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WHAT’S HAPPENING IN SOUTHALLHEATHROW SKYLINE PROJECT UPDATEFUTURE OUTLOOK 2020

newsletterISSUE 01 | AUTUMN / WINTER 2019 / 20

Five Pillars Capital | Newsletter | 01

Welcome to Five Pillars Capital

Dear Investors,

Welcome to Five Pillars Capitals first winter newsletter. The purpose of the newsletter is to keep in close contact with our valued investors and partners, and to give you an in-depth understanding of the exciting projects Five Pillars Capital are working on and provide critical information on the schemes.

Firstly, I would like to thank you for the trust that you have placed investing in Five Pillars Capital, I speak for myself and the rest of the team, when I say that we are truly overwhelmed. In the current market there have been many uncertainties due to Brexit, and as such your investment into the Heathrow Skyline project is appreciated, as only with the right investors Five Pillars Capital can grow into a dominant UK property developer.

There are many factors why we chose Southall, the first being when the government released the Crossrail project as the largest civil engineering project in the world. I observed the project and monitored the price increase in property. In some cases, prices rose circa 150% and they are still growing. I firmly believe that any properties near Crossrail can be considered protected in this economic time of uncertainty.

I am proud to be joined on this journey by my co-Director Mr Davinder Sehra, a former quantity surveyor for Mansell Construction PLC whom for the past several years has worked very successfully in the private equity arena raising significant sums from the UK and overseas market.

This is an exciting time and we are delighted to share this with you, via your investment. Five Pillars Capital has been founded on the five principles of truth, honesty, integrity, honour and respect. These pillars are also routed deep in the heart of Five Pillars Capital, and are the foundations that will give you the most secure returns in the property industry.

We welcome you to Five Pillars Capital and are truly honoured that you are a part of our story. As your investment grows so will our relationship.

Thank you

Jag Sekhon

CEO

Five Pillars Capital

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Crossrail SouthallEurope’s largest infrastructure project is well underway to increase the capacity of London’s transport system by 10% while triggering average house prices to rise by an average of £60,000 by 2020.

On completion, over 200 million passengers are expected to travel using Crossrail each year, leading to the creation of central hubs such as Paddington and Farringdon, where extensive public realm programmes are already being prepared and implemented.

The completion of Crossrail will have a twofold effect on the housing market: the rise of broader regeneration, coupled with significantly reducing commuters travel times to and from the capital every day. For today’s 750,000 existing commuters, journey times into central London will be reduced by an average of 15 minutes, equivalent to 25% of the current average commute.

Jennet Siebrits, Head of Residential Research at CBRE, comments: “The findings from this report demonstrate the inextricable link between transport connections and house prices. Since the Crossrail programme gained royal assent in 2008, house prices around affected stations have risen by 20% in excess of the London average.

“CBRE has identified that a 10% reduction in commuting time will increase a property’s value by up to 6%.

“For those travelling into London, travel times are forecast to reduce by an average of 15 minutes. However, from outer stations, including Maidenhead, Taplow and Burnham, the journey times into Canary Wharf will be significantly reduced by up to 40 minutes.

“The impact is most significant in those western areas such as Southall, Ealing and Hanwell, which will eventually see journey times cut by between 20 and 30 minutes. In contrast, the reduction in journey times for those areas in the east is more modest, with an average reduction closer to six minutes. “Those locations set to benefit the most are Ealing Broadway, Farringdon and Paddington, all of which will experience value uplift in excess of 15% over the next five years, or even as much as 27% in the case of Farringdon.”

Elizabeth Line Services From SouthallTfL Rail provides stopping services from Paddington to Heathrow Airport (Terminals 2&3 and Terminal 4 stations) via Hayes & Harlington. Services from Paddington to Heathrow run every 30 minutes, with a journey time of about 35 minutes. Free shuttle services run from Terminals 2&3 to Terminal 5 with a journey time of 6 minutes. When the full route opens, up to ten Elizabeth line services an hour in each direction will serve Southall, making it quicker and easier to get to destinations across London, South Bucks and Berkshire Mark Collins, Chairman at CBRE Residential, comments: “CBRE has forecast that house prices will rise a further 13%, over and above underlying house price growth, by the time Crossrail becomes operational. This ground-breaking investment has subsequently helped to encourage the much-needed delivery of large scale residential development in locations benefiting from the Crossrail line.”

“Crossrail has already had a huge economic impact right across the region with around 10,000 people on over 40 construction sites directly employed. Long-term, it will help stimulate economic growth across London and the South East, through

What’s happening in Southall?

regeneration programmes at many of the stations, and through the continued improvements to capacity and connectivity across the region.” Ian Lindsay, Land and Property Director at Crossrail, comments: “Crossrail is a once in a generation opportunity to deliver transformational change and act as a catalyst for regeneration. Not only are we cutting travel times and building new stations, but we are also developing three million square feet of commercial and residential space above our stations and improving the surrounding areas. This is an addition to the millions of square feet of development happening in close proximity to the Crossrail route. Additional transport capacity is encouraging the property sector to deliver much needed new residential and commercial space for London. As CBRE’s research rightly shows, Crossrail will be a game-changer for London.”

Berkeley Homes DevelopmentSouthall in the west of the borough is another regeneration hotspot, which Berkeley is also leading. Its redevelopment of Southall Waterside will create a new community in the area. The scheme will deliver 3,500 new homes along with 500,000 sq ft of commercial space, a new primary school, health centre, extensive parkland and leisure space. The development will be completed in several phases spanning the next 25 years.

Ealing Borough Statistics

Current Population

351,000

Population Growth8%

Employment75.3%

Average House Price£489,106

House Price GrowthLast Five Years52%

House Price GrowthLast Five Years3%

Five Year Forecast17%

Average Value of New Build (£psf)£809

Units Under Construction2,410

Five Pillars Capital // Newsletter // 03

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Heathrow Skyline Project Update

Dear Investors,

Firstly ,may I start by thanking you for investing into Five Pillars Capital, as a company we have been overwhelmed by the success of the loan note investment especially in these times of economic uncertainty. We have now incorporated further security measure to give our investors capital more protection with an underlying focus to return investors capital plus interest as soon as possible.

In October 2019 Five Pillars Capital obtained Section 21 of FSMA 2000 approval, the purpose of this was to give investors confidence that an FCA regulated authority has verified the investment documentation and all statements within. The due diligence was a very rigorous process and Five Pillars Capital was delighted to have obtained this certification.

Five Pillars Capital is in the process of acquiring £1.5m of shares in the property from the vendors; these shares will be owned by Five Pillars Capital this gives our investors further security over their debenture agreement. Our investors have primary protection by way of a debenture over the company and its assets which includes the shares that are being purchased. To date, the company has exceeded its inward investment target with a large pipeline to be settled within the next 4-6 weeks.

We can report the planning process is moving in accordance with the strategic plan, the pre-application was successfully submitted at the end of October. There was a slight delay to the submissions, as amendments were made to the application on the consultation of

WSP Indigo. Once the application is submitted a further meeting can take up to 8 weeks, however due to an opening with the local authority this meeting happened the first week of December. This was attended by the project consultants and was a very successful, as all policy points can be satisfied with small variations to the design. Full details of the conference will be sent to investors in Juttla Architects end of year report.

We are also pleased to have received an offer subject to planning for the site; the proposal is a primary offer well in excess of our expectations. Five Pillars has acknowledged the offer however, we will continue to analyse the markets conditions until we have obtained outline planning permission. We will, at that point, engage with potential exits for the site. We believe there is an opportunity in selling the site to a PRS housebuilder, or should the market strengthen and there are higher returns on building out the project, then the company will begin construction. All investors shall be consulted prior to any decision the company makes.

We wish all our investors and very Happy Christmas and Prosperous New Year.

Yours Gratefully

Davinder SehraChief Investment Officer

Future Outlook 2020

Five Pillars Capital has seen an ever-increasing amount of project deal flow, with our primary strength being the off-market acquisition of property under market value. Five Pillars will be purchasing projects with full planning permission in place; we have identified two schemes and are in negotiations with the vendors. We believe in this market to ensure the company’s strength; it is important to have a selection of projects which range from planning gains, refurbishments to new builds.

Five Pillars Capital will be launching the Southall City scheme in Q2 2020, A mixed-use residential and commercial Southall City development sits on a well-connected site, by road, rail and air, and is located in one of London’s prime opportunity areas,

the site is located in the London Borough of Ealing, a 10-minute walk from Southall railway station. It sits within the Southall Opportunity Area; a planning framework programme run between GLA and Ealing Council that sets out an approach to regeneration, spanning twenty years.

The project will accommodate 380 aspirational, one and two-bedroom apartments of varying sizes, the scheme will consist of commercial space – consisting of offices, retail units, café, restaurant, bar and gymnasium. Residents will have access to secure, parking and have exclusive use of landscaped communal garden areas.

Five Pillars Capitals Investment & Equities team will be looking at more innovative funding solutions; this will entail working closely with family offices, banks and distributing our investments into foreign markets, angel investor networks and sophisticated and high net worth investor groups.

Five Pillars Capital is very excited in delivering its 10-year master plan, which benefits investors and communities.

Five Pillars is growing from strength to strength, with the key strength being acquisition, the company is focussed on delivering full planning permission to Heathrow Skyline in 2020.

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Five Pillars Capital Limited5 Chancery Lane

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T: +44(0)207 406 7503E: info@fivepillarscapital.co.uk

www.fivepillarscapital.co.uk

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