Peter Connolly Development Director Blueprint

2. Peter Connolly Development Director Blueprint

3. What are we? • A Property Development Company that specialises in regeneration • but different and distinctive • A different structure • A different remit • A different approach

4. The Blueprint Structure • A Property Regeneration Partnership formed in May 2005 • Igloo, EMDA, EP as shareholders • Igloo as an ethical regeneration fund (first of its kind) • A true Public Private Partnership – no one dominant partner • Shared investment, ownership, risk, profit and control

5. Igloo Regeneration Igloo is described by the United Nations as the World’s first sustainable property investor and is the only substantial socially responsible real estate investment vehicle in the UK. Igloo is developing a real estate investment portfolio founded on an SRI policy.

6. Socially Responsible Investment 21 criteria across 3 themes Regeneration - investing in the regeneration of the social, physical and economic fabric of urban neighbourhoods; Environmental - investing in schemes that demonstrate the environmentally sustainable use of resources during construction and subsequent occupation; and Urban design - investing in an urban renaissance through the design of buildings and public realm that are distinctive, vibrant and urban in character. Health and Wellbeing – Ensuring that the people that will live, work and dwell in the places we create are right at the centre of the design.

7. Igloo Regeneration Igloo currently has 23 projects across its direct development and partnership portfolios with a completed development value of £2.5bn creating 8,500 homes and 10,000 jobs on around 250 acres of brownfield land. Igloo continues to market for further equity and is actively assessing new development opportunities in edge of city-core locations within the UK's Top 20 centres.

8. Creates – A Potent Mix Brings together public sector influence and resource with private sector money, skills and experience. Generates more money, more people and more expertise to support the East Midland’s regeneration agenda. A partnership where all can benefit.

9. The Blueprint Remit • Public benefits, shared profits. • Help EMDA / English Partnerships and associated stakeholders to deliver core objectives. • Focus on projects where the mainstream private sector might struggle to deliver desired outcomes. • Concentration on the regions six Urban Priority Areas.

10. Commercial Property Market • Occupier Enquiries remain strong, but expected to tail off • Funds reducing their exposure to property • Bank Finance terms tighter. • Business Rates • UNCERTAINTY

11. Residential Property Market • Mortgage Lending Conditions • City Centre ‘Buy to let investments’ • Family Housing • Key Workers • Migrant Populations • Owner Occupier Demand • HCA

12. Derby Opportunities • Cathedral Quarter • Riverside • Castleward • DRI • Science/Knowledge Park

13. Leicester Opportunities • St Georges – Cultural Quarter • Waterside • Abbey Meadows • Science Park • Station Gateway

14. Nottingham Opportunities • Extended Eastside • Bio City and Science Park – QMC Medipark • Waterside • Station Gateway • City Centre – Conversion of existing buildings

15. Leicester, St George’s – DMC

16. Nottingham Science Park

17. Derby – Bold Lane/Sadlergate • Architect designcompetition • Sympathetic design to repair streetscape • Biodiversity • Natural ventilation and light • High insulation and low energy • Real mixed use community

18. Derby – Bold Lane/Sadlergate • 45,000 sq ft flexible office space • 24 apartments • 6 retail/café bar/restaurant units • Car and cycle parking • Public space • New routes and connections • Planning application – September 2007 • Completion Spring 2009

19. “The Blueprint Solution” Be Innovative and seek opportunities to improve design quality and build distinctive places that reflect our SRI policy ‘Footprint’. Create places where people want to be. Seek solutions that will add value to the whole life of the project. Take a longer term view.

20. Peter Cochrane Senior Economic Adviser RBS Group Economics

21. Economic words of wisdom from a sage…….. “My friends, as I have discovered myself, there are no disasters, only opportunities……… ……. and, indeed, opportunities for fresh disasters”

22. Talking ourselves into recession? Early 90s Recession Credit Market Turbulence Dotcom Bubble & Sep 2001 Asian Financial Crisis Source: Factiva

23. Commercial Property has had a rough ride Source: IPD Monthly Index

24. Doom in the residential housing market…. Source: Halifax, Bank of England

25. Labour market still looks strong in the UK Source: Datastream

26. Households are rebuilding their balance sheets Source: Bank of England

27. A weaker pound helps exporters…. Source: Datastream

28. The Bank of England is cutting interest rates…. Source: Datastream

29. But inflation beginning to bite …. Source: Datastream

30. And cuts not impacting LIBOR much anyway Source: Datastream

31. Real Estate in the US lurches downwards Source: Datastream

32. Global Commodity prices show no sign of retreating Source: Datastream

33. UK Government not in a strong position Source: Datastream

34. Plenty of vacancies and some wage inflation keep consumers spending moderately Reinforces ongoing demand in the Labour Market A “virtuous circle” Retail property sees decent rental growth Overvaluations softened through increasing income while capital values stabilise Mortgage payments continue – only limited forced selling in the residential market Stabilising house prices – a soft landing Consumer Spending weakens as people worry about house prices and recession Tough retail environment triggers some job losses Self-fulfilling prophecy – “vicious circle” Commercial Property rental growth slumps, leading to double whammy on capital values Forced selling and repossessions as mortgages default House prices fall sharply following negative demand shock What for the UK? The Labour Market is key to the fortune of the UK Economy in 2008 GOOD UGLY

35. East Midlands faces more headwinds than most Source: RBS/NTC Economics

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