KPMG - IERE

Part X
Principal Bases and Assumptions
The principal bases and assumptions used in this Prospectus in respect of the financial periods ending
30 September 2008 and in particular in respect of the initial target annualised dividend yield set out
in Part I of this Prospectus are that:
(a) at Admission the Property Portfolio is as detailed in Part V and the passing rent is A31.4
million per annum;
(b) Admission occurs on or before 20 December 2006 and, as set out in Part V, all the properties
which the Company is Committed to Acquire before Admission (with an aggregate value
according to the Independent Valuer as at 30 September 2006 of A127.4 million) are so acquired
and the remainder (with an aggregate value according to the Independent Valuer as at 30
September 2006 of A79.7 million) are acquired after Admission;
(c) the aggregate of the value of the Property Portfolio and the Group’s net current assets at
Admission is A558.3 million;
(d) the Group acquires further properties at an aggregate cost (inclusive of property acquisition
costs) of A284.5 million. Such properties include those Committed to Acquire properties which
are expected to be acquired after Admission at an aggregate cost (including property acquisition
costs) of A82.2 million at a passing rent of A5.0 million per annum. Acquisitions of properties
which the Company is not Committed to be Acquired are phased on a quarterly basis from 1
January 2007 to 30 September 2007 at a net initial yield of 6.5 per cent. per annum;
(e) 63.0 million Shares are issued by the Company pursuant to the Offer at the Offer Price of 200p
per Share and 103,875,705 Shares are in issue at Admission;
(f) the total expenses, fees and commissions relating to the Offer borne by the Company are 5.8 per
cent. of the Initial Gross Proceeds, or A10.8 million;
(g) at Admission A171.3 million remains outstanding under the Bank Facility. Further sums are
drawn down to fund the acquisitions referred to in paragraph (d) above on the basis that each
property is financed as to 60 per cent. with debt and as to 40 per cent. with cash. The debt
carries an interest rate of 4.46 per cent. per annum (inclusive of hedging and other costs). There
is no amortisation of bank debt. Commitment fees of 0.25 per cent. per annum are payable on
the outstanding undrawn amount on a quarterly basis. An arrangement fee of 0.1 per cent. of
the principal amount of the Bank Facility is paid as at Admission;
(h) the Bank Facility will be refinanced in its entirety on 30 June 2007 and will attract a weighted
average interest rate of 4.35 per cent. per annum (inclusive of hedging and other costs);
(i) the annual running costs of the Group (including investment management fees, Independent
Valuer’s fees, Directors’ fees, Administrator’s fees, Custodian’s fees, other costs of managing the
Property Portfolio (including property costs not recoverable through service charges), costs of
operating the companies holding the properties and intermediate companies, legal and other
professional fees and irrecoverable VAT) following the acquisition of the properties referred to
in paragraph (d) above are 1.4 per cent. per annum of gross assets and are paid quarterly in
arrear;
(j) no performance fees are payable to the Investment Manager;
(k) the effective tax rate following the acquisition of the properties referred to in paragraph (d)
above is not greater than approximately 6.0 per cent;
(l) the Company pays gross dividends on a semi-annual basis in May and November, totalling
A0.1774 per Share as described in Part I of this Prospectus. The first dividend will be pro rated
in respect of the period from Admission to 31 March 2007;
(m) an amount equal to the Net Cash Income of the Group is received by the Company in order to
fund the assumed dividend payments;
(n) the issued share capital of the Company does not change following Admission;
(o) rental growth is in accordance with indexation on a country by country basis;
(p) capital value moves in line with rental value growth and rental income;
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