FIC
E1
ER
U
13
Arch 749/750
Whirled Cinema
KEY
Arch 757
Dodds
UNI
T0
5983 7
sf
AGE ESTATE
MEN
T
OFF
ICE
MAN
E2
Arch No 759
.
Arch No. 758
Arch No. 757
Arch No. 75
6
Arch No. 755
Arch No. 754
Arch No. 753
A rch N o. 752
Arch No. 751
Arch No. 750
Arch No. 749
. 747
Arch No. 748
Arch No
746
745
Arch No.
Arch No.
. 744
Arch No
Arch 751
Pizza Pilgrims / Homeslice / Locappy
Arch 758/759
Harbour Club
Arch 754
Bleecker St / Tommis
Arch 752
Bao / Arlos
Arch 753
Raw Duck
PHASE ONE ARCHES
Arch 755
Bone Daddies / Jose Pizarro

Very strong interest in leasing the Phase 2 office space with bids received
from several very large high quality TMT companies.
Entire Phase 2 office (470k sqft) is under board approved HoTs to a global
tech firm for their new European HQ - a pre-let of this magnitude adds
enormous value.

Phase 3 Hotel (165 room) leased under a 15 year management agreement with
ArtOtel (Park Plaza Group).
10
11

Northern Line Extension - Construction Progress
TfL continues to make good progress on site with construction works have been on site for c15 months
Crossover box primary structure complete

Station box primary structure commenced
Crossover box piling in progress
East end of Crossover Box
View of Station and Crossover Box
13
Diaphragm walling to Station Box

Future Phases - Adding Value
Phase 4a affordable housing RP tenders indicate material premium to

appraisal values (up to c30m) - adds value to site.
Planning approval achieved to improve the residential site wide mix

across Phases 3b and 4 and change the Phase 4 hotel to residential adds value to site.
Planning approval achieved for the redevelopment of the neighbouring

Wharfs - adds value to site.
WRWA SITE REDEVELOPMENT (10.08.2015)
14
MARKET UPDATE

Market Update - Residential
A range of macro factors currently impacting the central London residential market.
Impact being felt predominantly in sales volumes.
16

JLL remain confident in medium to long term growth potential due to

key fundamental factors.
17

BPS remains well positioned to continue to outperform the market due to

its many beneficial characteristics.
The north / south value gap
The critical mass of visitor numbers
Redefining prime central London

The NLE
The maturing masterplan / placemaking as Phases 1, 2 & 3
complete
18

Market Update - Commercial
Central London retail market is buoyant with significant tenant and investor demand.
Forecast for continued rental growth over the next five years remain positive.
19

Office market continues to experience strong occupier demand and extremely low vacancy rates putting upward pressure on rents.
An increase in future supply will ease the vacant pressure whilst still promoting strong rental growth.
20

Appraisal vs Market Rents - Retail
Appraisal vs Market Rents - Office

1,200
140
West End Prime

120
West End Prime

1,000
120
1,000
100
800
80
City Prime
Appraisal
60
600
70
Shopping Centre Prime
56
475
400
40
Appraisal
200
20
Office - Phase 2
200
Retail (Zone A) - Phase 2
The appraisal ERVs are priced conservatively in comparison to the market - strong upside potential
21

Appraisal vs Market Yields
5.00%
Appraisal
4.50%
4.75%
4.00%
Sustained appetite for central

London assets from investors,
although yield levels stabilised.
The appraisal yields are priced very
conservatively in comparison to the
market - strong upside potential
Appraisal
City Prime
4.00%
3.50%
Shopping Centre Prime
4.50%
4.25%
West End Prime

3.50%
3.00%
West End Prime

2.50%
2.50%
2.00%
1.50%
1.00%
0.50%
0.00%
Office - Phase 2
22
Retail - Phase 2

Market Update - Construction
London construction market remains extremely busy; clients competing to use

a limited pool of contractors.
Many clients experiencing difficulty in agreeing price and contract with

contractors due to high volumes of work.
Recent examples where clients have had to change contractors include One
Nine Elms (Dalian Wanda) and Ram Brewery (Green Land).
First and early signs appearing that the slowdown in London residential
market will lead to a downgrade in construction cost growth forecasts.
23
PHASE 2 UPDATE

The Power Station - Key Status Update
Residential sales values have been underwritten - c90% pre-sales.

Commercial values have been underwritten - entire office space under HoT.
Construction contract being agreed with Skanska - optimum transfer of risk in the market.
Construction works well underway and progressing well - onsite for +24 months.
Revenue growth has outperformed cost growth - margin preserved.
No increase in debt sizing - cost to complete remains fully funded.
Programme shift requires extension to facility expiry - 5 year utilisation timing maintained.
25
RESIDENTIAL: 410,000 sq ft
OFFICE: 580,000 sq ft
EVENT SPACE: 105,000 sq ft
RETAIL AND F&B: 420,000 sq ft
CONTROL
A Globally Unique Retail Destination
An Retail Experience Attracting +40m Visitors Per Year
Destination Enhanced by Leisure and Event Space
2,000 capacity events venue
Sought after filming location
Chimney lift look out
Chimney lift look out
History of high profile events
Iconic event spaces
Workspace Like No Other
Sales & Leasing
31

The Power Station - Residential Sales Update
Over 90% of units sold, underwriting all

product pricing and types.
The strong sales position offers the ability to

focus on a long term value enhancement
strategy.
No. Units
GDV
psf
Average
Capital Value
Sold
229
568,528,965
2,172
2,482,659
Reserved
18,270,847
2,897
6,090,282
Held
38,370,000
3,192
7,674,000
Off-Market
18
154,393,000
3,163
8,577,389
Total
255
779,562,812
2,370
3,057,109
32

The Power Station - Commercial Leasing Update
The Power Station leasing campaign is focused on pre-letting the office space
in the first instance, coupled with building brand awareness of retail letting in
the medium term.
The market interest in the office is extremely strong - especially comforting

given the quality of tenants (TMT), attractive terms and early timing.
Interest driven by the iconic building, large floor plates, centrality / accessibility
and scheme amenity / mix of uses.
Over 50 notable viewings and +350 people visiting site from brands such as
ITV, Warner Brothers and the British Fashion Council.
AFL offers for all or part of the space received from Discovery Communications,
The Office Group, Expedia and Cezanne.
Interest at this level underwrites the commercial values, implies strong

opportunity for future outperformance, provides the ability to enhance
leverage and offers an excellent endorsement for the entire project.
33

PADDINGTON AND KINGS CROSS RENTAL GROWTH

November 2015
per sq ft
Paddington
90
Orange, 35.00 PSF

Q1 2001
M&S, 53.50 PSF

Q2 2008
M&S, 35.00 PSF

Q2 2001
Q2 2015
1-Google, 56.50 PSF (S2)and
2-UMG Oct 2015 (Pancras) at 75
40
value purposes)
Source:
CBRE
34
2019
2018
2017
2011
2010
2009
2008
2007
2006
2016
Google, 62.50 PSF

Q4 2014 (old BNP space)
BNP 47.50 PSF 2013
2005
2004
2003
2002
2001
2000
1998
1997
1996
1995
1994
10
1999
LB Camden, 47.50 PSF

(estimate for land value purposes)
Q4 2011
2012
20
Havas, 62.50 PSF

Q2 2014
Google, 55 PSF
Q1 2014 (estimate for land
30
2015
50
2014
60
FORECAST
Nokia, 57.50 PSF

Q4 2015
Statoil, 60.00 PSF

Q3 2008
2013
70
1993
Knight Frank have suggested this deal

may also offer further yield
compression of c75bps - additional
100m value.
Visa, 40.00 PSF

Q4 2001
80
1992
Cezanne offers the opportunity for a

similar Google effect, as experienced
at Kings Cross - over 40% rental
growth.
1991
M&S, 57.50 PSF

Q4 2015
King's Cross

Retail leasing strategy is to:
continue to build awareness and seek new contacts.
secure up to 25% of income by year end 2017.
seek to secure anchor letting for fashion hub space i.e Selfridges, Galeries
Lafayette as first key letting.
announce anchor letting as preface to further leasing.
focus on new market entrants, specifically; new leads, British Fashion brands.
35

The Power Station - Value Opportunities
We continue to strive to increase the value of the Power Station and studies are ongoing to;
1.
Increase the retail area internally (reduce mall widths and push out the shop fronts)
2.
Convert the Fashion Hub into an Anchor Store to drive retail rents
3.
Redesign the halo landscaping from water to grass and introduce retail pop-outs into the
revised Halo landscaping
4.
Convert the Hotel into an Office
5.
Relocate the Turbine Hall A bridge to access the Control Room A from the Events space
6.
Detailing of the Food Market and introduction of the Chimney Lift shop
7.
Convert the Leisure club into Retail
The benefit of these opportunities is not factored into the appraisal and the anticipated value
uplift could be 50m before costs.
36

The below illustrates the potential to push out the shop fronts and increase area - Turbine Halls A and B current.
37

The below illustrates the potential to push out the shop fronts and increase area - Turbine Halls A and B enhanced.
38

The potential to create a 40,000 sq ft

anchor store within level 1 of the retail
space and benefit from additional footfall
and covenant.
39

Proposal to replace the water feature

along the Halo Road with hard
landscaping to allow the creation of
additional retail frontage pop-outs.
Creates an active facade,

compliments the existing retail offer
and enhanced F&B areas.
40

Conversion of existing Hotel to an office/business club use in

order to capitalise on the strong office demand (The Office Group).
Creates an additional 40,000 sq ft of office space located on levels

2 and 3 of the Boiler House with an entrance lobby at ground
level.
41
Delivery & Procurement
42

The Power Station - Construction Progress
A view in the Boiler House showing the size of the existing

steel members
Inside the North East Chimney the rebuild has commenced,

first levels of shutters going in
43

A view from the North East Chimney deck

over the East roof as we prepare to
commence demolition
High level steel adaptions
44

Piling in the Boiler house and adaptions to

the Historical Faade retention system.
Great progress continues on the

East Wall
45
In the turbine hall progress drives on

The Power Station - Route to Contract
46

The Power Station - 240m Direct Trade Contracts for CP
Direct trade contracts of c260m have been procured to satisfy the

drawdown CP - will shortly be issued for sign off.
The direct trade contracts will be novated to Skanska under the Main
Contract thereafter.
The key contracts include:
Internal enabling and north secant (BLU-3) - 21m

External cladding (Focchi) - 27m
Internal piling (Bauer) - 29m
North sub-structure capping beam (Carey) - 17m
Internal sub-substructure (Mitchellson) - 60m
Steel (William Hare) - 67m
Demolition (Keltbray) - 42m
47

The Power Station - Main Contract Terms
The Main Contract terms are being negotiated with Skanska.

The terms reflect the evolving construction market during the
procurement process and subsequent need to consider
appropriate risk sharing between the developer and contractor
in order to obtain an optimum risk adjusted price.
Key Terms!
Advanced
Payment
Some of the key terms which reflect a shift in risk allocation

(compared to Phase 1) are as follows:
OH&P
Limit phase interface liabilities
OH & P
Advanced payment amounts
Anticipated Outcome
23m payment for Early Works Contract

50 - 60M (c78m total), fully bonded on demand
4.25% to achieve the contract programme

0.25% incentivised should they achieve a 60 day programme
betterment
LADs at c450,000 per week at PC (August 2020) payback

period currently under negotiation.
Caps on liability and LADs

Limits on PI levels
LADs
Limits on concept design responsibility

Limit ground, inclement weather and utility performance
risk liability
48

The Power Station - Construction Cost Overview
The below illustrates the construction cost position.
49

The following are held outside the Skanska contract.

87.9m
57.5m
Preliminary Repair Works

(Refurb Co)
Deferred Works
Chimney replacement works

Elevation Repairs
Wash Tower Works
Miscellaneous trade packages
Offices CAT A fit-out

Retail shop fronts
Boiler House offices lounge and
reception
Food Market Fit-out (Ex S&C
Services)
Control Rooms A & B
Bandstand
26nr Residential Apartments
Costs outside P2 Appraisal

Tenants, MUSCO and Others
Other Phases / Site Wide Costs
Tenant fit out (Offices CAT B+,

Retail, Events Space, Cinema)
Utility & infrastructure services fit
out (i.e. Musco / Esco)
Landlord ICT / Asset
Management business systems
UKPN
Malaysia square finishes,

Gallery and Leisure Box
Hard landscaping/road build up
to roundabout and access
roads to East
River cooling/HRP
Site wide roads (i.e. pump
house lane) and phase /
infrastructure interface
Jetty
CIL

The Phase 2 construction costs include c130m of site wide

infrastructure which benefits the wider project but practically needs to
be funded and delivered as part of Phase 2.
The key additional site wide items include:
Increased boundary
Northern basement incl service road and north loading bays
ESCO box and infrastructure
Southern basement incl Phase 3 access
South east loading bay
East basement
Phase 1 temporary flu tower
Phase 1 halo road works
Phase 3 basement box, halo road and infrastructure works
Phase 4 access ramp piling
51

52

The Power Station - Construction Programme
Skanska have proposed a contract programme on which they are willing to contract.
The programme completion represents a 12 month extension to the original estimates, overall PC in August 2020.
Therefore a 12 month shift to the facility expiry date is required (from Oct 19 to Oct 20).
The programme change requires a shift of the debt utilisation period of 12 months, not an extension - utilisation remains 5 years.
53
Appraisal & Funding
54
DEVELOPMENT FEASIBILITY SUMMARY ('000)

The Power Station - Appraisal Update
The latest forecast represents a c33m improvement in profit since funding

financial close (163m improvement net of site wide costs).
Revenue estimates reflect underwritten values and a conservative view of market

conditions.
Cost estimates represent the appointments and procurement agreed to date and
the latest position being agreed with Skanska.
Contingency and inflation provisions of c187m remain to mitigate against risks.
55
REVENUE
Total Residential Proceeds
Total Commercial Value
Total Revenue
775 m
1,409 m
2,184 m
DEVELOPMENT COSTS
Allocated Land Cost
Survey & Enabling Works
Statutory
Insurance
Construction Costs
Construction Contingency
Construction Inflation
Professional Fees
Sales & Marketing - Residential
Sales & Marketing - Commercial
Other Development Costs
Total Development Costs
91 m
5 m
6 m
35 m
1,275 m
134 m
66 m
89 m
23 m
94 m
56 m
1,872 m
Total Finance Costs

Less: Phase 2 Funded Site Wide Costs
128 m
-130 m
PERFORMANCE
Project Profit
Return on Equity (ROE)
Profit on Cost (PoC)
314 m
42%
17%
FUNDING
Peak Equity
Peak Debt
745m
750m

The Power Station - Revenue Assumptions
The appraisal residential revenue is underwritten by the strong sales performance to date (90% sold).
The average value of 2,370 psf reflects actual sales to date and a 5% buffer against unsold JLL price list.
Agents fees of 2% are applied to the unsold units, which compares against the average cost of sales to date of 1.4%.
The appraisal office revenue is underwritten by the Cezanne lease HoTs.
Valuation based on a conservative NIY of 4.75% to

reflect the strength of the tenant and commercial terms.
Knight Frank advised of further yield compression

potential of 75bps due to the Cezanne deal.
The JLL Dec 15 valuation did not take into account any
leasing demand to date, excludes this upside.
56

The Power Station - Revenue Assumptions
The appraisal retail, F&B and leisure revenue reflect a conservative interpretation of the latest market rental and yield evidence, agent
advice and JLL Dec 15 valuation.
BPSDC APPRAISAL
Area
R ent
ps ft /p.a.
Annual
R ent
R ent
F ree
(months )
R etail
296,879
81.0
24.0m
F &B
73,533
51.1
L eis ure
80,720
O ther **
n/a
As s ets *
JLL VALUATION DEC 2015

NIY
Net Value
at P C
DIFFERENCE
IN
NET VALUE
AT PC
20.0 m o
4.00%
502.5m
+37.6m
3.5m
16.0 m o
4.00%
79.5m
116.7
9.4m
2.0 m o
4.00%
n/a
9.2m
n/a
5.87%
NIY
Net Value
at P C
R ent
ps ft /p.a.
Annual
R ent
R ent
F ree
(months )
20.0 m o
4.50%
464.9m
76.5
22.7m
3.8m
16.0 m o
4.50%
74.0m
46.3
105.2
8.5m
11.0 m o
6.29%
119.7m
n/a
13.8m
n/a
6.50%
194.90
* E xc ludes the B andS tand, P arking and A T MS

**Inc lude the C himney L ift and C ommerc ialis ation
As s ets * B P S D C
JLL
K nig ht
F rank
R etail
4.50%
4.00%
4.00%
+5.5m
F &B
4.50%
4.00%
4.00%
220.9m
+101.2m
L eis ure
6.29%
4.00%
5.50%
173.6m
(21.3)m
O ther **
6.50%
5.87%
5.50%
T O T AL VAL UE U P L IF T B AS E D O N J L L VAL UAT IO N
123.0m
57

The Power Station - Cost Assumptions
The key development cost assumptions are summarised as follows:
The construction cost assumptions reflect the anticipated main contract price from Skanska and is also supported by a
G&T cost plan.
A contingency and inflation provision of 184m is budgeted to offset future risk. This allowance takes into account that
the risk on the construction costs has been significantly reduced during the Skanska main contract procurement process,
works completed to date and agreement of c260m of direct trade contracts.
The professional fee budget of 89m reflects the key consultant appointments - represents c7% of the construction cost.
The sales and marketing budget (excl incentive capex) reflects 2.5% of residential and commercial GDV.
58

The Power Station - Funding Update
1,600m
Peak Debt
1,400m
Debt facility maintained at

750m.
Peak equity funding

745m.
Bankable pre-lets offer

ability to increase
leverage in the future.
Debt utilisations occurring

within 5 years.
1,200m
Peak Equity
1,000m
800m
600m
Deposit/stage payment
funding
400m
200m
0m
Equity
Deposits & Stage Payments
Resi Proceeds
Equity (above max debt)

Resi Revenue Funding
Office Proceeds
59
Debt
Revenue for Repayment
Retail Proceeds

Project spend to date of c150m excluding land cost.
Phase 2 Development Costs
2,000m
1,800m
Acquisition Costs
1,600m
Allocated Land Cost
1,400m
Development Costs
1,200m
Costs to Date
1,000m
800m
600m
400m
200m
0m
Allocated L and Cost

Construction Costs
Total Finance Costs
Total Budget
Spend To Date
Costs to Complete
90.85 m
90.85 m
100%
Survey & Enabling Works

Statutory
Insurance
Construction Costs
Professional Fees
Sales & Marketing - Residential
Sales & Marketing - Commercial
Sitewide & Phase Specific Admin & Legal
5.21 m
5.66 m
34.77 m
1,391.39 m
75.46 m
23.09 m
93.71 m
55.79 m
2.59 m
0.25 m
3.52 m
61.36 m
35.35 m
12.09 m
1.69 m
15.19 m
50%
27%
2.62 m
5.41 m
31.25 m
1,330.04 m
40.11 m
11.01 m
92.02 m
40.59 m
1,685.08 m
132.04 m
8%
1,553.04 m
96.27 m
0%
96.27 m
127.78 m
17.08 m
13%
110.69 m
1,999.98 m
239.97 m
12%
1,760.00 m
Total Power Station Refurb Costs
Statutory
Professional Fees
Sales & Marketing
Other Development Costs

Power Station Refurb Cost from Phase 1
Budget
Remaining
Total Finance Costs

60
4%
10%
4%
47%
52%
2%

PH2 SOURCE & APPLICATION OF FUNDS
Total Budget
To Date
Budget
Remaining
Funding Sources ('000)

Deposits
Exchange / Stage Payments
163.55 m
12.56 m
32%
150.98 m
99.81 m
0%
99.81 m
Development Equity
Land Equity
717.31 m
27.26 m
136.56 m
27.26 m
13%
100%
580.75 m
-
Total Equity
744.56 m
163.81 m
17%
580.75 m
928.46 m
63.60 m
-
63.60 m
0%
100%
928.46 m
-
992.06 m
1,999.98 m
63.60 m
239.97 m
6%
12%
928.46 m
1,760.00 m
Total Ph2 Development Costs

Total PS Refurb Costs
Total Finance Costs
1,775.93 m
96.27 m
127.78 m
222.89 m
-
17.08 m
13%
13%
1,553.04 m
96.27 m
110.69 m
Total Cost Applications
1,999.98 m
239.97 m
12%
1,760.00 m
Costs to date (excl land) funded

predominantly by equity.
Revenue Funding
Costs to complete remain fully

funded on a conservative capital
structure.
Equity Requirements
First drawdown will include the

funding of costs to date (balance
D:E) plus Skanska advanced
payments.
Sales Proceeds to cover PS Refurb Costs
Debt Requirements
Development Debt
Land Debt
Total Debt
Total Funding Sources
Cost Applications ('000)
61
0%
Drawdown Conditions Precedent
62

The Power Station - Drawdown CPs
CPs to drawdown Term Facility B

and Revolver almost complete.
Awaiting approval for items in the

deal room.
c260m of construction contracts

have been procured, to be
submitted for approval shortly.
Will engage with the Project

Monitor and B&M to complete
their reports.
Target CP satisfaction to enable

drawdown in August.
KEY DRAWDOWN CONDITION PRECEDENTS

- Presales threshold (511m)
- Rights of l ight reliance
- Planning report
- NHBC buildmark scheme
- Requisite consents
- Executed DMA
- Executed PCSA
- Executed key professional team appointments
- CW's & TPR's for key professional team
- Executed construction contracts totaling 240m
- CW's for construction contracts
- Perfomance and advanced payment bonds for contracts
- Development appraisal
- Project Monitor report
- Baker McKenzie report
63
STATUS
Achieved, awaiting sign off
Procured, awaiting e xecution & sign off
To be submitted
To be completed
To be completed
Facility Amendments
64

The Power Station - Facility Amendments
The programme shift dictates the need for an extension

of the Phase 2 facility expiry date by 12 months (from Oct
19 to Oct 20).
The availability period remains within 5 years (no

extension), therefore avoids Bank Negara R+R process
Minor amendments to the facility agreement to reflect

the programme shift - markup to be circulated shortly.
Not required to satisfy drawdown conditions.
65
NEXT STEPS

The Power Station - Next Steps
The target timing of key next steps summarised as follows:

1. Sign off completed CPs - June 16
2. Complete key outstanding CPs
A. Execute 260m direct trade contracts - June 16
B. Complete Project Monitor and B&M reports - July 16
3. Complete first drawdown - August 16
4. Enter into Skanska main contract (not required for drawdown) - August 16
5. Complete facility agreement amendments (not required for drawdown) - August 16
67

KL Lender Update Presentation - June 16 - v6

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BATTERSEA POWER STATION

PHASE 2 PROJECT UPDATE

BATTERSEA POWER STATION

Overall Project Progress Update

OVERALL PROGRESS UPDATE

BATTERSEA POWER STATION

Procurement cost pressures are being offset by strong commercial revenue

Phase 1 on track to complete from Q4 2016 to Q1 2017.

Phase 2 main works have commenced with Skanska.

Phase 3 works have commenced.

NLE works making good progress.

BATTERSEA POWER STATION

UNITS SOLD TO DATE

BATTERSEA POWER STATION

Strong Commercial Letting Performance

DARWIN & WALLACE

THE MARKET PLACE

Note: For office units, net of WCs areas is being used

BATTERSEA POWER STATION

Darwin & Wallace

The Market Place

Small format cinema / Pop-up /

Arch No. 758

Arch No. 757

Arch No. 755

Arch No. 754

Arch No. 753

Arch No. 751

Arch No. 750

Arch No. 749

Arch No. 748

PHASE ONE ARCHES

Strong Commercial Letting Performance

BATTERSEA POWER STATION

BATTERSEA POWER STATION

BATTERSEA POWER STATION

BATTERSEA POWER STATION

Crossover box primary structure complete

East end of Crossover Box

View of Station and Crossover Box

Diaphragm walling to Station Box

BATTERSEA POWER STATION

Phase 4a affordable housing RP tenders indicate material premium to

Planning approval achieved to improve the residential site wide mix

Planning approval achieved for the redevelopment of the neighbouring

BATTERSEA POWER STATION

Impact being felt predominantly in sales volumes.

BATTERSEA POWER STATION

JLL remain confident in medium to long term growth potential due to

BATTERSEA POWER STATION

BPS remains well positioned to continue to outperform the market due to

The north / south value gap

The critical mass of visitor numbers

Redefining prime central London

BATTERSEA POWER STATION

BATTERSEA POWER STATION

BATTERSEA POWER STATION

Appraisal vs Market Rents - Office

West End Prime

West End Prime

Shopping Centre Prime

Retail (Zone A) - Phase 2