15 October 2012 Evergreen – LMC Meeting Cheshire West & Chester Council HQ

CBRE | Page 2 CIENT LOGO Agenda 1.Background 2.Investment Strategy 3.Appraisal Process 4.Current Projects 5.Project Pipeline 6.Experience to Date 7.State Aid 8.Potential Demand

CBRE | Page 3 CIENT LOGO Background  North West Urban Investment Fund established in Nov 2009  EIB is Holding Fund Manager  Two Urban Development Funds now operational – Evergreen and Chrysalis  Both UDFs target the creation and/or refurbishment of new/redundant floorspace; creation or retention of employment and remediation of brownfield sites  Evergreen - the UDF for GM, Lancashire, Cheshire and Cumbria  16 Local Authorities – Limited Partnership led by GP Board  Independent Fund Manager – FSA Registered – CBRE  Evergreen went live 28 th October 2011

CBRE | Page 4 CIENT LOGO Investment Strategy Investment Strategy with six priority areas: 1.Create a high-employment region 2.Invest in science, research and innovation 3.Build on the region’s strengths in culture and media 4.Supporting strong and diverse town centres 5.Promoting a wider, stronger and more sustainable industrial base 6.Ensuring sustainable sites are ready for development Aligned with sub-regional strategies and NWOP Measures 3.2 and 4.3

CBRE | Page 5 CIENT LOGO Project Appraisal

CBRE | Page 6 CIENT LOGO Current Projects PROJECT LOAN AMOUNT INTEREST RATE LOAN REPAYMENT DATE ERDF TARGETS – FORECASTED OUTCOMES NEW & SUSTAINED JOBS CREATED / PERCENTAGE OF ERDF TARGET BREEAM EXCELLENT FLOOR SPACE CREATED / PERCENTAGE OF ERDF TARGET HECTARES OF BROWNFIELD LAND REMEDIATED / PERCENTAGE OF ERDF TARGET Soapworks, Salford £6mmarket 36 months from loan agreement date 1,280 Jobs 43.8%21,880 m %3.58 Ha44.75% CityLab, Manchester £4.75mmarket 30 June Jobs10.5% Space already accounted for within grant funding 0.3 Ha 3.75% Total £10.75m-- 1,586 Jobs 54.3%21,880 m %3.88 Ha 48.5%

CBRE | Page 7 CIENT LOGO Project Pipeline PROJECT LOAN AMOUNT INTEREST RATE LOAN REPAYMENT DATE ERDF TARGETS – FORECASTED OUTCOMES NEW & SUSTAINED JOBS CREATED / PERCENTAGE OF ERDF TARGET BREEAM EXCELLENT FLOOR SPACE CREATED / PERCENTAGE OF ERDF TARGET HECTARES OF BROWNFIELD LAND REMEDIATED / PERCENTAGE OF ERDF TARGET 101 Embankment Greengate, Salford £6.95mmarket Dec 2015 (TBC) 880 Jobs30.1% 15,329 m %0.2 Ha2.5% Chester CBD£6mSub-commercial 36 months from loan agreement date 514 Jobs (TBC) 17.6% (TBC) 6,172 m2 (TBC) 7.87% (TBC) 0.15 Ha (TBC) 1.88% (TBC) DHL, Manchester Airport £6mmarket 36 months from loan agreement date TBC I plus, Spinningfields, Manchester £6mmarket 36 months from loan agreement date TBC Port Salford, Salford £6mmarket 36 months from loan agreement date TBC

CBRE | Page 8 CIENT LOGO Progress to Date Progress to date Project Pipeline  2 projects final negotiation, further projects being appraised for Stage 1 approval by GP Board  Economic Conditions – reduced demand Regulation  Match funding at project level (COCOF III)  State aid notification Raise Profile  Over 12 developer and LA roadshow presentations  Good understanding of the fund and how it works  First ‘club’ deal with bank underway

CBRE | Page 9 CIENT LOGO Experience to Date  Banks now reducing lending to projects for their own cashflow/coverage reasons, not just viability – Evergreen co-financing role  Developers prepared to invest alongside Evergreen, where development would not otherwise have happened  Completion process challenging with new products EU monitoring/audit rights Output security ‘Match funding’ agreements  Banks more aware and are keen to work with the Fund  Developers restructuring projects to utilise Evergreen  Project pipeline subject to challenge geographically

CBRE | Page 10 CIENT LOGO State Aid  Implementation needs to be worked through  Enables funding projects with viability gap but alters risk for the Fund (where some measures are concerned)  Independent Expert now to be appointed directly by Fund  Option for LA to assist in project delivery in higher risk areas, to support Evergreen investment.  Developers cautious regarding advice in implementing the scheme

CBRE | Page 11 CIENT LOGO Potential Demand  Currently c.£11m in final stage of negotiation  Further c.£31m undergoing due diligence/appraisal  Further marketing exercise starting before Christmas  News of loans expected to be completed shortly expected to increase demand.  Further pipeline projects being developed  As LEPs develop their Growing Places investments, they may utilise Evergreen where appropriate