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Message A unique opportunity to enter theNew Build Private Rental HousingMarketNovember 2024

MANAGING DIRECTORPaul StaleyAn opportunity to invest in Institutional Grade HousingWe are specialist operators in the residential built to rent (BTR) market with a focus on Single Family Housing (SFH). This sector typically belongs to large institutional or private equity investorswho develop new family homes in communities with anywhere from 40 to over 200 properties.We are offering a unique opportunity to deliver smaller scale built to rent schemes of 15 or more properties,to private investors. The scheme is designed for rental and to institutional investors standards andspecification enabling the potential smooth transition into an institutional fund on exit.We aim with your assistance and our expertise to develop institutionally attractive developments and thensell them on to institutional investors once seasoned and stabilised, as these small scale opportunities falloutside their risk appetite for development but not when yielding. We plan to leverage development finance to construct more homes than your capital alone would allow.While your funds will be committed during the development and rental phase, this strategic approachfocuses on maximizing long-term capital appreciation rather than immediate income.Your return on investment is generated on the sale of the portfolio. Value is created by the initialdiscount we secure against market value, rental growth during the hold period and yield compression.

REASONS TO INVESTThe (SFH BTR) market is gaining notable momentum, as demonstrated by increasing interest frominstiutional investors, indicating their confidence in the potential for strong returns.According to Savills November market update SFH has a key part to play in the UK residentialinvestment market with SFH BTR making up over half of the total BTR investment in the last year.Housebuilders are creating smaller unit types specifically designed for the rental market; a key criteriainvestors often prioritise.For years the UK has been facing a significant shortage of high-quality rental housing, with demandconsistently outstripping supply and there are no indications that this trend will change.WHY IS THIS A GOOD INVESTMENTStrong Demand: There's a persistent demand for good quality, energy efficient rental properties in theUK, as evidenced by high occupancy rate in excess of 98.5% over the last 12 months.Stable Income: SFH BTR provides a consistent and predictable income stream with rents growing onone of our current funds at 6.70% over the last 12 months. Rent arrears are proactively managed and sitat just 0.46% over the last 12 months.Capital Appreciation: You are buying at a discount to current open market value and house prices arenow rising again. Rental growth drives increasing yields so the alternative value as an investment alsoincreases. Professional Management: We will handle everything from finding a suitable site, negotiating thecontract with the housebuilder, ensuring the properties are built to the required specification, findingtenants, tenant management to maintenance, reducing the burden on an investor and optimizing theprofitability of the investment. Economies of Scale: Investing in schemes with multiple rental units can offer cost efficiencies inmaintenance and management compared to individual rental properties.Diversification: Adding property, particularly build-to-rent properties, to an investment portfolio canhelp diversify risk by spreading investments across different asset classes.The homes: All of the homes are built to the very latest building standards with EPC ratings of A or B.Institutional Investors now demand fossil fuel free housing with solar panels and EV charging pointsand this is built into our specification. As brand-new homes, there are no retro fit requirements,maintenance costs are inexpensive in the early years and tenant satisfaction is high. Built to Rent (BTR) is simply building new homes for the private rental market. Single Family Housing (SFH)is a sector within that market focused on providing homes in locations suitable for families, typically withgood local amenities, transport links and schools. These are mainly two and three bed houses insuburban areas with some schemes also including low rise apartments. WHAT IS SFH BTR?

Investor£2m-£10m Cash80% Equity£3m - £15M Debt20% EquitySPV LtdCo.3 to 5 yearsSplit Sales ProceedsEXIT£Net Rental Income lessfinancing costs as incomeThe ModelYour capital contribution will be payable on signing of contracts and held in a client account with periodicdrawdowns for agreed expenditure and certified stage valuations through the build period.The investor and ourselves will sign a joint venture agreement setting out in detail how we will operate theinvestment.We will create a special purpose vehicle (SPV) limited company allocating shares between the investor andourselves in accordance with our agreement. The investor will be invited to be appointed director, we willalso be a corporate director of the SPV along with nominated officers from Wise Living.We will be responsible for all administrative processes and management of the investment. We will managetenancies and the properties under our Wise Living brand, the investor will be expected to concur with thevalues and policies of that brand and will have no day-to-day involvement in such management.We will provide quarterly reports to the investor and will arrange review meetings accordingly. The investor will have the final say on site selection and the timing of the sale of the assets.

We believe that Wise Living offers an unrivalled capability to offer the complete range of services requiredto both build and then manage single family housing:We have forged strong partnerships with housebuilders capable of executing smaller-scale projectsthat are frequently missed by institutional investors seeking larger developments. This focus allows usto capitalize on unique opportunities within the marketWe establish and manage the specification and programme delivery,We find tenants and manage both tenancies and the properties thereafter.WHO ARE WISE LIVING?Why Choose Wise Living?Wise Living has over ten years of experience advising on, delivering and managing thousands of SFH homesfor some of the largest investors in the sector. We have a settled and experienced senior management teamwho are all committed to service excellence. We have developed extensive relationships withhousebuilders giving us access to the best available opportunities in the market.Wise Living ExperienceThe Wise Living team were instrumental in some of the largest existing portfolios created by the likes ofSigma Capital, the PRS REIT and Gatehouse Bank. We entered a joint venture with ICG Longbowbuilding out several schemes with them and more recently we helped PGIM Real Estate enter the marketand we continue to act for them to grow their portfolio.Our development services have been utilized on over 75 sites nationwide with over 7,500 properties beingmanaged by our team over the last ten years. This demonstrates our proven track record and deepknowledge of the market.FeesDevelopment Management fees, all based on the aggregate value of the land and build contract:0.5% payable on land acquisition1.0% payable in equal instalments over the expected period between land acquisition and practicalcompletion of the final unit0.5% payable on practical completion of the final unitProperty Management fees:£295 + VAT (irrecoverable) new tenant find fee (per tenancy)7.5% + VAT (irrecoverable) management fee payable on the value of rents collected.

1 Yields are targets and can’t be guaranteed. Net Initial yield is calculated as the current gross rental valueless the five-year average operating costs and expressed as a percentage.This illustration does not constitute a guarantee of value creation or the returns that an investor will enjoy.The sale price achieved will be entirely dependent on market conditions at the tme of sale.The intended exit is to sell to an institutional investor within 5 years. You can choose to pursue an earlier exitif you wish. Alternatively, units can be put on the open market for individual sale or you can continue to holdand enjoy further equity growth. Investment Criteria & AimsIllustrative example

Wise Living is a trading style of Wise Lettings and Management Ltd, a company registered in England and Wales under Company Number07470745 whose registered office is 17 Regan Way, Chetwynd Business Park, Chilwell, Nottingham NG9 6RZThis document is supplied by Wise Lettings and Management Ltd (“Wise”, “we” or “us”) as a basis for discussion aimed exclusively atprofessional investors and advisors. Wise aims to ensure that the statements contained herein (the “Content”) are complete and accurateat the date of publication. However, we do not warrant, either expressly or by implication, the accuracy or completeness of the Content andwe will have no liability in consequence of any misstatement, inaccuracy or omission in or the use of or reliance on the Content and youshould not make any investment decision based solely on the Content.This document does not, of itself, constitute an offer to supply any product or service described within it and it may not be regarded asforming a contractual relationship between you and Wise. Neither Wise, nor its partners, associates and employees, will assume any liabilityfor loss or damage, whether direct or indirect, arising from your use of this document and you should therefore take steps to independentlyverify the accuracy of the Content before placing any reliance on it.Wise is NOT regulated by the Financial Conduct Authority..Invested capital is unprotected and at risk.Wise does not provide advice on taxation and therefore makes no representations and shall have no liability in respect of any taximplications arising from the Content. You should therefore take independent advice as to the tax consequences of the Content.November 2024