@BritishLandPLC

www.britishland.com

Investor and Analyst Tour 4 Kingdom Street, Paddington Central

21 June 2017

Introduction

Tim Roberts

Head of Offices

3

Agenda

Presentation • Our Campus approach – meeting customer needs – Tim Roberts • Delivering our Campus approach at Paddington Central

– Tim Haddon / Tim Downes • Flexible workspace – Introducing Storey – Joff Sharpe • Q&A

Tour of Paddington Central

Drinks on the Rooftop, 4 Kingdom Street

3.45pm

4.30pm

5.15pm

4

Responding to evolving customer needs

Digital Connectivity

Talent Retention and Wellbeing

Value for Money

Flexibility

Brand Alignment

Social Hub

Ease of Accessibility

Safety and Wellbeing

Collaboration

Diverse Retail and F&B Offering

Talent retention and flexibility are becoming increasingly important to occupiers

Employees are more discerning and demanding about the quality of the workplace

Sources: BL occupier/end user surveys 2016; Stoddart Review 2016; JLL Workspace Reworked 2016

5

Our campuses provide a differentiated offer

And respond to changing customer needs Campuses provide a unique platform

Scale • Range of accommodation

• Economies of scale to fund enhanced services

• Foster collaboration between businesses

Control of environment • Security and safety

• Active management of mix of uses

• Activate space outside the buildings to enliven

By delivering these benefits, we increase demand for our campuses, drive income diversity and deliver returns to our shareholders

Occupiers • High quality buildings and environments

attracting the best talent

• Flexible space on flexible terms

• High standard of digital infrastructure

Employees, visitors and residents • Excellent transport connectivity

• Broad retail, leisure and F&B offer

• Vibrant environments enlivened by events

Paddington Central

Tim Haddon Head of Campus

Tim Downes Development Director

7

Introducing Paddington Central

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• 1 million sq ft with opportunity to add 0.5 million sq ft • Diverse occupier mix

Financial 28%

TMT 26%

Prof Services & Corporate

20%

Natural Resources

9%

Introducing Paddington Central

Insurance 4%

F&B, retail & leisure

12%

9

Our investment at Paddington Central

• £775 million investment – £470m acquisition, July 2013

– £210m acquisition of 1 Sheldon Square, April 15

– £95m capital spend, primarily development of 4 Kingdom Street

• Rationale for investment – Re-weighting to West End

– Adding a third London campus

– High quality, long term income

– Development opportunities

– Excellent transport links including Crossrail

Potential to apply our expertise to grow rents and create value

Excellent transport connectivity

10

2.5

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Paddington Central BenchmarkEv

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Improving and enlivening the campus

£10m invested to

upgrade the campus

55,000 people attended events in the last

12 months

Vibrant environments enlivened by events

Campus experience index (out of 5)

70% of occupiers and visitors thought

that the area had changed for the

better

11

• Retail and leisure currently provides 12% of rent, with plans to double that

• Activating the canal-side; adding barges

• Retail pop ups and street markets

• Pergola outdoor dining – 850 covers

Broadening the mix of uses Broad retail, leisure and F&B offer

12

4 Kingdom Street • New 147,000 sq ft office over nine floors

• Balconies on each floor; roof terrace with basketball court

• Rationalised core with bigger reception, and more flexible floor plates

• BREEAM Excellent, WiredScore Platinum

• £85m development cost with an NDV of £150m – Completed on time and under budget

89% Office space

5% Ahead of pre-

referendum net effective ERVs

>40% Ahead of best

Paddington Central rent on acquisition in

2013

under offer

>20% IRR since

commitment

High quality buildings attracting the best talent High standard of digital infrastructure

13

0%

5%

10%

15%

20%

25%

Acquisition to Mar 15 Apr 15 to Mar 17 Acquisition to Mar 17

Tota

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Paddington Central IPD West End Offices British Land

£55

£60

£65

£70

£75

£80

£psf

Paddington Central top headline ERV Prime West End KF Office ERV (Re-Based)

Performance to date

Jul 2013 Acquisition Apr 2015 1 Sheldon Square acquisition

2014 2015 2016 2017 2018 2013

Apr 2017 4 Kingdom Street PC

- Public realm improvements - Development of 4 Kingdom Street

- Evaluation and planning - Letting 150,000 sq ft of vacant / grey space

437k sq ft of rent reviews

13% Annualised total return

since acquisition

14

• New development opportunity on site of current management suite

• 190 bedroom hotel totalling over 100,000 sq ft

• Ground floor enlivened with high quality retail and F&B

• Expect to submit planning in summer 2017 for £100m development

• In advanced negotiations with a premium operator for pre-let

Gateway Building

Premium hotel changing perceptions and improving arrival at the campus

15

Completing the campus and improving connections to more transport options

5 Kingdom Street

• Existing consent for 210,000 sq ft offices with plans to enhance by at least 30%

• Opens up route through to Royal Oak and Warwick Avenue, completing campus

• Targeting planning submission 2018

16

• Utilising redundant space on completion of Crossrail works

• Potential to add leisure venue or other uses – e.g. conference, medical

Opportunity to further diversify the mix of uses at the campus

The Box

Introducing Storey

Joff Sharpe

Head of Operations, responsible for Storey

18

• Existing occupier at Paddington Central taking flexible space at Broadgate for their digital team

• 25,000 sq ft at 2 Finsbury Avenue on two year term

• Full management service and fit out

• All-inclusive rate which reflects a premium for flexibility

Our first customer up and running… Flexible space on flexible terms

19

Our brand launched….

20

Space launching summer 2017…

Appold Studios, Broadgate 2 Finsbury Avenue , Broadgate

…a further 80,000 sq ft of opportunities identified across our campuses

International House, Ealing Broadway

• 7,000 sq ft over 4 floors • Liverpool Street 2 minutes

• 20,000 sq ft • Ealing Broadway

6 minutes • 54,000 sq ft, including Kingfisher 25,000 sq ft

• Liverpool Street 2 minutes

Conclusions

Tim Roberts

Head of Offices

22

Key messages

• Our approach is defined by what our customers want

• Our unique campus proposition is well positioned to meet the evolving needs of our customers

– Good progress has been made at Paddington Central with more development to come

– Flexible workspace broadens our offer to both existing and new customers

• Encouraging post-referendum occupational demand is an endorsement of our approach

Q&A