Case Study Clarence Dock, Leeds Richard Starkey CFO Crosby Lend Lease Investor Roadshow UK / US May 2006
Case Study Clarence Dock Case study Clarence Dock, Leeds Leeds demographics History Site acquisition Marketing strategy Scheme financial performance Purchaser profile Site tour Scheme status and performance by phase provided as appendix for information 21
Leeds Demographics Population of 750,000 Second largest metropolitan district in England 11 million visitors to Leeds annually Third largest commercial centre in UK Largest legal centre outside London 12 billion economy expected to grow to 16 billion by 2014 One of the fastest growing economies in UK Recently voted Best city for Business 22
History Historically the site had light industrial uses, including timber yards using the Dock and river network Site lay partly derelict throughout 1980 s, during which time allocated as a development site Various master plans proposed, mainly as outlet retailing Main obstacle to development blight over site caused by Yorkshire Chemicals blast zone Royal Armouries Museum relocated from London to Clarence Dock in 1996 23
Royal Armouries Museum Opened in 1996 Attracts 350,000 visitors per year Attracts 100,000 conference and banqueting delegates per year National Visitor Attraction of the Year 2004 24
Complex site acquisition Crosby became involved in the scheme in 1997 Outline planning granted May 2000 Blighted by Yorkshire Chemicals blast zone - agreement reached to remediate and remove blast zone in 2001 Multiple lease/ownership issues Contaminated brownfield site Landowners Master Agreement completed in 2002 25
Clarence Dock The vision A new waterside destination for Leeds Latest master plan 1,124 units (circa 2,500 residents) 24,000m 2 of commercial 9,300m 2 of offices 4,600m 2 of leisure, including Casino let to London Clubs International. 5,600 m 2 of bars/restaurants 4,200 m 2 of retail Multi storey car park with 1,650 spaces Land sold for development of a Holiday Inn Express 26
True urban regeneration Significant contribution by Crosby to Leeds economy: Development of a contaminated brownfield site Contribution to Leeds supertram - 500,000 Three new bridges Cycle route along River Aire Training and employment initiatives Bus service enhancements Completed scheme will attract 1.5 million visitors per year 27
Clarence Dock site plan 28
Purchaser profile 89% of sales to Investors, varying from personal investors buying one to two units to professional investor buying larger portfolio 10% of sales from local market 84% of sales from United Kingdom 29
Crosby Lend Lease Business Model Clarence Dock Margin Enhancement Initial Current 57m Gross Margin 36m Development Costs Land Units 451 1,145 Sq Ft - Mix Percentage Residential Commercial 36% 64% 52% 48% 30
Crosby Lend Lease Appendices Clarence Dock Investor Roadshow UK / US May 2006
Block A and B - 366 units all sold Blocks A and B residential 100% Legally Complete Launched Block A - July 2002 - all sold within a year Block B - September 2003 - all sold within 9 months Build complete Block A - May 2004 Block B - February 2005 32
Block C - 210 residential units and 8,400m 2 commercial Block C residential 84% sold (excluding affordable units) Launched September 2004-148 units sold in 18 months Start on site January 2006 Build complete October 2007 6,600m 2 of offices under construction due for completion January 2007, to be let and sold 1,800 m 2 of retail to be let and sold 33
Block D - 227 residential units and 2,300m 2 commercial Residential units - 100% Contracted Launched January 2005 - all units sold to a single investor Start on site November 2005 Build complete - June 2007 2,300m 2 of bars, restaurants and retail, to be let and sold 34
Block E - 200 residential units and 2,200m 2 commercial Residential units -100% Legally completed (excluding eight affordable units) Launched April 2004 - all units sold within 18 months Start on site August 2004 Build complete January 2006 2,200m 2 of bars, restaurants and retail, to be let and sold 35
Block G - Casino 4,600m 2 Let to London Casino International at a rent of 11 per square foot Investment sale being progressed to exchange of contracts Build complete October 2006 36
Block H 121 residential units and 4,100m 2 commercial Residential units - 100% contracted (excluding affordable units) Launched April 2005 - all units sold to a single investor Start on site February 2006 Build complete July 2007 2,100m 2 of office, to be let and sold 2,000m 2 of bars, restaurants and retail, to be let and sold 37
Multi storey car park 1,650 spaces (32,500m 2 ) Completed in April 2004 Anticipated to reach maturity in 2008 Strategy is to hold investment to maturity and to dispose to realise full investment value 38
Chelmsford catchment 35 miles north east of Central London Catchment of 1,560,000 Regular comparison goods shopping population of approximately 233,000, a penetration rate of nearly 15.00%. Ranked 60th nationally by size out of more than 4,500 trading locations Source: National Survey Of Local Shopping Patterns, CBRE 2