Halladale Presentation

David Lockhart – Chief ExecutiveKen Lindsay – Property Director

March 2007

2

“the creation of value through active and entrepreneurial management, risk controlled development and co-investment in commercial property assets”

3

Business Model

35883Rynda

£m£m

30Nelson

945

68Directly owned

245CReAMCo-investment fund management

8550Co-investment35Directly owned

Development502434Co-investment

Asset management

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)

4,1163,922

2,609

1,691

6,289

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

30th April 2003 30th April 2004 30th April 2005 30th April 2006 31st October2006

Dividend per share (pence)

1.75

2.90

2.10

1.60

3.80

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

30th April 2003 30th April 2004 30th April 2005 30th April 2006 31st October2006

FinalInterim

6

Track Record

Basic Earnings per share (pence)

5.82

10.429.99

7.21

10.39

0

2

4

6

8

10

12

30th April 2003 30th April 2004 30th April 2005 30th April 2006 31st October 2006

Total Transactions (£m)

232

347

155120

455

050

100150200250300350400450500

30th April 2003 30th April 2004 30th April 2005 30th April 2006 31st October2006

FinalInterim

7

Co-investment portfolio (£m)

712

388

162

110

529

0

100

200

300

400

500

600

700

800

30th April 2003 30th April 2004 30th April 2005 30th April 2006 31st October2006

Track Record

Total Portfolio (£m)

818

450

205145

632

0

100

200

300

400

500

600

700

800

900

30th April 2003 30th April 2004 30th April 2005 30th April 2006 31st October2006

FinalInterim

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 Executiveis 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 Financeis a Chartered Surveyor with over 15 years experience in property finance

11

Senior Property Team

Allan Lockhart(Retail Director)

Alistair McGill(Business Space Director)

David Petrie(Business Space Director)

Bryan Sherriff(Development Director)

Alison Robertson(Fund ManagementDirector)

John McLaughlin(Finford)

Matthew Rhodes(ProjectManager)

Ewan Cameron(Asset Manager)

Douglas Harper(ProjectManager)

Ewan Black(EuropeanAsset Manger)

MikeWimble(Retail Asset Manager)

GrahamMcPhail(Business SpaceAsset 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

• 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

On Balance Sheet

15

Tudor Street, London EC4

16

Shaftesbury House, Glasgow

17

Cochrane Square, Glasgow

18

William Hunters Way, Brentwood

19

Key Projects

• 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

In Co-investments

20

Gracechurch Street, London EC3

21

Hammersmith Grove, W14

22

Queens Square, West Bromwich

23

Westway Retail Park, Cumbernauld

24

UK Property Portfolio Details

862Total UK Portfolio (£m)

63Number of Properties

2,450,0001,150,000

118,000

Total square footageRetailOfficeIndustrial

42Total annual rent roll (£m)

930Number of Tenants

25

Sector Analysis by Value

March 07

In Town Retail9%

Out of Town Retail

6%

Office41%

Industrial1%

Shopping Centre

43%

In Town Retail11%

Out of Town Retail

8%

Office26%

Industrial1%

Shopping Centre

54%

April 06

26

North10%

North West1%

London20%

Scotland11%

South East32%

South West7%

West Midlands8%

Yorkshire & Humberside

6%

East Anglia4%

East Midlands

1%North9%

North West1%

London29%

Scotland8%

South East30%

South West9%

West Midlands6%

Yorkshire & Humberside

4%East Anglia

3%East

Midlands1%

Geographical Analysis by Value

March 07 April 06

27

Key Properties under Management

1

23

15

2 3 410

5678

9

16

17

18

22

24

25

11

2612

14

19

20

Offices1 Shaftesbury House, Glasgow2 The Strand, London WC23 Becket House, Cheapside, London EC24 Moorgate, London EC25 Chubb Tower, Sunbury-on-Thames6 Aldermary House, London EC47 Tudor Street, London EC48 Hammersmith, London W149 Fountain House, Edinburgh10 Hammersmith Grove, London W1411 Portfolio of 5 London offices12 Gracechurch Street, London EC313 Carolyn and Philip House, Croydon

Office/Industrial14 70 acre site in Aberdeen

Retail15 Westway Retail Park, Cumbernauld16 South Street, Newport, Isle of Wight17 Dalgety Bay, Fife18 St Mary’s Gate, Sheffield19 Broadwalk, Harlow20 Billingham Town Centre21 Crown Glass, Nailsea

Retail/Residential22 Cochrane Square, Glasgow

Shopping Centres23 Queens Square, West Bromwich24 Myrtle Walk, Bingley25 Queens Street, Darlington26 Langney Shopping Centre, Eastbourne

13

21

28

Next Steps

• Transaction closing 30th 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

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Halladale Group plcPrince Frederick House37 Maddox StreetLondon W1S 2PPTelephone 0845 070 4633Facsimile 020 7659 9775

39 George StreetEdinburghEH2 2HNTelephone 0845 070 4633Facsimile 0131 225 8373

93 West George StreetGlasgowG2 1PBTelephone 0845 070 4633Facsimile 0141 204 4655

Email: all@halladale.co.ukWeb: www.halladale.co.uk