Mansion StudentAccommodation Fund

“Student Property has outperformed every other commercial property class”

Source: Knight Frank 2012

1

Mansion Model

• Acquire sites from Universities, Property Funds

and private owners

• Refurbish to Mansion standard

• Let directly to post 1st year students

• Provide on site hospitality

• Maintenance of property

• Manage rental payments and chase arrears

• Provide security – 24/7 and CCTV

• Properties are sold to Institutions/Funds

2

3

The Portfolio

MSAF London Portfolio

4

Progressto date

• Mansion have redeveloped property in London, Edinburgh, Glasgow, Manchester, Bristol, Oxford,

Newcastle, Birmingham, Nottingham, Liverpool, Leicester, Leeds, Sheffield, Aberystwyth and Colchester

• £515M of development value to date

• Over 7600 beds under management

• 6.7% average rental initial yield

• 5,000 bed pipeline

5

Demand for Student Housing• Total applications for 2012/13 intake* reported at 634,086; a decrease of 51,783 from 2011/12

• Overall, applications for undergraduate HE places have fallen however not significantly in relation to the number of places available

• UCAS reported a 3.5% increase in applications across the UK for the 2013/14 intake**

• Reports confirm applicants from EU countries have increased by 4.9% and outside the EU of 9.6% for 2013/14 intake**

• International students tend to choose purpose-built accommodation in the UK due to security, location and facilities

• India is forecast to overtake China as the world’s fastest growing source of globally mobile students

*as of 23 August 2012 / **as of January 2013

Source: UCAS, Savills, CBRE, Knight Frank

6

“The number of students attending university outside their own country is forecast to more than double by 2025”

Growth in Student Numbers;Applicants, Places and Fees

7

Growth in student numbers chart CBRE

“According to Savills, indications are that demand for HE, even in the face of increased tuition fees will continue to outstrip the number of places available in 2012”

Source: Savills, CBRE

Top non-EU student nationalities at UK universities

Source: Knight Frank

“Higher education in the UK is exceptionally competitive on an international scale”

8

Insufficientsupply• More than 155,000 more students nationally renting in private rented sector (PRS) than in 2007 (CBRE)

• Dramatic 20% increase in student numbers over the last 10 years has left most universities short of accommodation due to lack of new halls

• Quality of university accommodation is old and un-modernised

• Savills believe UK universities will increase reliance on the private sector with universities likely to want to retain nomination rights

• Reported occupancy levels of 99%+ for 2011/2012 intake for most private operators of purpose-built halls, which saw the highest ever intake of students

Source: Knight Frank, Savills, CBRE

9

Knight Frank Student Accommodation Index

10

MSAF Fund Objective

Objective

• To provide investors with exposure to the UK private student accommodation market

Strategy

• To concentrate on purpose-built halls of residence in the UK’s top 30 student towns and cities. To achieve capital gains by focusing on sites where a combination of location, supply/demand imbalance and rental potential is greatest

Put simply…

• The fund offers the opportunity for your clients to diversify away from traditional asset classes such as equities, bonds, commercial property or commodities; or for investors with a pessimistic view of these asset classes to achieve a higher return than cash.

11

Why MSAF?

• Sub cell of protected cell company

• OEIC Authorised by the Guernsey Financial Services Commission

• Listed on Channel Islands Stock Exchange

• Monthly dealing with minimum 66 day notice period for redemptions

• Priced at NAV in £, $, € and SGD $

• Initial charge and rear end charge available

• Fund launched in December 2009

• Over £300m raised to date

• Summer lets to provide additional income

• No negative performance since launch

• 5 year rental guarantee on each property

12

Performance to date

13

Professionaladvisors• Custodian BNP Paribas (AA Rated)

• Administrator Active Fund Services

• Tax Adviser Price Waterhouse Cooper

• Auditor Ernst & Young (CII) LLP

• Valuation agent DTZ / Knight Frank

• Property adviser Mansion Property Management

• Investment adviser Dartmoor Capital Management

14

Contacts

Website: www.themansiongroup.co.uk

Email: sales@themansiongroup.co.uk

Telephone: +44 (0) 161 828 0580

Manchester Office Address1 Oakwood Square,Cheadle Royal Business Park, Cheadle,Cheshire.SK8 3SB

London Office Address 2nd Floor,Berkeley Sq. House,London W1J 6BD

15