30 September 2010
For professional investors only. Not suitable for retail clients.
Schroder Exempt Property Unit Trust
Quarter 3 2010 Report
www.schroders.com/seput
Schroder Property Investment Management Limited
31 Gresham Street, London EC2V 7QA. Registered No. 1188240 England
Authorised and regulated by the Financial Services Authority
30 September 2010
Contents
2
Schroder Exempt Property Unit Trust Quarter 3 2010 Report
Page
Investment Objective and Performance
3
UK Property Market Commentary
4
Strategy
5
Key Activities Over the Quarter
6
Performance
8
Databank
9
Unitholder Information
12
Important Information
14
30 September 2010
Schroder Exempt Property Unit Trust Quarter 3 2010 Report
Investment Objective and Performance
Trust Objective
The investment objective of Schroder Exempt Property Unit Trust (SEPUT or the Trust) is to achieve
a blend of income and capital growth for investors through investment in UK property. The Trust
seeks to provide a return of 0.5% per annum (net of fees) above its benchmark (Investment Property
Databank UK Pooled Property Fund Indices – All Balanced Property Funds Median) over rolling
three year periods.
UK Property Market Commentary

Broadly we expect that property yields will hold steady or drift slightly upwards over the next six to
twelve months (currently the all property initial yield is around 6.4%, according to IPD). Schroders’
assumption is that there is no double-dip recession which could trigger a further fall in rental values.

Given the likely inertia of both rental values and property yields over the next twelve months, we
expect that capital values will be broadly stable or drift slightly lower, leaving total returns close to
the rate of income return. The risk of any deviation from this is likely to be to the downside.

In this environment, we continue to favour sectors where space is relatively affordable and which
either provide a high rate of income return (e.g. industrials, South East offices), or where there is
already evidence of a recovery in rental values (e.g. central London offices).
Strategy

Reduce exposure to indirectly owned investments, particularly those with gearing.

Improve the quality and duration of portfolio income.

Sell or manage out existing development opportunities.
Key Activities Over the Quarter

The purchase of Building 8, Chiswick Park was completed for an initial £6.5 million.

£7 million of units in West End of London Property Unit Trust and £17 million of units in Hercules
Unit Trust were sold.

The entire holding in AH Medical plc was sold for £6 million.
Performance

Detailed performance commentary is provided on page 8 of this document.
Q3 2010
(%)
12m to 30
Sept 2010
(%)
3 yrs to 30
Sept 2010
(% pa)
5 yrs to 30
Sept 2010
(% pa)
SEPUT
1.9
20.6
-12.6
-1.7
IPD UK PPFI – All Balanced Property Funds Median*
1.9
18.4
-7.3
0.8
IPD UK PPFI – All Balanced Property Funds
Weighted Average**
1.9
18.8
-9.0
-0.3
Source: Investment Property Databank (IPD) UK Pooled Property Fund Indices (UK PPFI).
Performance is calculated on a net asset value (NAV) to NAV price basis plus income distributed, compounded monthly,
net of fees and based on an unrounded NAV per unit.
*SEPUT’s benchmark. The Trust’s benchmark has changed over time and a composite for 10 years is available upon
request.
**This measure is widely adopted across the property industry.
3
30 September 2010
Schroder Exempt Property Unit Trust Quarter 3 2010 Report
UK Property Market Commentary
Occupational Market

The UK economy grew surprisingly quickly in the second quarter of 2010, expanding by 1.2%
compared with the first quarter. However, although encouraging, we expect that the economy will
lose some momentum through the second half of the year as the boost from re-stocking inventories
fades and as cuts in government spending start to bite.

While all property rental values now appear to have reached a trough 10-12% below their peak in
2008 (source: IPD Monthly Index), the sluggish outlook for the UK economy and the significant
amount of vacant second-hand space in many markets suggests that rental values are unlikely to
recover immediately.

The principal exception is central London offices which have already seen a modest increase in
rental values of 3% since the start of the year (source: IPD). To date, rents in the City have
rebounded faster than the West End. In part, this reflects the continuing attractions of London as a
global financial centre to foreign banks (e.g. China Construction Bank, Nomura, Standard Bank)
and in part it reflects the fact that office rents are now relatively affordable by historical standards,
following a 25% fall in estimated rental values in 2008-2009.
Investment Market

Broadly we expect that property yields will hold steady or drift slightly upwards over the next six to
twelve months (currently the all property initial yield is around 6.4%, according to IPD). Schroders’
assumption is that there is no double-dip recession which could trigger a further fall in rental values.

As noted last quarter, while valuations of secondary property may come under pressure, there is
still solid demand from institutions and other investors for good quality properties with secure
incomes. Furthermore, the current gap of 3.5% between the all property initial yield and 10 year
gilts offers some comfort.

The attitude of property lenders will continue to affect the UK market for some years to come. The
evidence to date is that those with the biggest loan books (RBS, Lloyds and Ireland’s NAMA) have
acted responsibly in working out or disposing of assets to shrink their balance sheets. Any change
to their working practices could have a destabilising effect, particularly to secondary property where
their exposure is concentrated. However, we do not expect any large sell off of these assets.
Outlook

The decline in property yields which lifted capital values and total returns through the second half of
2009 and first half of 2010 has broadly fizzled out, as investors wait for more definite signs of a
sustained recovery in the economy and tenant demand. The exception is central London offices
and retail where capital values continue to edge up.

Given the likely inertia of both rental values and property yields over the next twelve months, we
expect that capital values will be broadly stable or drift slightly lower, leaving total returns close to
the rate of income return. The risk of any deviation from this is likely to be to the downside.

In this environment, we continue to favour sectors where space is relatively affordable and which
either provide a high rate of income return (e.g. industrials, South East offices), or where there is
already evidence of a recovery in rental values (e.g. central London offices).

The October spending review will shed more light on public sector spending cuts. While Schroders
anticipates slow but steady GDP growth through 2011 and 2012, there is a possibility that growth
could stall in those regions such as the North East of England, Northern Ireland and Wales. This is
where the public sector accounts for more than a quarter of direct total employment and impacts a
large number of associated private sector suppliers.
4
30 September 2010
Schroder Exempt Property Unit Trust Quarter 3 2010 Report
Strategy
With evidence that a two tier investment market is emerging, we continue to review potential
opportunities selectively. In the short term this may lead to a relatively high cash weighting and a lower
than average distribution yield. However, more than half of the current cash balance is earmarked for
specific projects. Further, in the medium term we hope our selectivity will enable us to benefit from the
more attractive opportunities that may become available.
Our strategy of repositioning the portfolio continued in the third quarter with the purchase of a development
prelet to QVC at Chiswick Park and further sales of indirectly owned investments and non-income
producing assets. Taken together these continue to improve the income profile and reduce portfolio risk.
This is in line with our strategy of:

Reducing exposure to indirectly owned investments, particularly those with gearing. At the quarter
end indirects totalled 18% of the portfolio, down from over 25% eighteen months ago. The sale of
another £10 million of Hercules Unit Trust since the quarter end reduces this further. Unitholders
should be aware that a number of the remaining holdings – while owned indirectly – have no
gearing. Recent sales have been concentrated on those with gearing.

Improving the quality and duration of income. The purchase of the building in Chiswick Park, once
occupied next year, builds upon purchases of 'bond type' investments in the first quarter this year.
The average unexpired lease term at the end of September increased to 8.4 years, from 7.6 years
eighteen months ago.

Selling or managing out existing land holdings and development opportunities. The sale of further
development sites are expected to complete in the fourth quarter of 2010. The proceeds of sales
will be recycled into income producing assets.
We are working hard to generate value from our existing portfolio through focused asset management
initiatives. While the occupational market remains challenging, we are working closely with existing
and potential occupiers to retain a low level of voids. A number of new lettings during the quarter
contributed to a reduction in the Trust’s void rate.
At 31 March 2009
At 30 September 2010
18.4%
[17.6%*]
26.1%
14.6%
57.6%
67.0%
16.3%
[67.8%*]
Direct and cash
Gearing (% NAV)
Average lease length
Joint ventures
20.6%
10.5% [9.8%*]
7.6 years
8.4 years
*Estimated position following completed sales in October 2010
5
Indirect holdings
30 September 2010
Schroder Exempt Property Unit Trust Quarter 3 2010 Report
Key Activities Over the Quarter
Transactional Activity
Activity during the quarter was focused on the continued implementation of portfolio strategy:
improving the Trust’s income profile and reducing risk. By the end of the quarter, indirectly owned
assets had reduced by 2% compared with 30 June 2010. Perhaps more importantly the level of
gearing reduced by 4%. At the quarter end, gearing stood at 10.5% of net asset value (NAV),
around half of its level at the start of the year. Further sales early in the fourth quarter has reduced
this to below 10% of NAV. Please refer to the Databank section for further details.
Purchases
QVC Building, Chiswick Park, London
Building 8 was bought from Chiswick Park Unit Trust (ChisPUT) as an
office development for an initial £6.5 million and an expected valuation on
completion of around £50 million. The 124,000 sq ft office building was
bought with a prelet signed with QVC for a term of 21 years and a
construction contract in place. The agreed rent is £30 psf, with fixed
rental uplifts of 2.5% per annum at the first two rent reviews.
The QVC Building (as Building 8 will be known) is located in Chiswick
Park in West London, and is one of the most prestigious business parks
in the UK. In all, it provides a total of 1.2 million sq ft of office space and
the property is the first building on the Park to be owned outside of the
trust. As a closed ended trust, ChisPUT may soon be liquidated through
the sale of the Park in whole or in part. As a result, a term of the
purchase agreement allows ChisPUT to buy back the QVC Building
before July 2013 at a price which would crystallise a further profit to
SEPUT.
Sales
Hercules Unit Trust (HUT)
West End of London Property Unit Trust (WELPUT)
£7 million of units in WELPUT and £17 million of units in HUT were sold
during the quarter. Since the market trough fifteen months ago, both
funds have produced returns well in excess of the market through a
combination of good quality underlying property and gearing. Having
benefited from valuation uplifts, gains have been realised and will be
recycled into direct property assets. The distribution yield on both funds
is relatively low, so we expect this switch to be accretive to SEPUT’s
distribution yield in time.
AH Medical Properties plc
The entire holding in AH Medical plc, a listed company investing in
primary care premises, was sold for £6 million. The shares are traded
on PLUS markets, a junior UK stock exchange, and the sale
crystallised gains over the past eighteen months.
Although a small holding, the sale significantly reduces SEPUT’s off
balance sheet gearing exposure.
6
30 September 2010
Schroder Exempt Property Unit Trust Quarter 3 2010 Report
Purchases
Sector
Purchase price £m
Net initial yield
QVC Building, Chiswick Park, London
Office
6.5¹
n/a
¹ Total commitment including initial purchase price is £37.7million
Sales
Sector
Sale price £m
Net initial yield
West End of London Property Unit Trust²
Office
7.0
3.2³
Hercules Unit Trust²
Retail Warehouse
17.0
1.9³
AH Medical Properties plc
Other
6.0
2.6³
² Schroder in-house funds
³ Distribution yield
Asset Management
Number of new lettings
Total income (£)
10
£862,237
Number of rent reviews
Total income (£)
12
£2,104,958
Number of lease renewals
Total income (£)
10
£576,111
Ten new lettings were completed during the quarter providing additional income of over £800,000
per annum. Key lettings included:

Part of the fourth floor, Beaumont House, Kensington Village. Following the lease expiry to
Chello Media earlier this year, a new 10 year lease was signed with ADM Promotions UK
Limited. Kensington Village has established itself as a favoured location for media
companies and the unit was vacant for only a short period prior to the letting. Rent was
agreed at £167,000 per annum, in line with estimated rental value (ERV).

Unit 7, Electra, London E14. Following the administration of the previous tenant, a food
distributor, Unit 7 has been relet to a specialist print firm at £174,000 per annum, around 6%
above ERV. Electra is one of several prime South East industrial estates owned by SEPUT
where tenant demand remains active.

Palace House, London SE1. A lease expiry on the first floor allowed us to relet the space to
Kaplan Financial, a financial training company and existing tenant in the building. The
agreed rent is £94,000 per annum, 14% above ERV.
7
30 September 2010
Schroder Exempt Property Unit Trust Quarter 3 2010 Report
Performance
Total Trust Returns
Q3 2010
(%)
12m to 30
Sept 2010
(%)
3 yrs to 30
Sept 2010
(% pa)
5 yrs to 30
Sept 2010
(% pa)
SEPUT
1.9
20.6
-12.6
-1.7
IPD UK PPFI – All Balanced Property Funds Median*
1.9
18.4
-7.3
0.8
IPD UK PPFI – All Balanced Property Funds
Weighted Average**
1.9
18.8
-9.0
-0.3
Source: Investment Property Databank (IPD) UK Pooled Property Fund Indices (UK PPFI).
Performance is calculated on a net asset value (NAV) to NAV price basis plus income distributed, compounded monthly,
net of fees and based on an unrounded NAV per unit.
*SEPUT’s benchmark. The Trust’s benchmark has changed over time and a composite for 10 years is available upon
request.
**This measure is widely adopted across the property industry.
Over the past twelve months SEPUT has outperformed its benchmark. Since the market reached a
trough in June 2009, the Trust’s relative performance has improved substantially and we hope this
will continue as the portfolio is repositioned. An early analysis of the Trust’s performance indicates
the following factors contributed to relative performance over the period:
Positive Drivers

Several of the sector specialist indirect funds performed above benchmark, including West End of
London Property Unit Trust and Henderson UK Retail Warehouse Fund.

Good quality properties such as Monks Cross Retail Park and Palace House, London SE1
performed well over the past year. Multi-let properties of the right specification in the right location
can generate competition for space, and therefore rental growth. In a challenging economic
environment this underpins valuations and generates strong performance.

The profitable sale of assets (WELPUT, Charlton and Uxbridge (post quarter end)) at above
valuation boosted total returns.
Negative Drivers

Land and potential regeneration sites such as Bracknell town centre, Croydon and in the City have
underperformed the market. Although Bracknell has a running yield of over 6%, the lack of income
generated by land detracted from short term total returns. For these type of assets, performance
should be driven by the recovery of the occupier markets and asset management initiatives. In
some instances, we are looking to realise gains through their profitable sale to developers. It is also
important to note that the recent outperformance has been achieved despite the short term drag of
these more value add strategies where the potential to drive performance into the recovery still
remains an exciting prospect.

8
The sale of units in Hercules Unit Trust at a discount to NAV detracted from total returns. From a
trust perspective, however, we believe this is in the best interests of unitholders. We also note that
this needs to be set against gains on the sale of other direct and indirect assets.
30 September 2010
Schroder Exempt Property Unit Trust Quarter 3 2010 Report
Databank
Trust information
At 30 September 2010
Offer price per unit
£32.74
Mid price per unit
£31.71
Bid price per unit
£30.69
NAV per unit
£31.25
Distribution yield¹
4.3%
Bid-offer spread (% offer price)
6.25%
¹ Please note that the distribution yield is calculated on the gross distribution paid (gross of tax, net of expenses and fees)
for the last twelve months as a percentage of the latest NAV per unit.
Investment portfolio
At 30 September 2010
Net asset value (NAV)
£1,207,219,513
Gross asset value (GAV)
£1,320,912,640
Property value
£1,089,947,237
Cash at bank
£116,685,634
Uncommitted cash
£89,120,245
Net initial yield (look through analysis)
5.8%
Equivalent yield (look through analysis)
6.6%
Net reversionary yield
6.9%
²
Void rate (look through analysis)
6.6%
Number of holdings
58
Number of tenants (look through analysis)
756
Debt
10.5% (% debt / NAV)
0.9% (% net debt / NAV)
²
Voids include the direct portfolio, all joint ventures plus the quoted void rate on the indirect holdings but exclude land and
developments. Data for Henderson, AH Medical and UNITE at Q2 2010. IPD methodology used which treats tenancies in
administration as not being voids until formally disclaimed.
9
Unitholder information
At 30 September 2010
Number of units in issue
38,631,076
Number of units redeemed over the quarter
-
Number of units issued over the quarter
6,537
Number of units matched over the quarter
328,110
Value of units matched over the quarter
£10,180,665
Unit availability
Please phone Tom Dorey on +44 (0)20 7658 3020 or +44
(0)20 7658 6000
30 September 2010
Schroder Exempt Property Unit Trust Quarter 3 2010 Report
Portfolio Analysis at 30 September 2010
Sector Exposure including Cash, % GAV
Standard Retail
8.8%
6.6%
1.9%
7.0%
19.4%
Shopping Centres
Retail Warehouses
Central London Offices
19.2%
Rest of UK Offices
15.4%
21.7%
Industrial
Other
Cash
Source: Schroders, subject to rounding.
GAV: gross asset value
Portfolio Structure, % NAV
18.4%
Directly owned assets and cash
Joint ventures
14.5%
67.1%
Indirect assets
Source: Schroders
NAV: net asset value
Tenant Profile, % Contracted Rent
Fujitsu Services Limited 4.0%
QVC 3.6%
British Telecommunications PLC 3.4%
Lloyds TSB Bank Plc 2.9%
Exel Ltd 2.7%
TBWA UK Group Limited 2.0%
Sportsdirect.com Retail Ltd 2.0%
B&Q Plc 2.0%
Tullow Oil Plc 1.6%
DSG Retail 1.5%
All other tenants 74.3%
Source: Schroders
10
30 September 2010
Schroder Exempt Property Unit Trust Quarter 3 2010 Report
Relative Segment Positions, %*
Underweight
Absolute Segment Positions, %
Overweight
-2.0%
-6.2%
-4.2%
-0.5%
1.6%
7.0%
0.0%
9.4%
-6.2%
-1.0%
2.4%
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%
SEPUT
Benchmark*
Standard Retail - South East
4.5
6.5
Standard Retail - Rest of UK
2.1
8.3
Shopping Centres
2.0
6.2
Retail Warehouses
19.4
19.9
Offices - Central London
15.4
13.8
Offices - South East
15.8
8.8
Offices - Rest of UK
5.9
5.9
Industrial - South East
17.9
8.5
Industrial - Rest of UK
1.3
7.5
Other
7.0
8.0
Cash
8.8
6.4
12%
Source: Schroders, 30 September 2010
*Positions relative to IPD UK Pooled Property Fund Indices – All Balanced Funds Weighted Average. The weighted
average has been used as this level of information is not available in the median.
Data subject to rounding
Top Ten Holdings
Top ten holdings
Sector
% of NAV
Monks Cross Shopping Park, York
Retail Warehouse
5.4
Bracknell
Hercules Unit Trust1
Retail and Office
Retail Warehouse
4.9
4.5 (3.7*)
Schroder Emerging Retail Property Unit Trust1
Standard Retail
4.1
Acorn Industrial Estate, Crayford
Industrial
3.9
Matrix, Park Royal, London NW10
Industrial
3.7
1
Chiswick Park Unit Trust
Office
3.6
Fujitsu Office Complex, Central Park, Manchester
Office
3.4
Parker Tower, London, WC2
Office
3.3
Mermaid Quay, Cardiff
Leisure
3.2
Source: Schroders, 30 September 2010
1
Schroder in-house funds
* A further £10 million was sold at the beginning of October 2010
11
30 September 2010
Schroder Exempt Property Unit Trust Quarter 3 2010 Report
Unitholder Information
The following is a brief summary of certain provisions relating to the Trust. For full details, reference
should be made to the Trust Deed which is available from the Manager on request.
Management and Administration
Trustees:
The Royal Bank of Scotland plc
Manager:
Schroder Property Investment Management Limited
Property Manager:
Schroder Property Investment Management Limited
Valuer:
BNP Paribas Real Estate
Auditors:
PricewaterhouseCoopers LLP
The Supervisory Board
Members of the Supervisory Board and their details are shown in the Report and Accounts. The
principal role of the Supervisory Board is to set out strategic investment and borrowing guidelines for
the Trust. It also monitors risk control and ensures that principles of sound corporate governance
are observed in the management of the Trust’s assets. It approves the key appointments made in
relation to the Trust and the remuneration of the Manager and Property Manager.
Issue of Units
New units are issued monthly on the Valuation Date and payment must be received by the Trustee
within the first five working days of the following month. Title to units will be evidenced by an entry in
the register of unitholders. The dealing cut off time is noon on the Valuation Date.
Redemption of Units
To redeem units, a written notice must be received by the Manager prior to a quarterly redemption
notice date, being 31 March, 30 June, 30 September and 31 December. Unitholders will then be
advised of the fair value of each unit (usually bid price) within six weeks and the proceeds will be
paid on the next quarterly redemption notice date. In common with other property unit trusts, the
Manager has the power, subject to prior written approval from the Supervisory Board, to direct that
the date of payment of redemption proceeds to unitholders may be postponed until a subsequent
Redemption Payment Date, not later than two years after the first Redemption Payment Date. This
power must be exercised, and unitholders duly notified, within six weeks of the relevant Redemption
Notice Date.
Valuation
The property portfolio is independently valued on the last working day of each month. The offer and
bid prices are set on the basis of this valuation.
Bid/Offer Spread
The bid/offer spread is 6.25%. Bid and offer prices are reviewed regularly by the Manager to ensure
new and existing investors are treated fairly. These may be varied without notice, although in
practice we intend to inform investors in advance of any change.
Costs and Fees
The following fees and charges will be payable:
Trustee’s fee:
0.0224% per annum on the first £500 million of the Trust’s Net Asset Value
0.0125% per annum on any excess over £500 million of the Trust’s Net
Asset Value
Manager’s fee:
0.3% per annum of the Trust’s Net Asset Value
Property Manager’s fee: 0.4% per annum on the Gross Value of direct holdings and capital cash
12
30 September 2010
Schroder Exempt Property Unit Trust Quarter 3 2010 Report
Where the Trust invests in property related investments which are managed by an associate of the
Manager or the Property Manager, fees earned by the associate on the Trust’s net investment, are
not rebated to the Trust, with the exception of SERPUT, where the Trust receives a rebate of 0.3%
on SERPUT’s gross property value (based on the Trust’s holding). These indirect managers levy
their own fees which may include performance fees.
The Manager’s and the Property Manager’s fees are charged in full to the Income and Expenditure
Account, 50% of such fees are allocated to capital and not deducted from distributions for the
purpose of determining the value of such distributions.
The remuneration of the Manager and the Property Manager is set by the Supervisory Board.
Total expense ratio (TER): estimated TER is 0.85% of NAV at 30 September 2010.
Income Distributions
Income of the Trust is distributed monthly on the fifteenth working day of the month.
Investor Reports
Unitholders receive a quarterly report. The annual report and audited financial statements are
published at the Trust’s year end date of 31 March. An interim report and unaudited financial
statements are published at 30 September.
Responsible Property Investment Policy
The Manager has a policy on responsible property investment which is available on request.
Investment and Borrowing Powers
The Trust Deed requires that the underlying property of the Trust is managed in accordance with the
investment and borrowing powers set out in the Trust Deed. Within these investment and borrowing
powers, the Supervisory Board may set additional investment and borrowing powers to which the
Property Manager must adhere in conducting its property investment management activities.
Investment Restrictions
The holdings and operations of the Trust will be subject to investment restrictions monitored by the
Supervisory Board. These are available upon request.
Fund Codes
Code
Bloomberg
SCEXPUT LN
ISIN
000786612
Lipper Reuters
60011163
Sedol
0786612
Manager Contacts
Andrew Straughair
Product Manager
andrew.straughair@schroders.com
Switchboard
+44 (0)207 658 6000
Direct Line
+44 (0)207 658 4146
13
Hanne Hooton
Client Executive
hanne.hooton@schroders.com
Switchboard
+44 (0)207 658 6000
Direct Line
+44 (0)207 658 6787
Lisa Emmerson
Fund Services
lisa.emmerson@schroders.com
Switchboard
+44 (0)207 658 6000
Direct Line
+44 (0)207 658 3889
30 September 2010
Schroder Exempt Property Unit Trust Quarter 2 2010 Report
Important Information
Schroder Exempt Property Unit Trust (the Trust) is a collective investment scheme within the meaning of Section 235 of the
Financial Services and Markets Act 2000 (“FSMA”). The Trust is not an authorised unit trust scheme, OEIC or recognised
scheme within the meaning of the FSMA and therefore constitutes an unregulated collective investment scheme. As an
unregulated collective investment scheme, the distribution and promotion of units are restricted, for the purposes of Sections 21
and 238 of the FSMA, to persons who are themselves authorised under the FSMA or who otherwise fall within the categories or
exceptions made under Sections 21 and 238.
Accordingly, this material is directed at market counterparties and authorised persons; intermediate customers; existing investors
in this or a substantially similar fund; and existing clients and newly accepted clients of the Schroder Group where reasonable
steps have been taken to ensure that investment in the Trust is suitable. This material should not be relied upon by persons of
any other description.
Investment in the Trust is only available to Exempt Funds. In general terms an Exempt Fund is a person wholly exempt from
capital gains tax or corporation tax on capital gains. Investment will only be accepted following the completion of a Form of
Authority for the Trust which contains certain warranties and indemnities provided by the potential investor, particularly regarding
the exempt status of the investor and confirmation from HM Revenue & Customs that the potential investor is an Exempt Fund.
Investors and potential investors should be aware that past performance is not a guide to future returns. No warranty is given, in
whole or in part, regarding the performance of the Trust and there is no guarantee that the investment objectives of the Trust will
be achieved. The price of units and the income from them may fluctuate upwards or downwards and cannot be guaranteed.
Property-based pooled vehicles, such as the Trust, invest in real property, the value of which is generally a matter of a valuer's
opinion. It may be difficult to deal in the units of the Trust or to sell them at a reasonable price because the underlying property
may not be readily saleable, thus creating liquidity risk. There is no recognised market for units in the Trust and, as a result,
reliable information about the value of units in the Trust or the extent of the risks to which they are exposed may not be readily
available.
Neither this document/presentation nor any other statement (oral or otherwise) made at any time in connection herewith
constitutes an offer to sell or exchange units in the Trust or any other fund or product and is not soliciting an offer to buy or
exchange and does not constitute an invitation to subscribe for, buy or exchange any units in the Trust or any other fund or
product in any jurisdiction where the offer, sale or exchange is not permitted. Potential investors are advised to obtain and review
independent professional advice and draw their own conclusions regarding the economic benefits and risks of investment in the
Trust as well as the legal, regulatory, tax and accounting aspects in relation to their particular circumstances.
Any investment in the Trust must be based solely on the prospectus, or any other document issued from time to time by the
Manager of the Trust in accordance with applicable laws.
The opinions, beliefs expectations or intentions, unless otherwise stated, are those of Schroder Property Investment Management
Limited (SPrIM). All information and opinions contained in this document/presentation have been obtained from sources we
consider to be reliable. No responsibility can be accepted for errors of fact or opinion. Reliance should not be placed on the
views and information in this document/presentation when taking individual investment and/or strategic decisions.
A potential conflict with the Manager’s duty to the unitholder may arise where a transaction is effected for the Trust in the units of
another fund(s) managed by the same Manager or an Associate of the Manager. However, the Manager will ensure that such
transactions are effected on terms which are not materially less favourable than if the potential conflict had not existed.
The forecasts included in this document/presentation should not be relied upon, are not guaranteed and are provided only as at
the date of issue. Our forecasts are based on our own assumptions which may change. We accept no responsibility for any
errors of fact or opinion and assume no obligation to provide you with any changes to our assumptions or forecasts. Forecasts
and assumptions may be affected by external economic or other factors.
This document/presentation is intended for the use of the addressee or recipient only and may not be reproduced, redistributed,
passed on or published, in whole or in part, for any purpose, without the prior written consent of SPrIM.
For the purposes of the Data Protection Act 1998, the data controller in respect of any personal data you supply is SPrIM.
Personal information you supply may be processed for the purposes of investment administration by any company within the
Schroder Group and by third parties who provide services and such processing and which may include the transfer of data outside
of the European Economic Area. SPrIM may also use such information for marketing activities unless you notify it otherwise in
writing.
Schroder Property Investment Management Limited
31 Gresham Street
London
EC2V 7QA
Registered No. 1188240 England.
Schroder Property Investment Management Limited is authorised and regulated by the Financial Services Authority.
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