The Property Index - Investment CaseReal Estate Crowdfunding

Jan 2015(www.thepropertyindex.com)

Industry background

● REIT (e.g. Schroders) - opaque and non customisable

● Owner purchase - admin and resource headache

● There are a lot of costs and processes to disintermediate in the existing property investment chain

● As a result, Alt Fi property companies are set to disrupt the property investment business over the next 5 years

Alt Fi is set to make a big impact on the property investment industry

Alt Fi REIT Owner Purch.

Returns

Familiarity

Customisable

Ease

Flexible

Liquid

Secure

Cheap

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What is TPI?

● Investor chooses property ○ Site deliberately emulates estate agent sites

● Summary of property laid out in header● Order book lets users choose price to buy

or sell● Details of property laid out for user

○ Overview (particulars)○ Accounts○ Valuations○ Charts ○ News / comments

TPI is a transparent property crowdfunding platform

3

How does it work?

NOTE● Properties sourced by TPI

● Price negotiated between TPI and Vendor

● User offered property at a fixed price

● Users interest in property governed by Loan Agreement

● Lot holders returns determined by rental income and capital gain

5 stage process of the investment cycle

Property offered for sale on TPI

Property resides in SPV. User

buy “Lots” in SPV

Tenants pay rent to SPV. Lot

holders receive rental income

Lot holders trade their lots on

secondary market

Property sold after 5 year term.

Proceeds returned to Lot

holders

1

2

34

5

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Why there will be demand for TPI

● Property is a widely understood asset class

● The site is easy to use and familiar

● SIPP compliant (potentially New ISA compliant)

● Users can easily customise their portfolio

● TPI offers low cost and admin free exposure to Buy-to-Let property

● The P-2-P / Alternative Finance market is increasingly capturing retail investors imagination

TPI makes it easy to invest in Buy-to-Let property

Liberum AltFi Index (over £2bn invested)

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Typical returns profile

● 6.95% IRR over 5 years

● Backed by property

● Hassle free

This investment ticks all the right boxes for investors

Inputs Returns

Investment (£) £1,000,000 IRR 6.95%Years to be held 5 Yr Income over Period £26,209House Price Rise p/a (%) 8% Increase in Value of Shares £425,248Weekly Rent (£) £575 Money In £1,000,000Vancancy Rate (%) 0% Money Out £1,451,457

CPI (%) 3.50%

● This compares to

○ Low interest ISAs

○ Volatile Stock Market Returns

○ Non Asset-backed AltFi Returns

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How TPI fares against other Alt Fi Property plays

● We have lower operating costs due to our regulation

● Our order book secondary market is unique

There are a number of different business models - and ours is optimalCOMPETITOR PROFILES

● Our regulation will allow us to be more flexible in product innovation

● Our fees are significantly less than competitors.7

Operator Website Type* SIPP Comp. Transactions Regulation Gearing Secondary Market

No. Size Type App Rep Y/N Order Book

House Crowd www.housecrowd.com C X 90 Small AIFD Y X X X

Property Moose www.propertymoose.co.uk C X 2 Small AIFD Y X X X

Property Partner www.propertypartner.co C X 0 Small AIFD N X ✓ X

Property Crowd www.propertycrwod.com C X 0 Large AIFD Y X X X

Wellsley www.wellesley.co.uk P ✓ 100s Range Consumer Credit N - X X

Land Bay www.landbay.co.uk P X 1 Small Consumer Credit N - X X

Assetz Capital www.assetzcapital.co.uk P ✓ 100s Range Consumer Credit N - X X

TPI www.thepropertyindex.com Both ✓ 0 Large Consumer Credit N ✓ ✓ ✓

*NOTE: P = P2P / C = Crowdfunding

We provide a secondary market - critical for meeting SIPP investment criteria

The competitors do not have a orderbook driven secondary market

Database Queuing System

Matching Engine

User places trade

Order placed in queue

Order matched

History, functionality

● Our system is benchmarked at up to 100 trades / second

● Wide range of functionality

○ Market

○ Limit

○ Good-to-Close

○ Good-to-Cancel

○ Fill or kill

○ Pro Rata

● Track record - we are exchange and P2P platform building specialists

○ www.therealasset.co.uk

○ www.moneyswap.com

○ www.assetmatch.com 8

Building blocks in placeTPI is ready to go

● Consumer Credit Act

● Exposure governed by Loan AgreementRegulation

Partnerships

Technology

Marketing

● Networks of HNIs

● Institutional property investors

● Tried and tested

● Scalabile + new features

● Experience in digital marketing

● Existing network in place

FLEXIBLE & LOW COST

SUPPLY & DEMAND ADDRESSED

COMPETITIVE ADVANTAGE

RAPID ROLLOUT

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Sourcing properties, investors and IB relationships

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Next steps...

Nov 14 Dec 14 Jan 15 Feb 15 Mar 15 Apr 15

V1 built and tested

Beta LaunchUX and feature

review

Soft launchFirst property

transaction completedV2 designs and features

implementedFull launch

Conclude partnership with major P2P platform

Conclude partnership with leading SIPP product distributor

Conclude partnerships with 3 PE property funds

Conclude partnerships with 2 property

developers

Conclude partnership with leading PCB agent

To come...

● Split property investment into fixed returns and variable returns

○ Competitors do not provide gearing

● Establishing ISAs

● New features

○ Sentiment gauge

○ Returns calculator

● Refinement of UX & UI

TPI has a long list of features to introduce

IRR 12.9%

IRR 5.5%

Gearing makes the investment even more compelling

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Experienced 10 man team in placeKey management include blend of property gurus, geeks and marketing vava voom

● Responsible for sourcing properties

● Significant property portfolioRalph Hazel

Executive PROPERTY

● Architect of technology

● Overseen several high-profile IT systemsDom Madden

CTO TECHNOLOGY

Jan Skoyles

Executive MARKETING ● Digital marketing guru

● The face of the Real Asset Company

Mike Read

COO OPERATIONS ● Corporate Finance at Evolution

● Founder of TPI

● Cenkos Institutional equity research

● Founder of TPI Peter Read

CEO INVESTORS

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● Av New Issue price: £1m

● Yearly turnover in secondary market: 10%

● Comm on purchase: 1%

● Comm on Sale: 1%

● Management Fee: 12.5%

● Av. Gross Yield: 2.4%

● New issues per year

Financial profileThe business is very operationally geared

Year Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6Cumulative 0 10 110 310 610 1110New 10 100 200 300 500 1000

EBITDA

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KEY SALES ASSUMPTIONS

Compelling proposition

● Seeking £250K - £500k○ Funds used to cover first 24 months operating costs○ SEIS qualifying

● Significant opportunitya. Site built and deployed

b. Industry leaders corner-stoning project

c. Strong team in place

d. Optimal business model regarding regulation, product mix and operational efficiency

e. Scalable and highly profitable

f. P2P market undergoing exponential growthg. Limited competition in this sub-sectionh. Partnership agreements with major P2P lender

The opportunity to get your foot in the door in this burgeoning market

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