CLS Holdings plcDevelopment Expertise

CLS AT A GLANCE

WHO WE ARE CLS IS A FTSE 250 PROPERTY INVESTMENTCOMPANY WITH A £1.5 BILLION PORTFOLIOIN THE UK, GERMANY AND FRANCE OFFERINGGEOGRAPHICAL DIVERSIFICATION WITH LOCALPRESENCE AND KNOWLEDGE

WHAT WE DO > We are a long-term investor with one third of our portfolio ofproperties in the Vauxhall area, most of which we have ownedsince the 1980s and first developed in the early 1990s

> Our core business is owning and actively managing high-yieldingoffices which we reposition through enhanced planning, leaserestructuring, refurbishments and developments

> We look to achieve long-term capital appreciation with a strongemphasis on cash generation and an opportunistic approach toacquisition, development and disposal

> Our activities are financed through diverse and flexiblestructures, with multiple sources of finance and active cashmanagement, which enabled us to undertake the £50 milliondevelopment of Spring Mews using existing equity

Spring Mews, London SE11 Ateliers Victoires, Paris

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138/139 Fetter Lane, London EC4A

HISTORY OF REFURBISHMENT AND DEVELOPMENT

ENHANCING EXISTING ASSETS

> Average annual UK refurbishment spend of £15-20 million> All major enhancements to façades, receptions, plant

and machinery managed in-house> Group carbon emissions reduced by 7.7% in 2015

through strong sustainability focus

PLANNING IMPROVEMENTS

> Continual review of planning permissions to secureadditional value

> Westminster Tower permission enhanced by removingaffordable housing off site in 2015

> Vauxhall Square permission enhanced in 2016, increasingthe residential and office space and relocating affordablehousing off the main site

> Additional height and office space secured in 2016 atSpring Mews, Phase 2

CURRENT DEVELOPMENTS

> £9 million Spring Mews, Phase 2 office and student use,on site with completion due late 2017

> Wendle Court (part of Vauxhall Square) demolitioncommenced 2016

> €8 million Ateliers Victoires major office refurbishment,on site with completion due late 2017

KEY DATA 2015

115Number of properties

572,000 sqmLettable floor space

568Number of tenants

£89 millionContracted annual rents

£1.5 billionValue of property portfolio

£132 millionProfit after tax

50.6%Loan to Value of Property Loans

3.27%Average Cost of Debt*

3.6 timesInterest Cover*

* 30 June 2016

VAUXHALL SQUARELONG-TERM INVESTOR IN VAUXHALL

CLS’S HISTORY OF WORKING WITH LAMBETHPLANNING AUTHORITY EXTENDS BACK TOTHE DEVELOPMENT OF THE SPRING GARDENSOFFICE CAMPUS, WHICH COMPLETED IN 1991

OVERVIEW

Vauxhall Square is a striking, mixed-use development situated adjacent tothe Vauxhall transport interchange within the Vauxhall Nine Elms BatterseaOpportunity Area (“VNEB”). Providing 578 new homes, a 186 bedroom suitehotel, retail, leisure, and over 350,000 sq ft of office space, Vauxhall Square isset to become a new commercial and community hub. With both residentialand office roof terraces overlooking a vibrant landscaped square and theThames, the scheme brings together riverside views and urban attitude.

1,635,220 sq ftTotal area

578New homes

47%Studio & 1 bedroom units

353,360 sq ftPrime office location

Constructionunder wayWendle Court site

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“Panoramic views ofcentral London takingin a wide stretch of theRiver Thames”

CLS STAKEHOLDER RELATIONSHIPS

> Vauxhall One BusinessImprovement District– Current Board Member

> VNEB Strategy Board– Current Board Member

> VNEB Landowners Partnership– Co-Chair

> Transport for London – Keyconsultee for gyratory changes

> Friends of Vauxhall Park,Garden Museum – Supporterof local initiatives

> London First – Member

Developer Vauxhall Square Limited (a wholly-ownedsubsidiary of CLS Holdings plc)

Situated Vauxhall, Zone 1, London

Total area 1,635,220 sq ft (GIA)

Homes 578 new homes

Commercial 353,360 sq ft office (GIA)39,794 sq ft retailPlus 186 hotel rooms

Status Planning permission grantedWendle Court phase under constructionMiles St South phase sold on long leasehold

Construction cost £500 million

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CLS Holdings plcDevelopment Expertise

www.vauxhallsquare.co.uk

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DEVELOPING OUR

LONDON PORTFOLIO

SPRING MEWS, LONDON SE11

Spring Mews is a mixed-use estate, close to Vauxhall Station andlocated within the Vauxhall Nine Elms Battersea Opportunity Area.Phase 1, which completed in 2014, comprises 378 en-suitestudent bedrooms with associated common facilities includinga pool, gym, common room, study room and courtyard amenityspace. There is also a 93 bedroom Staybridge Suites hotel and11,952 sq ft NIA of office use, spread over 7 units.

The development has won a number of design awards includingthe FX International Design Award in the Mixed-use category 2015and the Sunday Times British Homes Awards in the Mixed-usecategory 2015. It also received a commendation in the CivicTrust Awards 2016.

Phase 2, comprising 9 student apartments and 9,181 sq ft ofoffices, is currently on site and expected to complete in late 2017.

Developer Spring Mews Limited (a wholly-ownedsubsidiary of CLS Holdings plc)

Situated Vauxhall, Zone 1, London

Total area 192,522 sq ft (GIA)

Homes Phase 1: 378 student accommodation rooms(mix of studio rooms and cluster rooms)Phase 2: 9 x 1 and 2 bedroom student apartments

Commercial Phase 1: 11,952 sq ft office (NIA) Phase 1: 93 key suite hotel Phase 2: 9,181 sq ft office (NIA)

Status Phase 1: completed in December 2014 aftera 21 month construction programmePhase 2: under construction

Construction cost Phase 1: £50 millionPhase 2: £9 million

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CLS Holdings plcDevelopment Expertise

WESTMINSTER TOWER, LONDON SE1

A 2014 planning permission was amended in 2015 to provide28 private riverside apartments and 9,353 sq ft of office spaceas part of a comprehensive refurbishment and conversion ofthe existing office building known as Westminster Tower.

Plans include the introduction of a high-quality Portland stonefaçade with ceramic detail, referencing its history as the site ofDoulton House. The existing rooftop plant will be replaced by anew bronze pavilion containing three new floors of residentialaccommodation with 360 degree views of London.

The new apartments will consist of luxurious two and threebedroom dwellings, all having balconies to enjoy the spectacularviews over the Thames to both Battersea Power Station and thePalace of Westminster.

138/139 FETTER LANE, LONDON EC4A

138/139 Fetter Lane is located on the eastern fringes of theCity of London, close to the Royal Courts of Justice and theInns of Court.

The office floors over lower ground to 2nd floor werecomprehensively rebuilt in 2013/14 to provide new grade Aoffice accommodation. 8 new residential apartments were alsocreated on the 1st and 2nd floors with their own entrance.Additional courtyard extensions to the office area compensatedfor the office area lost to the new residential apartments.

As part of the refurbishment works, a new 7-storey Portlandstone façade was installed.

The office rent increased by more than 100% following therefurbishment.

Developer Three Albert Embankment Limited(a wholly-owned subsidiary ofCLS Holdings plc)

Situated Albert Embankment, Vauxhall,Zone 1, London

Homes 28 apartments, 16 car parkingspaces and ancillary residentialamenity space

Commercial space 9,353 sq ft office

Development status Planning amendment approvedNovember 2015

Anticipated 2019-2020commencement

Developer Ingrove Limited (a wholly-ownedsubsidiary of CLS Holdings plc)

Situated City of London, Zone 1, London

Total area 38,537 sq ft (GIA)

Homes 8 apartments (6 x 1 bedroom apartmentsand 2 x 2 bedroom apartments)

Commercial 34,671 sq ft office (GIA)

Status Completed in November 2014 after a20 month construction programme

Construction cost £8.6 million

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DEVELOPING IN EUROPE

ATELIERS VICTOIRES

Ateliers Victoires is an office refurbishment scheme which willprovide grade A offices in the central Paris financial district.Designed to suit single or multi-tenancies, the refurbishmentworks involve major structural re-modelling of what was initiallyconstructed as a multi-storey car park.

Developer Petits Champs Sarl (a wholly-ownedsubsidiary of CLS Holdings plc)

Situated Rue Croix des Petits Champs, Paris

Total area 21,553 sq ft office (GIA)

Status Design and build construction contract let,and in the early stages of re-modellingand refurbishment works

Construction cost €8 million

SOLNA BUSINESS PARK – REGENERATION

The 5.2 hectare (12.9 acre) property was purchased in 1999,at which time it comprised a run-down semi-industrialestate with a total net lettable area of 1.2 million sq ft and35% vacancy.

CLS successfully secured planning permission for therefurbishment and extension of 6 buildings on the site,then undertook a substantial £118 million programmeof redevelopment. Construction was carefully managedin phases, which allowed rental income to be maintainedduring the works.

By the time Solna Business Park was sold in 2006, it had beentransformed into a 1.5 million sq ft integrated business, retailand leisure destination, completely regenerating the area.

SWEDEN

FRANCE“CLS’s first substantial mixed-useregeneration was in Sweden”

TOWN HALL, BOCHUM

The Town Hall was a refurbishment project of a former 60%vacant shopping and administration centre built in 1982 inthe central business district of Bochum.

The property accommodates ca. 900 civil servants and apharmacy, and has been leased to the City of Bochum for30 years.

Developer Grossglockner SarL (a wholly-ownedsubsidiary of CLS Holdings plc)

Situated Bochum, CBD

Total area 269,173 sq ft (GIA)

Commercial 256,800 sq ft office (GIA) 5,759 sq ft retail

Status Completed in 2009

Construction cost €21 million

GERMANY

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CLS Holdings plcDevelopment Expertise

LANDSHUT OFFICE PARK

Landshut Office Park was developed for E.ON AG to increase itspresence in the south east of Germany. The double-net leases are for15 and 18 years without breaks.

Developer 3 Special Purpose Vehicles (wholly-ownedsubsidiaries of CLS Holdings plc)

Situated Landshut, Greater Munich Area

Total area 164,320 sq ft offices (GIA)

Status Phases 2 & 3 completed in 2009, Phase 4completed in 2012

Construction cost €22 million

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COMPANY EXPERIENCE PROFILES

EXPERTISE FROM OUR

PROFESSIONALS

Fredrik Widlund

Fredrik joined CLS in November 2014 as ChiefExecutive Officer. He has significant experiencein structuring and managing JV partnershipsin real estate investments and developments,including back-to-frame refurbishments andgreen field developments.

Fredrik joined CLS from GE Capital where,over a 15 year career, he held the positionsof Finance Director, Managing Director ofGE Capital Real Estate (UK), Regional CEO forGE’s European leasing businesses and finallyas Managing Director and Global CommercialLeader at its trade finance business, GE CapitalInternational. Fredrik also served as directorof several financial services JV’s in the UK,Nordic, Benelux and Iberia, and has workedwith investors in the US and Asia.

Fredrik has worked with major JV partnerssuch as Hermes, Schroders, O&H Properties,Capital & Regional, Hammerson, andExemplar, and privately owned property andfund managers.

Prior to his career at GE, Fredrik worked forShell in London and Sweden, where he wasinvolved in optimising the property network,working directly and in JV’s with developers,real estate investors and agents.

Fredrik has a degree in Economics from theUniversity of Stockholm.

Henry Klotz

Henry was appointed Executive Chairman inMarch 2016, having previously been ExecutiveVice Chairman since January 2011 and ChiefExecutive Officer from May 2008.

Henry joined CLS in 1999 with responsibilityfor the management of the Swedish operation,and was involved in the setting up of theGerman division and sourcing new businessopportunities for the Group. He was responsiblefor the transformation of Solna Business Park,Stockholm from a run-down semi-industrialestate to a prime business park, throughphased development and extension. He alsooversaw £6 million of refurbishments atVanerparken, a 418,800 sq ft mixed-use siteand successfully obtained detailed planning for75 residential units on part of the site, priorto sale. Henry has a detailed knowledge of theentire development process, and having trainedas both an Engineer and Economist, has helddiverse roles during his career including SiteManager, Valuer and Asset Manager.

On behalf of CLS, Henry is also Non-ExecutiveChairman of Catena AB, a Nordic real estatecompany quoted on Nasdaq Stockholm, and aNon-Executive Director of Note AB, a technologycompany quoted on Nasdaq Stockholm.

Simon Wigzell

Simon is Head of Group Property havingjoined CLS in 2010. He is a qualified CharteredSurveyor with 27 years of experience incommercial property development, investmentand asset management.

Simon is responsible for all aspects of theproperty business in the UK, France andGermany. He has worked on Vauxhall Square’sdevelopment since 2010, formulating theoriginal design scheme and submitting theinitial detailed planning application in 2011.He has overseen recent developments at CLS,with responsibility for the Group’s strategicdevelopment programme.

Simon is a member of the VNEB Strategy Boardand co-chairs the VNEB Landowners Group.In addition, he was involved in the setting upof the Vauxhall Business Improvement Districtof which he is also a Board Member.

Prior to joining CLS, Simon was ManagingDirector of an industrial fund and two shoppingcentre funds at Warner Estate Plc and involvedin the development of hotels and offices forBAA Lynton at Heathrow, Gatwick andStansted airports including the 600 bedroomSofitel at Terminal 5, which involved complexdevelopment issues.

Simon holds a degree in Valuation and EstateManagement and is a member of the RoyalInstitute of Chartered Surveyors.

CLS Holdings plcDevelopment Expertise

Helen Pilcher

Helen is a Senior Development Manager, having joined CLSin 2012. She has been involved with a number of wide-rangingdevelopment projects from inception to completion over a9 year career within the development sector. During her timeat CLS, Helen has acted as the Development Manager on the138/139 Fetter Lane and Spring Mews projects, which bothcompleted in 2014.

David Towse

David is a Project Manager with CLS, having joined in October2012. While employed as project manager and regional quantitysurveyor with his previous employer, Unite plc, David managedstudent accommodation projects with values between £8 millionand £44 million from feasibility onwards. David project-manageddelivery of Spring Mews Phase 1 and is currently managing thedevelopments of Phase 2 and the Wendle Court hostel.

Russell Harding

Russell is the Head of Property Management and has worked forCLS for 13 years. He oversees both the Property and FacilitiesManagement functions within the UK portfolio, managing anannual service charge expenditure of £11.8 million over some1.25 million sq ft and 135 tenancies. Russell’s strengths arein the management of buildings with multi-schedule servicecharges, complicated M&E systems, and the modernisationof older buildings.

Rowan Packer

Rowan is the Group Sustainability Manager, having joined CLSin 2014 from Land Securities plc. He has worked within theEuropean energy and sustainability sector for over 11 yearsacross multiple industries including property investment anddevelopment, food retail and shopping centres. At CLS he isresponsible for the Group’s impact on the environment throughcarbon emissions, for minimising energy costs and for ensuringa continuous energy supply across the portfolio.

Rachel Broughton

Rachel is Head of UK Property Development.She has 17 years’ property experience in bothAustralia and the UK, undertaking planning,letting and delivery of major shopping centredevelopments and masterplanning mixed-useregeneration schemes, including the £1.2 billionregeneration of Elephant & Castle.

Since joining CLS in 2011, Rachel has managedthe submission of key planning applicationsfor Westminster Tower and Spring Mews andsubsequent amendments to Vauxhall Square.

Responsible for day-to-day running of theVauxhall Square project, Rachel’s focus hasbeen on managing the design team to improvethe planning permission through amendmentsand securing legal agreements in readiness fordelivery. She has undertaken vital negotiationswith Lambeth Council, including the use ofappropriation powers, with surroundingstakeholders to resolve neighbourly issues,with Network Rail to acquire a long-leaseholdinterest, and with TfL for the redesign ofthe gyratory.

Prior to joining CLS, Rachel held the positionof Development Manager at Lend LeaseEurope and Leasing Operations Manager atWestfield Shoppingtowns.

Rachel holds a Bachelor of Laws and wasadmitted to the bar as a Barrister and Solicitorin New Zealand in 1994. She also holds anMBA in Construction and Real Estate from theUniversity of Reading.

CONTACT

Registered OfficeCLS Holdings plc86 BondwayLondon SW8 1SF

Tel: +44 (0)20 7582 7766

Registered Number2714781

General Enquiries0870 889 3286

Development Team Contact:swhelan@clsholdings.com

Email:enquiries@clsholdings.com

www.clsholdings.com

OUR EXPERIENCED DEVELOPMENT TEAM HAS AWEALTH OF KNOWLEDGE IN GAINING VALUABLEPLANNING PERMISSIONS, CONSTRUCTING,LETTING AND MANAGING HIGH QUALITYSCHEMES IN THE VAUXHALL AREA.

CLS has been a major investor in Vauxhall since the 1980s, giving usunrivalled local knowledge and strong relationships with a wide rangeof key stakeholders. We are proud of our innovation and leadership inunlocking long-term positive changes for the area, such as theintroduction of the Business Improvement District and the proposedcalming of the Vauxhall gyratory.

CLS has been involved in the local area for three decades and intendsto continue to be. Our deep roots in the area and our developmentexpertise make us the ideal development partner to successfully deliverexemplary buildings which transform the way people work and live.