1. OPERATING IN LONG-TERM GROWTH MARKET
  • UK regeneration market is evolving:
    • (40%) of developable land owned by local authorities
    • Number of Public Private Partnerships opportunities is growing
    • Pressure on local authorities to deliver with shrinking resources
    • Consumer demand for mid-market homes is growing and housing delivery a government priority
  • Focussed on 3 strong growth regions: London City Region*, Manchester, Dublin

* A catchment area including satellite towns and locations within an hour’s commute of Central London

2. CLEAR COMPETITIVE ADVANTAGE
  • 25-year track record, experts in planning and leading PPP player
  • Mix of PPP, trading and investment activity gives several routes to value creation
  • PPP market has high barriers to entry - trust, reputation and quality (rather than just price) are key
  • Competitive strength within 3 core regions
    • London City Region: focussed on projects outside of prime/zone 1 locations where demand is growing and price point is appealing to consumers
    • Manchester: development partner to Manchester City Council on £850m regeneration project
    • Dublin: investing since 2014 giving early mover advantage in a market with reduced developer capacity
3. POSITIONED FOR GROWTH
  • Visibility on £50m+ development and trading gains per annum to FY2021 - driven by large scale PPP projects balanced with shorter-term trading activity
  • Guidance of over £150m of gains over the next 3 years
  • NAV driven by cash returns from management driven development, trading and investment activity, not accounting revaluations
  • £6bn development portfolio
  • Development assets held at cost – latent uplift potential from improved planning not reflected in NAV until projects are crystallised
4. OPTIMAL CAPITAL ALLOCATION
  • Operational leverage:
    • PPP model and joint ventures with major capital partners (specialist platforms) enable us to grow pipeline and deliver returns with limited equity investment in any one project
    • Limits specific project risk and keeps balance sheet debt at appropriate levels
  • Committed to redistributing surplus capital to shareholders
  • Balance sheet managed to minimise risks and maximise returns