This presentation was given by Andrew Hamilton, Senior Director of BNP Paribas at the Property Seminar hosted by Slater Heelis solicitors on 8 July 2010. Andrew discussed rental performance and trends, waste to energy as a potential investment opportunity and the return of the residential investor.

1. Where now for property? Manchester Andrew Hamilton

2. The North suffers most in the recession

3. Rental value loss in 2009 – historic comparison

4. Rental value loss in 2009 – historic comparison

5. Broad recovery in take-up across the regions

6. Recovery favours South

7. Distribution take-up varied widely between regions

8. A good recovery for rents

9. Distribution’s late recovery doesn’t help enough

10. Values still lie well below the long run trend

11. Office values recover sharply - helped by London

12. But the collapse in some markets takes time to repair

17. Nominal House Price Growth 6.17% 6.78% 8.31% 8.45% 2.84% 7.73% 3.94% 2.11% 2.75% -1.28% 3.11% 2.63% 3.30% 2010 -6.89% 1.09% -0.20% 3.84% 7.16% 4.68% 4.46% 22.09% 2.55% 2.74% 2.72% -2.05% 3.37% 2009 -22.0% -2.2% -7.0% -7.4% -5.9% -6.9% -7.9% -7.1% -7.4% -7.3% -7.4% -5.3% -6.8% 2008 43.1% 13.0% 5.8% 8.4% 12.6% 9.1% 7.3% 4.9% 5.1% 4.7% 5.1% 5.5% 8.9% 2007 30.5% 13.0% 5.3% 5.3% 9.7% 5.1% 5.3% 3.3% 3.3% 4.7% 6.0% 2.7% 6.5% 2006 12.8% 10.4% 6.0% 3.9% 3.7% 2.1% 3.8% 4.6% 4.1% 7.8% 8.2% 5.3% 5.4% 2005 15.1% 22.5% 31.5% 15.4% 8.9% 11.9% 14.3% 16.8% 18.4% 27.0% 25.5% 29.5% 16.6% 2004 11.3% 14.8% 26.2% 18.6% 14.5% 18.9% 17.8% 22.6% 25.3% 24.0% 27.5% 32.4% 19.6% 2003 9.2% 13.0% 18.9% 24.5% 18.2% 22.0% 23.1% 21.5% 23.9% 18.7% 22.8% 19.3% 19.8% 2002 8.0% 3.0% 9.0% 11.9% 10.1% 11.7% 14.2% 11.1% 11.7% 10.5% 9.5% 8.4% 10.5% 2001 12.5% 4.6% 8.3% 16.6% 18.9% 19.1% 15.6% 10.7% 11.0% 6.4% 5.8% 4.8% 13.0% 2000 10.4% 3.6% 6.0% 10.6% 10.9% 10.6% 7.5% 7.0% 7.6% 6.3% 4.8% 3.3% 9.1% 1999 Northern Ireland Scotland Wales South West Gtr London Rest of South East East Anglia Midland East Midlands North West Yorks& Hmber North UK

19. Every day Britain throws away Source: WRAP & The Independent 1.6 M Bananas 5,500 Chickens 5.1 M Potatoes 1.3 M Yoghurts 220,000 Loaves of Bread 660,000 Eggs 1.2 M Sausages

20. Waste Management across Europe Source: Eurostat

26. SCA Recycling Southampton MRF

35. The property opportunity? By 2015, nearly all MRF capacity is utilised and almost 60% of areas have insufficient capacity, with a number of others close to capacity WRAP, MRF Capacity report, 2007 300 landfill sites could close and will need to be replaced by as many as 3,000 smaller sites. Biffa, Future Perfect, 2003 If the targets set out in the Landfill Directive are to be achieved there has to be a rapid and exponential increase in facilities to process waste in other ways. RICS: Can the Waste Planning System Deliver, 2004