The story so far

Regent Street, St James’s and beyond

The Crown Estate

Our Origins

• Since 1760, the annual surplus generated by The Crown Estate has been paid to the Treasury for the benefit of the nation

• Core values - commercialism, integrity and stewardship

• We have two high level financial objectives – to meet pre-agreed revenue targets with the Treasury and to outperform our IPD benchmark

A diverse portfolio

• £8 billion actively managed property portfolio

• £2 billion of revenue delivered to the Treasury over the past 10 years

• £240 million paid to the Treasury in 2011/12

• Net revenue surplus (profit) growth of 40% over the past 10 years

Energy and Infrastructure portfolio

• Valued at over £726 million

• Generates nearly £55.6 million in revenue each year

• Includes virtually entire seabed out to 12 nautical miles

• By 2020 a significant proportion of the UK’s electricity resources are expected to come from marine renewable energy resources on The Crown Estate seabed

Windsor Estate • £7.3 million revenue in 2011/12

• 6,300 hectares

• 1.5 million visitors each year

• Award winning Savill Building

• Home to the world famous racecourses at Ascot

• The majority of the Great Park is designated as a site of special scientific interest (SSSI)

Urban portfolio • Valued at over £5.4 billion

• Annual revenue of over £225 million

• 20 million sq ft,of office, retail, residential, and industrial space throughout the UK

• Three principal portfolios: Regent Street, St James’s and Regional

• 100% ownership of Regent Street’s freehold and managed on behalf of the Regent Street partnership

• Ownership of circa 50% of freehold property in St James’s

• A Regional portfolio including over £1 billion of prime retail assets

Rural and Coastal portfolio

• Valued at over £1.1 billion

• Generates an annual revenue of over £25.9 million

• Comprises 360, 000 acres of rural land and 55% of the foreshore

• Assets include agricultural, mineral, forestry, ports and harbours

• Provides strategic land opportunities

Investment strategy Principal themes

Core sectors

• Central London: centred on Regent Street and St James’s – development a key driver

• Regional portfolio - dominant retail focus

• Energy and Infrastructure portfolio – driven by offshore renewable activities

• Rural and Coastal portfolio – capital appreciation/realisation

Three key themes

• Rebalance the portfolio to focus on our key sectors

• Provide adequate working capital for the business to reinvest in the portfolio

• Continue to develop our business model towards a modern asset management style

We have entered into a number of major

partnerships in recent years. These include:

• Norges Bank Investment Management (NBIM) - 25% stake in Regent Street

• The Healthcare of Ontario Pension Plan (HOOPP) - 50/50 partnership to develop the St James’s Gateway project

• Land Securities - 50/50 partnerships covering shopping centres in Oxford and Exeter

• British Land - 50/50 partnership to own and manage a portfolio of major retail parks

• Aviva - 50/50 partnership to own and manage Crown Point Retail Park, Leeds

MAJOR PARTNERSHIPS

Core Central London

• 9 million sq ft

• Valued at £4 billion

• Regent Street and St James’s

14 retail parks across the UK

• Nearly 3 million sq ft

• Valued at £1 billion

Three shopping centres

• 900,000 sq ft

• Valued at £247 million

Industrial and regional offices

• 2.8 million sq ft

• Valued at £295 million

• Regent Street Partnership - 75% The Crown Estate, 25% Norges Bank Investment Management (NBIM)

• Managed by The Crown Estate

• Revenue of £85 million and estimated

• Rental value of £125 million

• 1.5 million sq ft of prime retail and restaurant space

• 1.8 million sq ft of offices

• 700,000 sq ft of other uses

Core London holdings – Regent Street

• Circa 50% of the freehold property in St James’s

• Valued at £1.1 billion

• Revenue of £43 million

• 500,000 sq ft of prime retail and restaurant space

• 3.2 million sq ft of offices

• St James’s Gateway development - 50/50 Partnership with Healthcare of Ontario Pension Plan (HOOPP)

Core London holdings – St James’s

To safely deliver viable and sustainable

development projects to enhance the total

return within each portfolio, in line with The

Crown Estate Investment Strategy.

To become a ‘Centre of Excellence’ within

The Crown Estate for all development

activities from feasibility through planning,

delivery and on-going maintenance.

The Crown Estate – Development

Quadrant 3

• Direct development by The Crown Estate

• Mixed use building of 300,000 sq ft

• £175m Construction Cost - Construction Management with Not to Exceed Price (NTEP)

• Challenging location

• Innovative servicing solution - Central Energy Centre

• Delivered 4 months early and within budget

Quadrant 3

• Integrated high quality architecture

• Maintained control over delivery of the public realm

• Removal of servicing traffic, cars and taxi’s

• More Pedestrian friendly spaces

• Activated facades at ground floor

• Servicing tunnel between Q3 and Q1

• Off street loading facility

• 230 bike bays & first class shower/changing facilities

Quadrant 3 – Place Making

• Partnership with the Healthcare of Ontario Pension Plan (50/50)

• Mixed use building of 100,000 sq ft

• Construction Cost – £50m

• Construction Management with NTEP

• Challenging location – delivery logistics

• Olympic Route – servicing restrictions

• Insolvency challenges

St James’s Gateway & 27 Regent

St James’s Gateway & 27 Regent

St James’s Gateway & 27 Regent

Blocks W4 and W5 (South), Regent Street • Partnership with Norges

Bank (75/25)

• 235,000 sq ft mixed use scheme

• £100m Construction Cost

• Fixed Price – Design & Build

• 2 separate buildings – phased delivery

• Strategic approach – planning and delivery

• Challenging location – logistics

• Ground Conditions – listed vaults

• Offices over 6 levels - 100,000 sq ft

• Retail over 3 levels - 40,000 sq ft

• Residential – offsite provision agreed with WCC

• Start on site – Q4 2011

• Practical Completion – Q1 2014

• Construction Cost of £50m

Block W4, Regent Street

New Burlington Street

Block W5 (South), Regent Street

• Offices over 6 levels - 75,000 sq ft

• Retail over 3 levels - 30,000 sq ft

• Residential – offsite provision agreed with WCC

• Start on site – Q1 2013

• Practical Completion – Q4 2015

• Construction Cost of £50m

Regent Street Block • 180,000 sq ft offices • 40,000 sq ft retail • 7 retail units • 7 office floors – 20,000 sq ft to 25,000 sq ft

Haymarket Block • 80,000 sq ft offices • 15,000 sq ft retail/restaurants • 5 retail units • 7 office floors – 7,000 sq ft to 10,000 sq ft

St James’s Market

St James’s Market – a new place for London

The bits between the buildings

The Crown Estate has delivered eight major public realm improvements, including:- • The internationally acclaimed

Oxford Circus diagonal crossing

• The pedestrianisation of Swallow Street, New Burlington Place, Heddon Street and Glasshouse Street

• The reinstatement of two way traffic flows around Piccadilly and St James’s

• Further five major schemes identified