New West End Property BID Business Plan by Kristin Sauva

STRONGER TOGETHER BOOSTING THE VALUE OF LONDON’S RETAIL HEARTLAND

This proposal draws on the expertise and guidance of our Property Steering Group which comprises:

CHAIR David Shaw OBE, Chairman, The Pollen Estate, Head of Regent Street Portfolio - The Crown Estate

MEMBERS Daniel Van Gelder, Chairman - Westminster Property Association Adam Starr, Chief Executive - Redevco Craig McWilliam, Executive Director London Estate - Grosvenor Britain & Ireland Neil McLeod, Fund Manager Real Estate - Aviva Investors Kam Lee, Director - Circle Properties Simon Loomes, Strategic Projects Director - The Portman Estate Duncan Ferguson, Director - Lancer Asset Management Jeremy Collins, Property Director - John Lewis Partnership

Members & Supporters of New West End Company

Contents One Vision, One Mission

A proposal that boosts your value and returns

Time to move forward

The power of partnership

Building on a decade of delivery

Our priorities to date

The beneﬁts of the proposed BID

Your priorities

Our commitments - How we plan to deliver, 2015 - 2020 An inﬂuential business voice

Sustainable placemaking

Global proﬁle & position

Governance

50 The Board & Property Group

The Executive Team

BID levy rules

District map

Finances

Using your vote

62 3

ONE VISION TO MAKE THE WEST END THE WORLD’S NUMBER ONE CHOICE FOR REAL ESTATE INVESTMENT, RETAILERS AND SHOPPERS.

ONE MISSION TO ACTIVELY INCREASE THE AREA’S PROPERTY VALUES AND COMMERCIAL RETURNS. BY WORKING IN PARTNERSHIP TO INVEST AND LEVERAGE ADDITIONAL FUNDS TO DELIVER A LONG-TERM PLACEMAKING STRATEGY THAT SIGNIFICANTLY IMPROVES PUBLIC SPACES TO ATTRACT MORE SHOPPERS. BY GIVING LOCAL PROPERTY OWNERS A UNITED AND INFLUENTIAL VOICE. BY PROMOTING THE WEST END, NATIONALLY AND GLOBALLY. 5

A proposal that boosts your values and commercial returns Over the past 10 years property owners in the West End have beneﬁted from the great work by New West End Company in partnership with Westminster City Council. This work has delivered substantive results to improve and enhance the retail trading environment of London’s retail heartland. We need your support to take the West End to the next level and as a result to further protect and enhance your investment. In supporting the New West End Company Property Owner BID you will ensure that this dynamic location drives forward with services delivered by a body that offers exceptional value and unrivalled expertise. Backed by major West End property holders the BID will allow you to align your asset strategy with a uniﬁed approach that will leverage resources while remaining cost-effective, thus boosting real estate values and enhancing your bottom line returns. DAVID SHAW, OBE Chair Property Steering Group Chairman The Pollen Estate Head of Regent Street Portfolio, The Crown Estate

(Left to Right) David Shaw, OBE and Jace Tyrrell

We are the catalysts for change and more needs to be done for the West End to compete on a global stage. New West End Company brings together business interests in one shared vision for the future. A successful property BID ballot will deliver tangible results for the property industry in the largest and most dynamic retail destination in the world. JACE TYRRELL Deputy Chief Executive, New West End Company

Time to move forward The proposed Property Owner BID will enable local property owners to meet future challenges and boost the value of their portfolios. We are living through an exceptional period in London’s evolution as a world city. The retail property sector is facing an explosion of new development and more than 10 million sq. ft. of retail space is due to be built in and around the capital during the next decade. In addition, new areas of London are emerging to challenge the established commercial powerhouses. This means serious competition for the traditional heart of London’s retailing scene: the West End. At the same time, we are facing ever ﬁercer competition on a global scale, with developing retail centres in other countries eager to dislodge us from our position as the world’s favourite shopping destination. The recent West End Partnership vision document highlighted not only the challenges that the West End faces but also a commitment from all the interested parties to maintain our position as the best place in the world to be located. It also ﬂeshed out what was needed to achieve that ambition.

To meet these challenges and ensure that an enhanced West End is effectively promoted to businesses and consumers worldwide, we need an initiative that combines, co-ordinates and ampliﬁes the power and inﬂuence of the area’s retail property owners. The New West End Company Property Owner Business Improvement District (BID) will meet that need.

Stronger together No single owner can hope to deliver the initiatives that the West End requires to retain its competitive edge and world-class status. What is needed is a unified platform for strategic placemaking, policy influence and advocacy, development, promotion and marketing. The Property Owner BID can provide this and, in doing so, will enable the entire constituency of West End property owners across Bond Street, Oxford Street and Regent Street working together, to influence the future direction of the area in a way that goes far beyond what an individual asset holder could deliver on their own.

London’s West End is an important economic powerhouse for the UK. Bringing together property interests and retailers will strengthen the area’s competitive position. Having researched Business Improvement Districts in New York, I have seen first-hand the commercial benefits of property-led BIDs there. London needs the New West End Company to continue to provide a champion and influential voice for business interests in the area. PROFESSOR TONY TRAVERS Director of Greater London Group, London School of Economics

The power of partnership The new BID will be one of the UK’s ﬁrst Property Owner BIDs and will work hand-inhand with the existing, highly successful Occupier BID. This will enable an integrated approach that addresses the interests of businesses and key stakeholders in the wider West End.

Westminster City Council and Transport for London to deliver key initiatives and programmes over the next ﬁve years.

The new BID will play a leading role in sustaining the West End’s retail position as a world-class shopping and leisure environment, as well as maintaining and enhancing asset values.

The Property Owner BID proposal shares the aspiration of both the West End Partnership and Westminster City Council’s ‘City for All’ programme which aims for everybody in the City to share in the beneﬁts of economic prosperity. New West End Company will play an active role in further developing growth in a City of Aspiration, Choice and Heritage.

Whereas the existing Occupier BID has focused predominantly on marketing and environment management initiatives supporting our retail and hotel businesses, the property owner BID will have a greater emphasis on strategy, advocacy, public realm improvements and development for the owners of these properties. The overall strategy will require the ongoing support, and where relevant, the approvals from statutory authorities. The BID will continue to work collaboratively with

As well as playing an active and inﬂuential role within the West End Partnership, the Property Owner BID will also work with neighbouring BIDs, relevant associations, resident and community groups and authorities recognising the wider West End and its offer across culture, dining, creative industries, theatre and commerce, creating a vibrant offer for growth that will beneﬁt both business and residents and resulting in a retail district that is unsurpassed globally.

Partnership working is at the heart of the City of Westminster’s ethos. We have supported New West End Company since its inception and we value our partnership. The formal inclusion of property owners into BIDs will ensure the delivery of a range of initiatives in the West End to safeguard its commercial success and drive economic growth in Westminster’s commercial heart. CLLR DANIEL ASTAIRE CABINET MEMBER FOR HOUSING, REGENERATION, BUSINESS AND ECONOMIC DEVELOPMENT, WESTMINSTER CITY COUNCIL

The power of partnership Working in Partnership to Deliver As a core supporter of the West End Partnership we are working to deliver a shared vision of a strong and vibrant West End. Cllr Philippa Roe, Leader of Westminster City Council and Chair of the West End Partnership has committed to working with us and others to deliver many of our business priorities for the retail heartland. We look forward to helping the Partnership to keep the West End as a magnet for investment, commerce and retail.

New West End Company will continue to play an active role in helping to drive economic prosperity in Westminster seeking to boost local employment through our programmes and exploring ways to embrace local workers and enhance skills in the retail and the construction sectors for residents of Westminster. SIR PETER ROGERS Chairman, New West End Company

(Left to Right) Global Retail Centre Panel; Conrad Bird, GREAT Campaign Director, Prime Minister’s Ofﬁce; Gordon Innes CEO, London & Partners; Nick Hollingworth, CEO, Austin Reed; Sir Peter Rogers, Chairman, New West End Company; Kevin Farrow, Senior Director, CBRE UK Retail

Building on a decade of delivery The West End’s popularity is greater than ever before but we need to work together to maintain its position as one of the world’s best shopping destinations. We support New West End Company in establishing a property owner BID and their aim to promote the area’s retail attractions, improve the street environment and champion the interests of business at all levels of Government. JOHN BURNS Chief Executive Ofﬁcer, Dewent London

The proposed Property Owner BID will work closely with the New West End Company Occupier BID formally established in 2005. In the past 10 years, we have already made huge progress in promoting, managing and inﬂuencing the success of the world’s top shopping destination. Together they will produce more than the sum of the parts. Property owners were pivotal in the early development of New West End Company, as with many other BIDS. In the absence of any formal investment mechanism, they have played a key role, making voluntary contributions of over £10m and providing valuable expertise and advice. 14

From day one, our vision and focus has been driven by the major West End property owners working with occupiers. This partnership has enabled our management team to deliver major initiatives which have boosted commercial performance to the beneﬁt of both groups.

LEVERAGED FOR PUBLIC REALM IMPROVEMENTS

FROM THE MAYOR OF LONDON, WESTMINSTER CITY COUNCIL, TRANSPORT FOR LONDON AND GOVERNMENT

CHAMPIONSHIP OF OXFORD CIRCUS DIAGONALS &

RETAIL FLOOR SPACE INCLUDED IN SALES INDEX

UK CHANCELLOR ANNOUNCES PROPOSALS FOR FLEXIBLE

SUNDAY TRADING HOURS IN THE WEST END

HOME OFFICE PILOTS ONE STOP SHOP

VISA

APPLICATIONS IN CHINA

WAY-FINDING SIGNS INSTALLED ACROSS THE DISTRICT

VISITORS ASSISTED BY OUR WELCOME AMBASSADORS

LAUNCHED WITH NEW BRAND IDENTITIES CREATED FOR OXFORD STREET & BOND STREET 24

DEDICATED FOOTFALL CAMERAS INSTALLED 25

DISTRICT PROMOTED OVERSEAS TO

BUSINESS EVENTS, SEMINARS AND NETWORKING RECEPTIONS HELD

WORTH OF UK AND GLOBAL MEDIA COVERAGE

RETAIL JOBS PLACED FOR WESTMINSTER CITY COUNCIL RESIDENTS THROUGH RECRUIT WEST END

15 MILLION SHOPPERS JOINED OUR TRAFFIC-FREE EVENTS WITH £8M RAISED IN SPONSORSHIP AND

GENERATED IN INCREMENTAL SPEND

Our priorities to date The New West End Company Occupier BID has concentrated on improving the trading environment and marketing the West End as a retail destination, with a series of initiatives in the following areas:

Attract & Promote

Welcome & Discovery A retail crime partnership and dedicated on street security enforcement team. Cleansing services supplementing those of the local authority and offering rapid response.

Increasing incremental sales through street-speciďŹ c and district-wide events, promotions and commercial partnerships.

A team of ambassadors providing shopper information, business liaison and reporting of environmental issues.

Dedicated tourism promotions with UK and overseas high-value visitors, including travel trade services, marketing collateral, shop and stay packages and dining promotions.

Improvements to the management of retail product launches and retailer events.

The development of digital platforms to promote the key shopping streets and increase customer loyalty, database retention, and support occupier marketing activity. Consumer-led PR campaigns to drive brand and product positioning for each street.

Insight & Engagement Dedicated insights on trading performance across footfall, sales and industry trends. A series of insight reports with international comparisons and benchmarking. Regular communications with members through digital channels, events and seminars. Launch of the ďŹ rst high street business-to-business app for store and security managers.

The beneﬁts of the proposed BID Increasing the area’s property values and commercial returns Leveraging additional funding for placemaking and improved public realm An inﬂuential and united voice for local property owners Promotion of the West End nationally and globally attracting occupiers and investment A robust management plan for the arrival of Crossrail in 2018 34

In New York, business improvement assessments are paid, in the ﬁrst instance, by the property owners, who also, by law, must constitute a majority of the Board of Directors. The property owners have a long-term perspective on what investments are essential for the economic health of the area and how resources are best allocated. The transformation of areas such as Lower Manhattan, Times Square, Grand Central and 34th Street would not have been possible without the property owners’ ﬁnancial commitment and vision. CARL WEISBROD, Chair of New York City Planning Commission & Former Chief Executive of Downtown Alliance, Grand Central Partnership and President of Trinity Real Estate, New York

BIDs in New York have increased commercial property values on average by 15% over 10 years compared to non BID areas. Source: The Furman Centre for Real Estate & Urban Policy, New York University

Your priorities Since January 2015, New West End Company has met with property owners and West End businesses to develop, and set the priorities for, the Property Owner BID proposal. A signiﬁcant proportion of West End property owners are long-term holders of assets and they want a strategic approach that is aligned to this.

Iconic brand-enhancing events and campaigns to promote the West End as a global retail destination of choice. A robust business voice for the West End that will inﬂuence policy.

As well as responding to the developing needs of the West End, the BID will therefore have a number of long-term goals and objectives.

Championship for a policy framework, at local and national level, to maximise shopper spend and encourage investment.

What you told us you wanted

Public space initiatives to maximise the opportunity of Crossrail.

A robust response to greater global and local competition, by raising the West End’s proﬁle to attract progressive spend and a unique retail mix. A dedicated place management strategy and the delivery of environmental improvements, short-term for the arrival of Crossrail and longer-term to 2025. Secure funding for public realm and congestion reduction projects. The exploration of collective opportunities to reduce business costs and increase commercial revenues into the core West End.

The forging of cross-sector strategic partnerships to increase commercial income.

Innovative shopper infrastructure that will maximise new digital channels. Greater consumer insights and global benchmarking to support assessment of property asset values.

Our commitment: 1 AN INFLUENTIAL BUSINESS VOICE: TO BE A LEADING WEST END BUSINESS VOICE REPRESENTING RETAIL REAL ESTATE INTERESTS LOCALLY, IN LONDON AND NATIONALLY TO SHAPE POLICY, SECURE GREATER FUNDING, INCREASE TURNOVER AND ENCOURAGE BUSINESS INVESTMENT.

Delivery Plan 2015 - 2020 Be the retail property owners’ business voice within the West End Partnership to secure funding and policy reforms for our area. Engage local, London and national policy makers on core West End retail real estate issues and seek solutions that encourage economic development, infrastructure commitments and investment. Work with the West End Partnership to deliver a collective vision for a growing and more vibrant West End beneﬁting all those with an interest in the area.

Encourage property owners to maximise job opportunities for local residents and support Westminster’s ‘City for All’ ambition to reduce long term unemployment locally, such us by supporting the work of the Westminster construction and property employer’s group and work with Recruit London/ Recruit West End to supply job ready candidates to employers in the area.

London’s West End is a shopping magnet, attracting visitors from all over the world, driving jobs and growth and boosting London’s economy. Bringing together the energy and experience of businesses in this ﬂagship retail hub, and drawing up a clear vision for the future through the New West End Company, is essential to its continued success. BORIS JOHNSON Mayor of London

Our commitment: 1 Secure funding and political support at all levels for radical action to reduce congestion, improve air-quality and create a place for people in the core West End. Deliver business, consumer, resident and political consensus for the Oxford Street and Bond Street public realm schemes and establish political support for a place management strategy for new and renewed public spaces through the West End Partnership. Support the West End Partnership in leading the business case for greater investment and ďŹ scal autonomy for the West End through a dedicated campaign. Lead or be a strong partner to industrywide policy campaigns - on issues such as business rates and visa reform, ďŹ&#x201A;exible Sunday trading, business taxation, aviation capacity, Crossrail 2 and BIDs.

Our commitment: 2 SUSTAINABLE PLACEMAKING: IN THE SHORT AND LONG-TERM, TO BE A CATALYST FOR CHANGE AND TO SECURE FUNDING FOR ENVIRONMENTAL AND STREETSCAPE IMPROVEMENTS. WORKING WITH THE WEST END PARTNERSHIP, WESTMINSTER CITY COUNCIL AND TRANSPORT FOR LONDON TO DELIVER A NUMBER OF SCHEMES IN OUR AREA, MAXIMISING THE BENEFITS OF CROSSRAIL BY BOOSTING VALUES, INCREASING CONSUMER SPEND AND FUTURE-PROOFING OUR ECONOMIC POSITION. 42

Delivery Plan 2015 - 2020 Working with the West End Partnership, Westminster City Council and Transport for London contribute funds to the Bond Street Development Plan to radically improve the streetscape with enhanced public realm, traffic improvements, street design and landscaping. Drive forward and realise the Oxford Street vision of the West End Partnership including significant traffic reduction, improved air quality, the creation of modern retail spaces, greater employment and an enhanced public realm. Work with the West End Partnership, Westminster City Council and Transport for London to develop an overall place management strategy for our area - for the short and long term - supported by business, the local community and public authorities. Be a key partner in feasibility studies for public realm, transport improvement schemes including West and East Oxford Street and Crossrail station gateways, to secure political support and funding.

Deliver an industry leading freight & waste consolidation and environmental improvement initiative to achieve measurable reductions in vehicles throughout the area and to advocate electric vehicles for the future. Support the creation of more green spaces and respite areas for shoppers, workers, residents and visitors, and scope out opportunities for the new use of public spaces through enhanced commercial activity, digital screens, curated public and private content.

The property industry of London’s West End has long been a supporter of Business Improvement Districts (BIDs). As we have greater competition locally and around the world, we must continue to work collectively to increase the value of our assets and drive the future commercial success of London’s retail and leisure heartland. DANIEL VAN GELDER Chairman, Westminster Property Association.

Implement an oasis scheme with Westminster City Council and Transport for London delivering at least ﬁve upgrades by 2020 to increase consumer dwell time and greater pedestrian movement north and south of Oxford Street and west of Regent Street and in the north of Mayfair. Secure and part-fund a dedicated infrastructure for digital connectivity and resilience to support occupiers and visitors and bridge the gap between physical and digital retail.

Our commitment: 2 Bond Street Development Plan A £10m improvement plan prioritised by the West End Partnership to be delivered with support of Westminster City Council and Transport for London for the arrival of Crossrail in 2018 to include a fully refurbished public realm reflecting the reputation and calibre of the area and its luxury retail and showcase offer; High quality, easily accessible environment; with exemplary public realm, enhanced entrance from Oxford Street and Piccadilly, wider pavements, improvements to public carriageway and new signage. Improved parking and reduced traffic; reduced through traffic, facilities for servicing and out of hours, new parking arrangements offering better access to stores and business, cycle parking on adjacent street. A place to dwell; new street furniture, facilities for temporary events, enhanced surrounding dining offer, new public art. A safer environment; new lighting, improved pedestrian crossings and better wayfinding. In addition Bond Street will be one of the first areas to benefit from consolidation of freight and deliveries. 44

Bond Street, Fenwick - Brook Street junction view of concept design proposals. © Publica 2015.

Proposals are at concept design stage. Drawings are intended to illustrate ideas for materials, layout and features, design ideas will require further consultation, investigation, engineering and testing.

Bond Street, Grafton Street junction, view of concept design proposal. © Publica 2015.

Realising the Oxford Street Vision The vision for Oxford Street is that it should be the world’s best outdoor street shopping experience, complementing Regent Street and Bond Street by offering an unrivalled mix of ﬂagship and branded stores. More than this, there is opportunity to integrate with a wider network of retailers, leisure and cultural attractions across the surrounding streets. The arrival of Crossrail 1 from late 2018 provides a further catalyst to improve the quality of the area and position it as the world’s favourite place to shop and visit. The New West End Company Property BID will support the West End Partnership vision that will join with, and build on, complementary projects to transform the street and wider area delivered by Westminster City Council, Transport for London and the Mayor’s Ofﬁce.

Reducing Trafﬁc A comprehensive reduction in vehicles of all types with greater use of suitable surrounding streets for loading, servicing and taxi pick up. Improvements in public realm and prioritisation of pedestrians to create the right ambience for a successful trading environment. Radical improvements to the street’s air quality and additional measures to reduce trafﬁc accidents. Creating Modern Retail Spaces Improvements to the scale and design of buildings with appropriately redeveloped stores. A renewed mix of new and established retailers to provide a compelling shopping and visitor experience.

A seamless and intuitive system of shopper information online to guide visitors. Greater investment in marketing to cement Oxford Street’s brand position both internationally and in the UK. High Quality Public Realm More space for pedestrians including ‘oasis’ spaces both on Oxford Street and nearby side streets. More robust management and maintenance to provide a safe, clean and welcoming environment with less street furniture, clutter and well organised street trading kiosks. Introduce more north and south crossing pointing including the highly successful diagonal crossing points to create better pedestrian movement in the street.

Our commitment: 2 Crossrail Management Plan Working with Westminster City Council, Transport for London and relevant London authorities to produce a robust management plan to accommodate the 30% increase in pedestrians to the area with the arrival of Crossrail in order to create a safe, secure and core retail area dominated by people not trafﬁc; Work with Westminster City Council and Transport for London to implement the walking strategy for the core West End creating more spaces for the pedestrians with improved air quality and public realm enhancements. Support the creation of more green spaces and respite areas for shoppers, workers and visitors, and scope out opportunities for the new use of public spaces through enhanced commercial activity, digital screens, curated public and private content.

Implement an oasis scheme with Westminster City Council and Transport for London delivering at least ﬁve upgrades by 2020 to increase consumer dwell time and greater pedestrian movement north and south of Oxford Street and west of Regent Street and in the north of Mayfair. Improve the wayﬁnding and signage to encourage greater pedestrian movement north and south of Oxford Street and work with property owners to create public spaces and respite areas for visitors for new schemes in and around the main transport hubs.

New West End Company is one of our key partners as we continue to transform London’s transport infrastructure. Crossrail and the signiﬁcant rebuilding of Tottenham Court Road and Bond Street stations will be game-changing moments. By 2026, peak demand at these stations will be over 60 per cent higher than current levels. The extra rail capacity and improved public realm will open up many more possibilities for how transport supports a thriving West End. It is vital we develop our plans with the West End business community, and work together to secure steady and sustained investment for the area. MIKE BROWN, MVO Commissioner, Transport For London

Our commitment: 3 GLOBAL PROFILE & POSITION: TO PROVIDE A ROBUST DESTINATION MARKETING RESPONSE TO GLOBAL AND LOCAL COMPETITION BY RAISING THE WEST END’S RETAIL PROFILE TO ATTRACT GREATER SPEND AND A UNIQUE RETAIL MIX THROUGH ABOVE AND BELOW THE LINE CAMPAIGNS, GLOBAL EVENTS AND PROMOTIONS.

Delivery Plan 2015 – 2020 Implement a strategic brand marketing campaign complementing the occupier BID and positioning the West End retail heartland as the world’s top global retail and leisure destination for investment, with a speciﬁc focus on reasons to invest as an occupier. Provide support for the West End Partnership’s marketing strategy to deliver against our commercial aims. Launch a West End Retail Economics Unit, including a branded data unit and digital hub, with a primary focus on occupier and investor content. Support this with an investor road show of opportunities, business performance case studies and future forecasts, plus an annual conference and Global Retail Report, and on-territory promotions in our key markets such as USA and China.

Run Strategic Media Partnerships including paid-for content, PR and event partnerships in key markets for a business-to-business audience. Dedicated, ring-fenced investment to ensure continuity and ongoing promotion. Potential partners include Business of Fashion, the Wall Street Journal and the Financial Times. Launch a West End Retail Global Tour, with signed-up business ambassadors for West End retail, to support a global events programme, primarily in USA and China, with links to New York Fashion Week and China Fashion Week and partnerships with UKTI, key inward investment organisations and real estate agents. Create a programme of area brieﬁngs and content management with key business inﬂuencers and champions, such as inward investment organisations, media, real estate agents, retail opinion formers, and political advisors.

Initiate a dedicated PR campaign with the West End Partnership to change short and medium-term perceptions of our key shopping streets, using the media and key opinion formers and linked to the improvement plans and enhanced public realm initiatives. Deliver sophisticated consumer insights and global benchmarking to support the assessment of property asset values. Develop an active and engaged membership through dedicated communications to property owners, an annual programme of events and wider business network initiatives, encompassing the London Luxury Quarter, property industry platforms and key London policy and business groups. Stage an annual Property Members conference.

Governance The Company New West End Company is a company limited by guarantee. It has British BIDs Advanced Accreditation status, the highest standard achievable. New West End Company is the BID proposer for the Property Owner BID and is the legal entity that, assuming a successful ballot, will run the activities of the Property Owner BID for the designated BID area. The BID will be governed by New West End Company and, in keeping with regulations, will have a separate budget accountability and business plan.

BOARD

Chairman/representative of each sub group takes a seat on the main Board for accountability. There is equal representation from each BID on the main Board.

OXFORD STREET MANAGEMENT GROUP

REGENT STREET ASSOCIATION

BOND STREET MANAGEMENT GROUP

OCCUPIER BID Management & Marketing • • • • •

Visitor Services Cleansing & Security Marketing & Events Enforcement & Street Management Insight & Member Services

PROPERTY GROUP

PROPERTY BID Strategy & Development • Inﬂuential Business Voice • Sustainable Placemaking • Global Position & Proﬁle

The Board The New West End Company Board will meet quarterly and drive the longer-term ambitions of the company, as well as performing the corporate governance role setting the strategy, overseeing the budget and monitoring performance. The high level Board will consist of a maximum of 15 Directors including the Chairman. Those attending in an ‘observer’ capacity could include representatives from Westminster City Council, Transport for London and the Mayor’s Ofﬁce. Directors will be appointed by the Board and appointments will be subject to ratiﬁcation by BID businesses at annual meetings of the company. Articles of Association are available at www.newwestend.com

The Property Group The Property Group will report to the Main Board. The Group will meet quarterly and will oversee the delivery and measurement of the Property Owner BID Business Plan. The Property Group will consist of a maximum of nine members made up of liable property owner BID members. Managed by the Property Group Chair attendance will be open to other main Board Directors, advisors, specialists and relevant project partners, as appropriate for each meeting. The Chair of the Property Group will be a Director on the Main Board.

The Executive Team The Property Owner BID will be managed by the existing New West End Company team, with the support of specialist advisors. Future delivery may require additional executive and specialist resources. The introduction of the Property Owner BID will enable economies of scale to be made in overall management.

STRATEGIC BOARD

FINANCE & GOVERNANCE GROUP

REGENT STREET ASSOCIATION

OXFORD STREET MANAGEMENT GROUP

BOND STREET MANAGEMENT GROUP

PROPERTY GROUP

NEW WEST END COMPANY MANAGEMENT

TRADING ENVIRONMENT

INSIGHT & MEMBERS

FINANCE & REPORTING

STRATEGIC PROJECTS

MARKETING & PARTNERSHIPS

EXTERNAL AFFAIRS

BID levy rules The BID process is governed by Government legislation and regulations. As such, once a majority vote has been achieved, the BID levy becomes mandatory on all eligible property owners.

The eligible owner shall be: The first lessee above the rateable occupier where the current lease is granted for a term of more than 35 years, or in the absence of a relevant first lessee, the freeholder. If the relevant owner is part of the same group of companies (as defined in s474 of the Companies Act 2006) as the occupier BID levy payer for any rateable hereditament, then the Property Owner BID levy shall be charged at 0.5% of the Rateable Value using the 2010 rating list as at 1 April 2015 for that relevant interest.

The rules for the BID levy are as follows: The BID term will be five years from 1 January 2016 to 31 December 2020. In the event of the Occupier BID ceasing to exist, the Property Owner BID will be brought to an end. The BID levy will be applied to rated properties in the BID with a rateable value of £250,000 or more. The BID levy will be fixed at 1% of Rateable Value using the 2010 rating list as at 1 April 2015 - which will increase in April 2017 rising annually by 3%, i.e. April 17: 1.03%, April 18: 1.06%, April 19: 1.09%, April 20 1.12%. The BID levy for owner-occupiers specifically will be charged at 0.5% of Rateable Value using the 2010 rating list as at 1 April 2015 - which will increase in April 2017 rising annually by 3%, i.e. April 17: 0.515%, April 18: 0.53%, April 19: 0.545%, April 20 0.56%. The BID levy will only apply to retail, food and beverage and leisure hereditaments (including hotels). The liability for the daily BID levy will fall on the eligible property owner.

New hereditaments will be charged based on the rateable value at the point of occupation. There will be no VAT charged on the BID levy. The BID levy will not be increased other than as speciﬁed in the BID levy rules. The BID levy rules cannot be altered without an alteration ballot. Refunds will be at the discretion of the BID. The BID levy is to be paid in full within 14 days of receipt of invoice. The eligible Property Owner BID levy payer should not pass the levy onto the eligible Occupier BID levy payer.

District Map The 25 streets in the BID area, acknowledged as London’s retail heartland, are anchored by Bond Street, Oxford Street and Regent Street.

Air Street (in part)

Regent Street

Argyll Street

Savile Row

All of the following streets will be included, in full or in part, in the New West End Company Property Owner BID:

Barrett Street

Sherwood Street

Bird Street

South Molton Street

Bond Street

St. Christopher’s Place

Brewer Street (in part)

Swallow Street

Brook Street (in part) Brown Hart Gardens Duke Street (in part) Gees Court Glasshouse Street (in part) Great Marlborough Street (in part) Heddon Street Lancashire Court Langham Place Market Place North Audley Street Oxford Street Portland Place (in part)

LANGHAM PLACE

PORTLAND PLACE MARKET PLACE ST. CHRISTOPHER’S PLACE OXFORD STREET BARRETT STREET

GEES COURT

BIRD STREET ARGYLL STREET SOUTH MOLTON STREET GREAT MARLBOROUGH STREET DUKE STREET REGENT STREET BROOK STREET HEDDON STREET NORTH AUDLEY STREET

LANCASHIRE COURT

BREWER STREET

BROWN HART GARDENS

SHERWOOD STREET

BOND STREET

GLASSHOUSE STREET

AIR STREET SAVILE ROW SWALLOW STREET

Reproduced from Ordnance Survey mapping with the sanction of Her Majesty’s Stationery Ofﬁce, Crown Copyright. City of Westminster LA100019597.

Finances Indicative BID Budget Five-year cash projection Property ballot budget Levy +0.3% from 2018/19* Sustainable Placemaking Bond Street Plan Oxford Street Vision Sustainability Community & Employment Business voice & Global Profile West End Marketing Global Profile Advocacy & Influence Partnership Communications Management/overheads Contingency Total spend

40%

10% 10%

15/16 3 mths £000’s

16/17 year £000’s

17/18 year £000’s

18/19 year £000’s

19/20 year £000’s

2020 9 mths £000’s

5 Year £000’s

666 266 140 100 16 10 266 50 80 96 40 67 67 666

3,189 1,276 560 520 156 40 1,276 226 550 200 300 319 318 3,189

3,199 1,279 560 520 159 40 1,279 229 550 200 300 320 320 3,199

3,208 1,283 560 520 163 40 1,283 233 550 200 300 321 321 3,208

3,218 1,287 560 520 167 40 1,287 237 550 200 300 322 322 3,218

2,421 968 420 390 128 30 968 168 425 150 225 242 242 2,420

15,900 6,360 2,800 2,570 789 200 6,359 1,143 2,705 1,046 1,465 1,591 1,590 15,900

Based on 2010 RV list. Assumes 0.5% for owner occupiers. *net of owner occupier 0.5% Should collection rates be higher than 90% then unused contingency will be in the followings years budget

The 2015/16 budget is for three months only as the BID will be operational from 1 January 2016. Budget figures are indicative based on the anticipated levy income calculated using current 2010 Rateable Values. Assumed 3% annual inflationary increase. Contingency of 10% of projected BID levy collection (assuming 90% collection rate). (Occupier BID collection rates is in excess of 98%). Levy income may fluctuate in relation to occupancy and is subject to the market at the time of the rating assessment. Expenditure 60

headlines correlate with the business plan. Allocations reflect the current property owner priorities; these may change causing variances and re-allocations across the fiveyear term. Any variances to the project budget allocations will be approved by the Main Board in the context of the whole annual budget. Management will cover Property Owner BID costs associated with staffing, legal, accountancy and accommodation for the BID. Where there are split interests between the head lessee and the freeholder, contractual

arrangements can be made locally about how voting rights and payment of levy will be exercised.

40%

10%

Sustainable Placemaking

Business Voice & Global Proﬁle

Management/Overheads

Contingency

Through the Operating Agreement with Westminster City Council, the following process will be put in place to monitor the collection of the BID levy over the duration of its ﬁve-year tenure.

Within one month of the Ballot result, New West End Company and Westminster City Council will set up a Monitoring Group. There will be at least two meetings of the Group each ﬁnancial year throughout the BID term. At each meeting the Monitoring Group will: Review the effectiveness of collection and enforcement of the BID levy. If required, assess the information provided by Westminster City Council and New West End Company and make recommendations and adjustments.

Every month, Westminster City Council will provide New West End Company with the following information: The amount of the BID levy for each BID levy payer. The amount of the BID levy collection for each BID levy payer. Details of those who have not paid. Details of reminder notices issued. Details of liability orders applied for. Details of any agreement which is made to extend the payment agreement. 61

Using your vote A Property Owner BID (PO BID) will be established if a number of qualifying hereditaments of Property Owners in a given geographical area, who are legible to vote on a PO BID Proposal, vote in its favour. The ballot needs to satisfy two tests. It needs to achieve a majority in number of those hereditaments and a majority in proportion of Rateable Value of hereditaments voting. The PO BID levy can only come into effect if both these tests are met. The PO BID levy is then applicable to all eligible Property Owners. All eligible Property Owners will be entitled to one voter per hereditament. Some Property Owners with more than one hereditament within the area will, therefore, be entitled to more than one vote. A full list of those eligible to vote is available at www.newwestend.com

The voting procedure You will have the opportunity to vote on the Business Proposal from 18 November 2015. To ensure transparency and due diligence, the BID ballot will be administered by the City of Westminster Returning OfďŹ cer and their Electoral Services staff. It will be organised in line with the rules set out in the Property Owner BID regulations (December 2014) approved by Parliament. 62

Your ballot paper will reach you by post on or before Friday 20 November 2015

You will need to cast and return your postal vote by 5pm on Thursday 17 December 2015

The results will be announced on Friday 18 December 2015

On a successful ballot, the BID will become operational on Friday 1 January 2016

www.newwestend.com/property

For further information please contact: Jace Tyrrell Deputy Chief Executive New West End Company Morley House 320 Regent Street London W1B 3BE T 020 7462 0680 E jacetyrrell@newwestend.com www.newwestend.com/property

New West End Company would like to acknowledge the support and funding received from our Voluntary Property & Associate Members. We would also like to acknowledge a supporting grant received from the Mayorâ&#x20AC;&#x2122;s OfďŹ ce and in-kind Westminster City Council support via the Heart of London Business Alliance. We are grateful to those property owners who have provided endorsements and expert assistance in developing this business proposal.