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KIER PROPERTY INTEGRATED APPROACH, KIER GROUP PLCAn integratedapproachKier is in a rare position to deliver major propertysolutions through a fully integrated developmentstructure. As one of the UK’s largest combined property,construction and services companies, with access to awealth of resources and expertise, Kier can manage allaspects of projects, ensuring they are delivered on timeand to budget, whilst achieving the highest standards.Kier Group plcKier Group plc is quoted on the London StockExchange and is a member of the FTSE 250 index.Through the strength of Kier’s balance sheet,cash position and annual turnover, partners can beconfident that Kier is a company of substance witha long track record of delivery. In short Kier is a wellestablished long-term business partner.The business operates through three divisions:PropertyServicesConstructionKier Property invests, develops and asset managesacross all sectors. These include office, industrial, retail,leisure, health, education, affordable, mixed tenure,private homes and mixed-use developments, undertakenboth directly and through joint ventures with both thepublic and private sectors.Our open, honest and transparent approach is importantto the future of Kier’s business. Clients are given theassurance that in a relationship with Kier they are dealingwith a trustworthy partner.InvestManaging Kier’s interests in serviced assets procuredunder structured finance and as Public PrivatePartnerships (PPP), we focus on providing an integratedsolution, drawing on Kier’s wider expertise and offeringa one-stop solution to clients. Acting as promoter anddeveloper and then as equity investor manager andfacilities manager, our portfolio covers a wide range ofsectors having delivered a total of 49 new facilities inthe health, education, emergency services, care andlibraries sectors.DevelopWith economic uncertainty many occupiers face criticaldecisions regarding the real estate they occupy. ThroughKier’s diverse development skills, tailor made propertysolutions can be provided, ensuring occupiers get thebest value from their property. Kier’s strong cash positionalso offers flexibility in the type of financial transactionproposed. This can range from leasehold, freehold, orin some cases legacy transactions where land swapsare structured.ManageKier asset manages for local authorities and other publicbodies to obtain maximum value from property holdingswhilst providing improvements in day-to-day real estatemanagement. Kier is the strategic asset manager fora diverse property portfolio and actively manages agrowing number of public sector assets.01DEFRA Headquarters, Whitehall, London02

KIER PROPERTY CORPORATE RESPONSIBILITYConsiderateConstructorsSchemeCommunityengagementEnvironment& climatechangeMarketplacecustomers& suppliersWorkplacehealth &safetyWorkplaceemployees& trainingEstablishingcommunitiesHow we work: Our visionTaking a responsible and professional approach tobusiness is central to all we do and our corporateresponsibilty activity is embedded into and supports ourcore business, helping to improve our performance andregenerate communities.Our Corporate Responsibility (CR) strategy ensures thatwe design and manage buildings that integrate with theirsurroundings in physical and social terms and we payparticular attention to our environmental responsibilities.Business in the Community (BITC) CR Index has becomethe foundation for both our reporting and plan of action.We are benchmarked against both the industry at largeand our peers through the six key areas shown opposite.We have shown improvement year-on-year and aim toachieve Gold Status within two years.We tailor our CR activity to the needs of individualprojects to ensure that it fully meets and supportslocal communities and aligns with the strategic needsof our customers.The culture of equality throughout Kier fosters anenvironment of co-operation and mutual respectwherever we work and underpins the high quality ofour products and services.Kier involved in providing family homes in Zambia03 04

KIER PROPERTY NORTH KENT POLICE HEADQUARTERS02_North KentPoliceHeadquartersan integrated approachThis new environmentally sensitivebuilding represents part of the processof renewing the Police Authority’s oldVictorian estate.Peter Cox, Kent Police PFI Project ManagerThe benefits of having facilitiesto meet the needs of 21stcentury policing will be felt notjust by every officer and memberof staff but by the whole Kentcommunity and will result inofficers being freed up to dealwith issues that really matterto local people.”The three-storey building provides an impressive newdivisional headquarters on the outskirts of Gravesend.It includes accommodation for up to 472 officers and staff, anevidential and lost property store and a custody suite of 40cells, over 124,000sq ft. The project benefits environmentallyfrom a geothermal heat pump to aid space and hot waterheating and was built sensitively, due to the close proximityto an aquifer and local abstraction point.This project represents the second PFI undertaken bythe Authority and was constructed by Kier.Through our structured finance initiatives and equityinvestment, Kier has created a substantial Police HQ Centre.Without such an approach the Authority would not have beenable to make the financial investment required to modernisethe estate. The Kier one-stop integrated approach providedthe Authority with certainty of delivery and a long-terminvestment relationship.INVEST | DEVELOP | MANAGEClient: Kent Police AuthorityProject Role: Investor / ContractorValue: £66m NPV09 10

KIER PROPERTY ORDNANCE SURVEY03_OrdnanceSurveyinnovative structureThe transaction with OrdnanceSurvey (OS) represents the uniqueand flexible relationship with Kieras developer.At Practical Completion Vanessa Lawrence CB,Director General and Chief Executive of OSI am looking forward to movinginto Ordnance Survey’s newhome and seeing our staff settlein and enjoy their new workingenvironment. I know everyonewill enjoy working in the modernand dynamic building - onefitting Ordnance Survey’sinnovative and world-classbusiness.”A key factor in financing this development was theability of Kier to maximise value from the existing OSestate to part-finance the new BREEAM Excellentheadquarters building. By concluding a single transactionwith Kier for both the new headquarters and disposalof their existing site, OS has been able to avoidvalue leakage.The new HQ enables OS to introduce new workingmethods for its staff. The Kier team has worked veryclosely with OS and its advisers to ensure that thenew building meets all the necessary occupationalrequirements, and uses the space available in anefficient manner.INVEST | DEVELOP | MANAGEClient: Ordnance SurveyProject Role: Developer / ContractorValue: £34m11 12

KIER PROPERTY UNIVERSITY OF READING04_Universityof ReadingPartnershipsA partnership with the Universityof Reading (UoR) on itsWhiteknights campus.The brief from UoR was for a landmark 65,000sq ftenterprise centre to be designed and made as sustainableas possible. Design features include green and brownroofs, sun pipes, solar hot water heating and high efficiencychillers - all within a commercially viable project. The designhas been led by Kier working in partnership with UoR.In return for a land payment made by Kier, the Universitycommitted to a lease on institutional terms. The schemehas been developed on an open book basis with arevenue profit share agreement.INVEST | DEVELOP | MANAGEClient: University of ReadingProject Role: Investor / ContractorValue: £18mDavid Gillham,Director of Research & Enterprise ServicesWe selected Kier as ourpreferred developer at a verychallenging time in the economy.Their partnership approach,integrated corporate model andstrong balance sheet were allkey factors in their selection.From the outset they adopteda ‘can do’ attitude and workedwell with the client team todesign and deliver a bespokeenvironmentally friendly buildingthat met our key requirementsin particularly tight timescales.We view the project as a realsuccess and are proud of thelandmark building that has beendelivered and look forward tostrengthening our relationshipwith Kier in the future.”13 14

KIER PROPERTY OLD BATTLE HOSPITAL SITE05_OLD BATTLEHOSPITAL SITEcreating mixed-usecommunitiesThe scheme involved the developmentof 54 affordable homes and 11 openmarket appartments above a new60,000sq ft Tesco superstore.Builder & Engineer, editor Ross MacMillanThe Housing Project of the YearAward has always generatedhundreds of entries, but fewcut the mustard in terms oftimely completion, sustainabledesign and, of course, buildinga habitable place to live in.Time and again Kier has tickedthese boxes, and this year’swinning entry – the former BattleHospital site – was no different.”The former hospital site formed an important element of a widerregeneration programme to stimulate economic growth for thesurrounding area.The programme for completion of the residential homes inrelationship to the opening of the completed retail outlet wascritical. Special attention to detail was required in respect ofthermal and noise transmission issues, together with aco-ordinated fire strategy linking the retail store and thenew homes.The project won the prestigious ‘Housing Project ofthe Year’ at the Builder & Engineer awards.INVEST | DEVELOP | MANAGEClient: Southern Housing GroupProject Role: Investor / ContractorValue: £6m15 16

KIER PROPERTY HICHINGBROOKE TREATMENT CENTRE06_HINCHINGBROOKETREATMENTCENTREstructured financeThe project involves the provision of astriking, state-of-the-art, treatment centreat Hinchingbrooke Hospital, providinga full range of diagnostic and clinicalsupport services.Brian Gibbs, Trust FM DirectorThe facilities services provider(Kier) has worked closely withmyself and other members of theTrust’s Facilities Directorate toensure that the highest possibleclinical services are availableto patients. Because the PFIagreement results in a long-termrelationship, it is important thatgood communication exists atall times and this has been ourexperience.”The two-storey, 91,800sq ft facility was built by Kier Construction(Eastern) and Kier Services (Facilities Management) provides afull range of non-clinical services including cleaning, cateringand portering.The centre provides diagnosis and treatment for 50,000patients each year, and was designed taking into accountthe views of doctors, nurses and patients. The Centre wonthe ‘NHS Innovation Award’ in the Design & Build category.INVEST | DEVELOP | MANAGEClient: Hinchingbrooke Health Care NHS TrustProject Role: Investor / Contractor / ManagerValue: £85m NPV17 18

KIER PROPERTY RETAIL AND LEISURE07_retail andLEISUREBespoke Occupier solutionsKier continues to develop a mixedretail portfolio, whether as part of acommunity scheme where local retailfacilities are being offered on thehigh street, or for food and non-fooddevelopments.Our approach to development focuses on the occupiers’requirements and a need to avoid over-complex developmentsolutions wherever possible.Recent key clients include, John Lewis, Tesco Stores, Hennes,New Look, B&Q, Costa Coffee, Whitbread and Travelodge.INVEST | DEVELOP | MANAGEClient: Invista Real Estate ManagementProject Role: Developer19 20

KIER PROPERTY OLDHAM SECONDARY SCHOOLS08_OldhamSECONDARYSCHOOLStransforming educationHardial Hayer, Radclyffe head teacherOur school aimed to be the bestin the country. It looked goodon paper but the real thing isabsolutely stunning and beyondour wildest dreams. It truly is aschool of the future here today.”Working with public authorities, Kieris transforming the education ofschoolchildren.Our ability to review projects as developer, long-termservices provider and investor is unique. This ensures wecreate developments with enhanced value. Our desire isto establish durable and lasting partnershipsThe designs feature large multi-function internal andexternal ‘streets’, a variety of teaching and learningenvironments and the inherent flexibility to meet thechanging curricular needs in coming years.INVEST | DEVELOP | MANAGEClient: Oldham Metropolitan Borough CouncilProject Role: Investor / Contractor / FM ProviderValue: £97m NPV2122

KIER PROPERTY TRADE CITY09_TRADE CITYworking with occupiersTrade-city.co.ukWithin the traditional industrial estatemarket Kier has created the Kier TradeCity brand. High quality industrialdevelopments, in prime locations tosuit owner occupier business needs.Understanding what occupiers want is the most importantfactor in the rapid success of the innovative Trade City concept.Trade City schemes focus on the occupier, offering flexible andbespoke solutions coupled with value for money. So far, overone million sq ft of Trade City schemes have been developed.A large proportion of these have been purchased by owneroccupiers. Kier continues to expand the Trade City brand,seeking and acquiring additional sites in locations acrossthe UK.Part of Kier’s attraction in this market is the ability to offerboth freehold and leasehold buildings, thus allowing moreflexibility for the end user.INVEST | DEVELOP | MANAGEProject Role: Developer / ContractorRomfordEnfield Innova Park, Enfield Bicester Chelmsford Waltham Cross Weybridge Hemel Hempstead Chingford Crown Road, Enfield Exeter Uxbridge Sunbury Hayes23 24

KIER PROPERTY WALWORTH BUSINESS PARK10_WALWORTHBUSINESS PARKadding value throughasset managementKier has been selected as assetmanager and development partner forTest Valley Borough Council, whichwanted to enhance asset managementservices within its existing estateand stimulate regeneration anddevelopment opportunities.Peter Giddings, the Borough Council’sEconomic Portfolio Holder added:This is another way in whichthe Council is committed toimproving economic growth inTest Valley by revitalising theWalworth Business Park. I ampleased we have signed apartnership contract with Kierwho have satisfied us that theyhave the expertise to see bigchanges happen soon.”A local office is now open to ensure Kier has a presence on site.Through active asset management and developing vacant plots,Kier’s aim is to increase the Council’s income and regenerate akey core employment area for Andover.INVEST | DEVELOP | MANAGEClient: Test Valley Borough CouncilProject Role: Asset Manager/Development Partner25 26

KIER PROPERTY SHORTERS AVENUE, BIRMINGHAM11_ShortersAveNUE,BirminghamResidential DevelopmentsKier is an established house builderwith a strong regional focus.Currently developing over 500 units nationally in theprivate and mixed tenure sectors. With our commercial andresidental development skills Kier is now leading the way inmajor urban mixed-use regeneration.INVEST | DEVELOP | MANAGEProject Role: Developer / Contractor27 28

With strong cash balances and the skills to unlock value we remain keen to continue to grow the business, especiallywhere opportunities exist for occupier-backed developments. Should you have specific schemes where you think theKier approach could help, please do not hesitate to get in contact with me or one of the team.CONTACT_KIER PROPERTY LTD6 CAVENDISH PLACELONDON W1G 9NBT 020 7462 2750W KIER.CO.UK