1. Maximising Investment Opportunities: releasing value from estates Barclays Private Equity 15 th May 2008

2. Barclays Private Equity Estate Transfers  Established residential estate transfer model  University secures capital premium – releases funding for new development or refurbishment  Residential  Academic  Sports facilities  General estate reinvestment  University retains long term freehold interest  Operator and Investor takes student demand risk, FM and long term asset maintenance risk  Key basis is a residential partnership with established operator; value drivers are:  lease term  rent pricing models  nomination / reservation arrangements  credit and void risk 2

3. Barclays Private Equity Market context for releasing value  Business need to secure investment  Competitive recruitment environment  Student expectations  Tuition fees  Overseas market  Too much debt on balance sheet constrains a University’s ability to react  Method of release must be such that University is then not overly constrained by the new arrangements; new arrangements must be financially sustainable  University still needs to be able to react to changes in the market going forward  Focus on income stream based business (supported by business cases) not property asset based business 3

4. Barclays Private Equity Holding Company Portfolio of Student Accommodation and other assets University Equity – Private sector partner and University Shorter term senior debt facilities External manager Funds development or purchases Leases Development Partnerships Development vehicle / partnership with University 4

5. Barclays Private Equity  Development partnership set up on two levels  Strategic level (key focus master plan agenda)  Delivery level (key focus implementation)  University and Private sector partner represented at Strategic level  University sets and controls the agenda  Both parties determine the operational aspects at the Delivery level  Vfm procurement in force for all contracts let  Ability to bring in other parties at Delivery level eg Local Authorities, other developers and agencies  Different development options considered but in the context of an overall University estates master plan  Reinvestment of proceeds realised as determined by Strategic level 5 Two Tier Approach

6. Barclays Private Equity  Development partnership analyses different estate options but within a ‘joined up’ approach for:  Residential assets  Academic facilities  Infrastructure  Land disposals Aim is to provide an integrated solution  Private sector partner / investor brings  Cash  Asset management skills  Operational capabilities where desired  Development management and procurement skills  Development options – land proceeds 6 Integrated Estates Approach

7. Barclays Private Equity  Development relationship allows greater commercial flexibility  Different assets under consideration  Range of size of assets  Optimum development timescale can be chosen  Programme of transactions can be undertaken  Different property interests  Responsive to different market conditions  Develop a portfolio of accommodation of critical mass to allow subsequent refinancing / rating  University can participate financially in structure as shareholder as well as setting development agenda 7 Generation of Value

8. Barclays Private Equity  Direction of travel is to facilitate entry of institutional investment into the HE sector  Model contemplates the ultimate funding of a wider range of facilities in an investment portfolio  Accommodation  Academic buildings  Management schools  Conference centres  Sports facilities  Commercial – Science park, business start up facilities  Development partnerships are more applicable funding solution to campus wide development or significant estate overhaul  More vfm and sustainable solution for Universities in terms of access to capital and maximising estate value 8 Conclusions

9. Barclays Private Equity Health Warning This presentation is provided to you for information purposes, any terms in this report are Indicative and is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The information contained herein has been obtained from sources believed to be reliable but Barclays Private Equity does not represent or warrant that it is accurate and complete. The views reflected herein are those of Barclays Private Equity and are subject to change without notice. Neither Barclays Private Equity nor any officer or employee thereof accepts any liability whatsoever for any direct or consequential loss arising from any use of this publication or its contents. Investors should seek their own advice as to the suitability of any investments described herein for their own financial or tax circumstances. This communication is being made available in the UK and Europe to persons who are investment professionals as that term is defined in Article 19 of the Financial Services and Markets Act 2000 (Financial Promotion Order) 2001. It is directed at persons who have professional experience in matters relating to investments. The investments to which is relates are available only to such persons and will be entered into only with such persons. Barclays Private Equity Limited is authorised and regulated by FSA. Barclays Private Equity is a Barclays Capital company. Barclays Capital is the investment banking division of Barclays Bank PLC Copyright in this report is owned by Barclays Capital ((c) Barclays Bank PLC, 2003) - no part of this report may be reproduced in any manner without the prior written permission of Barclays Capital 9