Section 11 – PALLASADES ASSET MANAGEMENT

See below for explanation of 11.3 headings;

1. Promotional income **

This is income from spaces within the mall area designated as promotional zones.
These are occupied on an ad hoc basis by various businesses as diverse as food
demonstrations, new product launches from multinational companies, product
demonstrations. By their nature these are short term occupiers.

2. Remote Unitary (RMU) income.

RMU is the acronym for Retail merchandising unit. These are provided by Pallasades
as a mall based stock unit for incoming occupiers. We have 3 RMU’s which are let to
traders on a licence basis. Currently all 3 are let. Variation from March to April
occurred due to higher occupancy in March , the easter period versus April with one
RMU vacant

3. Car park licences

Ladywood House lease held a number of parking spaces at service deck level. This
lease has expired and the centre now licences occupation for these areas to gain
income from those tenants wishing to park at site.

4. Total mall income

This is the aggregation of all the above income sources generated at the Pallasades
and any other adhoc income earned by the centre from mall space.

5. Mall income (Annual Forecast)

The centre runs a calendar of occupation and actively seeks occupiers via mail
shots, website and signage. As we cannot predict take-up for these activities the
figure of £370,000 is an estimate or forecast for the annual income figure.

6. Gross Rental Income

This figure will show variances during the project. This is due to lease terminations
due throughout the period and the inability to guarantee future occupation of these
units after the lease ceases.

7. Service Charge

This is a fixed annual sum based on budgets for services provided and duly
apportioned between all the occupiable leasehold spaces. If any of this apportioned
space becomes void, the landlord will be responsible for the payment of these costs.
 8. Rates/Insurance

As in point 7, any rateable area that ceases occupation becomes the responsibility
of the landlord as does the responsibility for insurance. Rates and Insurance costs
both increased as a result of the termination of temporary tenancies whose
occupiers were covering these costs. Service Charges remained constant as those
tenancies that terminated affecting the rates and insurance were let on a service
charge inclusive basis, those costs being already borne by the landlord.

** Map attached showing income bearing areas

Explanations of 11.4 KPI headings.

These KPI’s have been chosen as indicators of retail vigour and interest shown in
the Pallasades as measurable and consistently generated data.

9. Retail performance.

This is the average sales performance for the trading period gathered from the retail
occupiers, expressed as a percentage.

10.Value of publicity.

This figure is calculated using the industry measurement of “column inch” and other
media format cost values extrapolated from the amount of coverage gained.

11.Website statistics

Industry standard criteria used to measure, no of hits (visits to one web page), dwell
times (amount of time grazing that page) and bounce backs (returns by same
addressee)

12.Footfall

This is the monthly measurement of all consumers entering the Pallasades. All
entrances are measured and the methodology involved has been in place since
2001 therefore all reporting is accurate on a like for like basis. This is measured as
there is a connection between footfall and retail performance. The change year on
year is expressed as a +/- %.

13.NCP usage

NCP usage data is interesting to have but unavailable to the centre. This information
has limited use for the Pallasades as although beneficial the majority of parking has
little impact on the performance nor directly improves sales for the Pallasades.

NB. Variations on promotional income streams will inevitably occur every

month as the report is collated at the end of each month and is dependent upon
the continuous occupation of space by a category of users who by their nature
only have a short term requirement such as promoters/marketers and brand
recognition agencies. It should be noted that this is an executive summary and
that a list of all occupiers and income is available in the full report which will
clearly show any variances in detail and the full totals which aggregate to these
figures.