Service Charge Booklet St David s Shopping Centre. Cover - Text Anchor SHAPING THE FUTURE FOR GOOD

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1 Service Charge Booklet St David s Shopping Centre Cover - Text Anchor SHAPING THE FUTURE FOR GOOD

2 Content - Text Anchor Contents * The appendices document is formed of a separate document and is available in the supporting documents section of the online customer portal. Land Securities 2

3 Welcome - Text Anchor A Warm Welcome St David s Shopping Centre Welcome to the 2016/17 Service Charge Booklet for St David s. As with previous years, this booklet has been prepared to provide occupiers with details of planned service charge expenditure over the next financial year. A key focus for the coming year will be the replacement of the lighting in the Centre. The current Barrisol system was installed in 2008 and works on having a large amount of fluorescent tubes in each section. This system is out-dated and consumes a large amount of electricity compared to an LED based system. We are also currently experiencing multiple and costly failures and the light levels have been commented on by both retailers and customers alike as too low. It is our intention to replace the existing system with a new LED based system. We have decided to forward fund the installation as this is more economical than completing an element over a number of years. The amount will be recovered via the service charge in 2016 and the subsequent two budget years. The Centre continues to deliver positive footfall with over 39 million customers and a sales growth of 3% in St David s is unique in Land Securities for having the marketing controlled by a Merchant s Association. The majority of board directors are retail managers within the scheme and they agree the marketing spend and strategy with our input. The Merchant s Association also agrees the Christmas and year round trading hours. The total budget is shown later in this booklet and is collected separately from this service charge. St David s has a strong focus on a thorough and multi-level CR strategy. We continue to develop and evolve the strategy to ensure we work effectively in partnership with charities and the community. We shall also continue to focus on energy saving to make the building more environmentally friendly and help to offset the increasing cost of utilities. Moving forward into next year we will continue to drive excellence in all areas of the business while growing & developing our relationships with you, so together we can continue to deliver strong growth into 2016/17. I hope you find this booklet useful and informative and, as always, if you have any queries concerning the content then please do not hesitate to contact me. Yours sincerely Steven Madeley Steven Madeley General Manager Land Securities 11 Bridge St Arcade, St David s Dewi Sant, Cardiff, CF10 2EF D/L: +44 (0) Mobile: +44 (0) steven.madeley@landsecurities.com Declaration Service Charge Period: 1 April 2016 to 31 March 2017 Property: St David s Shopping Centre I hereby certify that, according to the information available to me, the attached statement of service charge expenditure report and accompanying information records the budget costs of providing services to the property for the period 01/04/16-31/03/17, in accordance with the terms of the lease and, where practicable, the RICS Code of Practice Service Charges in Commercial Property, Third Edition. Signed: Name: Steven Madeley Date: 31 January 2016 Land Securities 3

4 Introduction - Text Anchor Service Charge Booklet Introduction Land Securities 4

5 The right space in the right place Our retail portfolio meets the evolving requirements of our customers and consumers. Our retail park portfolio is focused on meeting consumers convenience shopping needs, and our leisure properties and shopping centres are all vibrant destinations that provide consumers with a great experience. Our deep understanding of consumer expectations of convenience, comfort and entertainment means that our properties are managed to support our retail partners in achieving strong performance. Inside this document Our Obligations As a responsible Landlord we have a duty of care to act with professional care, diligence, integrity and objectivity in managing the provision of services within the property. For best practice, we endeavour to provide our Customers with the following key elements; Service Charge Customer Statement Service Charge Expenditure Report Service Charge Allocation and Apportionment Service Charge Operational Overview of Variances The Budget This report has been produced by Land Securities and relates to the service charge period of 1 April 2016 to 31 March Royal Institute of Chartered Surveyors (RICS) Code of Practice, Third Edition This report has been produced having regard to the best practice guidelines for service charges in commercial property and endorses the principles set out in the third edition of the RICS Code of Practice. Both Land Securities and the Tenant are still bound by the existing lease terms, which take precedence over the Code of Practice but would encourage our occupiers, like ourselves, to be guided by The Code wherever possible. Schedule of Assumptions and Exclusions Empty Unit Voids and Caps - Land Securities pays the service charge for any void or unlet unit and any service charge contribution is reduced as a result of any form of concession or capping. Service Charge Exclusions - The service charge costs will NOT include: Initial costs in relation to the original design and construction. Setting up costs that are part of the original development Improvement costs above normal maintenance, repair or replacement except where an improvement can be justified to provide benefit to the occupiers. Redevelopment costs Costs which relate to individual occupiers. Payment of Interest - It is our policy not to apply interest to on-account service charge contributions. However we do not apply any of our bank charges back to the service charge. Customer Service Charge Statement Both the customer service charge statement and the first quarterly invoice will be issued together on 1 March Contacts Steven Madeley General Manager Land Securities 11 Bridge St Arcade, St David s Dewi Sant, Cardiff, CF10 2EF D/L: +44 (0) Mobile: +44 (0) steven.madeley@landsecurities.com Mark Nott Centre Manager Land Securities 11 Bridge St Arcade, St David s Dewi Sant, Cardiff, CF10 2EF D/L: +44 (0) Mobile: +44 (0) mark.nott@landsecurities.com Karen Price Property Accountant Land Securities 5 Strand, London, WC2N 5AF D/L: +44 (0) karen.price@landsecurities.com Land Securities 5

6 Schedule - Text Anchor Service Charge Booklet Explanation of Schedules Land Securities 6

7 Explanation of the Schedules The cost summaries on the following pages show the budget for the service charge year and identify the allocation of costs across the various elements of the property (i.e. schedules). Where there is more than one schedule there is a separate column on the Allocation of Costs Summary for each. This is to ensure that costs are appropriately allocated and that customers only contribute toward the services from which they benefit. Schedules The service charge schedules are set out as follows; ALL PROMOTIO DEFINED UNIT Services which benefit all occupiers. This Promotions schedule contains income received from promotional events. This schedule is for contributions made to the service charge from Special Units. These are detailed in the Service Charge Apportionment section of this booklet. Land Securities 7

8 Budget Forecast - Text Anchor Service Charge Booklet Budget Land Securities 8

9 Budget - % Allocations St David s Shopping Centre Year Ending 31 March 2017 Total Budget: 1,232,757 Management & Insurance 300, % Utilities 101, % Soft Services 692, % Hard Services 233, % Income ( 20,960) (1.7%) Exceptional Expenditure 85, % Other Contributions ( 159,318) (12.9%) (12.9%) ( 159,318) 6.9% 85,000 (1.7%) ( 20,960) 18.9% 233, % 300, % 101, % 692,982 Percentages rounded to the nearest decimal point. Land Securities 9

10 Budget - Expenditure Summary St David s Shopping Centre Year Ending 31 March 2017 Service Charge Budget Budget ( ) Budget ( ) Actual ( ) Variance ( ) Variance (%) Management Management Fees 73,186 69,747 3, % 68,206 Site Management Resources 200, ,028 2, % 195,820 Health, Safety & Environmental 25,318 16,385 8, % 12,678 Management Sub-Total 298, ,160 14, % 276,704 Utilities Electricity 94, ,176 (31,663) (25.1%) 93,117 Gas 4,200 4, % 2,392 Fuel Oil (Heating) % 0 Water 1,975 1, % 1,489 Utilities Sub-Total 101, ,645 (31,443) (23.7%) 96,997 Soft Services Security 292, ,674 14, % 259,994 Cleaning & Environmental 400, ,331 17, % 365,864 Soft Services Sub-Total 692, ,005 31, % 625,858 Hard Services Mechanical & Electrical Services 153, ,886 (5,360) (3.4%) 157,136 Lift & Escalators 19,448 24,116 (4,668) (19.4%) 20,503 Suspended Access Equipment 2,370 2, % 5,447 Fabric Repairs & Maintenance 57,689 56,506 1, % 38,522 Hard Services Sub-Total 233, ,807 (8,775) (3.6%) 221,608 Income Income From Commercialisation (20,960) (22,552) 1,592 (7.1%) (20,628) Income Sub-Total (20,960) (22,552) 1,592 (7.1%) (20,628) Insurance Engineering Insurance 2,209 3,277 (1,068) (32.6%) 3,154 Insurance Sub-Total 2,209 3,277 (1,068) (32.6%) 3,154 Exceptional Expenditure Major Works 85, , % 0 Exceptional Expenditure Sub-Total 85, , % 0 TOTAL 1,392,076 1,300,342 91, % 1,203,693 Other Contributions Defined Unit Contributions (159,318) (177,165) 17,847 (10.1%) (127,823) Other Contributions Sub-Total (159,318) (177,165) 17,847 (10.1%) (127,823) GRAND TOTAL 1,232,757 1,123, , % 1,075,870 Land Securities 10

11 Budget - Expenditure Summary St David s Shopping Centre Year Ending 31 March 2017 Allocation of Costs (1 of 2) TOTAL ALL PROMOTIO DEFINED UNIT Management Management Fees 73,186 73, Management Fees 73,186 73, Site Management Resources 200, , Staff Costs 146, , Site Offices/Accommodation 54,084 54, Health, Safety & Environmental 25,318 25, Health & Safety 25,318 25, Management Sub-Total 298, , Utilities Electricity 94,514 94, Electricity Lighting 87,863 87, CRC Electricity 6,651 6, Gas 4,200 4, Gas 4,080 4, CRC Gas Fuel Oil (Heating) Fuel Oil (Heating) Water 1,975 1, Water 1,975 1, Utilities Sub-Total 101, , Soft Services Security 292, , Security 292, , Cleaning & Environmental 400, , Cleaning 232, , Waste Management 97,313 97, Housekeeping / Sundry Costs 12,385 12, Landscaping (External) 2,050 2, Seasonal Decorations 56,375 56, Soft Services Sub-Total 692, , Continued on next page >>> Land Securities 11

12 Budget - Expenditure Summary St David s Shopping Centre Year Ending 31 March 2017 Allocation of Costs (2 of 2) TOTAL ALL PROMOTIO DEFINED UNIT Hard Services Mechanical & Electrical Services 153, , Fire Precautions Maintenance 15,962 15, Fire Precautions Repairs 7,622 7, General Engineering Maintenance 99,693 99, General Engineering Repairs 3,090 3, Lighting/Electrical Maintenance 6,705 6, Lighting/Electrical Repairs 17,234 17, General Machinery Heat/Air Con/Comfort Cool Repairs 2,602 2, Lift & Escalators 19,448 19, Lift/Escalator Maintenance 19,448 19, Suspended Access Equipment 2,370 2, Suspended Access Equipment 2,370 2, Fabric Repairs & Maintenance 57,689 57, Internal Maintenance 19,741 19, External Maintenance 37,948 37, Hard Services Sub-Total 233, , Income Income From Commercialisation (20,960) 0 (20,960) 0 Promotional Income (20,960) 0 (20,960) 0 Income Sub-Total (20,960) 0 (20,960) 0 Insurance Engineering Insurance 2,209 2, General Engineering Insurance/Inspection 2,209 2, Insurance Sub-Total 2,209 2, Exceptional Expenditure Major Works 85,000 85, Plant Replacements 55,000 55, Major Building Works 30,000 30, Exceptional Expenditure Sub-Total 85,000 85, Total 1,392,076 1,413,036 (20,960) 0 Other Contributions Defined Unit Contributions (159,318) (511,833) 0 352,514 Other Contributions Sub-Total (159,318) (511,833) 0 352,514 Grand Total 1,232, ,203 (20,960) 352,514 Land Securities 12

13 Allocation - Text Anchor Service Charge Booklet Service Charge Apportionment Land Securities 13

14 Service Charge Apportionment St David s Shopping Centre Year Ending 31 March 2017 This apportionment represents the position at 18 December 2015 Apportionment Costs are split between occupiers who benefit from all services supplied by the Centre with the exception of Marks and Spencer, Boots, Primark and Debenhams (original building) Their Service Charge costs are allocated according to a formula based on a long standing agreement. St David s Hall and Queens Arcade pay a contribution to the service area/ramp repairs only. Their contribution is calculated on their vehicle movements on the service deck area. Service Charge expenditure is apportioned according to gross internal floor area based on the weighted floor area method. The following percentage multipliers apply: First 10,000 sq ft 100% Next 10,000 sq ft 80% Next 10,000 sq ft 60% Next 10,000 sq ft 50% DEFINED ALL PROMOTIO UNIT TOTAL 1,413,036 (20,960) (159,318) 1,232,757 FACTORS FORECAST ( ) DEFINED ADDRESS ALL PROMOTIO ALL PROMOTIO UNIT TOTAL Defined Unit Contributions 511,833 - (159,318) 352,514 Balance to Apportion 901,203 (20,960) 0 880,243 9/11 St David s Way 3,556 3,556 16,371 (381) 15, St David s Way 1,640 1,640 7,550 (176) 7, St David s Way 1,689 1,689 7,776 (181) 7, St David s Way 1,762 1,762 8,112 (189) 7,923 35/37 St David s Way 3,983 3,983 18,336 (426) 17, Cathedral Walk 3,513 3,513 16,173 (376) 15, Cathedral Walk 1,146 1,146 5,276 (123) 5,153 12/14 Cathedral Walk 2,534 2,534 11,666 (271) 11, Cathedral Walk ,355 (101) 4, Queen Street, Unit 23 1,766 1,766 8,130 (189) 7,941 64/66 Queen Street 6,116 6,116 28,156 (655) 27,501 7 Cathedral Walk 1,219 1,219 5,612 (131) 5,481 9 Cathedral Walk 1,252 1,252 5,764 (134) 5, Cathedral Walk 1,360 1,360 6,261 (146) 6, Cathedral Walk 1,399 1,399 6,441 (150) 6, Cathedral Walk 1,477 1,477 6,800 (158) 6, Cathedral Walk 2,502 2,502 11,518 (268) 11, Cathedral Walk 1,520 1,520 6,998 (163) 6, Cathedral Walk 1,484 1,484 6,832 (159) 6,673 Continued on next page >>> Land Securities 14

15 Service Charge Apportionment St David s Shopping Centre Year Ending 31 March 2017 This apportionment represents the position at 18 December 2015 FACTORS FORECAST ( ) DEFINED ADDRESS ALL PROMOTIO ALL PROMOTIO UNIT TOTAL 32/34 St David s Way 3,574 3,574 16,454 (383) 16, St David s Way 1,636 1,636 7,532 (175) 7,356 4 St David s Way 1,470 1,470 6,767 (157) 6,610 2 St David s Way 1,555 1,555 7,159 (167) 6, St David s Way 1,541 1,541 7,094 (165) 6,929 Unit 13A/1 21 St David s Way 1,365 1,365 6,284 (146) 6,138 Unit 13A/2 23 St David s Way ,803 (88) 3,714 5 Town Wall 1,843 1,843 8,485 (197) 8,287 8 Cathedral Walk Unit 23A ,975 (46) 1,929 2 Town Wall ,942 (68) 2,873 Mall Seating Area o/s 2 Town Wall Mall ,234 (29) 1,205 31A St David s Way 3,603 3,603 16,587 (386) 16,201 3 Town Wall 1,473 1,473 6,781 (158) 6,624 1 Town Wall 3,318 3,318 15,275 (355) 14,920 26/28 St David s Way 3,061 3,061 14,092 (328) 13,764 Store C St David s Way 22,505 22, ,606 (2,410) 101,196 17/19 St David s Way 2,407 2,407 11,081 (258) 10,823 4 Town Wall ,001 (93) 3, Cathedral Walk 1,872 1,872 8,618 (200) 8, Cathedral Walk 1,942 1,942 8,940 (208) 8,732 36/38 St David s Way 3,521 3,521 16,210 (377) 15, St David s Way 1,729 1,729 7,960 (185) 7, St David s Way 2,883 2,883 13,272 (309) 12, St David s Way ,390 (32) 1,358 5 to 7 Town Wall South - TW34/36 6,533 6,533 30,076 (700) 29,376 22/24 St David s Way 1,874 1,874 8,627 (201) 8,427 9 Town Wall South - TW32 3,018 3,018 13,894 (323) 13, to 21 Town Wall South - Bridge Link Café 2,296 2,296 10,570 (246) 10,324 1 Town Wall South - TW42/44 1,795 1,795 8,264 (192) 8, St David s Way 1,348 1,348 6,206 (144) 6, St David s Way 1,157 1,157 5,326 (124) 5, Town Wall South - TW21 1,931 1,931 8,890 (207) 8,683 8 Town Wall South - TW33 2,603 2,603 11,983 (279) 11,705 6 Town Wall South - TW35 2,065 2,065 9,507 (221) 9,286 3 Town Wall South - TW38/40 1,221 1,221 5,621 (131) 5, to 13 Town Wall South - TW28/30 18,084 18,084 83,253 (1,936) 81, Town Wall South - TW26 3,220 3,220 14,824 (345) 14, Town Wall South - TW ,268 (99) 4, Town Wall South - TW23 2,651 2,651 12,204 (284) 11,921 Continued on next page >>> Land Securities 15

16 Service Charge Apportionment St David s Shopping Centre Year Ending 31 March 2017 This apportionment represents the position at 18 December 2015 FACTORS FORECAST ( ) DEFINED ADDRESS ALL PROMOTIO ALL PROMOTIO UNIT TOTAL RSU ,224 (52) 2,172 RSU ,399 (56) 2,343 RSU ,491 (58) 2,433 RSU ,537 (59) 2,478 RSU ,541 (59) 2,482 RSU ,864 (43) 1,821 RSU ,339 (54) 2,284 2 to 4 Town Wall South - TW39 2,272 2,272 10,460 (243) 10,216 RSU ,385 (55) 2,329 7 St David s Way 1,615 1,615 7,435 (173) 7, St David s Way 9,646 9,646 44,407 (1,033) 43,374 14/16 Town Wall South 5,351 5,351 24,634 (573) 24, St David s Way 1,210 1,210 5,570 (130) 5,441 Mall Site 6 St David s Way (14) /12 Town Wall South (TW29/31) 5,292 5,292 24,363 (567) 23,796 Mall Site 9 Town Wall South (21) 872 Store r/o TW ,082 (25) 1,057 Storage Unit RS (6) Cathedral Walk ,466 (104) 4, Cathedral Walk ,499 (81) 3, St David s Way 1,257 1,257 5,787 (135) 5, St David s Way 6,473 6,473 29,800 (693) 29,107 SUB TOTAL 195, , ,203 (20,960) 0 880,243 GRAND TOTAL 195, ,757 1,413,036 (20,960) (159,318) 1,232, %100% 100%100% 100% 100% 100%100% 100% 1,532, ,868 3,809,813 9,872 65, ,695 61,578 75,171 29,380 6,543,390 Land Securities 16

17 Variances - Text Anchor Service Charge Booklet Summary of Variances Land Securities 17

18 Summary of Variances St David s Shopping Centre Service Charge Budget Indicative variances are shown based on the current year budget. 1,123,177 1,232, % Budget ( ) Budget ( ) % Increase in budget Land Securities 18

19 Summary of Variances St David s Shopping Centre The significant positive or negative financial variances are explained as follows: Management 298,611 14, % A full review of total service charge management costs including management fees and direct costs was undertaken in This budget includes a 4.9% increase in total fees compared to 2015/16 reflecting the costs incurred in managing service charges across the Retail Portfolio. Budget Variance ( ) Variance % Health, safety & environmental An increase of 8933 due to Riskstop daily inspection reporting, Health & Safety training, Signage and Access Audit. 101,202 ( 31,443) (23.7%) Utilities Utility Budgets for 2016/17 are set on the basis of prior year actual consumption with reference to the fully delivered unit cost of purchasing energy. Budget Variance ( ) Variance % Electricity A saving of ( 31,663) due to change of light fittings over to LED s giving a saving in electricity consumption. Land Securities 19

20 Summary of Variances St David s Shopping Centre The significant positive or negative financial variances are explained as follows: 692,982 Budget 4.8% 31,977 Variance ( ) Variance % Soft Services Security An increase of 14,500 due to an annual pay increase for the security team. Cleaning and Environmental An increase of 17,477 due to an annual pay increase for the cleaning team. 233,032 Budget (3.6%) ( 8,775) Variance ( ) Variance % Hard Services Lighting and Electrical There is a saving of ( 21,744) due to the changing of light fittings to LED s Lift and Escalators: A saving of ( 4,668) due to fewer required repairs. Land Securities 20

21 AMS Text Anchor Service Charge Booklet Asset Management System (Major Works) Land Securities 21

22 Asset Management System (Major Works) Land Securities have for a number of years utilised an Asset Management System (AMS) that helps us plan major items of building fabric and building services repairs/renewals. This year planned expenditure is focussing over the coming 5 year period and on works with a contract value in excess of 20,000. The results are shown on the graph and the table below. The scale and timing of this expenditure is revisited each year in the preparation of the Service Charge Booklet and figures therefore may be postponed or revised as required by property and market conditions. Service Budget ( ) Budget ( ) Budget ( ) Budget ( ) Budget ( ) 2016/ / / / /2021 Major Building Works Roof Glazing Overhaul Phased over 2 years 0 125, , Deck Repairs - Phased over 2 yrs 0 50,000 50, Cyclical Deck Woodwork painting and repairs 0 37, Sundry Roof/Door Repairs ,000 25,000 Total Major Building Works 0 212, ,000 25,000 25,000 Major M&E Works Switchgear Replacement ,000 0 Major M&E Works Spread Recovery Replace Mall Lighting to LED Controlled Lighting 165,000 55,000 55,000 55, Replace circa 100 Stretch Ceiling Light Panels 90,000 30,000 30,000 30, Total Major M&E Works 85,000 85,000 85,000 50,000 0 TOTAL 85, , ,000 75,000 25, , , , , , ,000 50, / / / / / /17 Replacement of 100 Ceiling Light Panels: 30,000 Change of panels required to maintain sufficient lighting levels as the existing panels are not compatible with LED lighting. Replacement of existing mall lighting to LED controlled lighting, phase 1: 55,000 Existing lighting control system is not compatible to run LED lighting, therefore a suitable system is required. Land Securities 22

23 Add Info Text Anchor Service Charge Booklet Additional Information Land Securities 23

24 Additional Information Service Partners Key services are provided by the following service providers: Service Service Partner Contract Duration Next Re-tender Cleaning OCS 2 Year contract extended to the 31st March st April 16 Security OCS 2 Year contract extended to the 31st March st April 16 M&E Services Imtech 2 Year contract extended to the 31st March st April 16 Lifts & Escalators Kone 2 Year contract extended to the 31st March st April 16 Waste Management Veolia 1 Year 2nd November 16 We are in process of re-tendering on both the Soft & Hard service contracts. Sustainability Community Activity St David s takes its responsibilities to the community very seriously. The centre team have actively undertaken team and individual CR days throughout 2015/16 and will continue this focus in 2016/17. The centre has formed a strong and fruitful partnership with two key charity organisations: Mencap which is the adopted charity throughout Land Securities and Breast Cancer Care who are the local adopted charity. Both charities have held events in the centre; activities mainly include collections and awareness days. We hosted a celebrity Pink St David s event for customers which raised over 3000 during the 2 hour event. To date we have raised over 12,000 for the charity. We continue to host experience days for pupils from Woodlands High School and offered invaluable work experience opportunities in areas ranging from Security to Engineering. We continue to support Retailer and Staff training provided by Mencap to educate staff and retailers on interaction with people who have learning difficulties. This would not have been achievable without the valuable support of our retailers. The centre works with several other charities throughout the year by providing space in the centre for awareness and fund raising events, this has resulted in over 22,000 being donated by the public. The first ever St David s Toy appeal launched on 1st 22nd December. Supporting 6 local charities, the appeal was launched to ensure that every child in South Wales receives a gift this Christmas. Within the first week 1400 toys were donated. Environmental We continue to deliver School visits on site partnered with RSPB and Keep Wales Tidy. The purpose of the visits to the green roof and Beehive area is to demonstrate how, as a business we are committed to working with local schools and environmental organisations to promote our sustainability values and raise awareness. We have partnered with Cardiff University, John Lewis and Pollen8 to deliver an entrepreneurship training programme for University Students that is delivered at St David s and will run until April We were recently shortlisted and highly commended for Sustainable Venue of the year award, hosted by Sustainable Development Wales. Land Securities 24

25 Additional Information Marketing St David s operates a Merchant s Association. This is a separate company that has been set up to agree the trading hours and to manage the marketing budget for the centre. It has a Chairperson (MD John Lewis Cardiff), Company Secretary (General Manager St David s) and a Board of Directors who are retailer store managers from within St David s. Amongst the Directors responsibilities is the approval of the annual marketing budget. In addition the board propose the extended and Christmas trading hours which are voted upon at a number of board meetings throughout the year. The marketing budget as approved by the St David s Dewi Sant Merchants Association Ltd is 1.2m which is a 0.9% year on year increase. The marketing approach is focused on delivering two major advertising campaigns, building on previous success of sales promotions and ensuring that there is enough flexibility through the budget to support new and experiential activities throughout the centre at key trading times. It is designed to continue and build upon our strategy of delivering a two tier approach to marketing focused on; Convenience (shoppers under 30min drive time), Dominance (shoppers over 30min drive time). All activities are designed to ensure St David s is the retail destination in Cardiff and extended catchment Budget Advertising 412,401 Market Research 42,845 Brand Campaigns 5,000 Sales Promotions 153,228 Digital Marketing 55,218 Staff Costs 171,808 Consumer PR 65,000 Corporate Responsibility 1,500 Administration Costs 15,000 Creative 160,000 Print & Production 112,000 Travel/Expenses 6,000 TOTAL 1,200,000 Land Securities 25

26 Appendices Service Charge Management Principles and Explanatory Notes Appendices Document The appendices document is formed of a single document, Service Charge Management Principles and Explanatory Notes, that is available in the supporting documents section of the online customer portal. - RICS Code of Practice - Service Charge Policy Statement - Generic Explanatory Notes - Utilities - Sustainability - Health and Safety - Consumer Marketing - Insurance - Senior Management Contact Details Appendices - Text Anchor Land Securities 26

27 Land Securities Group PLC 5 Strand, London WC2N 5AF T +44 (0) E investor.relations@landsecurities.com W Service Charge Booklet St David s Shopping Centre Publication No. SCB2016/