Real Estate:Venture CapitalFund Management

“Palmer Capital Partners is unique. Our business model has never beenreplicated elsewhere within the industry.Through the provision of financial support,expert guidance, advice and unrivalledexperience, we provide a clear path foreach of the companies we back to followin order to achieve their goals.”

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Introduction 02History and Philosophy 04Directors 06PCP Europe 09Venture Capital 10Fund Management 12Portfolio Work 17Key Facts 19PCP backed companies:Wrenbridge Land 20Frontier Estates 20Opus Land 21Danescroft Commercial Developments 21Thistle Land 22Cubex Land 22Cantium Developments 23Walbrook Land 23Principal Corporate Investments 24

Palmer Capital Partner’s (PCP’s) uniquestrategy is to identify and nurture theoutstanding start-up companies of todayto ensure that they become the leadingproperty entrepreneurs of tomorrow;providing them with access to seedcapital and project finance, and to theskills and expertise necessary forcontinued growth.

In the UK, PCP has backed andcontinues to support eight propertycompanies, all of which were start-ups or early-stage businesses when the initialinvestment was made. Across Europe,PCP is backing further propertycompanies and asset managers, with a view to building a comparable platformfrom which to leverage growth.

PCP has evolved to become one of the largest and most active commercialproperty groups, on average involved in over 100 schemes in the UK alone,with a gross completed value in excess of £3 billion.

As PCP has grown, its business model has matured to incorporate fundmanagement and corporate finance,both of which complement the continuedgrowth and success of the venturecapital business. Its venture capital andfund management divisions allow PCP to raise finance, invest in projects carriedout by the property companies andstructure and execute large-scaleproperty transactions.

This has made PCP one of the mostactive financiers of property projects in the UK. With the opening of itscontinental European offices in Munich,PCP is replicating this success inmainland Europe.

Introduction

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“We invest in people and companies which are goingto be leaders in their field. We are only interested inproducing best in class property companies.”

Palmer Capital Partners

Venture Capital

WrenbridgeFrontierOpus

DanescroftThistleCubex

CantiumWalbrook

Fund Management

Palmer Capital Development Fund

Palmer Capital Development Fund IIPalmer Noble Fund

Palmer Active Value FundPalmer Active Value Fund II

Frontier Key Fund

PastThe concept was simple - to invest in people investing in property. When PCP was created in 1992, it laid thefoundations for a business model that is still unique within the commercialproperty sector. Since its inception, thePCP business philosophy has been oneof creating wealth through helping othersto realise their ambitions.

PresentOver recent years, PCP has created a financial services business to work in synergy with its venture capital arm.The company manages a number of development and investment funds,investing primarily through its eightregional property companies, offeringboth institutional and private investors a unique diversity of investmentopportunities across managementteams, geographic regions andcommercial property sectors.

FutureHowever much PCP grows anddevelops, some things will never change: its focus on, and commitmentto, the companies it backs. Every year it examines and considers as many as 50 companies in order to identify the one that has the greatest potential tobecome the best in class. Once selected,PCP works alongside the company to forge a partnership of strength and cooperation that enables it to outperform its competitors and realise its founders’ ambitions.

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History and Philosophy

“PCP is all about people.Identifying and developing the right people - and backingthem for the long term.”

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Alex Price Chief Executive

Guy Barker Managing Director (Europe)

Ray Palmer Chairman and Founder

Christopher Digby-Bell Deputy Chairman

“PCP identifies and backs the bestprofessional teams in the real estateindustry. This model combined withthe focus and motivation it createsis in my opinion the future forproperty fund management.”

A Lawyer and Chartered Surveyor with over 20 years’ experience in pan-European property fundmanagement, Guy trained at KnightFrank in London before going on toestablish their German operations.After joining Hypo Vereinsbank AG(HVB) in Munich as Head of RealEstate Asset Management, hebecame Head of Fund Managementfor INVESCO’s European real estateoperation (IRE) and European ChiefExecutive Officer in 2005. He joinedPCP in 2007 to expand their businessacross Continental Europe.

“We believe that our business model is not only unique in the UK, butacross the world.”

Ray has specialised in development and investment for over 30 years, startinghis career at Lambert Smith & Partners,serving as its Chief Executive and guidingits sale to Abaco. He stayed on as theChief Executive and masterminded a series of acquisitions, culminating inthe creation of Lambert Smith Hampton,one of the UK’s top five agencies. In 1991 he led a management buy-outbefore resigning in 1992 to found PCP.

“Our job is to help other people make money and be the partner in their success; that has beenPCP’s underlying philosophy forover 15 years.”

Alex started his financial career withCredit Lyonnais Securities in 1997, then completed an MBA at LondonBusiness School before joining SabreHoldings’ European Corporate Financeteam. He joined PCP in 2003, initiallycharged with creating the fundmanagement business within PCP. In 2005 he was voted Property Week Young Property Personality of the Year. He was promoted to Chief Executive at the start of 2008.

Rupert SheldonDirector

“When PCP approached me, I feltthat they had something to offer thatno other business in the propertyarena could.”

A Chartered Surveyor, Rupert startedhis career at Gooch & Wagstaff ColliersCRE, focusing firstly on agency andthen commercial investment. In 1996 he joined Henderson GlobalInvestors where he initially co-managedtwo UK property funds on behalf ofGerman Institutional investors, prior tobeing appointed Fund Manager of the£250 million Henderson UK PropertyFund. He became a Henderson directorin 2003, before leaving in 2005 to joinPCP and oversee the Active Value Fundsand wider fund management activities.

“I was brought up to believe thatleadership is earned, it is not bestowed.”

As a former Managing Partner of Taylor Joynson Garrett andInternational Managing Partner of FrereCholmeley Bischoff, Christopher hasmore than 30 years’ experience as areal estate lawyer and has twice beenelected as a member of the RulingCouncil of the Law Society. In 1998 he left private practice in order to joinPCP where he oversees legal andtransactional services.

Directors

Established in Munich in October 2007,PCP’s first Continental European office represents the next stage in thecompany’s evolution. Bringing togetherthe strength of the existing businessmodel with the unrivalled pan-Europeaninvestment track record andunderstanding of an experienced team,its aim is to replicate the philosophyand success of the UK operations.

PCP’s initial focus has been on developinga property fund management arm forGerman institutional clients, servicingtheir requirements across the Continentthrough a series of partnerships fromParis to St. Petersburg.

As well as the fund management armPCP is rolling out its venture capitalbusiness model, carefully investing in start-up and early-stage propertybusinesses in each economic region.This combination of existing expertiseand nurtured entrepreneurial potentialprovides a uniquely informed access to the less transparent markets and willfurther mitigate specific risks for investorsin Germany, the UK and across Europeseeking cross-border opportunities and market penetration.

PCP’s first European funds arescheduled for launch in 2008 withinvestment due to commence before the end of the year. These funds willinclude a UK Core Plus fund for German institutional investors and a Pan European farmland fund.

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PCP Europe

Guy Barker

Ralph Andermann

Tina-Katherin Rauh

“Every local market in Continental Europe has its own characteristics. They all have differentproperty and corporate laws as well as a differentbusiness language and business culture. The onlyway to ensure success is to adopt an approachthat is tailored to each case and reflects theseindividual nuances.”

Venture Capital

As the leading property venture capitalcompany, PCP combines its financialsubstance, experience and intellectualcapital with the energy, enthusiasm andmarket presence of young propertycompanies. Working in partnership,PCP and the PCP backed companiesare able to identify development andinvestment opportunities, securefinance, undertake projects andconsistently deliver high returns for the companies.

The PCP model is to provide thesecompanies with start-up capital,management expertise and an activenon-executive role, in return for a 33.3%shareholding. PCP then provides an on-going range of services includingproperty, financial and legal expertise,assisting the structuring of deals,sourcing finance and helping withnegotiations and management issues.

The provision of strong non-executivemanagement also aids the filtering and de-risking of investment anddevelopment projects. The propertycompanies benefit from access toguidance and resources not usuallyavailable to a small business. The resultis that companies supported by PCPare able to grow more quickly, moreprofitably and more securely.

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“The venture capital side of PCP is about buildingbusinesses. We have the experience and theresources to help them achieve their potential.”

Having established a strong network ofproperty companies with access to dealflow and a track record for deliveringexceptional growth, PCP launched itsfirst commercial property fund in 2004and now has circa £750 million of assetsunder management.

PCP aims to manage a range of fundsfrom core plus to opportunistic investingin real estate in the UK, ContinentalEurope and across Asia. In 2008, PCP invested in Asia Capital Partners, a start-up fund management businessinvesting in China and India.

PCP’s fund management arm:- provides fund investors with access

to a portfolio of development or activelymanaged investments which haveregional, company and sectordiversification.

- provides the companies it backs withfunding for quality projects.

PCP funds benefit from regional spreadand local market penetration, throughinvesting in property opportunitiessourced by the PCP backed companies.Each fund has a geographic spread of projects, which covers a range ofcommercial property sectors, such asoffice, retail, industrial and leisure andmay also include mixed use schemes.

Combining the aggressiveentrepreneurship of its propertycompanies with solid fund managementskills, PCP offers a diverse spread ofprojects that seeks to reduce specificrisk while offering higher returns.

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Fund Management“An investor with PCP is accessing eightdifferent companies, all of whom areexperts in their local geographic areas.We are the route into the local markets,where local expertise will make the best returns.”

PCP funds include:

The Palmer Capital Development Fund and the Palmer CapitalDevelopment Fund II- Launched September 2004 and

October 2006- £400 million for UK commercial

property development projects The funds provide institutional investorswith access to a diversified range ofdevelopments project-managed bysome of the best regional propertycompanies in the UK, typically with anend value of £5 million to £30 million.

The Palmer Noble Fund - Circa £10 million raised from

a range of private investors- Closed June 2005Sponsored by Noble & Co, the fundinvests £1 million to £5 million incommercial property developmentopportunities across the UK, sourcedby PCP backed companies.

The Palmer Active Value Fund and the Palmer Active Value Fund II - Launched September 2005 and

March 2006 - £275 million investment in actively

managed property investmentopportunities

The funds allow institutional investorsto source properties via the companiesPCP backs, with asset managementbeing carried out at a local level on a highly incentivised basis.

The Frontier Key Fund is a joint venturebetween Frontier Estates (backed byPCP) and The Trustees of the ChubbCommon Investment Fund- £100 million fund- Opened in 2000 - Invests in schemes sourced and

managed by Frontier EstatesThese schemes tend to be mixed useor planning gain opportunities with anaverage end value of £20 million plus.

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*PCP operates its regulated activities through Palmer Capital Investors Limited, an FSA regulated company

Portfolio Work

Allied to its fund management arm, PCP has combined its property and financial expertise to allow it to both finance and carry out large scaledevelopments and development-basedportfolio sale and leasebacks.

PCP’s strong reputation has made it possible to structure joint venturearrangements with several leadinginstitutions, including Cargill, Schroders,GE Capital and the Royal Bank ofScotland. This enables PCP to take full advantage of corporate finance andfinancial advisory opportunities beforeother companies in the marketplace realise their potential.

This unrivalled ability was demonstratedwhen PCP, in partnership with DeutscheBank, undertook a leaseback deal withSomerfield. PCP acquired a portfolio of 105 petrol filling station sites fromTexaco and then leased them toSomerfield on 20-year fixed uplift leases.PCP backed companies were responsiblefor redeveloping the sites from theirexisting traditional kiosk format intolarger Somerfield convenience storeformats. The project has a completeddevelopment value of circa £200 million,and was one of the largest “sale andleaseback” development deals in the UK in recent years.

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“We want to remain a pro-active, fleet-of-foot business that canreact quickly to opportunities. That’s why the venture capitaland fund businesses are entirely complementary - they give us the right platforms in the right markets.”

8PCP backed property companies

6Funds managed by PCP Funds under management

£750mOver 100 deals ongoing

100

Ongoing development & investment programme

£3bnAnnual profit growth(GAER 2004-2007)

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Key Facts

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Founded in 1993 and run by PeterJarman, Jamie Hockaday and Ben Coles,Wrenbridge Land was the first companyto receive backing from PCP.

Today, the Cambridge based companyhas a portfolio of over 5 million sq. ft. ofcommercial and mixed-use schemes andspecialises in distribution, industrial, officeand business park development. Theseinclude several IAS/OAS award-winningprojects such as Cambourne BusinessPark (Cambridge), Stratton Business Park,(Biggleswade), the Big Berry DistributionPark (Droitwich) and Apex House(Birmingham).

“PCP’s input has helped us to achievesignificant recognition from the industry as the commercial developer of choice inthe Eastern Region with a track record ofprofessionalism, high-quality product andperformance,” says Peter Jarman of thecompany’s continued success.

Wrenbridge LandWhen Richard Smith and AndrewDuncan decided to sell their successfulsurveying business based in Birminghamand Leeds to become developers andinvestors themselves, they turned toPCP for financial support and guidance,as Smith recalls: “I had known Ray Palmerfor some time and had seen how PCPhad helped both Wrenbridge and Frontier.”

With PCP as a partner since the company’sformation in 1999, Opus Land hasbecome one of the largest and mostsuccessful development companies inthe West Midlands, Yorkshire and theNorth East. “We are passionate aboutthe built environment and are driven toprovide buildings that create a sense of place for the occupier, that really are a pleasure to work in,” says Smith of theOpus Land business philosophy.

Today, Opus Land boasts a portfolio of some 3.5 million sq. ft. of commercialdevelopment and investment property,with a value in excess of £550 million, an achievement that Smith puts down to a combination of energy and industryknowledge: “PCP’s experience is vital toour success, it helps us identify potentialobstacles before they become realproblems. However, it’s balanced by theentrepreneurial will and the ability to makedeals happen which you need if you’regoing to beat the competition,” he says.

Opus Land

Andrew Duncan

Richard SmithPeter Jarman

Ben Coles

Jamie Hockaday

Frontier currently has a commercialdevelopment programme of some 5 million sq. ft. with a completed value of circa £1bn. Current schemes include The Hub in Milton Keynes, which wasrecently opened by the Queen, a £400mnew City Centre Quarter comprising fourand three star hotels, 500 residentialapartments, 200,000 sq. ft. of top qualityoffices, a conference centre and 50,000sq. ft. of retail space.

Chartered Surveyors Adam Eldred andAndrew Crowther founded FrontierEstates in 1996. Based in Milton Keynes,Frontier specialises in the industrialwarehouse and office sectors as well as mixed use developments.

Already one of the UK’s most active and successful commercial propertycompanies, Frontier recently launchedFrontier Homes, a residentialdevelopment company focused onoptimising value from Frontier’s growingresidential portfolio.

Frontier Estates

Andrew Crowther

Adam Eldred

The depth of these abilities was aptlydemonstrated in 2006 when Danescroftacted as lead development manager on the Golden Gate portfolio, overseeing the transformation of 105 petrol fillingstations and continues today with the recent completion of the iQuarter, a 200,000 sq. ft. business park in Rugby.

Danescroft Commercial Developments

David Civil

Concentrating primarily on the Midlandsand south of England, DanescroftCommercial Developments has focusedon mixed-use, local/district centres andhealthcare schemes since it was foundedin 1996 by David Civil. Operating fromoffices in London, the company hasdisplayed considerable expertise inworking with existing landowners andoccupiers in order to maximise thedevelopment potential and the value oftheir property assets, whether throughoutright purchase, subject to planning,joint venture or profit-relatedmanagement fees.

“PCP’s investment in Danescroft is somuch more than financial. They haveinvested, and continue to invest the time,intellect, experience and reputationneeded for our company to succeed and continue to grow.” David Civil.

“The support provided by everyone at PCP has been invaluable. It has helped to realise our vision and turnFrontier Estates from an idea into therespected and dynamic business it is today.” Adam Eldred.

“For me, PCP provide three things: greyhair, gravitas and money. PCP are smart,intelligent guys and we tap into their skills as a business resource. They have simplyenabled us to make more deals and makethem quickly, mainly because they trust and understand us and we trust andunderstand them,” adds fellow director,Ben Coles.

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“The backing of PCP was the catalyst for realising our ambition of starting ourown business. Their financial supportand depth of experience gives us seriousfirepower.” Tim Stotesbury.

Walbrook Land

Established in 2006 by Chris Boulter withthe aim of building links with the regionalbusiness community and becoming oneof Southern England’s leading propertycompanies, Cantium Developmentsquickly built up a significant track record.With PCP’s support, the company wasable to make a string of early acquisitions,securing a development and activemanagement portfolio extending to over600,000 sq. ft. and with a capital value in excess of £150 million. What’s more, a substantial element of the company’scurrent work in progress is situatedwithin the rapidly expanding ThamesGateway, widely regarded within theindustry as being home to one of themost exciting social and commercialprojects in the world.

Cantium Developments

Chris Boulter

“I learned about PCP through friendswithin the industry and their input andsupport has given us a gravitas andrespect within the sector that we wouldotherwise have struggled to gain by anymeans other than through many years of successful trading.” Chris Boulter.

Founded with the ambition of creating a £250 million portfolio of short- tomedium-term development andinvestment stock, Walbrook Land wascreated in 2006 by Tim Stotesbury andJames Rawlings, two well-respectedfigures in the industry with a track recordof securing profitable commercialproperty deals within central London.Through a combination of the founders’local expertise and PCP’s support andguidance, the business has alreadybeaten serious competition in order to acquire three of London’s landmarkbuildings: 154-156 Fenchurch Street,London EC3, 2 Copthall Avenue, LondonEC2 and 10 Lloyds Avenue, London EC3.

James Rawlings

Tim Stotesbury

“The biggest challenge you face as astart-up company is trying to make multi-million pound property acquisitions,but with PCP’s wide-ranging experience,profile and reputation within the industry,Thistle Land has been able to overcomethis sizable obstacle and establish itselfas a leading business in its geographicregion and commercial property sector.”Eric Petrie.

Started by Eric Petrie in 2000, ThistleLand has wasted no time in cementingits reputation. Across the South East of England the company is regarded as an expert at managing the types ofcomplex schemes that require a range of property development expertise acrossall sectors. Petrie heard about PCPthrough a profile in Estates Gazette andthrough a combination of his 25 yearsproperty experience and PCP’s financialstrength and guidance, the company hascompleted, in a Joint Venture with FrontierEstates, two mixed-use schemes inWatford and Hatfield with a combinedvalue of £200m.

Thistle Land’s largest current venture is a 54 acre mixed use scheme inSwindon. Its Joint Venture partnersinclude RREEF, Gaming International and Uxbridge Properties.

Thistle Land

Eric Petrie

Founded in 2004 by Peter Walford, JoshRoberts and Gavin Bridge, Cubex Landis based in Bristol with a focus on projectsacross south Wales and the south westof England. Frustrated by working for the property arm of a utility firm, theyapproached PCP. “We knew we had theability within ourselves to succeed, all weneeded was the financial and confidenceboost that PCP provided and continuesto provide today,” says Gavin Bridge.

With PCP in their corner, Cubex hasalready built up a diverse portfolio ofdevelopment projects including a 23-acresite that is set to become Bath’s first out-of-town campus business park andthe £35 million Paragon grade A officedevelopment in Bristol, the acquisition ofwhich Bridge believes to be the company’sgreatest achievement to date.

Gavin Bridge

Josh Roberts

“As well as drive and determination, the key to success is to surroundyourself with people who can give youthe right advice, even if it is not what youwant to hear at the time. PCP’s directorshave always been excellent soundingboards for our company. They are reallyactive non-executives who encourage us never to curb our ambition and whoprovide the most sage-like businessinsight,” says Bridge.

Cubex Land

Peter Walford

Principal Corporate Investments

Palmer Capital Partners

Time & Life Building1 Bruton StreetMayfair, London W1J 6TL

T: +44 (0) 20 7409 5500F: +44 (0) 20 7409 5501www.palmercapital.co.uk

Palmer Capital Investments GmbH

Maximilianstrasse 35 a80539 Munich

T: +49 (0) 89 2421 8533F: +49 (0) 89 2421 8200www.palmercapital.eu

Designed and produced by Cooper Rose 020 7935 4084

Wrenbridge LandMill HouseMill CourtGreat ShelfordCambridgeCB22 5LD

T: +44 (0)1223 845 845F: +44 (0)1223 845 844www.wrenbridge.co.ukReg No: 2876074

Frontier EstatesSunningdale House37 Caldecotte Lake DriveCaldecotte Business ParkCaldecotte Milton KeynesMK7 8LF

T: +44 (0)1908 238 888F: +44 (0)1908 241 111www.frontier-estates.comReg No: 3160388

Frontier HomesSunningdale House37 Caldecotte Lake DriveCaldecotte Business ParkCaldecotte Milton KeynesMK7 8LF

T: +44 (0) 1908 238 888F: +44 (0) 908 241 111www.homesbyfrontier.comReg No: 4738034

Opus Land49 High LandHenley-in-ArdenSolihullWest MidlandsB95 5AA

T: +44 (0)1564 794 008F: +44 (0)1564 794 009www.opusland.co.ukReg No: 3404662

35 Brook StreetIlkeyLS29 8AG

T: +44 (0)1943 850 013F: +44 (0)1943 850 029

Danescroft CommercialDevelopmentsTime & Life Building1 Bruton StreetLondonW1J 6TL

T: +44 (0)20 7409 5522F: +44 (0)20 7409 5501www.danescroft.co.ukReg No: 3734319

Thistle LandTime & Life Building1 Bruton StreetLondon W1J 6TL

T: +44 (0)20 7409 5525F: +44 (0)20 7409 5501Reg No: 4040751

Cubex LandThe Coach House26 Oakfield RoadCliftonBristolBS8 2AT

T: +44 (0)117 973 4000F: +44 (0)117 973 4020www.cubex-land.comReg No: 5179869

Cantium Developments Cantium Lodge23 Farncombe Road WorthingWest SussexBN11 2AY

T: +44 (0)1903 218 506F: +44 (0)1903 212 471E: chris.boulter@cantium.co.ukReg No: 5737525

Walbrook LandTime & Life Building1 Bruton StreetLondon W1J 6TL

T: +44 (0)207 409 5529F: +44 (0)207 409 5501www.walbrookland.co.ukReg No: 5906531

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Palmer Capital PartnersTime & Life Building1 Bruton StreetMayfair, London W1J 6TL

T: +44 (0) 20 7409 5500F: +44 (0) 20 7409 5501

www.palmercapital.co.uk

Palmer Capital Investments GmbHMaximilianstrasse 35 a80539 Munich

T: +49 (0) 89 2421 8533F: +49 (0) 89 2421 8200

www.palmercapital.eu