Halladale Presentation David Lockhart Chief Executive Ken Lindsay Property Director March 2007
the creation of value through active and entrepreneurial management, risk controlled development and co-investment in commercial property assets 2
3 Business Model Asset management Directly owned Co-investment Development Directly owned Co-investment Co-investment fund management CReAM Nelson Rynda m 68 434 35 50 245 30 83 m 502 85 358 945
4 Track Record Founded in 1991 3i invested in 1997 Admitted to AIM 2001 at 50p per share Corporate equity raisings totalling 58m Project equity fund raisings totalling 250m Total portfolio under management approaching 1bn Total development programme end value in excess of 650m Consistent geared project IRRs in excess of 20% Consistent growth in PBT, DPS and EPS Total shareholder return since Admission in excess of 25% pa
5 Track Record Profit before tax ( '000) Dividend per share (pence) 7,000 6,289 4.0 3.80 6,000 5,000 4,000 3,000 2,609 3,922 4,116 3.5 3.0 2.5 2.0 1.5 1.60 2.10 2.90 1.75 2,000 1,691 1.0 1,000 0.5 0 30th April 2003 30th April 2004 30th April 2005 30th April 2006 31st October 2006 0.0 30th April 2003 30th April 2004 30th April 2005 30th April 2006 31st October 2006 Final Interim
6 Track Record Basic Earnings per share (pence) Total Transactions ( m) 12 10 8 6 4 2 0 10.42 10.39 9.99 7.21 5.82 30th April 2003 30th April 2004 30th April 2005 30th April 2006 31st October 2006 500 450 400 350 300 250 200 150 100 50 0 120 155 347 30th April 2003 30th April 2004 30th April 2005 30th April 2006 31st October 2006 455 232 Final Interim
7 Track Record Total Portfolio ( m) Co-investment portfolio ( m) 900 800 818 800 700 712 700 600 500 400 300 200 100 145 205 450 632 600 500 400 300 200 100 110 162 388 529 0 30th April 2003 30th April 2004 30th April 2005 30th April 2006 31st October 2006 0 30th April 2003 30th April 2004 30th April 2005 30th April 2006 31st October 2006 Final Interim
8 Co-investment Activities Partners include: Bank of Scotland Citigroup Tyburn Lane Private Equity Anglo Irish Private Equity Carlyle Group Kodak Pension Fund Provide: access to larger projects growing recurring fee income spreading of financial risk effective use of equity improved returns to Halladale shareholders
9 Co-investment Funds m CReAM 245 Nelson 30 Rynda 83 358
10 Executive Board David Lockhart - Chief Executive is a Solicitor and Chartered Accountant with over 25 years experience in commercial property Ken Lindsay - Property Director is a Chartered Surveyor with over 25 years experience in commercial property Mark Harkin - Finance Director is a Chartered Accountant with over 15 years experience in commercial property Simon Taylor - Director of Structured Finance is a Chartered Surveyor with over 15 years experience in property finance
11 Senior Property Team Allan Lockhart (Retail Director) David Petrie (Business Space Director) Douglas Harper (Project Manager) Bryan Sherriff (Development Director) Alistair McGill (Business Space Director) Ewan Black (European Asset Manger) Alison Robertson (Fund Management Director) Ewan Cameron (Asset Manager) Mike Wimble (Retail Asset Manager) John McLaughlin (Finford) Matthew Rhodes (Project Manager) Graham McPhail (Business Space Asset Manager)
12 Active Approach Opportunistic, neither sector nor geographic specific Entrepreneurial and active asset management Strong risk controlled development programme Financial model for each project Rapid profit realisation Asset backed income streams Strong national network of surveying contacts
13 Recent Activity March 2007 - Rynda s en Primeur fund attracts 75m investment from GIC Real Estate February 2007-26m acquisition of shopping centre in Nailsea January 2007-41m acquisition of office and retail in Croydon and Harlow January 2007-17m acquisition of office in Rennes through Rynda Fund January 2007-41m disposal of Shopping Centre in Brentwood, Essex January 2007-9m acquisition of office building in London, EC3 October 2006-99m French portfolio acquisition through Rynda Fund October 2006-72m acquisition of five London offices October 2006-15m acquisition of shopping centre in Billingham August 2006-26m acquisition of shopping centre in Eastbourne May 2006-74m acquisition of office block in Hammersmith W14 April 2006-14m forward sale of phase one retail development in Isle of Wight February 2006-45m acquisition of office block in Hammersmith W14 January 2006-33m disposal of shopping centre in Great Yarmouth November 2005-25m acquisition of mixed use building in London EC4 October 2005-10m acquisition of office in Edinburgh October 2005-54m disposal of retail park in Warrington
14 Key Projects On Balance Sheet Office at Tudor Street, London EC4 Office at Moorgate, London EC2 Office/retail at Shaftesbury House, Glasgow Office at Fountain House, Edinburgh Retail development at Newport, Isle of Wight Shopping Centre at Bingley Shopping Centre at Billingham Foodstore development at Dalgety Bay, Fife Residential/retail at Cochrane Square, Glasgow Retail Development at William Hunters Way, Brentwood
Tudor Street, London EC4 15
Shaftesbury House, Glasgow 16
Cochrane Square, Glasgow 17
William Hunters Way, Brentwood 18
19 Key Projects In Co-investments Office at Gracechurch Street, London EC3 Offices at Hammersmith, London W14 Office at Aldermary House, London EC4 Office/retail at Strand, London WC2 Office/retail at Sunbury-on-Thames Offices at five locations in London Offices at Carolyn and Philip House, Croydon, London Langney Shopping Centre, Eastbourne Queens Square Shopping Centre, West Bromwich Queen Street Shopping Centre, Darlington Retail at Broadwalk, Harlow Retail warehouse development at Cumbernauld Retail at Crown Glass Shopping Centre, Nailsea 70 acres office/industrial development site in Aberdeen
Gracechurch Street, London EC3 20
Hammersmith Grove, W14 21
Queens Square, West Bromwich 22
Westway Retail Park, Cumbernauld 23
24 UK Property Portfolio Details Total UK Portfolio ( m) 862 Number of Properties 63 Number of Tenants 930 Total annual rent roll ( m) 42 Total square footage Retail Office Industrial 2,450,000 1,150,000 118,000
25 Sector Analysis by Value Industrial 1% In Town Retail 9% Out of Town Retail 6% Industrial 1% In Town Retail 11% Out of Town Retail 8% Shopping Centre 43% Office 41% Shopping Centre 54% Office 26% March 07 April 06
26 Geographical Analysis by Value West Midlands 6% South West 9% Yorkshire & Humberside 4% East AngliaEast 3% Midlands 1% North 9% North West 1% West Midlands 8% South West 7% Yorkshire & East Anglia East Humberside 4% Midlands 6% 1% North 10% North West 1% London 29% London 20% South East 30% Scotland 8% South East 32% Scotland 11% March 07 April 06
27 Key Properties under Management Offices 1 Shaftesbury House, Glasgow 2 The Strand, London WC2 3 Becket House, Cheapside, London EC2 4 Moorgate, London EC2 5 Chubb Tower, Sunbury-on-Thames 6 Aldermary House, London EC4 7 Tudor Street, London EC4 8 Hammersmith, London W14 9 Fountain House, Edinburgh 10 Hammersmith Grove, London W14 11 Portfolio of 5 London offices 12 Gracechurch Street, London EC3 13 Carolyn and Philip House, Croydon 1 15 22 17 9 14 Office/Industrial 14 70 acre site in Aberdeen 25 20 Retail 15 Westway Retail Park, Cumbernauld 16 South Street, Newport, Isle of Wight 17 Dalgety Bay, Fife 18 St Mary s Gate, Sheffield 19 Broadwalk, Harlow 20 Billingham Town Centre 21 Crown Glass, Nailsea 24 23 18 Retail/Residential 22 Cochrane Square, Glasgow Shopping Centres 23 Queens Square, West Bromwich 24 Myrtle Walk, Bingley 25 Queens Street, Darlington 26 Langney Shopping Centre, Eastbourne 21 1119 5 2 3 4 10 8 7 6 1312 26 16
28 Next Steps Transaction closing 30 th April 2007 Rebranding Stockland Halladale Business as usual deliver results Value created through active asset management and development Opportunistic approach Expansion of risk-controlled development programme Strategic repositioning run in parallel Joint Venture relationships extended Fund management Australian investors Residential capability mixed use focus Expansion of European activities
29 Halladale Group plc Prince Frederick House 37 Maddox Street London W1S 2PP Telephone 0845 070 4633 Facsimile 020 7659 9775 39 George Street Edinburgh EH2 2HN Telephone 0845 070 4633 Facsimile 0131 225 8373 93 West George Street Glasgow G2 1PB Telephone 0845 070 4633 Facsimile 0141 204 4655 Email: all@halladale.co.uk Web: www.halladale.co.uk