St George’s

CONTENTS:

1. Key Points, Features and Introduction2 & 3. Prosperity’s Background4. The Scheme5. Location6. Education7. Culture and Lifestyle8. The Residential Market9. Anticipated Sale Values

10. Current Supply and Due Supply11. Property Management and

Lease Back Option12. Deposit Payment Plan13. Typical Floor Plan

APPENDIX:

Site PlanFloor PlansParking Schedule and SpecificationsPricing Schedule

Post at Birmingham Airport / Front cover image Birmingham Town Hall

KEY POINTS:

• Built in capital equity from point of purchase - £200 per square foot values being over 20% below current market prices

• High Yielding at an average of 8%+ gross• Positive cash flow with coverage of a repayment mortgage plus income• Mix of one and two bedroom luxury apartments within a courtyard development – produced to a high quality specification• Centrally located and within minutes from the city’s main business,

shopping and leisure areas• Excellent transport links, within walking distance to a mainline railway station

and one mile from motorway access. Birmingham International 1.20 minutes from London Euston

• Fully managed hands off investment with the benefits of direct ownership • Prices from £107,200

Introduction

Welcome to Prosperity. Thank you for joining us to find out about our latest, exciting UK property investment opportunity. Located in Birmingham, in the heart of England, we are delighted to present the St George’s development. Known as Britain’s second city, Birmingham is a forward thinking, vibrant and dynamic city. Sitting right in the centre of a highly accessible transport network, Birmingham’s enviable location makes it ahighly attractive destination option for companies, students and business professionals alike.

St George’s is perfectly located in one of Birmingham’s most sought after post codes, making it a prime investment hotspot. Offering high rental yields right from point of completion, this stunning development offers global investors the opportunity to acquire a hands off investment purchasing at a low point in the current market cycle, resulting in an income-producing asset with built in equity.

An exciting prospect for our Prosperity investors, we are certain…

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FEATURES:

• An income producing asset for life• Over seven years of fixed cost investment

in the UK property market • 30 month deposit terms• 5 year lease back option• Full property management with a specific

account manager, offering an allocated, one point of contact for overseas clients

Colmore Gate building alongside St Philips Cathedral

"I required lots of detailed information in order to make my decision - all of which I received in a

concise and accurate manner. Completion went verysmoothly as did letting management. I have recommended their services to other sporting

professionals within my organisation."Cyrille Regis, MBE

Prosperity

For over twenty years, Prosperity has worked at the heart of the UK property industry. Strong industry knowledge, coupled with an unrivalled

contact base of industry and legal professionals have served us well in securing high yielding investments in the residential, commercial and

overseas property markets. Providing specially selected, fully packaged UK property investments sourced at below market value, our tried,

tested and perfected buying criteria ensures strong capital appreciation and high rental yields for our clients.

Recognising the housing opportunities prevalent in the early nineties, Prosperity capitalised on the increasing availability of regulated tenancy

properties that came available to the open market, as well as a relatively undiscovered buy-to-let market.

Keen to capitalise on investment opportunities on a global scale, Prosperity ventured further afield, into the Greek islands of Cyprus

and Kephalonia. Selling over 2,000 properties across specially selected sites, Prosperity’s foresight in capitalising on freshly emerging EU land

resulted in a performance grossly outperforming the market, and securing high- profit returns for its investors.

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" I was impressed by Prosperity's straight talking approach to my investment, and the level of input

received from their side - it truly is a hands-off investment which is exactly what I wanted."

David Yelloly CEO Montpelier Europe

Birmingham Town Hall

Brindley Place Old Clock Tower, Jewellery Quarter

Big Wheel, Birmingham City Centre

City Centre

Birmingham Skyline

International Convention Centre

City Centre Birmingham

Canal Apartments Piccadilly ArcadeCity Centre Birmingham

" Prosperity provided me with a whole host of information on the UK property market at the time of my

purchase and I was convinced it would meet my financial objectives. I would certainly recommend Prosperity to other people looking to incorporate

UK property into their financial portfolios."Mike Burnage,

Chairman Academy of Chief Executives

"I really enjoyed working with Prosperity. From a timeinvestment point of view, the fact that all costs

and letting management are fully organised was a major attraction to me. I have bought numerous properties

with Prosperity and shall continue to do so."Simon Browne

Director Reckitt Benckister Europe

Facilitating the rapid growth of client referrals from IFA firms and private clients across the UK, our business continued to grow.

With a team of professionals managing over 400 residential properties with a combined value of £64 million for clients nationwide,

Prosperity made the natural and timely progression into fund asset management.

Throughout the turbulent markets of recent years, Prosperity has maintained its position as one of the UK’s most reputable and successful

investment specialists – indicative of a company armed with the knowledge, resource and foresight to recognise market shifts ahead of the game.

Building on an international network of client referrals, our business has grown entirely on its own merit, leaving us to concentrate on our

speciality – delivering sound property investments that meet entirely, our clients’ objectives. Our methods of sourcing prime stock are based on

rigorous criteria, ensuring the key measures are met- minimal costs for maximum return. Location, transport links, as well as first rate

commercial and educational facilities are just a few of the crucial requirements for all Prosperity acquisitions.

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St Paul’s Place Birmingham Cathedral

IKON Gallery, Brindley Place

The Bull Ring

The Bull Ring Shopping Centre

Centenary Square

China Town District

Botanical Gardens

Birmingham Canals

The Mailbox Victoria Square

The Scheme

This self-contained, modern development by Chord-Deeley Developments, comprises of 110 units - 62 one bedroom and 48 two-bedroom apartments across three storeys, set within a courtyard.

Once inside, you can enjoy the usual high specification and quality finishes used as standard by Chord-Deeley, such as oversized windows for maximum naturallight, brushed steel ironmongery, hard wood veneer doors and stainless steel sockets throughout.

These high grade finishes, combined with custom built kitchens with integral appliances and stylish bathroom designs, come together to create a home offering luxury with comfort.

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A Europe’s largest Assay OfficeB St George’s Phase 3C St George’s Phase 2D St George’s Phase 1E Carparking

Location

St George’s based on Carver Street is the finest example of city living, situated in Birmingham’s stylish Jewellery Quarter. A modern, sophisticated development, St George’s is ideally located to attract the rapidly rising number of professionals, young couples, and students who are choosing Birmingham to live and work.

Birmingham is a city is firmly focused on the future. Flourishing from a wealth of investment and regeneration over the past 20 years, there’s plenty more to come. Work is already underway on the £600 million redevelopment of its city centre train station, transforming it into a 21st century transport hub. With the proposed construction of the HS2 national high speed rail network, commuting to London will be made even more quick and easy, at just 39 minutes.

Right in the centre of England, everything is accessible in Birmingham. Proud of its distinctive heritage, yet energised by the youngest population in Europe, Birmingham’s transformation into a cosmopolitan, accessible and welcoming city has ensured that rental demand in the city continues to outweigh supply.

Located in the Jewellery quarter, one of Birmingham’s most sought after areas, St George’s combines modern styling with a high specification.

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Education

Birmingham’s three universities and two university colleges have earned the city an international reputation. With over 60,000 young academics living and working in the area, Birmingham is the largest centre of higher education in the UK, outside of London. With the vibrant social and cultural scenes growing at the same pace, Birmingham's excellent transport links and central location makes it an attractive proposition for overseas students. This, combined with an extensive subject and course offering, attracts individuals of every culture and origin.

The University of Birmingham has long-standing links with the People's Republic of China and is one of the most popular British universities for both Chinese men and women, choosing to study overseas.

International students are extremely well catered for in the city, with a multitude of organisations providing a range of advice and support. These include English language courses, cultural information, as well as advice and guidance on working in the UK.

Enjoying world class cultural, social and sporting facilities as well as a prime central location, it’s no surprise that more international students than ever are choosing Britain's second city, to live, work and study.

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Beethoven statue in Birmingham University facade

University of Birmingham campus

Culture and Lifestyle

Described as England's 'most vibrant city', Birmingham boasts a wealth of cultural diversity. A world-class arts scene, shops by the thousand, lively nightlife and a strong sporting heritage are just a few of the attractions for the 32 million people that visit the city each year.

The cuisines of 27 different countries combine to produce Birmingham’s thriving food scene. Over 200 city centre restaurants offer the best culinary experience to the most refined of palates. No wonder so many visitors end up staying for good!

Home to two premiership football teams, a world-class Cricket Ground, and the internationally renowned Belfry Golf Club – the region covers all bases for sporting enthusiasts and athletes alike.

Housing the region's famous Jewellery Quarter, this area has all the vital ingredients for cosmopolitan, city centre living. Slick apartments, street cafes and old leafy Georgian squares come together, making it one of the most popular pockets of the city in which to reside.

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St Paul’s Pub

The Old Joint Stock pub

Jewellery Quarter

Selfridges and St Martins Church

The Residential Market

Q3 2011Trying to cut through the mixed messages about the market is important according to The Nationwide, whose report covers both lending valuations and land registry sales. House prices are now up 4.7% since the start of 2011 as a national average, but property transactions have slipped to their lowest level in two years. The market is currently building a pent up demand for property due to undersupply which is currently unable to be funded by want to be owners.

The substantial shift towards private renting is increasing the importance of rental growth across the housing market.

The LSL Property Services Group reports that in June rental inflation had reached 4.4% across the UK and 6.9% in London. Increased demands on the private rented sector, from new and existing households, reflect the changing nature of the housing cycle. The big question is who will supply the stock to meet this demand? Figures from the Council of Mortgage Lenders (CML) show that the increase in the number of buy to let (BTL) mortgages is failing to keep pace with the demand for rented accommodation. More recently in the 12 months to March this year 108,000 new BTL mortgages were granted, but taking into account factors including remortgaging this only translated into 75,200 additional mortgages, down from a peak of 190,000 in 2007. As accidental landlords eventually leave the sector, there is an opportunity for equity rich investors.

2012 / 2013The need for banks to start lending again is important in numerous sectors and key within the property market. Lenders are already showing signs of competitiveness by the level of new mortgage products available. This cycle will look to continue as lenders compete for market share and therefore creating more aggressive rate offers. It is expected that the more equity rich prime markets will lead the recovery in house prices. The earliest significant growth will be fuelled both by the continued introduction of first time buyers with improved lending, alongside the pension provision sector of the investor market. Growth over the next five years is expected to be much like the pattern witnessed in the mid to late 1990’s, where prices rose at a steady rate due to a progressive increase in overall housing demand.

Savills Residential Property Focus Report (August 2011)

Steady increases are predicted as the upward trend continues; 2012 +2.0% 2013 +4.0% 2014 +5.0% 2015 +5.5% showing a +14.6% increase in Birmingham property values by 2015.

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Anticipated Sales Values 2013

The average value of new build apartments in Birmingham is currently £295 per st ft compared to our St George’s offering at £200 per sq ft. An equivalent scheme 'St Paul's Place' also based within the Jewellery Quarter is currently achieving up to £335 per sq ft - although slightly better located, St Georges based on Carver Street shows excellent value.

The following page shows a schedule detailing a break down of all developments currently available in the city and their present sale prices. All of which are at differing stages within the sales process with most developments being over half sold.

Based on comparable research, our knowledge of the local market and land registry reporting, we have seen significant improvements in sales volumes since the lows of 2008 where 78 units were completed on within the whole of 2008, compared to 378 units from January - September of 2011.

Based on this activity we would anticipate further capital increase in value in addition to the current built in off plan margins.

Another train of thought offered by Savills research is the appreciation of what is been classed as Category C housing - property utilised by the rental sector.

This being the value of property based on rental yields and its value to investors. This figure is generally over and above the current market prices due to its high income producing nature.

“We look forward to the delivery of St George’s in 2013, on which we'll bepleased to offer lease backs at market value on this scheme. This comes as a response to the continued demand for accommodation in the city”City-Nites director Daniel Bolger

2007 2010 2015

Notional owner-occupier property value £100,000 £88,818 £94,446

Notional annual rental value £5,000 £5,057 £6,640

Running yield (gross) 5.0% 5.7% 7.0%

Value of property to investor requiring £71,429 £72,248 £94,851

Source: Savills Research

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Edgbaston Cricket Ground

Current Supply and Due Supply

The table below details the current supply of apartments in Birmingham. Not only does this demonstrate the lack of current available stock, but also the average pound per square foot costing over £295.00. There is recognition within the industry that due to lack of bank funding for developers, the pipe line shortage is only set to increase, as these last few centrally located developments sell their remaining units.

St George’s, a direct comparable of the sitesshown below, will be available at £200.00 per sq ft to our investors - approximately £100 per sq ft less than the current market average, as shown below.

Development Accommodation Average Price Average Sq Ft Average Price Per Sq Ft

St Pauls Place 1 Bedroom £151,500.00 594 255

St Pauls Place 2 Bedroom £229,375.00 683 335

The Quarter 1 Bedroom £138,000.00 435 317

The Quarter 2 Bedroom £179,420.00 615 291

Cube 1 Bedroom £145,000.00 425 341

Cube 2 Bedroom £250,000.00 750 333

Kenyon Forge 1 Bedroom £105.000.00 425 247

Kenyon Forge 2 Bedroom £135.000.00 630 238

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Total Units

60

63

420

94

PropertyManagement and Lease Back Option

Prosperity work in conjunction with letting and management specialists Maguire Jackson, to provide a fully managed service for our St George’s investors. Based in Birmingham city centre, Maguire Jackson can cover all aspects of maintaining the tenanted property, including full management, tenant liaison and administration, professionally and efficientlyon your behalf. The director Philip Jackson, previously an expat in Hong Kong for over six years has a real understanding of what overseas clients want and expect from their managing agent. Our brief for the Prosperity client - a management service offering a full hands off service to clients with quarterly reporting procedures. Maguire Jackson willallocate a specific account manager for St George’s Prosperity clients so property owners have a single point of contact when dealing with any property management enquires.

Exclusive to Prosperity's St George’s property owners, our lease back option offers a refreshing letting alternative. City Nites, an apart-hotel service based in all major cities across the UK, is offering an exclusive 5 year lease back of each property at an agreed rental level, eliminating ownership responsibilities and tenant void concerns. This option offers up to five years of guaranteed income following completion.

www.maguirejackson.com

11Selfridges, St Martins and the Bull Ring Shopping Centre

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Deposit Payment Plan

Prosperity is working in partnership with the developer to create a unique payment structure for their clients for its St George’s clients- a first for property investment. The total deposit payable is divided by the build term months so can be paid throughout the build period on a monthly basis. This allows clients to retain their capital that maybe tied up in other investments, or cash lump sums, and pay their deposit over the build period maximising return on capital.

A mortgage of 70% is arranged for completion with the 30% deposit being paid in two main stages - 10% on exchange of contracts and 20% divided over the build period and paid monthly.

Purchase Price (example) £120,000.00

Reservation / Exchange stageReservation deposit - 10% of purchase price £12,000.00 Prosperity fee 3% (min £3000) £3,600.00Legal Fees (Inc Land registry & disbursements) £1,300.00

Reservation / Exchange stage total £16,900.00

Monthly payment stage20% deposit balance £24,000.00

Total divided by 30 months £800.00

CompletionMortgage arrangement fee 1% £1,200.00

70% of purchase price by way of mortgage £84,000.00

IncomeGross Rental Income (£750.00pm) £8,400.00

ExpensesEstimated service charge PA £900.00 Management fee @ 8% £672.00

Income net of mortgage £6,828.00

Mortgage informationMortgage (repayment 25yrs) (£463.36pm) £5,560.32

Capital and Repayment mortgage - 25 yearsNet cash flow £1,267.68

ASSUMPTIONSMortgage Amount 70.00% Loan Term (Years) 25 yearsMortgage Rate (pa) 4.32% Purchase price £120,000.00

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Ty pical Floor Plans

For further information please contact:Prosperity, Montpelier Court, Barston Lane, Eastcote, Solihull B92 0HR

T: +44 (0)845 6769799 E: enquires@prosperityfund.co.uk

www.prosperityfund.co.uk

Birmingham City Centre at night